Why focus on solving problems is a brand’s best winning strategy

Last week electronics brand, LG launched its Dual Cool air conditioner at the IFA Berlin trade show. On the face of it the launch was an ordinary affair in an event where global electronics companies took to the stage to showcase their latest products.

However, when the product’s specifications are factored in, being that it consumes up to 70 per cent less electricity while providing up to 40 per cent faster cooling, a strategic plan begins to appear.

For long air conditioners have been firmly positioned as energy guzzlers, clocking up electricity consumption that puts them in the top league of equipment in energy use.

The world’s power consumption for air conditioning is forecast to surge by a whopping 33-fold by 2100. Needless to say this spells higher power bills for consumers.

The launch comes as the demand for air conditioners continues to grow, driven by the rise of world incomes and the urbanisation of developing countries, with experts predicting that by mid-century people will use more energy for cooling than heating.

That presents a problem, making air conditioning pricey for consumers and expensive for the planet in the long run, which is where LG has seen its new market opportunity.

According to Thomas Oppong, the founder of Alltopstartups, a resource site for starting and growing companies, successful businesses understand that “as long as consumers have problems, they will always search for solutions.”

“People will always look for better, faster and smarter ways to accomplish everyday tasks and fortunately for entrepreneurs, there is still room for improvement in existing products.”

It is this improvement of existing products that drives the majority of innovation in products, an example being mVisa, a product of American multinational financial services corporation Visa , recently launched in the Kenyan market.

The app enables users to make cashless transactions by scanning a unique merchant Quick Response code using their smartphones.

Unlike Safaricom’s M-Pesa, the most popular wireless payment scheme in the country, mVisa is inter-operable, meaning users do not depend on a bank or a mobile operator to make transactions, thus curbing the fraud associated with wireless payments.

“We are very proud that it is inter-operable and not dependent on a bank or a mobile operator,” said Visa Emerging Markets Senior Vice President Uttam Nayak, in an interview with Bloomberg. “It democratises payments.”

Outpacing competitors

For brands looking for an edge in a crowded market or one with a dominant player, solving a problem is often the only winning strategy.

“This is an effective marketing strategy that can prove successful if well executed,” said Odanga Madung, the data science lead at Odipo Dev, an analytics firm.

“Every product seeks to solve a particular problem for consumers. However, if a product is accessible to consumers, it will have a greater market reach compared to others.”

An example of this is Netflix, which has its own consumer ‘solution’. Unlike other streaming media and traditional television, it does not carry advertisements during shows thus allowing viewers to watch shows uninterrupted. Yet, it is the pricing and mode of distribution that has led to its products outpacing competitors in the market.

According to article by business website, Fortune.com titled How Netflix Became Hollywood’s Frenemy, Netflix’s pioneering practice of releasing full seasons of a show to its viewers has trained them to binge and to be increasingly impatient with a once-a-week episodic television and commercial breaks.

Across almost all sectors the evidence is clear that consumers will opt for the products that work best for them, so long as they can access them.

-African Laughter