Marketing

    On-Demand or Craft Economy?

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    heathkit

    When I was a kid my dad used to build electronic things. I recall him building an RDF (radio direction finder) for the boat at the dining room table. The product brand was called Heathkit. Like a piece of Ikea furniture, it came in a box with all the pieces and a nice tome of instructions. Solder this capacitor here, wire this framus there. It was early evidence of the craft economy — where craftsmanship is important.

    The craft economy today is most easily understood through the lens of craft beer – a better tasting, more complex, more expensive kind of beer. Spawned by the home brewing phenomenon, it has taken a big chunk out of the mass-produced pasteurized brew business. Two days ago I posted a story about “Frozen Vs. Some Assembly Required” Meals – pointing to the craft economy as seen through a convenience lens. This morning I read a post by Sara Lacy at Pando about two start-ups: PlateJoy or Blue Apron. It’s another lesson in business tailored to the craft economy. She framed the business model as “on-demand,” I’ve scooched it into the craft economy. Either way, it’s part of our future. Check it out.

    Peace.

     

     

    Cause Strategy

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    It may be my age, it may be my level of wisdom, it may be age….didn’t I just say that…but a great many of my strategies lately contain an undercurrent of cause marketing. It’s as if my brief also has a line that says “What about this strategy will make the world a better place?” Back in the day my briefs were more likely to have the line “What about this strategy will sell more product, faster, regardless of consequence?”

    My new approach certainly is intended sell more product, but it comes in an envelope of comfortable altruism. This new found reliance on educating over selling, undergirds my strategies. “An educated consumer” as they say.

    Strategies that are more cause reliant take advantage of cultural context. Cause strategies feel more human. So what do we do with Axe? How do we package Coors Light? Geico?  We do what we always do — but now we think more positively about people, planet and how our persuasion is a positive force. Bang (not a gun ban either).

    Peace.

    PS. For examples of cause strategies for products write steve at whatstheidea.

     

     

     

    Frozen Versus Some Assembly Required.

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    The sale of frozen foods has tip-toed along at about 1% gain a year so a number of large food producers are making bets they can see larger growth. ConAgra is making R&D investments in the Marie Calendar and Banquet brands in an attempt jump start things. Efforts to reduce preservatives, salt and sugar are all smart moves but frozen food will never have the allure of dishes that require some assembly. Frozen food is a convenience play and one that is counter to the new craft economy.

    Busy moms and dads who have to do some food manipulation, e.g., cutting peeling, shredding, stirring, however slight, feel better about meal preparation. Today’s two income families we are all busy. And dinner prep takes time. But when parents ask why aren’t the kids at the table, they should know the answer: the food is average. Some assembly required meals makes a convenience dinner a better dinner. More smells in the kitchen. More commitment to ingredients. More participation.

    Eight minutes of prep time and about 10-20 minutes of cooking sounds about right. Let’s turn the R&D people loose on this type of meal. Healthier eating, healthier preparation and perhaps a few pennies saved.

    Peace.                                                                                               

     

     

    The Conundrum Zone.

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    twilight zone

    The conundrum zoned is like the Twilight Zone, but without the do do do do music. It’s my business.

    Typically my brand consulting clients are small to mid-size businesses. Businesses who understand the value of an organizing principle for messaging. They don’t quite get the organizing principle for product or experience, but messaging gets me in the door. When I tell them it will cost $17,500 for a strategy and another $17.5 for a marketing plan, I tend to lose them. So, I parry: “You can’t buy a page ad in the regional newspaper for that.”

    Large companies also get the strategy as an organizing principle thing. Many at large companies get branding, beyond the logo, tagline and design templates. But they tend to think $17,500 should only cover T&E. They’re more comfortable going with Landor, Interbrand or Brand Union – and paying $250,000. That’s what it costs to get a team with lots of suits and eye piercings. To them, I am the $.99 store. The conundrum zone.

    So what is my approach to overcome this? You are looking at it. The web, ideas shared via blogging and social, and an ongoing battery of thoughtful strategic (one-to-one) emails. My brand What’s the Idea? conveys and suggests most brands lack an idea. Lack an organizing principle. Companies large and small understand this. Now I just have to get the pricing right.

    Piece. I mean peace.

     

    THE Economist.

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    The U.S. Federal deficit is at its lowest level since President Obama took office. New home sales rebounded in July and consumer confidence is at a seven-month high. Best Buy just announced way higher than expected profits, attributed to consumers spending more on their homes as the housing market improves. It all sounds like great news right?

    Sure, but the stock market has been in the serious shitter the last few days. So what’s up?

    Big data is up. Back in the 50, 60s and 70s economists didn’t have all this data. They had a fewer economic indicators and the world was a lot more compartmentalized. There were a few kingly economists and we all listened them. It eased our minds and our understanding of things.

    Today there are so many indicators that we can’t tie market reaction to symptoms. The macro excuse for the recent market plummet is “anxiety over China’s economy.” I believe that. But can someone explain it to me?

    We need a hero economic czar. Someone (anyone) who can explain all this stuff. How about a writer from The Economist?

    Who is the U.S.’s smarted economist today? Does anyone have a nomination?

    Peace.                  

     

     

    Netflix for the Older Set.

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    Netflix is creating content specifically for teens and tweens, a group it feels is being underserved from a broadcast/streaming point of view. Contrarian that I am, I would go the other way. I would attempt to develop programming targeting 70 year olds and older. This is an age segment that probably indexes low for Netflix streaming service and a big opportunity zone.  They’re a lot more sedentary, with lots of leisure time and own reasonable, albeit, fixed incomes.

    I hooked my mom up with Netflix not long ago and it didn’t work. Too much tech. With her 3 remotes and low patience threshold, it was a poor experiment. But she’s 85. And she is often heard to say “There is nothing on TV.”  She has seen every episode of Mad Men.

    Netflix should not forget these people — who invented the golden age of television. They should program for them, create a nice (in-home?) service package and growth subscriptions by significant numbers.

    Peace.                                                                                    

     

    Sell hard, sell soft.

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    I’m always looking for consumer and marketing patterns, especially those that manifest in larger cultural happenings. I’ve written about the new health care phenomenon whereby we flip the model from treatment to prevention – the goal of the Affordable Care Act.

    Today I was reading about a new or retro law enforcement program being tested in Queens and Manhattan, moving away from “enforcement” to “prevention.”  Officers are asked to walk the beat more, spending more time talking to people in the community, learning about hot spots, pressure points, personalities and flow – hopefully before bad stuff happens. It’s similar to the healthcare model and I’m sure it will work. There will always be a need for enforcement as there will always be a need for treatment, but a few ounces of prevention — listening and learning — can go a long way.

    This got me wondering about selling. Can “hard sell” be allied with treatment and enforcement? The hard sell approach is about getting someone to do something they don’t want to do. With immediacy. Ding dong. Ring, ring. Button holing consumers on the street. Softer sell, is about preparing a consumer the time when they will be ready to buy. It works by making a positive impression. A memorable impression.

    Hard sell is expected in advertising. From people, in belly-to-belly selling situations, not so much. A key to marketing is “sell hard, in soft mode.” Effectively, preventing rejection.

    Peace.

     

    Context Matters.

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    broadway boogie woogie

    Look at the picture above. It is one of the most famous paintings in the world.  To some, however, it is a simplistic primary color pattern of boxes;  childlike in its construction. To art connoisseurs it is rapture. When I saw it in art class in college I fell into the former category. Today, though no connoisseur, I tend to see its virtue. Why?

    Context.

    This paint by Piet Mondrian is titled “Broadway Boogie Woogie.” Now, I am able to get it. Finally, I understand the painting. My years on the planet have allowed me to see the painting with a new familiarity thanks to the title.  The title, for me, makes this painting. Setting my mind afire.

    This may not sound like a branding observation; it is. Context matters. Oh does context matter.

    Peace.

     

     

    Words to live by… not promote.

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    I saw a kid walking in a store yesterday wearing an athletic tee-shirt proudly displaying three words on the back: Pride, Integrity, Respect. Oh boy. Whenever I see stuff like this I get the sense that it’s a program in trouble.

    When I see these kind of words in a company mission statement, my radar goes off and I suspect a historical lack of pride, integrity or respect. These value promos may be a reaction to the category, a la car dealers, lawyers or ad guys, or may be a reaction to the company itself.

    Don’t get me wrong these are all great qualities. But for a business or kid it should be a given. If a company or program has a poor moral compass, it needs to be fixed “in-house.” Fixed through training, role-playing, incentives, deeds and programs. Not external communications.

    Live it. Don’t post it.

    Peace!