by: Geoff Ficke

One of life’s great pleasures is travel. The opportunity to view distant lands, experience new food and drink, sample exotic cultures and meet local citizens is always rewarding. One of my most prized experiences when I visit any new land is to sample local produce, manufactured goods and learn about local industry and commerce.

When I visit Geneva, Switzerland I relish the opportunity to shop, research and be amazed by the fabulously artesian craft of exclusive watch making found in the city’s endless jewelry ateliers. The city of Geneva is the center of Swiss timepiece manufacturing and the array of brands, models and stupendously elegant, technologically advanced watches on display is the ultimate experience in viewing old world craftsmanship in contemporary times. One of my reactions on seeing the feast of horlogerie on display in Geneva is always this: who buys all of these watch styles, from scores of limited production houses, at such stunning prices?

Obviously, the international demand for exclusive, custom designed watches is huge and growing. Rolex, Piaget, Chopard, Audemars Piquet and dozens of other centuries old exclusive watch manufacturers are headquartered in Geneva. The oldest, and in many ways the most exclusive, is Vacheron Constantin. This venerable house offers an excellent example of how an ancient brand stays ahead of the competition, keeps reinventing itself and prospering through constant innovation.

Vacheron Constantin was founded in 1755 by Jean-Jacques Vacheron. Mr. Vacheron was an excellent jeweler and watchmaker, as well as a progressive businessman. In 1770 his new Company created the first “complication’ and several years later Mr. Vacheron invented and installed in his timepieces the novel “engine turned dials”. These early advances in technology helped establish the reputation for quality and performance that the business enjoys to this day.

After narrowly surviving the horrors of the French Revolution, Vacheron Constantin became one of the first watchmakers to export. First to France and Italy, and then, most importantly North America, the Company enjoyed early 19th century success among the newly rich industrialists and aristocrats who sought craftsmanship, exclusivity and elegance in timepieces. The Company’s branding motto, “Do better if possible, and it is always possible” was first used in 1819 and is still in use today.

Vacheron Constantin was the first manufacturer to perfect production of standardized movements into “Calibers”. The Art Society of Geneva awarded the Company the Gold Medal in 1844 for inventing the breakthrough “pantographic device”, an innovation that further separated Vacheron Constantin from competitor’s production technology. In 1885 the Company introduced pieces made with novel non-magnetic technology, including movement components made from palladium and gold.

In 1906 the first Company owned store was opened on the Quai de I’lle and the boutique is still operating in the same location to this day. During World War I, the Great Depression and World War II the Company struggled, but managed to remain solvent by catering to the fashion conscious with stunning new design and styling cues. After the conclusion of fighting in Europe in 1945, the Company immediately began marketing new strategies and products to regain hegemony.

The “Patrimony” model was then introduced. This is one of the most famous, exclusive and collectible watches in the world. The “Patrimony” was the world’s thinnest watch, featuring a thickness of only 5.25 mm.

The “Kallista” model was introduced in the 1970’s. The “Kallista” is considered the most expensive and exclusive watch in the world. Initially sold for $5 million, it is now valued at $11 million. “Kallista” is enriched with 118 emerald cut diamonds, requires 6000 hours of master watch maker labor and 20 months of detailed embellishment by the finest jewelers in Switzerland.

Today, after more than 2 ½ centuries of producing the most desirable watches and timepieces in the world, Vacheron Constantin continues to enjoy great success and demand for product far exceeds supply. The Company, now a subsidiary of luxury goods powerhouse Richemont Group, makes only 20,000 pieces per year. The exclusive pieces are sold in 16 Company owned stores and less that 500 carefully chosen luxury retailers in 80 countries. Vacheron Constantin watches have been worn by Napoleon Bonaparte, Pope Pius VI, Nicholas Sarkoszy, Harry Truman, Clark Gable and the Duke of Windsor just to name a few of the famous people known to sport this classic brand.

Any research conducted on the history of watch makers will uncover a plethora of brands that did not survive competition, changing tastes or technological advances. Vacheron Constantin has not only survived, but flourished and become one of the handful of consumer products (think Ferrari, Dom Perignon, Brioni,
Faberge, Chanel) that exist as category icons. When fashionable people seek the finest quality and craftsmanship in timepieces they immediately think Vacheron Constantin.

by: Geoff Ficke
Whatever happened to the Stanley Steamer automobile? From the production of Stanley’s first model in 1897, the Company outsold every other firm that produced internal combustion powered vehicles until the brands demise in 1924. The Steamers were safe, durable and easily maintained. So what killed the Stanley Steamer?

The Stanley Automobile Company was founded by twin brothers Francis and Freelan Stanley. The cars gained fame when a model set the world land speed record in 1906, covering one mile in 28.2 seconds. The early Steamers enjoyed a solid performance advantage over the primitive gasoline powered cars of the era.

The Stanley brothers enjoyed a sterling reputation at that time for producing cutting edge product, both from a design and engineering standpoint. Then a grievous error was made: they fell in love with their product. Steam was soon to become obsolete as a source of power. Improved internal combustion technology made the gasoline-powered car much cheaper than the Stanley Steamer. By the end of its useful life in 1924 the Stanley Steamer sold for $3950, while the Ford Model T retailed for $500.

The invention of the electric starter was another heavy blow that the Stanley Steamer could not overcome. Early internal combustion engine powered cars were started with a hand crank. The crank was notorious for causing injury and made starting a car almost impossible for women.

As the sales model for the automobile adjusted to the realities of mass production the Stanley’ brothers remained adherents of the costly steam generated power train. In desperation, seeking to halt the sales slide that their cars endured, they produced an advertising campaign that sought to instill fear and doubt about the safety of the internal combustion engine.

This marketing campaign was one of the earliest examples of negative advertising and the results were abysmal. “Power-Correctly Controlled, Correctly Generated, Correctly Applied to the rear axle” surely goes down in history as one of the most cumbersome, dull, forgettable branding statements or advertising campaign slogans of all time. The purpose of these ads was not to sell the advantages of the Stanley Steamer, but to instill doubt in consumers minds about the safety of the internal combustion engine.

Because Stanley did not continually keep ahead of rapidly advancing automotive technology, the Company’s Steamer cars were obsolete and the firm closed its doors in 1924. This is a classic example of how a market leader can rapidly lose the advantages built up so carefully over years and quickly be pushed into the dust bin of history.

Sad stories about products and Companies like the Stanley Automobile Company are commonplace. Virtually every industry and product category experiences such examples of churn, decline, destruction and new startups arising to fill space deserted by fallen stars. Marketers must always assume that competition is working relentlessly to overcome any advantage that they might currently enjoy and are seeking to replace their products with newer, fresher designs and technology. To not be fearful of the unknown is much more than unwise, it is stupid!

by: Geoff Ficke
Any traveler to London is naturally overwhelmed with the many sites, sounds, history and majesty of this glorious ancient capital, especially first time visitors. Buckingham Palace, Westminster Abbey, the Thames, Big Ben the Horse Guards, 10 Downing Street, St. James Park, St. Paul’s Cathedral, the Old Bailey and Hyde Park Gate are only a few of the famous must see locations tourists consume in the vast spread of this vibrant metropolis. The greatness of the British Empire is vividly on display in the streets, buildings, history and traditions that travelers can share with the British citizenry.

As a marketing consultant by trade I am particularly absorbed by the many ancient commercial establishments that are based in London. Harvey Nichols, Harrod’s, Fleet Street, Saville Row, Claridges, Hamleys, and hundreds of independent specialty shops that trace their provenance back centuries are more bountiful in London than in any other city in the world. Adolph Hitler did not refer to the British as “a nation of shopkeepers” for no reason.

One of the must visit shops I always include in my itinerary while in London is Twining’s. This venerable purveyor of tea is quintessentially British. The original tea shop is still the Companies base and the address at 216 Strand near Westminster has been in constant use for over three centuries.

The founder of Twinings, Thomas Twining was born in 1675. He moved to London as a young man and worked as his father did as a fuller (wool processor). At that time, having a trade was a necessary precursor to becoming a Freeman of the City of London. Unless designated a Freeman it was impossible to start a business in the city. Twining became a Freeman in 1701 and began to work for the East India Company, then the preeminent merchant trading company in the world.

The East India Company, piggybacking the dominance of the British navy, became the largest importer and exporter of luxury goods, spices and foods from the many corners of the globe where the empire had planted the British flag. Twining worked in teas and became absorbed in all things having to do with tea. His mentor, Thomas D’Aeth, would prove particularly valuable for the young entrepreneur.

By 1706 he was ready to open his own business. The Strand Street location he chose for his shop was fortuitous, as this area became the neighborhood of choice for the London upper crust after the horrific Great Fire of London. Politicians, merchants, military leaders and royalty began to come to enjoy the service, superior selection and top quality tea products available at Twinings.

Then as now, competition was tough. Coffee and teas houses were commonplace in 18th century Britain, and tea was not yet the ascendant national drink. Thomas Twining, however, under the important tutelage of Thomas D’Aeth had a powerful advantage over his competitors. He was not just a buyer, or server of tea, but having worked for the East India Company as an importer, with important connections on distant tea plantations, he knew more about varieties and newly developed types of teas than almost any other Englishman of his day.

Twinings became famous very quickly for the vast selection and high quality of the teas sold and served in the shop. The shops reputation for handling only the finest product, and its introduction of Earl Grey tea to the public cemented the Twining legacy. Thomas died in 1741, but miraculously the family continued to operate the shop and expand the business well into the 20th century. The Company holds a number of Royal Warrants, sells hundreds of types of tea and Twinings tea assortments are sold in over one hundred countries.

If you enjoy the great good luck to visit Twinings at 216 Strand Street in London today please closely note the door before entering the tea room. It is one of the most distinctive branding vehicles in the world, and the oldest in continuous use. The famous doorway was unveiled to the public in 1787. Two distinctively carved Chinese figures and a lion are at the crown of the sill. The Twinings logo, lacking a grammatically correct apostrophe, is written in the firm’s unique font, exactly as it appears to this day on every Twining product.

Thomas Twining created a brand that has become synonymous with highest quality and British excellence. After 300 years of continuous service to the tea consuming public, his star still shines ever bright at 216 Strand Street, London.

by: Geoff Ficke
We learn at an early age that Ben Franklin was America’s first great inventor; Henry Ford invented mass production, Thomas Edison the light bulb and the phonograph and the Wright Brothers invented the first airplane. These men, and a few others, are well remembered and honored for their spectacular achievements. Their legacies are tribute to their genius and the possibilities available to any American willing to exploit our capitalist system that honors and rewards innovation.

One of the 20th century’s greatest inventors, businessman and philanthropists was a Cincinnati born and reared serial entrepreneur named Powell Crosley. Mr. Crosley dreamt of building the world’s first great compact car company, but he failed in this endeavor. However, he succeeded spectacularly at every other business challenge he undertook.

After dropping out of college to pursue his obsession with automobiles, Crosley started the Marathon Six Automobile Manufacturing Company in 1907. He quickly failed. He immediately made several more attempts to produce a commercially viable automobile, including a cycle car. These efforts were for naught as well. In 1916 he enjoyed his first success by launching the American Automobile Accessory Company. His products were soon carried by Sears and other major retailers. Working closely with his brother Lewis Crosley, Powell began to branch out and started to make popular phonograph cabinets that sold very well.

In 1920, the consumer products that Crosley’s companies sold began to be supported by a “money back guarantee”. This was a breakthrough and was consistent with Mr. Crosley’s passion for providing the very best product at the best possible price. Customers immediately gravitated to the Crosley items sporting the “money back guarantee”.

In the 1920’s radio was the new rage. Mr. Crosley’s young son had requested that he be given a radio. Crosley visited the Shillito Department Store in Cincinnati to satisfy his sons wish. He was shocked when he learned that the radios of that day cost over $100. This was the impetus for Crosley to mass produce radios. He hired two co-op students from the University of Cincinnati and they designed the Harko model radio. This product was introduced to the public and became an immediate success. By 1924 the Crosley Radio Corporation was the largest radio manufacturer in the world.

In 1925 the Crosley Radio Corporation introduced the Crosley “Pup” a small, one tube radio set that retailed for $9.75. The branding icon that Crosley used to identify the “pup” was a cute rendering of a dog named Bonzo. Bonzo was redrawn wearing a radio headset and that image became one of the most famous advertising images of that time. Today, a papier mache’ replica of Bonzo is on display at the Smithsonian Institute and original examples of the “Pup” are highly prized by collectors.

Now that Crosley was immersed in radio, he quickly came to realize that the new medium would require greatly expanded programming options for listeners. Once again, the deeply curious Powell Crosley undertook the task of creating a broadcasting platform source for producing entertainment. In 1922 WLW went on air as the flagship radio station for Crosley Broadcasting Corporation (CBC). The station’s signal was a whopping 50 watts.

Over the next six years CBC increased WLW’s signal to 50,000 watts. Mr. Crosley correctly surmised that the more powerful the station’s signal, a larger audience could be reached and more radio sets would be sold. Gradually the station built its signal strength to over 500,000 watts, however, the government stepped in and made the CBC scale back to a maximum 50,000 watt signal.

The massive reach of WLW made it truly the “nation’s station”. As the station prospered it became one of the largest producers of original programming in the world. Doris Day, Andy Williams, Red Skelton, Fats Waller, the McGuire Sisters, Rosemary Clooney and the Mills Brothers were only a few of the talents that were launched on WLW. In association with Procter and Gamble, Powell Crosley developed the first radio soap operas and they became hugely popular.

In the 1930’s Powell Crosley expanded into electrical appliances. He always re-invested his profits in his own businesses, and as a result was not heavily invested in the stock market when it crashed in 1929. This enabled his businesses to come through the Great Depression in better shape than other industrialists.

Crosleys first appliance innovation was the Icyball, a kerosene powered, cooling chest. He sold hundreds of thousands of units. Next Crosley patented the original idea of putting shelves in refrigerators. His Shelvador refrigerators became one of the best selling models in the country.

In 1934 Crosley bought the Cincinnati Red Legs major league baseball team. He pioneered the sale of radio sponsorships for team broadcasts and prevailed on the commissioner to allow night baseball games for the first time. Night games greatly improved team’s finances by increasing attendance and the radio audience for game broadcasts.

By the late 1930’s Powell Crosley had migrated back to his first love; manufacturing automobiles. In 1939 he launched his new small car to the public by selling the vehicles through independent appliance dealers and department stores. The diminutive Crosley car sold for about $325, sported a chubby body, was powered by a two cylinder engine and weighed all of 900 pounds. The onset of World War II, unfortunately put a stop to all auto production.

During the war years most industrial production in the United States was devoted to war materials. Crosley was again in the vanguard. His Companies produced a wide range of products essential to fighting the conflict. Among the most important was the “proximity fuse” which Powell Crosley continually improved. After the atomic bomb and radar, the proximity fuse was considered the third most important produced during the war years. General George Patton said, ”the funny fuse won the Battle of the Bulge for us”.

After the successful conclusion of the war, Powell Crosley immediately went back into automobile manufacturing. He reintroduced his small Crosley car which he had improved significantly by the introduction the disc brake which he invented. Over 75,000 Crosley’s were sold before production was halted in 1952.

Powell Crosley provided jobs, creative opportunity and inventive products for millions of people. His innovations saved lives, created new industries, inexpensively entertained the public and improved daily life. It is unfortunate that he is largely forgotten and unstudied today. His is a tale of American genius and self-made success. Entrepreneurs should acquaint themselves with the breadth and depth of Mr. Crosley’s achievements.

by: Geoff Ficke
I have often written and referred to the difference between convergent and divergent products. Convergent products are simple design improvements on existing models already being marketed. The push button radio, the car radio or a clock radio are examples of convergent products. These examples simply add features to the divergent “alpha” invention of the radio. The invention of the radio was truly a monumental breakthrough divergent product. It was revolutionary and totally new.

Most new product introductions are simple line extensions, or convergent products. Pringles Potato snacks were a divergent product when introduced. Pringles were a significant departure to any potato snack then on store shelves. The dozen or so newest flavors of Pringles are convergent. They expand the brand, increase retail shelf space and add sales, but they are not revolutionary.

The difficulty for inventors and entrepreneurs is to create truly distinct divergent products. This is the “Holy Grail” for new product developers, and yet, it is exceedingly rare that such a product appears. It is a desirable goal. Nevertheless, it is not essential for a product designer to achieve divergence to enjoy acclaim and enrichment.

There is nothing much new about the ancient bicycle. They have two wheels, a seat, brakes, pedals and maybe some gears. There are different styles and brands of bikes, prices run the gamut, but they essentially do the same thing: transport a human being.

Take a look at the Polygon Bicycle created by Reindy Allendra. It is obviously a bicycle, with a significant difference. The profile of the bike looks like a rocket ship and– I want one! If nothing else, I want one for a piece of sculpture. Mr. Allendra’s design is so stunning that it might be dangerous to ride as drivers and pedestrians gawk at the stunning brilliance of the design and become distracted. This product is convergent, but is so unique that it will almost certainly become a sought after status symbol.

Chairs fill up homes and serve the basic purpose of holding our relaxing bodies. There is nothing really not much new about the uses and placement of the basic chair. We eat while sitting on chairs. We read while sitting on chairs and watch television while relaxing on chairs. Some chairs are upholstered, some are all wood construction, and some recline.

The Rabbit Chair, designed by Stanislav Katz is just another chair. But what a chair! The color, elegant simplicity of design and amazing symmetry of line make the Rabbit Chair a work of art and artisan excellence. This is another example of convergence on steroids. The Rabbit Chair works on so many functional and artistic levels that it will be thought of as much more than a convenience for supporting the human body.

The smoking pipe has been with us for centuries. I can clearly remember my dad’s pipe rack that held his assortment of wooden pipes and tobacco’s. I occasionally see pipes on display in tobacconist shops. I do not notice that much has changed in the styling, construction or function of the pipe.

Recently I was introduced to the Ecolos Pipe created by contemporary designer Harold Bogazpinar. Stunning! There is no other word for the sleek beauty of such a mundane product as a pipe that is crafted as elegantly as the Ecolos Pipe. This is another example of the work of creative genius.

A pipe, a chair and a bicycle; common products all! However, when inspired designers and artists apply their amazing creative talents to crafting ingenious styling cues these common household products become art. They are convergent products, but they will enrich the lives of consumers lucky enough to own this artistry. Always remember the importance of design when creating new consumer products.

by: Geoff Ficke
By the end of World War II fashionable women all over the globe were hungering for a touch of romance, and whimsy in couture. The Great Depression and the war years had seriously crimped the ability of clothing designers to produce clothes that were much more than functional. Look at any Hollywood movie of the period and you will notice that the suits and dresses that actresses wore were almost masculine in cut and style. After World War II, and the deprivations that populations had been forced to endure, women wanted a more feminine, flattering style of dressing. This gave rise to the great age of French designers and the ascent of haute couture houses.

Pre-eminent among these fashion giants was the classic stylist Christian Dior. Dior instinctively knew what women wanted, and more importantly, how to elegantly flatter the female form. His post-war collections quickly became the rage among fashion conscious women all over the world. The House of Dior created a classic feminine look that favored cinched waists, full skirts, tailored jackets and vibrant color and rich fabrics. Dior set off these ensembles with coordinated bags, accessories and shoes.

The House of Dior enjoyed a classic collaboration with a brilliant Parisian shoe designer to revolutionize the world of high fashion footwear. Called the “Fragonard of shoe design”, Roger Vivier crafted the most stunning designer footwear of all time. He is most famous for creating the stiletto heel.

Dior and Vivier were looking for a shoe that gave a seamless line to the elaborate suits and dresses that the high fashion world had come to appreciate so much. The heels of that period were clunky, a bit heavy looking and did not flatter the female leg. The stiletto heels that Roger Vivier invented provided exactly the visual effect that Christian Dior was seeking. The ultra-thin, steel spiked-heels, and the narrower shoe body flattered the foot, making it appear more delicate and giving the leg the appearance of being longer, more toned.

Vivier also became famous for his ornamental styling cues. He dressed his stiletto heels with vibrant colored fabrics, pearls, beads, jewels, feathers and other elements. The shoes were created to provide accent to the House of Dior haute couture offerings. Vivier stiletto shoes and Dior dress ensembles became synonymous with haute couture in the late 1940’s and 1950’s.

Roger Vivier died in 1998. He created a style of dressing the female foot that revolutionized the shoe and high fashion business. His designs are considered to be works of art to this day. Vivier’s memory is still honored as examples of his stiletto shoes are on display in the Museum of Modern Art in New York City, Victoria & Albert Museum in London and the Louvre in Paris.

Roger Vivier did not invent high heeled shoes. His genius was in taking a popular, existing footwear profile and making it sleeker, more desirable, fashionable and sexy. The stiletto high heel has waned and gained in popularity in the decades since they first appeared on the feet of Christian Dior’s runway models after World War II. However, they have never gone away as so many fashion concepts tend to do.

The stiletto high heel is a classic example of a convergent product that greatly enriched the creator. Designers, inventors and entrepreneurs can learn a great deal from such simple convergent products as the invention of the stiletto heel. Roger Vivier identified a styling niche in the high fashion footwear world that was not being addressed by other designers. He filled that niche and put his unique brand on the category niche, an elegantly simple solution that we can all study and replicate.

by: Geoff Ficke
As in so many consumer product categories, it would seem that there is little room left for innovation in mature businesses like liquor. Most of the world’s best selling alcohol brands have pedigrees that extend back for generations, if not centuries. Johnnie Walker scotch, Jack Daniels whiskey, Dom Perignon champagne, Heinneken beer, Pusser’s rum and Stolichnaya vodka are just a few examples of seasoned products that are recognized and consumed around the world.

When an industry seems to be settled and stagnant, however, is actually when opportunity can be greatest for entrepreneur’s seeking to roil the waters of staid competitors. In category after category, from cosmetics, to bottled drinks, to retail, to automobiles, to ready to wear, and many more, new brands pop up, penetrate the market and seize sales and market share from old line companies that become bloated and lethargic.

A recent example of this phenomenon occurred in the vodka classification of the liquor industry. The largest selling alcoholic spirit in the world for many years has been vodka. The category is highly fragmented, consisting of premium Russian brands and much cheaper eastern European and American produced varieties. This striated marketplace created an opportunity for an aggressive entrepreneur seeking to capitalize on the industry’s corpulence.

Sidney Frank was a highly successful serial entrepreneur. In studying the premium spirits business he thought he identified a niche that was not addressed by any of the endless labels of vodka he saw on store shelves. Mr. Frank decided to develop and target a niche brand to address this perceived unaddressed soft spot in the market.

He quickly assembled a team of distilling specialists and took the crew to Cognac, France. Mr. Frank correctly concluded that American consumers associated French manufactured products with quality, luxury, exclusivity and high end craftsmanship. His simple, elegant idea was to craft a premium, French vodka that would be distilled and marketed to appeal to American tastes.

Sidney Frank’s vodka uses French winter wheat, is distilled through a column still with alpine spring water and filters the bulk through the limestone plateau of the Massif Central. Each of these artesian elements adds to the unique taste and brand mystery that has become entwined with the product that was introduced to the American market in 1997. In addition to the production features that make this vodka unique, Mr. Frank supported the launch with a most contemporary guerrilla marketing strategy.

For young hip Americans, the club scene, hip hop personalities and sports and entertainment are the beacons of contemporary fashion trend making. Sidney Frank made sure that his new vodka, priced at a super-premium level compared to his competition, was featured in the exclusive bars, clubs and restaurants that are enjoyed by these trend setters. Promotional parties and tastings were held across the country and invitations became highly prized. Soon rappers, actors, athletes and media personalities were seen drinking the product and mentioning the brand in numerous songs, at award ceremonies and in interviews.

The platinum vodka that Sidney Frank created and launched so successfully was Grey Goose. Only seven years after the brands appearance in the American market, Grey Goose was sold to Bacardi for $2 billion. This was the largest valuation ever placed on a single liquor product.

The hyper-success of Grey Goose has been replicated in various products and industries throughout American history. The particulars of the march to market of successful brands are remarkably similar, even if the end products are totally dissimilar. Invariably the process begins with an aggressive entrepreneur identifying an un-served or underserved niche in a mature market and filling the space with a superior new offering.

The success of Grey Goose has lead to a raft of new, super-premium alcoholic brand launches. Limited edition drinks and celebrity sponsored lines have become ubiquitous. However, Sidney Frank, now deceased, created the super-premium category and reaped the largest fortune because of his keen eye for consumer taste trends and his ability to respond with a superlative product and a unique guerilla marketing strategy.

by: Geoff Ficke
Anyone that flies regularly knows the blank feeling that sweeps over us as we hear that our flight has been delayed, or worse, canceled. Minds race while reviewing how to kill time, are there alternative travel options, can I reset the meeting I had scheduled on the other end of the flight? As modern air travel has disintegrated into a cluster debacle of ever growing proportions, the many hours we waste on travel hassles leads to vexing choices and forced idleness. Airports are not fun places.

While most travelers are forced to grin and bear the inconvenience caused by flight delays, occasionally the forced pause in travel leads to the germination of a most productive idea. This happened, very fortuitously to two ladies, while enduring a weather delay in Atlanta in 1982. These temporarily stranded road warriors sat in their terminal and did some serious people watching to kill their wait time.

Patricia Miller and Barbara Bradley Baekgaard were from Ft. Wayne, Indiana. While awaiting their continuing flight to be rescheduled they began to note certain trends in the travelling public as it flowed past their perch. The more they observed and compared verbal notes about travelers and the accessories they carried the more they noticed, and commented on the fact that there was “a definite lack of feminine styled luggage”. This would prove the inspiration for a business that would enjoy huge success and change the way women bought travel accessories, bags and luggage.

The business that the ladies started was Vera Bradley Designs. The Company was named for Ms. Baekgaard’s mother. From their first collection until this very day the Vera Bradley collection has become famous for bright colors, quilted cotton bags and trim, and patterned styling. The product line has grown from travel bags into a full range of gift, stationary, handbags and accessory products.

Vera Bradley Designs enjoys annual sales turnover of over $100 million. The Ft. Wayne based company employs hundreds of people and thousands of contract employees. The firm’s colorful goods are sold in thousands of better gift shops, department stores and in Company owned stores. Women everywhere know, and appreciate, the distinctive feminine cues incorporated in all Vera Bradley products.
The Vera Bradley story is distinctly American. Two ladies, stranded in an airport, utilized their powers of observation to identify an opportunity. Unlike most people, they not only identified an unfilled niche in the marketplace, but they had the drive and talent to fill that niche with product that the consumer market craves to this day.

Patricia Miller and Barbara Bradley Baekgaard have realized huge financial success and personal fulfillment because of the business they built. However, they are most proud of the opportunities their Company’s achievements have been able to convey to their hometown of Ft. Wayne, Indiana. In addition, Vera Bradley special designs have benefitted Breast Cancer Research for many years.

These great entrepreneurial ladies are a classic example of the crucial role that entrepreneur’s play in our society. Selling and marketing gift products and hand bags might seem mundane. But this simple assortment of products has employed thousands of people over the years, paid untold taxes, supported vendors and suppliers and made an army of consumers happy. Adam Smith’s “Invisible Hand of Capitalism” is clearly on display at Vera Bradley Designs because of the keen power of observation that Ms. Miller and Ms. Baekgaard leveraged into their own American success story.

by: Geoff Ficke
My first professional job after finishing college and Marine Corps service was with a small cosmetic company in the early 1970’s. The beauty industry at that time was in the golden age of its creativity, growth and competitive balance. There were numerous firms able to exist and flourish by specializing in servicing a highly diversified retail universe with product lines that targeted narrow, specific demographic categories. Alexandra de Markoff, Imperial Formula, Andrea, Frances Denney, Germaine Monteil and many others were prominent brands of that time that no longer exist. What happened to them and what lesson can modern marketers of consumer products learn from their demise?

I was fortunate as a young salesman just starting my career to have seasoned, grizzled mentors to guide me along the way. I learned by watching and listening to them as they presented product, handled accounts and after work as they told old beauty industry war stories. These lessons were invaluable then and still serve me well today.

A great teacher, and particularly important influence on me, was an older executive named Ray Stotter. Ray had been a drug chain buyer in Philadelphia for the old Sun Drug Company. He had worked for many years with, and then for, Revlon’s founder Charles Revson. His stories about the legendary taskmaster were colorful, profane and hilarious. At the core of each, however, was a germ of truth that could be tucked away in the memory vault for later use.

Revlon is not the behemoth beauty industry force that the Company was while Charles Revson was alive. However, the brand is still a significant presence in the mass-market cosmetic sales channel. It has endured a series of financial manipulations, failed managers, loss of Charles Revson’s entrepreneurial instinct and dull product launches and promotions. Yet, Revlon perseveres and trudges on while so many others have failed and disappeared.

Ray Stotter once told me a story about the infant years of Revlon’s growth. During the 1930’s and 1940’s the dominant color cosmetic company was a Chinese brand, Chen Yu. Chen Yu had the distribution, shelf space, counter locations and color assortment that Revlon lusted for. Every correspondence, call and meeting that originated from the Revlon office to the field staff contained some reference to Chen Yu. What was Chen Yu promoting? Were new products in stores? How many colors of their nail polish were on counters? What did store clerks have to say about Chen Yu sales?

By the time I started working in the cosmetic industry in 1970, Chen Yu was on its last legs. What happened to the brand? Why was its decline so precipitous? How had Revlon leapfrogged the formerly dominant Chen Yu line?

As Ray Stotter told the story of Revlon’s rise and Chen Yu’s decline he invoked one of the first marketing axiom’s I had ever heard, “You’re never the greatest, only the latest”. Chen Yu enjoyed its greatest success during the depression and in the years up to and through World War II. The Company had kept prices low, packaging sparse (in keeping with the thrift of the times) and display primitive.

After the war, as the country aspired to fresher, more luxuriant consumer product offerings, Chen Yu had continued to treat their products as commodities. The brand continued to offer functional, value oriented, but not cutting edge, fashion forward product that inspired female consumers. After years of sacrifice women felt a little glamour was in order.

Charles Revson instinctively recognized this. As Chen Yu stagnated, Revlon pounced. Revlon colors became more vibrant and were seasonally culled and replaced with fresh looks. Product names became more romantic. Displays were much more colorful, sensual, and exotic. Promotional activity was constant, aggressive and highly coordinated to then current fashion trends. Importantly, Revlon created comprehensive beauty campaigns where lip, face, eye and nail colors were sold as fashion sets. Fire and Ice, and Lips and Tips were famous examples of these campaigns. Revlon introduced a prestige, upscale line, Ultima II, for the carriage trade customer. Norell and Bill Blass extended the Companies reach into better stores.

As Revlon grew exponentially, Chen Yu did not respond aggressively. The franchise that Chen Yu had painstakingly built rather quickly began to weaken and decline. Chen Yu is a classic example of a Company that fell from being among the greatest to just the latest, an also ran. Successful brands are constantly updating, refreshing and responding to current market conditions to avoid this fate.

by: Geoff Ficke
We have all heard some version of the old saying, “find something you enjoy doing and make your living in that field”. For most people that would seem to be easier said than done. Millions of these working Jane’s and Joe’s go to employment that is not physically, psychologically or financially particularly rewarding. They toil to earn a basic living and count the days until Friday, Holidays and vacations.

Clients, students and entrepreneurs often ask me how to they can find a career that is fulfilling, exciting and lucrative. I do not believe there is a road map that one can follow to workplace happiness. However, I do know this; the happiest people I know are self-employed, own small businesses or are extremely entrepreneurial. Often the basis for their success is that they are providing others with a product or service that they themselves created to satisfy a need in their life.

Here is an example of a fellow that is doing exactly what he wants, in the environment in which he is happiest and earning a lucrative income to support his family and a number of social services to which he is committed. Several years ago, a Spanish accountant (that is exciting work) was introduced to my marketing consulting firm. Carlos lived on the Costa del Sol in Andalusia and his passion was sailing. He hit the sea almost every day after work in his Morgan Cutter and spent almost every weekend and holiday on his boat. Carlos often sailed to Morocco, across the busy and treacherous Strait of Gibraltar.

For many years Carlos was an active contestant in sailing regattas (races). He loved the speed, the freedom and the competition. Like most sportsmen that pursue speed he was always looking for an edge to wrench more speed from his Morgan. He raced the boat with as much weight removed from the hull as he could safely risk. He bought specialized sails and endlessly practiced his tacking skills. The faster the boat cut through the waves the faster Carlos wanted her to go.

One morning while sitting on the deck of the Morgan, sipping Spanish Espresso, dark and thick, he observed a flock of birds gliding overhead. He began to process the sight of the graceful birds whisking by, actually bursting into the wind.

Immediately he saw the opportunity, maybe, hopefully, to add a feature to improve the performance of his boat in races based on these bird’s wing angles. He took the boat to berth and rushed to his home workshop.

It took months of tinkering, testing, fitting and retro-fitting before Carlos perfected a design for a stabilizing wing that could be easily attached to the hull of his boat. Finally the day was at hand when he would test the wing in a regatta. His result was stunning. He came first and won Best in Class with his newly enhanced Morgan. He had never experienced such speed.

Initially, Carlos was happy just to enjoy the additional speed and stability in rough water that his wing provided. However, one day he invited a friend aboard. The friend knew sailing and was amazed and thrilled by the performance he experienced on the day sail on the Morgan. He began to nag Carlos about taking the product he had created to market.

This was when we met Carlos. He had a production quality prototype and 3D CAD art for his perfected stabilizer wing and wanted to market the product. He made all of the right moves in choosing a manufacturer, customizing a marketing strategy utilizing a guerrilla strategy, building a realistic business plan and test marketing the product.

The product was initially demonstrated at sailing regattas on the Mediterranean and Atlantic costs of Spain. Orders started to come as word of mouth about the product spread from racer to racer. Soon Carlos had a choice to make: concentrate on selling his product or continue with his number career as an accountant. Easy choice!

Today Carlos life is centered on sailing to marina’s, ships chandlery’s and regattas in Spain and France to demonstrate and sell his wing. He is making as much money as he made as an accountant and is having a whole bunch more fun tacking his boat than punching a calculator.

This is only one anecdotal example of “making your living doing what you love”. We believe that more people could enjoy similar success and happiness by seizing opportunities available in their personal universe. It is a realistic goal for most!