David Report issue 5/November 2006 YOUR PATHFINDER INTO THE FUTURECommunicationThrough Product“David Report provides thought-provoking insights which give me inspiration and ideas.”Peter Bodor, Public Affairs and Communications Manager, Coca-Cola Sweden”Reading and viewing several trend reports and newsletters daily I could simply say that David Report is the ONE to read.Other describes what’s done yesterday. David Report tells what will happen tomorrow and in the long run, and does this witha design perspective and humanistic approach I just can admire, respect and agree with!Ulrika Lövdahl, Project Manager, Communication Development, V&S ABSOLUT SPIRITS“Finally David Carlson, the famous Swedish design-entrepreneur, takes the obvious next step by starting the David Report.He wants to change the world. He might do it.”Olle Wästberg, Director General, The Swedish Institute
Our keynoteForewordLast issue of David Report (no 4: Welcome to the Credi-bility Loop) made an impression on our readers. We havebeen asked to take a deeper look inside the loop. Whocould argue with that, we are here for you, dear readers!This new issue is called Communication Through Productand we are really happy to present it. Not only becauseit consists of an interesting development of our initialthoughts, we are also proud to deliver ideas that we be-leive could save our fellow business men/women billionsof dollars. This by using a marketing strategy based ondesign, creativity and inovation that we have named CTP,an abbreviation of Communication Through Product. Mini Cooper - good example of attractive designThe lead-in about products and services. According to the marketers advertising has been the big solution to everything.Today our world is completely different compared to the Advertising has been the king. But it is no more. We haveearly years of industrialism or even in comparison to just a new world order where online communities like YouTubeten fifteen years ago. Our modern society is more or less and MySpace will be in command as the new messagetotally transparent and the consumers are in command. To carrier. A recent example is the short movie ”campaign forbe successful today you need a genuine interest to listen real beauty” from Dove which generated better feedbackto them and to understand their needs by implementing at YouTube than through a multiple dollar thirty secondsengaged, humble and respectful conversations. Not by spot during Superbowl.polluting the world with just another shouting advertising We would like to turn the telescopic sight back tocampaign. the very core of brand delivery, which is the products andAs a reminiscence, a short resume of David Report issue services. The very heart or DNA of a brand so to speak.4 – The credibility Loop: This is where most credibility lies. And by developing and spicing up the core you can achieve competitive advan- “Today advertising is a questionable effort both tage in an ever-changing world. Still, in most cases theto build recognition and to build a brand. The academic core is blurred by all the advertising surrounding more orelite as well as business professionals have a second less everything we buy but which is not adding anythingthought how to do. It’s all about building a trustworthy to the world. It is just a lacquer on the top. It is just thereand reliable partnership with your (future) customers. to market the product. It is just like the peel of an orange.To become a part of their mind so to speak. And when Something you peel off and throw away in the garbagemost people are sick and tired of all advertising every- when going for what´s good inside.where, there must be a better way to communicate with Maybe it exists other and more creative methodsthem, mustn’t” to make products attractive to the consumers rather than spending more and more money on traditional adverti- As an answer to the current situation we gave sing? We think so. What if a company took some (or a lot)the advice to go for a ride in the Credibility Loop. We are of the advertising and communication budget and used itconvinced that if a product will be able to speak for itself on design and innovation instead?via a unique design, personality and soul, it will by far be Will that help them to enhance the attraction and make athe best and least expensive way to communicate it. product more desirable? Will they be able to make it more particular and necessary? Of course, according us.A new world order. Advertising cannot change the word. Design and innova-For a couple of decades it has been unfashionable to talk tion can!
Our interviewWe proudly present an interview with Acne Jeans. A that we have, ‘Acne Jeans’ would be a mere veneer wit-Swedish fashion brand that by designing simple and hout a solid base.functional clothes, aims to create a modern framework forindividuality. 7. How important is design, innovation and creativity?1. Please shortly tell us about the history of Acne Vision, ambition, innovation and creativity are the lifebloodJeans. of the whole Acne creative collective, and the reason we continue to produce all from jeans to a high fashionAcne started as a creative collective in 1996, with four magazine.creative individuals who each had a different field ofexpertise. With time the original company grew four 8. Tell us something about your magazine, Acneindividual arms; Acne Film, Acne Digital, Acne Creative paper.and, of course, Acne Jeans. The concept has always beento combine art and industry in a manner which felt both Through Acne Paper we want to share the multitude ofvisionary and logical, and this spirit is still what drives us people, places and cultural currents that inspire us. Heretoday. we want to invite our customers into a world of flair and glamour as well as a world of subtleties and reflection, and2. Who is your target group and what are their va- somehow bridge the gap between history and the present.lues? 9. Are the Acne studios an important part of yourThe Acne Jeans customer is someone who feels attuned communication? What are the key ingredients?to the culture industries, whether this is as a consumer oras a producer. Our customer has high demands on what Our Acne Studios are an extension of the Acne concept,they consume, and always challenge us to create the best and a way to invite the customer to the ’Acne world’. Wepossible product. want the customer to feel familiar and comfortable, whilst still offer a taste of something new and unexpected.3. You do not market Acne through traditional ad-vertising, please let us know why? 10. You do a lot of different events and installations. One recent example is the shop swap with BrownsAt the very beginning we simply couldn’t afford to, and Focus. Please let us know something about yournow we feel that we prefer to invest in new products, such thoughts and your objectives.as Acne Paper, rather advertise in the traditional manner.Seeing as we’re still growing in every respect, this means The Browns Focus shop swap started as a project among-prioritising, which right now equals no advertising. st friends, and developed into something quite spectacular with a life of its own. As with everything else that we do4. Do you reach your target group without traditional we wanted to push the boundaries of what to expect fromadvertising? a clothing brand. Retailing today means being intrepid and fearless, and to always aim to give more back to theYes. customer, whether that means sharing a good secret, as with Acne Paper, or giving a struggling artist a helping5. Your collections are the core of your business. Are hand, as with our gallery space ‘Vita Valvet’, or providingthey also important for your communication? something totally unexpected as with our shop swap.We are absolutely design driven in every respect. The 11. Please let us know what is happening in the nearinspiration that the design team use each season pushes future?the whole company forward. Through the collections weare always exposed to new creative references, so- We have several! For s/s 07 we have collaborated withmething which in turn also, both directly and indirectly, Tretorn to produce two sneaker styles that we hope will beinfluences the way we choose to communicate the collec- universally loved (they have already created a minor ‘must-tions themselves. In this sense we would like to think that have’ frenzy here at the office!), and in the near futurewe always push onwards, never standing still. we will finally open a webshop. On top of this we have several ‘real’ shops opening soon, the closest one being6. Are your products an important part of the brand the Gothenburg Acne Studio, which will open with a bangexperience? the 29/11.The products that we make are at the heart of AcneJeans. Without products that reflect the high standards
Our private eye - LuganoThe end of the conventional advertisingby Oliver IkeToday large companies have to invest the money thatthey used on conventional advertising campaignsinto the product itself. Our theory, the CTP strategy(Communication through product) mentioned below,underlines the importance to improve the USP of aproduct through investing in its design and innovation.The product thereupon speaks for itself and hencehas no need to be communicated through conventio-nal ATL advertising as before. The consumer of today’s world is betterinformed than ever due mainly to the Internet. He iswilling to pay a premium for a product but only if itcommunicates lifestyle to him. How can we achieve Ikepad watch by Marc Newsonthis? What are the rules to obey to get a positiveresult? I would like to explain this to you through anexample of the watch industry. 10 years ago I created a watch-brand called also derived part or all of their success due to focusingIkepod. By picking one of the most en vogue desig- on the product design. What would Audemars Piguetner at that time, Marc Newson, I differentiated the be today without The Royal Oak watch-lines designedlooks of the product from what was available in time- by Gerald Genta. How would the sales have developedpieces on the markets. Combining traditional Swiss for Jaeger-le-Coultre without their Reverso model? Howmechanical watch making with avant-garde design would Patek’s image be without introducing the Nautiluswas the key of my success. Design for me is form or Aquanaut designed by the same Genta?and function. If it only becomes form like in the 80’s These are just a few examples that show you that if youand there is no function, it equals art and has nothing let the product speak, through its design and innovation,to do with design anymore. If instead it has function you can save millions on conventional ATL advertising.as well, as shows off an outstanding design, success Here again are the main ingredients that I consi-is just around the corner. der necessary to succeed with a CTP strategy: The most important lesson I drew from thefocus on the product design in the above example - Importance of an exact briefing: Firstly analyse yourwas that you have to be very precise in your briefing markets and find out who your main brand ambassadorsin order to develop a consistant brand strategy. are (clients, retailers, distributors?). Listen to their needs It should not be the designer who creates before you even start creating a new producta product that he wants but is should be a team of - Choose at least two good industrial designers that knowmarket researchers from your company telling the material properties as well as modern production techno-designer what the market wants and then accordingly logies. This way you do not risk to be dependant on justthe designer will use his talent to interpret your brie- one designer.fing. - Do not be afraid to spend money on the design to Through the different looks, its innovative achieve as many USP’s for your product as possible. Youmechanical functions and its coherent corporate can recover this investment entirely through the premiumidentity Ikepod watches became known in the mar- price of your product.kets within a few months. We would never have been - Develop a coherent brand corporate identity and aable to pay for all the free editorials and PR that we consistent product strategy. Spend money on creatingreceived. The so called brand ambassadors (movie or improving your CI (logo, graphics, catalogues, Internetstars, pop stars, etc..) bought the product at our retai- site).lers without us even being aware. We did not have topay them anything for endorsing our product. I even You will in a short time see that the investment is muchrecall to have received a phone call from Elton John’s less than in conventional ATL advertising and the resultsmanager asking me to allow them to use our watches will be more effective. By communicating through productfor the conventional ATL - TV advertising of the Royal you reinforce your brand and you create a lasting value.Mail and they did buy watches for this! Suddenly the Some of your products may even write “design-history”Ikepod brand started to become a trendsetter. In the and generations later people will still remember yourwatch industry there are a few big companies that brand because of them.
ATL - BTL - and now........... CTPYears ago Jackson Five played with figures and letters inthe song ABC, “ABC, 123, baby, you and me!” In an easyway they communicated the way to go: After A comes Band after B comes C. The discussion on how to communicate is in-tense. Disputes whether to use ATL and/or BTL instru-ments for a communication campaign. ATL stands forAbove-The-Line using mass media such as TV-spots,print-ads and radio campaigns. Today ATL has most partof the marketing investments even if it is emotionallypoor. BTL or Below-the-Line is the umbrella term of morecreative methods such as PR, events and word-of-mouth.A common denominator for ATL is the PUSH strategy. Asa consumer you can not really decide if you would like tobe the addressee or not. Because it is everywhere. We doubt that this is a smart strategy when weare in the middle of a strong and fast shift from marketers Apple iPod Shuffleto consumers. Today consumers are in command. Theyare sick and tired of all the buzz out there. They want tofind relevant information by themselves. And this from and go directly to C, the thrustworthy core. Try Communi-credible sources (advertising does not count as one any cation Through Product (CTP), you´ll like it.longer…). It is given nowdays that it is the consumers that“owns” your brand. At least if you think that the perception The drop metaphorof your brand in the mind of the target group is para-mount. If we hold this as true, isn’t it strange that so many A drop is our metaphor for Communication Throughcompanies do not still listen to the desideratum of their Product (CTP). Like rings on the water the product (andcustomers? brand) reaches the consumers. The experience is strong- We recommend a PULL-strategy that attracts the er closer to the center and fades the further out you get.customer and pulls him/her to the product or service like The closer to the core, the more trustworthya fly to sugar. PULL is driven by credibility. One (and the results you will achieve in your communication efforts.best?) example of a credible PULL strategy is a marke- By using Communication Through Product (CTP) you willting and communication strategy we have named Com- be able to work inside out with the necessary humanisticmunication Through Product (CTP). ingredients in focus, not just putting some varnish on the Communication Through Product (CTP) is about surface.using your budget for design and innovation instead of The closer to the core you will get, the bigger thetrying to hide poor products behind loads of expensive sensory experiences are. ATL makes you see and hear,advertising. It´s about letting the products communicate BTL tickles a little bit more but Communication Throughby themselves instead of building up costly communi- Product (CTP) fully evokes taste, touch and smell ascation around them and to make the products their own well. You will get a subconscious and intuitive feeling ofambassadors by adding elements that communicate something real and credible, your sixth sense! Communi-the identity of the brand which at the samt time will pull cation Through Product (CTP) is actually the best sensorypeople to them. marketing strategy there is. What makes a product communicate by itself By starting the communication with the productsthen? We think it has to do about delivering experiences themselves, or in their logical nearness, they will from theand creating a sense of belonging. By letting the products beginning have a PULL-factor incorporated that attractssolve problems, provide benefits and evoke meaning. They consumers without a major advertising campaign. Thiswill be able to achieve this by offering sensory stimulation because the product itself substantively is the best mes-and by providing cognitive adventures. senger you can get. Be sensitive to what the consumer thinks and Design, innovation and creativity are the keyfeels. Create attraction and they will voluntarily seek, find ingredients that builds the unique DNA of Communicationand accept your products. We say - be proactive, make a Through Product (CTP). Communication Through Productdifference and take control of the situation. Skip A and B (CTP) is marketing 2.0.
Save and earn moneyby using CTPToday, in general, the me-dia budget compared to theinvestment in design and inno-vation is divided approximatelylike this: 70 percent ATL, 25percent BTL and 5 percentdesign and innovation. Howis it possible to defend a stra-tegy that “waste” nearly 3/4on questionable advertising? We mean that the to-tal amount spent will decreasewhen investing more resour-ces on design and innovation.Because by boosting the core,less money will be needed forATL and/or in some senseBTL activities (even if webelieve that BTL is a a goodtransmitter because it is inter-personal and experience rela-ted). The estimated figures inthe models below tells us thatyou could save something like20 percent of spending, andwhich is as important, it willincrease the credibility levelhugely. Our examples exclu-des production, distributionand administration costs etc.We are only counting the costof communication plus designand innovation. Our figuresare just roughly presentedand should be seen as anexperimental and alternativethinking. But if this is the rea-lity, can you afford not goingfor a ride in the CredibilityLoop? And best of all, be ableto make a big difference?
Our windup Our calendar- in six logical steps To not miss events in the near future concerning design, brand strategy, creative communication, trend forecast1. Advertising has lost its credibility. and future visions. Please visit http://www.davidreport.com for a complete2. Everybody are talking about how to communicate in a event calendar.new way. Making sense of the future3. We say - go to the very core - the product or service November 22-24 in Lucerne, Switzerland.and communicate through it. It´s the best way to build acredible brand. Mobility and Ubiquity November 21st in Montreal, Canada.4. Use design, creativity and innovation to make productsand services relevant enough to attract the target group St Etienne Biennaleand they will find them voluntarily. November 22 - December 3 in St Etienne, France.5. You will save money because Communication Through Marketing 3Product (CTP) is the most-cost-effective communication November 28-December 1 in Utrecht, Netherlands.solution there is! This really attracts business men/wo-men! Innovation Playground November 30 in The Hague,Netherlands.6. As a bonus you will be able to make a difference. Thisreally attracts the consumers nowdays! Youth Power 2006 December 5-6 in San Diego, USA.There it is, our supermodel, that hopefully will makebusiness executives think twice before buying another Art Basel Miami Beachexpensive advertising campaign. Communication Through December 7-10 in Miami Beach, USA.Product (CTP) is a model to use to get more attention,more sales and more credibility for less investment. Le Web 3Sounds to good to be true! December 11-12 in Paris, France.David Report Team About David Report BulletinEditor-in-chief: The David Report bulletin is a visionary trend report with aDavid Carlson humanistic approach in the intersection of design, innova- tion and brand communication. Here you can read what´sContributing Editor: going on in the future, and get ideas on how to manageClaes Foxerus it… By challenging conventional thinking we are always trying to make a difference. Four issues a year.Writers:Oliver Ike SponsorMichael Ekeblad Sponsor David Report and you bring your message toOlivier Rohrbach an influential audience in a global lifestyle communityYoichi Nakamuta including designers, marketers, opinion-makers, industry executives and creative entrepreneurs.Address David Report is a creative arena where the sponsor con-David Report tributes with sophisticated and highly relevant material.Strandbadsvägen 2SE-239 42 Falsterbo Our readers are smart and proficient. The profile of theSweden sponsor always has to match the profile of the email@example.com To be able to make an impression only one sponsor are invited each quarter to participate on our web page and inDisclaimer the current David Report bulletin issue. Your informationEverything written in David Report is free to use, but will be permanently present in that issue, of course.please say who mentioned it first. However, all and eve-rything is at your own risk. David Report has no respon- For more information about sponsorship opportunities,sibility for what, how, when etc. something in the report is please send an e-mail at firstname.lastname@example.org and/or actions surrounded.