§ 5. First Distribution, Then the Product

Ideas do not emerge in a vacuum. In large companies, there is an approach called "gemba." This involves sending all employees to the frontline (e.g., a gas station) to immerse themselves in the company's operations. This helps office workers understand the issues faced by frontline workers, allowing them to discard unnecessary ideas and focus on those that address customer pain points. This is because new ideas often arise at the intersection of different fields.

For example, sports clubs and federations strive to engage people in loyalty programs. To do this effectively, one needs to be a fan and understand what the customer goes through and what problems they face. This leads to a problem with expectations. For instance, a club might want to develop a mobile app, but if few people know about it, even the most innovative app will not attract a large user base.

Consider a real situation: a hockey club in a small town had a loyal fan base that needed to be expanded. Instead of creating IT tools, the club started holding events across the country under its brand. How could this help? It's quite simple—parents and children would come, play hockey, and constantly see the club's logo and customer-focused approach. They were provided with rental skates and hockey sticks at low prices, and the cleanliness of the locker rooms and the quality of the ice were maintained. Within a year, the fan base grew twentyfold.

At that point, it was time to launch the mobile app and loyalty program. While the number of people attending matches did not increase significantly, fans began buying merchandise at ice rinks across the country and watching more of the club's games on TV. The club itself launched a franchise for opening new ice rinks.

This example illustrates the importance of establishing distribution and engagement before focusing on the product. By building a strong connection with the audience first, the subsequent introduction of digital tools and loyalty programs becomes far more effective.