Okay ... I've been way too lax in churning out the sixth installment of Worthy Reads | Worthless Reads (WRWR). I'll get around too it soon. In the meantime, below is an image of books I've recently read or plan to read. No doubt some of these will appear on WRWR #6.
(As long as you are here, consider revisting vintage WRWR posts ... One, Two, Three, Four, and Five.)
Yesterday I received a pitch. Okay it was more a gift than a pitch. Jack Hayhow, author and chief executive servant at Opus Communications, sent me a copy of his book, THE WISDOM OF THE FLYING PIG.
I’ve been sent countless books from folks wanting me to blog about them. While I am appreciative of receiving business books, rarely do I blog about the books given to me.
However, I’m blogging about Jack’s book because he followed the 3 R’s of a perfect pitch - Respect, Recency, and Relevancy.
Jack showed respect by not pandering to me with an over-the-top adulation heavy quid pro quo come-on. Instead, his respectfully written note showed recency and relevancy by referencing my latest rant on RadioShack which showed me he is a regular Brand Autopsy reader.
I’m also blogging about THE WISDOM OF THE FLYING PIG because Jack has some smart things to say about business leadership. Chew on this chapter header from the book: "Managers don’t get paid for what they do, they get paid for what their people do."
Be sure to troll through Jack Hayhow’s two-month old Pig Wisdom blog because you are sure to find something inspirational.
Last year I spent a little time working with Bones in Motion (BiM), an Austin-based technology start-up helping them fine-tune the marketing strategy of their first product, BiMActive.
Simply put, BiMActive turns your cell phone into a GPS-enabled high-tech pedometer. But BimActive is more than just a pimped-out pedometer. By syncing one’s cell phone with a satellite, BiMActive records distance, speed, pace, location, elevation, and calories burned while you run, cycle, hike, or whatever. All this information is accessible on one’s cell phone or online in one’s personal training journal. Cool stuff, eh?
Andy Graham and Jon Werner of BiM have spent the better part of the past three years to bring this remarkable product to market. Congratulations fellas … your idea is now reality.
For more on BiMActive, stream their demo from the recently held DEMOconference.
If you live in and around the badlands of Central Texas ... attend the San Antonio American Marketing Association February Luncheon this Wednesday (Feb 22) to hear me share some STARBUCKS TRIBAL KNOWLEDGE.
San Antonio AMA February Luncheon
Wednesday, February 22
11:30 am – 1:00 pm
Old San Francisco Steakhouse
10223 Sahara St., San Antonio, TX 78216
map | driving directions
AMA Members $25
Guests $35
AMA Student Members $20
(Walk-ups welcomed)
RSVP HERE
I’m a big fan of and big believer in In-N-Out Burger. I cite them constantly when sharing my jumboSHRIMP Marketing beliefs on getting bigger by acting smaller. In-N-Out Burger is a quintessential jumboSHRIMP Marketing business because they steadfastly follow the jumboSHRIMP Marketing golden rule of being the best, not the biggest.
However, this week I learned from BusinessWeek (sub. req’d) of some intra-company shenanigans where, allegedly, In-N-Out Burger heiress, Lynsi Martinez, is maneuvering to take control of the business. Currently, In-N-Out Burger has around 200 locations in only California, Nevada, and Arizona. Rumor has it that if Lynsi gets control of In-N-Out Burger, she will seek to take advantage of accelerating the growing of the business. Let’s hope this hullaballo is more rumor than fact.
Scarcity and privacy have been two of In-N-Out Burger’s main business strategies. By choosing to be inconvenient with its judicious and methodical expansion and choosing to remain a privately-help company, In-N-Out Burger has so far not fallen victim to the Krispy Kreme trap.
The Krispy Kreme trap? That’s when you take a cult regional brand and decide to take it national by any means possible. (We all know where that strategy got Krispy Kreme.)
For more on the developing situation with In-N-Out Burger’s intra-company shenanigans, read this LA Times article and this Washington Post article.
Last November I wrote about RadioShack’s Holiday Irrelevance. My take was in response to RadioShack’s stated goals of increasing its relevance with consumers through a heavy-up Holiday advertising blitz. Given RadioShack’s dismal 4th quarter earnings, we now know the company’s problems extend well beyond holiday irrelevance to everyday irrelevance.
Following its disastrous earnings report where earnings fell 62%, RadioShack is planning to close up to 700 stores, shutdown two distribution centers, and fine-tune its bloated inventory.
Here’s a radical idea for RadioShack … stop trying to sell cell phones and satellite television service and start selling connection solutions for all the electronic gizmos we bought elsewhere. But that isn’t such a radical idea, is it? After all, isn’t that how most people use RadioShack? When I'm in need of some electronic component/connector the first place I go is RadioShack.
Forbes has a good run-down on RadioShack’s everyday irrelevance.
And if its everyday irrelevance isn’t enough, RadioShack’s CEO has been found to have falsified his resume. Ouch.
Every October when I was at Starbucks, we would introduce the upcoming Holiday promotion at day-long rah-rah events throughout North America. At each event a Starbucks executive would deliver a “State of the Business” speech and the luckiest cities were those that had Howard Schultz deliver the speech. Howard would always speak from his heart and not from the script provided to him. Starbucks partners (employees) in attendance would be mesmerized by his passion for the meaning/purpose of Starbucks.
Afterwards, there would be a steady stream of Starbucks partners patiently waiting in line to touch the person and persona guiding the vision of Starbucks. Those are images I will never forget.
I was able to relive those fond memories by listening to Howard deliver his opening comments (via an archived webcast) at the recently held Starbucks Annual Shareholder’s Meeting in Seattle. (The archived webcast is archived and available for viewing until March 7.)
In his opening comments, Howard oozes passion for everything Starbucks and his speech melted the heart of this crusty, old school Starbucks partner. You can listen to Howard’s inspirational comments for yourself …
DOWNLOAD HOWARD’S SPEECH HERESpeech Log
0:00 | The Scope of the Starbucks Business
11,000 stores in 37 countries … 125,000+ employees … 40 million weekly customers … 5 new stores open a day around the world … 300 new employees are hired each day01:39 | Howard Muses on the Glory yet Gory Days
20th Anniversary of Il Giornale … challenges in making payroll and paying vendors … Howard’s “come to Jesus” meeting with his wife’s father04:52 | Transformational Periods in the History of Starbucks
In 1991, Starbucks made the uncommon decision of offering full-time and part-time employees stock options and comprehensive health insurance. Howard’s money quote, “You cannot build long-term value for shareholders of first you do not build value for your people.” In 1996, Starbucks began dreaming of a much bigger company after their successful, albeit difficult, international expansion into Tokyo, Japan.08:21 | “The Starbucks Effect”
Howard talks about how the company is preserving the core business, stimulating progress, and enhancing the customer’s experience all the while not violating the trust and respect of customers around the world.10:34 | The Universal Appeal of Starbucks
Howard Schultz is at his inspirational best here. He closes his talk by eloquently and passionately explaining the Starbucks difference. This is powerful stuff to hear and it sums up my deepest, most heartfelt emotions for the company that has meant so much to me. I may take a few jabs at the company on this blog, but I do so with a loving and caring heart because I cannot imagine where my life would be without my time spent working inside Starbucks.
That’s a saying from Starbucks lore that has helped its marketing department better understand the emotional connection Starbucks customers have with their favorite Starbucks beverage.
Starbucks was founded on the passion for great-tasting coffee. This passion for the coffee that goes in a Starbucks cup has driven the company to achieve far more than most thought possible.
However, I’m not sure the passion that goes in the cup will stir the passions of those who hold the cup as it relates to Starbucks latest test market product – Grani. Grani is a fanciful name for combining steamed milk with Kellogg’s Low-Fat Granola in a tall (12 oz.) Starbucks logo’d cup.
Yep … Starbucks is selling ho-hum Kellogg’s Low-Fat Granola in its iconic logo’d cups.
It’s only in test market phase at 12 Indianapolis Starbucks locations but if successful, from a sales perspective and from an operational perspective, Starbucks will expand the Grani test to a few other markets before deciding upon a national roll-out.
The Ad Age article (Feb. 6, 2006), which first reported the Starbucks/Kellogg’s partnership, went way over-the-top when it said Grani could, “… allow Starbucks to finally crack the code on a signature hot breakfast item and lift check average to boot.”
Gratuitous usage of signature aside, are we really to believe serving up Kellogg’s Low-Fat Granola with steamed milk is going to significantly drive sales at Starbucks? Stores will be fortunate to sell 5 units per store per day of Grani. And if a Starbucks sells 5 granola cups a day at an estimated $3.25 per cup … we are looking at a Starbucks taking in slightly less than $6,000 in Grani sales for a full year. Not sure $6k a year at the store level constitutes cracking the code on a signature hot breakfast item.
Don’t get me wrong, I’m all for Starbucks selling granola. After all … ain't nuthin' new with Starbucks selling granola. In the 90s, Starbucks sold little plastic bowls of artisan granola. What is new is partnering with a major consumer packaged goods company to serve as its granola supplier.
I’ve had Kellogg’s Low-Fat Granola many times – it’s okay. But it’s certainly not best-in-class granola. In fact, the coffee equivalent of Kellogg’s Low-Fat Granola would be canned Folger’s coffee. Ugh … that low-brow granola from Kellogg’s is going in the same logo’d cup which holds coffee Starbucks contends is best-in-class. Double Ugh.
If Starbucks was really seriously about upholding its mindset of “the passion that goes in the cup can stir the passion of those who hold the cup,” they should partner with a best-in-class granola maker like La Brea Bakery. La Brea is passionate about making great bread and making artisan granola. Plus, La Brea’s CEO is a former Starbucks executive. Sounds like a good match to me.
Matt Galloway’s infatuation with Word-of-Mouth Marketing is now officially his avocation. He recently launched Buzz-o-Phone, an experiment where people can dial 1-800-591-5375 to rant or rave about companies they loath or love. Matt will then package the rants/raves into a podcast. Cool concept as it mixes old school tools with new school rules.
I’ll be off the blog for a few days while I’m in Boise, ID attending the wedding of a great friend (.jpg), former college roommate at Baylor, and current Idaho deputy attorney general. While I’m away, here’s something to gnaw on …
I’ll be posting some of my thoughts next week. Until then … the blog is yours -- jump in with your comments.
“Although pitched as descriptive, [Malcolm] Gladwell's books are essentially prescriptive. Trust your instincts! You too may be (or can become) a connector, maven or salesman! Gladwell's dazzling arguments ultimately offer reassurance.
Indeed, he seems a contemporary incarnation of a recurring figure in the American experience, one who comes with encouraging news: You can make a difference, you have the capacity to change. Gladwell may be the Dale Carnegie, or perhaps the Norman Vincent Peale, of the iPod generation. But where Carnegie in his 1936 book, "How to Win Friends and Influence People," instructed readers how to understand their customers and flatter people into liking them, and Peale in his 1952 "Power of Positive Thinking" offered watered-down Christian palliatives, Gladwell offers optimism through demystification: to understand how things work is to have control over them."
As I listened to an archived webcast of the Starbucks Q1 Earnings Call, I keep jumping in with comments. So I thought doing an AudioBlog with running commentary might be an interesting experiment.
When you download the following AudioBlog, you’ll hear sound-bites from Starbucks executives (Jim Donald and Howard Schultz) and you’ll hear some HMOs (hot marketing opinions) from me. Have a listen and provide me with some feedback as I may do another AudioBlog to coincide with the Starbucks Q2 earning call.
DOWNLOAD AUDIOBLOG HEREI've updated a vintage Brand Autopsy riff on the Super Bowl advertising insanity and recorded it as a short audiobog.
It's goofy stuff.
DOWNLOAD AUDIOBLOG HERE
[2:12 minutes | 2.1 MB]
Todd Sattersten from 800.CEO.READ recently recorded a conversation with Charles Fishman, Fast Company senior writer and author of THE WAL-MART EFFECT. Fascinating stuff.
If you are at all interested in how Wal-Mart plays the retailing game … download the podcast. Charles is a great conversationalist and his stories about Wal-Mart are as captivating as they are informative.
As a marketingologist with the Brand Autopsy Marketing Practice, I give companies “Second Opinions” about the business and marketing activities they are currently doing or considering doing.
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