Masterclass: Build Your Tribe
Summary
TLDRThe video script delves into the concept of building a loyal customer base through exclusivity and community, using luxury car brands like Ferrari and Lamborghini as examples. It emphasizes the importance of creating a 'tribe' around a brand, where customers are not just buyers but promoters and protectors of the brand's value. The speaker advises understanding the buying patterns and behaviors of your target market to ensure repeat business and long-term success, highlighting the pitfalls of being a 'middle-of-the-road' product and the benefits of positioning at the extremes of the market—either as a premium brand or a discount leader.
Takeaways
- 🏎️ Luxury car brands like Lamborghini and Ferrari create a sense of exclusivity by requiring customers to own a certain type of car before being invited to purchase others.
- 💼 Building a business to foster repeat business is essential for scaling and maintaining customer loyalty.
- 🛒 The concept of removing prices from products can create intrigue and exclusivity, attracting customers who understand and value the product without needing to know the cost upfront.
- 🔊 Car manufacturers like Lamborghini design their vehicles to have distinct sounds to attract attention and create a memorable brand experience.
- 🚗 Ferrari's V12 configuration places the engine in the middle of the car, creating a unique driving experience and a recognizable brand feature.
- 🚫 Limited edition releases by car manufacturers are a strategy to create exclusivity and drive repeat purchases among existing customers.
- 💎 Naming new products with unique and aspirational names can add to their appeal and create a sense of prestige and desirability.
- 👥 Building a community or 'tribe' around a brand helps to create a loyal customer base that will support and promote the brand.
- 🤝 A tribe, in the context of business, is a group of customers who share the same beliefs and values, and are invested in the brand's success.
- 🏷️ When building a tribe, the brand's community takes ownership of the brand identity, and their input becomes crucial for product and market strategy.
- 💰 Members of a successful tribe are willing to pay the full value for a product, indicating their understanding and appreciation of its worth.
Q & A
What is the prerequisite for being invited to own a certain type of Lamborghini or Ferrari?
-To be invited to own a certain type of Lamborghini or Ferrari, one typically needs to have owned a specific type of car from their lineup before, which is part of building a repeat business.
Why would a company remove the price from a product on the shelf?
-A company might remove the price from a product on the shelf to create a sense of exclusivity and to appeal to customers who understand the value of the product and are not concerned about the price.
What does the speaker imply about the sound of different sports car brands?
-The speaker implies that each sports car brand has a distinct sound that is part of its identity, such as the high-pitched tenor sound of Ferraris and the high wailing sound of Lamborghinis.
What is the significance of having the engine in the middle of a Ferrari V12 car?
-The mid-engine configuration of a Ferrari V12 places the engine behind the driver, allowing for better weight distribution and handling. It also enables the engine to be displayed under a glass cover, showcasing it to onlookers.
How does Ferrari create opportunities for repeat customers?
-Ferrari creates opportunities for repeat customers by releasing limited editions of their cars and making ownership of these exclusive models contingent on owning previous editions.
What does the speaker suggest is the best way to build a business?
-The speaker suggests that the best way to build a business is to focus on creating repeat business by offering exclusive products and building a community around the brand.
What is the importance of building a 'tribe' around a brand according to the speaker?
-Building a 'tribe' around a brand is important because it creates a community that shares the same beliefs and values, which can lead to repeat sales and strong brand loyalty.
Why did Gap change their logo back after initially changing it?
-Gap changed their logo back because their tribe, or loyal customer base, expressed strong dislike for the new logo, demonstrating the power of the community in defining a brand's identity.
What are the three rules for building a tribe according to the speaker?
-The three rules for building a tribe are: 1) Once you build a tribe, the tribe owns the brand, not you. 2) Tribes have a demonstrable track record of repeat sales. 3) Members of the tribe are always willing to pay for the value of the product immediately.
Why do some property sites not show the price of the properties they list?
-Some property sites do not show the price because they are marketing to a clientele that understands the value of the property and does not need the price to be stated, indicating exclusivity and the assumption that the buyer can afford it.
What does the speaker suggest is the worst place to be in the marketplace?
-The speaker suggests that the worst place to be in the marketplace is the middle layer, where products are sold based on utility and price, as there is always someone cheaper, leading to a focus on price rather than brand or community.
Outlines
🏎️ Exclusivity in Luxury Car Brands
The paragraph discusses the strategy of luxury car brands like Lamborghini and Ferrari, emphasizing the exclusivity and the need for customers to own a certain type of car before being invited to purchase a more exclusive model. It also touches on the importance of building a business that fosters repeat customers to scale. The paragraph uses the example of Lamborghini's STO model, a rare racing version, to illustrate the concept of creating a desire for exclusive products and making customers go through a process to own them.
🔄 Building Repeat Business and Brand Loyalty
This paragraph delves into the concept of repeat business, suggesting that businesses should aim to bring customers back by offering new and exclusive products. It uses the example of Rolex and its Oyster Perpetual line to illustrate how brands can create layers of products to upsell customers. The speaker also talks about the importance of building a community or 'tribe' around a brand, which can lead to brand loyalty and long-term customer relationships.
🏠 Marketing Strategies and the Psychology of Pricing
The speaker explores the idea of marketing high-end products without disclosing the price, using the example of luxury property sites that show properties without prices. This strategy is meant to attract customers who understand the value of exclusivity and are not concerned with the cost. The paragraph also discusses the importance of understanding the buying patterns of one's 'tribe' and how to cater to their preferences, emphasizing that building a tribe around a product can lead to a sustainable business.
🛍️ Positioning in the Market and the Importance of Branding
The final paragraph focuses on the importance of positioning in the market, warning against being stuck in the middle where competition is fierce and differentiation is difficult. It contrasts the top of the pyramid, where quality and branding matter, with the bottom, where utility and price are the main concerns. The speaker advises that selling to those who value quality or are willing to pay a premium is a more sustainable strategy than competing on price alone.
Mindmap
Keywords
💡Lamborghini
💡Repeat Business
💡Exclusivity
💡Product Strategy
💡V12 Configuration
💡Tribe
💡Bespoke
💡Market Adjacencies
💡Utility
💡Masterclass
Highlights
Lamborghini and Ferrari have an exclusivity model where owning a certain type of car is prerequisite for being invited to own a new model.
Building repeat business is essential for scaling a business.
Removing the price tag from products can create intrigue and exclusivity.
Lamborghini's new 'Halo' model, the STO, is a super-rare racing version.
Ferrari's brand identity is associated with speed, the color red, and a distinctive engine sound.
Aston Martins and Jaguars are known for their amazing sound despite their performance.
Lamborghinis are designed to be loud and attention-grabbing.
Ferrari's V12 configuration features a mid-engine design, enhancing exclusivity.
Ferrari and Lamborghini use limited editions to create a sense of exclusivity and repeat purchase.
Creating a community around a brand helps in building repeat business.
Rolex is known for its Oyster Perpetual model, which serves as an entry point to a range of products.
Tribes, or communities, share belief systems and behaviors, which can be leveraged for business success.
Building a tribe means giving up brand ownership to the community.
Tribes have a track record of repeat sales and are willing to pay for the value of the product.
Not showing the price of a product can signify its exclusivity and the buyer's understanding of its value.
Understanding your tribe's buying patterns and market adjacencies is fundamental for business success.
The middle layer of the market sandwich is the worst place to be due to constant competition on price.
Selling to premium buyers or discount seekers is safer than competing in the middle market.
VT masterclass has reached over 5 million unique entrepreneurs worldwide.
Transcripts
so you know what they do Lamborghini is
similar to Ferrari there's a certain
type of car you need to have before you
get invited to have that same certain
type of car
you build a business to build repeat
business
it's the only way you can scale your
business
why would I put a product on the shelf
and remove the price
what would you do if you went to a
retailer that had all these products are
not prices on them
[Music]
[Music]
and now they've released a new one which
is like a Halo Halo one
for the hurricane they release something
called the sto
so they had the hurricane Evo then the
hurricane performante which I drove let
me tell you
I left the seat of the car smelling of
feces is how fast this thing is
some of you will get that joke later and
then they release the sto which is like
a super a super rare racing version
so you know what they do Lamborghinis
similar to Ferrari there's a certain
type of car you need to have before you
get invited to have that same certain
type of car
yeah so
the ladies are looking at me like what
are we talking about
where is this going
I'm trying to explain the ideas
so Ferrari has the the the the the
um the Ferrari that people think of the
most when you think of Ferrari what do
you really think about is two things
three first you think speed sports car
second you think red
and third you think of that sound oh
it's like that really high-pitched tenor
sound right
um the amgs have a lot more baritone
different type of sound
the best landing car in my opinion
always Aston Martins and jaguars always
they go nowhere but they sound amazing
right and then the Lamborghini has that
really high wailing oh
oh so they'll make they'll make the car
to rev High not because it can't revlow
but because you don't buy a Lamborghini
to drive quietly
you want and you want people to turn and
look at you that's why they'll make it
sound like this right
so Ferrari on the V12 configuration
the v12 by the way is always mid-engined
which for those of us means that the
engine is in the middle of the car
front wheel back wheel engine is in the
middle driver just in front of the
engine that's why it only sees two
people
right so it's two of us the engine is
behind us and they'll cover the engine
always with a with glass
so when you walk behind the car you can
actually see the engine
right
this is important and I'll tell you why
so the V12 could in the V8 configuration
they'll have the base product four five
eight four eight eight now the f8
tributo right
then they will always release a limited
edition
four five eights they had the specially
488 they had the Pista the only way you
get invited to even owning one is if
you've owned one before
so that means even for your current
customers you create an opportunity for
them to buy a new product by making it
exclusive for them to own that product
so I know you've bought X number of this
but you know what we've just done we've
just released this this oh my God to get
this you need to go through this first
like you can't just get this you can't
just get this it's great
you want to get this definitely got to
go through this first when you go
through this and you've owned two or
three of this then we'll consider to put
you on the list for this new one ah and
then this new one oh man you give it a
name like black platinum diamond gold
give it a nice cool name give it a range
and give the customer something to
Aspire for what that allows you to do
and the reason I'm telling you this is
so that a one-time customer becomes a
multi-time customer
so they don't just buy one thing and
walk away
I'm losing you guys let me find another
example at this uh timepieces
timepieces
right Rolex great brand which Rolex do
you know of which type of Rolex
say again
yes what other one
what's the one that everybody knows off
the most
this is the part where you go on your
phone and you Google so that you can say
something
it's the Oyster Perpetual
the perpetual motion the Oyster
Perpetual
but the Oyster Perpetual is probably the
entry point
once you're in there's so many layers of
different product that they start to
Market to you and start to sell to you
right
so we had the the conversation about two
days ago
and somebody was talking about something
and I asked the question how many
customers do you have
and how many customers are you selling
to again
you build a business to build repeat
business
it's the only way you can scale your
business
so yeah you want to bring your customers
into the door fundamental
once they're in the door give them a new
product to buy give them an opportunity
to buy something exclusive
build a community around your brand
is looking at me funny which lets me
know it's time for me to wrap up in fact
I think it was time for me to wrap up an
hour ago
I'll leave you guys with one final word
the most important input for the success
of any business
this
what do tribes do
tribes have the same belief systems
they move in the same way
and they act in the same way
that's why we're a tribe
and so if I can leave you with any piece
of advice is for whatever you're
building build a tribe around it
a tribe
so what that means is you create a
community that looks and behaves the
same
and you only market and talk to that
community
the community will do the rest for you
so let's talk Anne
Anne is going to be doing
um Timeless Furniture right that's what
you're going to be doing Anne's going to
be doing Timeless furniture
bespoke
high value
rare
so what that what Anne me what Anne
really needs is to move in particular
circles
of people who do what have demonstrated
in the past that they understand the
value of bespoke timeless
and rare
and when you find those people
and you give them an opportunity to own
your product
what you want for them to do
is to join your tribe
and be the owners and promoters of your
product
tribe
so if you are going to build a tribe
there are three rules and I want to
leave you with this
the first rule of building a tribe is
that the minute you build a tribe around
your business you no longer own your
brand
the tribe does
a tribe does
Gap the gene company
I don't know if you guys remember what
Gap did three or four years ago they
changed the logo do you remember the
story
Gap change the logo they changed it back
why because the Gap tribe said we hate
this new logo hello family the VT
masterclass has now reached over 5
million unique entrepreneurs all across
the world if you'd like to book me for
one make sure that you hit the link
below cheers
so when you build a tribe around a
product the tribe owns your brand you
don't
so you've got to give them real
ownership which means you've got to let
them advise you on product strategy
on market growth strategy you've got to
let the tribe tell you
the second thing that tribes do
is tribes have a demonstrable track
record
of more than one product
so it doesn't follow that because you've
bought my water you're now in My Tribe
it follows that you've bought my water
once then twice then three times then
recommended it to someone and even
bought it for the person when they
didn't
now you're in my tribe
demonstrable track record of repeat
sales
you okay
and the third thing about tribe
tribe is always willing to pay for the
value of the product
immediately means if somebody comes in
and asks for a discount
they don't understand the value of being
in that tribe
they don't
there's um
I hate using um
let me use property as an example
there's a property site
several I love property but there's
several property sites
in South Africa there's about two that
are found in the Middle East
where they will show the property they
don't show the price
why is this
say again
maybe affordability exclusivity why
would I show a product and not show you
the price yes sir
absolutely that's also true but I'm
showing you the product
deliberately which let's think about
this logically I am marketing my product
to you without telling you what the cost
of this product is
say again
Terrell's interest yes you're there but
you're not there there's an answer
there's something I'm looking for let's
think about this differently differently
rule number one of merchandising is what
a product on the shelf and put a price
why would I put a product on the shelf
and remove the price
what would you do if you went to a
retailer that all these products are not
prices on them
yes ma'am
creating a call yes you're right but
there's something there there's
something yes ma'am
exactly
you don't put the price there because
the person who understands the value of
it doesn't care about the price
so why put the price there
the price is not on the product if you
have to ask me
what was it was it it was before he
slept Chris Rock Will Smith said
he did say This Will Smith said if you
have to ask the price of something
you can't afford it
so that's why they don't put the price
there
they're assuming that if you are going
to buy that Penthouse at that particular
building in Downtown Dubai
you're not asking if this thing is worth
five million or 15 million dollars
whatever it's worth you have it
so we're not putting the price there
now I say this because for those Brands
they've built a particular tribe and
they understand how that tribe behaves
you need to understand how your tribe
behaves this is fundamental understand
how your tribe behaves they're buying
patterns understand product adjacency so
sometimes your tribe will buy a product
and you can see by the product they buy
that they are potential buyers of your
product so I'm Rolls-Royce I know the
people that buy private jets generally
want to arrive at the hangar in the
Rolls Royce
understand those Market adjacencies if
you build a tribe around your product
you you will never be out of business
you'll have to work very very hard to
destroy your business because your tribe
constantly will protect you
okay
[Music]
luncheon
Leilani one last thing yeah
um
the worst place to be in the sandwich
is the layer of meat in the middle
so
the worst place to be
in the sandwich
that is the marketplace
is the layer in the middle
simply meaning
the best defense for any business or any
product
tends to be
sell
to those who are willing to pay the
premium
or sell
to those who are discount buyers
this space where I expect I suspect you
are is the worst place
because there's always somebody cheaper
than you
and so here it's about utility
here it's about price
that's why you were talking about
affordable
this
is about brand
it's about Community it's about tribe
yeah
so the people who buy stuff here buy it
because of what it does people who buy
it here buy it because it's cheaper but
the people who bite you buy it because
of what it says about them
the worst place to be is this
why because they'll always be somebody
cheaper than you
always price is the it's I mean it's the
one raised to the bottom be cheaper than
everybody else
it's price
but if you sell on utility it's my
product is better better than everybody
else's
right
um you'll notice a lot of this bottom of
the pyramid stuff generally not well
branded
product doesn't last very long doesn't
have a long shelf life it's not great
quality it's because the person doesn't
really care about quality they just care
about using it now
now
this person definitely cares about
quality price doesn't matter
these people are very difficult very
difficult hello family the VT master
class has now reached over 5 million
unique entrepreneurs all across the
world if you'd like to book me for one
make sure that you hit the link below
cheers
Weitere ähnliche Videos ansehen
How to build a luxury brand, pt 1
Base Setting What is Marketing - Digital Marketing Digiskills - DigiSkills Pakistan
How to build a luxury brand
Kasih Diskon Boleh Asal Jangan Lewatkan Ini - Market Think 103
*This is Marketing* by Seth Godin BOOK REVIEW! | Best book on marketing?
Decoding Entrepreneurship: From Pain Points to Profit | Jyoti Bharadwaj | TEDxDFBEDU
5.0 / 5 (0 votes)