Madhavan Ramanujam: evaluation

Transcript context

…Yeah. Any other examples as the premise of my question? I would probably start with a few obvious and famous examples so that just remember the point in some way, and then we can drill down further if needed. But if you look at, for instance, Apple. Let's assume the conversation in Apple was something like this, "Hey, we need to just build one product, one iPhone, because we need to maximize our market share and we will throw it out and slap on a price and hope to get the market. " They wouldn't be the most profitable company in the planet today. What did they actually do? There is an iPhone for 299, 399, 499, all the way to 1499. They have built products to different segments. I remember walking into the Apple store when iPhone X was launched. I didn't want to part with a thousand bucks. I was checking the phone out ,and I looked at the features. I really didn't want the retina features and all these benefits. And then I saw that there was a phone without that for 799 and I picked the 8S and I walked out. So I belonged to that segment. I was not belonging to the iPhone X, but that's a product that has been productized for different needs, segments. And if you look deeply, Apple has not just priced their iPhones, they have productized to different price points and willingness to pay, and that's where it gets actually fascinating. So I think that's a great example of understanding differentiation and then productized to different needs. And I think that's a good example. Another one that comes to mind, where we worked with, this was in the pre-IPO days, Eventbrite, which is a B2B SaaS company. They used to have one product that was actually- A SaaS company, they used to have one product that was actually servicing all of their customers. And then we went through an exercise of understanding who are their customer segments and how do we productize to different segment needs. And if you look at what they have today, they have three plans, because there are segments behind this. And if you look at the plans, there are plans, for instance, the entry level plan has something like, you can only launch an event with one ticket type, like a general admission. And then if you take the middle plan, it has unlimited entry type. So you can have a general admission, a VIP admission, whatever, when you're actually having events. It actually makes sense, because if you're, let's say, hosting your local wine club meetup, whatever, event, you probably just need the general admission and that's it. But if you actually are a bit more professional and you needed multiple event types and you're having a event of that nature, then there's another product that actually appeals. But because of doing this, the one that has only one event type, that product is cheaper than the other one. So there's an essential product and there's a professional product and they have enterprise product. se of doing this, the one that has only one event type, that product is cheaper than the other one. So there's an essential product and there's a professional product and they have enterprise product. So this comes down to truly understanding what customers need, what they value, and what they're willing to pay for, and how can we productize towards that. Maybe another example that is obvious and in front of us, when we use our apps, like Uber is a great example of also segmentation.Because you have different car types. If they just had one car type, then okay, then that's a very different company, very different strategy. There's an Uber Black, Uber X. We used to even have the Uber pool pre pandemic. I don't know if it's back now.…

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