One management lever brand owners have in tough economic times is to look at brand portfolio rationalization. Of course, that is already on the table for the US auto industry. Between them, General Motors, Ford Motor and Chrysler sell 112 different car and truck models through 15 brands in the United States. While the top three Japanese automakers — Toyota, Honda and Nissan — offer 58 models combined sold through seven brands. Brand rationalization will be a key part of any auto bailout plan - up there with executive compensation and union concessions. Retail brand formats, consumer product extensions will be examined, the latter because of production, packaging, and shipping costs. Value will trump variety in the majority of categories and that will mean making smart decisions in the portfolio not only short-term but for when the economic cycle reverses itself.


Jeff Swystun, Chief Communications Officer, DDB Worldwide

Posted on December 8, 2008 9:00 AM | Permalink | Comments (5)

On June 9th of this year, I posted a note to this blog on being a Marketing Contrarian. This was in response to economic signs and how historically marketers have reacted to downturns. I must admit that when the global economy really got hit this autumn, I had not been so clairvoyant to see the extent, depth and pace of the impact. It did prompt us at DDB to write a paper called Capturing Opportunities in Challenging Times covering in detail marketing and advertising in a recession (available for download from this site). The response to the paper has been overwhelming. Readers have enjoyed the papers four main sections: cut versus invest, brands as long-term assets, consumer price/value equation, and steps to take when managing brands in a downturn. One comment among many received was from a Vice-President of Marketing at a consumer products company, who shared, "This is my second recession and the primary lesson I have from the first one is to think of my business as a hot dog stand – view it as a much simpler business. Do I react by selling lower quality hot dogs, cut back on condiments, stop smiling and chatting with customers, raise or lower prices willy nilly, take away napkins? No I do not. I leverage equities I have built up over time, be prudent in my own purchasing and other processes, and offer value, value, value."


Jeff Swystun, Chief Communications Officer, DDB Worldwide

Posted on December 1, 2008 9:51 PM | Permalink | Comments (9)

The statistics are in. The National Retail Federation (NRF) estimated that U.S. consumers spent $372.57 on average, an increase from 7.2% from a year ago. Which at first glance seems positive, however, come Saturday most retailers were reporting a significant drop in traffic. People pursued gate crasher specials, bargains, expansive sales and then stayed home. This fits with DDB’s view of the economic crisis – consumers are changing their definition of value on an almost daily basis as they react to economic news and the state of their own wallets and purses. Going forward, the NRF is predicting a 2.2% increase in holiday shopping sales this year, the smallest increase since 2002. Companies that know their consumers and prospective consumers can still do better in their category than their competitors if they chart the consumer price/value equation outlined in DDB's paper, Capturing Opportunities in Challenging Times. Two for one sweaters, heavily discounted flat screens, 50% off sales cannot sustain a company or brand for a prolonged period of time. The motivation to reduce inventory, generate flat or some sales growth while reacting to consumer confidence cannot be ignored but neither can the long-term impact on the health of the brand.


Jeff Swystun, Chief Communications Officer, DDB Worldwide

Posted on December 1, 2008 9:51 PM | Permalink | Comments (3)

Mobile Connectivity has been redefined. Long gone are the days when the only novelty of the mobile phone was being able to talk or message while on the go. Today mobile telecommunications are offering an integrated lifestyle combining work and play, social and professional in ways never experienced by any generation ever before. What are such examples of convergence that you are experiencing in your part of the world? How is the use of mobile phones being redefined?

Picture this example - A typical day in a converged world! Checking emails without a laptop, PC or an internet café. Making gift buying decisions on the go by taking pictures from the mobile phone camera and sharing them as MMS messages instantly. Watching streaming videos on YouTube or better yet, watching Live TV over DVB-h. Capturing something unusual instantly and sharing it with the world using flickr on the mobile phone, geotagging them with GPS coordinates for added perspective. Meeting new people through Bluedating whereby a Bluetooth enabled network (Scatternet) matches and connects people in the vicinity based on preset preferences. Downloading RSS feeds onto your mobile and catching up with the latest on the web from hot new music, to stock market updates, to favorite blogs. Instantly micro-blogging and updating your boss, your friends or family on whatever you are doing now using Twitter or Facebook, from being stuck in a traffic jam to making a stop for coffee, updates can be instant and continuous. Traveling to new places and navigating through voice assisted GPS on the go be in a car or on foot. Sitting on a beach apparently alone but connected through fring IMing away or better yet playing a multiplayer game like “Call of the Pharaoh” with a bunch of friends. Downloading and listening to music as you soon as you hear about it on FM using the built-in mobile phone radio. Tracking miles walked or run using an in-built Pedometer. Using Location Based Services to locate ATM’s or restaurants or simply keeping a track of friends. If that is not enough using services like EDY (Euro, Dollar and Yen) to make transactions at select stores, activating vending machines or buying train tickets, all using a mobile phone replacing the need to carry cash or all kinds of credit/debit cards.

Wait a minute! Are we forgetting something? Using mobile phones to make voice calls of course! Please let me know your thoughts?

Posted on August 22, 2008 2:33 PM | Permalink | Comments (3)

Having now accumulated over 20 years of experience in global marketing, I have witnessed and participated in a few business cycles that have had significant impact on the efficacy of marketing. One that is unbelievably predictable occurs whenever the economy slows. The first reaction from the lionshare of companies is to cut marketing, advertising and business development budgets.

Lets think about that for a moment. Sales are down so lets reduce the spending on activities that are primarily responsible for sales! Imagine companies that actually maintain or even increase their spend in these areas during a slowdown. Their voice would be louder as many competitors would be less vocal. As well, their spend may be more efficient if suppliers and partners work with them to maximize their impact during the downturn.

So why do companies continue to cut these activities – because it is easy. What is harder is to capture the opportunity a slow down provides. Tom Peters has said, "Progress is mostly the product of rogues". Rogues or contrarians, these companies and leaders may prosper much more by making brave and intelligent decisions to invest and rise above the clutter rather than join their competitors in the same predictable and stagnant strategy.


Jeff Swystun, Chief Communications Officer, DDB Worldwide

Posted on June 9, 2008 9:50 PM | Permalink | Comments (3)

We have had such fun with the Business Communications blog and have been extremely pleased with the visits and comments since launch. We want to keep the content fresh and frequent so are taking a new approach. I will be inviting more experts within DDB to provide their insights and points of view. This will give you exposure to a greater range of thought while covering regional and industry trends. Keep coming back because the content will be great.
--Jeff Swystun

Producing a music CD may seem like the last thing a company that manufacturers bleach would ever do, but if you listen to Clorox consumers it makes perfect sense.

And that is exactly what DDB San Francisco did. Postings on You Tube, multiple blogs, and an unprecedented number of emails from consumers asking where they could get the music from Clorox commercials, was enough to convince us to approach the client with the idea of creating a CD. And it took Tarang Amin, VP of Clorox Global Franchise about two seconds to agree to do it.

Entering the music business for the first time, The Clorox Company ventured into un-chartered territory, but together we were able to navigate the terrain. Our team collaborated with music houses to extend original tracks from various thirty second commercials, named the CD "The Blue Sky Project" and designed the original album cover art. Both agency and client agreed that half of the profits from the CD should be given to a charity. Seeing that the Clorox Brand was focused on healthier lives and specifically the well-being of children, we identified the perfect beneficiary: MuST (Music In Schools Today), a nonprofit organization that supports music programs in low income public schools (mustcreate.org).

The Blue Sky Project was released in early March and is now available for purchase on iTunes® and 50+ other online retailers for $6.93. In addition to the original compositions, the CD includes recordings from independent ,artists featured in commercials. A cool story that further proves that consumers today are both channel and audience for marketing messages.

Lisa Bennett, Chief Creative Officer & Managing Partner, DDB San Francisco

Posted on May 12, 2008 9:33 PM | Permalink | Comments (1)

We currently have a question on our homepage asking that when you have a great brand experience, do you tell others about it.

No real surprise that approximately 80% say that they do. It is kind of funny that we are largely surprised these days when something truly surpasses our expectations in the use of products and services. For the most part, it seems we get what we expect and only that. And in some highly emotional cases we can be deeply disappointed.

The "brand experience" has been talked about for years. It is identified as the key differentiator, yet, most experiences are of the "me too" variety. With precious few standing out when that is the aim of branding — what is going wrong? Why do organizations have such a difficult time consistently delivering differentiation and a brand experience that creates advocates?

Jeff Swystun, Director of Global Communications, DDB Worldwide

Posted on March 26, 2008 5:39 PM | Permalink | Comments (1)

A recent ANA study on marketing re-organizations demonstrates that all that activity might reflect a lot of busy work.

Centralization and integration seemed to be the main pursuit, most probably for cost savings and messaging consistency. However, only 13% of senior marketers say they're "very satisfied" with their companies' marketing structures. Here are some key stats from it:

• 29% of marketers are undergoing reorganization and another 39% having done so within the past two years (sample size 132)


• Fewer than half (48%) of respondents said structural changes to marketing had actually improved their companies' marketing abilities during the past two years. Another 17% said restructuring had worsened abilities, and 36% saw no change


• 49% of respondents believe marketing has become more centralized the past two years, and 52% described their companies as centralized vs. 30% decentralized and 18% as a hybrid

Posted on March 11, 2008 2:42 PM | Permalink

I learned years ago in traditional management consulting at Price Waterhouse, that you solve problems by listening.

This is so true in communications. I know the most impressive communicators are great listeners, aggregators of information, makers of relevance, and of course, entertaining when they do communicate. The more challenged someone is in communications the more the root cause may be poor listening skills. These people do not listen because:

they "know" what they are going to hear

they seek confirmation, not information

what's being said gets in the way of what needs be said

In effect, they have already made their conclusions and have run to a solution that may not be helpful. Communication professionals need to be constantly aware of their own biases and perceptions (control your biases and validate your assumptions). These days in a time of speed and overwhelming communication clutter, we need to slow down and listen to attain the nuance and real issues faced by customers, colleagues and others. Before you just react (ready, shoot, aim), think about the following to help you listen better:

put yourself in the other person's shoes

keep the conversation on what the speaker says, not on what interests you

spend more time listening than talking

pay attention, never become preoccupied with your own thoughts when others talk, take brief notes to concentrate on what is being said

do not finish the sentence of others

ask questions, but do not answer questions with questions

plan responses after the other person has finished speaking, not while they are speaking

summarize - walk the person through your analysis

The result is you will be better communicators. In fact, the applications are endless. Being a better listener can improve customer service, new product and service development, media relations, social responsibility efforts, etc. Do you have any examples to share?

Posted on February 25, 2008 4:33 PM | Permalink | Comments (1)

This is a call for help!

I was asked for a cheat sheet on what makes for engaging communications. I am looking to build the definitive list. Among my current notables are engaging communications must be relevant to the target audience, different from competing communications, creatively delivered in channels that the target audience uses, etc. Can you help me build the list?

Posted on February 20, 2008 4:32 PM | Permalink | Comments (4)