Talk about a crowded category. It is tough to chew through all the options. How do you choose a gum brand? It is a rare product where price is not really a consideration. Let’s face it. Gum is a commodity. I would rather be a bottled water brand manager. When I walk up to the “wall of gum” in a convenience store I just grab what is convenient. Brand name, type of packaging, colours, logos, flavour, brand owner…none of it matters. But I do have a differentiating idea. Look for it after I prove my point of commoditization with these photos…
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And how about this proprietary content?…
I was born in 1965 in Winnipeg, Manitoba. That sentence reads like a dual confession and I have one more to share before this is over but we will get to that shortly. Any how, from the 1960’s to 1990’s, wine took a backseat to beer and spirits in Canada. In Manitoba, Old Vienna beer and any rye brand dominated for decades. When wine did grace the table or flowed at a party, invariably it was Black Tower, Blue Nun, or Baby Duck.
Black Tower suggested Teutonic dominance with its once clay bottles. Blue Nun had a pleasing name and label that implied organized religion had blessed your choice. Baby Duck was hugely successful. It sold 8 million bottles in 1973 alone. The name prompted many imitators. In the 1970’s, you could buy Canada Duck, Love-A-Duck, Kool Duck, Daddy Duck, and Fuddle Duck (say this last one three times fast). One brand even tried a poorly thought-out deviation and went by the name of Cold Turkey.
With all due deference to Black Tower, Blue Nun, and Baby Duck, they were outclassed by a fourth powerhouse. Do me a favour. Close your eyes. Now picture a wine bottle unlike the standard. In this one, the 750ml of wine was contained in a squat teardrop shape. Remember it? I am speaking of Mateus. Following consumption that bottle often housed a succession of candles in its tapered neck. Waxes of different colours would run together in pleasing collages. In Manitoba, drinking Mateus and displaying the empty bottle as part of your household decorating suggested European refinement at its best (I am not joking).
Now take a break and allow yourself an eye-roll or laugh. Everyone pokes fun at Mateus. They attack the quality of the wine and claim in a self-deprecating way just how silly they were to ever drink it in the first place. Still, this indicates a fond nostalgia that the brand has never capitalized on. In its heyday, Mateus sold 4 million cases annually in the United States alone. The wine’s owner, Sogrape, now makes less than 2 million cases a year in total. This, to me, is a huge opportunity.
How do you differentiate a law firm?
What makes an ad agency relevant?
How can you tell one accounting firm from another?
Can brand-building really help a consulting firm win more business?
The business of professional services is to take away problems and to capture benefits. This is why they exist. This applies law firms, consultancies, advertising agencies, architects, wealth management or private banking services, creative agencies, and accounting firms. If they do it right they are rewarded with long-term, mutually beneficial relationships.
Professional services are fascinating and offer amazing lessons in strategy and management for businesses in any industry. In fact, Tom Peters, management consultant and author, has said, “The professional service firm – with its obsession with clients and projects – must be the new organization model.”
Professional services are tough businesses and tough to brand. They offer intangibles that hopefully lead to tangibles and, in my professional experience, need help in branding, marketing and business development.
Professional Service Essence
Whether it be a consulting, accounting, law, advertising or architecture firm, common characteristics apply. Each involves a specialty that demands highly talented people (who can be highly demanding). Most firms also share the pursuit of a new and big idea that can be repeatable and trainable to efficiently and effectively grow revenue. And though their services are offered to a broad spectrum of clients, they must be delivered in a customized manner through high levels of face-to-face interaction.
The essence of professional services is that they prepare clients for the future, preempt the undesirable, control what can be controlled, and identify new opportunities.
Based on these commonalities, firms tend to share the same business model. They often rely on the notion of leverage in organizational design for profitability, structure and process, and career path strategies. They quickly develop the posture of being either a hunter or farmer. Then they endlessly debate how best to go to market and usually arrive at an unnecessarily complex matrix involving some combination of service, geography, industry, and/or client segmentation. This means they end up boring the market because they are talking to themselves.
The vast majority of firms are challenged to define their own strategy. Firms are dominated by those who react to any opportunity and any expression of interest from a prospective client, making them quite willing to deviate from “strategy.” Or they chase management and service fads. Or they bluntly apply defined service offerings to a broad range of client business problems, epitomizing the maxim, “If you only have a hammer, everything looks like a nail.”
This article originally appeared in The Globe and Mail.
It works for Canada Goose, but how far can ‘made in Canada’ go? by Shelley White
Sun, sand and surf are not three things we’re internationally renowned for in Canada. Yet one of our hottest exports of the moment is Shan, a line of chic, high-end resort and swimwear that is designed and manufactured entirely in Laval, Que.
In addition to flagship stores in Montreal and Toronto, Shan has boutiques in Miami and the Hamptons, and 65 per cent of its revenue comes from the 30-odd countries it ships to, says Jean-François Sigouin, vice-president at Shan.
Shan is a line of high-end resort and swimwear that is designed and manufactured in Laval, Que., which allows it to retain full control over its product. As 65 per cent of its revenue comes from abroad, the “Made in Canada” brand works for the company because its international buyers recognize that to mean quality, the company says.
The suits aren’t cheap – they run about $300 each – but that’s sort of the point, says Mr. Sigouin.
“The philosophy of the brand is to offer quality instead of quantity,” he says. By manufacturing in Laval instead of overseas, the company has full control over its product. “We are totally vertically integrated from the design to production to retail because we have everything in the same building.”
When you meet someone for the first time or reconnect with an old friend or go to a dinner party what takes place? Think of any situation where you are interacting with others. We share an anecdote from our day at the dinner party. We tell that old friend about what has taken place with our family and career. We attempt to connect with someone new by conveying our experiences and interests. This does not mean listing or dating activities. In every instance we use storytelling to communicate, engage, and relate.
Storytelling helps us make sense of our lives and the world around us. They are an incredibly effective method of finding and sharing meaning and context. Mary Catherine Bateson, writer and cultural anthropologist, believes that, “The human species thinks in metaphors and learns through stories.” We are hardwired for stories because we have been telling them for centuries.
Marketing and advertising practitioners continue to debate the application of storytelling in business. The most voracious advocates cannot see past the construct and even the hardiest critics employ storytelling. So why all this sharing of tales? Stories inspire and motivate. Stories make ideas stick. Stories persuade. Stories educate and entertain. That makes for good marketing.
A few years back at the Festival of Creativity in Cannes I had the pleasure of interviewing Arianna Huffington, Co-founder and Editor-in-Chief, of The Huffington Post. It was also a challenge as her handlers held me to just three questions. She once said, “People think in stories, not statistics, and marketers need to be master storytellers.”
Years ago I spoke at a conference focused on crafting association business strategies. This was in the late nineties while in the Marketing and Customer Management Practice at PW (now PwC). My work to that point focused on professional service businesses and consumer products. To tell the truth I was filling in for a colleague who fell ill.
The presentation went well but it was the conversations following that stuck with me. In short, I was rocked by the complexities of the industry and the challenges faced by these entities. Associations have always been “up against it”. All share certain issues. After working with four associations in the past two years, we have discovered the following:
Cost Not a Benefit: in many cases, members join to maintain accreditation or there is a penalty for not keeping membership but not necessarily claimable upsides.
The “Nonprofit” Label: it suggests a softer culture, less talented employees than the private sector (but stronger than the public sector!), and lack of depth and sophistication in leadership, management and planning. Let me be clear…this is perception not reality.
Overlap: one only has to look at the marketing and advertising industry to see that an agency in the United States could belong to easily over twenty different associations. Imagine being a retailer or in healthcare and that number is many times higher. This makes it important for associations to differentiate. When you think about it associations are competing against every other association out there and be held to the standards of the best. Also note there are associations for every conceivable group in the world…there are even several associations for associations!
Advertising agency office design has always fascinated. Even before joining the industry I interacted with agencies and appreciated the creative effort to dress up their workplaces. Office design is a complex puzzle of practicality, utility, image, productivity, and more. The intended result in the case of advertising agencies is to communicate the brand and culture of the business.
I have been involved in the design and decorating of six agency office spaces. These required attention to layout, spaciousness, flow, natural light, sound control, collaborative spaces, and break facilities. Unfortunately, individual work areas often get short-changed to accommodate a certain desired impact.
Ironically there is precious little differentiation among competing agencies when it comes to office design. I have been in over 100 offices of various advertising, branding, public relations, digital and media agencies. Based on my observations I can conclude they are not immune to trends and these trends force them to look the same.
Sadly too many agency office designs have one imperative…impress the client who may visit once a quarter for a few hours. As you can imagine, this will comes at the expense of employees who spend 60+ hours a week in the space. Office design is an opportunity to tell an agency’s story but a few macro trends are driving a lack of differentiation.
Look Like a Restaurant
I have done a few double-takes when entering an agency office. In some cases I thought I was on the wrong floor in the wrong building. Tons of agencies are striving to look like a high-end restaurant, a hip lounge, pub, coffee bar, summer patio or all of the above. A designer told me this directive originated from agency leaders who believed the millennial workforce wanted to be in a bar at all times. I am not talking about just the office kitchen or eating area. This design dominates the entire space. It also has a productivity factor…it is employed so the staff do not leave for a bite or drink offsite. Staff should be encouraged to get out, observe, and interact with people who may buy their client’s brands.
In the Mad Men television series, Harry Crane of Sterling Cooper helps out Paul Kinsey, a former colleague. Kinsey lost his copywriting position at the agency and went on to successively fail at McCann, Y&R, K&E, and B&B before going in-house at grocer A&P. When that didn’t work out he joined the Hare Krishna.
Crane is largely an unsympathetic person but he shows empathy for Kinsey. Crane says to Peggy Olson, “Don’t you know how lucky we are?” Crane cannot believe his own good fortune in the agency world. This episode and much of the series examines those in advertising who make it and those who do not. Mad Men beats up the profession while simultaneously aggrandizing the ad world.
The show profiled tensions and issues that persist to this day. A big one is employee morale. CampaignUS recently shone the light on growing unhappiness. On October 24, 2016 they published their 2nd Annual Morale Survey.
It found that nearly half of agency employees suffer from poor morale. Forty-seven percent of employees rated their morale as either “low” (31%) or “dangerously low” (16%). That is up 36% from the previous year. As alarming is the fact that 63% of those claiming poor morale were actively job-hunting. One assumes that means not switching to another agency.
On the same day (a cool coincidence) Advertising Age published an article titled, These Are the 50 Companies Creatives Would ‘Kill to Work for Full Time’. It covered the survey conducted by Working Not Working. Twenty-four of the fifty companies identified were not agencies.
Creative folks would much rather be at Vice, Spotify, Tesla, National Geographic, or Nike over McCann, JWT, Leo Burnett, Y&R, or Ogilvy.
It is that time again. We are happy to share our annual business books picks. Welcome to the 9th edition of the Top-Drawer Business Books of 2016. Too many business book lists are narrow in definition. Our list is less traditional and duplicative to others. That is why it includes, and is sometimes dominated by, books not categorized purely as “business”.
We always avoid books promising four-hour workweeks because they are fables, over-simplified and prescriptive how-to works that are vacuous and dangerous, and so-called inspirational books that are trite, lite and ineffectual. These are all tossed aside when one experiences the blunt adversities found in actual commerce.
There are no shortcuts or magic panaceas in business. We have to do the work even when reading. As John Locke stated, “Reading furnishes the mind only with materials of knowledge; it is thinking that makes what we read ours.” We encourage you to read the selections here and make the knowledge yours.
The list includes books released in 2016 that are top-of-mind, notable, relevant, well written, applicable, thought-provoking, and innovative. Our last bit of criteria makes the selections tougher to determine and that is timelessness of content. We love sharing the Top-Drawer list because so much of success in business is predicated on great storytelling and these selections exemplify that skill.
This year 13 make our list, 4 more than last year, and are presented in no particular order. For the first time, fiction efforts are included for the amazing lessons they carry if one is open to the education. For fun, we have included a separate list of 8 timeless business novels.
Remember, life is too short to drink cheap scotch or to read books that are not Top-Drawer. So keep these selections within easy reach for repeated reference. Access the list here, topdrawer2016final.