Jaffe Juice

Earn the Bundle

My latest MediaPost Online Spin column below, which introduces a concept about "earning" versus "commanding" a bundle of products or brands. Whether you're Panasonic, Nike, Apple or Procter & Gamble...this notion applies.

A month ago, Procter & Gamble announced it would be culling about 90 to 100 of its brands globally, in a restructure that would instead focus on the company’s top 70-80 brands.

On the surface, the move makes complete sense. After all, the remaining brands have accounted for 90% of sales and 95% of profit over the past three years.

So if I read that correctly (and the math is rather simple), we’re talking about 90-100 brands responsible for 10% of sales and only 5% of profit.

If that’s the case, one might ask what on earth the company was doing in the first place carrying so much dead weight relative to the remaining rock stars.

Or perhaps you were astounded by the tremendous lopsided contribution of sales and margin within the family of brands. You shouldn’t be, as your own customer base is probably not that radically different from this kind of 80/20 split. Certainly this is true within the B2B world -- and although less so in the B2C space, I wonder what Zappos, Starbucks, Amazon.com or Coca-Cola would say when it comes to their power products.

But I digress.

So back to P&G and the announcement, which came from Chairman and CEO A.G. Lafley, who himself had returned to the company 14 months prior to steady a rather behemothic ship. Lafley had indicated disappointment with the company’s financial situation, and this move was a decisive step to get things back on track.

And yet, I didn’t interpret any strength in this move at all. To me, it was all about consolidating the status quo; the known versus unknown; the “safe bets” or sure things versus the wildcards or anomalies.

I would contend that there are no sure things or safe bets nowadays. Just look at the threat Dollar Shave Club presents to the incumbent, P&G’s Gillette brand.

My gut feeling is that P&G’s brand-cutting move will be followed by a tried and tested approach, including mass/paid media and reach-heavy digital or social plays like Facebook, and doubling down on massive global sponsorships like the Olympics, as opposed to riskier and less proven approaches on the innovation front.

In my previous startup boutique, I did some work with Panasonic. I recall how excited execs were about an SD card that could be interchanged and used in all their devices, from camcorders to cameras to HD TV’s to their Toughbook P.C. They believed that this interoperability (or compatibility) would be key to developing an unequivocal reason for consumers to choose every product within Panasonic’s portfolio.

I remember telling them to “earn the bundle,” not “command the bundle.” Instead of creating a walled garden or closed system, let people decide for themselves what to use, and based on your great functionality, service and experience, they would give you more of their hard-earned money and loyalty.

If you think about it, the walled garden didn’t even work for Apple. And thankfully so, when you look at how many iPods the company subsequently sold to PC users.

Nike “earned the bundle” with me. I started with the obvious pair of shoes and hodge-podged the rest of my outfit from every other brand. Today, my shoes, socks, , GPS watch, shirt, shorts, windbreaker, gloves and hat are all part of the earned “Just Do It” bundle.

Instead of cutting brands, why wouldn’t P&G have looked to invest in its existing suite, creating creative, lateral and bold pairings or partnerships, bundled around “reasons to behave” versus “reasons to believe.” Like P&G did with Potty Palooza during frigid Times Square days, with Duracell (charge your phones and cameras) and Charmin (go to the loo). Or what Charmin did with its Sit or Squat acquisition. Although truth be told, we still haven’t seen this live up to its potential -- for example, a tour de force combination of Always, Pampers and Charmin owning the public restroom for entire families!

As the old saying goes: "If you're digging yourself into a hole, the smart thing is to stop digging.” Personally, I would choose to earn the bundle from a much larger portfolio of everyday products, as opposed to commanding the bundle from a smaller set – which no doubt will be under even more financial scrutiny, competitive pressure and startup disintermediation in the future.

But that’s just me.

Innovation at 128,000 feet

Still playing catch up and so here's my Mediapost article from 11/6, which covers Red Bull's incredible Stratos content integration or is it NASA sponsorship? Either way, it was unprecedented, ballsy, mega risky shows why Red Bull marketing deserves to be up on the honors podium, along with all-stars, Nike and Apple.

When I mention the name Baumgartner, you might immediately think of a certain baseball pitcher for the San Francisco Giants. That’s Madison Bumgarner, and I’m referring to Felix Baumgartner, an Austrian skydiver, daredevil and BASE jumper, who – in October of 2012 – set almost broke a world record for free fall/skydiving, but pretty much broke every other brand record in the process:

That previous statement is a gross understatement. This is what he did: He jumped at a distance of 24 miles or 39 kilometers above the Earth. (A plane flyingat 35,000 feet is only 6.6 miles above the Earth. Baumgartner was in a space capsule; in a space suit and could see the curvature of the Earth!)

He become the first person in history to break the sound barrier — putting him in the same category as the Concorde. He reached an estimated speed of 834 miles per hour or 1,342 kilometers per hour, faster than a Boeing 777.

During the fall, Baumgartner went into a spin, where he was seen hurtling through space like a tumbleweed on steroids. Remarkably, he stabilized — and said this was anticipated and under control — and landed on his feet. 

The “mission” itself was five years in the making and has delivered several key insights that will help scientists and aviation experts on the development of equipment, clothing, safety, tourism (!) and evacuation procedures.

Most remarkably, however, this was essentially a giant ad for Red Bull. Ordinarily, I would be on my “Life after the 30-second spot” or “Join the Conversation” soapboxes lambasting brands for elongated, protracted and procrastinated planning cycles in favor of a “real time” and dynamic shortened time to market. But not this time.

Red Bull — yet again — hasn’t just raised the bar; it pretty much obliterated the bar by demonstrating the relevance, role, purpose and utility associated with a brand that has truly invested and vested itself in “extreme” sports and lifestyle. Calling Red Bull a “content marketer” is an insult to Red Bull. Red Bull is so much more.

Not only did it almost literally bring its core positioning to life, “Red Bull gives you wings,” but ishowed an acute understanding and mastery of pure and unadulterated innovation in the form of a unique and original idea that had zero precedent and quite frankly (and again quite literally) no safety net.

I cannot even begin to fathom the thousand ways this could have gone wrong and the huge risk at stake. The “experiment” itself was already aborted once because of weather conditions, but the blunt risk here was the very real possibility and scenario of witnessing a “live death.” (All brought to you by Red Bull.)

Ironically (and it is a monstrous – pun intended – irony), a competitor in the form of Monster Energy drink is currently being sued and subsequently investigated by the FDA for a number of alleged consumption-related deaths.

Conversely, Red Bull brought a symphony to life, with more than 8 million people worldwide watching YouTube’s live stream of the free fall. Within four days, and across 1,700 related clips, it was the second-fastest video: to 50 million views in history. (The first was Kony 2012.)

I look at the average Nascar driver, tattooed or should I say littered with a cacophony of conflicting brand logos and juxtapose this with the clean and clinical branding 24 miles up in the air. I raise a can of congratulations to this marketer.

I speak to marketers worldwide, representing every major corporation. They all envy and want to be like two brands: Nike and Apple. Well, make that three brands: Red Bull joins the hall of fame trinity. 

The combined jealousy and respect are palpable, and so is my advice to every Red Bull wannabee: “Just do It” or to quote Baumgartner’s mentor, retired USAF Colonel Joseph Kittinger: “Start the cameras, and our guardian angel will take care of you.”

Read more: http://www.mediapost.com/publications/article/185877/innovation-at-128000-feet.html?edition=53177#ixzz2C8Qu1RFu

JJTV #106 - The Juice on the iPad

I love to love Apple. I love to hate Apple. I hate to hate Apple. And of course I hate to love Apple as well.

I do love my iPhone though. And I love it enough to wait for the second generation of the iPad before I need to purchase one.

I don't need an overgrown iPhone without the iPhone. At least not yet...

And the same applies to the flawed 4G.

That said...don't ever EVER write off Steve Jobs or Apple!

The iPad is a Jack of all trades and master of some - most notably a video-centric multimedia device. That's probably enough for it to continue to enjoy superior sales, engagement, satisfaction and demand.

Additional link: My blog post on the iPad

Spread the word:

• Share JJTV with your creative dept, your colleagues, clients and followers
• Tweet or RT: New JJTV - The Juice on the iPad; I'm waiting for Gen 2. Here's why - http://bit.ly/ipadjuice
• Subscribe to the show via iTunes or YouTube
• Leave a video comment

Jaffe Juice #128 - Panasonic's Living in High Definition Community

  Panasonic has been keeping crayon very busy with an amazing initiative called, "Living in High Definition". It's a community project that really demonstrates the fact marketing is a commitment...not a campaign. Have a listen and enjoy. Audio comments to +1 206 203-3255

Direct download here

iTunes subscription here

If you want to find out more and join the community, visit www.livinginhd.com

Also for the remainder of May, Panasonic is giving away 30 camera/camcorders in 30 days. If you want to win one, just register for the program.

My thanks to Panasonic CMO, Bob Greenberg, VP of Brand Strategy, Tom Murano, Panasonic LiHD Family John & Eileen Calandro (Happy Birthday, Eileen!), LiHD Family and host of the LiHD podcast, Laura Pollak, LiHD community leader and crayonista, Kate Dickman and LiHD Answerman, Greg Harper for joining us today.

30x30 - A great way to celebrate Living in High Definition

As you know, crayon works with Panasonic on a landmark community initiative called "Living in High Definition." If you haven't checked it out yet, give it a visit and hopefully you'll be motivated to become a member of this expanding group.

And if my invitation isn't enough, I'll give you a more familiar reason to in just a wee bit...

First, I wanted to remind you that I'll be discussing this initiative on Thursday, May 7th at 1.30pm EST on my podcast, Jaffe Juice - the New Marketing Podcast. If you want to listen in live and even participate/ask questions etc., you'll need this link for streaming and chat functionality and +1 724 444-7444 Pin 25133 if you want to call-in to the show.

And now, the incentive. How does the chance to win 1 of 30 cameras or camcorders in 30 days sound? To officially celebrate the launch of LiHD, Panasonic is offering up a bunch of digital carrots as a way of saying thank you to early adopters who become active members of the community.

It's a sweepstakes designed to drive registration and participation using product as the hero.

Here's the link which will take you to the promotion registration page. You'll need to become a member first and once you're all set up, you'll just need to register once to be eligble for the month-long daily-drawing. Oh, and be sure to check back every day to see if you're a prizewinner.

PS Don't keep it to yourself. Spread the word. Good goes around. Remember: Marketing folk, their friends and family are people too :)

If you're on twitter, here's a one-liner for you: Win 1 of 30 cameras/camcorders in 30 days via Panasonic's "Living in High Definition" - http://bit.ly/ZNOip - register once to win each day

Marketing in High Definition

In the past, I've always tried to give readers (of the blog) and listeners (to the podcast) a look under the covers of some of the marketing programs I've had the pleasure of working on. None have been as prevalent and exciting as Living in High Definition - Panasonic's community that celebrates the concept of High Definition (not just literally from a product standpoint, but also as an experience/way of life)

Recently we gave the community a new look (form and function); launched a community manager; a new podcast; a series of expert solution videos; and the list continues...

Now it's time to talk about it...and give you a chance to ask questions and talk back.

So mark your calendars for next Thursday, May 7th at 1.30pm EST for a live call-in episode of Jaffe Juice - the New Marketing Podcast. Joining me will be Panasonic's CMO and VP, Brand Strategy, LiHD's Community Manager, the host of the LiHD Podcast and last - but definitely not least - of of the participating families in the program (real life consumers!)

I'll be doing this via Talkshoe and here's what you'll need if you want to join:

• At 1.30pm EST on Thursday, May 7th, click on this link and join the call. Bonus points if you register. You'll be able to listen and chat live
• If you want to call in to the show, you'll need to dial +1 724 444-7444 Call ID: 25133 and I'll bring you into the conversation

It's going to be a pretty intriguing and illuminating call. Hope you can make it.

LiHD Podcast - Episode 2: It's all about the community

The second episode of the Living in HD Podcast is up. In it, we welcome Kate, LiHD's Community manager. Debates continue as to whether brands should have individual(s) names and faces; when it comes to community however, we think the answer is an affirmative. 

If you haven't visited the community yet...and more importantly, become a member...what are you waiting for?

fyi: You can follow the show's host, Laura and community manager, Kate on Twitter.

The Launch of the Living in High Definition Podcast

This is a little backwards, because I still want to spend some time over the next couple of weeks outlining the single most signficant project we've worked on at crayon, namely Panasonic's "Living in High Definition" community and commitment.

We've had the pleasure and privilege to work with Panasonic North America on a truly landmark effort - actively demonstrating that Living in High Definition changes everything.

And what better way to bring this to life than through a High Definition video show, presented by one of the real stars of the program, Laura Pollack, a mom and a community member.

The LiHD Podcast is a bi-monthly snapshot of the best of what the community has to offer. It's a showcase which operates on three levels:

• Internal i.e. within the community - motivation for members; a showcase of recognition
• External i.e. outside the community - a portal or window into the community; a source of promotion and membership acqusition
• Both - a source or resource filled with tips, tools, tricks, how-to's and inspiration

Making this podcast happen are the fine folks over at For Your Imagination (FYI)

So take a look, subscribe to the show and while you're at it, join the LiHD Community.

Living in HD Podcast, Episode 1 from Living In HD on Vimeo.

Digging the HD Scene

SXSW came and went. I wasn't there, but crayonistas Jane Quigley and Greg Verdino represented us in full force.

They also represented two of our clients: ooVoo and Panasonic - with the latter being involved in a unique live taping of cultishly popular Diggnation, led by their two hosts Kevin Rose and Alex Albrecht.

The partnership in question (episode #194) was to highlight Panasonic's Living in High Definition initiative in a promotion called, "Diggnation lives in HD"

From Greg:

If you like taking pictures or shooting video -- or just want to take a look at our latest social marketing tactic to promote the Living in HD community site -- visit the promo page to find out how you can qualify for the competition.  Don't forget to join LiHD, friend the Diggnation crew.You might win a sweet Panasonic digital still camera or HD camcorder.

Greg's photos from the event are here.

To pay or not to pay, is THAT the question?

Forrester just released a report titled "Add Sponsored Conversations To Your Toolbox," authored by Sean Corcoran.

Kmart gave some bloggers a free shopping spree in exchange for a blog post about the experience — a practice we call sponsored conversation. With appropriate protections for disclosure and authenticity, this practice will take its place alongside public relations and advertising activities in the blogosphere. Marketers should take advantage of sponsored conversation as an entrée into the online conversation. To succeed, you should get to know the bloggers you plan to work with and set expectations across your organization.

What's interesting is how Forrester is pretty deliberately putting this approach into a category of its own, alongside it's predecessors or cohorts (depending on your position), advertising and P.R. and in doing so, plays a part in terms of legitimizing or formalizing an emerging practice.

His colleague Jeremiah Owyang covers it here and Brian Morrissey at Adweek covers it here. Marshall Kirkpatrick from ReadWriteWeb takes a strong counterposition here.

I was interviewed for this piece by Sean, as was Chris Brogan, who participated in the aforementioned Kmart program, sits on the board of IZEA - the company behind the program (and the one formally known as PayPerPost). Chris responds specifically to Marshall with this post.

Here's the thing. In my time in this space thus far in a formal capacity (i.e. crayon), I've worked on two pretty public and well received programs: My ooVoo Day and the Panasonic CES program. In the former example, both Marshall and Chris were participants; in the latter one, Chris was one of the bloggers. I'm not sure I would call either of these programs "sponsored conversations". In fact, crayon calls them "tactical hooks" - a mash-up of the best (practices) of the advertising and social media worlds. Put differently, we believe that influencer outreach should be treated with the same consideration, commitment and investment as a traditional communications program from both a planning and production standpoint.

It's imperative to give influencers both a reason to believe and a reason to behave. Too often, we are lazy, greedy and gratuitous in terms of what we expect from bloggers and the like and essentially what we expect back from them, relative to what we put in, in the first place.

In a personal capacity, I've participated in both the Nikon D80 giveaway and the Sears program (part 2 of IZEA's Kmart 1-2 punch). In both cases, I wouldn't say this remotely smacked of PayPerPost; nor would I say my conversation was sponsored. In some respects,this is no different than a "celebrity" (TRUST me, I'm using that loosely) sponsorship - from loaning a star diamonds on Oscar night to adorning Tiger Woods with a cacophany of swooshes in exchange for mega moolah.

I guess the point is where on the continuum does blogger or influencer outreach fall. Personally, I believe we should be calling this "blogger/influencer outreach" and not "sponsored conversation". Let me also be very clear (and you can see from the definition), that I don't think Sean meant this to be taken in a negative light. I spoke with him and we had a great conversation. I think the real ambiguity and problem lies with us (i.e. the readers of the report; the commentators and so called social media experts etc).

Part of the problem lies with the fact "sponsored conversation" sounds a bit like "paid search" does it not? Putting two terms which seemingly mean exact opposites together and in doing so, creates a rather jarring disconnect.

Part of the problem as well lies in the endless, boring and inaccurate comparison between the new class of content creators (bloggers if you wish) and journalists. They're not...at least for the most part.

And so we come back to the two core issues:

1. Should bloggers be compensated in any way, shape or form for their time, effort, energy, passion and contribution. The answer can only be a resounding YES, with standard terms and conditions (disclosure, transparency etc) which make both common sense and business sense.
2. Is expecting bloggers (in return for aforementioned compensation) to write, talk, post, create etc about their experiences, reflections, ideas, participation crossing a line? The answer here is a resounding NO, provided there is adequate disclosure and transparency.

Come on people. Grow up and wisen up. This is a nascent industry and space which is learning and maturing all the time. What we have here is in many respects no different to how the world was, but in many respects is also incredibly and completely different. It's time to get off our high horses and open our minds, instead of stubbornly holding on to and exhibiting self-righteous, hypocritical and close-minded positions.

Whatever you call them, "sponsored conversations" are here to stay. And just like the vast differences between crap and mediocre creative (lumped together) and inspiring/breakthrough creative, so too will there be a marked difference between influencer programs that stand out from the crowd or get trampled by it.