Petrogram - Spring 2011 - (Page 27)
Create Competitive Disruption Through the
very week I interview CEOs from a vast range of businesses. My work over the past 10 years returns inevitably to a simple conclusion: breakthrough companies win by launching “winning moves.” I believe that there are eight types of winning moves your company could Kaihan activate to disrupt your competition. I Krippendorff call them the “8 Ps” – product, price, placement, promotion, positioning, people, processes and physical experience. Think of your company as an eight-cylinder engine; the more of those pistons you’ve got ﬁring for you, the faster you will grow. I’ve rarely found a company that has winning moves across all of the 8 Ps, but last year I found one. It has little to do with oil or distribution, but if you’ve ever eaten dinner you can relate to it and it is one of those very few business that runs on eight cylinders. Try using similar approaches to your own business machine. Andres Carne de Res – the Perfect Restaurant? Every year, for the past four, I travel down to Colombia for business and every time I go, someone tells me, “You have GOT to have dinner at Andres Carne de Res.” During my last visit I ﬁnally got my chance to go, and I had the most unique dining experience I have ever known. I’m going to break down the restaurant’s strategy using the same framework I use to teach my “service innovation” class – the 8 Ps. 1. Product – Andres Carne de Res oﬀers a long menu of creative dishes. Local beers are served with a paper yellow butterﬂy pasted to their bottle necks. Wine is served in bottles individually hand-painted in bright colors by local artists. 2. Price – Refers not just to actual prices but also to how they are communicated and how customers pay. When we asked for the menu, our server gave us a small metal case. Inside was a scroll and cranking the bottom or top handle rolled a menu up or down to see oﬀerings and prices. 3. Place – Andres Carne de Res is nearly 30 years old, it is packed every night it’s open, and people talk about it from all over the world, but the restaurant has only two locations.
One is in a distant suburb 30 minutes outside of Bogota. Two years ago they opened their second location: a fourstory maze in one of Bogota’s cheekiest shopping districts. 4. Promotion – As far as I can tell, Andres does none. They rely exclusively on word-of-mouth. It seems the no-promotion strategy is serving Andres just ﬁne. 5. Position – It’s hard to ﬁt Andres into a box. The restaurant felt somewhat like an original Hard Rock Café, but it is more than a theme restaurant because it has three dance ﬂoors, a stage, a piano and a DJ, and actors interrupt your meal every now and then, playing funny improve scenes. 6. Processes – This multi-sensory experience is supported by an uncommon orchestration. I could not ﬁgure out how they engineered it, but we must have been helped over the evening by at least seven diﬀerent people who passed us oﬀ as seamlessly. 7. People – At the stair landing, three women dressed as maids commented loudly that whoever had ironed my shirt did a terrible job. About a third of Andres’ 1,000 or so employees seem to be actors. Their job is simply to play interesting characters and entertain the guests all night. 8. Physical experience – Finally, Andres has created a physical experience that I cannot truly describe. I lack the skill to give it justice with my words. There were fresh-cut roses hanging on strings above our heads, butterﬂy-shaped confetti fell from the sky, and a metal staircases led you from “hell” up to “purgatory” then to “heaven.” As the DJ’s music displaced the eating, as diners abandoned tables for dance ﬂoors, the restaurant evolved, revealing layers and layers of intricate surprises. The case of Andres Carne de Res suggests that you consider at least two things. First, of course, get yourself to Bogota and experience it for yourself. Second, look for what you can do across all eight dimensions to design a truly unparalleled, disruptive customer experience. ❍ Kaihan Krippendorff is a business strategist, speaker and the author of three business strategy books. Kaihan is an expert blogger with FastCompany.com, and he has been featured BusinessWeek, The Miami Herald, and Bloomberg Radio. Visit www.kaihan.net to learn more.
Table of Contents for the Digital Edition of Petrogram - Spring 2011
Petrogram - Spring 2011
Meet Your New Executive Director
FPMA Chapter Meetings Are a Success!
FPMA Member Spotlight
You’ve Been Sued and Your Insurance Company Denied the Claim: Now What?
Out & About the Industry
How Health Care Reform Will Aff ect Your Business
Create Competitive Disruption Th rough the “8 Ps”
Index of Advertisers/Advertiser.com
FPMA Featured Advertiser Marketplace
Petrogram - Spring 2011