What is 'positioning' to escape from the 'trough of sadness' that startups fall into?
Some services become hugely successful, gaining tens of thousands of users in a day or hundreds of thousands in a week after release, but many inventions and services gradually increase their users over a long period of time. The process of stagnation that continues for a while after attracting a little attention due to novelty is called the ``valley of sadness,'' and many companies and services, including large companies, have experienced it, but it is difficult to overcome the valley of sadness and succeed. Johann Friedner, an engineer and marketing strategy expert, explains how to do this.
How To Escape The Startup Trough Of Sorrow - Briefmix
Y Combinator , which primarily invests in startup companies, has shown the following diagram as the 'process that startups go through.' At first, the company sees growth as a ``rite of passage'' is to be featured on TechCrunch , which distributes news about IT startups, but the novelty soon wears off and the company enters a long slump. This state of stagnation is called the ``valley of sadness,'' and it is said that once you overcome the valley of sadness, spread and success awaits you.
Even the five-year-old startup that Friedner consulted for had a long period of stagnation, with no real growth, competitors closing in, and declining profits. At that time, it seems that they were able to get the startup off the ground by changing their 'brand positioning' and communication.
Brand positioning, as explained by Mr. Friedner, means 'clearly demonstrating what gives a brand an advantage over its competitors.' Articulating strengths leads to communication that tells specific customers how they can solve their problems better than anyone else.
Brand positioning affects not only corporate strategy but also design, copyright, advertising campaigns, etc. These are not permanent and need to be tweaked or even changed completely as trends evolve.
Friedner points to music streaming service Spotify 's moves as an example of brand positioning. Spotify is a monthly subscription service, or you can enjoy free music with ads. However, due to the recession and the coronavirus pandemic, advertisers are increasingly reducing their budgets. Spotify has successfully shifted to a more successful model by focusing on original content and curated playlists, resulting in an increase in paid subscribers.
Friedner says that ``research'' is the most important methodology for brand positioning. You need to research a variety of broad categories such as current trends, culture, and consumer behavior to find insights that you can use to build your brand ideas. Friedner cites the ``4 C's of marketing'' as ideas that can help with research and insight.
The first is Consumer, where you need to flesh out important insights about consumer behavior and needs from the segmentation study you just completed. Second, a thorough audit of your competitors' strategic messaging and initiatives will help you understand where the market openings are.
Third, it is effective to consider what changes and trends in culture are occurring in society, and what can be used and what should be opposed. Fourth, by researching the company's history and organizational structure, you can establish values and ideas that can support your company's new positioning.
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