Friday, March 20, 2009

I was wrong - I succumb to conventional thinking sometimes

Sultry Sally chips are available nationally in Woolworths. Woolworths launched their own (Select) brand of low fat chips in direct competition. I actually welcomed their entry because two of us makes a "Better For You" category. Years ago when I did my MBA we talked about the "Ice Cream Sellers on Bondi Beach". One ice cream seller on Bondi Beach is a vendor; two is a market. Two ice cream sellers will generate more revenue each than one will.

But Woolworths supported the launch of their product with more than $2m of advertising support including prime time TV. The result was that we have been suffering a sales decline for a number of weeks as people switch to the Woolies low fat offering.

The rub here is that if we are to maintain the Woolworth's listing we need to increase sales to demonstrate our worth - difficult when our 'landlord' is also our competitor. It seemed that some traditional advertising was required on our part and in fact Woolworths almost implicitly demanded it.

I am not a huge fan of traditional advertising for new brand launches. I believe people are too busy and not really listening (another blog pot will be necessary to explain why). So to be forced into a position where I have to take a traditional, main media approach is anathema.

This was quickly compounded. I guess if most marketers were asked to focus on traditional advertising these days (and TV was too expensive) the focus would quickly shift to online, and specifically to either search or social media. I have some partners in the business who are most definitely 'old media' types and wouldn't countenance online in a month of Sundays.

One of my partners (Nick Moraitis) has a great relationship with an old advertising war horse - a inductee into the Australian advertising hall of fame - John Singleton (AKA 'Singo"). Singo owns an AM (!!) radio station in Sydney - 2GB. Nick decided, "Timmy, we need to go and see Singo; he'll help us out on 2GB and everyone listens to 2GB".

My heart sank. Strategically, I couldn't think of anything worse. We are talking radio; worse, AM radio; worse still, talk-back radio; even worse, a radio station that everyone knows is only listened to by a few old punters - way, way off target and brand for us.

But I met with Singo and Nick and Ray Hadley, one of their Jock presenters. Most of the discussion revolved around race horses ( a shared interest for all of them), but the bits that didn't and were comprehensible to me, were equally scary - sort of a "Trust us mate, we'll see what we can do" approach.

No, no, no thought I, this is all wrong. But Nick persisted and prevailed. "They are mates", he said, "Everyone listens to 2GB; it's the highest rating station in Sydney".

I braced for the impending disaster as the ink dried on a 6 week deal with 2GB.

I couldn't have been more wrong.

Our phones have been ringing off the hook; NSW Woolworths stores have been emptied of product. It is working like nothing I have seen before. I have been forced to eat my words and humble pie and I couldn't be more grateful.

Every bit of conventional thinking says this can't work - wrong demographic; wrong for the brand; wrong medium; just plain wrong! - but it has.

I love the fact that some old dogs can still teach us 'young 'uns' some old new tricks; I love the fact that the old ways still count for something; I love the fact that I can still be surprised, be wrong and learn from it.

The lessons? Respect and value your elders; be open minded; be prepared to try different things; don't be instantly dismissive; and finally - you are a champion Ray Hadley!

9 comments:

Anonymous said...

Great story, but why has it worked? Who are buying the chips? Is it the old people on 2GB?

Tim Pethick said...

No doubt in part it is the 'old people' on 2GB, but it is also:

1. Whilst still predominantly 25+. 2GB has a wider audience than anticipated.
2. We are primarily doing live reads and the announcers are hugely influential (they say; the audience does)

Anonymous said...

Hi Tim

Thanks for sharing this. It's an interesting story and I love happy endings!

Some stuff you just can't know until you're older; real world experience delivers a certain pragmatic wisdom.

The older I get (and the more I realise what I didn't know *at the time*), the more time I have to listen to, and/or seek out the advice of, my 'elders'.

Cheers
Katie

Rog said...

Hey Tim,

Thanks for sharing such a great story. I am a traditional suit who is moving onto the digital world so I can relate a lot to some of the things you're saying.

I saw samples of your products on the North Bondi Classic Swim goodie bag and thought it was pretty unusal (chips being unhealthy and all) but a good idea nevertheless as the target would've been spot on.

After reading this post, I couldn't help but think that your radio 'strategy' may be working but do you think you are putting your products in the hands of the right people? Is this what you envisaged for the brand or do you think that you may have to rethink not only where/how you communicate but also who your consumers are?

Perhaps it is not so much that radio is working for you but more so that it is where the people that are more interested in your product are?

What do you think?

Adamski1971 said...

As one of the copywriters at 2GB (although I didn't write these particular scripts) I can tell you for a fact that 2GB and it's sister station 2CH are powerful advertising weapons. Even poorly written client copy can still get staggering resaults, while well crafted radio scripts, complimented with a good offer or USP work their 'you know what's'off!
A massive misconception is that 2GB is just oldies...not so. A lot of listeners are around my age group 35-39 and also enquiries about products come thick and fast from listeners. having spent about 9 years working in FM and about 8 in AM radio, AM leaves FM for dead on recall and TSL. (time spent listening). Also listeners to AM radio are far more loyal and they also have enormous belief in the announcers and what they promote.
Adam W - Senior Creative MRN

Martyn said...

I am equally gobsmacked and delighted that the GB relationship has paid dividends.
Maybe it's no more mysterious than an older more refined palate is more receptive.
Sultry Sally could be the dark chocolate of chips

mohammad2009 said...

I think you are wrong all the time Tim

- You know how hard it is to get a DA for a wall thru Balmain council... but oh no the Supermarket are idiots...

- You know that everyone rushing at christmas and businesses just get to $10ph office temp to send out the Christmas presents ... but oh no even people who send you gifts are idiots...

you even talk down to your new customers "they say; the audience does"

Tim Pethick said...
This comment has been removed by the author.
Tim Pethick said...

Interesting perspective Mohammad. I am sure I am often wrong (perhaps about some of the things your raise)but I doubt very much that I am "wrong all the time".

It is only through being wrong that we start to learn what may be right.

The important thing is that we keep learning.

Food for thought on two of your examples though:


"they say; the audience does" is not 'talking down' to my new customers it is giving them a voice. I have spoken with a number of our new customers who have said exactly that.

Yes, I know many businesses probably let temps buy Chrissy presents. But firstly let's not disparage the temps ($10phr or not); and secondly, my point still stands - if a job is worth doing it is worth doing well.