Posts Tagged ‘Product Launch’

iPhone 4 Static: Does “Fuzzy” Reception Kill the Golden Goose?

July 14, 2010

There has been a lot of media noise over the past week or so about the “antenna/reception issue” on the new iPhone 4.

This is exactly the kind of thing the precipitates the boundary between Early Adopter and Early Majority on the Product Adoption Lifecycle.

Early Adopters are willing to put up with a host of issues that may arise in order to get their hands on the new product as soon as possible. If there is a bug or two, which is often the case with a new version, so be it. Being one of the first to have such a device more than makes up for any inconvenience, which in many cases is expected.

Mainstream Early Majority buyers on the other hand, are a different breed. They don’t like experiments or issues. They want a “baked” product that works as expected.

As we have discussed in the past, they buy when their peers or friends buy, and they naturally gravitate to the category leader. They want the “one” and reward leadership by being willing to pay a premium for it. If there is an issue in the early phases… they do what comes naturally. They wait until everything is sorted out!

Consumer Reports Downgrades iPhone 4

Apple’s initial public position is the issue is a software issue, and a fix is on the way. Yesterday (July 13, 2010), as reported in the Wall Street Journal and other publications around the world, Consumer Reports reported that the problem is intrinsic to the design and amounts to a hardware issue that apparently can be fixed with a piece of duct tape in the right place. In response they downgraded their rating of this “hot” product to “not recommended.”

Is this Issue an iPhone Killer?

We doubt it. Remember the first iPhone launch? I had a client who waited in line (actually he had his assistant do it) for hours and hours to get his hands on one. And then for almost a week, he literally pranced around the office showing the device off. He was in heaven. And then, weeks later Apple dropped the price a couple of hundred bucks!

The joy quickly turned to fury and anger. He knew the price would inevitably drop but didn’t expect to blind-sided by such a move for many months. Suddenly his joy didn’t seem like such a good deal. He was right too. Ah the perils of Early Adopter-hood!

To it’s credit, Apple quickly got the message too, and quite smartly offered these early buyers $100 Apple Gift Cards, and the smile quickly returned to my boss’s face.  Just what he wanted, another trip to the Apple Store!

Bottom line. He expected such a move, but later. And Apple acted, after the problem blew up. In the end, sales kept taking off and we know the rest.

It Comes with the Territory

In many ways the situation is similar here. Early Adopters know this kind of thing happens .

We also fully expect Apple will fix the problem. It’s intrinsic to the brand. Other computer makers often force customers to put up with “known issues.” Unlike these more “commodity”-like companies, Apple is premium brand, and we fully expect the problem will be fixed to Consumer Reports’ satisfaction.

Once this happens, Consumer Reports, which in general was quite positive about the device overall, will recommend the product again. The brand connection with customers will be strengthened as consumers worldwide see that the Apple stands by it’s products as expected and the Early Majority will jump in once the dust settles.

Now if they would just open up the iPhone in the US to other carriers!!!!!

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Marketing The New Gillette Pro Glide: From a Positioning Perspective, Is this The Best A Man Can Get?

July 11, 2010

Today we will explore how we can use positioning best practice to engage the full range of the product adoption lifecycle simultaneously in order to:

  1. Capture the larger Early Majority segment
  2. Extend the reach to the Late Majority/Commodity buyer at the same time
  3. Provide a compelling value proposition and pathway to convert many of these commodity customers into more profitable premium buyers
  4. Lift the whole product category.

I have to admit it. When it comes to Gillette razors, I am a classic early adopter. I just have to get their latest and greatest right away. Why?

Maybe it goes back to when I was a kid. I remember watching my dad shave in amazement morning after morning. Such an arcane process that never seemed to change: shaking up his can of Foamy and slathering that creamy stuff all over his face. And then the razor. The heavy chrome handle that would pop open by turning a knob on the bottom. Slide in a Super Blue from the special dispenser, twist the handle closed and then let the shave begin. When completed he’d sprinkle Aqua Velva on his hands and slap it on. Done!

I also remember feeling his face. He had a heavy, scratchy beard, something I inherited. After the shave, his face felt smooth as glass.

Is it any wonder that at 10, I desperately wanted to shave too. Dad would always say, no rush, no rush. It really isn’t fun. And if you don’t do it right… ouch. I remember those little dabs or two of toilet paper on his face to staunch the bleeding on a bad day.

As you can see, there is deep connection I have with the process and the Gillette brand that transcends the actual experience itself and sets me up as a classic Early Adopter in this category.

In this light I recently found myself excited when Gillette announced that it’s latest and greatest Fusion Pro Glide System featuring 5 thinner blades with a special low resistance coating and a suspension system that would eliminate that pesky tug and pull. I couldn’t wait. My excitement mounted as the launch day, June 8, 2010 approached.

Needless to say, I got one right away and the product does not disappoint. It’s awesome! It really feels like the razor is literally gliding as I shave, and afterwards my face, well it feels smooth as “glass,” even smoother than my Dad’s.

The Right Message for the Wrong Audience?

Now regarding the marketing… Yes, it’s slick, it’s integrated… And it’s old hat. Not to say that this is bad. Or not effective, at least as far as it goes. After all, the previous flagship blade in the Gillette line, Fusion with its Turbo style imagery, was the most popular razor in the world. But is there more?

Here is a screen capture of Gillette’s today.

As you can see, in the current state, the message is all about the product and its features and the primary message is turning Shaving into Gliding. As an Early Adopter, see arrow, I am sold. And in truth, it didn’t matter what the claim or message, I was sold even before the blades hit the market.

It All Comes Down to Connecting the Dots

The goal in positioning is to connect dots and answer questions for the customer, not pose them. And as we have learned from Apple and other marketing virtuoso’s, linier time as far as the Product Adoption Lifecycle goes is often a self-imposed obstacle. So why wait if you don’t have to, especially when there is so much at stake on a global scale?

With this in mind, and stepping outside of my Early Adopter mindset, what do we see with Gillette’s Fusion Pro Glide?

Product Lifecycle: A Quick Review

Just to make sure we are all on the same page, here is the famous Product Lifecycle bell curve made famous in Geoffrey Moore’s landmark book Crossing the Chasm.

Early Adopters like me love a product and it’s features. We are not price sensitive and are always on a quest, in this case, for a better shave. We have to have the latest and greatest right away.

However, Early and Late Majority buyers, where the heart of the lifecycle (and greatest profits) resides, have no interest in product features.

The Early Majority is concerned with “what does the product do for me” coupled with market leadership and peer adoption. If my friends buy, so will I. These buyers are also willing to pay a premium for the acknowledged leader.

The Late Majority is concerned about price… getting the product for the lowest price. They also don’t want to be bothered with the rest.

Positioning to Win for Maximum Impact

As we all know, Proctor and Gamble, Gillette’s parent company, is a brand and marketing powerhouse. And Gillette is an established market leader in the razor space and has been so for decades.

This means that a big part what it takes to capture and exploit the Early Majority is in place already with brand leadership and millions of satisfied users around the globe.

In it’s current state, you can see that the current product messaging is actually talking to Early Adopters, NOT the Majorities. The marketing question is, is this it for now, or is there more we can do to exploit the new Fusion Pro Glide product?

If we look at positioning best practice, the answer is yes!

Here’s a structural model of how this can work (by segment):

1. Early Majority

A. Leadership
These buyers appreciate and will pay a premium for the leading product in the category, making this is a clear sweet spot for this particular product now.

As mentioned earlier, the key to effective positioning here is connecting the “what’s in it for me?” question in the clearest terms possible that yields maximum results. In this case, Gillette has opted for a “Turn Shaving Into Gliding” message, which begs the question, “What does Gliding mean?” It glides, perhaps, but so what? What does Gliding do for me?

And yet buried deep in the current presentation, there is an answer… all the wonderful product features, YouTube videos, NASCAR endorsements, and Dream Job promotions are designed, perhaps indirectly to support the message that Fusion Pro Glide delivers “Gillette’s most comfortable shave ever.”

That’s what Early Majority buyers looking for. Now we get it! The big benefit, the compelling reason to buy. It was there, but buried by the Gliding message. All we need to do is call this message out front and center. And if you want to be slick about it, again from the current messaging, add… “Guaranteed.”

Roll it all up, here is what’s in it for the Early Majority buyer. Pro Glide Fusion is: Gillette’s most comfortable shave ever. Guaranteed.


B. Peer Influence
The next element to drive this segment is peer influence. “Do my friends have it, and do they like it. If so, I want one!” This is where endorsements fit. Gillette is a master of professional endorsements and has been so for decades. Today it’s in the form of NASCAR personalities and the “Young Guns” Challenge.

Even more interestingly perhaps is Gillette has begun to masterfully use social networks to get the “every man” endorsements that most likely will be more important as a marketing activity moving forward.  It takes a lot of guts to surrender control, which is essential for authenticity to address “Do guys like “me” use it, love it, etc.”

This is where Early Adopters come in. If we love the product, we are natural advocates and influencers, and can be one of these authentic  guys “like me” who heartily recommend the product to our “Johnny come lately” friends. What we need is some help or incentives to voice our feelings. In other words a promotion.

Example:
Right now men are invited to vote for their favorite “NASCAR “Young Gun.” The winning driver gets to donate $10,000 to their favorite charity. What do we get? How about adding a Win Blades for Life! premium? This could be for the vote if the person registers. And if we are looking for real endorsements by real men, it could be for submitting the funniest Pro Glide testimonial. And the prize, along with the charity donation could be presented to the winner at say, a NASCAR event.

2. Late Majority

Research I found seems to indicate support my Dad’s feelings about shaving. It is a necessary evil, something we have to do due for social conventions, but inconvenient at best. This attitude sets up commodity-style, low-price “just get it over with” thinking.

As it stands, Gillette has a dizzying array of lower cost blades and razors from earlier category leaders Fusion and Mach 3 to a whole slew of disposables. “Dizzying” is the operative word. Extremely complex.

What we need here is a clear roadmap of products, perhaps broken down into 1. blades and 2. disposables from Good to Better and Pro Glide in the role of BEST… with a blade price of “lowest” to “more” to “most” expensive. Your Choice.

And since Fusion Pro Glides fit in millions of Fusion handles already in the market, it is easy to slip in a free blade and coupon for later purchase in the package to engage these established buyers and get them into the pipeline.  We have to assume this is in the works already.

3. The Best A Man Can Get: Positioned for Growth Across the Lifecycle

If we go back to Gillette’s core brand, we can see we have the platform we need to cut across the whole razor line… “the best a man can get.” I was surprised to see that it is still alive and core… embedded right in the logo treatment itself. As one would expect with a brand of this caliber, it was like seeing an old friend. Powerful indeed.

This offers up a value platform with the opportunity to move customers up the ladder from “cheap” to Better and Best products and from a commodity buyer to a premium one. I call this Marketing JuJitsu. Here is where positioning focused on costs per shave and other metrics commodity buyers think about can come into play to demonstrate brand value to the these buyers too.

Example:
Let’s assume we can get two-weeks of shaves out of one Fusion Pro Glide blade. (Note: I have gotten up to four weeks, even with my heavy beard). Two weeks of comfortable shaves at $3 per blade equals approximately $.21 per shave. Let’s assume you can buy a disposable for $.20 per razor that safely delivers a shave, or two. Now the value proposition to this segment can be turned around to something like…

“For just pennies extra a day you can move up to Gillette’s closest, most comfortable shave. Take the challenge to see and feel the difference for yourself. Low(est) cost and most comfort from Gillette… The Best A Man Can Get.”

Here is what the structure looks like all together with above.

As you can see, now we have a Strategic Framework capable of positioning Fusion Pro Glide in multiple segments across the Lifecycle simultaneously under the Best A Man Can Get Brand Platform:

  1. Early Adopter with Glide
  2. Early Majority with Comfort
  3. Convert Early Adopters to Influencers building on incentives and promotions
  4. Create simple and understandable tiers of lower cost products for Late Majority
  5. Drive a Cost per Shave Value Message and convert Commodity into Premium buyers


Message to Steve Jobs. Thanks for the iPad. Now the heavy lifting needs to begin.

February 9, 2010

As a marketer, it’s hard to stay away from Apple. The marketing has been at virtuoso levels consistently for the last decade, serving as a best practice and shining light for us all, at least until now.

The iPad was launched to great fanfare (hype perhaps?) last month Wednesday, January 27, 2010. The hype machine was in overdrive leading to what appeared to be an anti-climatic event that felt like a let down to the media frenzy that preceded it.

I had the chance to watch Steve’s keynote address recently with my Principles of Marketing class.

Here is how Apple boils it all down in their messaging and positioning for the product in their own words:

Our most advanced technology in a magical and revolutionary device at an unbelievable price…
The best way to experience the web, e-mail, photos, and video. Hands down.

For the first time in years after reading these value propositions, I asked myself, what are they are talking about? And why, oh why did they create unbelievable hype on a massive scale to deliver such a vague, “early adopter” message? I don’t get it.

Since on the surface, this just does not make sense, I thought it might be constructive to de-construct this a bit from the integrated marketing perspective and dive below the hype and superlatives to see if we can figure out what is going on here. Something is…

On the company and product side, clearly there is a lot happening. Disruptions abound, and they know it.

First, besides the overall product itself, is the A4 chip produced by Apple. I didn’t realize they had this capability, but if you look at it, should this tablet device take off and create a new category as hoped, a new chip architecture is in place… and its not Intel inside.

Apple is also we are told, undergoing a transformation. A couple of years ago, Steve Jobs eliminated “Computer” from Apple’s name to Apple, Inc. “We are now a software company,” he famously said.

This time around he took it another step further… “We are a mobile device company, the largest in the world.” Wow!

The tablet, which with its large touch screen interface, on the surface looks like an iPhone on steroids, with much of the same functionality built in. I originally dismissed the optimized iWorks part of the presentation but am now quite impressed that there is native to the iPad productivity (word processing, spreadsheet, and presentations) capability. This is no mere overgrown iPhone! The screen is large enough so we can actually see what we are doing. Will there be a touch-based Office app from Microsoft to come?

On the marketing side, it became clear that Apple understood that there was no direct competition for this ambitious, category creating product, and in response took one of those “going fishing” – everything for everybody, early adopter communication strategies that in the final analysis goes against the cardinal rule of positioning – which is to connect the dots of “what’s in it for me” for the customer versus setting it up so that he or she must figure it out for themselves.

You can see it in how they boiled down the core messaging:
Our most advanced technology in a magical and revolutionary device at an unbelievable price…
Compare this to the iPhone:

At launch:
Reinventing the phone

Today
The fastest, most powerful iPhone yet.

See the difference?

What does Magical* mean?, Revolutionary?, and what is this going to do for me, even with an “unbelievable” price?

* Note: Although it is not easy to figure out what this means on our own, lead designer Jony Ive does define “magical” quite well in one of the launch videos as “when something exceeds your ability to understand how it works, it sort of becomes magical. And that exactly what the iPad is!”

The Best way to experience the web, e-mail, photos, and video. Hands down.

Also each speaker in this very same video, especially marketing VP Phil Schiller kept on using the word “BEST”… best e-mail… best photos… best internet… best this… best that.

Hey Phil, I hate to ask what does “best” mean, and then if so, so what?

The key and unavoidable question that is the core of what positioning is all about still comes down to addressing what does this mean for me?, and at the moment I don’t know.

Nobody said this was easy…

There were kernels of marketing strength in the presentation, most especially in Jony Ive’s video presentation. As the lead designer, he is the person most intimate with the iPad and two things he said caught my attention. 1. “It just feels right to hold the internet in your hands.” 2. “I don’t change myself to fit the product, it fits me!”

These two ideas are interesting and compelling… and if, once the units are available, we physically “feel” this connection with the product, and I have no reason to suggest otherwise… well then, the iPad will be successful, perhaps very much so, in spite of this awkward positioning.

At the conclusion of the presentation Jobs argued that then when you add up the 125 million existing iTunes and App Store Customers along with the 75 million iPhone and iPod Touch install base who already know how to use the product, along with the new e-book bookstore with 5 of the major publishers on board, “we have breadth and scale required for success.”

Except this.

Even with this built in audience base in place, I will argue that there is a classic chasm to cross with this one. The product as it now stands is too big to pin down, there are too many disruptive elements, as Apple itself admits.

For example, is it an e-Book reader, and if so is it for the popular, business, educational markets?, is it a media device?, productivity tool?, something else?

Kept at this high level, wide “everything for everybody” positioning is inevitable which means we as the customers have to figure out what we want and need about this device on our own. This is dangerous and contrary to Apple’s own best practice of product launches past.

What’s more, for the past years Apple had the benefit of its latest devices having direct lineage to the iPod, which fueled adoption for new innovations.

For example, the iPod’s leadership as the dominant music player on the planet, allowed Apple to successfully launch the new at the time, arguably disruptive video iPod with just one studio on board (Disney) and a handful of titles available for sales at the iTunes store. This is nowhere near to the ecosystem the iPad now enjoys even before it is available,

Even so, the poorly endowed video-enabled iPod faced the chasm, while also living as the top of the line, world’s most popular music player at the same time. Today every studio is on board and billions of video downloads have been transacted. The chasm was “easy” to cross here.

Today, with an astounding 250 million sold to date, the iPod market appears to be saturated and sales are flat or declining. And we could argue this is not what the iPad product is at its core. It is a separate product. And positioning the iPad as a direct descendent of the iPhone, which has created a category on its own, is also not really accurate and in this case would limit its disruptive power as a category-creating product.

So the product is out there on its own, almost as a blank canvas… a remarkable product looking for relevance from the market as a whole. That is the issue.

This situation is not new for Apple. People weren’t banging down the doors for Apple to create the iPod at the outset. The market wasn’t seeking a device that could hold 1,000 songs. And if memory serves me well, It took a while to gain traction and truly took off when iTunes became Windows-compatible.

Assuming the above and we have a chasm in front of us, what now?

The market opportunities are numerous, so for the sake of brevity today, let’s look at a couple of examples to see how we could position the iPad in the e-Book space, to give us some ideas.

1. Blue Ocean: Completely Different and Compelling
Amazon’s Kindle is the original category creator and undisputed leader of the e-book market to date. The iPad with it’s color screen, robust distribution channel and access to content by the major publishers is mounting a direct assault to Amazon’s dominance and has a competitive offering no doubt. The black and white Kindle is a powerful one-shot pony and costs $250. iPad as an e-Book AND the “internet in your hand” offers so much more for $499. Does iPad demonstrate enough value to topple Amazon? Probably not… yet.

One of the drawbacks to the iPad, as with the iPhone is the inability to run multiple applications at the same time. What if… you could you could reframe the reading experience?, so that when you are reading your e-book on your iPad, you can, say, listen to music at the same time.

War and Peace, and Beethoven! With this simple added element, Apple could change the rules of the game and position iPad as the tool that transforms the reading experience:

Apple iPad… Reinvents Reading!

Such a move would force Amazon to find its way again in what could be a transformed market that by the new definition would play into iPad’s strengths, not Kindle’s, perhaps for the foreseeable future.

Now I am starting to see the potential “magic” that Jony Ive was talking about.

Bt the way, this move isn’t far off from the iPhone value proposition, which also was a category-changing device.

iPad has the extra load of category-creation, but the “reinvention” position isn’t far afield from the “different thinking” we expect from Apple.

And it making a product alternation is too much, we could go back to the keynote presentation and look at the say the games, or NY Times apps that were shown.

This positioning could then play out as:
Apple iPad… Reinvents the Newspaper
Reinvents the Video Game

2. Textbooks: Get Rid of the Heavy Load
There is another natural niche that plays into Apple’s DNA. Positioning iPad in the education space to fill a true, long held need to lighten the load of the infamous text book bag, which as I have been reminded in my professor life, can weigh many, many pounds. Good for upper body strength, perhaps, but cumbersome at best in reality.

We know that students today are online all the time and comfortable with being there. Making the switch to electronic books with these consumers, which surprisingly hasn’t really taken off to date, should and could be a non-traumatic and natural transition.

Plus, although it slipped in the 90’s when Apple all but surrendered the academic space to the Dell’s and HP’s of the world, Mac laptops today have gained significant traction on many campuses to be a leading computer device of choice by students.

We noted with interest as the rumor machine for the iPad was in full swing, that Apple was collaborating with academic institutions and textbook publishers to ensure that the product meets the needs of the academic community. Color is essential we are told. Also, students like to highlight text and take notes. Dropping in audio and video content, being able to link to current news sources, etc., could create a robust learning experience, while reducing the physical load, and we assume textbook cost.

Add it all up and iPad should have what it takes to fill a need and make a friendly conquest of a familiar beachhead market that will facilitate a quicker chasm crossing for the product overall.

Here is how it could sound, once again in “tag” talk:

Weighing only 1 ½ pounds, the Apple iPad puts Textbooks, the Internet, and More, Right in the Palm of Students’ Hands for Less than a Laptop.

To sum it all up:

1. Before we adopt the iPad, we need to touch, feel and play with this device… now! 60-days is too long a time to wait, and when it is finally available, early adopters will try it, and buy it.

2. If it indeed feels right… if we feel and get the “magic,” then iPad will be successful… over time. Keys to success will be segmenting the market and adopting a chasm/beach head focused marketing strategy with clear and compelling reasons to buy, which aren’t even close to being defined yet.

Have fun Steve!

Starbucks… Back to the same old Grind???

December 17, 2009

Recently Starbucks launched its VIA Instant Coffee product, for $1 a packet or cup. When I first heard about it, I thought they were crazy! Here you have a true category creator, in this case premium coffee, coming up with what to many is a downscale, basically commodity type of product. Look at it this way, currently you can get a 20 ounce cup (“venti”) for over $2 today in the Boston area where I live, or you can get a cup of instant (Nescafe and even Tasters’ Choice) for pennies.

Is there a difference in taste? You bet. Then does this mean that Starbucks is lowering its standards?, in essence looking to capture that “cup of joe” on the run crowd?, probably not, at least directly for a $1 a packet.

To most of us Starbucks means affordable luxury, infinite choices, the third-place on top of home and office, “Venti” and “Grande” instead of large and jumbo, rich flavored beverages, etc. How does this square with a product category that we associate as bland, chemically adulterated, “instant” coffee…

The danger here is if we associate VIA as an instant coffee product. If it comes down to price, it is very expensive. And if it is not positioned strategically, then the “instant” product can take the Starbucks brand down a notch or two. Talk about a potentially very dangerous brand conflict in the works!

If customers begin to associate a premium brand with a commodity product, the risks are:

  1. elevating the commodity product while at the same time lowering your brand value, and/or
  2. trying to swim upstream and justify an off the charts price against other much cheaper products in the, in this case, instant coffee category.

A mis-fire and at best the product will fail with worse consequences possible if people sense that brand is deteriorating and losing value.  Talk about high risk and high stakes.

And Starbucks has muffed it before.

Remember how in their zeal to speed up service they mechanized the bar drink process in order to serve more customers more efficiently? They reduced the hand crafted nature of the beverage and role of the barrista. This opened the door for potent “new” competitors such as Dunkin Donuts and even McDonald’s to leverage mechanical processes and also offer such beverages, enter the premium category and take market share.

Add to this that the company has taken what appears from the outside to be a passive marketing posture these past few years with flattening sales to boot, and I wondered how they could pull this off.

Glad to say, Starbucks did it… and did it with superb marketing intelligence!

You could see this high level of marketing thinking in the launch itself.

If you are a Starbucks fan you may remember that this past fall they had VIA tastings in each store as part of the rollout. The interesting thing was what they tasted VIA against. My initial thought was that they would taste against Instant Coffee to show how much better (hopefully!) it was.

But instead they did something completely different… they tasted and literally positioned VIA against Starbucks brewed coffee itself and used Instant to define convenience, not the category.

I will argue that this was a stroke of marketing genius. Here’s why.

  1. They redefined the instant coffee category into Blue Ocean, uncontested territory, from a low price/commodity play to convenience… take it anywhere.
  2. Instead of trying to push up market in the instant coffee category ($1/cup price for a product costing in the pennies), they pushed down in the brewed category (Starbucks flavor for $1/cup).

Roll it all up and with VIA now you can now have a cup of Starbucks you can take or have almost anywhere for a buck! Sounds good to me, and tastes good too! Apply marketing at this level to the company overall, well Happy Days may indeed be back at Starbucks again.