The Art of Negotiating

It's an art... so, by definition, there is no cookie-cutter way to be good at it unless you've found your own way to express and use it to your advantage. But thanks to show-biz there's a way to better understand the dynamics of negotiation. I was recently exposed to "Shark Tank" a reality TV show that I think gives a very good insight into how investors think, negotiate and bite one another to get the best deal.  It's fast-paced and vicious.

The challenge I get from watching this show:
Could I have gotten a better deal if I were put in the Shark Tank (assuming I have what they want)?

Word to the Wise

"If your job is to innovate, it is more important to ask the right questions, than to have the right answers to the wrong questions."

~ Paul Wang, "Customer Value Innovation" Professor - Northwestern University 

Two key takeaways:

1. Even if you don't have the answers just yet, being able to formulate the 'right' question will set you on the right path to true innovation.
2. Companies often make the mistake of only asking the wrong question to the wrong people. The right questions must be asked to the right people to get invaluable customer insights that will make a positive impact.

Let me briefly explain what I mean by that:

If your goal is to get more new customers to walk in the door, instead of asking your most loyal customers "why do you love shopping at our store," ask the target segment of the market that you want to turn into customers, "what does it take for us to earn your business?"

Why Burger King No Longer Reigns?

"On Monday, it plans to launch a lineup of smoothies, frappe coffees, chicken strips and snack wraps." Sounds a lot like the menu listing of America's #1 fast-food burger chain, McDonald's. But this is actually Burger King's idea of getting back to the top... or at least #2, where it used to be until Wendy's took its place for the first time last year.


A news report said, "Burger King has failed to evolve even as competitors have gone after new customers with breakfast items and healthier fare... Burger King executives don't deny that its new items are pretty close to those on McDonald's popular menu. But they say the new menu was created as a result of Burger King's own research."  


I don't think BK failed to evolve. I think they made a gamble when they decided against getting on the "healthy-food choices" bandwagon, the way many fast-food chains have. Unfortunately, their gamble didn't pay off because of wrong TIMING. Capitalizing on a consumer trend is a lot like trying to get on the best wave for surfing. Every consumer trend has a pattern---a rise and fall. I suspect Burger King was trying to capitalize on the young male group who want REAL-juicy hamburgers, not something as politically correct as the chicken wrap. BK was waiting for the tipping point. It was waiting for us to say, "That's it! I've had it with all of these healthy-eating, organic food nonsense. I only live once, so gimme that WHOPPER of a meal!"  But alas, no one said a word because we were busy stuffing our mouths with salads and protein drinks. 


Burger King's own research probably told them that this trend of healthy lifestyle is here to stay... at least for the time being. This trend is still on the rise. Refusal to adapt and cater to this trend  might just kill the King and dethrone him for good. This is a double-edged sword: BK needs to adapt to the changing consumer taste in a financially feasible way. BK also needs to differentiate itself from competitors if it were to have any chance at beating its rivals. The big question is how can BK adapt without losing its identity? If people remember McDonald's when they look at Burger King's menu, is that a good thing? 


Major TV ad campaigns with celebrity endorsements may help get the word out. But marketing guru, Seth Godin, reminds us that the product and experience itself need to "be remarkable."