February 20, 2011

Sizing up the competition

Posted in Airlines, Blue Ocean, Business model, Design, Frequent Flyer, Luggage, Marketing, Materials, Strategy at 12:36 pm by Kilo

When we first started to investigate the market for carry-on liquid bags, we bumped into dozens of alternatives to the simple plastic bag out there in the marketplace.

Some producers took a high road, positioning (and pricing) themselves in the upper reaches, some positioned and priced to get volume. It was interesting to follow the PR efforts of the various positions: some pitching at high end fashion magazines, others pitching at the savvy backpacker.

What we quickly realized is that despite the intended price-based positioning, these various offers were competing on the same basic characteristics. Typically these bags all featured the same basic design: low cost metal/plastic zippers, inexpensive clear plastic sides, a lack of waterproofness, some 100ml bottles, little or no hygiene, and a few minor styling cues.

We saw that with the fundamental concept and design of Jellypods we had a chance to completely innovate the category, changing the rules by which the game was played. We used a couple of techniques such as the ERIC framework (Eliminate, Reduce, Increase, Create) to figure out which elements we would get rid of entirely e.g. metal zippers, and which we would introduce for the first time such as silicone materials; which were expensive additions that added little value such as the plastic bottles, and which areas were under-emphasized such as hygiene.

The result was a completely new product category for Jellypods, one in which certain core themes in most other products are completely removed, and several new attributes are introduced for the first time. We’ve been able to generate something that looks unique and behaves in a way that lifts it above the level of the rest of the market. If this ultimately does turn out to be a success, that basic thinking about product attributes is likely to be a large part of the reason why.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: