Category Archives: Market Share

Create a Company Culture…Start Now!

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I'm not big on year-end resolutions, big plans and the like. But, I have to share a post from my friend Rich Christiansen.

I've written about Rich before. He wrote "Bootstrap Business" and is an SEO and Adwords expert.

In his latest post on the Bootstrap blog, Rich talks about his relationship with Ray Noorda, founder of Novell. It's a cool story about how one man formed a strong company culture by his own leadership through story, connection and love.

This is a list of qualities that Rich took away from Noorda's funeral…

  • Believe and trust in people.
  • We all have a responsibility in life. Be faithful to it.
  • Customers first, employees second, shareholders third.
  • Be unassuming.
  • Listen, especially with your heart.
  • Practice integrity.
  • Be loyal.
  • Be true to your own core beliefs, but recognize the need to compromise within parameters that don’t violate those beliefs.
  • Respect the individual, not the title.
  • Marriage is ordained of God, and is your first priority in life.
  • Practice fiscal responsibility.
  • Take care of your health.
  • Willingly forgive others’ mistakes and shortcomings.
  • Retain your dignity, no matter the circumstances.
  • Give something back.

Be sure to go read the entire story on the Bootstrap Business Blog.

Have a Happy New Year!

Nice Try Samuel Adams

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"Beer is banned in 13 states!" scream the press releases.

(AP Photo/Charles Krupa) Samuel Adams recently uncorked this year's version of its biennial Utopias beer with lots of hype about the 27% alcohol content that exceeds the legal limit in 13 states.

Wow. You'd think people would be up in arms. You'd expect lawsuits, protesters, speeches from the pulpit, yet I haven't been able to find much negative news about this evil brew.

It turns out that it's not really a beer at all. Technically, yes it is beer. Functionally, not even close. What they've really done is make a sipping cognac out of beer. At $150 a bottle, even the Mothers Against Drunk Driving doesn't have a problem with Utopias, and they are quoted as such in the original press coverage.

In chapter 8 of Tom Wanek's new book, "Currencies That Buy Credibility," he talks about risking your reputation and prestige to buy credibility. In essence, you do something that will cause some of your customers to be repelled while others embrace your brand more tightly than ever.

In the case of the Utopias press, it's a surface-level ploy to seem cutting edge and risky. They want you to be shocked that this is a beer that has been "banned" in 13 states. You should be outraged that it costs $150 a bottle at retail. Yet, when you dig a little deeper…or just blow the marketing dust off the label…you find out that this just doesn't live up to the hype. It's just another bottle of expensive sipping hooch for connoisseurs.

So, how could Samuel Adams ACTUALLY risk reputation and prestige?

They'd have to do something that would actually enrage the MADD crowd. They could put out a beer that's both strong, cheap and easy to guzzle…something that would attract the high school drinker as well as the street bum. They need a beer that would get them written up in BumWine.com for the hallucinatory side-effects of the dangerous secret ingredients.

Give that one a try, Sam.

What's Your Market Share? Do you really know?

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How much of the market for your particular product or service do you own?

Mathboy Car dealers, real estate companies and other businesses whose transactions are tracked by the government have it made. They know exactly where they stand. Some businesses have an industry clearing-house that collects such information and shares it with members.

For other local retailers or service businesses, this can be a rather difficult number to calculate with any degree of accuracy.

So, how to keep score?

If you've been in the market for long, you actually know more than you think. I hope these steps help you.

1. Write down every one of your competitors by name
2. Order them from biggest to smallest
3. Estimate their annual billing by your BEST GUESS (you're probably close enough to at least make this a useful exercise)
4. Write this number next to their name
5. Show the list to your sales staff, spouse or managers and ask them to add the competitors that you forgot
6. Place your business and your sales number in its proper place in the list
7. ADD up all the numbers…this is your estimate of Market Potential
8. Divide YOUR number by the TOTAL…this is your MARKET SHARE

If the Market Potential seems like a much smaller number than you thought it would be, you've probably missed a few competitors.

What's the lesson from this exercise?

Now, you have a scoreboard!

All of the businesses listed ABOVE your name are targets! Your goal is to be stealing market share. Study them and learn how you can be better than they are.

All of the businesses BELOW you are either potential acquisitions or potential threats to YOU. They see a target on your back. Don't ignore them.