Showing posts with label strategy. Show all posts
Showing posts with label strategy. Show all posts

Wednesday, March 21, 2012

The Strategy of Whiz Kids

My son wanted to know why competing orthodontists would set up their practices right next to each other. I had to admit that one never knows why decision makers pick one orthodontist over another. But my son's question prompted my to think of most highly price-driven commodity categories and the fact that most competitors do a very poor job of differentiating themselves. Now our orthodontist does a great job targeting kids in our community. Particularly those involved in high performance sports. I explained that the orthodontist next door may target only adults, and in that way "differentiate" him or herself.

But in this is the point that the two competitors target audiences based on "cost-of-entry" parameters. Things taken for granted by the majority. An adult with no children would feel uncomfortable working with our orthodontist. A child would feel uncomfortable being treated in a room surrounded by 55 year old adults.

So how would orthodontists better differentiate themselves within their respective audiences? Orthodontists targeting children and orthodontists targeting adults better differentiate themselves by identifying a "reason-for-being" within their sphere to which patients better relate. In the same way both Folgers and Maxwell House "deliver" flavor and aroma both cannot occupy the same "mental space."

To set themselves apart Maxwell House stays the course with various forms of "Good to the last drop" messaging. What's good to the last drop? The coffee. What about the coffee's good to the last drop? The flavor and aroma. What could be finer than that?

Mrs Olsen! She said drink "Mountain Grown" Folgers. Mountain grown was supposed to be the support point to the contention or unique selling proposition that Folgers was "the richest kind." The richest kind of what? The richest kind of coffee. What about the coffee was "the richest kind?" The flavor and aroma. So you see, we have two products not doing a very good job differentiating themselves. Both focus on a "sensory" parameter category consumers generally take for granted.

How'd one get off the treadmill? By focusing on another and more consumer-relevant "reason-for-being." By focusing on "stimulation" rather than "flavor" and "aroma" Folgers became "the best part of waking up is Folgers [or caffiene] in your cup?

What happened? A $300 million Folgers business became a $1.6 product.

So what's your "reason-for-being" versus your competitors. And is it that good?

That's thinking outside of the box :)

Tuesday, April 01, 2008

The Grand Unified Theory of Creativity

I am approaching 40 years of experience mumbling and working with Madison Avenue ad agencies and their clients, finding strategies that invigorate the sales of products, brands, categories and industries. Beneath the surface I've sought what I call The Grand Unified Theory of Creativity - what is it that would give a client the single most comprehensive yet concise view of all product and positioning potentials available to their business. While this search with my clients has allowed me to amass many career's worth of experience in less than a lifetime, I still wonder why more people don't get it - knowing as I do that they can go farther than where they are, expanding their product or strategy's Viability Envelope, by just tipping the creative tea cup a bit further - in the same way shifting from 'fit' and 'dryness' to 'development' dramatically expanded Pamper's industry footprint?

Letters back from companies such as Starbucks and their Senior Vice President of Category Management state they have plenty of specially designed resources available for the gathering and measurement of the required data - never realizing that you can never measure your way to where your business can go. Again I ask, "So why don't they get it?"

No one is talking to Starbucks (or any company) about The Grand Unified Theory of Creativity (google "the grand unified theory of creativity" in quotation marks and you will find I am one of only two people on the planet thinking about it, and the other guy wants to be a western writer.) And Starbuck's 'gathered' and 'measured' data is doing nothing to reverse the fact that the strategy that once made them most powerful is now being copied handily by every other Tom, Dick and Harry coffee purveyor.

Strategic Innovation, and The Grand Unified Theory of Creativity is about Multi-Dimensional Creativity. Another one of those terms that companies such as Starbucks tells me is provided by their ad agencies (really?...so if you google the term "muli-dimensional creativity" why don't any advertising agencies pop up in results?)? Multi-Dimensional Creativity is about that comprehensive/concise justaposition of which I spoke earlier - looking at fractions of millions of strategic options in the blink of an eye. That's just to get the linear thinkers out of the starting blocks. It doesn't come from the user-generated input websites touted by Chrysler to get them closer to their customers. It's the Abstract Creativity, The Abstract Dimensioning that ensues that makes the obvious special. (and that's not covered by any ad agencies or strategic innovators either).

So say you are Staples, and the strategy that once made you so powerful, and the first to consolidate office supply acquisition, is now so copied that you've become little more than a commodity; what do you need to shift your business strategy from strategy maintenance to strategic creation mode? You need to visit a fine tailor and get your new grand unified view of creativity custom tailored to fit you.

Monday, October 08, 2007

The War on Marketing Strategy

I have never seen Al Ries hand out bad advice until now. He says focus on your category first and your brand second in his Advertising Age Magazine installment. (You Can't Survive If Your Entire Environment Disappears - his words) But - Companies don't often have the muscle, the push or the pull to move a category, so what's Al's agenda? Weaken brands to the point that they must beg for his consulting help? At procter and Gamble we always shot down advertising agency strategies that had a "category" sell because they were too generic and not brand specific enough. (That's always the best, but also the most difficult strategy/answer to find in today's worlds of commodity products - where private labels (ie: Kirkland for example) are just as good as branded items.

Here are a few of my other comments in Ad Age:

Al,

I disagree completely. Kodak did a great job selling film pre-digital - when film was relevant. Then digital came along and they did no homework to determine how film might remain relevant in a digital environment. They just followed the digitals and it's tough to lead when you are part of the herd. That was Kodak's mistake. They didn't make a stand. And they may not have ended up like Custer.

At the critical time and unable to find the correct selling/perception/motivation solutions, key Kodak execs like marketing head Andrew Salzman jumped ship for Compaq, and faded from sight - as did the Kodak "memories" equity. They are as easily captured digitally, BUT I think film has not gone the way of the Betamax, I think there is a place for film and creativity just as strong as Apple's found vs. PCs. They just need to do the homework to determine how to say it. (And that's not by staffing with Apple employees) What is their reason-for-being? What Special User Effect (tm) can they transfer to customers who might try film again. There are many trier/rejectors, light and medium users - and I am still one. Those would be great positioning projects. Focus on your brand and the category will take care of itself. Ben Franklin said take care of the minutes and the hours will mind themselves. I believe that should be Kodak's tact. Jibe ho!

Friday, March 02, 2007

Stengel Exhorts 4A's: 'It's Not About Telling and Selling'

P&G's CMO lifts a page from Zig Ziglar's sales 101 course on building relationships - people buy things if they like you. Why don't more of P&G's ads get you to like them? Because the ads are long on features functions and benefits wrapped in engaging creativity - and very short on Selling Dimensions ® and Product Potentials ® - Special User Effects ® - that give a product or brand real personality and character. Anticipation is not a feature or a benefit, but it is a hidden selling dimension unlocked by Calle & Company that led to Heinz's famous "Anticipation" ads with Leo Burnett - a strategy later lifted by Jeff Goodby to author, "Got Milk?" Ya gotta love those hidden Selling Dimensions ® and Special User Effects ® ! All by products of Calle & Company's proprietary Abstract Creativity ® and Multi - Dimensional Creativity ® Systems of Invention that increase a mature product or brand's Viability Envelop ®.