Ace HardwareGeorgia World

Congress Center

7 April 2000

“It means nothing less than the total

reinvention of this company.”

Jacques’ New New Ford

Ford + MSN CarPointFord + Yahoo!Ford + Oracle

Ford + HP/MCIWorldcomEtc.Etc.

Brand Inside

Brand Org!

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.”

“We want to be the air traffic controllers

of electrons.”Bob Nardelli,

GE Power Systems

“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”

Brand Inside

Brand Work!

“Reward excellent failures. Punish

mediocre successes.”

Phil Daniels, Sydney exec

“Every project we take on starts with a question:

How can we do what’s never been done

before?”Stuart Hornery, CEO, Lend Lease

“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)

The greatest dangerfor most of us

is not that our aim istoo high

and we miss it,but that it is

too lowand we reach it.

Michelangelo

Brand Inside

Brand Talent!

Issue Y2K

The Great War for Talent!

There is no “talent shortage” …

if …

you are a GPTW*

*Great Place To Work

Self-control = Engagement = Effectiveness*

* “How Pilots Fly the Plane Varies a Lot from Airline to Airline” (WSJ/031400);

PD on mbo

H.R. to H.E.D. ???

HumanEnablement Department

Brand Outside

Context:No “Commodities”!

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

“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

The “10X/10X Phenomenon”

10 Times Better/

10 Times Less Different

“When we did it ‘right’ it was still pretty

ordinary.”

Barry Gibbons on “Nightmare No. 1”

Brand OutsideStrategy 1:

Use E-Commerce to Re-invent the

Business!

Dell’s Web sales … daily ?

$35,000,000.

I-24 to 1-28: BizRate.com Online Shopping Index [Consumer Goods]

52 Weeks: +622%

Source: The Industry Standard/02-00

“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

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

Shop in your Underwear

Source: SM’d logo for www.ae.comae = American Eagle Outfitters

Anne Busquet/ American Express

Not: “Age of the Internet”

Is: “Age of Customer Control”

B2B1999 – 2004: 50X

2004: $7.4Source: GartnerGroup (per Reuters 1-26-00)

T

GM/Ford/DaimlerChrysler (02-27)

Auto parts supply “Co.”$240B (+$500B)

I.P.O.

W.W. Grainger*

2X phone/fax

*$220B “MRO” market (per Business 2.0/02-00)

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

There are 2 Kinds of …

Defense*vs.

Offense**

*Fend off upstarts.**Reinvent our marketspace!

Getting Right Down to Brass Tacks …

Bricks & Mortar?Clicks & Mortar?

All Clicks All the time?

#1: ANY IDIOT WHO THINKS CONSUMERS ARE GOING

TO GIVE UP THE IN-STORE SHOPPING

EXPERIENCE FOR THE INTERNET IS JUST THAT.

AN IDIOT.

#2: ANY IDIOT WHO THINKS WE ARE STILL GOING TO

BE HANGING OUT IN STORES 15 YEARS FROM

NOW IS JUST THAT. AN IDIOT.

TP: ANY IDIOT WHO THINKS THEY KNOW WHICH ONE

OF THE ABOVE TWO STATEMENTS IS TRUE IS THE BIGGEST IDIOT

OF ALL.

No Room for “Competent”* SortsBeer Wholesalers

Personal Trainers [FitLinxx]Financial Planners

Car Dealers

* LVA, “M”VA … vs. HVA [Web-enhanced]

Brand Outside

Strategy 2:Women Rule!

?????????

Home Furnishings … 94%Vacations … 92%

Houses … 91%Bank Account … 89%

Health Care … 75%Etc.

48% working wives > 50%80% checks

61% bills53% stock (mutual fund boom)

43% > $500K95% financial decisions/

29% single handed

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)

$3.3T + $1.5T = $4.8T9M/27.5M/$3.6T

Yeow!

1970 … 1%

2000 … 50%

OPPORTUNITY NO. 1!

Carol Gilligan/ In a Different Voice

Men: Get away from authority, familyWomen: Connect

Men: Self-orientedWomen: Other-oriented

Men: RightsWomen: Responsibilities

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.”

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

Marketing to Women: Help Them Save Time!80% … work86% … cook

58% … run errands with kids38% … take child to school

21% … go to the gym21% … take outside classes

27 March 2000: email to TP from Shelley Rae Norbeck

“I make 1/3rd 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!”

Speaking of Enormous

[Missed] [Huge] Opportunities ...

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

Aging/“Elderly”

2X growth rate$$$$$$$$$$$$

“I’m in charge!”

Good source: Ken Dychtwald, Age Wave

Priorities: Aging/“Elderly”

Experiences … Convenience … Comfort … Access … Respect!

Brand Outside

Strategy 3:It’s the Experience!

“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

“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

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

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

Look + Feel + Taste + Touch + Sound + Smell +

Texture + Color + Typeface + Etc. = EXPERIENCE*

* Bernd Schmitt & Alexander Simonson, Marketing Aesthetics

“Experience”/ Marketing Aesthetics/

Design =

P.O.V., not P.O.P.

Brand Outside

BRAND POWER!

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]

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

“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

Brand Leadership

Lead Out Loud!

Brand Leadership!“A key – perhaps the key –

to leadership is the effective

communication of a story.”

Howard Gardner Leading Minds: An Anatomy of Leadership

Ann Richards’ DogmaShow up!

Know your message!

PUT YOURSELF AT RISK EVERY DAY!

Brand Leadership:ENTHUSIASM RULES!

“I am a dispenser of enthusiasm.”/ Ben

Zander