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How to define and dominate your billion dollar categoryMark Organ, CEO @ Influitive@markorgan@influitive
PLAY BY YOUR OWN RULES
TAKE A NEW ROAD
Company
Category Cloud-based Marketing Automation Advocate Marketing
Founded Jan 2000 Oct 2010 Exit Nasdaq IPOORCL TBD Value $871M TBD -- $B
WHAT IS ACATEGORY?
a transformational experience+driven by disruptive forces
MY DEFINITION OF A CATEGORY:For a distinct segment of the market,
A revolutionary business model
Green-conscious, technophile early adopter car enthusiasts
All-electric drive with equivalent/superior performance to BMW7-series/Benz S-class
• Custom car ordering online, direct• Supercharging / battery switching stations• Continuous deployment of upgrades
• Lithium-ion battery innovation• Cloud computing
TESLA: Electric high-performance luxury cars 2010-2013
High-growth, cash-strapped B2B companies largely in Bay Area
Acquire and deploy good-enough CRM successfully in days instead of years
• Monthly subscription by user• Continuous deployment of upgrades centrally for all customers
Cloud / internet delivered software
SALESFORCE.COM: Cloud CRM, 1999-2004
Process and lead-gen oriented (demand gen) B2B marketers
Automatically nurture prospects, guided by their behavior, until sales-ready
• Monthly subscription, scaled by user• Continuous deployment of upgrades centrally for all customers
• Cloud-delivered software• Automated filtering of phone and mail
ELOQUA: Cloud marketing automation 2005-2013
Advocate marketers and the advocates they serve
Advocate-centered, comprehensive and self-service experience
• Monthly subscription, scaled by advocate activity• Continuous deployment of upgrades centrally for all customers
Pervasive social web
INFLUITIVE: Advocate marketing platform 2010-2???
WHY WOULD YOU WANT TO BUILD A NEW CATEGORY?
Revenue growth (2004-2005)
Note: Relative Market Share is each company’s revenue divided by the market leader; the market leader’s revenue is divided by the 2nd place company’s revenue; Precise revenue not available for Upshot and Salesnet, figures represent approximate revenue and growth estimatesSource: Gartner (http://www.gartner.com/newsroom/id/493005)
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6-20%
0%
20%
40%
60%
80%
100%
Salesforce.com
Oracle(incl. PeopleSoft)
SAPSiebel
Amdocs
UpshotSalesnet
Relative market share
Salesforce.com’s status as a category creator enabled rapid growth several years ago
0.00 0.20 0.40 0.60 0.80 1.00 1.200%
10%
20%
30%
40%
50%
60%
70%
Salesforce.com
Oracle
SAP
Microsoft
IBM
SugarCRM
Revenue growth (2011-2012)
Note: Relative Market Share is each company’s revenue divided by the market leader; the market leader’s revenue is divided by the 2nd place company’s revenue. Source: Gartner (http://www.gartner.com/newsroom/id/2459015)
Relative market share
This led to a dominant market position today
US unit sales 2013
Source: Business Insider (http://www.businessinsider.com/tesla-is-not-really-outselling-bmw-audi-2013-5)
Tesla Audi Cadillac Lexus BMW Mercedes-Benz0
50
100
150
200
250
300
350
Tesla currently has tiny share vs. all luxury vehicles – similar to salesforce.com’s broader CRM broader market in 2002
Porsch
e Pan
amera
Audi A
8
Lexu
s LS
BMW 7-
serie
s
MB S-cl
ass
Telsa M
odel
S0
4
8
12
16
20
BUT Tesla is now dominant in the space closer to its category of all-electric luxury high-performance sedans
US unit sales 2013
Source: Business Insider (http://www.businessinsider.com/tesla-is-not-really-outselling-bmw-audi-2013-5)
Tesla BMW Group
Daimler AG
VW Ford GM $0K
$200K
$400K
$600K
$800K
$1,000K
$1,200K
$1,400K
$1,600K
$1,800K $1,630K
$35K $33K $10K $9K $6K $0K
* Fisker filed for chapter 11 protection in Nov 2013Source: Yahoo! Finance, Corporate filings, Analyst reports; Market caps are USD & as at Oct 2014
Fisker*
Tesla’s category creator status and rapid growth drive valuation multiplies far higher than other carmakers
Market capitalization / global 2013 unit sales
Overall (20) Category Creators (10) Non-Category Creators (10)
$0 $1 $2 $3 $4 $5 $6
$3.40
$5.60
$1.20
CNN/Fortune top 20 fastest growing companies (2010)
Category creator premium
Category creators enjoy nearly a 5X valuation premium on revenue growth!
Incremental market cap per $1 of additional revenue
Source: Cambridge Partners in HBR Blog, 09/2011
WHERE DO NEW CATEGORIES
COME FROM?
VS
Category creators have missionary zeal about their category vision, not just their company vision.
MISSIONARY MERCENARY
THE 6 RULESOF CATEGORY CREATOR GO-TO-MARKET
MARKET THE CATEGORY1
Tesla
Salesforce.com
Software-as-a-Service
Electric car
Source: http://www.google.com/trends/
1
1
Tesla
Salesforce.com
Software-as-a-service
Electric car
Period in which interest in the category tracks with interest in the category creator
Source: http://www.google.com/trends/
1
Tesla
Salesforce.com
Software-as-a-service
Electric car
Period in which interest in the category creator far outstrips interest in the category
Source: http://www.google.com/trends/
1Do not call yourself the leader in your category. That is the job for your advocates, not your marketing department.
(NOT INFLUITIVE)
ELEVATE THE UNDER-SERVED MISSIONARY2
Advocate Marketing: CREATE POWERFUL WORD OF MOUTH3
4 Influencer Marketing: LEVERAGE INFLUENCERS TO RECOGNIZE THE CATEGORY
Community Marketing: ENABLE PRACTITIONERS TO CO-OWN THE CATEGORY5
Category Creator Biz Dev: INTEGRATED PARTNERS TRANSFORMATIONAL EXPERIENCE6
NEW CATEGORIES ARE BUILT ON TOP OF DISRUPTIVE TECHNOLOGY
BLOCKCHAIN
How to define and dominate your billion dollar categoryMark Organ, CEO @ Influitive@markorgan@influitive
PLAY BY YOUR OWN RULES