Bringing impulse to the masses, online (literally)

Sugar rush hour from Bianca Consunji on Vimeo.

Alex "Tracks" McFarland, 25, makes $150 a day selling candy on the D train, illustrating the fact that cuts in public services may give rise to the formation of alternative, irregular service networks...

A new study indicates that tax evasion is more about a combination of the shadow economy, taxation and the institutional setting than tax rates alone. In other words, the integrity and efficiency of the public sector is connected with the shadow economy because a more honest and proficient bureaucracy increases the probability of catching tax dodgers. In addition the cuts in public services may give rise to the formation of alternative, irregular service networks.

Others may simply see the shadow economy as an alternative and very efficient route to consumer..

Alternatively, a nice little weekend earner for KAMs?   

Have an income-boosting break, from the NamNews Team!
Source http://andrewsullivan.thedailybeast.com/

Tesco plans for eurozone break-up?

According to the Telegraph, Tesco is shifting its currency exposure, holding cash and refusing to sign long-term supply contracts in the face of the eurozone crisis.

The retailer is thought likely to have cut its euro holdings and moved cash into safer currencies such as the dollar or sterling, as well as better managing its exposure to eurozone suppliers.

Add to this the latest report in the Wall Street Journal that ‘Some central banks in Europe have started weighing contingency plans to prepare for the possibility that countries leave the euro zone or the currency union breaks apart entirely, according to people familiar with the matter’.

The fact central bankers are even studying the possibility, which until this autumn  was considered unthinkable, underscores how swiftly conditions have deteriorated.

At least one - the Central Bank of Ireland - is reportedly evaluating whether it needs to secure additional access to printing presses in case it has to churn out new Punt bank notes to support a reborn national currency. A denial was issued by the bank this morning.

The reason for the focus on printing is because should a decision be made to revert to a pre-euro currency, it is vital that ATMs begin to issue the new currency immediately to avoid a run on the banks…

Then comes a 50+% devaluation in order to drive up exports, and queries re the payment of sovereign debt…

Otherwise, there is no point in making the change…

Got to be worth a 'what if' on the impact on your categories and customers?

Opportunity or Threat?: Charity re-brands donated counterfeit clothes

Every year customs and trading standards spend a fortune on storing fake clothes while waiting for a court decision, and then once the items have been proved to be fake the authorities have to fork out further for incineration or landfill costs.

His Church charity has removed all such costs and pass on the high quality goods to some 250 homeless centres and women's shelters across the country, a really virtuous circle….

In fact, the industrial sewing machines they now use to patch over pirated labels were recently given to them by UK customs officials, who had seized the machines from criminal gangs who were using them to create counterfeit clothing (see vid)

In just six years, His Church has managed to convince 90% of British Trading Standards authorities to hand over all the fake designer clothes they seize to them.

A Threat for brand owners? Technically a removal of demand in the market, but the target audience is not in the market, and the goods are rebranded…

For the big thinkers, an Opportunity to avoid waste and do some good, below the radar, almost… 

N.B. ...and not just clothing (see van logo in pic above)

OTSW - a SWOT tool for mixed-up times?

Because SWOT is spelled that way, users tend to start with Strengths, attempt to eliminate Weaknesses, explore Opportunities and obsess on Threats, in that order.

For the past 30 years I have been applying the technique as OTSW, based on the logic that Opportunities and Threats are outside the business, are independent of it and transient, whilst Strengths are not absolute, but are relative to Opportunities. Threats are outside restraints that simply need to be factored into the exercise.

Weaknesses need not be terminal, but simply need their ability to dilute strengths constrained. Attempting to eliminate weaknesses takes precious time, and at best creates a ‘perfect’ organisation for an opportunity that has moved on….

A ‘new’ tool for crazy times!

Know any SWOTs who might benefit from a switch to OTSW?

Ex-supermarket boss in surprise Slovenian election win

A new centre-left party headed by Ljubljana's popular and charismatic millionaire mayor won a surprise victory in struggling euro member Slovenia's elections Sunday, promising a more "efficient" state.

Despite describing himself as a leftist, the flamboyant and populist ex-Mercator boss Jankovic -- who only entered the race at the last minute -- has pledged to run the country like a company....

A pointer for the UK and Sir Terry?

Today’s Special Offers: Suspicion & Brand Equity Dilution!

Britain's biggest supermarkets spend a lot of advertising money telling the consumer they offer great value. But an investigation by Panorama (tonight BBC1, 2030) will reveal that not all "bargains" are quite what they seem. (detailed examples)

The deals at Asda, Tesco, Morrisons and Sainsbury's might seem to be everywhere, but strip away the jargon and catchy promises of "huge savings" and "special offers" and you are just as likely to find tactics that experts say range from a bit cheeky to others that could lead to prosecutions for breach of consumer protection regulations.

However, the law is a way of dividing up what remains of an asset, after the event, rather than a means of preserving its value. Legislation is not intended as a means of preserving brand equity. In fact, by the time the authorities resort to legislation, the ‘crime’ will have already have caused irreparable damage to a consumer’s perception of a brand, be it product or store….making the savvy consumer more cynical as they attempt to second-guess the brand-owner, and possibly causing the cautious shopper to suspend the purchase.

It could be said that everyone should make their own minds up on value, but surely the whole idea of branding was originally about giving value-assurance ‘every time you open the box’ i.e a tube rattling around in carton is already speaking for itself and eroding brand equity…

In other words, by the time the authorities act the damage to brand equity has already been done…

Leaving the legalities to the lawyers, it is perhaps more productive to explore impact on brand equity

Impact on brand equity

Savvy consumers enjoy unprecedented access to price comparison facilities and are buying a combination of Product, Price, Presentation and Place when they purchase a brand. This gives the consumer a basis for comparing brands in a category, and diluting price credibility thereby undermines the shoppers perception of value of this ‘package’ possibly making the competitor’s package more appealing in terms of value, resulting in a compromise on fit with consumer need. In other words, another opportunity handed over to the opposition...

Impact on retailer equity

Whilst retailers have already absorbed insights from ‘brand experts’ and run the store like a supplier’s brand, with some success, it might be to their benefit to reflect on the fact that a shop is more like a house-brand than a single product brand. In other words, shoppers are buying the ‘House of Tesco/Asda/JS/Morrisons’ in terms of store brand equity and not individual brands.

Suppliers of house brands are doubly careful in the marketing of their products when offered under the Company name i.e. a bad product failure can negatively impact the entire product portfolio. So too retailers should not underestimate the difficulty in restoring shopper-trust following ‘misleading’ promotions associated with the entire store...

Whilst retailers may feel that individual brands will absorb the negative impact of ‘misleading’ offers that are technically within the spirit of the law, it may be worth bearing in mind that shopper-perception may be more important than reality, especially when shoppers are unwilling or unable to analyse the offer and make a like-with-like comparison of value. It can be easier for the shopper to simply allow one extreme example, or TV programme (!), to represent the entire shop, and switch allegiance to an alternative, more trustworthy retailer…

Either way a loss to brand and shop, and ultimately a waste of brand investment.

Action:

Both brand team and NAMs need to monitor execution of pricing and promotional mechanics instore. Whilst the short-term sales uplift may boost short term performance in these unprecedented times, brands owe it to the consumer and trade partner to think like a shopper and help them make like-with-like comparisons that benefit brand equity, long term…

Rugby-Dad throws punch at son’s opponent in Top 14 league game

Parents often cheer their children on from the sidelines at sporting events but Biarritz number eight Imanol Harinordoquy's father took his enthusiasm a little too far on Tuesday when he tried to punch a Bayonne player during the Basque derby.

Lucien Harinordoquy, 61, walked onto the pitch early in the Top 14 league game when his France international son clashed with a pair of Bayonne players and attempted to punch one of them, Jean-Jo Marmouyet, in the face.

Before he was able to make contact with Marmouyet, Harinordoquy senior was tackled by Bayonne flyhalf Benjamin Boyet.

Biarritz won the game 21-19 and Lucien Harinordoquy apologised for his behaviour, saying

"I was under pressure and for other reasons, I lost control. I regret my behaviour."

Could this be a pointer for pressured KAMs that may be tempted to involve their families in anticipation of a difficult session with the buyer?

Have a fairplay weekend (dads permitting), from the NamNews team!

Tesco beats most European sovereign states!

Tesco has raised $1bn (£640m) of debt at interest rates cheaper than most European sovereign states.

According to the Telegraph, Britain's biggest retailer offered investors interest of 2pc and 2.7pc on three–year and five–year debt respectively. That compared to Italy, which sold three–year government bonds with a yield of 7.89pc............... Money-machines that happen to sell groceries?

Apart from savvy consumers being willing to trust Tesco more than banks with their money, the market is now showing that shoppers feel the same way about Tesco and politicians….

In other words, instead of politicians running the country like a shop, perhaps it is time to hand the job over to professional shopkeepers?

Seriously, does anyone still believe that finance-based negotiation is a discretionary skill-set in optimising supplier-retailer relationships?