So farewell, Steve Ballmer

I had looked forward to seeing Steve Ballmer, the CEO of Microsoft (who has recently announced that he is stepping down). He was guest speaker at a major Coca-Cola conference in the mid-90s that I was co-facilitating with Bill Boggs. At the time Microsoft was the hottest company on the planet.

In the event… I just thought he was preachy, screechy and dull.

I’m not really surprised that the company has performed so poorly over the past two decades. So poorly that Microsoft’s stock surged when he said he was off.  

Myth of the Brand Life Cycle

Throughout my working life, there has been a concept, a marketing trope, a metaphor that has consistently been held as a “truth” – the brand/product life cycle. I won’t bore you with the theory. You know it.

It’s just that it has never seemed to me to have any validity, nor be of any use. Fundamentally it’s derived from the concept of animal life cycles, of course. These happen naturally, whereas brand/product life cycles occur through lack of imagination and lack of will.

Well and continuously marketed and innovated, there’s no reason why brands should not go on indefinitely.

Here are sixteen brands that I’ve personally worked on the marketing and innovation of that were launched well before I was born and will be here long after I’ve gone:

Louis Vuitton (born 1854)
Bacardi (1862)
London Underground (1863)
Nestlé (1866)
Campbell Soup (1869)
Toshiba (1875)
Rowntree’s Fruit Pastilles (1881)
Marks & Spencer (1884)
Coca-Cola (1886)
Smirnoff (1886)
Philips (1891)
Fairy Soap (1898)
Persil (1903)
Evian (1908)
Johnnie Walker (1909)
Electrolux (1919)

The people working so hard on them today are, just as I have been over the years, custodians.

Hemming and hawing over Diet Coke

Here is another example of fast-following being better than leading.

Twenty years ago, it became clear that there was a really major market out there for diet cola. And regular Coke had the reputation for being stuffed with calories.

The Coca-Cola Company had sold for many years a brand called TAB – and the reason that the company gave it a separate name, far from Coke, was that it tasted foul.

So the challenge was to produce a good-tasting product with zero calories. First to market was a local US brand, Royal Crown. It tasted good and consumers liked it. But the truth was that they were faced with a powerful global competitor who could obliterate them quite easily.

So after much hemming and hawing – it seemed to take years – Coca-Cola finally launched Diet-Coke (Coca-Cola Lite in many markets), which built massive sales everywhere, including in Australia, where my ad agency, Lintas, handled the launch.

I think the lesson is not to go up against a much bigger competitor with your new product if they can blow you out of the water so easily.

In that case, you’ll need an important aspect of your product or brand that’s either hard to copy, or, better still, has some IP protection.

Neckties and creativity

I went to a meeting recently at a London club and in the lobby there was a notice requiring members and guests to dress “appropriately”. Think I get the picture.

In fact, I haven't worn the “appropriate” suit, shirt and tie ensemble for over a quarter of a century. And clubs like the one I visited don’t seem to have noticed that daytime dress for men has been steadily changing over that period of time. So when I visit a client nowadays, I find that nobody is wearing a tie and that I’m the only one there with a traditional jacket.

It seems extraordinary to me that something that emerged as a fashion norm for men near the start of the twentieth century should have persisted in its rather tyrannical way for over 100 years. But, in truth, in 2011 it’s only a handful of times and places that still require that uniform. Top of mind, aside from olde worlde clubs, is salesmen. Is the reason that these institutions still insist partly because they fear that their blokes are going to turn up in shorts?

When I started working in innovation and creativity, I would encourage male participants in workshops to take off their ties in order to get into a more open and creative frame of mind. Some seemed to feel that they might be stark naked without it and needed a good deal of coaxing. That particular intervention is hardly ever necessary now.

In an article in Marketing magazine, Coca-Cola’s vice-president of global advertising strategy, Jonathan Mildenhall (above), tells us that his wardrobe consists of twenty pairs of Levi’s, twenty-five pairs of Nike Air Max and some suits from Ozwald Boeteng. Don’t think he’ll be let into that London club any time soon.