What is Blue Ocean Brand Strategy?
>> How Red Bull and Go Pro founders created uncontested markets and become billionaires <<
B2B consultants, web agencies, growth hackers and entrepreneurs.. even FARMERS can apply the same Blue Ocean Brand Strategy as Red Bull and Go Pro to get out of low margin, commoditised, soul destroying markets that are flooded with copycats.
Red Bull and Go Pro are market leading, billion dollar BRANDS.
In ten years or less, their founders are worth over one billion dollars each. Recently, Go Pro founder, Nick Woodman filed for an IPO that will make him worth more than his already $1.2 billion.
It’s easy to stand out in a market when you are the perceived market leader. Think Red Bull. ThinkGo Pro. Think Virgin Cola…
Uh.. maybe not Virgin Cola. The first two became billion dollar companies within 10 years. Virgin Cola will struggle for some while and may not succeed at all… yet it is backed by the multibillion dollar ‘Virgin’ group.
You see, Virgin Cola is stuck in a commoditised, highly competitive market that the only way to win is by taking market share from competitors. Those competitors just happen to be Coke and Pepsi. This type of market is what we call a Red Ocean. Good luck winning that fight Virgin Cola.
Red Bull, on the other hand, another beverage company, decided to create a new market category. One that they could dominate, stand out and own for themselves. They created the Energy DrinkMarket. A Blue Ocean Brand market where they can command the attention of their target audience.
Swimming in a Blue Ocean (uncontested market) is much better than swimming in a red one.
Signs Your Stuck in a Red Ocean
Many businesses are stuck swimming in a bloody red ocean. WordPress web designers and consultants are a classic example.
Typical symptoms that you are stuck in a Red Ocean are:
- Low Barriers to Entry: New suppliers and providers keep flooding the market. Think off shore wordpress web designers, global wine industry, most agricultural commodity markets.
- Buyers have commoditised attitude to your product or services. They expect prices to be at a certain low price point otherwise they will go elsewhere. They always demand better terms, shop around and display little loyalty.
- No USP – Communicating a point of difference is difficult to achieve
What this means for your business if you’re stuck in a Red Ocean:
- You are always under margin pressure.
- You are always the price taker and never the price maker.
- Limited opportunity for growth without significant resources
What it feels like being in a Red Ocean
If you are sales professional earning a living in a Red Ocean, this can become stressful from the constant pressure and lack of opportunity to communicate a real point of difference. Business owners can feel frustrated as less quality providers are now overtaking the market or making more and more outrageous claims just to compete.
Learning how to apply a Blue Ocean Brand Strategy will enable your business to become the authority in an uncontested market.
You are repositioning as the market leader by way of executing the strategy. If you are in the B2B services and consulting industry, you can quickly take the position of a trusted advisor.
How to Transition Using a Blue Ocean Brand Strategy
Defining a new market category (Blue Ocean) that communicates benefit to the target audience is the key to a successful Blue Ocean Brand Strategy.
By promoting the new ‘blue ocean’ category through marketing activity, business owners & entrepreneurs are promoting to their target audiences self interest, not their own products or services (read: self interest). It embeds your prospects needs into the fabric of your organisations marketing.
This is a critical shift in marketing and sales strategy!
Go Pro defined its Blue Ocean market as High Definition (HD) Action & Adventure video camera. NOT HD personal video cameras. That space was well and truly dominated by the likes of Sony and Panasonic.
They positioned themselves as the leader in the new market and they positioned themselves as a lifestyle brand. By creating a brand that resonated with the target audience, by being the perceived leader in the HD Action Adventure video camera market, the owner of Go Pro is now worth over $1 billion and the company is filing for IPO.
If Virgin had invented the ‘Energy Drink’ category, then applied its brand credibility and awareness to that segment, they would have given themselves every chance of succeeding in the beverages market. They didn’t take a Blue Ocean Brand strategy approach and are locked in a no win situation in the Cola market.
If a billion dollar company like Virgin Cola cannot make it in a Red Ocean, how do you think your business will fare?
Applying Blue Ocean Brand Strategy to Small Business
I applied this approach to an engineering firm in rural Australia. The firm was called Murphy Engineering. A name that was meaningless to the target audience. It has a specialist skill set in repairing the long wide fronts of combine harvesters. By applying Blue Ocean Brand Strategy thinking, we invented the category ‘header front repair’. Header is the colloquial name for harvester in Australia. The name was changed from ‘Murphy Engineering’ to ‘Header Front Repairs.’ The new name clearly communicates the benefit to the target audience and combined with a Business Growth Publishing strategy, this business is going from strength to strength.
Another example of applying Blue Ocean Brand Strategy is to the corporate training and consulting market. I am a co-founder of a business called Social Media Navigator. It helps corporates and government use Enterprise social media tools to improve productivity inside the firewall. The Blue Ocean Brand strategy applied was called ‘Social Productivity’. The category name implies a direct benefit to the target audience. We continue to promote the category ‘social productivity’ as we are the leader in this space.
Publish & Grow is a training and consulting service using a Blue Ocean Brand Strategy. The newBlue Ocean Brand category is called ‘Business Growth Publishing’. Not content marketing, native advertising or any other confusing jargon.
Comparing Apples and Oranges
If you wish to stay an apple and be compared against all the other apples in the market, go ahead and stay in a Red Ocean. By transforming into an ‘orange’, using Blue Ocean Brand Strategy, you begin to take back control and become the authority in your market. Your uncontested Blue Ocean is a place where your business can thrive.
How to Implement a Blue Ocean Brand Strategy in your Business
Who is it for?
It is idea for B2B consultants, advisors and sales professionals, as well as growth hackers & entrepreneurs who want to:
- Stop swimming in a Red Ocean, no matter what market you are in,
- Become the authority and leader in an uncontested market
- Get away from price based marketing
- Move their business from surviving to thriving.
This will be a one time webinar and the replay will be made available for sale at some time in the future.
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