1024 Drop - Verify To Trust

Tom Cruise & Fish šŸŽ£

šŸ‘‹ Good Morning from a surprisingly sunny London šŸ‘‹

The 1024 drop is here with a number of interesting must reads, listens and a couple of must watch videos.

Themes Featuring In This Drop ↓

  • šŸ—Going beyond being a treat brand

  • šŸ‘®Brazil’s latest trend police influencers going for office

  • šŸ’Ŗ Actionable & leadership tips for any business

  • šŸ¦‹ Sports giving you wings?

  • ā˜•ļøThe deep-dive into Starbucks and why they are desperately trying to become a connection brand again

Unfiltered 🤫 I have started a new publication with friend of Must Reads Harry Lang and many other senior Marketing & Business leaders.
Join us as our first instalment that went out this morning & then fortnightly afterwards
→ https://www.marketingunfiltered.co/subscribe 

Lets dive into 1024 Must Reads ↓

→1 Police Influencers Going For More Power - Who knew police influencers were (A) a thing and (B) so popular they go for higher power and go into politics from their fan base. I am not surprised and although this is more specifically a Brazilian niche, we will see many political parties look to leverage influencers and creators to go into their parties and influence the younger demos. I worry that many are set up for a fall and the political parties know this and will pray on this tactic for the next few voting cycles. We are 3 elections into the true power of social media and until there is change (Meta are attempting to help here) we will see anyone with a large audience being wooed into politics. Not so sure…Just look at TikTok and count the politically charged videos.

→2 Being More Than A Food Brand - Going from a food brand to a lifestyle brand is something very few manage, Chick-fill-A are (despite what is being suggested) smartly going into the lifestyle space and becoming what I call ā€˜an everyday brand’ - trying to connect to their audience every day away from having to advertise and gather information from their customers on every visit/order. This is likely going to reduce the need for new and increasing food meal deals like so many of their FMCG competitors. Don’t expect many to try it but being in your customer’s lives daily is the holy grail for so many brands.

→3 365-Day Exec Plan Outline - If you are a manager or more senior in your career and thinking about a new job or inline for a promotion, this 365 day plan will help you to rethink how you plan out your year and the activities to take to be more successful.

→4 30+ Actionable Ways To Improve Your Leadership Skills In Simple Steps - Is your company underperforming or making big changes that your colleagues aren’t brought into? Here are 30+ ways you can make recommendations to help. With stack ranked

→5 How Algothrimic Social Media Has Blindsided Society - Social media has changed so many people’s lives, some for the better but many for the worst. I was lucky to meet my better half on social media and have met great friends and business connections on social. But on the other hand I know many people who have been bullied, and their children suffer 247 attacks from kids from how many friends they have, how little engagement they get on their posts to falling for a DM from a bully.
Having worked in brands that rely on social media and being hindered with tiny algorithmic updates it can be stressful.
Most people are still unaware of the power and external influence of social media platform and we are only just learning about foreign actors influencing our day to lives to modern day elections (it suggested this US election is the TikTok and podcast election)

Ā» An interesting observation recently is how TikTok and Reels are becoming trusted far more quickly than ever before and now they serve content bundles (the same content themes being served every few swipe) far more aggressively.
One prime example of this is conspiracy theories being served and then spreading like wild fire via DM’s. Tom Cruise’s love for specific fish (be careful of searching for this!) being one I never knew (i) I wanted to know anything about (ii) have so many opinions served at me…

Following on from ads are everywhere piece in Baseball there is huge uproar in showing ads on the batters helmits. We are likely going to see more ads (think cricket and on rugby headgear) coming onto more kit and safety gear across sports.

→6 Netflix ReJig - Netflix are on another push, (i) from growing users in ad+ subscriptions to (ii) closing its AAA gaming studio (these make blockbuster games) and then relying on causal games (think games on phones and connected to Emily in Paris or Stranger things) and (iii) struggling to grow their advertising program despite the growth in subs. All of these changes impact us as the more shifts they make, the more these companies rely on customers to fund changes or reshuffles through subscription increases.

→7 Arc’teryx’s Moment - Arc’teryx has become a fashion stable and maybe a surprising one. The price tag and quality combination has helped it to be seen as the luxury must have, especially in the fashion industry. They have made many smart moves including going into retail through D2C (they are a touch to trust brand and high end prices means customers usually want to feel the quality first).

→8 How Conflict & Appetite Is Impacting Chinese Tourism - Travel was supposed to boomerang back, it did in part and now it is normalising again. What the industry is seeing with the Ukraine conflict is closure to Russian airspace meaning a much longer flght path from the US. It’s negatively impacting travel to China, alongside many people not open to going that once where. I suspect we are going to see this continue and many potential visitors make alternative plans. With the way Chinese media is pushing more national travel in China we may see ripple effects from lower levels of tourism.

→10 Red Bulls Marketing Engine To Sell 12Billion+ Cans - Red Bull is a machine, still the most dominant energy drink on the planet and much of this is driven by their wide side of marketing in extreme sports and events and then their increasing footprint in sports ownership in football/soccer teams (RB have 42 sports teams connected to them in total). Red Bull is a brand that has worked out if its mentioned and seen repeatedly (like Coca Cola’s former be in the eyeline every 6 seconds rule) it will sell more cans and keep marketshare. (This is a paid for article, hit reply and i’ll share an alternative open version).

→11 10 Years Of Digital Payments - If you like podcasts, here is a great interview with the VP of Apple Wallet and Apple Pay Jennifer Bailey discussing how wallet came about, how they planned and leveraged internal usage data to make it a default payment method for so many people, with a hint to the future replacing physical wallets.

Bouns From Me → Battle Of The Supermarkets - I was invited onto a panel reviewing how supermarkets offer discounts via their loyalty programs, it is UK focused and the TLDR is many supermarkets need to think about their c-store (local and metro style stores) strategy to reduce costs and offer their points on delivery orders from the likes of JustEat & Uber Eats (props to Co-Op for offering this)

Starbucks Fight For Relevancy ā˜•ļø

The Must Reads Deepdive — Starbucks is an institution and a status symbol but they have been struggling!
Starbucks were on a tear but it made a strategic shift back in 2019, doubling down on mobile, non-coffee drops (the viral & trendy sugary drinks kids crave share on instagram), alongside a shift to ice coffees and the movement away from a third space (where you hang out thats different to home and work) is all resulting in declining sales, a new CEO has made a sweep of changes centred around putting ā€œconnectionā€ at the heart of the reshuffle. Will this shift help Starbucks get back to the global coffee chain of choice? Experts from China and America do not agree it will…

The Problems Broken Down Further

  • Cold drinks are now 75% of all sales for Starbucks - these take longer to make and often have less margin

  • Custom orders and viral orders became real issues for stores and franchisees and made wait time skyrocket

  • From the CEO’s own admission they have too much choice with ā€œOverly complicated menuā€ - regulars will be fine with it, new or infrequent visitors struggle. We are told choice is a good thing, it isn’t but when you get many people in through random drinks in random sizes you are going to struggle to simplify enough to make it a destination for standard coffee drinkers

  • The sugary Instagram and TikTok viral drinks have altered how others enjoy the brand - shaping a brand younger and more noisey turns away older customers

  • The app ordering became so successful it caused a backlog on orders and reduced the interactions with baristas (removing the opportunity for connection and upselling opportunities

  • Staff have unionised and repeatidly say how under staffed they are

  • The exec reshuffle has continued with (i) new CEO Of Chinese division Molly Liu & (ii) a new role created as the Chief Brand Officer to the current Yahoo’s CMO Tressie Lieberman (who worked with new CEO at Chipotle and appears to specialise in branded love)

Will Starbucks win back customers and make new customers regulars? I have more doubts, why? As spending curbs in economics shifts across the world, more competitors came out and offer better coffee with better value, the bucks will struggle to reclaim some they have lost and bring in new long-term loyal customers. Despite the new CEO being highly regarded and well respected, I think short term it is going to be a coffe bean blood bath but long term they will win back many who left. The real problem area acquiring new and then loyal customers without really good perk programme and free coffee offers.

The video below is a good reminder these videos are for shareholders not for Jo/Joe Bloggs…

Have a great weekend and i’ll see you in a couple of weeks

Danny Denhard