Posts tagged "startup"

Marketing Strategy

How to Position your Brand

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“A brand should strive to own a word in the mind of the consumer.” Al Reis and Laura Reis

When you walk into a supermarket with the intention of buying eggs, do you actually pay attention to the branding on the eggs or do you pick up whatever is available? I usually pick up whatever I find. However the decision is more complicated when I want to get a soft drink. Brands such as Coke and Pepsi have spent billions of dollars positioning their products as the only cola alternatives. A frame of reference has been created and no matter how many new rival products are introduced in this category, it is almost impossible to dislodge the current leaders. 7-Up did something very interesting with its positioning when it rebranded itself as the “Un-Cola”. Since it could not use the word cola in the customers mind, it reframed it’s positioning relative to its competition and took up a unique position in the minds of customers.

Naturally having the edge of being first in a certain category, has it’s advantages. However, competing in markets where there is already some competition, we need to figure out a way to convince potential customers, to use our product/service instead. This requires a lot of creativity and understanding for your target market and your competitors offering. As mentioned in prior posts, we have to take into account the sort of persona we want to project and what competitive edges we want to bring to the forefront. Take for example the rent-a-car business in America. Hertz had a large edge over the No.2 provider Avis. That was until Avis capitalized on its position by using the tag line “Avis is only No.2 in rent-a-cars, so why go with us? We try harder.” This statement dramatically helped the profitability of the company and more importantly helped customers develop a reference point between Avis and Hertz.

As a start-up organization we often cannot afford to pay tens of thousands to brand consultants to help us  develop positioning strategies. However all is not lost. The end goal is to own a word in the mind of the customer, or be able to communicate your business concept in 5 words or less. Much effort needs to be put into name selection and the use of words as discussed in the brand personality post. These will be discussed in greater detail in the next post in the series.

To get you started on what your product/service should be, there is a great positioning rule called the 4D Rule:

1. Desirable by the customers

2. Distinctive from the competition

3. Deliverable by the company

4. Durable over time

A well positioned brand will lie at the intersection of all four requirements.

Marketing Strategy

Why should I choose your brand?

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“A product is something made in a factory; a brand is something that is bought by the customer. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless.” Stephen King

Yesterday’s step regarding the personality of your brand, should get one thinking of all the factors that need to be covered to successfully attract your target customer. The next couple of steps will cover essential components which need to be thought through clearly when building a brand. The component I will talk about today is the answer to the question above, namely, your competitive advantage. If one cannot answer why a customer should select your product over your competitors, there won’t be a business to build a brand for. To answer this question correctly, one needs keen insights into the internal selection process of your target customers. Communicating with your target customers and finding out what their needs and requirements are, is the only way to do this. 

For example, you want to launch a new web based product which aims to provide an ability to manage your contacts and communication logs. The market place is currently filled with such products, and include Highrise, a product I use for the same function. When this new service comes along, and they have essentially replicated existing product features and functionalities, there is little chance of success. Even if minor changes have been created, they stand to lose this competitive edge when these functionalities will be copied by existing players. This is an example of when business owners have not put enough thought into the reason for creating the service, for whom it is being created, and how they plan to provide long term value to the target customer.

On the other hand, take for example, the social networking space. Friendster started off with a bang and a small niche social networking site called Facebook, they entered the market, and addressed key concerns regarding, privacy, communication tools and useful applications to make the experience more enjoyable. They clearly addressed the question “why should I choose to switch to your platform?” This leads to an important conclusion, which is, businesses and brands have to be rooted in strong business models which address customer needs in an unique way. Our branding strategy needs to continuously communicate this competitive advantage to our target customers, reminding them of reasons they should choose us, over our competitors.

Related Articles:

– What is your competitive advantage?

Marketing Strategy

What is your brand personality type?

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“You now have to decide what ‘image’ you want for your brand. Image means personality. Products, like people, have personalities, and they can make or break them in the market place.” David Oglivy

If you had to describe the Apple brand in terms of a celebrity who would choose? Could you use the same celebrity to represent Microsoft? Most likely, not possible. I find this thought extremely interesting as it sets out to externalize the internal emotions and perceptions we have for certain brands. We all know that Apple and Microsoft products are very different, however, each one of us has a unique way of perceiving these brands. As a business owner, we have to be in tune constantly with the way our business or brand is perceived by our customers. Is it being perceived the way we want it to? Are we consistent in our branding strategies across all customer touch points? Inability to do so will create a negative perception of your brand in the customer’s minds.

If brand personality is so critical to an organization’s success, why is it never talked about? I believe it is due to a couple of factors, firstly, many business owners see this as a non core issue because immediate tangible return on investment are not seen, secondly, there is a very little knowledge about how critical a brand personality is to the business as a whole. To demystify this subject I have attached an excellent schema to help understand this subject:

Courtesy Tom Dorresteijn

Courtesy Tom Dorresteijn

The development of a brand personality is the first step to embark on when developing a brand. Two components required to begin this process are:

1. Identity: One has to be absolutely clear about the aims of your organization. This includes goals, objectives, and strategic plans which have been developed for your business. Focus on core strengths and identify areas where you have a competitive advantages. If your business concept is unfocused, abstract or too diverse, these same factors will manifest themselves when communicating with target customers.

2. Customers: The second point which needs to be clearly defined is, identifying customers and their specific needs and requirements. One needs to understand their pain points, ambitions, worries and goals. This has to be done through qualitative analysis, by actually talking with your potential customer face to face. Once this is completed and assessed, we will know how to position our brand from their point of view.

It is only after we have successfully clarified these two components, can we actually start the process of developing a type of personality for our brand. We will be able to address key issues on what our brand voice should be, what characteristics our customers are looking for, and visual design to stimulate interest. I quote Tom Dorresteijin who sums up importance of a brand personality very well “We use brand personality to bring brand strategy to life.” By developing a strong personality with solid foundations we can now move to the next steps in developing our brand.

Related Articles:

– Creating a brand personality

Communication Marketing Strategy

How does one build a brand?

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“A brand is a set of differentiating promises that link a product to its customers.” Stuart Agres

I believe a brand is the emotional link we have with a particular product or service. It aims to differentiate a product/service from the rest in the same category, by leveraging on its competitive advantages. Eventually, customers develop mental images and perceptions about the product/service, and this is what helps them during their purchasing decision. Without these associations, all product/services in a particular category seem homogenous and the customer is not able to distinguish one from the other. For example, at the supermarket there is an entire wall dedicated to toothpaste, yet somehow Colgate and Crest seem to stand out from the rest. Both these brands have invested a lot of time and money in positioning their product in a particular way to get our attention.

How would an entrepreneur with a boot strapped budget build one of these world class brands? My answer to this question is, solid foundations, focused strategy, consistency and perseverance. World class brands are not built overnight. Brands such as Starbucks, Apple and BMW has taken each organization many years to earn its right to be perceived in a specific manner by all of us. They have focused on giving their customers a superior product and service. What we take away from these examples is that, to create such a brand we need to begin with a strategy right from the onset of our venture. We need to identify specifically how we want to be perceived, how we plan to stand out and the sort of personality our product/service should have. 

In the end, the goal is to create a strong sense of brand loyalty among customers. This loyalty will convert itself into recurring future streams of income. During the course of the next week I will talk about basic steps to look at when building a brand. I think this is an aspect many younger startups do not pay enough attention to at the beginning. This is a major mistake, as we have to be constantly aware of the image we want to portray. This image is developed through our product/service, customer service, website, packaging and any other interaction with our target segment. I look forward to your feedback and any insights regarding the development of brands. 

Advice Conflict Management

5 Steps to Manage Conflict

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“The harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly; it is dearness only that gives everything its value. I love the man that can smile in trouble, that can gather strength from distress and grow brave by reflection. ‘Tis the business of little minds to shrink; but he whose heart is firm, and whose conscience approves his conduct, will pursue his principles unto death.” Thomas Paine

There is no doubt, managing conflicts is a challenging task. On my journey as an entrepreneur I have had my share of conflicts. I think working in close proximity and under much pressure, tends to raise conflicts more frequently in entrepreneurial ventures. It is hence important to know how to handle them more effectively. Losing a team mate, a client or a supplier can spell the end for a young startup. Listed below are five steps to help manage conflicts in a systematic and structured manner, and thus reach a fair and faster consensus.

1. Facts: Before anything is discussed or negotiated, it is important that all relevant details are documented. This includes finding core reasons behind the conflict, the stage the conflict is at, and the affected parties. It is important to be objective when documenting these factors, and ensure that each one of the affected individuals is part of the process. To read more about the fact finding process please click here. 

2. Ground Rules: Developing a set of rules and structure can greatly facilitate conflict resolution. It is important to let all the participants know what is expected of them. It also helps to formalize the actual negotiation process with a set agenda, and a mediator if possible. Setting up such a structure helps the negotiation process run smoothly, with each participant well aware, before hand, about the discussion agenda. To read more about setting appropriate ground rules please click here.

3. Negotiations: The actual negotiation stage brings all the concerned parties together, to discuss their points of view in a structured manner. It is important to insist that each participant keep their mind open to different options, even if they do not agree with them. Keeping a close mind and remaining stubborn makes the process more challenging to manage. During this stage, notes need to be taken down regarding options discussed and differences and concerns that were voiced. To read more about the negotiation stage please click here.

4. Evaluation: After the negotiation stage, all the participants are called back at a later date to discuss the options discussed during the negotiation stage. At this time, it is important to establish a set of objective criterions, to ensure the options discussed are feasible, fair and take into account the larger picture. There are several strategies which can be used at this stage to rank or combine options, and to come up with a mutually agreeable option. To read more about the evaluation stage please click here.

5. Closure: The final stage of a conflict management process involves bringing closure to the argument. This is done by  formalizing whatever was discussed and decided into a written document, which clearly outlines everyone’s responsibilities and roles. It is important that a commitment is made to follow through on what was decided. Periodic meetings can be established to ensure that everything is moving as planned, with suggestions and feedback provided along the way. To read more about closure please click here.

I have followed this system in conflicts I have been involved in. However, given the variances in every conflict, one needs to improvise along the way. Managing conflicts is a challenging task, especially when they have been brewing under the surface for long periods of time. Reaching a formal agreement acceptable to all the concerned individuals is a major feat. It requires patience, an open mind and the willingness to be flexible. It is much easier to be stubborn and refuse to change a position, rather than be adaptable and sacrifice for a more congenial and brighter future. 

Advice Conflict Management

Closure

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“The most intense conflicts, if overcome, leave behind a sense of security and calm that is not easily disturbed. It is just these intense conflicts and their configurations which are needed to produce valuable and lasting results.” Carl Gustav Jung

Closure is one of the most critical components of successful conflict resolution. Without it, there is always something unfinshed hanging in the air and this makes people uncomfortable. I am sure many of us have been involved in conflicts which have ended without the required closure. It is not a pleasant situation, and if you then have to continue working with the persons concerned, it can be most awkward. To avoid such situations and reach closure, there are a few things I work on ensuring. 

1. Written Plan: Ensure that everything that has been discussed and decided upon, is written down in a formal document. This document should outline levels of future responsibility, possible compensation agreements, changed working arrangements or any other directives that are to be carried out. Putting it all down on paper makes it tangible, and easy to take ownership of.

2. Commitment: It is important that once a mutually agreeable option has been accepted, tasks and roles allocated, everyone commits to whatever they were assigned. A personal commitment is as important as having faith in the abilities of others to carry out their parts. This is not a time to doubt the follow through abilities of others. At this time more than ever, it is necessary to begin and rebuild the trust which may have been lost in the process.

3. Periodic Checks: A system to routinely check the progress of what was decided and agreed upon is vital, to ensure everyone is keeping their end of the deal. Such checks help monitor team progress and provide valuable insight into the team or individuals working dynamics. Such meetings can be a sounding board for suggestions, complaints or feedback. 

Closure after a long drawn out conflict is a liberating and empowering feeling, and helps us face challenges with ease and confidence. It reminds us, that survival in this world, requires us to learn to be flexible and move forward. Being stubborn and refusing to see different sides of a conflict, renders us incapable of moving forward. 

Advice Conflict Management

Evaluating Options

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“There are three ways of dealing with difference: domination, compromise, and integration. By domination only one side gets what it wants; by compromise neither side gets what it wants; by integration we find a way by which both sides may get what they wish.” Mary Parker Follet

Once the negotiation stage has been cleared, all options presented and discussed need to be evaluated. During this stage, respective parties need to set their differences aside, and work towards reaching a consensus where both parties are satisfied with the outcome. This is by far one of the most challenging stages in the conflict management process. Much of the time such situations conclude in deadlocks, because one party may not be open to entertaining any option other than one which benefits them. Conflict resolution needs a certain level of sacrifice from each party to reach a mutually beneficial agreement. 

Some steps which can help reach a mutually beneficial agreement are:

1. Developing Criterions: Prior to starting this phase it is important to establish some base criterions. These include ensuring that all options discussed are feasible and fair. It is also equally important to identify a set of objective criterions which help each of the participants look at the larger picture. This helps set a tone which in turn helps the flow of the discussion and reaching a mutually beneficial agreement, faster. 

2. Ranking: To begin the process, rank the options discussed in the negotiation stage. This will help the participants decide jointly which options address the needs of the group and their own needs. This is a tricky exercise, as each participant would like to rank the options which benefit them the most, on top. To resolve this issue, each option should be graded against a set of objective criterions which are mutually agreed upon. This helps bring objectivity and fairness into the process.

3. Combining of Options: I have found that it is often possible to combine certain options, thereby creating a mutually acceptable option to both parties. Through this method we can bridge differences in opinions, which may limit parties to reach a mutually agreeable agreement. This takes some creativity,  at the same time, helps to think out of the box when resolving conflict. 

There needs to be much give and take at this stage. Sacrifices need to be made, at the same time it is important to remain objective and work towards a mutually beneficial agreement. During this stage one needs to be creative and think out of the box. A deadlock must be avoided at all costs, if a party becomes stubborn and refuses to change positions, we need to factor this dynamic in, and find alternatives which may be acceptable to them. 

 

Advice Conflict Management Teams

Tackling the Issue

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“In a conflict, being willing to change allows you to move from a point of view to a viewing point — a higher, more expansive place, from which you can see both sides.” Thomas Crum

Proceeding with actual negotiations after laying down a comprehensive foundation for determining the facts and establishing ground rules, makes the exercise easier. With a set agenda, each party is fully aware of what will be discussed. The negotiation stage is a a critical one in conflict resolution. Without each party making the effort to bring the issue to the table, and discuss it candidly, very little progress is possible. Once the concerned individuals have made the effort to come together, and discuss the issue at hand, it is important to keep the discussion moving in a focused and objective matter. 

Key points to be kept in mind at the negotiation stage are:

1. Remaining Open: It is quite natural to close one’s mind to the other person’s point of view in a conflict. If such a stance is taken however, to reach a mutually agreeable decision will be a difficult and long process. Therefore, it is essential in such a situation, to not just remain open to the other party’s point of view, but the larger picture as well. 

2. Developing of Options: When a conflict is being negotiated, it is important that each side offers possible options to resolve the matter at hand.  I have been involved in conflict resolution, where the discussion revolves only around options which are not acceptable to either side. Therefore, being creative in the development of options is vital, as is abstaining from judging or criticizing them.

3. Notes: In the heat of discussions, we tend to lose track of what was said. This only complicates matter further. During the negotiation stage, it is hence vital, that notes about major agreements, disagreements, options and any other important piece of information are taken down, this will help in resolving the matter at hand.

These pointers are cornerstones to keep negotiations open and healthy. They may be very simple steps, but they have been extremely helpful to me when I have been involved in negotiating conflicts. In the end, it comes down to keeping things simple and straightforward. It is only when we complicate issues, with more details or people, do they become more of a challenge to resolve.

Advice Teams

Setting the Stage

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“Instead of suppressing conflicts, specific channels could be created to make this conflict explicit, and specific methods could be set up by which the conflict is resolved.” Albert Low

Most times there is no formal process on how a conflict is supposed to be resolved. Although setting up stringent structures can be stifling in an organization, it can streamline processes and make them more efficient. My thinking has shifted over time, from a loosely managed structure to a more defined one. The reason for this fundamental shift is due to the fact that entrepreneurial teams often consist of very strong personalities. When individuals or groups with strong personalities entangle in a conflict, one can expect a fair share of fireworks. Tackling this with set structures in place, helps facilitate such situations, as also controlling the external impact of such conflicts. 

Listed below are a couple of primer steps to help set the stage before the actual negotiations begin:

1. Ground Rules: It is important to set strict guidelines, to keep the negotiation stage as civil as possible. T Controls on language, tone of voice and relevance to the discussions are essential. Usually, if uncontrolled, irrelevant examples are brought into arguments, making conflict resolving more challenging. Keeping strict focus on the issue at hand in a healthy environment is vital.

2. Agenda: Before affected individuals or groups are called in for negotiations, an agenda needs to be developed to ensure that all the key issues will be discussed. Through this, both individuals can be given adequate time to share their points of views. By formalizing the structure of negotiations, they become more effective and relevant to the issue at hand.

3. Organization: Adequate notice needs to be given to the concerned individuals about the time and venue of the negotiations. The location must be set in a neutral space, where neither side will feel vulnerable or uncomfortable. This is an important step to ensure a smooth and natural flow in the discussions. At the negotiations, minutes or notes must be taken of all discussions and possible conclusions.

4. Mediator: If the issue at hand has escalated to a higher intensity level, it may be necessary to bring in a mediator or facilitator for the negotiations. This will provide unbiased mediation to help keep the negotiations on track and provide objective analysis. Both individuals must agree on the negotiator  to ensure a comfort level.

By following the above steps, expectations may be set prior to the negotiations. The affected parties will have a clearer idea of what will be discussed and how the negotiations will be facilitated and managed on the day itself. It makes the entire negotiation process more efficient and transparent, which in turn can help resolve the conflict as soon as possible.

 

Advice Teams

Know the Facts

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“At the root of every conflict is a commitment not honored, an idea not realized and an opportunity misunderstood.” Dr. J M Sampath

One of the fundamental reason for why conflicts are difficult to manage, is the disconnect between perceived reality and the facts. Unfortunately, during conflicts, emotions tend to takeover and incorrect decisions are often taken. It is hence essential, that when  confronted with a conflict, we analyze the current situation very carefully before proceeding. There are many advantages to taking this first step when managing conflict. Some key advantages are, it gives time to the affected individuals to look at the situation objectively, it allows a look at the bigger picture and reduces the probability of acting irrationally or impulsively. 

Some steps which need to be taken during a fact finding exercise are:

1. Identifying Core Reasons: Take a sheet of paper and write down what you believe are the core reasons behind the conflict, to help convert abstract thoughts into reality. It is a good idea to write down the emotions and feelings attached to the reasons, to fully grasp the extent of the conflict at hand. 

2. Identifying Conflict Stage: It is essential to establish the stage of the conflict. Has this been brewing for quite some time? Is it something which was instigated by a new addition to the team? Different levels of intensities require varying degrees of involvement from external sources.

3. Identifying Affected Parties: Clearly marking out individuals or teams affected by the conflict is an important step. The longer a conflict has been suppressed, the greater the extent of its impact. Therefore, it is advisable to deal with a conflict as soon as it arises.

The fact finding exercise provides valuable objective insight into resolving conflicts effectively. Most of the time we skip this stage, and either completely ignore the issue at hand, or jump straight into the disagreement without thinking through our position adequately. This can have a severely damaging impact on your team, organization and oneself. Establishing facts and our arguments prior to the negotiation stage can save time, make positions clearer and help minimize any bad blood which can arise.