Page 323 - (DK) The Business Book

DELIVERING THE GOODS 321

See also: Finding a profitable niche 22–23 ■ Gaining an edge 32–39 ■ The weightless start-up 62–63 ■ Leading the
market 166–69 ■ The marketing model 232–33 ■ Creating a brand 258–63 ■ Fulfilling demand 294–95

difference between life and death. sun led to premature aging of the
Superior-quality tires, made from skin. The young Lauder took note
harder-wearing rubber compounds, and began making her own skin
also last longer than tires of lesser creams with her uncle, a chemist.
quality, which means that the Like many other successful
driver will not have to face the cost Profit in business comes from entrepreneurs, Lauder genuinely
and inconvenience of replacing repeat customers, customers believed that there was a need for
them as frequently. …that bring friends with them. her product, and in 1935 she began
Great quality is not just about W. Edwards Deming selling her first preparations: super-
using the best components. Design rich, all-purpose crème; crème
is also crucial to achieving a pack; cleansing oil; and skin lotion.
superior-quality product, because In the beginning Estée Lauder
design can offer the consumer new did not use any advertising; she
benefits for which they are willing thought her products were so good
to pay a price premium. In 2011 they would sell themselves. She
the Japanese tire manufacturer prices. If in other aspects (such as relied on her customers to promote
Bridgestone launched its new range function) the products are equal the products. Customers would try
of flat-run tires, based on an to their competitors, adding price her preparations, like them, and
innovative design that enabled premiums to products that are continue buying them. Furthermore,
motorists to run a car with a flat tire especially valued by consumers they would then recommend Estée
for 50 miles (80 km) at a speed of should lead to greater revenues Lauder’s products to their friends.
50 mph (80 kph). This feature enabled and profits. She gave this form of promotion a
drivers to reach the closest garage to name: tell-a-woman marketing.
change a flat tire, rather than having Quality wins out In more recent times, Samsung
to change it on the side of the road. Estée Lauder adopted the “quality has also used the quality-led
Businesses that have managed sells” philosophy when she set up approach to great effect. The South
to incorporate differentiating her cosmetics business in New Korean electronics manufacturer
features into their products can York in 1946. When she was a does not rely on glitzy advertising
exploit the added value that these child, her mother had lectured her campaigns to create its competitive
features provide by charging higher relentlessly on how exposure to the advantage. Instead, it appeals to a
market segment who favors product
quality over brand image.
In April 2013 the Samsung
Galaxy 4 was launched. Very
quickly it gained market share over
the market leader—Apple’s
iPhone—because it was seen as a
more technologically advanced
product than Apple’s latest model,
the iPhone 5. The display offered
around 100 more pixels per inch
than the iPhone 5, and its built-in ❯❯

Customers who are loyal purchasers
of a specific brand are valuable even if
that product is a low-cost one. Quality
is one feature that can inspire trust in
and generate repeat business.