Many business owners think that the only marketing strategy they need is to build something faster, better and cheaper. At that point, all customers will run out and buy their product. The reasoning goes that if I sell them something that is better, they will forget what they are currently using and buy mine the next chance they get. This is a poor marketing strategy that is doomed to failure.
Take Waterless Urinals for example. On the surface, it seems like an idea that most buyers would want to accept. The need for water is eliminated and this solves a big problem. The executives that created a marketing plan for the urinals never saw their biggest barrier to entry coming: The Plumbers Union.
In a recent issue of Wired Magazine, they describe the sheer competition from plumbers that Falcon Waterfree Technologies had trying to get their urinal approved for sale. Why would plumbers want to prevent this product from coming to market? Simply because it required no water and no plumbing and they were concerned it would affect their business.
After an 8 year battle, the compromise was to let the waterless urinals be installed, but building code would still require the water pipe to the urinals but capped off and not used! Seems absurd but it worked.
What incumbent is lurking around your new product introduction that may oppose you?
Interesting point there Barry. Realizing who the strategic partners in the beginning would of made have helped them see the possible outcome. Reminds me of the death of the Delorian car.
I wonder if they could of tapped into the other controlling market, which would be the consumers…as oppose to the Plumbers Union. I’ve always believed, if there is a wall that you can’t get through, go around, go on top, or if you can, go through it. Take people with you in the process, its not easy doing it alone.
The cost of innovation could be high (cost of jobs), but then, if we don’t innovate, we’ll fall behind, and the cost down the road will definitely be higher. Change is good, we just need to adapt to change, and not stay in one point and get swept away by the current of innovation.
Entrepreneurs need to remember that consumers buy new products because they are a break with the past.
Focusing purely on “cheaper” means you are commoditizing your product. With a commodity, you only shop based on price because there really isn’t a difference between brands. Do you buy the “best” white bond printer paper or do you buy the cheapest?
Historically, popular products are those that change how we work or live. For example, the old illuminated Bibles that took years of work by a monk were substantially outperformed by the Gutenberg Bibles. Why?
Illuminated manuscripts are beautiful, written on fabulous parchment and display true craftsmanship. Whereas a moveable type printed book was sloppy, tended to smudge and used the nastiest pulp paper.
But Gutenberg Bibles were written in common languages and printed en mass. Suddenly anyone could own one without having to read Latin. Because this new product changed the lives of people, it succeeded.
Don’t try to compete head-to-head with your product. Instead, find the angle where you can make the most impact. That’s how you succeed.
Excellent points!!