What Products Will Customers Want to Buy? Which Market Segments should We Focus On?
Create and gaining a foothold in the market (please keep in mind, this is just a first battle in the war) and then to grow profitably along the sustaining trajectory into market-dominating products and services. Improvements that stretch to meet the needs of more profitable customers by creating a purpose brand so that customers know what is the product that meets their needs.
The mismatch between the true needs of the right customers and the data (products attributes or the demographic and psycho-graphic profiles of a potential consumers) that “shape most product development efforts leads most companies to aim their innovations at a nonexistent target”, said the authors.
One of the most successful and creative entrepreneur, president and founder of K, T.’s Kitchens, Kathleen Taggares, who has mastered a full spectrum of approaches to market her products – frozen pizza! Making $55 million in the 90s, her company provided products for the low, middle, and high end of the pizza market by creating lines of different private-label products to different low and high markets such as public schools, military, Sam’s Club and Costco…
How Can We Beat Our Most Powerful Competitor?
As mentioned in the previous blog, how to predictably identify and deal with the constant range of issues bidding for more time and money; how to become the disruptor in growing business process. Let say, ok now your business has made it through the toddler years and is now a child and would be an adult. Revenues and customers are there but at the same time with opportunities and issues. Profits are there but competition is surfacing.
To stay ahead of the competition, innovation will need to find a breeding ground, as this together with Sales and Marketing are the only money makers and growth busters in any company no matter size. They are like fire and water and need to be blended through business development which is the missing link to a successful go to market commercial strategy.
So, just give me some tips! You may ask. How to develop a realistic strategy or working model to get my products and or services to the customers? Are there ways and or theories to help me make good decision in different circumstances? etc., “The best way to attack established competitors is to disrupt them”, said the authors, “disruptive strategies greatly increase the odds of competitive success and ultimately kill the well-run, established competitors, based on the circumstances of innovation which are identified by two distinct categories:”
- Sustaining circumstances: making better products that can be sold for more money to attractive customers à in this case, the established company would always prevail.
- Disruptive circumstances: more convenient product that sells for less money and appeals to a new or unattractive customer set à in this case, the entrants are more likely to prevail.
What is the disruptive innovation model to help shape the strategies before the company get killed? There are two types of disruption:
- New-Market Disruptions: New customers who had not owned or used the products or services. Compete against non-consumption to pull customers out of the original value network to the new one à induce incumbents to ignore the attackers.
- Low-End Disruptions: Attack the least-profitable and most overserved customers at the low end of the original value network. Mostly occurred in retailing. Low cost business models that grew by picking off the least attractive of the established firms’ customers à motivate the incumbents to flee the attack.
As you all know Guy Kawasaki, a marketing specialist, author, and Silicon Valley venture capitalist, who rejoined Apple Computer after a break to help with their marketing strategy, said “there is no excuse not to know everything about your competitors.” After you fully understand what your competition is doing, figure out where they are vulnerable. “You are looking for chinks in the armor. You are looking for pockets of dissatisfied customers that you can steal from them” said Kawasaki.
The Innovator’s Solution: Creating and Sustaining Successful Growth – by Christensen, Clayton M. and Michael E. Raynor, 2003