Thierry Henry, the outstanding French soccer player has joined Red Bulls of MLS. With his signing the league now has its first legitimate European soccer superstar. Henry may be "over the hill" at 33, but he possessed ball skill and scoring abilities unmatched by all but a few players in history. As a World Cup champion, a European champion, and the most prolific scorer in the history of Arsenal, of England's Premiere Division, he brings credibility and ballet-like moves to a league whose players have less in common with world class soccer than donkeys on ice skates.
As the Red Bulls sit today, they don't have the caliber of players who can complement Henry's grace, precision and creativity on a soccer field. It will take two or three more signings to put Henry in an environment where he won't be expected to single-handedly deliver victories. The LA Galaxy proved that pairing a former world class name with the best player in America, Landon Donovan wasn't sufficient to win games.
As I wrote extensively prior to his LA Galaxy signing, Beckham, while a competent player - like Henry, also past his prime, would not create the groundswell the league was desperate to create. He merely bolstered his own celebrity and that of his Hollywood craving wife. Days before it was revealed that she was resurrecting the Spice Girls for a failed "world tour," I facetiously wrote that his presence would have the same effect on American soccer as hers would on the music scene if she announced the rebirth of the Spice Girls. That prophesy has proven to be more than accurate. The Beckham's presence in America has sold a lot #23 jerseys, but not as many as before he abandoned his LA commitment for a European team where he could face stiffer competition in his attempt to win a spot on England's disastrously performing World Cup team. As I predicted, Beckham drew massive numbers of curiosity seekers when he first toured MLS cities, but that quickly faded. Even his return to England's team for the World Cup went bust due to an injury that kept him in street clothes on the bench.
Moreover, I questioned the sense of plopping one world-class player on the field among a team of second rate players. Beckham may be one of the greatest passers who ever played, but if you have players around him who don't know where to be, and lack the skills to receive his perfectly placed passes, and can't finish with a shot on goal, his brilliance is for naught. The LA Galaxy's woeful record during the Beckham years proves my point.
Make no mistake, Henry can still play circles around many of the best players in the world, but even the great Pele, who is better comparison to Henry's coming to America than Beckham, had to have a supporting cast his equal. The fabled New York Cosmos surrounded Pele with some of the best players of his era. Henry will dazzle crowds, and bewilder opposing defenders and goalkeepers. At some point, without other great players around him to help carry the load, he will be contained by heavy-footed donkeys going "roller derby" on him throughout a game.
Like the Statue of Liberty, Henry is gift from France that serves as a symbol of what this country can be, at least from a soccer perspective. Fittingly, he will wear a jersey that promotes the energy drink Red Bull. Henry may well be the elixir to energize that franchise, but like Beckham, he cannot carry the league. He will however, take over the merchandising crown worn by Beckham. Moms and Dads everywhere will be pestered to buy a Henry/Red Bull Jersey to replace that relic Beckham jersey, much like the player which is now irrelevant.
A view of the world through the eyes of a brand strategist with assorted ramblings about other topics near and dear to his heart including: fatherhood, branding, parenting, social ills, branding, volleyball, family caregiving, all things brand related, politics, and the affection of the wonder dog, Brew. . . did I mention branding?
Our beloved Brew.
R.I.P. Big guy.
Thursday, July 15, 2010
Friday, July 9, 2010
LaBron James Signing Signals the Collapse of the NBA
Everything I detest about the NBA was manifested in the obscene media circus that took place around the signing of free agent LaBron James. Mark this date and time. Every condition necessary for the collapse of the NBA is in place, and moving full steam ahead. No, it won't be tomorrow, or next week, or even next year, but the NBA is doomed.
Three National Basketball Association free agent "all-stars," Chris Bosh (Admittedly, I don't follow the NBA and had never heard his name until this week when he was mentioned as an also-ran, supporting player in the LaBron James derby), Dwayne Wade, and his majesty King James have conspired to join forces and bring an NBA championship to Miami. Good for them. Why go through the formality of the season, just send them the league trophy now. If that spares the nation of another NBA season of games, I am all for it. In the end, professional basketball is all about ridiculous sums of money, tattoos, gangster lean, badass attitude, groupies, and fame.
James, like his new teammate Wade has determined that winning a league championship is the pinnacle of life. Wade went so far as to say he turned down a chance to play in Chicago and be near his children, but had to "take the emotion out of it." Get the message kids? To Dwayne Wade, his children are mere emotions. The consequences of a booty call gone sour. Business comes first. After all, making tens of millions a year can only go so far. Only a fool would walk away from a bigger payday. And a man (I use the term loosely) can walk away from his kids for the riches of South Beach. It seems a bit hypocritical of him considering the battle he went through with his ex-wife during a recent divorce. But it is so much clearer now why he chose to accept the divorce now and leave the incidental matter of child custody to the judge to settle "sometime in the future."
To me, James going to Miami is a blessing. At least we Chicagoland don't have to deal with constant media watch I am certain his presence in Miami will create. The NBA is comprised of gangster and hoods who to their credit found a way out of the ghetto through basketball, but that does not make them people I want in my living room.
Three National Basketball Association free agent "all-stars," Chris Bosh (Admittedly, I don't follow the NBA and had never heard his name until this week when he was mentioned as an also-ran, supporting player in the LaBron James derby), Dwayne Wade, and his majesty King James have conspired to join forces and bring an NBA championship to Miami. Good for them. Why go through the formality of the season, just send them the league trophy now. If that spares the nation of another NBA season of games, I am all for it. In the end, professional basketball is all about ridiculous sums of money, tattoos, gangster lean, badass attitude, groupies, and fame.
James, like his new teammate Wade has determined that winning a league championship is the pinnacle of life. Wade went so far as to say he turned down a chance to play in Chicago and be near his children, but had to "take the emotion out of it." Get the message kids? To Dwayne Wade, his children are mere emotions. The consequences of a booty call gone sour. Business comes first. After all, making tens of millions a year can only go so far. Only a fool would walk away from a bigger payday. And a man (I use the term loosely) can walk away from his kids for the riches of South Beach. It seems a bit hypocritical of him considering the battle he went through with his ex-wife during a recent divorce. But it is so much clearer now why he chose to accept the divorce now and leave the incidental matter of child custody to the judge to settle "sometime in the future."
To me, James going to Miami is a blessing. At least we Chicagoland don't have to deal with constant media watch I am certain his presence in Miami will create. The NBA is comprised of gangster and hoods who to their credit found a way out of the ghetto through basketball, but that does not make them people I want in my living room.
Friday, June 25, 2010
The Real Worth of Landon Donovan's Stunning US Goal in the 2010 World Cup
Landon Donovan scored an extra-time winning goal for the US against Algeria to bring the American team back from the brink of despair and elimination. Some have called the goal the most important in the history of US soccer. I agree, but for reasons beynd the obvious advancement of the team into the second round of this year's World Cup.
Although I have often criticized Donovan over the years, I am prepared to admit I am wrong about his development and leadership. Moreover, the manner in which he scored this goal is equally as important as the goal itself.
Donovan made himself available to the Tim Howard, the US goalie as soon as Howard made a save against a threatening Algerian attempt on goal. Even with time dwindling, Donovan didn't panic, he didn't heave the ball upfield as most American players are wont to do. He used his speed, ball possession skills and vision to launch a counterattack, something that most youth coaches in this country don't teach often, or well enough.
From the moment little kids step on the soccer field, some coach, parent or other misinformed adult begins to shout "pass!" Soccer in America has resembled pinball rather than the strategic game of skills and movement it is meant to be.
With Donovan's goal, young (and older) players have an example to emulate which encourages possessing the ball, taking on opponents, and distributing the ball only when it makes tactical sense. Perhaps the greatest example Donovan set was the continuation of his run after passing to Jozy Altidore who took the original shot at the Algerian goal. When the keeper allowed the ball to rebound away, Donovan was there to calmly collect it in stride and confidently tuck it into the back of the net. His effort was not a fluke, nor merely a matter of being fortunate to be in the right place at the right time. If you watch his run from the outset, you will see that he never slowed, nor did he hesitate to take up a position in front of the net that gave him a chance for a rebound, and an open lane to the goal.
If he never scores another goal for the US, Donovan has secured his place as the most accomplished player to ever don a uniform for this country. The manner of play in which he scored this particular goal is a model for every player who seeks to elevate their game to the level of world class.
Although I have often criticized Donovan over the years, I am prepared to admit I am wrong about his development and leadership. Moreover, the manner in which he scored this goal is equally as important as the goal itself.
Donovan made himself available to the Tim Howard, the US goalie as soon as Howard made a save against a threatening Algerian attempt on goal. Even with time dwindling, Donovan didn't panic, he didn't heave the ball upfield as most American players are wont to do. He used his speed, ball possession skills and vision to launch a counterattack, something that most youth coaches in this country don't teach often, or well enough.
From the moment little kids step on the soccer field, some coach, parent or other misinformed adult begins to shout "pass!" Soccer in America has resembled pinball rather than the strategic game of skills and movement it is meant to be.
With Donovan's goal, young (and older) players have an example to emulate which encourages possessing the ball, taking on opponents, and distributing the ball only when it makes tactical sense. Perhaps the greatest example Donovan set was the continuation of his run after passing to Jozy Altidore who took the original shot at the Algerian goal. When the keeper allowed the ball to rebound away, Donovan was there to calmly collect it in stride and confidently tuck it into the back of the net. His effort was not a fluke, nor merely a matter of being fortunate to be in the right place at the right time. If you watch his run from the outset, you will see that he never slowed, nor did he hesitate to take up a position in front of the net that gave him a chance for a rebound, and an open lane to the goal.
If he never scores another goal for the US, Donovan has secured his place as the most accomplished player to ever don a uniform for this country. The manner of play in which he scored this particular goal is a model for every player who seeks to elevate their game to the level of world class.
Wednesday, June 16, 2010
On the Record Regarding the US World Cup Team
Just so I don't appear to be a complete "Monday morning quarterback" let me go on record right now saying I hope Desmond Clarke does not see any further action for the US in the World Cup. He is the weak link. While most of the people who I consider to be most knowledgable about soccer tell me Michael Bradley is the real deal, I believe his lack of creativity and attack-mindedness are severe liabilities. I hope he proves me dead wrong. Findley is not capable of playing in a forward position at this point in his career, much more seasoning and should be replaced before Friday's game. Coach Bob Bradley is not likely to do any of these things, least of which is to bench his son. There, I'm on the record.
World Cup Soccer Starts Five Days Late
FINALLY! A World Cup match worth watching. In one of the few matches of this year's tournament that wasn't played by two teams trying not to lose, Spain threw everything it had at Switzerland through a relentless attack that nearly wore out the field on the flanks. The Swiss would bend but not break, demonstrating brilliant defense. As I predicted before the WC got under way, Switzerland is a team that must be taken seriously.
I thoroughly enjoyed this 1-0 victory by the Swiss despite predicting Spain as the eventual winner of the WC. I stand by my prediction. Spain's somewhat selfish play, especially in the first half, squandered numerous scoring opportunities. With so many stars on the roster, each wanting to put their stamp on the game, shots were taken that were often less than the best alternative. I believe the coaches will address this, and Spain will be one of the two teams to advance from Group H. Unless the wheels fall off, Switzerland will be the other team simply because Chile and Honduras lack the balance of attack and defense shown by Spain and Switzerland.
This game was especially satisfying to watch because I turned off the volume and watched the game without the din of the vuvuzelas, which I consider an embarrassment to all concerned, while also avoiding the less than insightful commentary of the announcers. When I saw Mike Tirico and Alexis Lalas were the in-studio analysis team, I was freed up to finish my morning paper before the start of the second half.
The World Cup has now shown the potential we all knew it had to present entertaining and intelligent soccer. Now that everyone has their first game out of the way, and they are jockeying for one of the two available spots in each group that moves on to the single elimination round, every team will need to play to win, or at minimum, save face. FINALLY, the real World Cup is under way!
I thoroughly enjoyed this 1-0 victory by the Swiss despite predicting Spain as the eventual winner of the WC. I stand by my prediction. Spain's somewhat selfish play, especially in the first half, squandered numerous scoring opportunities. With so many stars on the roster, each wanting to put their stamp on the game, shots were taken that were often less than the best alternative. I believe the coaches will address this, and Spain will be one of the two teams to advance from Group H. Unless the wheels fall off, Switzerland will be the other team simply because Chile and Honduras lack the balance of attack and defense shown by Spain and Switzerland.
This game was especially satisfying to watch because I turned off the volume and watched the game without the din of the vuvuzelas, which I consider an embarrassment to all concerned, while also avoiding the less than insightful commentary of the announcers. When I saw Mike Tirico and Alexis Lalas were the in-studio analysis team, I was freed up to finish my morning paper before the start of the second half.
The World Cup has now shown the potential we all knew it had to present entertaining and intelligent soccer. Now that everyone has their first game out of the way, and they are jockeying for one of the two available spots in each group that moves on to the single elimination round, every team will need to play to win, or at minimum, save face. FINALLY, the real World Cup is under way!
Thursday, June 3, 2010
BP and the Gulf Oil "Spill"
I've held off writing about the BP Gulf Oil Spill simply because there is so much being said about it, and my highest concern is not out of professional interest related to the BP brand, but rather the ecological disaster that will be with us for at least decades.
I am prepared to give BP some very valuable and expensive PR and image advice as a public service. Forget about your damn image. Fix the real problems, solve the crisis, and to hell with you image management. More on this later.
As vain as it sounds, I am breaking my silence because two regular readers indicated they were eager to see my reaction to the BP/Gulf oil spill. First let me say, I am disgusted that BP and parts of the media continue to use words like "incident" and spill in describing this. An incident is a temporary, limited, or periodic occurrence, out of the ordinary that generally does not have long-term repercussions. A spill is what happens when you lift your glass of milk too fast and some sloshes out. Neither of those terms applies to the obscene events that continue, largely unabated, along the southern and now eastern shores of the United States. If they were to cap the well this moment the obscenity will continue in the form of devastation to our environment, loss of livelihood, damage to the food source, and economic impact that is truly immeasurable and likely to be felt for decades, if not generations to come.
Although I'd like to see the government take a more visible role in all of this, I have no way of knowing if they are controlling the situation, or what pressures they are putting on BP behind the scenes. I suspect they are making life at BP a living hell. At least I hope they are.
Do we need to continue offshore drilling? Unfortunately, yes. Can we afford as a nation and a responsible society to do it under the conditions and regulations that exist today? Absolutely not. Some areas are just too precious and represent too great a risk to the public well-being. In other words, stay out of Alaska. And probably Florida's waters, etc., etc.
Prior to this disaster I would not have thought it took a rocket scientist to figure out that when you punch a hole in the crust of Earth, literally miles under water, from miles away, you have to figure something terribly wrong could happen, and design a number of back-up plans for "what if . . .” Clearly, that wasn't done. Moreover, it appears BP took as many shortcuts as possible and ran a variety of unsavory risks in the manner by which they set up and operated this site. I've read that the techniques they used in this well are not uncommon among other members of the industry. These companies know its risky, and not necessarily the best methods, but they are committed to keeping costs down and shareholder value up. If ever there was a case for Congress to step in and completely revamp an industry, this is it.
Now to matter of the BP brand. The jackasses working in the PR effort to protect BP's image should be ashamed of themselves. Proof that some people will do anything for money. Lots of it. Don't be swayed by their feeble defense that as professionals, they have an obligation to offer BP their services. They were not sworn to some PR version of physician's Hippocratic Oath. For the record, they might want to refer to a particular portion of that oath that reads: "First, do no harm."
This is a brand that does not deserve to be saved. See, a brand isn't about image. It's about behaviors. BP's behaviors have been deplorable. Instead of running costly full-page newspaper ads to tell America BP takes full responsibility and is going to deal with this to find a solution - FIND THE DAMN SOLUTION! Stop the media circus they are conducting, try being truly open with the American people, fire Cheney's PR person who you brought in to wave her magic wand over it all, (Can you believe they actually hired this twit?), begin offering some protection from the toxins to the thousands of workers you brought in to start cleaning up (despite BP's efforts to portray it as simply picking up litter, this is very dangerous work).
BP is about to prove once again, what I have been saying for my entire career: A brand is the property of the intended audience, not the company trying to advance it. A brand exists only in the minds of the stakeholders, not in the hands of the corporate wonks or shareholders. When BP chose to engage in risky behaviors for the benefit of its stakeholders, it made everyone on this planet a stakeholder. I believe, in response to one of the greatest corporate foul-ups in history, BP is about to see a "stakeholder" revolt unlike anything previously known to man.
I have no sympathy for those local BP dealers who claim their sales off by as much as 40% and the consumer outrage is misdirected at them. If for years you have gladly profited off the good will and clout of the BP brand, then you have to be prepared to accept the negative fallout you rightfully share in the disaster. You collectively chose as dealers not to hold your supplier to higher standards and failed to ask the right questions about procedures that might have prevented this.
The BP brand is dead. They corporate wonks that run the place will quickly set out to replace the name or sell off the assets as soon as the federal government lets them out of the headlock that is meant to keep them focused on cleanup. Don't be surprised to see the Amoco name resurrected. Is this a good move? I don't think so, but naming isn't BP's problem so until real changs are made in behaviors there, what they call the brand will make little difference.
Despite how angry the public gets and how costly this becomes to BP it is predicted they have more than enough insurance and assets to weather this. Sad, isn't it? BP might be a far smaller company when this is all over, but even that is unlikely. No, BP has protected itself well financially and you shouldn't expect they will shrink out of existance. That is not to say they might not, slink out of existance. Expect to see them drop a few tens of millions on image enhancement and a major rebranding effort. I do expect the BP name to go away in this country. People who cite how Exxon was able to continue after the Exxon Valdez disaster are comparing apples to oranges in the percieved relative magnitude of the situations, the long-term damage, the mood of the public for corporate irresponsibility today versus then, and the ability of social media to generate ire that wasn't possible during the Exxon era. I expect those BP PR wheels are already turning and some of my former colleagues are sopping up enough buckets of money to affort their own homes in the Hamptons alongside those of their clients.
If you get a chance, check out @BPGlobalPR on twitter. This person, identifying them self as Leroy Stick knows more about branding than most of us who claim to practice it for a living - probably because he/she has a clear moral compass, good judgment, sound reasoning and compassion for people and our Planet ahead of profits. Hey, come to think of it, BP, isn't that what a brand should be based on?
I am prepared to give BP some very valuable and expensive PR and image advice as a public service. Forget about your damn image. Fix the real problems, solve the crisis, and to hell with you image management. More on this later.
As vain as it sounds, I am breaking my silence because two regular readers indicated they were eager to see my reaction to the BP/Gulf oil spill. First let me say, I am disgusted that BP and parts of the media continue to use words like "incident" and spill in describing this. An incident is a temporary, limited, or periodic occurrence, out of the ordinary that generally does not have long-term repercussions. A spill is what happens when you lift your glass of milk too fast and some sloshes out. Neither of those terms applies to the obscene events that continue, largely unabated, along the southern and now eastern shores of the United States. If they were to cap the well this moment the obscenity will continue in the form of devastation to our environment, loss of livelihood, damage to the food source, and economic impact that is truly immeasurable and likely to be felt for decades, if not generations to come.
Although I'd like to see the government take a more visible role in all of this, I have no way of knowing if they are controlling the situation, or what pressures they are putting on BP behind the scenes. I suspect they are making life at BP a living hell. At least I hope they are.
Do we need to continue offshore drilling? Unfortunately, yes. Can we afford as a nation and a responsible society to do it under the conditions and regulations that exist today? Absolutely not. Some areas are just too precious and represent too great a risk to the public well-being. In other words, stay out of Alaska. And probably Florida's waters, etc., etc.
Prior to this disaster I would not have thought it took a rocket scientist to figure out that when you punch a hole in the crust of Earth, literally miles under water, from miles away, you have to figure something terribly wrong could happen, and design a number of back-up plans for "what if . . .” Clearly, that wasn't done. Moreover, it appears BP took as many shortcuts as possible and ran a variety of unsavory risks in the manner by which they set up and operated this site. I've read that the techniques they used in this well are not uncommon among other members of the industry. These companies know its risky, and not necessarily the best methods, but they are committed to keeping costs down and shareholder value up. If ever there was a case for Congress to step in and completely revamp an industry, this is it.
Now to matter of the BP brand. The jackasses working in the PR effort to protect BP's image should be ashamed of themselves. Proof that some people will do anything for money. Lots of it. Don't be swayed by their feeble defense that as professionals, they have an obligation to offer BP their services. They were not sworn to some PR version of physician's Hippocratic Oath. For the record, they might want to refer to a particular portion of that oath that reads: "First, do no harm."
This is a brand that does not deserve to be saved. See, a brand isn't about image. It's about behaviors. BP's behaviors have been deplorable. Instead of running costly full-page newspaper ads to tell America BP takes full responsibility and is going to deal with this to find a solution - FIND THE DAMN SOLUTION! Stop the media circus they are conducting, try being truly open with the American people, fire Cheney's PR person who you brought in to wave her magic wand over it all, (Can you believe they actually hired this twit?), begin offering some protection from the toxins to the thousands of workers you brought in to start cleaning up (despite BP's efforts to portray it as simply picking up litter, this is very dangerous work).
BP is about to prove once again, what I have been saying for my entire career: A brand is the property of the intended audience, not the company trying to advance it. A brand exists only in the minds of the stakeholders, not in the hands of the corporate wonks or shareholders. When BP chose to engage in risky behaviors for the benefit of its stakeholders, it made everyone on this planet a stakeholder. I believe, in response to one of the greatest corporate foul-ups in history, BP is about to see a "stakeholder" revolt unlike anything previously known to man.
I have no sympathy for those local BP dealers who claim their sales off by as much as 40% and the consumer outrage is misdirected at them. If for years you have gladly profited off the good will and clout of the BP brand, then you have to be prepared to accept the negative fallout you rightfully share in the disaster. You collectively chose as dealers not to hold your supplier to higher standards and failed to ask the right questions about procedures that might have prevented this.
The BP brand is dead. They corporate wonks that run the place will quickly set out to replace the name or sell off the assets as soon as the federal government lets them out of the headlock that is meant to keep them focused on cleanup. Don't be surprised to see the Amoco name resurrected. Is this a good move? I don't think so, but naming isn't BP's problem so until real changs are made in behaviors there, what they call the brand will make little difference.
Despite how angry the public gets and how costly this becomes to BP it is predicted they have more than enough insurance and assets to weather this. Sad, isn't it? BP might be a far smaller company when this is all over, but even that is unlikely. No, BP has protected itself well financially and you shouldn't expect they will shrink out of existance. That is not to say they might not, slink out of existance. Expect to see them drop a few tens of millions on image enhancement and a major rebranding effort. I do expect the BP name to go away in this country. People who cite how Exxon was able to continue after the Exxon Valdez disaster are comparing apples to oranges in the percieved relative magnitude of the situations, the long-term damage, the mood of the public for corporate irresponsibility today versus then, and the ability of social media to generate ire that wasn't possible during the Exxon era. I expect those BP PR wheels are already turning and some of my former colleagues are sopping up enough buckets of money to affort their own homes in the Hamptons alongside those of their clients.
If you get a chance, check out @BPGlobalPR on twitter. This person, identifying them self as Leroy Stick knows more about branding than most of us who claim to practice it for a living - probably because he/she has a clear moral compass, good judgment, sound reasoning and compassion for people and our Planet ahead of profits. Hey, come to think of it, BP, isn't that what a brand should be based on?
Thursday, March 25, 2010
Living Without the Brands You Used To Love
Manufacturers, especially in the food and beverage area have long been consumed with "case counts," - the movement of inventory, rather than brand loyalty. This trend has evolved over the past decade and is so prevalent that most brand managers today are more accountant than marketing person. In the "old days" brand managers were largely marketing and promotions people.
In an effort to reverse the decline in soft drink sales being experienced industry-wide as a result of consumer trends toward healthier lifestyles, soft drink manufacturers have begun significantly raising prices. Just last year, in the Chicagoland area, consumers could walk into any major supermarket chain and benefit from pricing wars to buy four or five twelve packs of Coca-Cola or Pepsi products for under $10. Today, on sale, consumers are getting three 12-packs for ten to twelve dollars. In some cases, supermarkets are offering three 12-packs for nine dollars with a qualifying minimum purchase of ten dollars.
Even more of a threat to sales and margins is the shift in power away from the manufacturer to the retailer.
Costco, with its more than 400 stores drew a line in the sand and stopped offering Coca-Cola products because the beverage company refused to offer the warehouse club pricing that is consistent with the store's below-market strategy. Costco represents a significant portion of Coke's business. Coke, on the other hand, is less than half of one percent of Costco's $70 Billion annual sales.
Costco didn't run the risk of alienating its customers by ceasing to carry Coke because its customer base knows that Costco carries items on an irregular basis depending on pricing and packaging values. The standoff was recently settled when Coca-Cola backed down. Terms of the agreement were not disclosed.
I don't know if it's still true today, but years ago around McDonald's corporate headquarters, they bragged that if Coke lost the fast food giant's business the soft drink company would fall from number one in fountain sales in America to number four. Today, McDonald's is offering "buy any beverage for a buck" promotions. That may sound like a good deal but as recently as last year, McDonald's offered the same size product for as low as seventy-nine cents depending on the market and owner/operator participation. I doubt much of any of that increased margin is finding its way to Coke's Atlanta headquarters.
Walgreens is in the midst of a major makeover of its stores from the "drug store and sundry" model of old to compete with supermarkets and convenience stores. You'll be able to buy cold beer and a number of other previously unavailable products at every Walgreen store. Many of the things you used to buy at your corner drug store won't be sold there anymore as merchants slim down the variety and product offerings to focus on the most profitable margin items.
The shift in marketplace power is dramatic. As consumers preferences continue to change, retailers adjust their offerings to meet customer needs, sales goals and profit margins, you can expect some longtime, iconic brands to fade in prominence faster than ever, be acquired and merged, and in some cases, disappear altogether.
In an effort to reverse the decline in soft drink sales being experienced industry-wide as a result of consumer trends toward healthier lifestyles, soft drink manufacturers have begun significantly raising prices. Just last year, in the Chicagoland area, consumers could walk into any major supermarket chain and benefit from pricing wars to buy four or five twelve packs of Coca-Cola or Pepsi products for under $10. Today, on sale, consumers are getting three 12-packs for ten to twelve dollars. In some cases, supermarkets are offering three 12-packs for nine dollars with a qualifying minimum purchase of ten dollars.
Even more of a threat to sales and margins is the shift in power away from the manufacturer to the retailer.
Costco, with its more than 400 stores drew a line in the sand and stopped offering Coca-Cola products because the beverage company refused to offer the warehouse club pricing that is consistent with the store's below-market strategy. Costco represents a significant portion of Coke's business. Coke, on the other hand, is less than half of one percent of Costco's $70 Billion annual sales.
Costco didn't run the risk of alienating its customers by ceasing to carry Coke because its customer base knows that Costco carries items on an irregular basis depending on pricing and packaging values. The standoff was recently settled when Coca-Cola backed down. Terms of the agreement were not disclosed.
I don't know if it's still true today, but years ago around McDonald's corporate headquarters, they bragged that if Coke lost the fast food giant's business the soft drink company would fall from number one in fountain sales in America to number four. Today, McDonald's is offering "buy any beverage for a buck" promotions. That may sound like a good deal but as recently as last year, McDonald's offered the same size product for as low as seventy-nine cents depending on the market and owner/operator participation. I doubt much of any of that increased margin is finding its way to Coke's Atlanta headquarters.
Walgreens is in the midst of a major makeover of its stores from the "drug store and sundry" model of old to compete with supermarkets and convenience stores. You'll be able to buy cold beer and a number of other previously unavailable products at every Walgreen store. Many of the things you used to buy at your corner drug store won't be sold there anymore as merchants slim down the variety and product offerings to focus on the most profitable margin items.
The shift in marketplace power is dramatic. As consumers preferences continue to change, retailers adjust their offerings to meet customer needs, sales goals and profit margins, you can expect some longtime, iconic brands to fade in prominence faster than ever, be acquired and merged, and in some cases, disappear altogether.
Sunday, March 7, 2010
To Blog Or Not To Blog
At dinner last night a couple said they are considering a blog to help promote their book about teaching sibling children about breast feeding. http://www.amazon.com/Mommy-Breastfeeds-My-Baby-Brother/dp/0981653804 I mentioned that another friend of mine sent me a link to an article from Inc. Magazine written by Joel Spolsky. www.inc.com/magazine/20100301/lets-take-this-offline.html Mr. Spolsky began a blog (Joel on Software) over ten years ago, even before starting his successful company, Fog Creek Software. His site grew to over a million unique visitors a month, making it one of the oldest and most successful blogs in existence. He used this recent Inc. article to announce that he no longer has the time or the interest in continuing his blog.
The reason my friend sent the article to me was, as he said, "You could have written this."
You see, I don't blog for feedback, to grow my business, or to one day generate revenue from my writing. I blog because something inside me wants to be expressed. I consider blogging to be like my piano playing - meant for no one's satisfaction but my own. I never play for others. The fact that someone might happen by my front door and hear me playing is of no importance. Much like the words I write, the notes I play are meant to express and release something, not communicate, inform or entertain another. Self absorbed? Perhaps. I look at it differently. I do not excel at writing anymore than I do music, but I feel refreshed, energized and better suited to tackle the issues where I am expected to excel: parenting, marriage, friendship and good citizenry after doing either endeavor.
I write and play what moves me. Like the notes on the piano as they sail into the abyss of sound, once the words move from my mind to my keyboard, it doesn't matter if they are lost forever in the black hole that is the Internet. However, when I write, I always attempt to assume the reader's position, not the writers. Good storytelling whether oral, musical, or written is always about audience. It must provoke the thought "I see me." That is the fundamental tenet of branding as well. So, you see, music and writing are merely tools for sharpening my branding storytelling instrument as listener. I save them here to revisit and evaluate my storytelling, not to share them with the world. Having them on the Internet provides a forum where certain standards of engagement are expected. Otherwise, I'd merely save them in Word.
To me, writing is like branding. It must always be about them, and never about me/us. Blogs that promote a company or product are doomed. Blogs, like successful brands must address something bigger than themselves. On that point Mr. Spolsky and I are in complete agreement.
Back to my dinner friends . . .
Rather than express my views about my music and blogging, I shared with them the advice from Mr. Spolsky's article. A blog won't help them sell more books. Sharing their insights on subjects larger than their book topic might gain significant numbers of followers, but a blog meant to sell books will fail. As Mr. Spolsky rightly points out, "Do you know anyone who gained a single customer from a blog?" I don't.
Earlier in the week, the husband of this same couple sent me a note telling me how much he enjoyed my blog writing and offered a couple of good suggestions about the appearance of it. During our dinner, he went further and suggested I disable the ability for readers to comment since no one has added even a single comment. As he put it, "No one wants to be the first, so no one comments. With no comments, it appears no one else is reading the blog. Besides, as much as I agreed with and enjoyed what you wrote I didn't feel compelled to write 'Yes, I agree,' or comment myself."
My blog only has 6 followers including my daughter, her ex-boyfriend (Sorry Ben if that stings - I know the wound is still fresh), a couple of past clients, a friend, and a woman who found my site but remains unknown to me. I do get email feedback from other people from time to time who wish to express their own views privately. As much as I appreciate their correspondence, I have to admit feeling a little guilty since I view this blog as more a journal than a public forum.
Blogs that want feedback and comments make succinct comments and ask questions. My blog is comprised of long form essays that make stands. As the name states, I am all about brands that stand and for that to be, one must declare where they stand.
The reason my friend sent the article to me was, as he said, "You could have written this."
You see, I don't blog for feedback, to grow my business, or to one day generate revenue from my writing. I blog because something inside me wants to be expressed. I consider blogging to be like my piano playing - meant for no one's satisfaction but my own. I never play for others. The fact that someone might happen by my front door and hear me playing is of no importance. Much like the words I write, the notes I play are meant to express and release something, not communicate, inform or entertain another. Self absorbed? Perhaps. I look at it differently. I do not excel at writing anymore than I do music, but I feel refreshed, energized and better suited to tackle the issues where I am expected to excel: parenting, marriage, friendship and good citizenry after doing either endeavor.
I write and play what moves me. Like the notes on the piano as they sail into the abyss of sound, once the words move from my mind to my keyboard, it doesn't matter if they are lost forever in the black hole that is the Internet. However, when I write, I always attempt to assume the reader's position, not the writers. Good storytelling whether oral, musical, or written is always about audience. It must provoke the thought "I see me." That is the fundamental tenet of branding as well. So, you see, music and writing are merely tools for sharpening my branding storytelling instrument as listener. I save them here to revisit and evaluate my storytelling, not to share them with the world. Having them on the Internet provides a forum where certain standards of engagement are expected. Otherwise, I'd merely save them in Word.
To me, writing is like branding. It must always be about them, and never about me/us. Blogs that promote a company or product are doomed. Blogs, like successful brands must address something bigger than themselves. On that point Mr. Spolsky and I are in complete agreement.
Back to my dinner friends . . .
Rather than express my views about my music and blogging, I shared with them the advice from Mr. Spolsky's article. A blog won't help them sell more books. Sharing their insights on subjects larger than their book topic might gain significant numbers of followers, but a blog meant to sell books will fail. As Mr. Spolsky rightly points out, "Do you know anyone who gained a single customer from a blog?" I don't.
Earlier in the week, the husband of this same couple sent me a note telling me how much he enjoyed my blog writing and offered a couple of good suggestions about the appearance of it. During our dinner, he went further and suggested I disable the ability for readers to comment since no one has added even a single comment. As he put it, "No one wants to be the first, so no one comments. With no comments, it appears no one else is reading the blog. Besides, as much as I agreed with and enjoyed what you wrote I didn't feel compelled to write 'Yes, I agree,' or comment myself."
My blog only has 6 followers including my daughter, her ex-boyfriend (Sorry Ben if that stings - I know the wound is still fresh), a couple of past clients, a friend, and a woman who found my site but remains unknown to me. I do get email feedback from other people from time to time who wish to express their own views privately. As much as I appreciate their correspondence, I have to admit feeling a little guilty since I view this blog as more a journal than a public forum.
Blogs that want feedback and comments make succinct comments and ask questions. My blog is comprised of long form essays that make stands. As the name states, I am all about brands that stand and for that to be, one must declare where they stand.
Wednesday, February 24, 2010
Toyota Recall Advice
Like every other brand expert in the world, I have to chime in regarding the Toyota recall. Since so much has been written and said about the depth of Toyota's problems and what it will take to repair the damage, I will keep my remarks short.
Issue #1: HEY, TOYOTA start making SAFER, more reliable, and better cars. The proof is, you haven't been doing that despite all your apologies and claims "We're really concerned."
Issue #1: HEY, TOYOTA, stop TALKING (ads) about what a great car you make and how dedicated your people are and START doing it! The fact that you INCREASED your ad spending underscores your insincerity, and your belief that you can buy your way out of the problem. When will corporate America (and Japan) learn that throwing millions of dollars into your ad agencies bank account DOES NOT improve the situation. Of course, the ad agencies will argue they are part of the solution. Go to a carpenter and ask them how they solve problems and they'll use a hammer. A brand is not advertising or marketing. Your ad agency is in the process of underscoring it and your future sales will confirm it.
Issue #3: HEY, TOYOTA, at what point do you come to the realization that you sell more because what you sell is better than the next guy instead of you sell more because you sell more. The worst thing you could hope to be is what you were - a bloated, arrogant, customer disregarding, mass producer of autos.
Issue #4: Every single car you build represents a person, a future owner, and their loved ones, not a machine. Start building cars as if your child were riding in it instead of buidling it as if your child was profiting from it.
Issue #1: HEY, TOYOTA start making SAFER, more reliable, and better cars. The proof is, you haven't been doing that despite all your apologies and claims "We're really concerned."
Issue #1: HEY, TOYOTA, stop TALKING (ads) about what a great car you make and how dedicated your people are and START doing it! The fact that you INCREASED your ad spending underscores your insincerity, and your belief that you can buy your way out of the problem. When will corporate America (and Japan) learn that throwing millions of dollars into your ad agencies bank account DOES NOT improve the situation. Of course, the ad agencies will argue they are part of the solution. Go to a carpenter and ask them how they solve problems and they'll use a hammer. A brand is not advertising or marketing. Your ad agency is in the process of underscoring it and your future sales will confirm it.
Issue #3: HEY, TOYOTA, at what point do you come to the realization that you sell more because what you sell is better than the next guy instead of you sell more because you sell more. The worst thing you could hope to be is what you were - a bloated, arrogant, customer disregarding, mass producer of autos.
Issue #4: Every single car you build represents a person, a future owner, and their loved ones, not a machine. Start building cars as if your child were riding in it instead of buidling it as if your child was profiting from it.
Sunday, January 24, 2010
What If Haiti Is Never Rebuilt?
The media coverage of vast devastation and human suffering in Haiti has conveyed a sense of urgency seldom seen before. The outpouring of support included an unprecedented TV special simultaneously picked up by numerous networks and cable outlets that generated more than fifty million dollars. Americans also used texting to automatically generate contributions at a level never before seen.
As horrific as the tragedy has been in the island nation, it is already slipping from people's concerns as the "news fatigue" factor kicks in. Anytime there is a disaster of great magnitude caused by nature, people of this country are quick to respond. Likewise, there is also always a rumbling from some people about "helping our own" rather than giving to others beyond any I have seen before.
Perhaps because of the magnitude of the destruction in Haiti, or the massive fundraising that has occurred, there seems to me to be a significantly higher level of opposition to Haiti relief than I've noticed during other disasters. There may be racial and socio-economic factors at play, but I think most of the resistance to long-term aid to Haiti is driven by a different motive.
It is one thing to provide immediate assistance to those in need of medical attention, food, water, and temporary shelter. It is quite another to suggest that America has a duty to help rebuild Haiti.
The people of Haiti have lived at the lowest level of poverty in the Western Hemisphere for decades as the bottom of the barrel definition of "Third World" conditions. Those conditions existed because the people of Haiti have done nothing to correct their leaders. Haiti has no economy to rebuild. It lacks the structure of a society, or the cultural mores to promote the general good. There is no agriculture, manufacturing, service industry or tourism in Haiti. Haiti has long been a nation of deadbeats run by a handful of thieves.
If America were to rebuild Haiti what would be built? No farms or factories of any significance were destroyed. In essence, aside from a few poorly constructed office buildings, schools, hospitals and hotels, the only building of significance that was destroyed was the palace. Most of the structures that were destroyed were poorly constructed housing and shanties. Because the people of Haiti have allowed themselves to be ruled by corrupt and self-serving people there were no meaningful building standards, or worthy infrastructure. You didn't hear about the public water treatment center, or the bridge and highway system being wiped out because they didn't exist in any meaningful form. In many ways, Haiti has been culturally bankrupt and lacks the collective will to live otherwise. The Dominican Republic, while not a perfect state, has used self-determination and market forces to create a far better society for its people on the same island.
People who suggest that by building modern, safe homes, hospitals, schools, workplaces and roads in haiti will somehow keep anti-American influences such as Muslim radicals, and South American communists from gaining a foothold I ask, so why weren't those forces successful prior to the disaster?
I agree we should provide all the medical assistance, first aid and humanitarian provisions needed by the people of Haiti. If Haiti is to be rebuilt, let the people of Haiti do it, or invite outside private enterprise to determine what can economically flourish there. If the land is too barren to support agriculture, the people too poorly educated to support commerce, and the political will too low to take back their destiny, I do not think it is America's place to rebuild that nation's housing, roads, and economy. Until the people of Haiti are willing to work toward their own future, it is wrong for the U.S. to assume we can create a better place there.
As horrific as the tragedy has been in the island nation, it is already slipping from people's concerns as the "news fatigue" factor kicks in. Anytime there is a disaster of great magnitude caused by nature, people of this country are quick to respond. Likewise, there is also always a rumbling from some people about "helping our own" rather than giving to others beyond any I have seen before.
Perhaps because of the magnitude of the destruction in Haiti, or the massive fundraising that has occurred, there seems to me to be a significantly higher level of opposition to Haiti relief than I've noticed during other disasters. There may be racial and socio-economic factors at play, but I think most of the resistance to long-term aid to Haiti is driven by a different motive.
It is one thing to provide immediate assistance to those in need of medical attention, food, water, and temporary shelter. It is quite another to suggest that America has a duty to help rebuild Haiti.
The people of Haiti have lived at the lowest level of poverty in the Western Hemisphere for decades as the bottom of the barrel definition of "Third World" conditions. Those conditions existed because the people of Haiti have done nothing to correct their leaders. Haiti has no economy to rebuild. It lacks the structure of a society, or the cultural mores to promote the general good. There is no agriculture, manufacturing, service industry or tourism in Haiti. Haiti has long been a nation of deadbeats run by a handful of thieves.
If America were to rebuild Haiti what would be built? No farms or factories of any significance were destroyed. In essence, aside from a few poorly constructed office buildings, schools, hospitals and hotels, the only building of significance that was destroyed was the palace. Most of the structures that were destroyed were poorly constructed housing and shanties. Because the people of Haiti have allowed themselves to be ruled by corrupt and self-serving people there were no meaningful building standards, or worthy infrastructure. You didn't hear about the public water treatment center, or the bridge and highway system being wiped out because they didn't exist in any meaningful form. In many ways, Haiti has been culturally bankrupt and lacks the collective will to live otherwise. The Dominican Republic, while not a perfect state, has used self-determination and market forces to create a far better society for its people on the same island.
People who suggest that by building modern, safe homes, hospitals, schools, workplaces and roads in haiti will somehow keep anti-American influences such as Muslim radicals, and South American communists from gaining a foothold I ask, so why weren't those forces successful prior to the disaster?
I agree we should provide all the medical assistance, first aid and humanitarian provisions needed by the people of Haiti. If Haiti is to be rebuilt, let the people of Haiti do it, or invite outside private enterprise to determine what can economically flourish there. If the land is too barren to support agriculture, the people too poorly educated to support commerce, and the political will too low to take back their destiny, I do not think it is America's place to rebuild that nation's housing, roads, and economy. Until the people of Haiti are willing to work toward their own future, it is wrong for the U.S. to assume we can create a better place there.
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