Archive for February, 2011

South Butt, Part Two

Channel Signal Analyst, David Sweeney, brought this to my attention yesterday. Needed a day to think about it.

In short, Nike is taking on two Northeastern College kids for making tee shirts that announce, Just NU It. NU students Matthew Valich and Charles Svirk want to now take this to other Universities, like DU (Denver University), and make a go of it. Matt and Charles have hired the South Butt attorney that represented Jimmy Winkelmann in the South Butt case. Here’s the Article.

Channel Signal has collected and measured 100′s of thousands of online posts on the South Butt case for our client, The North Face. So, we have some experience here.

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Here’s our advice to Nike and the young company called Univarsity (correct spelling).

1. Both sides seem willing to settle. Just Do It.

2. If you don’t, then you Nike, should prepare for the full force and power of an online population that is young, powerful, willing to invest time and          money…all to fight the behemoth called Nike. And once they engage, then traditional media engages. Your legal and pr teams will be busier then they ever thought possible.

3. Nike, your lawyers don’t know how to fight this battle. Much money will be wasted.

4. Matt and Charles. Good idea, but this may not go the way of South Butt. Know what you want and then go negotiate with Nike to get it.

5. Nike, last I checked your revenue is north of 35 billion. And I’ll bet Univarsity  isn’t making $10,000 a month. Engage in a fight and you will be perceived as the 800 pound gorilla. And you have built your enormously successful company on the aspirations of millions of Americans that they can get out and “Just Do It.”

Just Don’t Do This. Find a better way.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Platform-Bias

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So many companies are focusing attention on Facebook. Why? Because they feel that all consumers are flocking to FB.

The problem: FB is truly social media. It is filled with consumers sharing past experiences, old photos, connecting with old friends, youtube videos of favorite rock bands, posting links of great blogs, and generally connecting with friends, family and long lost friends.

It is social. It is not business.

Here’s the litmus test. Would you want to see the current pictures of an old boy friend who has recently connected with you, or would you like to hear a sales pitch wrapped-in-the-guise-of-a-conversation about a new product from a brand.

Yep, I thought so. Me too. Bring on the pictures.

So, when companies tell Channel Signal that they are concentrating on Facebook, they ignore a basic fact. They are a small part of the conversation and they will remain a small part of that conversation. The FB core value is…give people the tools to connect with one another. The core value is not…give businesses access to consumers so they can sell more stuff.

That’s why Facebook has floors of lawyers that do nothing but protect the idea of consumers being”password protected.”

And yes, companies are trying to negotiate with Facebook to gain access to the consumers on the platform. It won’t happen. It can’t happen. FB would lose its core value and its competitive advantage.

So, companies need to engage by presenting grass roots events and programs to consumers. Activities that people can do together. That motivate. That create communities. Where people can meet new people. Where good things happen within communities.

Brands are heavy footed. Sorry, brands, but it is true. You don’t communicate with the same free flowing manner of people who are happy to engage with friends, family and about community events. They don’t worry about making a misstep. You do.

And it will always be that way.

Brands should use FB to provide momentum for community building and grass roots movements. And they should use Twitter for the immediate information that needs to get out. And the blogs for thoughtful presentations.

And the selling…save that for the sales reps, retail salespeople, the online retail sites…and the places where people expect to be sold.

And a brand saying that they have 30,000 FB friends? Please. The vast majority are just folks riding through the neighborhood looking for yard sales.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

WikiLeaks and the Aftermath

Channel Signal is in the business of collecting raw online data and then providing analysis. WikiLeaks is in the business of publishing the raw data without translation.

I believe WikiLeaks is staying true to its purpose. Publishing the behind the scenes dialogues of government is neither bad nor good. Governments, including the United States Government, have a vested interest in keeping order and the status quo.

WikiLeaks is about publishing the information and allowing people to make up their own minds. Well, they have. In Tunesia, Egypt, Yeman and perhaps Jordan. And the information has encouraged the lower and middle classes in many middle east countries to rise up and demand change. Change that would allow the lower classes to earn a living and the ruling classes to be less entitled…to cushy government jobs, country clubs, and general plush livestyles.

I believe the Obama Administration is watching all of this unfold with a careful eye. The lower and middle classes in the United States continue to struggle. The upper class, especially Wall Street,  continues to make more money while behaving as if they are “entitled”.

Don’t believe for a moment that our country is immune from unrest. Watching the Egyptian uprising may be giving us a glimpse into the future.

The United States was very healthy in the 1950′s because there was promise in the air. The reward of a better more prosperous life for hard work. That continued in the 60′s and 70′s. It started to come apart in the 90′s and 2000′s…as we had the S&L crises, then the bubbles (both Internet and Housing), and then the Wall Street mess.

Making money just to make money only benefits the rich. And countries who pander to the upper-class undermine the very foundation of good government.

Change will come. Raw information from Wikileaks probably brought change sooner, but it was coming anyway.

Here’s hoping for a smart peaceful change, for the better, in our country.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal

Great Outdoor and Snow Shows

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I have been attending the Outdoor Retailer and Snowsports Shows for a long time. OR or ORWM (Outdoor Retailer Winter Market) is held in Salt Lake City. The Snowsports Industries of America Show is held in Denver…moved recently from Vegas in a moved that has been brilliant.

I have not seen more upbeat shows in a decade; no, over a decade. OR was first. I attended the Thought Leaders Dinner the evening before the show, and the mood from the industry leaders was positive to the point of being giddy. Numbers, customers and momentum all swinging to the right and up. The first day of the Show was the same. Very positive. Much conversation.

Then a funny thing happened. The Show got quieter, and I don’t think this was a bad thing. I believe people were doing business. Retailers busy with their “open to buys” and brands busy showing the product lines. Mind you, still loud and positive…but a little more business like and subdued.

The SIA Show was not the same. It was loud, positive, and not subdued…until the end. During the Show it was announced that the snow industry sold over a billion dollars in December, a record. I overheard the President of Rossignol, Tim Petric, asking a retailer how business was. The retailer replied that it was just excellent. Just excellent. And that vibe kept up throughout the show.

My congratulations to the OR team led by Kenji Haroutunian. Great show and well worth it for the brands, retailers and the other attendees.

And to David Ingemie and his team at SIA. The move to a ski town, Denver, combined with a well run show, the great winter and good business cycle made for an industry rapidly gaining its health.

There have been a few lean years. However, those who kept their heads down, stuck to the business basics, and forged ahead with a smile are now reaping the rewards.

It couldn’t happen to better industries or the people in them.

Paul Kirwin

Paul Kirwin, Founder and CEO of Channel Signal