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Ace Hardware Georgia World Congress Center 7 April 2000.

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Presentation on theme: "Ace Hardware Georgia World Congress Center 7 April 2000."— Presentation transcript:

1 Ace Hardware Georgia World Congress Center 7 April 2000

2 “It means nothing less than the total reinvention of this company.”

3 Jacques’ New New Ford Ford + MSN CarPoint Ford + Yahoo! Ford + Oracle Ford + HP/MCIWorldcom Etc. Etc.

4 Brand Inside Brand Org!

5 RR on Sara Lee “The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

6 “We want to be the air traffic controllers of electrons.” Bob Nardelli, GE Power Systems

7 “UPS used to be a trucking company with technology. Now it’s a technology company with trucks.” Forbes (1-00), on UPS’s $11B spent on IS in the 90s; UPS was Forbes’ “Company of the Year”

8 Brand Inside Brand Work!

9 “Reward excellent failures. Punish mediocre successes.” Phil Daniels, Sydney exec

10 “Every project we take on starts with a question: How can we do what’s never been done before?” Stuart Hornery, CEO, Lend Lease

11 “You really got to me. So many of our information technology projects take on a life of their own, and I know they’ll never end up as more than ‘mediocre successes.’ ” CEO, F100 financial services company (10-98)

12 The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. Michelangelo

13 Brand Inside Brand Talent!

14 Issue Y2K The Great War for Talent!

15 There is no “talent shortage” … if … you are a GPTW* *Great Place To Work

16 Self-control = Engagement = Effectiveness* * “How Pilots Fly the Plane Varies a Lot from Airline to Airline” (WSJ/031400); PD on mbo

17 H.R. to H.E.D. ??? Human Enablement Department

18 Brand Outside Context: No “Commodities”!

19 Quality Not Enough! “While everything may be better, it is also increasingly the same.” Paul Goldberger on retail, “The Sameness of Things,” The New York Times

20 “The ‘surplus society’ has a surplus of similar companies, employing similar people, with similar educational backgrounds, working in similar jobs, coming up with similar ideas, producing similar things, with similar prices and similar quality.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

21 The “10X/10X Phenomenon” 10 Times Better/ 10 Times Less Different

22 “When we did it ‘right’ it was still pretty ordinary.” Barry Gibbons on “Nightmare No. 1”

23 Brand Outside Strategy 1 : Use E-Commerce to Re-invent the Business!

24 Dell’s Web sales … daily ?

25 $35,000,000.

26 I-24 to 1-28: BizRate.com Online Shopping Index [Consumer Goods] 52 Weeks: +622% Source: The Industry Standard/02-00

27 “In the network economy, the Website becomes the company’s primary interface to the customer. The user interface becomes the marketing materials, store front, store interior, sales staff and post- sales support all rolled into one.” Jakob Nielsen, Designing Web Usability

28 Welcome to D.I.Y. Nation! “Changes in business processes will emphasize self service. Your costs as a business go down and perceived service goes up because customers are conducting it themselves.” Ray Lane, Oracle

29 Shop in your Underwear Source: SM’d logo for www.ae.com ae = American Eagle Outfitters

30 Anne Busquet/ American Express Not: “Age of the Internet” Is: “Age of Customer Control”

31 B2B 1999 – 2004: 50X 2004: $7.4 Source: GartnerGroup (per Reuters 1-26-00) T

32 GM/Ford/DaimlerChrysler (02-27) Auto parts supply “Co.” $240B (+$500B) I.P.O.

33 W.W. Grainger* 2X phone/fax *$220B “MRO” market (per Business 2.0/02-00)

34 “Where does the Internet rank in priority? It’s No. 1, 2, 3, and 4.” Jack Welch

35 There are 2 Kinds of … Defense* vs. Offense** *Fend off upstarts. ** Reinvent our marketspace!

36 Getting Right Down to Brass Tacks … Bricks & Mortar? Clicks & Mortar? All Clicks All the time?

37 #1: ANY IDIOT WHO THINKS CONSUMERS ARE GOING TO GIVE UP THE IN-STORE SHOPPING EXPERIENCE FOR THE INTERNET IS JUST THAT. AN IDIOT.

38 #2: ANY IDIOT WHO THINKS WE ARE STILL GOING TO BE HANGING OUT IN STORES 15 YEARS FROM NOW IS JUST THAT. AN IDIOT.

39 TP: ANY IDIOT WHO THINKS THEY KNOW WHICH ONE OF THE ABOVE TWO STATEMENTS IS TRUE IS THE BIGGEST IDIOT OF ALL.

40 No Room for “Competent”* Sorts Beer Wholesalers Personal Trainers [FitLinxx] Financial Planners Car Dealers * LVA, “M”VA … vs. HVA [Web-enhanced]

41 Brand Outside Strategy 2 : Women Rule!

42 ????????? Home Furnishings … 94% Vacations … 92% Houses … 91% Bank Account … 89% Health Care … 75% Etc.

43 48% working wives > 50% 80% checks 61% bills 53% stock (mutual fund boom) 43% > $500K 95% financial decisions/ 29% single handed

44 Women … 49% of Web users; 6 of 10 new users; 83% of wired women are primary decision makers for family healthcare, finances, education. Source: Business Week (11-99)

45 $3.3T + $1.5T = $4.8T 9M/27.5M/$3.6T

46 Yeow! 1970 … 1% 2000 … 50%

47 OPPORTUNITY NO. 1!

48 Carol Gilligan/ In a Different Voice Men: Get away from authority, family Women: Connect Men: Self-oriented Women: Other-oriented Men: Rights Women: Responsibilities

49 FemaleThink/ Popcorn “Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons. “He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

50 How Many Gigs You Got, Man? “Hard to believe … Different criteria” “Every research study we’ve done indicates that women really care about the relationship with their vendor.” Robin Sternbergh/ IBM

51 Marketing to Women: Help Them Save Time! 80% … work 86% … cook 58% … run errands with kids 38% … take child to school 21% … go to the gym 21% … take outside classes

52 27 March 2000 : email to TP from Shelley Rae Norbeck “I make 1/3 rd more money than my husband does. I have as much financial ‘pull’ in the relationship as he does. I’d say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!”

53 Speaking of Enormous [Missed] [Huge] Opportunities...

54 74/55 “At each stage of their lives, the needs and desires of the baby boomers have become the dominant concerns of American business and popular culture. If you can anticipate the movement of the baby-boom generation’s life-span migration, you can see the future.” Ken Dychtwald, Age Wave

55 Aging/“Elderly” 2X growth rate $$$$$$$$$$$$ “I’m in charge!” Good source: Ken Dychtwald, Age Wave

56 Priorities: Aging/“Elderly” Experiences … Convenience … Comfort … Access … Respect!

57 Brand Outside Strategy 3 : It’s the Experience!

58 “Experiences are as distinct from services as services are from goods.” Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

59 “The [Starbucks] Fix” Is on … “We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.” Nancy Orsolini, District Manager

60 Experience: “Rebel Lifestyle!” “What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.” Harley exec, quoted in Results-based Leadership

61 Marketing Aesthetics “managing aesthetics experiences” … “aesthetics strategy” … “marketing of sensory experiences that contribute to the organization’s or brand’s identity” … “mapping strategic vision to sensory stimuli” Source: Marketing Aesthetics, Bernd Schmitt & Alexander Simonson

62 Look + Feel + Taste + Touch + Sound + Smell + Texture + Color + Typeface + Etc. = EXPERIENCE* * Bernd Schmitt & Alexander Simonson, Marketing Aesthetics

63 “Experience”/ Marketing Aesthetics/ Design = P.O.V., not P.O.P.

64 Brand Outside BRAND POWER!

65 Brand It! Now, More Than Ever! “The increasing difficulty in differentiating between products and the speed with which competitors take up innovations will assist in the rise and rise of the brand.” Gillian Law and Nick Grant, Management [New Zealand]

66 Brand = You Must Care! “Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.” Tom Chappell, Tom’s of Maine

67 “In the funky village, real competition no longer revolves around marketshare. We are competing for attention – mindshare and heartshare.” Kjell Nordstrom and Jonas Ridderstrale, Funky Business

68 Brand Leadership Lead Out Loud!

69 Brand Leadership! “A key – perhaps the key – to leadership is the effective communication of a story.” Howard Gardner Leading Minds: An Anatomy of Leadership

70 Ann Richards’ Dogma Show up! Know your message! PUT YOURSELF AT RISK EVERY DAY!

71 Brand Leadership: ENTHUSIASM RULES! “I am a dispenser of enthusiasm.”/ Ben Zander


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