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Tuesday, March 24, 2009
Predicting the Future Isn't Always Based On the PastThe WSJ has an article out on stocks that are doing well during the recession. Some of them I would have expected
and some were surprising, but only at first. Why? The article pointed out that although shares of cellular companies
tanked early in the crisis, they have bounced back moving cell phones from the category of extravagant budget-cutting extras
to necessities that must be maintained. It may mean that people dropped expensive plans, but didn't drop service
altogether. Or, they dropped it temporarily then realized their mistake.
Other rising stocks are Amazon and
Blue Nile. To me Amazon was expected because more people on a budget would save the gas money and purchase online. Blue
Nile was surprising. I haven't checked the stats, but unless more people are getting engaged or celebrating anniversaries,
why would this stock become a winner. But wait people get engaged all the time and buying diamonds online versus locally
and I would think that the biggest age group getting engaged are in the forefront of online shoppers.
It also
seems that although Starbucks is putting out the word that it is not as expensive as everyone thinks [see my previous
blog], it is also putting out loyalty cards and have signed up 750,000 customers. To me having their stock rise makes
a lot of sense, because people who have been shown the door in corporate America are out networking and conducting business
at the corner Starbucks.
The article also mentioned that Netflix's stock has hit a record high and investors
should have seen that coming, because entertainment usually grows during a depressed economy. People want to take their minds
off their troubles, but even if they are cutting out trips to the movies, Netflix looks good in the budget and as the article
pointed out costs less than cable TV.
What I liked most about this news was the optimism. It even pointed out
that many of the stocks which did the best during America's Great Depression were actually
so-called "growth" companies, because they were the ones conquering the future.
Between the lines of
this good news article is a take away for entrepreneurs. If your company has or could have an important role in America's
changing future, it could grow even if it hasn't gone public. From small metal buildings on backroads to incubators on
main street to someone's kitchen table office, people are re-inventing, working together and thinking big thoughts. Still.
8:29 am cdt
Wednesday, March 18, 2009
Public Relations: Polishing the Starbucks StarI just read where Starbucks is launching a public relations campaign to polish its image and fight the perception
that it has some of the more excessive pricing around. I for one was surprised to learn that half of its beverages cost less
than $3. Imagine.
I guess that's because I'm usually shelling out for a Grande or a Venti size decaf mocha
with skim milk and a little whip cream. To save money I could order the American coffee with a little whip and go over and
shake some chocolate or cinnamon on top and try to be content.
What I didn't know until just recently
is that you get two shots of expresso in a Grande or a Venti. At least this was the answer that I got when I asked why my
Venti mocha didn't have very much coffee flavor. [I know they must have been perplexed at my question,
because after all I had ordered decaf.]
Well, I digress. Times are tough and Starbucks doesn't want to
become THE item that everyone cuts just because it is viewed as an excess. Starbucks has always been for some what
we marketers refer to as a small luxury, a little indulgence, a small spending splurge that is justified as...okay. I
mean, I even rationalize the calories.
Now, that even little luxuries are going by the wayside, I understand Starbucks'
concern and need for some stepped up public relations. Their idea for a combined priced breakfast menu has good PR potential as
does getting the word out about their $3 and under items...that's good educational PR and bound to get a lot of word
of mouth publicity, which as we all know is the best kind of advertising.
I had my first Starbucks at their first
little shop in Seattle, but now most of the time I have my Starbucks mocha in a Barnes and Noble. And I always
use my B&N card for a little discount.
8:54 pm cdt
Monday, March 2, 2009
Polishing Brand YouI recently read an article from the Winter 2009 issue of The Strategist
which interviews Jerry Wilson one of the co-authors of the book Managing Brand YOU: Seven Steps to Creating Your Most
Successful Self. In the article Wilson describes what we can learn from iconic brands when branding ourselves as individuals.
He says that the first thing to realize is that a brand is merely a promise to a group of target consumers, plus
the experience those consumers have — which results in the relationship that consumers have with that brand. In his words, "It’s a simple equation of promise plus experience equals relationship. So, as a personal
brand, the first question we should ask is, What is our promise to people who matter in our lives, and are we delivering against
that expectation?"
After reading this article I remembered the cover of a Fast
Company issue that I have kept since 1997. The cover of their August-September issue was emblazoned with a graphic representation
looking a little like a Tide detergent logo that yelled out The Brand Called You. That was perhaps one of
the first insights for many to begin thinking of themselves as brands apart from their fast companies.
As the project manager of your own brand you have the future in your hands. It’s empowering because your
job doesn’t define you. Who you are does. That's why I believe that the current economic downturn
will result in many more entrepreneurs who have the courage to be themselves and create the companies that they want to create.
10:14 am cst
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