JB Hi-Fi – Marketing genius or lucky last man standing?

This episode of Fractal Marketing is called “JB HI-Fi, Marketing Darling or Dead End?” with Jason Le, Managing Director at JRNY Digital.

Today, Jason and Gerard pick apart the brand’s omnichannel approach to marketing to see which are effective in a shrinking market. 

They discuss Click & Collect in an apparent bid to upsell their other inventory with higher profit margins. They also discuss the decision to pass up on zipPay and Afterpay, the purpose of maintaining physical stores, and a possible long term strategy to pivot the brand and stand out.

HIGHLIGHTS

02:21 Click & Collect: A hybrid e-commerce model that tailors the user experience  

14:17 Avoiding zipPay and Afterpay, a strategic profitability decision?

16:32 Physical stores: Fostering trust and brand recall

22:55 Jobkeeper reduction and discretionary purchasing will hurt retail 

27:09 Adding a face to the brand to build customer loyalty

QUOTES

02:33 “The other option is Click & Collect which is where they have to purchase something online but they come in store where they have to pick it up and then they get upsold all these different items.”

15:21 “If you offered Afterpay on JB Hi-Fi products or zipPay or something like that for a thousand dollar, two thousand dollar laptops, your sales would probably go through the roof. However, in terms of your bottom line, I don’t know how beneficial that would actually be.”

21:45 “Maybe the physical stores would serve a different purpose, more like showrooms like you mentioned, educating people on what they can buy and maybe anchoring people through value-adding.”

25:41 “Payments are going to be winding back. People probably aren’t going to be as willing to spend money. They really need to find out a way to either maintain that spending with a lot of value to customer or figure out how to incentivize those large purchases.”

29:08 “You need to build that loyalty to the customer. Whether it’s getting influencers in or having more of a face to the brand, showing what you stand for, I think that’s probably where I’d look at.”

RESOURCES

https://www.jrnydigital.com.au/

https://www.linkedin.com/in/jason-le1/

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How to launch a product with a latent need

This episode of Fractal Marketing with Gerard Doyle is called “How to launch a product with a latent need” with Maree Beare, the CEO and Founder of consumer health app Wanngi. Maree explains that Wanngi functions like a digital wallet and that its primary use is to manage difficult-to-access health records.

Maree also shares the marketing journey of Wanngi and the obstacles of brand awareness for a product for a latent need. However, she shares their great success with blog content and the value of being recognized by Forbes and CNET in their quest to go global and penetrate the US market.

QUOTES

17:43 “The government has announced a grant for researching into the impacts of the bushfire smoke, not only bushfire smoke but people’s mental situation after the bushfires. So we propose that people could use our app and monitor their symptoms then track what’s happening to them over that period of time and share that information.”

19:56 “We are placing a focus on the US. They have a significant problem. It’s worse than in Australia. They don’t have essential government record as an option, which we do. They don’t really have a medicare that’s like our public system.”

26:13 “Instead of bringing your folder with you, you’re going to start accumulating this information electronically, safely, in a secure place in cloud so that no matter where you are, you can show this to the doctor, no matter where you are. And in whatever language.”

33:52 “One of the problems is that it’s actually very difficult to get a hold of your health records and your medical documents in the US. And in Australia, by the way, you don’t seem to have ownership on often very easily or you may have to pay for them. So we’ve written some articles on how to do this.”

36:41 “If I could go back in time, I would think that we could have acted sooner to start understanding the market straight after that because a week from launching, the government decided it was too early and they closed the mobile API gateway down.”

HIGHLIGHTS

02:24 Introduction to Wanngi

12:45 Caregivers as a potential app user pool

19:23 Going global & using Wanngi overseas

28:25 Marketing Wanngi & creating content

35:34 Maree’s advice & working with the government

RESOURCES

Maree on Linkedin

Wanngi.com

Apple App Store

Google Play Store

Should You Build Distribution Channels or Sell Products Directly?

This episode of Fractal Marketing with Gerard Doyle is called “Should You Build Distribution Channels or Sell Products Directly?” and today’s guest is Damien Stone, Founder of Water3. Today, Damien shares the journey of his company and how direct sales to a niche market created early success for Water3.

He then shares the expansion of the business in recent times and the role of technology in the business model in their bid to scale up and go global. It is noteworthy that one of upsides to Water3 is the nature of their product allows them to have a greater negotiation position with business partners. At present, the company has no real competitors and is in a prime spot for massive growth.

HIGHLIGHTS

03:53 Branding: Water3’s unique product

06:54 Market timing

09:11 Referral marketing with a remarkable product

16:18 Expansion and technology over the past 18 months

20:39 Water3’s global trajectory

25:39 Reducing risk and convincing business partners

33:16 Damien’s advice

QUOTES

11:44 “You’ve got to be remarkable. And being remarkable doesn’t mean having a bright shiny glitter-covered shirt. It means having something that’s shareable that everyone wants to talk about. So it’s what’s remarking about. And they kind of love stories like that, show you this care in the likes of the brand. And this is such an interesting little aside that will actually stick inside someone’s mind.”

17:01 “We thought long and hard about talking to the beverage companies and then we encountered a path of what are we going to do? The hot points for these guys, a niche market, well, it’s going to make them go, yeah okay, we want more tech. And there’s a huge amount of… software that they built around just being operators ourselves that we’ve had to go through and make a lot of changes on.”

25:38 “And I guess what your story is telling me is, oh, get out there and prove that people will actually buy it, people will use it. Okay, maybe you haven’t done it to the scale that Walmart or someone could take you to but if you’ve proven it yourself, you remove the risk for them. And if you remove the risk for them, they’re more likely to do it and I’m guessing the other upside to it is it puts you on a stronger negotiation position, right? Because you’ve got some idea how profitable it could be.”

30:54 “Who on earth is using that machine at 2 am? Now it turned out, some of our best customers are security guards and the cleaners because they can’t get water anywhere. Nothing’s open at 2 am when they’re walking around. Isn’t that funny how just you often don’t know what your market’s going to be?”

34:22 “Everyone loves it, but no one wants to fund it. What the hell’s going on? So I probably would’ve gone down a couple of other projects if I’d known 8 years ago it was going to take 3 years for us to get started. Or if we do get stuck into another business ambush, made us enough money to get started in the end, but I would’ve probably done some of this stuff a bit sooner.”

The perfect time to build a business for Freelancers – with James Fuller from Hnry

In Nuclear Physics, the minimum amount of physical material needed to create a self-sustaining nuclear chain reaction is known as critical mass. The idea is that in a complex system, moving the honour threshold can suddenly unleash powerful self-sustaining change. In my experience, this is the same thing with Startup companies.

Enter a market too early, no matter how strong the Founding team, and you can be stuck waiting for days, months, years for a time that never comes and too late and you’re fighting an uphill battle against incumbents with the greatest scale.

In Startups, market timing is everything. In this podcast, I’m chatting with James Fuller, the founder of Hnry and I think James has timed his market entry perfectly. Hnry is a bookkeeping and accounting service solution that appeals to solopreneurs, the freelancers, the consultants who are working for themselves, I see this market rapidly expanding at the moment and I can see the tax system and the obligation that’s being put on these people increasing all the time.

Way back in 2016, whilst working as independent contractors, we realised that far too much of our time was spent reconciling transactions, using online calculator apps and making manual payments. We weren’t ‘running a small business’ – so why were we being treated as though we were? We had an accountant and accounting software, but that still required us to have to do a load of work ourselves! We decided to create a service that brought everything into one place, making self-employment as simple as having a permanent or salary job somewhere.

During 2017 we designed the Hnry service, working with tax experts from Big 4 accountancy firms (nice suits), legal experts from the top law firms (even nicer suits), and technology experts from some of New Zealand’s funkiest startups (nice beards/Star Wars t-shirts). We collaborated with government agencies to refine our service, and soon became an accredited tax agent of IRD and ACC. We ran trials with a handful of customers, adapting our service and learning what they needed. Towards the end of 2017, we were accepted into KiwiBank FinTech Accelerator, an amazing 3-month programme designed to help refine and scale NZ technology startups.

In early 2018, we finished our trial period, and released Hnry to the New Zealand market. We started scaling very rapidly, bringing on customers at a fast pace. To help us support this scale, we raised funding through investment from the Banking and Financial Services industry, as well as from Angel Investors and private individuals. This allowed us to bring on a great team of experts, to help support our rapidly expanding customer base.

Follow their journey on Twitter and Facebook.

Don’t Click This

Really?

You had to click that link?

Even after you clearly read that it said “don’t click this link”

So you clicked the link, did you do it because you were tempted or because you were curious? Is there a way we can use this in our marketing?

Brands, of course, are masters of temptation. If marketing is defined as, “the process of communicating the value of a product or service to customers,” then implicit in this practice is accentuating the positive aspects of what’s being sold. This technique is used not only in hawking goods but is also found in nature. Animals have been tricking each other by accentuating desirable traits for millennia. The process is called “super-normal stimuli” and it is a key to enticing action by creating the stress of desire.

Marketers tasked with increasing consumption of their company’s products have a difficult job; they are often charged with manufacturing desire. To do that, they need to find the customer’s problem, their pain, in order to alleviate it. Without a biological basis spurring our desire, there would be no sales. So marketers must at least accentuate, if not induce, a level of discomfort to make us crave their wares.

The products and services that provide immediate relief are those we come to depend upon most.

I suspect however that you really clicked the lin out of curiosity and not the temptation to, not do, as I requested.

George Loewenstein explains that curiosity arises when attention becomes focused on a gap in one’s knowledge. These information gaps produce a feeling of deprivation, which is an aversive psychological state (we don’t like feeling deprived!). We’re motivated to resolve this state by obtaining the missing information.

So you see, once you become aware of a link you became aware that there might be something on the other side of that link that you didn’t know about, and so you clicked.

This is the same way ‘clickbait’ titles are written, you let someone know that they don’t know something, and therefore you generate a better click-through rate because people have to ‘fill the gap’ in their knowledge.

So go on, armed with the theory of gap analysis, go and write a title that will tempt someone into clicking on one of your social media posts and reap the psychological marketing rewards.

 

on a final note, don’t click this link as it just links to the end of the internet

Building a product for yourself, with one eye on the market – with Lachlan Palmer of Kashy

If you’re going to build a startup, and you want it to be successful, you need to solve a problem. And if you’re solving a problem, you’re solving it for a person, and what better person to solve a problem for than yourself. So many great Startups start by solving problems for the founder and this is exactly what Lachlan Palmer is doing with Kashy

Lachlan saw a problem in the mechanic market, servicing cars and he went about fixing that problem for himself, and now he’s rolling it out to his mechanic friends.

Kashy was founded in March 2018 by Lachlan Palmer, as a fresh take on an old concept where apprentice mechanics would often do work for family and friends as a way to make ends meet.

After dropping out of school, Lachlan followed his love and passion for cars into a job as an apprentice mechanic earning a mere $300 a week. With few family and friends having a car or needing work done he didn’t have the same access to extra jobs as his fellow mechanics. This was when the first idea of Kashy came to fruition.

After working in the industry for 4.5 years and becoming a fully qualified mechanic Lachlan became disillusioned by the way the current system works. In his experience, he found the current operation of the industry to be a rip off for both the customers and mechanics alike  – with vehicle owners paying exorbitant prices for services, while the mechanics were paid as little as a tenth of what the dealers charge per hour.

Since then he has put his effort into building Kashy, a business that shines a light on the current industry issues and fixes them by creating an ethical and fair trade for all.

Kashy coupon code: FRACTAL

How to Position your Startup

So we’ve all seen positioning map in a standard Startup pitch, you know the ones where every company is to the top right-hand corner of the map. So a positioning map is a diagram drawn to illustrate the customers perception of the business offering based on price or quality of some other benefits, and how the perception compares against the competitors. In today’s episode, I’m going to dive into my ideas around positioning maps, and how you can use them with your Startup.

Two-sided marketplaces & the AirBnB for Pets with Deb Morrison from PetCloud

Two-sided marketplaces, one of the hardest types of startup businesses to get going. But this week, we’re speaking to Deb Morrison, the founder of PetCloud, who’s actually made a success, and we’ll cover the different ways she’s been able to build a two-sided marketplace to the scale she has today.

If you listen right to the end of the episode you’ll even hear the point I decide to become a pet sitting on her platform 😉

PetCloud is an Australian owned and run company guided by experts and industry leaders from the Animal Welfare, Pet & Vet, and IT industries.

Founded in August of 2014 and headquartered in Brisbane, PetCloud is a trusted community for Pet Owners to Search, Connect, and easily Book verified & insured Pet Care Services across Australia — from any internet-connected device.

It’s a safe, convenient and affordable way to make sure your best friend is in a loving home while you’re away.

When you book with PetCloud, you are helping to change the lives of pets and people everywhere.

PetCloud is part-owned by RSPCA Queensland, and the RSPCA’s National Call Centre provides us with Customer Support which we pay them for which helps fund their rescue work.

Our management team has over 50 years of experience running Business Operations. Our IT team has over a decade of experience creating online solutions for some of the most recognised brands in the travel, defence, and education industries.

PetCloud is based on a sharing economy model, & is the easiest way for animal lovers who want to monetise their backyard, car, and services and showcase it online to busy Pet Owners searching for in-home pet care services.

Follow her journey on LinkedIn, Twitter, Instagram, & Facebook.

How can you innovate on a recent innovation? With Jose Chudoba of Teltoo

We all know the frustration of watching streaming videos when they start to buffer.

It might just be a TV show, but it could be a live sporting event or it could be the new release of Game of Thrones. 

Whatever it is, that buffering experience is crazy. 

You absolutely hate it. But you as a user who hates it, but the person who’s streaming the video, the person responsible for pushing that content out, that’s their job. And that’s the problem that the team at Teltoo are trying to solve. 

They’re layering a peer-to-peer network over the top of the CDN’s to deliver an even better experience by utilizing all the viewers’ browsers to help deliver that content to you. 

Follow their journey on LinkedIn & Twitter.

Teltoo is a decentralized video delivery technology that works alongside with Content Delivery Networks like Akamai or Level3, increasing the overall bandwidth capacity for live streams.

Teltoo is an HTML5 technology that integrates into the video player of our potential customers (streaming platforms, broadcasters, telcos, cable operators) and from there connects with our main server that is the brains behind the technology. This server, monitors and tracks the network identifying the best available sources to deliver the pieces of video content that viewers are requesting at every moment. The beauty of the technology is that not only finds those pieces of video content from offloaded CDN nodes but involves viewers devices’ themselves to increase the number of potential sources in order to kill the most hated enemy of video streamers: buffering