1. Little Cesars, the 5 minute pizza.
This North American franchise originally from Michigan, has more than 50 years of history and has revolutionized the pizza business in various parts of the world with an aggressive commitment: “Visit us and get your pizza in less than 5 minutes ". Sounds simple doesn't it? little Caesars has made a different bet than most of its competitors, although Dominos in the nineties revolutionized the market with its delivery of pizzas at home in less than 30 minutes, Little Ceasars is the perfect example of having rethink the business model In an excessively saturated market, when listening to what people asked for: Immediate food, without waiting, when you want. To achieve this the company has done the following:
- They removed: The pizzeria focused on eliminating a large number of ingredients and offering a single hot pepperoni pizza that would be delivered immediately to customers. The company also focused on people going to pick up their pizza themselves if they wanted to have it in 5 minutes, thus eliminating practically all delivery and fuel costs, making the price of pizza even more accessible.
- Reduced: The price of pizza was significantly reduced to less than $ 7, by using economies of scale and at the same time offering a single flagship product, the pepperoni pizza ready to go and in many cases without delivery drivers.
- Increased: By not focusing on home delivery, the pizzeria turned the business model around by having an aggressive commitment to having many small points in the city and growing through franchises, so it could be close to any customer who had the need of a pizza in 5 minutes.
- Created: Little Caesars created the concept of pizzas at a low price with the possibility of having it in less than 5 minutes, if you as a client went for it. This was possible by having the pizzas made before the same customer arrived for them and thus focusing all their demand on their star pepperoni pizza, if you wanted some other you would simply have to wait at the establishment for at least 5 more minutes. That bet has brought overwhelming growth to the franchise and of course, the emergence of many imitators of its business model.
2. Curves, the women's gym.
Another franchise that has had strong growth in recent years is the Curves gym, a space focused solely on women who seek to have a healthy and active life, Curves' commitment has positioned it at the center of gyms focused on women due to to the following innovations in its business model:
- They eliminated: The bet was clear from the beginning, eliminate the presence of men in the gym, hundreds of women who went to mixed gyms expressed their annoyance at being harassed by men while exercising, so the company focused on eliminating the male presence to offer women a space with absolute confidence and comfort.
- They reduced: The size of the gyms and the amount of equipment in any Curves is much less than the amount of space that a traditional gym has, therefore the investment for a new gym, the rent and the monthly price for using the gym will be saw reduced.
- Increased: The curves model increased the search for results and the personalized treatment that a gym has, so that every woman who approached through exercise and a healthy diet could achieve her weight and measurement goals, thus increasing the confidence between the gym with the customer.
- Created: Curves created a revolution by making a totally focused bet for women, also created a teamwork system through which the same women in the gym could support each other and see how others achieved their goals. Curves' business model has made her a role model in her industry and an absolute leader in women's gyms.
3. Groupon.com, great deals in your city.
The last great revolution in online business models has been brought by Groupon, the Chicago-based company founded in late 2008. This company offers great daily deals that in turn is supplied by someone else, so the company only acts as intermediary and purchasing channel of that great discount that is offered during a single day, this company has revolutionized the online shopping markets due to its innovation in the business model, in which it focuses on:
Remove: Groupon innovation focuses on eliminating the traditional way of obtaining new customers as well as eliminating practically all the advertising costs that any company that collaborates with them has, since through their daily offer the companies that collaborate with Groupon obtain a great number of new clients and a great publicity exposure of your brand.
Reduce: The key to the business model is to create a great deal on any product or service at an extremely high price. reduced, here Groupon establishes relationships with the suppliers of the product to make a promotion on their site at a low price, where in the end everyone wins. At the same time, the risk of buying online is reduced since any purchase needs a minimum number of buyers, that is, it is a collective purchase, therefore even if you make the purchase, the charge will not be made if a purchase has not been achieved. minimum quota of customers interested in a product.
Increase: Groupon has managed to increase the flow of customers, advertising and knowledge of businesses that were practically unknown due to the aggressive commitment of its business model, which at the same time has increased the number of offers that are in a large number of cities in different countries . On the other hand, Groupon has increased the advertising exposure and its database via mail by having a large number of affiliates eager to see the daily offer on its site on a daily basis.
Create: The true innovation of Groupon is to create a new online shopping channel for hundreds of products and services in which a win-win-win relationship prevails (triple win), since in the first win the client earn an excellent price for the offer you buy, in the second win the provider from the service he obtains half of the income from the offer, as well as advertising and a new client that he must retain and finally in the third he winsr Groupon gets half of the revenue from the offer by bringing the supplier closer to the customer
4. Fried chicken wings in restaurants or bars.
Spicy fried chicken wings have been a real revolution in various parts of Mexico, just for offering a different snack than usual at an extremely low price, this product usually costs approximately $ 2 per kilogram, but in different bars and restaurants it is sold. It sells ready-to-eat up to $ 10 for a kilo of wings, good deal, right? The key to the innovation of this type of business has been the excellent combination between this spicy snack with the sale of beers at an extremely low price, so without being a nutritious food or a complete meal, any customer can pass by the product and be eating it. either at the establishment or at home in less than 15 minutes. Undoubtedly a true revolution by giving a different use to those forgotten pieces of chicken, which has brought great profits to the main chicken producers in Mexico and at the same time has detonated the restaurant and bar industry by creating multiple competitors with the same product. in various cities.
5. Herbalife, the nutrition clubs a resounding success.
The same Herbalife users have brought one of the most interesting bets in the search for the growth of their business in a developing country such as Mexico with 47.7% of the population mired in poverty (Until 2009 according to the Economist) and being second in the world in adult obesity and first in childhood obesity with more than 52.2 million people with weight problems (Until 2010 according to the Ministry of Health).
With the creation of Herbalife Nutrition Clubs, where an independent distributor of the product helps you lose weight in their establishment, solely by taking Herbalife diet products twice a day for less than $ 6 a day, it has been created a revolution in the food supplement industry, since the nutrition clubs created during 2010 have expanded throughout the country and have made Herbalife in Mexico have net sales during 2010 of $363 million dollars, being already a 24% of the 2010 sales of the industry leader in Mexico, its rival Omnilife.
The achievements with this innovation and this excellent product to bring thousands of obese people closer to achieving a healthier result with their body and at the same time being able to have one of those nutrition clubs in their neighborhood with which they can regularly consume the product and also have their own business, they have achieved that the number of new recruits and distributors of Herbalife has grown exponentially, since before the nutrition clubs in a traditional meeting of recruitment for new people to sell Herbalife products only 2 out of 10 they were really convinced to stay and do the business with the products, while now with the nutritional and economic revolution that has been undertaken, this statistic has increased to 5 out of 10 people, something truly impressive.
Fountain:
http://ciberopolis.com/
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