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Four actions model

To reconstruct the elements of customer value, there is a four-step model. To break the compromise and create a new value curve, four basic questions need to be answered.

• What factors that are taken for granted should be eliminated?
• What factors should be significantly reduced compared to existing standards?
• What factors should be significantly improved over existing standards?
• Which factors that have never been suggested should be created?

The first question gets you thinking about leaving the competition in your industry.
The second question leads to finding out which products or services are unnecessarily complicated.
The third question challenges you to identify and eliminate the trade-offs your industry forces consumers to make.
The fourth question helps to discover completely new sources of value for buyers.
By answering the first two questions, you can understand how you can reduce costs compared to competitors.
The second two questions help to understand how you can add value to the buyer and create new demand. Together, they allow you to figure out how you can revolutionize the industry.

Consider the wine situation in the United States: by going against industry logic and looking at alternatives, Casella Wines created a [yellowtail] wine that was out of competition. It was a party drink that was perfect for beer and cocktails lovers.

In two years, [yellowtail] became the fastest growing brand in the history of the Australian and American wine industry, and the main wine imported into the United States. By August 2003, it was the most popular red wine in the United States in 750 ml bottles. By mid-2003, average sales were 4.5 million bottles per year. [yellowtail] didn't steal sales from his competitors - he expanded the market.

Casella Wines took all four steps — abolish, downgrade, enhance, and create — and eventually opened up an uncompetitive market space. The company created three new factors - ease of use, ease of choice, entertainment - and discarded or downgraded all others. Many Americans do not drink wine because its complex taste is difficult to get used to. [yellowtail] has a clear, uncomplicated aftertaste with sweet fruity notes.
Also [yellowtail] producers have given up aging. This accelerated the return on investment of the wine produced. Experts criticized the sweet fruity flavor, believing that it prevents people from appreciating good grapes and the ancient craftsmanship of winemakers. It may be so, but [yellowtail] took consumers’ fancy.

In the past, bottles of the same type were offered with many incomprehensible words, which oppressed the average consumer. Casella Wines has created only two types of wine: Chardonnay, the most popular white wine in the United States, and Shiraz, a red wine. The technical jargon was kicked out of the bottle and replaced with a catchy, simple, unconventional label.

Wine broke all records of ease of choice when its producers made the sellers of retail stores "ambassadors" of their brand, dressing the sellers in their national costumes.

Casella Wines was the first to bottle white and red wine in identical bottles. This made manufacturing and purchasing easier. The elite and long history of wineries confused the masses, so Casella Wines broke with tradition.
By offering such a jump in value, producers raised the price of their wines, pricing a bottle at $ 6.99, more than double the price of the cheapest wines. Since July 2001, when this wine first appeared on the shelves of retail stores, sales have continued to grow.



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