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The Bankruptcy of the Non-Descript

Dan Thornton | January 6, 2009

So far we’ve lost Woolworths, MFI and  Zavvi, while Whittards has been bought by a private equity firm after going into administration.

At least MFI and Zavvi still have websites notifying people of their current status - Woolworths has: ‘Our site is currently undergoing essential maintenance. We apologise for any inconvenience caused.  Please check back later.’

What’s interesting is that there are various reasons for the first three disappearing - the problems with the music industry, the downturn in the housing market, a drop in consumer spending etc.  And despite the possibility of a buyer for Woolworths, there’s nothing happening fast. Meanwhile Whittards was snapped up quickly.

Which makes me think this could be the start of something I’m going to call:

The Bankruptcy of the Non-Descript:

In Case of Bankruptcy, Please Help Yourself - by Noaz. on Flickr

In Case of Bankruptcy, Please Help Yourself - by Noaz. on Flickr

Put simply, Woolies, Zavvi and MFI all had a problem, in that they didn’t have a clear belief and description. Woolies started as an American ‘five and dime‘ store - but mutated over the years, leaving Poundland as the modern equivalent. (I’m not linking to the Poundland site due to the annoying auto-playing explosion that just burst my eardrums!). In the end, Woolies was a strange amalgamation of Pic’n'mix sweets, entertainment, soft furnishings etc.

Zavvi came out of a management buy-out of former Virgin Megastores, and at the time left a lot of people asking friends what had happened. Apparently the aim was to be different from competitors by having ‘exclusive and limited edition products in the future’. An aim buried in a wikipedia entry, and an interview in industry publication MCV.

MFI had all sorts of problems, but most importantly, look at who it’s up against - Ikea. I’d guess most people already know what the Swedish success story stands for, but if not, try here, and here. Functional, well -designed furniture that everyone can afford, with Swedish names, Swedish food stores, and bargain hotdogs at the end of the trip.  My girlfriend has been known to forcibly demand Ikea trips to placate her homesickness for Sweden!

I may have had similar excitement at the sight of a Marks and Spencers are months without a sausage roll or pork pie in the U.S, but can you imagine curing your homesickness with a trip to Zavvi or MFI? Even Woolworths?

This isn’t about having a national identity - it’s about having a distinct belief and identity that everyone can clearly understand, and that people can align themselves with.

This isn’t an absolute rule:

I’m not going to say that having a belief will ensure success, or that you won’t make it through 2009 without one - there are far too many other factors involved, from changes in consumer spending to Government bailouts.

But I do think that within each industry and category, we’ll see a greater survival rate for the companies we can believe in.

So I’m going to start tracking what happens, and I’d appreciate your help. It may become a wiki page, but for the moment I’d just ask you to let me know in the comments if you see companies going under, and whether they had a clear belief or not.

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Uncategorized, belief
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administration, bankruptcy, bankruptcy of the non-descript, belief, brand, mfi, name, reputation, whittards, woolworths, zavvi
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Two adverts that irritate the s*** out of me

Dan Thornton | January 5, 2009

It’s the perfect time for ranting as I’m still feeling a bit poorly, so I thought I’d highlight two television adverts currently irritating the hell out of me.

First up, is the PG Tips homage to a Morecombe and Wise sketch, mainly because it’s so completely irrelevant to me, but seems to be on constant repeat at the moment on the channels I tend to watch. Especially Film 4, completely distracting me from whichever movie I’m watching.

  • I’m in my (very early) 30s, and Morecombe and Wise had pretty much peaked before my time
  • Even then, the PG Tips ad isn’t as good as I remember the original sketch being.
  • But most of all, I don’t drink tea, and neither does my partner.

I realise the last point marks me as being outside of the target demographic of the tea industry, and so they won’t count me as being a huge loss or influential. There are currently two packets of tea in the house, both of which have probably been here since we moved in - one posh packet which my parents probably brought with them out of desperation, and one cheap packet for any guests who didn’t fancy the posh stuff.

But the fact I’m not a tea-makers target is exactly my point. I’ll never buy it. I’ll never talk to anyone about buying it. And I don’t have the necessary technology to avoid it. So why inflict it on me?

But that’s just a case of traditional irrelevance - there’s a far worse offender out there:

Oh Sweet Lord.

It comes from Norwich Union, soon to be renamed as Aviva, as it’s part of the Aviva group and known under that name internationally. So changing the name might make sense from an efficiency point of view, particularly when job cuts are being repeatedly announced.

But what I don’t get, and I’m trying not to use the word ‘brand’ to join Mark Earls, is the way it has been done. For starters, they’ve had to pay Bruce Willis, Elle MacPherson, Alice Cooper and Ringo Star to talk about how they wouldn’t have had fame and fortune without changing their name.

That’s right. Forget starring in Die Hard, or being part of the Beatles. Or any inference their stardom is down to talent, luck and making the right career choices. After all, if only Molly Ringwald had changed her name, rather than turning down the lead roles in Pretty Woman and Ghost, for example. I won’t even mention Engelbert Humperdinck.

Or the fact that most actors in the UK change their names due to Equity rules stating there can’t be two performers with the same name.

We get a voiceover telling us how changing our name can allow us to become who we want to be, and that Norwich Union is becoming Aviva after over 200 years of the same name. (My first thought was the confusion with the bus company, Arriva, that served my hometown)

But what it doesn’t tell us is what NU/Aviva wants to be.

There’s no reasoning, no belief, and nothing to make anyone think this is more than an attempt to save money on headed stationary.

Why couldn’t they use the name change to publish a clear belief which might benefit consumers, and could be easily said and repeated? ‘We’re changing the name, and making sure you never wait longer than 30 seconds in a phone queue’ for example, or ‘We’re changing the name be more efficient, so we can lower our prices by 5% when you renew’. Or even just some honesty ‘We’re changing the name to save some money and stay in business in tough times - so you don’t lose your insurance cover when you might need it’.

Has no-one else ever watched Crazy People?

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advertising, marketing
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advertising, aviva, belief, brand, efficiency, honesty, morecombe and wise, name, norwich union, pg tips, rebrand, relevancy, rename, target demorgraphic, targetting
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Feeling a bit poorly

Dan Thornton | January 3, 2009

Normal service will be resumed shortly…

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Cool - I’m a top 40 UK marketing blogger!

Dan Thornton | January 2, 2009

Apologies for the trumpet blowing, but I’m sure it won’t last. Generally I seem to schedule any hiatus in blogging to coincide with the monthly rankings on marketing blogs.

But thanks the list helpfully compiled at Spinning Around, I can now claim that for at least one month, I cracked the Top 40 (a figure still magical due to the music charts).

Pic by Le Jhe on Flickr. (CC Licence)

Pic by Le Jhe on Flickr. (CC Licence)

In fact, I’m a #39, as you can witness at the UK’s Top Marketing Webblogs, which is pulled from the AdAge Power 150. Confusingly the Power 150 tracks 932 sites at the time of writing!

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Blogging
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