Myers offer service that is worse than few. It has reduced service standards to cut costs - and in doing so, they have destroyed their product. Alas Myer is not alone - anymore than its poor financial results are. I research, develop, and advise on implementing strategies to identify and leverage opportunities, and eliminate complex problems. As an advisor, company director, advisory board member and mentor, I work with organisations of all shapes and sizes to drive the consumer and business behaviour that maximises performance with strategies that minimise costs. Eliminating marketing waste marketing s a passion. Over 30 years, I have learned that too many organisations spend too much on initiatives that are not cost-efficient. My primary expertise includes: • Research – including customer insights and behavioural economics. • Brand – including defining, creating and communicating a brand. • Marketing – addressing -product, experience, pricing, and distribution. • Communication – addressing both traditional and digital channels. • Business development – systematic B2B business generation. I am passionate about identifying and implementing ethical strategies – driven by objective, critical and lateral thinking. ESG can and should be more than an acronym used in annual reports.

1. Stop destroying your
product to increase
sales – it is stupid!
CONSUMER INSIGHTS

2. • If you have recently been into a Myer or David Jones store,
you will have noticed the lack of staff on the floor.
• Some stores seem to have reduced staff numbers to one or
two per floor.
• How STUPID is that?
• How stupid is it for a store that offers no clear competitive
advantage in terms of product and price – to also offer
substandard service?
• Service - once seen as a competitive advantage of a
department store - is now seen as a cost.

3. • If you have read a daily newspaper like the West Australian
or the Herald Sun recently, you will have noticed the
complete lack of quality journalism.
• Indeed, given that these newspapers have sacked most of
their journalists and editors how could the content be
anything other than substandard.
• How STUPID is that?
• These newspapers are trying to hold onto readers while
sacking the people that create the content that attracts
readers.

4. • I am not suggesting these businesses should not reduce
costs when revenues are falling.
• I am rather suggesting that these businesses should not be
cutting the costs that damage the product – the main
reason for shopping or reading.
• Scott Galloway, a professor of marketing at NYU, once
asked an audience ‘What do Facebook, Apple, Amazon and
Google all have in common’?
• After a period of silence Galloway answered his own
question – ‘A fucking great product’.

5. • Every great marketing campaign starts with a great
product.
• Every truly cost-effective campaign starts with a great
product.
• I stopped shopping at Myer because the service is non-
existent and I stopped reading the West Australian
because journalism is non-existent.
• And - I am not alone.
• Business that erode the product by cutting costs are

6. • The point is – the boards and management of these
businesses are paid well to make good decisions and
reducing costs in a way that causes the product to be less
attractive – is a stupid decision.
• It might just be that developing a better product with great
service or great content – stem the loss of customers –
while substantially improving the product offering might
increase loyalty and word of mouth – this reducing the
investment required on advertising and other forms of
promotion.
• But all bean counters seem to see is short term savings.

7. To find out more - visit...
www.djohncarlsonesq.com
Or email me at...
johnc@djohncarlsonesq.com
I’m John Carlson – Thanks for listening

8. Stop guessing and
start understanding
what consumers are
buying
CONSUMER INSIGHTS

9. • The Coca Cola Company launched New Coke on April 23, 1985.
• The rationale was that – in blind taste tests Pepsi was
consistently preferred to Coca Cola – and it still is.
• Despite burning millions trying to advertise their way to
success – Coca Cola – discontinued New Coke on July 10, 2002
• In the wash up – not only had New Coke returned poor sales,
the launch had created the perception that Pepsi was winning
the cola wars.
• Some have suggest this was the biggest marketing failure in
history.

10. • In analysing this failure, it’s interesting to note that - while
taste tests consistently find Pepsi to be preferred to Coke –
this has never been reflected in sales.
• Coke has always outsold Pepsi – with Coke at 51% of
carbonated drinks to Pepsi at 23% of carbonated drinks.
• Subsequent research has found that the target market for
Coke, while considering taste important was not buying Coke
because of its taste,
• Indeed, the market was buying- or at least buying into - the
lifestyle they associated with Coke!

11. • The market was buying into slogans like:
o Watch the wave
oYou can’t beat that feeling
oYou can’t beat the real thing and
oThe official soft drink of summer
• The market was buying into the fit young men and women on
beaches, at parties and living life to the full.
• Rather than flavour, the market was buying into the Coke
brand – and all that it stands for after 100 years.

12. •INSIGHTS
1. Before marketing anything, it is important to
know what the market is buying
2. It is often difficult to know what the consumer is
buying
3. Very often consumers are buying the brand ahead of
the product.

13. • RECOMMENDATIONS
1. Understand what your customer is buying
2. Use branding to manage what your
customer is buying.
3. If you are not sure what your customer is
buying – don’t make the mistake Coke did!

14. To find out more - visit...
www.djohncarlsonesq.com
Or email me at...
johnc@djohncarlsonesq.com
I’m John Carlson – Thanks for listening