DDB Strategy

Six Opportunities for Enhancing your Business and Brand

2009-06-05T15:23:57Z

Many businesses regardless of industry now emulate the practices of professional services. The business reasons for this include enhancing differentiation and establishing consultative revenue streams. This paper covers six challenges in professional services branding and marketing that can be turned to opportunities by marketers willing to experiment, invest and show patience.

Jeff Swystun, Chief Communications Officer, DDB Worldwide

Oprah’s Consumer Influence

2009-05-19T13:41:15Z

Take a look at James Lou, EVP and U.S. Chief Strategist weighing in on Oprah’s consumer influence on an upcoming CNBC special The Oprah Effect airing May 28, 2009: Oprah’s Consumer Influence

Jeff Swystun, Chief Communications Officer, DDB Worldwide

Distractions are Hot in a Recession

2009-05-04T18:31:04Z

A day does not go by without a raft of articles on how people are adjusting (correcting) their purchase behavior and decisions in this recession. Big purchases are on hold or deeply scrutinized. We are vacationing at home, driving less, and connecting more with family. Needs and wants are now extremely well defined. However, some behavior is hard to eradicate. We still need our downtime (in a downturn). That is why some businesses have historically performed well in poor economic conditions.
Pet Observation Porthole If you read our paper on recession marketing, you will see that people tend to flock to movies, alcohol and tobacco, and in this particular recession chocolate is hugely popular (I forecast huge strains on healthcare in the coming years). But there is another trend seemingly unique to this current climate, what I call, “comfort hard goods”. Just look at the performance of the Snuggie (or backward robe or ripped sleeping bag). Everyone has had fun making fun of it but it is selling. It represents comfort, nesting, cocooning and relaxation. Sure it is using advertising reminiscent of Phil Kives’ K-Tel International (the originator of the info-commercial from Winnipeg) but it works.
Edge Baking Pan A recent article in the New York Times by Sarah Kershaw on SkyMall, the catalogue in the seat pocket on many US airlines, does a great job in further illustrating this trend. SkyMall has a circulation of 20 million, features over 2,000 products, and reaches 688 million bored travelers annually. “If there is any piece of writing that defines our culture, I submit it’s the SkyMall catalog,” the author Bill McKibben wrote in a 2006 essay in Orion magazine. “To browse its pages is to understand the essential secret of American consumer life: That we’ve officially run out not only of things we need, but even of things we might plausibly desire.”
Keep Your Distance Bug Vacuum Consider some of the product offering: the Pet Observation Porthole ($29.95), a clear plastic dome mounted in a fence, the Keep Your Distance Bug Vacuum ($49.95), which can suction up the creepy crawlies from a relatively safe distance, and the Edge Baking Pan so the whole brownie is soft and delicious. The recession has had influence on the SkyMall line-up as Ms. Kershaw’s article points out, “With fewer people flying or spending money, the economic downturn may have tilted the catalog’s sales slightly more toward utilitarian items — the No. 1 best seller this year is a 10-by-22-foot square of polyvinyl floor covering for the garage ($359), and the first truly frivolous item, the Giant Cupcake Pan, comes in at No. 17.”
Christine A. Aguilera of SkyMall Christina A. Aguilera, SkyMall’s President is quoted in the article, “Even when times are tough, I think Americans are still optimistic about the future and interested in products that can make their lives a little easier. There is no secret category or line of goods that are recession-proof. What is recession resistant is innovation.” Interestingly, Sky Mall is into its own marketing innovation having hired an official corporate Twitterer this January. According to Ms. Aguilera, the tweets generated enough interest in the Wonder Woman Cuff bracelet ($24.95) that sales of the item more than doubled – a questionable purchase in a recession but then again it may allow women to fend off negative economic forces. The New York Times article quotes Kit Yarrow, a professor of psychology and marketing at Golden Gate University, “Their audience is really looking for relief, not just something to alleviate boredom, but also a little bit of fantasy,” she said. “If you look at the products in there, they are lifestyle and gadget-oriented, both the sort of thing that transports you in a way.”
Zombie of Montclaire Moors I am a long time business traveler and have constantly shook my head when I perused SkyMall. Initially when I pick it up I am excited and expect that I will be placing a significant order. By the time we touchdown, rationale behavior has won out (I have never purchased from SkyMall but Brookstone has got some business from me). I recognize the need for escaping the day-to-day and that some purchases may have either fleeting or lasting benefits. It will be of ongoing interest to document what people choose to buy in this recession. But I must confess on my last flight on American Airlines, I almost made my first Sky Mall purchase: the Zombie of Montclaire Moors, at $89.95, a ghoulish,13-pound lawn sculpture. However, it was not the recession that ultimately stopped me, it was anticipating the reaction of my wife. All photos from New York Times article Jeff Swystun, Chief Communications Officer, DDB Worldwide

Buying Behavior

2009-03-11T14:34:26Z

This economic downturn has been sudden, gone deeper and may last longer than first forecast. In terms of your own buying behavior, what are the primary criteria you now use to complete a purchase? How does this differ from a year ago and how has it affected your life? Jeff Swystun, Chief Communications Officer, DDB Worldwide

In a Word

2009-01-26T15:45:04Z

I am embarking on a new paper that is to explore the power of language in engaging consumers with a brand. I would love any examples, information and thoughts people have on the subject. Just think of the longevity of taglines like “Just Do It” or phrases that enter our social consciousness, “Think global, act local” which then became “Glocal”. There is some controversy over who should be credited with the latter example. This is all fascinating stuff and we must never lose sight of how words and the dialogue they inform can influence and move us. Post your comments and thoughts! Jeff Swystun, Chief Communications Officer, DDB Worldwide

OBAMA - from dream to reality

2009-01-22T13:53:39Z

In the early hours of this morning Shanghai time – I watched as Barack Obama was sworn in as the 44th President of the United States of America. I have followed his progress with keen interest over the last 18 months. Taking his dream of being the first African American President of the US, and making it a reality is nothing short of incredible. And the way he went about it is even more impressive. He was named “Best Marketer of the Year 2008” by Advertising Age magazine. And this is what I would like to focus on today. Obama is an example for all of us in the advertising industry. You can just imagine the Brief: “Get an African American elected to the White House.” So just how did he go about it? Firstly - his message to the people was simple and consistent – Obama is Change. This conviction was at the essence of the campaign. The campaign’s creativity lies in how he mobilized the digital world to his advantage, in a way that no one has ever done before. His message echoes the views of Marshall McLuhan, who is seen as the first prophet of the electronic age that “the medium is the message”. Obama’s campaign was all about change: change in approaching the ‘consumer’ (voter) and the ‘trade’ (campaign contributions), and also change in distribution: micro vs wholesale. No campaign has been more aggressive in tapping into social networks – Facebook, MySpace, Twitter, YouTube, you name it, Barack was there. Most importantly the campaign was flexible and constantly adapted to a world where communication channels are always in flux. This is “the Swarm theory” in action showing us how marketing can harness the power of modern human communities and the power of influence. It is people grouping together and moving together without being told what to do. He got the people behind him from the bottom up. These “brand” advocates were an integral part in building his success. He leveraged the financial power of thousands of small donors via the internet; people could give just a few dollars, or a few thousand. He realized that donating online is cheap and quick, and far less intimidating than writing a cheque. Though the majority of contributions were made online and were for US$100 or less, adding it all up was the big difference. And most important, via this he gave people a voice and involvement, with a one-2-one feeling. This is crucial especially when you position yourself as representing ‘the voice of the people’. Mainstream media followed this innovative path too. For example CNN teamed up with Facebook so that people could watch the inauguration live whilst interacting with their Facebook community and friends. Over 21 million people watched this way! This demonstrates brand involvement in 3 levels: Obama, CNN and Facebook – which is a win/win situation and shows category leadership. Watching him yesterday was the embodiment of a successful campaign. Innovation and fantastic ROI are something that we try to practice everyday in our work, as well as always asking ourselves: “Why Not”? Dick van Motman, President & CEO, DDB China

Brand Portfolios Under Scrutiny

2008-12-08T09:00:01Z

One management lever brand owners have in tough economic times is to look at brand portfolio rationalization. Of course, that is already on the table for the US auto industry. Between them, General Motors, Ford Motor and Chrysler sell 112 different car and truck models through 15 brands in the United States. While the top three Japanese automakers — Toyota, Honda and Nissan — offer 58 models combined sold through seven brands. Brand rationalization will be a key part of any auto bailout plan - up there with executive compensation and union concessions. Retail brand formats, consumer product extensions will be examined, the latter because of production, packaging, and shipping costs. Value will trump variety in the majority of categories and that will mean making smart decisions in the portfolio not only short-term but for when the economic cycle reverses itself. Jeff Swystun, Chief Communications Officer, DDB Worldwide

Marketing in a Downturn

2008-12-01T21:51:25Z

On June 9th of this year, I posted a note to this blog on being a Marketing Contrarian. This was in response to economic signs and how historically marketers have reacted to downturns. I must admit that when the global economy really got hit this autumn, I had not been so clairvoyant to see the extent, depth and pace of the impact. It did prompt us at DDB to write a paper called Capturing Opportunities in Challenging Times covering in detail marketing and advertising in a recession (available for download from this site). The response to the paper has been overwhelming. Readers have enjoyed the papers four main sections: cut versus invest, brands as long-term assets, consumer price/value equation, and steps to take when managing brands in a downturn. One comment among many received was from a Vice-President of Marketing at a consumer products company, who shared, "This is my second recession and the primary lesson I have from the first one is to think of my business as a hot dog stand – view it as a much simpler business. Do I react by selling lower quality hot dogs, cut back on condiments, stop smiling and chatting with customers, raise or lower prices willy nilly, take away napkins? No I do not. I leverage equities I have built up over time, be prudent in my own purchasing and other processes, and offer value, value, value." Jeff Swystun, Chief Communications Officer, DDB Worldwide

Black Friday

2008-12-01T21:51:22Z

The statistics are in. The National Retail Federation (NRF) estimated that U.S. consumers spent $372.57 on average, an increase from 7.2% from a year ago. Which at first glance seems positive, however, come Saturday most retailers were reporting a significant drop in traffic. People pursued gate crasher specials, bargains, expansive sales and then stayed home. This fits with DDB’s view of the economic crisis – consumers are changing their definition of value on an almost daily basis as they react to economic news and the state of their own wallets and purses. Going forward, the NRF is predicting a 2.2% increase in holiday shopping sales this year, the smallest increase since 2002. Companies that know their consumers and prospective consumers can still do better in their category than their competitors if they chart the consumer price/value equation outlined in DDB's paper, Capturing Opportunities in Challenging Times. Two for one sweaters, heavily discounted flat screens, 50% off sales cannot sustain a company or brand for a prolonged period of time. The motivation to reduce inventory, generate flat or some sales growth while reacting to consumer confidence cannot be ignored but neither can the long-term impact on the health of the brand. Jeff Swystun, Chief Communications Officer, DDB Worldwide

Mobile Connectivity Redefined!

2008-08-22T13:33:48Z

Mobile Connectivity has been redefined. Long gone are the days when the only novelty of the mobile phone was being able to talk or message while on the go. Today mobile telecommunications are offering an integrated lifestyle combining work and play, social and professional in ways never experienced by any generation ever before. What are such examples of convergence that you are experiencing in your part of the world? How is the use of mobile phones being redefined? Picture this example - A typical day in a converged world! Checking emails without a laptop, PC or an internet café. Making gift buying decisions on the go by taking pictures from the mobile phone camera and sharing them as MMS messages instantly. Watching streaming videos on YouTube or better yet, watching Live TV over DVB-h. Capturing something unusual instantly and sharing it with the world using flickr on the mobile phone, geotagging them with GPS coordinates for added perspective. Meeting new people through Bluedating whereby a Bluetooth enabled network (Scatternet) matches and connects people in the vicinity based on preset preferences. Downloading RSS feeds onto your mobile and catching up with the latest on the web from hot new music, to stock market updates, to favorite blogs. Instantly micro-blogging and updating your boss, your friends or family on whatever you are doing now using Twitter or Facebook, from being stuck in a traffic jam to making a stop for coffee, updates can be instant and continuous. Traveling to new places and navigating through voice assisted GPS on the go be in a car or on foot. Sitting on a beach apparently alone but connected through fring IMing away or better yet playing a multiplayer game like “Call of the Pharaoh” with a bunch of friends. Downloading and listening to music as you soon as you hear about it on FM using the built-in mobile phone radio. Tracking miles walked or run using an in-built Pedometer. Using Location Based Services to locate ATM’s or restaurants or simply keeping a track of friends. If that is not enough using services like EDY (Euro, Dollar and Yen) to make transactions at select stores, activating vending machines or buying train tickets, all using a mobile phone replacing the need to carry cash or all kinds of credit/debit cards. Wait a minute! Are we forgetting something? Using mobile phones to make voice calls of course! Please let me know your thoughts? Syed Abdul Karim Tanveer, Director, Planning & Co-Creativity, Promoaction DDB Jeddah

Be a Marketing Contrarian

2008-06-09T20:50:27Z

Having now accumulated over 20 years of experience in global marketing, I have witnessed and participated in a few business cycles that have had significant impact on the efficacy of marketing. One that is unbelievably predictable occurs whenever the economy slows. The first reaction from the lionshare of companies is to cut marketing, advertising and business development budgets. Lets think about that for a moment. Sales are down so lets reduce the spending on activities that are primarily responsible for sales! Imagine companies that actually maintain or even increase their spend in these areas during a slowdown. Their voice would be louder as many competitors would be less vocal. As well, their spend may be more efficient if suppliers and partners work with them to maximize their impact during the downturn. So why do companies continue to cut these activities – because it is easy. What is harder is to capture the opportunity a slow down provides. Tom Peters has said, "Progress is mostly the product of rogues". Rogues or contrarians, these companies and leaders may prosper much more by making brave and intelligent decisions to invest and rise above the clutter rather than join their competitors in the same predictable and stagnant strategy. Jeff Swystun, Chief Communications Officer, DDB Worldwide

Consumer Demand Puts Clorox in the Music Business

2008-05-12T20:33:51Z

We have had such fun with the Business Communications blog and have been extremely pleased with the visits and comments since launch. We want to keep the content fresh and frequent so are taking a new approach. I will be inviting more experts within DDB to provide their insights and points of view. This will give you exposure to a greater range of thought while covering regional and industry trends. Keep coming back because the content will be great. --Jeff Swystun Producing a music CD may seem like the last thing a company that manufacturers bleach would ever do, but if you listen to Clorox consumers it makes perfect sense. And that is exactly what DDB San Francisco did. Postings on You Tube, multiple blogs, and an unprecedented number of emails from consumers asking where they could get the music from Clorox commercials, was enough to convince us to approach the client with the idea of creating a CD. And it took Tarang Amin, VP of Clorox Global Franchise about two seconds to agree to do it. Entering the music business for the first time, The Clorox Company ventured into un-chartered territory, but together we were able to navigate the terrain. Our team collaborated with music houses to extend original tracks from various thirty second commercials, named the CD "The Blue Sky Project" and designed the original album cover art. Both agency and client agreed that half of the profits from the CD should be given to a charity. Seeing that the Clorox Brand was focused on healthier lives and specifically the well-being of children, we identified the perfect beneficiary: MuST (Music In Schools Today), a nonprofit organization that supports music programs in low income public schools (mustcreate.org). The Blue Sky Project was released in early March and is now available for purchase on iTunes® and 50+ other online retailers for $6.93. In addition to the original compositions, the CD includes recordings from independent ,artists featured in commercials. A cool story that further proves that consumers today are both channel and audience for marketing messages. Lisa Bennett, Chief Creative Officer & Managing Partner, DDB San Francisco

"Me Too" Branding Persists

2008-03-26T16:39:11Z

We currently have a question on our homepage asking that when you have a great brand experience, do you tell others about it. No real surprise that approximately 80% say that they do. It is kind of funny that we are largely surprised these days when something truly surpasses our expectations in the use of products and services. For the most part, it seems we get what we expect and only that. And in some highly emotional cases we can be deeply disappointed. The "brand experience" has been talked about for years. It is identified as the key differentiator, yet, most experiences are of the "me too" variety. With precious few standing out when that is the aim of branding — what is going wrong? Why do organizations have such a difficult time consistently delivering differentiation and a brand experience that creates advocates? Jeff Swystun, Director of Global Communications, DDB Worldwide

Re-organizations Are Often Too Inwardly Focused

2008-03-11T13:42:33Z

A recent ANA study on marketing re-organizations demonstrates that all that activity might reflect a lot of busy work. Centralization and integration seemed to be the main pursuit, most probably for cost savings and messaging consistency. However, only 13% of senior marketers say they're "very satisfied" with their companies' marketing structures. Here are some key stats from it:

29% of marketers are undergoing reorganization and another 39% having done so within the past two years (sample size 132)
Fewer than half (48%) of respondents said structural changes to marketing had actually improved their companies' marketing abilities during the past two years. Another 17% said restructuring had worsened abilities, and 36% saw no change
49% of respondents believe marketing has become more centralized the past two years, and 52% described their companies as centralized vs. 30% decentralized and 18% as a hybrid

I have a theory on the lack of payback. Having consulted to dozens of businesses on their brand, marketing and sales effectiveness, I often saw re-organizations initiated for the wrong reasons and/or done too often, and mostly with no change in measurement. All three are individually killers but much of the time, businesses are guilty of all three in unison. The best reason to re-organize is based on market performance and customer responsiveness. Re-organizing every 2-3 years is analogous to the life span of a CMO and that frequency of disruption does not allow customers intimacy with the brand. Finally, if new metrics are not applied to organizational change, you are simply shuffling the deck to play the same game. The more successful re-organizations are initiated and driven by customer demands both present and future.

The Best Communicators are the Best Listeners

2008-02-25T16:33:38Z

I learned years ago in traditional management consulting at Price Waterhouse, that you solve problems by listening. This is so true in communications. I know the most impressive communicators are great listeners, aggregators of information, makers of relevance, and of course, entertaining when they do communicate. The more challenged someone is in communications the more the root cause may be poor listening skills. These people do not listen because: they "know" what they are going to hear they seek confirmation, not information what's being said gets in the way of what needs be said In effect, they have already made their conclusions and have run to a solution that may not be helpful. Communication professionals need to be constantly aware of their own biases and perceptions (control your biases and validate your assumptions). These days in a time of speed and overwhelming communication clutter, we need to slow down and listen to attain the nuance and real issues faced by customers, colleagues and others. Before you just react (ready, shoot, aim), think about the following to help you listen better: put yourself in the other person's shoes keep the conversation on what the speaker says, not on what interests you spend more time listening than talking pay attention, never become preoccupied with your own thoughts when others talk, take brief notes to concentrate on what is being said do not finish the sentence of others ask questions, but do not answer questions with questions plan responses after the other person has finished speaking, not while they are speaking summarize - walk the person through your analysis The result is you will be better communicators. In fact, the applications are endless. Being a better listener can improve customer service, new product and service development, media relations, social responsibility efforts, etc. Do you have any examples to share?