How can a business create value for customers? And how can you increase it without changing much about the product or service? Let’s think together. 1. Benefits Functional benefits are always a factor. You buy a watch to know the time. And maybe you dive a lot. So water resistance up to a certain pressure…
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Mental Availability: How To Make Your Brand The Obvious Choice (At The Purchase Moment)
In 2008, the financial crisis hit the US. People lost their jobs. Banks went bankrupt. Everybody thought the global financial system was about to collapse. And guess what people stopped buying in such an environment? Yes, luxury products. So luxury watchmakers also went into a crisis like many other industries. People didn’t buy expensive watches…
Value Innovation: How To Win In Crowded Markets By Ignoring Competitors
In the 1960s, commercial aviation was booming. And aircraft engine manufacturers wanted to take advantage of this new industry. They had expertise and large production capacity coming from the Second World War. Rolls-Royce was one of them. But they were small compared with American giants like General Electric. And how do you grow in this…
Brand Associations: How To Plant Your Brand In Customers’ Minds (Without Spending More)
In 1963, Aston Martin had to make a challenging decision. They had a successful racing team. But the company was struggling financially. And the costs of maintaining a racing team became unbearable. So despite their passion for racing, they decided to close the team. Now, racing is not only a passion project for car brands.…
Scissors-Rock-Paper: How To Turn Your Company’s Size Into a Competitive Advantage
In 1982, two employees at Xerox —John Warnock and Charles Geschke— decided to quit and start their own business. They were excited about developments in tech. So they wanted to ride the wave. Their idea was simple. As more people used computers, the world needed better ways to work with digital files. So they created…
Customer Inertia: How To Beat It And Increase Sales Beyond Expectations
In the early 1970s, The Fidelity Bank had a lot of money to lend. But nobody was asking for a loan. So they hired Ogilvy & Mather agency to make a new campaign. Now, imagine you are an Ogilvy copywriter. You have to write an ad to sell more loans. But there is a problem.…
Counter-Positioning: Why Your Brand Needs An Enemy To Grow Faster (And How To Choose One)
In the 1970s, BMW was an unpopular brand in the US. The other German brands already captured a place in American drivers’ minds. Mercedes meant comfort. Porsche meant sporty luxury. And Volkswagen meant practicality. But BMW? It had no identity. Some people didn’t even know that it was German — they thought BMW stood for…
Anchoring Beyond Pricing: How To Increase Your Brand’s Perceived Value
In the mid-1940s, the diamond cartel De Beers had a challenge probably no other company ever had. They controlled almost all the diamond mines in the world. And they had an excessive supply after the discoveries of huge mines a few decades earlier. But they had a dilemma. If they reduced the price and made…
Cross-Industry Innovation: How to Differentiate Your Brand By Ignoring Best Practices
In 2001, all business and tech publications were saying Steve Jobs just made a big mistake. Jobs announced that he decided to change Apple’s retail strategy. Up to that point, Apple had partnered with electronic retailers like Best Buy and Circuit City to sell its products. But it never worked out as Apple expected. Apple…
The Framing Effect: How To Give Customers a Good Reason to Choose You
You’ll remember the scene if you’ve watched Mad Men. In the 1960s, the FTC bans tobacco companies from making any health claims in their ads. Before that, it was normal to see ads with the “health benefits” of cigarettes. But public opinion was starting to change on tobacco. So Lucky Strike executives ask for help from Don Draper’s…
