Jan 2, 2013 | Branding, Change, Marketing, retail, Small business
This is the first post of the new year, so it seemed appropriate to hop on a hobby-horse, the indiscriminate use of the word “iconic”, in all sorts of situations.
My beef today is specific to the food industry.
The call to receivers to sort out “Rosella” has created a lot of noise, of the “another “Iconic” Australian food business goes to the wall” type.
Whilst it is true that the Rosella brand has been around for a long time, it has not been owned by an Australian company in my memory in the food industry, which is disturbingly long. Rosella was owned by the British/Dutch multinational Unilever for many years, who sold it to the Dutch trader Stuart Alexander probably 15 years ago. They failed to give it the breath of life, and on-sold it to the South African group that ultimately owned Gourmet Food Holdings, as their vehicle to assemble food brands. They also owned Aristocrat, which in my memory was owned by an Australian family who actually cared about their products. Problem was they had a factory in Chatswood in Sydney, now prime real estate, and insufficient marketing grunt to maintain retail real estate,
So, what makes an “Iconic Australian business”?
I might be persuaded that “Rosella” was an Australian brand, as you could not buy it anywhere else, but certainly not that it was an iconic Australian brand, or Australian business, which is the other epithet often used.
To me “iconic” has a number of dimensions:
Longevity.
Market share, but more importantly than share, the potential to shift markets due to consumer trust and loyalty.
Consistent delivery of value to customers/consumers.
Over time, it has managed to evolve so that it accurately reflects the core proposition of the brand in a manner relevant to the customers/consumers of each of those times.
On all but the first of these parameters, Rosella fails the test. Ask yourself “who will miss Rosella?” and the real answer is very few.
So why the hand-wringing?
Simple. The demise of Rosella in another example of the decimation of the Australian food manufacturing industry, particularly the small manufacturers. Here we are, in a geographically enviable location close to the burgeoning Asian markets, with advanced R&D, skilled workforce, high and transparent standards, able to produce commodities at world competitive costs, but we are failing to feed our own people from our own resources, huge amounts of manufactured food is now imported, (more than $10 billion last year) and the trend is accelerating.
We have White papers dealing with the Asian century and our place in it delivering cliches, and task forces examining the woes of the food manufacturing industry, and making grand recommendations, but not much activity that is useful, so I guess we have to kid ourselves to feel better.
Happy new year, I hope it is “iconic” for you.
Dec 20, 2012 | Marketing, Personal Rant, Small business
Yesterday in the midst of a sizeable gathering, one person was moaning about the rip-off represented by Christmas hampers, specifically one she had received the previous day. “Full of stuff I could have bought and probably cost half as much, what a wank”
Unfortunately for the moaner, the business that had given her said hamper was a client of mine, so I was aware of the thought, time, degree of personalisation, and genuine care that went into the construction of the hampers as a means of acknowledging the value they placed in the relationship. They did not have to give hampers, they wanted to. Whilst the costs incurred were important, the real importance to my client was elsewhere, a point entirely missed by the moaner.
It seems my client wasted the money they spent on that particular hamper, misjudging the total lack of grace of the receiver, but hopefully she was one of a very few who failed to recognise the intent.
I can say for sure that the mistake will not be made again with that particular person.
Merry Christmas to all my readers, I cannot send you all a hamper, but I can send you my genuine thanks for coming, commenting, and generally participating in making the writing of this blog a joy rather than a labour.
Merry Christmas.
Allen
Dec 13, 2012 | Lean, Operations, Small business
How often do we get sidetracked by several possible causes of an adverse or unexpected outcome?
In the course of doing a fair bit of process improvement work over the years, one of the really successful strategies I have used is to get people to distinguish between the real cause of an unwanted outcome, and something that has no impact. Put like that it seems pretty simple, but it is almost always more complicated, and serves as a core of the “5 Why” lean tool, always requiring hands on knowledge of the way things work, and usually some data. Ask yourself “Why” successively, up to 5 times, as in this lovely story of the Lincoln memorial and pigeons.
Is the intermittent crushing of boxes by the box erector in the factory caused by a marginal variation in the dimensions of the carton flat (prior to erection) or by the wearing of the bearings in the box erector itself, leading to sloppy operation in one of the clamps? Pretty easy to mistake which of these is the real cause of the stoppages, and waste time trying to fix something that perhaps does not need fixing, while the boxes continue to be crushed.
This is of course different from the confusion about which is cause, and which is effect. I was in the Sydney CBD last week, and saw several blind people with Labrador dogs. Does having a Labrador cause blindness?
Oct 23, 2012 | Sales, Small business
“Not now” is a response sales people receive all the time, question is, does it mean not now, or not ever?
When sales people hear the words, they have two choices:
- Ignore the brush off, and keep at it
- Asses the lead for any long term value, and if it is there, put the lead back into the lead “carpark” for review at a later date, or for when something happens to give the opportunity to reconnect with the prospect.
Taking the first option is rarely the best, it just gets annoying, but persistence in continually recycling leads, adding to the store of knowledge each time, is a bit like continuous improvement in a factory, part of an ongoing cycle that delivers performance.
Any lead is hard to find, turning that lead into a prospect is not a one-off exercise, it is a process that can have many twists and turns, that can now be significantly automated.
Sep 25, 2012 | Branding, Communication, Marketing, Small business, Social Media
Big Brother is watching where you are, if you have a smartphone. The GPS capabilities of the newer smartphones opens up an extraordinary Pandora’s box of opportunities to market to those in immediate reach, alternatively to deluge them with SPAM, as illustrated by Tom Fishburnes cartoon . (make sure you click through to his Google keynote)
You are a smart young thing, with a purchase history in a chain of fashion stores. As you walk into the orbit of a store, your phone tells them who you are, and that you are close, which offers the chance to mine your database, and come up with tailored specials, available for the next 20 minutes, just for you. Or perhaps as you move towards the cinema complex in George Street, the movie about to start that sits in your preferred genre, offers you a preferred location, and a coffee. The opportunities are endless, the potential to annoy by filling your phone with Spam almost as endless.
This evolution will require a rethink of the customer acquisition process. Aiming messages at consumers with the laser-like accuracy to avoid being a Spammer will require a sophisticated data mining capability, as well as a sensitivity to consumer preferences that will be hard to translate into an algorithm.
The downside for those who do it poorly is that potentially loyal consumers will move elsewhere, and block your messages, the emerging equivalent of retail purgatory.
Sep 20, 2012 | Innovation, Marketing, Small business
“Big data” appears to be the coming cliché amongst my propeller-headed friends, as it gets cheaper to gather, store, and mine data, they are like excited 21st century versions of Oliver Twist, “more petabytes please sir”!
Surely at some point diminishing returns occur, more and more of the same data cannot to my mind possibly lead to the insights that make a difference. What is needed is different data, meaningful insights generated from the data, better assembly of data into project plans and performance measures, curation of key bits of data to those who can use it to solve a problem or provide insight into a circumstance.
Imagine if you will, a black and white photo taken with a 10 megapixel camera, compared to the same photo taken with a 100 megapixel camera (does this exist?) same photo, better definition although hard to distinguish, you can blow the one taken with the 100 up to the size of the opera house and still be recognisable, but it is still the same photo, just more data of the same sort. Now consider the same picture taken in colour, at 5 megapixels, same photo, less data, but what a change is wrought by a bit of different data, even if it is just an added bit of small data.
More of the same is never as good as a little bit of different.
