Archive for the ‘Positioning & Differentiation’ Category

Taking an Agency kicking and screaming into Digital

Thursday, December 24th, 2009
No web for me!

No web for me!

About 9 months ago, I decided to take my small agency down the dark unknown digital road.  At around the same time, quite by accident, I hired someone who had studied web design and communications.  Aisha had been hired predominantly for her old media, graphic design skills.  Her arrival meant that for the first time we had someone who could not only build a website but also answer our silly web questions.  If she did not know the answer, she didn’t give us bs.  She researched it and came back with an answer.

She has been aided and abetted by another Pepper staffer, let’s call her Q (because that’s her name), who blogged in a previous life.  For a small agency with limited resources this was a bold move.  2/13’s of our agency manpower spending most of their time on a market that does not yet exist.

Consider the context of how bold it was:

  • Traditional Media is 99.9% of our revenue
  • Most clients treat a website as a billboard/call card at best
  • We have not really figured out how to charge for digital works/conversely clients are not comfortable about what they are willing to pay
  • While you can measure ROI on digital, getting people to the web takes time to drive them to your site or Facebook fan page.  There’s no light switch here.
  • The Digital Space needs a dedicated nanny on the client side (so more head count or re-training)
  • And the ever popular resistance to change (internally and on the client side)

So why am I so convinced that we’re on the right track?

  • Because I have always known that you have to go where your customers go.
  • Because a good website is no longer optional
  • Because traditional media is so diluted that it’s losing its efficacy
  • Because people are living on the net and on their mobile phone (and I’m not just talking about 15 years olds here)

What do we have to show for our investment in digital?

  • One major client is now re-launching their website.  Most importantly, it has cemented our relationship with them because we are servicing their traditional and new media needs (so client comfort has increased)
  • Another major client is now calling us for urgent web based action after nine months of us telling them they needed to jump on board yesterday
  • We’re working on or completed 5 website projects; including our own Pepper Website makeover
  • We have 4 more website proposals pending a decision
  • And our biggie: We have started blogging, recently celebrating our 100th blog post.  Now when we talk to clients about blogging we talk with some experience under our belt
  • E-mail signatures are a regular feature in Pepper’s communications and that of our clients
  • We’ve started to use mobile marketing and mass e-mailing for clients with a database

So we believe we’re on the right track.  There is ample research (not done in Trinidad admittedly) that proves the power of word of mouth.  The web is word of mouth on steroids.  Tiger would not have been in the trouble he’s in if he was the Tiger of the 60’s.  The web is instant and its reach is limitless and its incremental cost is not even one golf ball.  Big agencies will buy a digital agency and buy the knowledge.  We’re learning the slow painful way.

Loblaws: Supermarket to Superwarehouse

Tuesday, November 24th, 2009

I’m walking through a Loblaws Supermarket in Toronto yesterday and started thinking; “This is not an efficient way to sell stuff”. And this led me to thinking that 20 years or less from now, we’ll look back at how people used to shop for weekly sustenance.  This Loblaws store is huge with; high ceilings, wide isles, fresh fish, a pharmacy, a bakery and was one of the first to offer self check out.  All of this costs a lot of money to install and maintain and I have not as yet mentioned stock evaporation (aka shoplifting; one chain in T&T I know budgets 1 % of gross sales, so it has become a planned item)  In spite of all of this at

Supermarket or Superwarehouse?

Supermarket or Superwarehouse?

Loblaws, the experience is pretty blah.  You have thousands of choices but the experience is ordinary.  It could be that I caught them on their recovery day after the weekend crowds.  But I don’t think that’s the problem. 

For me, Loblaws (and Hilo and Tru Valu) has two choices.  Make a quantum leap on the quality of the customer experience or forget to pretend that you are offering any experience at all and become a super warehouse with much lower overheads.

On the first suggestion, they can improve the customer experience by thinking more about the end use of what they sell.  So a chef and chefettes (chefs in training) would replace some of the existing job positions.  There would be chef equivalents in other main grocery areas like Cleaning and Personal Care.  Hostesses will roam the store and also serve as shelf packers.  They won’t just help you find stuff but also help you think through how to make your kids lunch kit more interesting.  The supermarket team will be re-engineered to deliver an experience to die for.  Where will the money come from to pay them?  It will come from a rationalization of the existing positions that have stopped adding value or who are under performing.

As for the Superwarehouse, here’s how it will work.  You’ll go on your computer, select your shopping list, add to cart and then indicate if its pick up or delivery.  After a while it will take you less and less time as you basically buy the same things in the same cycle.  Then the only experience you’ll need is reliability and accuracy. The Superwarehouse can be super efficient by tracking customer purchases by item and adds up all customers’ orders which comes to the warehouse just in time.  They can add some extras based on an items past sales performance, for those customers who are new to the area. 

Spending all that money on such a beautiful Loblaws store and not giving a beautiful experience is not sustainable.  Someone is going to figure it out sooner than later and my bet is that the Superwarehouse is likely to be the answer.

Loblaws 1985 commercial

Galco’s Soda Pop- Bubbles of Passion

Wednesday, November 11th, 2009

Oh, thank the heavens that they still exist.  People with Passion.  People who exude passion so deeply that it’s just contagious and with barely any soapbox dramatics, they’ve got a whole bunch of tribe of people behind them. 

As you watch this video about John Nese and his 500 brand Soda pop store, Galco’s, two things will become very clear:

  • this man LOVES what he does and clearly knows his product
  • isn’t willing to sacrifice his passion for a sale.

Thanks Heavens!

“Set yourself apart and provide your customers with something that NO ONE else has.”  -  John Nese

Rituals brings Jamaican staple to Trinidad

Wednesday, November 11th, 2009
Photo taken from Ritual website

Rituals

It had to happen.  Someone had to see the potential goldmine of bringing Jamaica’s version of Doubles to Trinidad.  Just as many Trinis see Doubles as a daily staple, it’s the same way Jamaicans see their patented Patty. Well, Mario Sabga Aboud, the Sam Walton of ‘ready to eat and drink retail in T&T’, has chosen his Rituals chain to pedal the pride of Jamaica.  And from my observations it may not be doing too well.  I think there may both be a price and an experience issue.  

Trini consumers, like any other consumers, have a price range that they are prepared to pay for a beef pie.  And, with respect, that is what a patty essentially is: a beef pie. The iconic Tina pie on Tragarete Road, for example, fetches $3TT (or less than 50¢US) and if you bought the local version of a premium beef pie in Linda’s, you pay about $6TT ($1US).  A Tastee patty in Jamaica goes for about US $1 and it is widely available at more than 30 outlets.  Of course there are other brands, so patties are always within a breath of desire.

(Patties have, according to anecdotal evidence, been outperforming other fast-food operations in Jamaica because they are cheaper at about $100 Jam ($1US) for a meat-filled pastry, which is often consumed as a midday meal. -Jamaica Gleaner, August 2009)

Photo taken from Wikipedia

Photo taken from Wikipedia

So at $12TT ($1.90US) a pop for a patty at Rituals, twice the price of what Jamaicans pay, one wonders if Mr. Sabga Aboud has over estimated patties ‘travel-ability’ and value to Trinis.  Ah mean to say, would Jamaicans pay more for a doubles than they pay for a patty? (Using a similar mark-up, doubles would sell for $127JAM, compared to $100JAM for a patty)  I admit I’m not comparing apples and apples, because Rituals offer an experience including, free Wi-Fi and sofas that swallow you.

The Starbucks Experience

So does the Rituals experience make up for the wonky pricing?  Well that’s the million dollar question that Starbucks are now trying their best to answer.  And customers have already answered with a resounding no.  If you are marketing any product, you must understand where customers peg price and value.  That is, the price that you cannot cross if you don’t want to lose them in droves.  Starbucks lost their way when they did not focus on developing its “3rd place standing” in its customer’s lives- the place to go for some ‘solace’ outside of home and work. People were prepared to pay $4US for a latte because of the experience.  Baristas that not only knew my name but also remembered that I have this quirky ritual of adding some cold water to top off my hot brew.  Anyway, back to T&T, I think a $12TT beef pie, aka Tastee Patty, sold at Rituals crosses the line.  And no amount of customer experience sweeteners can make up for that.

The Rituals Experience

And that brings me to the Rituals’ experience.  I have not seen a material difference between the Rituals associate and their KFC, Pizza Boys or Papa John’s counterpart. So, apart from the physical benefits (wi-fi and the sofas mainly), the most important part of the experience, the people who serve, is largely unspectacular and undifferentiated.  So free wi-fi and comfy sofas do not mask ordinary service and high prices.

Chiller Winner

So why is Rituals always full (or at least some of them)?  I think their Chillers are their savior.  They have gotten it right with this product in terms of the price/value relationship to customers.  And thus far, they are the only game in town.  Like their Chiller, their Tastee patties are also the only game in town, but they have not gotten the pricing right.  Maybe they need to talk to their Jamaican franchisors about making the product right here in T&T, in store, then they might get it right and the customer experience will be enhanced by the aroma of freshly baked patties. KFC figured out what aroma can do for your sales a long time ago.

Are you untouchable?

Monday, October 26th, 2009

I’ve been reading an article in the New York Times titled “The Untouchables”  which basically talks about how you must stay ahead of the curve to remain competitive in the labour market. So what differentiates you from others in your industry or workplace? Are you easily substitutable or irreplaceable?  

are you a star?

are you a star?

The same principle could be applied to your company’s products and services. Is your offering any different from a competitor’s? How are you positioned in the marketplace? Is your marketing strategy differentiated and sustainable?

Many organizations have sought to answer that question by employing social media along with traditional marketing.

Social media is redefining the way we market to customers and business prospects. Major brands are increasingly using blogs, Facebook, Twitter and other online tools to reach customers in a deeper, more engaging and cost-effective manner than traditional advertising allows. How are you embracing social media?

Are you effectively communicating your message across both traditional and social media?

To help you answer these questions, here is some advice.

  • Continuously improve your knowledge, skills and abilities
  • Differentiate your product or service to ensure you have a sustainable competitive advantage
  • Your message should be focused, compelling, credible, engaging and relevant to your target audience and not just wallpaper
  • Embrace new media; the world is going digital faster that you imagine

In these challenging times, we ought to evaluate what would help us survive and rise above the rest. So what’s your one thing? Could you summarize your personal brand or say what you do in 30 seconds or less?

Differentiation: Vanilla or Chocolate Macadamia?

Sunday, October 25th, 2009

Ice Cream Whipped Cream Cherry on Top

In a world in which more and more average work can be done by a computer, robot or talented foreigner faster, cheaper “and just as well,” vanilla does not cut it anymore. It’s all about what chocolate sauce, whipped cream and cherry you can put on top.
- Daniel Pink, the author of  A Whole New Mind

When the boss and her hr manager and CFO are sitting late on a Friday afternoon trying to figure our who to keep and who to let go, what side of the pink slip divide would you be on? Are you an untouchable? And when the promotions and raises start coming again, will your name be called?

We all know that many of those Friday meetings have taken place where favoritism had some sway. Unfortunately there will always be some measure of this ism. However, because it’s now about survival, captains are picking their best teams. What will be said about you when your name is called. Allow me to offer up some qualities you should have under your belt.

  • Excellent skills and qualifications in your field (Qualifier)
  • Leadership (You take charge of a situation and don’t wait for orders from above)
  • Emotional intelligence (You contribute positively to the the social body called ‘the office’)
  • You’re passionate about what you do and where you work (You are engaged and engaging)
  • You take ownership (You occupy the top rung on the accountability ladder, the opposite of the bottom rung where you blame everyone and everything else but yourself for outcomes)
  • You deliver results (Reliable performer who does not have to be micro-managed)
  • High Productivity (Including punctuality and attendance record; just like they marked us at school)

There are parallels for service companies (like ad agencies) here, if they want to survive and keep their clients. So are you vanilla or working for a vanilla company? Or are you and your company Chocolate Macadamia? If not, do yourself a flavor. (by dr)

Go where your customers are…

Wednesday, October 21st, 2009

Scorch Magazine, Issue 15, Friskies ad Scorch Magazine, Issue 15I’m leafing through the Scorch October edition and I run into a Friskies ad. Now let me say up front that I know zero about pets, their needs, their likes and their owners’ buying habits. Yet I was very surprised to see Friskies in the same company as Zen, Zanzibar and Sweat Rice.

I figured the Friskies buyer would be a female skewed or male metro sexual 35 and over with discretionary income to burn. I pegged the Scorch reader a bit younger (say 25 max?) and who are more interested in putting a tattoo of a cat on their ankle than feeding one.

So I consulted with good old Google and found this from a US 2007 AC Nielsen study:

Shopper demographics and future trends

In terms of shopper demographics, younger (age 35-44) females are driving sales within the mass merchandisers, supercenters and grocery, while older females (age 55-65+) dominate the drug channel. Warehouse clubs excel among households with discretionary income to spend, followed by the grocery channel.

Cat food purchasing has increased among those shoppers 65 years and over, as cats may be easier for seniors to care for and feed. ACNielsen notes that the aging population provides opportunities that are long term. This demographic will likely impact store sizes and formats, growth of functional foods, package technology and size, and advertising copy and spending. There exists an opportunity for “generation” marketing.

So while I know we are in the United Islands of T&T and not the US, I still believe that there are not too many Scorch readers lining up to buy Friskies. So I must be missing something. Because Friskies = Purina = Nestlé = Marketing Gurus

So I have to believe that there must be a move to encourage younger people to like cats and this will mean they have to buy Friskies cat food. Like how Nestlé targeted youth with cold coffee in T&T, because only older people drank coffee. This didn’t work some years ago, so they are trying again. The Nestlé cold coffee is also advertised in Scorch. Or maybe Scorch gave them a buy one get one free and they paid for the Nestlé Iced Coffee ad.

Give me a Harry Potter and a Barbecue Pit

Tuesday, October 20th, 2009

harryI worked at KFC for eight years and one of the key skills they train associates on is up selling. So when you order a 2 pc and fries the team member behind the cashier should smile and ask you Would you be having a “corn on the cob” today with that Maam?

You see there are 2 things that retailers live by; Transactions and Ticket Average (the size of your purchase) They drive you into their store (transactions) through high investments in media and with product news and then once you get there they try to shake every thing they can out of your pockets. In a nice way, of course. Because they also know that the experience you have with them is more important than anything else.

Wal-mart treads on Amazon’s turf – eCommerce

WalmartSo that Wal-Mart is now going after Amazon’s transactions does not surprise me. The battle is on; Wal-Mart is taking off its gloves and taking on the titans of the online experience, the great Amazon. These Wal-Mart guys keep reinventing themselves and keep innovating, never happy with just winning, they want to annihilate. So they bring you in for the book and up sell you to the Barbecue Pit with a built in stainless steel, frost free refrigerator.

Industry analysts suggested that slashing prices on just 10 titles won’t make much of a dent to the massive Wal-Mart’s bottom line. “If Wal-Mart can use them to get people into the [online] store as a sort of loss leader, they can start selling them other higher margin products,” Mr. Froman an industry analyst said recently. “Wal-Mart is essentially using it to build a database of online customers … Wal-Mart is doing it to make a strong play in the online space.”

They picked up this habit of taking ideas from others from their founder Sam Walton. “I probably have traveled and walked into more variety stores than anybody in America. I am just trying to get ideas, any kind of ideas that will help our company. Most of us don’t invent ideas. We take the best ideas from someone else”, he has been quoted as saying.

Will Amazon still rule The Get-anything-online?

AmazonSo with Wal-Mart stepping up from bricks to clicks is Amazon going to disappear? I think not. I see a parallel between McD’s McCafe and Starbucks. I was in NY recently and visited a McCafe. The McCafe TV ads comprehensively over promise. It really should have been called McCafeteria. Very unremarkable. By contrast I visited Starbucks several times and I don‘t even drink coffee regularly. The Pumpkin latte and scone got me a few times and the experience sealed the deal. No one, no matter if their name is Sam Walton can be a master of all trades McD makes a decent burger the same way every time in fairly clean and comfortable surroundings. Trying to position themselves as an oasis, the 3rd place you go to, nah!

So Amazon will not die. In fact, they will get better at what they do. Competition is good that way. And they have had a jump start of several years to play in the online pond. I’m betting they are going to keep on swimming all the way to the bank.