Red Bull, Physicists, Belt and Road Initiative, Growth Marketing

Red Bull, Physicists, Belt and Road Initiative, Growth Marketing

Brigadoon Weekly
April 21, 2019
Curation and commentary from Marc A. Ross

Reporting from Alexandria, Virginia 

Brigadoon Weekly  = Emerging issues shaping commerce + culture

ROSS RANT

Red Bull wasn't created by economists

"Marketing is the science of knowing what economists are wrong about."  -- Rory Sutherland

As a means to beat Coca-Cola, no economist would approve of an expensive beverage, served in a small can, and which tastes awful.

An economist using logic, facts, and numbers would never greenlight Red Bull.

But Red Bull has changed the global beverage market forever and altered the way Coca-Cola operates permanently.

Austria beating Atlanta is the playbook of how products and ideas will win going forward.

Energy drinks have transitioned from being a niche product to one of the fastest growing segments in the global drinks market. The global energy drinks market now stands at $55 billion and is projected to grow at a compound annual growth rate of 3.7% from 2018 through 2023.

How troubling is this for Coke? 

Consider the first energy drink under the Coca-Cola brand will launch in Europe this month.

Coca-Cola Energy, which will debut in Spain and Hungary, features caffeine from naturally-derived sources, guarana extracts, B vitamins, and no taurine – sounds like Red Bull but with a Coca-Cola taste. 

And not surprisingly, Coca-Cola Energy will be offered in 250-ml cans, just like Red Bull.

The economists of Atlanta are following the entrepreneurship of Austria.

Economists assume most decision making is driven by logic. 

This is flawed.

Using logic to make a decision is called System 2 thinking. 

But most decision making is driven by emotion. 

This is called System 1 thinking.

Facts and numbers don’t drive our decision making. 

Facts take a back seat to emotional responses. 

Numbers with no context and color are no match for actual experiences. 

Great marketers understand the power of ubiquitous and unconscious System 1 decision making to sell products or shape ideas.

Sutherland believes, "Once you reach a basic level of wealth in society, most problems are actually problems of perception.”

The role of a business is to create value by solving problems for customers.

As I move through life, it is clear you don’t always need to solve difficult technical challenges with massive and costly technical solutions.

You need to communicate with a customer to see things from a different, more indirect point of view.

Acknowledging the importance of perception well better position your brand and improve communications.

When it comes to entrepreneurship and thought leadership, one is bigger than two.

-Marc

Marc A. Ross is the founder of Brigadoon and specializes in thought leader strategy for executives and entrepreneurs working at the intersection of globalization, disruption, and politics.

FIVE TO READ

One: A quantum experiment suggests there’s no such thing as objective reality: Physicists have long suspected that quantum mechanics allows two observers to experience different, conflicting realities. Now they’ve performed the first experiment that proves it.

Two: Misdiagnosing the Chinese infrastructure push: China’s Belt and Road Initiative does not pose a military or strategic threat to the West so much as an economic one.

Three: How humans and artificial intelligence can work together to create a brighter future

Four: The casualization of American apparel: Will the athleisure trend stay or go?

Five: How to identify and tell your most powerful stories: When I ask executives what their favorite speech is, Steve Jobs’s Stanford commencement address is always at the top of the list. Many think of Jobs’s talk as their favorite because it is incredibly moving — thanks to the stories it contains. Execs love to hear talks like this, but few are comfortable delivering them. Why? Because great stories expose our flaws and our struggles. This is what makes them inspiring, and not sharing them is such a missed opportunity to connect with your audience.

BRIGADOON RADIO

Brigadoon Radio: Episode 9: Accessing Fresh Perspectives: Recorded Pinehaven House at Sundance Mountain Resort, Dr. Mark Stellingworth speaks with Leo D'Cruz during Brigadoon Sundance 2019.

Leo is a 2x Brigadoon Sundance participant and is a communications strategist serving as Chief Communications Officer @ ReverbArt + Design based in Cincinnati, Ohio.

Brigadoon Radio: Episode 10: What Makes a Good Founder: Recorded at the lounge inside the Robert Redford Center at Sundance Mountain Resort, Dr. Mark Stellingworth speaks with Michael Rivera during Brigadoon Sundance 2019.

Michael is a first time Brigadoon Sundance participant and for 2019 joined the main stage to lead a discussion on "Life Is a Startup: What Founders Can Teach Us About Making Choices + Managing Change."

Michael is the Executive Director of Founder Central @ USC Marshall School of Business. Michael joined Founder Central after eleven years as the Founder & Managing Director of an early-stage investment firm based in Santa Monica. 

PODCAST

This Week in Startups + Rachel Hepworth: She's the head of growth marketing at Slack. On the podcast, she breaks down how startups should “Go to Market and Grow” @ Founder University. You can listen - here.


#BAET = Be An Entrepreneur Today

-Marc 

Ross Rant: Red Bull wasn't created by economists

"Marketing is the science of knowing what economists are wrong about." -- Rory Sutherland

As a means to beat Coca-Cola, no economist would approve of an expensive beverage, served in a small can, and tastes awful.

An economist using logic, facts, and numbers would never greenlight Red Bull.

But Red Bull has changed the global beverage market forever and altered the way Coca-Cola operates permanently.

Austria beating Atlanta is the playbook of how products and ideas will win going forward.

Energy drinks have transitioned from being a niche product to one of the fastest growing segments in the global drinks market. The global energy drinks market now stands at $55 billion and is projected to grow at a compound annual growth rate of 3.7% from 2018 through 2023.

How troubling is this for Coke?

Consider the first energy drink under the Coca-Cola brand will launch in Europe this month.

Coca-Cola Energy, which will debut in Spain and Hungary, features caffeine from naturally-derived sources, guarana extracts, B vitamins, and no taurine – sounds like Red Bull but with a Coca-Cola taste.

And not surprisingly, Coca-Cola Energy will be offered in 250-ml cans, just like Red Bull.

The economists of Atlanta are following the entrepreneurship of Austria.

Economists assume most decision making is driven by logic.

This is flawed.

Using logic to make a decision is called System 2 thinking.

But most decision making is driven by emotion.

This is called System 1 thinking.

Facts and numbers don’t drive our decision making.

Facts take a back seat to emotional responses.

Numbers with no context and color are no match for actual experiences.

Great marketers understand the power of ubiquitous and unconscious System 1 decision making to sell products or shape ideas.

Sutherland believes, "Once you reach a basic level of wealth in society, most problems are actually problems of perception.”

The role of a business is to create value by solving problems for customers.

As I move through life, it is clear you don’t always need to solve difficult technical challenges with massive and costly technical solutions.

You need to communicate with a customer to see things from a different, more indirect point of view.

Acknowledging the importance of perception well better position your brand and improve communications.

When it comes to entrepreneurship and thought leadership, one is bigger than two.

-Marc

Marc A. Ross is the founder of Brigadoon and specializes in thought leader strategy for executives and entrepreneurs working at the intersection of globalization, disruption, and politics.

Human contact is now a luxury good

Did you see this?

"Screens used to be for the elite. Now avoiding them is a status symbol. Anticipated spending on experiences such as leisure travel and dining is outpacing spending on goods... a direct response to the proliferation of screens." -- Nellie Bowles - technology reporter for The New York Times.

Brigadoon saw screen-free engagement as a luxury since 2013.

At the start, Brigadoon has been powerpoint free and focused on conversation driven events allowing for maximum networking and learning.

Here are three ways to treat yourself to human contact luxury:

Brigadoon Events

Brigadoon Clubs

Brigadoon Professional

-Marc

Ross Rant: Business Schools = Less Math and Management. More Policy and Politics.

With an endless news cycle, a continuous flow of global trade, protectionist laws, and committed geopolitical powers, global politics and global business is being shaped from many directions and far beyond a nation’s borders and a company’s boardroom. Decisions made in Beijing now affect events in Brussels which in turn compels policy in Ottawa and then again impacting Santiago.

The ability to manage this dynamic, globalized political environment, particularly at the intersection of public policy global business, coupled with an underlying cultural phenomenon rejecting the establishment, this new environment is more challenging for business leaders and global companies.

The pace involved in addressing global business challenges has increased as well as, with the scale of the problems expanding to an ever-growing globally diverse network of stakeholders. Disenfranchised and left-behind voters around the world have spoken and demanded a greater share of the profits. The traditional capitalist ideal of being responsible solely to shareholders in under threat and business going forward will involve numerous stakeholders, including governments, media, bloggers, consumers, non-governmental organizations, investors, employees, and citizens.

For future business leaders, simply put, there are a lot more people that will hold you accountable and want a say in the process. Having a genius marketing plan and solid accounting skills won’t be enough.

The time is now for MBA programs to recognize this challenging global public affairs environment. It is critical that classes utilize case studies that explore the nexus between multinational corporations, non-governmental organizations, government officials, institutions, investors, and recent elections.

World-class business leaders will need to excel with a foundation of fundamental business management skills, but they must be equally deft at grasping the intersection of history, politics, geography, culture, and economics to manage this new global business paradigm.

MBA programs must prepare future business leaders with the hard and soft skills to understand and engage global problems, comprehend economic development challenges and opportunities, and connect how these issues spread in a globally interconnected marketplace all influencing and disrupting global politics and global business like never before.

-Marc

Marc A. Ross is the founder of Brigadoon and specializes in thought leader strategy for executives and entrepreneurs working at the intersection of globalization, disruption, and politics.