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- AI is like water or what you can learn from the water bottle industry to position your startup
AI is like water or what you can learn from the water bottle industry to position your startup
Alex Naidonova
April 21, 2024
Hey guys! Today I want to share with you an idea of which I am thinking a lot. While I mentor at Techstars or TRMNL.4, I often see startups who use AI as a main and only point of differentiation. But it doesn't work anymore.
See the picture for the formula founders use to pitch their startups and what it should be.
Morgan Beller wrote an awesome long read about how to differentiate yourself if you are an AI startup:
"Think brand. Messaging. Marketing. GTM. Pricing. Customer service. You can't graft all this on at the end anymore. You'll need to develop a key insight about how you will be creating value for your end users in a way that no one else can. You'll need to focus on the heartbeat and emotion of the people you're building for."
Basically, she compares AI with water and shares a story of this industry in the article.
I'll share with you some key takeaways.
What AI startups can learn from the Bottled Water Industry:
1. Find Your Niche: Like some water brands that position themselves as luxury or lifestyle choices, AI apps can carve out unique market positions to appeal to specific customer segments. Perrier bounced back by making bottled water feel sexy, fresh and high-class. Their ads with Orson Welles made people think "Wow, this ain't no regular water." Coke and Pepsi sold filtered tap water (Dasani and Aquafina) by pushing it as pure and crisp.
2. Stand Out and Build a Brand: Just like bottled water, many AI apps are similar under the hood. Differentiate your app in a crowded market by building a strong, recognizable brand that creates a unique identity and value.
3. Smart Marketing and User Experience: Bottled water companies excel through clever marketing and widespread distribution. Similarly, AI companies need to creatively reach their audience and ensure a great user experience, which can set an app apart from its competitors.
You have to be the kind of person who thinks about making a sexy water commercial before anyone else does.
The takeaway?
When the core product gets commoditized, the companies that thrive are the ones that tap into people's deeper wants through branding, storytelling, and understanding what really motivates consumers beyond just the product itself.
I really recommend you to read the full article!
FREE BRAND BOOST WEBINAR: find out how to brand your startup!
In 2 weeks, I'll host a free webinar for founders - come join me!
I'll share tips and tricks on how you, as a founder, can build a brand for your startup!
🤘 In this workshop, we'll talk about:
- The founder's crucial role in building a brand from scratch and communicating its philosophy and guidelines
- How to be the biggest cheerleader for your brand when you're the only one who gets it, what tools you can use now to boost your brand
- How a strong brand can help you raise money, hire the right people, and deal with your marketing
As the founder, you're the guardian of your brand — the one who creates it and defends it. Come to this workshop and learn how to boost your startup's brand — I'll share my toolbox with you!
Thanks for your attention today, and have a great weekend!
Alex