Following Mobile Web Trends Toward Profits

Word of the world of opportunity in the mobile web has been around since the early part of this century. Though still in it nascent stage, a few applications are starting to stand out as areas ripe for innovators as detailed in this post Five trends driving the mobile web or as the authors, Matthaus Krzykowski and Matt Marshall put it:

...those areas most ripe for pillaging by start-ups

As one who spends a fair amount of time thinking, reading and writing about innovation, the mobile web is an area I keep an eye on. Why? Because it is so early in the growth stage. It's always interesting to watch as a whole new technology takes over. Will it follow the same trajectory of those that came before or will it morph and branch off in another direction?

The authors of this article discuss the various stages of market adoption in the technology arena:

Incubation

Early Traction

Acceptance

Adoption

Mapping the various companies and technologies involved in the mobile web right now they come to a not too surprising conclusion. An opportunity exists for well organized, well funded startups with well thought out and well executed, innovative products

You'll see the action tends to happen in sectors that are somewhere between their "early adoption" and "adoption" phases

Reading their fairly technical discussion of mobile phone trends, I don"t always agree with their assessment of where various technologies lie in the market adoption process, but it's interesting to note which applications they have identified as at a tipping point.

The Five Trends

1. Mobile Advertising

2. Mobile Social Networks

3. Mobile Internet Interface- Search

4. Mobile Mapping And Navigation - Mobile maps

5. Mobile Mapping And Navigation - Location based

As you can see, the 5 trends include some that have had entrepreneurs and large companies salivating since the introduction of the mobile web, while others are newer entries. Mobile advertising, early to be considered but slow to gain traction, may need innovative new delivery systems or more likely ways to get around the "hassle" factor to really take off. Others, like mobile navigation seem a given, as evidenced by the explosive growth in sales of GPS devices.

So, does this mean that innovators in the mobile field should focus on developing applications in those segments deemed to be hottest and most ripe for exploitation? Well no. Perhaps, and it seems likely given the attention given to the study on which this analysis was based, that venture capitalists and angel investors will be looking for companies operating in those spaces.

However, as we've seen as Web 1.0 had morphed into Web 2.0, the biggest opportunities are often not visible until the technology AND the marketplace matures. Who would have guessed that social media would play such a big role with users of the web 10 years ago?

My advice to innovators is to continue investing time into your ideas, whatever they may be. Ensure that your technology works well and smoothly. Make sure it meets current consumer needs and don't be surprised if user input turns your idea in a whole new direction. Just ask the founders of Ebay ( a market for exchanging Pez dispensers) or Youtube (a place to store videos) or even Yahoo, originally just a directory for friends.

Innovation Opportunity In The Beverage Industry - Niche Marketing

We are fans of niche marketing. Innovating effectively means creating new products and services that will sell to a particular consumer. In today's crowded arena that market is often a small but growing group of consumers. An article in Food Navigator discusses this trend and explains some of the impetus for niche innovation driving the beverage industry.

Fragmentation in consumers' needs and preferences has stimulated the growth of American niche beverages, according to analysts.

The sale of flagships products has stagnated, forcing beverage companies to broaden their portfolios, said Stephen Rannekleiv, vice president for Rabobank's beverage, food and agribusiness research and advisory division.

The niche demand is a significant new trend in the beverage industry, he said, speaking in a company podcast. Another new trend is the desire for products that are better for the environment.

Large beverage companies, with their eye on emerging trends, are aggressively developing niche products. This is making it very hard for small to medium sized beverage companies to complete. Large companies however have the challenge of brand identity, developing an effective niche marketing strategy then sometimes means forgoing the flagship brand as Coke did when launching Dasani Water.

Alternately large brands can stick closer to home and explore niche markets complementary their flagship brand. Gatorade recently signed a deal with Tiger Woods to license his name on a new drink. Will Gatorade be attempting to increase market share among golfers or with the multitude of younger athletes who are Tiger fan? Gatorade isn't saying just yet.

Smaller and medium size companies, on the other hand are perfectly positioned to explore niche markets too small as of yet for the big players. While larger companies pile on the emerging trend in healthier drinks, smaller companies are free to explore niches within that niche.

Some promising trends that have been identified include beauty food. Already big in Japan the market for natural beauty enhancers is growing. Topical ointments and creams are available to the in the U.S. but beauty and enhancing food and beverages are limited.

Other areas of growth are children's health food, mood enhancing and functional foods and beverages that deliver specific health benefits. These categories are, as of yet too small for major beverage manufacturers to capture but are perfect for smaller and medium sized-companies.

Both large and smaller companies will do well to keep an eye on the growth of functional beverages. As Westerners continue to be exposed to a wide variety of food from all over the world, the health benefits of those foods become better known. An aging population in much of North America and Europe means more health problems and greater interest in ways that lifestyle can impact longevity.

Exotic fruits and regionally popular extracts are making their way into Western culture. Super fruits from South America should soon be joined by emerging exotics from Africa. Flavoe profiles are changing too. Unfamiliar flavors, to the Western palate at least are slowly making their way into the mainstream. Green tea is being followed by varietal flavors of popular fruits such as orange and grape.

All of these trends are becoming popular on the fringes, many will find a solid niche and some will become as popular as the once "hippie food" yogurt, spawning their own niches in time.