Post-Reaching Curacao 2010.

It was a while ago, but Reaching Curacao 2010- the Event, exceeded my expectations. More than 126 marketing people attended. Someone said: "all of marketing Curacao has come to a complete stop." And the comments were very encouraging.

I do have pictures, but technology is not cooperating.

After that, and a short illness, I worked hard on the report. We sold more reports than expected.

Thank you all for your support.

Planning the next thing, while I work on engagements that really allow me to pay the bills.

A Pitch for BusinessRICH boot camp

Just a pitch for an event organized by my friends Arnout Druyvesteyn and Janine Lie-A-Kwie.
They are developing their Coaching Business throughout the Caribbean. Perfect strategy if your domestic market is small... expand to other markets


BusinessRICH
A two day business boot camp for business owners and managers
who really want to improve their business

Visit their site http://www.actioncoach.com/arnoutdruyvesteyn/events.php

Guest speaker: ActionCOACH Lee Huffman (USA), serial entrepreneur, international speaker, author

June 11, 2009 (8:00 am - 9:00 pm) & June 12, 2009 (8:00 am - 5:00 pm)
Marriott Hotel, Piscadera Bay, Curacao

Once-only introduction fee ANG 995,-. FREE for our current clients.
Price includes lunches and dinner, workbook & materials.

Register before June 4, 2009 here or email arnoutdruyvesteyn@actioncoach.com

Why you should know the trends

Competition is tough. Those who survive and thrive are those who can come up with new product ideas, innovations, and effective strategies to get these to the customer… first (or almost first). Not any new product or customer care innovation or strategy. No, those ideas and innovations that appeal to your customer. And, alas, the speed of change in customer tastes and preferences. Generations amorph. Lifestyles change. Developments outside of your product category now influence yours like never before.

If you are in charge of innovation, customer care or strategy at your organization, how do you keep track? If you are on a small island, it’s a two-edged sword. What you see in the U.S. (or elsewhere) this year will be on your island at least a few months later. So, you have time to prepare. But, unless you spend enough time abroad and sit down to analyze what you see, you won’t know the trends.

That’s where a trend analyzer comes in handy. Michael Tchong of Ubercool, “The most influential trendspotter in America”, according to the London Daily Telegraph, will be in Curacao to take us through his analysis of global trends this coming May 29th. He is hosted by the Hospitality Sales and Marketing Association International Curacao.

Mr. Tchong has spoken, among others, for Evian North America, Diageo, Euroforum in Rotterdam, several realtor associations in the U.S., Visa Europe in Istanbul, Luxury Home Marketing, Ubertrends in Colombia, several hospitality groups across the U.S. and at the Harvard Business Club.

He will take us on a whirlwind tour of the most telling trends and leaving you infused with new ideas that make sense. As a professional you cannot afford to not be aware of possible innovations (unless you can afford not to have a job). But, even if you are not specifically in charge of innovations, his presentation will leave you impressed and inspired.

Visit www.hsmaicuracao.org for more information and to register.

Three strategic models to bring objectivity to marketing plans

I would not be surprised if in Curacao "strategy" will continue to be the marketing buzzword of 2008. Good for me, that was my specialization in business school.

A strategy determines how a company is going to compete. Some strategic models also provide objective tools to evaluate the quality of marketing plans. In other words, whether the right mix of resources is dedicated to each element in the marketing mix: line extensions (new products), advertising, pricing, service, direct sales, or consumer and trade promotions (campaigns). This for each product in your portfolio.

Last year I had the pleasure of applying some models which I had long "forgotten" to a client's portfolio.

1. Product Life Cycle. Uses the life cycle stage each product is in (development, introduction, growth, maturity or decline) to help you determine for each product in your portfolio the right mix of resources and the level of profitability you should aspire to achieve. The PLC model has been around long and is quite readily applicable.
2. Boston Consulting Group Matrix. Uses your market share and overall market potential to determine marketing objectives and resources to dedicate to each element of the marketing mix.
3. Trout's Strategic Square. Uses your market share relative to that of competitors to determine marketing objectives: defend market share, attack the market leader, avoid the him or be a guerrilla.

For all some data, market intelligence and forecasting ability is needed. How to get the data?

Porter's Competitive Strategy. Uses SWOT analyses of yourself and your competitors to determine how to compete. It's a great model, which I studied at length when in school and which continues to be used extensively today. Unfortunately, there are few objective measures to determine your or your competitors' strengths or weaknesses, or which of these are relevant. Even the opportunities and threats facing the organization are not obvious. Hence, SWOT analyses often turn out to be an exercise in bias and subjectivity. A consultant should be able to be more objective. But, the first time I did so honestly (in 1995), I was fired on the spot.

The greening of marketing: the 60-30-10 rule

When I started MarkStra in 1995, the Guerrilla Marketing Handbook by Jay Levinson and Seth Godin provided ingenious, effective, practical and low-cost marketing thoughts and tips for my own company and our clients. Here is one:

"When planning a direct mail campaign, remember to follow the commonly known 60-30-10 rule.

• Sixty percent direct mail success lies in using the right mailing list;


• Thirty percent depends on your making the right offer (that is, an offer that satisfies the customer's needs better than the competitor and provides value to him or her);


• Ten percent depends upon your creative package"

Between 1995 and 2007, the price of oil (and consequently also of our marketing material) has risen from just over US$20 per barrel to US$100 and the environment is under pressure.

Have you stopped to evaluate if its worth it, both for your bottom line and for the environment, to produce some of the super-creative marketing material we marketeers strive for? Especially when you know that super-creative material is not exceedingly effective in attracting customers?

Branding Curacao's International Financial Sector

Some 18 months ago, out of pure interest, I started examining what could be the unique competitive advantages of Curacao's international financial sector. The many years of expertise suggest that a unique competitive advantage must exist. Only, I believe the sector has been promoting benefits that now exist in most jurisdictions.

Recently a picture of a beautiful Curacao monument used in a some promotional material for the sector, triggered a discussion and further thought. First about the image the sector really wants to portray. Second, about what potential clients are impressed by and therefore what image (brand) the sector should portray. And then we discussed what picture would best fit with what these clients look for in a Caribbean jurisdiction and therefore what picture we should use. A classic brand essence exercise, but done informally.

I do not know. As many Curacaoans I am proud of our monuments and the fact that our city is on the UNESCO World Heritage List.

Monuments are classic and depict a proper conservatism. That image may very well be necessary. I also know that in at least some sub sectors of the industry, the people are young, risk-takers, educated at some of the premier schools of the world. Now everyone is connected 24/7, the world is fast, global. Unfortunately, in international business, we expect images to be the same wherever we are. That suggests a "seamless fit".

So, it merits further thought and discussion. Most people in the industry are accountants or lawyers, who are less inclined to truly "market". That is not their strength. Proper market research, followed by the appropriate strategy would be a good step to take.

Of Curacao Cantaloupe and rum

Brand and product development exercises for (alcoholic) beverages is one of our strong suits. So, I have taken to collecting cook books published by Caribbean producers of different liquor and have developed some recipes of my own as a result.

Curacao Cantaloupe

1. Peel a cantaloupe (melon) and cut it in wedges of 2-3 centimeters thick. You can use other fruit, especially those that are not tasty enough on their own.
2. Make a thick syrup of equal parts of sugar and water. This means you would have to heat up the two
3. Throw in the cantaloupe wedges and boil for a few minutes until the fruit is softened somewhat
4. When the mixture is cool enough to handle, divide the wedges in sterilized (previously used) glass jars and fill up to 2/3 with the syrup
5. Fill to the top with orange Curacao liqueur, preferably the authentic one
6. Serve at room temperature with your best local ice cream
   

The recipe above is adapted from Edward Bottone’s Spirit of Bermuda (cooking with Gosling’s Black Seal Rum). It is absolutely delicious. I also have a love-hate relationship with the matter because cantaloupes are the one vine in my (organic) garden that lizards absolutely will not leave alone.

Colorful tropical fruit steeped in rum also makes for a nice gift, drink and fruit. Red hot peppers in rum makes for a nice hot gift. Both ideas are from Steven Raichlin’s The Caribbean Pantry Cookbook.

7 ways to use market research

Often we think of market research as a way to get insight from customers with regard to our own company. But, that's not its only use. Here are some ideas:

1. measure, rank and score yourself on issues that are important to your organization (Key Performance Indicators) or the customer (Customer Core Values). Don't bother measuring things that are not important to either you or the customer.
2. check out your competitors. So, you know who to copy (and in which way), whose customers to go after (because they are dissatisfied) or leave alone (because they are way too loyal). Maybe you are uncomfortable asking about your competitors, but an independent researcher is not. That's their job!
3. find out if the perceptions that employees have of their organizations matches the perception of customers and make adjustments when and where necessary.
4. establish a common starting point (a common data-backed assumption) in your organization with regard to opportunities. This, so that innovative ideas are not shot down or delayed just because of different suppositions. This is especially true when the decision-makers have varying degrees of experience with the issue or look at it from different angles. An example: the director and supervisor may have different assumptions. Whose is most likely to be correct? Whose is most likely to "win" without independent insight.
5. determine desired ROI. For example: Based on the research data, can you gain 5% market share? What would be the source of this growth? How much would it cost? Is it worth the effort?
6. If your organization is not yet into ROI, you can use the data to set quantifiable and realistic objectives. Example: if the research shows that you have a 50% market share, is it realistic to set an objective of 25% growth over the next 12 months? In other words, you need to know what your market share is. Otherwise you can't determine if your growth objective is realistic.
7. create a unique value-added experience. Nowadays it's not just the product that is important. It is the experience when purchasing or perusing the product, online or offline, that is. Through research (mystery shopping) you can find out what customers find a "wow" experience.

Back to school: Market Research and Corporate Strategy

It's been back to school in two ways in the past few months:

First, later today I start teaching Marketing Research at the University of the Netherlands Antilles, using the same text book I had as an undergraduate student (Aaker/Day), albeit a much newer edition. It's a real pleasure to see the difference in the 2nd and 9th edition with regard to geographical scope. The chapters on secondary data sources are also expanded to reflect the abundance of timely, easily and inexpensively available secondary data that researchers now have access to. More emphasis on cost-benefit analysis before embarking on research is also a welcome addition, especially in our small markets. And lastly, obviously, the impact of the Internet on the market research function.

It will still be a challenge to translate the concepts to our smaller market and showing students how to be creative with their knowledge given the limitations. This while reminding them that we do live in a global world and they can more easily end up doing research for larger markets (while still sitting in Curacao) than ever before.

Back to (graduate business) school days also came in an assignment some time ago where we used Product Life Cycles, Boston Consulting Group Matrices and Ansoff growth models, the stuff specialization at The Wharton School was made up of. Now we used them to examine the existing and future potential of each brand as it relates to the client's bottom line and which marketing strategies to follow to realize that potential. Given the experience I have now, I could also develop some of my own strategies. Without doubt one of the more interesting assignments recently.

I realized the increased relevance of these concepts as marketing directors try to manage product portfolios that are ever expanding with new products and line extensions targeted to increasingly smaller segments.

It also made me realize how even more relevant these strategic concepts are to small markets. Marketing Directors are inclined to take on all (or many) extensions of their brand owners in their portfolios in an effort to fulfil the desires of their customers, who have access to global information and just know there is a product "just for them" even if, in a small market, they may be the only one in the segment. What is the MD to do?

Have you stopped to evaluate:

• the added benefit of a new extension to your clients
• the added contribution of a line extension to your bottom line, given the sometimes really small segments.
• how to duly support line extensions in the long run
• how to support the growth of extensions that will be more relevant in the future with present "cash cows"

Wanted: A parachute for Marketing Advertising Communication Service Providers

Some time has passed since about 40 Marketing, Advertising and Communication (MAC) Service Providers, representing 20 companies in Curacao got together for a happy hour. It was our first time and how fun it was.

Since I was the one to send the invitations, many people have asked what my expectations were and are. Really, I wanted to meet and chat informally with colleagues I already knew and meet those I did not know. My ultimate goal, however, is to find optimal ways to cooperate so we can offer our services internationally. It is more efficient and effective for us to do so together than alone, as I have been doing in the past 12 years.

I happen to believe that international service is cut out for us. We speak (or at the very least understand) all the languages of the Caribbean region (and the hemisphere): English, Spanish, Dutch, French, Papiamentu (and even Portuguese). Many of us can easily trace our ancestry (and customs) to one ore more of the 40-plus countries our parents or grandparents came and keep coming from. Most of us have studied abroad and adopted parts of the cultures of our host country. So, we also understand the "blends" that the world is increasingly made up off "naturally". Unfortunately, when something is so "natural" to you, you don't realize its value and you don't sell it.

Cooperation also enables us to provide a better product to the client, because every one can then market their true specialty and still get or keep the client (or at least a commission). The perils of selling something one cannot deliver are well-known: you risk losing all of it.

I believe in the efficiency of free markets (so I don't believe in setting prices), and in a Code of Ethics, similar general conditions and business improvement workshops for the sector. These strengthen our businesses and prepare us to meet greater challenges. A bit of publicity is not bad either. That's our business.

In addition, if we do all of the above, chances are local clients will realize our true potential and feel (even) more comfortable recommending us to their principals or brand owners for assignments that encompass the region. Because there is nothing better than word-of-mouth. So, since most readers of this blog are local clients, I may ask: "Will you be some one's parachute into another market?"

Diversity in communication: an anecdote

My boyfriend has lived in the Caribbean for several years now. He is a good sailor who has sailed the Caribbean Sea extensively. He is also an accountant who works in the international financial sector. A native Dutch speaker, he speaks good English.

I am a local Caribbean woman who had a proper undergraduate and graduate U.S. education in the North East. I too have travelled extensively in what I call "my Caribbean" for my roots lie in the Dutch as well as in the Spanish and English Caribbean. I am a marketer. A native Papiamentu speaker, I speak good English and Dutch. Spanish also, but that's not relevant now.

We are going on a sailing holiday with some friends: Canadians, New Yorkers and Californians.

The - admittedly not so original - idea of making caps for everybody befell us. So, for the past week the two of us have been thinking of a slogan that fits the following requirements. Probably also in this irrational order:

• The captain (my boyfriend) should like it well enough to accept on his boat. Ahoy, captain!
• I should like it well enough to arrange the production. A little sabotage goes a long way
• The guests should find it appropriate both on vacation in the British Caribbean and when they return home, so that they will continue to wear it. At least, the two of us should think that they will
• Our Anglo-Saxon friends and their friends should understand the humor, a humor that does not have Anglo-Saxon roots. Again, so that they will continue to wear it. Again, at least the two of us should think that they will

This all given:

• our different ethnic and professional backgrounds
• the hierarchy and our position in it
• that it should remain a surprise for our friends. So, we cannot consult them. No, we are clairvoyant enough

In many ways it reminds me of the times that I have thought up or contributed to marketing communication efforts. Or of some of the efforts I see and hear today.

I have accepted that everything we think of with the caps will be "a bit off". But, on vacation, it doesn't matter. We will all still enjoy the experience.

But, what if it were important, as it usually is in a marketer's professional life? What if we didn't know if it is important? Or how important it is?

Here are some questions to ponder:

• How well does your organization handle internal diversity?
• How well does it handle diversity as it relates to the customer? Do you just translate to different languages?
• How do you ensure that you make and execute the right decisions, i.e. those that appeal to the customers and not necessarily to yourself? Or the boss? Or her husband?
• Do you localize global campaigns? How? Based on what?
• How do you convince headquarters that something won't work locally?

Yes, maybe your market is small. But, how much can you afford to get it wrong when you could and should have gotten it right?

Strategy and marketing in small markets?

On the internet there are many ideas for small businesses and for big businesses.
But few ideas deal specifically with marketing and strategy challenges in small markets such as Curacao and the Caribbean.
That, while we know that, because of consumer demands and expectations, the future lies in “niche markets” and even “localized” strategy (adapted to preferences of specific cities, neighborhoods, etc.). In our small markets we may easily literally end up with a “market of one”.
How can we overcome these challenges? How can we use and adapt existing tools for our small markets to make it worth our while?

These are the issues I wish to discuss in this blog. It is a thought that I am developing, hopefully assisted by your comments. So, not all posts deal with small markets.

Marketing and strategy for not-for-profits

There are now so many not-for-profit organizations, both governmental and otherwise, trying to raise funds, get members, attract “share of attention” of the same people. All are having a harder time doing so.

How can your organization stand out?
By taking the same strategy and marketing approach as successful businesses do.

Many years ago I developed the program “Charity is no longer” in an endeavor to share strategy and marketing thinking with not-for-profit organizations. I held presentations and workshops for, among others, the Rotary Club of Curacao and several chapters and national congress of the Jaycees International.

The issue recently came up again, inspiring me to revive that program in 2007.

In the session of your choice we can discuss your biggest challenges from a business point of view.

• Attracting and retaining active board members and general members
• New approaches to raising funds
• How can the internet help you
• Asking for and giving support other than money
• Advertising your projects, programs, cause or club
• What else can we do, where else can we help? Brainstorming for new project ideas
• Capturing your ideas in a strategic plan

All topics can be tailored to your needs and delivered in Papiamento, English, Spanish or Dutch. Contact me at

tlacruz@markstra.com or (599-9) 767-3085.