Learning from other Brands

I have recently been trying to absorb a lot of information about different business models and how they affect the outcome of businesses.

Two books I have enjoyed reading are “The Story of Green and Black’s” and “Innocent, Our Story & Some Things We’ve Learned”.

Both books are an interesting read but I think the Green and Black’s book is perhaps less aimed at selling more of their own product or more about the story for the sake of the story.  What is most striking is that neither of these businesses (or many others it seems), concern themselves with the manufacturing or logistics / warehousing aspects of their business.  These are outsourced.  Both businesses put great emphasis on maintaining control of the supply chain by purchasing raw materials directly from source, particularly if there is a marketing or brand story attached to this.

They then focus on the routes market, trade marketing, sales, and brand building amongst end consumers.  This model offers perhaps greater flexibility and certainly less overheads and things to think about when building the business.  The only counter to that is that the business itself doesn’t actually make anything! Whilst this can be seen as a benefit, and some people would argue it is creating value in the brand, it does also expose the business or brand to a much greater risk of acquisition (because the value of the business is lower) and the threat of direct copy-cat products made by someone else.  Nobody has to ask the question “This looks quite difficult to make, how do they do this?”  This does not appear to have happened with either of the two brands I have mentioned but I still think it is an important consideration.   Businesses with a manufacturing technical competitive advantage as well as a strong brand must hold more value than those that don’t.

Other useful things in the books:-

–          Use PR.  Launching a brand is a story in itself

–          Do competitions.  Winning awards is great for your brand if you shout about it

–          Sample your product.  People need to know how good it is

–          Don’t compromise of what makes your brand unique.  Celebrate it and push it to the limits

–          If you can’t afford a big advertising campaign, unfortunately you will still need to advertise, so find innovative ways of doing it cheaply.

–          Target listings in stores that have high credibility and work hard to make them work

–          Always keep a good handle on your costs both fixed and variable

–          If you are small and competitors are big, think more quickly and execute more quickly than they can, but do so to the same quality standard

–          If things don’t work it doesn’t matter as long as a) you both realise it and know why b) you have some else to try next

–          Your packaging is your most important sales advertisement – get it right and don’t compromise on anything

–          For every £10 of extra cash for marketing that your competitor has, you must have £20 worth of passion and commitment

–          Build links with likeminded people, businesses and brands in different categories.  Make a club and share insights and ideas

–          Never be afraid to ask for help

–          Always always negotiate to get the best deal.

–          Find a good marketing consultant!!!