The holy grail of marketing | Guy Kawasaki | WOBI

this is very very fundamental this is the holy grail of marketing there is a vertical axis where you measure uniqueness there's a horizontal axis where you measure value this is a 2x2 McKinsey esc' matrix and I won't charge you 25 grand to tell you but you want to be in the upper right hand corner okay so before we get into the upper right-hand corner let's explore the other three corners the bottom right corner in the bottom right corner is where you make something that's valuable but it's not unique you slap the same operating system on the same hard disk and stick it in the same kind of chassis okay you know that's valuable but you will always have to compete on price that's what Dell has to do compete on price with Dell and Lenovo and Gateway and HP same OS same hardware you compete on price not a bad place to be at least it's valuable but as long as you understand you have to compete on price next corner in this corner you have created something that only you do it's unique but it is not valuable in that corner you are just playing stupid the bottom left corner is the worst corner of all because in this corner you're something that's not valuable and not unique that's what I call the dot-com corner so let's let's review one company from the dot-com days in particular pets calm pets calm let me pitch you the selling proposition of pets calm there are 300 million Americans one in four owns a dog seventy five million dogs each dog eats two cans of dog food per day it's a hundred and fifty million cans of dog food per day total addressable market how hard could it be to get one percent of one hundred and fifty million cans of dog food per day that's for crying out loud one and a half million cans of dog food per day let's say we make gross margin of a buck a can that's one and a half million dollars of gross margin per day conservatively speaking worst case and this is a 365 day a year business dogs do not take the weekend off from eating that's the pitch that's the total addressable market now what's your competitive advantage well it's a supply chain management issue all right so we have a dog of a cow okay you need to kill the cow chop it up put in a can get it to the dog that's it that's the dog food business so pets calm looked at this and said well you know why is your a pet food store in the middle what value does the pet food store add do people take their dogs and go and do taste tests do the owners do the taste test themselves why do we have a pet food store people have get in their car drive to the pet food store find parking go into the pet food store get the thing dragon out Drive home all that let's eliminate the pet food store let's just ship it directly to their house hallelujah now there's a problem with that you can discount pet food a lot because you took out the retailer but but you know what dead cows in cans weigh a lot so you may eliminate the pet food retailer but then you have to add in shipping and handling the shipping and handling roughly equated the discount that you removed because of the pet food retailer so you paid just as much and then it was arguably less convenient because now when the pet food the dead cows and cans got delivered to your house somebody had to be at home so it was less convenient and just as expensive that's not exactly valuable then people like me you know we saw that one venture capitalists had a pest comms so in our portfolio we needed a pets comm so that's why there was pets comm a pets comm I pissed comm last minute best comm discounts on Latin American pets comm they were like 16 ways to spend as much money on dog food and be inconvenienced it was amazing it was no value and not unique so the corner you want to be in as an innovator is the upper right hand corner some tactical examples for you as you can imagine any family that has 40 bows loved the movies I love to take my kids to the movies it is a pain in the ass to take kids to the movies right to get them in the minivan if to strap them in make sure they're not fighting is drive to the theater what if you did all that and you got to the theater and the tickets were sold out oh my god what are you going to do what's let's say the tickets were not sold up but there's a long line to get the tickets even that's a pain in the ass so Fandango for the theater we go the only way we can buy a ticket and print it off on at home is Fandango I pick a buck and a half more per ticket so that I know I have a ticket and I don't have to stand in the line that's unique and valuable another example brightening emergency watch brightening emergency watch if you pull the big now if you unscrew the big knob at the four o'clock position and pull that out out pops an antenna then antenna starts broadcasting a signal to airplanes that there's an emergency so 121 point five megahertz emergency now if you do this this is a big deal okay this is not like you took the wrong exit when you do this a few minutes later Kevin Kasten will be in a Coast Guard helicopter looking for it okay they're going to drop the wire basket they're looking for you so if you do this and it's not an emergency it's a quarter-million dollar fine fYI but just so you know this is the only this is the only watch that I know that can save your life right so if you're a skier if you're a sailor if you're really out of luck up the creek without a paddle this is the watch it can save your life this is a smart car recently came to America all of us have cars that can park parallel to the curb when there's lots of space that's no problem apart parallel to the group how many of you have a car that can park perpendicular to the curb that's truly unique Park perpendicular to the curve so these are all examples of products that for me are in the upper right hand corner unique and valuable I can only buy tickets at Fandango I can only have one watch it saves my life I can only have one car that I can park perpendicular when there is no parking the holy grail of marketing is to be in that upper right-hand corner okay that's where meaning is made that's where margin is made that's where money's made that's where history is made you should always be thinking how do we convince the world that we have a product or service that is unique and valuable you

Channel: WOBI - World of Business Ideas

Views: 9,386

Rating: 4.9130435 out of 5

Keywords: WOBI, World of Business Ideas, video, wobi.com, management videos, management, business, guy kawasaki, education, apple, kawasaki, ted, business school, haas school of business, holy grail of marketing, marketing, leadership, conferences, business conference

Id: 3hhcOek8-AY

Length: 6min 51sec (411 seconds)

Published: Thu Oct 20 2016