Posts Tagged ‘strategic marketing’

Hipstamatic makes marketing as easy as “1, 2, 3, say cheese”

March 4, 2011

No one would admit being a hipster, but everyone admits that Hipstamatic is amazing.

Anyone who doesn’t know what Hipstamatic is is probably living a life in which there are no iPhones or Facebook. The photography application has been named iPhone App Of The Year and downloaded more than 1.7M times during it’s first year (2010) according to The Wall Street Journal.

Hipstamatic was one of the first apps I downloaded, and I’ve been an avid user ever since. But I’m also a huge fan of it business-wise.

I love the way they have designed their business from a marketing point-of-view. The product itself is fantastic in what it is supposed to do: to bring back the look, feel, unpredictable beauty, and fun of plastic toy cameras of the past (quoted from their mission statement). But on top of delivering on this promise in a very user-friendly way, they have created a product with something I like to call built-in marketing auto-pilot. The (Hipstamatic photo)graph below explains this in more detail:

The existing customers will be happy capturing those special moments and bring more value and money for the company.

  • Community. There is an active online community in which people share and discuss their Hipstamatic photos and attend competitions. This of course leads to…
  • New lenses etc. For a mere 0,79 € the users can buy new sets of lenses, films, camera cases etc. A small price for a man, but a big pile of money for the company (which gets 70% of the revenue of each download).
  • Ordering prints. Another easy-to-use service that the application offers is the print shop. With just few clicks the user can get his or her favorite photos delivered home for a reasonable price.

The customer-base will grow organically thanks to smart marketing-moves in business and product development.

  • The story. The story of the company – or the myth – is carefully crafted. A conversation piece that spreads.
  • The wow! effect. You know when you see a Hipstamatic photo. Maybe not the first time see one, but after that you do.
  • The social media integration. It’s all built-in: Facebook, Tumblr, Flickr you name it. We’ve all seen in our FB news those albums called “My Hipstamatic Prints” with amazing shots that make us go “me too!”.

This is strategic marketing with capital S and M.

20/20 vision for business

January 23, 2011

The optical industry isn’t in good shape, at least here in Finland. The biggest Finnish business newspaper Kauppalehti reported that half of the optical companies are making losses, not profits (Kauppalehti 20.1.2011).

“The market is saturated, there is more supply than demand” concluded Ilkka Liukkonen the CEO of the Finnish Opticians Union (Suomen Optikkoliikkeiden liitto) on Kauppalehti. Another reason for the downfall of the industry are the expensive rents of the store locations.

When the going gets tough, what do the tough do?

Seek for a blue ocean.

Enter Warby Parker, a New York start-up and a manufacturer of fashionable vintage glasses. Against the conventional wisdom, they sell their glasses on their website only. You try the glasses on virtually (see below), or even order a set of five to try at home for five days, before buying them.

And why wouldn’t you buy them.They’re Brooklyn-fashionista-class fantastic and they only cost $95 a pair — 3 – 5 times less than competitors’ glasses. This is because Warby Parker cut out the middlemen and sell straight to customers, and thus avoided also extra costs of retail markups and brand licensing fees. Another thing they did against the common sense of the industry is that they only do the basic prescriptions, not bifocals for example.

Warby Parker is a brilliant example of a strategic marketing value innovation, where at the same time the costs go down and the customer value goes up. See the results for yourself: their business isn’t going down, but up, up, up — in the first three weeks they had reached their sales goal for the first year.

P.S. My personal fave is of course the monocle, which is, as their website puts it, “the perfect accessory for budding robber barons, post-colonial tyrants and super villains”. Just my style.

(Source: Business facts about Warby Parker from The New York Times.)