Mike Bolden » Posts for tag 'Usage Occasions'
Increase Profitability Despite Troubled Economy -- FREE WHITE PAPER
•

Motorola: Move Out and Get Your Own Place – Own Marketspaces

0
Posted in Advanced Marketing Strategy, Chicago Companies and Business
January 22, 2009
Tags: , , , , , , , ,

Motorola’s Current Turbulent Situation
Motorola is in trouble – the cell phone business posted a 33% decline in the first quarter of 2008 at $18.99 billion according to The New York Times. In 2007, this business lost $1.2 billion while Motorola’s two other smaller units were and are profitable. CEO Greg Brown hoped that turning mobile devices into its own unit would lead to a turn-around and revive the Motorola brand. By the end of 2008, this division will have posted three straight years of financial and market share losses. The problem centers around the inability of Motorola to even come close to following up the popularity and sales of its RAZR phone which it introduced in 2003. It was an enormous success, and sold more units than any other handset in history. However, the subsequent designs have been unable to keep pace from a sales perspective, and as a result competitors have taken back market share in the handset market. The company’s market share was at 23% during year-end 2006, and has fallen to 8% worldwide currently.


Lacking Pipeline – No Good Successor To The RAZR
This slide seems to indicate a problem with Motorola’s innovation processes and pipeline. There were no new “good” products to replace the RAZR. To follow up the RAZR’s success, Motorola would have been wise to dimensionize the utility for RAZR customers, and figure out the key features and benefits which were highly valued by them. This knowledge, and more importantly, its application to the following new designs, would have clearly led them to breakthroughs to match or at least approach the RAZR’s success.

The Four Factors Needed To Dimensionize Utility
In dimensionizing utility, Motorola should not do so for a generic singular customer profile – but they should divide the market into key buyer groups. This should be based on any combination of demographics, geography, lifestyle, and usage. Put these four factors into separate two-by-two grids and have each factor occupy a quadrangle of the grid. Next, list the key characteristics of important buyer groups according to each of these factors. Pay particular attention to usage in terms of two aspects: type and occasion. To develop a set of composites, link the key demographic, geographical, and lifestyle factors to a particular usage type or occasion. This is a key step in developing a feel for what is valued by composites of different types of major buyer groups. The next step is absolutely vital: connect the usage types and occasions to product features to develop.

Translating What Buyers Value Using “Utility-Usage” Chain
By making this “utility-usage” value chain, an executive can directly translate what key buy or potential buyer groups highly value, into features which mirror their expectations and desires. This will allow Motorola compete strongly in various profiled marketspaces. If done right, it will allow them to own marketspace – just like they did with the success of the RAZR. They can replicate this success using this strategy. It should be at the heart of their innovation strategy going forward – and it’s certainly not too late to save their business.

•

In Lackluster Economy – Jeweler Shines With Innovative Marketing Strategy

0
Posted in Advanced Marketing Strategy, Small Business
December 16, 2008
Tags: , , , , , , ,

John Christian and Other Small Jewelers’ Dilemma
John Christian is a small custom jewelry company in Austin, Texas who like most jewelers was facing the “crunch” of dramatically higher raw material costs, soaring metal prices and lowered consumer spending in a weak economy. In 2006, the company posted $6 million in revenue, and saw this figure slip to $5 million in 2007. Because most jewelers are small manufacturers and tend toward customization, they lack economy of scale to offset higher raw material costs. In addition, creativity and custom service aren’t enough to offset margin squeeze and the revenue loss. To address these losses, John Christian has sought to lower raw material costs by creating alloy/metal blends like “platanium” – a stainless-steel alloy with the luster of platinum and the strength of titanium, and using basic or less fancy material in the production of their items.

Lower Cost New Brand and Occasion Strategy
John Christian created a new brand around platanium items. In marketing this lower-cost brand, they were concerned about inadvertently cannibalizing the sales of their higher-end jewelry lines. To market this new line without eating away sales from those items, they need to target specific buyer groups with specific “usage occasions” for purchasing their products. An example of John Christian utilizing a related strategy is cited by their CEO, Wes Weaver, when he speaks of their development and marketing a line of stainless steel rings targeting military personnel with the seal of the Army, Navy, Marines, or Air Force. A usage occasion strategy which would likely be highly effective and revolve around marketing uniquely celebratory personal days such as birthdays, anniversaries, or courtship milestones – and discrete holidays such as Valentine’s and Sweetest Days.

Dimensionalizing Occasion Attributes
This new product line and many jewelry buys tend to be occasion-oriented purchases. To this end, a jeweler such as John Christian should initialize its marketing strategy by dimensionizing occasion attributes. Romance, family, and rarity are factors which are highly relevant to jewelry item purchases.

Carved Creations Line Marketed To Mid-Range Customers
John Christian also created a brand, Carved Creatrions, centered around engraved jewelry in platanium and sterling silver. This line has its own separate website, and all items are less than $200. They have targeted this line through “regular” mid-range mediums such as USA Today and Us Weekly. To date they’ve sold $100,000 of these items. By being creative in their strategy, John Christian is growing and prospering despite rising costs and reduced spending, proving that with the right marketing and strategy – small companies can still sparkle!