Written by ZOOZ
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| Issue 36 |
We are pleased to send you the new issue of LaZOOZ.
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different sections each time, and does not
We have tried to keep it brief, knowing that your time is precious and your work is plentiful. Those who wish to learn more can find links to articles and sources of relevant information. We hope that you will find the newsletter useful. We would be glad to receive any
comments and suggestions.
Ari Manor, CEO, ZOOZ
On strategic development in practice
Marketing to “Non-Customers”
You don’t always have to go
head to head with competitors and try to “steal” market
segments from them. As we noted in this section in the
past it’s sometimes better to avoid head on competition
and work towards expanding the entire market. In order
to do this you should try and increase consumption of
existing customers. Alternatively, you can try and
persuade the “non-customers”, those that haven’t yet
bought products in this market, to start buying.
Turning “non-customers” into new customers may often turn out to be a particularly lucrative step. This will be our focus this time. This process, of focusing on the “non-customers”, is described at length in the book
Blue Ocean Strategy. How is it done? How do you turn consumer dissenters into new and potentially even enthusiastic and loyal customers.
Firstly, you have to understand why they haven’t been buying up until now:
- Who are the non-customers? Do they have common characteristics?
- What is it about the current products that they don’t like? What prevents them from buying?
- What do they buy instead? What substitute products do they use?
Secondly, you should develop new products for them that are tailored to their unique requirements:
- What needs to be done so that they start buying?
- How does the product, accompanying service, or price need to be altered?
- How do the points of distribution and advertising need to be adjusted to suit them?
Here are some examples of unique solutions for non-customers in the private car market. We will focus on customers that have
never bought a car before:
- Too young to get a driver’s license: Perhaps a specific model should be marketed to a 15 year old audience, which no car manufacturer bothers to target? There is a chance that when they do obtain their driver’s licenses, they’ll remember which manufacturer treated them seriously, like adults. This can lead to a first car preference for this specific model. This car should ideally be inexpensive, economical on gas, have a youthful design, compact size, good sound system, and a high safety profile (to satisfy the parents). A fully loaded Mini Minor manufactured in China?
- Drivers who prefer motor scooters: Maybe offer a trade-in for a motor scooter when you buy a car? Maybe give whoever buys a car a subsidized annual subscription for scooter rental inside the city – where there is free and abundant parking? Or provide car buyers with 50 “scooter taxi” rides for free? Or maybe even develop and offer a car with a special trunk that can easily store a scooter?
- Public transport passengers: This group generally lacks the resources required to buy and maintain a car. They perceive cars as being too expensive. Maybe offer them a basic and durable car on a time-sharing basis? Or develop a focused campaign for them on adverts
inside busses and trains? Maybe offer them a long-term
loan to purchase a car (and benefit from profit on the interest)? Maybe offer them a subsidy on gas and insurance for the entire life of the car (in collaboration with a national gas station chain and an insurance company happy to secure new and loyal customers for many years to come)?
- Taxi passengers: They hate having to look for parking, and sometimes prefer getting tax returns for their taxi rides. These are usually affluent individuals that if they would buy a car, it would be an expensive one. Perhaps offer these buyers a discount or full one-year subsidy on parking in a lot near their place of employment, as a perk? This can cost the car manufacturer a few thousand shekels, but he is accustomed to giving these kinds of discounts in any case. The buyers will appreciate this as a substantial bonus.
- Adults that do not have a driver’s license: They may have tried passing a test a few times and failed repeatedly, until they just gave up. Perhaps offer them driving instructors that will help them pass the test, for free? Many would be willing to commit to buying a car if they indeed passed the requisite test. It is possible to recruit especially patient instructors and hire them as paid employees, develop a unique course for the driving-challenged, and keep a small fleet of “instructional” cars. These non-customers will perceive this as extremely valuable, and it will sell a lot of new cars…
In numerous markets, if not in all, there are more non-customers than customers, and these definitely exceed the number of customers that can be “stolen” from the competition. There are more adults without cars than those with cars. There are a lot of people that don’t take vitamins. That don’t eat in restaurants. That don’t subscribe to movie channels. That don’t study at university. That don’t consume yoghurt. That don’t wear suits. That don’t visit museums. That don’t take digital pictures. That don’t subscribe to newspapers. That never seek consulting services. Maybe the time has come to focus on these people!
- For seminars on Strategy and Marketing:
(PDF booklet, in Hebrew)
- For the article on Blue Oceans in Israel:
- For additional articles on strategy:
- Information on strategic consulting:
Innovation ideas not yet realized
Ideas for innovation in erasable boards
following ideas were developed using various thinking tools, and do not exist at present (to the best of our knowledge):
- A board that is also compatible with permanent markers, which can be erased from it.
- A transparent board (you can draw a curtain and stage on it for example, and perform a puppet show behind it).
- An erasable board that doubles as a projector screen (with a coating that improves the quality of the picture projected on it).
- A board without a stand, with suction cups on the back (can be attached to a window, for example).
- A transparent erasable board with an integrated posterior projector installed under the board (can be used for presentations, and for writing).
- A black erasable board – you can write on it with fluorescent colors (has a more dramatic, surprising effect).
- An erasable board with strategic holes at the bottom for keeping markers and an eraser.
- A translucent board with internal lighting that makes it possible to change the hue of the board.
- A folding and portable board (like a screen), which can be stretched over a frame, or rolled up.
- An erasable board with an anti-reflex coating (prevents glare).
A tip on effective management
Participating in Exhibitions
www.wayn.com is not aimed at businesses but at travelers. The website’s name is an acronym of Where Are You Now? Travelers can register for free and utilize the site to document their trip, upload photos from their travels, write a travel journal, see who else is traveling to the same place, send and receive emails, write tips and recommendations, and view other travelers’ recommendations.
Business people can utilize this site to document and collaborate when they travel to conferences, exhibitions and business trips around the world. You can photograph interesting products, people and displays, and write lists and proposals, and thus involve the other people in your organization. When you are at a conference, your colleagues, customers and suppliers can also know that you are there. And if you do a good job of documenting the exhibition, it will help you immensely to effectively prepare for next year’s conference. And of course – you determine who has access to your pictures and journal, so that the confidentiality of your content is upheld. You can also share certain content with your family and friends, and other content with your colleagues.
In addition, if you are in a foreign city whether for business or pleasure, and you want to see who else is there (for example – another business person from your country) – you can search the site, make contact, and even meet. It’s a sort of international social network that introduces you to other travelers like yourself. Godspeed!.
- File sending website:
- Information about the Business Intelligence workshop is available
here (p. 21 in the Hebrew PDF file).