All posts filed under: Leadership

Nailing customer behaviours: big data and little insights

By Mark Di Somma

Every time I step out of New Zealand and into a big economic region, the two things I notice are the crowds and the scale. Looking out over row after row of A380s parked on tarmacs, wrestling for room on a crowded street in a busy Asian city or seeing the world go about its business in a towering CBD, the immensity of humanity and the pace at which life operates is immediately apparent. Recently I was struck by something else. Quite literally, at the other end of the scale. I was on a train travelling back into Kuala Lumpar from a meeting when I noticed that everybody around me had on headphones – everybody – and to a man, woman and teenager, they were wearing a look that said “Disconnected from the world”. (Of course that doesn’t just happen in Malaysia. I just happened to particularly notice it on this journey.) And I remember thinking at the time – I wonder why that is? Were they looking to keep the rest of the world …

Brands in a no-attention economy

By Mark Di Somma

I’ve said for some time that brands seem to be taking more and more of their prompts from the fashion industry – in how they act and how they think. Not surprising, given that the upgrade economy now demands that brands refresh and update their products with increasing frequency. Indeed as Matt Baxter-Reynolds points out in this article on the likelihood of an Apple iWatch, “over the past dozen or so years Apple behaves more Louis Vuitton and Prada than Microsoft or Samsung.” That being the case, it’s interesting to look at fashion journalist Suzy Menkes’ recent observations on the pace at which the fashion industry itself is now forced to work, and to ask whether we can expect the same behaviours across the wider brand spectrum. Once, says Menkes, a handful of fashion houses produced four seasonal collections. But today, with thousands of designers in the marketplace, promotional shows in Asia, Dubai and Brazil and between-season showings, the industry has 138 fashion weeks worldwide, and schedules that pack in up to 264 shows over five days. …

What’s the plural of sale?

By Mark Di Somma

How successful is a sale when everyone else is in sale too? I wondered about this as I walked through a mall yesterday. Everyone was looking to shift what they could, however they could. Which struck me as an extraordinary contradiction. Because surely the whole point of being in sale is to be in a position where you are offering goods at a price that is unmatched by those around you – so that you can either make way for more goods and/or move on what you have and recoup something. When everyone goes into sale however, the dynamics change one of two ways. Either, everyone goes into a feeding frenzy, grabs everything they can and it’s all over in no time. Or the opposite occurs. It’s much harder to move goods because even your lowered price is not an active incentive. And you’re not going to recoup because in order to be seen to be in sale in a market where everyone’s in sale, you’ll probably have to keep dipping, below cost even – …

Replacement is not a strategy

By Mark Di Somma

I’m always amazed by how one business closes and another one of an almost identical nature springs up in its place. Recently, another of the cafes near home closed. Strange thing is that the café that was there before them, on the same site, also closed. And the one before that. Clearly this is not a good site. It’s right on a corner. There’s no parking. And most of the competition is about a block away, so there’s no clustering effect. The closure itself is sad. The effects for those who had to close were probably huge. But what never fails to amaze me is how business owners believe they have what it takes to beat the odds without tilting the odds at all. There’s this extraordinary belief that, somehow, doing the same thing as the guy that just failed, is the recipe for success. Of course there are a thousand reasons why a business can fail, especially in a sector as unforgiving as hospitality, but if it were me, very big flags of misgiving …

When brands attack: 12 reasons to confront a competitor

By Mark Di Somma

As in most things in life, there’s a time to hold your ground when you’re a brand, a time to step back and reassess, and there are times when you should look to front-foot your position. Those calls should be based on pragmatism not impulse, because the resources required to up your game can be considerable and the consequences of failure can be significant. So when should a brand take on a competitor, directly or indirectly, and how should they behave when they do so? Let’s start with the circumstances in which an attack makes sense. 1. It’s the only way to expand your market share – if you have carefully thought through growth plans but are competing in a market with little or no organic growth, the only way to expand your presence is to take it off someone else. Be aware though that in many static markets, fluctuations in market share are small – so a concerted effort to grasp a bigger piece of the pie is likely to be costly, drawn out …

Are review sites the new brand managers?

By Mark Di Somma

It’s no news that the relationships between brands and their customers are changing. But the rise and rise of a new intermediary is something we should all ponder. Once we relied on frontline staff, advisors and others to help us glean the best choices. Increasingly, as the popularity of review sites like TripAdvisor can attest, buyers are getting the lowdown on what’s good and what’s not from people just like them – customers. The good people at Clear Returns spell out the changes in this nice summary: Research from Google says 84% of customers felt that online research and feedback helped influence their buying decisions and that site visitors who interact with reviews are 105% more likely to purchase; and An Econsultancy report revealed that 43% of shoppers now use their smartphones to compare prices and read customer reviews, up from just 19% the previous year. That’s not surprising. In a world brimming with choices, buyers want to know that they are making the right decision – and review sites and searches are a critical part of …

The ironies of quantifying market demand

By Mark Di Somma

Anyone proposing something new in an organisation is likely to be hit by four questions that represent two contradictory lines of enquiry. They serve perhaps to highlight the ironies of trying to quantify demand. On the one hand: The search for precedent Question 1: Who else has done this? Wrong answer: If the real answer is that many others are doing it, you have signalled what should be a non-starter. That’s because if others are doing what you are suggesting, it is not an innovation. It is, at best, catch-up. If you present it as a competitive opportunity, then you are, as Michael Porter has pointed out, relying on the incompetence of your rivals and that is not the basis for a sustainable competitive position. Right answer: The idea is new for the sector, and a similar concept, using a parallel model, has worked well in other sectors with a similar competitive profile. Question 2: Is there a demand for it? Wrong answer: You think so, or there should be, or it’s a great idea …

Should you save your brand or let it die?

By Mark Di Somma

Recently Patrick Hanlon wrote an interesting piece on branding a DOA brand. In it, he laid out a well thought-through plan to resurrect a dying marque: rediscover your reason for being; define your zealot consumers; define your brand assets; discover your relevancy all over again. His conclusion: “Even brands that seem out of date, irrelevant, and barely resonant with consumers can be re-imagined, reconceived, and reconstructed using this simple, regimented path.” Hanlon’s approach for bringing a brand back from near-death seems logical. My question: Should you do it? Birthing brands doesn’t seem to be an issue. In fact, marketers have no problem introducing new brands to market at a dizzying rate. As Professor Jerry Hausman explains, “The number of new products introduced in any year is astounding. New varieties of consumer goods such as cereal brands are evident, as any shopping trip to a local supermarket or Wal-Mart demonstrates. Potentially even more important are the new products based on technology: more than 55 million cellular telephones are in use in the United States.” In an …

Brand equity and its relationship to a good brand story

By Mark Di Somma

Like most people I’ve probably tended to silo the financial value that brands generate from the story they tell. Purpose, values and story defined a brand in my view; margin and financial worth were the outcomes of a brand well executed. More recently, I’ve been wondering whether in fact these items are not so disparate after all, and whether in fact they should be directly linked: whether the margin that a brand is able to sustainably generate, and thus the value that it achieves, is attributable and proportional to the strength, relevance and longevity of its story. David Aaker has defined brand equity as the value added to a functional product or service by associating it with the brand name. It is in effect, he says, a set of assets, including brand awareness, loyalty, perceived quality and brand associations, that are attached to a brand name or symbol. Increasingly, I believe, those assets are generated, or at the very least increased, by the stories brands tell and the experiences they deliver. This article about brand …

Finding a better good: the leap to true responsibility

By Mark Di Somma

At a recent presentation, I introduced the concept of the “goodness movement”. I defined this as a global wish for social wellness that is driving corporate social responsibility today: a recognition by brands that those that are seen to do good perform better; and a response to a wish by consumers to make a difference. Buyers want to tell themselves they are doing the right thing, and as part of that, they want affirmation on the part of the brands they buy from that good is being done. That’s never been easier. Purchases are increasingly tied to beneficial actions that, if I can refer back to my direct marketing agency days for a moment, amount to a “social premium”. The new coupon is social. Once consumers clipped physically to get money off. Increasingly, when they buy the brand, a good action is now included. Pampers, for example, have teamed up with UNICEF in a programme that sees one dose of the tetanus vaccine donated for every pack of product bought. Brands are increasingly presenting consumers …