Amazon.com CEO Jeff Bezos has just released a long video in which he rhapsodizes about the history of Amazon.com – including early troubles with technology… and even elecricity. At 8 minutes plus, sale this DOESN’T qualify as an elevator pitch. Then he eventually gets around to announcing his company’s all-stock aquisition of online shoe retailer Zappos.com. The full TechCrunch Newsflash is here.
From the other side of the acquisition, Zappos.com CEO Tony Heish has posted this letter to employees explaining the aquisition. It’s a serious letter, but also manages to be light, breezy-but-informative piece that speaks to the corporate brand culture Hseih has built at Zappos. Just what you’d expect from a guy with a Zappos logo tatooed to his head.
But one thing that caught my attention was this:
We learned that they truly wanted us to continue to build the Zappos brand and continue to build the Zappos culture in our own unique way. I think “unique” was their way of saying “fun and a little weird.” 🙂
…
The Zappos brand will continue to be separate from the Amazon brand. Although we’ll have access to many of Amazon’s resources, we need to continue to build our brand and our culture just as we always have. Our mission remains the same: delivering happiness to all of our stakeholders, including our employees, our customers, and our vendors.
So what do you think?
Cynical DIFFERs, how long do you think this will last before Zappos.com is absorbed into Amazon?
Hopeful DIFFERs: is this the greatest thing you’ve ever heard?
A Twitter conversation last night instigated by Olivier Blanchard and carried on ad nauseum elsewhere, sales reminded me of a long-time guilty pleasure: Nutella. Just typing the word makes me salivate – and I have to restrain myself from running upstairs to slather some of that rich hazelnutty goodness on melba toast. And apparently I’m not alone: in additon to Twitter fetishists, Nutella has 3.5 million fans on Facebook.
So why all the nuts?
Dutch Hagelslag: The chocolate-on-bread option I grew up with.
I didn’t grow up with Nutella. As a Dutch-Canadian kid, if we wanted chocolate on bread, by golly, we just put chocolate on bread. “Hagelslag” (pronounce the g as if you are lightly hacking up a small furball) or “chocolate hail” or just “sprinkles” were always available at my Oma’s house. My first Nutella purchase came as a student, when my room-mate had to have it in the house, and I in turn have had my own jar on the shelf ever since. And now, although we don’t let the kids have it (far too precious), my pregnant wife is currently making sure we stay stocked up.
But I wasn’t conscious of where it comes from (Italy), or its fascinating history, which Wikipedia has done a much better job of than I could manage in a blog post. Basically, it comes from a war-time innovation by Pietro Ferrero to produce a cheaper alternative to chocolate using cocoa and the hazelnuts that were plentiful in that region. Nutella in its present form emerged in 1964, with 179,000 tons produced in Italy every year.
Building a fan base
But I can’t remember seing an ad for Nutella, and can’t recall a single in-store promotion or Point-of Purchase display. It was always just there on the shelf alongside the Peanut Butter, calling “Dennis! DEEEENNNNISS!”. <more saliva> But I digress.
Apparently Ferrero does do some advertising – particularly in Europe, as in this nicely toned French ad that promises that Nutella will give you the energy of a child. But according to this site, Ferrerro USA only spent $300,000 on advertising in 2008.
It’s interesting that the positioning is built around “energy” and “youthfulness” rather than being explicitly “healthy”. In Canada, Nutella labels feature a boy kicking a soccer ball to highlight their support for amateur soccer, while in Italy, the connection with futbol was made even clearer in one commemorative package (right).
But in the UK, the “energy” positioning has gotten Nutella into hot water as misleading for a product that contains so much sugar and fat (thanks to @kaitli for the tip!).
The secret to Nutella’s long term success seems to be consistency, living up to the promise by just being there, and by the affectionate devotion of its fans who carry a craving for that taste well into their adult lives. And not just consumption, but even geeky fixation.
Just do a quick YouTube search on Nutella, and you’ll find hundreds of fans geeking out on all aspects of the product. Check out this clip from a German television show that compares the consistency of French Nutella with German Nutella in agonizing (and entertaining) detail. But note that when they actually call Ferrero in this clip, the brand-er doesn’t do much to help the geeks in question with their free advertising.
So the question for you DIFFER brand geeks: what should Ferrero be doing to capitalize on all these nuts who obviously want to help them spread the love? Social Media campaigns? More traditional media advertising? Just staying out of the way? Looking for your comments as always.
So you ask: “Mad at Switzerland? What could anyone possibly have against the Swiss” – those lovely Alp-ine purveyors of Rolex watches, visit this Nestle chocolate, and fastidiously discreet banking services? Sorry Switzerland. It’s not about you. It’s about you beating the pants off Canada in the global branding arena.
And to be fair, in the rant video attached you’ll note that I have equal opportunity anger issues against Sweden, Finland, and even my own ancestral homeland the Netherlands. And as you’ll see, it’s all because of their brands. Each of these countries punches far above their weight in the contest for the global brand belt. As you’ll see in the stats below, these countries even beat the heavyweight in the ring – the USA – when you take their population into account.
So why the anger?
Okay, I’m a Canadian. I’m not actually angry per se: just hurt, frustrated, envious, mildly apologetic, etc.
Actually, I want Canadian brand managers to stand up and take notice. We need to get more internationally respected / recognized brands. In this deck on SlideShare, you’ll find some supporting data (from Interbrand / Business Week) and my challenge to Canadian Brand Managers.
It’s hard to believe that a niche product category like Shawarma would become the subject of a heated competition for the affection, pharmacy eyeballs, prescription and garlic-craving tastebuds of a city. But in my home town of Ottawa, there must be gold in them-there-pitas.
A few years back, authour Daniel Pink came to Ottawa lead a seminar. At the time, he was just an average former-White-House-speechwriter-flogging-a-soon-to-be-Bestseller (Free
Agent Nation – a great read), and not yet not a revered member of North America’s business publishing elite. And he was hungry. So after the presentation, a few of the locals and I
took Mr. Pink out for a late-night bite to eat at Maroush Shawarma on Elgin Street.
Now Maroush isn’t your average, tame ethnic fast food outlet. Maroush has its own theme music – a raucous Lebanese pop song – and a devoted following of late-night partygoers who tend to dance on the countertops (strongly encouraged by the owner).
This led to a discussion of how a brand in a crowded, highly competetive market can distinguish itself – even if it involves in-your-face (and occasionally really tacky) gimmicks.
The Garlic King is another example. Here’s a photo of his specially tricked-out van which seems to appear everywhere there is a crowd. This photo is from Ottawa’s St. Patrick’s Day parade. Lebanese-Irish cuisine anyone?
Scoff all you want. These kinds of “Honest Ed’s” brands end up becoming landmarks in the local scene. Why? Because they DIFFER.
So ask yourself: can you do better? How are you going to DIFFER in your market?
BONUS: if you have 5 minutes and 49 seconds, this amateur documentary isn’t a bad introduction to the Ottawa Shawarma scene:
