Spendthrift, sparrow, successful product rollout

Spendthrift, sparrow, successful product rollout

Aesop wrote about a man known to be a spendthrift.

Apparently, this man had been quite wealthy before wasting his fortune on things that did not matter. One day this gentleman saw a swallow perched on a branch. He immediately assumed that spring had arrived, so he sold his coat.

The next day the weather returned to the winter cold. The swallow froze to death. The man, now shivering, saw the swallow lying dead on the ground.

What did the spendthrift resolve from this? To find out, click here.

"Thanks to you I am freezing," exclaimed the spendthrift.

When testing new concepts or products businesses often make the same mistake as the spendthrift. A test of a single store will not produce reliable results.

Look at it this way, suppose a spaceship exploring planet Earth landed in the playground of an elementary school. They would report back to their mother planet that earthlings were approximately 3 feet tall. If a second spaceship was sent and it landed on the court of the professional basketball team they would report back that earthlings were almost 7 feet tall. Neither of these reports taken separately would produce any valuable information. Nor would the two reports create anything by confusion.

Business implication

Whether a new store layout or new product roll-out, test marketing requires a cross sampling of demographics in order to make an informed decision to proceed in the future.

About the author:

Rick Weaver has half a century’s experience in leadership development in retailing. He founded Max Impact Corporation, a leadership and business development consultancy company in 2002. His major accomplishments include working himself from stock clerk to director at a Fortune 50 retail chain and building a $40MM+ construction company in under 5 years. Today he works as an Executive Search Consultant with Patrice & Associates matching management talent with the job culture for which they are uniquely wired.

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