Missed the first part of this post? Read it here
Previously I discussed how the product gets lost in the daily running of the business whereas it should be the focal point of the business. Here is what can be done to keep it always in focus:
SUGGESTED APPROACH
So what can be done to bring the product back in focus? Here are some suggestions:
1. DEFINE PRODUCT STRATEGY
Companies should work on a long-term product strategy and road map. I say company because this is not just the job of the marketer, supply, sales, R&D should all be part of this discussion. There needs to be understanding and commitment from every team and also alignment on their team goals accordingly.
Defining what is the role of the product (is it a strategic launch to secure first-in-market? Is it the bread-and- butter? But also qualitative attributes of “what value does this product bring to the company”).
Though sales should be the key driver in evaluation, not all metrics should be about sales.
For example, a product might not be the best seller but establish the company as an expert in an area and as such other products in the range would benefit. More about this in the product portfolio post coming up.
2. INCREASE VALUE
Profitability is key for the success of any company but there are different ways of achieving it.
One is to look at costs and try to cut out whatever seems feasible. There is an alternative though which is to increase the value of the product by enhancing the performance of the product, the quality, the raw material origin, the safety and so on.
One of the most brilliant and longest standing brand promises of all times is L’Oreal’s “Because I am worth it” which has become “Because we are worth it” to reflect a more inclusive spirit. It appeals to the emotional need of feeling relevant and recognised and it moves away from price.
When consumers are convinced that this is a great product for them, they are willing to pay the premium for it.
If the consumer is still discussing the price then they are the wrong target group or the are not convinced this is a great product for them.
The company needs to seek out their consumer, understand their behaviour and go out and find them not wait for the consumer to come to them. (More about the consumer here)
It needs to be clearly communicated what the product stands for -functionality, performance, expectation.
3. IT’S A LOVE AFFAIR
The company’ marketers mission should be to make both fellow employees and consumers fall in love with the products and stay in a long term relationship with them.
Internally, everyone from the CEO to the temp receptionist (including retailers, floor staff, distributors) should understand, use and feel a connection to the product.
I am amazed how many companies do not give away products to their employees to try. (Yes, sometimes there are tax restrictions for giving away products for free but there are always solutions around it).
If we don’t love what we sell, if we are not willing to buy it ourselves, how can we expect our consumers to do so and keep coming back for more?
Love in this case means deepening our understanding and expertise on the product.
“I am a great sales person, I can sell anything to anyone”
he said to me. As though it was a challenge to be won
This is such an archaic view of a sales person’s role. Imagine you sell something you love to someone you care about. You will be talking to them for hours, about how it can change their life, make it better, easier.
Making a great product that people will want to talk about it to their friends is the best marketing you can ever have.
More about product recommendation coming up soon.
Investing in making everyone who comes in contact with the product, knowledgeable about it and emotionally invested, will yield great long term results.
4. BUILD THE STORY (AND MEAN IT!)
This is clearly easier for some more emotional categories and the real challenge is how to find this emotional link.
“It turns out that once you start increasing the emotional energy or inanimate objects, an unpredictable chain of reaction is set off”
You might have heard about the Significant Objects project devised by Rob Walker and Joshua Glenn. In short, they went out and purchased about 100 objects for $128.74 with an average price of $1.25 from thrift stores and garage sales, then hired writers to write a story about these objects which ended up selling for $3,612.51, almost 30 times more!
Here is the twist: The bidders knew about the made up stories, it was not kept a secret but they still were willing to pay the premium.
Moral of the story: by building a strong product story, the focus shifts from price to value.
Watch out: The story is not about putting together a narrative that sounds good and lying to the customer. It is about having a worthy product that speaks for itself (true to its promise, with great performance, ingredients, inspiration, people’s usage stories etc} that consumers can identify with and making it appealing for them to buy it.
Don’t try to cut corners, you will eventually get exposed. Make your product as great as it can be and trust me when I say:
“A consumer will always pay the extra €€* if they feel the product is right for them. Make it worth their investment”
*within the price bracket that they operate in. So if they are willing to pay €10 for something, they will be inclined to pay 12, they won’t necessarily be willing to pay 50. More about pricing coming up here.
WHAT TO DO IN A NUTSHELL
- Build a meaningful launch plan. Ask yourself: why are we launching what we launch, what is the goal, what are we bringing to the consumer, ask people in your company who are in the target group, would they buy this product and why. Even if the goal of the launch is to recover lost sales or an opportunist launch, be honest so as to set expectations – its ok, everyone does it!
- Build great products. Whether it is a 10€ or a 100€ product, make it the best it can be, treat them like your babies, take the time to get them right, don’t cut corners
- Measure success. Assess why a product is/is not selling. Ask yourself: what makes it successful, is it targeted to the right consumer, is it in the right retail environment, it is clear what the benefit is
Want help putting together a workshop on this? Contact me here