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The new consumer

Because of your interest, We reproduce article Lucas Carné, director Privalia, appeared today Five days.

elnuevoconsumidor1The democratization fashionable, economies of scale that has found its paradigm in Internet and the total introduction of new technologies in everyday life have resulted in a new establishment From the market, in which the consumer is the real protagonist: more informed, selective and unfaithful than ever.

In the eighties the phenomenon of the democratization of fashion began. Garments designed for life gave way to ephemeral and economic collections, quality levels and design more than acceptable. The phenomenon grew until, in the nineties, It spread to other sectors such as decoration, the trips, domestic consumption, restoration ...

In the case of the first brands, The growth of outlets It has been spectacular in recent years. The sector has exploded in all formats: outlet malls, multibrand or monobrand urban outlet ... And the last big leap has been the outlet online. Electronic payment or failure to prove gender, barriers that seemed insurmountable recently, have evaporated by the rules of a market each day more autonomous and fragmented. With this the low cost new link, the exclusive brands are put within reach of the middle pocket; If you also receive the sample and purchase at home, the revolution is served.

The land was paid for concepts such as low cost, White brand and outlet germinaran; the economic crisis has done the rest. Spend, yes, but selectively, It would be the motto. The data confirm that the new formula not only defended successfully in difficult economic times, but showing growth while most sectors lose bellows.

However, this model is not temporary. In a crisis environment wins competitive position, but the market opening, it remains, at least, largely. This we have seen: It is normal for women who wear great designer proposals for special occasions wear garments on their economic daily, or professionals who cross the pond in business escape weekend with economic packages.

Now also it supports someone acquires a great brand at a high price in a physical store and, parallel, buy a similar product at less than half price online. The current consumer knows that you have the option of disposing of goods and services at competitive prices, beyond their need for savings, enjoys finding opportunities and consuming more: the wardrobe thickens, the travel schedule, entertainment outlets and branded clothing dressing.

The low cost is no longer the secret of a few, euros less in the pocket or current account; It is the common territory of today's consumer, informed, sagacious and unfair, if you can consume twice, it will not only double the price.

Interesting discussion of low cost in BTV

Last 5 February night there was an interesting debate on the low cost on Barcelona Television.

The speakers who defended the suitability of low cost in times of crisis were Josep Valls Frances, ESADE marketing professor and author of "Fenómeno Low Cost”, Elisenda Camps, journalist and author of "Luxe Low Cost”, and Guillem Recolons, marketing and advertising consultant, coauthor blog lowcost attitude.

Josep Francesc Valls, Elisenda Camps y Guillem Recolons

Josep Francesc Valls, Elisenda Camps and William Recolons

On the opposite side they stood Joan Ollé, Chairman of API's from Barcelona, Manel Ruiz, Technical director of the Consumers Union of Catalonia and Rafael Serra, President UCAVE (Catalan Union of Issuing Travel Agencies).

Here we put a link to video of the debate.

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A new model of value based on a combination of creative ingenuity, new approach to media planning and production of spots prioritizing the main message and brand: that's TVLowCost

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We started the year talking about successes low cost: YOIGO already has a million customers

logo-yoigoWe are pleased to share the news that the fourth mobile operator in Spain, Yoigo, He has reached the million customers in just over two years since it began commercial journey on 1 from December 2006.

For the CEO of Yoigo, Mr Andsjö, this figure has special significance because it shows that in Spain can “telephony succeed low-cost”. “We were told there was no room for another operator, we were not going to get customers, it was a gamble too risky”, He emphasized the manager.

The low-cost operator, which he has so far deployed 2.500 antennas, It has a sales channel 'on-line’ and more than 400 exclusive shops.

Andsjö stressed that the market has changed in two years and found that Telstra was a 'cornerstone’ this transformation. The steering as an example of the change rate only to 8 cents per minute for any destination and at any time, or access the Internet from mobile by 1,2 euros a day.

He appears before the company had three major operators to whom, according Andsjö, but it seemed impossible to deal “in Yoigo we have achieved with our principles of justice, simplicity, transparency and a touch of imagination”.

recent message from Edward de Bono, father of lateral thinking: ‘thinking to be a problem

Mistranslated, would: just we think solutions for problems.

Here is the original text, my translation and my comments:

“Because we often consider ‘thinking’ to be problem solving we do not think much about matters which are not problems. If there is a wide open road ahead of us we do not stop to consider the side roads. This is what I call ‘blocked by openness’. Many things continue because they are reasonably satisfactory so we never think any more about them. A classic example is democracy which is full of faults and limitations but can never be challenged. I can think of at least four ways in which democracy could be greatly improved.

Whose business is it to think about things which are not problems?”

"Accustomed to thinking to solve problems, We do not give any importance to what is not a problem. If we move through a huge highway, always we think of the central lanes, not on the side tracks. It is what I call "lock opening". Many things continue as they are because they are already well, and therefore we never think of them. A common example would be democracy, a packed system errors and limitations but nobody dares to question. I can think of at least four ways in which democracy could be improved.

What business you are there to solve things that are not problems?”

I agree with Bono. Sometimes we tend to take for good what could be improvable. The democracy It's a good example, but we could go much further: marital relations, the parents and children,... The general tendency is to think: it works, Let it be.

However, I think there are businesses that not only solve problems, but generate new opportunities. The invention of mop –español by-the-way-, did not solve any problems, since then scrub floors hand was not a problem, It was a habit. The invention was an opportunity, Over the years and today, Yes we would consider to scrub a floor hand is a problem.

The low cost It would be a similar case. A few years ago, the price of an airline ticket from Madrid to Brussels, 500 €, It was not a problem, was aReality assumed. The emergence of low cost made generate a new opportunity to travel to Brussels for 90 €. Thanks to that opportunity, thousands of people who had not even thought about traveling there you have. Problem or Opportunity? Matter of nuance.

I leave you with this “problem” lateral thinking: In the basket there are six eggs, and six people an egg each carry. How can it be that still left an egg in the basket?. The solution in the next post.

Low Cost, A new form of lateral thinking?. Talk about low cost and TVLowCost at ESADE

past 13 and 15 They may took place in Madrid and Barcelona respectively monographs on low cost under the title “The low cost business model and the main strategic options competitors”. The conference addressed ESADE alumni, and the truth is that both sessions were a success both in terms of attendance and interest. The teacher in charge of the talk, Michele Quintano, It was helped to describe Guillem Recolons model TvLowCost.

The main objective of the session was to demonstrate that the low cost business model "moves away from the concept of low price and is something different", as expressed Michele Quintano, Visiting Professor of the Department of Marketing, which started from the idea that low cost "is to raise, through innovation, new production processes and marketing of products and services ", where not necessarily must link low low valor.En first, Professor Quintano said the traditional model of "low price" with typical examples as the discount in the distribution of consumer goods, white markings, promotions, etc., where there is a direct relationship between price and quality in the field of expectations. However, The low cost is a new model that "attempts to eliminate all the costs of complexity (differentiation)”, where selling prices are lowered but, at the same time, "It is being offered value and enhances consumer satisfaction". Among the key aspects of this model, Quintano highlighted the optimization of processes (information management, distribution, e-business, etc.), which ensures the maintenance of high quality standards, although prices are reduced.

Quintano also alluded to the various sectors in which companies apply the business model (transport, insurance and banking, car, fashion, furniture, information technology and pharmaceutical sector, among others) and said that they "have contributed to the increase in the size of mature markets". After reviewing examples, It focused on low cost airlines and formulas they use to ensure a reduction in costs and prices without sacrificing the quality of their services as, for example, the point-to-point or price adjustment to demand easyJet or Ryanair performing. In the same line, He reviewed other cases of interest (Dacia, ING Direct, IKEA and Línea Directa Aseguradora) differentiated by applying business concept.

Michele Quintano finished his presentation discussing alternative strategies that organizations can face the success of these companies low cost: wait and see (watch and wait); coexist through funding; undertake a dual strategy, offer solutions or become low cost.

 

Then, Guillem Recolons He spoke continuing with the analysis of the concept, noting that "the low cost is an attitude, because basically no longer be a smart purchase influenced by the values ​​that each person gives the services involved in the buying process ". On the other hand, He highlighted the dichotomy between the positioning of companies using this model, as Zara IKEA, and consumer perception thereof.

Later, Recolons recounted how the idea originated TVLowCost, "In an apparent gap in the market", in an environment characterized by the existence of two types of advertising companies: on the one hand, agencies belonging to large multinational, which they offer expensive services and, for another, local small businesses, usually unable to project beyond its scope. Thus was born this initiative, "Which it is embodied by a vehicle: the all-inclusive pack ", with a range of preset services (for example, a campaign on national television, production, Research and fees included, no monthly fee), at a very attractive price.

Likewise, the founder of the multinational partner TVLowCost said the goal is not to compete with the big agencies, but "generate a new market", addressing those companies with revenue between ten million and thirty million so far had not raised the use of television to advertise because, as usual, They have a significant budget barrier. Its formula is nothing but a set of variables appropriately combined, as expertise in television, minimal structure itself-and the consequent outsourcing of creative high level-, presenting multiple creative proposals or the maximum use of new technologies and the Internet.

To end the session, Guillem Recolons said several examples of commercials made by TVLowCost, where attendees could learn simple productions and different formats designed for midsize businesses.