It's really worth appreciating when a start-up or a rising start up becomes market leader. When UBER kicked off the market, it was just wonder how it knocked out all other existing competitors. UBER was so much popular in plying the streets of Dhaka that non-app based previous car rent system received a shock in competition and almost on the verge of failure. However, the marketing concept of occupying hired car business by not possessing a single car by the main company was really an innovative pioneering.
While startup, the concept of Patho as app-based ride sharing was a welcome news especially to the lower income group for whom hiring a motor bike was easier than a car from financial perspectives. When UBER commenced motorbike service and Patho launched rental car service based on internet applications, conflict of interest appeared which was not unexpected in the knock out game of marketing competition.
Again when Yahoo as company was unbeatable in the world of digitalized communication, Gmail emerged as a mere startup and within a very short time climbed up the peak by making the very existence of yahoo jeopardize. Gmail was more user-friendly than Yahoo which was their ultimate marketing strategy. Can anyone remember who used MSN last time? But Google is used as a routine. So, no market leader has leisure to ignore startups.
When online shopping like Ali Baba or Daraz.com appeared as gladiators the super shops became just helpless in front of them. No need to mention the local groceries which people started to ignore as much as they can for the convenience of online purchase. For online marketers, COVID 19 came as further blessing when mass people ultimately had to start buying online.
However, the stories of market failure are also common for startups. When Jira Pani was introduced by companies like RC or Pran, it stumbled or failed to shine before existing soft drinks like Coca Cola, Pepsi, Seven Up, Sprite because of strong brand loyalty of such soft drinks. Soft drink companies like Coca Cola, Marinda , Sprite knew how important it was to retain existing customers apart from procuring new. So, the startups RC or Prans Jira Pani had no lasting impact on mass consumption.
You know which marketing strategy made Bikash as market leader from startups? Bikash distribute commission to the shopkeepers or middle men substantially for which it has become part time business for many. Here the marketing strategy as start up was to give sufficient incentive to all Bikash service sellers so that business expands faster than profit.In spite of being pioneer of mobile banking, Rocket operated by Dutch Bangla Bank still lagged behind BRACs revolutionary marketing concept of Bikash.
The first government approved super shop was PQS operated by Agora in 1999. As startup , it was not initially that much popular but in course of time the concept of super shop became highly popular.The more the super shops came to front line, lesser popular became the groceries of the road sides. Many startups stuck in nightmare and think that whatever they offer customers will accept without a single thought which is a stupid idea. There are many private televisions which think that whatever programs they broadcast people will watch irrespective of quality and it was underestimation of audience. Only for audience, talk shows and realty shows have become popular worldwide.
There are many viewers of talk shows and realty shows now-a-says which was not the case when they were just at beginnings. You must know how to sell things people did not taste before which is the true secret of the success of startups. Marketing is all about changing the way of the world. Who thought in 1980s that people would use hand wash instead of soap? Need is created even sometimes before it is felt and all marketers are crazy to do that.
In the world of marketing "sorry" does not change anything and a single mistake is enough to crush a market leader let alone startups.Citycell mobile failed to think as startup that customers trust is more important than profit which compelled it to become a loosing concern. The reluctance to accept latest technology was another hidden cause for the failure of startups like Citycell. Start ups have to face hurdle like first female pilot, first female army officer in any country.
Actually the marketing strategy of successful startups is right timing instead of right product.Ola appeared as rising startup and competitor of UBER in India in car rental service. We Chat in China appeared as competitor to Facebook, Viber, Whats up of western world as digital platform of communication. Right timing of Ola and WeChat made them successful irrespective of product or service perfection. In Russia, not strictly a startup because it was founded in 2006, VK.com is positively identified as cloning of Facebook even byMark Zuckerberg.
In Bangladesh digital platform for hiring and ticket booking Sohozassured that people no longer need to stand up in thequeue for collecting transport tickets. On the other hand, popularity of Food Panda, Amazon, Chaldal.com as online delivery service spread just like storms once they initiated online service. In Off line businesses like one of developers, many surrendered in the beginning since they failed to understand that with money, people buynot home but comfort, not office but an awesome work station.
Many old businesses become startups by rebranding or by repositioning. One such example is Deshi Dosh, a joint approach of ten local fashion houses of Bangladesh together. Though they are all old fashion houses, the new name "Deshi Dosh" is their unconventional marketing strategy that has its trust on old philosophy called "Unity is strength". Ten branded fashion houses were singularly rebranded and repositioned as Deshi Dosh as startup like "old wine in new bottle". Many marketing strategies are developed after analyzing market gaps.
HungryNaki is the first online food delivery service provider in Bangladesh while which filled up the gap of service holders need of servants to cook food specially during lunch time. Even with huge money, many people cannot get the appointment of best doctors in Dhaka city specially. Taking this as market gap, Doctorola started as the first online doctor appointment booking service platform in Bangladesh which was later followed by other startups.Market changes faster than its growth for which Skype became irrelevant for popularity of Facebook and now Facebook may have to accept the same fate for growing popularity of Whats Up, Viber and Imo. To sum up, it will not be exaggeration to say that digital and online platform opened up the avenues for the unprecedented growth of startups in 21st century all across the world.
The writer is Assistant Vice President, Financial Administration Division(FAD), Shahjalal Islami Bank Ltd
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