dms: hypebusters: expecting the unexpected
DESCRIPTION
Over the past several years, a number of brands from previous generations have become zombies of their former selves -- if they even managed to survive at all. Their cause of death has been the unexpected. In this session, Peter Horan explains how brands can prepare themselves for the technological disruption that has occurred and shows them how they can set themselves apart from the pack by looking at the data that digital media has made available to them. Speaker: Peter Horan, president & COO, Answers Media Group @peterchoranTRANSCRIPT
You’re About To Get Hit By a
Meteor!How the Unexpected Can Kill You
Peter C. HoranPresident and COO
Answers Media Group
June 25, 2012
Great to gone in one generation…
Why????
Misunderstood their core value proposition
Only worried about competitors like them
Didn’t respect substitutes
Over-estimated customer loyalty
Focused too much on their installed base
Great to Gone In One GenerationCompany They Worried
AboutThey Should Have Worried About
Digital Equipment
IBM Microsoft
Circuit City Best Buy Amazon
Borders Barnes & Noble Amazon
Kodak Fuji DSLRs
Sears JC Penney Costco
Blockbuster Hollywood Video Netflix
US Postal Service
Fedex Email
Motorola Nokia Apple and Google
As A Result…
They were rooted in the past not the future
They failed to develop meaningful strategies to go forward
They didn’t have a forward-looking reason to exist
The expected only wounds you.
The unexpected kills you.
You must plan for a meteor strike.
Disruption Has Two Sides
Opportunity for some and a threat for others.
New entrants more efficient than incumbents
Money flows to efficient models
Incumbents must change systems, people, and philosophies to compete
Incumbents must maintain current business while investing in a new business
7
The Shift That’s Changing Our Lives…
Advertising Landscape
Strong Brand Big Media
- Eroding prices- Integration- Customization
Weak Brand Commodity
-75% of budgets-Automation
Advertorial/Direct Marketing
Lo Value Add Hi Value Add
And Big Headaches…
Questions…
What is your core value proposition to consumers?
What problems do you solve for them?
How else can consumers get that done?
How loyal are your consumers? Really?
What other products do they want from you?
Who will be your competitors in five years?
Never Confuse Active Brand Loyalty With Passive Brand
Loyalty
The Gang of Four: Google Apple, Amazon,
FacebookHave boundless ambition
Have three nuclear weapons:Massive amounts of cashMassive consumer data and touch pointsAt scale logistics
How will they compete with you?
Two That Dodged Meteors
IBMDumped “core” businessInvested in software and servicesRebuilt team
AppleRecalled Jobs from the wildernesssStopped playing the game by others
rulesCreated a technology lifestyle
What Won’t Work