Published on: 06 Aug 2017
How do you make $1 billion in 4 years?
Well, the answer is fairly straight forward if you come up with a good idea and have some good friends.
I guess it also helps if you are the famous actor George Clooney…
Mr Clooney and two of his friends – Rande Gerber (the husband of super model Cindy Crawford) and Mike Meldman the property tycoon – reportedly used to play golf together and had properties on a golf development called Casamigos (meaning House of Friends in English).
Playing golf wasn’t the only thing that they did together as friends as they also used to drink tequila. The problem was that they found that the tequila they drank was of mixed quality. Some was good but at the other extreme some was pretty bad.
It was reported that Mr Clooney suggested that they create their own tequila which “didn’t burn going down, that was super smooth and … that we could drink all day long and not be hungover in the morning”.
As a result of that idea, back in 2013 they set up a business producing Casamigos tequila and it’s done pretty well. So well in fact that the drinks giant Diageo has purchased the business for $1 billion split between a $700 million initial payment and $300 million over the next 10 years depending on performance.
Given that only 120,000 cases of the Casamigos tequila were sold last year, that’s a big figure but Diageo are obviously looking to scale up sales it up to a global audience (so far Casamigos has been targeted at the North American market).
Either way, it’s a good return for Mr Clooney and his friends and I’m sure they toasted the sale with a shot or two of tequila.
Then again, maybe they decided to celebrate with champagne and we’ll see a George Clooney champagne in a few years’ time…
Published on: 17 Jul 2017
Roger Federer became arguably the greatest ever male tennis player when he won a record 8th Wimbledon title by beating Marin Cilic but did you see what he was wearing?
Now, I’m not talking about his shoes, shorts or top but rather something less associated with the sport of tennis.
Sponsorship is big business for the top sports stars and as far as Mr Federer goes he’s doing pretty well when it comes to sponsorship. Forbes named him as the world’s highest paid tennis player last year when his prize winnings and sponsorship deals earned him over £50 million.
Winning Wimbledon was a good opportunity for Federer to add to his earnings (the prize money for winning Wimbledon was £2.2 million this year) but it was also a good opportunity for the sponsors to be associated with such a successful person (and of course hope that people will buy more of their products!)
Federer has a number of sponsors ranging from Nike to Credit Suisse but back to what he was wearing though and did you notice the watch that he wasn’t wearing during the match but was wearing when he was presented with the trophy?
Another of his sponsors is the Swiss Watch Manufacturer Rolex and after Federer won the match he quickly put his £6,000 Rolex Oyster Perpetual Datejust II onto his wrist before the presentation.
The end result was no doubt a very happy Rolex company whose watch was on the front pages of all the newspapers.
Some great publicity for the company.
Will we see this trend for tennis players putting designer watches on before they are presented with a trophy expand to other sports?
Will we see the captain of the winning team at next year’s football World Cup wearing a watch when he lifts the trophy??
Published on: 22 Jun 2017
One of life’s great mysteries for men when they are at a bar or club is why women always seem to go to the ladies “powder room” in groups.
There could soon be an equally mysterious occurrence that women will puzzle over and that is why men will soon disappear to the “gents” together during a social evening out.
Well, it won’t be to adjust their makeup or to catch up on the local gossip.
No, if UK company Captive Media has anything to do with it the visits to the toilet by men could soon be a great marketing opportunity.
It’s been estimated that on a night out a man spends on average 55 seconds relieving himself each time he visits the urinals in the gents (if you ever saw a person with a clipboard and a stopwatch behind you at the urinals now you know why…)
In the eyes of Captive Media this represents a great advertising opportunity as rather than staring blankly at the wall in front of you (or telling the person with the clipboard and stopwatch to go away) they have developed a urinal-based games console which allows men to, how can we say it but aim and shoot at targets with their “stream”.
The games are mixed with adverts and include for example a downhill skiing game which is controlled by your “stream”.
It remains to be seen what products will be advertised in this way but one thing for sure ladies is that if your boyfriend or husband returns from the gents whilst you’re out together on a social evening and he says that he’s just beaten his personal best then you know what it refers to.
Published on: 16 Jun 2017
A good friend of mine collect labels from beer bottles. As he travels around the world on holiday or business he collect labels from bottles of the local beer.
I think it’s a nice idea as it is a unique souvenir of where he’s visited, it’s relatively cheap and perhaps most importantly it gives him a great excuse to try out some local beers.
Things may be about to become more difficult for him though as a number of beer producers seem to be changing their marketing mix to save money and (some would argue) make the bottles look more fashionable.
As a lot of readers will appreciate, the marketing mix is also known as the 4Ps (Product, Price, Place, Promotion). If you look at the product component of the mix then not only does it include the beer itself but it also includes the packaging. This packaging in turn includes bottles (both glass and plastic) as well as cans.
Drinking some bottles of beer during a recent evening out with friends at a restaurant got the accountant in me thinking about what it costs to create the bottle that holds the beer.
Well if you think about it the raw materials that go into the bottle are glass (for the bottle) and metal (for the top) together with paper and glue for the label.
How can you reduce the cost of the packaging?
Can you reduce the quantity or quality of the glass? This would be tricky as the bottle could break.
What about the top? Again, this is awkward as you don’t want the beer to suddenly start leaking from the top of the bottle.
That leaves the paper and glue for the label and what a number of manufacturers now appear to be doing is producing bottles without the main label on it but instead embossing the name of the beer on the bottle itself (no additional material costs) and having the only label as a small paper “collar” around the neck of the bottle. An example of such a bottle can be seen in the image above from the successful Fosters Beer adverts in the UK.
Reducing the label size seems to make sense for bottles of beer that are sold in restaurants. After all, the label on the bottle has little impact on the purchasing decision when a person is looking at the menu or asking the waiter or waitress what beer they have. They may even know what beer they want already or can’t see the bottle anyway so the bottle wouldn’t impact on their decision.
It seems a good idea therefore for the beer companies to save money by removing the labels. Even though the paper used by one label is quite small, if you multiply that by the thousands of bottles which are sold around the world every day it could turn into a very significant saving.
What is interesting though is that if you go into a shop or supermarket that is selling beer, you will see bottles which have larger more “attention grabbing” labels on them. As people are wandering through the supermarket aisles they haven’t necessarily made up their mind whether they want to purchase a bottle of beer or if they have, what particular beer they want so having a big label which will grab their attention is a good thing.
In summary then it appears that two out of three people are happy. The accountant in the beer company is happy as production costs have been reduced due to reducing the labelling on the restaurant bottles. The marketing person is happy as he or she can use their skills on the design and thought process behind the labelling for bottles that are sold in supermarkets.
As for my friend that collect the beer bottle labels well my guess is that he may soon be unhappy as instead of trying to peel off the labels from the bottles whilst sat at a restaurant table he’s having to try to do that at the supermarket…
Published on: 21 Feb 2017
Nowadays more and more children are eating at restaurants with their parents. Whilst this can be great for the restaurateur, there can also be problems.
On the positive side, allowing children into restaurants with their parents should bring more family customers into the restaurant but on the negative side, if the children misbehave or run around causing chaos then some customers will be put off spending time in the restaurant.
If you head to a child friendly restaurant such as the fast food giant McDonalds then you would expect children to be children and to be loud, excitable and bouncing around.
But what about if you run an upmarket, select restaurant with clientele who are looking for a quiet time to relax over a good quality meal and fine wines. Boisterous children could damage the image and banning children from the restaurant would be a bit extreme.
Antonio Ferrari, the owner of an upmarket restaurant in Padua, Italy has come up with a novel approach to encouraging good behaviour amongst the junior member of families visiting for a meal.
He has introduced a “polite children discount” which offers 5% off of the bill if children are well behaved.
The Times newspaper quoted Mr Ferrari saying “We are not set up for kids – we have no crèche, the spaces are tight, bottles can be knocked over and we have a clientele that spends a bit of money to be tranquil while eating well.”
Has it been a success?
Well, one thing’s for sure and the discount hasn’t been offered that often.
In the 6 months the scheme has been active, there have only been 3 occasions the polite children discount has been offered.
Published on: 01 Feb 2017
Traditional retailers are facing a lot of challenges nowadays.
If you’re selling items from a shop for example you’re facing the challenge of the ever-increasing number of people buying things online. Small retailers can find it hard to compete with the big players like Amazon who have the advantages of economy of scale and brand awareness.
In addition, some products are tricky to deliver.
Take wine for example. If you order a bottle or box of wine online and it’s delivered to you at home, what’s going to happen if you’re not in?
What’s going to happen to that box of wine if it’s left by your doorstep or with your thirsty alcoholic neighbour?
Garcon Wines, a London based vintner has come up with a novel approach to overcome this problem. They have introduced a wine subscription service which delivers wine in specially designed bottles which can be posted through the letter box.
The plastic bottles are long and slim, and come in post-box friendly sizes so after a hard day at the office you can return home and find that bottle of wine you’ve been looking for.
Admittedly, finding the wine in a plastic bottle in a cardboard box which has been posted through the letter box and is on the floor isn’t quite the same as being poured a nice glass of wine whilst relaxing in the sunshine on holiday but changing the packaging design to help with distribution is a nice idea by Garcon Wines.
I’m sure a lot of people will drink to that.
Published on: 14 Dec 2016
Well, what can I say?
I admire them for being brave enough to do it but if I’m honest, by the look on some of their faces, I think a few of them aren’t sure that this will be the high point in their career.
Partners in accounting companies are renowned for being hard working and intelligent individuals.
One thing they are not renowned for is singing.
Now, whilst there are no doubt a number of partners who are good at singing, the PwC partners in Hungary have just released a video of them singing a cover of the famous John Lennon song “So this is Christmas” and it has confirmed that their finance and business skills are far superior to their singing skills (or at least I hope their finance and business skills are better than their singing…)
Congratulations though to them for getting into the festive spirit and their singing skills can be seen in the video below (if you’re viewing this in the office I’d advise headphones so as not to alarm any of your colleagues…)
Published on: 01 Nov 2016
What do you wear to work?
If I had asked that question 10 years ago the chances are that a large proportion of answers would have been “a suit”.
Things are different now though. Tastes are changing and so are a number of office dress codes. As a result, fewer people are now wearing suits to the office.
A number of major companies revised their dress codes this year. JP Morgan for example decided to allow their employees to wear business-casual attire on most occasions. PwC also switched to a more casual dress code where employees were allowed to wear jeans as long as there were no client meetings.
Whilst this relaxing of business wear rules can have benefits for individuals who prefer to work in more casual clothing, there are some organisations who will suffer.
Fashion brands focussing on tailored men’s suits are an obvious example of a business which could suffer due to the decline in demand for men’s suits.
Brioni, the Italian menswear fashion house owned by French holding company Kering was founded in Rome in 1945 and is renowned for its high-quality suits. It has had numerous famous faces as its customers including James Bond in the Bond films from Goldeneye to Casino Royale and more recently it was reported that Donald Trump has been wearing Brioni suits during his US presidential campaign.
But things aren’t going well for Brioni.
Earlier this year Bloomberg reported 400 job losses due to a fall in demand and recently Justin O’Shea, the creative director of Brioni who was brought in to modernise the luxury Italian brand, left abruptly after just six months in the job.
Mr O’Shea is well respected in the fashion industry and has a reputation for being a very straight talking person. He told Vogue that “First of all, I would change the shitty logo. I would change the campaign. I would change the clothes. In fact, I would change pretty much everything.”
When it comes to change though, one thing seems certain and that is that the fall in demand for men’s suits is unlikely to change given the relaxing of more and more office dress codes.
Published on: 08 Oct 2016
How much do the Louis Vuitton handbags cost?
A lot is the simple answer but some recent research by Deloitte’s has shown that the price of luxury items varies significantly around the world and foreign exchange movements play a big part in that valuation.
According to Deloitte, in US dollar terms London is now the “cheapest” city to buy designer and luxury goods.
Since the Brexit vote in June, at the time of writing the pound has fallen by more than 17% against the dollar (i.e. you need 17% more pounds now to buy the same amount of dollars you would have received back in June).
According to the research, on 7 October a Speedy 30 handbag from Louis Vuitton costs £645 ($802) in London, €760 ($850) in Paris and $970 in New York. China was the most expensive place to buy it with the handbag costing 7,450 Yuan ($1,115).
Nick Pope, fashion and luxury lead at Deloitte, told the BBC that “the trend in luxury pricing in the UK is being driven mainly by the depression on the sterling – thus making the same item more affordable in the UK than in any other luxury market”.
Of course, if your income is in British pounds then the cost to buy the handbag in London remains the same. If however your income is in another currency such as US dollars then it is $313 cheaper to buy in London than in China for example. If you are stocking up on your luxury handbags should you be planning a trip to the UK?
It’s not just the ladies from outside the UK who are buying luxury handbags who could be benefiting from the exchange rate movement.
Any male readers may be interested to know that a Brunello Cucinelli cashmere V-neck sweater now “only” costs £650 ($843) in the UK compared with $942 in France and $995 in the US.
$843 for a sweater?
Please form an orderly queue as you rush to the shops to buy one. Or maybe two…
Published on: 22 Sep 2016
Should you employ good-looking people or not so good-looking people?
Whilst the obvious answer would appear to be that it doesn’t matter what a person looks like as long as they can do their job properly, researchers in Japan have found out that the attractiveness of an employee can have an impact on the sales of a business.
Interestingly though, it’s probably not the correlation most people would think applies.
Researchers at the Chinese University of Hong Kong studied retail sales in shops and found that the more attractive the shop assistants of the opposite sex were, the lower the sales were. The researchers found that male shoppers were less likely to go into the shop if the more attractive woman in the research study was serving.
Even if they entered the shop with the attractive shop assistant in it, only 40% of them bought something. This compared to 56% who purchased something when a less attractive assistant was serving.
Lisa Wan of the University said “attractive service providers can lead consumers to become self-conscious or embarrassed. This is especially true when the provider is of the opposite sex. Even when the attractive salesperson is the same sex, consumers may feel a sense of inadequacy through self-comparison.
In either case, the shopper may avoid interacting with physically attractive providers, rendering the salespeople ineffective”.
It’s worth mentioning though that the scientists undertaking the research were monitoring a shop selling figures from Japanese comics and the male shoppers were obsessed with computers.
“Male shoppers obsessed with computers” – surely they would only notice the female shop assistant if she was holding a computer?