Spam’s Last Marketing Frontier

What do you think of when you hear the word “Spam”? And let me clarify that I am talking about the tinned variety. We will get to intrusive communications in due course. For most of Spam’s 78-year history, the product has been disparaged and dismissed as inedible and “Something Posing As Meat” or “Scientifically Processed Animal Matter”. Yet, more than eight billion cans have been sold since Hormel launched the product in 1937.

Americans buy 113 million cans of Spam annually. This means 3.8 cans are consumed every canssecond in the United States. To keep up with demand, the slaughterhouse next to the Hormel plant in Austin, Minnesota butchers 20,000 pigs a day. So how can we reconcile what is bashed so publicly with what is bought in such mass amounts?

Spam was successful out of the gate having grabbed 18% market share in its first year of sales. By 1940, over 70% of Americans had tried Spam which on any measure is incredible. This was largely attributed to an economy still suffering from the Depression and it began Spam’s longstanding association with low-cost and frugality. Sales still spike when times are tough.

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The Real Impact of Netflix

In order to read this and have a true cathartic and life-changing experience, you must first be honest by answering these three questions:

Did you watch all seasons of Breaking Bad in less than two weeks?

Did you ever tell your significant other that you were working or working out when really you ate a bag of chips and watched The Expendables or The Devil Wears Prada (and you hid the empty bag at the bottom of the garbage)?

Did you ever watch ahead of your partner in the series Nashville or Veronica Mars but then pretended it was all new when you watched it together?

It has only been seven years since Netflix began to alter society. Now they have over 50 million subscribers in over 40 countries. Netflix and other streaming services have broken traditional business models, democratized content, and empowered consumers. It has also changed our watching habits.

93 minutes: average time watched by a Netflix subscriber per day

1 billion: number of hours per month all subscribers watch Netflix

61%: percentage of subscribers who admit to binge watching

80%: television shows account for largest percentage of all watching

88%: percentage of subscribers who watch three or more episodes of a TV show in a single day

If you answered yes to any or all of the questions at the start of this article, you are not alone. Netflix’s influence and impact is amazing and has been well covered. Sociologists have explored the sense of entitlement that results when we getnetflix-movies-expiring-jan-2014 what we want when we want it. The business press has trumpeted the bundle business model that underlines Netflix’s success.

Addiction specialists have explored binge watching relating it to drinking and taking drugs, “It’s like you’re punch drunk, and saying ‘come on feed me another one,” says Greg Dillon, professor of psychiatry at Weill Cornell Medical College. Netflix has made binging easy now. Television shows play automatically one after another. I know of several people who have watched all of Orange is the New Black in one day.

This leads to the two impacts no one has yet talked about. First up is normalization. These new (seemingly excessive) watching habits were not bragged about just a short time ago. Personally, I never came clean to anyone that I watched all seasons of Community, The Unit and Family Guy while traveling for business. Or that I have watched the movies The Rock, Predators, and Olympus Has Fallen way more than once. Read more

Brand as Religion

Years ago a study was released proving that children recognized brand logos more so than symbols of century-old religions. The McDonalds’ Golden Arches was called out more readily than the Christian cross. This made for great fodder in the press at the time with many pundits decrying the shameful state of civilization but the dismay was short-lived.

Religion of all stripes and types are horribly outspent from a media perspective by big brands and, in the case of fast food, the fervent will visit a Burger King or KFC much more often than the occasional Sunday service. Churches, 234-ronald-mcdonalds-waisynagogues and mosques have been outnumbered for decades.

Branding has always been about belonging to a club. Brands provide a vessel of perceived shared values and a homogeneity that our tribal natures desire. To put this in context I often joke about the skateboarder and snowboarder tribes asking ‘Why do they all dress the same?’ The sarcastic but accurate answer is, ‘To be different’.

In the past few years I have been exposed to the Ironman phenomena. These grueling contests see participants swim 2.4-miles (3.86 km), bike 112-miles (180.25 km) and run a 26.2-mile marathon (42.2 km). Mont Tremblant, Quebec, where I make my home, has begun hosting Ironman events making a name for itself as a mecca for triathletes (note my deliberate use of “mecca”). The area has now held several Ironmen including the North American Championship in 2014.

My wife and I have volunteered to help out several times serving as security, banquet server, and bike course monitors. We have also been happy to cheer on the sweaty competitors before we retire to our deck for a triathlon of cocktails. In all seriousness, our catbird seat has allowed for some interesting observations about Ironman or what I term an “event and achievement brand”.

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Freshly Squeezed: Lessons from the Lemonade Stand

Jeff Swystun drinks more than his share of lemonade to bring you this piece…

The dependable lemonade stand is not only an enduring summer icon but also a slice piece of trade rich with business lessons. This past summer I made a point of stopping at those I spotted. I learned that the exchange of flavored water for a few coins may appear simple but represents aspects critical to business. If you look closely the humble stand provides a mini-MBA covering funding, strategy, production, marketing, customer service and reinvestment. It all starts with thinking about the lemonade stand “industry” which is:

Fiercely competitive with low barriers to entry

Both seasonal and weather dependent

Reliant on a commodity, easily substituted product

Seemingly undifferentiated overall

Unattractive from a revenue and profit perspective

For each of these conditions, one has to tailor the business to succeed. As daunting an industry as it is this has not stopped thousands of young people from starting them up each and every summer. Here are five lessons for your children and your own enterprises.

Delight with a Superior Product

Of course, we will all part with our loose change to help out a tiny entrepreneur. But if the lemonade is tart, weak, overly sweet or thimble size we will force a smile, wish them luck and complain about the product back in our car or as lemonade-stand_5we cycle away. This reaction is no different from any other disappointing purchase. I have gone back to a stand twice if the lemonade is legitimately pleasing in taste.

A superior product differentiates, communicates care and quality, provides value in the exchange, engenders loyalty and prompts word-of-mouth.

Pick a Smart Spot

Location has always been critical to business. As a child, I ran a stand at my home in Winnipeg, Canada situated on a quiet street and later that day while dumping the warm, unsold liquid treat down the drain vowed to learn from the experience. The next time I loaded up my wagon, trundled half a mile, and set up outside the gates of The Tuxedo Golf Club. With that experience I learned another lesson – have adequate stock. My location was so good that the would-be Tiger Woods cleaned me out fast.

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Every Brand Is A Story…

Make yours a bestseller. This print campaign for our own agency was well received on Facebook and LinkedIn (it is its own mini-case study).

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Sheerly You’re Joking

Losing $67 million on a massive recall of one of your signature products is serious business. More sheer than normal products, dye leaking from some of the brightly colored pieces and other quality issues are undeniably serious.

So Lululemon Athletica Inc. has responded very seriously. Chief product officer Sheree Waterson has been let go. The company apologized to customers and investors. It changed its manufacturing and quality control processes.downwarddog-300

In short, it responded like it’s Tylenol or Toyota.

But it is not. Lululemon is a yoga lifestyle brand. Inherent in that is some degree of brevity and lightheartedness. I understand that its mission is tied to health and wellness and that it is a significant business, but let’s face it, it’s not a pharmaceutical company. Read more

Jeff on CBC Radio

RIM, Reinvention & Canadian Pride

Jeff joined the national CBC Radio program The Current with host Anna Maria Tremonte and fellow guest Tamsin McMahon, an Associate Editor at Macleans Magazine to discuss the Blackberry Brand.

Hear the interview and checkout all the coverage here…CBC/Blackberry.

Jeff thanks the CBC, Anna Maria, Idella, Vanessa, Jessica, and Tamsin for the great experience. And best of luck to Blackberry in what will be one of the more fascinating business and brand stories of the year.

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Jeff in USA Today

Jeff comments on how brands respond to a disaster in USA Today

Businesses Step Up to Aid Victims of Superstorm Sandy

by Laura Petrecca

Many businesses are helping, but those that don’t come across as sincere in their aid efforts — and appear to be usatodaynewlogocapitalizing on a tragic situation — can raise consumer ire.

November 3. 2012 – Duracell’s “Power Forward” centers give Hurricane Sandy’s electricity-less victims the chance to charge phones, as well as to grab free batteries for flashlights.

Anheuser-Busch switched a line at its Cartersville, Ga., brewery from beer to potable water to produce more than a million cans of emergency drinking water for those in need.

Lakeside Fitness Club in Oakland, N.J., offered everyone in the community warm showers, hot coffee and the ability to get some stress relief with a workout. Read more