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Monday, 2 October 2006

If you're in business for yourself, you're in the sales business

Posted on 07:52 by Unknown
I got this piece of advice from a consultant friend I know. He's my hero, as he's been in business for himself for more than three years. The same advice holds if you own a law firm, a child-care service, even a startup IT business. You're in the sales business, too.

No customers, no business. While your prowess in your chosen field is critically important to your success, unless you can convert that prowess into sales (whether that be click-throughs, contracts, software sales or even venture funding), you will be working for someone else again in a hurry.

This is important because most all people who start their own companies are not sales professionals. They are web programmers, bioresearchers, students, moms. In many cases, they consider themselves "above" selling.

Don't get caught in that trap. When you're a startup, you must stay humble. No job is beneath you--especially not selling. And if you're the top person, you have what my father-in-law (who owned his own law firm for twenty years) calls the "fear factor." If it's your company, and you don't make sales, your family doesn't eat. That fear can help you make that difficult phone call or customer visit. It can make you ask a prospect for the business.

Getting a group of customers (whether that be one, ten or ten million) to use your service or product is the single most important factor to ensure success. If you don't think you're a salesperson, think again. Then go get some tools--they are everywhere. The "Landing the Deal" blog is a good place to start.

End of today's lecture. Go out and sell!

marketing, sales, entrepreneurship
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Friday, 29 September 2006

Concrete: innovation hotbed

Posted on 05:07 by Unknown
One of the next great areas of technological advance may be right beneath your feet. Concrete, the ubiquitous construction material responsible for millions of miles of paved highways as well as countless gloomy Soviet-era apartment blocks, is undergoing a high-tech renaissance. So says The Economist, which features it in the current issue's Technology Quarterly section.

Concrete embedded with tiny conductive fibers allows bridges and roads to be kept free of snow and ice without damaging salt and plowing. Spray-on concrete can create inexpensive housing in poor areas which is durable, well-insulated and hurricane-resistant. Who knew there was so much room for innovation in such a humble material?

According to the Economist, every year one cubic meter of concrete is put to use for every person on earth—making it the second-most used material after water. Could that amount yet increase? It's a concrete possibility.

innovation, construction, materials
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Thursday, 28 September 2006

Vince sells out

Posted on 08:24 by Unknown
Say it ain't so! Vince, the $50 million fashion label founded by Christopher Lapolice and Rea Laccone, and cited in this space as an exemplar of brand-building, has been sold. (See article in today's New York Times.) The lucky buyer is the Kellwood Company, a $2B aggregator of fashion labels.

It seems a shame that they wouldn't have continued to go it alone. Perhaps it got too big for them. (Ms. Laccone had told the Times, ''I would have been really happy if Vince was a $12 million business.'') And I guess $75 million--the purchase price--would be hard to turn down by anyone. The company says the founders have agreed to stay, but... what are the odds that, a couple of years down the line, they'll be at it again?

innovation, marketing, fashion
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It's the handsets, baby

Posted on 06:53 by Unknown

One message at the MVNO Strategies & Markets Conference this week is that the handset has become perhaps the most important aspect of a wireless service.

Time was, people took whatever phone their carrier offered free. Then came the Sidekick and especially the Motorola RAZR and all of a sudden the phone ceased to be a tool and instead became an object of desire. DP Venkatesh of mPortal pointed out that the RAZR was the first Motorola phone that didn't have a techie name (like StarTAC, V810, etc.). Now we have the Pearl, the Kickflip, the Chocolate and the Q.

And we want one.

This causes a problem for MVNOs. They typically don't have access to the best handsets (or even the second-best). The carriers serve their own retail operations first, then offer handsets to their MVNOs. Hamilton Sekino of Diamond Consultants asserted that the RAZR was partially responsible for the slow growth of MVNOs launching over the past year.

Mobile ESPN has the best data user interface in the industry, but launched with a single, low-tech Sanyo model, and look what happened to them?

Helio, by contrast, has sourced their own custom handsets, at great expense, from VK Mobile and Pantech. And they're pretty cool. Perhaps this strategy will prove successful for Helio. And then other MVNOs will follow, regardless of the price.


(picture: the Hero model from Helio)

innovation, marketing, mobile, MVNO
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R.I.P., Mobile ESPN

Posted on 05:44 by Unknown
Well, the news ripped through the MVNO Strategies and Markets conference in New York like a tornado. Mobile ESPN, one of the pillars of the US MVNO market, yet dogged by press and investor questions about its slow growth, has decided to shut its doors, "as soon as today," according to the Wall Street Journal, in order to focus on being a broadly-distributed content provider.

What does this mean for the US MVNO market? I'd said earlier this month that the success of Mobile ESPN, along with Disney Mobile and Helio, was crucial for the long-term health of the US MVNO market. Now one of them is gone. More opportunity for the remainder? Or a sign of things to come?

innovation, mobile, MVNO
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Wednesday, 27 September 2006

MVNOs need more consumer marketing expertise

Posted on 07:35 by Unknown

Dan Neal, president of the startup tween MVNO kajeet, bemoaned the lack of consumer marketing insight in the MVNO world. “We need more consumer marketing sessions at conferences like this,” he said yesterday at the MVNO Strategies and Markets Conference.

And the importance of knowing the consumer market was underlined today at the conference by Thomas Desarnaud, VP of Marketing for Universal Mobile, the largest French MVNO. Universal, a sister company of Universal Music, the largest global music company, has used its deep understanding of the teenaged market to attract 550,000 subscribers and become the #1 wireless operator in France for customer satisfaction.

The MVNO has capitalized on Universal's success in the music market (35% market share in France) not by simply leveraging their promotion and distribution assets, but by applying the lessons they've learned in communicating and creating a brand that is attractive and desired by their target market—allegedly unpredictable teens.

Desarnaud used terms different from what we've heard from the the other presenters (a nod to Neal's plea). He discussed the service as a status symbol and invoking emotion in its customers. More than simply claiming to be cool, Universal knows the language of its audience and, as Desarnaud said, “speaks to youth in codes they understand.”

They speak a different message to parents, who pay for the service. To them, the message is all about budget control (as an parent of a teen can relate to).

A clever way they've merged the two messages is one of their advertisements, which parodies teen slasher movies with a teen terrorized by an electric-knife-wielding crazy—his mother, upset about a high cellular bill. The message? “Don't get on your mom's wrong side. Keep your spending capped.”

An important factor in Universal's success, and a cautionary lesson for US MVNOs—Universal has been able to succeed as a “SIM-only” MVNO. That is, they don't sell phones, but instead sell SIM cards that users can insert in their existing phones. This model is limited to GSM and as well because of locked phones would be difficult to achieve in the US even for a GSM-focused MVNO... and, of course, the GSM operators (Cingular and T-Mobile) have been the least aggressive enablers of MVNOs in the US. Zut alors!

Desarnaud's final thoughts:

Content is about life style

Mobile is about life style

Therefore, content and mobile go perfectly together. I couldn't have said it better myself.


marketing, mobile, MVNO
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Tuesday, 26 September 2006

“The world is not being fair right now to MVNOs.”

Posted on 13:45 by Unknown

At today's MVNO Strategies and Markets Conference, Dave Johnson of Sprint's Private Label Services group--speaker of the above quotation--asserted, despite what you may have read in the newspaper, that opportunities still exist for MVNOs.

Sprint has analyzed their numbers being ported out (i.e., being switched to other operators) compared to their MVNOs' port-ins, and is seeing very little cannibalization of its customers from its MVNOs. Therefore, the MVNO market is more attractive for Sprint than people might assume.

Johnson outlined six key capabilities that MVNOs need to be successful:

  1. Ability to attract switchers – 90% of new prospects will be switchers – and switchers often want something different from their prior provider (i.e., don't want to trade one basic offer for another basic offer)

  2. MVNOs must focus on underserved segments. Johnson implied that MVNOs would not be approved by Sprint if they can't clearly identify a compelling target segment. He displayed data showing that although overall wireless penetration is high (73%), many segments have lots of room for growth (examples shown – children, elderly, low-income)

  3. Strong distribution. This we've heard often before (and reiterated several times by speakers today), but, according to Johnson, distribution is the #1 predictor for success of Sprint's MVNOs

  4. Strong brand and differentiated marketing

  5. Exclusive, relevant or compelling data content

  6. Strong financial backing and understanding of wireless financial and user metrics. $5M investment is not enough to sustain. A typical MVNO will be cash flow negative for 3 years

He also cited some example MVNOs (disclaimer – they are all Sprint MVNOs). Movida – strong segment focus on Hispanic market, including in-language content and support. Virgin – superior distribution - 25,000 retailers. Helio – strong financial backing. ESPN – compelling content. Disney – strong brand.

He also highlighted kajeet, a tween MVNO in the implementation stage, for having strong financial backing and admirable patience. They are trying to “do it right” and are “not in a hurry”--a rarity in an industry where people feel they must launch day after tomorrow.


innovation, mobile, MVNO
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