Industrial Tourism

Industrial Tourism is big business. It’s a little know fact the Boeing factory in Seattle has over  180,000 visitors a year.  At $15 a ticket that is approx $2.7 million in high margin revenue.

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Local Australia firm fosters brewing has a popular brewery tour at their Melbourne plant (you get a free beer at the end of it) as does Media conglomerate NBC in the Rockerfella Centre in New York. None of this is free, and they are all fully booked pretty much every day.  The thing that is almost as powerful as the cash such Industrial Tourism generates, is the relationship it builds with the brand.

It is pretty cool to be taken into the ‘secret back room’, even though we can all be pretty sure that Boeing or any large conglomerate are not about to give away any secrets on said tours. But this is where startups and SME’s can do it even better. We can let our early adopters into our Factory, Alpha testing, Retail back room, Warehouse, New Product Development session. We can let them expose our secret goodness to the market for us. Especially if we do something awesome like make great software, use recycled materials or anything creative.

So the question for startups is this: How can we let our early adopters and brand evangalists into our secret world to spread our world?

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Know what to do

I was thinking about my business rentoid.com and why I believe we, the rentoid team can succeed making this business something incredibly valuable for all our people. (I’ll do my next blog entry on those two important words, valuable & people).

These are the 4 reasons:

  1. Our concept has been validated in market.
  2. We know what to do.
  3. We know how to do it.
  4. We are are actually doing it – right now.

If you have these 4 factors working in your favour, then success is inevitable. Of course all of these elements need some explaining.

1. Our concept has been validated in market.

Firstly let’s look at the last two words in this sentence – in market. This means we have launched, we are live, we have customers, and revenue. We have gone beyond the idea (the easy part), and launched something which makes the original business launch plan a historical & irrelevant document. Concept validation – this has occurred when people are buying what we sell as well as any positive coverage we have. Coverage includes  people and media talking about what we are doing for other people, the people who buy from us, not us. Basically – the business has potential and isn’t a stupid whim.

2. We know what to do.

We’ve been doing what we do, selling what we sell long enough to know the crappy parts of our business. We know what we must improve to make our semi-broken, yet still alive startup get better. We’ve been around long enough to have feedback from the market which gives us a good indication of how to improve our ‘thing’. Until this point innovation, location, good people and lots of saying sorry has kept us alive. But time has nearly run out, and we’ve learned what must be done to grow and eventually thrive.

3. We know how to do it.

Not only do we understand the above conceptually, but we actually know how to make this stuff happen. We’ve gone beyond ideas for improvement like – make the website more usable, reduce the price of the widget, create national brand awareness or increase distribution, and actually have an executable plan in place. A plan which isn’t a pipe dream, but an achievable reality. A reality in which we have the team, the skills, the financial resources and the time needed to bring our improved offer to market.

4. We are actually doing it – right now.

The plans have been put down as discussed in parts 2 and 3. In fact we won’t even look at them again. They are now ‘historical documents’. Instead we are fully engaged in implementing what we have agreed is the correct strategy. They are live projects the team is actively engaged in on a daily basis which will fundamentally change the marketing mix of our business. The projects have budgets and deadlines and we will not rest until they have been completed. Only then will we go back to part 2, 3 and 4 again.

When we do this – we are on the path to success.

(Which by the way we should define as follows: Success = the progressive realization of a worthwhile ideal. )

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How to generate media for your startup

Here’s a recent Article I wrote for Anthill Magazine:

When aiming to generate media coverage for our start-up or business, we often get one thing wrong. It relates to our training as marketers. We are too targeted.

In fact, we need to do the reverse and cast the media net wide – as wide as possible. What needs to be targeted is ‘the message’, not the media organisations we aim at. The message needs to be written for the forum. But, in truth, most of us have way more messages in our business than we have bothered to think about, or even invent. Yes, we can invent messages.

The message or pitch needs to be all about them, their readers and their viewers. Never us or our start-up. So before you pitch, work out how many angles you’ve got and you’ll be surprised what you can dig up. In fact, you’ve got to give a bit before you get anything – especially for start-ups, who can exchange a few learnings from the battlefield.

Here’s an idea-jam for potential examples of media angles for Start-up X.

  • Altruistic – helping people
  • Business methods you’ve used
  • Helping people make money
  • Saving money by using your products
  • Productivity improvements of staff
  • Web news – first of its type
  • Start-up stories
  • Technology used
  • Ecologically sound (no, we don’t mean carbon offset)
  • Green message
  • Making the web-physical connect – going beyond virtual
  • Helping the financially challenged
  • Help people connect with customers
  • It’s über new
  • It’s the old world reinvented
  • Vicarious living….

There’s more, but you’re bored already. I’m just showing what’s possible. Stuff like this equals free media. Pages/slots have to be filled.

Frequency vs Depth

While we know we need advertising or media exposure, the thing we need most is frequency. Advertisers talk about depth and frequency. (Depth being how many people we reach on each occasion. Frequency being how often we reach them.) It’s great to let zillions of people know about our start-up as quickly as we can. We may even be lucky enough to get some kind of viral campaign working for our start-up – we may be featured in the newspaper, on TechCrunch or we might even be lucky enough get a TV spot.

After the event, here’s what happens: people cook dinner, pick up the kids from school, pay the bills, kick the dog and get on with life. Our start up doesn’t really matter to them… straight away.

Consumer awareness goes something like this:

Exposure 1: “That’s a cool idea/product/concept.”

Exposure 2: “Oh, yeah, I must remember to check that out.”

Exposure 3: “There it is again. Might be worth having a look.”

Exposure 4: “Hmm, Ok – I’ll check it out when I’m shopping/online next.”

Exposure 5: They finally act and go look at / investigate / touch / feel / try….

After many exposures we have “a chance” of selling to them. Sure some people check it out first time, some buy straight away, but the large majority need to be reminded, over and over again. This doesn’t mean you need to spam them or do terrible interruption marketing. It means you need to send frequent and relevant marketing communications to the people who might care.

It’s a lot like us never noticing an advertisement for a car until you are in the market to buy one. They’re always there, we just have selective perception.

This is why advertising frequency is king. No point having a big launch campaign if your prospective new customers aren’t looking on that occasion. For entrepreneurs, the big launch concept is a hoax. It’s unsustainable. We’re far better off being there all the time, in some way – then we don’t have to predict when people will buy.

And before you waste a shipload of money on a PR agency, the truth is the media aren’t listening anymore. Well, listening to PR firms…. Once upon a time, a PR agency had the secret access keys to journalists. That made them powerful. But things have changed. Now we can access anyone with a few Twitter messages and some Google magic. And the PR agency messages are very 1993. In an age of authenticity, we are far better off going direct. Developing a relationship with media contacts is far more valuable than wasting money on outsourcing PR. People want to talk to the person, and that person is you.

Want proof ?– check out the rentoid.com about page and scroll down to see the media we have generated – none of which has been paid for.

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Creating rituals

Greg Borrowman, the editor of Australian Hi-Fi magazine, has another one. He thinks we’re yearning for what was lost when analog music yielded to digital.

“CDs have no personality; they’re set and forget,” he says. “With vinyl, it’s ritual. You slide the LP out of its sleeve, then deftly remove it from the inner dust jacket, making sure not to touch the playing surface. You place it on the platter with both hands, like an offering. You clean the record’s surface and perhaps the stylus. Only then do you lower the tonearm to be rewarded with the music.”

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What rituals are you creating for your startup?

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Mind your language – Hyperbole

Light, Low fat, no fat, fat free, rain forest alliance, low carb, high protein, calcium enriched, fair trade, retail partnership, heart foundation approved, recycled packing, reduced packing, no msg, low salt, low sodium, 5 star energy rating, green energy, eco, carbon offset, carbon free, carbon neutral, low sugar, no sugar, no trans fat, recycled materials, as seen on TV, television first, world premier, made for TV, made fresh, frozen fresh, real, all natural, nothing artificial, easy opening, 25% off, 10% extra, free, no added colors or flavours, diet, bite size, king size, sugar free, caffeine free, may contain nuts, dolphin safe, premium, value, gluten free, Low GI, lowers cholesterol, imported, made locally, no added sugar, made locally from imported ingredients, Australian owned, vitamin enriched, concentrated, biodegradable, recommended daily intake, enjoy responsibly….

Enough.

We’ve all read this oxymoronic language. But when we are using any of these words in our marketing we should step back and ask why?

Are we trying to ‘clean up’ our stuff?

Turns out most times people use these words to sell stuff, they are trying to ‘de-bad’ (from the startup blog dictionary) something. A banana doesn’t need any descriptors – we already know it’s biodegradable, easy opening, no artificial colors and isn’t passed it’s used by date just by looking at it. The point for startups is this – if we are using language of this ilk, we must ensure it is authentic.  If not, people will see right through it and will spread the ‘truth’ for us.

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New York Series: Barbie Celebrating in Style

It’s not secret that Barbie has had her challenges in her 50 year history, from promoting ridiculous body image, to the more recent market share battle with Bratz.

But on her 50th birthday I saw one of the coolest promotions I had seen in some time. Bloomingdales New York. It has the entire history of Barbie on display. Nearly every doll ever made in uber cool glass cases, right through the entire ladies clothing floors. It cannot be missed. and demands attention. In addition they have some life size barbies who have been dressed by leading fashion designers. Here’s a photo essay, and some important comments about it below:

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If we are in the fashion business (which more of us are than we think) then we must constantly be re-inventing, and reminding our people why we are the coolest.

How does your startup show how cool it is?

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New York Series: Dylan’s Candy Bar

I was so impressed by Dylan’s Candy Bar – they get it.

It’s just perfect in every way. The understand the following important factors in branding, retail, business, marketing:

  • Theatre at transaction – best I’ve ever seen
  • Premium product
  • Single Minded proposition
  • Being the experts
  • Feel good factor
  • Service by people who dig working there (when you get served they say ‘have a sweet day!’ – love it)
  • Escapism
  • The brands are the stars – the product ‘is’ the promotion. No advertising required here.
  • They know the category is more important than their ‘Dylan’s brands’.

In fact, instead of me raving on…. here’s a huge photo essay I took. That should give you the idea. Enjoy.

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