ANZ Crowne Base

Slide 1: 

Tim Pethick nudie Founder Entrepreneur-at-Large and Expert Presenter on Kochie’s Business Builders February 2010 The fast track to business growth Tips from the nudie story

The way we’d like to be : 

The way we’d like to be

What’s going on? : 

What’s going on? The worst of the GFC is behind us, but the market has changed We’ve had it great for a long time We’ve ridden a boom market We’ve all become a bit complacent; in the process we’ve lost the edge Time to regain it by focusing on some fundamentals to build our businesses

Lessons from..... : 

Lessons from..... The nudie story

nudie - objectives : 

nudie - objectives Create a powerful brand – valuable, irreverent, fun, compelling, open and remarkable Along the way, become Australia’s biggest provider of delicious, pure fruit beverages Have some fun, do some good

nudie produced a new category of great, healthy, super premium fruit juices and smoothies : 

nudie produced a new category of great, healthy, super premium fruit juices and smoothies crushies Brazilian super nudies smoothies

nudie soups : 

nudie soups

nudie – ice creams : 

nudie – ice creams

nudie - yogie : 

nudie - yogie

The opportunity : 

The opportunity Juice is low growth, commodity product, undifferentiated brands, crowded market, logistics difficulties – therefore unattractive Customer needs not being addressed The answer: Innovate Think differently Establish a brand Focus on the customer

nudie – the first year : 

nudie – the first year January 2003 1 outlet 2 people Selling 40 bottles a week Sydney only Using 1500kg of fruit a week What’s nudie? 1 nudie van No delivery vans No distributors January 2004 4,500 outlets 56 employees Selling > 150,000 bottles a week WA, NSW, VIC, QLD, SA, ACT, TAS Using 30 tonnes of fruit a week Wow, you’re from nudie! 22 nudie vans 16 delivery vans National network of distributors The most successful new juice BRAND launch ever in Australia More than 7.0 million bottles sold

by early 2005….. : 

by early 2005….. Revenue run rate of A$20m Voted by readers of www.brandchannel.com (produced by Interbrand) to be one of the top 10 most influential brands in the Asia Pacific region

Secrets of success : 

Secrets of success Customer focus Innovation and creative thinking Excellence in Execution Attitude: Overcoming adversity

Customer Focus : 

Customer Focus Overcome frustrations Go the extra mile Create Value Value to customers is not just about price

Innovation and creative thinking : 

Innovation and creative thinking Become extraordinary; even irreplaceable How can you become one?

We are really talking innovation : 

We are really talking innovation Innovation is fresh thinking, or a different approach to the market place which creates value for a company and it’s customers. How? Through design, invention, development and implementation of new or altered products & services, processes, systems, organisational structures, or business models. Innovation requires leadership

Why innovate? : 

Why innovate? Customers want it! Change is often forced upon us – it can be threat or opportunity! The antithesis – doing things the same – is a guarantee of mediocrity. “The definition of stupidity is doing the same thing over and over again and expecting different results” – Albert Einstein

Product comparison : 

Product comparison

Slide 19: 

create a new category and in so doing create value through innovation

Big Business Red Circles : 

Big Business Red Circles Organisations are rule-bound and systematised They are limited by conventional thinking “We’ve always done it that way” “It’s the way we do things around here” “Don’t rock the boat” “We’ve always done it that way” is not an effective or viable business strategy in the face of a recession. Powerful businesses can ask “Why?” and break the mould

The Red Circle : 

The Red Circle Specifications and bureaucracies live forever!

Building a brand : 

Building a brand There is more to a brand than just a name Marketing isn’t just advertising It isn’t as much what you say as what you DO

It’s all about engagement and relationship. : 

It’s all about engagement and relationship. …an emotional connection with real people

nudie – the brand promise and personality : 

nudie – the brand promise and personality FUN, REAL, TRANSPARENT, wholesome, healthy, anti-establishment, the paradigm shifter, the challenger, indulgent Brands have to stand for something or no emotional engagement is possible

Traditional Thinking : 

Traditional Thinking Let’s do a television commercial?

Ogilvy - 1960 : 

Ogilvy - 1960 On average a consumer is subjected to 1,600 advertising messages a day… How many do you recall?

Getting the Brand message across - Advertising : 

Getting the Brand message across - Advertising Recent US Study* 61% believe volume of messages is “out of control” 65% say they are being bombarded with too much advertising 60% think advertising is too negative 45% said advertising “detracts from the experience of everyday life” 33% would be willing to sacrifice standard of living for a world without advertising!! * Yankelovich Partners for the American Association of Advertisers

Getting the Brand message across - Advertising : 

Getting the Brand message across - Advertising Australian Study* Australians are “increasingly unhappy with, and ignoring, advertising 81% say they are taking less notice of advertising 66% said advertising was boring and repetitive 75% say stereotypes proliferate * Eye on Australia

Getting the Brand message across - Advertising : 

Getting the Brand message across - Advertising Conclusion: People are too busy and not listening Cutting through the clutter is increasingly difficult Consumers are looking for something else

nudie focussed on the experience : 

nudie focussed on the experience Started with a “wow!” the first time we met Then every contact reinforced the experience

More traditional thinking... : 

More traditional thinking... Sell the product USP...

USP has shifted : 

USP has shifted Product parity is upon us USP moves to ESP

Constructive thinking - nudie created a strong emotional response in consumers : 

Constructive thinking - nudie created a strong emotional response in consumers Emotional Functional Technical ‘Who it enables the customer to be’ ‘How the product/experience makes the customer feel’ ‘What the product/experience provides to the customer’ ‘What specific attributes the product has’ “This is a drink with attitude... I haven't smiled quite so happily in a long time” “Tasty AND healthy AND now I don't need to feel guiltyabout not eating enough fruit today” 100% fresh fruit No additives or preservatives 99% fat free No added sugar etc Attribute Description Consumer Reaction

communication strategy : 

communication strategy mobile media plushies balloon sampling character

Reliance on event marketing : 

Reliance on event marketing

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importance of web site to channel communications

Wasn’t it just the name? : 

Wasn’t it just the name? No weak links Excellence in execution Align the business Focus on the detail Marketing alignment Customer Service

Overcoming adversity : 

Overcoming adversity

From this........ : 

From this........ to....

Perception vs. Reality : 

Perception vs. Reality Perception Reality

The fire…. : 

The fire…. The Fire…… Destroyed our business But…. Every successful business is the sum of its responses to set-backs Leaders create the climate in which people turn challenging situations into remarkable successes. Product back on shelves within 6 weeks

An Entrepreneur’s life : 

An Entrepreneur’s life

An Entrepreneur’s life : 

An Entrepreneur’s life “Success consists of going from failure to failure without loss of enthusiasm.” Winston Churchill

Every dark cloud has a marketing silver lining : 

Every dark cloud has a marketing silver lining

Leaders : 

Leaders Leaders see possibilities where others see only problems. Leaders turn visions into realities, obstacles into innovations, separateness into solidarity and risks into rewards A Leader is a dealer in Hope! Napoleon Bonaparte

What does it all mean? : 

What does it all mean?

It’s a start.... : 

It’s a start.... A name and a process A framework

Slide 52: 

What drives a purchase decision?

Good to Great..... : 

Good to Great..... You have a head start... To go from good to great Focus on your customers Deliver a remarkable experience 24/7 marketing Leave no stone unturned in executional excellence; focus on detail Don’t let adversity set you back The most successful businesses will be those that can make people smile

The News : 

The News Bad News It’s all about YOU! Good News It’s all about YOU!

Wisdom - be wise : 

Wisdom - be wise “Knowledge is knowing that a tomato is a fruit; wisdom is knowing not to put it in a fruit salad” Brian O’Driscoll (Irish Rugby Captain)

Slide 58: 

Tim Pethick tim@talltim.net www.talltim.com.au

The competitive challenge…. : 

The competitive challenge…. The real competitive threat: More than 8 direct competitors launched in 4 months