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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David’s Tea: The Brand and Business

This originally appeared in Sparksheet.

Tea is gaining grounds in North America’s coffee culture and David’s Tea is looking to expand and modernize the millennia-old industry. Jeff Swystun examines the standing power of this bold brand as it steps onto the stock exchange and transitions from niche to mass market.

The bold sign, in cheerful teal and green, draws your attention. Curious, you peak inside and are greeted by a clean, bright environment and pleasing aromas. The aisles and displays resemble a cosmetic store. The goods are presented as precious keepsakes; the packaging suggests there is an item among them uniquely for you. A fresh-faced staffer attentively waits to answer any questions.

Welcome to the new world of tea.

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David’s Tea was founded in 2008. A newcomer to the centuries old tea business, but one confident that it could make the product relevant to the modern consumer. The opportunity is great, but the company also faces significant challenges. It must convert coffee drinkers, have smart distribution, and battle a competitor with deep pockets while keeping investors happy.

The Category

Tea has been a beverage of choice for centuries, since its origins as a medicinal elixir in Shang Dynasty China. The British famously popularized tea production for the western drinker and through trade took it global. The East Indian Tea Company was so successful it became a synonym for “monopoly”.

Tom Standage, author of The World in a Glass: Six Drinks That Changed History, writes, “Englishmen around the world could drink tea, whether they were a colonial administrator in India or a London businessman. The sun never set on the British Empire—which meant that it was always teatime somewhere.”

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What’s the Story?

Telling Tales: Using Narrative Psychology in Branding

Let me tell you a story. It’s a bit about our past. A bit about our future but more importantly, it concerns what is happening right now. It is also a story that nears 2,500 words because our complex world cannot be dumbed downed, reduced to a vague tagline, summed in a 140 character tweet, or captured in an oversimplified to-do list. True learning and understanding requires time and effort so heat the kettle or uncork a bottle and enjoy. Lastly, it was a dark and stormy night…

With that compelling lead-in, we hope you will read our entire paper on the evolution of storytelling in branding and marketing. Get it here SC_Storytelling.

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Looking Back on Mad Men

Our paper originally appeared in The Agency Post, Marketing, and Sparksheet. It was also featured on Flipboard in Advertising.

As the last season winds down, Mad Men is being examined for its impact on television and its reflection of society both in the period it is set and our current day. We invite you to enjoy this work which is rife with observations, insights and images that will delight fans of the show, pop culturists, history buffs, along with all those who enjoy marketing and advertising.

Get it here … SC_LookingBackonMadMen

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Marketing’s Golden Rule

There is evidence that people enjoy a series of articles versus an advertisement. In fact, 70% say content marketing makes them feel closer to the sponsoring company, while 60% believe it helps them make better product decisions (Roper Public Affairs). This has given rise to “content marketing”. According to The Content Marketing Institute it is “an approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience — and, ultimately, to drive profitable customer action.”

What is amazing about content marketing is the impression that it is new. Apparently, content marketing’s purpose is to attract and retain customers by consistently creating and curating relevant and valuable content with the intention of changing or enhancing their behaviour. That has been the intention of good, old plain marketing since mankind first traded.

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