Billionaire's School: it's hard to be the first
The founders of Smeat share why it is impossible to blindly copy Western business ideas.
Can you copy a business idea from the west and implement it in another country? Of course, you can. Most of the newly emerging projects follow exactly this path, inspired by the example of Oscar Hartmann. His main ideology is copying projects from Western markets. Often, the fabulous brilliance of successful entrepreneurs overshadows the vision of the young and daring. As a result, rushing to newfangled phrases - "lean start up", "agile" and so on - ignoring such commonplace things as market analysis and hypothesis testing. And Smeat founders stepped on these rakes. In addition, their ambitious enterprise unexpectedly faced the total hegemony of "His Majesty - Marketing".
The founders saw the idea in the US, where in the early 2000s the market for jerky (dried and dried meat), amounting to $2 billion, stagnated. Four manufacturers, not any different in their marketing efforts, controlled a share of 85% and fully covered the Americans' needs for the product - a developed, serious market with an established culture of consumption. It seemed that enough passive players could interfere with the dimensional existence. And then, in 2011, a young company appeared - Krave Jerky, who managed to differentiate from competitors due to a combination of three main advantages:
The company positioned jerky snacks as healthy and useful. Running marathons in the US at that time were at the peak of their popularity, and Krave Jerky skillfully used this trend. For example, the main brand ambassador of the company was the winner of the Boston Marathon and the silver medalist of the Olympic Games.
The company emphasized the use of 100% natural ingredients and high-quality raw materials instead of chemical additives and low-grade meat.
The third advantage was the range. Instead of a boring set of flavors, salt/pepper or "with smoke," the company has released a whole line of various flavors, such as chili-lime or sweet chipotle. As a result, for several years the company increased its revenue to $ 35 million and was sold for $ 250 million to the confectionery giant Hershey.
Inspired by such a stunning success and enchanting M&A deal, founders of Smeat fell in love with the idea of creating a similar company in Russia. Of course, having read many reports of respected consulting agencies, they collected some data on the market: volumes, growth rates, key players and so on. Time has shown that the investment banking approach of "top-down" analysis does not quite work for entrepreneurs. When creating the Smeat brand, they did not take into account some important features of both the Russian market in general and the specific category of snacks from meat.
At the very beginning of the journey, by analogy with Krave Jerky, they decided to promote the product as an ideal snack for athletes. And although Smeat, thanks to the high protein content and natural ingredients, could be so positioned, the audience absolutely did not take the product. The fact is that dried or jerky has a strong reputation for snacks for beer. As a result, the consumer has a dissonance - how can you call it useful that everyone is used to drinking beer? They did not take into account this cultural specificity.
The next omission is connected to their competitors - large meat-processing enterprises that produce different types of dried/dried meat exclusively for "assortment" or to provide a higher capacity load. Few of them conduct active marketing campaigns or participate in brand promotion in any way. As a result - a fairly low turnover in comparison with other goods in a similar category. Because of this, this group of meat was not taken seriously, adding it to "the assortment." Sales of Smeat to one SKU are several times higher than those of competitors, however, they had to constantly struggle with low interest, proving to partners that it is possible to earn good money on the product.
A consequence of the previous problem is the relative underdevelopment of the Russian market of meat snacks, because of this retailers do not separately distinguish this category in their product matrix. "And where should I put you?" - the first question that they heard from representatives of outlets. There are groups of crackers, potato chips and fish snacks for beer (squid and stuff). Naturally, they did not want to get up in any of these categories for two reasons: association with beer and price competition is not in they favor - Smeat is more expensive than any product from these groups. At first, they were positioned in places they wanted the least, however, as a mentor on the Forbes billionaire School project, Vladimir Gurdus said - "What's the difference, where and why do they buy?" The main thing is to buy! ".
Such is the "market heritage", but because of all complexities you get a deep understanding of the industry. This knowledge allows to correctly build a competitive advantage for any company. Probably, Krave Jerky also faced various difficulties - we see only the tip of the iceberg, colorfully described in the media. And by the way, Oscar Hartmann always says that any copied business models need to be adapted to the national peculiarities of the market. Experienced entrepreneurs do this in advance, and young and bold - by trial and error.
You may also be interested in:
CrowdholdingCrowdholding connects the crowd with entrepreneurs, allowing you to give feedback and ideas for a future share.
Top 5 reasons to get YUPs! (Get dividends for holding YUPs)
Crowdholding April Update
Implementing Crowdholding widget to your website
ITF excelled with Crowd Wisdom
TailoredInk ICO Community Management
IronX ICO Social Media Marketing
Aerum ICO Influencer Marketing
Jarvis built with the crowd
ySign engaged the blockchain crowd
6 Ways to Earn Crypto For Free
Common Mistakes When Investing in ICOs
Connectjob joins Crowdholding
Week in a Nutshell & Smart Contract
Opporty joins Crowdholding
Getting to Know our Users
SmartCash joins Crowdholding
Bitcoen.io joins Crowdholding
What is a Smart Contract?
How to Create an ICO - Part 3 - Marketing
How to Create an ICO - Part 2 - The Two "W's"
How to create an ICO - Part 1 - The building blocks
Invest Time, Not Money
What alternatives are there to financing your business?
What is an ICO? And should you invest?
Blockchain technology : changing the world of business silently
Crowdholding’s Pre-Sale — A Case Study
How to become a Crowdholding supporter: Part 3 exchanging ETH for YUPIES
China ban on ICO’s : Not all Doom and Gloom?
How to become a Crowdholding supporter: Part 2 Buy some Ether (ETH) on Coinbase
How to create a task on Crowdholding
How to become a Crowdholding supporter: Part 1 creating a Ethereum wallet on MyEtherWallet.com
How to create a project on Crowdholding
Cryptocurrencies and their value
What is Crowdholding?
What is a White Paper? And do you need one?
What can CEO’s / Entrepreneurs learn from athletes?
How to start my own business? Part 3. Validating Your Business Idea
Top 10 career mistakes to avoid
6 Benefits of a Sharing Economy
How to start my own business? Part 2. Factory for ideas
Startup Promotion and Content Marketing Strategy
How to start my own business? Part 1. Five simple rules
The Year Capitalism could have Changed
Robots & Work: Jack Ma Predicted The Emergence of Robot-CEO
Startup Psychology: Why Entrepreneurs will save the planet?
Billionaire's School: it's hard to be the first
10 interesting sport startups that will rule 2017
30 reasons to be an online entrepreneur
How to chose a dating site?
You should know this striking marketing trend
10 reasons to join Crowdholding if you are a student
How did 67,000 people create the first crowdsourced melody?
Launch a startup with a partner, never alone.
Collaboration solves education problems with flying colors!
Hollywood movie from your smartphone?
Design your room the way you want it!
Hi, Your business is now a unicorn!
Hi, You're Hired!
Don't want to change the world for the better? You can stop reading now.
Sharing Economy is not a niche, it's the future
📊 What if karma was 🆚 worth something? 🤜🤛
Raise capital, preserve equity
5 marketing strategies for successful contact with Millennials
Why 75% of new products are doomed to fail?
Small Business Staffing Opportunities
What are Crowd Currencies?
Mass Collaboration leads to unprecedented innovation
Alternative Finance: Equity vs Crowdshare Crowdfunding
Co-creation between the crowd and small businesses
THE RELATIONSHIP BETWEEN IT AND CO CREATION
Corruption on Wall Street: The Stolen American Dream
To own or to rent, trends in sharing economics
CROWDSOURCING IN FASHION
Crowdsourcing a girlfriend
CrowdSourcing Trends 2020
Peer-to-peer journalism: What and how?
Peer-to-peer in the fashion industry
The Peer-To-Peer Marketplace Revolution
The relationship between Co-creation and Innovation
CROWDFUNDING AND VIDEOGAMES
NON-EQUITY CROWDFUNDING CHANGING FASHION BUSINESS
Revenue-sharing vs Reward-based crowdfunding
Blockchain application in Media industry
Blockchain Technology & Crowdfunding
Creative marketing through Crowdsourced Content
JOBS OF THE FUTURE
Alternative finance for small businesses
WHY CO-CREATE? – A message to the Crowd
Think Tanks and Benefits
Empowering Global Citizens to Improve Education
THE EVIL WALL STREET
Co-creation in Tech
Co-creation and Innovation
WHY CO-CREATE? - Benefits for Small Businesses
Co-creation in the Fashion Industry
Crowdholding vs Wallstreet
Make a brand your brand
The way you earn rewards has changed!
The task has changed to a new rewarding structure. Please read the following rules:
Voters get 35% of the reward
Commenters still receive the majority of 65% of the reward weight, while voters 35%.
You receive only 12 upvotes and must vote what you think are the best answers
You now have a limited amount of upvotes. You won’t see the other user votes until the task expires. If you vote the top half comments you will receive a portion of the 35%.
Top 50% upvoted comments get bigger share
Our algorithm gives top 50% upvoted comments more rewards than the bottom 50% comments.
Give me an example with numbers
Upvoters get 35 % of the reward.
65 % goes to the commentors.
Half of the reward is gained from bottom 1/2.
Upvoters get nothing
1/2 of the reward pool for this segmentis distributed among top 1/2
There is a task with 1000 Reward.
Let’s assume Top 1/2 recevies 70% of all upvotes.
Bottom gets 30 %. But because half of the reward goes to Top 1/2 that makes the final numbers more like Top 1/2 gets 85% (55.25% for commentors, 29,75% for upvoters) and bottom gets 15 % of the final reward.
If there’s 100 upvotes:
1 upvote that upvotes a comment in Top is worth around 12 Yups (circa 8 goes to commentor, 4 goes to upvoter)
1 upvote that upvotes a comment in Bottom is worth 5 (All goes to commentor).
Reminder about our Moderation
If you upvote a comment that’s reported as Spam or comment that should not be rewarded (eg. “Good job” comments) you will lose your right to be rewarded for this task.
We hope you like this new system and it brings you lots of fruitful discussions and reward you fairly.
Do you still have questions? Read more detailed explanation at our helpdesk
All the best,
Your Crowdholding Team