Monday Memo

A Byte of Knowledge

"To me, no task is beneath me because, remember, I used to be a dishwasher, and I mean that, and I used to clean toilets. I mean, you know, I cleaned a lot of toilets. I've cleaned more toilets than all of you combined.

And some of them just can't unsee. I don't know what to tell you, you know, that's life. And so you can't show me a task that's beneath me."

- Jensen Huang, CEO of Nvidia ($119 Billion Net Worth)

Watch the Full Clip Here

🚀 These 27 A.I. “Growth Codes” Are A Shortcut to AI Advertising Domination

Something to Ponder

Some of us at AI Marketers are die-hard Lord of the Rings fans.

And when we see a video of director Peter Jackson telling the incredible story of how Elijah Wood landed the role of Frodo...

Our brains can't help but connect it back to marketing.

Originally, the film crew wanted an English actor to play Frodo.

So they only held auditions in London.

Actor after actor auditioned...

And yeah, there were two or three that were ok, but nothing magical. Frodo had to be magical.

Because the rest of the story is THAT good...

We'll let the great Jackson tell it word for word...

"‘A package’s just come in the mail. It’s from Elijah Wood’. It was a video tape, a VHS tape. I had heard Elijah’s name, but I’ve never seen a film he’d done. I actually had no face for Elijah, I didn’t know how he looked like.

So, we put the video tape in. Elijah was in LA and heard that we were in London and we’re not gonna come to LA. He really wanted to get this role. So, he hired a dialect coach to teach him accent, he’d gone to the local costume-hire, got some cheesy kind of Hobbit costume on. He’d gone into the trees somewhere behind his house with a friend, and he just videotaped his own audition. He didn’t have our script, so he was reading from the book, he was doing Frodo parts from the book.

I just put this video tape in, and literally, not having known who Elijah Wood was really, I just thought, ‘he’s wonderful, he’s absolutely great’. And so, Elijah cast himself”.

Now, we're not saying you need to go full hobbit...

But what if you approached your business or freelance career with that same hunger?

What if, instead of waiting for the perfect opportunity, you created it?

And what would that look like?

We Asked – AI Answered

Our Question: 

"What are some companies that build products meant to last decades? And more importantly, how do they grow if their customers aren't buying frequently."

ChatGPT's Answer:

We'll examine three different examples in depth.

1. Patek Philippe (Luxury Watches)

• Business Model: Patek Philippe is a Swiss luxury watch manufacturer known for creating timepieces that last for generations.

• Product Longevity:

• Patek Philippe's slogan: "You never actually own a Patek Philippe. You merely look after it for the next generation."
• Their watches are built with exceptional craftsmanship and high-quality materials, ensuring longevity.

• Profit and Growth Strategies:

a) Premium Pricing:

- Patek Philippe watches range from $12,000 to over $1 million.
- High margins compensate for low purchase frequency.

b) Limited Production:
- They produce only about 62,000 watches annually, maintaining exclusivity and demand.

c) Collectibility and Investment Value:

- Patek Philippe watches often appreciate in value over time.
- The Patek Philippe Henry Graves Supercomplication sold for $24 million in 2014, setting a record for the most expensive watch ever sold at auction.

d) Service and Maintenance:

- Patek Philippe offers lifetime servicing for all its watches, creating an additional revenue stream.
- According to a 2019 report by the Federation of the Swiss Watch Industry, the global watch after-sales service market was valued at around $2.7 billion.

e) Brand Extensions:
- They've expanded into accessories like cufflinks and leather goods, diversifying revenue streams.

• Key Success Factors:

• Strong brand heritage (founded in 1839)
• Continuous innovation (over 100 patents)
• Exceptional quality control (each watch undergoes 600 hours of quality testing)

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2. Miele (High-End Appliances)

• Business Model: Miele is a German manufacturer of high-end domestic appliances and commercial equipment known for their durability and longevity.

• Product Longevity:

• Miele appliances are tested to last 20 years or more.
• Their slogan: "Immer Besser" (Forever Better) reflects their commitment to quality.

• Profit and Growth Strategies:

a) Premium Positioning:
- Miele products are priced 20-30% higher than competing brands.
- They focus on the upper-middle and luxury segments of the market.

b) Comprehensive Product Range:

- Miele offers a wide range of appliances, from washing machines to coffee makers.
- This encourages customers to buy multiple Miele products over time.

c) Subscription-Based Services:

- Miele offers "Care Collection" subscriptions for detergents and other consumables.
- This creates recurring revenue streams from existing customers.

d) Smart Home Integration:

- Miele@home system connects appliances to the internet, offering software updates and new features.
- This adds value to existing products and encourages brand loyalty.

e) Commercial Division:

- Miele Professional serves businesses, hospitals, and laboratories.
- This B2B segment provides steady revenue and balances consumer sales.

• Key Success Factors:

• Vertical integration (Miele produces 90% of components in-house)
• Focus on sustainability (products are 95-98% recyclable)
• Strong customer service (98% customer satisfaction rate according to a 2020 survey)

3. Le Creuset (Cookware)

• Business Model: Le Creuset is a French cookware manufacturer famous for its colorful, long-lasting enameled cast-iron pots and pans.

• Product Longevity:

• Le Creuset products come with a lifetime warranty.
• Their cast-iron cookware is known to last for generations.

• Profit and Growth Strategies:

a) Diversification:

- While famous for cast-iron, Le Creuset has expanded into stainless steel, non-stick, and stoneware products.
- This encourages more frequent purchases from loyal customers.

b) Color and Design:

- Le Creuset releases new colors and limited editions regularly.
- This strategy appeals to collectors and encourages additional purchases.

c) Culinary Lifestyle Brand:

- Le Creuset has positioned itself as more than just cookware, but as part of a culinary lifestyle.
- They offer cooking classes, recipes, and engage with food influencers to maintain brand relevance.

d) Multi-Channel Distribution:

- Products are sold through their own stores, department stores, kitchenware specialists, and e-commerce.
- This wide distribution network maximizes reach and sales opportunities.

e) Global Expansion:

- Le Creuset has successfully expanded into markets like Japan, where French cuisine is popular.
- International sales now account for a significant portion of their revenue.

• Key Success Factors:

• Strong brand heritage (founded in 1925)
• Commitment to quality (each piece is inspected by 15 different people)
• Effective use of social media (over 1 million Instagram followers)

 GOT 15 SECONDS?

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Until next time!

The AI Marketers

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