Monday, August 18, 2008
Questions
Thursday, August 14, 2008
KRAFT UNREAL?
Wednesday, August 13, 2008
Automotive Agenda
I was thinking about ways using metrics creates job security and insulates one from doing anything that actually makes a significant impact on the business when I had this thought.
What percentage of a new car's price or value should go into its repair and maintanence over its lifetime?
I'm sure the auto industry has that number, and wouldn't it be an interesting number to see on new and used car stickers. Bet it would drive down the cost of dealer repairs and shake other things up - and it should be there right next to the mpg sticker. But I'm still thinking of the benefits that would accrue to the end user - you and me.
ANALYTICS IS SO POPULAR IN BUSINESS BECAUSE
So studying the past in a petri dish won't engage the future - otherwise every brand, manufacturer and ad agency would be doing a whole lot better. It's a hostile environment in which to create new products or turnaround brands not doing well. No matter what anyone says, you can't measure your way to a breakthrough. Trends that pop out of numbers are like studying an earthquake, by the time you analyze the data, the event will be long past.
Monday, August 11, 2008
BRAND DOPING ON RISE AS OLYMPICS CONTINUE
doping refers to the use of performance-enhancers forbidden by organizations that regulate competitions. Doping is mostly done to improve performance.
Increase in marketing performance for several brands triggers probe. Prosecutors widen investigation into use of illicit creative steroids; tampering with established CPG category brand positions.
Cincinnati (AP) Prosecutors investigating C-level brand management practices at Procter & Gamble today confirmed use of performance-enhancing creativity to dope brands. Use of Abstract Dimensioning® (known on the street as AD), and other forms of banned creative stimulants manufactured by Calle & Company under the names Multi-Dimensional Consumer-Creativity® and Culturally Influential Consumer Groups® are all practices forbidden by key trade organizations that regulate competition including the 4 As, Marketing Research Association and the Grocery Marketing Association. Each has denied the practice of brand doping exists despite unusual performance spikes attributed to many once flat-selling brands. Prosecutors said they would expand their search immediately to other high profile incidents in consumer packaged goods, auto, retail, restaurant, financial and pharmaceuticals. Facing stiff penalties for illicit tampering with category positioning and new product innovation, unnamed Procter & Gamble executives with a promise of immunity defended the company’s use of performance growth stimulants (such as BGH – brand growth hormone) citing dramatic increases in brand strength and rejuvenation of older slower moving brands.
In a stinging retort to allegations that his brand and team had been using the illegal creative steroids marketing superstar Lance Brandstrong said yesterday that all accusations are without foundation. "We had permission to bring every performance-enhancing product we could envision to use. We do it by the book. We get everything authorized. We seek only unique selling propositions and have no idea what that guy was talking about when he pitched us on identifying new Special User Effects® as the underpinning to every great breakthrough.” In addition he said, “I have never injected or ingested any consumer information that I didn’t already know and I have never engaged the services of Calle & Company’s Consumer-Creative® Assays® to audit something that I did already know or suspect. I would never do that.”
Prosecutors believe the practice of brand doping providing an unfair marketing advantage over rivals, in markets and with consumers to be widespread - but the practice is hard to pin down because brand people don’t apply the illegal creativity to all of their brands all at the same time. “You have to wait for one brand in one category to unexplainably make a significant leap forward overnight. That’s our first clue” said a high-ranking source wishing to remain anonymous.
Companies under investigation in the widespread brand doping and market position corruption scheme include Kraft Foods, Nestle, ConAgra, Unilever, Colgate-Palmolive, Campbell Soup, Gerber Baby Foods, Pepperidge Farm, Entenmann’s Bakery, Brown-Forman, Miller Brewing, Ferrera USA, The Coca-Cola Company, Frito-Lay, Pepsi, Mead-Johnson. Janssen Pharmaceutica, Johnson & Johnson, McNeil, Schering-Plough, Bristol-Myers Squibb, GlaxoSmithKline, The Mennen Company, Chesebrough-Ponds, Clairol, L’Oreal, Noxell, General Foods, Lehn & Fink, The Drackett Company and more. And aggressive young prosecutors looking to make a name for themselves want to land indictments against other companies soon. A Federal Trade Commission spokesman said the agency is investigating the use of banned Abstract Dimensioning® and other forms of breakthrough creativity marketed by Calle & Company. (OK, I admit it. I've been doping brands with enhanced creativity for years. Like Nixon, I just got caught.)
To report suspected brand doping:
Brand Doping Hotline
714 244 9511
Category prosecutors are standing by to take your call.
Friday, August 08, 2008
The Anacin Syndrome
Hence the current trend to hurry up the maturing of kids faster - or the growth of brands. As workers, we don't have the time to correctly nurture the majority of children or brands. Well nurtured children and brands are now in the minority. Hence, Vanessa Hudgins posing nude for Disney when just 18. Miley Cirus partially nude at 14 or 15. You get the picture. Pretty soon you could run the same Anacin ad depicting 13 year olds in place of mom! "Sure school's tough. You're tense, your irritable. But don't take it out on your little brother!" So many people self-prescribe, who would stop the kids? And that's why companies can't fix themselves.
And that's what's happened in marketing. We no longer sell brands. It's too hard to find an ownable brand specific reason for being that substantively differentiates one product from another. Though I have the know how I can't find a brand in any category that says anything different than their rival. They just say it in a different way. Guess it's called commoditization and it's the price brands pay for not taking the time to do their homework. As a result we are inundated with category sells and not brand sells. It's too hard to find something different to say about your product - so we invented branding - it's what you do when you don't have anything important to say. Sure Starbucks has a headache. Howard Schultz is tense and irritable, but don't take it out on the business! And that's The Anacin Syndrome.
Tuesday, August 05, 2008
ARE YOU YOUR COMPANY'S BOTTLENECK?
Monday, August 04, 2008
PRUNE YOUR THINKING
There is a saying among leaders (anywhere) that you have to give up to go up. And someone just asked me what that meant. The hardest things to give up are our ideas and beliefs; like what drives a business, but overall it means 'sacrifice' and in the broadest sense acting in others best interest before you act for yourself, "when you help others get what they want, you get what you want," which is sure a pure thought that it is like the perfectly cured medium rare T-bone steak because if you help more people buy your product, just by pruning your thoughts to promote new growth, you win!
In business to sacrifice and help others get what they want, like a higher stock price or more consumer traffic, it has always proven the most expedient and effective device to prune your thinking. Yes, you have to prune your thinking to promote new growth. Sounds easy, but in business, and in marketing that business, people don't like pruning their thinking to promote new growth. As sales guru Zig Ziglar said, "People cling to their ideas more tenaciously than their most prized material possessions. The Chairman or CEO of a company will get a new lease on a new vehicle or give up his or her home and move, but the thoughts stay in place.
Now there is a thought that you have to tell consumers the same thing over and over again to build a number of impressions, but in the case of brands like Folgers or categories like OTC remedies, the thoughts have remained the same for decades...while consumer thinking changes at the pace of the next internet article read.
Sunday, August 03, 2008
Distilled Intelligence - What's your DQ?
Nordic Spirit professes to be one of the purest premium vodka on the international market. Under the moniker, DQ (meaning ‘distilled intelligence’), this luxury spirit has been in development for the last 10 years. What a great positioning; like that short lived 'think earlier' print campaign for Starbucks which sold caffiene, just like the best part of waking up is Folgers in your cup..
DQ is distilled in the government-protected Malmköping springs, a feature which formed almost two million years ago. The water is naturally soft, filtered and fortified. In the Nordic Spirit bottling plant, a connecting pipeline to the natural springs allows them to blend their distilled DQ spirit with this purified water, close to the source.
Even the method of wheat production is steeped in tradition, with seeds planted in autumn and allowed to mature during the eight winter months, making the grains of superior quality.
The result is an ultra smooth, complex vodka that slips down as gently as a shot of pure spring water. The bottle is an appropriately sleek mix of Italian glass and brushed aluminium, topped off with a specially developed nozzle that maintains the quality and freshness within. A must for any discerning drinker. What's your DQ?
Thursday, July 31, 2008
THE SIMILARITIES OF EARTHQUAKES, MARKETING AND KNOWLEDGE
TURNING SPARE CHANGE INTO STAR BUCKS
Now no one believes that recipe dissemination, a few novelty fro-yo drinks, closing stores, trimming the payroll and soliciting user-generated input via an online portal will affect Starbuck's turnaround. The cost reductions are a technical mandate, but the rebuild of unit sales and dollar volume requires the creation of new consumer knowledge (as in tell me something new about yourself) to raise the bar and get foot traffic flowing in the door again. Why not target a number like 400 customers per hour on any given average hour? Why not? That's what Costco does. And why do this? Because every decision Starbucks now makes is based on established consumer habits and practice. And Starbucks already knows what that gets them. I think their stock is trading around $14 a share.
Wednesday, July 30, 2008
SAVING STARBUCKS
Everything the past, present and future team at Starbucks knows about its business is based on established consumer habits and practices and no matter how hard you study the past it will never tell you all you need to know for the present. The demand to create new consumer knowledge, that which has never existed to be gathered and measured is essential for Starbucks to immediately generate significant incremental unit and dollar volume sales. And I'd like to demonstrate how that worked at P&G on Folgers and Pampers, just to prove it works everytime to those who think it's impossible to generate incremental AM usage occassions. It is the most immediate way to impact a brand and business. No layoffs, no store closures. Nobody quits when you're making money. So what's to loose?
ARE YOU TARGETING THE NEW AMERICAN UBER CLASS? THE BUDGETEERS
To put a positive spin on Budgeteers would be to think that they are frugal people and manage money well, reading Money Magazine and always putting their money in the accounts that pay the most interest and employ credit cards with the lowest interest rates. But that's not true. That is the minority. The Budgeteers are a much larger vaster segment..."Cornucopia Kids" bred by campaigns like "Life Takes Visa" (and decades of similar before) to consume more than they bring in. They live at the intersection of "can just barely get a credit card" and "I'll never be able to pay all this back." Hooked by the purchase pimp these finance-children, with their hands in the credit and finance cookie jar take out jumbo loans with no doc or easy doc applications, they lease vehicles to have more than they can actually afford, and when they turn leased vehicles in, (more than 70% of the vehicles on the road are leased) the auto industry finds it difficult to dispose of them, which hurts the auto industry. And these are the people who came from the homes that run our finance and mortgage industry today! No wonder it finally got all fouled up. The day of reckoning arrived and it's time to go to the woodshed. It's all illusionary wealth and we blanket ourselves each night in the illusion of financial security while the simmering financial stress drives us to seek Tylenol PM and therapy for attention deficit disorder children unhinged by little more than watching their parents create a daily atmosphere of monetary paranoia and financial misery. That's insecurity. It would be hard for me to pay attention in such a household too.
The smart Budgeteers will learn from this experience and adjust their priorities advancing to middle school. They are the minority. The rest of America's Budgeteers, captured by the financial pimp will continue to be held back in financial elementary school earning their C- and D+ on their report cards. We're a long way from Ray Bradbury's blissful 24th Century Star Trek utopia where human-kind no longer needs money and lives in pursuit of improvement.
We would have a much kinder, gentler and more fiscally responsive America if retailers did away with credit cards and loyalty programs. Just offer good products and friendly service. That would be an incentive for management to get back in touch with employees. Would these businesses, like Home Depot shrink? Of course they would. Down to their "reality" size rather than their credit inflated illusionary bottom lines.
Tuesday, July 29, 2008
HUGE EARTHQUAKE JUST HIT ORANGE COUNTY, CALIFORNIA
STARBUCKS...HOW SAD
Monday, July 28, 2008
THE AIRLINES - GOOGLE'S LEAST LIKELY EVOLUTIONARY RIVAL
Labels:
Airlines,
fly the friendly skies,
Madison Avenue
Tuesday, July 22, 2008
BACKSEAT DRIVING WITH HARVARD'S CLAYTON CHRISTENSEN AND DISTRUPTIVE TECHNOLOGIES
Saturday, July 19, 2008
TOILET PAPER FOR DIETERS
But you want to argue with the notion that no one has ever had the idea of "toilet paper for dieters" before? Maybe someone has - so go ahead and Google it because I couldn't find it. And why shouldn't Americans have the right to purchase "toilet paper for dieters." There's an obesity epidemic in America, so a lot of solid material from over consumption is getting flushed down the bowl while we simultaneously try to eat less. It's like a daily good cop bad cop routine. I stuff my face, then feel guilty about it convincing myself that one less leg of fried chicken or one less Pillsbury dinner roll is going to make a difference. I've been drinking Lite beer for years and it hasn't changed my waistline. I flog myself for a lifetime. Yes, one of my clients has been Jenny Craig.
But back to TP for Dieters. You snicker it's a silly idea. Oh yeah!? You wouldn't if you saw it rolled out by P&G and Charmin or KC and Scott Paper. After all it's been A LONG TIME since anyone innovated in the toilet tissue category. A roll of paper has been a roll of paper for since before your grandfather. People used to laugh at the idea of just having a second cold symptom remedy relief product. Everyone used Dristan and incredulously asked why they might need something else. Then we turned their tablet into a liquid. Prototypes were perceived to do a better job of providing night time tranquility. The day before every Consumer Packaged Goods executive laughed at the idea of segmenting the cold symptom relief category. The day after, they had NyQuil. They stopped laughing because NyQuil took nearly 70 share from Dristan overnight and opened the door for the flood of symptom relievers that followed. We just blazed the trail.
So is TP for Dieters a worthwhile idea? Probably not. Because it is the byproduct of my own mind and not that of consumers, and unless consumers say "make it so" the product has no reason-for-being. But if they did want it what might it be like? Would it be slippery or coarse, thick of thin, smooth like Lays or ridged like Ruffles? And why does it have to be flat? Can it be inserted? Would it change color like pregnancy tests to indicate carbohydrate versus protein metabolizing. How about indicating stool moisture content? (And they said I'd be embarrassed speaking with women about their daily hygiene needs for Maxi Pads and Tampons.) I THINK TOILET PAPER SHOULD BECOME DIAGNOSTIC. There'd be a great market in hospitals alone. Would there be different TP segments for people with different weight loss goals? People who want to loose 20 pounds this year versus 40. Is there a competitive segmentation for dieters on TV - Reality Shows like America's Biggest Loser? And then again, there isn't a single toilet paper that gives me a sensual pleasure. Why shouldn't there be one? Sure would make me feel better about over eating. I wonder if the Kinsey Institute for Research in Sex ever looked into this? Probably not because that's not where young executive minds go. But if a guy from IU can go there I'm sure P&G can too. But maybe again, the idea isn't worth the paper it's written on, and then again, maybe it is. Sure are a few technology patent ideas here if someone in innovation at Procter & Gamble or Kimberly-Clark isn't too busy. Googled that too. No patent filings to date. And they say agency creatives have all the fun creative ideas - or the humanists at companies like Ideo or Frog Design. How many've gone here? I bet zero. Because it's not something you can observe by observing existing consumer habits and practices - so that's where they and Clayton Christiansen's theories of disruptive technologies fall short. You have to be able to envision behaviors that have never previously existed and that is what we alone do with our Abstract Dimensioning Mental Processing.
Let's go on. Please help. Comment!
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