Posted by Marc on Sep 3, 2010 in
Market observations,
Marketing
News of Samsung’s launch of the Galaxy Tab this week serves as a useful reminder that the market leader rarely has everything his or her own way.
It is undeniably glamorous to be the market leader, and a great many businesses make the attainment of leadership their core business strategy (if only through an inability to see any other approach).
In the case of tablet computers (and most other categories of mobile computing come to that) the leader is of course Apple. The Galaxy Tab is designed to go toe-to-toe with Apple’s new iPad.
Apple has earned its leadership position with a track record of innovation, of being first to market and of opening genuinely new product categories. And there is no doubt that the advantages of this are many.
The company holds the largest market share in these categories; it is able to command a considerable premium for its products; and it enjoys an outstanding brand loyalty that makes marketing seem the simplest thing on earth – just announce the product and watch the news go viral.
But for all its appeal, market leadership also has its challenges. For a start, it has to be defended. Away from pharmaceuticals and a handful of other sectors, the days of long and meaningful patents are largely over. In their place Apple maintains its leadership with a constant programme product innovation. This is fine while it works and keeps working, but it is both costly and risky – too many new product flops and even the brightest of brands will tarnish.
And what of the rest? Well, the many companies following and challenging Apple enjoy plenty of advantages of their own. It is much cheaper to watch the results of someone else’s R&D and market testing than to conduct your own. There is an undeniable appeal in watching which product launch actually works before responding with your own version.
In this case, while the iPad has the premium brand and Apple’s brilliant music and content distribution system behind it, the Galaxy Tab offers key user advantages – it is smaller, lighter, can make calls (even video calls) and can use Flash technology. Samsung has been able to watch Apple open (in this case, arguably re-open) a new product category, and then react. As a result they will have been able to make efficient use of a smaller R&D budget, and can potentially leverage a much higher profit from a smaller market share. By adopting this strategy they can also engage as a follower across a much wider range of product categories than Apple can as a leader.
So although the reputation and glamour of being the leader is undeniably attractive, don’t feel too sorry for the rest. It’s perfectly possible to win from second place.
Posted by Marc on Jul 21, 2010 in
Marketing,
Opinion
“What makes a great creative concept – and has it changed?” That was the subject being discussed by myself and a colleague this week.
One thing we were both agreed on is that the most important element is, and always has been, what we think of as the ‘wow’ factor.
Now the ‘wow’ factor is pretty hard to quantify or define, but the one thing you can say about it is that you know when you’ve got it. It’s the head turner, the punch line, the thought provoker, the eye catcher – without it, there is really no point in having a concept.
That’s why delivering the ‘wow’ factor is such a big part of Leader’s mission statement.
So, the ‘wow’ factor comes first. What about second?
Well, I think not too long ago we’d have said ‘relevance’. After all, a great marketing concept isn’t just a creative idea – it’s something that helps you raise profile for your business, create or build a brand allegiance and, ultimately, sell products and services. So traditional marketing wisdom has always said that the creative concept should be closely linked to those products and services.
Except does it anymore? Where is the link between drumming gorillas and chocolate? Between meerkats and car insurance?
These are just two of many examples where the power of the ‘wow’ outweighs any issues of relevance. What they prove is that if you can interest, excite, amuse or intrigue your customers, they will go out of their way to find your brand, to remember it and to engage with it i.e. They will no longer need your sales messages spoon fed to them in the form of ‘relevant’ images.
So, if relevance is no longer the second placed factor, what has replaced it?
Well, given the explosion of media outlets and forms over the last decade, it has to be adaptability and longevity. Does your idea allow you to build, develop and grow a theme over a period of time and across multiple platforms, both online and offline?
The meerkats are a great example. Despite being a long way from relevant, they are simple(s), funny and adaptable, allowing them and their catchy punchline to be used in TV adverts, online video clips, viral campaigns, print / banner adverts, events and other PR activities – the list is endless. A great creative that combines the wow factor with this kind of longevity can give you months and months (if not years) of fresh angles, fresh impact and business success – whether it’s relevant or not.
So, we concluded, a great creative for the 21st century is characterised by:
1. The wow factor
2. Adaptability and longevity
3. Relevance to brand or product.
What do you think? We’d love to hear from you in the comments section.