Six of the Best: Sticky accelerators, iPad jokes, phone book forts and more edition

Steve Jobs took center stage this week for yet another attention-grabbing launch announcement. There was enough bated breath to temporarily reverse global warming. All the hoopla! gave Toyota a little bit of cover in what was still a disastrous week for the company. While all this was going on, Facebook went all Doppelgänger on us.

1) My Pad or yours: What's up below deck? (Landor's blog)
By now, more has been written about the iPad than anyone could read in a lifetime, perhaps more than the 16 GB base model could even store. And the jokes started flowing too. Sample: "Will the 16-, 32- and 64-gig varieties be referred to as 'light,' 'regular,' and 'super'?" But, as Hayes points out in this post: "After the jokes and puns are lobbed ... is anyone confused about who brought us this modern marvel, what it does, how it will likely be used, and whether it’s probably just affordable enough?" Hayes thinks the name is "pretty nigh perfect" and I agree.

2) Learning from Toyota's Stumble: Harvard Business Review
While Apple was having another great week, Toyota was having perhaps its worst week ever. The problem of the sticky accelerator went from troubling issue to absolute calamity as it had to recall 8 million cars globally and stop making eight models until it can fix the problem. There's been plenty of speculation about the potential short and long-term damage to Toyota's reputation. This post from Steven Spear puts the blame on the current problems on too- aggressive growth as Toyota got caught up in the race to be #1.

3) New Solutions Emerge - Apple, Amazon, Netflix, YouTube, Hulu: The Phoenix Principle
Adam Hartung hammers away, week after week, driving home his message that companies get in trouble when they lock-in to their success formulae and stop looking for ways to reinvent themselves. This week, he brought in evolution to help make the case. He explains in this post that people generally misunderstand evolution. They think that change happens slowly but that's not how it works. What really happens is a few members of a species will be different from the others--they will have short tails when most have long tails. These short-tail members will not do well while having a tail is important. But, if conditions change, and suddenly, say, there's a new predator who catches its prey by the tail, then the short-tailed members of the species will become dominant. Very quickly. Companies that drive out all of their short-tailed thinking and leave no room for rapid adaptation, these are the ones that will one day find themselves in trouble they can't get out of fast enough.

4) The Coffee Question: Fritinancy

Nancy Friedman takes her readers for a trip back in time to the heyday for MJB, one of the many coffee companies founded in San Francisco (Folgers and Hills Bros are two of the others.) In Old Oakland, there's still a "MJB Coffee Why?" ad painted on a house, a relic of a curious campaign for the brand launched exactly 100 years ago. These days, MJB is barely hanging on, driven off the shelves by stronger competition. As a former MJB brand manager (and someone who shares the same initials), it's sad to see this old brand fading away.

5) Charlie Brooker - How To Report The News (via brandflakesforbreakfast)

Brilliant! A step-by-step guide on how to put together a news report that looks like all the rest. Perfect for the UK, not that far off for the U.S. either. Report includes "obligatory shots of overweight people with their faces subtly framed out" and the "wry sign-off."

6) Let's build a giant fort with them: Indexed
Just what I was thinking when I noticed our unopened phone book sitting there all shrink-wrapped and unloved the other day. Will they ever stop printing these things?

That's it! Back soon with more stories from the world of brand strategy (and vaguely related areas). More thoughts and comments also available on Twitter (@martinjbishop).

What's going to be the next ethnic food hit?

I missed the Winter Fancy Food Show in San Francisco this year. As 1,300 exhibitors from 32 countries showed and sampled their 80,000 products to 17,000 attendees, I was off to India. But Andy Whitman of 2x Consumer Products was there and produced his usual excellent summary of emerging trends.

What he saw amid the sea of chocolates, olives and cheeses was the possible emergence of lesser know ethnic foods to take the place of those like Japanese, Thai and Indian that have become more mainstream.

As he says: "The 'big three of ethnic foods' Italian, Mexican and Chinese – are so broadly consumed they’re really American food. The next most popular ethnic foods – including Japanese, Thai, Indian, Mediterranean and others – have already begun their 'mainstreamization' as a result of the plethora of authentic restaurants, Americanized offerings at casual dining like TGI Friday’s and Cheesecake Factory and of brands like Thai Kitchen and Marrakesh Express companies. With ethnic foods consistently other grocery products and maintaining growth in softer economic times ... lesser known ethnic foods from
of the globe are likely to emerge as 'the next wave'."

I think that's right. Part of the attraction for ethnic foods is that they are not everyday, not the type of thing you'd find in TGIF. There's a fashion element. Once your mother-in-law is wearing Uggs, it's time to stop wearing them (if it ever was).

Which contrivance brings us to just one of the candidates that Andy discovered at the show that may benefit from this search for the new ethnic foods. It's Mother in Law's Kimchi and apparently it's really good (a thumbs-up from the New York Times as well). The product is based on an original recipe from founder Lauren Chun's inlaws' Jang Mo Gip restaurant in Garden Grove, CA.

Other products identified by Andy also representing this new trend: Afghan Bolani and Fava Dip, based on a popular Egyptian dish.

Six of the Best: Back from India edition

Just got back from a business trip to Mumbai, my first visit to India. I got there ahead of time so I was able to do some speed-sightseeing, mostly in South Mumbai, the traditional business area and the location of some of the best-known tourist areas. Impressions and branding observations from the trip:

1) The Taj Mahal Palace and Tower

Photo: Taj Mahal Palace and Tower (me)

The Taj Mahal Palace & Tower is an iconic, 105-year old hotel located next to the Gateway of India. It's the flagship property of Taj Hotels, Resorts and Palaces. It now also serves as a symbol of Indian resilience after the terrorist attacks on 26-11-08 that killed 167 people and only ended after a three-day battle when Indian commandos killed the gunmen barricaded in the hotel. As you can see from the photo, the hotel is still being repaired but it's back in operation and looking good. (Here's a photo of the main foyer and here's a photo of bullet holes elsewhere in the Colaba district.)

2) Himalayan water

Photo: Himalayan (me)

The ultimate in water sources--right from the Himalayas. Makes Poland Spring, Evian and even Fiji Water seem a little mundane.

3) Indian business groups

Both the Taj Mahal Palace and Tower and Himalayan are part of the Tata Group, the largest private corporate group in India. In addition to hotels and beverages, the Group plays in a host of other categories from cars to information technology. (It was the group that bought Jaguar and Land Rover from Ford.) Other groups such as Reliance and Mahindra also cover a dizzying range of business categories.

In the U.S., such "conglomerates" typically trade at a discount because analysts have come to believe that conglomerates are inefficient and that these companies cannot master and be expert in such a range of businesses. (Here's a typical commentary.) But, in India, these groups are thriving. The critical factor that makes the difference is the value placed on reliability. Whereas, U.S. companies are expected to be reliable, dependable and trustworthy, that's still an important differentiator in India. Especially in those categories like cars or real estate where people are making a significant financial investment, they are likely to seek out groups that have a strong reputation and are likely to be around for the long term.

4) Axe

Photo: Axe (me)

Unilever, operating as Hindustan Unilever, is India's largest consumer packaged goods company getting in early (with Sunlight soap bars in 1888) and holding its lead ever since. It sells a mix of local and global brands, including Axe. As you can see from the photo, apparently the idea of helping men stay ahead in the dating game travels well. Dove is also in the Indian market but this brand appears to be pursuing a market-specific approach. Its current outdoor campaign reads: "Dove comes off like cream. Soap does not," a much more functional idea than the Campaign for Real Beauty.

5) Traffic

Photo: Taxi by Honza Soukup (Flickr)

The traffic is one of the many sights, sounds (and smells) that create lasting impressions of Mumbai. The traffic-light-free, dare-you junctions, the non-use of lanes, the constant cacophony of horns and the occasional buffalo cart are important ingredients but the signature element must be the yellow and black, Premier Padmini taxicabs, based on a small Fiat sedan from the early-1960s. As this article describes, the government has passed legislation to phase out these cabs for more modern alternatives. But, for the moment, there's plenty left on the roads.

6) Jai Ho from Slumdog Millionaire



The hotel I stayed at hosted the CID Gallantry Awards while I was there. These awards celebrate Indian citizens who have rescued kids who fell down drains, that kind of thing. As they were setting up, they played this song many, many times to check the sound system. According to the comments on the video, Jai Ho! is a victory shout that means something like: "Hurray" or "It Rocks," a slogan that nicely sums up the spirit and energy of the country at the moment.

That's it! Back soon with more stories from the world of brand strategy (and vaguely related areas). More thoughts and comments also available on Twitter (@martinjbishop).

Six of the best: In the buff edition

Facebook was ablaze with color and confusion this week. Those in the know were all black, beige and lavender. Those who weren't were wondering what it was with all the colors in the status updates.

1) OMG! TMI! 'What color's your bra?' becomes global Facebook fad for a day: NY Daily News
Turns out the point of the color status updates was to raise awareness of breast cancer and confuse men. Winner: Meme of the Week. Confusion: As many women not in the know as men. Impact on breast cancer awareness: Uncertain.

2) Lethal jellyfish stings World's Best Job guy: AdFreak (from @BrownhillJ)
Last year, the Australian tourist board scored a huge viral success when it advertised the Best Job in the World to look after and blog about a desert island off the Queensland coast. Ben Southall, the British charity worker who beat out 35,000 other people to win this job, may not have read the small print which might have mentioned the host of dangerous sea creatures living around the island. These include the Irukandji, tiny but extremely nasty jellyfish, one of which stung him. Luckily for the tourist board, he survived.

3) Weatherproof Blows a Presidential Naming And Branding Opportunity: Strategic Name Development

Apparel company, Weatherproof, has appropriated President Obama's image for a massive billboard in Times Square. He apparently wore the jacket on a trip to China. The White House "disapproves" and William Lozito says it: "Smacks of sleaziness and makes the company look tawdry." Fair?

4) Dove Takes Its New Men's Line to the Super Bowl: AdvertisingAge
The perfect case to pit the battling camps of brand extenders vs. brand focusers. Dove spent time, effort and money to position itself to women with its Campaign for Real Beauty. Now it's going back to the Superbowl with an ad launching a line of cleansing products for men. Good for the brand or destroying its positioning?

5) Avatar' = 'Pocahontas' In Space: Huffington Post
First, let me say that I saw Avatar in 3D on an IMAX theater and I thought it was incredible. That said, I think this book report style edit of Pocahontas into Avatar is pretty funny.

Disney's Pocahontas: In 1607, a ship carrying John Smith arrives in the lush "new world" of North America. The settlers are mining for gold; under supervision of Governor Ratcliffe. John Smith begins exploring the new territory and encounters Pocahontas....

James Cameron's Avatar: In 2154, a ship carrying Jake Sully arrives in the lush "new world" of Pandora. The settlers are mining for unobtanium; under supervision of Colonel Quarty. Jake Sully begins exploring the new territory and encounters Neytiri....

6) Star Wars: The Phantom Menace Review (Part 1 of 7): RedLetterMedia (from @sbicy)



While, I am in movie-mode, here's the first of a seven-part epic critique of George Lucas' Star Wars prequels. Starts off: "Star Wars: the Phantom Menace was the most disappointing thing since my son... the unfortunate reality of the Stars wars prequels is that they will be around ..forever. They will never go away. They can never be undone." The narrator's voice alone makes at least some of this worth listening to.

That's it! Off to India at the end of next week so there will be no "Six of the Best." But, maybe I'll have some pix from Mumbai instead. Meanwhile, more thoughts and comments also available on Twitter (@martinjbishop).

Predator or Partner? Different ways to think about M&A

Photo: Risk! by geoftheref (Flickr)

Here's one view of mergers and acquisition. In talking about M&A opportunities, The Boston Consulting Group says that companies must analyze their position to ensure that they are prepared for the coming economic upturn.

"A good one-fifth of all companies will be 'predators' that are ready for acquisitions, while another one-fifth will be 'prey'--unless they take radical steps to survive" (my emphasis).

In this view, there are winners and there are losers. Very Von Clausewitzian, very aggressive, very competitive. And if your goal is to eliminate competition, reduce costs by combining assets and control everything from HQ, and if your intention is to quickly absorb an acquired company, throw out the executives and give it very little operating autonomy, maybe appropriate.

Still, it's a troubling fact that most acquisitions don't work. McKinsey & Co. has estimated that nearly 80% of mergers don't even earn back the cost of the deal itself and there are many other studies that suggest that most mergers don't create value for shareholders.

Prashant Kale, Harbir Singh and Anand P. Raman suggest that there may be an alternative approach to acquisitions that is kinder, gentler and, in many cases, more likely to succeed. They call this approach to acquisitions: "Partnering" and it's the preferred approach of emerging multinationals like Tata Group and Ülker (a Turkish group that acquired Godiva).

Writing in the Harvard Business Review (gated), they describe partnering as: "Keeping an acquisition structurally separate and maintaining its own identity and organization. The acquirers retain the senior executives, particularly the CEOs, of the corporations they buy and give them the same power and autonomy they used to enjoy." 'What's the point in that?' the Von Clausewitz in you may be asking.

"By doing so," say the authors, "emerging multinationals are able to manage acquisitions' organizational drivers in a non-threatening way, reduce the unintended consequences of integration, and create an environment in which companies can easily share knowledge and best practices."

Partnering does not mean that the acquired company is left completely independent and alone. Those following this approach look for natural synergies, focusing on activities that can be coordinated to yield cost savings or revenue enhancement without disrupting core businesses. Things like raw material purchases and sharing best practices.

It's not that surprising that partnering has become the preferred approach for emerging multinationals. As they expand their footprint into new markets, they are buying companies that own powerful brands, state-of-the-art technologies and strong management teams. They are not making acquisitions to slash and burn; they are acquiring to grow and learn.

But, as the authors point out, it would be a mistake to dismiss the idea of partnering as something that only makes sense for these companies. As the authors point out, a similar approach has been adopted by Disney to get the most out of its Pixar acquisition and by Amazon with Zappos.

Partnering isn't for everyone or for every occasion. Companies with strong command and control, centrally managed organizations and cultures won't be willing or able to adapt to this model. Companies that are trying to build a single, global brand to serve the needs of global customers won't find the model that useful.

But, for companies that can take a longer term view, are tolerant of risk and ambiguity, have experience of similar business relationships (like strategic alliances and joint ventures), the partnering approach should be an attractive option. It holds out the possibility of succeeding with acquisitions where so many currently fail as they are beaten down by the disruptions of merging separate operations and the collapse of organization morale, challenges that are often drastically underestimated in the thrill of the hunt.

The six most popular Brand Mix posts of 2009

Photo from Brand Mix 2009 book cover

As far as I can see, there's no rhyme or reason to this list of the six most popular Brand Mix posts from last year. It's a mix!

#1: Vive la Difference: Building/Killing brand loyalty (Feb 2009)
A post based on a study published in the Journal of Consumer Research that showed that, if you want to raid brand loyalists from the competition, you should focus on the similarities between your product and theirs. But if you want to keep your fans loyal, you should focus on how you are different.

#2: Summer reading: Watching the English (July 2009)
My favorite book of the year, a book that helps explain the peculiarities and ways of (we) the English. Why do English people always talk about the weather? (Hint: It's not because they are interested in the subject) Why do English people use humor all the time, even at the most inappropriate moments? Why do English people moan incessantly? And more.

#3: The ugliest laptop in the world (May 2009)
Grateful as I was to get a new laptop, it seemed only fair to point out that this Lenovo ThinkPad T500 was one ugly and extremely heavy piece of machinery.

#4: Why do popular brands have such staying power? (May 2009)
This was also one of the longest posts of the year. I looked at the various theories that try to explain why brands hold onto leadership positions long after product superiority has been wiped out by competitors.

#5: Starbucks VIA instant coffee taste test: Is it as good as they say? (April 2009)
The launch of VIA, Starbucks instant coffee product provided a lot of material for me last year. This was my first post on the subject where I set up a taste-off between VIA, regular Starbucks coffee and Taster's Choice (the instant coffee brand I used to manage). Bottom line is that VIA does taste great. Whether this makes it a good product for Starbucks to promote as heavily as it did last year is another question entirely.

#6: What do you think of the Baked! Lays makeover? (May 2009)
Baked! Lays celebrated its 15th anniversary with a design makeover that was interesting from a brand architecture perspective. Although I could see the logic of the new design, I wasn't sure that putting so much focus on Baked! was the right way to go. I'm still not sure. I wonder how sales are going.

By the way, I've put together a collection of Brand Mix posts from 2009 in a book. (Blurb.com makes this surprisingly easy to do.) If you'd like to order yourself a copy, it's available here.

Six of the Best: Looking forward edition

Photo: 2010! by pfala (Flickr)

Enough of 2009 and the Naughties. Onward and upward with the new year and decade. Let's see what people are predicting for the year ahead.

1) Social Media Predictions for 2010: Scott Monty
Scott includes a list of predictions from Chris Brogan, Brian Solis and Pete Cashmore among others. One of his own predictions is that social media will become smaller and more local in 2010. He says the "collective cacophony is simply too much" and that people will start focusing on those who are close to them.

2) eMarketer weighs in on 2010 trends and 2010 Predictions Round-Up: eMarketer
Also on Scott's list are two sets of predictions from eMarketer. These include all the normal suspects: More convergence, more mobile commerce and ad spending, more video and video ads, including trend data.

3) American Consumption and the New Normal: Harvard Business Review
Nancy Koehn describes two trends that gives us a glimpse into the "new normal" of consumption. The first: "The flight to Wal-Mart (and other hard discounters) is over." She says that consumers are willing to open up their wallets but will favor brands that they can trust--brands (like Hyundai) that offer "clear, succinct brand promises" and then deliver "on these promises customer by customer, over and over again." The second: "Consumers are relying on the Internet to help them define value." She says that the Internet has made it possible for households to: "Research not only the price and attributes of product or service, but also in many cases the larger story behind it—where did the offering come from, what kind of company created it, how their are employees treated."

4) 2010 Predictions: 10 Marketing Winners and Losers: eyecube
Rick Liebling predicts the winners will be: New Business Models, creatives, the fleet of foot, optimists and (team) choreographers whereas the losers will be: The competent, the standalone solutionists, the owners and the anarchists, the freeconomists and the pretenders.

5) 2010: Year of the oh-so-sexy tablet: Thoughts Gadgets

That's it! Back soon with more stories from the world of brand strategy (and vaguely related areas). More thoughts and comments also available on Twitter (@martinjbishop).