There is little that is more rewarding for entrepreneurs and executives than creating an entirely new category, fueled by disruptive innovation. Consider the new giants of our time, like salesforce.com, Tesla and Uber, and the incredible value created by their leaders.
We have invited back serial entrepreneur Mark Organ to deliver a sequel to his top-rated presentation last year on category creation. In this session you will learn not just how to define and build your category, but how to dominate it. How do you market differently when building a category versus entering an existing one? How to craft messaging to appeal to the missionaries you need to build your category and company? How to leverage your customer advocates and key influencers to grow efficiently? Mark will answer these questions and much more.
7. a transformational experience
+
driven by disruptive forces
MY DEFINITION OF A CATEGORY:
For a distinct segment of the market,
A revolutionary business model
8. Green-conscious, technophile early adopter car enthusiasts
All-electric drive with equivalent/superior performance to BMW
7-series/Benz S-class
• Custom car ordering online, direct
• Supercharging / battery switching stations
• Continuous deployment of upgrades
• Lithium-ion battery innovation
• Cloud computing
TESLA: Electric high-performance luxury cars
2010-2013
9. High-growth, cash-strapped B2B companies largely in Bay Area
Acquire and deploy good-enough CRM successfully in days instead of years
• Monthly subscription by user
• Continuous deployment of upgrades centrally for all customers
Cloud / internet delivered software
SALESFORCE.COM: Cloud CRM, 1999-2004
10. Process and lead-gen oriented (demand gen) B2B marketers
Automatically nurture prospects, guided by their behavior, until sales-ready
• Monthly subscription, scaled by user
• Continuous deployment of upgrades centrally for all customers
• Cloud-delivered software
• Automated filtering of phone and mail
ELOQUA: Cloud marketing automation 2005-
2013
11. Advocate marketers and the advocates they serve
Advocate-centered, comprehensive and self-service experience
• Monthly subscription, scaled by advocate activity
• Continuous deployment of upgrades centrally for all customers
Pervasive social web
INFLUITIVE: Advocate marketing platform
2010-2???
13. Revenue growth (2004-2005)
Note: Relative Market Share is each company’s revenue divided by the market leader; the market leader’s revenue is divided by the 2nd place
company’s revenue; Precise revenue not available for Upshot and Salesnet, figures represent approximate revenue and growth estimates
Source: Gartner (http://www.gartner.com/newsroom/id/493005)
-40%
-20%
0%
20%
40%
60%
80%
100%
0 0.5 1 1.5 2
Salesforce.com
Oracle
(incl. PeopleSoft)
SAP
Siebel
Amdocs
Upshot
Salesnet
Relative market share
Salesforce.com’s status
as a category creator
enabled rapid growth
several years ago
14. -10%
0%
10%
20%
30%
40%
50%
60%
70%
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Salesforce.com
Oracle
SAP
Microsoft
IBM
SugarCRM
Revenue growth (2011-2012)
Note: Relative Market Share is each company’s revenue divided by the market leader; the market leader’s revenue is
divided by the 2nd place company’s revenue. Source: Gartner (http://www.gartner.com/newsroom/id/2459015)
Relative market share
This led to a dominant
market position today
15. US unit sales 2013
Source: Business Insider (http://www.businessinsider.com/tesla-is-not-really-outselling-bmw-audi-2013-5)
0
50
100
150
200
250
300
350
Tesla Audi Cadillac Lexus BMW Mercedes-Benz
Tesla currently has tiny share vs. all luxury vehicles – similar
to salesforce.com’s broader CRM broader market in 2002
16. 0
2
4
6
8
10
12
14
16
18
20
Porsche
Panamera
Audi A8 Lexus LS BMW 7-
series
MB S-class Telsa Model
S
BUT Tesla is now dominant in the space closer to its
category of all-electric luxury high-performance sedans
US unit sales 2013
Source: Business Insider (http://www.businessinsider.com/tesla-is-not-really-outselling-bmw-audi-2013-5)
17. $1,630K
$35K $33K $10K $9K $6K $0K
$0K
$200K
$400K
$600K
$800K
$1,000K
$1,200K
$1,400K
$1,600K
$1,800K
Tesla BMW
Group
Daimler
AG
VW Ford GM
* Fisker filed for chapter 11 protection in Nov 2013
Source: Yahoo! Finance, Corporate filings, Analyst reports; Market caps are USD & as at Oct 2014
Fisker*
Tesla’s category creator status and rapid growth drive
valuation multiplies far higher than other carmakers
Market capitalization / global 2013 unit sales
18. $3.40
$5.60
$1.20
$0
$1
$2
$3
$4
$5
$6
Overall (20) Category Creators (10)Non-Category Creators (10)
CNN/Fortune top 20 fastest growing companies (2010)
Category
creator
premium
Category creators enjoy nearly a 5X valuation premium
on revenue growth!
Incremental market cap per $1 of additional revenue
Source: Cambridge Partners in HBR Blog, 09/2011
35. How to define and dominate your billion dollar category
Mark Organ, CEO @ Influitive
@markorgan
@influitive
PLAY BY YOUR OWN RULES
Editor's Notes
Icons:
Orange slice
Butterfly
Venus flytrap
Lightning bolt
Text could be presented in a better way
Update with icons used on slide 8
Immense work, super hard – why would anyone do this?
Logos instead of car names on bottom
Logo instead of car names
80% of Category Growth is captured by ~1% of companies
Category Creators grow revenue 4x faster and market cap 6x faster
- What kind of customers do you want? The under-served heroes. How to find them.
- How do you communicate to find them? In a missionary way, not mercenary. Category creators and early adopters both resonate around the “why” – the mission.
LEAVE FOR NOW – FRASER WILL WORK ON
- What kind of customers do you want? The under-served heroes. How to find them.
- How do you communicate to find them? In a missionary way, not mercenary. Category creators and early adopters both resonate around the “why” – the mission.
LEAVE FOR NOW – FRASER WILL WORK ON
Attract not just customers, investors and employees, but competitors too.
You need competitors! A category of one is not compelling.
Missionary zeal attracts employees, customers, investors and – competitors. You need competitors, you can’t be a category of 1!
Mission and purpose keeps you going on dark days. Eloqua employees went 9 months without pay.
Category creators also create missionary customers who spread the gospel and convert the unbelievers.
Grow the pie first, then focus on getting the biggest piece of that pie.
GROWING THE PIE…CAN WE FIND A BETTER IMAGE?
Let’s talk about how interest builds in the categories and the companies that create them…
build into the product; weave advocates into everything you do in marketing, track it.
Fundamental characteristic of well established categories
show where Influitive is now – G2Crowd and analyst recognition, half of the way there!
show advocatemarketing.com, the job board & community – inbound.org, Gainsight’s community effort etc
; know which other products the missionaries use and integrate – particularly the smaller up-and-comers where a decisive advantage can be earned.
FRASER
(Show the Gartner hype curve)
e.g. Big Data/SaaS 3.0
e.g. Drones/AI-enhanced robotics
e.g. Block Chain