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Hey <<First Name>>,

This week we get a little fizz as one of our most beloved legacy brands, Coke, is faltering a little bit and being upstaged by baby brother Pepsi.

Whenever Coke does something wrong or right, it's almost always a lesson in the making. Especially, for a die-hard Coke fan like me.

The last time I ordered take out and they sent me a Pepsi instead of the Coke they'd sold me, I didn't stop cussing at it under my breath for an hour.

I don't think I'll ever see eye to eye with people who say, "It's just a cola, what's the difference?"

The zombies wanna taste the feeling too

Last week Tuesday Coke reported the largest decline in quarterly revenue in 25 years.

4 out of 5 best selling sodas out there belong to Coke but it was PepsiCo that beat analyst's expectations for the same period.

The slump was to be expected since over 50% of Coke's revenue comes from bars, restaurants and theatres. All off-limits during COVID.

Coke had already gone bearish in early 2020 and in Q2 they slammed the breaks on marketing altogether.

Things haven't been rosy for PepsiCo either.

But during Q2 they beat expectations as well as had their snacks brands reporting organic revenue growth.

Coke attributes their fall to being bogged down by a bunch of 'Zombie brands'.

Imagine my excitement when this quarterly earnings report turned into a lesson in brand management.

Let's dig in!

Since last year, Coke has been following a 3-tier brand strategy:
  1. Major brands, those staples that endure from one decade to the next.
  2. Explorer brands to disrupt, scale quickly and gain loyal consumers
  3. Challenger brands designed to gain large market shares and transform into market leaders.
As you'd expect, they also have specific performance objectives for each category.

So far so good, but it seems they haven't been doing their due diligence.

Even Coke's CEO said that they haven't been assertive enough in weeding out the brands that haven't worked and redirecting resources onto explorers and challengers that have the most opportunity.

What's the lesson for us? Because we're not walking away without one.
  1. Set specific and measurable strategic objectives for each of your brands. Experimenting with new brands and products is how CPG brands thrive and you don't want to waste time on what doesn't work.
  2. Once you've set your objectives you've gotta stick to them. Otherwise, you won't be able to tell the difference between what's really working and what's barely alive.
  3. Setting brand objectives means setting constraints. Learning how to maximise value within those constraints is how you find new opportunities for innovation.
If you don't take managing your brands seriously it can really bog down your business.

Coke will recover but let this be a lesson in how poor management will make it hurt – even when you are a recession-proof and Buffet-approved global brand.

How to hire successful growth marketers (hint: it's not how people usually do it)

Even with all the hoopla, growth marketing is still a nascent skill.

And traditional methods of training marketers don’t produce better growth marketers.

More than anything else, training in growth marketing is all about nurturing the right mindset.

Let's get the facts straight: growth marketers...

  • deal with problems related to business not channels
  • prioritise progress over perfection
  • focus on measurable outcomes.
  • discover alternative solutions despite the constraints.
You can't teach a growth marketing mindset by teaching someone how to set up an Adwords account.

Over the years, I’ve been working on perfecting my own methods for training growth marketers and here’s what I’ve learnt:
  1. Hands-on training is essential. But ineffective at teaching people the growth marketing mindset.
  2. Small growth marketing teams require different specialisations. And unless you can create a specialised training in everything from Paid Search to Content Marketing to Analytics, you need to hire ambitious self-starters.
One solution is to get your growth marketers trained by professionals.

That can be effective but not something every team can afford. 

So, here’s what I recommend instead:

Step 1: Hire people for the right mindset. Skills can be taught at work, you don't have the time to start teaching the right mindset.

Step 2: Train them to become better at problem-solving. Rather than micromanaging how they do it, get them to focus on working their way to the end result.

It comes down to hiring for aptitude over skill.

The type of people you’re looking for is what Dave Hoover described as “relentlessly resourceful”.

Deloitte has advice on how to find relentlessly resourceful people. They have:

  1. a long-term commitment to increasing one’s impact in a particular domain (for example, banking, medicine, gardening, or visual art).
  2. a questing disposition that seeks out new challenges and views them as exciting opportunities to learn.
  3. a connecting disposition that actively seeks connections with others who could help address these challenges.

Here’s the thing: you don’t need expensive, week-long training sessions to produce high performers.

Keep in mind that any formal training is only as effective as people’s ability to practice what they’ve learnt.

So, get them practising first.

Once a month bring people together to work on a specific problem.

I get together with the growth marketers in my team and client leads each quarter.

And we work on answering these four questions:

  1. What big business challenges did we work on during this quarter?
  2. How did we perform, what did we learn and where can we improve?
  3. What are the big challenges for the coming quarter?
  4. How are we going to make our client successful at their job?

The first two questions are a review and we cover that within the first 30-minutes.

Then we spend 60 minutes on questions 3 and 4.

Having client leads with us brings in the business context.

And by focusing on our objective, ‘making the client successful’, we brainstorm everything from growth marketing solutions to digital development and more.
 

You don’t have a solution to every problem you come across.

Nor can every business problem be solved with growth marketing alone.

We often find ourselves in need of service designers, creatives or developers to solve problems we come across in our quarterly meetings.

As a manager, you don’t always have to fork out a fortune to train your growth marketers. Sometimes you can connect your team with other experts inside your organisation to get the job done.


And you should involve your team in finding solutions to meaningful problems.

Especially when it's outside their day-to-day responsibilities. Involve them in developing new services or improving existing ones.

But it’s not enough to just ask them to do it. Set a specific goal.

I like to use OKRs but you can use the performance management methods that suit you. 

The idea is simple: set a big goal and then break it down into smaller steps. Then start measuring progress against those steps until you achieve the big goal.

Most important: don’t hog the spotlight.

Instead, point it at your team because this is how you build their confidence.

The other thing that builds their confidence is celebrating. Both the victories and the failures – no matter how small.

Why celebrate failures too? Because it removes the stigma of failing and shifts the focus towards finding the learning in that experience rather than feeling shame for a failed attempt.

Thank you for reading, *|FNAME|

Here's to another great week! 🍻

Catch up again soon,
Aliyar
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Thanks for reading and sharing! BR, Aliyar.
Had so many espresso shots you can't remember why I'm sending you these emails? You're receiving these email because you opted in (on my website aliyarhussain.com) to get this weekly espresso shot of knowledge, confidence and inspiration to your inbox. That was a good move, but if you want to take a bad turn down a dark alley, you can easily update your preferences using the links below. | Aliyar Hussain, Rysäkuja 3 a 5, Helsinki 00980, Finland

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