Round Peg, Round Hole

It's always good to share examples where competitive advantage is really working. Usually they've involved some departure from normative thinking....and this example is no exception. Its about talent selection to deliver the ultimate in customer service.

Thorkil Sonne is a Dane. He opted for a non-traditional talent-sourcing pool when founding his IT company, Specialisterne (The Specialists), 5 years ago. The decision has resulted in a real advantage, winning them business from Lego, Microsoft and Oracle. Specialisterne is a software tester. To do it well, to be best in class, requires long periods of concentration, and far more patience and attention to detail than most mere mortals possess. Thorkil's solution? 75% of his 50 employees have some form of Autism. The business need matched perfectly with the talents of the individual.

What does your company do? What skills does it require most? Might it benefit from a little extra lateral thinking next time you're recruiting?

Obama: The Consummate Marketing Man

I never thought I'd say this, but we can learn alot about marketing from a man in politics. That man is of course Obama. He is a consummate marketing man. Clear about what he stands for; consistent in his message and (so far) in his actions. He listens, encouraging dialogue in places that the voters go....shopping malls, YouTube, blogs. His message "change you can believe in" neatly repositioned McCain as a third term of Bush. Bush who went to war, who mismanaged the economy.

Obama went to the people. McCain to the corporates. Obama rode the new wave of crowdfunding and raised some $650m - a record in political donorship. Half of this came from ordinary people, people in the US like you and me, giving small amounts (less than $300). That's alot of people - more than for any presidential candidate ever. So Obama wasn't seen as a candidate who would line the pockets of corporates once in power, but would work in the interests of the people. He did what great brands do. He built a coalition of people who were prepared to part with their hard-earned cash. And he keeps doing it every day. The morning after his election, as newspapers carried the photo of his first day in office, an email went out from MoveOn asking everyone to "chip in $25" to a new cause. One that builds momentum, disarms the lobbyists and corporate politicians who plan to stop Obama in his tracks. In others words, at his moment of greatest success, work had already begun to dissipate the next expected competitive attack.

The Best Job in the World

Did you see it? Tell me you did. The ad in the jobs section of The Guardian on 10th Jan. This is what it said:

THE BEST JOB IN THE WORLD
Island Caretaker: Islands of the Great Barrier Reef, Australia Full-time, live-in position with flexible hours. AUD$150,000 for a six-month contract. Accommodation provided – luxury home on Hamilton Island, overlooking Australia’s famous Great Barrier Reef. Responsibilities: explore the islands and report back. Clean the pool. Feed the fish. Collect the mail. Apply to Tourism Queensland at: www.islandreefjob.com

Not a hoax, but a brilliant viral marketing campaign by CumminsNitro, Melbourne, for Tourism Queensland. The little ad ran in 8 languages in the job sections of key newspapers around the world. Applications have poured in from places as diverse as Chile, Canada and China.
But the real objective? To raise the profile of Queensland as a Tourism destination. When you visit the mentioned website, as 2000 people are per second, you are greeted by pictures like this. And for those of us who aren't looking for a new job, it makes a perfect holiday destination. This is lateral thinking. The stuff that Competitive Advantage is made of. Here's hoping it translates into additional holiday bookings and Queensland visitors.

The Price of Convenience

I don't buy Fruit Shoots anymore. The kids love the taste. They're good value, often on promotion, and I pass them everytime I visit the supermarket. So why don't I buy? The answer is simple. One day I looked at the small amount of liquid and the large amount of plastic. I imagined the liquid swigged, gone in a moment. The plastic here for a lifetime, and beyond. The price of convenience became higher than I was now prepared to pay. Not in monetary terms, but environmental ones. I'm not a green person. I have compost and non-compost bins because the council require it. But I don't do weekly trips to the bottle bank and I'm not a member of Friends of the Earth. There's lots of talk about Food Miles and Bags For Life. It's the thin edge of the wedge. As the cost we are prepared to pay for convenience peaks, there may well be a backlash, and heavily packaged goods will be an easy target.

Brand You

As business people we spend alot of time analysing the products and services we sell, to whom, and how to price them. As consumers we assess each brand's offering and value for money. But there is one brand that we rarely relaunch, promote or assess the value of. Paradoxically, it is the brand which affects our annual earnings more than any other. Our personal brand. Brand You. Brand Me.

What does Brand You sell to employers, clients or customers? Why are you priced as you are and do you represent good value? In short, what is your personal competitive advantage?

Marc Cox of The Advocacy Factor has come up with a neat yet impactful way of helping you to crystallise what you do when you're at your best. It's a technique which looks at your roots, legacy and the impact these have on the way you work everyday. It's much more useful than Myers Briggs and many of the psychometrics tests in use today. Why? Because it is a simple, singular feedback of what you sell to others, the springboard to a sharper CV and the answer to that most pertinent of questions "Why should we hire you?" And because it surfaces your true values, you will learn which kind of cultures bring out the best in you. Time to start branding Brand You?

Make a Profit, Not a Killing

I predict growth of a new type of business - let's call it Not Just For Profit. Sitting neatly between For Profit and Not For Profit, it pursues financial returns and an altruistic cause. Not Corporate Social Responsibility (CSR) where the cause is peripheral, but Compassionate Capitalism if you like. The cause is central. Inherent in the values and principles that the organisation lives by. This gives immediate advantage because brand trust starts high and PR opportunities are great.

Logic runs something like this: (1) Greed is out. The recession reminds us that someone's profit is someone else's loss. (2) More of us want to make a difference in the world - to address social and environmental concerns. We can't all hop on a plane for a 6 month VSO project in Africa, so we buy Fairtrade bananas, maybe drive a Prius. But we want to do more. (3) The web has made it easy. We can find people who share our values, build a movement - a business - at relatively low cost through crowdsourcing and crowdfunding.

So there may be a fresh crop of startups entering your market shortly. Unfettered by a history, they offer a more relevant business model. Backed by a strong emotive cause, they bond more closely with your customers. Where will they hit you hardest? How can you lessen the impact?
Here is one such company. ARK. It stands for Acts of Random Kindness. The Company sells a logo'd shirt for £28 and asks that each time it's worn, the wearer does something kind for someone else. It was an idea dreamed up by an 18 year old while out on his Duke of Edinburgh Award expedition. He says

"I was tired of corporations being motivated by personal gain. I'd like to be different and join with people who share the same kinda thoughts."

He wanted to inspire people to be kinder to each other. Two years on his dream is being realised.

Disney: Brand Magic

It's often easier to focus on what could be better, what needs mending, so today I want to celebrate success with a brand bluepint that has delivered in every aspect. When we think Disney, we think of a hugely trusted entertainment brand. Films; Mickey Mouse; Disneyland; Disney Channel. It's more. Did you know that it owns 10 TV channels? It is a media owner as well as an advertiser. The Company employs 5 different business models to maximise revenue, delivering what customers want and advertisers need.

It has a magical positioning. For parents, it is a safe haven. No sex or violence in a world where the window of childhood innocence is fast reducing. A Saturday morning lie-in while the kids watch a film; the Sunday cinema treat; cuddling up together to read a book. To young children it’s just fun. It's “me-time” for older children. No school, homework or household chores. While grandparents see a brand they grew up with, a shared connection with grandchildren experiencing it now just as they did when they were little. Whether logging on to Disney.com or walking into a Disney store, you enter a world of magic. Of make believe.

Business-to-business relationships are strong too. Selling Disney products means quality content; higher cash margins from the price premium; extended shelf life; frequent launches; cutting edge imagery...... Field sales offices are even located next to retailer headquarters around Europe such is their commitment.

The CEO, Bob Iger, has aligned all divisions and cast members, (as staff are called), behind a single strategy. Focus has switched to fewer, bigger franchises on more platforms and with a longer merchandising tail. All divisions are nurtured to identify fresh platforms e.g. cruise ships, and new franchises e.g. Pirates of the Caribbean which started as a park ride not in Disney Studios.

This is paying dividends. High School Musical started in 2005 as a Disney Channel Film. The soundtrack was released 10 days before the TV premiere. Publishing launched a novel, then as traction grew, a complete series. Consumer Products negotiated licences. 7.5m DVDs were sold. Parks held rallies. Theatricals created school and professional stage productions. The Ice Tour followed, then High School Musical 2. The crowning jewel, High School Musical 3 finally premiered at cinemas in Autumn 2008 to great applause.

What started as a $4m investment became a $500m+ franchise, even before the High School Musical 3 premiere. $125 for every $1 of initial investment. The financial rewards when brand and business operations work in harmony are high indeed.

Brand Essence in Just 6 Words

It is hard to write a story in 6 words but Ernest Hemmingway did. "For sale: baby shoes, never worn." A powerful sentence isn't it? It instantly creates a myriad of images and emotions in our minds. If I say "Maiden voyage....iceberg....not enough lifeboats.", you know I mean Titanic. The 6 word story has become a bit of a phenomenon with magazines like Smith and Wired encouraging people to write their 6 word life story and share it.

Why don't we apply the same principle to brands? Can you write your brand story in 6 words? It's a good test of how clear and unique the positioning really is against the background noise. I've had a go at three. Is Starbucks instantly recognisable from the words "Third place between home and work" or McDonalds from "The fastest burger anywhere on earth"? Can you name this brand just from 6 words? "Mint with a hole. Fresh breath." We live in times of overwhelming choice and little differentiation. Weaker brands are increasingly vulnerable - think Robertsons Jam. To get on the shortlist, to swing the vote as the wallet is opened, means having a clear brand story present in your customer's head.

Have a go at writing the 6 words which best sum up your brand or a brand you work on. How easy was it? Did the results surprise you? Might your competitor say the same? Would customers recognise you, and you alone? It's a revealing exercise. I'm not sure that McDonalds wants to be "the fastest burger anywhere on earth". But in my head it is. No mention of quality. But accessible and fast. Given the description some might say Burger King, but I'm betting more people would say McDonalds and that's not a bad place to be. Every brand has a 6 word story. What's yours?

This idea is now available to download from SlideShare as a powerpoint presentation.

When Premium Doesn't Mean Better

In a pre-Christmas blind tasting by Which, Netto mince pies scored better than Harrods, Waitrose and Sainsburys. At £1.19 for 6, you can buy 30 Netto pies for the price of 6 in Harrods. Enough for a party...and you needn't need worry what your guests might say. The test, among 150 people scored for appearance, taste and aroma; and showed that Netto isn't a nice anomaly. Aldi and Tesco pies got the same score. As did Mr Kipling and Co-op. Nor is this change in the natural order confined to mince pies. A £30 M&S made-to-measure shirt beat Savile Row's finest (RSP £165.90).

Shoppers assume that premium is functionally better, paying extra for emotional reasons, but justifying it on functional grounds. It is better quality, will last longer. If premium isn't functionally superior in ways that matter, shoppers will struggle to justify the extra cost on emotion alone. Do the "mince pie test" in your category. Do the premium products represent good value? How can you amend your strategy to attack/defend as necessary? Most people, it seems, don't want brandy and nuts in their mince pies.

Great Customer Service: If Not Now, When?

I fell in love with a dress in Monsoon and pair of shoes in Office. My dilemma...did the hues of cobalt blue match? The Office shop assistant accompanied me, shoes in hand, to Monsoon to find out. I have now told everyone how wonderful Office customer service is and how much they impressed me.

Contrast this with my bank, NatWest. Despite credit crunch and bail out headlines I've heard nothing. Just the usual statements. Oh, and a TV ad saying they could save me money if I cancelled my gym membership. We have just experienced the biggest stock market crash in living memory. Trust in financial brands is at an all time low. Why are they sticking with the old model?
What would it take for them to change the way they communicate with me? Why didn't they call me with personally tailored advice? They have my contact details; income; regular outgoings - information most companies would pay handsomely for. Meanwhile Martin Lewis, “the money saving expert”, is getting lots of media exposure, positioning himself in exactly this space. A space left by financial brands that didn't respond when and how customers needed them to.

As long as brands transmit messages which conflict with actual customer experiences, marketing budgets will deliver low returns. People will tell their stories to friends, family and 50 million people on the web....and people believe people more than they believe TV ads. Brands sticking with the old way of doing things, even now, as everything changes around them, risk being left behind. Customers will see that if great customer service isn't forthcoming under these conditions, then it never will be. They won't tell you, they will tell each other...and no brand promise can recover from that.

So tomorrow, or some time this week, take the journey that your customer takes. Take it anonymously and experience it as your customer experiences it. What did you find? I hope it is an experience that you would willingly share, one that you are proud of.

Jobs aren't for life. Neither are brands.

Every UK high street has a newly empty retail outlet for rent. It still bears the familiar red Woolworths banner and hastily pencilled goodbye note from now redundant staff to the all too few customers. It’s a brand we grew up with, and it has gone.

Jobs aren’t for life anymore. Neither it seems are brands. We no longer expect to serve our whole career in the same company and bid fond farewells, gold watch in hand. Maybe times are changing for brands too now. 2008 showed that even very established brands fail when competitive edge becomes hazy and debt rises too high. The warning signs were there, we just didn't heed them. Word spreads faster in the new economy. Falls from grace will likely be more commonplace, and when they happen they will happen quickly.

John Gerzema points out a real issue in his book, The Brand Bubble. Stock markets place ever increasing value on the intangible element of brands. Tracking metrics show that consumers are placing less value on these same brands. Less trust. Less respect. Less differentiation. This has big implications across all markets. For service providers, manufacturers and retailers. Shareholders and pension funds. CEOs, FDs and marketers. Is it time to put the branded business model in for an MOT?