Competitive advantage in a networked world


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Overview of how companies can prosper in the new digitally networked ecology.

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  • The bad news - I’m not an expert The good news is - neither are you IBM study 1700 CMOs overwhelmed 26% track blogs, 40% track any online comms, 82% rely on traditional market research. Struggling to prove ROI, but 82% planned to increase use in next 3-5 years
  • Worth knowing where we have been as marketers - and where customers have been SIMPLE Pre-industrial revolution. SUBSISTENCE. Any excess traded. PRODUCTION US civil war to 1920s - competitive advantage - make it cheaper - Henry Ford / assembly line / Frederick Taylor Scientific theory of mgt SALES - 1920s- WW2 - depression reduced disposable income - manufacturing surplus - focus on sales - direct salesforce, ads MARKETING DEPT - post-war: satisfying consumer demand / meeting customer needs MARKETING COMPANY - everything oriented around customer needs - from R&D, research, product devt, pricing, distribution RELATIONSHIP MARKETING - insight that existing customers more profitable / notion of long-term customer value
  • Early computer code - ASCII. What powers text on computers. Allowed for the birth of internet Not visually compelling - but did something incredible
  • Created space where the human voice could be heard on global scale Conversations very slow - scrolling green text Early days of internet - flame wars
  • Ultimately led to brand new context for our brands. Instead of being at arm’s length and controlling which messages went out (TV, ads) Part of the ecosystem, alongside customers and their media. Everything is subject to question, revision, re-implementation, parody: - whether philosophy, recipe for home-made burgers, or God Forbid - an ad
  • New kind of marketplace - which ironically looks like the bazaars of old More honest kind of commerce with consumer participation Perhaps no surprise that ebay and facebook just announced social commerce initiative
  • Facebook over 800m users. 200m plus tweets per day - 90% of data today are unstructured Hard to analyse IBM - spent $14bn on acquiring software companies that analyse this HP - Autonomy - $12bn
  • It’s common sense
  • Gaga - 14 m twitter followers. Only one brand in top 20 in social media - Coke Brands tend to sell. People curate, share, edit, endorse, recommend, and most importantly, enthuse. That’s why other people like them
  • So you can brands be more human - therefore more attractive? First way is to recognise and address a real human need
  • UKTV is a UK broadcaster that shows a lot of repeats of BBC programmes. When new team joined, ratings were stable, but top awareness was 20% - and brands were boring. All channel named by genre - Undertook huge research programme to find out how people really viewed the world, and created a bunch of new brands to house our programmes: - new tech, fragmentation of family - general ent channel called Watch, for sharing - miserable recessionary period - dedicated comedy channel Gold - crime dram channel called Alibi that played to people’s inner sleuth - channel for men, named after one of their friends - channel called Blighty all about Britian that would restore waning national pride - a feisty channel for youg women that made them say ‘Really’ - a wildlife channel that brightened up everyday urban life with a burst of cnatural colour - a nostalgic channel called Yesterday that told great stories from the past, factual and fictional - and finally a channel called Home - that moved away from imagery of unattainable show homes and presented home life in a way that viewers could recognise - lived in, if not won our
  • Viewing growth > 10% last 3 years Rev growth > 10% Profit growth >17%
  • Men grew up, left university, took on responsibility at home and work - needed surrogate PUB to hang out with. We knew the successful programmes on UKTVG2 were quizcoms - ‘witty banter’ (CLICK) Created ‘the home of witty banter’ and called it Dave - because ‘Everybody has a mate called dave’ and this channel was designed to be like a witty friend to our male audience. ROLL VT - play ident and 60 second launch promo
  • Dave - 2% to 98% SA 3.5x previous audience £25m extra ad revenue in yr 1
  • Umbro did an ad telling everyone that they were all about football Through their ‘pass it on’ viral - Nike went one better and SHOWED that they were all about football
  • Here’s a brand that is saying, not doing. BA don’t have an advertising problem. They have a staff problem. CEO - ‘issues with the brand so we’re doing some marketing to address that’. Money better spent incentivising staff ‘to fly, to serve’ and ONLY THEN shouting about it Feedback in social media is that this is a meaningless gesture and wont change the experience of flying BA
  • ‘ Birds of a feather flock together’ Stanley Milgram – 1970s ‘A small world’ project Average user has 130 friends 8 friend requests per month Clicks LIKE 9 times Writes 25 comments Becomes a fan of 2 pages Invited to 3 events Member of 12 groups Spends 55 mins per day on facebook
  • Sphere of influence Use number of followers - but also peerindex and to see who is most influential David Attenborough - loads of followers and huge influence Led us to idea to do live Q&A with him. Cost £80k - 1.6m tweets - huge reach
  • Not enough to start conversation and go quiet. People want to chat - and if you’re not there, they’ll talk (badly) about you behind your back.
  • Eden team responding to a viewer’s request to know what music is used on promo
  • Big problem with recent blackberry outage - poor communication Page shows Piers Morgan - UK / US celebrity with >1m followers, moaning
  • Social media allows cosnumers to ‘wear’ your brand on their pages. They don’t want to be associated with nasty companies with profit motive. Do nice stuff, people will be proud to be seen with you.
  • For example Tom’s makes simple shoes. They’re quite like a lot of other shoes. But only Tom’s gives a pair to someone in the developing world every time you buy a pair And only Tom’s has a base of loyal followers who spread the word for mutual good
  • Even if you can’t get it right, you can at least empathise with customer.
  • Sainsbury’s sharing the pain of a customer who has had eggs delivered cracked Trying to find out which store so they can help
  • Sainsbury’s brand match - checks that customers aren’t buying products more expensively than they can get them elsewhere and refunds the difference
  • Only so much you can talk about vodka. But apetite for talking about nights out is infinite.
  • This bespoke facebook page, created to market series three of our top US crime drama, Castle, shows how creating shareability is central to cost-effective marketing.
  • . From its humble beginnings as a stall at a small music festival in 1998, Innocent has grown into an international brand with a turnover of £76 million. Developing and sustaining a creative culture among its entire workforce has enabled Innocent Drinks to remain true to its core brand values throughout an extended period of growth and expansion. In 1998, three men decided to try out a new business venture by selling pure fruit smoothies at a small music festival. They provided two dustbins for customers to deposit their empty cups, one labelled ‘yes’ the other ‘no’. The question on a sign above the bins read ‘should we give up our jobs to make these smoothies?’. By the end of the day, the ‘yes’ bin was overflowing, and Innocent Drinks became a reality. Starting a business Innocent was the brainchild of professionals Richard Reed, Jon Wright and Adam Balon, who identified a need among fellow workers for an easy way to make each day a bit healthier. Innocent was formed with the very simple idea that every product contains 100 per cent pure, fresh ingredients and no fruit concentrates. But this simplicity belies a more fully formed business strategy, best described in the founders’ profile documents: ‘That with a non-corporate attitude, a sincere commitment to the cause and creative thinking, it is possible to create a fast growing company that acts responsibly.’ Following an initial investment in £500 worth of fruit for their first stall, the trio drew on help from friends, family and colleagues to secure a further £250,000 from a venture capitalist. With limited resources Innocent couldn’t afford to hire external agencies to design and develop the company’s look and feel, employing instead one of their friends, Dan Germain, as Head of Creative. ‘We didn’t have more design knowledge than any group of city dwellers exposed to design in their everyday lives,’ he says. ‘Our user testing was done on people we knew and we’d email our friends with packaging designs.’ Instinct played a big part in the development of the Innocent logo and packaging. ‘We tried to make everything say instantly that the product is fun and good for you,’ explains Germain. ‘We didn’t have any sophisticated marketing plan, we just wanted to like the way it looked and tasted and for it to stand out on café shelves.’ After consultation with Innocent’s core target market – young, urban professionals (i.e., the group’s friends) – the apple with halo logo was chosen as the one that most clearly illustrated Innocent’s core values. From the outset, Innocent has delighted its customers with its straightforward, almost irreverent approach to business, using a simple, down-to-earth communications technique that mirrors the no-nonsense honesty of the Innocent brand and its products. Unusually, this approach is also used with retailers, who receive regular communications from Innocent, such as a newsletter that combines product information with fun stories. In this way, Innocent has developed a huge network of customers and partners who Germain describes as ‘friends’ (customers being ‘simply friends who we haven’t met yet’). Crucial to the company’s success to date has been its employment strategy, striving to employ experts in every relevant field from ethical procurement to web design. Last year, Innocent was named as top employer by the Guardian newspaper. In the same year, the company recorded a turnover of £38 million – proof, if proof were necessary, that a commitment to company culture and wholesome brand values really can lead to outstanding commercial success. ‘ If you have truly inspiring and motivated people around you, you can do anything,’ says Germain. ‘We have an ambition to be Europe’s most talent-rich company, and as long as we keep trying to achieve that, we’ll be ok.’ Innocent recent awards Business XL10 – Company of the Year E&Y Young Entrepreneur of the Year National Business Awards – Small/Medium Business of the Year Growing Business Awards – Most Promising New Company Orange Small Business of the Year Orange Marketing Campaign of the Year Orange Innovative Company of the Year Best Investors in People – National Business Awards Innovative Company of the Year – Growing Business Awards
  • Competitive advantage in a networked world

    1. 1. Securing competitive advantage in a networked world
    2. 3. It used to be so simple <ul><li>The Simple Trade Era </li></ul><ul><li>The Production Era </li></ul><ul><li>The Sales Era </li></ul><ul><li>The Marketing Department Era </li></ul><ul><li>The Marketing Company Era </li></ul><ul><li>The Relationship Marketing Era </li></ul>
    3. 6. Your brand
    4. 8. Structured to unstructured data
    5. 9. Winning in the digital era
    6. 10. THE WORLD’S biggest brands (in social media) HUMANITY
    7. 11. Born of real, human insight
    8. 14. Designed by humans, for humans
    9. 17. BEING ‘ people that do ’ NOT JUST brands that tell
    10. 18. UMBRO = a brand that says NIKE – a brand that DOES
    11. 20. SEEK OUT like minded people - AND JOIN IN
    12. 22. OPEN and maintain THE DIALOGUE
    13. 24. Especially when things go wrong
    14. 25. BE nice
    15. 27. BE empathetic
    16. 29. BE useful
    17. 31. BE relevant
    18. 33. HAVE A SENSE OF humour
    19. 34.
    21. 36. Cross-promotion to other programmes Opportunity to share with average 132 friends each Drive ATV with reminders Competitions drive reach and data capture Opportunity to sample and share content (at no cost)
    22. 37. TRACK IT BACK TO what matters TO YOUR BUSINESS
    23. 39. BECAUSE it pays
    24. 40. 2 2
    25. 41. Murdoch impacts: 35,226,518 = 8,806,630 ABC1 men impacts (25%) @ total cost of £6500 = CPT 6500/8806 = £0.73 Scream impacts: 164,746,210 = 41,865,553 ABC1 men impacts (25%) @ total cost of £XXXX = CPT XXX/ 41,865 = PAID EARNED Premium allows for targeting by interest
    26. 42. DO WHAT YOU’VE ALWAYS DONE ...
    27. 43. BE human
    28. 44. THANKS FOR LISTENING [email_address]