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Showing content with the highest reputation on 07/19/2022 in all areas

  1. 1 point
    A Mafia Offer is the offer that solves market’s core problem/s such that it makes it unmatchable by its competitors in the foreseeable future. Customer desire and drools over such offer and prefer over others as it addresses their core issues, such as desire or requirement for immediate delivery of product or service, return of products without any questions asked, etc, where competition don’t have the capabilities to deliver the same in current market, at least for a very significant time period in coming future. These are usually very tough to crack and pose a high risk of failing to achieve the stage where they can make such offer to market. Also, usually requires challenging the constraints prevalent in the industry, and thus needs overhauling the Ongoing operational processes. USPs on the other hand, like CVP (Customer Value Proposition), is aimed at Outing performing its competition by providing certain features of its product, service, or way of delivery better than others. These are mostly achieved by improvement in operations or technology. Thus, clearly USP is different from Mafia offer on aspects covered below: 1. Mafia offer is aimed at solving the customers’ core issues, while USP is aimed at only providing current service/product better than others. 2. Mafia offer, mostly, requires major overhauling of current way of working, while USP is achieved by improvements in current way of working. Mafia offer potentially will create new discoveries and patents in the process of coming up with new combination. 3. Mafia offer is comparatively more time consuming, capital intensive and risky method. 4. Mafia offer could potentially create, seemingly, Monopolies for the foreseeable future. While USPs give a competitive edge which could be surpassed by competition relatively easily. 5. Mafia offer, make industry monopolies like: a. Dominoes in pizza delivery when they introduced 30 minutes or free offer b. Hyundai in cars, when they offered to buy back within 2 years if customer loses the job in certain markets (during Covid period). c. Amazon in product delivery, when they offered no question asked return policy. d. Tesla, when they offered the electric car, with battery efficiency far above the competition, with their innovative battery making processes.
  2. 1 point
    In order to fully understand the concept of Mafia Offer, it is first very important to first understand Unique Selling Proposition or USP & what are its limitations which makes Mafia Offer the go to strategy these days. USP is a marketing concept which allows a company to differentiate its products or services from the products & services of similar nature of its competitors. USP’s are generally short term statements of differentiation or positioning. Some of the common examples are:- Dominos Pizza : “You get fresh, hot pizza delivered to your doorstep within 30 minutes”. FedEx : “When your package absolutely, positively has to be there overnight”. Thus USP is that distinct & appealing idea that sets a company favourably apart from its competitors. The statements examples shared above summarizes why a consumer should buy a product or a service & it convinces a potential consumer that a particular product or service will add more value than other similar offerings. While USP are good in expressing the value proposition of a product or service to a potential customer but they sound more like a list of attributes or things that are totally subjective. In most of the cases the statements are copied by the competition very quickly & also even though these statements are good but they are not specific like for eg: Increased revenue & decreased costs are good to say but there is no mention by how much & what if a company doesn’t get the results that it brags about. The risk is still on the consumer whether they are ready to take the risk to take your word for it. In order to really differentiate what a company can offer, a good USP is accompanied with a market offer which is unrefusable & is known as Mafia Offer. Mafia Offer is an offer which is so good that your consumers cannot refuse & your competition can't or won’t match. It makes use of the fact that many business have constraints with the outside world as well in conjunction to a business’s internal constraints & the mafia offer capitalizes on this fact by managing this constraint & thus creating demand. A Mafia Offer is the key to exploring a market or sales constraint & it typically requires a company to do something different particularly (in terms of operational changes so as to make a decisive competitive edge)in order to actually deliver something which is delightful to the consumers & not matched by the competition. With mafia offers most companies offer solutions that solve their customer’s core problems. It is basically built on three key aspects:- What are the internal capabilities of a company compared to its competitors. How competitors are selling their products & services. How the customers of a company are affected by its current capabilities & how a company sells. Some of the common examples of a mafia offer are:- Hyundai : "We will buy back your car if you get laid off during the next two years" - this was made during the recession period. Xerox : “We offer copies when & where you need them & at a fixed rate per page” - this came when competitors were selling expensive machines & providing inconvenient servicing. Thus a mafia offer is a sustainable market offer which is built on its advantage & is not merely a tagline as the case with USP.
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