Brief Summary
This video explains a simple yet powerful 2x2 chart that encapsulates the essence of marketing, product design, and achieving market success. It emphasizes the importance of offering a unique and valuable product or service to customers, positioning oneself as the "single white tulip" in a competitive landscape. The video uses examples like the dot-com bubble and Fandango to illustrate the principles of this chart.
- The goal is to be high and to the right on the chart, offering something unique and valuable.
- Avoid competing on price alone by differentiating your product or service.
- Ensure your unique offering is something customers actually want and value.
The core concept revolves around a 2x2 chart. The vertical axis represents the ability to produce a unique product or service, while the horizontal axis indicates the value of that product or service to the customer. The ideal position is high and to the right, signifying a unique and valuable offering.
One corner represents providing something of great value, but with many competitors, forcing you to compete on price, which is not ideal. Another corner is where you offer something unique, but nobody wants it, rendering your efforts futile. The worst position is offering something nobody cares about, with many alternatives available. This was exemplified by dot-com companies during the dot-com bubble.
The key to success lies in figuring out how to position yourself in the upper right corner, where your product or service is both unique and highly valuable. This uniqueness can stem from features, pricing, geographic location, or service levels. Fandango is presented as an example of a company that successfully occupies this space, offering a unique and valuable service by allowing customers to purchase movie tickets in advance and skip the line.
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Transcript
Full transcript of “Creating Business Start-Ups the Kawasaki Way”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.
0:17 the sixth thing is to niche thyself this is all the marketing you ever need to know it's also probably all the r d and product design you ever need to know i think that this chart can explain basically all of marketing and product design on the vertical axis the ability to prove produce a unique product or service on the horizontal axis is the value of that service or product to the customer as you might suspect this is going to be a 2x2 and as you might suspect you're going to want to be high and to the right but let's go through the other corners first the first corner is where you provide something of great value to the customer but there are 10 other competitors doing it at that point you have to compete on price because it is not a unique product or
1:04 service it's an ugly place to be another corner is where you provide something and only you provide it but nobody wants it that's where you're stupid in lower and to the left is the absolute worst corner that's where you provide something that nobody cares about and there are 10 ways to get it and that's over here that means you're a dot-com company the prototypical example of a dot-com company was the ability to buy dog food online that's why there's a dog food picture you know at the height of the dog car phenomena you could buy a case of dog food online for 10 than what you would pay for by
1:50 driving to a brick and mortar store a pet mart or a petco right you could save ten percent however dog food is so heavy that you would pay ten dollars in shipping which would be more than compensate for the ten percent discount so in effect the dog food was of no value to the customer buying it online however there were six ways you could do it there was pest.com mypest.com epets.com ipets.comlastminutepets.comdiscountpets.com there's 16 ways to buy dog food for more than you would pay in a store that explains the dot-com phenomena so the holy grail of positioning and product design and marketing is to figure out how the hell you get into that corner where you are the single white tulip in
2:36 a field of crappy other tulips how do you do that what is so unique about your product or service it can be features it can be priced it can be geographic location it can be service levels i don't know what it is but whatever it is how is it unique and by the way that unique element better be valuable to the customer an example of a company that i think is very high and to the right is fandango so fandango allows you to buy a movie ticket before you go to the movie so you really know you have a ticket and you can just zip through the line because they scan your printed out ticket right that's great value to the customer and you can only buy it through fandango that company is high into the right so the basic proposition here is for you to be high and to the right
3:22 you can think of it as being like our president high and to the right
