Chris's Blog

Gorilla gets the sales

I commented back in September about whether the fresh thinking behind the TV commercial of a man in a gorilla outfit playing drums to Phil Collin’s hit ‘In the Air Tonight’ would boost sales and enhance the appeal of Cadbury’s CDM chocolate.

Great news-the gorilla has delivered!

The award-winning ad broke all the rules, and Cadbury’s sales are up by more than 6 per cent on the back of its success. Although initially it was released on TV it has also become a huge Internet hit, with more than 5 million viewings on Youtube . It also generated 100 spoofs on the site too.

Proof that both fresh ideas combined with digital and viral marketing techniques are central to getting messages through all the clutter-especially to the under 35’s, and work as excellent support to mainstream campaigns.

In terms of return on investment the £6 million Cadbury's spent on paid advertising has certainly resulted in acres of free editorial coverage in conventional mainstream media, plus references on blogs, websites etc. (In Australia the ad didn't air, but it didn't stop them showing it in full on the national news!).

The Financial Times states that tracking agency Go Viral reports it was the 'most watched' viral ad of the year ahead of these:-

1. Cadbury Gorilla drummer
2. Smirnoff Green Tea partay-3.4 million views
3. Ray-Ban-catch sunglasses-3.2 million views
4. Blend-tec, 'Will it blend' ( subject of an earlier post)-2.7 million views
5. Lynx/Axe-born chicka wah wah-2.6 million views

But who was the man inside the Gorilla costume? The Sun scoop is here.

For Head First client stories click here

When the 'long game' pays off

Interesting to read the most recent and excellent Pearson plc results.

Just over a decade ago Pearson (no relation) was a conglomerate of diverse businesses-from oil to books to fine china. Then Marjorie Scardino was recruited to replace the ‘old guard’ and re-shape it into a publishing, education and information powerhouse.

Pearson had frequently been criticised for underperformance, and the new direction of the business- ‘focussed’ by comparison- was held out to be the answer.

But the initial ride was bumpy.

Off-loading behemoth’s like Lazards whilst trying to acquire businesses that were either ‘content rich’, or relied heavily on guessing accurately the impact of the then immature Internet on future business, was no easy task. The dot.com boom and bust came and went, globalisation and education moved higher up the economic and social agendas, but the report card by the city scribblers continued to read ‘could do better’ year on year. However, Dame Marjorie held out that it would all come good and that her long-term strategy was not for the faint-hearted.

Now the latest set of results, just over a decade later bear her strategy out.

The share price continues to climb…with the underlying message that to ‘set the sails’ is preferable to ‘tacking with the wind’ and heeding the hecklers.

Success- takes a little time

A quick run down of Britain's Top 100 entrepreneurs as published in Management Today magazine suggests that although many entrepreneurs might aspire to instant success, it generally takes a little time. Most of those featured are in 'middle-age'.

The dominance of Services in the poll illustrates where success lies in the UK economy today.Only 8 of the Top 50 are industrialists. However, a wide range of opportunities are listed.

But whilst a large proportion of the list are financial entrepreneurs, they've collectively created jobs. 50,000 between them over the last 5 years- taking the total they employ to nearly 110,000.

Pole position goes to Peter Cruddas of CMC Group-who has amassed a fortune of £800 mill....since 1989.

How Toyota conquered the world

This article tells the story of how Toyota has become the most successful car company in the world ( may need subscription).

Toyota's stock market valuation is $240billion-higher than Ford, GM, Daimler Chrysler, Nissan and Honda combined.And the New York Times writer suggests that if Toyota were a baseball team it would win 150 out of 162 games.

Whilst their competition are over-weight and struggling with over-capacity, downsizing, falling demand, stocks and severe financial challenges, Toyota go from strength to strength.

What did they do right?

Two things stand out.

They focused on small innovations delivering big improvements to production efficiencies, products and output over time. And they maintained an absolute focus on customers. They call it genchi genbutsu, understanding what customers want in cars and where current vehicles are failing them.

They even sent a team of engineers to inspect rusty old trucks in a scrapyard to see how trucks had evolved over 30 years to see if they could gain an insight into how they might develop over the next 30!

Price a 'quick win'

In the context of the recently released UK inflation figures, the continual downward pressure on selling prices in many sectors, and there being fewer big opportunities to re-engineer processes and costs these days, can a price reveiw really yield a quick financial benefit to a company?

Absolutely.

Companies often don't give pricing the focus it commands in terms of it's ability to deliver straight to the bottom line without the aggravation of re-structuring, HR costs, layoffs or severance.

Why?

- Because sales departments or front line staff rarely advocate price increases
- Finance departments often don't see it as their responsiblity
- Senior Managers are often remote from the 'front-line' and detail
- There isn't financial rigour around the net profit figures of products and services

So,

- Challenge the price options available
- Understand competitive relationships
- Focus on the micro- items, not just ranges
- Test market price perceptions
- Exploit any structural benefits, such as supply chain etc
- Identify if your proposition can sustain an increase through innovation, services etc

Reducing prices demands significant increases in volumes to retain profitablity. So challenge what the effect a new pricing strategy will really do to your 'bottom line'.

In a business world where 'quick wins' are continually being sought, pricing strategy is all too often overlooked.

Merry Christmas and Thank you

In amongst all the e-mails from traders reminding me of their great Xmas offers, last delivery dates for Xmas and opening times over the holiday period, came the e-mail below from Abe Books.

How nice to receive a simple message wishing me a Merry Christmas, thanking me for my custom, reminding me of their great service.

More effective and motivating than all the reminders RE: 'Our biggest ever sale is now on', that keep dropping into my in-box.

Apple's ascendency

Ever since reading John Sculley's outstanding book 'Pepsi to Apple' on a very long flight back in 1990, I've followed the fortunes of Apple closely. I aquired a Mac three years ago, and can bore for Britain about how great it is.

Why didn't I buy before?

David Pogue's tech column in this week's New York Times reminds us of the rotten tomatoes that were thrown at Apple for many a year. The media and pundits wrote them off. And he lists exactly what they said, and where and when they said it. They predicted it was all over for Apple. Buyer beware!

But they got it wrong. Apple went on to change the rules of the game, and simultaneously raised their game, whilst the encumbents fought it out for market share. Now Apple are..well, the apple of the media and stock market's eyes. More valuable than Dell, they have created the coolest designs, simplest functionality and the ultimate new toys for the 'iPod generation'.. One writer described them as the 'Armani of technology'.

What's this tell us?

Well, firstly don't always believe the media pundits. Secondly, when you're on the back foot you need to change the rules of the game to succeed. And thirdly, you can't keep doing the same things and expect to get a different result.

Bill Ford and the Temple of Delphi

In today’s global economy where there are many corporate examples of individuals who demonstrate arrogance, incompetence, avarice and ‘fat cat’ tendencies, it’s refreshing to see an example of true integrity and leadership in Bill Ford (William Clay Ford Jnr), CEO of The Ford Motor Company.

If your name’s on the building and the product; the business is in your DNA, and you’ve spent your whole life working your way to CEO through all the challenges an old industrial rust belt giant can throw at you, you may feel it is your destiny to turn the business round at this critical point in it’s history.

Not Bill. After 8 years as CEO he realises he needs help. Someone to compensate for his limitations and weaknesses, someone who can bring about a change in fortunes for Ford, and help it achieve it’s longer-term vision.

How often do we see corporate leaders taking stock and recognising their own true capabilities? And acting in the interests of the business first?

‘Know thyself’. Wasn’t that what the ancient Greeks carved on the Temple of Delphi?

Smooth Operator tops the chart

Readers of Marketing Week voted Richard Reed the most influential marketer in the UK. He’s one of the 3 founders of Innocent, the fruit drink company that started life at a music festival 7 years ago and now turns over £80 million and has a 60% market share.

Reading a profile of Reed in today’s Independent, he says Innocents’ success has been achieved as a result of being absolutely focussed as a business and remaining true to the values of honesty, truth and simplicity-‘we don’t sit around all the time on bean bags’.

It is a great brand. You know what it stands for. It’s fun, it’s recognisable and distinctive, has a 'healthy' reputation, and friendly personality. Innovative new products talk to you from the shelf, new ideas proliferate, growth has been phenomenal, and success continues. And it delivers on it's promise.

Can't knock that. Reed gets my vote too.

Does the fact that technology remembers for us matter?

How many telephone numbers do you know by heart these days? Is the fact that technology often remembers for us bad?

An interesting perspective in T2 this week in sync with the BBC’s series on The Memory Experience is the view of Martin Conway, Professor of Psychology and Memory at Leeds University. He says,

technology reduces the burden on memory and increases our ability to make use of our minds. It is enabling rather than disabling.

For Head First it’s about the quality of thought too….