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Welcome to Distinctly, No 3 (apologies it’s been a while).

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A portable, intelligent read for busy business people on the go.

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The goal? To deliver marketing ideas, insights and inspiration. Enjoy.

10

Ingredients
of success
feature

St John Craner caught up with Mike Egan,

National President of The Restaurant
Association, co-owner of Monsoon Poon,
Osteria del Toro, Arbitraguer, Board
Member of the Westpac Stadium Trust
and recent Pinot 2010 Conference. Mike
shares some of his business learnings and
insights gained from over 30 years in the
cut-throat hospitality industry.
Q: Why did you get into business?
A: I’ve always had a strong vision for concepts.
I see a concept opportunity and then I want to
make it happen so I suppose this is why I do what
I do. When we started Dockside in 1991 there was
nothing but empty sheds down at Queens Wharf.
The bank wouldn’t lend us any money so we
had to rally round selling our vision. We saw the
potential when others didn’t.
Mike Egan very much at home at Monsoon Poon
Q: What’s made your business successful?
A: I don’t do business plans as they never prove
one customer will walk in the door. I do concepts.
I pay close attention to the conceptual design,
right down to the detail of sight lines. I try to
envisage how customers will feel when they walk
into the restaurant. Will they feel comfortable
before they are greeted? I also place a huge
emphasis on staff and hiring policies. They are
as important as the food and ambience. The
other ingredient for me is working with smart and
diverse business partners who bring different
perspectives and skill sets.

Lesson for business: have a vision and Lesson for business: focus on the detail and
commit to it even if you have doubters. remember staff are everything.

• The power of reinvention - adapt or die?

W
hat

• How non-profit organisations can profit - move along ‘bucket shakers’?

’s
ins

• Marketing Chumps and Champs of 2009

ide
cont
in
ued
Customers enjoying the unique ambience of Osteria del Toro
Q: Tell me about the biggest mistakes you’ve
made in business and what you’ve learnt?
A: We got involved with conceptualising and
operating all the food outlets at Te Papa. We were
keen to see a non-institutional model operating
this core part of the Te Papa experience so we
put our hands up to take on this role. We learned,
eventually, that it is hard to fit entrepreneurial
style of business with an institutional governing
body. However we are very proud of what we
achieved. Another disappointment was our
one and only foray in to being a franchisee. We
had to relinquish control and eventually watch a
great brand self destruct due to the franchisors
company’s neglect.
Lesson for business: Get the right people
in the right seats and maintain strict control of
your brand.
“Brands that have strong
concepts will always prevail in the
fickle and fashionable markets
we operate in...customers have
very good bullshit meters so
they can detect if you’re not
passionate about what you do.”
Q: What do you think differentiates good
businesses from poor businesses?
A: Good businesses are those who don’t under-
estimate the intelligence of their customers. Customers
have very good bullshit meters so they can detect if
you’re not passionate about what you do. Never assume
they won’t see through it.
Lesson for business: Don’t under estimate
the intelligence of your customers or competitors.
Q: Which companies do you currently admire
and why?
A: Icebreaker. They have a strong vision and the
owner-operator model appeals. I also admire the
New Zealand wine industry for commanding the
highest price average in Europe especially when
you compare us to Australia’s current wine glut.
Q: What’s your take on the importance of
marketing?
A: You have to have it to compete. You need
to create WOW factors and “magic moments”
for your customers even if it means not making
money from that interaction. I’m also really
beginning to understand the power of social
media with Facebook, Twitter and
LinkedIn to connect with
and build communities.

Q: If you had one piece of advice for businesses
today what would it be?
A: Just one? Don’t stop thinking or lose your
passion. Get inspired. Concentrate on consistency
because people like consistency.
Lesson for business: Get out of your comfort
zone and get inspired from different places.
Q: Where do you get your inspiration from?
A: I travel a lot. I recently visited McDonald’s
Hamburger University where we met a Cow
Whisperer who literally thinks like a cow and now
advises meat processing plants based on how
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Hall of fame,
cows think including cattle movement and dimmed
lighting which ultimately makes the meat better.
Cows don’t like bright lights by the way.

Q: So are you saying cows are like customers?

A: Of course not! But you get the idea. I think we
all need to think like customers.
Q: Be brave and make some predictions for 2010.
How do you think it will play out?
A: 2009 was a natural cycle where good
businesses prospered and bad ones didn’t.
Businesses this year will need to concentrate
on out-lasting their competition, focussing
on execution and their regular and high value
customers.
Hall of shame
Great
Whittakers Chocolate – taking it directly and
unashamedly to the big boys like Cadbury
(palm oil and UK sell-offs?)
Air New Zealand - 2009 Airline of the Year
and Skycouches - a world’s first.
Lame
Telecom - cosmetic makeover or network
stability? You decide.

Q: Do you have a favourite quote?

A: Yes I do. “When the Stranger says: ‘What is Follow us
the meaning of this city? Do you huddle close For up to the minute Distinctly views
together because you love each other?’ and marketing debate, join us online.
What will you answer? We all dwell www.distinct.co.nz.
together to make money from each
other or this is a community?” TS Elliot
– Choruses From the Rock.>D

Distinct would like to thank Mike for his

valuable time and insights and looks
forward to his next concept.
The power
of re-invention
thinking
When facing times of significant, rapid
change there is only one option - change
with them. If you don’t, you’re swimming
against the current and you’ll eventually
drown having depleted all resources.
You need to move with the market, not against
it. Chrysler, GM and Ford held onto the big car
mentality whilst India’s $US2000 Tata Nano didn’t.
Lateral thinking: Mountain bikes on skilifts in summer
Tough economic times provide opportunities. They
are there. You just have to think differently and
make them. This means re-packaging the skills,
knowledge or expertise you have into new, relevant
products or services.
Madonna is the queen of re-invention: material
girl in the 80s, sex symbol in the 90s, Evita, Charity
Crusader and now Millennium Mum. By re-inventing
herself constantly she has remained relevant and
attracted new fans across three decades.
Cricket has done a great job of re-inventing the
game pulling in new crowds through 20/20 – maybe
rugby could do the same with expanding the Sevens
into a national series – you can only milk the golden
goose for so long.
Savvy mower shops have re-invented
themselves as scooter sales and
service shops. Canny builders
have re-invented themselves
as building renovators. Fully
licensed restaurants have
gained more of a shrinking
market by offering BYO nights
and cooking classes (dinner party catering is
another option).
Otago Rail Trail has re-invented itself from redundant
rail trail to top tourist cycling destination with a
positive economic flow-on effect for surrounding
businesses. So much so that the National Cycleway
Project may become a reality. NZ ski fields open
up in summer for mountain bikers to improve their
year-round cash flow. The point here is re-invention
isn’t rocket science. You just need to think differently
about what you’ve got and how you position it
based on the conditions you face.
Lucozade, a UK sports drink, in the 1950s
re-invented itself from an old people’s medicinal
drink to an isotonic sports brand which now boasts
a 30% market share in the UK taking on incumbent
leader Gatorade. Cirque du Soleil re-invented circus
using a unique blend of music, theatre costume and
dance – no trained elephants, no world’s strongest
man, no big clown acts (their merchandise sales
aren’t that shabby either).
Re-invention can come through partnering up with
others. Like Dave Dobbyn, Anika Moa and OpShop
touring the wineries last summer. By doing so they
opened up the magic and romance of a vineyard
setting, wine and New Zealand music to a newer,
wider market than they might have had they stuck
to normal tour venues.
So how can you apply the power of re-invention to
your business?
“...re-invention isn’t rocket science.
You just need to think differently
about what you’ve got and how
you position it based on the
conditions you face.“
“Front foot is always better than
back foot. It’s usually the best
form of attack. That’s why you
should defend a lead when you
find one.“
• think laterally (who else could have a need for
your product? could you sub-contract your
services?)
• partner up with a complimentary business
(florist and wedding photographer)
• look around you (what are others doing? how
are they responding? what could you learn
from them?)
• ask your customers (WD40, invented for
astronauts in space, did this and found 2000+
uses for its product)
• never stop thinking (spend more time thinking
rather than just doing, think about how you
can respond vs. react)
As the saying goes - you always get what you’ve
always got if you do what you’ve always done. You
need to constantly re-invent yourself to keep up
with changing market needs. If you don’t you might
not just fall behind – you might never get back up.
As the saying goes, front foot is always better than
back foot and it’s usually the best form of attack.
Defend a lead when you find one. >D
Marketing chumps
& champs of 2009
opinion
Here are my marketing chumps and champs
for 2009. Got some contenders of your own?
Supreme Chump: Telecom
Any corporation that tries to justify spending
thousands of dollars on a organisational-wide
re-brand whilst posting a 44% decline in net earnings
is either delusional, or worse still, poorly advised.
No amount of cosmetics will change anything until
Telecom has a serious attitude change and becomes
more focussed on the customer vs. the shareholder.
They, like many, forget the Value Chain: staff
provide great customer experiences which in turn
provide great dividends to shareholders. Not the
other way around.
Wouldn’t it be better to spend some of that so
called “brand investment” improving their network
stability or level of customer service first?
Runner Up Chump: ANZ
Different logo, same proverbial. Noticed any change
or a case of lipstick on the gorilla?
Supreme Champ: Air New Zealand
Grab a Seat continues to surprise and delight with
new deals including flying Decile 1 school visits
to the Capital. Their cheeky ‘Nothing to Hide’ TV
ad was brave and catchy which included a cameo
appearance by their CEO Rob Fyfe (know any other
CEOs who’d do this?).
This same theme was then used to update their dull
in-flight safety message which they then challenged
Herb Kelleher and SouthWest Airlines, through You
Tube, to match.
Airpoints Fairy on Twitter is a stroke of genius where
followers can get daily wishes granted including
Koru lounge passes, upgrades and airpoints. Watch
out for the swag of Fairy imitators.
They’ve also just won 2009 Airline of the Year and
launched SkyCouch – a world first.
Air NZ is showing the big boys how you
master social media and save serious dosh at
the same time. They’re also showing thought
leadership. Take note - it doesn’t always have to be
big, flash TV ads.
cont
in
ued
Runner Up Champ: Tourism New Zealand
Overall international tourist numbers ended down
only 0.6% at the end of 2009 despite a challenging
economic environment.
Some of this success can be attributed to targeted,
effective and intelligent promotional spend across
the ditch (and money TNZ rightfully lobbied
the government hard for – more’s coming too).
Focussing limited promotional funds at its nearest
neighbour resulted in a 9.5% increase in Australian
visitors compared to November 2008. George
Hickton – take a bow. You leave large shoes to fill.
Worthy Champ Mention: Xero
Breaking into the UK market and doing a
deal with British Telecom and HSBC whilst
growing like mad with a whopping 282%
revenue increase since September 2008. Nice
work guys. Anything Sam Morgan invests
in has got to be a good endorsement. >D
Do you have a
customer panel?
customerS
Do you have an accurate picture of how
you’re perceived by your market? Or are you
flying blind living off anecdotes believing
your own hype? If so, perhaps it’s time for
a reality check.
If you don’t have an accurate picture of how your
market perceives you, you’re making un-informed
decisions. Decisions that may not be in the best
interests of your customers. It may even cost you
sales or reputation. Take Cadbury and Ribena as
examples.
What can you ask them? Lots. Like what they think
of your latest advertising campaign, new product
or website functionality. What do they think of your
service, staff or competitors?
So how do you go about it? One of the easiest
ways is to recruit them through your social media
channels (i.e. Facebook or Twitter – assuming you
have ample followers and fans) because they’ve
already signalled they like you, are engaged and
have opted in. This means it’s relatively simple,
quick and affordable to set up and have a direct
discussion with real life customers or prospects
instead of ‘buying time’ with lesser-knowns through
a generalistic survey like SmileCity.
Asking your panel to comment on your business
regularly means they gain a sense of ownership of
your brand too. If they’ve contributed to it, they
feel closer and more involved so it’s harder for them
to walk away from you in tough times or when a
competitor tries to coax them away.
In 2008 Gartner Research stated
that by 2010 more than sixty
percent of Fortune 100 companies
would have some form of online
community and in the same year
Forrester Research concluded that:
“if you haven’t already got a panel
or community, get one.”
So if Audi, Coke, Apple, Steinlager and even The
Listener are using customer panels why aren’t you?
Great companies continually seek feedback
from their customers so they can improve. I’d call
customer panels your insurance policy or better still
a ‘safety stop’. Better to have one than not.>D

How Not for
Profits can Profit
charities
Sick of having a bucket shaken at you
every Friday? How about intrusive calls at
dinnertime or being hijacked in the street
by a well meaning ‘helper’? Are we suffering
from a case of ‘charity fatigue’?
Whilst New Zealand households continue to work
hard supporting their families with reduced budgets,
it makes sense why they don’t have the same
headspace to support other causes right now. It
seems they have problems, literally closer to home.
So what are charities doing about it? Not much it
seems according to the 2009 Grant Thornton Not
for Profit Sector Survey. The report came out and
said: “despite economic conditions there is no
change to the three most challenging issues facing
the Not For Profit sector: financing the activities of
the organisation; fundraising; and the role of board
and other governance issues.”
The 2009 Report also stated “less than half of all
Some soul-searching questions
charities should ask themselves:
• Why should someone choose our cause?
• Do we have a higher purpose for people to
buy into?
• Who should we target and why?
• Can we demonstrate traceability of dollars?
• Do we communicate where money goes?
• Do we keep in touch with donors or do we
set n’ forget (until next year’s appeal)?
non-profits are open to either consolidation or
merging with other ‘like’ organisations.”
Wouldn’t this make for a similar case for centralising
back office functions to reduce operating costs? Or
is it a classic case of silo patch protection? Perhaps
it’s time to pull some heads in.
The one that really
sticks out for me is
fundraising. They are in
the marketing and sales
game just like the rest
of us. Fail to raise funds
and you don’t have an
organisation regardless
of how worthy it is.
Charities need to get up
with the play and grasp
the concept of permission-based marketing. It’s not
enough to barge in and claim a God given right
to donations. Charities must also understand and
apply the concept of traceability. That means clearly
showing where dollars go. People want to know
especially in the wake of high profile fundraising
events and rip-off revelations where sometimes,
small percentages of funds actually reached much-
needed frontline services.
23,000 charities are now registered in New Zealand
with The Charities Commission. And within that
there are over 60 registered cancer organisations.
That’s a lot of noise and competition even in the one
area so isn’t it time to work smarter and harder?
From January 7 this year, employees have been able
to automatically set up Payroll Giving deductions
• What can we do differently from the rest to
get cut-through?
• How can we deeply and emotionally
connect with our donors?
• Who could we partner up with to reach new
donors and markets?
• Are our current communications effective?
How do we know this?
cont
in
ued

through their employees so what are you waiting for

guys? Get on their donor list, or better still- hearts About
and minds, and fight for your rightful share. And
remember to communicate your higher purpose - Distinct
not your god-given right. St John Craner founded
Distinct in 2007 to teach
businesses, regardless
The 2009 Grant Thornton Not of size, how to think like
for Profit Sector Survey said: marketers so they can
“despite economic conditions then think for themselves
– without the on-going
there is no change to the three dependency.
most challenging issues facing the St John graduated with
Not For Profit sector: financing, honours from the UK’s
first Advertising, Marketing and Media degree
fundraising and the role of board course of its kind back in 1995. With 15 years
and other governance issues.” experience working for leading corporates and
agencies here and in the UK, including McCann
Donors need increasing reassurance. Old memories Erickson, Young & Rubicam, Westpac, Contact
die hard and trust, as it’s been proven recently, can Energy and New Zealand Post St John is ready
be lost in minutes.>D to share his knowledge of what works and what
doesn’t with you and your team.

“ QUOTE CORNER
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”
or service obsolete. It is the only way to or suggestions:
prevent your competitors from doing so. feedback@distinct.co.nz
Peter Drucker (US Marketing Legend)

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