Monday 28 October 2013

b.Strategy - Popularity is a Sacrilege

The last part is here:   Strategy - The Art of OEM (Branding)

I have written this once before, but now, I find it urgent enough to regurgitate.

Goods need to have a certain popularity to sell. That concept is called branding.

When a new good is pushed into the market, about 57% of the market will try it. It is like the opening of a new concept restaurant at the street's corner. Almost every other guy who passes by that restaurant will want to try it, provided it is not priced beyond common reach. After the first try, if the quality of the new good is perceived to be higher than its price, there is a fair chance for the customer to repeat his experience some time later when he has the urge, as the feeling was good during his first visit. The repetition is called the retention policy of the good.

As more and more customers try the good, more and more customers will repeat the purchase of the good. This is good for the good. By now, market talks of a new brand emerging. But, retention policy is useless when there is no good recruitment policy. After a while, the same customers will get bored and move on. No matter how good the good once was and still is, the customers are bastards and fickle-minded, they will move on to newer goods. The customers are the ones with the spending power, they will therefore decide the fate of the good. That is why, many pubs and drinking holes only have 3 years to make their monies, beyond that these drinking joints will go bankrupt.

Recruitment policy deals with getting new customers. Some new customers are gotten using word-of-mouth, others are gotten through using advertisements and awareness drives. However, recruitment policy is painfully expensive. Therefore, every producer of good clinked on to their good and customer-base jealously. There in lie the irony. When a good gets too popular, it will invite competition. Worst, the juvenile eastern fucken government-of-the-day will try to fuck you up by restricting your sale or curtailing your access to markets. She wants to send a message to any wannabes that she is god and no one should gain great wealth through the current system. You will be fucked.

Therefore, never try to be overwhelmingly popular. I know this is a deep deep irony of them all. But, if you want to survive well, be at all times, invisible. Use the money you just made from your new good to power-roll your next venture in another place. Your strength need not be shown-off. You only need to impress the sweet young things enough for that heavenly done deals.

I believe you do truly appreciate this concept and forgive me for trying to be invisible always.

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