Would you prefer to read it or watch it?

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Marie Claire is one of the leading women’s magazines in the world. It was first published 75 years ago in France and now has various editions around the world.

Although I must admit that I haven’t read a copy in detail I’m told by some of the ladies in the office that it’s a good mix of fashion, beauty and health.

Next month’s issue though is going to have something which has never been seen before in a UK women’s magazine.

Now, I’m not talking about a woman’s magazine writing about the latest football results or the new Range Rover car that has just been released. No, instead I’m talking about a pretty innovative advert.

On pages 34 and 35 of next month’s magazine there will be a 45 second video advert. Yes, that’s right – a 45 second video will be embedded into the pages of the magazine so that when the relevant pages are opened the video will start to play.

Very impressive.

The video advert is produced using technology by US company Americhip and will be for a perfume by luxury fashion house Dolce & Gabbana and reportedly will feature two models posing near a coastal scene.

There’s a constant challenge for advertisers to identify eye catching adverts and this video advert embedded within the magazine will certainly be eye catching.

It will also no doubt be very expensive and the cost of including the video advert has not been disclosed. Interestingly the company that will be paying for the advert is Proctor & Gamble as they are the company that produces the perfume under license from Dolce & Gabbana.

Oh and before you all rush out to buy the magazine it’s worth checking that your copy includes the advert as due to cost reasons not all copies will have the advert in it. If you are lucky enough to get hold of a copy with the video in then it will no doubt be a good read or should I say a good watch.

Tennis star’s balls fall out of his shorts…

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Adidas and Puma are two of the top sportswear brands in the world.

Interestingly though they were actually started by two brothers.

In the 1920s in Germany, brothers Adolf and Rudolf Dassler set up a shoe making business but soon fell out with each other and went their separate ways.

Adolf (Adi) Dassler kept the original company but renamed it Adidas (named after his first name and part of his surname) whilst Rudolf left and set up Puma.

Since the split there has been intense rivalry between the two companies and over the years there have been some famous examples of both of them trying to outdo the other in terms of publicity.

For example, back in the 1970s at the start of the 1970 World Cup final, arguably the world’s best ever footballer famously stopped the referee with a last minute request to tie his shoelaces just before the kickoff. The result was that millions of TV viewers saw Pele tie up his Puma football boots.

An early example of “guerrilla marketing” and priceless publicity for Puma.

More recently there was some rather unusual publicity for Adidas.

At the recent Wimbledon tennis Championship in London, the unlucky losing finalist Andy Murray had a few problems with his shorts.

Adidas pay a significant sum to Murray to sponsor him and in return he wears Adidas tennis gear, including Adidas shorts.

In his Wimbledon match against fellow Adidas sponsored tennis player Marcos Baghdatis, he lost two points after a tennis ball fell out of his Adidas shorts mid-point (Murray puts one tennis ball in his pocket whilst taking his first serve in case he needs to take a second serve).

Luckily for Murray he went on to win his match against Baghdatis but for Adidas it could have been an embarrassing problem had he lost because of the design of their shorts.

Adidas reportedly said that the error in the depth of the pockets was due to the shorts being handmade.

There’s a saying that there’s no such thing as bad publicity and to be honest this has probably turned out ok for Adidas.

More people are probably now aware that Adidas sponsor Murray and they will no doubt change the design of the pockets so there’s no danger of the public seeing one of Murray’s balls popping out of his shorts in the future.

Are you strong enough to buy this?

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Now let me think. Drinking lots of beer and running as hard as you can into a metal vending machine. What could possibly go wrong?

In today’s competitive business environment it’s normally the case that companies want to make it as easy as possible for their customers to buy their products.

Over in Argentina though a beer company has taken an unusual (but in my opinion a brilliant) approach to selling beer.

In fact, if you’re talking in strategic exam business terminology, an unusual approach to the outbound logistics found within Michael Porter’s value chain.

Salta beer has designed a vending machine for all the rugby fans out there.

In order to get your can of beer dispensed from the vending machine you put your money in and then you have to body slam into the vending machine as hard as you can.

The nice twist to this is that there is a meter on the vending machine which is similar to the “hammer strength tests” that used to be found at old carnivals and fairgrounds. In other words, the beer will only be dispensed if you can run into the machine with a hard enough force and reach the “strength meter”.

It’s been designed to appeal to rugby fans who are used to seeing rugby players tackling their opponents.

The machine can be seen in action below and the next time you are sat down in a quiet Argentinean bar enjoying a relaxed drink lookout for the big guy behind you taking a long run-up and heading with his shoulder down towards the vending machine…

Which is more important to you – the first or last bag?

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It never ceases to amaze me. You’re at an airport, you check-in and then wave goodbye to your luggage. When you arrive at your destination you expect your luggage to arrive on the luggage carousel at the same time you.

I met an old friend last week who was telling me about a situation he faced a few years ago when working on a project at an airport.

The aim of the project was to improve the business process of unloading the bags from the plane and getting them onto the luggage carousel.

This is something we take for granted but the logistics involved are not always that simple and passengers can quickly get frustrated if they don’t get their luggage within a few minutes.

One of the Key Performance Indicators (KPI’s) in place to measure the efficiency of the process was the time it took to get the first piece of luggage from the plane to the luggage carousel.

Now whilst this may sound like a sensible KPI, it was also used to determine the bonus that the luggage handlers would get (the quicker the luggage was delivered the higher the bonus).

Unfortunately for the management of the airport it was also open to abuse.

It may seem obvious now but what was happening was that the baggage handlers were getting the fittest member of their team to literally grab a bag from the hold of the plane and run to the carousel so that the time between landing and the “first luggage on the carousel” was minimal.

Meanwhile, all of the remaining pieces of luggage would be unloaded at a much slower pace.

The end result was happy baggage handlers but unhappy passengers!

Needless to say management soon identified this and the KPI was changed so that it was now the time taken to unload the last bag rather than the first bag that was important.

Would Michael Porter sleep in this bed?

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Michael Porter is arguably the world’s most famous management theorist. His theories such as the 5 forces model and Value Chain Analysis are key parts of the syllabus for several ACCA and CIMA papers.

His generic strategy approach of “differentiation” and “cost leadership” has been around for a number of years and whilst there is a clear argument that a significant proportion of companies are nowadays trying to combine both approaches by aiming to differentiate the product or service whilst at the same time focusing on cost reduction, there is one particular segment of the hotel market that almost certainly has to differentiate to survive.

The boutique hotel segment inherently struggles to compete with the big national and international chains of hotels on the cost leadership approach (these bigger hotel chains will have significant economies of scale for example).

Instead, they will need to be “different” in terms of for example location or “friendliness”.

When it comes to differentiation, the aptly named Jumbo Stay Hotel will be hard to beat for people that are keen on airlines.

Located on a disused runway at Stockholm Arlanda airport, the Hotel is in fact an old Jumbo jet that that has been converted into a luxury hotel. The Jumbo Jet hotel has 27 bedrooms with 76 beds but the best room has to be cockpit which has now been made into a luxury suite with panoramic views of the airport.

The upper deck of the plane which used to house business class passengers is now a cafe serving fresh food and drinks.

We’ve blogged before about Ryan Air’s cost leadership approach to their flights and it’s nice to see a differentiation approach to another part of the airline industry.

Is this the new face of Ernst & Young?

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I guess we’ve all done it at some time or another.

We’ve woken up one morning and due to too much work (or too much drink…) you look in the mirror and think “oh dear” (or some similar but slightly stronger words).

Well step forward Mr Ed Moyse and Mr Ross Harper who when they looked in the mirror recently saw the Ernst & Young logo staring back at them.

Now this wasn’t a drunken night out at an EY party that went wrong. No, it was a deliberate move.

The two entrepreneurial university students were thinking of ways to reduce the student debt that they had built up when they came up with the idea of using their faces as mobile advertising screens.

They set up their website – buymyface.com – and are selling their “advertising board” faces for one year.

One of their first clients was EY who paid them to display the EY logo on their faces during a skiing trip to the Alps so that EY could advertise to potential new recruits.

The idea seems to have caught on and according to their website as of today they have raised £34,000 from selling their unusual advertising boards.

Their going rate for a day’s advertising on their faces has also increased since they started their business.  They are now charging £600 for a day’s advertising.

EY seem to be so impressed with them that they have now become the main sponsor of the website.

Does this mean that at some stage in the future your accountants “uniform” of dark suit and white shirt will be accompanied by the corporate logo painted on your face?

Not the best way to start a presentation…

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The IT guys I’ve met in my career have all been very nice people. Admittedly they all seem to be slightly mad and do tend to talk in a strange language with lots of mentions of “coding this and coding that”.

To be fair though they all probably think I’m slightly mad when I talk to fellow finance people in my strange language about “SOCI this and SOFP that”.

If you talk to your IT colleagues though one thing that they tend to take very seriously is the level of security.

Now whilst there are lots of higher level security precautions present such as firewalls and anti-virus programmes there are also some more simple precautions that you should take.

Memory sticks (or USB or flash drives as they are sometime known) can all contain confidential documents and most memory sticks are not password protected.

It pays to double check what’s on the memory stick you’re carrying around with you in case it contains confidential documents and you lose it.

In a similar vein it’s always worth checking what other files are on your flash drive if you’re about to make a presentation.

Unfortunately for Father Martin McVeigh, a Catholic priest in Northern Ireland, he didn’t check what other files were on the flash drive he was going to use when he recently did a presentation to some parents of children at a local primary school.

According to media reports, whilst loading up his presentation for the parents, Father McVeigh inadvertently showed a slideshow of indecent pornographic images onto a screen.

The x-rated slideshow was on the memory stick that Father McVeigh had put into the computer to load up his intended presentation.

Father McVeigh was understandably a bit shocked at seeing the naked pictures on the screen (although to be fair probably not as shocked as the parents in the audience were) and according to the BBC website he was “visibly shaken” and “bolted out of the room”.

He later stated that he didn’t know how the images got onto the memory stick.

And the morale of the story?

Well, I guess that IT security is not just the higher level technical areas but also the more simple areas such as making sure you know what else is on your memory stick…

Is the internet more important to you than being with your partner?

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With the start of a new year it’s often a time when people start thinking about new beginnings and even changing their job.

So what would you look for in a new job and what things are important for you?

An interesting study by Cisco shows that it’s not just salary that is important and for the younger generation that have been brought up with tech gadgets like Smartphones and social media sites such as Facebook there are certain things that are more important than extra cash in your pay packet.

Cisco’s Connected World Technology Report surveyed nearly 3,000 young professionals and college students aged from 18 to 30 in 14 countries and there were some interesting findings for any companies that are looking at the remuneration package that they should be offering new recruits.

The study identified that 33% of “college students and young employees under the age of 30 said that they would prioritize social media freedom, device flexibility, and work mobility over salary in accepting a job offer, indicating that the expectations and priorities of the next generation of the world’s workforce are not solely tied to money”.

So money isn’t everything in a remuneration package and in fact 45% of young employees said “they would accept a lower-paying job that had more flexibility with regard to device choice, social media access, and mobility than a higher-paying job with less flexibility”.

Whilst the report identified changes which could impact on staff recruitment there were also some more “personal findings”.

It found for example that 33% believed the “Internet is a fundamental resource for the human race – as important as air, water, food and shelter”.

Now, call me old fashioned but whilst the internet certainly is important, I personally feel the long term impact is slightly different when comparing your internet going down for two hours with for example your air supply being turned off for 2 hours.

In terms of the future of the human race there was also a slightly concerning finding where it was identified that “40% of college students aged 18 to 23 thought the internet was more important to them than dating or going out with friends”.

Is it better to be loyal or disloyal?

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We’ve all heard of the big coffee chains such as Starbucks and Costa Coffee and with their growth over recent years it’s become more and more difficult for the smaller independent coffee shops to compete.

Over in Singapore though a novel approach to competing with these “coffee shop big boys” has just been introduced.

Lots of businesses have a “loyalty card” programme whereby people earn various points each time they spend money with a company. They can then use these points to buy various items with the company.

The giant Tesco supermarket chain for example has one of the largest loyalty card schemes in the UK whereby “Tesco points” can be used to purchase Tesco products. Most international airlines also have loyalty programmes such as Sky team and Star Alliance where the points earned can be exchanged for free flights.

Antic Studios, a creative agency in Singapore has just come up with a new concept and it’s a “disloyalty card”.

The aim is to help a group of 8 smaller independent coffee shops in Singapore develop.

The idea is that an individual picks up a disloyalty card at one of the independent coffee shops. If they then visit the other 7 independent shops they get their card stamped and can then return to the original coffee shop to claim their free drink.

It’s a novel way of smaller companies who are in effect in competition with each other joining together to create awareness of themselves and encouraging people to try them out instead of staying with the big guys.

Smaller competitors working together to create stronger competition against the big coffee chains – a nice idea and well worth discussing over a cup of coffee.

Paper or plastic – which is best?

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Money makes the world go around but does it matter if it’s paper or plastic money?

A few years ago if you looked in your wallet or purse you would probably have seen paper banknotes. Dollars, Euros, pound sterling and other currencies had paper notes of various denominations.

Today though there are 23 countries around the world that use plastic banknotes instead of paper notes.

Canada recently joined the list of plastic note countries and has just launched a plastic $100 note.

Why the switch to plastic notes though as after all the world has managed with paper notes for plenty of time. There are a few reasons for the switch.

Durability is perhaps the major one. The usable life of plastic banknotes for example can be up to 2.5 times longer than the traditional paper note.

There are also better security features on the plastic notes. Sophisticated holograms on plastic banknotes make it more difficult for counterfeit notes to be made.

So with all these benefits why don’t more countries use plastic notes?

On the downside of things, whilst the useful life is longer the initial upfront cost of production can be quite a bit higher with more complex banknote production facilities required.

Some people have also said that plastic notes are more slippery and therefore more difficult to count large amounts of money. To me though this wouldn’t necessarily be a major problem if the large amounts of banknotes that were being counted were mine!

Whichever way you look at it the chances are that over the next few years more and more notes will be plastic rather than paper and for any of you that have pulled a pair of trousers out of the washing machine and found a soggy broken paper banknote in the pocket this can only be a good thing.