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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Top-Drawer Business Books 2014

Welcome to the 7th edition of Top-Drawer Business Books. The listing’s tongue-in-cheek title describes books that are top-of-mind, notable, relevant, well written, practical, thought-provoking, and innovative. In short, books that are excellent and should be kept within easy reach for repeated reference.

The Top-Drawer list has always been less than traditional (or duplicative). Too many of the other best business book lists are narrow in definition and focus. As Robert Weider said, “Anyone can look for fashion in a boutique or history in a museum. The creative person looks for history in a hardware store and fashion in an airport.” That is why this list includes books not categorized as “business”.

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.” This list is built on that premise. We avoid books promising four-hour work weeks because they are fables, how-to books that are vacuous and dangerous, and the content of so-called inspirational works that are trite, ineffectual and soon tossed out when met with the blunt adversities found in actual commerce.

Life is too short to drink cheap scotch and to read books that are not ‘Top-Drawer’. This year just 9 made our list appearing in no particular order. Enjoy!

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Building a Sustainable Brand Community

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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Lessons from the Lemonade Stand

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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The Advantage of Critical Thinking

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Jeff argues that there is too much me-too marketing.

Jeff spoke at the Canadian Marketing Association’s 2014 National Convention and the presentation is now a paper. Download it here SC_SpeedKills_Paper_web. Tweets from audience members capture reaction to the content.

“A welcome call for a return to critical thinking in marketing.” Josephine Coombe

“@jeffswystun rockin it at #cmac says the ‘vast majority of businesses are mediocre’ and the pink shirt is fab!” Andrew Simon

“The majority of brands out there are mediocre. That’s why the same brands get celebrated over and over.” Kelly Mack

“It is not about speed, it is about better!” Douglas Foley

“Behind every concept, idea & challenge there is complexity. We lose the magic every time we over simplify.” Gabrielle James

“A deflated and dispirited employee base will never build anything great.” Allison Fraser

“#cmanc @jeffswystun Hallelujah! Simple and faster is not necessarily better. “Slow down to speed up”.” Brian Etking

“Thanks @jeffswystun we could not be happier at the response to your talk.” Canadian Marketing Association

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Jeff Talks Agency Strategy in Advertising Age

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What Digital Agency Clients, Staff and Lead

 

ers Say in Private
These Shops Market Themselves as Hip, but They’re Actually Pretty Old-School
By: Jeff Swystun

Digital agencies enjoy a reputation of being cool, cutting-edge and creative. They even have a bit of a bad-boy persona because they talk about challenging the status quo. Their offices are hip and their employees are hipsters. They are positioned as the future of marketing and advertising.

In the past year I have consulted to six digital agencies on branding and marketing. Between them they operate in over 12 countries, employing over 2,000. The results are revealing. First up is the dissatisfaction among employees. This cannot be attributed solely to the stereotypical millennial, because,many who shared these experiences were over 35. Comments included:

“We lecture clients about technology when our time and expense sheets are manual.”

“Fun perks promised are always sacrificed because of proposals or client work. I understand business is business, but don’t promise it if you only hand it out when convenient.” Read more

Lululemon 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

Promoters of the Unnecessary

Have you ever wondered where you can find bandaids with witty Shakespearean insults printed on them or a tongue cover that will help you swallow your pills or thumbtacks in the shape of thumbs. I suspect that these items do not appear on Wall-Mounted-T-Rex-Head-Hunter's-Trophy-2_sqyour shopping list nor would you even expect they exist.

In this world of needs and wants, these items are in their own league. They are things that we could not even dream of requiring and practically we don’t. I cannot imagine thousands of people demanded that a company produce a large T-Rex replica dinosaur trophy head to hang on a wall.

Getting ahead of the consumer has always existed in business. When asked how much research played a role in the launch of the iPad, Steve Jobs cooly replied, “None. It isn’t the consumers job to know what they want.” Of course, there big is a difference between the iPad and a designer chair shaped like female genitalia (yes, it exists). Read more