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June 2005

RELATIONSHIPS | RESOURCES | RESULTS

From L to R:

Rod BrownNancy HakkinenSandy Gonzalez

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Now Available for Corporate SalesFor more information contact your promotional products distributor or Idea Workshop

at 888-831-0401 e-mail: [email protected]

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4 Brilliant Results | June 2005 www.brilliantpublishing.com

THE 5TH “P” OF MARKETING…20How Payments Drive Billions. An insightful interview withBrad Singer, Vice President of Products and Markets for

PaymentOne® Corporation. An online industry expert aswell as one of Forbes online “Top Ten to Watch in 2005”.

By MaryAnne Morrill

CRITICAL COMPONENTS OF AN EFFECTIVEE-MAIL MARKETING PROGRAM…30

The components that matter most to ensure your onlinecommunications achieve your goals.

By Cathy Cain-Blank

THE 2005 E-MAIL PRIVACY SURVEY REPORT 34A study to gauge the awareness factor of email privacy

with the typical email newsletter subscriber.By ReleMail

THE GROWTH IN CORPORATE BRAND LICENSING 40

Successful brands don’t stand still; they develop accordingto their vision, values and competencies. Find out the deli-

cate balancing act between minimizing damage to brandequity and maximizing the opportunity to be a market leader.

By Adam Bass

MAKING THE JUMP 48Migrating to Emerging Platforms Help

Retailers Make a Splash.By John Burnell

EXPOSING YOUR BRAND INTERNALLY 56If a brand is not completely understood and tightly

patrolled inside an organization, it’s bound to unravelthe minute it leaves the front door.

By Alycia de Mesa

Contents

8 20 78

columnsPUBLISHER’S LETTER 6

ADVERTISING INDEX 74Get FREE information from this

month’s advertisers.

CALENDAR 76

THE LAST WORD 78Brilliant Results talks to Mary AnnDavidson, Oracle's Chief Security

Officer, about technology and security ofthat critical item - the company database.

OFF THE CUFF 82A little bit of challenging tech trivia

that will test your knowledge.

HOT PRODUCTS…THINGS WE LOVE 60

Brilliant Results previews a treasuretrove of exciting products.

WHAT WORKS: 66Successful Case Studies for your

next powerful promotion.

COVER STORY 8DIRECT MARKETING IN THE TECH SECTOR

An exclusive interview with Rod Brown, promotional merchandise industry legend, and now CEOof Made to Order. A unique insight into working with technology companies over the last 20 years.

TMbrilliant resultsVol. 2, No. 6

features departments

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They’ll look like Tiger. Even if they putt like Larry from HR. Chances are, nobody you buy for can golf quite like this guy.

But how they dream. So let them dream bigger. Order Nike

Golf apparel and equipment. From balls to jackets, bags to

umbrellas, the full line is waiting to tee up your logo.

Why Nike Golf? On championship courses everywhere, we’ve

fast become the brand of choice for many of the world’s top

pros. Which means, everyone who plays golf will appreciate

the chance to wear and use our gear.

From the CEO with a 2 handicap, to the guy who spends

more time in the rough than on the fairway.

Visit our new corporate sales site to find Nike Golf apparel,

equipment and accessories. It’s all here.

nikecorporatesales.com

Broder Brothers Gold Bond Golf Plus Par-One Pro Golf Premiums Samco Tee-OffNES Ball Pro

45714_NikeGolf_107.indd 1 2/23/05 10:37:22 AM

BR0305_Section03 2/23/05 1:22 PM


Publisher’s Letter Brilliant Publishing LLC9034 Joyce Lane

Hummelstown, PA 17036Ph: 717.608.5869Fax: 717.566.5431

PUBLISHER / ADVERTISING

Maureen [email protected]

717-608-5869

EDITORIALEditor in Chief

MaryAnne Morrill

Senior EditorsMichelle Donofry, Pierce Roberts

Style EditorCharity Plata

Asst. EditorMildred Landis

Contributing Writers...Adam Bass, Robbie Burkett, John Burnell, KevinBush, Cathy Cain-Blank, Boomer Dunn, LarryHemley, Sr., Kelley McGowan Alycia de Mesa,

RELEMAIL

PRODUCTION / DESIGNArt Director

Percy Zamora

Photographer Cover Story©2005 John Padlo

Brilliant Results is published monthly by BrilliantPublishing LLC, 9034 Joyce Lane Hummelstown PA 17036(717) 608-5869; Fax# (717) 566-5431. Postage paid atMechanicsburg PA and additional offices. POSTMASTERplease send address changes to Brilliant Results, 9034Joyce Lane, Hummelstown PA 17036. Volume 2. Number 6.Brilliant Results subscription rates: one-year $120; Canadian$160 USD; one-year foreign $225 USD. All subscriptions arenon-refundable. Copyright © 2005 Brilliant Publishing LLC.All rights reserved. The publisher reserves the right toaccept or reject any advertising or editorial material.Advertisers, and/or their agents, assume the responsibilityfor any claims against the publisher based on the advertise-ment. Editorial contributors assume responsibility for theirpublished works and assume responsibility for any claimsagainst the publisher based on published work. No part ofthis publication can be reproduced in any form or by elec-tronic or mechanical means, including information storageand retrieval systems, without written permission from thepublisher. All items submitted to Brilliant Results becomethe sole property of Brilliant Publishing LLC. Editorial con-tent does not reflect the views of the publisher. The imprints,logos, trademarks or trade names (Collectively the “Marks”)displayed on the products featured in Brilliant Results are forillustrative purposes only and are not available for sale. Themarks do not represent the implied or actual endorsementby the owners of the Marks of the product on which theyappear. All of the Marks are the property of the respectiveowners and is not the property of either the advertisersusing the Marks or Brilliant Results.

Let’s talk Tech! SURVEYS SHOW that some 78% of shoppingcarts are being abandoned at Internet check-out counters, so we decided to talk to theexperts at PaymentOne® about the 5th P ofMarketing – payment. The resulting interviewis filled with information and suggestions formaking the payment process as frictionless aspossible. Brad Singer, PaymentOne’s Vice President of Products andMarkets, also provided insight into the marketing strategies that aForbes “Top Ten to Watch in 2005” company utilizes to achieve thatlevel of success in the world of bits and bytes.

Then there are those nasty database security concerns that havebecome almost a daily part of the national news. To get the insidescoop on database security, we went to the world’s premier databasecompany, Oracle®, and spoke with Mary Ann Davidson, Oracle’s ChiefSecurity Officer. Her candid answers to tough security questions com-bined with her real world suggestions for improving company databasesecurity are a must read for every member of any organization that hasa database – in other words everyone of our readers and their staff.

Our cover story this month features Rod Brown, the entrepreneurialgenius behind the success of Made To Order. MTO is one of the premier promotional products companies to the technology sector.Through his interest in and use of cutting-edge technology, he is elevating the professionalism and impact of promotional merchandiseuse in this ahead of the curve area of the marketplace.

Finally, Brilliant Results is processing some cutting-edge technologyadvances of its own – Brilliant Results is going e – that is e-zine! Onour website www.brilliantpublishing.com over the next month is anelectronic version of Brilliant Results Magazine. This amazing technolo-gy enables site visitors to read (electronically) not only the currentissue of the magazine online from front to back, but also previousissues. So come check us out and do not forget to bookmark this site!Yes TECH, it just makes one want to

Anticipate Results,

[email protected]

TM


brilliant resultsbrilliant results

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FOR THOSE OF YOU OVER THE AGE of 40,what you’re about to read is going to take youback in time in a way that is likely to leave youboth laughing and shaking your head in amaze-ment. For those of you under 40, you may nothave had an experience like the one you areabout to read, but it is certain to make youthankful for the technology we all sometimescurse, or at least take for granted these days.

“I graduated high school early with fire inmy gut and way too much wisdom and experi-ence at the ripe old age of 17 for any college topossibly teach me something new. So I sold my‘bad ass’ Camaro to get the start up capital Ineeded to launch my first entrepreneurial ven-ture – a waterbed manufacturing company,”said Rod Brown, promotional merchandiseindustry legend, and now CEO of Made toOrder, a leading firm in Pleasanton, California.“Looking back, the business actually did OK.Over the next five years, we grew the companyto 35 employees and a few million in sales.Then my first big, real world business challengehit. My partners and I were not getting alongso I decided to make a move to buy them out…only it didn’t quite work out that way. Theywound up squeezing me out, officially giving memy baptism into the hard, cold reality of theworld of business.

Fast Forward to 1980, our boy wonder readspiles of career-help books that left him with theimpression that one should first determine wherethey want to live, and then decide how theywant to make a living… so young Mr. Brown setout for the great city by the bay – San Francisco.

“And there I was… 25 years old, withoutthat college degree, and no real resume tospeak of. I landed about the only job I couldfind, which was selling “chachkies” for the JackNadel company in Oakland, and here is whatmy average day would look like (hang on, we’regoing for a Camero-like ride down pre-technolo-gy memory lane); I would set out in the morningdetermined to sell something… anything… toanyone. I would drive my $10,000 Honda to alocal business park, and start walking! It couldbe 20, 30 or more cold calls a day. I always hada roll of dimes in my pocket - to make calls froma pay phone of course - since there were no cellphones. There was no Internet to do researchbefore just showing up on their doorstep. Nofaxes to send a quote, no computers to keep adata base (in fact, no such thing as a database),no Palms to keep appointments, no Blackberriesto send or pick up an e-mail while on the road…there wasn’t even e-mail if a guy did have athing called a Blackberry. To put the situationin complete perspective – there wasn’t evenFedEx to expedite something to your client,should somebody have a rush order, which ofcourse never happened!

Now IF I was lucky enough to have somepoor soul interested in one of my wares, I wouldactually drive back to the office, have one of thegirls in the ‘secretarial pool’ type up an order,enclose a hard copy ‘ad slick’ (a.k.a. black &white camera ready artwork), put it in an enve-lope, lick & affix a stamp and send it off withthe good ol’ Postmaster. If everything went justright, that envelope would show up at the

DIRECT MARKETING IN THE TECH SECTOR

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Brilliant Results | June 2005 9www.brilliantpublishing.com

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factory about a week later, then one of their ‘secretaries’would enter the order (undoubtedly with something likea Smith Corona typewriter), then hand deliver it to thefactory floor, where someone would produce it and ultimately ship it. “If everything went smooth, our clientwould have what they ordered about 30-45 days later.Now keep in mind… this was only the early eight-ies…1980, not the 1890’s. It’s pretty stunning to thinkhow quickly times have changed,” said Brown.

Starvation is a great motivatorEnter technology. “So there I was, living in the Bay

area and just about starving to death as a salesman,but I’m here to tell you - starvation is one of theworld’s great motivators. I knew I had to get smarter,faster and better if I was going to retire in my 40’s.Then I learned about three powerful letters: I.P.O.!There were all of these emerging technology compa-nies, and they were all going public in an effort to raisethe capital they needed to grow their businesses. WallStreet fell in love with Bay area technology companies,and so did I,” said Brown.

“In the early stages of this new love affair I dis-covered the all powerful prospectus. I mean thisthing was amazing! I would literally call up a com-pany on the phone (instead of driving there) and tellthem I was a student doing research on their com-pany, or an interested investor, or whatever it tookand asked for a copy of their prospectus. You knowthe crazy part? They would actually send it to me!There it was in all its glory and I didn’t even haveto drive to get it. They sent it to me… free! I was agenius – I was just sure of it. All this great informa-tion about this company sent to me in this conven-ient little black and white package. I would readabout what products and services they sold, whotheir competitors were, how they were going tomarket, even who the director of marketing was.As if that wasn’t enough it was usually printed onglossy paper and had the company logo on thecover, so it even had ‘camera ready’ art built in. Trygetting all that hoofing it on cold calls as you walkthrough a business park. It was like the Google ofthe 80’s. Timing seemed perfect. They had newmoney, they were excited about their company, andso were their employees, customers and the public.They had to put that newfound money to work tofurther their initiatives, and I was just the guy tohelp them spend it.”

“I will say, every time a company actually did busi-ness with me, I invested some of my retirementaccount money into their stock. In many cases thatactually worked out well. For example, when we firststarted working with the small start up companycalled Oracle I bought 100 shares at $6 each. That$600 investment got me a ton of business and thestock is now worth about $40,000. Although perhapsmore importantly, this not only gave me a vested inter-est in the success of the company, but it completelychanged the communication dynamic. I was now an“investor” rather than just a “vendor””.

It’s funny how you adapt to technologywhen it gives you a competitive advantage.

“The ‘80’s clicked along, and the information tech-nology age was definitely coming to life. I wanted tobe the star of our company and since I was now a ‘techguy’, getting all this great ‘tech info’ it was time tostep up my game. I can remember paying $4,000 formy first cell phone. It came with a suitcase as a trans-mitter. The $4,000 ‘suitcase’ lived in the trunk of my$10K Honda, but man was I cool! I would use that cellphone to call and get more prospectuses. One day, oneof the other sales people used this thing called aFederal Express package to send an order and artworkin to our factory. I think he paid about $20 to get that

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information where it was going. Most everyonethought he was crazy, but it was my first realizationthat for $20 I could be days ahead of my competitors. I would cut that black and white logo off the prospec-tus and ‘FedEx’ it (before that was an official verb) tothe factory for them to make a speculative sample withmy prospects logo already printed on it.

I can also remember when I bought the company’sfirst computer. This fine Eagle brand machine had nohard drive, but did feature not one, but two 56K floppydrives and all for the low, low price of only $3,500. Iwould pay my bosses’ secretary to come in on week-ends to type one of my fancy computer-generated let-ters (which by the way, only had to be typed oncethanks to my new Eagle) that would say somethinglike this:

“Dear Mr. Johnson, The McGraw Hill Companyrecently did a study that determined it takes the aver-age person twelve minutes to drink a cup of coffee. Inthat time I can show you how to use promotional prod-ucts like this enclosed coffee mug (which already hadtheir logo on it thanks to the ‘artwork’ from theprospectus) to help you build your brand. I would havethis letter and mug show up in one of those totallyslick Federal Express boxes so they knew I was seri-ous. It didn’t work every time, but I was relentlessand it was a hell of a lot better than making cold calls

on those poor receptionists that had to deal with me atall of those business parks.

By the time the 90’s rolled around I had started myown company, the Harwood Group, and I was still com-mitted to technology. At this point, my clients includedcompanies like Oracle, Cisco, HP, IBM, Pacific Bell,Cingular, Exigen, Veritas and SBC. In fact, we madesure that every person in our company had a new com-puter and everyone went to class to learn how to use it.

Our first e-mail address was a CompuServe six-digitnumber. I printed that e-mail address on all of ourcards and stationary. I actually had to log on with amodem to get the messages. I remember walking thebig industry show floors, handing people my card andhaving them say ‘what is this?’ However, simultane-ously having them think ‘oh man, you guys are so tech-nologically advanced.’

Our introduction letters also got more advanced.There is a legendary story out of Hollywood about anew, young filmmaker who was toying with the idea ofproduct placement in the movies and trying to deter-mine its value. The story says he went to the M&MMars Company and asked for $500,000 to place theirproduct in his new movie. They told him he was crazy,so he went down the street to the Hershey Company,and they saw the light. The movie was ET, and thatyear they sold over $100 million worth of Reese’s pieces.

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So I’d send our new prospects a letter reminding themof this phenomenon saying; “Can you afford NOT to lookat new ideas?” then we would pitch them on using pro-motional merchandise combined with quality direct mar-keting strategies, delivered through technologicallyadvanced, solution-oriented distribution channels toaccomplish their marketing and brand-building objec-tives, rather than just buying another TV ad.

Doing business in the technology sector today

Three of the same rules apply today that did back in 1980:1. To sell tech, you have to be tech; 2. Good information still provides unique access; and 3. Technology still provides a competitive advantage.

Imagine trying to compete in today’s busi-ness environment without a computer, theInternet, e-mail, instant messaging, faxes,cell phones, PDA’s, Blackberries, Trios andof course a VPN. These tools have gonefar beyond buzzwords. When doingbusiness today with Fortune100 tech companies, it is allabout reducing frictionalcosts. It’s no longer goodenough to have good ideas,strong product knowledge,or to have access to import-ing custom merchandise.You have to be able to inte-grate seamlessly with yourclients’ processes.Furthermore, technologycompanies want immediateaccess to both people andproduct.

Just think about it. Myearlier stories about walkingthe street with a pocket full ofdimes or typing a letter, plac-ing it in an envelope and lick-ing a stamp have ironicallybecome more that just ahumorous walk down memory lane. On the client side,it is very costly for them to process our paper.Somewhat understandably they have become veryintolerant of paying their staff to open your envelope,process your paperwork, match up your invoice, send itvia inter-office mail for your approvals, write yourcheck and put it back in another envelope to send itout to you. Most of our clients today have determinedthat you simply cost them too much money andheadache if you can’t integrate, no matter how goodyour ideas are, or your product pricing might be.

If they have set up a web enabled procurement sys-tem – then the onus is on us to upload all of the perti-nent data, and I mean specifics. Let’s just look at back-end accounting for a moment. We have to adapt totheir systems. In some cases, we will receive a pur-chase order that can have an alphanumeric code withup to 22 digits. Everything on it is precisely how theywant us to invoice them. They are absolutely notgoing to modify their processes for us. We have toinvoice them in identical order, with identical descrip-tions, quantities, pricing, all in exact order by line itemdetail, or it will be rejected. We upload the majority ofour billing information electronically. In addition, sincesome of our clients are in the security business, it can’tjust be file attachments. The information has to be in asecure, web-based application. Moreover, they suredon’t send us checks anymore…everything is done by

Electronic Fund Transfer.In fact, with some of our clients if we

have invoices rejected for inaccuracy, oreven send them a piece of paper wewill get dinged during our QBR(Quarterly Business Review), whichcould ultimately impact our preferredvendor status. It’s all measured and it’sall evaluated on a regular basis. Wecould do a global campaign, and if oursales tax calculations are off, or if FOBpoints don’t match, our invoice can berejected.

The great news is that if you havethese technologies in place, and youcan become comfortable doing busi-ness in this space, it can be verylucrative. Once these issues areautomated and under control, weusually operate under long-term con-tracts. By jumping through all thesehoops, you are essentially rewardedwith some level of loyalty or contract-ed revenue streams.

In some ways, it’s like the bankswith their ATM model. Tellers are

expensive, so they put the work backon us and dress it up under the heading

of convenience. Actually, it was designed as an effi-ciency improvement for them. The bottom line is weneeded to become more of a technology company thana promotional merchandise company today.

I like to describe our company as one that is inbusiness to produce custom, short-run manufacturingin hours and days with a hard stop use date. In otherwords, if a client needs 3,000 shirts for a trade showin Vegas, we are tasked with delivering accuratelyand timely. In our business, if the goods arrive oneday late they’re junk. It’s like produce that goes bad

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because it was needed for a specific event and itsvalue has an ‘expiration date’. In fact, not deliveringon time and in spec makes it worse than junk becausewe can’t even donate the merchandise to a homelessshelter since our clients won’t allow their product tobe viewed in that capacity. Furthermore, there’s notmuch worse than when a client has invested bigmoney in a show or an associated campaign and thepromotional element doesn’t arrive. In that scenariowe may find ourselves walking around homeless andwishing we could wear those infamous T-shirts thatshowed up late.

Today, in addition to our fully searchable websiteand our plethora of the latest sourcing and communica-tion solutions, Made To Order offers three proprietaryproducts to assist our customers with their brandedsolutions.

1. MTO MALLThis is our on-line company store solution.We can build custom on line stores that show prod-

ucts with detailed descriptions and pricing informationall on an ultra-secure e-commerce site. We also havesome very cool features that will allow us to build inapprovals (i.e. automatically route to mgr. before wecan ship the order, etc.), if for example, the buyer isusing a purchase order, or is asking to have theexpense hit a cost center. Our warehouse staff is inplace to pick, pack and ship the individual orders.

2. MTO REWARDSThis is our Tenure or Years of Service awards pro-

gram. In this application the buyer logs into a securesite, enters a password that would be provided bytheir HR department and is able to select their ownquality, branded gift from a variety of items that arepredetermined by the company. This tool has a lot ofgreat back end reporting features, which our clientsseem to absolutely love!

3. MTO NOWThis is another secure site that integrates with our

physical location to act as a warehouse, fulfillment anddistribution center to support global marketing cam-paigns. The site requires a log in and password thatgives the person or group that owns the inventory theability to draw from it and distribute it, all while beingable to monitor inventory levels in real time.

We operate in a true real-time environment. In fact,we return our e-mails before ever checking our voicemails! In the technology sector, it is a global market-place and people expect answers immediately. Thispresents both problems and opportunities. The upsideis that our average custom order today takes about 7-10 days from the time the conversation is initiated untilthe goods deliver. For in-stock company store pro-grams that delivery time is 1-2 days, and even on over-seas orders production time is only 4-6 weeks (ironical-ly what it used to be for domestic orders only a fewyears ago). The challenge is that there is an increasingdemand to be on-demand. Some days it feels like youcould literally go 24 hours as the world turns and thesun rises in a new country. Every company that playsin this space addresses this challenge a little different-ly. Our solution is a combination of automated on-linetools, technologically savvy team members and alliancepartners in Europe and Asia.

Communication, service and technology are anevolving conundrum. All MTO sales partners are pro-vided with broadband and can VPN into the office, andmost of them carry berries or trios. They are complete-ly connected. We have found that many of our rela-tionships today are becoming more and more virtual.Some of our biggest clients only want to see us face toface a couple of times a year, or at special events.They may be reluctant to call me on my cell, but willshoot me an e-mail anytime.

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The competitive differentiation today is the attitudeor willingness to embrace technology. Frankly, wewaste money every year trying out new technologies,but you never know until you try it. It just seems clearto us as we compete for big dollars and big clients; theones’ that embrace it are simply doing better. I trulybelieve our cutting-edge business is a microcosm ofwhat our society, as a whole will operate like in thenear future. Everyone wants instant gratification.

Strong brands prefer strong brandsIn addition to the Brilliant Results interview with

MTO managing director Rod Brown, we also spokewith two of the firms’ key sales partners: SandyGonzalez and Nancy Hakkinen. These two ladies’Fortune 100 clients alone generate over $7 million inannual revenue for MTO. We believe their insight willbe invaluable to buyers working in other industriesthroughout the country.

“Our clients won’t allow us to even show them anycheap stuff,” said Hakkinen. “No cheesy little calcula-tors or ten cent pens. However, when you think aboutit, why would they? Does any quality company really

want to put their brand / logo on some inferior prod-uct? I can see it now… A Cisco logo on a USB penwhere I saved them a nickel, but the pen leaked andthe USB drive crashed – I mean, hello?!?!” Gonzalezadded, “Many of our clients place an enormous valueon their brand(s) and they protect them fiercely.Anything that could possibly contribute to brand dilution is taboo. Once we put their logo on a product,the perception becomes that it is their product. Whileon one hand it can be difficult, on the other hand it isrefreshing that they ask questions about things likefailure rates. Furthermore, they do not want us tobring them silly toys or inappropriate ideas. Thereforepairing quality brands with quality brands seems to bewhat’s truly in style these days,” said Gonzalez.

As a result, MTO has formed unique alliances withmany of the world’s top brands to bring their productsinto the corporate gift, incentive and gratuity arenas.Companies like Ashworth, Bosca, Bose, Bulova,Callaway, Coach, Columbia Sportswear, Cross, Cutter &Buck, Fossil, Greg Norman, Howard Miller, Nike, Parker,Seiko, Sony, Swiss Army, Tag Heuer, Tehama, The NorthFace, Tiffany & Co., Tourneau, Tumi, Waterford Crystaland Waterman are being used as promotional itemsrather than a less expensive, no-name alternative.

Brown added, “Events are a big part of our business.A good example of this phenomenon is when one of ourgiant tech clients rewarded 700 of their key people witha very upscale trip to a tropical island. In addition tothe room gifts that included luxurious custom logoedbeach towels and other well-aligned goodies, the CEOwanted to do sunglasses. Therefore, in typical MTOfashion we worked a deal with Maui Jim to join us onthe trip and set up a special booth in the hotel lobby.As each guest checked in, they were directed over tothe Maui Jim booth, where they were custom fitted fortheir favorite pair of shades. Now, that is protectinggood insight on a bright future! In fact, on many occa-sions these higher-end products may not even bear thecompany’s logo. We figure if you brand and executethe event well enough, the recipient will absolutelyremember where those Maui Jim’s came from everytime they slide them on. Sometimes it’s just more ele-gant and tactful to reward that way,” said Brown.

Gonzalez said, “There are occasions where we willfly our key customers into Cutter & Buck or Ashworth’sshowrooms when the situation warrants. We workwith our clients to show them what’s going on in retail,then support them in making their commitmentsmonths in advance instead of getting what’s availableand laying on a shelf somewhere in a crunch. I can’tspeak for everyone, but my clients recognize that theyare on the cutting edge of business, and want theirpeople and promotions to reflect that. As a result, thestuff they are wearing is very fashionable and the peo-ple wearing it are appreciative. After all, the buyers

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are usually more upscale, up to date and fashion for-ward, therefore it only makes sense that they like tosee their suppliers looking up to date too. In fact, wehave even done a client promotion that featuredCallaway ERC Fusion drivers, and hex golf balls, whichare touted as the most technologically advanced golfgear. This achieved our clients’ goal of tying in a strongname brand, to technologically advanced products evenwhen we’re just talking about golf,” said Gonzalez.

“As a sales person you get further if you are techoriented. Everyday we are involved in national orglobal conference calls and WebEx meetings. If oursuppliers don’t have their info on the web, you’restalled,” said Gonzalez. “It is still very much aboutthe relationship, but you have to be more in tune with,and accessible to your clients on several different lev-els. I view a huge part of my job as knowing what istrendy and hot because my clients are competing fortheir buyers’ time. My clients need to offer thehottest, most in-demand brand name incentives to gettheir buyers to spend time with them instead of theircompetitors. You have to be cutting-edge because thepeople our clients are marketing to are very hip. Forexample, right now the biometric memory sticks aredefinitely in demand. These portable USB drives havethumbprint ID recognition technology built in, so if thedrive contains confidential information and is ever lostor stolen, there is security built in. Clients with strongbrands do not want to look like they are old school.They want people to really want what they are offer-ing them, not take it home to the kids or even worse –toss it. They trust me to lead them the right way. Inorder to accomplish this I am an avid student of retailtrends and publications. I walk around my client’sbuildings to see what they have on their desks andask why its there. I attend some of my clients’ enduser events, and even fly to China to stay on top ofthe latest and greatest. Sometimes I even presentthings to my clients knowing they’ll never use them,but just the fact that I bring it to them reassures themthat I am in the know.”

“Every client is different,” said Hakkinen. Myclient’s like name brand products, but demand thebest possible value. Therefore, I do a lot of directimporting and manufacturing. For example, Ciscowas recently looking for a computer bag to give as agift at their biggest show of the year. There will beover 8,000 attendees and my client wanted the bestpossible product at the best possible value, but theywanted it custom built with certain features thatwould be well received by this audience. Weshopped at retail to determine that they wanted arolling bag. They liked the handle from a Swiss Armybag, the brain bucket from an Ogio bag, and thematerial from a Tumi product. They would have lovedto have a brand name bag to distribute, but theresimply wasn’t one that met all of their requirements.With our strength and knowledge about custom man-ufacturing overseas we were able to combine all ofthe elements they wanted into the perfect bag… forthem. As a bonus we were able to build this productfor approximately 40% less than the least expensivealternative we found domestically,” said Hakkinen. “Iwant to be clear, the outsourcing of America is a con-cern to us, but there are situations in which it justmakes sense.”

“Of course another standard operating procedure atMTO is developing economies of scale. Whenever wehave a custom order, we offer it to other groups at thesame time (as long as the first buyer is not requiringexclusivity) with the goal of reducing everyone’s bot-tom line cost. You’d be surprised how quickly a 5,000piece order can become a 20,000 piece order, savingeveryone money,” said Hakkinen.

All in all, quite often the technology sector leadsthe way for ideas and practices that other industriestend to implement in future months and years. Aswe do every month here at Brilliant Results, we hopethis interview and snapshot look into this particularindustry have provided you with new ideas andgiven you valuable information. Our consistent goalis to highlight examples about what is possible whenyou combine promotional merchandise and gooddirect marketing strategy when working on yourmarketing objectives. •

MadeToOrder is a marketing solutions company, spe-cializing in the development of branded merchandiseand apparel. The company delivers high-touch, supercreative, ultra-responsive service that is intended to helptheir clients shine by providing them with distinctiveproducts, packaged to deliver a memorable message.Headquartered in Pleasanton, CA MadeToOrder can bereached at 925-484-0600 or www.MadeToOrder.com.

“I view a huge part of my job asknowing what is trendy and hot

because my clients are competingfor their buyers’ time.”

BR0605_Section01 5/24/05 5:58 PM

Now Available for Corporate SalesFor more information contact your promotional products distributor or Idea Workshop at 888-831-0401 e-mail: [email protected]

www.ideaworkshop.com

LACoste 2/21/05 2:21 PM Page 1


AT THE END OF THE DAY in any business endeavor, it all comes down tothe monetary compensation. Whether that compensation is in the form ofstocks and bonds, a signed check, a signed credit card slip, or on the rareoccasion cash, business in its most basic form is all about payment.

The advent of Internet e-markets has made customer comfort and authenti-cation of credit data a major part of whether that payment happens or

the shopping cart stands abandoned. With that in mindBrilliant Results sought out one of the major players

in the Internet payment space, as a matter of factone of the “Top Ten to Watch In 2005” accordingto Forbes online (Forbes.com) publication’sannual list of Fastest-Growing Tech Companies.The company has also been featured onDeloitte’s Fast 50 and Fast 500 lists for twoyears in a row most recently ranked the 33rd ofthe 500 fastest growing companies in North

America, and 11th fastest growing in SiliconValley. PaymentOne Corporation is one of the

world’s online Payment Services Providers (PSPs)and has generated over $1.5 billion of new digital

revenue for its clients. Founded in July 2000,

By MaryAnne Morrill

5th“P”ofHow Payments Drive Billions

The 5th“P”of

How Payments Drive Billions

The

BR0605_Section01 5/23/05 11:53 PM


PaymentOne has pioneered digital payment and market-ing services and manages the PaymentOne CarrierNetwork™ (PCN) with over 1400 telecommunication/broadband providers and network operators.

To help online merchants reach a wider audience,PaymentOne’s integrated suite of revenue optimizationservices includes a unique set of non-credit card pay-ment alternatives, macro and micro payments, identityverification and fraud detection, traditional payment processing, global payments, a co-marketing distributionnetwork and a full outsourced commerce solution. Thecompany’s flagship PhoneBill service provides mer-chants with access to over 155 million consumers. Inaddition, the Company’s new Broadband Co-marketingNetwork also enables Broadband Service Providers tosyndicate co-market and co-bill a wide variety of valueadded content and services.

PaymentOne has established itself as the leader indriving higher profitability and revenue growth forInternet-based providers through next-generation payment solutions. PaymentOne’s hosted solutions help

internationally recognized providers increase customeracquisition rates by more than 35 percent and grow incre-mental revenues by hundreds of millions of dollars a year.It also enables digital providers to market and distributetheir services through network operators, who experiencehigher retention and ARPU (average revenue per user).

PaymentOne’s services and solutions are foundedupon an unmatched combination of managementexpertise, robust and scalable technology, domainexpertise in payments and unique long-term networkoperator partnerships. PaymentOne’s managementteam brings Internet-based providers more than 100years of combined experience in payment strategy, network operator billing and service delivery.

In an effort to go behind the scenes of PaymentOne’ssuccess, Brilliant Results recently spoke with BradSinger, Vice President of Products & Markets. An integralpart of the management team, Brad is responsible formajor product and service initiatives, partnerships, andall aspects of the company’s go-to-market strategy andmarketing initiatives.

Brad Singer, Vice President ofProducts & Markets.

Marketing...Marketing...

BR0605_Section01 5/23/05 11:53 PM


BR: Give our readers a little background on whoBrad Singer is?

I’m a marketing guy who likes to make money forthe companies I work for, not spend marketing dollars.My background has been general management andP&L ownership. I love the marketing aspect because itfocuses on understanding what makes your customerstick. I’ve combined the two, the money aspect withthe softer marketing aspect at PaymentOne, which I joined about two and a half years ago.

BR: Can you tell our readers a little bit aboutPaymentOne’s mission as a company and how youbecame involved with marketing its products?

Our mission is to make it safer and more convenientfor consumers to purchase on line.

Five years ago when we began PaymentOne, wesaw a tremendous amount of friction at the point ofpurchase. So we are all about making it easier andsafer for consumers to make that final part of the emo-tional commitment at the cash register.

One case in point – within the last 24 months we’vebeen able to help online digital providers capture inexcess of $1.5 billion dollars of revenue that otherwisewould have gone un-transacted. These were peoplethat were not able to transact or had “cold feet” at thecash register. Through improvement in the user experi-ence around the process of purchasing and payment,our merchants were able to create an environmentwhere consumers could come back in and completethose transactions.

We live in a digital world where more and morethings are being sold and subscribed to online,whether it is software, music, ring tones, movies,broadband, VOIP, IPTV, photos or subscription serv-ices. And we now live in a multi-screen world wherewe may interact and transact on our PC, cell phoneand now even our TV screen Our focus is all aroundthe art and science of making that purchase experi-ence for the consumer virtually painless across allscreens of life.

BR: I think there is a backlog of people who wantthe convenience of Internet purchasing, if they canget past the hurtle of ‘I don’t want my identity stolen’or ‘Is this is a valid place/company to do business.’

It is funny that you would say that, because “pay-ments” have traditionally been a pure back office oper-ational task – an afterthought for marketing and the“value prop”. Marketing would focus and spend lots ofenergy to build out a good site, build out promotions tograb people into the site, build out the product or theservice that they were offering. But, when it came tothe payment and that final ‘tender’ process to getsomeone to actually commit to part with their money,there was not a great deal of attention to the consumerpreferences or optimizing the experience.

Payment must be considered the 5th P of marketingand an important part of the “value proposition” to theconsumer. In the offline world, where 70% of transac-tions are non-card based, retailers often use multiplepayment options to attract consumers – lay away,interest free, store branded account, cash, check, card,etc. In the online world, this has not been the case –Payment should be considered just like you considerproduct, placement, promotion and price. As lateadopters and different segments enter the onlineworld, there is a new appreciation around paymentand user experience optimization - both the psychologyof it as well as the “click by click” tactics. How to opti-mize the opportunity to make sure that nobody leavesthe cash register at the last minute? This is driving sig-nificant opportunity for ROI.

BR: Are you saying that we need to reconcile thetraditional gap between the company accounting andmarketing departments?

I think that is definitely true, often in the past thosetwo functions have been like oil and vinegar. I thinkfrom the marketing standpoint we need to understandthe profile/behavior of our client’s consumers and thecharacteristics of the product/service offering - fromthere we can back into what’s the right payment

With over 20 years of business and general management experience in the content, media and technolo-gy markets, Brad has served as Vice President of Strategic Marketing, Product Management and ContentLicensing at NewsEdge, an early pioneer in content syndication, which achieved annual revenue growthrates of 40%, consistent profitability, and a successful IPO during his 8-year tenure. While at NewsEdge(acquired by Thomson), Brad also served as General Manager of the NewsPage.com business, one of the firstsuccessful online premium services. Most recently, Brad was Vice President of Marketing and BusinessDevelopment at TeleKnowledge, a payment and commerce infrastructure company. Prior to that, Brad wasVice President of Marketing at eCredit, and also held senior positions at General Electric, and Citibank inLatin America, after earning a Bachelor of Science in Computer Science and Economics from Tufts University,and an MBA in Finance from the Wharton Business School.

BR0605_Section01 5/24/05 7:47 PM

BR0605_Section03 5/24/05 2:55 AM


approach, hierarchy of pay optionsand overall purchase experience. At PaymentOne we spend a lot oftime understanding, analyzing andsurveying our customer’s consumersand the end-to-end process to complete the transaction.

No one should ever leave or notbuy because it was hard to pay.

BR: How do you develop anunderstanding of your clients toensure that PaymentOne is pro-ducing maximum ROI for them?

In short we dissect everyaspect of our client’s consumers,their preferences, the purchaseprocess and the nature of thevalue proposition.

We typically will conduct a gothrough and a Payment Audit andFinancial Impact Analysis with theclient. We audit the products ourclients are selling, the price points

and then we spend a significantamount of time understanding thesocio-demographics and patterns ofthe consumers they are trying toreach and who they are reaching.Then, we really dissect step bystep, screen by screen the user flowand experience from the time theuser enters the site, selects some-thing that they would like to buy allthe way through to that final com-mitment. You can think of us aspayment scientists or purchaseprocess doctors. We will dissect thewhole behavior around the paymentand prescribe the best combinationof payment medicine.

We have developed a series ofPayment Practice Quotient ™benchmarks that help us compareand contrast each client’s perform-ance, gaps and opportunities ascompared to best practices andindustry standards.

Example PaymentOne Payment AuditAnd Payment Practices Quotient (PPQ)

Benchmark Scores

“No one shouldever leave or not

buy because itwas hard to pay.”

BR0605_Section01 5/23/05 11:54 PM


For example one of the things we will do is blindlyplay a customer and go through the process of buyingthe customer’s products. It is very interesting to pres-ent back an image of a typical consumer experience tothe client. You can often see the pain on their faceswhen they realize the 3 unnecessary extra steps theyare forcing consumers to do, or the extra request forrepeat information during the same checkout process.– all causing unnecessary friction at point of purchase.

Then we do an analysis and indicate where wethink the process works and areas where we wouldlook for improvement. Also, if they have a call centerwe will spend time in that area trying to be a con-sumer of our customer. From that prospective you geta reasonably good appreciation of some of the areaswhere the process is challenging or concerning for theconsumer – especially in a dispute situation.

To provide an executive view, we developed a cus-tomized financial return model that uses the client’sassumptions and inputs, combined with empirical per-formance benchmarks. This qualifies the financialimpact expected for of the initiative and allows theclient to play what-if scenarios on their ROI.

Example PaymentOne FinancialImpact Analysis

BR: What is the strongest value/benefit ofPaymentOne to its clients?

At a simple level our net benefit to our client isincreased revenue.

We deliver incremental revenue that companies can-not capture in any other way. This is “found” money.When we go into the P&L owner of our client and saywe can deliver you another $50 million of revenue overthe next eighteen months we get their attention.

BR: Given the recent news coverage of various“hackers” obtaining access to the customer databasesof major corporations, i.e. DSW, Lexis Nexus, Comcast,etc., how is PaymentOne working to increase both thepayment security level and comfort zone of yourclient’s would be e-market customers?

That problem is exacerbated if you think about thefact that a typical Internet consumer may interactwith five or ten or fifteen sites – I may buy musicfrom a music site, I may buy a movie from a differentsite, I may buy a subscription to Sports Illustrated,etc. – so now I’m faced with the added anxiety ofmultiple places to interact with where I have to re-register and hand over my financial jewels. The ironyof it is that I am risking all this for essentially pur-chase values of as little as $.99,making for anextremely out of balance risk versus return. It wouldbe the equivalent of walking into a convenience storefor a stick of gum and being asked for your personalnet worth statements.

One example of a payment method that has beenvery successful is the ability of a consumer to purchasesomething and say ‘put it on my existing bill’. Theirexisting bill in this example can be their local tele-phone or broadband bill. In this scenario, the consumeris not required to provide any sensitive private finan-cial or credit card information. We have registered over20 million consumers and generated over $1.5 billion innew revenues for merchants.

The other emerging trend is that traditionalNetwork Operators – local phone companies, broad-band providers, and mobile providers – are all expand-ing to include content and premium services as part oftheir offering. More and more, this is driving con-sumers to want to simply “charge it to my bill” withthis established core relationship.

BR0605_Section01 5/23/05 11:54 PM


BR: From a marketing standpoint, how does thishelp your clients?

Clients that have made simplicity, safety and choiceof payment part of the core-marketing message haveseen increased returns. For example, promoting “NoCredit Card Required” is becoming a more and morecommon message on the internet, and has driven sig-nificantly more potential consumers to storefront.

As mentioned earlier, people spend tremendousamounts of money and energy improving the site andproduct and getting more and more people to come tothe site. But what is happening is that while a tremen-dous flood of people are coming in, most are experiencingconsumer abandonment rates at the checkout process of40% – 60% – 80% or even 90% where people that get tothe edge of purchase jump out.

So the natural reaction for the merchant has been‘let me go spend some more money to get more peoplein the top of the funnel,’ even though the “leak” is atthe bottom of the funnel.

Before you spend more money to bring people toyour site, make sure that you are not having an 80 or90% leak of people abandoning at checkout.

By focusing on this “leak” issue, merchants canessentially convert a much higher percentage of peoplethat get to the edge – with no incremental spend toattract people

BR: Have you ever utilized marketing campaignsthat focus on the security aspects of PaymentOne’sservices?

There are two pieces we do: the core of the cam-paign when we talk to the large Internet merchant is 1.a financial model that shows them the projectedreturns; and 2. a marketing model that will highlightthe consumer preference data and user experienceimprovements so they can see the value through theeyes of the consumer.

We have used these two components in Email cam-paigns and direct selling campaigns. The two ingredientsare really the financial component –what financially willthis mean to my company – and the consumer behaviorcomponent that says for example 78% of your consumerswho are abandoning said they would purchase from youif you make it safer and more convenient.

BR: What future technology trends do you foreseein the e-market payment sector and would you agreethat payment is a principle impediment to successfule marketing?

I think that one of the things happening from aconsumer perspective is that the consumer now has amulti-screen experience. Typically people have a

mobile phone that they can actually purchase thingsthrough, a PC for their normal online activity and noweven a TV that will connect into to the digital worldand be able to share and offer the same music or content accessible on the PC. In this new world, thereis a big need and expectation for a simple universal payment device/ that cuts across all “screens” Thereare also some interesting technological developmentsin the authentication and identification area, and eventually things like biometrics may further improve universal identity.

BR: Can you provide our readers with any data tosupport the importance of the payment aspect to e-market success?

If you look at the numbers as to how consumer pref-erences and beliefs are changing, it is getting worse.In the most recent UCLA Digital Study, close to 92% ofconsumers had significant or some fear of transactingonline. In an April 2005 study by Javelin Research, 78%of consumers said they would buy more if there weresafer and more convenient ways to pay.

Consistently, by a 2 to 1 margin, payments, overproduct quality or price, was the most inhibiting factorfor many of these consumers to buy. This has been con-sistently edging up not down over the past three years.

BR: What is the number one concern/problem/secu-rity question that PaymentOne customers ask yourorganization to resolve? How do you solve it?

Two or three years ago a lot of Internet merchantswere asking “why is there a need for anything butcredit cards for online purchasing.” Now they are ask-ing “how can you help me reach all those consumersthat are abandoning at checkout and ones I can not getto at all today.” Merchants have come to realize thatthey can’t reach groups like teens or ethnic groupswithout the right mix of payment options, and furthersee a large base of broadband and mobile subscribersbeing serviced by Network Operators that are desirableto reach with a simple integrated payment experience.

We bring the finance and marketing guys togetherand improve the consumer payment process, backedby a financial return model.

BR: How does PaymentOne use direct marketing toincrease its client base?

Our campaigns generally deal with the largerInternet merchants. We also do trade shows and speakat those shows and various seminars to executives.Our message is focused to engage executives in consultative discussions of the payment experienceand opportunities to drive profitable revenues.

BR0605_Section01 5/24/05 11:37 PM


BR: Can you give our readers some examples of successfulmarketing campaigns?

We usually perform integrated, multi-pronged campaigns tohighly targeted segments. We utilize a combination of outboundcalling, e-mail, direct mail and events with very specific, timedcalls to action. Our most successful campaigns have offeredwhitepapers, end consumer surveys and point of view documentsthat our prospects can take and actually use to help make busi-ness decisions. You can see an example consumer poll on our website at www.paymentone.com

BR: Does PaymentOne use promotional merchandise toreward employees, thank clients or promote brand awareness?If so, how are these programs developed?

Recently, Memory sticks have proved to be an excellent promo-tional product for us, because they are not intrusive or over-whelming and get our name softly in front of the client. At arecent trade show our associates were making presentations oneon one to potential clients. If an executive were time crunched,the associate would just pull the memory stick with the presenta-tion out of the laptop, give it to the executive as a take-along andtell him or her to feel free to watch the presentation at their con-venience. Thus the promotional product memory sticks provided adouble benefit – getting our name in front of the executive andfunctionally transmitting our information.

BR: Is there a particular promotional product that has beenmore successful than others in your marketing campaigns?

Memory sticks – because of their functionality and because wewant to be careful not to do things that are over the top. Whenour name is recognized, we want to be sure it is connected with aquality, functional product.

BR: How does PaymentOne purchase their promotional prod-ucts, i.e. through an agency, from a single distributor/supplier orvia a bid process?

All of our promotional products are purchased via a bid process.

BR: What is the most memorable piece of promotional mer-chandise you have received and used?

This is going to sound silly, but I am more of a useful, functionalguy and one of the best promotional products I have used over thelast three years is the rolled-up phone cord to use with laptopmodems in hotels. On one specific occasion I had to get an emaildownloaded and I couldn’t find my rolled-up phone cord, so I endedup asking two or three other executives if they had one. Fortunately,another executive lent me his – it was a promotional phone cordfrom Targus. I still have pleasant memories every time I think aboutthat phone cord and I have never forgotten their brand!

BR: Any final thoughts or suggestions for our readers?Always invest time to understand your customer’s customer

and how your customer makes money. •

To learn more about PaymentOne, visit www.PaymentOne.comor call 800-747-4028.

HARD COLDFACTS

• Online cart abandonment cost US online marketers $63billion in 2004. Source: Online Retailer, January 16, 2004

• Digital merchants can experience a 25-35% revenuelift when they add a ‘No Credit Card Required” payment option, such as allowing customers to chargedigital goods and services to an existing phone bill. Source: Aggregated transaction data; PaymentOne.

• 70% of offline transactions are non-card but only 8% of online are non-card because of limited choice provided today.Source: Visa, Celent

• 50 million adults in the U.S. don’t possess creditcards. Almost 10 million households do not boast bank accounts.Source: Pelorus Group

Big Fraud Concerns Online:• $47 billion of identity theft.

Source: FTC Identity Theft Report 102003

• Fraud rates have been 19x-30x higher for online transactions vs. offline.Source: Gartner G2 Report

Lost Revenues:• Merchants typically have up to 78% abandonment of

consumers at time of payment.Source: Ernst and Young

• Credit card penetration rates are typically below 25%outside the US – card not a primary payment optiononline - Brazil = 16%.Source: InfoAmericas Latin America Report

• 78% of consumers surveyed stated for the third yearin a row that they would "be more inclined to purchaseonline if given an easier and safer payment alternative".Source: Annual Javelin Research Consumer PaymentSurvey, March 2005.

BR0605_Section01 5/24/05 1:27 AM

bad idea good idea

P: 800.383.7149 W: www.warwickpublishing.com E: [email protected]

Over 83% of businesses purchase products and services from the advertisers who supplied them with a calendar

ASI 95280



Thinking about launching an e-mail marketingprogram? To ensure success, make it meaningfuland choose your target audience carefully. THERE’S GOOD NEWS on the marketing com-munications front for companies of all sizes: Ifyou want to promote your goods and serviceselectronically, the technology is available andaffordable. Equally important: It’s impressive.Email marketing service providers offer myriadtechniques for enhancing delivery of online com-munications, along with tools for auditing theireffectiveness. It’s no wonder more and morecompanies are relying on email marketing overother forms of marketing.

To ensure that your online communicationsachieve your goals, however, be sure that you don’t get so caught up with the bells andwhistles this kind of marketing offers that youoverlook the components that matter most.

Start Your List From ScratchIt happens all too often. The salespeople in

an organization are adept at networking anddrumming up prospects. A few months pass andthey haven’t converted all of their recentprospects into customers. Soon more and moreof those potential buyers begin to languish inthe company’s database. Before long someone inthe company says, “How did we end up with8,000 prospects in our database? When was thelast time these people were contacted?!”

On one hand, it would be easy to grab allthese records and deem this group your targetaudience. The idea of cleaning up your databasewhile testing your new communications programat the same time probably sounds tempting. But

Critical Components of an Effective E-mailMarketing Program

BR0605_Section01 5/25/05 9:18 AM


it’s not the best strategy. For starters, the prospectsyou’ve ignored for months (years?) may scoff at theidea of suddenly hearing from you. Or, they mightnot recognize your email address and delete youremails. There’s also a good possibility that many ofthose people have moved on and their e-mailaddresses are no longer valid.

The alternative is to gradually build a list ofe-mail subscribers. In doing so, you can also create excitement about your online communica-tions program.

There are many ways to invite clients andprospects to sign up for your mailing list. For example:

1. Create a graphic to place on letterhead/faxcover sheets/sales sheets alerting your target audi-ence to the opportunity to participate in your onlinecommunications program. Give it a snazzy nameand tout the benefits of signing up.

2. Add a sign up form on your web site with samples of the kinds of communications they willreceive (e.g., newsletters, white papers, case studies).

3. To your e-mail signature, add a link to yoursign up form with a line of text to explain why it’sworth signing up.

The process of building a subscriber base isakin to drumming up leads for any service: it takes

time and marketing. You’ll find, though, that you’llachieve better results if you create and maintain alist of contacts that have expressly stated theywant to hear from you on a regular basis. Best tostart with a list of 500 hot prospects than 5,000outdated contacts. And if the nature of the com-munications you plan to send are equally suitedfor customers and prospects, be certain to includeyour A level clients (and possibly B level) on your mailing list.

Content CountsWhether the goal of your email-marketing

program is to supplement or supplant your printmarketing, or to drive traffic to your web site, thereal determinant of its effectiveness is the qualityof the content.

And therein lies the challenge. Let’s face it.There have always been lousy marketing communi-cations in the marketplace, from product brochuresthat scream “Us-Us-Us!” — as opposed to “Here’swhat’s in it for you!” — to poorly written anddesigned print ads that result in target audiencessimply turning the page faster. Now email market-ing technology enables companies to easily spreadtheir weak, ineffectual messages faster and furtherthan ever, at a reduced cost to boot! This means

BR0605_Section01 5/25/05 9:18 AM

smart online marketers have to work particularly hardto capture the interest of their target audiences. Evenprofessional-looking, content-rich communications canget deleted if recipients are weary of the high volumeof emails and braced for much of what they receive tobe irrelevant to their needs.

Still, there are plenty of ways to stand out from yourdirect competitors as well as other organizations vying foryour prospective client’s attention and dollars. Since thecost of disseminating information has dropped dramati-cally, it makes sense for companies to develop and distrib-ute meaningful communications as an enticement to buy-ers to further explore their services. Distribute E-books,articles, newsletters, white papers, case studies…theworks. What businessperson doesn’t clamor for educa-tional tools designed to help them do their jobs better?

When your creative/strategic marketing team con-venes to brainstorm an email-marketing program, sug-gest that your company strive to change the nature ofits relationship with its target audience. Next, focus oncreating content-rich communications. Then, when it’stime to promote your products and services, you’ll havean array of resources at your fingertips to pass along topotential buyers. And guess what? You’ll find that youhave an easier time convincing them that you possessthe expertise they need to accomplish their goals.

Your promotional emails will need to clearly relaythe value of the communications you are inviting youraudience to download or request. Keep in mind thatover the course of a campaign you want potentialclients to deepen their understanding of what yourorganization has to offer. To do this, it’s vital that yousteer clear of one-dimensional e-mails that tout the features of a product or service and nothing more.

Be Persistent, Not a PestThe beauty of today’s technology is that it allows

you to identify precisely who is opening your communi-cations so you can follow up accordingly – personallyor using automated tools. For instance, let’s say youwere to create an e-mail to thank prospects for theirrecent inquiry into your products or services. In addi-tion, you invite them to sign up for your mailing list,explaining that on a weekly basis (or whatever intervalyou set) they will receive informational communica-tions designed to help them achieve greater success.The e-mail includes a link to your web site, where aregistration form is posted along with samples of thekinds of communications they will receive.

Sounds like a good approach, right? Properly handled,it is. But you must address how aggressive you want tobe. If an initial e-mail leads only to 10 percent of recipi-ents signing up for your list, will you continue to pursuethe balance of your target audience via e-mail? If so,how many times? Twice? Weekly for a month? Or willyou try once more and then extend the opportunity onlythrough other marketing vehicles (e.g., trade shows,telemarketing)? Even if you want to continue e-mailingbecause it’s simple and inexpensive, it’s best to treadcautiously; the last thing you want to do is alienateprospects and squash their interest in doing businesswith you. Court your potential customers over time,using a variety of love potions, and you increase thelikelihood of a resounding “Yes!” to your proposal.

A Level Playing FieldA well-executed e-mail marketing program can do

wonders for a company. Over time you will be able toconvert prospects into customers; strengthen ties withclients; introduce products and services; and demon-strate your expertise.

The biggest potential downfall? Blinding yourself tothe reality that even the little fish in most industry seascan afford an online communications program. If yourcompany is a minnow, by all means, set your sites onenhancing your image and increasing your visibility. It’swithin reach. If you’re the leader in your industry, how-ever, and boast an enviable budget, don’t try to outdoyour competitors with muscle. This may work withother marketing activities, but when it comes to e-mailmarketing, “the more the merrier” is not a stance thatbusy businesspeople tend to appreciate. •

Cathy Cain-Blank is the principal of CC Marketing &Communications, a provider of creative and strategicservices for promotional products distributors and sup-pliers. For more information visit www.ccmarketing-communications.com.


BR0605_Section01 5/24/05 1:29 AM


2005 EMAIL PRIVACYSURVEY REPORT

Survey By RELEMAIL

A survey conducted by Relemail reveals a staggering 87% of Internet users

believing that they have been spammed after they subscribed to an email

newsletter, with 83% of users avoiding subscription to email newsletters

altogether because they weren’t sure they could trust the publisher.

THIS NEW REPORT OUTLINES THE NEED for emailsenders to reassure potential email newsletter subscribersand customers that their email addresses will be protect-ed, including the importance of guarding customers’ private information and honoring unsubscribe requests.

IntroductionThe intent of this study is to gauge the awareness

factor of email privacy with the typical email newslet-ter subscriber.

Email newsletters are different from other formatsof subscription-based email marketing. They allowfor brand recognition through their interactive quali-ties, which builds trust between companies doingbusiness online and their prospective and repeatingcustomer base.

Newsletters also contribute to total customer rela-tionship management (CRM) strategy and offer uniqueand customized ways to stay in contact with con-sumers. Email newsletters can open many doors forsuccessful customer communication and allow fordetailed audience targeting and response. They are

also a great tool for generating website visits and land-ing page clicks. Successful online companies like TheChildren’s Place, TigerDirect.com, and the AnimationFactory have all used the email newsletter as a suc-cessful relationship-building strategy.

So how are newsletters perceived by today’sInternet users? According to this survey—conducted inthe fourth quarter of 2004—Internet users strongly feelthat subscribing to email newsletters has flooded theirinboxes with spam. Additionally, most users soundlybelieve that unsubscribe mechanisms simply don’twork. Even though other studies have concluded thatthe majority of spam email comes from web harvestingand not subscribing to company emails, the perceptionremains and continues to haunt legitimate emailnewsletters, even today.

This survey provides strong evidence that Internetusers are very sensitive to corporate privacy steward-ship like the guarding of private email addresses andother customer information. These are the opinions of100 users of the Internet who have subscribed to atleast one email newsletter in the past.

91% of Internet users are more likely to give their busi-ness to an organization that follows ethical email prac-tices and respects their privacy

96% say email privacy is important to them

83% of users have avoided subscribing to an email newslet-ter because they weren’t sure they could trust the publisher

78% do not always believe companies’ own email priva-cy statements

87% believe they have received spam from an organiza-tion that collected, and then sold, their email address

80% say they have tried to unsubscribe from an emailnewsletter and found that the unsubscribe did notwork

72% are more likely to subscribe to an email newslet-ter, which has been independently certified

Significant findings from the survey, discussed in this report, include:

BR0605_Section01 5/24/05 1:29 AM


User Awareness of Email Privacy Stewardship High

91% of Internet users are more likely to give their busi-ness to an organization that follows ethical email practices andrespects their privacy (see Figure 1).

96% say email privacy is important to them.

This high awareness percentage suggests that users notonly have an awareness of email privacy stewardship, but theyare also sensitive to the differences between companies whichrent or sell consumers private information, and those thatdon’t. While the chances of users actually identifying compa-nies, which are not actively guarding their privacy, may beslim, these data suggest a high awareness of email privacyfrom the user perspective.

This figure is a statement about the importance of guardingemail privacy and using best practices when email marketingis part of your ongoing customer relationship strategy.

Study Results

Percentage of web users more likely to givebusiness to companies that follow ethical emailpractices (91%)

Percentage of web users indifferent to theemail practices of companies (9%)

Figure 1. Percentage of Internet users who say they are more likely togive business to companies following ethical email practices.

Source: Relemail Survey 2004

BR0605_Section01 5/24/05 1:29 AM


Trust Needed for Customer Action

83% of users have avoided subscribing to an emailnewsletter because they weren’t sure they could trust thepublisher (see Figure 2).

78% do not always believe companies’ own emailprivacy statements.

Over 80% of Internet users feared subscribing toemail newsletters because they couldn’t trust the publisherwith their private information. This is not good news foronline companies and the reality of this risk is nowherenear the perception.

A study called the 2004 Email Subscription Spam RiskAudit subscribed to over 1,000 email newsletters over aperiod of six months, to see and measure the resultingspam email from this activity. The results were surprising.Only three firms of 1,057 subscribed sent an inappropriateamount of unsolicited email. So a whopping 99.6% of com-panies audited did not spam their customers. This study isdrastic opposition to the belief of users in the Relemail sur-vey, demonstrating a wide gap between the condition ofuser trust and the risk of spam to email subscribers.

Another example of a user trust gap is the 78% of userswho do not always believe company privacy statements.But it stands to reason that if 80% of this group are fearfulof subscribing to email newsletters, than a large percent-age are also not going to believe a statement posted on theweb guaranteeing privacy.

Figure 2. Percentage of users who have avoided email newslettersubscriptions due to trust issues.

Source: Relemail Survey 2004

Unsubscribe Maintenance and Certification asTrust Builders

80% say they have tried to unsubscribe from an emailnewsletter and found that the unsubscribe did not work.

72% are more likely to subscribe to an emailnewsletter, which has been independently certified (seeFigure 3).

Perhaps the most revealing statistic of the 2004 Relemailsurvey is the 80% of Internet end users believing thatthey’ve tried to unsubscribe from email newsletters in thepast, and the request failed to stop the email.

From a trust perspective, end user (read: prospective cus-tomer) inability to unsubscribe from your newsletters cancause a tremendous amount of damage to the hard earnedtrust you’ve worked so hard to build with customers. In the2004 Email Subscription Spam Risk Audit, many of the 1,057email newsletters subscribed to for the study had no directunsubscribe link in the messages. However, once unsub-scribe requests were made, only about 2% of the companiesignored them and kept on sending email.

Your unsubscribe mechanisms should be clear and workin almost real time. At the minimum they should workwithin 10 days—the amount of time required by federallaw. Most email marketing software solutions have the abil-ity to communicate unsubscribes directly back to thesource database almost instantly.

Working unsubscribe mechanisms should be the cen-trifuge of any privacy protection approach your companybuilds to maintain active, trusting relationships with cus-tomers and prospective customers.

Figure 3. Percentage of users who say they would subscribe to anindependently certified email newsletter. Source: ReleMail, 2004

Percentage of web users who have avoided sub-scribing to an email newsletter because theyweren’t sure they could trust the publisher (83%)

Percentage of web users indifferent to the emailnewsletter trust issues (17%)

Percentage of web users who are more likely to sub-scribe to an email newsletter, which has been inde-pendently certified (72%)

Percentage of web users indifferent to the independ-ent certification of an email newsletter (28%)

BR0605_Section01 5/24/05 1:30 AM

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Perception Challenge Ahead

87% believe they have received spam from anorganization that collected, and then sold, their emailaddress (see Figure 4).

There’s a perception challenge ahead for companiesdoing business online: they have to convince many websitevisitors and others showing interest in their products andservices that they will not be spammed or over-emailed ifthey submit private information such as their emailaddresses.

In the spam studies mentioned earlier, only four compa-nies of the 1,057, which were part of the survey blatantly,spammed the email addresses used. Over 1,000 did not. Yetthe perception largely remains that subscribing to emailnewsletters inevitably ends up attracting more spam,which, according to the spam audit and the 800 companieswhose email behavior is monitored and posted onRelemail.com, could not be further from the truth.

Percentage of web users that believe they have receivedspam from an organization that collected and soldtheir email address (87%)

Percentage of web users that haven’t received spam dueto an organization collecting and selling their email address (13%)

Figure 4. Percentage of users who believe they have received spamfrom an organization that collected, and then sold, their email address. Source: ReleMail, 2004

SummaryWhile the popularity of email as a direct marketing

medium continues to rise, those companies choosing toissue email newsletters as a form of interactive communi-cation with perspective and returning customers havedefinite perception challenges to face.

A disproportionate number of Internet users continueto associate the act of subscribing to email newsletterswith adding more spam to their inbox: 88% of Internetusers surveyed believe they have received spam emailsas a direct result of signing up for legitimate companynewsletters. Even though studies like the 2004 EmailSubscription Spam Risk Audit have proved this not to bethe case (almost none of the 1,057 subscription formsfilled out for the audit resulted in spam) the perceptionremains.

In response to this misperception, companies shouldplace a high priority on keeping their customers’ data pri-vate and secure. Posted privacy statements should bewell thought out, clearly stated and strictly adhered to.Customer information should be diligently guarded andrarely exported, if at all. Email messaging should be eval-uated by an outside entity and independently monitored.And all privacy stewardship should be documented andaccessible to customers.

So while companies doing business online as a wholeare making large advances in privacy protection, it is upto the diligence of these same companies individually tobuild personal, needed trust from their customers. •

Copyright © 2005 by ReleMail LLC.This report is reprinted with permission of ReleMail

Email Sender Certification. For information regarding thisand other ReleMail Reports, please contact ReleMail LLC:Phone: 1-307-587-2557 • Email: [email protected] • Web:http://www.ReleMail.com

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NEW PRODUCTS DEFINE a brand’s direction and

vitality. In 1993, 37% of Gillette’s sales were accounted

for by products launched in the five previous years.

By launching new innovations when the previous

ones are barely established, Gillette keeps ahead of

the competition1. Brand extension communicates

vision, values, direction and vitality, deepening the

brand’s total meaning. Fashion brands have always

understood this. When Chanel produced a limited

range of skis and snow boots giving them away free

to supermodels hitting the slopes, they strengthened

their grip on Chanel’s ownership of the quality of

luxury: brand extension as marketing.

BR0605_Section01 5/24/05 11:38 PM


Quantum or Gradual ExtensionSuccessful brands don’t stand still; they develop

according to their vision, values and competencies,extending into new products in an ordered sequen-tial way that sends a clear message to their targetaudience. Successful brands go beyond incrementalextensions (VW Golf version 1, 2, 3, 4) and seek toown the quality of precision engineering by produc-ing VW Golf Clubs.

Kellogg’s Nutri-grain is a product that redefinedthe Kellogg’s brand and opened up a completelynew market sector. Kellogg’s risked their brand equi-ty to create the cereal snacking sector. Without thewillingness to fail dismally, this quantum leap would

never have been made and Kellogg’s would still be a cereal maker rather than have a strong position inhealthy snacking.

Growth of brand equity can also be achievedgradually: Heinz sells ketchup, and can take anatural step into mustard. Mustard is used insandwiches so Heinz can claim a share of thesandwiches sector. From sandwiches it’s possibleto see how a Heinz ready meal could be developed.By following simple logical steps, establishingand building on new extensions, Heinz can deepened their meaning and grow their marketshare with small risks into new extensions thatallow for further risk.

in Corporate BrandLicensing –

By Adam Bass

TheGrowth

BR0605_Section01 5/24/05 1:31 AM


Brand management as risk management

To grow a brand and market share brands can:

• Spend more money on marketing• Develop and extend into new markets• Do nothing and let the momentum carry them forward

Needless to say, doing nothing is the riskiest option.One of the key reasons to extend into new markets isthat failure is tolerated. In fact, failure is relative – provid-ed the economics are not destructive and poor qualityexecution is not the problem, then failure shows a brandin its best possible light: bold, full of ideas, creative andcoping constructively with feedback. Virgin is a brandthat is built on the notion of heroic failure. Virgin hasfailed in: PC’s, Vodka, Clothing and Cosmetics. RichardBranson’s round the world ballooning attempts all endedin failure, but the brand is stronger as a result. Like thecustomer whose resolved complaint makes him moredeeply satisfied, acknowledgement and resolution of failurestrengthens a brand.

The origins of corporate brand licensingThe notion of generating revenue from intellectual

property is probably older than the earliest forms of cur-rency. Whilst the inventor of the wheel might not havecollected royalties, he/she would almost certainly haveset up a wheel maker’s franchise. The pace of technolo-gy and competition has quickened over the centuries tothe point where modern ‘wheel makers’ like Pirelli,Goodyear and Hancock spend millions every year inspir-ing consumers to believe in their passion for high qualityproduct development. Such is the consumer belief inPirelli’s passion that the brand has successfully extend-ed into fashion with an impressive line of licensed acces-sories from shoes to eyewear to clothing.

Early brand licensing agreements stemmed fromchanges in corporate structure. As companies de-merge or sell off subsidiaries, a long-term licensingagreement allows the new owners to realise the fullvalue of their acquisition. When Premier Foodsacquired Cadbury Schweppes tea and foods businessin 1986 for example, the two parties negotiated alicensing agreement entitling Premier foods to continueproducing Cadbury’s hot chocolate powder. The £7.4bntakeover of UK drinks group Allied Domecq by PernodRicard and Fortune Brands will; no doubt, create acomplex web of international licensing agreementsgoverning the rights of sales and production whilstmaintaining a consistent brand presence.

In addition to these ‘corporate to corporate’ licens-ing agreements, agreements have always existedbetween brand owners and manufacturers of merchan-dise and novelty memorabilia. Since its launch in 1974the Coca-Cola Collectors Club has grown to more than5,000 people in 28 countries and the market for dispos-able, wearable, licensed merchandise is not inconsider-able: one former Argos buyer reports licensed mer-chandise outselling similar unbranded products bythree to one.

Unfortunately, just as chav culture has driven downBurberry’s value in the UK, the classic consumers of mer-chandise are probably not at the centre of most brandmanager’s marketing plans. The current trend is for cus-tom-made, aspirational merchandise that reflects brandvalues and appeals to its target market: Audi commis-sioned a range of furniture to burnish the Audi TT’s reputation for iconic design. Jeep’s carefully managedlicensing programme achieves retail sales in excess of$380M p.a. by extending the brand’s ruggedness intoproducts from bicycles to wheelbarrows to luggage.

BR0605_Section01 5/24/05 1:31 AM


How is brand licensing different from entertainment licensing?

As opposed to entertainment licensing which is usuallybased on a film or a television series; brand licensing relieson a combination of performance based and emotional values. A BMW isn’t just a high-spec, well-designed car, it says something about the driver to other people and,vitally, to the driver himself. The ABC of branding is that brands communicate Attitude, inspire Belief and drive Consumption.

Through continuous advertising over generations, corpo-rate brands develop an intimate relationship with consumersvirtually becoming a member of the family. Heinz were forcedto reverse plans to stop production of Heinz Salad Creamafter DJ Zoe Ball started a successful ‘save our salad cream’campaign on her Radio 1 breakfast show. “It’s a great Britishinstitution”, she declared “It was always there in the cup-board if you needed a friend.”

This approach to brand management contrasts dramatical-ly with the diminishing lifespan of entertainment propertiesthreatened by fracturing entertainment channels, rapidmaturing of ’kidolescents’, and a highly competitive retailenvironment. A well-managed corporate brand can sustainlong-term brand extensions built upon centuries of brandequity whilst Pokemon’s licensed detritus of gimmicky toys,polyester slippers, and novelty underwear washes up in thebargain bucket. A brand owner is constrained against a ‘hitand run’ approach to licensing by the fact that even signifi-cant royalties are tiny compared to the impact of a 1% rise orfall in market share.

When do brand owners use licensing?Distributor power and shareholder pressure is forcing large

corporations to look for growth in markets beyond their corecompetencies, and brand licensing is becoming an increasinglyattractive option in the brand manager’s toolkit.

“Licensing offers aquick, effective route

to market when abrand has relevancebeyond its owner’s

competencies.”

2

BR0605_Section01 5/24/05 11:39 PM


Licensing offers a quick, effective route to marketwhen a brand has relevance beyond its owner’s competencies.Good examples of new, brand-enhancing, revenue-gen-erating products include: Malteser and Galaxy pow-dered hot drinks manufactured and distributed byNichols Foods (in 2004 they achieved 21% of the UK’sdrinking chocolate market); Johnson & Johnson’s spe-cially hydrating Evian face cream; Nestlé’s Colgate den-tal chewing gum, and Marmite flavoured crisps. Walkerslicensed the Marmite brand in 2001 as part of a greatBritish flavours campaign, inadvertently stumbling upona massive latent market for Marmite flavoured products.After selling £6M worth of crisps in the first 9 months,Walkers now offer Marmite flavour alongside staples likecheese & onion and salt & vinegar.

An interesting side effect of extending a brand intorelevant categories beyond the owner’s core competen-cies is that it can result in a change of perception.Caterpillar’s successful vault from heavy machinery tothe fashion business took off in 1994 with retail salesof around $1 billion worldwide: ‘What is happening’according to brand guru Wally Olins, ‘is much morethan product extension. It’s attitude extension...Caterpillar brand extension doesn’t have much to dowith the products the company makes; it’s to do withthe attributes that the Cat brand is seen to possessworldwide. It’s about attitude.”3

Why do licensed brand extensions succeed?Beyond the obvious, entry-level criteria for

success like quality of execution, appropriate distribution, the right price point and positioning;successful brand extensions also require ‘Fit’ and‘Leverage’. Fit is the appropriateness of the new category; Leverage is the added value that differentiates the new product from its unbrandedcompetition.4 If the new product falls short on Fitand Leverage then it offers consumers the worst possible combination: high levels of interest followed by high levels of disappointment.

An excellent brand extension is the Dettol EasyMop. There is good fit: Dettol and mops both have thefunctional value of cleaning your home, and there isgood leverage: the Dettol Easy Mop is better thanexisting mops because it is fitted with replaceableDettol wipes – allowing Dettol to own the entirecleaning experience as well as make a profit on pro-viding refills for busy users who don’t have time todig out a bucket from the cupboard under the stairs.Other cleaning products and mop manufacturers havealso tried to benefit from this convergence of cleaningproduct and stickware but Dettol has first moveradvantage and Dettol’s owner Reckit Benckisermopped up a cleansing £269M profit in the first 6months of 2003.5

Breakout boxIn studies conducted by OC&C in 1990 brand extensions scored better than new brands in trial

rate, conversion rate and loyalty rate . Fast-forward 12 years to 2002 and the top 10 UK productlaunches were all brand extensions:

Brand Manufacturer1 Walkers Sensations PepsiCo2 Diet Coke with Lemon Coca-Cola3 Dove shampoo and conditioner Lever Faberge4 Wrigley's Extra Thin Ice Wrigley5 Cadbury Dream Cadbury Trebor Bassett6 Maltesers ice cream Masterfoods7 Nestle Double Cream Nestle Rowntree8 Nestle Smarties Bar Nestle Rowntree9 Pedigree Chunks in Jelly pouch Masterfoods10 Winalot Vitality Plus Friskies Petcare

Distributor power and shareholder pressure is making brand licensing an increasinglyattractive option in the brand manager’s toolkit.

BR0605_Section01 5/24/05 11:40 PM

For licensed brand extensions to achieve sustainedsuccess there are two additional factors required:

Alignment – the new product category must bealigned with the brand’s marketing strategy and val-ues. Pepsi’s recent signing of a licensing deal todevelop MP3 players is aligned with the brand’s mar-keting strategy because it represents a response toCoke’s music download website. A licensed extensionshould fit the brand’s strategy so well that itannounces the brand’s values and direction andcements consumer relationships.

Opportunity – the new product should be in a category where the brand is not competing with simi-lar brands. A JCB pressure hose is differentiatedbecause there are no other well-known constructionbrands in the category. This gives the retailer confi-dence to list the products and maintains the pricepremium. The new category should be original, inno-vative and, ideally, something that only this brandcould do otherwise competitor brands will launch sim-ilar extensions.

A Land Rover pushchair for children doesn’t justcompete against McLaren and Mamas and Pappas, italso offers new parents a continuous connection withthe Land Rover fantasy of exploration and discovery.The leverage isn’t just in the quality of the pushchairbut also in the brand’s considerate acknowledgementof its consumers changing circumstances. There is fit

with the category, leverage in the all terrain nature ofthe pushchair, alignment with the brand’s strategy andthe opportunity to differentiate.

To ensure that fit and leverage are part of licensedbrand extensions, answers need to be found for questions like:

• Licensing Strategy_ What is the strategic attraction of licensing?_ What is the prioritised list of target product cate-

gories?_ How is the licensing strategy aligned with the

brand strategy?

• Capabilities_ Does the company have experience drawing up and

negotiating license agreements? _ Is there a standard agreement?_ What is the current new product development

process?_ Is the company prepared to carry out technical

inspections of licensees?_ What support will the company offer to licensees?

• Resources_ Are key decision makers available to develop a

licensing strategy and approve potential licensees?_ Is there an approved budget for developing a

licensing strategy?


BR0605_Section01 5/24/05 11:40 PM

Where is brand licensing going?It may seem odd to finish a piece about brand licens-

ing by talking about failure, and yet failure is an impor-tant part of any industry that relies upon new productdevelopment. From the 2300 major product launchesmaking their debuts on UK supermarket shelves in 2002,for example, only 14% were expected to survive for morethan 12 months. Even though brand extensions scorebetter than new brands in trial, conversion and loyaltyrates; extension, licensed or otherwise, is no guaranteeof success. In fact, over-extended brands in the wrongproduct categories without sufficient marketing supportcan appear desperate, unoriginal and cheap. Fashionbrands are the most obvious culprits; Gucci acquired theonce prestigious Yves Saint Laurent brand in 1999 andhas subsequently had to invest millions to restore thebrand’s reputation since it over-licensed in the early 80’s.

Provided the economics are not destructive and theproduct quality matches expectations however, failure canshow a brand as bold and creative. Virgin has failed in:PC’s, Vodka, Clothing, Cosmetics and, some would argue,Trains but the brand is stronger as a result of learning fromits mistakes. Unsurprisingly, licensing for brands generateshuge revenue in the US because American bravado attach-es less stigma to failure and more prestige to success.

In the delicate balancing act between minimisingdamage to brand equity and maximising the opportuni-ty to be market leader, the scales are tipping towardslicensing as a cash positive, low-risk way to achievebreakthrough marketing and competitive advantage –handled carefully this new balance will result inlicensees developing and distributing successfullicensed extensions, and brand owners generating significant royalties and new brand equity. •

© Golden Goose, 2005

Adam Bass is the director of GoldenGoose a brand consultancy helpingbrands to develop brand-enhancing, rev-enue generating extensions throughlicensing. Launched in 2002 Golden

Goose has worked on a wide range of licensing and brand-ing projects for brands including: Barbour, Colmans,HEAD, Hellmans, Marmite, Moulinex, Pepsi, Tefal, TVRand Whittard.

1 Jean Noel Kapferer, Strategic Brand Management, p147, 2 David Aaker, BrandPortfolio Strategy, p 79, 3 Wally Olins, On Brand p 93, 4 Edward M.Tauber, TauberResearch, Brand Equity & Advertising, edited by David.A.Aaker & Alexanrder L.BielChapter 20, p313, 5 6 month results released 26th August 2003, 6 Jean-Noël Kapferer,Strategic Brand Management , p 236, Kogan Page

BR0605_Section01 5/24/05 11:40 PM


“Technology platform pieces like secure, 802.11-standard wirelessnetworks, Microsoft. NET-enabled handheld computers running thePocket PC or Windows Mobile operating system, and Web services

are emerging as the new platform pieces.”

BR0605_Section01 5/24/05 1:33 AM


RETAILERS COULD LEARN A LOT FROM OLYMPIC DIVERS.Everybody starts from the same platform, execution must happenfast, and those who are most creative tend to win. The higher theplatform, the more flexibility divers have to make different movesand differentiate from their competitors. Retailers are applying thislesson by building powerful, standardized IT platforms to set them-selves apart.

Technology platform pieces like secure, 802.11-standard wirelessnetworks, Microsoft. NET-enabled handheld computers running thePocket PC or Windows Mobile operating system, and Web servicesare emerging as the new platform pieces. Together, they representthe high board for retailers who got their feet wet with older, slower, proprietary handheld computers and networks. These technologies enable companies to develop, deploy and integratenew applications quickly, and to strengthen connections with customers and trading partners.

“Retailers are continuing to become more consumer focused.That’s why there are many projects going on to put more technol-ogy into operations,” said Brian Schulte, Intermec retail industrymarketing director. “Retailers are investing in technology toenhance the customer experience in the store, either by puttingmore information in the hands of associates, or giving technologyto the customers themselves.”

Making the JumpMigrating to Emerging PlatformsHelp Retailers Make a Splash

By John Burnell

BR0605_Section01 5/24/05 1:33 AM


Having standardized on 802.11b wireless technolo-gy, retailers are leveraging their networks to add newapplications and devices, including displays, kiosksand portable POS. Web services is emerging as a platform technology to support real-time visibility anddecision-making. Modern handheld computers thatsupport the Microsoft .NET framework leverage Webservices applications by bringing them right to thestore aisles.

“Basic in-store handheld computing applicationshave not changed. Retailers have been doing receiving,ordering and inventory management for years,” saidMike Sitek, Intermec’s retail business development man-ager, who has more than 15 years of experience withretail mobile computing applications. “But the degree ofsophistication for those applications has changedtremendously. Software can do so much more today, sousers can make a lot more intelligent decisions.”

802.11b – Innovation grows as technology maturesThe migration from proprietary 900MHz wireless

networks to standard 802.11b technology paved theway for many current innovations. With wirelessreceiving, shelf management, price auditing and inven-tory applications already in place, retailers are findinginnovative new ways to leverage their network infra-structures with new applications. Portable point of –of-salesystems, using wireless handheld computers andportable printers, are a proven way to cut lines andgrow customer satisfaction. Customer-facing applica-tions like information kiosks and display screens, priceverification stations and personal shopping assistantsare also finding their way into stores to take advantageof wireless data access to serve customers.

METRO Group, the world’s fifth-largest retailer, isdemonstrating multiple wireless kiosks, displayscreens mounted on shopping carts and other LAN-based applications at its heralded Extra FutureStore in Germany, which is better known for being anRFID proving ground. Some of these “future” applica-tions are part of the present at Dierberg’s, a 21-storeindependent grocery chain in St. Louis, which provesyou don’t have to be large to be a big innovator.Dierberg’s connects wireless voice-over-IP phones,plasma video displays, scales and Intermec 720 handheld computers to its 802.11b network.

“If a device can run wireless, we can do the appli-cation,” said Robert Sanabria, director of IT atDierberg’s. “We’re an independent grocer with tough,smart competition. We need to stay flexible and agile.Our wireless network is key, because we’re flexibleenough so that when there are developments in wire-less technology, we can exploit them very quickly.”

Other retailers have installed wireless kiosks thatcustomers can use to scan merchandise, learn moreinformation about it, and check the price. Kiosksalso help comply with tough new price verificationlaws that states are enacting. Wireless kiosks canbe set up throughout the store and access pricingfiles in real-time to ensure the price displayed at thekiosk is in synch with what is charged at the pointof sale. [John – If you need to cut words to getunder the limit I would suggest taking out thisparagraph since I don’t believe that we do anythingwith kiosks right now]

Traditional in-store wireless applications are alsoevolving and becoming more powerful. Stores man-agers at Bass Pro Shops, a leading fishing and out-doors retailer, use their Intermec wireless handheld

BR0605_Section01 5/24/05 1:34 AM

BR0605_Section03 5/24/05 2:51 AM


computers to get out of their offices and conductinventory and sales analysis on the sales floor,where they can better oversee operations.Associates use wireless handhelds for traditionalaisle management applications. If customers needassistance locating an item, associates use thehandheld computer to access integrated applica-tions to see if inventory is available in the backroom, en route from a supplier, or in stock atanother store. Store-to-store transfers can beordered on the spot, with no paperwork required.If a new shipment of hot-selling items arrives,managers or associates can get wireless notifica-tion on their handhelds and even initiate printjobs for merchandise labels, so items can be quick-ly brought to the floor.

Auchan, a French hypermarket, has improveditem availability with a similar application. Stockclerks previously checked and recorded shelfinventory on batch data collection terminals. Thedata was later downloaded and used to generatenew orders, which took about nine hours a day.Now, clerks or store managers are usinguseIntermec wireless handhelds to manage ordersright from the shelf location. Using a wirelessinterface to Auchan’s host IT applications, person-nel can check inventory and recent orders, adjustorders in real-time after checking sales activityand delivery schedules, and send order changesdirectly to the warehouse. Replenishment is more

responsive and accurate, and daily time requiredfor order entry has been reduced from nine hoursto two.

With a secure, scalable wireless infrastructurein place, retailers can take the next step and putwireless computers into the hands of consumersas personal shopping assistants. Applicationsinclude helping to locate merchandise, providingin-depth product information, communicating targeted, real-time promotions, and suggestingcomplementary merchandise or purchases basedon the consumer’s own shopping history. Someretailers are using wireless “smart carts” withdisplay screens mounted on shopping carts tohelp customers navigate aisles.

“Modern handheld computers give retailersmore ability to respond to customer inquiries, sowe will start to see even more customer assis-tance applications from retailers,” said Sitek.

Windows into the enterpriseAdvanced customer and store associate appli-

cations like these require more than an updatedwireless network; they also require innovativeapplication software plus easy-to-use mobile computers with the processing power and memory to run it.

“Those things would be very difficult to do, ifnot impossible to do, with prior-generation comput-er systems,” said Schulte. Thousands of handheldcomputers running DOS and proprietary operating

BR0605_Section01 5/24/05 1:34 AM

BR0605_Section03 5/24/05 2:51 AM


systems that have served retailers well for yearsare currently reaching their end-of-life. The propri-etary era is dying with them. Pocket PC, and morerecently, Windows Mobile, have clearly emerged asthe next generation operating systems for hand-held computers. The new generation is well sup-ported with application development and devicemanagement tools, which lets companies focus oncreating value-added applications, instead ofspending their time maintaining and supportingproprietary products.

“When we replaced our old Telxon terminalswith Intermec computers running WindowsMobile, we washed our hands of how we weredoing things for the last 10 or 20 years,” saidJason Powless, lead system developer atDierberg’s, the St. Louis grocery chain. “It’srefreshing to work in this environment.”

“This platform is very conducive to bringingapplications to market quickly,” added Sanabria.“We can now create applications for the handheldguns in an hour that used to take us weeks.”

Dierberg’s has started developing some appli-cations using the Microsoft .NET CompactFramework and plans to start using Web servicesto create components and applications and deploythem remotely throughout the chain. The compa-ny is on the front line of the trend of the retailshift to Web services and service- oriented archi-tectures (SOA). Recent research by Gartner found

approximately 52 percent of retailers are invest-ing in Web services; a similar study byAberdeen Consulting found service- orientedarchitectures are a high priority for 48 percent ofretailers and 52 percent of consumer packagedgoods manufacturers. Besides enabling rapidapplication development, service- oriented archi-tectures simplify the process of connecting in-store applications with enterprise and tradingpartner systems., Synchronized systems whichhelenableps retailers and consumer goods sup-pliers to integrate multiple channels to optimizeinventory management, customer service andother operations.

Intermec’s Pocket PC mobile computers fullysupport .NET, so they can integrate easily withWeb services applications. Intermec is also cre-

ating component libraries as part of its service-oriented architecture software initiative. Manypartners are creating .NET applications optimizedfor Intermec devices. Hallmark Cards, the leaderin the personal expressions industry, is usingFieldWeb software developed in .NET by Intermecpartner Field Performance Group, along withIntermec’s new CN1 ruggedized PDAs, to reengi-neer its field sales and merchandising operations.The applications process and synchronize datafrom thousands of U.P.C. scans each night, andgive field sales personnel real-time information formerchandise display management, inventory con-trol and reordering.

It’s no surprise that Hallmark would be an inno-vator in applications to help their retailers and cus-tomers get personal. Many retailers are takingadvantage of the powerful platform tools availableto them to dive in and create their own “Hallmarkmoments” to connect with customers. •

John Burnell is principal of Burnell Reports, astrategic communications company that providesconsulting and editorial services to the mobile andwireless computing, data collection, supply chainand related industries. Burnell is an award-win-ning writer and editor who has covered theseindustries for 15 years. For more information con-tact the author at [email protected] or visitwww.burnellreports.com.

BR0605_Section01 5/24/05 1:35 AM

BR0605_Section03 5/24/05 2:52 AM


Exposing YourBrand Internally

By Alycia de Mesa

NEVER MIND CONVINCING the man on the street what your brand stands

for, do your employees even know? Do they Understand the strategy behind

the brand? What the voice is? Do they know how to use it in context?

If the brand is not completely understood and tightly patrolled inside an

organization, it’s bound to unravel the minute it leaves the front door.

BR0605_Section01 5/24/05 1:35 AM


The next time you’re in a room full of marketing execs, casually mention thephrase “brand management practices.” You can expect either: 1) a dizzying listof brand books on the subject, 2) an exhaustive explanation of the latest brandguru techniques, or 3) a deer-caught-in-the-headlights kind of look.

Once considered the least sexy part of the branding process, reserved for a few obscure employees charged with identity responsibilities, guidelineshave evolved to hold a starring role for the whole of the organization, inter-nally and externally.

While no brand expert polled could quite remember when guidelines firstappeared (brand consulting firm Landor puts the date somewhere in the 1970sfor the airline industry), most agree that they began as large, rather cumbersomeprinted manuals, housed in three-ring binders with a no-nonsense technical tone.Or, as one consultant put it, guidelines were “dry and deadly boring.”

BR0605_Section01 5/24/05 1:35 AM


What began as printed guidelines mandating the“rules” of reproducing a newly- or re- designed logowithin various applications has evolved to educating abrand’s internal constituents about what comprises thebrand—be it the brand promise, positioning statementor the psychology behind a chosen Pantone color.

From the Dallas/Fort Worth International Airport tothe United Way to the British Film Institute, it’s nowcommonplace to find brand identity guidelines onlinein both PDF and website formats. Internal employeesand managers as well as third party vendors, agenciesand media can instantly access how to properly use oreven request the use of the verbal and visual identityfor material such as internal presentations, billboardadvertising or interactive interfaces.

What has also evolved is the tone of the writtenword. Brand owners are talking to actual humans asreaders (as opposed to programmable employees) whoappreciate clarity, brevity and (dare we say it) evenlight humor. Jeffrey Marcus, principal of design andbranding firm Marcus Associates, remembers, “[…I]nthe early 90s seeing a guidelines piece that was reallybrilliant. They took the time and spent the money toactually make the thing kind of lyrical and fun. It wassuch an eye opener. Who would’ve ever thought thatguidelines could be so enjoyable to go through? Thatwas the first time I had ever seen anything like that.”

Around the same time, CD-ROMs, PDFs and theInternet started to catch on as alternative formats toprinted materials due to the advantages of lower pro-duction costs and the ability to relatively easily update

and change information on an as-needed basis. An international shipper FedEx was one relatively

early adopter of an Internet-based system that pro-vides guidelines and a brand approval system. Adecade later, designated web pages continue to pro-vide everything from how to apply for a name of aproduct or service all around the world to literatureguidelines, advertising guidelines, and how to use thelogo on t-shirts.

Most importantly, FedEx’s Internet hosted guidelinesystem allows brand usage requests to be facilitateddirectly through the brand management group inMemphis, regardless of where in the world and onwhat time zone a requestor is.

Says Gayle Christiansen, global brand managementdirector at FedEx, “Most modern companies havesomething like this, but we think ours is really good.Consistency is the mantra of the brand. You’ve got tobe consistent if you’re going to make a great impact.[The system] helps us with consistency so that wehave a look and feel that identifies as FedEx aroundthe globe.” Christiansen adds, “Whenever you cansimplify processes and be very clear, everyone saves[money], time and makes decisions much easier. It alsospeeds up time to market.”

In an era of 24/7/365 as well as “living the brand,”some companies and their agencies are creating brandexperiences through the guidelines. BrandWizardTechnologies has been delivering digital brand man-agement tools to a wide variety of clients, such asMercedes, IBM, National Geographic and the AmericanCancer Society, for over five years.

Branding firm FutureBrand also offers interactivebrand management tools for companies such as Bankof America and Opel. Says Steve Aaron, director of e-tools at FutureBrand, “We’re trying to evolve to cover alot more then just how big is the logo or how it shouldbe placed. It’s more about ‘what is [the brand] about?’It’s really about explaining to everyone why the brandis changing and how they can be a part of it.” •

Alycia de Mesa is a freelance brand identity consult-ant and writer with over 10 years experience fromFortune 100 to start-up companies. She is author ofBefore the Brand, the definitive brand identity hand-book, published by McGraw-Hill (under the nameAlycia Perry). Alycia de Mesa can be contacted atwww.demesa.net .

Reprinted with the author’s permission. This articlewas originally published on the web site www.brand-channel.com March 21, 2005.

BR0605_Section01 5/24/05 1:36 AM

BR0605_Section03 5/24/05 2:52 AM

Things We Love


1

When Their Bag Stands Out……from all the others on the baggagecarousel your clients will remember withpleasure the company that gave themsuch a time saver.Retro 1951, Inc.

2

3

1

Let There Be Music…… your message will be accompanied bymusic when your clients use this MelodiStikMP3 Player, which supports the new DRMformat, WMA files and MP3 files. Inaddition, it has an SD expansion slot up to512MB.JMTek

E-Mail Something They‘ll Enjoy…

… customizable and delivereddaily E-Mail Calendars® haveyour full-color logo, tag line ormessage, phone number and,

most important, a live link to yourweb site. Each page features thatday’s calendar with dynamic full-

color photography, speciallywritten editorial, fun trivia

and fascinating facts.Beress Premiums

BR0605_Section02 5/24/05 2:05 AM


Things We Love

4

6

Old School or New School……this is one pen with your logo or message on that they won’t letout of their sight. The perfect tool for travel – take those importantfiles along on a 64 MB 1.1 USB memory stick built right into thecap – a quality all-metal, executive writing instrument for signing

contracts – and a built in PDA stylus just in case. Prime Resources

Take Music For a Ride with Your Logo……when your customers plug this unit into the accessorypower socket to play MP3 songs over the car radio. It

also includes a USB power cable for home use.Developed with new technologies, the MP3-ON-FM

ensures no dead areas at distances up to 30 meters.JMTek

Show Them Your Care……when you use any of these fine products as a part of yournext promotional campaign. The perfect take-away from anynon-profit or health oriented event.Retro 1951, Inc.

5

BR0605_Section02 5/24/05 2:06 AM


Things We Love

When It’s Time for……a little R&R in the great outdoors, this quality

insulated wine and cheese backpack is sure to bethe one that takes your logo to the picnic.

Bags Depot, Inc.

The Next Best Thing to Your Hands……the ultra-soft hygienic translucent gel Mouse Pad

and ergonomic gel Keyboard palm rest providecomfort and protect against repetitive strain. Deliver thecompassionate message that you care about the health

and well being of your customers.SOFTWORQS

Have Fun After Dark……these glow in the dark flying discs are the perfect takeaway from any company picnic or outdoor party and theyinsure that your message gets around day or night.The Humphrey Line

9

7

8

9

BR0605_Section02 5/24/05 2:06 AM


Things We Love

10

11

12

Forget ships in bottles ……when you want to be on their deskput the entire world right inside a 4 hub! Thisinnovative design includes a bubble filled withbright blue water and floating globe bobbingabout. Far from typical, this splashy unitmultiplies the ability to use their USB items.Prime Resources

Don’t Worry About The Fine Print…… Pocket Peepers put a reading lens in your pocket!Durable, high quality credit card sized frame and scratchresistant lens. Not a magnifying glass, this is a 100%accurate, universal reading lens.Pro Innovative

Take Notes in Style…… the stylish pen locks thebrushed metal finished notepadcover in place so you alwayshave pen and paper handy.Laser engraving (1 location) in asquare imprint area gives yourmessage a touch of class.Promo Biz

BR0605_Section02 5/24/05 9:08 PM


Things We Love

14

13

Time Flies When You’re Having Fun……this animation LCD Clock with picture is sureto capture the attention of every fan no matterwhat their favorite sport is.Time Products International

Blankets…Blankets…Blankets……it’s summer so send your message along on acarry along blanket whether your customers areoff to a picnic, a beach party or just a quiet nookby a brook they won’t forget this handy blanket.It’s All Greek To Me

BR0605_Section02 5/24/05 2:07 AM


W RKSWhatCase Studies in Success

INDUSTRY: Telecommunications – National Semiconductor

CHALLENGE: National Semiconductor, a leader in the telecommunications industry, wascoordinating a series of nationwide partner events over a two-month roll-out for their new “Art of Analog” campaign. They asked Linda Hoff, atPlanning Showcase, to come up with an idea for a tradeshow giveawayusing the new graphic component of their campaign. The goal of the promotion was to build awareness around their new analog promotion, andleave a lasting impression on tradeshow attendees. Linda and two membersof her team, Ever Limon and Alma Linares, had a brainstorming sessionand decided to incorporate artists’ tools in their product recommendationto help energize this campaign. They thought of the new products thatwere introduced in the Icon for Leed’s line.

SOLUTION: A sample of Leed’s Icon Paint Can Tin imprinted with the customer’s artwork, and filled it with very small boxes of pastel chalk, colored pencilsand a mini paint palette, complete with a brush and a box of clay was pro-duced. The idea would not only make an impression on customers, it wouldgive them something to take away from the show as a remembrance of themessage. A total of 3,000 paint cans were shipped to 12 national locationsto use as tradeshow giveaways.

RESULT: Immediately after the gifts shipped, National Semiconductor began toreceive enthusiastic “thank yous” from their partner groups. Once they hitthe show floor, the paint can art set created quite a stir. Many of thebooths were overflowing with customers looking to get a bucket. The cus-tomer reported that it was one of the best giveaways they have ever done.Thanks to the Planning Showcase team and the Icon Paint Can Tin, the“Art of Analog” campaign was a huge success.

Case study provided by: Kelley McGowan, Marketing Specialist, Leeds, [email protected]

BR0605_Section02 5/24/05 2:07 AM



Industry: Non-Profit – United Way of the Midlands, Columbia SC

Challenge: Present a memorable thank-you gift on a “t-shirt only” budget to volun-teers at an annual Volunteer Appreciation Bar-B-Que event.

Solution: “When you can’t spend a lot on the gift, spend just a little on the packag-ing” was the mantra that made this project a success. Once we knew ourclient was settled on giving a t-shirt as a thank-you gift for this event, weimmediately started thinking about what we could do to that basic item tomake it special — a requirement, since these are hard-working, non-paidvolunteers being celebrated. Because this event was a BBQ, the idea ofpresenting the tee with something related to eating seemed like a no-brainer;as soon as we thought of placing the tee in a to-go container, we knew wehad a winner. A little creative dressing with the Thank You Card/”Receipt”on top, and of course the requisite toothpick (in the client’s color, blue) tohold the card on, and the presentation was complete. The decision tomake this a “To Go” kit also helped our client set the flow of the event,since it was an obvious take-away gift. These little touches showed therecipient that someone really thought about this gift — and to a volunteer,the thought really does count!

Result: A client that was thrilled at the outcome. Happy volunteers. And recognition in the form of a “Special Judges Award” presented at our local AAF Addy Awards ceremony. Not bad for a 25-cent Styrofoam boxand a toothpick!

Case study provided by: Kevin Bush, Senior Account Manager, Post No Bills, [email protected]

BR0605_Section02 5/24/05 2:08 AM



Industry: Promotional Products – The Augusta Group

Challenge: The holiday season was approaching and Bill Turney, of the AugustaGroup, was searching for self-promotion ideas that he could use as clientgifts that would in turn help him increase business. He was interested infinding several items with specific targets in mind. This would allow him tofit a particular gift to a particular client.

Solution: Bill recalled his Leed’s sales representative’s presentation of their self-promotion program. Through this program, he could purchase decorated samples at significantly reduced prices to help promote his busi-ness. Bill also recognized that the Leed’s holiday catalog was the perfect fitfor his challenge. He spent several hours poring through the pages toselect the ideal gifts for a number of his clients. He selected seven differentLeed’s items from the catalog to send to 100 different clients. These itemsincluded the Milano Shoeshine Kit, the Zagat Par Gift Set, the Cutter &Buck American Classic Coaster Set, the LitLight Candle Set, the IconAction Dice, and the Zagat Gourmet Gift Set.

Result: The self-promotion project was tremendously successful. The ZagatGourmet Guide alone was given to six clients, and in less than 90 daysresulted in four different orders for several pieces of that product. The totalpayback for sending out Leed’s items to his top customers was over$100,000 in sales in the first quarter. Bill Turney states, “While I cannotcomprehend anyone not taking advantage of this program, I have to confess that in our own company, other salesmen did not see the benefit ofspending a little money and a little thinking time to plant giant seeds.When properly planted, Leed’s seeds of self-promotion and spec samplesproduce giant results.”

Case study provided by: Kelley McGowan, Marketing Specialist, Leeds, [email protected]

BR0605_Section02 5/24/05 2:08 AM



Industry: Healthcare & Scientific Staffing – On Assignment

Challenge: To cultivate existing clients and increase penetration within the client’sorganization.

Solution: The On Assignment marketing staff analyzed the situation and realizedthat a single direct mail piece would have limited effectiveness. So theydecided on an integrated sales and marketing program. On Assignmentbrought the sales staff into the marketing program and put them at boththe beginning and end of the campaign so they were both the launch andconclusion of the outreach effort. Initial sales calls were followed up withe-mail post cards and a more significant direct mail piece. Because thetheme of the campaign was Grow with On Assignment the GROLINEflower kit provide a perfect match. The campaign concluded with appointsetting calls by the sales staff. Because On Assignment is always seeking a residual effect in any of their campaigns, the GROLINE flower kit reallydelivered as a growing daily reminder on their client’s desks.

Result: This campaign was so effect that On Assignment ordered and reorderedflower kits in excess of 10,000 units and the campaign actually grewfrom use in a single division to blossom into use in multiple divisions ofthe company.

Case study provided by: Boomer Dunn, Account Executive, Data SuppliesInc., [email protected] with additional information contributed by Larry Hemley, Sr. Director of Marketing, On Assignment,www.onassignment.com

BR0605_Section02 5/24/05 9:07 PM



Industry: Sports – Media Event

Challenge: Bridgestone golf, an already established leader in Japan, was expandinginto the US market. Post No Bills was asked to create a high-end promo-tional piece that would tie into Bridgestone’s “Martini & Sushi Soiree” anevent which introduced Bridgestone golf to the US media at the 2004PGA show.

Solution: Post No Bills packaged two engraved crystal martini glasses in a customsatin-lined box. The finished product was both elegant and relative to the event.

Result: Bridgestone quickly ran out of the 40 sets and were bombarded withrequests for more. They went over so well, the extras sent to account forbreakage were taken back to Japan by the Bridgestone executives.

Case study provided by: Robbie Burkett, Account Executive, Post No Bills, [email protected]

BR0605_Section02 5/24/05 2:09 AM

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Industry: Retail

Challenge: Create a unique invitation to the Grand Opening celebration of an upscaleclothing store. The elegant affair included champagne, hors d’oeuvres andlive music.

Solution: Post No Bills created a stylish retail magnet set for the Grand Opening ofVan Jean that featured logos from sister stores as well as the stores tagline“a new twist on style”. To tie in the tagline with the product, a twist ele-ment was included in the design of the invitation and the bottom insert.The two elements were combined and sent out to 300 socialites, valuedcustomers and local celebrities.

Result: The party was a hit! The owner of Van Jean was very pleased to see sucha turnout. The magnets will remain as a reminder of the guests experienceand will continually reinforce the Van Jean brand. On top of all that, theproject won a 2005 Gold Addy award.

Case study provided by: Robbie Burkett, Account Executive, Post No Bills, [email protected]

BR0605_Section02 5/24/05 2:09 AM


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Free Product Information. June 2005 Issue.For free product information from these suppliers, complete and mail this page to: BrilliantResults Magazine 9034 Joyce Lane Hummelstown, PA 17036.Or fax to (717) 566-5431.

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THINGS WE LOVE Section

Supplier Page No. Product No.Beress Premiums 60 1

Retro 1951, Inc. 60 2

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Retro 1951, Inc. 61 5

Prime Resources 61 6

Bags Depot, Inc. 62 7

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Promo Biz 63 10

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TM



Please send more information on

the Brilliant Results Apparel Buyers Guide

BR0605_Section02 5/25/05 12:00 AM


July 11 – 12 AD:TECH ChicagoSheraton Chicago Hotel & Towers, Chicago, ILInformation at: www.ad-tech.com or Call: 203.371.6322

July 11 – 13 National Center for Database Marketing SummerHyatt Regency McCormick Place, Chicago, ILInformation at: www.ncdmsummer.com or Call: 800.927.5007

July 11 – 13 Workforce Innovations 2005Philadelphia Convention Center, Philadelphia, PAInformation at: www.workforceinnovations.org or Call: 800.984.6058

July 11 – 14 Macworld Conference & Expo Boston 2005Moscone Center, San Francisco, CAInformation at: www.macworldexpo.com or Call 800.645.3976

July 12 – 14 The ASI Show – Chicago – Advertising Specialty InstituteMcCormick Place Complex, Chicago, ILInformation at: www.asishow.com or Call 800.546.3300

July 17 – 19 ASHHRA – Amer Soc for Healthcare HR Admin Conf & ExpoWalt Disney World Swan Resort, Lake Buena Vista, FLInformation at: www.ashhra.org or Call: 312.422.3725

July 24 – 26 National Medical Association 2005Jacob K. Javits Convention Center, New York, NYInformation at: www.nmanet.org or Call: 888.744.1449

July 25 – 26 Pharmaceutical Marketing Partnerships InstituteWestin Philadelphia, Philadelphia, PAInformation at: www.pharmamarketingpartnerships.com or Call: 888.364.3544

July 27 – 28 Digital Rights Management Strategies Conference & ExpoThe Puck Building, New York, NYInformation at: www.jupiterevents,com or Call: 508.533.4995

July 28 – 30 The Awards & Custom Gift Show & The Printwear Show – Long BeachLong Beach Convention and Entertainment Center, Long Beach, CAInformation at: www.nbmshows.com or Call: 800.560.9941

July 31 – August 2 FAMEJacob K. Javits Convention Center, New York, NYInformation at: www.fameshows.com or Call: 877.904.3263

July

2005CalendarJu

ly

BR0605_Section02 5/24/05 2:10 AM


August 01 STI Knowledge Center SymposiumBellagio Resort & Casino, Las Vegas, NVInformation at: www.STIKnowledge.com/Symposium or Call 770-290-3474.

August 01 – 04 SpeechTEK 2005 Exposition & Education ConferenceNew York Marriott Marquis, New York, NYInformation at: www.speechtek.com or Call: 877.993.9767

August 08 – 11 Search Engine Strategies Conference & Expo – San JoseSan Jose McEnry Convention Center, San Jose, CAInformation at: www.jupiterevents.com/sew/summer05 or Call 203. 662.2976

August 11 – 13 Imprinted Sportswear Show IndianapolisIndiana Convention Center & RCA Dome, Indianapolis, INInformation at: www.issshows.com or Call 800.933.8735

August 14 – 18 ASD/AMD Trade Show – Las Vegas - SummerLas Vegas Convention Center, Las Vegas, NVInformation at: www.merchandisegroup.com/merchandise/index.jsp or Call 800.421.4511

August 14 – 19 TDWI World Conference – Summer 2005Manchester Grand Hyatt - San Diego, San Diego, CAInformation at: www.tdwi.org or Call 800.280.6218

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August 28 – 31 Apparel Sourcing Assoc. Pavilion – ASAP Global Sourcing ShowSands Expo & Convention Center, Las Vegas, NVInformation at: www.asapshow.com or Call 626.636.2530

TM



* To have your show listed in our Calendar please send your information to Brilliant Results magazine. *

August

August

BR0605_Section02 5/24/05 2:10 AM


SECURITY AND PARTICULARLY INFORMATION SECURITY has risen to

the top of the list of business fundamentals for success. For that reason,

Brilliant Results decided to talk to the security experts at Oracle, one of

the world’s paramount information companies about technology and the

security of that critical item – the company database. Oracle is helping

more governments and businesses around the world become information-

driven than any other company and as Oracle’s Chief Security Officer, Mary

Ann Davidson is responsible for security evaluations, assessments and

incident handling. She represents Oracle on the Board of Directors of the

Information Technology Information Security Analysis Center (IT-ISAC) and

is on the editorial board of SC Magazine. Ms. Davidson has a B.S.M.E.

from the University of Virginia and an M.B.A. from the Wharton School of

the University of Pennsylvania. She has also served as a commissioned

officer in the U.S. Navy Civil Engineer Corps, where she was awarded

the Navy Achievement Medal.

The Last Word

BR0605_Section02 5/24/05 2:11 AM


BR: Give our readers a little background about Oracle?Oracle’s business is information—how to manage it,

use it, share it, protect it. For nearly three decades,Oracle, the world’s largest enterprise software compa-ny, has provided the software and services that letorganizations get the most up-to-date and accurateinformation from their business systems.

On the personal side, I think of Oracle as being agroup of very dynamic, Type “A” personalities. It’sprobably the sharpest group of people I have everworked with. Obviously, I am having a great time: I’vebeen with the company almost 17 years.

BR: How did you become involved in databasesecurity as a career at Oracle?

I had been working in the Applications Divisionfor about five years. I wanted to try something a lit-tle different. They had an opening in a group calledSecure Systems, which was building a special ver-sion of the Oracle7 Database (called TrustedOracle7) for the U.S. Defense Department. Since I’dbeen a military officer and understood “professional-ly paranoid mindsets” (and I mean that kindly), Idecided that would be a great opportunity. I’ve beendoing security ever since.

Security is both very interesting technically andincorporates fascinating social policy issues. For exam-ple, law enforcement and national security entitieswant to be able to read data in decrypted form whenthey are putting together a case. Encryption makes ithard for them to do what they do, which is one reasonencryption was classified as a weapon for U.S. exportpurposes for a long time. On the other hand, encryptionmakes it hard for Bad Guys to steal, snoop on or modifyGood Guys’ information. Is it possible – or advisable –to build encryption that is snoopable by law enforce-ment trying to catch Bad Guys but not Bad Guys tryingto do bad things to Good Guys? The technology itself isneutral, but the ramifications are interesting.

BR: How do you develop an understanding of yourclients to ensure that Oracle database software isboth secure and producing maximum ROI?

It’s not all that hard to develop a customer view-point since Oracle runs on Oracle software. WhileOracle is not Oracle’s only important customer, our ITdepartment is often the earliest adopter of our soft-ware. I have tried to pull our IT “customer” in to helpdrive product direction in security, as they have to livewith the consequences if we don’t do a good job of it.

We also have a customer advisory council for securi-ty that encompasses the entire product family, andincludes customers across a multiplicity of industries,company sizes, sectors and geographic areas. There’s agreat phrase in Hawaiian that really applies when ourcustomers come in for the advisory council: “Paha kawaha.” (Shut the mouth) That is, we learn best by listening, and our customers are both helpful and eloquent in expressing themselves. Even if customersare only reinforcing what you thought was the need, itstill helps build the business case for doing A over B.

BR: What is the strongest value/benefit of Oracle’sdatabase software to its users?

It is hard to choose just one. If I had to, I’d say thatthe fact that we can restrict access down to the levelof a single row of data, which nobody else can do.Since we enforce security on the data, someone usinga different application cannot bypass the security.(After all, it is the data you are trying to secure.) Wecan also enforce row level access based on the securityclassification of data. Result: better, non-bypassable

Mary Ann Davidson Oracle’s Chief Security Officer

BR0605_Section02 5/24/05 2:11 AM


security, lower cost (build it once, not many times) andit has even been vetted against the Common Criteria(ISO-15408).

BR: Given the recent news coverage of various“hackers” obtaining access to the customer databasesof major corporations, i.e. DSW, Lexis Nexis, Comcast,etc., how is Oracle working with its clients to helpprevent database intrusions?

It is worth noting that many of these breaches werenot technical exploits, and thus there were not neces-sarily technical measures that would have mitigatedthe attack.

It’s always tempting to think technology will saveyou from all IT evil, but information security isn’t justtechnical security. It incorporates physical security, pro-cedures (e.g., policies), and personnel. For example, ifyou don’t keep track of your physical backups, and theyare lifted, someone may get access to your customer oremployee data. If you don’t do a background check onemployees in positions of trust (such as database admin-istrators), you may be betrayed by that trusted insider.

One of the “magic bullets” that customers aretempted to deploy is encryption. Certainly, encryptionon the wire (in transmission) can be considered bestpractice, but encrypting data at rest is not easy and itis not always clear what problem it solves. Are youworried about a break-in from the outside, your admin-istrator abusing her privileges, or employee snoopingusing (their) legitimate access rights? The sameencryption scheme can’t protect against all of theabove threats.

Specifically, encryption does not solve any accesscontrol problems. Meaning, anybody who has legiti-mate access rights also has rights to see the data indecrypted form (otherwise he/she can’t understand itor cannot modify it). If I can get access as you, or as aprivileged user, I can see everything you can see (orthe privileged user can see). Encryption, in this case,adds precisely zero security.

Having said all that, we have built some nativeencryption capabilities into the Oracle Database thatare pretty slick. (I just don’t want customers neglectingall other aspects of security because they are encrypt-ing some data.)

BR: Is there a common methodology that these“hackers” use to gain access to databases?

Hacking methodology is well understood. There areclasses on hacking which I recommend to anybodywho has to defend a network or a system. Military his-tory teaches us that you can’t defend anything if youdon’t think like an attacker. A lot of what my teamdoes is train developers to think like hackers, throughsecure coding standards, training classes, hackingdemos, and so on.

A really easy hack is going through a “best prac-tice” guide and trying the inverse of the best prac-tice. For example (before we changed the Oracledatabase so we force password changes on installa-tion), my hacking team used to break into systemsby trying the default passwords. You’d be amazed(or appalled) at how many systems are easily bro-ken into because someone did not change thedefault password(s). I had a friend who broke into aclassified system (by accident, years ago) becausethe customer had not changed the default pass-words. Scary.

BR: What is the number one concern/problem/secu-rity question that Oracle database customers ask yourdepartment to resolve? How do you solve it?

One of the ones gaining momentum, probablybecause of the increasing regulatory environment, is

The Last Word continued

BR0605_Section02 5/24/05 2:12 AM


how to easily lock down one’s systems. Customerswant IT products to either install in a secure way, orthey want to be able to push a button to lock thesystem down in a secure way after installation.Truthfully, vendors are in a better position to do this(do something once that all customers reap the ben-efit of), but it is sometimes harder to do than you’dthink. We have about five major product stacks, andwe run on greater than 10 operating systems.Making sure that a “secure default configuration”does not break any version of any product on anyoperating system isn’t always easy.

Having said that locking down a product on instal-lation, or afterwards via a wizard, is something everyvendor needs to do and we’ve made a lot of progresson it. This is part of making it easy for your customersto be secure and we absolutely believe it’s the rightthing to do. I think you will see large procurements,particularly from customers or groups of customerswith significant collective buying power (e.g., govern-ments), start requiring reasonably secure default con-figurations as a condition of procurement.

BR: Do you have any security strategy suggestionsfor our readers to increase the protection of theirdatabase information?

Some of it is not very complicated, but it’s alwaysgood to review the basics:

Come up with a benchmark security configuration(or use one that has been developed) and lock yourdatabase down per the benchmark. Oracle providestools to do this, and there are also tools available fromthird parties to do this.

Run the tool regularly to make sure you stay secure.Run on a supported product version and apply

security patches regularly. We obviously try to avoidthe kind of programming errors that lead to securitypatches, and we have tried to make them easy toapply and on a fixed, pre-announced schedule so peo-ple can plan for them (they are quarterly, and cumula-tive for most products).

If you aren’t on a supported version and don’tapply security patches with reasonable frequency, youmay well be taking an unacceptable risk with yoursystems. I occasionally have conversations with cus-tomers — some in regulated industries — who are onlong-out-of-support versions of product and havenever applied any security patches. That’s like jug-gling hand grenades: you hope something bad doesn’thappen but why take the risk?

Audit appropriately. We have very granular auditand it scales well; there’s no excuse for not doing it.

BR: Is there a particular product that has beenmore successful than others?

Clearly, the database is not only the flagshipbrand, but it is the secure flagship: we just do notlose business to competitors if security is important tothem. In addition to the basic security we offer in thedatabase, we have two extra security options forOracle that have both done pretty well.

We are also beginning to get some solid tractionon Oracle Identity Management. Since we havealready done the hard work of integrating this withour product stack, it is a natural evolution for ourcustomers running multiple Oracle products. Forexample, if someone joins a company, the user canbe provisioned based on the “join the company”event in Oracle Human Resources, and has all theright accounts, single sign-on, and the like, acrossmultiple Oracle products. Also, identity manage-ment is infrastructure, and it absolutely has to besecure. We understand both of those requirementswell. We’ve also made a recent acquisition (Oblix) inorder to strengthen our support for heterogeneousenvironments. We got great people and great tech-nology from that deal.

BR: Any final thoughts or suggestions for our readers?

There’s a quote I use to emphasize that security iseverybody’s business (to some degree) and why itmatters: “A nation, as a society, forms a moral person,and every member of it is personally responsible forhis society.” (Thomas Jefferson)

Because we always like to get the marketing take onissues we cover in Brilliant Results, we also touched basewith Willie Hardie, the Senior Director of Database ProductMarketing at Oracle, regarding the role security featuresplay in Oracle’s database promotion and marketing.

WH: Ensuring security of data has always beena key challenge for every business, and securityhas been a key Oracle focus area from the outset.With each successive database release Oracle pro-vides new and enhanced security features thathelp our customers better protect their data. Ourcustomers want a database that can (among otherthings) quickly process queries, support large vol-umes of data, be available 24 by 7, be easy tomanage, and securely protect data. Securing datais a core competency of Oracle that always has,and always will, differentiate Oracle Databasesfrom the rest.

The Last Word continued

BR0605_Section02 5/24/05 2:12 AM

1. HTML isa. Hypertext Markup Languageb. Hypertext Machine Languagec. Hypertext Transmission & Manipulation Language

2. A TI-83 isa. Slide Rule Modelb. Scientific Calculatorc. Intel® processor

3. After gigabyte comesa. Megabyte

b. Terabyte

c. Byte

4. TTL isa. Time to Live

b. Transparent Transfer Layer

c. Technical Talk Language

5. JPEG isa. Java Photo Extended Graphic

b. Java Photo Enhanced Graphic

c. Joint Photographic Experts Group

6. BASIC isa. Basic Application Standard Input Complier

b. Beginners All-purpose Symbolic Instruction Code

c. Basic Asymmetric System Instruction Configuration

7. POP3 isa. Popular Operating Protocol Version 3

b. Pascal Origination Protocol Version 3

c. Post Office Protocol Version 3

8. OEM isa. Open Engineering Management

b. Object Enhanced Management

c. Original Equipment Manufacturer

9. LCD isa. Liquid Crystal Display

b. Light Conductor Display

c. Local Communication Decoder

10. QWERTY isa. Internet Online Game

b. Quasar Width Electrode Radiant Transfer Yeats

c. Keyboard Layout Designed by Sholes

Bonus: WYSIWYG is ________________________________

So You Know Your Tech Talk ~

Off The Cuff

Quote~

I had to make some optimistic assumptions to meetthe revenue target. In week three, we’re visited by analien named D’utox Inag who offers to share hisadvanced technology.

—Dilbert

If it’s green, it’s biology, If it stinks, it’s chemistry, If ithas numbers it’s math, If it doesn’t work, it’s technology

—Unknown Answers1. a – 2. b – 3. b. – 4. a. – 5. c. – 6. b – 7. c – 8. c – 9. a – 10. c


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