Present Forward or Future Back: Strategy or Vision?

The future happens slowly..and then all of a sudden. In his fabulous 1926 novel The Sun Also Rises, Ernest Hemingway famously wrote that bankruptcy happens in two ways:  “gradually and then suddenly”.

Some years back Andy Grove( ex-CEO, Intel) had introduced the concept of strategic inflection points in his seminal book Only the Paranoid Survive where he explained that a strategic inflection point is ” a time in the life of a business when it’s fundamentals are about to change “.

A change in the business environment that dramatically shifts some elements of your activities, throwing certain taken-for-granted assumptions into question is an inflection point. Someone, somewhere, sees the implications, but all too often they are not heard. That someone might be you!

Whether you are a powerful CEO or someone far lower down in the pecking order, not seeing the unfolding inflection points(or blind spots ) are dangerous.

What is the case we are making here? Too many managers develop strategy while focusing on problems in the present and that is especially true in the times of a crisis(like the Covid 19 pandemic that we are presently pulverised by). Lets call it ‘ missing the wood for the trees ‘. What I am trying to argue here is that leaders instead should imagine the future and work backward so that they build their organisations and brands for the new(emerging) reality.

Even during a crisis, developing a ” future-back ” mindset can spur innovation and growth.

So, in order to build strategy, start with the future.

Let’s take a look at a few examples of brands and organisations that have used the ” future-back ” approach to stunning effect.

Back in the late 90’s and the turn of the millennium, Intel was ruling the roost. With a market share well over 70%, the brand was well and truly in the driver’s seat(apart from being inside millions of computers) with the Pentium Processor going from strength to strength. At the height of that market dominance, Andy Grove took a visionary punt and launched a brand to compete against its very own Pentium– that was the Celeron range of Processors. What he did was to see the future being dominated by cheaper, faster processors( Moore’s Law ) and he did not want Intel to lose out on the potential opportunity that lay ahead of them. That saying Andy Grove was visionary would be an understatement and how prescient the observation in his book ” When spring comes, snow melts first at the periphery, because that is where it is most exposed “, bears testimony.  Intel Inside. Meets Intelligence and Insight!

Take another example of the ” future-back ” approach that Reed Hastings, Founder/CEO of Netflix adopted to reach where it is today. At the height of their DVD rental business success, they ventured into streaming(encouraging both cannibalization and migration of their existing subscriber base) anticipating that the medium to long term future of in home entertainment will hinge on that. Not just that, look at their understanding of the competitive landscape- it went well beyond the typical television broadcast networks and cable TV of the day. They distilled the big picture into getting their prospect’s time and attention. Broadened the eco system significantly. Rather made it a category by itself. So, in effect, the competition included time their viewer/s spent going to movie houses, eating out, entertaining friends and family, travel and holidays etc etc. By wearing a different lens and examining a hitherto unseen/untried approach, helped them immensely in becoming the brand they are today.

No conversation about a ” future-back ” model and a vision preceding strategy would be complete without talking about Steve Jobs and Apple. Back in the day, the way they disrupted music consumption and music distribution through iTunes and iPod is now part of folklore. They did not wait for either the market or the customer to tell them what is needed. They took moonshots( it’s in the culture), created highly desirable products that the customer never knew they wanted or would need and generated unprecedented gravitas, and the rest they say is history. Apple as a brand and Steve Jobs as a leader was always seeing around corners, anticipating trends and operated at the intersection of a new future and non articulated consumer need and desire.

Let me add here. ‘ Customer knows best ‘ is a whole load of balderdash. If organisations were to depend on customers to know what is needed, there would not have been any Post It Notes(3M), Fax Machines(Xerox) and many of today’s incredibly successful brands like Amazon, Tesla, Netflix, Airbnb, Uber, Zomato etc. The onus and responsibility of drawing the future and working backward from there is fully on you, your brand, your organisation. So, don’t run away from it. Take it head on.

While we debate the vision vis a vis strategy and the “ future-back ” model to a ” present-forward ” one, do be aware that a vision is like an ‘ impressionist painting ‘ and NOT a ‘ photograph ‘. A photograph captures what there is already, there is NO speculation, hedging, punting and imagining the non existent. A vision on the other hand is similar to an impressionist painting in the sense that it is visualising what could/should be, what will/can be or what may/may not be. It is taking a shot at the future and setting the road to travel back from there.

To be blunt, getting through this tricky process of envisioning the future begins with confusion, experimentation and a touch of chaos followed by a single minded determination to make progress against an overarching goal. And an approach that futurist Paul Saffo recommends as creating as many forecasts as possible, fail as quickly as possible and vitally ” to hold strong opinions weakly “.

Another valuable perspective on this chaotic period of thinking is offered by Nassim Nicholas Taleb in his book Antifragile: Things That Gain From Disorder. Anything that has more upside than downside from random events(or certain shocks) is anti fragile.

Rita McGrath, Columbia Business School professor and business consultant recommends a ‘ discovery driven approach ‘ to anticipating the future and you can dive deeper into her thinking and recommendations in BrandKnew on these links https://www.brandknewmag.com/thinking-innovation-driving-growth/ and https://www.brandknewmag.com/discovery-driven-digital-transformation/ .

It was the 4th of February, 2014. Satya Nadella was announced as the new CEO of Microsoft, the third chief executive in the company’s history, following Bill Gates and Steve Ballmer. Recognising that most of Microsoft’s woes at the time were a function of an approach that was ” present forward “, the first thing he did was to tell everyone in the organisation ” We are going to be moving away from a know it all organisation to a learn it all one “. Looking back on how well Microsoft is doing now compared to 2014, bears testimony to the potential for organisations in adopting a ” future-back ” model.

Brands that didn’t heed the  ” future-back ” model and met their fate inspite of being market leaders once upon a time include the likes of Blockbuster, Kodak, Nokia, Toys ‘R’ Us.

There are other industries very ripe for the picking to drive home further the point of vision preceding strategy. The pharmaceutical sector for instance. Based on empirical evidence, learnings from past epidemics like SARS, Ebola, Swine Flu, emerging lifestyle patterns and the accompanying chronic diseases that it helps manifest(diabetes for one), a pharma company can seize opportunities and address customer pain points that will occur in the future. An example that is worth looking at is the pharma giant Roche. Which saw huge potential in the ” future-back ” approach. That helped revive it’s struggling diabetes unit. The company ingeniously paired the mySugr app (which it had acquired in 2017) with Roche’s Accu-Chek Guide glucose meter, thereby allowing diabetics to have a different, gamified experience to managing their condition. By logging in their blood glucose levels, completing tasks and challenges, users can “tame their diabetes monster”. It’s a totally different approach(at least for the pharma sector) which forecasts that “the way forward will mean selling a total experience, not just a product.”

Rather than look at Fall of 2020 or Spring of 2021, Universities/Colleges will be best served to go further down the road and see how do we cope, prepare and anticipate learning and training needs in the near distant future and move backward from there. With the current Covid-19 crisis having caught a lot of educational institutions severely under prepared and like a deer in the headlights with no wherewithal (and mindset) for virtual/online delivery, the time is now, to graduate, to look into the future.

So, ‘ where do you go from here ‘? Or, rather, I should be asking ‘ where are you coming back from ‘ ?

PS: For leaders and organisations wanting to undertake ‘A back to the future voyage ‘, the video on this link https://www.groupisd.com/phewturecast/ can be a starting point.

ENDS

 

 

 

The changing idea of marketing as a concept!

If you are one of the marketers who embraces convention, no one will point a finger at you if you were to follow the norm that has been practiced for years. Build/produce/manufacture, brand, market, sell. Justified linear thinking.With strong empirical evidence( I mean brand and business success) to boot.

With so many years of conventional wisdom( that also is the wisdom of the crowds that drive collective bias) in the ring, it would have been a really uphill task for any brand to alter(let alone disrupt) the narrative. But there is something about audacity and moonshots that make them perfect partners in rhyme.

I devote this blog post predominantly to understand marketing from a new lens- the one that brand Tesla is scripting so brilliantly. Directed by Elon Musk(Iron Man). Allow me to go back a few years.

It’s the 4th of April, 2016. The Tesla Model 3 is being launched in the US. It sports a price tag of US$ 35,000 and bookings can be made with a U$1,000 down payment.  Then history unfolds. A whopping 276,000 cars were booked(read pre-sold) on the day, probably a first ever in automotive marketing . And Tesla gathered US$ 276 Million in upfront cash. And here’s where the story gets interesting. There was not even a model car ready. All the sales happened courtesy a few photographs of the Model 3. That’s it. There’s more. There was not even a single car that had gone into production. The first promised schedule for delivery of the Model 3 was late 2017, that was a good 18+ months away. Tesla had disrupted automotive marketing on it’s head and how.

Let’s try to understand more of the phenomena that is brand Tesla.

  • Tesla’s $0 marketing budget is incredibly awesome marketing
  • Tesla Motors has no advertising, no ad agency, no CMO, no dealer network. And that’s no problem. – AdvertisingAge
  • If you drop by the Tesla forums, you’ll see a community of passionate fans discussing how to market Tesla better. There are over 55,000 people subscribed to the /r/teslamotors subreddit. The brand has clearly struck a chord with its fans.
  • Tesla fans are crazy advocates. They attach deep emotional significance to the car. They’re not just paying for a mode of transportation, they’re paying for a slice of the future.
  • Prior to the Model 3 launch, Tesla had introduced the P100D Ludicrous– a luxury model priced over US$ 80,000(base level) with upgraded versions well over US$ 100,000. The marketing masterstroke was in the message conveyed. ” While the PD100 Ludicrous is an expensive vehicle, we want to emphasise that every sale helps pay for the smaller and more affordable Model 3 which is under development. Without customers willing to buy the expensive Model S and X, we would be unable to fund the smaller, more affordable Model 3 “. This is brand positioning at it’s masterful best, making a luxury purchase almost into a charitable act.
  • Every element of the Model S – from the recharging technology to the drag coefficient of the car – is presented as the pinnacle of research and engineering.
  • By eschewing marketing completely, Elon Musk is actually communicating that Tesla is focused on ground breaking technology.
  • Tesla the brand transcended from being just another automotive player in the business to encompass economics, politics, world power to have global energy NOT driven by oil. In the process, creating the marketplace, the eco system where they are the game. As also the game changer.

“ BMW has a marketing department called engineering.” – Seth Godin

These things obviously don’t bother Musk too much. If one were to give him an advertising budget, he is sure to divert that into production. And the final result: an even more incredible car. And inspite of NO Advertising, he gets the world talking about his brand, especially the people who matter.

How does Tesla manage to do all of this free of cost which other brands would spend millions to buy?

First, build something that matters to people. Then, tell a story that resonates with people. Just like iPhones/iPod and Steve Jobs, electric cars are a great story. The greatest stories are aspirational, representing the triumph of passion, conviction, persistence and diligence.

” I know a lot of very wealthy people.  Most of them made their money in technology.  I don’t think Bentley or Rolls-Royce is anywhere near the top of very many of these people’s idea of an impressive car.  A Tesla is more like it “. – Jimmy Wales, on Quora

This sort of advertising is earned, not bought.

You earn this sort of attention by making something truly newsworthy. Or saying something newsworthy.

” The public tends to be, as they should, interested in things that are precedent and superlatives.” – Elon Musk

Musk is all over YouTube. The media is chasing him nine to the dozen. Why? Because he is always working on cool, fascinating, path breaking projects.

Musk is a CEO who understands the power of showmanship(tonnes of interviews, cameo roles in films and media appearances.

Just Google ‘ Elon Musk  says ‘and you will get the most quotable of quotes that media loves to lap up and carry forward.

The Hyperloop is something that Musk is NOT planning to make but delivers great PR for him as a tech visionary.

At most times,Tesla has more orders than they can build – that in itself is great marketing.

Tesla has demonstrated that brands and organisations can move on from a Build/produce/manufacture, brand, market, sell model to that of a brand, market, sell, build one. Welcome to the next normal.

As William Gibson would say, “The future is already here – it’s just not very evenly distributed.”-  which will be nothing like what we have experienced before, we’re all going to be completely re-evaluating so many aspects of our lives: education, medicine, work, social responsibility, inner calling, the list goes on. And under the aegis of the Covid 19, all of this is happening remotely right now. And the question for a lot of companies and brands is going to be: Now that this shift has happened, am I still relevant? Does what I do still make sense? Am I serving an essential function, especially in a time when everyone is being careful about their finances?

Answering in the affirmative will separate the men from the boys. Wanted. More Musketeers!

ENDS

https://www.groupisd.com/story

https://www.brandknewmag.com

https://www.weeklileaks.com

https://www.brandknew.groupisd.com

What are your thoughts on INTERPOL’s recruitment policy ?

Caveat Emptor: Written purely in jest with malice towards none and deep respect for all, living and demised. May relate only to people with one foot in the brave or baby boomers, it’s contestable, respectable pseudonym! If at the end of this(or well before that) so long a rant, you want to call out ‘ so long ‘, I will understand perfectly! It also hedges that the 1.8 people who will read this(after circumventing the social media algorithm), have seen the movie Don(the one starring the Big B).
For the purpose of brevity, acronyms have been used as below:-
OS: Late Om Shivpuri (RIP)
PK: Late Pinchoo Kapoor (RIP)
Big B: (if you don’t know who he is, time to get a life!)
NI: Nariman Irani (RIP)
DS: Dileep Sharma (RIP)
May 12, Circa 1978. A typical summer day in Bombay. Oppressive, sultry, so much so, you wanted to send out the May Day signal. But, aborted the thought. And lived to see another day. Yours truly, with one of my best friends Nazir had set out as usual with wasted interests to do what we did best. Nothing! The breeze was stiff, so stiff, it refused to move. It was when our expectations were close to nadir, did we hear a call, from up above. No, don’t get your expectations that high- it was from the third floor of one of the buildings in our society and DS (one of the most amiable blokes you can find with a perennial smile and hockey skills that would have given Mohammad Shahid a complex) and through the thick foliage of the Mayflower tree directly under the building, we could see he was calling out to us from his bedroom window. He had two tickets to NI’s Don, Amitabh’s movie that had released the same day and asked if we wanted to go. Since he was not. If there was anything called manna from heaven that was it. Big B in two doses(if anyone wanted a masterclass on how to deliver suave with wow and awe, this was it): our excitement knew no measure! Thank you so much Chandra Barot.
The next thing we know we are gaping open mouthed as DS decided to fold the tickets and hurl it (what an inappropriate description for such a gracious gesture) down. Now, if you know anything about movie tickets of those days, they were not exactly printed on 350 GSM Hand Crafted Wood Free Paper. And if they are Lower Stall tickets( Not Balcony or Dress Circle as they were in the day), the paper quality reached a new low. Lower Stall for the uninitiated are seats that are very very close to the screen, sometimes so much so that you go beyond the screen and do an auto-rotate of your neck to discover new laws of concave and convex (apart from discovering that Amitabh could also be right handed and if it’s a double role it only added to the complexity). That being said, the two of us are now witnessing a descent of the tickets of unprecedented volatility- one moment sashaying as if Shakira’s Hips Don’t Lie was playing in full blast and in another defying Newton and gravity as it decides to hang nonchalantly, stubbornly, mid air. In the midst of all these, we had one of those brilliant WH Davies moments (yes of the ” what is this life full of care “…fame) as we look awestruck at the mayflowers blooming in unabashed, glorious beauty on the society’s showpiece tree(also our controversial boundary indicator during cricket matches), which every May kept it’s unfailing date with it’s namesake. That ‘ moment ‘ of distraction (shouldn’t it be attraction?) overcome, we see the tickets land firmly on the road, which at that time would have made the lunar surface look like a green top billiard table.
Armed with the most prized possession of our lives, it was destination Topiwala ( not tirchi but the name of the movie house). Before I move on, letting you in on an inside story. During the late 70’s, there was a famous inner wear brand called Dawn( and without paying too much credo to phonetics, we all know even Don sounds the same) and it was only Mario Puzo’s Godfather that gave the word Don a sense of aura and passable respectability.
Enough preamble. Will segway into the constitution now. For those of who have seen Don, would recall the prominent characters from the movie. Big B apart, there was Zeenat, Pran, Iftekhar ( yes of the ‘ born to inspect ‘ lineage alongwith Jagdish Raj, Inspector for All Seasons and For All Reasons!), PK, OS among others. OS, BTW, is not another Operating System but Om Shivpuri as already indicated right at the beginning. And here is playing the role of a ‘ Responsible Interpol Officer ‘, assigned to crack the whip, as captain of the hip. Which didn’t lie. Or so we were made to believe!
Since our growing up days we held Interpol in great esteem. The world’s best International Police Organisation. It had an unquestionable aura. Even Balram wanted to enrol(not from the Ramayana but of Ram Balram fame) into the organisation. So did Pathankar. From Budhawar Peth. And Saini from Munirka. It had a cult like following. If Ajit had his way (just like he had with Mona, Michael and Shetty), Interpol would have been headquartered in the LOIN’s Den near Dongri but sadly it had to be Lyon, France. The jury is still out on that one. How you wish geography could be history!
Time to get serious as the next few paras are all about the interview process at Interpol and how OS got the plum(p) assignment for the roll, I mean role.
To begin with, after acquiring diligent espionage skills, we took a deep dive into the Psychometric Testing Questions that OS was put through during the recruitment process @ Interpol. Psychometric Testing as we may know involves numerical reasoning, verbal reasoning, logical reasoning, personality assessment etc among others. Here goes:
Numerical Reasoning
Interviewer: Why do you think your breakfast has to be 12 Aloo Parathas?
OS: I always had a soft corner for having one two many. One and Two is 12. Hence..actually it’s a no brainer
Verbal Reasoning
Interviewer: In the fitness of things, what makes you so eligible for this role?
OS: Two and a half hours of jogging, 250 squats, 80 push ups and 45 minutes of planks…
(he gets interrupted before saying ‘ over the last 40 years ‘)
Interviewer: That’s incredible..
Logical Reasoning
Interviewer: What makes you ‘ different ‘ from other contestants applying for this role?
OS: My name is Vardan(with a V), that means blessing. I am actually a blessing(in disguise- in this case he was pretending to be RK Malik, the role played by Weighteran Actor PK, worth his weight in old).
OS(continuing in chaste Punjabi confidence): And mind you, I don’t have any Imposter Syndrome!
Personality Assessment
Interviewer: What is the one thing that determines your ‘ style quotient ‘ ?
OS: It takes two to tango- so, I am afraid I have two to share:-
1. People have bad hair days. I have a bad hair life.
2. People wear trousers around their waist and use a belt to keep it in place. I have higher ambitions. My trousers are a little above my chest(Sorry, if I am hitting above the belt!) and instead of a belt I use both my armpits to keep it in place. Giving G B Shaw’s Arms and the Man due respect!
As an after thought he adds
3. Nobody can carry a pinafore dress with a toy gun from Crawford Market with as much I mean business swagger as I can.
That was the sucker punch. That landed on the right spot (yes, you guessed it- a little above the chest) and put OS firmly in the Interpol’s HR spotlight. Appointed with Immediate Defect. To them a new HeRo was born! That will play the perfect Villain.
OM SHADY OM!!
ENDS
https://www.groupisd.com/story
https://www.brandknewmag.com
https://www.weeklileaks.com
https://www.brandknew.groupisd.com

Are you missing coming home?

It’s a little past 6 am on the clock and a sense of anxiety has already made it’s unwanted presence felt(liquidity crisis in the form of acid reflux anyone?). Being an early bird and having realised(of late and it’s just a random realisation before you audaciously attribute that to any wisdom or maturity on my part) that my most productive hours are from the wee hours( if others thought similarly, we could call it the ‘ we hours ‘) of the morning till about noon, and every minute that I delay in getting out of the house to earn my daily dread gives me FOMO attacks(my version only and nothing to do with status anxiety). But, then, those were the days. Sorry if it sounds pre-historic.

Some days, I admit, the last thing you want to do is go to work—but since it doesn’t look like those bills will start paying themselves anytime soon, you put on your best #adulting face and head out for your daily hustle.

Over the past few weeks, just like the teeming millions around the world, being locked in(and logged in) is the (cruel) but absolute necessity. There is no mother, there is no invention. Just stay home, period. Having finished counting the tiles in the house( 2924 at last count unless some of them have been broken courtesy my better half’s multiple in house walkathons) and other highly cerebral flings that WFH has brought upon us, I was recently enlightened to realise the number of absolutely useless channels that our TV subscription(traditional) package gave us. Numbers do give us a false sense of bravado and now I know why. At least it gives the remote something handy to do. Like going up and down, aimlessly! What if we could do that with squats, seriously? Our ham would begin to string a new tune. Ok, will exercise caution now.

Work @ work was fun(and I was perfectly @ home with it or so I think)- collaborating with my colleagues(@ISD Global) and clients on changing the world, being not just the game changer but the game, we are next level normal, we will make heaven wait, how dare… and what have you while studiously ignoring their condescending disapprovals. I don’t blame them. After all even relentless monotony can’t go beyond a limit and with the keep safe distance norms in place and borders being sealed, I have to wait for things to get back to  ‘ old normal ‘ for some ideas to pass(with or without Octroi). I only hope it happens ASAP unless the new definition(in the new normal) of ASAP is As Slow As Possible.

In the interim, I realise that my cell phone is acting up because when I keep pressing the Home button and look up, I realise I am still at work. Surely, some cells have been damaged. From hereon must check the sell by date. That probably calls for a visit to Shihab Mobiles(my Best Buy consultant). Alas, the contagion(no not Corona) is spreading. As now the keyboard has got into the act as well- I keep punching the Escape key only to note that I am still at work. I have seen the Great Escape but I saw something even bigger- the writing on the wall: Why is Monday so far from Friday and Friday so close to Monday? I see it better now !!

Those were the days. You always had something to look forward to. Driving back. Just like so many of us. Of coming home. And I bet, there’s nothing half so pleasant, as coming home again.

Sorry , go to go. In search of a new quest. A video on ” How to fold a perfectly folded T Shirt ” yet again! Sorry, if I wore my heart on my sleeve. But remember, we are all looking at the world with a new lens.

CAVEAT: Number of tiles indicated above will be more than 2924. I did not reckon with the other bathroom. Sorry, it slipped.. my mind. Updated stats in next piece. We can call it ‘ Stat(u)s Update ‘.

ENDS

ISD Global APP (Approach-Philosophy-Practice)

https://www.brandknewmag.com

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Just.Being.One

COVID 19 could be civilisation’s newest curse..
Or is it?
Can we see this as a blessing..
Realise there has never been a better time to come together.
Spiritually, emotionally..
While being distant.
Socially, physically..
To rise above prejudice, politics, profits..
Caste, colour, creed and..greed..
And bow to compassion, empathy, understanding..
See the grace in being part of the human race..
With no fault lines. Or finish lines. Only a start line..
Offer a helping hand..to sanitise the soul, the mind..
See the opportunity..in this crisis..
To be human..there has never been a better time!

Is SAD the new HAPPY in Advertising?

Let’s begin with the obvious. It’s an always on world. While being perennially and technologically connected, geography being history and all of that, at no time have humans been so socially disconnected in the real sense.The need (and significantly unmet) desire for human bonding has never been greater. Nuclear existence has stoked the potential that is kinetic in humans. There is a clamour to reach out and brands are bending over backwards to suit the new found relish for the pathos.
It’s a given that sad news travels fast. But, advertising that stokes emotions( or SADvertising as it is being called these days) that strikes a strong emotional piano chord and opens up the tear ducts, travels fast, wide and deep. Empathy meets exponential sharing, opens up a floodgate of brand conversations,triggers otherwise hard to come by response, sustains brand dialogue and keeps all stakeholders be it brand owners, ad agencies or end users, happy (ironic as it may sound!).
Why the sadness?
It is said that sad emotional content has the capacity to make people feel more emotionally connected to one another, especially powerful in our detached digital world. This sad connectedness makes people more likely to take an action such as sharing content, donating money, or buying a product.
Communicating sadness can create behavioral change
Scientifically speaking, when we hear interesting stories, specifically stories that make us feel distress or empathy, our brain produces two chemicals: cortisol, which links with our sense of distress and helps us focus our attention on something, and oxytocin, which is associated with our sense of empathy. When these two chemicals are triggered, studies show that people are more likely to give money to a cause related to the story they’ve heard.
Check out this video to understand more https://www.youtube.com/watch?time_continue=4&v=DHeqQAKHh3M&feature=emb_logo
In short, the study reveals that it is possible for a story to change a person’s behaviour by changing their brain chemistry. What does this mean for brands? Sad stories have the potential to move people to make a purchase. This is why we’ll likely see more of these sad ads in the future.
We have moved on from an era of media scarcity to an era of attention
scarcity. Getting people’s attention is what we’re trying to do, and I
think that meaning, something that people can relate to on a very
visceral level, is what drives a lot of the decisions we make when we’re
talking about things. Hyper competition has forced brands to not only
assure customers a good product or service but make it very relatable
and more meaningful than any other good product.
Over time brands have realised that the consumer culture has evolved
and people are more reflective and mindful of their lives. There is a
constant search for deeper layers of meaning once you have all the
things you need and most of the things you don’t need but desire. The
ad industry of the last decade was mean, cynical and celebrated
bitterness. Those were the days when brands wanted to be Sexy,
Swaggering or Sweeping. That showed up in most of the work that was
put up. Don’t blame them as it seemed to work for all concerned. But,
then after a while, people got sick of it and when a voice and tone which
conveyed exactly the opposite stuck in, the positive reaction was
overwhelming.
Lets list a few of the work from yesteryears where brands have stirred up a flood of emotions all over the world and that includes P&G and its commercial released around the Olympics(https://www.youtube.com/watch?v=sUg6s-uIp1w), Honda’s Project Drive In(https://www.youtube.com/watch?v=_kRU9Au-fhk), Coca Cola Life in Argentina(https://www.youtube.com/watch?v=xPb1t3jU3sI), Nestle Good Life commercial in India(https://www.youtube.com/watch?v=syZju6ui394), Google’s Dear Sophie(https://www.youtube.com/watch?v=kcHV_Dv9tlo), Dove’s Beauty Patch(https://www.youtube.com/watch?v=XpaOjMXyJGk), John Lewis(https://www.youtube.com/watch?v=r9D-uvKih_k), Budweiser’s Puppy Love(https://www.youtube.com/watch?v=7p_3lITiK_Q), the charming tale of a canine equine romance or Expedia’s commercial(https://www.youtube.com/watch?v=-CzSeFHrSfM) about same sex marriage where the father fights his prejudice etc.
The flip side of this (which is worrying) is that it has become a trend. The
word ‘ emotional ‘ is now become the most over used word in client
agency briefs. If you are used to agencies creating a trend which should
ideally be the case(rather than following one), its time to take stock. We
just might be at a tipping point on this one. But, till such time, it sinks in,
it’s cry, cry, cry till you succeed for brands and agencies.
Go, grab your tissues!
ENDS
https://www.groupisd.com/story
https://www.brandknewmag.com
https://www.brandknew.groupisd.com
https://www.weeklileaks.com

Same Circus, New Monkeys!

The world is going digital at a frenzied clip. It’s gone from being the flavour of the season to being the only reason for brand marketers and CMOs. In this sordid vortex of elation and over glorification with digital being heralded as the manna from heaven, the campaign hits are paraded for the world to see. There is hardly any mention of the innumerable misses that get lost in the wilderness.

Take a look at the average CMO tenure- it’s not going anywhere beyond 18-24 months(with some exceptions of course). If it’s a hit parade through and through on all campaigns, would this be the threshold duration?

So the next time you have a fire and hire issue for a CMO, please do remember what your new CMO will say:-

It doesn’t matter what the problem is..the answer will be:

  • we need to get more digital
  • we need to get more younger

You have a crappy product:

  • we need to get more digital
  • we need to get more younger

You have no discernible strategy:

  • we need to get more digital
  • we need to get more younger

Your advertising is a stupid pile of shit:

  • we need to get more digital
  • we need to get more younger

Your stores are filthy, your people are morons:

  • we need to get more digital
  • we need to get more younger

If you are looking for a marketing job, repeat after me:

  • we need to get more digital
  • we need to get more younger

It seems to be the universal marketing strategy that will get you get employed by any dumb ass organisation. Never mind that you will last only 18 months. Or 24 at best. There is always another sucker(dumb ass organisation I mean) around the corner. That needs your ‘ keen insights ‘.

Agreed we are now in an era where the 4Ps of marketing has seen a shift to personalisation, privacy, permissions & performance- fully respect the merits of these. But it sure does not offer a license to overlook fundamentals like product quality, your advertising content, the customer experience you deliver, the human resources you have and the market insights that drive your R&D. Ideally, could the true CMO combine the traditional 4Ps with the new age 4Ps? What a potent combination that would be!

There is already talk in some organisations around the world about making the CMO position redundant. So, let’s not do our bit to accelerate the demise.

Digitelly yours!

www.groupisd.com/story

www.brandknewmag.com

www.weeklileaks.com

 

The New Prescription for Marketers: Subscription

The New Prescription for Marketers: Subscription
Saying that we are in the ” The Age of the Customer ” would be stating the obvious. Here’s how Forrester Research describes the new consumer mindset: “ The expectation that any desired information or service is available, on any appropriate device, in context, at your moment of need.” Customers have new expectations (and yes, those expectations have certainly been driven by millennials, but at this point, almost everyone shares them). They want the ride, not the car. The milk, not the cow. The new Kanye music, not the new Kanye record.
 
Welcome to the Subscription Economy. The term refers to the growing number of businesses that use subscription or membership models and rely on recurring revenues rather than one-time purchases. And aside from transportation and retail, they are entering diverse businesses including Fashion, Personal Hygiene, Furniture etc.
Apple is a subscription business with Apple Music. And so is Google with Google Express. And all the binge watchers out there know that Netflix is one. Dollar Shave Club that sends razors home every month to subscribers is one(they got acquired by Unilever for US$ 1 billion). Salesforce, Amazon, Volvo(yes cars), Adobe..the list is growing across business verticals.
 
The Begining of a New Era
 
Before anything else, let‘s talk about the flavour of the season: ‘ digital transformation ‘- a vague term definitely, the kind of smart-sounding phrase that gets thrown around a lot in conferences and McKinsey reports and Harvard Business Review articles. The kind of expression that lots of people instinctively nod their head at, whether they know what it means or not. It could mean everything, it could mean nothing. Let’s try to define what it means.
 
You have read or know about this statistic already: more than half of the companies that appeared on the Fortune 500 list in the year 2000 are now gone. Poof. Vanished off the list as a result of mergers, acquisitions, bankruptcies.The life expectancy of a Fortune 500 company in 1975 was seventy-five years- today you have fifteen years to enjoy your time on the list before it’s lights out. Why is this happening? Instead of dwelling on failure and looking at all the companies that went away, let’s look at the companies that have stayed. Let’s play victor, not victim.
 
Begining with the usual suspects: Giants like GE and IBM that were on the first list in 1955-and are still on it today-but they don’t talk about their mainframes and refrigerators and washing machines anymore. They talk about “providing digital solutions,” which is an admittedly jargony way of saying RIP Hardware . In other words, these companies now focus  on achieving outcomes for their clients, rather than just selling them equipment. GE ran commercials during the Oscars with the tagline “The digital company. That’s also an industrial company.” Notice the switch there.
 
More companies from that list of 1955 have transformed including Xerox(from manufacturing photographic paper and equipment to information services). McGraw-Hill(from printing textbooks and magazines to offering financial services and adaptive learning systems)..
 
Next on the list, let’s look at some ‘ new establishment ‘ brands like Amazon, Apple, Google, Netflix, Facebook. All very every day to us but new to the list.They’ve rocketed to the top of the list and show no signs of going anywhere. They never thought of themselves as product companies-so no transformation was needed. From the start, these companies were relentlessly focused on building direct digital relationships with their customers.
 
And, finally the third category in the list are the upstarts, the ‘ anti establishment brands ‘ like Uber, Spotify, Box: They haven’t just gone beyond selling products, they’ve invented completely new markets, new services, new business models, and new technology platforms, leaving many established companies trying to play catch-up. As consumers, we love these brands, we love these services, and we love the value they provide us-a value that goes way beyond what a single product could ever offer.
 
What are the common threads among these three groups of companies? Whether it’s GE, Amazon, or Uber, they are all succeeding because they recognised that we now live in a digital world, and in this new world, customers are different. The way people buy has changed for good. We have new expectations as consumers. We prefer outcomes over ownership. We prefer customisation, not standardisation. And we want constant improvement, not planned obsolescence. We want a new way to engage with business. We want services, not products. The one-size-fits-all approach isn’t going to cut it anymore. And to succeed in this new digital world, companies have to transform.
 
The Customer is Always Right?
 
A nineteenth century phrase that was doing the rounds. The jury is still out on that question- Fortune 500 Companies built prescriptive strategies around customer focus, but they lacked a descriptive understanding of the mindset of the customer herself. And to no one’s surprise, there were certainly no sweeping changes in public sentiment toward big enterprises. It just wasn’t enough. The winds just weren’t blowing in the right direction.
 
And then it happened- like a breath of fresh air, digital disrupters like Salesforce and Amazon took the Customer First concept several notches upstream. They began by waving goodbye to the ‘ one to many ‘ approach.(What we call in marketing as the ‘ Spray and Pray ‘ route). They didn’t have customer segments anymore- they had individual subscribers. And every one of those individual subscribers had their own home page, their own activity history, their own red flags, their own algorithmically derived suggestions, their own unique experiences. And thanks to subscriber IDs, all the boring transactional point-of-sale processes disappeared. Ten years ago there was no Spotify, and Netflix was a DVD company. Today both those brands own a significant percentage of the total revenue of their respective industries! Now businesses are asking themselves a whole new set of questions: What do we need to do to build long-term relationships? What do we need to do to focus on outcomes and not ownership? To invent new business models? To grow recurring revenue, and to deliver ongoing value?
 
The New Marketing Mix
 
We are seeing a massive shift from the 4Ps( Peace Be Upon It) towards the 4Es: the new approach to customer value proposition, which embodies Engagement, Experience, Exclusivity and Emotion. The the truth is people don’t buy products anymore. They buy experiences and emotions instead. You should change your “what should I sell” or “how should I sell” into “WHY should I sell it?”.
 
The glory days of the soulless, all-powerful corporation are long gone. Today’s customers are more informed by an order of magnitude. Most of them have researched, assessed, and categorised you before you can even say hello. And to most of them, especially younger ones, ownership just isn’t that important anymore. People increasingly view the prospect of buying something as unnecessary baggage. Today people expect services to provide immediate, ongoing fulfilment, from ride shares to streaming services to subscription boxes. They want to be happily surprised on a regular basis. And if you don’t meet those expectations, you get dropped, not to mention trashed on social media. It’s that simple.
The Shift is On
 
So, on the one hand you have the old business model, where brands used to focus on “getting a product to market” and selling as many units of that product as possible: more cars, more pens, more razors, more lipsticks, more laptops, more credit cards. They did this by getting their products and services into as many sales and distribution channels as possible. Of course there must be a customer on the other end buying all this stuff, but often you didn’t really care who they were, as long as more units flew off the shelves.
 
That’s not how the modern company thinks. Today successful brands start with the customer. They recognise that customers spend their time across many channels, and wherever those customers are, that’s where they should be meeting their customers’ needs. Their arc stretches across multiple axis. And the more information you can learn about the customer, the better you can serve their needs, and the more valuable the relationship becomes. That’s digital transformation: from linear transactional channels to a circular, dynamic relationship with your subscriber. A circular economy is a trigger for the subscription model- Long term, engaging, evolving, value enhancing. So, get ready to subscribe to the thought!
 
 

ENDS

Suresh Dinakaran is Chief Storyteller at ISD Global, Dubai and Managing Editor, BrandKnew.

https://www.groupisd.com/story
https://www.brandknew.groupisd.com
https://www.brandknewmag.com
https://www.weeklileaks.com

The future of advertising: a sneak peek!

The Future of Advertising: A Sneak Peek!

What could/should “advertising” look like in 2020 and beyond? What should we do now for that future?

Some questions that crowd our every day artery. Restless consumers and fast changing technology are creating unheralded disruption. Advertising has always been a combination of art and science. Technology is now becoming a third variable. Advertisers “have to get all three of these things right”. They have to be three good.

There are Un Ignorable Forces of Change. Throwing Unabated Challenges to the status quo. But having said that, once recognised, respected and responded right, they offer Unprecedented Upside Potential for the Future. Let‘s examine them below:-

Exponential Advances in Science & Tech: With IOT, AI, Machine Learning etc, we now have a deeper real time understanding of things, people, situations. Bringing along with it an outsized and unprecedented responsibility for what we do with that knowledge.

Empowered & Skeptical “Consumers” : Wanting Customerization & Personalization (make it mine), seeking Choice(Give me tools to make better decisions), expecting Competitive Value (Give me more for my money), searching for Communities( Let me be a part of it), across multiple Channels (I want to call, click and visit). Individuals with lives, aspirations, challenges, family, communities. They want to be worthy of respect and you need to earn their trust.

Media Disruption & Redefinition : One way has become Two Way, Static is now Dynamic, Stationary is now Mobile, Passive is now Sensing, One-Dimension is now Immersive, Visual has turned Multi sensory. There exists Unprecedented Platform Design Capabilities for delivering Exceptional Contextualised Experiences.

Culture, Society & Our World : Straddling many a Divide across Health, Income, Digital, Education, Equality & Tolerance, Climate & Sustainability.

Inspiring, Measurable Business Models: A heady mix of The customer driven/ holistic model , The co creation model,  The open innovation model , Network orchestration model , The Competitive Value Model, Transformation to full service provider model, The emerging market innovation engine model, The shift to digital and network business models

So what are the takeaways that we can extract from the above listed landscape?

– Traditional mindsets, including those about advertising and marketing, must be challenged and potentially changed. I am referring to the Mental Models: The Primary Impediment to Transformation- For eg: “It has always worked this way.” “We tried it and it didn’t work.” “We’re profitable; why change?..and so forth! 

Before Roger Bannister broke the 4 Minute Mile on May 6, 1954, nobody thought that such a record could be set. We need to ask ‘ What is your 4 minute mile ‘ ?

It‘s the time to challenge our Mental Models of Advertising and Move from Marketers and Agencies, through Media, at Target Demographics toward being Cross-Silo Collaborators, from Ads toward Orchestrated Value-Creation Touch points, from Frequency toward When Needed, Wanted, Appreciated, from Reach toward Where Needed, Wanted, Appreciated, from Push and Persuade For Sales toward Multi Win Outcomes,pull & engage, from Ad Campaigns toward Initiatives in Holistic, Dynamic Ecosystem.

There is also a great upside in starting to use a new Vocabulary:

From Campaign To Initiative, From Content To Substance, From Persuading To Inspiring and Enabling, From Selling To Serving, From Seeking Loyalty To Earning Trust, From Disruption To Better/Alternate Solutions, From Features and Benefits to Brand Roles in People’s Lives, From Brand Differentiation To Brand Distinctiveness, From Employees To Brand Ambassadors, From Talent To Brand Stewards, From Consumers(myopic) To People with Lives, From Advertising Campaigns To Value Creation Initiatives, From Direct Response To Actionable Communications, From Big Data To Actionable Insights, From Success/Failure To Learning.

The time has come to challenge everything. Leave no sacred cows. Even challenge the objective of the firm from maximising long term shareholder value to aligning the objectives of the brand, the people (consumers…) and society.

– A strong call out to shift your focus from media mix to portfolios of all touchpoint orchestration. Go beyond the 4 Ps- bring in CeX, CSR, Packaging, Web & App etc all. The path to purchase is not linear any more. Operating in a sliver is not serving the purpose.

– Leverage the power of content( make RAVES– Relevant, Actionable, Valuable, Exceptional & Shareworthy) and the power of context( MADE: Multi Sensory, Audience driven, Delivery across platforms, Environment & location sensitive) that helps deliver your compelling brand purpose.

– Be always in beta– in adaptive experimentation mode to foster innovation, to learn faster & better, to attract and retain better talent, to hoodwink competition.

There’s no shortage of screens and there’s no shortage of impressions. But there’s a shortage of high value connection points between brands and consumers, which is the whole point of advertising. You have to create effective engagement with the consumer that gets them to buy.

Latin is very much Greek to me but as I come towards the end of this piece some Latin to keep an eye on. We have passed those days of ‘ Caveat Emptor ‘( meaning Buyer Beware). The new skid on the block these days is ‘ Caveat Venditor ‘ ( meaning Seller Beware ). 

As the brilliant Bob Hoffman puts it ” If you want to die an imbecile in advertising, don’t pay attention to art, literature, history, science, anthropology or nature. Pay attention to the Kardashians “.

Going back to Latin mode- friends- Semper Vigilans (meaning stay vigilant)!

ENDS

https://www.groupisd.com/story

https://www.brandknewmag.com

https://www.weeklileaks.com

https://www.brandknew.groupisd.com

Numerology and the Marketing Math!

Numerology and the Marketing Math: The 25 to 70% off enigma!

Numerology: Definition: The branch of knowledge that deals with the occult significance of numbers.

​We are all swayed by possibility. As we are swayed by short cuts. Human beings are hardwired to be lazy. So, unless and until there is a by design effort to put in the emotional labour​, routine is the ardently followed also ran. Mundane replaces the potential jugular. It remains that way, because it’s always been done that way. So why upset the applecart? But what happens when the cart is being toppled?

​I am not a numbers person. Far from it. It somehow just doesn’t add up for me. So, I have almost subtracted it from my life. But, being in the space that I am, and observing the brand marketing communications around me, I am tempted to do a deeper dive and know more.

25 to 70%off: Most of you would have seen these numbers ​scream out at us day in and day out from newspapers, billboards, radio ads, digital ads etc. In fact, some of us were mistaking the 25 to 70% off to be a tourist destination(considering how many of them sprout all over the city)- One cannot miss it because leading brands across industry verticals with the support and ‘ advise ‘ of big ticket advertising agencies make sure such campaigns are run 13 months in a year. So, that makes it 24X7X395. A different numerology this!

The ever lasting love affair of brand and marketing experts with 25 to 70% off remains a mystery. Or by now, it should not be. Considering the amount of time ‘ the practice ‘ has come to root(or should it be rot?). And the practice has been perfected beyond question. And ably aided by ‘ brand guardians ‘ who toe the line willingly as this ‘ ad vise ‘ is coming from senior czars at the big ticket ad agencies– how can they get their ‘ numbers ‘ wrong? . They have everything going for them- They use ‘ fancy  calculators ‘, wear Armani suits, have Turkish coffee 8 times a day, the hair is slickly gelled. Sorry, forgot to add the clincher-they also wear crocodile skin pointed leather shoes!!!

I have heard somewhere that ‘ the more things change, the more they remain the same ‘. Recently, a very senior brand and business head of a market leading lifestyle brand called us at ISD Global saying that they are in troubled times. They were losing market share and from being a clear category leader with over 65% retail market share, it was time for store closures, downsizing(or rightsizing to make it sound sweeter) and market share dipping to below 40% – all that in a matter of about 18 months. Inspite of increased marketing spends as advised by the ‘ experts ‘. My question to him was to understand what were they doing different to what was being done and not surprisingly the answer remained ‘ we have aggressively started doing deep discounting and instead of doing it 4 times a year, we remain committed to doing it through the year ‘…so there you go, enough said – ‘ the more things change, the more they remain the same ‘.

​So, do these brand owners and guardians take their coveted ad agencies to task? I’m afraid not. If that were to happen, how can they make ‘ interesting, cerebral conversation ‘ saying that our brand works with XXXX agency – they are in the Top 5…and walk around with a chip on their shoulder​. And be ranked among ‘ Top 50 ‘ Marketing Professionals in XXXX. Recognised as the ‘ best 40 under 40 ‘ or the ‘ leading 50 over 50 ‘- to be flagged on their Linked In profile. And ‘buy awards ‘ and (p)ride of place in Superbrands next hard bound edition.

Customers buy only on price and the more you deep discount, more loyalty they bring to the equation is still the belief(believe it or not!). We can keep bribing them and they will keep flocking like bees to honey. But, what happened? The numbers are not adding up. ​​The 25 to 70% off numerology chapter needs to turn the page. The strategy is now clearly a ‘ has BEEn ‘! And still being tried Bees Saal Baad( Twenty Years Hence for those not familiar with the Hindi language).

So, where are they headed? To me the writing is on the wall- or is it on the palm?

​Palmistry, anyone?​ Could be easier. Palm off your responsibility to someone or something else! Enough suckers around.

As for me, I am calling up my Mom(God Bless Her) to know more about the occult practice..you guessed it: Numerology!

Disclaimer: She is a retired Math teacher. And she has no interest in ‘hyperbole discounting‘.

And if you permit me a bit of Marketing 01(not even 101): ‘ Differentiation is not an intrinsic characteristic of a brand; differentiation is in the eye of the consumer ‘.

For all those swayed by the ‘ herd mentality ‘, this may never get heard. But, that being said, marketing is a serious responsibility. And there is no running away from that!