Product management concepts for a consumer company -2

B2B, differentiation, differentiation, ideal customer, Marketing, Positioning, route to market, segmentation, single target market

Product management is actually a much stronger discipline with consumer companies – both in the FMCG and White Goods space. What has happened with the e-commerce companies is that they have actually taken the whole consumer marketing concept to a different scale. Having said that, all the companies which are successful even in the e-commerce space, have followed the basics of marketing / product management to the core.

What started this series of posts was the fact that while these companies were burning massive cash, they were still enjoying heavy premiums when they get listed in the stock market. So is it that they are blindly burning cash or is there a method to the madness.

I highlighted some of the concepts in yesterday’s post. Today let’s look at other things like Single Target Market. Amazon today is a very big market place where they sell their own products as well as provide a platform for others to sell and take a commission on items sold. But Amazon only started by selling books initially. They did not try to get into selling everything at once. And they just sold books first in the Americas before expanding.

Look at another company Uber – they were only the ride hailing App. They did not get into the Uber Eats or the Uber Connect till they had taken a dominant position in that market. Similarly Zappos – which is now part of Amazon – was only into selling shoes.

Generally when I talk of concepts and give ideas for targeting the customers, building partnerships, I speak from the perspective of a small or mid-sized company which is wanting to get into the market. So some of the ideas are very specific.

However the same concepts at a different level are also applicable over the e-commerce space. So while Amazon is a big daddy in the retail products space, a small start-up in India “Nykaa” started with just selling cosmetics and related products to ladies. Today if you want even a French perfume in India, your first port (in this case App) of choice would be Nykaa. Its become such a big brand for the cosmetics and related categories. Similarly in the fashion space its “Myntra”. These companies segmented the market even within e-commerce and specialised in certain areas and have made a success out of it.

So principles of marketing and product management won’t change, what could change is the scale, the risk and the delivery mechanisms.

Till next time then.

Carpe Diem!!!

Delegation to automated systems

Automation, Delegation

I don’t know who said it but its true we waste our life in days not years, we waste our lives in hours not days and we waste our life in minutes not hours.

So our life passes us by every minute of the day if we are not mindful about it.

There have been times in my life, a lot actually when I was wandering aimlessly not knowing what to do and wondering why the day was not ending. When I look back, it seems so stupid that I would do something like that.

Another thing where I used to end up spending a lot of small amounts of time was in paying bills. The electricity bill would come on a different date and the telephone bills on different dates and so on. Every weekend, every month I would find myself busy paying out bills.

Then I heard from Tony Robbins about batching jobs to improve productivity. I tried that and did succeed to a certain extent but since there were different dates o be monitored, the onus was still on me to figure out when to make the payment, before the last date.

My bank then started the facility of doing automated payments for all my utilities. That has created a major difference because now I don’t even have to think about paying of the bills. The bank monitors the last dates and makes the payments. Since my mind now knows that there’s nothing for it to do it just does not bother. So the Zeigarnik effect does not come into play.

When you delegate to people, you have to keep track and monitor. You cannot absolve yourself of the responsibility of the result that has to be achieved eventhough you have delegated the work to someone.

Bu when you delegate to automated systems, you just don’t have to monitor. That’s the advantage of computers. Once programmed they will keep doing the work repeatedly until the system itself gets spoilt, which is very rare.

Amazon, Bigbasket and other similar shopping sites do a similar activity when they prompt you in your monthly grocery shopping, so that you don’t have to remember individual items.

Once you get these small things which eat up the “minutes” in your life every month, you are able to save so much time. However if you end up spending those free minutes just moving around aimlessly then you have lost the advantage.

Till next time then.

Carpe Diem!!!