Tag: Starbucks

Embracing the ‘ Dream Business ‘ . How About Some ” Dreamketing “?

 

A dream is a complete moment in the life of a client. Important and fascinating experiences that tempt the client to commit substantial resources. The essence of the desires of the customer. The opportunity ( or should it be AWEopportunity?) to help clients become what they want to be.

 

We shape our words. And then the words shape us.

 

It’s migration time. Get into the ” Dream Business “. The ” Incredible Imaginings Business “.

 

My rant here is that most of us are still mired in the Old Economy, Old Product Thinking. But, all of us, MUST, strategically, take pages from and come to grips with the fact that the winners of tomorrow…will be masters of the dream business.

 

And the vision is to visualise, imagine totally offbeat, even insane schools, hospitals, enterprises, permutations, combinations providing..so so so far from just products and services..” impossible-turned-possible-dreams ‘.

 

The stakes are high. We talked about words shaping us. Here’s the next vocabulary s..t..r..e..t..c..h: dreams.

 

Consider this very inspiring statement made by former Ferrari North America CEO Gian Luigi Longinotti-Buitoni. Dreams are his shtick. Dream products. Dream fulfillment. Dream marketing. Dream provision.

 

” A dream is a complete moment in the life of a client. Important and fascinating experiences that tempt the client to commit substantial resources. The essence of the desires of the customer. The opportunity to help clients become what they want to be “.

 

Look at the marvellous use of words that shape dreams- ‘ complete moment’ , ‘ tempt ‘, ‘ desires ‘, ‘ essence ‘, ‘ commit ‘ and the beautiful summarising,  ” The opportunity to help clients become what they want to be “.

 

He continues to articulate the difference between ‘ common products‘ and ‘ dream products ‘:

 

Maxwell House versus Starbucks

New Jersey versus California

Hyundai versus Ferrari

Suzuki versus Harley-Davidson

Carter versus Kennedy

Connors versus Pele

CNN versus WHO WANTS TO BE A MILLIONAIRE 

 

Nothing necessarily wrong with the first part of each of those pairs. Each offers a solid workaday response to some need or another. But the second part…the part that comes after versus..” stuff ” that all carries a dreamlike power that goes far far beyond the realm of mere ‘ need fulfillment‘.

 

Longinotti-Buitoni preaches the marketing of dreams. An idea that he compressed into a word, all of his own making called ‘ Dreamketing‘:-

 

Dreamketing: Touching the client’s dreams

Dreamketing: The art of telling stories and entertaining

Dreamketing: Promoting the dream, not the product

Dreamketing: Building the brand around the Main Dream

Dreamketing: Building ‘ buzz ‘, ‘ hype ‘ ‘ a cult ‘

 

And for all the stakeholder apprehension about getting into the dream wagon, the financial returns on dream products are miles and miles beyond those compared to common goods.

 

So, let’s raise the bar. Way, way, way up. Say experience. Say DREAMS. Please!

 

Dramatically ( or Dreamatically). Alter. Perspective.

 

ENDS

 

 

 

 

 

 

Your brand’s worth is in your own hands!

Your brand’s worth is in your own hands!
You do not have to look far ahead into the horizon to read that businesses are facing an uncertain economic landscape across multiple markets around the globe. We are amidst a landscape in which brand worth has never faced fiercer scrutiny.
 
Moreover, in this environment, a power shift has taken place as price-conscious shoppers have seized control. Price loyalty or brand loyalty?
 
The done to death strategy(dare we call it that?) that brands have been resorting to, to drive volumes has been, no prizes for guessing, discounting. Not only is it a short term strategy but it also does both the brand and the business serious damage in the longer term. Turning the model upside down, research has shown that a 1% price increase can drive a 12-15% increase in profit. That is three times the profit increase seen by boosting sales the same amount. Which shows that the commercial impact of protecting prices can outweigh cutting them to drive volume.
 
Just like most buying decisions are not rational, so is consumers perception of price, which too leans towards the irrational. Behavioural economics studies show that when you flip the context, re bundle your output and shift the focus from price to value through added layers of experience, consumers are willing to pay disproportionately more for it. This, in some way, also endorses the oft used observation that price is the yardstick of quality.
 
By combining data-led pricing strategies with the creativity and behavioural science of a modern agency(be it ISD Global or any other), brands can dramatically outperform the competition in a commoditised market. 
 
Brands can increase their price perception in the eyes of the customer through a 3C Model of Create(through rituals, theatre, value added services)-Connect(establish a culture where customers are happy to pay more like Frappuccino from Starbucks)-Convert( Optimum sales balancing value and volumes, omni channel, something like what hotel chain IHG does).
 
For the community of marketers everywhere, it is time to seize back control of the most ignored, most impactful lever in the marketing mix: Pricing.
 
 
ENDS
 
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