Whether you want to call such an insurgency- digital disruption or the fourth industrial revolution, this swiftly transforming environment is affecting the way consumers see things, their purchase behaviors and the way information & products are digested.
This results in marketers raising questions about how to adjust their marketing strategies and in what ways can this be exploited to leverage this change.
With a remodel like this, common practices and never ending truths face a threat and must be taken seriously, and the risk of paying attention to false prophets (of change) is also malicious.
So how do marketers plan a route around this evolution?
I can assure you that that attending a conference on the disruption created by Apple, Facebook, Amazon or Uber is unlikely to provide an awakening.
What can be done by marketers is to focus on the fundamental principles of an effective marketing plan and communication.
Come to think of it, providing the appropriate information to the appropriate customer at the appropriate time is a principle more applicable than ever before, even though it has evolved in its practical application.
Irrespective of the choices available, the ability to personalize messages and offers had created some of the largest innovations experienced.
And it’s not going to stop.
There is a defining trend that the fourth industrial revolution has started, and that is a race to the greatest customer centricity.
This will differentiate the winners from the losers.
Here are a few examples to show you how brands disrupted the market in the past or the possibilities of what may occur in the future:
Tesla model 3 is an all-electric compact luxury sedan unveiled on March 16, 2016, in the U.S.
It had a booking reservation of 2,32,000 in first two days.
By May, the reservation had gone up to 3,25,000 which is equal to $14 billion in potential sales.
Compare it to 22,000 reservations done for Ford’s Mustang which was launched in 1964 (which is a record)
Or, 2,72,000 booking done for original I-phone.
This has never happened in the 100-year history of mass automobile market.
This market disruption was so unique and powerful, that people waited in lines to book the car, without even seeing the prototype.
Tesla has started looking eastwards and has already started accepting pre-order bookings from India for its Model 3 (available at some point in 2017).
Elon Musk, founder, stated on Twitter that the car would come with a supercharger network across India (public access points where the car can be charged), which can fully charge the car in 75 minutes.
This would cause significant disruption in the automobile industry in India, Because Tesla is not an orthodox automaker, has no presence in the country as of today and last of all, India is not an appropriate destination (in terms available infrastructure).
The benefits of these electric and software oriented cars are as follows:
- Less accidents
- Potentially lower insurance payouts (caused because of human error)
- Reduced driver fatigue
- Being disabled friendly( a person who is visually impaired, could technically drive one)
- Improve traffic conditions
- Non-existent emissions released which result in less pollution being emitted
India by 2030 plans to switch completely to electric cars and Tesla would be that kick start.
“Airbnb” is an online marketplace and hospitality service, enabling people to list or rent short-term lodging including vacation rentals, apartment rentals, homestays, hostel beds, or hotel rooms.
The company does not own any lodging; it is merely a broker and receives percentage service fees (commissions) from both guests and hosts in conjunction with every booking.
It has over 3,000,000 lodging listings in 65,000 cities and 191 countries, and the cost of lodging is set by the host.
Airbnb works on a software that allows owners to rent their homes, apartments or hostel rooms to temporary renters at low prices.
This platform has disrupted the hotel industry and is an example to show us that the internet is able to cause paradigm shifts in the balance of power.
Airbnb is valued somewhere between 10 billion$ to 25.5 billion$ which depicts that the founders- Joe Gebbia, Brian Chesky and Nathan Blecharczyk have done some good work.
What’s striking about disruption is the fact that modern consumers are willing to purchase a product or service from a person compared to a large corporate.
They achieve this by linking people to people.
This sharing aspect is what allowed the company to grow.
On the 1st of September 2016, Mukesh Ambani unleashed his disruptive capabilities by announcing that free voice calls, free 4G and zero roaming charges would be provided to customers till 31st December 2016.
During December 2016, he extended the free services till March 31st, 2017 for both new and existing customers.
Then again, on 21st February 2017, he announced that users can enjoy the same unlimited benefits offer till 31st march 2018 by enrolling in the company’s new scheme from March 31st, 2017.
The program offers new and existing customers who enroll before 31st march 2017 to avail “Jio Prime membership” for a price of Rs. 99 for a 12 month period.
Apart from the 12-month fee, Prime members will have to pay Rs. 303 per month to avail the subscription worth over Rs. 10,000 (completely free) till 31st March, 2018.
After its launch on September 5th, Ambani said that Jio had crossed the 100 million customers mark and on an average acquired nearly seven customers per second every day.
When we look at this company, it becomes clear that disruptors focus on interaction in terms of consumerism.
When you disrupt, you create a unique space, which changes the market environment.
Wikipedia; personal computers; smartphones; CDs and USB flash drives; LCD LED displays; digital synthesizers-all have disrupted the market in different ways.
Brands are expected to know and understand the customers’ needs.
With digital now removing barricades for customers to switch brands and change from one product to another, the interacting aspects are the deciding factors.
With unlimited brands present across industries, they can choose who to be loyal to and if you don’t provide reasons to stay, you give them reasons to go.
Most of the time your creativity will work.
Revamping product quality, price reduction, time effective production, and differentiated marketing communication will prove to be feasible opportunities for entering a market and being prosperous.
By recognizing openings and leveraging your resources, you can become the next disruptor.
If you really want to create a mammoth sized brand, your goal should be disruption.