Monthly Archives: April 2012

No Good Deed…

For our Foodie Friday Fun piece I want to look at something Whole Foods announced a month or so ago. On the surface it seems as if it’s very much in keeping with their brand positioning and is something that will make a positive contribution in sustaining the food chain. Why, then, are so many people questioning both their motives and the effectiveness of what they’re doing? A quick examination is useful in raising issues we can all think about as we try to move our businesses forward.

Atlantic cod fisheries have collapsed

Atlantic cod fisheries have collapsed (Photo credit: Wikipedia)

First the facts.  Whole Foods announced that they will stop selling fish caught from depleted waters or through ecologically damaging methods.  They won’t carry wild-caught seafood that is “red-rated,” a color code that indicates it’s either overfished or caught in a way that harms other species.   This will impact the sale of octopus, gray sole, skate, Atlantic halibut and Atlantic cod caught by trawls, which some say can destroy habitats. Instead, they say they’re going to sell sustainable replacements like cod caught on lines and halibut from the Pacific.  Pretty straightforward, right?  Hopefully by not selling the fish that’s most threatened or whose capture might damage the environment, Whole Foods is marching in step with their brand image and their customers’ mindset.

Except maybe not.  First, for those of us on the east coast, Pacific fish needs to be flown here.  Without having the “is global warming manmade” fight, let’s just assume it’s better to eat locally sourced ingredients for a lot of reasons, the environment and taste among them.  Next, it ignores items such as scallops which are not endangered but are caught using many of the same methods (dredging) that are being excluded.  Third, the list the chain is following is produced by the Blue Ocean Institute and the Monterey Bay Aquarium in California which some attack as having their own agenda.  Finally, the more cynical (read that as New England fisherman) commenters question if the whole thing isn’t just a PR stunt to get some good out of the fact that cod and other of the “red-rated” fish will be hard to find and very expensive so to mitigate the lack of availability the chain is just tossing it out completely.

I have no clue which position is right or wrong.  I raise the discussion because it’s a great example of how even what seems to be a company trying to do some good can involve an awful lot of issues to which technology gives a lot of visibility.  What about the fisherman whose livelihoods are affected?  What about other local jobs that support them and the excellent work most local fishing communities are doing to preserve the fishing beds (which obviously they should have started a long time ago or we’d not be having this discussion!)?

We’ll file this one under no good deed goes unpunished, I guess.  It’s all of our jobs to try to do good as we’re doing well.  The trick is to make sure that others see it the same way and if they don’t, that at least you’ve considered their positions and are prepared to discuss your reasoning.

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Trust Me

For you trivia buffs in the audience, there once was a TV game show called “Who Do You Trust?” The host of the show was a struggling comic named Johnny Carson and a year into the run he picked up a guy named Ed McMahon as his announcer sidekick. The rest is television history.

That bit of history has very little to do with today’s topic other than it asks the question the study I want to highlight answers. Who do you trust? For consumers, the answer appears to be one another.  Nielsen released its Global Trust in Advertising Survey and it shows that

92% of consumers around the world say they trust earned media, such as word-of-mouth and recommendations from friends and family, above all other forms of advertising, an increase of 18% since 2007. Online consumer reviews are the second most trusted form of advertising with 70% of global consumers surveyed online indicating they trust this platform, an increase of 15% in four years.

That’s the good news.  The bad?

…While 47% of consumers around the world say they trust paid television, magazine, and newspaper ads, confidence declined by 24%, 20% and 25% respectively since 2009.

You can read more about this here but the data reinforces the fact that we’re in the midst of a huge transition in marketing.  While most brands are still making the bulk of their marketing investment in paid media, the messages those media disseminate are declining in effectiveness as consumers find other sources of credible information to help with purchase decisions.  Visibility and relevance are not the same thing.

More brands are making efforts in what’s popularly called “earned media.”  They hire an intern to monitor message broads and social media while at the same time they spend millions paying creative types and media buys to work on their TV and print.  While I’m not for a minute suggesting the abandonment of traditional media, perhaps it’s time to look at reallocating resources better to reflect modern realities?  The money spent on the last two titles on your media plan could be working a lot more effectively elsewhere in media more trusted by your consumers.

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Your Customers vs. Your Partners

Here is an interesting story from the folks at MediaBiz that just cuts to the core of almost every business issue.  It points out the Sophie’s Choice created by some older business models in a time when technology is forcing them to change.  First the facts:

DirecTV

DirecTV (Photo credit: Wikipedia)

A handful of DIRECTV subs stopped receiving HBO after the company started blocking the signal on older TV sets that don’t have the encryption standard High-bandwidth Digital Content Protection (HDCP). DIRECTV… recently added HDCP protection to all HBO-owned channels and “will continue rolling out to other premium services in the coming weeks.” The company said affected customers should replace their HDMI connection with a component video cable and a separate audio cable (emphasis added).

Most folks who do so for a living will tell you that HDMI is a better signal (and therefore picture) than component video.  DirecTV also markets itself accurately as providing a better picture to consumers.  Without content, however, there is no service – it’s a big, empty pipe.  It’s the content providers who are insisting on the use of HDCP.  They’re the ones whose business model is most impacted by what they presume is widespread piracy and are insisting on this protection layer.  DirecTV is placed in the untenable position of either losing the content by catering to their partners or telling customers to degrade their pictures and potentially losing customers who can get better video elsewhere using more current technology.

Ultimately, customers pay the bills.  I believe we win when we serve them and while that may, as in this case, cause problems with partners, suppliers, and others, that downside risk vs. that of angry and vocal consumers is minimal.  In this case, the customers who would most notice the downgrade to component video are probably the ones who would know how to cut the cord and get the content they seek elsewhere, hopefully through legitimate means rather than piracy.  As businesspeople, we encourage that illegal behavior by choosing any segment over our customers – witness what the music business did for a very long time.

That’s where I come out.  How do you see it?

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