A Business without a Strategy is same as a Car without Wheels.
Strategy and Tactics both are different things. Great tactics can even prevent a bad strategy but Bad Tactics can destroy everything. It’s the difference that most people fail to understand. So here is this Blog that discusses one of the greatest Business Tactics adopted by Brands that are a Billion Dollars in worth today!
During RedBull’s early days, there wasn’t any “energy drink” category existing in the market and made the Brand compete in an already saturated market of soft drinks and sodas, which was like swimming in a sea of hungry sharks. The chances of building a profitable business were slim owing to the cutthroat competition. Besides creating a new niche of energy drink in the market to stand apart from its competitors and avoid comparison with other soda brands, RedBull also used some amazing and innovative marketing strategies and business tactics to create its presence and boost sales.
One innovative strategy based on Guerilla Marketing tactics was used by RedBull in its initial days which is called as Garbage Dumping Strategy by which they placed empty cans in crowded public areas like a college campus, stadiums, or nightclubs to create an impression that a lot of people consume RedBull and that it’s highly popular. Besides being an extremely low cost and faster way to gain publicity, this controversial tactic also helped the Brand to target a specific age group aged 18-35, which happened to be their target customers.
Here’s a glimpse of how Apple sells its products and now even services via their Flawless Marketing. Let us take a sneak back in time for a moment when the first iPad was released on January 27, 2010. Steve Jobs presented the iPad in San Francisco’s Yerba Buena Center as “much more intimating than a laptop” while showing off the device in a reclining chair which highlighted the casual relationship that a user would have with the tablet. Apart from such tender yet impactful gestures which brought the viewer attention to the new device and its benefits by bringing the focus on the user comfort and taming the audience to imagine owning and using the iPad and how they can feel, what is noteworthy was the price of the iPad that Steve quoted at the launch. Jobs told people that the iPad is priced at $999 but at the time of release the price was changed to $499. When the crowd heard the new price of just $499, they went crazy which in turn subscribed to a good number of bookings for the product. This strategy used by Steve Jobs is called the Anchoring Effect in which advantage of the flaw of the human mind is used where we ignore the value of an option based on its original intrinsic value and instead make decisions based on comparative values.
Mcdonald’s is a popular food brand loved by many. Despite the fact that a large number of people loving it, there were questions in people’s minds about McDonald’s food quality and the origin of their food. McDonald’s adopted a business tactic known as the “Transparent Marketing” campaign seizing the opportunity to answer User Generated Questions. To clear all the misconceptions, McDonald’s started an amazing campaign “Our Food, Your Questions” in 2012 in Canada. In this campaign, people could ask questions of any type which are related to McDonald’s food via a purposely dedicated website for the same. This opportunity was grabbed by a lot of people and they asked questions they wanted to ask through this website portal. All types of questions were asked by people like “Do you use Australian beef in your burgers? Are your eggs free range? Are your products delivered daily? What is McNugget’s made from? And many more.
All these questions were answered by McDonald’s through short Youtube Videos displaying the real recipe and everything which people wanted to know about McDonald’s. In this campaign, more than 19,000 questions were answered by McDonald’s and monthly store visits increased by 50% post that campaign. This campaign was a huge success and McDonald’s Canada was named “Marketer of the Year” in 2013 for this campaign.
Starbucks is by far the world’s largest coffeehouse chain and is quite popular in many countries. This US-based multinational chain of coffeehouses and roastery reserves has its unique method of brand building and maintaining the high value of its products by special working ethics for its employees. Starbucks employees are not allowed to apply deodorant or highly fragrant deodorants or powders to their clothes because the smell affects the taste and aroma of its coffee, according to the company and this is also a big part of its “Brand Building”.
Another tactic used by Starbucks to maximize its gains is worthy of mentioning is the one started in times of the 2008 Financial Crisis which made Starbucks a bank. During the crisis, Starbucks was going through a rough patch and thus introduced Starbucks cards to tackle the Financial Crisis and to increase focus on technology. The working of the Starbucks card was such that instead of paying with cash or credit card, you add money to your Starbucks account and then pay with the app, get twice the “stars” and redeem those “stars” for free drinks. People were not afraid to keep money in their Starbucks account, knowing they’ll use it eventually. This was understandable by the fact that 41% of the US and Canadian users pay with their Starbucks cards. At the end of 2019, users held a collective $1.5 billion in their Starbucks accounts. This means customers have provided Starbucks a $1.5 billion loan, at a 0% interest rate. 85% of all US banks have less than 1billion dollars in assets, which adds Starbucks to the list of top 15% banks in the US. The best part, Starbucks’ balance can only be withdrawn in form of coffee, which allows them to bypass all financial regulations.
IKEA is a Dutch multinational conglomerate that designs and sells home furnishing products with a vast variety. With a net worth of more than $ 2 billion, IKEA has an interesting strategy when it comes to market its products. IKEA targets the customer’s mind first, not just the wallet. With the learning that over 50% of consumer purchases are impulsive buys, they design their stores to trigger as many impulsive buys as possible, and this is the reason IKEA stores have a unique layout distinct from their competitors. In most stores, you pick what you want to see and then leave. Instead, IKEA uses the “racetrack method”, enticing people to walk through the entire range and encouraging them to make impulsive buys. As explained in the words of Marcus Engman, IKEA Global Chief Designer, “We build our stores like mazes to look and feel you’re walking the beautiful catalog… This encourages people to spend more time in the store…Not with promotion, but with creative inspiration”.
Manforce is the largest selling condom brand in India which is a product of Mankind Pharma Limited and has more than 32% share in the Indian condom market, where the condom is not the only product the company makes. Mankind has always come up with clever advertising and unique marketing campaigns and one such campaign in recent times is the #DontMessAround digital campaign by mankind in which they tell its users to not mess around and put on a Manforce Condom for safety. The best way of advertising any product is to tell its customers that why they stand for it and why people need their product. And Mankind used this method in its digital campaign by giving focus on educating people to use condoms with the message- “Unprotected Sex can be pleasurable, but it is unprotected for a reason”. The campaign tells that unprotected sex can cause problems like sexually transmitted diseases and unwanted pregnancy. Joy Chatterjee, DGM, mankind Pharma said, “We encourage people to put on a Manforce to avoid unprotected sex and sexual diseases”.
GoPro is an American company that manufactures cameras and develops its mobile apps and video-editing software. GoPro uses UGC Strategy for increasing its social media reach. UGC stands for User Generated Content when a company features its user’s content with the company’s products. Usually, GoPro posts the content on social media generated by its users with GoPro products with the hashtag #GoPro. This is a very beneficial method because they can convey the “feature of their products to their targeted audience directly. Also, this is a low-cost strategy because the marketing team just needs to select the best content uploaded by their users and then share it on the company’s social media pages. They also organize some competitions for this and give prizes that motivate users to upload content. The real user of the product tells about the product features, which is much better than a celebrity telling about features. Social Media is a great platform to advertise your brand at a low cost and GoPro is a true example of it.
Well, this automobile manufacturer doesn’t need an introduction when it comes to luxury personal vehicles. Apart from making premium vehicles, Audi has also used a clever advertising technique to create a buzz for its vehicles. In mid-2005, Audi planned to launch a new Audi A3 premium compact car and their targeted customers were the 25-34 age group males.
Instead of traditional advertising, they launched an advertising campaign “Art of the Heist” which was a reality game. This campaign was created by Audi’s advertising partner McKinney&Silver and the production firm Chelsea Pictures. On 31 March 2005, they announced that Audi A3 was “stolen” from a rotating display at the New York Auto Show. the campaign’s narrative featured the characters Nisha Roberts and Ian Yarborough driving across America in an Audi A3 while being chased by hitmen. On a single day during the campaign, more than 200,000 people joined the search for the stolen online. This campaign got viral through newspapers, posters, etc, and was also covered in the Wall Street Journal. Audi’s website traffic increased rapidly and 5,389 A3s were sold at the end of the year 2005. “The Art of the Heist” represents a true innovation in the way Audi connects with its target consumer,” said Stephen Berkov, Audi of America’s director of marketing, in a statement.
Zara, a Spanish clothing retailer, is one of the most valuable apparel brands in the world. Zara has a systematic working in which it designs, produces, distributes, and sells its collection in only a few weeks. Zara usually updates the stores with two new designs a week and keeps the stock level low. This helps them in creating fewer markdowns. A markdown is a reduction of the original price of goods to increase sales. Lower clothing stock means lower storage costs and fewer markdowns. And because of regular updates, shoppers frequently stop by the stores to see fresh and trending designs. Since the stock is limited, it creates an urge in the customers to grab the clothing before it’s gone. Thus, instead of spending a lot of their budget on commercials and billboards, the brand relies on customers to advertise on their behalf through word of mouth. Zara gives customers what they want when they want it, making it one of the most popular apparel brands out there in the market.
Yes! You read it right. It’s The Beatles. A Band making its place in a list of Brands’ Marketing Strategies with its exceptional marketing skills during its peak which made it extremely popular among the masses. The Beatles were an English Rock band comprising John Lennon, Paul McCartney, George Harrison, and Ringo Starr. In addition to being one of the most influential bands of all time, they were brilliant marketers.
In the 1960s, there was a rumor that Paul McCartney had died. People thought that Paul McCartney got killed in a car crash, and the band had replaced him with an imposter. When The Beatles got to know about this, they tried to play along with the controversy. They released many “clues” in their upcoming albums hinting at Paul’s death which attracted the audience to follow closely and increase sales of its records in midst of the rumors being aired. In its album Sgt. Pepper’s Lonely Hearts Club Band, the cover of the album showed a badge on Paul’s shoulder with “OPP” imprinted on it. In the United States, at those times, OPD meant “Officially Pronounced Dead”, and the photo was captured such that it looked like “OPD” giving more air to the rumor. Another album, The Abbey Road, covers displaying a funeral procession where Paul’s bare feet and the cigarette held by him signifying his death were portrayed in the album. Also, on the same cover, there is a car with the “28 IF” license plate– that’s how old paul would have been if he were still alive(He was 27 at that time). The Beatles have sold over 600 million albums worldwide and the group even held the top five spots on the Billboard 100 in 1964, an achievement unlikely to be challenged.
Just like many Foreign Brands, there various Indian Brands to talk about, these brands not only adopted excellent marketing strategies and Business Tactics but also impacted their Respective Industries in a way that people would remember. You would definitely like to read about them – Nyka, PayTm, Policy Bazaar, and etc.