Startup Essentials: Book Review - Purple Cow, by Seth Godin

In his book, Seth Godin - the new marketing guru - talks demonstrates a simple concept: In order to win in todays over advertised, over consumed marketplace, where people just don’t trust marketing anymore, your product has to be ‘remarkable’, literally: It has to be so remarkable, that if people see it, they remark about it. ‘Imagine you’re driving down the road’, he tells us. If you see a regular brown, or white or black cow, you probably won’t be very excited. Its even less likely that you’ll tell your fellow passengers about it. Now imagine, all of a sudden you see a purple cow. You’re probably going to shout out ‘Wow! A Purple cow!’ You’re probably then going to pull out your camera, take a dozen pictures about it and mail it to all your friends - naturally spreading the word of mouth.

In order to be remarkable, Godin (rightly) tells us - you have to take risks, you have to push the boundaries. He believes, however, that its riskier not to take risks, than it is to take risks. If you make yet another plain vanilla offering, trying to please everybody, then you’re probably going to end up with a highly compromised, highly boring product - which nobody is going to end up really liking, anyway.

It also helps to rethink how you spend your money on marketing and product development: If you go and produce a generic product, for say Rs. 10 lakh, and then market the hell out of it, spending say, Rs. 50 lakh, in an over crowded marketplace, chances are, that you still might not make it. On the other hand, if you spent that Rs. 40 lakh in making your product remarkable, or otherwise launching 4 other remarkable products, you are much more likely to get a massively successfuly product that due to its remarkable properties, markets itself.

So how do you make a remarkable product? Alas - if there was a formula, then people would always produce remarkable products (and then these products would no longer be remarkable - so the formula would cease to exist). There is, however a process - look at the traditional ‘Ps’ of marketing - Price, Product, Promotion, Placement, Position, Permission, and with each of them, see if you can test the boundaries. Can you drive a fundamental (not incremental, because your competitors will just match you) shift in pricing? Can you redesign your product so that its fundamentally, remarkably easier to use, more beautiful to look at, and more long lasting? Can you change the way that your sales staff talk to your customers?

While Godin’s book itself probably doesn’t tell you something you don’t know - it serves the purpose of reminding you of the importance of the importance of doing things truly differently in order to beat the competition. With its numerous examples, it also illustrates how other companies built sustainable businesses by doing something remarkable, not once, but over and over (after a while, what’s remarkable, becomes commonplace, therefore you have to do it all over again to keep surviving).

Relevance to India? I feel that since India is not as sophisticated a market, and Indian customers aren’t in the same over consumed state as their US counterparts, the lessons in this book still apply. If anything, given a less mature market, its probably slightly easier to be remarkable here…

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  • admin
    In fact - take another example - online brokerage. If you were to use an Ameritrade / E*trade or Charles Schwab and compare it to the platforms that we have in India - say Reliance Money - you would immediately see the difference. Compared to Reliance Money's interface and tools the American platforms are far superior. Indeed if Reliance wanted to do so, it could probably invest a few crores of rupees and build a wonderful platform - indeed go a further step in terms of localization. In order to do so, it wouldn't really have to think much - it wouldn't have to invent anything. For a lot of improvements, it could just look at the American platforms. Of course, it won't do so at the moment. Why? Because right now people will sign up with Reliance Money simply because they're a known brand and are offering cheap commissions. *Not* because they've got the best online brokerage interface, not because they have superior service. The sign of a more mature (to be used interchangeably with sophisticated) is when companies are having to innovate with their product to *hold on* to their customer base - to retain them. But right now, they don't have to - simply because they're too busy opening new brokerage accounts - people are lining up to do so.
  • admin
    @Krishna and @Sangfroid - when I say that India is not 'as sophisticated a market' - what I was mean is that in terms of pure technological innovation, and availability of goods and services we are behind countries such as the US, UK or Japan. When you walk into a supermarket in the US - you see tens of brands of tissue paper - single ply, double ply, multiple colours, different shapes, scented, textured etc. etc. Therefore it *is* possible for many basic goods and services to create a differentiated, more innovative product, whereas in countries mentioned above, a lot of things have already been done.

    This is exactly why the big companies - the Tatas, the Reliances etc. - are getting into every sector. The market in India (urban and rural) is at a stage where things that are no longer considered remarkable in the west - say cable TV for example - are still considered remarkable. Did Tata or Reliance have to invent the set top box? Not really.

    This is not to say that there isn't innovation in India - clearly I think there is. That innovation as you rightly said Krishna, for products such as cellphones isn't necessarily around building a super sophisticated PDA phone - but more around pricing, efficient distribution, and localisation.
  • "India is not as sophisticated a market" - This statement makes me doubt your credentials!
  • Before we label a market "not sophisticated enough", it is best to do some soul searching. Did the marketer chip in with the right strategy? Did they come with a product that was adapted to the given local context? Before we go to make a "remarkable" product, marketers need to study up the local context, scan customer preferences and adapt suitable strategies. How can we call the market that has the highest global cell phone density "not sophisticated enough"?! Where Nokia got it right, Kellogs sucked... But both had "remarkable" products. A Nokia phone tempted the remark "oh-how-convenient-and -what-a-great-utility-at-such-a-low-price?" while after swallowing the first spoonful of cereal flakes dipped in cold milk prompted us to say "do-they-eat-such-a-bland-stuff-for-their-first-meal-of-the-day?" It just happens that we like hot, spicy stuff and they didn't quite get it!
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