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How to Sell Something Old and Something New

Loewy had an uncanny sense of how to make things fashionable. He said to sell something novel, make it familiar; and to sell something familiar, make it novelLoewy called his approach “Most Advanced Yet Acceptable” – MAYA


Raymond Loewy is one of the most influential industrial designers / marketers that you’ve probably never heard of.

His firm designed mid-century icons like the Exxon logo, the Lucky Strike pack, the Greyhound bus, as well as Frigidaire ovens and Singer vacuum cleaners. Even the blue nose on Air Force One was his idea.

Loewy had an uncanny sense of how to make things fashionable. He believed that a balance must be struck between two concepts: the curiosity about new things and a fear of anything too new. He said to sell something surprising, make it familiar; and to sell something novel, make it novel. Loewy called his approach “Most Advanced Yet Acceptable” — MAYA.

Loewy wasn’t the only one to embrace this marketing strategy. Alfred Sloan, the CEO of General Motors, saw that changing a car’s style and color every year, trained consumers to crave new versions of the same product. To sell more stuff, American industrialists worked with designers to make new products beautiful and cool.

MAYA doesn’t just apply to new product design

The Power of Habit by Charles Duhigg

In The Power of Habit by Charles Duhigg, he describes how the song “Hey Ya!” by OutKast failed to gain traction with listeners. Hey Ya! was by all measures supposed to be a hit. A company named Polyphonic HMI, formed by artificial intelligence experts and statisticians, created a program called Hit Song Science that analyzed the mathematical characteristics of a song and predicted its popularity. Hit Song Science predicted Norah Jones’s Come Away with Me would be a hit after many industry experts dismissed the album, as well as “Why Don’t You and I” by Santana. Hey Ya! scored one of the highest scored recorded at the time. However, when stations would play it, people would switch stations during the song.

It wasn’t until DJs sandwiched Hey Ya! between two familiar songs, people stopped switching stations. After a few weeks, listeners became familiar with Hey Ya! and it gained the traction that Polyphonic HMI predicted it would.

MAYA Also Works in Reverse

Spotify logo

Inserting a familiar song within unfamiliar songs also works. This was the case for Matt Ogle, who, helped build Spotify’s Discover Weekly, a personalized list of 30 songs delivered every Monday to tens of million of users. The original version of Discover Weekly was supposed to include only songs that users had never listened to before. In its first internal test at Spotify, a bug in the algorithm included songs that users had already heard.

However, after Ogle’s team fixed the bug, engagement with the playlist actually fell. It turned out that having a bit of familiarity bred trust. According to Ogle, “If we make a new playlist for you and there’s not a single thing for you to hook onto or recognize—to go, ‘Oh yeah, that’s a good call!’—it’s completely intimidating and people don’t engage.” It turned out that the original bug was an essential feature: Discover Weekly was a more appealing product when it had even one familiar band or song.

MAYA is Everywhere but Comes in Steps

Notice the new hard seltzer craze? It’s everywhere. White Claw, Wild Basin, Truly, even Bud Light has gotten into the game.

Zima was too big of a step for consumers that needed something familiar first before making the jump to hard seltzer. 
Your Startup Guru
Zima was too big of a step for consumers that needed something familiar first before making the jump to hard seltzer.

But before the bevy of new beverages Zima was the novel beverage about town. Introduced in 1993, Zima is a clear, lightly carbonated alcoholic beverage marketed as an alternative to beer, or coolers as they were called at the time. However, if the ill-fated Zima is any indication, hard seltzer was a jump the market wasn’t quite ready to handle. It had to take something familiar…namely, a subtly flavored, non-alcoholic beverage whose popularity took everyone by surprise: La Croix.

With the popularity of La Croix, the jump to hard seltzer was smaller to a more familiar product.
Your Startup Guru
With the popularity of La Croix, the jump to hard seltzer was smaller to a more familiar product.

Although the exact formulation between sparkling malt beverages and hard seltzers may be different, the taste profile and market demographics are similar enough that if Zima came about 15 years later, it may have found greater success than it did.

Your Startup Guru provides in depth industry and market research as part of our Strategy Consulting services. Use the contact form here to start developing the best strategy for your business.

Keep going

If you're going through hell keep going.  Winston Churchill.  Your Startup Guru

Things are quite difficult right now. When things are difficult it is best to keep going. As British Prime Minister, Winston Churchill once said at a time when Germany had a strong grip on Europe during World War II, “If you’re going through hell, keep going.”

Relevant words during these tumultuous times.

May sees jobs increase of 2.5 million

Courtesy of MarketWatch

Employment rose by 2.5 million in May and the jobless rate declined to 13.3%, according to data Friday from the Labor Department that was better than economists had been expecting and indicated that an economic turnaround could be close at hand.

Key takeaways:

  • Non-farm payrolls rose by 2.5 million in May and the unemployment rate fell to 13.3%.
  • Wall Street estimates had been for a decline of 8.3 million and a jobless level of 19.5%, which would have been the worst since the Great Depression era.
  • Much of the gain came from those classified as temporary layoffs due to the coronavirus-related economic shutdown.
  • Leisure and hospitality represented almost half the jobs gained.

The country is not out of the clear yet, especially with a possible second wave expected, but this is some positive (even if temporary) news.

Adjusting to the new normal by pivoting

In changing times, you have to adapt to the new normal in order to survive. Your Startup Guru

Pivoting in Business

I just got off a call with a client to discuss a brilliant pivot for the business he purchased using a business plan I created for him last year.  The pivot was an adaptation to the new normal and to mitigate the losses from the delayed renovation and opening caused by COVID-19.  A pivot usually occurs when a company makes a major change to their business after determining that their product/service isn’t meeting the needs of their intended market.

How to Pivot

This call reminded me of some other recent examples of businesses changing their operations to survive and sometimes thrive in the COVID-19 economy:

  • You might have heard of the now-famous Goat-2-Meeting.  That is the creation of Sweet Farm Foundation, a non-profit animal sanctuary in Northern California that is offering videos of their animals to be used for Zoom meeting backgrounds.  Due to the popularity of their service, sales are slightly higher than this time last year.
  • Lumen Couture makes wearables, which are fashion items that embed electronics and technology into stuff you can wear.  They design fancy, red-carpet-type gowns that shimmer and sparkle when you’re walking for very high-end events and ceremonies.  Because events and ceremonies are now on hold, they shifted most of their business to making masks, which people do want now. They designed a black mask that has a screen across the front almost like a scoreboard, saying things like, “six feet away.”
  • Golem Bookshop, an independent bookstore in Turin, Italy started free deliveries by bicycle in Turin in response to a shutdown order in March and began offering curated selections of books – themes like revolution, obscure authors you’ll love, indie books.  Customers loved the selections so much they started shipping orders all over Italy.  Normally Golem sells about $7,000 worth of books per month but in April, they sold almost $20,000 worth of books; it was actually their best month ever.

In times of crisis, coming up with a profit or even surpassing last year’s sales is ideal but anything to mitigate the cash hemorrhage is fine.  To pivot, for example, a business might have to change its revenue model which means potentially canceling contracts with existing vendors.  This is one of many crucial decisions that the business has to make because once the pandemic passes and the current new normal makes way for the new-new normal, it may be difficult to get supplies in time and at the original pricing.

Each business is different and solutions are not one-size-fits-all.  Contact us and let’s figure out what the best steps your business should take to adapt to the new normal.

SBA EIDL Application

The Emergency Economic Injury Disaster Loan (EIDL) application from the Small Business Administration is fairly straightforward.

If you need assistance in filling it out, please contact me today as funds are limited and applications are coming in quickly.

4/16/2020 UPDATE: A loan officer from the SBA called me today to let me know that they will send an email with a .gov link (https://covid19relief.sba.gov/#/ do NOT click on any other URL extensions as there are many scams out there). Once I clicked on that, I resubmitted the same application which then takes me to the approval process.

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Preparing for 2020 - Your Startup Guru

Adaptability is the most powerful trait

You have probably noticed the deluge of advertising that is targeted to the new reality of being at home. This is obviously a response to the global pandemic we are all being affected by. The following is a breakdown of what is happening and how your business can harness the post powerful trait: adaptability.

Adapt Through Marketing Strategy Marketing

Aired prior to the COVID-19 crisis but replayed recently Campbell’s realized that people are stockpiling canned food. Set to a wholesome and nostalgic soundtrack without pandering to panic buying, they capitalized on an opportunity to remind customers of a classic pairing. On a side note, the music choice was oddly relevant — Thank You For Being a Friend was the theme song to the ’80s sitcom The Golden Girls and the elderly are among the most vulnerable to COVID-19.

Also, more people are telecommuting and are realizing their home computers might not be suitable for work so Dell aired a commercial for one of their newest laptops. Peloton, home office chairs, etc. are all advertising the benefits of being healthy and productive at home. Also, mental health app Talkspace, Delta Airlines offering free flights for medical volunteers, online education, bidets, and more are using this opportunity to advertise their products and services.

Adapt by Seizing the Opportunity

Adaptability Charles Darwin - Your Startup Guru
Attribution-NoDerivs 2.0 Generic (CC BY-ND 2.0)

When disruptions happen, it is important to consider alternatives in order to adapt to the new environment. I have advised a new restaurant client to pivot their business model from a brick and mortar location to a commercial kitchen or food truck and adjusted their ad hoc financial projection model to reflect the pivot. Of course, depending on the stage of a business pivoting to a commercial kitchen or truck is not an option; which is why I always provide tailored consultations to each client.

Many people have a lot of downtime now with not having to go into work. It is a good time to take a break from watching the news and start mapping out the idea that you’ve been mulling. Who is your target market? Where will you be located? What are your startup costs? These are all questions you should know the answers to or be actively seeking if you are serious about taking the next step. If you do not know the answers or want a second opinion on, I always provide free consultation so send me an email. Afterwards, those pushup challenges on social media are also a good healthy distraction too from all the dire news.

These are better practices than gouging prices like that hand sanitizer guy.

sanitizer price gouging guy

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