Category Archives: Business

Nose-to-Tail Guide to Marketing

Recently there has been lots of buzz around restaurant called Wolf here in Singapore. They embrace “nose-to-tail”-ideology, which was coined by Fergus Henderson, whose restaurant St.John has been the culprit of the movement. Basically nose-to-tail eating means that you utilize all the parts of pig (or other animal).

I think it is an interesting phenomenon and there are certain lesson marketer can learn from nose-to-tail eating:

1. Sense the opportunity
Eating animal parts like tongue was common back in the day, because they were inexpensive. You utilized the whole hog, because you did not want waste good any edible parts. Nowadays the average restaurant visitor is so distanced from the body parts of animal, that there is opportunity now to charge high premium for previous b-grade product like bone marrow. Offal, bone marrow or even liver used to be common dishes but now they are exotic. On the other hand, average restaurant visitor is more adventurous cultural eater nowadays having been exposed to cuisines around the world. This provides great opportunity to reinvent some long lost meat dishes to paying audience.

2. Go back to the roots
Henderson did not need to reinvent wheel. Many of dishes are based on forgotten British recipes. Whereas other competitors were either looking for hypermodern approach (molecular gastronomy) or ethical cuisine for inspiration, Ferguson used the parts everyone else neglected. More often brands should really revisit what has made them unique instead of trying to revamp themselves every other year. Sometimes the answer to your problem is closer than you would believe.

3. Build the philosophy
When the money was tight, it made sense to utilize the whole animal. It strikes a chord well also with current discussion around ethicality of meat eating and always when financial crisis hits. Like Fergus Henderson concluded: 
“If you´re going to kill the animal it seems only polite to eat the whole thing”
It is not exactly going vegetarian or addressing the problems of meat production, but it is still step to the right direction.

4. Name it well
Nose-to-tail invokes curiosity and immediately tells what to expect. It is also quite open canvas to experiment as you can serve anything starting from nose ending to the tail. It does not exclude you to serve more “normal” items as well”

5. Make business sense
Making profit in restaurant business is actually about making more out of less costly ingredients instead of charging high premium of expensive items. Wagyu beef is expensive for the restaurant as well. So when done well, nose-to-tail is makes quite a much business sense as well. The premium you can charge for tongue is quite high.

 6. Deliver with passion
There are no shortcuts to excellence. Even with the five above points intact without the passion and craft for good food, Nose-to-tail eating would not be the phenomenon what it is now. In the current competitive landscape it is not enough that your product is superb, you have to tell a good story as well.

I have not yet tested Wolf, so the verdict is still out for its quality. Otherwise, I am firm believer of nose-to-tail eating.

Firstly it makes a good story and the most importantly it tastes good!

Tagged , , , , , , , ,

Retargeting: The Thin Line Between Hyper-Effective & Hyper-Creepy

During the last year the amount of behavioral retargeting has exploded. In layman´s terms retargeting means:

1) You visit brand site for the reason X.
2) They attach cookie to you, which enables them to detect you when you are surfing on other sites.
3) The brand starts stalking you and populates majority of the sites you are visiting with their ads (as majority of sites sell at least part of their ad inventory through ad networks).
4) Retargeting has usually quite high ROI as it usually employs RTB (another media buzzword). Real-time bidding is explained in the video below:

How Real-Time Bidding (RTB) Works (in 30 Seconds) from Dr. SiteScout on Vimeo.

5) Eventually you break and buy something from the brand.
6) Or you are just super annoyed and block all the ads.

Don´t get me wrong. I think retargeting is a great asset in your digital toolbox like programmatic marketing in general. However, it is not the silver bullet that some vendors make it out to be. The hype around programmatic buying resembles little bit the over-excitement around SEO/SEM few years back. Too often retargeting is done too sloppily and you are harassed by irrelevant brand message because you almost accidentally happened to visit brand site. Visit is quite often too weak metric for retargeting especially if combined with a generic message.

Recently I visited these two retail websites (Dodocase, Mutewatch) and got served these retargeted ads:

Dodocase Retargeted AD

Mutewatch

Guess which one I clicked and also bought from?

Tagged , , , , , , ,

Moment of Truth for Your Brand is Always

I have had great experience every time I have flown TigerAir. I like the new look and the booking process  has been pleasant on their site. When I was booking a flight to Kuala Lumpur, my user experience was this:

Tigerair Missed Opportunity
Did I try again later?

Hell no, I booked my flight elsewhere. Planning the holiday is fun and you can spend hours and hours for that dreaming phase. After that dreamy planning, the actual booking of the holiday (especially from budget airline) is just a fast transaction. You want to those chores as fast as possible.

All the nice branding and positive experiences won´t help you if you fail in the basics. It is totally ridiculous that airlines (Tigerair is not the only one) seem to buy their most business-critical functions from wholesale. There should never be a situation of heavy traffic in airline site, if you really think about it. You should not be cheapskate in all the things, even though you are budget brand. Because in that category being effective always trumps brand loyalty.

In certain categories, your moment-of-truth is always.

Tiger failed when they should have performed and also missed sure sale as well. Actually I had to buy the flights from other airline, which has less friendly UI and far more ugly logo as well. Their site just was not down when it was the moment-of-truth for my transaction.

Tagged , , ,

What Can You Learn Just By Buying Yoghurt?

I find working with supermarket retail clients really interesting. The fast pace and the sheer amount of consumers visiting single store is mind-boggling. Actually one of my first projects when I started to work in Singapore was around retail clients (having done my share of retail clients back in Finland). Although I do not currently work with retail client, I am still learning every time I go to my near store. You learn from the actual store, the products and especially how people go berserk in the queues.

Last Saturday I started to count my lessons during one (not brief, not pleasant) trip to my nearest hypermarket, Giant. There were five major ones:

1. Your habits change only when you are forced to it
As we know shopping habits are hard to break. Usually it requires quite drastic change for person to change his everyday shopping habits. One of those drastic changes is moving to another country.
In Helsinki my shopping habits was probably best described as wanna-be hipster yuppie being extreme hurry. Weekday groceries were done in the fast and convenient nearby store. On weekends I was mostly shopping in overpriced organic artisanal specialty shops spending my hard-earned pennies in hyper-expensive bread, beers, charcuterie and probably some superfoods (although I do not even know what that means).
After moving to Singapore, I took a drastic time travel and suddenly became middle-aged suburbanite who goes to hypermarket every week. What the hell happened to me? Suddenly I also became super price-conscious and am currently comparing the price development of guavas weekly. I am ashamed of myself, but there is practical reason for this change.

2.Identify the key products that drive the shopping decisions
Behavioral psychologist would probably find different traumas attached to my moving, but actually the sudden shift of my shopping habits was tied to one single product: yoghurt. Although I appreciate my hokkien mee as the next man, I still need my western breakfast (yoghurt+muesli) every morning. Smaller convenience stores do not stock bigger yoghurt packages, so the closest option was the nearby hypermarket. It is always truly educating experience to get lost in there.

3. When you learn the floor plan, you do not want to change your store
It took me last weekend almost 20 minutes to find light bulbs!
You think that the floor plans of the hypermarkets are logical, but they are not. They are deceptive mazes, where you get lost and end up buying candy and dental floss even though you do not need either one. Messy floor plans are good way to increase the loyalty. You do not want to search another 20 minutes of light bulbs in a strange store. Once you learn the floor plan of your designated store, you shop there forever. Even if the store would close down.

4. Not every promotion is an effective one
Back to the yoghurt: my main brand Marigold has the creepiest promotions and promoters. Last Saturday they handed me this:
Creepy Marigold Promotion
What the hell is this? Turtle with udders? Also it was super odd situation in general. I was stacking the yoghurt when promoter suddenly came and handed me this item (+coasters as well, which I could understand). How weird is that? You have promoters stalking the dairy shelves and attacking the person who is buying certain brand. Truly disturbing, but on the other hand I got a Christmas present for some lucky bastard.

5.Do smart innovations
I am all for innovative solutions, but sometimes too much innovation does not make sense. I tested out first time the self-service check out in Giant and it was a complete fiasco.
Majority of the products I was buying were. Fruits do not have barcodes. Barcodes are quite essential for self-scanning. I was not the only one messing up the fancy new technology.  I actually took certain pride of being the only customer who did not double scan any of the items.
Because of this design flaw, every self-service check out kiosk actually had one person to help people to go through the tedious process. How in the hell that makes business sense? How can you even call those kiosks self-serve?
Eventually the self-checking of the products took way longer than the normal route. Sometimes it is better to innovate more modestly. Good way to start in Singapore would be to introduce self-packing and start charging for the plastic bags. Nevertheless what I buy I always end with over 20+ plastic bags and every single item in different bags. In environment like this self-service is just too big step for an average consumer like me!

I learned so much last week during my hypermarket visit that I can´t just wait to skip the whole process this week. I rather live without my yoghurt.

Tagged , , ,

Fart with Confidence and How There Is Demand for Pretty Much Anything

When you market is the whole world you can pretty much sell anything and there is demand for what you do. I think it is a question of point-of-view whether this thought is comforting or disturbing. I was reminded about this when colleague, whose identity I want to protect, because he was probably buying them for himself, put me up on this:

Fart with Confidence

Shreddies
So basically it is underwear, which neutralizes your farts, so they do not smell. Apparently it uses high-technology carbon cloth “Zorflex”, which dissolves the odor.  It was originally used in chemical warfare suits, but now everyone can use that technology when releasing their own private “chemical warfare”.

Chemical Warfare

I understand that severe flatulence is no laughing matter (or it should not be), but I still it hard to not found this a little bit amusing. Especially because their tagline is “Fart With Confidence”.

This odd product raise couple of questions:
– If flatulence causes you uncomfortable social situations, why do you want to use underwear product with such as a prominent branding?
– Who are those perverts who smell each other when they are farting (referring to the picture)?
And if you have decided to practice those weird activities, what is the point of smelling the fart if you cannot smell it (referring to the picture as well)? Is it some kind of vibration thing? 
On the philosophical tip, if you fart and no one smells it, did you really fart?
Will they next upgrade the product to remove the noise as well?
Have they considered using this chap as their spokeperson? Or sponsor this event?

Shreddies have big potential target audience, as normal person farts approximately 14 times a day. Also if you would fart consistently for 6 years and 9 months, you would produce enough gas to produce atom bomb. I found this in the Internet, so it must be true.

Tagged , , , , , , ,

Is SEO Finally Dead?

SEO is dead.
I have never been specialized in search. I have many times worked with search specialists in various projects and I appreciate the work they do. Understanding the meaning of Google in consumer life is crucial, but SEO (or SEM for that matter) is just a part of a bigger picture. Remembering the time when clients believed that SEO is a silver bullet, I have always had my firm principals on how I approach the search:

1)   SEO is competitiveness, not competitive advantage.
Making your website search engine optimized is easy for your competitors to do as well. How do you differ from them when they have are optimizing same way as you do as well? This is apparent in highly competed fields of traffic. Tabloids or online travel portals compete head-to-head and the number one search position changes hourly. Of course if you have not made sure of the basic hygiene issues, you have most likely lost the game already. Doing search well is something that is not enough to differentiate anymore.

2)   You should create your content for people not for the search engines. 
I have blogged for almost 10 years in various instances. Sometimes I have done tests and wrote the content more with the keyword-glasses on. What I have noticed is that good content will always become popular no matter what words you use. Some of my most read posts have had actually really mundane titles and go against all the rules of the traditional “write for search engines” –rule. Of course I know that I am not Perez Hilton or Seth Godin (or do I?), and my blog post is only a tiny-tiny-tiny fraction of what is happening in Internet in general. But so is majority of the web content. Companies should first concentrate on how they can be useful & interesting, and then think about keywords. Not the other way around. Being useful & interesting is hard and there are not short cuts to it.

3)   Real Popularity is the most important optimization
Google likes content, which is popular and which is shared. After Google Panda-algorithm change two years ago, the traffic to news sites and social media sites surged whereas “content farms” really slumped (and majorly have not been able to come back). We also now that Google has increased the weight to social sharing with its search algorithm. Social media shares are harder to fake. You really have to be useful & interesting to get those shares, because they are done by real people.

These principles are still valid, and with the recent algorithm changes (like above-mentioned Panda) more accurate than ever. Google is aiming to eventually stop gaming the system and also make search to emulate more human way of searching the information. With latest Google Hummingbird there has been maybe the biggest leap in search, and the following changes will change the search game totally:

1.  Security Search is now the Default: Less visibility on why your visitors are visiting your site
In conjunction with Hummingbird-algorithm change, there was also other major change in September. All the Google searches are now secure by default. Basically this means that you do not know what keywords your site visitors have used when they arrive on your site. This change was eventually inevitable, but still makes traditional SEO harder. There are also certain workarounds to try to capture the traffic.

2. Enter the Semantic Search: Forget the keywords, give answers
More and more searches are currently made by mobile and in the future increasingly with your voice (Siri & Google Glass). Traditional “googling” is not a normal way for people to find what they are looking for. We have taught ourselves to use keywords, but what we really are trying to find is answers.
Giving right answers tailored to you is the direction where Google is going. It takes account your device, previous search history and location and gives tailored search results based on your existing and expected future behavior. Some of these developments we have already seen. Google corrects your misspelled words and proposes alternatives to what you are trying to search. Knowledge graph tries to guess what you are searching on the right side under the search bar.

The search game is totally different than it was couple of years ago.
Do we still need specialized SEO-agencies or is search business nowadays mainly SEM?

Tagged , , , , , , ,

How Shopping Bags Revolutionized Retail

Have you heard about Walter H. Deubner?
 
If you have not, you should be ashamed. By simple observation and great insight, he was able to create good business for himself and the same time changed the way we shop.
 
He invented shopping bag.
 
Small business grocer Deubner noticed in 1912 that his customers always bought as much they could carry. Not more and sometimes less. He designed the way for customers to buy more items on one go. He patented the idea and in just three years he was already selling over million shopping bags a year.
 
That invention revolutionized shopping, as we know it.
 
Quite often our consumers would actually buy more, but they do not realize the opportunity or have barriers for doing it. Too often we are too fixed to the traditional way of selling our product that we do not recognize the barriers that prevent current consumers to buy more, or new consumers to enter our category. Coming back to the post I wrote earlier this week about subscription model, there is huge potential in rethinking the way we sell:
 
Could you sell single item in bulk?
Or bulk item as a single?
Physical product online?
Online product in retail?
Supersize it?
Minimize it?
 
Walter H. Deubner essentially created post-purchase service. Consumer journey seldom starts or end in the transaction.

Tagged , , , , ,

Five Success Lessons from Nordic Noir

Whenever I have homesickness, I go to the nearest library and borrow some Nordic crime fiction. I read Stieg Larsson, Lars Kepler, Jussi Adler-Olsen, James Thompson, Arnaldur Indriðason, Jo Nesbo and whoever has Scandinavian sounding name. Then I read them in the sun and miss the cold and dark winter.

Because the phenomenon has been so close to me (geographically), I have been thinking lots about these writers and identified five key success factors:

1. Success feeds even more success
Typical Finnish way is to think that the success is a zero-sum game. If someone wins, other people will lose. That is not the case.  Success feeds success. After the phenomenal sales of “The Girl With The Dragon Tattoo”, the appetite for even more Scandinavian crime novels has been infinite. The halo effect has gone also beyond Scandinavia and it is now actually easy to find detective novels also from Finland and Iceland around the world. People think in clusters and now it is definitely advantage if you happen to come from cold northern country and write detective novels (with preferably semi-alcoholic main character). The appeal has also expanded to TV-series as well, with US-versions from The Killing and The Bridge. Movie adaption of “The Girl With Dragon Tattoo” was a success and I cannot wait the “Snowman”-movie whether it will be done or not by Martin Scorsese.

2. Success does not come out of nothing
All the Nordic countries have strong roots in detective novels and especially Finland has one of the finest curated detective novel series (Sapo). Although “Girl With Dragon Tattoo” opened the flood gates, it would have not been possible without the pioneer work of Henning Mankell & Håkan Nesser, to name a few. And funnily enough, also they are currently witnessing surge in their popularity.

3. Turn your weaknesses to strengths
Especially during this time of year, all the Nordic countries might be depressing places. It is dark and although they really do not have that much of problems, those few problems are visible. Drunks are on the streets and it is quite unlikely that you have not witnessed some violent outburst. Whereas other countries sweep the problems under the carpet, part of the social-democratic ethos is that society should take care of everyone. When it fails, the visible problems serve as constant reminders for everyone about the failures of individuals and the whole collective who has left them down.
Although there have not really been serial killers in Nordic countries (only handful based on Wikipedia), the Nordic Noir writers excel in those dark narratives of twisted killers and mixing it up with cultural peculiarities. Big part of the appeal of the Nordic Noir novels is the faulty detective heroes. They struggle with their own personal demons, whether it is booze, drugs, women or short temper. Most of the times, it is combination of all these.

4. You do not need to compromise
Twenty years ago it would have been totally unheard of that there is bestseller with a main character called Joona Linna who is operating in Stockholm. You would have been forced to try to do something more universal and write agent stories spanning different continents. When you write about something you know, you write with real feeling and express your true emotions. Audience identifies with that reality everywhere. That is more universal than your protagonist jetsetting around the globe, driving latest cars and having the latest gadgets. No offense, 007.

5. Remember your local roots, but think global
Digital revolution has helped these writers to expand their reach and connect with their audience. First thing I did when I found “The Healer” by Antti Tuomainen in Singaporean library, I immediately went to like his Facebook-page to show the support. Digital tools enable these authors to connect and reach people, which would have been almost difficult before.

For those new to the genre, I recommend especially Harry Hole –series from Jo Nesbo. Books are packed with really thrilling plots, starring the half-man half-amazing, who fixes his gun-blasted jaw with duct-tape and carries on. That is how you roll in Oslo.

Tagged , , , ,

Stop Being in Brand Bubble and Smell The Roses

Because I work in advertising, I focus more on the advertisements than normal person. After spending the whole day crafting strategy, I have to always remind myself at the end of the day, that no normal person really cares that much.  Serves as a good reminder before I bore non-advertising people at the dinner table. It is natural human tendency to place high value for something just because we spend much time with something. Being important for you does not equal being important to everyone, not even anyone else.

Marketers fell victim to similar thinking and end up living on their own “brand bubble”. When you live and breathe your brand everyday, you start become blind to its real meaning in people´s life. Usually that meaning is quite limited at best and totally obsolete at worst. Therefore it is always important to try to escape your brand bubble, go talk to real people and keep these five points clear in your mind:

1. Product feature is not a product benefit.
Consumer decides the product benefit, not the company. Even though you introduce product feature you have been developing for years, if the consumer does not find use for it, it is completely useless. You have to dig deep to really find why target audience uses your product or selects your brand. Sometimes the truth might be bad news for your brand (see 5.)

2. Do not follow your category: differ from it
I think that benchmarking your direct competitors is one of the biggest traps marketers fall. Usual fallacy is that when you conclude that your whole category is boring, you end up being boring yourself. Benchmarking should be used only in these two ways:

  1. Analyze what your competitors are doing and do something totally different.
  2. Benchmark other categories which are successful and use those tactics in innovative ways (Utilize retailing tactics in luxury products or vice versa, make your service a product, sell subscription model, etc..)

3. You compete against everyone, not just your category
Especially with digital, you are on the battlefield with the best ones in the world. On YouTube you are competing with Ylvis. On Facebook you are competing with the friends of your target audience. On Twitter you are competing with biggest opinion leaders in the world. You better be interesting or go home.

4. Being simple is being confident.
If you can make people to remember one thing about you, you have already succeeded. Usually marketer wants to tell too much. You have been spending time doing all these different features, which you mistake as benefits and want to cram them all on one banner ad. Telling too much is turn-off. You should intrigue the curiosity by letting the audience have the opportunity to find out more. Too many times we tell everything immediately, so there is nothing left to say and learn. Sexy lingerie is more erotic than nudity, because it leaves room for the imagination. You should do the same with your brand.

5. Be honest about your brand.
Does your market share represent the true strength of your brand? Many times especially with FMCG brands, you realize that the biggest selling brands might actually have quite low brand equity. They are just big because of the price point, logistics or lack of real competition. And there is nothing wrong with that if you know where the market share is coming. Low brand equity poses a threat for rapid market share loss because of the price competition. For example, your category might not yet been affected by private labels, but that does not mean it will not happen. Knowing the real health of you brand is really important, so you can prepare yourself for the upcoming challenges.

Every time you start falling too deep in your own brand world, go back to these five points and remember that you play only small role in the world on your audience.

Tagged ,

What CrossFit Can Teach You About Branding

Those who read my post last week will already know that I have not yet become totally cynical to the art of marketing. I fell victim to good branding once in a while. I have been reminded of this gullibility, because lately I have desperately wanted to start CrossFit.

For those who are not in the know, CrossFit is an intense exercise program characterized by functional training using non-traditional weighlifting equipment (such as kettlebells). It has been probably been the hottest thing lately (especially among guys) in exercise circles and become quite mainstream in last couple of years. Reebok is also betting heavily on the rise of CrossFit.

I am already sports crazy. I run and do circuit training every morning, play in two basketball teams and try to swim once in a while. I do not really need any additions to my sports regime. I am healthy enough. The urge to start Crossfit is not rational decision. It has been branded well. It feels natural, because the exercise is functional. It feels total antithesis of the shiny gyms: many times CrossFit-sessions happening in the old warehouses. It has strong ethos of pushing to the limit, which resonates well with my view of sports in general. Exercising is not supposed to be fun. Only pain brings gain.

However when I was searching for the alternatives for CrossFit training in Singapore, I was shocked by the steep price tag of monthly prices. You should not really pay over 200+ dollars for basic circuit training in shitty warehouse. Or should you?

This is the inner dialogue I had:

Left brain: Hey that guy just took your our basketball summer training and is now charging hundreds of dollars a month from a glorified circuit training!
Right brain: But I want to push tractor tires to feel like a man!

Left brain: You push yourself too hard even in your morning jogs, CrossFit can actually destroy your muscles.
Right brain: Whatever, I want to train until I puke.
(Actually I heard a rumour that Red Bull sales increased when there was news coverage about alleged deaths of mixing Red Bull with Alcohol. Danger attracts.Also a vast majority of the news stories about harmfulness of different sports are written and shared by people who just want to find excuses for not exercising)

Why Crossfit is currently so appealing?

1. Proven business model
Crossfit.inc (founded in 2000 by Greg Glassman) follows in many ways the same success formula of the rise of “Les Mills”-branded classes, best known for Bodypump-classes. They license the Crossfit name to gyms for an annual fee and certify trainers. Licensing business is one of the most profitable types of business in the world.

 2. Room for creativity
Whereas Les Mills feels more like the McDonald´s of Gym Exercise (it is the same in every part of the globe), CrossFit still feels like a rebel alternative for it. Every CrossfFit-training can be different and the possible variations for the training are infinite.

3. Perfect training type for digital office worker
No-frills type of training feels perfect antidote for the overtly digital world we are living in. Also the sessions are high-intensity short bursts, which you can easily fill even to the busiest calendar.

4. Fueled by social media
I doubt that the sports would not be as big without the connected world we are living. There are CrossFit-forums, Facebook pages and endless amount of training videos. After watching this video by Finnish CrossFit-hero Mikko Salo, it almost felt I was training myself (150k views, btw):

5. Good story to tell
Exercising should always be about your own health and development. The truth is though that many times people exercise also for the bragging rights. CrossFit just sounds way cooler than being in Spinning. No offense to Spinning.

I probably try CrossFit despite the steep price tag. If no for other reason than to give a nod for the branding well done.

Tagged , , , , ,