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Cook acts after Browett upsets the Apple cart with half-baked retail recipe

October 30, 2012

The surprise is not that John Browett, former Dixons CEO and Tesco high-flier, quit Apple after only 6 months. The surprise is he wasn’t fired earlier: or indeed that he was hired at all.

Not that there’s anything wrong with Browett’s retail skills, in their place. Which is, or was, running a British high street retailer; not at the helm of the retail arm of a global corporation fanatically dedicated to innovative product launches and superior customer service.

The announcement of Browett’s departure, which coincides with – but is only tangentially connected to – the sacrificial dispatch of Scott Forstall, head of iPhone software (for the horlicks he made of the new Maps app), has been greeted with widespread “told-you-so” cynicism. And nowhere more articulately than in the comments section of The Telegraph online.

My own favourite? Quote from Mr Cook : ‘Mr Browett had a commitment to customer service “like no one else we’ve met.” ‘ Similar to Morecambe and Wise writing: ‘We shall tell all our friends’ in the visitors’ book at a particularly awful Blackpool b&b.

Quite. The fault lies not so much with Browett (who is in any case going to walk away with much of his £36m golden hello intact) for initiating ‘pile it high and flog it cheap’ tactics – the only thing he knows – but with Apple’s chief executive Tim Cook. Whatever was he thinking of when he made the appointment late last year? Browett is the complete antithesis of everything Apple stands for.

It’s not about command-and-control retail structures where costs are minutely controlled. It is about money-being-no-object where customer service is concerned. It’s also about silo’ed autonomy, something alien to Browett’s own retail culture.

Cook can chalk this one down to inexperience. But it does make you wonder whether he’s got a sufficient measure of the “vision thing”.

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Rita Clifton to step down as UK chairman of Interbrand

June 16, 2012

Rita Clifton, one of the UK’s best-known brand experts, is stepping down as UK chairman of Interbrand, the Omnicom-owned brand consultancy which she has headed for 10 years.

Clifton will officially leave on July 31st, although she is thought to have submitted her resignation earlier this year. She has long served on a three-day-a-week basis, and has a well developed career portfolio that includes several non-executive directorships. Besides being non-executive chairman of opinion pollster to The Times Populus, she is also a NED of Dixons, the electrical retailer, and BUPA, the global healthcare company. Since 2007, she has been a trustee of WWF-UK. In 2009 she was appointed president of the Market Research Society.

“Ten years in the chair (and 5 years as CEO before that) is quite long enough when it’s not your own company, and I have wanted to set up a private office to run/extend my non-exec and pro bono portfolio and do independent speaking and writing about brands for some time,” she says.

Clifton is a prolific writer on brands. Among her publications are the Future of Brands, published by Interbrand, and Brands and Branding, published by The Economist.

She began her career as an account planner at DMB&B and J Walter Thompson (JWT). In 1986 she moved to Saatchi & Saatchi London where she rose to deputy chairman and executive planning director in 1995.

Started in 1974 by John Murphy in the UK, Interbrand has morphed into a global organisation with nearly 40 offices and claims to be the world’s largest brand consultancy. It was acquired by Omnicom in 1993.

 


Creative momentum for M&C, Wieden, Del Campo and – of course – BBDO

January 24, 2011

Just like the business and financial world, the advertising creative industry has its reporting seasons. The Cannes Festival represents the annual benchmark and we are now at the interim stage, with the Gunn Report and AdAge – the industry’s biggest trade paper – issuing their verdicts.

To stretch the analogy a little further, these awards “analysts” heavily favour momentum stocks. That may be because – like their financial counterparts – they’re at heart an unadventurous lot who don’t like nasty surprises. Win at Cannes, and the chances are you’ll pick up a truckload of gongs elsewhere. King of the number-crunchers is the Gunn Report, which resembles Wall Street’s Quants in more ways than one. To quantitative analysis, which monitors an agency’s creative performance over many years and almost every conceivable awards scheme, is added a mysterious proprietary ingredient. We’re never quite sure of the relative weight put on the data. How else explain BBDO’s preeminence as top network for the fifth successive year?

Enough of this. The point I’m making is there are no great surprises at the half-way stage, although some of the results are well worth highlighting (BBDO’s not excluded). Rather pleasingly, M&C Saatchi’s print campaign for Dixons (honourable mentions at Cannes; it also picked up a top award at Epica) was Gunn’s global winner. The art of long copy is not yet dead.

With similar predictability, Wieden & Kennedy was garlanded  AdAge’s Agency of the Year, primarily on the strength of Old Spice Guy. And rightly so. Anyone who can create celebrity out of Procter & Gamble advertising deserves a medal: especially so when the now lionised brand was as hopelessly quaint as Old Spice.

While we’re there, a nod in the direction of AdAge’s International Agency of the Year, Buenos Aires-based Del Campo Nazca Saatchi. Del Campo, which has just celebrated its first ten years, is the epitome of a rolling creative revolution which has now persuaded some premier league clients to consider Latin America as their first port of call when devising a global campaign. In Del Campos’ case, it has just been added to Coca-Cola’s international roster.

The secret of its success seems to be a carefully blended balance of creativity and planning, reminiscent of Boase Massimi Pollitt in the Eighties. Here, at any rate, are a couple of examples of its work. The famous Teletransporter commercial, for Andes beer, which was lauded at Cannes:

And Chocolate Meter, for Kraft, which has apparently resulted in a 50% increase in Cadbury sales:


HMV outfoxed by Dixons recovery story

January 6, 2011

It’s probably just as well I can’t remember the name of the national newspaper pundit who, only the other day, tipped high street retailer HMV Group as one of the hot recovery plays for 2011. Yesterday, its already severely mauled share price – down 80% in the last year – lost a fifth of its value on news that like-for-like sales over Christmas had been abysmal, and that the company was going to have to sell off 60 of its stores as a result. Not that I had invested. If I were to take a punt in this sector (which I’m not), I would select Dixons – which has some interesting parallels to HMV. But more of that later.

Simon Fox, HMV’s dynamic chief executive, started out in 2006 as a latter-day Prometheus; now he resembles nobody so much as Icarus. HMV has pleaded it had an awful end to the season (which it did). But then, so did everyone else, and look what that didn’t do to John Lewis sales over Christmas. Behind mitigating excuses lies an increasingly sad reality: HMV’s visionary strategy for coping with drastic structural change brought about by the internet has failed.

“Sad” because if anyone was equipped to bring off mission near-impossible at HMV, it was Comet-bred Fox. Fox has shown a gamut of qualities infrequently found in one chief executive: drive and leadership (of course), imagination, flair, tenacity. It’s not as if he hasn’t had some decent job offers along the way, too. The stewardship of ITV – we now know – was not the nightmare it then appeared, and helming the media company’s turnaround would have brought recognition and reward far in excess of anything Fox could ever earn at HMV. So, to that list of qualities we should perhaps add loyalty.

Unfortunately, the feat at HMV seems to have been superhuman – beyond even the powers of a demi-divine titan. In the bid to address the classic “clicks and bricks” dilemma facing legacy high street retailers – particularly those involved in the technology and entertainment sectors – Fox has scored highly rebranding HMV as an online brand, but stumbled on one of the basic precepts of his trade: retail is detail.

We can admire the strategic vision of recasting the core gaming and DVD area – together with a new co-venture into cinemas – as ‘screen-based entertainment’. We can appreciate the imaginative logic of introducing fashion lines into the high street offer. We can even sympathise with Fox over the catastrophic decline in CD and album sales generally – which has far outpaced predictions. But, oh dear, what about customer service? Judging from online commentary, not from the commentariat but the general public, HMV has become a byword for ignorant, unhelpful, under-manned and under-managed frontline staff. Only in part is this down to cost-saving retrenchment, which has squeezed numbers and forced out experienced (and therefore more expensive) sales people. Oddly, this shortcoming seems to apply only to the HMV arm of the group. At Waterstone’s – similarly ill-favoured by the e-commerce revolution – the lesson has been learnt that solicitous attention to customer needs is an integral element of post-digital survival in the high street. No coincidence, perhaps, that the book shops have weathered last year’s turbulent conditions rather better than the music and DVD side.

It’s not something that has gone unnoticed at Dixons – not so long ago the uncontested winner of the wooden spoon award for customer service. Like Fox, Dixons’s chief executive John Browett is a retail high-flier. His previous employer Tesco – which he left in 2007 – valued him so highly it would not let him stop working a day before his gardening leave was completed. In some ways, Dixons (then DSG) was in more of a mess than HMV Group when Browett joined. In a knee-jerk reaction to the internet, it had unwisely relegated the historic Dixons brand to an online presence (airports excepted) and confused the high street offer with a Currys.digital rebrand. Browett has managed to unwind most of this, regrouped the Currys and PC World brands under the Dixons monicker, streamlined the consumer electronics offer (with such rabbits out of the hat as an exclusive distribution deal with Apple over the iPad launch) and, most importantly, perhaps, embarked upon a massive staff retraining exercise. Halfway through his four-year turnaround programme, Dixons appears to be heading for a profit. We’ll have to see whether Browett maintains the momentum in 2011. But from the present vantage point, Dixons appears a much better recovery play than HMV Group.


Epica Awards give boost to France – and WPP

November 29, 2010

This year’s Epica creative advertising awards – the 24th in the series – sprang some interesting surprises. France was the lead country – both in the number of winners and total awards – for the first time since 2004. WPP’s Y&R was deemed the most creative agency group – far outdistancing the usual competition from the Omnicom Group. And one of the top winners was an iPhone app.

As one of the 26 trade journal editors drawn from across Europe to judge these awards (exceptionally, the winners are not decided by a jury of creatives) I can testify that recovery is definitely on its way – entries were up 10% this year to over 3,000. But it’s a patchy recovery. The year that has seen France emerge from a creative wilderness is also the year in which one of its two principal advertising trade magazines, CB News – founded by the legendary Christian Blachas, has gone into administration. Elsewhere, the quality of print work (at least, in my opinion) has improved after a long decline; by contrast this was not a vintage year for the television and cinema commercial.

A sign of the times was the ‘Streetmuseum’ iPhone’s app – devised by Brothers & Sisters for the Museum of London– bagging one of the competition’s top four prizes, the Epica d’Or for interactivity. With a museum as client, it was always likely to be a low-budget affair, but what good use it made of that budget. The app artfully exploits sized-to-fit historic photographs as overlays on present-day Google street-map technology to give a vivid impression of London’s past whenever a visitor looked up a landmark on his iPhone. The app shot up to 19th most popular free download and, so the museum reckons, has trebled the number of its visitors.

In the hotly contested film section (TV and cinema commercials) the winner was the somewhat controversial ‘Dot’ created by Wieden & Kennedy London and Aardman Animations for Nokia N8, a smartphone. As a piece of low-budget film-making it’s masterly and involving. On brief too: Nokia has fallen behind in our perception of a desirable smartphone brand and this film, which uses CellScope technology on a bog-standard phone to achieve a remarkable piece of micro-animation, helps to redress the balance. It is one of a series that highlights Nokia’s technical competence in the smartphone arena. The (admittedly non-creative) question mark is: how much of a media budget was spent on disseminating the message? In other words, how many people have seen it?

Stacked up against ‘Dot’ in the final heat was Fred & Farid’s bizarrely amusing ‘Anytime, Anywhere’ TV and cinema ad for Orangina. A series of animals (from giraffes to bears and gay cougars – my own favourite is the iguana sketch) impersonate the actors in a range of cliched television ads, from floor-cleaner to car polish, breakfast cereal to energy drink and zit-buster. The common factor being Orangina starring as the product in every ad. Cut to bloke watching the ads on television, nuzzling up to a sheep (presumably his wife) on the sofa. Animated hommage to Disney, satire of the advertising industry? Who knows? It could only be French. Try it and see:

In the circumstances, there were other commercials that should have made it to the final cut. For example, Ogilvy’s Dove Manthem (you know the one: sing along to William Tell), which was the winner in the toiletries and healthcare category.

Just as odd was the exclusion of Adam & Eve’s ‘Always a Woman’ ad for John Lewis. It lost out at the category stage to Sapient Nitro’s ‘Sneaker Mastermind’ work for Footlocker. Not itself a great ad, but one not dogged by a plagiarism controversy.

Fred & Farid may have been pipped at the post by ‘Dot’ but they triumphed in the outdoor category with an Epica d’Or for their Wrangler Red work. The ‘animal’ theme (lots of that this year) is not new, but the photographic execution was considered outstanding.

More interesting was the final major category, the print Epica d’Or, where M&C Saatchi’s ‘The Last Place You Want to Go’ ad for Dixons narrowly beat BETC Euro RSCG’s Evian ‘Baby Inside’ work.  Evian has made the baby theme something of a trademark these past ten years, each year developing it in a new and interesting direction. This year the image was of adults with the bodies of babies superimposed on their white t-shirts: simple and effective.

But not as startlingly unusual as the Dixons ads, which appealed to the head as much as the heart. It’s good to see outstanding retail print work, full stop; but even better when it employs witty, old-fashioned long-copy which makes elegant fun of the retailer’s rivals. In the eternal struggle for mastery between copy and image, copy definitely won out this year.

So much for the work, but what of the winning countries and agencies? It was noticeable that while France was easily ahead in all winning categories – winners, silver, bronze and total awards – Britain managed to nail three of the four Epica d’Ors (film, interactive and print). It came third overall, but behind France (a long way behind) in the categories winners’ league. Sweden was number two overall, with Germany in fourth place. Far down the league table was the usually feistier Spain.

The top agency was Sweden’s Forsman & Bodenfors, Gothenburg, with 15 awards in total, four of them category winners. Serviceplan Gruppe, Munich & Hamburg – a previous winner – came second. The more important insight to emerge, however, was Y&R’s easy dominance as top network. It had 8 winners across four offices, compared with next-placed DDB’s 4 winners across the same number. Ogilvy came third with four across three. BBDO (like DDB, owned by Omnicom), often an overall winner, has drifted well down the table  (3 over 2).

Taken at face value, that’s something of a pat on the back for WPP creative supremo John O’Keeffe, whose avowed aim is to displace Omnicom as creative top dog. O’Keeffe has his eye on the Cannes Awards, but Epica winners have often proved a useful harbinger.


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