The problem with technology companies

Most technology companies are driven only by its developments on the field of technology. In a marketing perspective, an excessive focus on technology can lead to: 

• Clear amount of irrelevant products
• Exceptional products not well marketed
• Or products which don’t make the cut – missing customer understanding (related with previous)

 

Take China. There are numerous technology companies here. Quite adventurous, they frequently put all sorts of existing technology in one single product, hoping will create an exceptional product because nobody remembered it before. In fact, without knowing the true reason for their existence, sales lead to a dead end.

They also combine new ways to re-invent a product, or excessively develop products which enables us to do something we already do with other products, result - we don’t really need it. Without starting from ‘outside-in’, they end up again asking themselves why it didn’t worked out.

 

Same happens with big companies. Microsoft developed Windows Vista. From my experience and people around, several are considering using XP again. Its true that those continuous updates can save my computer of having a hard time with a Virus; the software upgrades can help me in the future having a better enhancement on whatever program is; or the 10 minutes I wasted waiting for the system to reboot again are worth something.

 

But in fact, my current priorities are definitely not having a computer which turns out to be slower, fails to deliver performance at crucial levels, and insistingly closes my applications (sometimes suddenly). On my value figure, one of the most important engagement rules I expect is speed and functionality. If I have to lower down my Windows version because my newer version is in fact more slower, then this is a huge marketing mistake of Microsoft and a brand killer.

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The 7Eleven connection

In Hong Kong we can see thousands of 7Eleven 24/7 convenience stores. Its a fact that the success of convenience stores and restaurants in Hong Kong come partially through a culture and environment where nobody cooks at home and millions of people have a busy fast paced life. Hence,  convenience is even more demanding here.

7Eleven stores differentiate themselves well from Circle K (direct competitors). Its not only notoriuos due to the higher presence on the streets, but also taking in account other indicators such as 9th place on Asia’s top brands 2008 (from Hong Kong Media magazine/TNS).

There is a multitude of factors that put 7Eleven on top, a management team leading to a healthy growth and increased franchises, intellegent targeted marketing campaigns, amazing logistics system, etc.. Though, I believe the main factors which can explain the sucess of 7Eleven here in Hong Kong and perhaphs around other countries such as in the US, are uncovered through a powerful branding strategy.

- The store design, layout and product disposition are very efficiently implemented. In each store, you see several ‘touchpoints’ – upper colors around the walls, employees uniform, store furniture, price labels, etc.  Very strict brand guidelines are implemented in every store, making an extremely solid communication. Vivant three colors and simple design make easy to catch and memorize within its concept. In a glance, reminds the effective Mac’Donalds brand communication.

- Clear product disposition and continuing item replacing nurtured by the amazing logistics network, makes unbeatable and fullfilling promises, allowing the consumer to go through the cycle of reminding - taking fast decisions - fast product pick-up = value (time) . This combined with competitive prices and dynamic promotions (e.g.: take 2 for reduced price) = value (money).

- The sustained growth based on franchises allowed a high presence in every corner, making it a retail convenience brand next to the people - to the consumer. Plus, a continuous strategical store placement whether at relevant ‘juicy populated’ places, or within a well targeted audience in some cases (e.g.: next to a nightlife place; or in US along the highways). This allowed to create a story with each consumer, building a powerful and strong emotional connection.

Other day when with a friend entering 7Eleven with a Circle K next to it, I asked my friend why we were getting our stuff in one store and not the other, if what we were about to buy is exactly the same product, at the same price?  the response was fast – “because 7Eleven is special, it is my ‘breakfast corner’ sometimes, my afternoon ‘pick up something source’, and my ‘buddy at evening’ to get some drinks. I developed a special affection with this place!”. His story.

Even better, check this NYTimes article.

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