Melodies in Marketing

While looking up Brand New School, an ad production agency, I stumbled across a series of videos they made for a DBB, a Chicago advertising agency, for their client Here’s to Beer Inc……and boy are they funny. The theme is as follows: “If you could have a beer with anyone, who would it be? Many may propose a deceased relative or a celebrity, but how about a deceased historical celebrity? Imagine sitting down to a beer and conversing with a prominent dignitary or a pillaging marauder! Well, now you have the opportunity that no-one has had in hundreds of years.”

Although the videos officially reside as part of Here’s to Beer, the videos there are further compressed than the Quicktime versions in Brand New School’s portfolio…and just simply don’t do it any justice. Click on a picture below to see each figure’s video:

.

I’m curious who Here’s to Beer Inc. is. Their site is chock full of celebration around the subject of beer. The other videos on their site are great too. I’d want to think that it’s some sort of consortium of some American brewers association?? No clue, but one thing for sure…they are meant to be virally spread. However, their “Send to a Friend” feature is limited to a Beer-O-Gram, not to the videos. Too bad, because that feature should be linked to an individual video each of us finds comical affinity with.

Nonetheless, Cheers! Prosit! Skol! Salute! Cin cin! Na zdorovje! Kampai!

UPDATE: After querying the domain holder with whois, we come to good ‘ole Annheuser-Busch.
I’m curious how AB is using the site on their end. HTB has no mention of the brewer anywhere. Is this a one-way connection AB is using in discrete/specific channels to educate consumers about the joy of beer? What’s the speculative logic my fellow marketers?

Share with:

Lewis first tagged me a week ago about Bloggers that make you think, so now it’s my turn to give 5 nominations:

1. Stephen Denny at Note to CMO gives fantastic insights to marketing and business strategy like no one else. His writings teach me things I had only barely scratched the surface with my limited readings from Ries and Trout.
2. Steve Woodruff of StickyFigure has heralded effective branding practices and perspectives that just grab my attention and resonate with me better than any of my graphics magazines’ artistic yet only epidermic efforts.
   
3. Sara Cantor of The Curious Shopper has been a favorite of mine for a long time because this girl really knows retail! She displays a passion for her field through her funny and real-life stories and pictures that just get to you.
4. Martijn van Osch from FreshCreation is my first source on innovation, engineering and advertising because every post has a video, the writing is concise, and he has a knack for finding the best new concepts out there.
5. Valeria Maltoni is the Conversation Agent of the worldwide underground super communicators task force. Beware of her intense writing!

Now we come to the blogger’s toolbox started by Drew McLellan here.Here are some authors that provide insight on best practices, act as welcoming parties, and as a role model for newbies to learn from:

1. The illustrious CK
2. Matt Dickman of Techno/Marketer
3. The classic MP Daily Fix
4. Lewis Green

Share with:

Big box retailers are turning to do-it-yourself sourcing, when they have historically been purchasing primarily through domestic importers who developed and/or procured the merchandise on their behalf.

They began purchasing goods directly from cross-border suppliers and manufacturers, opening sourcing offices in such remote locales as Indonesia and Vietnam, and flying employees with the mission to haggle with local producers, audit quality and labor practices, and figure out how to ship merchandise to their stores.

Many retailers, ranging from Target and Federated Stores to Tesco and Wal-Mart, are looking to buy more without agents. Even companies that have been sourcing direct for years are pushing the direct approach to new levels. Hewlett-Packard, for one, not only purchases computers and monitors directly from its contract manufacturers, but it also sources parts and materials on behalf of those manufacturers.

What started as fledgling purchasing operations mostly handled by others has matured into true sourcing organizations.

Not surprisingly, cost is driving the switch to direct sourcing. This is particularly true in the retail sector, where cutthroat pricing from the competition is forcing rivals to focus on high-margin, private-label goods and wring new savings out of procurement. By sourcing goods directly, they can shave about 10 to 20 percent off the net average cost of their house-brand products.

The benefits of direct sourcing also includes greater control over the production, quality and transportation logistics of merchandise. While some retailers still use consumer packaged goods importers or agents, they now work more closely and consistently with a smaller number of factories, teaching them best practices, and then give them enough volume so they’re captive to them instead of handling work for 30 other importers.

However, the gains from direct sourcing come at a price. A company must develop products, find qualified factories, solicit bids, place orders, inspect the factories, monitor quality, handle logistics, customs, duties and various compliance issues—no small checklist. Determining the true cost of those activities can also prove tricky. While the purchase price of an item may look great, the true cost may be much higher. But the risks and costs increase when you add in factors like inventory management, branding and product innovation. A failure to deal with these dynamics can erode profitability because: Lead times to correct inventory shortages can be longer, Overseas manufacturers traditionally cannot offer innovation, and House brands generally can’t command a premium retail price. This results in the generation of commodity-based products that lack differentiation thus reducing sales and long-term profitability. Many Category Managers (buyers) agree with this line of reasoning; but in the end, their actions are driven by financial pressures.

In order to survive this movement, CPG suppliers/importers MUST focus their proposition on offering unique value to the end consumer so as to differentiate their retail partner; therefore commanding higher margins. They ought to collaborate with their diverse customer base on collecting better data on the value of their brands, how their customers buy from them, and what their strengths and weaknesses are, which in turn will help retailers understand the economic trade-offs. Data coupled with research can help determine where brands and innovation drive profit and where it will not. Additionally, they can implement testing, inventory management strategies and sales programs that will diminish risks and increase profitability - a degree of collaboration that overseas manufacturers will find difficult to duplicate.

Share with:

I just came across this month’s FastCompany magazine and was stoked by the well written, yet a bit too sensational, cover story: “China: The Next Cultural Revolution“. Author Aric Chen foresees that an emerging creative class will reinvent how China thinks and works, making it a creative Superpower in the next 20 years.

Having worked with many Chinese manufacturers in the last five years, I agree to a large part with the author that China will eventually get its creative Mojo and maybe even become an innovation powerhouse. However, I believe that it won’t be happening in our life (and I’m only 29). The social changes required will be rather evolutionary than revolutionary.

China has experienced phenomenal double digit growth in the last couple decades, has a deep pool of brain power and the government is willing to invest Billions of dollars in science and technology. But the resources are not the issue here; China lacks the culture, systems and processes to foster creativity and support innovation.

Most people in China belong to one large, all-embracing unit such as a factory, government office, or village. The unit is run by party branches, operates under common administrative rules and procedures, and reflects the current policies of the party. The consequence has been that most aspects of social differentiation, mobility, and tensions are now played out within an institutional framework. Most of the questions about any individual life and prospects can be answered by specifying the unit — the social cell — with which that individual is associated.

The nail that sticks up will be hammered down.

The education system teaches children to memorize facts, rather than questioning them. It’s a curriculum that’s good for a manufacturing environment where workers must follow procedures, but it doesn’t foster the creative thinking needed for innovation.

In the end, innovation capability depends on economic flexibility. The U.S. with its entrepreneurial culture, relaxed labor markets, and free capital flows, continues to be the most innovative economy in the world. China needs such an environment to bridge the growth and productivity gap to truly transform itself into an innovative, energetic economy.

For all of us living on the other side of the Pacific, China is the world’s largest consumer market which represents significant opportunities to innovative global brand owners who can develop products and services appropriate for its diverse market.

Share with: