Colonial Williamsburg 8 June 2000 Pentium III

Colonial Williamsburg 8 June 2000

Pentium III 800 MHz: $42, 893. 00/# Hermes Scarf: $1, 964. 29 Saving Private Ryan on DVD: $874. 75 Mercedes-Benz: $18. 98 Hot-rolled steel: $0. 19 Source: Fortune (3. 20. 00)

Forget > Learn “The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out. ” Dee Hock

C. E. O. to C. D. O.

The [New] Ge Way DYB. com

“Change the rules before somebody else does. ” Ralph Seferian, VP, Oracle

Brand Inside Brand Org!

RR on “Assetless” [J. B. ] Sara Lee “The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences. ”

Buzzsaw. com Builders, Owners, Architects, Contractors, Suppliers $4 T industry 5, 300 commercial bldg. projects’ specs on-line; +70 per day

These are … L. A. D. T. I. R. S. * *Life-and-death-total-industry-reinventionstruggles

Brand Inside Brand Work!

“Reward excellent failures. Punish mediocre successes. ” Phil Daniels, Sydney exec

“Every project we take on starts with a question: How can we do what’s never been done before? ” Stuart Hornery, CEO, Lend Lease

“Steve Ross had a wonderful philosophy: People get fired for not making mistakes. ” Bob Pittman

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

Characteristics of the “Also Rans” “minimize risk” “respect the chain of command” “support the boss” “make budget” Source: Fortune on “most admired global corporations” (10/26/98)

Brand Inside Brand Talent!

Issue Y 2 K The Great War for Talent!

“Our business needs a massive transfusion of talent. And talent, I believe, is most likely to be found among non-conformists, dissenters and rebels. ” David Ogilvy

Talent = Brand

Brand Outside Context: No “Commodities”!

Quality Not Enough! “While everything may be better, it is also increasingly the same. ” Paul Goldberger on retail, “The Sameness of Things, ” The New York Times

“The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality. ” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Brand Outside Strategy 1: Lead the Customer!

“The customer is a rear view mirror, not a guide to the future. ” George Colony, Forrester Research “If you worship at the throne of the voice of the customer, you’ll get only incremental advances. ” Joseph Morone, President, Bentley College

Good = Bad/ 1 of 30, 000 “We are crazy. We should do something when people say it is If people say something is ‘good’, it means someone else is already doing it. ” ‘crazy. ’ Hajime Mitarai, Canon

Brand Outside Strategy 2: Use E-Commerce to Re-invent the Business!

? ? ? $35, 000.

Dell’s Web sales … daily

I-24 to 1 -28: Biz. Rate. com Online Shopping Index [Consumer Goods] 52 Weeks: +622% Source: The Industry Standard/02 -00

Tomorrow Today: Cisco! 90% of $14. 4 B (Cisco Connection ONLINE) Save $500 M (service and tech support) C. Sat e >> C. Sat H Customer Engineer Chat Rooms/Collaborative Design ($1 B “free” consulting)

Service Call Center $300. 00 per transaction to $1. 50 Savings: $550, 000. 00 Source: Ralph Seferian, Oracle [part of O’s $1 B saving – on a rev. base of $9 B; $1 B addnl this year]

Welcome to D. I. Y. Nation! “Changes in business processes will emphasize self service. Your costs as a business go down and perceived service goes up because customers are conducting it themselves. ” Ray Lane, Oracle

Shop in your Underwear Source: SM’d logo for www. ae. com ae = American Eagle Outfitters

Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”

The Supply Side … The Age of the Choiceboard The War of the Choiceboards Source: Adrian Slywotzky, HBR 1 -2/2000 [<1%]

W. W. Grainger* 2 X phone/fax *$220 B “MRO” market (per Business 2. 0/02 -00)

“In the network economy, the Website becomes the company’s primary interface to the customer. The user interface becomes the marketing materials, store front, store interior, sales staff and postsales support all rolled into one. ” Jakob Nielsen, Designing Web Usability

“Most companies would do more business on the Internet if they fired their entire marketing department and replaced it with people who could produce interactive content that actually made it easier for users to buy. ” Jakob Nielsen, Nielsen Norman Group

Red Herring (01/00) 75% of online shoppers don’t complete their purchase!

“Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4. ” Jack Welch

“It’s better to be first with less than last with more. Success on the Web isn’t just about time to market, it’s also about ‘time to learning. ’ ” Jeff Levy, e. Hatchery

Brand Outside Strategy 3: Women Rule!

? ? ? ? ? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.

48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500 K 95% financial decisions/ 29% single handed

Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week (11 -99)

OPPORTUNITY NO. 1!

$3. 3 T + $1. 5 T = $4. 8 T* * Larger than Japan!

Most Under-reported story! 9 M*/28 M(1 of 4)/$3. 6 T [> Germany] * 400 K in ’ 72; 132% since ’ 92 Sources: NFWBO, Cognetics, Business Wire (030600)

Read This Book … EVEolution: The Eight Truths of Marketing to Women Faith Popcorn & Lys Marigold

EVEolution: Truth No. 1 Connecting Your Female Consumers to Each Other Connects Them to Your Brand

“The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today? ’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine. ’ ” EVEolution

Weight Watchers International “Model” “What if Exxon. Mobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners? ” “What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with today’s skills? ” EVEolution

The New Jiffy Lube “In the male mold, Jiffy Lube was going all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation required” experience. ” New JL: “Control over her environment. Comfort in the service setting. Trust that her car is being serviced properly. Respect for her intelligence and ability. ” EVEolution

Brand Outside Strategy 4: Design Rules!

All Equal Except … “At Sony we assume that all products of our competitors have basically the same technology, price, performance and Design is the only thing that differentiates one product from another in the marketplace. ” features. Norio Ohga

Design as Soul “We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a man-made creation. ” Steve Jobs

Brand Outside Strategy 5: It’s the Experience!

“Experiences are as distinct from services as services are from goods. ” Joseph Pine & James Gilmore, The Experience Economy: Work Is Theater & Every Business a Stage

“The [Starbucks] Fix” Is on … “We have identified a ‘third place. ’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge. ” Nancy Orsolini, District Manager

Safe, On Time and … “We defined personality as a market niche. We seek to amuse, to surprise, to entertain. ” Herb Kelleher, Main Man, LUV Airlines

Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43 -year-old accountant to dress in black leather, ride through small towns and have people be afraid of him. ” Harley exec, quoted in Results-based Leadership

“Car designers need to create a story. Every car provides an opportunity to create an adventure. … “The Prowler makes you smile. Why? Because it’s focused. It has a plot, a reason for being, a passion. ” Freeman Thomas, co-designer VW Beetle; designer Audi TT

Hmmmm(? ): “Only” Words … Story Adventure Smile Focus Plot Passion

Plot Williams Sonoma = 6 [was 10] Crate & Barrel = 8 Sharper Image = 9+ Smith & Hawken = 8+ Vermont Country Store = 8+ L. L. Bean = 5 [was 9+] Land’s End = 7+ Colonial Williamsburg = ?

Brand Outside BRAND POWER!

Brand Defined Story/Plot Distinction/Excellence Emotional “Signature” Trustworthiness = Shorthand

Brand It! Now, More Than Ever! “The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand. ” Gillian Law and Nick Grant, Management [New Zealand]

“What Matters to Online Buyers”* #1: Product brand #2: Retailer brand *Source: Business 2. 0

No Room for Brands? Nike Saturn CNN America Online Charles Schwab Starbucks The Gap Intel Etc.

“Consumers don’t simply buy products, they buy attitudes as well. When confronted with proliferation and diversity, choices become increasingly informed by belief. [Consumers] want to know who is behind the products that they buy. They want to know the company. They want to know what you think. ” Jesper Kunde, Corporate Religion

“Corporate Religion is a completely new way of thinking about companies. Today, the product is still the main communication highway in the company. When companies make the shift to selling solutions, brands and attitudes … communicating the company’s attitudes and values becomes the decisive parameter for success. It demands that you find out who you are as a company. ” Jesper Kunde, Corporate Religion

Scott Bedbury/ Nike, Starbucks “A Great Brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an emotional connecting point that transcends the product. “A Great Brand is a story that’s never completely told. A brand is a metaphorical story that connects with something very deep - a fundamental appreciation of mythology. Stories create the emotional context people need to locate themselves in a larger experience. ”

“Create a Cause, not a ‘business. ’” Gary Hamel, Fortune (06. 00), on reinventing a company (Exemplar #1: Charles Schwab)

Brand = You Must Care! “Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about. ” Tom Chappell, Tom’s of Maine

Brand = Special = Passion = Plot = Compelling Mythology = Cause = Connection = Caring

“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion will affect everything from our purchasing decisions to Companies will thrive on the basis of their stories and myths. Companies will need to understand that how we work with others. their products are less important than their stories. ” Rolf Jensen, Copenhagen Institute for Future Studies

“In the funky village, real competition no longer revolves around marketshare. We are competing for attention – mindshare and heartshare. ” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

Rules of “Radical Marketing” Love + Respect Your Customers! Hire only Passionate Missionaries! Create a Community of Customers! Celebrate Craziness! Be insanely True to the Brand! Sam Hill & Glenn Rifkin, Radical Marketing (e. g. , Harley, Virgin, The Dead, HBS, NBA)

Brand Leadership Passion Rules!

Ann Richards’ Dogma Show up! Know your message! PUT YOURSELF AT RISK EVERY DAY!