2.5.09

Vertical vs. Horizontal growth

Horizontal growth
Horizontal growth is, in effect, buying companies or vendors in your specific market. Company A competes with Company B and in an effort to expand their business, Company A acquires Company B.
Now looking at this purely on the level of buying competitors, you could say that buying your competitor out can be perceived as being scared of competition, not being a good enough company to just drive your competition out of business, so on and so forth.
However, horizontal expansion via mergers and acquisitions have a much deeper root than simply being all about acquiring customers or customer bases.
What happens with well thought out mergers and/or acquisitions is a reduce in average cost. If two companies supply the same or similar products, have the same target audience, the same distribution channels and similar approaches to business, then he average costs of doing business reduces. As the assets are merged, and the companies become one you see a very obvious decrease in advertising costs, also. It can make sense to purchase a competing company, but only if it is well thought out and not just about bragging rights and customer numbers.
Another example of horizontal expansion for a company would be buying one of your suppliers or service providers. Let’s take an advertising agency as a short and sweet example:
If Company A uses Agency B for advertising materials and product development, then Company A can drastically reduce, in the long term, their costs of doing business by purchasing the advertising company. This model is often seen in the corporate world. Instead of paying inflated fees and being tied to contracts, you can now own the very agency that you used to hire. An advantage of this would be if the company is in stealth ownership (opens up a whole new line of possibilities). Perception is only one part of the selling game, granted, but it is a vital part. Maybe Company A didn’t want to reduce their costs - maybe they wanted to keep their costs at the same level but increase their exposure. More bang for the buck, so to speak.
There are many examples of horizontal expansion and it depends on your line of business for determining how horizontal expansion could work for you. The fact is though that buying a competing company does not always have to be about proving who the big dog in the yard is. It can be about smart business models and thinking on your feet.

Vertical growth
Contrary to the concept of horizontal growth, vertical growth is achieved without acquisitions or mergers.
This concept is one that many say will benefit your company the most, as opposed to growth through mergers.
A company that starts from scratch and slowly but surely builds upward by maintaining their market and. or client base would be a prime example of vertical growth. The downside of vertical growth is that it inevitably takes much longer to grow to a medium/large size than, let’s say, a company that has achieved horizontal growth.
A major benefit, though, of vertical growth is the steadiness of your brand. Mergers can lead to dilution of a brand but with vertical growth your brand depends solely on one company. A rise or fall in sales and/or brand awareness is easier to track; it can nly have come from one place and can only be solved by one company.
In the end it is up to the company management as to whether they want to grow horizontally or vertically. Both have their advantages and their pitfalls.
At the end of the day, growth is growth. If your company is growing then you are successful in at least one of the two concepts outlined in this two part post.

Evolution |cartoon movie

2009:The digital year in review


What digital trends will 2009 be remembered for? Below is my list of the five most influential.
1) Facebook and social networks
Firstly, 2008 was the year Facebook overtook MySpace as the world’s most popular social network, with 181 million global users compared to MySpace’s 121 million, according to October 2008 data from comScore.
Facebook’s total global users increased 85% between December 2007 and October 2008, with significant expansion outside the English-speaking markets that have been the traditional drivers of Facebook’s growth.
In her book about social media, Once You’re Lucky, Twice You’re Good, American journalist Sarah Lacy explains this explosion by arguing that Facebook remains a development-driven company, retaining a very strong focus on continually adding new features for users.
One of the less well-known aspects of Facebook’s expansion is its hold on mobile users. In November Facebook revealed on its blog, found
here, that 15 million users were regularly accessing its service using mobiles, up from 5 million at the start of the year.
But Facebook is of course not the only social media story, and social networks have brought a great deal of diversity to the internet. While Facebook is the most popular in the genre, almost every country has one or more strong local players, including Studivz in Germany, Hyves in the Netherlands, and Fotolog in Spain.
2) The rise of the mobile internet
In 2008 mobile internet usage finally took off, thanks in part to the continued success of both Apple’s iPhone, and social networking sites.
Regular
reports from Opera, makers of Opera Mini, the most popular mobile internet browser (think Firefox or Internet Explorer for your phone), tracked the rise of mobile internet. These reports only examined people using Opera’s browser, but the figures showed that by October 2008 the browser had 21 million monthly users, a 311% rise since October 2007.
In the Opera sample, data use (that is, how much data was downloaded, or a measure of the amount of content viewed on a mobile device) was up nearly 490% over the same period, showing that not only were more people going online on their phones, but mobile internet users were doing more when they were online.
The launch of the 3G version of the iPhone has been one of the drivers of this growth but I would argue that the other main catalyst has been - once again - social networking. Two years ago people might have said of mobile internet use ‘Why would I want that?’ However, many people now want to access their social networking profiles when they are away from their desks.
Data, again from Opera, shows that, of the markets studied, networking sites were the most popular category of mobile internet sets in more countries than was the case with search sites. When PCs are used to access the internet, search websites are still the most popular destinations.
3) The iPhone and mobile apps
The biggest technology story, and one of the accelerators of mobile internet use, was the launch of the 3G iPhone in July. In less than six months the device has reportedly become the biggest selling phone in the US, and the most purchased smartphone worldwide.
Crucial to the success of the iPhone has been the easy way it offers to install applications, namely small programmes that allow the handset to do useful and fun tasks. By opening up the software architecture for the iPhone, Apple allowed independent developers to produce and sell these apps, letting the free market and people’s imaginations drive the choice of products, and set prices.
Currently there are over 10,000 apps available from the iTunes store, ranging from Google Spoken Search (talk into the phone instead of keying a search query), to Snaptell (identifies books, DVDs and CDs from photos, displays prices at online stores) to iNap (wakes you up when you get near your public transport destination.
With competition provided by rival mobile operating systems from Google (called Android) and from Symbian, 2009 will see further change in the way mobile phones are used.
4) Twitter
Twitter is the less formal version of blogging. Established in 2006, Twitter allows users to write their opinions, what they are doing, or how they feel in 140 characters or fewer. This message then appears on their page, and to their Twitter “friends” (this is a similar status to that on Facebook).
Users build up lists of people they follow and whose updates they want to read, with some power users now having more than 20,000 followers. (Barack Obama is officially the most ‘followed’ Twitter user, with over 150,000 following his updates, although he stopped updating on November 5th). Because it is so quick and so informal, news can spread quickly across Twitter, as one person passes it on to his network of friends and so on, until many thousands can see news in a matter of minutes.
Twitter’s most striking moment to date was scooping the mainstream media with news of the Mumbai terror attacks. Twitter users on the ground were able to tell contacts about the outrage, who then told their contacts and so on. Twitter is not perfect, and 140 characters is a very limited space in which to transmit a complex message, but Twitter gained real traction in 2008 as a way of connecting people in informal and useful ways.
5) Social recommendations and local
Finally, 2008 saw a big rise in the area of social recommendations. Sites like CitySearch, Qype and Tipped rely on users to write reviews of local businesses, and make recommendations. These sites work on the ‘wisdom of the crowds’ principle, and the assumption that users will police themselves, with any obviously fake reviews exposed by other members.
This trend exemplifies a shift in how the internet is being used with people now appearing to put their trust in strangers as much as, if not more than, professional reviewers or friends. The fact that there are many small players in this market niche, rather than a few dominant ones, suggests that no one has yet come up with the ideal solution to social recommendation.
This trend is also connected to the first two. Social networks are working to integrate into these recommendation sites via initiatives such as Facebook Connect and MySpace ID so that users can see what their social circle recommended. In addition, mobile will make these services far more relevant.
We can expect further convergence between all of the above trends in 2009.

tel: The New Way to Communicate

Campaign website:http://www.ben.tel/
Brand website:http://www.telnic.org/index.html






“.tel: The New Way to Communicate” was directed by Victoria Pile, a British comedy writer and director, most noted as the creator of the sketch show Smack the Pony and the sitcom Green Wing. Filming was produced at The Rocket Science Group by executive producer Garo Berberian.
Actors were Laura Haddock, Sean Paul Browne (the cool guy) and Will Garthwaite (the fall guy).
Music is “Sweet About Me”, by Australian singer Gabriella Cilmi.

Macintosh Production Introduction Plan

2. Marketing Strategy
2.A Strategic Overview
The primary worldwide marketing goal is simple and straightforward: establish Macintosh as the third industry standard product in the marketplace. The first two standard products are the Apple II(e) and the IBM-PC. This goal will not happen instantaneously. However, the marketing story must be in place at introduction.
Macintosh cannot and will not be "all things to all people" -- especially at time of introduction. Yet the dynamics of the industry warrant an extremely aggressive marketing program from the outset. It is our premise that we will only get to introduce this product once. We have an extraordinary product. We must surround that product with excellent service, support, applications software. In addition, it is of crucial importance that we communicate a believable and achievable marketing plan to our sales force and the public at time of introduction. Part of this plan will be real at introduction while a significant portion will occur in the following 3-9 months. As a "marketing driven" company we must focus on the entire album and not just a snapshot of introduction day.
Failing to establish Macintosh as the third standard product could significantly decelerate Apple's growth curve. IBM has taken away major pieces of our large office, medium office and small business segment sales. National Account penetration is a long term prospect. Without a successful introduction, the first-term trend appears irreversible given IBM's success in repositioning the IIe as a home/education product. Moving the PCS product line back into the mainstream business segment at this time appears to be an unreasonable proposition. Apple's attempt to create a two horse Apple/IBM race will fail if we are relegated to a <>
2.B Product Positioning
Positioning is a concept that informs consumers about the relative qualities a product may have in contrast to its competition. It is based on another concept: that consumers apply hierarchical values to products. It is always dynamic and changing, and is most successful when proactive rather than reactive.
.......................................................................................................................
Macintosh is an advanced personal productivity tool for knowledge workers. .......................................................................................................................
ADVANCED - Lisa Technology, our key competitive advantage, sets a new price/value standard. This is extremely important. We define Lisa Technology as its user interface software: pull down menus, windows, desktop metaphor, bitmapped graphics, integrated applications, and mouse all driven by a 32 bit 68000. The benefits of this technology are the reduction in learning time, the consistent user interface across applications, and the sharing of data across applications. Our competitive analysis states that neither IBM, nor anyone else, will be able to replicate Mac for 6-12 months. We strongly support the POSD claim that Lisa Technology represents the future direction in personal computing, for naive users as well as "experts".
PERSONAL - The product is designed to optimize personal performance at a desk environment. The product is 30% the size and weight of the PC. It can easily be transported from one work location to another. The typical knowledge worker spends 29% of his/her time in generic thought work" (from Booz-Allen). This statistic represents the analysis, problem solving, memo writing part of a knowledge worker's day. In many situations Macintosh will replace the pencil and paper method of generic thought work. The typical customer will use the product 1-3 hours/day. The product has not been optimized to "run a company" as in the large scale computation and manipulation of payrolls, inventories, or data bases. However, the product excels at local information processing including acting as a terminal to remote data bases. Apple's message will be that, 'Macintosh fits. On your desk and in your life."
PRODUCTIVITY TOOL - Like the Apple IIe and the IBM-PC, the product will increase the productivity of the knowledge worker at the desk. Standard generic productivity tools including word processing, spreadsheet, business graphics, data base/file management, communications and project scheduling will be available from third party developers. With new software written specifically for Macintosh coming from Lotus Development (1-2-3), Microsoft (MultiPlan, MultiChart, MultiWord, MultiFile), Software Publishing Corporation (PFS Series) and others, we will have an outstanding selection of powerful proven productivity tools. In addition, our Apple published applications, MacWrite, MacPaint and MacTerminal are excellent products. The competitive advantage of Macintosh over the PC or the IIe is the unique combination of brand name integrated productivity software with Lisa Technology. In this context we often speak of the product as a desk appliance. An appliance is defined as a "means to an end". The first desk appliance for knowledge workers was the telephone. Current generation personal computers with their 20-40 hour learning time cannot be called appliances. Appliances deliver great utility, are easy to learn and master, increase productivity, take up less space and are priced for personal (as opposed to shared) use. Macintosh, as a second generation desk appliance, offers unparalleled performance and value as a productivity tool.
KNOWLEDGE WORKERS - The knowledge worker has been carefully defined by Booz-Allen by POSD, and by many office automation consultants, and is demographically addressed in Section 2C of this PIP. Knowledge workers are professionally trained individuals who are paid to process information and ideas into plans, reports, analyses, memos, and budgets. They generally sit at desks. They generally do the same generic problem solving work irrespective of age, industry, company size, or geographic location. Some have limited computer experience -- perhaps an introductory programming class in college -- but most are computer naive. Their use of a personal computer will not be of the intense eight-hours-per-day-on-the-keyboard variety. Rather they bounce from one activity to another, from meeting to phone call, from memo to budgets, from mail to meeting. Like the telephone, their personal computer must be extremely powerful yet extremely easy to use. In general, their psychographic profile correlates very closely with SRI's Values And Lifestyles Study (VALS) group known as "achievers". Excluded from our definition of the knowledge worker are CEO's and secretaries/clerks. This target knowledge worker group maps directly into our corporate positioning Strategy with the tag line, "Soon there will be two kinds of people: those who use computers and those who use Apples."
Macintosh is an advanced personal productivity tool for knowledge workers. The product is not a "home computer" nor a K-12 "education computer" nor a large-scale fully networked office automation machine. The next two sections describe in detail the physical location of our target customer and the channels required to reach the customer.
2.C Target Markets
Knowledge workers use productivity applications in all of Apple's traditional market segments: business, education and home. In order of priority, Macintosh is horizontally targeted at knowledge workers in the following U.S. markets:
1. Medium Business (Sales > $5 million and <>

hey make up the largest group of knowledge workers and potential Macintosh users:
Knowledge Workers Potential Macintosh Users
Large Business 11.4 million 5.2 million
Medium Business 15.6 million 8.6 million
Small Business 9.6 million 5.1 million
TOTAL 36.6 million 18.9 million
Potential Macintosh users, for example, include financial analysts, sales managers, accountants, insurance and real estate agents, stockbrokers, social scientists, lawyers, personnel managers, administrators, planners, and exclude, for example, all secretaries, typists, clerical workers, retail sales workers.
Personal productivity users in the three segments of the business market share certain needs because of their common applications, and have some different needs because of the size and nature of their businesses. Below we have ranked the needs of the three business segments:



The college marketplace provides another large pool of knowledge workers. There are 3,300 colleges and universities in the United States with approximately 11 million students. Besides needing productivity and educational software and being very price sensitive, this segment insists on state of the art technology. Macintosh's consistent user interface and mouse-based technology is a big plus here. Apple has traditionally been strong in the education market. Through the Macintosh-initiated University Consortium Program, we expect that Macintosh will be the centerpiece of long-term agreements with universities wishing to use the entire Apple line of products.
We expect a large number of Macintosh's to enter the home/home-business market because of the price/value relationship and strength of Apple's retail distribution channel. Based an results from the 1981 Census, Apple II Owners' Survey and Apple's Wave II Brand Share Study, we estimate the market for high-end home systems (> $500) is approximately 25.8 million households. This market wants literacy/education/entertainment software, productivity software, reliability, price/value, ease of use and expendability. It is certain that Macintosh will be an extremely attractive product in this segment. However, we will not attempt to position the product in any way as a "home" computer.
The scientific/industrial matrix is composed of 2 million engineers, scientists and technicians. Personal computers are used in this segment for general desktop purposes (48%), data acquisition and control (40%), and computer aided graphics and drafting (12%). Macintosh will focus its marketing efforts on the productivity applications of the 48% of engineers and scientists requiring a general desktop computer. These professionals need development languages such as FORTRAN, Pascal and C, general purpose formula solvers (TK!Solver) and statistical programs, standard communication interfaces (RS-232, RS-422, IEEE-488) and mass storage in the 5 - 1 0 Mb range.
The following pie chart breaks out Macintosh's anticipated US sales for calendar year 1984 by market segment:
Based on Industry unit sales volume projected by the Apple Markets model and on Apple unit sales volume projected in FY 1984 Business Plan, Macintosh and the other Apple products will fit into the various market segments as follows:
3. Product Line Strategy
3.A STRATEGIC OVERVIEW
The design goal for the Macintosh product is to develop a low cost, powerful personal computer with Lisa Technology. All basic requirements will be built into the product thus eliminating the need for costly internal hardware slots. The value of the machine is delivered via "software slots"; that is, application software developed under the influence of our open architecture development environment and our 64K Lisa Technology ROM.
The product development Strategy for Macintosh is twofold:
*Provide the core set of hardware, peripherals, and system software at an extraordinary price/value;
*Stimulate leading third-party developers to rewrite their best applications for Macintosh, as well as write new applications, taking advantage of the Macintosh user interface and graphics capabilities.
This is accomplished by establishing a large installed base of Macintoshes and by providing a rich development environment and good marketing programs that increase the attractiveness of developing products for Macintosh.
The objectives of the Macintosh data communications Strategy are to:
*Provide users access to information stored in mainframe databases in a low cost, effective way;
*Meet the buying objections of large corporate customers for useful communications with IBM mainframe computers.
The Strategy is to develop a simple terminal emulation package for VT-100, VT-52, and TTY to be available at or soon after launch, and to combine this software with existing Apple hardware products to enable 3270 communications (see product dictionary for detailed description). We are continuing to work with the POSD data communications group to pursue more optimal and cost-effective datacomm solutions for all Apple CPUs.
The objectives of our mass storage and networking strategies are to:
*Provide mass storage products to meet the needs of Macintosh customers;
*Provide flexible network and server solutions in a market environment where no clear standards exist;
*Meet the buying objectives of large corporate customers "requiring" networks.
These strategies are under development and will be discussed as soon as the products have been approved.
Details on specific products and their availability are in the sections that follow.
Team
The team scribe is Barbara Koalkin with assistance from everyone in Macintosh, especially Bob Belleville, Director of Engineering.
To tavel furter.. visit

Car “in the Zoo” Ambient




THE ORIGINAL?
Mitsubishi Pajero “in the Zoo” Ambient - 2001
Source : Cannes Archive Online,
Agency : Young & Rubicam Adelaide (Australia









LESS ORIGINAL :
Land Rover “in the Zoo” Ambient - 2009
Source : Adsoftheworld
Agency : Filadélfia, Belo Horizonte, (Brazil)

Honda Let it shine on Vimeo

BRAND OWNER:Honda
CATEGORY:Automotive
REGION:EMEA
DATE:Apr 2009 - Dec 2008
AGENCY:Wieden & Kennedy
MEDIA CHANNEL

With the launch of Honda’s Insight hybrid car, the automotive brand wanted to make a big impact without a huge environmental impact.
It created Let It Shine – a 60 second TV spot which at first looks like a huge LED screen, but you soon realise the animation is being created by hundreds of car headlights. A matrix of hundreds of car headlights was created and animated with each set of headlights acting as a pixel. The ad was a huge viral hit and Honda wanted to leverage this in an online environment. It teamed up with high definition video hosting site Vimeo to create an experience which went beyond the borders of the usual flash player box, taking the traditional page takeover to a new level. People who went to Vimeo to view the Honda ad can press play to see the video and the whole page around the video also transforms. Just as the ad shows action taking place over a whole night until sunrise, so the background of the page goes completely black, blocking out all of the usual page inventory and comments. The animations created in the desert with the cars leak out into this expanded space. As dawn breaks in the ad, the background of the page also goes through the sunrise colours. Visit
http://vimeo.com/4281939 to see the experience.
The work echoes that of Nintendo’s Wario YouTube ad, where the violence of the game knocks all of the comments and buttons off the web page.

French Fries making hands



GAS-X TABLET, 2009
Advertising Agency: Rivas Herrera/Y&R, Quito,Ecuador











LESS ORIGINAL
Burger King - 2008
Agency : Young & Rubicam (New Zealand)









LESS ORIGINAL
Mo’Men - 2008
Source : Adsoftheworld,
Agency : Strategies, Cairo (Egypt)













THE ORIGINAL?

Heinz Tomato Ketchup - 1999

Source : Cannes Lions Archive.

Agency : Young & Rubicam (Israel)

30.4.09

Ball crashed on a car’s roof


THE ORIGINAL?
Nike ambient - 2004
Agency : Ogilvy & Mather (Singapore)










LESS ORIGINAL
K-Swiss Roland Garros Ambient - 2008
Source : CB News,
Agency : Kassius (France)









LESS ORIGINAL

PGA Tour Superstore - 2008
Source : Cannes Lions Archive,
Agency : TheRichardsGroup Dallas (USA)

Disneyland :::A platform for children's dreams

BRAND OWNER:Disney
CATEGORY:Sport/Leisure
REGION:France
DATE:Apr 2007 - Jul 2007

Disney is famed for creating magical experiences for children, and wanted to do something special to celebrate the 15th anniversary of Disneyland in Paris in 2007. The 15th Anniversary Celebration was a year-long event held at the holiday resort.
Disney wanted to drive children to go to the amusement park and celebrate the landmark date. Disneyland wanted to create a platform where children could express their dreams and so commissioned a huge billboard featuring several Disney characters along with 2 LED screens; a long one across the top and a smaller, shield-shaped one in the centre.

The long screen at the top carried the message ‘dream like you have never dreamed before’ and the shield-shaped one carried the number 15.
A message to the side of the billboard read: “You too can send use your dreams via disneylandparis.com”. Visitors to www.disneylandparis.com could upload their photo along with a one-sentence dream.
Then the children’s dreams along with their faces were posted to the billboard. The child’s face would appear in the central shield and their dream would be posted to the long screen at the top of the billboard.

7 Skills for a Post-Pandemic Marketer

The impact of Covid-19 has had a significant impact across the board with the marketing and advertising industry in 2020, but there is hope...