Monthly Archives: January 2016

Heroes

I woke up this morning to the news that David Bowie has died. I know we’re about business here and we’ll get to it, but Bowie was an artist I loved and I’d be remiss if I didn’t use his passing as a starting point today.

http://www.youtube.com/watch?v=m3SjCzA71eM

I first saw him on Valentine’s Day, 1973. From the opening notes of the introduction (Beethoven’s Ode To Joy) until he collapsed on stage after an hour and a half of intense rock, it was unlike any show I had seen to that point. What was striking, besides the music, was Bowie himself: flaming red hair and so androgynous. Spiders From Mars was an apt description, and Ziggy Stardust was mind-altering in terms of how I thought about rock stars. I think I spent a fair portion of my senior year in high school on the lawn outside of the music room listening to “Alladin Sane” with friends.

Over the next few years, I bought every Bowie album, each one different, often with completely different musicians. I first heard Stevie Ray Vaughan on a Bowie album (1983’s Let’s Dance) but Bowie was always a musician with whom other musicians wanted to collaborate – the list is way too long for this space. Let’s just stipulate that anyone who can sing with artists ranging from Bing Crosby to John Lennon to Queen is the personification of versatile.

Another interesting thing about Bowie was how he became different characters over the course of his career. Ziggy Stardust became a soul singer who became the Thin White Duke. Rock became soul which became dance which became electronic which morphed back into rock. He also did many things well – actor, songwriter, performer.

Yes, there is a business point. Bowie’s career was, as Wikipedia says, one of reinvention, musical innovation and visual presentation. Those are three keys that should be a focus for any brand: innovation, reinvention, and presentation. You never quite knew what you’d be getting with the release of a new Bowie record but you always knew it would be good, if not great. We should always be seeking to push ourselves while keeping the core tenets of our brands true.  People need to be able to count on and trust a brand, and Bowie showed us that brands need not stop innovating, growing, and surprising to retain that trust.  That innovation and surprise continued right up until the end with the release of his final album. Universally acclaimed, it is very different musically. Maybe because he knew it was to be “a parting gift” to his fans.

“Heroes” is probably my favorite Bowie song.  It came out my senior year in college (a school that Bowie’s wife Angela got kicked out of, by the way), and I’ve found it to be inspiring ever since. Great products can do that.  Have a listen and take a moment to miss what Bowie, one of my musical heroes, has taught us.

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Filed under Music, Thinking Aloud

Opaque Oil

It’s Foodie Friday and I’ve got olive oil on my brain. If you cook, you use olive oil at some point. You might even pay the premium for extra virgin, especially if you’re using it in a dressing. That’s where the fun begins today.

Oil tasting, BAIA October 2006 Wine Tasting, C...

 (Photo credit: Wikipedia)

I read a book a couple of years ago called Extra Virginity. It’s written by Tom Mueller, who continues to write about the Italian olive oil business, which is rife with fraud. That’s right: you may be paying for a product that is not what you think it is. As reported in the Guardian:

Top Italian olive oil producers are under investigation for allegedly passing off lower-quality products as “extra virgin”, raising fresh concerns about allegations of consumer fraud in the industry. Turin police are examining whether seven companies – Carapelli, Bertolli, Santa Sabina, Coricelli, Sasso, Primadonna, and Antica Badia – have been selling virgin olive oil as 100% extra virgin. According to allegations in Italian press reports, an analysis of samples from all seven brands found that they did not meet EU labelling rules for extra virgin olive oil.

It’s not just the olive oil guys. There is a significant risk of fraud with fish, honey, milk, select spices (saffron, black pepper, chili powder), fruit juices, meat, grains and organic foods. This topic is way too long for a daily screed, but there are two business points which are applicable to any of us in business. The first, and most obvious, is that when consumers can no longer trust your brand, they will move on. Look at what has happened to Volkswagen after they rigged the results of their auto emission tests. You might think that your brand is strong enough to come back after that sort of loss of trust, but you’re delusional. We’ve spent a fair amount of time on honesty and transparency this week, so you know my point of view.

Second, and less obvious.  Chances are that the consumer won’t realize that they’ve been deceived.  They will probably think their dish is just not great or that they did something “wrong” when the fraudulent product doesn’t perform well.  Even if they don’t lose faith in the brand, they might just stop being a consumer of that category altogether.  I am unaware of any industry that wants to shrink its user base, and while people won’t stop cooking, they might switch to another kind of oil that has the same characteristics or to another type of car than a diesel.

I realize that fraud in the food world – or any other business – isn’t new.  There are reports of doctored products going back centuries.  The difference now is that detection and reporting happen more rapidly and that reporting can be widespread instantly.  The damage never goes away because the reports turn up in searches forever.  The solution?  Don’t do it!

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Filed under food, Huh?

A Snap Of A Dilemma

Are you on Snapchat? I am, although I don’t pretend to understand it as well as some of my younger friends. What I do understand about it, however, is that they are facing the sort of dilemma that torments a lot of businesses. I don’t have any real answers today but maybe you do. Let’s see. 

Snapchat began as a way for users to send disappearing content – photos, videos – to other users. Of course, as with everything on the internet, the content never really disappears (screengrabs, anyone?), but let’s put that aside. The app became very successful and now has over 100 million daily active users. That’s the sort of scale that becomes incredibly appealing to marketers, and it also makes other revenue options such as commerce and data mining more viable.

Now the dilemma. Snapchat’s business has been built to a great extent on the premise of privacy. If you’ve ever tried to locate someone on the platform, good luck. If you don’t have the email address they’re using or their exact Snapchat name, it’s very hard. That may be great if you’re a user trying to avoid stalkers, but if you’re a brand trying to get users it means you need to do a lot of external marketing of your Snapchat presence.  This quote from a recent Digiday piece says it nicely:

One of Snapchat’s main selling points with users entails its combination of anonymous users and disappearing messages. The company has been strident about not building profiles on users to creepily advertise to them. As the reality sinks in about the need for a viable business, more targeting and data capabilities follow. Technology partners are able to bring their own data to an API — email lists and other customer information — to serve ads against.

Therein lies the dilemma.  Until now, Snapchat has tried to make money by selling “lenses”, overlays that will let you alter your snaps so that, say, you can be vomiting rainbows (and who doesn’t want to do that!).  While $300,000 a month in lens sales is nothing to sneeze at, it’s not nearly the kind of monetization that a platform with this kind of user base can command. They also tried to sell ads embedded in some of the “stories” that are a part of the service (they’re a series of snaps linked together around a theme).  Apparently they don’t have enough user data or metrics about engagement to satisfy big spending.  So what do they do?  What is the business?

The balance between staying true to the reasons customers engaged with you in the first place and making money is tricky.  Better metrics and targeting might mean less privacy.  More ads in content mean less user enjoyment (no one likes being interrupted). Less enjoyment and decreased privacy might mean a decline in the user base.  But it is a business, and investors want to see a return.

So what’s the answer?

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Filed under digital media, Thinking Aloud