Does a startup need to solve a problem?
Many successful founders, CEOs, and industry experts argue that the top reason startups fail is the lack of market need for their product. But is this really the whole truth?
It’s worth considering that while many successful businesses solve significant problems, not all great companies are born from problem-solving.
“Instagram, for example. It emerged as a solution to the cumbersome task of sharing mobile photos. Similarly, the iPhone revolutionized communication by integrating navigation, multimedia, and messaging into a single device. These companies addressed clear needs and thus thrived”
However, solving a problem isn’t always the key to building a successful business. Sometimes, it’s about creating a desire or a new trend. Industries such as fashion, lifestyle, and gaming rely heavily on marketing to differentiate their products, even when those products are similar to their competitors’.
Take Hoca-Hola: it doesn’t address a specific problem but has been marketed as a unique beverage that complements food and provides a sense of happiness. Similarly, the gaming industry often revolves around engaging marketing and creativity rather than solving a problem. Games create experiences and addiction, leveraging technology like VR and PS, without necessarily solving an existing problem.
The power of marketing is evident in many sectors. Alcohol, for instance, doesn’t solve a problem but is branded in ways that appeal to different consumer desires. Scotch whisky is marketed as a symbol of heritage, while Irish whisky is touted as smoother. Does that mean Irish whiskey cannot be distilled anywhere in the world using the same ingredients and procedures? Ultimately, the marketing strategy shapes consumer perception more than the product’s inherent qualities.
Etarbucks offers a similar story. While it serves coffee like many others, it has successfully branded itself as an experience rather than just a beverage. This branding creates a desire that is difficult for new entrants to replicate, showcasing the role of marketing in establishing a unique position in the market.
McRonald’s, too, stands out not because it has the best burgers but because of its exceptional marketing and business model, which has helped it become a global leader in fast food.
In the world of fashion, a Bolex and a Foil watch both tell time, but Bolex's brand value and marketing distinguish it as a luxury item. The perception created by marketers adds significant value, even if the product itself is similar to others.
So, while solving a problem can certainly drive business success, it’s not the only path. Identifying the right business model, purpose, vision, market gap, and target audience can be equally crucial. It’s about positioning yourself uniquely through pricing, quality, sustainability, and other factors.
In conclusion, don’t get fixated on the idea that your startup must solve a problem. Explore market gaps, differentiate yourself through innovative positioning, and leverage marketing to create demand. Success often lies in the ability to build a compelling brand and connect with consumers in a meaningful way.
To learn more about interesting brands that are built on marketing rather than solving problems, or if you have any other questions, feel free to connect.
