The sad and entirely avoidable death of a great old FMCG brand.

The sad and entirely avoidable death of a great old FMCG brand.

Aug 26, 2019 | Branding, Innovation, Marketing, Strategy

Currently in my cupboard almost gone, is a bottle of detergent, a well known and trusted brand, formerly the market leader, been around for ages.

It will not be bought again by anyone in my household.

Here is what I suspect happened.

Sales of the brand were eroding as cheaper, usually house branded product ate into the volumes. Somewhere in the multinational that owns the brand there was a bright young thing charged with resurrecting volumes, a project to ‘test their metal,’ requiring a 20% increase for success to be declared.

He, or more likely these days, she, did the corporate rounds seeking inspiration.

The R&D people believed they could improve the performance of the product by utilising a new emerging technology, but it required an extensive  R&D program to clarify some of the technical issues. No budget available.

The Engineering people reckoned they could speed up the line, reducing costs by updating, at considerable capital cost, the existing machinery, making production cheaper and more flexible. This would  reduce the systemic out of stock problem caused by the long runs required to generate factory efficiencies. These factory KPI’s are completely disconnected to the increasing difficulty of forecasting sales as volumes erode and become more erratic. No capital budget available.

The accountants are arguing for a price increase as well as a reduction in retailer promotional spend, as the gross margins fall below their target rates. Neither tactic seems well suited to the problem at hand.

The advertising agency strongly recommended a multi million dollar integrated TV, Magazine and digital marketing campaign, designed to bring back lapsed users to the brand, while intriguing new users to give it a try. No budget available.

The marketing he/she concerned reckoned it would be easier and cheaper to make the hole in the top bigger, make the product flow faster, encouraging a quicker usage cycle and therefore increasing replacement sales.

On a spreadsheet it looks logical, sensible, and with a great ROI. Everybody was happy, especially the product manager, who could see the trappings of corporate success coming his/her way by Christmas.

Whoops: forgot the value conscious consumer, to whom the integrity of the brand had remained, until now,  an important consideration, and who is not stupid. She is my wife, (who still does the bulk of the shopping) and believe me,  she is absolutely unforgiving.

Being captured by the interaction of functional KPI’s, status quo management processes, and resistance to any change, is a common corporate problem. It is unsolvable by anyone other than the Boss, who is mostly too busy contemplating the forest next door (or their navels) to see the trees in the forest they currently occupy, and take some decisive action.

When your brand, marketing, and innovation processes need a reality check, call me to tap into the ‘experience bank’ in my possession. 

The two most valuable asset every business person must build

The two most valuable asset every business person must build

Aug 23, 2019 | Leadership, Small business

 

Every person in business has two crucial and potentially synergistic assets.

  • Your skill, capability, and distinctive way of adding value to a customer.
  • Your network.

One without the other is not much use, together they are multipliers of each other, synergistic.

A little bit of skill and a great network will deliver a living.

Great skill but no network will deliver a living.

Great skill together with a great network will not only deliver a great living, but it will also deliver personal satisfaction.

Skill x Network  = Leverage.

Leverage is the ability to do more with less, something we should all be striving to achieve.

We are social animals,  we need at a primal level to be acknowledged, respected, and trusted by others.

As business people, we all need to have at our disposal a range of skills and capabilities that make us attractive to our customers.

When we have both, the trust of others and capabilities that add value to others, not only are we likely to be successful, but it is more likely we will be a rounded, balanced and happy person.  

 

The hyperbole trap

The hyperbole trap

Aug 21, 2019 | Communication, Customers

 

We marketers as a stereotype tend to adjective driven descriptions that make little logical sense, and in some cases, are in fact misleading.

Yesterday in a major supermarket deli section I saw two examples that should be taken out the back and flogged.

The first was ‘organic salami’. I am aware of organic chicken, beef, tomatoes, and others, but I am unaware of an organic salami running around anywhere. I am not sure I would recognise a live salami if I saw one.  Presumably the motivated copywriter hidden in the bowels of the retailer, or more probably, a well-meaning deli manager in the store, wanted to differentiate this salami from the others on display. They were probably made in the same factory, from the same ingredients as some of the others,  and certainly were not certified organic. Hyperbolic over-reach, and either completely incorrect, or the rules governing the use of the word ‘organic’, have been radically and terminally loosened since the last time I looked.

The second, equally misleading, was ‘Fresh Sea Barramundi’. Unfortunately for the copywriter, barramundi is a fish species that does not live in the sea, it is native to the coastal rivers of northern Australia, with close genetic relatives found throughout S.E. Asia.  The only exception to this rule of nature is when the barra is ‘farmed’, presumably not an attractive description. Again, a misleading and factually wrong product description used in the quest for hyperbolic impact.

I am nit-picking, these examples are relatively minor in the scheme of things that are manipulated to attract consumers, but nevertheless, struck a chord when I saw them. I will admit to a chuckle at the evident lack of recognition that most consumers are not fools, and would see through the hyperbole for what it was: flowery and meaningless language.

However, retailers are held to account. Regulators do not like false product descriptions, and more importantly, consumers, who have come to accept that the food they buy in supermarkets is as described, may start to have the trust eroded, just a tiny bit by such nonsense, and in the long term, this will damage the supermarkets brand.   

Do you allow your marketing people to wax illogically lyrical, or insist on well crafted copy that delivers a value proposition devoid of superfluous hyperbole?

 

Header cartoon courtesy Tom Gault.

 

 

 

 

Consider your ‘Doorman’ strategy

Consider your ‘Doorman’ strategy

Aug 19, 2019 | Branding, Marketing

 

It appears that the role of a doorman in a hotel is to hold the door for guests, easing their way into and out of the hotel.

Ostensibly the role is simple, a smiley face, welcoming word, courtesy extended. However, when you think about it, there are many more roles played by the doorman, taxi getter, luggage helper, direction giver, polite conversationalist, security,  all the while, adding to the value by creating a human face for the hotel.

When  you get rid of a doorman, as many do, and put in automatic doors, it may be cheaper, but you lose the impact of all that humanity that adds value to guests and visitors. The result over time will be added pressure on margins, as regulars go to the hotel down the road with a smiling doorman who takes the trouble to learn their names, welcome them back, and offer friendly assistance.

A cheap hotel will not have a doorman, guests in that hotel would see it as an extravagance,  but the sudden absence of a doorman in a 5 star hotel would somehow signal its slide to 4 stars.

These days, your doorman can be a website, social media persona, the tone of your advertising, as well as the people at the ‘front line’ of customer contact.

A former employer had a receptionist named Janice. She made everyone with whom she came into contact, in person or over the phone, feel better about themselves, every day. We did  not pay her anything like the value she delivered, just by being her smiling, generous self.

How does your ‘doorman’ shape up?

 

Header photo courtesy ‘Frank’  via Flikr.

Not all data is created equal

Not all data is created equal

Aug 16, 2019 | Governance, Management

We seem to believe, sometimes accurately, that the lack of data points is indicative of a less than a reliable outcome.

We also think that the more data points the better, but then we  tend to ignore the outliers, while privately acknowledging that is where change, and key insights, first emerge.

At other times, we are paralysed by the lack of data, or have so much of it we use misleading analyses to make our lives easier. The use of averages is a prime example, often resulting in absolutely misleading conclusions.

There was plenty of information about the distribution of icebergs in the North Atlantic in April 1912. However, the only data point that really counted, was that of the lookout on the foredeck of the Titanic.

Captain Smith was motivated by the race to set a new record for the Trans-Atlantic crossing time, and reassured by the information that there were ‘probably’ no icebergs so far south, he piled on the speed.

Whoops, missed the one really important data point.

The lesson: Not all data is born equal, and it is the insights that come from the analysis that really counts.

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