Palessi is an Indictment of Our Times

You may have seen this clever, compelling, and creative campaign from Payless, the discount shoe chain. Payless took over a former Armani store in a Santa Monica mall. The chain stocked it with an array of their $19.99 pumps and $39.99 boots. Then they invited groups of so-called “Influencers” to the grand opening of the faux retail brand, “Palessi”.

The event attracted tons of media…

AdWeek:Payless Opened a Fake Luxury Store, ‘Palessi,’ to See How Much People Would Pay for $20 Shoes, The answer? A hell of a lot

CNN:Payless dupes fashion influencers into buying $640 shoes

CTV News:Payless Tricks Social Media Influencers into Paying $600 for $20 shoes

Fortune:Payless Opened a Fake Luxury Store With $600 Shoes

USA Today: Payless marked up discount shoes to $600 at luxury event ‘Palessi’    

AdWeek reported, “Party goers, having no idea they were looking at discount staples from the mall scene, said they’d pay hundreds of dollars for the stylish shoes, praising the look, materials and workmanship. Top offer: $640, which translates to an 1,800 percent markup, and Palessi sold about $3,000 worth of product in the first few hours of the stunt.”

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Hiring the Right CMO

It has been called the most dangerous title in business and many pundits have suggested it does not work and should be banished. No role in the last fifteen years has been scrutinized and debated more than the Chief Marketing Officer. Businesses have struggled with the title and role since it was first coined not too long ago.

I remember working in Price Waterhouse’s Marketing and Customer Management practice when I first saw it referenced in the mid 1990’s. I think I danced a nerdy marketing jig. My excitement was shared by marketing practitioners who long thought our services were poorly understood, inaccurately recognized, and under valued.

The hope was this executive position would set the record straight and have uber impact within a business. What happened and continues to take place are huge assumptions and unrealistic expectations placed on the CMO that almost always result in disappointment. Of course, I have seen situations and models work but I have witnessed many more fail.

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Ad Agency Survival: Obsess About Loyalty

The company, Access Development, tracked and recorded, has shared every publicly available piece of data available concerning customer engagement and loyalty. They call it the Ultimate Collection of Loyalty Statistics. These data points, insights and themes are interesting unto themselves but add up to one big fat fact they did not note…any marketing business or agency is in the business of loyalty.

I mean advertising agencies, marketing consultancies, public relations firms, market research bureaus, digital agencies, performance marketing shops, telemarketers, brand consultancies, social media marketers, media buying services, promotional material providers, influencer and celebrity marketing 200464106-001advisors…well, you get the idea. Any agency, firm or service that is in the business of marketing exists for one purpose. Of course, this includes those prescient to be specifically in the business of loyalty marketing.

The past, present and future of marketing has and will always hinge on loyalty. No company wants a one-time customer. Even businesses selling bomb shelters in the 1950’s wanted a client’s second home or to upgrade the first. Apple wants to sell customers a new cellphone every time there is a new release or every 22 months which is the smartphone adoption average.

Agencies and consultancies continue to talk about brand positioning, awareness, consideration and trial. Important stuff for sure but only the start. All efforts and spend should have loyalty as the end goal. Anything else is a dodge, a feint, a run from the real focus and fight.

Not one single advertising agency, brand consultancy, PR firm, media buyer is really talking about loyalty.

I see not one single advertising agency, brand consultancy, PR firm, media buyer talking about loyalty. This leads to churn, inefficiency, ineffectiveness and the regurgitation of the same ideas whose only result is a client’s frustration and dissatisfaction…and poor results.

Why spend money on branding and advertising if not to have repeat customers?

Let me say it again, no company wants a one-time customer. That is why marketing’s purpose is loyalty. You only need to give a cursory examination of Access Development’s aggregation to arrive at the same conclusion. We thank them for the following…and for also proving loyalty programs are a tactic not a strategy.

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The Branding Cannabis Series…#1

Welcome to the first in a series of three papers on Cannabis Branding.

It is as if the Gold Rush and the end of Prohibition crossed paths. The legalization of recreational cannabis use includes Nevada, Oregon, Vermont, and Washington, the District of Columbia, and the Northern Mariana Islands, with all but Vermont and D.C. permitting its commercial sale. On October 17, 2018, Canada legalized recreational use from coast-to-coast.

If I can provide another historic reference, this has produced a Wild West when it comes to the branding and marketing of businesses in the blooming and growing cannabis industry. Policy makers can’t keep up with the ramifications. Everyone is confused about what can be said, how they say it and to whom.

This messiness is going to have long-term impact on how the industry is viewed and perceived. Further, the mostly juvenile attempts at branding cannabis-related companies has everyone veering into Cheech and Chong territory with an overuse of green leaves and big buds. The nascent industry is “stereotypicallying” itself to the point of comedy.

Download the paper SC_BrandingCannabis_1.

A Brand is Not a Way of Life

Recently, I met with a fashion technology startup. They are building an interesting secondhand marketplace whereby consumers can sell “lightly used” bespoke clothing. Perhaps you wore a Chanel dress once but have no call for it now or the Ralph Lauren tuxedo in the closet is gathering dust. You get the idea.

An additional service involves sending in your used expensive clothing and having it “re-imagined” by company designers. One example was a beautiful woman’s blue blouse that subsequently had one sleeve and the collar removed. These were replaced with a white lacey pattern. I must admit it looked stunning and was very unique. The company also accepts purses and bags that they will clean, restore and/or re-imagine. All in all, it is a cool concept.

Then came a very familiar probe from the founders. They told me they want to be a “lifestyle brand”. That means joining a very long list of brands with the same intent. In fact, I think every brand believes they are a lifestyle brand in some way.

Apple never claims to be anything. Ingeniously they let customers identify them in certain ways. Many suggest they are a lifestyle brand given their dominance in personal technologies. Plenty of apparel brands make the lifestyle claim especially those with a focused product set and defined market. Burton is for snowboarders, Quiksilver for surfers, Helly Hansen for sailors, Volcom for rebellious skateboarders, and Patagonia for environmentally friendly explorers.

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Retro Nostalgia

We we’re feeling nostalgic for the nostalgia of Mad Men.

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The Branding of Places

Place branding counts among the most difficult of all types of branding. Shoestring budgets and critics from all quarters put these under pressure and under scrutiny. Having worked on a handful of such engagements, I have felt both firsthand. One place brand continues to be used after more than twelve years. Chile’s “Always Surprising” was originally intended for their exports but grew into the country brand. It even ended up as stamp.

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One for my home province of Manitoba did not have the same longevity. The brand committee selected a header we named for a category of creative work rather than one of the real taglines we authored. The strategic work was fantastic, the creative incredibly sophisticated and layered around the four seasons but the public and media could not abide the tag, “Spirited Energy”. It limped along for years but never caught on. We also rebranded the government’s image and that has been in use for close to ten years. I would have bet on Manitoba doing better than Chile but it was the exact opposite.

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The Frenemies of Reading

There are a few confessions in the following paragraphs. The first is, I was a mediocre student. Prescribed reading and set curriculum fired up my rebellious nature. Unfortunately, that meant denying myself the love of reading until my twenties. When I had choice of what I wanted to read, when I wanted to read it, it became a passion.

It is hard to know for sure but I estimate that I have read over 2,000 books. Many blogs and articles state that successful executives read over 50 books a year. I am now north of age 50 so suffice it to say, that if I averaged reading 50 books a year for 30 years then I have hit 1,500. I know it is more.

But it is not quantity. And, let me be provocative, it is not quality. It is what you pull out of a beautiful page of prose and it is how tightly you have held your nose when you read a stinker. Both offer equal value, if you get my drift.

The value is in the reading. It is the practice. It is the fun. It is the discipline. It is the sense of discovery. It takes you light years beyond learning. It is fireworks of enlightenment and understanding. It is fierce debate and collective understanding. It is an unexpected tear rolling down a cheek and a surprising chuckle that you cannot control. What we read moves us, can change our minds.

Both fiction and nonfiction are powerful vehicles, extraordinary time machines, and streaking spaceships. They take us on journeys.

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Does KFC’s Marketing Work?

A press release from September 4thgot me thinking. And that is saying something, given press releases to me are an archaic form of communications. It proclaimed:

KFC is offering a college donation to the first child born on the Colonel’s birthday (Sept. 9, 2018) named Harland…. As a birthday gift from the Colonel and KFC, the first baby Harland will receive $11,000 (in honor of KFC’s 11 herbs and spices, of course!) to go towards their college education, setting them up for future success.

It got me thinking about KFC’s marketing. Is it just a series of goofy events and preposterous merchandise or is there a deeper strategy? And is any of this activity truly helping sell product? Before I answer those questions, I have a revealing confession.

I love KFC.

The brand I mean. I eat the product only once or twice a year. It is a tradition on one occasion at my namesake golf tournament, The Swystonian Institute Golf Classic. On the kick-off night, we order up more KFC than we possibly can finish, then we finish it. It tastes fantastic, but one gorge generally holds me over for the year. In my youth, it was the best damn hangover food. I treasured it cold the next day.

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Freedom 55: Canada’s Most Memorable Campaign

Wow. It is hard to believe that it has been over 30 years. In 1984, London Life Insurance Company hit on an insight through consumer research that would become part of Canadiana. It is the country’s Just Do It or Got Milk? or Reach Out and Touch Someone. London Life established the idea of Freedom 55. It resonated and led to ubiquitous TV ads that ran continuously for 25 years.

Freedom 55 is much more than a slogan or an ad because it was never intended to be. It was the insurer’s attempt, both altruistically and self-servingly, to alert Canadians to what it took to retire. And to retire well enough at a relatively young age. For the vast majority though, we now know that packing in the career at 55 is a healthy fiction. For many, 65 is a stretch.

Yet, for 25 years London Life dined out on Freedom 55 as a brand position and marketing differentiator. Then in 2012, they shifted gears and recognized both life’s and the global economy’s uncertain variables. “It has to be rooted in reality, otherwise people will disengage, and get distracted by the grandness of it all,” said Alf Goodall, SVP, Marketing at London Life.

There was, and still is, tons of goodwill in the notion of Freedom 55. No one put the blame on London Life for a rapidly unattainable goal. As Alf Goodall pointed out in 2012, “People are very willing to broaden their perception of Freedom 55. We were the ones who were trapped a little bit in its literal imagery.” This is one of those rare cases where the populace was educated and adroit enough to separate concept from hyperbole. As early as 2010, only 28% of Canadians expected to attain financial “freedom” at 66, according to Ipsos Reid.

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