Author: Robert Borneff

The Hour of the Underdog

Robert Borneff Marketing , , , 0 Comment
The Hour of the Underdog

Successful, well-managed companies are excellent at developing and improving their products and services, so that they perform  exactly according to the customers’ needs. These companies listen carefully to their customers and everything that may not please the customer is rejected.

Professional market research, good business planning and proper execution of the plan are cornerstones of good management.

Successful companies grow continually to maintain their share prices and to create new opportunities for their employees. To maintain that growth the focus is on large markets that promise a maximum of revenue.

Sounds good! Doesn’t it? There is only one problem. Large and well-managed companies are often good in developing and improving products that already exist. This can be for example a recliner with even more motion functionality or a softer rug or faster closing window shades.

But what about products that are new on the market or not even invented yet. What about products that are currently only sold in niche markets? What about products that provide a lower margin than the mainstream products? For example a recliner with integrated butler to operate the TV remote and provide drinks; a self-cleaning carpet or grocery bags that dissolve into air after 48 hours of use.

It turns out that big companies are often only good with sustaining technologies, meaning already existing products. Regarding new or different products these companies often fail. The reason for that is, that the same management practices that made these companies to industry leaders also make it extremely difficult for them to work with disruptive technologies. This is the conclusion of Professor Clayton Christensen in his book The Innovator’s Dilemma.

So, What’s the Big Deal?

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Warning: Contagious!

Robert Borneff Marketing , , , 0 Comment
Warning: Contagious!

Watch out! Don’t get too close! This is CONTAGIOUS! Is this about a disease or germs or anything like that? No! Not at all! It’s about ideas and products and a great book that describes why some things become very popular and others die before anyone notices.

Jonah Berger explains in his book Contagious that there are 6 STEPPS that make things popular or go viral on the internet. See how you can use them for your messages.

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Reinventing Retail and Design

Robert Borneff Marketing , , , 0 Comment
Reinventing Retail and Design

Retail is changing! In her blog post on June 6, 2016 Jennifer Marks with Home &Textiles Today quotes the last WSL Strategic Retail Survey (”How America Shops Mega Trends”), that 55% of women said their top spending priority is paying off dept, followed by saving (48%) and vacations (35%). Jennifer Marks concludes consumers are losing their interest in accumulating “stuff”.

On the bright side Deloitte found out (Retail Volatility Index 2016), that small and mid-sized retailers are taking market share away from traditional retailers (also see Disruption in Retail). That’s mainly because small retailers can offer niche products and experiences that big retailers can’t offer. These small companies are well informed, prepared and adaptable, so they stick out from the competition.

I was blessed to be able to attend the opening session of the High Point Market in spring 2016 with Polly LaBarre (The Mavericks at Work) discussing “Reinventing Retail and Design”. Polly described in her sweeping half hour talk what it takes to make a difference. The following are her key points of her presentation:

  1. Stand for something

Successful companies differ from the competition in their core values. Some may be specialized on a certain product group others may serve a certain customer group but every company has a mission and values which it stands for.

  1. Do they work of art

Successful companies develop their strategies together in a bottom-up atmosphere. It is an open and honest discussion where all team members participate equal.

  1. Open Up

Successful companies not only have an open working atmosphere (internal),  they are also opening up to the world outside. They are very interested in the opinion of their customers and also take criticism serious.

  1. Lead without authority

Because of the open internal and external atmosphere, hierarchic structures or military style management forms are missing. Everything is in a steady flow. The loss of control is accepted.

  1. Learn as fast as the world is changing

Successful companies know that the world today is changing faster than ever before. Being on top of the development is crucial to maintain the lead long-term.

Certainly this sounds easier than done. But young organisations like Jazzy Jobber don’t have a past to which they are connected too. They are also not connected to expensive inventory or other assets like buildings and machinery. There are also no management structures that could block future development. These are only a few advantages that give organizations like mine a little head-start. Time and effort will show how to benefit from it.

Source:

The next big idea; Jennifer Marks; Home&Textiles Today; 2016

 

 

7 Types of Multi-Channel Customers

Robert Borneff Marketing , , , 0 Comment
7 Types of Multi-Channel Customers

Customers are enthusiastic about shopping, independent of where they go to. It can be the Internet shop, the social networks or in the brick and mortar store.  With consumers increasingly becoming more experienced with the internet, retailers need a solid “cross-channel” strategy. The search for product information, the sales initiation and the sales incentive often take place in other channels than the actual purchase.

Retail of tomorrow means that one thing cannot be done without the other. While some of the customers are happy to receive in-house advice and then shop online, other customers inform themselves online and then buy in the brick and mortar shop. In addition, very often the Internet helps to find the best offer.

This development offers many opportunities for retailers. Companies should find out how to reach their target customer with different sales channels to gain new customers and keep them loyal  in the future. An important part here is the emotional connection of online customers with their favorite online shop.

But who exactly is the customer who buys through these different channels? Roland Berger Strategy Consultants , has specified the following purchase types:

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Disruption in Retail

Robert Borneff Retail , , , 0 Comment
Disruption in Retail

For a long time the advantage of leading retailers was their size. They were able to buy goods cheaper, because they bought large volumes. They had lower overhead costs because they operated many stores with centralized structures. They had large marketing budgets to run expensive advertisement with a lot of it on TV. Their sales were continually rising.

But suddenly the party was over. Much smaller retailers are snatching away market share from the big guys. According to an article in the Economist, large consumer packed companies (CPG) lost 3% market share between 2011 and 2015. What happened?

Why small retailers gain market share

  1. Online marketing is much cheaper and reaches more and more people. At the same time people are watching less TV. The advantage of big marketing budgets is declining.
  2. Through outsourcing of the production and online distribution, it’s easier for small companies to enter the market.
  3.  Small companies are often more flexible and understand better to keep up with the pace of their fast changing customer preferences.
  4. Consumers willing to spend more for a certain product tend to prefer smaller brands. Traditional big brands are the shops for basic, cheap products. According to Deloitte one-third of American consumers, would pay at least 10% more for the “craft” version of a product.

The Need to Change

All this has provided a big opening for smaller firms. The retail industry seems to enter a new world. Now there are multiple opportunities to navigate around the competition for brick and mortar stores as well as online shops.

The key for retailers to take advantage of these opportunities is to be brave enough to put everything aside that was once important and rethink and redefine the business completely. Last month Target announced that it will commit more than $7 billion to adapt to the rapidly evolving customer preferences. Everything from pricing models and store design to the retail experience and customer relation needs to be questioned. Standing still is not an option and boldness in this marketplace will be rewarded. Jazzyjobber will be part of this journey and welcomes everyone to join in.

Source:

  1. Invasion of the bottle snatchers; Economist 2016: http://www.economist.com/news/business/21701798-smaller-rivals-are-assaulting-worlds-biggest-brands-invasion-bottle-snatchers
  2. TargetCorporate,  February 2017: https://corporate.target.com/article/2017/02/financial-community-meeting

How to use Digital Data for Your Business

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How to use Digital Data for Your Business

The availability of more and better digital data helps companies to better understand their customers through instant feedback. According to Ajaz Ahmed and Stefan Olander in the book Velocity, brands need to use digital data to be “useful” for their customers rather than “convincing”. The following are the seven take-aways of the book:

  1. A Smith & Wesson beats four asses

New technology is changing the rules. With mountains of data available, brands should carefully collect significant digital data to learn about their customers and adapt to the new circumstances. Innovation and reinvention must become an ongoing task. Resisting the change will lead to a decline of the business. Small businesses have the advantage of being more agile and can react faster to change. Small organizations should live up to a culture of innovation and be ready to leap at any given time.

  1. It’s easier done than said

Changes and innovation should be put in action immediately, without long preparation. If it does not deliver the expected results, it always can be changed afterwards. If you know what your customer wants, deliver it before he figures it out by himself. Action tops strategy!

  1. The best advertising isn’t advertising –make meaningful connections

Business is done between people. People need to be connected to do business. Advertising is not enough anymore. The customer needs to be engaged. Digital technology allows more communication in different forms (blog, facebook, twitter, etc.) The customer needs to understand and share the story behind a service or a product. Serving the customer means entertaining the customer and creating emotions.

  1. Convenient is the enemy of right

Shoot for the moon, so you can hit the stars. To be on top of the game it’s necessary to work on the highest level of achievement. Learn from experience – yours as well as others. Make things as simple as possible.

  1. Respect human nature

Use digital data to learn about the customer and combine it with real life experience to make life easier, richer and more fun. Apply your messages to different senses of the human body (visual, audio, smell etc.) Support your customer in choosing the right product. Remember the feeling when a pharmacist gives you the right product for you out of a two shelf collection.

  1. No good joke survives a committee of six

Make decisions based on facts and stand behind them. Do what’s right and not what everybody does. A open discussion must be honest and lead to practical decisions. Be guided by your mission and your values.

  1. Have a purpose larger than yourself

Be guided and inspires by your mission. Dream big and love what you do. Be taken away be the people you serve. Have an overall goal that helps the public.

On a personal note I think that a lot of companies don’t realize the power and opportunities of digital data. Being engaged with your customer and relying on feedback will be a crucial part of many businesses in the next years. Here at Jazzyjobber I am looking for ways to create an organisation that prioritizes what the customer wants and delivers what’s requested.

The 2 Main Things in Retail Today

Robert Borneff Retail , , , 0 Comment
The 2 Main Things in Retail Today

The possibilities to sell goods to customers have never been easier and numerous than today. eBay, Etsy, Amazon, Craigslist, online stores, mail-to-order, garage sales, flea markets, auctions, product parties  and pop-up stores are just a few alternatives to the classic physical store. This huge selection enables customers to shop according to their preferences.

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Let’s get together

Robert Borneff Lifestyle , , , 0 Comment
Let’s get together

What’s better than getting together with friends and family? Our kids have parties all the time. We need to open up to our colleagues, friends and neighbors. We should enlarge our circle of friends. Our homes are not made to be hiding places. Any time spent with friends and family is worth the effort of serving a meal and creates happiness.

Keep it simple

A dinner party should always be gathering of like-minded people. Only invite guests that you really want to have around yourself and of whom you believe that they are interested in one another. Eight, ten people are a good size, so everyone can talk with each other.

Choose a one course meal that you are familiar with. Certainly you can choose something easy, like pasta. That is always a hit!. You may serve it with a soup to start, a salad on the side and a dessert afterwards. Important are good bread, butter, and olive oil for munching. If you choose to work with a catering service, the atmosphere could be a little bit like in a restaurant. Not as precious and authentic as home prepared food. It does not matter if you have been standing in the kitchen for one hour or ten. The only thing that counts is that it tastes good.

Relax! It’s not a competition

To ease the stress the best thing is to prepare the day before; calm and with leisure. The whole thing is supposed to be a pleasure. The host belongs to the table and not in the kitchen; the guests want to enjoy their host! Therefore  you might prefer stewed or oven-baked dishes over au-point cooked dishes. Comfort food is always popular.  Soups can be prepared the evening before, desserts anyway. Personally I am a fan of Hungarian Goulash, which tastes better every time you warm it up.

Be careful with experiments. It can be fun to try out dishes the first when you have guests, but you will need a back-up plan in case something goes wrong. You don’t have to apologize to your guests but you need a trick for the show to go on.

Have a great time

You are the life of the party! It’s your turn to get the party started! Just do not rush! Invite your guests early so they can mingle and snack on nuts and appetizers before the dinner starts.

Instead of serving each dinner on plates it shows more generosity to serve “family style”, which means everybody helps himself from the pots and plates. That makes it also easier for the guests to open up to their neighbor. And the host can devote himself to his highest duty: to enjoy the evening.

Party more and stress less! Hosting small casual parties does not have to be stressful. You’ll probably have a lot of time to enjoy the party with your guest. People will appreciate your effort and hospitality. Over the delicious food and great conversation you may look forward to the next get together.

Sailing Blue Oceans

Robert Borneff Marketing , , , 0 Comment
Sailing Blue Oceans

Business is tough! When you start a business, you should find out what the competition is doing! To gain market-share you have to beat the competition! To be successful you have to offer a better product at a lower price offering better service! – Sounds familiar? We all know this. Business books are full of it. But is this really the way for a company to be successful, in a time when everything seems to be upside down? Can it not even be dangerous to do what competitors are doing, just trying to do it better?

Markets, products and customers are changing today faster than ever before. Who still thinks that phone calls overseas have to be expensive? How much do we have to pay for social media? Can you publish a book yourself today? Hasn’t Amazon opened a store where you can leave with the product without payment?

One way to be successful in today’s marketplace is to not to fit in or stick out of the competition, but to be different. Instead of butting heads with other companies, eliminate the competition by doing what nobody else does. Create new demand for products and services that only you offer. Sounds difficult? It is, but wait, there is help.

W. Chan Kim and Renée Mauborgne developed a strategy to maneuver around the competition and sail in untapped ocean of new markets. Whereas other companies fight in cutthroat competition that turns the ocean bloody red, companies following this strategy may find calm blue oceans to sail in. That’s why it’s called Blue Ocean strategy

How does this work?

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Fair Trade and Home Decor

Robert Borneff Marketing , , , 0 Comment
Fair Trade and Home Decor

In times when one food scandal chases the next one and when the news is covered with reports about miserable working conditions and accident disasters in various countries of textile and furniture manufacturing, consumers are increasingly unsettled.

The Movement

“Good” products are no longer measured by their attributes, but by the stories they tell and their socio economic footprint. Trust is not a given fact, but has to be developed continuously and through transparency companies can establish confidence among their customers.  What emerges is a new type of critical customer that knows his power in a world of sharing and social media. The closer a product is to the body, the more sensitive the customer reacts.

The movement of “Fair Trade” is growing globally. It is the need for certified products in which people can believe in. On the one hand,  because it is important where products and their components come from. On the other hand, it also matters that there was value added in the region of production. Environmental protection, resource efficiency and corporate social responsibility change the economic system in the long term. Growth in the future will be generated by a new mix of economy, ecology and social commitment.  Certainly this also opens a multitude of possibilities for cheating and the fake environmental promotion (Green washing).  That subject will be left for another post here on Jazzy Jobber.

The Opportunity

For a long time Fair Trade products were limited to crafts and coffee, but as the Wall Street Journal recognizes in an article in 2015, “Fair Trade becomes a Fashion Trend”. And by the way, it’s not just fashion, but also home decor.

For companies in the Home Decor industry working with fair trade products may be a way to be different from the competition. It also shows that the company cares about social standards and sustainability. This can lead to gaining new customers who appreciate the added value of Fair Trade products. Last but not least, Fair Trade is an interesting growth market and the demand for fair trade products is rising.

Sources:

  1. Fair Trade – Von der Nische zum Trend; Zukunftsinstitut 2016

https://www.zukunftsinstitut.de/artikel/fair-trade-von-der-nische-zum-trend/

  1. “Fair Trade“ becomes a Fashion Trend; The Wall Street Journal 2015

https://www.wsj.com/articles/fair-trade-becomes-a-fashion-trend-1436307440