Game changers are marketing strategies and concepts that help transform the outcome for an organization. I’m kicking off this email blog series with a few thoughts on products and services so… let’s get into it!
I’m not talking about the typical line extension such as… adding a new flavour of potato chip, but rather implementing a strategy that re-focuses and re-allocates resources, and ultimately, the trajectory of a company over the next five-to-ten years.
Motivations for employing a product or service game changer are:
- Increased Profitability: It’s obvious, simple and usually necessary. Every organization should be looking for ways to create more profit and some offers simply have better margins than others.
- Competitive Threat: Your industry grows because you, and your competitors, are changing and improving. You may need to offer comparable products or services so you can stay in the hunt.
- Changing Consumer Trends: Progressive organizations watch and listen to the market and assess whether to create (or discontinue) products or services to stay in sync with demand.
A word of caution: Entrepreneurial bravado is not a very reliable motivation.
Some organizations get involved in implementing new a product or service strategy because someone at the top of the food chain got bored or overestimated their own ability. These decisions almost never produce a positive outcome; in fact they often end up hurting the employees.
Now that you’re in the right mindset, here are five (5) game changing product or service strategies:
- Create a new category. This strategy is uncovered in the book Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne. These strategies involve innovative products or services that have not existed before. Cirque du Soleil was a new form of entertainment that combines circus acrobatics, dance, and art. Steve Jobs helped Apple create new technology categories with the iPhone and iPad. New category developments are rare and they take a unique visionary with a lot of clout and financial backing to drive them into the market but they can really pay off down the road.
- Initiate a gunshot innovation. One of my favourite authors, Jim Collins, in his book Great by Choice, illustrates how great companies invariably “First Fire Bullets then Cannonballs”. In essence, they take faster, smaller risks that bring validation before betting big resources on a cannonball strategy. Coconut water started as a very small category with a niche market but has taken off in the past five years as consumers realize the potassium and electrolyte qualities it delivers (in my case, I just have to get past the nasty after taste 🙂 Innovate with a new product and service but market them in a small geographic area with a niche target audience and with relatively low resource investment, this will help you to know what and how to change the game.
- Change the occasion or use. When it comes to products, re-purposing in incremental situations can have great results. Baking soda sales soared when its deodorizing properties became known and consumers started to leave open boxes in their fridges. When I was at Procter & Gamble, we tried to get consumers to use Bounce laundry sheets as a deodorizer in cars, drawers and other places to increase consumption—it had mixed results, but hey, we tried. Universities can package core curriculum and use it for adult education and seminars. You get the idea.
- Add a dimension. Some people believe you need to choose to be either a product OR a service business. There are occasions when you can do both. Howard Schultz was working at Starbucks in the early 80’s when the company simply sold bulk whole bean coffee. When he saw the Italian espresso bar concept on a trip to Italy he felt he could add a service and culture element to Starbucks but the owners didn’t go for it. Schultz started his own company with that concept and then bought Starbucks several years later. If you’re a restaurant, you can package your signature spices like The Keg, or dishes like Vijs. The potential is endless.
- Extend your brand. One of the simpler strategies available to eager game changers is to apply your brand to complementary products or services. This strategy can help focus the organization towards new marketing ideas as it aims to sell more offerings to their loyal consumer. Nike began extending its brand from running shoes to running apparel, eventually they ventured into nearly every sports category available with their initial strategy and core competencies intact.
Every organization and category is complex and no decision comes without due diligence. If results are not what you desire, or your instinct is that consumer trends are changing, maybe a game is exactly what you’re looking for.
Have a great day!
– Braden