1. Staying Ahead
of Your Napster
John Greene
Kellogg School of Management
May 16, 2014

2. Hello.

4. I believe the future of marketing
innovation can be inspired by the re-
invention of the music industry.

5. You want me to apply lessons
learned from the music industry?!?

6. Sometimes, re-invention
happens only when
there is no other option.

7. “For years, the record labels had a
business model that was consistent
and single-minded: (1) bundle
together a dozen songs on a CD, (2)
ship the discs out to retailers, and (3)
collect money. “

8. And then, suddenly, music could no
longer be sold like cereal.

10. The scary news:
Every industry
has a Napster.

11. Products in any
industry can be
quickly and
devastatingly
Napster-ed.

12. The better news:
You can be the
Napster.

13. Through a decade of
collapse, innovators within
the music industry have
had to re-invent their
approach to everything.

14. What do we
really sell?
Who are our true
competitors?
Who are our
customers?
What is our
media approach?
And the re-invention in the music
industry illuminates new ways of
looking at four fundamental
questions that can help any industry
stay ahead of their Napster.

15. #1: What do we
really sell?

16. “We rent DVDs.”

17. “We sell film.”

18. “We sell newspapers.”

19. Products in any
industry can be
quickly and
devastatingly
Napster-ed.

20. “Customers don’t buy
hammers. They buy a
beautifully hung picture
on their wall.”

21. $0.05 $5.00

22. Shift #1:
Products Experiences

23. - Guy Oseary,
Madonna’s manager
“In the past, people would tour to
sell their albums; today they put
out albums to promote their tours.
The pendulum has swung.”

24. It turns out that a hefty number of “MDNA” albums
weren’t sold the usual way.
For every ticket sold online to Madonna’s upcoming
shows, purchasers automatically receive a copy of
“MDNA.” They get a link to a free purchase on
ITunes, or they can send in their mailing address
for a physical CD. It doesn’t matter if the concert
ticket is $52 or $350.

25. - John Philip Sousa, 1906
"I foresee a marked
deterioration in American
music and musical taste, an
interruption in the musical
development of the country,
and a host of other injuries to
music in its artistic
manifestations, by virtue -- or
rather by vice -- of the
multiplication of the various
music-reproducing
machines."... The player piano
and the gramophone strip life
from real, human, soulful live
performances.”
In partnership with McSweeny's,
Beck's forthcoming Song
Reader will be "an experiment
in what the album can be at the
end of 2012," there will be no
CD, no LP, no mp3. Just the
sheet music, ready to be
performed by anyone willing.

26. Designing contemporary
brand experiences
Design the molecule that
connects all of the experiences
that comprise your brand– from
the customer’s perspective.

30. The Challenge:
Only 1 in 3 young adults
between the ages 21-27
have ever tasted
Budweiser.

31. But is
beer
what we
are really
selling?

32. Or are we in the
entertainment
business?

34. Celebrating the New Americana that is
being created each and every day.
“Makers of Tomorrow”
TV Spot Premieres During
Olympics Opening Ceremony
Print Ads
Made In Parties
in Local Markets
Teaser Video on
Life + Times
On-Premise Promotion
Instagram Flag Mosaic
30 Artists Perform
on 4 Stages
Project 12
Local Brewery Feature
Made In America
Merchandise
Live Mural Painting
R/W/B Project
for Young Artists
Mobile App
Live FanCam
Over 1.3 Million Festival
Live Streams
MadeInAmericaFest.com
Over 600 Million Earned
PR Impressions
Commemorative
Budweiser Bottles
Forthcoming Documentary
from Ron Howard
Proceeds to the
United Way

35. “MAKERS OF TOMORROW” TVC
1500% increase in Budweiser Social Conversation
TOTAL FESTIVAL ATTENDANCE
90,000+
TOTAL LIVE STREAMS
1,310,256 (Goal was 500,000)
TOTAL MEDIA IMPRESSIONS
Over 2 Billion
NEW FACEBOOK FANS
Over 1.19 Million (238% above goal)
UNITED WAY DONATION
$700,000 to Local Philadelphia Chapter
Celebrating the New Americana that is
being created each and every day.

36. Start with your mission.
From products to
experiences
Design the molecule that includes
everything your customers experience;
not just those that you directly create/sell.
Identify the gaps; and design for them.

37. #2: Who are our
true competitors?

38. Business breeds
us to be fighters.

39. Direct Competitors
Original iPhone Launch

40. But often it’s not the
competitor right in
front of us that we
should be most
worried about.

41. Experiential Competitors

42. Experiential Competitors

43. Customer expectations are
becoming increasingly liquid
across every category.

44. Perceptual Competitors

48. Shift #2:
Static
Expectations
Liquid
Expectations

49. The Age of Liquid
Expectations
Direct They sell products that compete
with ours.
Experiential
They sell experiences that
replace ours.
Perceptual
They change the expectations our
customers have for us.

50. #3: Who are our
customers?

51. Customers:
Prices.
Purchasers.
Transactions.

52. Shift #3:
Customers Investors

53. Investors don’t see prices;
they see investments.

54. “Myth 1: People today just
want stuff for free and
won't pay. Yet, here, they
not only paid, but the
average amount paid was a
hell of a lot more than a
typical album. If you're
open, human, and awesome
and you give people a real
reason to buy, they will.”
- Techdirt
Investors don’t see prices;
they see investments.

55. Investors think of themselves as partners,
not consumers.

56. “it effectively heralds the arrival of the world's
first bespoke album. Ten songs from a choice of
20 for £7.50 – no more, no less – but what those
songs are, and the order in which they run, is
down to you.”
Investors think of themselves as partners,
not consumers.

57. Investors don’t seek transactions; they are
drawn to experiences.

58. “No word on whether this new J. Cole track
is finished or not nor whether it’ll make his
debut, but it’s dope nonetheless. I’m going
to post it for download because the empty
minute near the end of the song gives me a
feeling it’s unfinished. As for the rest of
“Cheer Up,” Jermaine gets his singing on
and everything. Both catchy and conscious,
I don’t see how anyone could hate on this
man right now…”
J. Cole’s album debuted at No. 1 and
sold 217,000 copies in its first week.
Investors don’t seek transactions; they are
drawn to experiences.

59. Customers Investors
Prices.
Purchasers.
Transactions.
Investments.
Partners.
Experiences.
From customers to
investors

60. “Million sold
before the album
drop.”
#4: What is our
media approach?

62. 24 million
Commercial views on YouTube from June 25 –
July 5
1.2 million1.2 million copies of the app were downloaded
AFTER MIDNIGHT on July 4
16 millionViewers of the initial spectacle on June 16
3.5 billionTwitter impressions on June 16

64. 828,773 copies worldwide in its first three days
(fastest selling in iTunes history)

65. “The
album
will
be
put
on
listening
display
in
renowned
galleries,
museums,
venues
and
exhibi9on
spaces
around
the
world
…
before
it
disappears
into
the
private
collec9on
of
a
buyer.
The
public
will
know
that
what
they
will
hear
will
be
a
once
in
a
life
9me
experience.”

66. Youtube's live stream of the event racked up over 8 million viewers --
setting a new record for the most concurrent live streams (the previous
record for a single Web video service was 500,000 concurrent streams)
Stratos conversation generated more than 61,634,000 likely impressions
across social channels.

67. Marketing
Plan
Shift #4:
Conversation
Plan
Media Flights News Cycles
Shown Seen
Saturation Surprise

69. The Challenge:
Get people to value
insurance agents in a world
of 15 minutes and 15%.

70. The Conversation:

71. Staying ahead of
Your Napster
What do we
really sell?
Products Experiences
Who are our true
competitors?
Static
Expectations
Liquid
Expectations
Who are our
customers?
Customers Investors
What is our
media approach?
Marketing
plan
Conversation
plan

72. Thank you.
JohnGreene60614@gmail.com
http://thennowsoon.wordpress.com