Thursday, July 17, 2008
Is making the customer "Believe" in your marketing proposition, a necessary and sufficient condition of a successful sales pitch?
IS YOUR BRAND SMARTER THAN A FIFTH GRADER?
By creating new knowledge that has never previously existed to be gathered and measured you could gain a proprietary advantage over rivals and markets in the areas of strategic innovation, consumer insight and new product concept development to invigorate struggling brands and businesses. Does anyone actually think that recipe dissemination, a few novelty fro-yo beverages, closing a thousand stores and a http://www.mystarbucksidea.com/ website that does not give consumers the latitude to respond beyond their current frames of reference is going to solve Starbuck's problems? (every question or category in which to respond mimics a store as it exists today. How is starbucks to improve if the existing model is the baseline? All that can be expected are very small incremental...not even evolutionary steps. And that's not the material of a turnaround.) Why create new knowledge? Because no matter how hard you study the past, by asking consumers and customers questions, it can never tell you all you need for the present. How would you expect them to respond? They can only respond within their current frames of reference within long established habits and practices. Without the stimulation required to identify new product potentials and the bigger consumer persuasions beyond, companies have no recourse but to look for bailouts and new merger and acquisition suitors as solutions. That's strike 1,2 and 3 against inbound organic growth. No forward-thinking, outward-looking executives here. Just Pavlov's respondents running large businesses. Knowledge creation is why our clients hit more home runs in more categories than any other.
What's wrong with struggling companies and brands? They know everything there is to know about their business...and nothing new.
Wednesday, July 16, 2008
GM's TurnaWhat
Now I've been waiting for GM's turnaround throughout CEO Wagoner's reign, but like the problems facing Starbuck's head Howard Schultz, all I've seen are a lot of "turnawhats". Closing stores, recipe dissemination and throwing a few fro-yo new drinks into the equation will not quite cut the mustard at Starbuck's "turnawhat" either. There's got to be a sale or merger discussion going on in there somewhere - that's what these leaders always do. Just no inventiveness or creativity can be seen galloping to the rescue. (No pun intended with George Gallop or all the other pollsters and information harvesters currently selling data to GM and Starbucks.) Without the ability to create new knowledge to lead the company away from the brink what else are the straight forward linear thinking problem solvers to do? Can I trademark that term (TURNAWHAT) like Pat Riley's "Threepeat?"
Labels:
GM,
howard schultz,
Rick Wagoner,
starbucks,
turnaround,
turnawhat
Tuesday, July 15, 2008
Join Scour - Get Paid for Searching & Googling
Search
While Google, Yahoo, and MSN are incredible search engines, Scour brings all of their greatness together! With Scour, all three engines are searched all at once for you, with the results returned quickly on one page. Every Scour member is able to vote each listing up or down based on its relevance to their keyword as well as comment on their experiences with the site. By blending user feedback with proven search algorithms the Scour community helps shapes the Scour brand of results. Why would you want this aggregation? Because different search engines deliver different results.
Contribute
Ever spend time searching only to find that the results you need are buried under irrelevant ones? With the Scour voting and comment system, the goal is to introduce the human element of searching allowing you and all other Scour members to speak up and help shape the results with every search. See a result that doesn't match your search? Vote it down? See a site that is exactly what you wanted? Vote it up and tell us all why you liked it. After enough votes, the listings will move down in rank, placing the relevant ones where they should be, at the top! When using Scour you can read user reviews about websites based on your keyword taking a lot of the guesswork out of searching and getting to you destination quicker.
Reward
The top search engines make billions of dollars a year in advertising revenue, wouldn't it be cool if the users got a piece of that too? Enter Scour Points! Every member is awarded one point for every search, two for a vote and three for a comment with a maximum of 4 points a search. Once you aggregate at least 6,500 points you can cash them out for a $25 Visa gift card... it's more than you currently make from searching, right? On top of that, we offer referral points for the friends you introduce to Scour where you can earn 25% of the points they make. So if you invited 25 friends that used scour regularly in addition to yourself, that's an easy $125 in your pocket for a year of what you already do! Check out how much you could earn with the Scour Points Calculator. This isn't a pyramid scheme and we're not trying to get you rich quick, we just think it's a good idea to share our success with those who help make it possible.
Play a part in the Scour community and get rewarded for what you already do!
(This copy - for the most part - borrowed from the Scour.com site. They said it better than I could.) Go to MarketWatch for more information. http://www.marketwatch.com/news/story/search-socially----social-search/story.aspx?guid=%7B700B5CFC-3651-41D2-892F-EA8D4F508E10%7D&dist=hppr
My closing comment...the first chink in Google's armour. Time to cash in your stock. Scour is not "it" but the next breakthrough in online search is coming. Scour is a transition - evolutionary. If Microsoft and Yahoo can wait out their merger the affair might become meaningless. The next great thing will happen while they sit on the sidelines like two injured all stars.
Bush - Capades
I read an article in this morning's Nation/World section of the Orange County Register suggesting that President Bush will blame the Democratic Congress for continued high gas prices if Congress does not approve his bid to open offshore drilling. Why is this wrong? And what's wrong in general today?
Lack of leadership. Just because execs like Bush or Wagoner have the title doesn't mean they are the leaders. Leadership guru John Maxwell calls this "the myth of position". There is no gas or oil shortage. Lack of confidence in President Bush's National/Global leadership is what is fueling rampant oil price speculation. There is no gas/oil shortage (we don't need any new wells) because if we were running out of oil you'd see oil and gas companies diversifying into non-oil and gas businesses. That's what Philip Morris did when tobacco became taboo and they acquired Kraft. That isn't happening.
What's wrong with companies like GM? Simple. It takes 5 days for GM just to acknowledge receipt of a letter to company head Rick Wagoner. Small things like this add up into a behavior pattern that caused one writer yesterday to call GM a "pointless" company. How is a company to reap the benefits of becoming forward-thinking and outward looking if receptionists at companies like GM and Starbucks are not even allowed to identify decision makers when asked? The knowledge conduit gets capped by the operator.
Regarding business intelligence in America. It is as suspect as the no doc/easy doc loans that got the mortgage/credit industry in trouble. Any research that does not cause an executive to make direct eye contact with an end customer should be suspect.
George Bush, Rick Wagoner. They have a lot in common. What is America's stock price right now? That is what fuels speculation and high gas prices - so if you are a Democrat or Nancy Pelosi (and I'm Republican) don't fall when running with these scissors.
Monday, July 14, 2008
Why are good insights so hard to find?
Very often, managers view any product, service, idea, technology, or process that is new (to them) or different as an insight or innovation. (Well just because it's new to you doesn't mean it's new to the rest of us) (An old mentor tipped me off to this type of behavior chastising me for being too busy learning everything all over again for the first time) So I think quality insights are so hard to find because we don't know how to find them. Most companies have reliable resources in place to 'gather' and 'measure' data, but gathering and mining data is only a reflection of current consumer habits and practices and no matter how hard you look at the past it will not deliver what you need for the present. So what do you need instead? Why a knowledge creation process of course! Something that can create new consumer knowledge that has not yet existed to be gathered and measured. That's how you improve consumer behavior and take your highly saturated and penetrated category and take it another quantum leap forward - the same way Pampers learned to take disposable diaper's 'fit' and 'dryness' for granted and put the brand on the much larger 'development' footprint back in the early 1980s. Or the same way Folgers went from generic 'sensory' advertising (Mountain Grown/Richest Kind) to 'control's' best part of waking up is caffiene in my cup - recently sold to JM Smucker for $1.6 billion. That stuff sure does help me work and play well with others - especially in the AM! Now that was an insight!
Why else are good insights so hard to find? It's a matter of exposure. The rule of thumb is "The more you expose yourself too the more likely you are to succeed." But apparently you can't expose yourself to a whole lot by gathering and measuring data. And companies don't want to take on additional external resources. Sounds penny wise and pound foolish!
So if business managers are running businesses and making decisions based on gathered and measured data and have not exposed themselved to knowledge creation processes could that be the reason so much of American business is only managed to meet the numbers? Kraft can predict it's sales based on predicted birth rates over the next 5 to 10 years. Doesn't take many if any profound insights to pull that off. Is that the kind of business management that's going to bail Starbucks or General Motors out of a jam? Is this why technology is king in the new creativity economy? Well, lets forget about technology and product design. It's too easy to reverse engineer and copy.
So what is an insight?
An insight is the realization of value from a new solution to a problem that rewrites the rules of the game. In order for something to qualify as a true insight
- It must engage a creative process,
- It must be distinctive,
- And it must yield a measurable impact.
Labels:
Anheuser-Busch,
General Motors,
InBev,
Insights,
kraft,
LinkedIn,
McKinsey,
starbucks
Thursday, July 10, 2008
Chrysler's $2.99 Gas Guarantee
Tuesday, July 08, 2008
When a good business goes bad
Hired by Leo Burnett, the EVP Client Service asked me what I thought of rumors that Philip Morris might buy Kraft. I said I thought Philip Morris was preparing to reduce their dependency on tobacco profits from 96% to something in the range of 46%. No one believed me, so no one went after Kraft's new business except me, landing the Kraft BBQ sauce business for myself and not Leo Burnett. And there followed a string of Kraft account work resulting in Kraft's most successful growth period with brands turning in results well beyond anticipated category norms. I made a bundle and so did Kraft.
During that time Starbucks also took off. It was time to buy stock. I'd buy at $22, watch it rise to $44, split, then repeat the process again and again. So how did I know when to get out? When Starbucks launched milder dimensions coffees in a bid to become more things to more people. That was the beginning of the demise of Starbuck's brand equity. It was also the last time the stock grew and split. Starbucks had actually succeeded by being fewer things to fewer people. You had to love that dark roast taste or you didn't. Today my broker told me Starbucks dropped to $14. That's off $4 from four days ago.
What brings my attention to these matters? The price of gas. At nearly $5 a gallon I've come to realize that there's actually no gas shortage. How do I know this? Because when we are really out of gas, the oil companies will begin to diversify into non oil and gas businesses. Then it will be time to worry. Sounds like Philip Morris all over again.
Labels:
gas prices,
kraft,
Leo Burnett Philip Morris,
starbucks
Wednesday, July 02, 2008
My Top Ten Brands
So I got to thinking. This question is irrelevant to these three, but in my lifetime, what have been my Top 10 Brands? That is, over the last 40 years, when I look back at every consumer good I've ever purchased, which 10 brands have I always purchased - and never purchased a rival? Interesting question right? Well here are my 10 based on product performance profiles.
- Q-Tips (feel as good as sex when you use them)
- Band-Aids (they stick well)
- Neosporin/Polysporin (never bought anything else for scrapes)
- Hellmann's Mayo (thank Laura Ries for pointing out REAL)
- Coke (and only Coke) (never tried Diet/Zero/New/Vanilla, etc.)
- NPR (National Public Radio is the best)(The Christian Science Monitor was a close second)
- The Beatles (ok, I do like other bands, but not with the same total immersion)
- Walter Cronkite/Chet Huntley/David Brinkley (great news anchor brands - after them, the news became, well, not news)
- Acura (biggest bang for the buck - my 91 Legend is over a quarter million miles without a single repair issue. Have only changed the fluids, tires and brakes - still runs like new)
- Maxfield Parrish (one of a kind great graphic artist)
As far as any other consumer good or category goes, I must admit, I have accepted substitutes, misplaced my loyalty and shopped on price percieving your brand to be a commodity.
So what's your top ten brand list? Post it here. Do you have an imaginary brand list for new products not yet invented? Mine starts off with Vel-Close and ends with OraQuel. What are they? I'll show you mine if you show me yours. Thanks!
Tuesday, July 01, 2008
About those airline baggage charges
Thursday, June 19, 2008
The Closed-Minded Innovator
Just what is "THINKING OUTSIDE OF THE BOX?"
Pharmaceutical companies today are developing hundreds if not investigating thousands of new products each year - many of which go OTC. So I began thinking, "How many would ultimately converge on the same positions, just saying the same things about themselves the way their different advertising agencies want to?" Now the agencies like to say, "It's all about the strategy!" lol So just what does it mean to think outside of the box in oral care where there are only five category attributes that account for all consumer perceptions in oral care: whitening, cavity prevention, breath freshening, tartar control and gum care?" I can hear the advertising exec selecting the new advertising agency now! "I don't care what you talk about, just talk about one of those five things." So when it comes to new product development, the same thing happens. Consequently, there is no thinking outside of the box. which is why McKinsey & Company reports that over the last 45 years, despite solid balance sheets and healthy bottom lines CPG execs wonder where their new growth will come from. New technologies still converging on the same positions? Withdrawn FDA approvals?The same happens in all categories. Show me a laundry detergent or household cleanser that doesn't promise to do the cleansing job better and faster. Show me a shampoo and conditioner that doesn't promise model-perfect hair. Show me an allergy technology that doesn't promise to relieve symptoms better and faster. Show me an orange juice that doesn't promise to taste most like the orange.
Yes. Commoditizations besets every new product launch like the plague. Hastening copy cats and capping each new technology's rapid growth phase because they do not insultate their businesses by discovering and communicating the proprietary Special User Effect no other rival can own.
Tell me about other categories in which "thinking outside of the box" beats or sucumbs to commoditiztion - but be careful before you dispute me - you can't be in "a category" unless you are converging on the same position as your rivals. So here's how you'll get a leg up on first place, or get there if you didn't launch first.
Sunday, June 08, 2008
My beef with online research
Labels:
brands,
consumer products,
laddering studies,
online research
Thursday, June 05, 2008
My innovation beef with market research
Wednesday, May 28, 2008
Creation's Conundrum: The Qualitative Quantitative Conflict
This image courtesy of Dee's Liberature. http://bdee.wordpress.com.
Labels:
McKinsey Company,
qualitative,
quantitative,
research
Tuesday, May 27, 2008
Airline Marketing Hits Rock Bottom
Friday, May 16, 2008
Topping Google
Google, like Starbucks is starting to show frays in it's cuffs. So let time take its toll. Now all the talk is about investor Carl Icahn (sure has the name for it - iCahn, iKahn, ICON-great new brand name for a Google topping search engine) and cronies such as Microsoft's Steve Balmer reigniting their takeover bid. Hey guys, listen up. All of this takeover action is proof that the guys working the problem don't have the ability to out-invent a new Google. Something better that grows not from pure technology, but from the creation of new knowledge from consumer minds, that by perceptual innovation would discover that knowledge required to change consumer habits and practices with ideas rather than ownership of a rival.
It sure is a lot cheaper , and only takes about six weeks to find that breakthrough idea that would snuff Google's mass appeal. I've done it before. Why not just treat the problem like a new product concept development exercise and invent a real google competitor from scratch for $200,000 or so rather than the $37 billion it would take to buy a Yahoo that's always going to be, like Avis, number 2. Of course, this advice comes from someone who knows how to do this type of problem solving strategic innovation. I don't do those garden variety line extensions.
I think the real problem believes this can't be done. "The cost of pioneering" would bee too high." But it would still be far, far less than what would go into Yahoo's acquisition. Imagine just what you could do if you were a successful new product person with several multi-billion home runs under your belt and someone gave you $37 billion to play with. I'd reinvent the entire consumer packaged goods industry including it's distribution channels.
Monday, May 12, 2008
The Banality of Selling Consumer Products
I make special note here of the new advertising being done to sell 7-Up. Now with real, natural flavors. Who cares! It's a soft drink. I got through all these years with artificial flavors, so what strategic rocket scientist at Cadbury-Schweppes decided this was the best way to go? Reminds me of Procter & Gamble days where the soaps and surfactants division toyed around with the idea that washing your clothes "sanitized" them. DOH! Who cared? My clothes were clean.
Last year, Cadbury Schweppes beverage division, including Snapple and 7-Up was up for sale. And nobody bought. So there's been little growth in the division, and no one wants to buy the division. Don't you think it would be time for a little creative thinking and strategic innovation? This effort isn't picking the high fruit from the tree. As a matter of fact, it isn't even picking up the dead fruit from the ground.
Tuesday, May 06, 2008
Reality Vesus Actuality: A Construction of The Truth
So those of us who are not so numbed by the barage of reality - wonder about actuality. Are you marketing to actuality? Because that's where the people with disposable incomes are in a crappy economy. They're dealing with Actuality. They're not frittering away their dreams on reality.
Washington Mutual is marketing to reality. They've borrowed billions to remain solvent, and to mask the actuality, tell us they are the bank that makes you say, "Whoo Hoo!" The Germans call that "dreck." Please don't deposit your marketing waste in my Actuality bin. WaMu is using "reality" strategy to mask the fact that it is really the bank that lacks actuality management, and could very well make depositors cry Boo Hoo - if they had a run on the bank and had to lock the doors. Yes actuality fans, disaster at WaMu is really that close.
But as long as we can immerse ouselves in reality, know one will take accountability. And as soon as the credit crunch is averted - because that's what reality helps us do - we'll have dodged actuality again and life will go on taking Visa.
What happened to gold standards.
So in what camp are you placing the future growth of your company, your strategic innovation? Reality or Actuality?
Labels:
actuality,
Disney,
gold standards,
reality,
The Apprentice,
tia tequila,
TV,
Washington Mutual,
Whoo Hoo
Friday, May 02, 2008
Advertising Campaigns with Zero Thought Profiles
Mitsubishi. Mitsu. Trying not to be Japanese. What's next, Mhoo Shoo?
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