It’s Foodie Friday and today we’re going to raise a glass to chewing gum. Well, not to the gum itself, but to the founder of the Wrigley Chewing Gum Company, Mr. William Wrigley. While he made his fortune selling gum, he started out to do something quite different and therein lies the thought I have for us today.
(Photo credit: Wikipedia)
Mr. Wrigley began selling soap. Like many of us in business, he tried to distinguish his brand by giving his customers a little something extra which would help distinguish him and his product from the competition. In his case, he would give away baking powder. After a time, he figured out that his customers liked the baking powder more than the soap and so he started to sell baking powder. Along with the baking powder, he gave away two packages of gum. You can guess what happened next.
There are two things in his story that I think are relevant to any of us in business. First, giving the customers what my Creole friends call a “lagniappe” – a little something extra – always pays dividends and sometimes they’re huge. I don’t know if Mr. Wrigley’s soap (or baking powder) were premium-priced to cover the cost of the extras he gave away, but the outcome certainly negated any cost. Always ask yourself how you can do more for the customer.
At some point, Wrigley realized that he had to pivot his business because his sideline was more successful and popular than his main business. He’s not alone in this. WeWork grew out of a baby clothes business renting unused space in their building. Instagram was something that grew out of the users of a whiskey lover’s app posting photos. The founders recognized that the photo sharing was more important to the users than the whiskey information. When Justin.Tv began letting users stream videos, (having started as just one guy streaming his own life) the “gaming” channel blew up and Twitch was born.
We need to keep an open mind when we see opportunities. Yes, we can’t always be chasing the new shiny new thing, but when one aspect of our business is screaming to be given a lot more attention, we need not be afraid of making a pivot. Mr. Wrigley pivoted (twice) a century ago, and while technology has changed, the basic business acumen he displayed hasn’t. Ruminate about that!
Filed under Consulting, food
Over the weekend I saw the Dark Star Orchestra. For those of you unfamiliar with the band, they’re one of the leading tribute bands out there and they play the music of The Grateful Dead. I’ve seen them several times and oddly enough each time I do it reminds me of a few business thoughts.
I played in several bands as I was growing up. We always felt we were a cover band. We were playing someone else’s songs but doing so in our own way. Most tribute bands go beyond that and attempt to recreate the sounds and often the appearance of the original artists. If you’re any sort of fan of The Dead you know that their performances were very hit or miss. The DSO is way more consistent and they sound just like The Dead on a great night each and every time. So what does this have to do with business?
I think imitation is more than just the sincerest form of flattery. I think in many ways it’s better than innovation despite the fact that we often hear of the “first mover advantage.” Innovation is great, but by not being first the flaws in the original product or service become way more clear. The fact that you’re building later lets you correct for those flaws and get beyond the original. That usually is something you can do much more cost-effectively too.
What do I mean? The iPod was not the first music player, just the most successful. Anyone who looks at Instagram knows both that they weren’t the first of their kind and that most of their “new” features these days come right from Snapchat. You could video chat someone long before Skype came around and Amazon was not the first retailer on the web. Each of those companies, and other such as Spotify and eBay, were not first movers. They were imitators – tribute bands if you will, who took the best of the pioneers and made it better.
Is it easier to get funding for a copycat? Probably – the business model has been proven and, therefore, investor risk is reduced. Japan, and now China, built economies on imitating successful products and making them better and/or cheaper. A tribute band has a pre-built fan base. If you’re a Beatles fan or an Oasis fan or a fan of The Band, you have no chance to see the original but you can spend a night with their music. If you’re a business, you don’t have to be the original if you can make the original better and capitalize on their fan base. The DSO do it brilliantly. Can you?