How Albert Sloan’s Product Strategy Of 1923 Overtook The Model T

Using the Social Media of the day, Albert Sloan’s product strategy of 1923 overtook the Model T. This is a bench mark marketing strategy. This was the beginning of conventional, modern marketing strategy. After this campaign, marketers understood how important conventional marketing was in branding a product.

In 1923, for the first time, targeting, segmenting, and differentiation were used to brand a product. Albert Sloan was an executive at General Motors for forty years. Mr. Sloan has much to teach contemporary social media marketers because he understood how to integrate social media into his marketing strategy.

When Mr. Sloan first took the leadership of General Motors in 1920, he was faced with a daunting task. At this time, the Ford Model T dominated the automobile market. The numbers were staggering. The Model T controlled 60% of the market. General Motors only had 12%. To overcome this, Mr. Sloan used social media to create a brand. Remember, social Media is a conversation between two friends—the consumer and the brand. This is what Mr. Sloan did.

He toured the country and spoke to American consumers. He conversed with them. This is a benchmark for what modern marketers should do today. This engagement with consumers allowed Mr. Sloan to detect how the car market was changing. This is a benchmark that contemporary marketers should follow as they use social media. To effectively brand products, the brands have to relate to the people in the markets.

The thing to learn from Mr. Sloan is this. In our contemporary markets, because there are so many products and so much information, the markets evolve quickly. This is why social media platforms are such a great tool. By listening to customers, you know just when game changing factors have occurred that change the entire nature of a market.

Through customer engagement, Mr. Sloan understood some very important details. America now, in 1923, had a middle class, with disposal income. Americans had more money available to them to purchase cars. They needed a car, as Mr. Ford had discovered in 1908, but they needed a car that was easy to drive, enjoyable to ride in, and easy to fix when it broke down. Mr. Sloan realized that product quality was a key factor in purchasing a car. Low price was no longer the key, deciding factor in purchasing a car.

A critical factor that Mr. Sloan realized about the American society was that people use their cars to define their state in life for everyone else to see. If people were rich and successful, they wanted to drive a car that reflected that. People wanted variety in their cars. They wanted more than just a black car. Armed with this information, Mr. Sloan realized that the Model T, even though it seemed to have an insurmountable market share, was a very venerable car.

Mr. Sloan began to target, segment, and differentiate the car market. He began to brand General Motor cars. In 1923, a group of factors came together at one time which created a good brand for General Motors. The man who led General Motors before Mr. Sloan, Billy Durant left Mr. Sloan in a good position. Mr. Durant was a man ahead of his time. Mr. Durant gave Alfred many assets in confronting Ford. The market was now evolving to GM’s favor. General Motor’s cars now had technology that the average customer wanted. The self starter was developed in 1913. Ford only could start with a hand crank, a very hard and dangerous act. Over the years, Billy Durand bought a lot of different brands, and put them under GM’s umbrella. It times past, they couldn’t compete with the Model T on an individual basis. The market wasn’t ready in 1908. The market had evolved.In 1923,people wanted variety.

The GM lineup had Chevrolet as the entry level vehicle. This was the low cost car to compete with the Model T. People progress through life with better jobs, and better incomes. General Motors’ product lineup, allowed people to reflect that. The next step after Chevy, was the Pontiac, which were for people who weren’t entry level, but were lower-middle class. For people on a career roll, but not truly top level, the Oldsmobile was the choice. For people getting work promotions, there was the Buick. For those who made it, there was the Cadillac.

The strength of Sloan’s strategy is that he had a car for every niche. He had cars of quality. People were now willing and able to pay a little more for quality. Ford had one car for everyone—and this is what killed the Model T. A rich successful man will not buy a Model T. He wants to communicate his success. He will buy a Cadillac and pay extra for the chance to proclaim his life success.

Sloan created a strategy that the Model T had no answer for. Because of an emphasis on quality, GM could compete against Ford, and charge a premium. General Motors could now compete in both the high and low end, and make a lot of money each area. Sloan’s product strategy allowed him to create a brand in each market segment, and still make premium amounts of money. This was all created because Sloan knew how to use the social media of the day.

How to Import Any Product in 7 Simple Steps

So you’re looking into learning how to import to Australia? Importing is a great business to get into and can also be very lucrative so it’s a subject that’s well worth learning about.

If you want to gain a competitive advantage over your competition, importing is definitely the way to go. Through not having to purchase through a local wholesaler (who is importing the products themselves, then adding their mark up) you’ll dramatically increase your profit margins plus have access to a much larger range of products overseas.

Other bonuses include:

  1. Lower product costs in many overseas countries. Due to much cheaper labour costs in many Asian countries, their manufacturing costs are less than for an Australian manufacturer.
  2. Obtaining a premium quality item not available anywhere else in the world – eg. Japan has a good reputation for supplying quality electronics, & Italy makes fine leather handbags.

It’s really not that difficult to start your own profitable importing business. Don’t let a fear of the unknown put you off (like I did at first), just bite the bullet and get started!

Step #1 – Research a Potential Niche

Skip this step, and you risk importing products that you can’t sell! Something I’m sure you don’t want to do. Before you do anything, take the time to research your market to find out things like if there’s enough customer demand for your products & learn who your competition is.

Step #2 – Find A Reputable Supplier

Overseas suppliers can be sourced online or through contacts in local trade organisations. Whatever you do though, make sure you do some background checks on any potential supplier first to make sure they really are who they say! Most overseas companies are genuine, but unfortunately there are some scammers there too.

Step #3 – Are There Any Special Regulations For Your Goods?

Australian Customs do place some restrictions on the importation of certain products into the country. While most general products aren’t restricted it’s a very good idea to check with Customs first. It’s much easier to find out beforehand than once your goods have already landed and Customs have contacted you with a problem!

Step #4 – Arrange For Freight to Australia

The 4 freight methods you can choose from are sea freight, air freight, the postal system or international courier. There are pros and cons for each method so it really just boils down to whatever will work best for your particular shipment.

A reputable international freight company should be able to advise you on what is the most cost efficient freight option for your goods.

Step #5 – Organise Payment For Your Products

If you haven’t already received one, ask for an invoice from your supplier, & organise payment through your bank as soon as you’re ready. Pay for you goods using a secure payment method – not cash in advance.

Step #6 – Customs Clearance

Once your goods arrive in Australia, Customs will require you to fill in an import declaration form so they can clear your products. There’ll also be some stamp duty and taxes to pay before they’ll release your goods to you.

Step #7 – Sell Your Goods For An Impressive Profit & Repeat the Process Again!

Importing may seem to be a very daunting process, but in reality, it’s actually quite simple and you definitely don’t need a big budget to get started (I started with less than $500). With a bit of insider knowledge and some basic research anyone can start importing to Australia, no matter who you are!

Successful Advertising Through Promotional Products

Advertising is the lifeblood of most businesses and plays an integral role in whether or not a corporation will succeed. Each year, millions of dollars are spent on the various avenues of advertising. However, there are cost effective alternatives to pricey ad campaigns. One of these is advertising through promotional devices.

Why Use Promo Products

Advertising through marketing products is a smart move for many reasons. New businesses work hard to stay afloat during the initial few years after opening.

Though some level of advertising is an absolute must, many standard methods of advertising are too expensive in the beginning. Using promo solutions to advertise is a cost effective alternative to standard advertising methods. While a new small business may not have thousands of dollars to spend on television ads, they can make wise use of their advertising dollars through marketing goods.

What Discount Products to Choose

One of the great things about marketing products is that there are so many to choose from. There are entire categories of pieces aimed at people of all age groups, from children to the elderly.

Almost anything can be used as an advertising tool, but the ones that are most effective are generally products that have a practical use in daily life. Pens, magnets, calendars, and mugs are all common tools used to advertise. Better yet, they are merchandise that nearly everyone uses each day, making them a great choice for promo tools. A lot of money can be wasted advertising on solutions that are going to be thrown out right away, such as balloons and plastic bags. Advertising dollars spent on things that last and fulfill a genuine need are likely to be very appreciated by existing and potential customers.

Such gadgets can grow a strong and loyal fan base. A firm wants to turn potential customers into lifelong, return customers. Discount freebies are a great way to do that. Most people appreciate a firm that puts care and thought into producing free gear that are genuinely useful. Combining Forces If the budget allows, a corporate sector can go the extra mile and have the best of both worlds. Utilizing standard methods of advertising along with giving away promotional objects at every opportunity will increase the survival and growth rate for an enterprise.

Promo items used in conjunction with printed advertisements, websites, coupons, television and radio ads will help a venture build a solid reputation in a world full of constant competition and ever changing needs. Building a reputable business fosters relationships with customers that will last for decades.

Should Shoppers Buy Their Health and Beauty Products Online?

The internet has revolutionised the way people shop, the convenience that people have with being able to choose a time suited to them to shop for their essentials has reached a point where many people don’t even consider going to their local high street for their shopping. If those people choose to shop at 3am in the morning that’s fine for the web site, unlike a staffed shop, it never sleeps.

The question is whether buying general products online is fine for all consumers. For people simply browsing for a new item then online shopping can take some getting used to. The casual walk around a shop, passively picking up items, is not an experience that is simple or easy to simulate online. If the site does not completely display the details about the product that the shopper is after then it can be very difficult to find that information out. They will sometimes have to try another site on the off chance that they will have the section of information the consumer requires. In a shop, the customer can just pick up the product and read the manufactures description on the back, perhaps even asking a member of staff for some advice from the health and beauty retailer. This interaction with others is a key difference with online shopping, although some ecommerce sites now try and supply an interactive chat service for people wanting to talk to a real person.

Perhaps it is the thought that their goods will not turn up properly and promptly that stops some from venturing into the exciting world of online shopping. One of the key points to keep in mind is that the shopper should be aware who they are buying products from; if they stay with ‘big brand’ retailers then there is generally nothing to worry about. The payment processes will be secure and the products, for example perfume or aftershave, will be as described. If the user chooses to buy from an unknown source or perhaps even a private individual selling through another site then the goods quality, or even existence, cannot be easily verified.

Consumers seem to be moving online for many parts of their life, the convenience of being able to order a new cooker while travelling on the train, or do the ‘weekly shop’ while sat at their desk during their lunch break is an extremely temping one. But consumers looking for health and beauty products online should know that there are many deals to be had.