Mike Walsh

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Easter Eggs

Posted by Mike Walsh ON 8/2/09 3:23 AM

cocacola

 

After a month in LA, I honestly felt like I was starting to see things. American fast food suffers from an identical crisis. Burger joints, juice bars, coffee shops - it's an endless parade of franchise repetition. But after I complained one too many times, I was pulled aside and informed in a hushed tones that I had it all wrong. 'You just need to know about the secret menus', said my friend. And she was right. I did need to know. Because even the most boring of brands, it turns out, have a back door.

Sameness is an inevitable consequence of capitalism. You might start life running a ultra hip underground Korean Taco truck in West Hollywood that plays accoustic K-pop remixes of the Beach Boys - but fifty trucks later, you will quickly swap unique and cool, for mass and market. But as I discovered, whether by accident or design, certain franchise brands seem to have evolved a secret language of signs and symbols known only to the select consumerati.

Here are a few examples:

- In-N-Out Burger has a very simple official menu, but a wide variety of unofficial ordering phrases. Ordering your burger "Animal Style" will grant you secret sauce and grilled onions, a "Flying Dutchman" is a burger with no bread or lettuce while "Protein Style" is a burger wrapped in lettuce instead of a bun. You can also upsize yourself by asking for a 3x3 or 4x4 (multiplies the meat and cheese). And even more bizarrely, there are small codes on the wrappers of most items. Look closely at the paper surrounding your cheeseburger and you will find the numbers 3:20, which equate to a Bible passage in Revelations: "Behold, I stand at the door, and knock: if any man hears my voice, and open the door, I will come in to him, and will dine with him, and he with Me." God loves burgers too, it seems.

- Jamba Juice has an entire secret menu of unhealthy and rather inappropriately named smoothies including the 'Dirty Orgasm' and 'Hello Jesus'.

- Starbucks will serve you something called a 'Red Eye' which is a cup of coffee with a shot of expresso dumped in it. They also keep tiny cups under the counter which they don't advertise. Ask for a 'short' latte and you will discover the joys of more coffee, less milk. And for the real franchise fanatics, you can memorise the specific order of options used by Starbucks baristas when they yell at each other. Here's the options order: hot or iced, size, drink style, wet or dry, strength, milk style, and any final directions (extra hot, no foam, light ice).

Building secrets into brands reminds me of the art of hiding 'Easter Eggs' in games and movies. Programmers would often leave amusing pranks inside video games or software applications for those that knew how to find them. Early versions of Microsoft Office had hidden flight simulator and pinball games, and if you typed 'make love' into some Unix Operating Systems, the computer would reply 'not war?'. And according to legend, the original laser disc version of 'Who Framed Roger Rabbit?' not only had naked stills of Jessica Rabbit, but the then CEO Michael Eisner's home phone number scrawled on a Toontown restroom wall.

All of this may seem a bit odd, but I think that more brands should have 'Easter Eggs' hidden within them. They provide a lenticular quality. From one side - consumers will see the mass market product - which you need in order to present a simple and consistent message to the world. But look slightly askew, and your true evangelists will have access to their own private world of special products, ordering styles, personalisation and brand mythology. And having been initiated into your secret society, you can be sure that they will be more likely to spread the word and do your marketing for you.

Of course, like any game of Chinese Whispers, things can get a little lost in translation. Think of the unfortunate Filipino man in the queue in front of me, who confident in his new In-N-Out Burger Jedi ordering skills, demanded loudly that he would like a 'Double, double... doggy style'.

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CATEGORY: Marketing

Obsolescence

Posted by Mike Walsh ON 6/10/09 6:47 AM

There is drawer in my house that is a graveyard. Adapters, gadgets, phones, music players, digital cameras - all once proud icons of the state of the art, now just a kind of art of the static. I know a Japanese blogger who inscribes in marker pen the date he buys a new toy so that he knows for how long he has had it. That strikes me as macabre. I don't want to be reminded of the half life of contemporary treasure. But still, it raises an interesting question. Should we despair at obsolescence or rejoice in the cult of the new?

Obsolescence is an inevitable consequence of capitalism. Think long enough about the logic of mass production and you will start believing in the divine necessity of building things designed to be thrown away. If we become wealthy through work, and work is created through things being made - then making something too well reduces the necessity of its continual replacement. You might remember the satirical scenario in Huxley's 'Brave New World' where the citizens of a perversely happy Utopia vie to entertain themselves in games and activities that use the maximum amount of resources. There is no doubt that waste creates wealth, but what does it do for happiness?

Well, it's hard to say - for the simple reason that the reason we buy things now has little do with replacement and everything to do with desire. Few people buy a new product because their old one is broken. They buy because objects and their ownership offer passports to worlds of pure symbolic joy.

Take Apple for example. Have you ever heard of a company where people hang on press releases like the Second Coming, turn up to product briefings as though they are spiritual rallies and immediately seize upon the latest version of whatever perfectly good gadget they previously owned to embrace the new, new thing? And it's not just technology. In Hong Kong, there is an entire black market trade in last season's luxury goods. For those that must have the latest look handbag - the handbag itself is worthless - it's the newness that counts. Cantonese fashionistas and rich wives trade in their precious commodities often months after purchase - to be snapped up by the lower rungs of mainland factory girls with their eyes on the prize.

There is an empty satisfaction in all of this. Continuous acquisition creates a kind of personal momentum that one can easily mistake for meaning. But to be honest, looking at my technology graveyard - i only feel remorse. When I think about the things that really make me happy - my old mechanical cameras, my fountain pen, my leather worn diaries, my beat up old leather satchel - it is their longevity that I prize. At some point in my owning them, they seem to have lost whatever brand signal they once possessed. Now they just radiate my own personal signature. I love that. It's like they stopped becoming mine and started becoming me.

And as to my own personal obsolescence, well - I'll guess I'll just have to get back to you on that one.

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CATEGORY: Philosophy

What's Next For Music?

Posted by Mike Walsh ON 6/8/09 4:50 AM

musicThe funny thing about the music industry these days is the growing influence of people you would least expect to be hanging backstage with the band. Mobile operators, handset manufacturers, broadband providers and even social networking geeks - Music is fast becoming the digital currency de jour for anyone who wants to engage with consumers online. But what does that mean for the value of music going forward?

The future of music was a question hotly debated at this year's Music Matters conference - Asia's peak music industry summit held in Hong Kong. Value is a complex issue. If songs have intrinsic worth in themselves, then their commercial distribution should be defended to the hilt even in the wake of overwhelming piracy. If greater value lies elsewhere - for example selling concert tickets, branded merchandise or reducing churn on mobile data plans - then music should be free and leveraged as a promotional platform.

With fast broadband, advanced mobiles and media hungry consumers - Asia is a great laboratory for understanding where the entertainment industry is heading. In most cases, consumer behavior is still way ahead of corporate attempts at commercialisation - hence the lawsuits. But there are growing pockets of innovation. Here is a quick primer on four areas where consumers are pushing the boundaries of the traditional music industry:

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1. Buying Music From Your Phone

Until very recently, ringtones were a major cash cow for Telco operators. But as mobile networks have become faster and handsets smarter - mobile music products have also had to innovate. Japan's sophisticated mobile market is a case in point. According to the RIAJ, last year 90% of Japanese digital music sales took place on mobile phones, with only 10% over the Internet. The new music profit driver in Japan 'over the air' (OTA) song purchases. 'Chaku-uta', (30-second song snippets) and 'Chaku-uta Full' (MP3 full-length songs) have become very popular with consumers, and are largely distributed through a platform called Label Music, owned by all the major record labels.

Nevertheless, Japan is a curious and unique market. Contradictions abound. An aging population, which still prefers buying CDs, continues to support the sales of physical music. So local music labels have a segmented marketing strategy. They target the over forties with CDs and albums, and kids with mobile distribution and digital singles. The latter has had an interesting impact on the creative process. Take superband GReeeeN for example, which are focused primarily on the mobile and download markets. Unlike typical Japanese Tarento, the band refuses to show their faces - the cute story being that they haven't told their parents yet. Their hit song "Kiseki" recently broke all the records with 2.3 million chaku-uta full downloads.

Japanese mobile success may be hard to replicate elsewhere. While Asian kids have adopted their phones as music devices - sideloading poses a longer term challenge to the OTA business model. According to Synovate, across Asia 46% of young users download music and transfer tracks to their phone. Only 21% regionally download music directly to their phone.

2. Finding Music on Search Engines

The second area where the music industry is being forced to keep pace with consumer innovation is around search. In China, digital piracy is rampant. The vast majority of music is illegal - and even if you do buy a physical CD - chances are, the retailer selling it to you stole it himself. Not surprisingly, MP3s are one of the most popular search items on the major search engines in China. The China Market Research Group estimate that music accounts for 20 to 30 percent of all searches on Baidu. To combat Baidu, Google China launched its first music platform - Google Music, which in partnership with Top100.cn offers free advertising supported music search and streaming. All the music on the site has been legally provided through deals with the major labels - the vast majority of which had long since given up making money from anything other than ringtones in China anyway.

What makes Google Music interesting, however, is not just free legal music. One of the key enteratinment issues in China is discovery. An unusual consequences of the growth in ringtones in China has been the proliferation of what literally translates as 'saliva music' - songs that are simple in melody, and designed for the limitations of a 2G ringtone. Unfortunately, that makes the long tail in China pretty short.

To help expose Chinese users to a greater depth of artists and music tracks - Google Music uses an algorithym that analyses the timbre, rhythym and beat of songs, in order to recommend similar tracks. The results are impressive but like elsewhere in the world - the jury is still out as to whether revenue sharing on free streamed and downloadable music tracks will be worthwhile for content owners. But at least now, unlike before - the labels in China have skin in the game.

3. Mixing Music with Friends

The third trend in music innovation is around social media. Forget Myspace Music - if you want to see the future of commercialising music through social networks, take a look at Tencent. Tencent operates the instant messaging community QQ. It has over 200 millions users in China, and even more impressive - over a billion (USD) in revenues. Unlike social networks in the US like Facebook or Myspace - online advertising last year contributed only $120.9 million to Tencent's revenues. The vast majority of the top line revenue figure ($719.1m) came from interactive services like virtual items, personalisation and music.

In exchange for small transaction fees, Tencent allows users to play music in the backgrounds of their profile pages or dedicate music to each other. It has been estimated that they make between $30-40 million a year alone on these music based services.

Virtual merchandise and the commercial integration of music into social platforms is a lesson that the West could well learn from countries like China and Korea. While platforms like Myspace Music, Last.FM and iMeem do a great job at supporting music discovery - their advertising dependent business models are still only half formed.

4. Bundling Music with Everyone Else

Finally, it is worth thinking about the potential impact of offering consumers access to large music libraries as part of bundled subscription services. Telco operators have started to pay attention to music for two reasons - ARPU and churn. But do consumers care? Denmark is an interesting case study. Under Danish law, Telcos can only bind their customers to six month contracts - making renewals a serious issue. TDC, Denmark's major carrier launched a service in March 2008 which gives their mobile and broadband customers unlimited access to music downloads for free. Of course, if you cancel your subscription, you also lose access to the music. So far, their plan seems to be working - churn is down 60%. But as a consumer model, it is still less than ideal.

Danish telcos are not the only ones looking to use music to bind consumers more tightly to their services. Even handset manufacturers like Nokia are offering unlimited music downloads to consumers who buy certain models of their phones. Music subscription services are a double edged sword for consumers. They offer infinite choice, but often lack the community infrastructure to aid music discovery. Further, the looming threat of cancelled access provides little incentive for consumers to invest time in curating a collection.

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Taken together, all of these four trends are examples of businesses adjusting to the new ways that audiences are consuming digital music. The longer term structure of the music industry is still far from certain. Things are moving fast, and the worst possible mistake is to focus on fading metrics. The top line retail sales look bad, but they only tell part of the story. At the current rate of change, in five years time - measuring the quarterly drop in CD sales may be about as useful as tracking the current decline of cassette tapes. It's time to start watching the new sources of growth and leave dying formats in the grave.

After all, the first thing you need when the world changes is a new set of maps.

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What do you think? As always - I welcome your thoughts and feedback through the community forum. Click here to comment.

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CATEGORY: Media

Toxic

Posted by Mike Walsh ON 6/5/09 11:54 AM

plane

Every time I grab my bag and walk across the gangway onto a plane, I wonder just how much longer we are going to be able to get away with this. Riding these massive metal leviathans spewing out environment destroying toxins like some kind of medieval dragon. And if that sounds strange, don't forget that doctors once recommended cigarettes too.

We have become addicted to an idea of globalism. But what that really means, is that at some point travel stopped becoming a luxury and started becoming public transport. We catch planes now the way that people catch the bus. Somewhere along the line, we conditioned ourselves to to the idea that a holiday is not just a break from work, it is a removal from the familiar. Except really, there is almost nowhere left like that. The more we spread ourselves across the planet, the less the planet is less different to anywhere else. And yet because I still travel in search of elsewhere, I have in mind that I should buy carbon offset credits every time I do. The idea that somewhere a tree is being is planted might lessen one's moral checked luggage - but I'm under no delusions. Carbon credits are no more than medieval 'indulgences' re-imagined for the 21st century.

Someone once told me that the heaviest thing on a plane is actually its paint. I don't know about that. I suspect that these days there are a few heavy hearts too.

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CATEGORY: Philosophy

Time Lapse

Posted by Mike Walsh ON 6/5/09 11:47 AM

time_lapse

 

There is an old man who works at the end of my street in Hong Kong. Every day he sews clothes, repairs handbags, and stitches threads. He never looks up. When I walk past him I think of those sped up movies they play on TV of a plant growing, as the sun and stars move around in a blur. Except in my tailor's case, it would glittering skyscrapers growing, collapsing and rising again at high speed around him as he worked. I wish I could be there to take a picture of his expression at the moment he finally looked up.

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CATEGORY: Philosophy

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