Whether or not you are a fan of American Idol, this iconic / painful reality show represents success of the highest calibre in an extremely competitive marketplace. Let’s examine the categories of its success.
• Audience Engagement. Through phone voting, American Idol engages the local audience of each of its international shows. The audience is empowered to influence the show’s contest and as a result holds a personal attachment to the process and outcome. There is no more powerful way to maintain and grow a target market than to gain their involvement in your business.
• Advertising. American Idol is a case study of how to successfully maximize advertising potential and Share of Voice (SOV) in a commodity marketplace. In every single target market and country where the show is hosted around the world, Idol creates a small market media frenzy by hosting and publicizing try-outs for their upcoming show. Local media focuses on local talent and constantly engages new audiences in new-to-American-Idol communities. The media follows the successful applicants throughout the process until they reach the show. The show obviously creates massive PR but it doesn’t end there; a PR strategy is created to support the winners and runners-up to ensure that their success and near-success becomes stories unto themselves. Finally, by continuing to follow up and report on past winners, American Idol helps itself to build Idol’s reputation for each new show. The lesson here is that PR does not start and stop with the product or service being offered.
• Growth. What started out as ‘American’ Idol became a global powerhouse in the most lucrative television markets around the world. Recognizing that audiences outside of the USA would not be engaged in a contest of American talent, American Idol became ‘Idol’ and branched out into Canada, Australia, Asia, Israel, United Kingdom and Latin America. Local broadcasts are tailored to cater to local tastes (popular celebrity judges etc...) and each show builds upon the success of the original American Idol. The real benefit to the business of American Idol is that they have grown their revenue potential from advertising in the USA to being a global channel for national and multi-national enterprises. American Idol now derives revenue from not one market but all major markets in their industry worldwide.
Whether or not you are a fan of American Idol, step back and take a moment to analyze the simplicity of its business model and the key factors contributing to its success. If you are a business owner or leader, there is a lot you can learn from watching those who watch.
Thursday, September 24, 2009
Friday, June 5, 2009
Can You Choose Not To Take Part In the Recession?
I recently had an enlightening conversation with a businessman whom I admire immensely. He commented on the stress and pressure he had been exerting on himself during this challenging economic state. The operative word here is ‘had’.
Completely at ease, he explained his 3am epiphany to me. Lying awake in bed with his family asleep all around him, this incredibly intelligent, successful, and influential business leader finally realized that it was not his fault. The downturn in his business was not his fault. No matter how much he denied participating in the recession, no matter how hard he worked and more importantly how smart he worked, he realized that he could not shield his business from the effects of the global economic meltdown. And then he slept.
His lesson to me was the following: it is okay to blame the economy. You can do everything right and still not achieve your business goals. Change your expectations; allow for all of your hard work to bear less fruit than it would have last year. And at the end of the day, go home and relax knowing that you are doing everything you can to help your business succeed.
Sleep well my friends, you are not alone.
Completely at ease, he explained his 3am epiphany to me. Lying awake in bed with his family asleep all around him, this incredibly intelligent, successful, and influential business leader finally realized that it was not his fault. The downturn in his business was not his fault. No matter how much he denied participating in the recession, no matter how hard he worked and more importantly how smart he worked, he realized that he could not shield his business from the effects of the global economic meltdown. And then he slept.
His lesson to me was the following: it is okay to blame the economy. You can do everything right and still not achieve your business goals. Change your expectations; allow for all of your hard work to bear less fruit than it would have last year. And at the end of the day, go home and relax knowing that you are doing everything you can to help your business succeed.
Sleep well my friends, you are not alone.
Thursday, May 7, 2009
It’s Who You Know
People don’t do business with people they don’t know exist. The same thing is true for companies. In this e-world of facilitated communication and information exchange, it is easy to assume that your target customer will find you if they need you. The reality is that they won’t go looking for you at all if they already have a contact offering your products or services.
This article is intended to be short so that you will use the time you budgeted to read a longer article to reach out to 3 people who you should have contacted a long time ago. Don’t wait for them to find you, especially if you haven’t given them a good reason to go looking.
This article is intended to be short so that you will use the time you budgeted to read a longer article to reach out to 3 people who you should have contacted a long time ago. Don’t wait for them to find you, especially if you haven’t given them a good reason to go looking.
Tuesday, April 28, 2009
Make the Swine Flu Work For You
There is (pardon the pun) a ‘viral’ amount of media surrounding the swine flu right now. The question is, how do you translate this into an advantage for your business:
1. Make sure that you do not actually have the Swine Flu
2. Advertise that your business is Swine Flu free and point out that your competitors have not been able to make the same claim.
3. Avoid speaking Spanish or with a Mexican accent when talking on the phone (this can help you to avoid rumours...).
4. Publicly condemn Swine Flu (if your target market includes politicians, you should communicate on their level).
5. Try your products or services on yourself. If you do not contract the Swine Flu afterwards, you can claim that your products or services may have saved your life.
6. Conduct a mystery Swine Flu shopper visit at your competitor’s establishment. Try to find out if they have been to Mexico lately, perhaps they eat burritos? The next step should be obvious: have them quarantined.
7. Try to get the phone number: 1 8NO FLU HERE
8. Create a large public notice board advertising how many days since the last cough in your workplace.
9. Set up Swine Flu protest marches in front of your competitor’s establishments.
10. Flights to Mexico are cheap right now, buy tickets for your competitors and send them in a card congratulating them on their integrity in this tough economic environment.
1. Make sure that you do not actually have the Swine Flu
2. Advertise that your business is Swine Flu free and point out that your competitors have not been able to make the same claim.
3. Avoid speaking Spanish or with a Mexican accent when talking on the phone (this can help you to avoid rumours...).
4. Publicly condemn Swine Flu (if your target market includes politicians, you should communicate on their level).
5. Try your products or services on yourself. If you do not contract the Swine Flu afterwards, you can claim that your products or services may have saved your life.
6. Conduct a mystery Swine Flu shopper visit at your competitor’s establishment. Try to find out if they have been to Mexico lately, perhaps they eat burritos? The next step should be obvious: have them quarantined.
7. Try to get the phone number: 1 8NO FLU HERE
8. Create a large public notice board advertising how many days since the last cough in your workplace.
9. Set up Swine Flu protest marches in front of your competitor’s establishments.
10. Flights to Mexico are cheap right now, buy tickets for your competitors and send them in a card congratulating them on their integrity in this tough economic environment.
Monday, March 16, 2009
USA vs Canada – Doing Business in the US, From a Canadian Perspective
Before I start and to ensure transparency, I am Canadian. I also hold the American business market in extremely high regard and believe it to be the truest form of capitalistic opportunity available to the world. That being said, there are risks associated with targeting a market such as the US for international business, let the seller beware.
• The US population is approximately 10 times the size of the Canadian population. Ten times the buyers, and ten times the sellers. Before you decide that expanding your target marketplace to the US is the answer to all of your dreams, spend a significant amount of time assessing the US competitive landscape. If you are having a tough time setting your business apart from its competition here in Canada, you will sink 10 times deeper into obscurity in the American market.
• One word: shipping. Creating an internet platform to enable effective web marketing and online revenues sounds wonderful. That being said, Americans tend to have cheaper production costs and cheaper shipping costs. You need to figure out how you are going to compete financially when your US competition has lower overhead for the same product that you offer.
• The United States has an entirely different legal system than we do in Canada. Prior to assuming that you can just start shipping your product across the border, consider the following:
o Your product may not be legally protected, (the patent you have may not hold water, or worse, be in conflict with a patent held by an American competitor).
o You create an entirely new channel or legal exposure. Think really hard before you throw rocks at a hornet’s nest. The American society is a litigious one and you don’t want to leave yourself open to a host of lawsuits.
o Insurance. Make sure that your insurance here in Canada covers you in the US.
• Americans prefer to buy American. How are you going to provide an incentive for them to counteract their protectionist ideologies?
• Are you going to try to get in and get out, or are you going to try to create a long term business relationship with the American marketplace. If your product is successful in generating revenue in the US, you can expect a number of US based copycat companies to come on board with the same products that you offer. If you are planning to stick it out with your American customers, you need a strategy in place to ensure that you remain relevant and competitive.
The market in the United States is far too attractive a revenue stream for any savvy business person to ignore. What I am stressing is that the US market needs to be respected as a truly international marketplace, not an extension of the Canadian market with deeper pockets. Do the due diligence required to properly assess your risks and your benefits. I bet that you will still see opportunity but will realize that it will take a lot more work to do it right than you would have ever expected.
• The US population is approximately 10 times the size of the Canadian population. Ten times the buyers, and ten times the sellers. Before you decide that expanding your target marketplace to the US is the answer to all of your dreams, spend a significant amount of time assessing the US competitive landscape. If you are having a tough time setting your business apart from its competition here in Canada, you will sink 10 times deeper into obscurity in the American market.
• One word: shipping. Creating an internet platform to enable effective web marketing and online revenues sounds wonderful. That being said, Americans tend to have cheaper production costs and cheaper shipping costs. You need to figure out how you are going to compete financially when your US competition has lower overhead for the same product that you offer.
• The United States has an entirely different legal system than we do in Canada. Prior to assuming that you can just start shipping your product across the border, consider the following:
o Your product may not be legally protected, (the patent you have may not hold water, or worse, be in conflict with a patent held by an American competitor).
o You create an entirely new channel or legal exposure. Think really hard before you throw rocks at a hornet’s nest. The American society is a litigious one and you don’t want to leave yourself open to a host of lawsuits.
o Insurance. Make sure that your insurance here in Canada covers you in the US.
• Americans prefer to buy American. How are you going to provide an incentive for them to counteract their protectionist ideologies?
• Are you going to try to get in and get out, or are you going to try to create a long term business relationship with the American marketplace. If your product is successful in generating revenue in the US, you can expect a number of US based copycat companies to come on board with the same products that you offer. If you are planning to stick it out with your American customers, you need a strategy in place to ensure that you remain relevant and competitive.
The market in the United States is far too attractive a revenue stream for any savvy business person to ignore. What I am stressing is that the US market needs to be respected as a truly international marketplace, not an extension of the Canadian market with deeper pockets. Do the due diligence required to properly assess your risks and your benefits. I bet that you will still see opportunity but will realize that it will take a lot more work to do it right than you would have ever expected.
Friday, March 13, 2009
Have You Got What It Takes?
Prior to embarking on a new business venture, entrepreneurs will often act responsibly by performing a detailed assessment of the potential of their business idea. They will analyze their target marketplace, the competitive landscape, the unique selling proposition of their product or service and how their proposed messaging will resonate with their target customers or clients. They will confirm the applicability of their business model, their supply chain, production, the legal requirements and accounting protocol for their business. They will forecast sales and new competitive entrants to their market. They will layout plans for public relations and corporate communications. Investor packages and documents will be prepared. They will research the process of taking their company public. And without a doubt, begin the process of selecting the international locations of their beachfront homes situated strategically around the world.
All of this is extremely important, well maybe not the last step so much.... But there is one essential thing that is almost never assessed during this lengthy process of due diligence: the assessment of the ability of the entrepreneur to successfully lead this new business. In other words, can they actually do the job.
There are a number of personality traits that are proven to be beneficial in the business world:
• Task orientation
• Logical thinking
• Ability to multitask
• Leadership capacity
• Integrity
• Work ethic
• Ability to eliminate emotion and ego from business decisions
• Vision
• Dependability
Before you invest time and money to investigate whether or not you have the next million dollar idea, spend some time assessing your own skills and abilities. Objective introspection is technically impossible so I would recommend the following to gain additional insights into your own strengths and weaknesses:
• Seek out an expert within your target marketplace, find out what you will need to be successful
• Meet with a business coach
• Seek out a mentor (someone who has your best interests at heart and has the experience to help you avoid making the same mistakes that they made)
• Talk to qualified family and friends (people who have some experience and knowledge about the business area you would like to enter into)
Once you are armed with their feedback, you will be better prepared to fill the gaps in your skill set with help from qualified individuals. You can also write a business plan that focuses on your strengths and thus has a far better chance of succeeding.
All of this is extremely important, well maybe not the last step so much.... But there is one essential thing that is almost never assessed during this lengthy process of due diligence: the assessment of the ability of the entrepreneur to successfully lead this new business. In other words, can they actually do the job.
There are a number of personality traits that are proven to be beneficial in the business world:
• Task orientation
• Logical thinking
• Ability to multitask
• Leadership capacity
• Integrity
• Work ethic
• Ability to eliminate emotion and ego from business decisions
• Vision
• Dependability
Before you invest time and money to investigate whether or not you have the next million dollar idea, spend some time assessing your own skills and abilities. Objective introspection is technically impossible so I would recommend the following to gain additional insights into your own strengths and weaknesses:
• Seek out an expert within your target marketplace, find out what you will need to be successful
• Meet with a business coach
• Seek out a mentor (someone who has your best interests at heart and has the experience to help you avoid making the same mistakes that they made)
• Talk to qualified family and friends (people who have some experience and knowledge about the business area you would like to enter into)
Once you are armed with their feedback, you will be better prepared to fill the gaps in your skill set with help from qualified individuals. You can also write a business plan that focuses on your strengths and thus has a far better chance of succeeding.
Tuesday, March 10, 2009
A Million Dollar Business Idea
Recently, I came to realize that several of the most fascinating, constructive, and lucrative business meetings I’ve had have been the result of the following process. When the realization first hit me, I walked myself back through my experiences and drew upon the conclusion that I could not have acted in a more focused and strategic manner had I planned it from the beginning. If there was a Nobel Prize for sales, the following process would be celebrating on a beach somewhere right now.
• Somewhere in back area of your office or store, set aside a small area which I will refer to as your ‘showroom’.
• Think hard about who your ideal customer or client is and identify a material object that they are likely to purchase.
• Using a sales forum specific to your local area (Craigslist, eBay, Kijiji, newspapers...) find a posting where someone is selling one of the items that you have selected.
• Set up a meeting with the seller and if you like what they are selling, purchase the item.
o The exact same process I am describing below is applicable to your purchase of this item. Do not waste this opportunity.
• Take the item back to your store or office and place it in your showroom.
• Using the same means by which you were able to track down the item for your purchase, advertise the item for re-sale. If you can charge more than you purchased the item for, consider it a bonus.
o I recommend free online advertising sites as they are extremely popular and have the added benefit of being free.
o Where there is a charge to post your ad, build the advertising cost into the price of your product whenever possible.
• Each time someone wants to purchase your item, they have to walk all the way through your office or store in order to reach your showroom and view the item.
• While they are walking through your store, you have a perfect opportunity to present your business and learn more about theirs.
• Most importantly, you have already qualified this person as a potential client or customer of your business because of the item that you are selling.
This process is all about qualified lead flow with guaranteed face to face engagement and presentation of your products and services. A multimillion dollar industry has been built providing qualified leads for businesses, usually just providing contact information of potential customers in the form of emails or phone numbers. My process is free and guarantees you multiple opportunities to meet with your target marketplace, both when you buy and sell your items. Best of all, this process is not only free but provides the opportunity to make a few bucks on each of your purchases.
• Somewhere in back area of your office or store, set aside a small area which I will refer to as your ‘showroom’.
• Think hard about who your ideal customer or client is and identify a material object that they are likely to purchase.
• Using a sales forum specific to your local area (Craigslist, eBay, Kijiji, newspapers...) find a posting where someone is selling one of the items that you have selected.
• Set up a meeting with the seller and if you like what they are selling, purchase the item.
o The exact same process I am describing below is applicable to your purchase of this item. Do not waste this opportunity.
• Take the item back to your store or office and place it in your showroom.
• Using the same means by which you were able to track down the item for your purchase, advertise the item for re-sale. If you can charge more than you purchased the item for, consider it a bonus.
o I recommend free online advertising sites as they are extremely popular and have the added benefit of being free.
o Where there is a charge to post your ad, build the advertising cost into the price of your product whenever possible.
• Each time someone wants to purchase your item, they have to walk all the way through your office or store in order to reach your showroom and view the item.
• While they are walking through your store, you have a perfect opportunity to present your business and learn more about theirs.
• Most importantly, you have already qualified this person as a potential client or customer of your business because of the item that you are selling.
This process is all about qualified lead flow with guaranteed face to face engagement and presentation of your products and services. A multimillion dollar industry has been built providing qualified leads for businesses, usually just providing contact information of potential customers in the form of emails or phone numbers. My process is free and guarantees you multiple opportunities to meet with your target marketplace, both when you buy and sell your items. Best of all, this process is not only free but provides the opportunity to make a few bucks on each of your purchases.
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