Monday, October 10, 2011

Instant MBA: It's Not About How Much Your Sell Your Business For, It's About Being Unique

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Monday, October 10, 2011

Today's advice comes from Reuters' interview with J. Christopher Burch, CEO of J. Christopher Capital and co-founder of Tory Burch:

"It’s not about how much you sell your business for; it’s how you provide a service or product that’s extra and do it in a unique and amazing way."

Many young entrepreneurs today don't think enough about the customer experience, Burch says, and instead focus on themselves. But without satisfied customers, a business isn't worth much.

Just starting out building a women's clothing line with his brother, Burch opened an order of sweaters to find that the sweaters weren't what he'd ordered. They were oddly sized -- "every single sweater was small enough to fit a monkey," he told Reuters.

But Burch didn't throw away the inventory or even send it back. Instead, he got inventive and somehow managed to present the sweaters to right consumers in an innovative way. He sold them all.

Thanks to his flair for adroit thinking and resourcefulness, and always keeping his customers in mind, Burch became an empire-builder in the business world.

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How Axe Became The Top-Selling Deodorant By Targeting Nerdy Losers

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Monday, October 10, 2011

How Axe Became The Top-Selling Deodorant By Targeting Nerdy Losers

Kim Bhasin | Oct. 10, 2011, 1:58 PM | 12 |

Marketers go to incredible lengths to learn everything about the consumer, especially with millions of dollars on the line.

Author Martin Lindstrom spoke with Unilever exec David Cousino about Axe, a multi-million dollar fragrance brand marketed toward men, for his book Brandwashed: Tricks Companies Use to Manipulate Our Minds and Persuade Us to Buy. Cousino shared an incredible, detailed anecdote about what they did to figure out who to target.

Unilever first analyzed the potential Axe user by breaking males down into six profiles:

The Predator -- He takes advantage of drunk girls, and lies about his job and where he lives
Natural Talent -- Athletic, smart, and confident. He doesn't need to lie to score
Marriage Material -- Humble and respectful, he's the sort of guy you want to bring home to Mom and Dad
Always the Friend -- He always hits that glass ceiling
The Insecure Novice -- He has absolutely no clue what he's doing, and things get awkward fast -- the geeks and nerds
The Enthusiastic Novice -- He has absolutely no clue what he's doing, but he's outgoing and tries valiantly anyway

Then, they determined that The Insecure Novice would be their natural target, since he needs the most help in getting women, and would be easily persuaded into buying a product that could aid the woes of nerdhood.

Next came the ads themselves. The Axe TV ads proclaim that it will help you get chicks. And not just one at a time -- their research showed that the ultimate male fantasy is to be irresistible to several sexy women.

The result? Axe became the #1 male antiperspirant/deodorant brand. It actually worked too well -- they had to backpedal a bit from the image because Axe had gained a reputation as a product that only losers use. Also, high school kids would even totally douse themselves in Axe, getting the brand into trouble with some school districts.

But overall, Axe has been a huge success because of how it targeted its marketing and took advantage of sexual fantasies. It still runs similarly themed ads.