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Tren Griffin
@trengriffin
, 3 tweets, 1 min read Read on Twitter
"P&G could afford the expensive cost of network TV because you were selling so damn many cans and bottles. Some little guy couldn’t."

Munger said that once, but he knows the brand moat from TV advertising's scale is gone. Recapturing that won't happen.

google.com/amp/s/www.bloo…
At network television sales meetings these days everyone sings:

"What a friend we have in Geico,
What a privilege to carry their ads,
Please deliver us drug ads for olds,
And informercials for six pack abs."
Progressive and Geico spent $519 and $451 (Direct) in CAC. State Farm and Allstate $827 and $711 (Agents). google.com/amp/s/www.chic… That pays for a lot of TV ads.
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Tren Griffin
@trengriffin
1/ "Brilliance can’t be taught, but the operational stuff can be. Do you have operational instincts? Who cares? If you work with me for six months, I can give you enough prowess and process to be able to go run something, and do something with it.” Bill Campbell (AKA "coach").
2/“You need a leader. You have to go out and recruit the best person you can who knows how to create an innovation culture. Give that person license to hire. Get yourself some teams. Recruit people who have the ‘DNA’ that you want.” Coach Campbell
3/ “He or she doesn’t need to be personally the most innovative person, but he or she needs to know how to foster innovation. It is all about people. If you have the right people, you will end up with the right culture.” Coach Campbell
Read 9 tweets
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Tren Griffin
@trengriffin
Falcon Heavy’s center core and two side boosters land upright today. Amazing innovations. A different question: is the benefit of these innovations producer surplus or all consumer surplus? Does innovation make GDP go up or mostly down? Is there pricing power? How big is the TAM?
You can see what innovations in launch systems (e.g., re-use) have done to rocket launch prices in the chart. Prices are *way* down. You can fit a lot of 400 kilogram satellites on the Falcons. The 64,000 kilogram question is: what is the elasticity of demand for rocket launch?
What the Falcon Heavy launch today proves is that people who claim innovation is slowing are out of the damn minds if you look at what is happening at a microeconomics level. A rocket and two side boosters landed standing up and can be reused. Magical! cnbc.com/2019/04/11/liv…
Read 3 tweets
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Tren Griffin
@trengriffin
1/ "You can name people who are richer than Rich Barton, but you can’t name very many people who have his track record. You will find very few people in this country who have as many times created something from nothing.” Nick Hanauer. A chapter on Barton: amazon.com/Lessons-Entrep…
2/ "User-generated content models are magic because the more reviews you have of hotels, for instance, the more it attracts users to the site. And the more users you have the more reviews you get. This is a very simple, elegant example of a positive feedback system." Rich Barton
3/ "We didn’t have much money so we couldn’t invest in advertising, but we knew the most important 'P' of the Marketing Mix 5 P’s is 'Product.' So, we built a highly provocative product (with the Zestimate), and married that to PR." Rich Barton. Low CAC is a wonderful thing.
Read 6 tweets

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C W
@OmgItsSmart
Just read a sell-side note comparing legacy CPG / Amazon to legacy media / Netflix.

Half-baked Tuesday contrarian thought experiment: what would be potential reasons why Amazon private label might *not* ever disrupt CPG? Two come to mind for me:
1) Lack of focus by Amazon

Aka the same reason why traditional private label didn't kill CPG

P&G is never building its own 2-day shipping infrastructure. Meanwhile, the media networks would've eventually built their own SVOD services; this was do-or-die for Netflix in 2012
2) Physical products are not zero marginal cost (obviously)

The fixed nature of content costs is what enables the Netflix flywheel: more subscribers = more content spend = wider moat

Amazon private label has no obvious advantage along these lines; they're just another brand
Read 4 tweets
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visakan veerasamy
@visakanv
Y’all wanna hear the Red Bull story? I once spent like a week in 2013 reading about it, but that was before I became a Twitter fiend
2 parts to the Red Bull story, the Thai part and the Austrian part, and both bits are interesting. The more I learned abt Dietrich Mateschitz, the Austrian founder, the more I found him to be incredibly cool. Smart, savvy, a true branding master. Cooler & wealthier than R.Branson
[About 4 times wealthier. Funny how once you're a billionaire, you're just a billionaire. Dietrich is approx ~4 Bransons, and Bezos is 5.5 Dietriches. 1 Bezos is over 20 Bransons]

But I don't care about the money, I care about the cool. And Dietrich is IMO the coolest of the lot
Read 20 tweets
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The Charlieton
@TheCharlieton
I just finished reading ‘Ogilvy on Advertising’.

After personally overseeing many frustrating marketing campaigns in 2018, this book hit me like a bolt of lightning and was easily a top five read in the last 12 months.

Here’s a thread of my favorite takeaways:
Ogilvy viewed advertising not as an art form, but as a medium of information designed to SELL.

“When Aeschines spoke they said, ‘How well he speaks.’

But when Demosthenes spoke, they said “Let us march against Philip.’”

We advertise to elicit action, not the praise of peers.
“Everyone involved has a vested interest in prolonging the myth that all advertising increases sales to some degree. It doesn’t.”

My takeaway: don’t ask a CMO about how effective their ads are. Ask the COO, the CFO, and the CEO. If the marketing is pumping, they’ll know for sure
Read 26 tweets
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Ryan Caldbeck
@ryan_caldbeck
1/ Common knowledge that big-CPG is being displaced by small brands in almost every category. I’ve said some of the things I would do differently if I were in charge. Let’s go deeper. Now I’ll lay out why they can’t just innovate themselves.
2/ Reason 1: Scale has resulted in reverse network effects for brands today. For most of the 1900s, as a CPG brand got larger, it got stronger (typically network effects). Today the network effects begin to reverse after ubiquity - the bigger it is, the less trust there is.
3/ Reason 2: Massive scale is counterproductive to today’s trends. To achieve scale, big companies created products that the average consumer will buy, that the average retailer will carry, and that their average manufacturing facility can mass produce.
Read 29 tweets
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Ugo Obi-Chukwu
@ugodre
Hello Everyone, welcome to @Nairametrics Corporate News Roundup for the week ended April 21, 2018. This thread is brought to you by @BluechipTechNG

Thread starts here...
Remember to retweet the first tweet of this thread so others on your timeline won't miss out. The first tweet of this thread will be pinned to my profile for the rest of the week. You can also check my likes for past threads.
It's another loaded thread as Corporate Nigeria was busy last week. We have news from the telecoms, sector, banking, consumer goods etc.

A Newsletter version of this thread has also been sent to our subscribers.

We begin;
Read 92 tweets
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Ugo Obi-Chukwu
@ugodre
Hello everyone, welcome to this week's episode of Corporate News by @Nairametrics. This thread is proudly supported by @BluechipTechNG

Thread Starts here
As usual, kindly indulge us by retweeting the first tweet on this thread. We also welcome comments, questions and discourse as the tweets roll in.

You can also slide into our DM if you have further insights on some of the stories we will share today.
1. Another week, another South African Company in the news; this time, Nigeria and Africa's largest cable TV operator got a Federal High Court judgement against it which could cost the company N5.9 billion in damages.
Read 78 tweets

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