Rule Of 3

Description

Rule of 3 was devised by Harvard Business School. According to their research, most of the successful companies follow the following rules -  

1. Better before cheaper - Never compromise on quality to reduce the cost

2. Revenue before cost - Prioritise increasing revenue over reducing cost

3. There are no other rules - do everything you can to follow the above rules

It has been argued that Xiaomi is an exception to the Rule of 3. Let's see if it's true.

Key Takeaways

1. Make the brand better rather than cheaper.

2. Focus on increasing revenue before reducing cost.

Module Summary

1. When selling a brand, focus on benefits and not features.

2. Be aware of the culture prevailing in your target market and design strategies accordingly.

3. Try to satisfy all the customers.

4. There are 4 types of customers and the brand manager must respond accordingly.

5. Every successful brand must follow Rule of 3.

Up Next

In the next module, explore different models of brand management.