Video Transcriptions

Chapter 1

ANNOUNCER: This is a customer announcement. Tonight it's 4:00 PM, and the store is now closed. 
[Lewis Marshall, IKEA Spokesperson]
LEWIS MARSHALL: Tonight we're hosting the IKEA big sleepover here in IKEA Lakeside. We have 100 lucky competition winners who have got the chance to sleep over in the store this evening. 
WOMAN: So far tonight, we came in and we chose all our bed linen and everything. We got our free goody bag, which is amazing, and had some cakes, and hot chocolate, mulled wine. 
WOMAN: There you go. 
[CHEERING] 
ANNOUNCER: Thank you. 
LEWIS MARSHALL: We've got a sleep expert on hand to advise about the rituals and habits that people have before they go to bed. We're going to be showing a film. We've got massages, manicures, and we've even got a celebrity who's going be coming and doing a bedtime story reading for us. 
SAM FAIERS: Mummy bear made porridge for breakfast. 
[Sam Faiers – The Only Way to Essex]
SAM FAIERS:I read to everyone Goldilocks and the Three Bears. And everyone laughed. It was quite light-hearted, tongue and cheek. It wasn't deadly serious. 
[CHEERING] 
LEWIS MARSHALL: We did piece of research of about 3,000 people. We found that 3/4 said that they took less than 10 minutes to choose a mattress, which is less time than some people take to choose their lunch. It's really important to take their time to choose the right mattress, because you actually spend around about 1/3 of your life on it. 
[Professor Adrian Williams – Sleep Expert]
PROFESSOR ADRIAN WILLIAMS: I hadn't really realized how little time people spend looking at beds, which are clearly very important in obtaining good sleep. 
SAM FAIERS: It's more of a fun experience as well, because you obviously have in one big room together sleeping with strangers. 
MAN: I've had loads of fun. I had a little bit of a massage. I spoke to a sleep expert. So yeah, it's been good. 
WOMAN: I’ve had my nails done. Jah! Good for the fist time ever. I drunk lots of hot chocolate, eaten too many biscuits. 
WOMAN: I sleep walk sometimes. So I was like, oh! 
[LAUGHTER] 
SAM FAIERS: But for me, I've  never had a problem with sleeping. So  I wouldn't really know what the best thing is to tell someone. But I don't know. Cozy up. Have a cuddle. 
[LAUGHTER] 
SAM FAIERS: Lights off. 
[MUSIC PLAYING]

MUSIC PLAYING] PETER: What is marketing? 
DANNY: There are plenty of common misconceptions about marketing, so before we get into what marketing really is, here's an example of what it isn't. 
PETER: Number one. First misconception, marketing is evil. A lot of people think that marketing has no inherent value, and that its only purpose is to separate people from their money. That is not the case. Of course not everyone will agree with every part of every marketing campaign, but just because you don't like part of something doesn't mean that all of it is evil or even wrong. 
I mean, if you hate Brussels sprouts, it doesn't follow you think that every vegetable is a crime against nature, right? Now we can assume that you don't fall prey to this particular man. Most people who think marketing is evil only do so because they've been fooled by myth number two. 
DANNY: The second myth is that marketing is advertising. We all understand why folks get tired of commercials selling deodorant and soft drinks during their television shows and flashy banner ads for anything and everything at the top of every website they visit. The truth of the matter is that some advertisements are annoying, but advertising is not all that marketing is. It's only a small part of a well-developed, effective marketing plan, the idea of which will probably make you think of myth number three. 
PETER: And that myth is that marketing is expensive. A misconception is that only big companies with giant marketing budgets can afford to advertise effectively, and that the little guys may as well not even bother. Not true. You can design and develop a solid and effective marketing campaign for almost any budget. Stick with us, we'll show you how. 
Now that we've gotten some of the elephants out of the room, let's move on to what marketing is. There are lots of different definitions and almost every business person has their own. We actually have different definitions ourselves. 
DANNY: I like to say that marketing is the process of aligning your offering with the customer's needs and communicating that to them. 
PETER: And my favorite definition is that marketing is the process of creating and maintaining a customer relationship. 
DANNY: We're both right. 
PETER: [INAUDIBLE] definition is very communication oriented, and no wonder, he's a communications strategist. What this definition means in more detail is that marketing is about giving your customers what they want and then telling them that you're giving them what they want. If someone wants something and they know you have it, they'll probably buy it from you. 
DANNY: Peter's definition that marketing is the process of creating and maintaining customer relationships takes in the whole large scope of marketing. Any contact you have with a customer is a potential marketing opportunity, and because of that, having a solid customer relationship based on trust is incredibly important. 
PETER: Marketing is so much more than just advertising and promotion. Marketing is customer service and distribution. Marketing is communication. Anytime you get information about a product or service, that's marketing-- even if you heard about it from your mother-in-law. When your computer breaks down you call the company about the warranty, that's marketing. When you go to the grocery store and see the shelves filled with different products, that's marketing too. How can this be? 
DANNY: A good marketer makes an effort to know and understand their customers so that they can provide something that is useful and valuable for them. Aligning what you sell with the needs of the customer and developing an honest, genuine relationship with that customer is what marketing is really all about. That's why communication is so important. So is building trust. 
So what are all the elements involved in marketing? The most important ones are the four Ps, which are explained in great detail in the Firepole Marketing Training Program, and in posts throughout our blog. 
PETER: Want more lessons and tips like this one? Subscribe to the Firepool Marketing Blog or sign up for our free seven day business fireproofing video course.

Brad: Our first video hit, which was the base-jumping one. Even now I still feel my stomach hung up, turn when he flips the camera around behind him. It made us all go, "Wow." It's going to change everything.
Stephen: GoPro got started in around 2003. Nick Woodman had been on a surf trip and was looking for some different ways to be able to capture he and his friends.
Suzanne: This camera is the original GoPro. At the time, it was a point and shoot camera. We've evolved from there. But the whole principle inside is still the same which is really capturing life's most exciting moments and sharing them with others. We have a fanatical fanbase that will love using GoPro cameras.
Stephen: Almost every week we come across a new video on YouTube that opens our eyes to a new area that we hadn't thought of.
Lee: You can't ignore the amount of GoPro content that's being published on YouTube. It's crazy.
Brad: Those moments are so genuine. It isn't just sports. It can be used for so many different areas. That's the part that's exciting. That's the part that's really showing where GoPro can expand.
Suzanne: Whether it's sending our GoPro cameras up in the space, or it's a simple moment. I saw a woman share a hula-hoop that had a GoPro attached to it. It's really neat to see people's passion coming forward and people sharing how, when they watch that video, it inspired them to get outside and do something big with their life.
Brad: What we realized through YouTube, was the best way of advertising what our camera could do was showing the content.
Stephen: A lot of the consumers out there were very early on, sharing their content while tagging it as GoPro. Customers were marketing the brand for us.
Brad: That is what built that momentum. We made sure that all of our videos were GoPro HD. And everyone knew exactly where it came from and what the camera was.
Lee: As our views increased, we immediately saw lift in direct sales.
Stephen: The YouTube has been so proactive in looking at how to work with us, truly as a partner.
Lee: We've become curious about what's possible with our videos. We'll reach out and we'll initiate a strategic conversation, and they've been really receptive and supportive of those ideas.
Brad: The YouTube analytics. That's something we watch all the time. We love watching our videos and watching to see where people's interest starts peaking. YouTube is a production tool, not just a viewer.
Stephen: I can't imagine a world without YouTube. It's been an instrumental platform for GoPro's success.
Brad: We have a following audience that is much bigger than, say, a restricted snowboarding brand or a surfing brand, and it's because of our exposure with YouTube.
Suzanne: I'm a big believer in things coming together. The world's aligned. And right now, YouTube and GoPro are very much aligned.
Brad: It's a surreal story. To go from a little Disposable Kodak to meetings with Shaun White, is a dream. It's unreal.

Chapter 2

[MUSIC PLAYING] WOMAN: Kids! 
NARRATOR: In 1985, one of America's most successful companies ran into serious trouble when it decided to change its product. But unlike other industry giants who actually disappeared, like US Steel or Eastern Airlines, this one has come roaring back as the owner of the world's most recognized brand. 
ROBERTO GOIZUETA (CHAIRMAN & CEO): Coca-Cola is a trademark and it is a trademark that is surrounded with sights and sounds that make it a brand. And Coca-Cola is attached to music. Coca-Cola is attached to sports. We like to say that if it does not move, we paint it red. And if it moves, we sponsor it. 
[TELEGRAPH SIGNAL]
[Text on screen: Location: Atlanta, Georgia. Company: Coca-Cola. File Title: From Trouble: Marketing Opportunity]
VINTAGE ADVERTISEMENT: Coca-Cola, Coca-Cola-- 
NARRATOR: =From its origins in 1886 right on through the '50s, Coca-Cola maintained a consistent record of growth. 
VINTAGE ADVERTISEMENT: Coca-Cola now! Wow! 
NARRATOR: It created what seemed a special bond with consumers, largely propelled by advertising in tune with the times. 
VINTAGE ADVERTISEMENT: Coca-Cola-- 
PHIL MOONEY (CHIEF ARCHIVIST): From the very beginning, we created colorful images that capture the consumer's attention. The proliferation of different types of imagery and different forms really made the advertising universal. 
VINTAGE ADVERTISEMENT: Quench the thirst of the fish-- 
NARRATOR: Year after year, things did seem to go better with Coke. 
VINTAGE ADVERTISEMENT: Things go better with Coke. 
NARRATOR: That is until the mid-1960s, when the company ran into a wall of change. 
GOIZUETA: Since 1964, the product Coca-Cola had been losing market share in the United States. At the same time, the sugar cola segment in which Coca-Cola competes was shrinking. So it doesn't take much of an imagination that if you're losing share in a market segment that is shrinking, eventually you will end up with nothing. 
NARRATOR: Through the '70s into the '80s, Coke's market share was being chipped away by diet sodas and drinks like 7-Up. 
VINTAGE ADVERTISEMENT: Once there was a time when a cola was a cola was a cola. Then came the Uncola. And as the world began to discover its fresh, clean taste-- 
NARRATOR: At the same time, Pepsi introduced its successful campaign, the Pepsi Challenge. Coke had to reassert itself, but how? 
GOIZUETA: We had tried everything. The only thing we did not try was changing the taste. In the process of developing Diet Coke, our flavor chemist came up with a flavoring compound that they felt was exceptional. And that in blind taste test, and I emphasize the word blind, was preferred. 
NARRATOR: The test results were all the company needed. People seemed to prefer the new formula. In 1985, after 20 years of struggling with changing market realities, Goizueta decided to alter the taste. Backed by millions in advertising and promotion funds, Coke believed it had finally figured out how to win over the next generation of consumers. 
VINTAGE ADVERTISEMENT: Introducing the new taste of Coca-Cola. That's right-- the new taste of Coke. Coca-Cola just went one better, a new taste that does more and goes further-- 
NARRATOR: But the launch of new Coke created a backlash that stopped the company in its tracks. 
VINTAGE ADVERTISEMENT: Please don't change the taste of Coke. Why do you want to fix it? It ain't broke. 
INTERVIEWER: You didn't like the new formula? 
WOMAN: I’ve never tried it. But I didn't want to. Did I? Oh, I did. That's right and I threw it out the window. 
MAN: Because we don't like it. 
WOMAN: Because we don't like it. 
MAN 2: Dear sirs, I'm glad the person who came up with this dumb idea wasn't around when the Mona Lisa was painted. He probably would have said that her smile wasn't big enough. 
NARRATOR: Rarely had an executive decision generated so much ridicule. For Goizueta, it was the supreme test. Most observers felt that his future, as well as the company's, would be determined by how he responded. 
GOIZUETA: It was a fascinating spring and summer in 1985. I received numerous letters, one of the letters was addressed to Chief Dodo, the Coca-Cola Company. What was fascinating was that it reached my desk. 
There was another one, a gentleman in Wisconsin, who wrote a letter, you know, kind of protesting about the formula change. And then he said, I would appreciate it very much if you signed this letter at the bottom and return it to me. Because in years to come, the signature of the dumbest executive in American history is going to be worth a fortune. 
So I did sign on the bottom and send it to him. So it was humbling in that sense. And it was exhilarating in the sense that we realized we had something in our hands, a treasure that we had never valued as it should have been valued. 
NARRATOR: Goizueta acted decisively and reintroduced the original formula. 
DONALD KEOUGH (PRESIDENT & COO): We're bringing back the classic original formula as Coca-Cola Classic-- 
NARRATOR: The return of Coca-Cola Classic showed the company had learned an important marketing lesson about the consumer's connection to the brand. 
SALLY COHEN (GROUP BRAND MANAGER): I think it's very difficult when people first come to Coke from other packaged goods companies. Because they're used to brands that have very straightforward, what we call functional benefits. It makes your clothes cleaner, whiter, brighter. 
And you come to Coke, and you work on a brand like Coca-Cola. And suddenly you have this brand that's-- yeah, there's something physical. It does refresh you and cool you down. But there's much more emotional and mental things happening. It's a lot more intangible the way people feel about Coke. It's almost more like a perfume than it is like a consumer product. 
VINTAGE ADVERTISEMENT: I'd like to teach the world to sing in perfect harmony, perfect harmony-- 
NARRATOR: Goizueta's marketing inspiration was to realize that the emotions behind the outcry represented a huge opportunity. 
VINTAGE ADVERTISEMENT: It's the real thing, Coke is. What the world wants today-- 
GOIZUETA: We realized that we had in our hands a most powerful tool for growing the business, which was and is all those images that surround Coca-Cola-- the red color, the contoured bottle. 
VINTAGE ADVERTISEMENT: A bottle that would capture a moment of pleasure the world had come to love. 
GOIZUETA: So since then, you have seen us emphasizing all those icons that surround the brand, the product, the taste of Coca-Cola. 
NARRATOR: The centerpiece of Goizueta's turnaround strategy was to focus on Coke's icons, particularly the contour bottle. Originally developed in 1960, 
[Text on screen: “Enterprise Media Inc. To view the complete program, please visit: www.enterprisemedia.com”]

NARRATOR: Given all this coffee-powered cash flying around, you could be forgiven for thinking that setting up a coffee shop chain would be a licence to print money. But you'd be wrong. As the noughties dawned, coffee drinking seemed to be deeply entrenched in the British lifestyle.
[Jeffery Young, Allegra Strategies]
JEFFREY YOUNG: I got very excited back in 2003 when I saw the latte became a part of consumer price index. And for me that was a sign that this market was really here. That this branded coffee product was part of British lifestyle.
NARRATOR: Despite this, none of the brands was turning a profit because coffee shops only make money if they can control the fixed costs, like their rents. One company in particular was struggling. Coffee Republic had been the brainchild of brother and sister team, Bobby and Sahar Hashemi. They had grown their business quickly since 1995, taking on locations with astronomical rents where footfall would be high, but their brand was not strong enough to pull in the punters.
JEFFREY YOUNG: They were a brand that was wanting to be a Starbucks, but they didn't have the same brand pull of Starbucks, they didn't have the financial covenants, they didn't have the financial clout of Starbucks, so they were going head-to-head with Starbucks on the same premises and actually perhaps a bit of hubris, paying above and beyond what they should have paid.
NARRATOR: Rents matter because a third of us are more likely to choose a coffee bar based on its convenience than any other factor, meaning landlords can charge a fortune for prime sites.
[Bobby Hashemi, Co-founder of Coffee Republic, Speaking in 2003]
BOBBY HASHEMI: In the land grab, we ended up acquiring sites that, because of the competition or because of the high rents, have not been profitable for us.
NARRATOR: Coffee Republic was eventually forced into administration. Bobby Hashemi stepped down and today the company is a fraction of the size it once was. The UK coffee market had boiled down to three big brands - Starbucks out in front, with Costa and Nero bringing up the rear. But the landscape was about to change.
JEFFREY YOUNG: In the mid 2000s, Costa was a mediocre brand. It was a brand that was a bit lost. It was stuck in the middle, really, it was in no-man's land. It wasn't... It didn't have the coffee credentials of Caffe Nero, it didn't have sexy brand image of Starbucks. The arrival of a new management team in 2007 was actually a pivotal moment in Costa's development. It really was the moment that they put the foot on the accelerator.
NARRATOR: One of the new managers who put his pedal to the floor was marketing whizz Jim Slater. In 2008, he hatched a plan that would hit Starbucks where it would hurt.
[Jim Slater, MD of Enterprises, Costa Coffee UK]
JIM SLATER: There was a general perception amongst the public that all coffee was the same and it clearly isn't. So we commissioned a blind taste test and the results were stunning.
[Text on screen: 7 out of 10 coffee lovers prefer Costa]
MAN 1: It was a robust and well-certified study, and from that we felt confident enough to put advertising out that said that seven out of ten coffee lovers prefer Costa.
NARRATOR: When the ad campaign was first launched, Howard Schultz seemed undaunted.
[Howard Shultz, speaking in 2009]
HOWARD SCHULTZ: We serve about 2 million customers a week here in the UK. We are the leader and we will maintain our leadership position.
NARRATOR: But Costa's adverts had gone for Starbucks' jugular.
JIM SLATER: We wanted to be fairly blatant, and lines like, "Sorry, Starbucks, the people have voted" were quite hard-hitting at the time and they proved very effective.
NARRATOR: Starbucks was unnerved, and complained to the Advertising Standards Authority.
JIM SLATER: We thought they would complain, and that's why we had to make absolutely sure that the research was totally robust, perfectly legal and would stand to any kind of challenge.
NARRATOR: The ASA upheld Costa's claims despite Starbucks' contention that the blind test only used cappuccinos and that the test did not prove that Starbucks customers preferred Costa's coffee.
MAN 1: There were some level of challenge around the accuracy of it, but that was all upheld and was found to be true, and I guess beyond that, you should probably ask Starbucks.
[Rhys Iley of Starbucks]
RHYS ILEY: They are very entitled to say what they say, and actually, that's fine, because we've got to concentrate on what we do. We've got to concentrate on our customers and making our business the best it can be.
JIM SLATER: I don't think Starbucks are at all frightened of us. You know, we're a microscopic blip on their proverbial posterior.

[MUSIC PLAYING] 
[Text on screen: “Value Creation Through marketing. McGraw Hill education. iSeeit!”]
NARRATOR: The Hernandez family is dropping their youngest daughter, Gabby, off for her freshman year at college. But before the proud parents say their goodbyes, they decide to head down the block to grab a cup of coffee. It sounds like a simple proposition. But for the Hernandez family and billions of other consumers, a cup of coffee means different things to different people. 
Gabby loves a good independent coffee spot that utilizes artisanal beans. Her mom, Marsha, prefers a coffee chain like Starbucks that delivers a consistent experience no matter what city she's in. And Gabby's dad just wants a plain cup of decaf. To him, coffee is best when it's plain, hot, and cheap-- three consumers, three very different ideas about the value of that cup of joe. 
Value looks at what the customer gets relative to what they give up. If the customer gets back more than what he gives up, that's a successful value exchange. But if the customer gets back less than what he gave up, well, he's not likely to make a return visit. Creating value is essential. In fact, it is the fundamental purpose of marketing. 
Businesses depend on the right marketing mix comprised of the four P's to create the maximum value for their target customers.
[Text on screen: Product, price, place, promotion]
Gabby thinks of coffee in terms of an experience. She enjoys independent coffee places that cultivate a cozy vibe, offer free Wi-Fi [PLACE], and use only local artisanal beans [PRODUCT]. She knows her coffee is going to take longer to make and cost more [PLAIN COFFEE $3.00: PRICE]. But in Gabby's mind, she's getting back more than what she's giving up. It's a positive value exchange. 
When Marsha thinks about coffee, she sees the value in a business model like $5-- high quality coffee drinks made to order quickly conveniently [FOOD MART FIVEBUCKS EXPRESS: PLACE] and consistently [COFFEE: PRODUCT] for what she considers a fair price [PRICE], whether she's inside her local grocery store or visiting someone on the other side of the country. Gabby's dad, however, has no interest in all that fancy stuff. He's happy refilling his travel mug for $0.25 [REFILLS ONLY 25 CENTS WITH PURCHASE: PROMOTION] at his local donut shop [PLACE] and moving on with his day. It's no frills, just straight drip [PRODUCT] that's priced right [PRICE] and hits the spot. 
Each family member relies on promotions to become aware of the different value propositions coffee marketers offer, as well as the availability of product attributes and benefits that matter to them. So the definition of value shifts depending on what each customer is looking for. It's up to every business, whether they provide a good, service or idea, to maximize value and satisfy their customers' needs by creating their own special blend of the four P's. 
[MUSIC PLAYING] 
[Text on screen: “McGraw Hill Education. iSeeit!”]

AJ FEATHER: If that mile-long Starbucks line has kept you from getting your caffeine fix in the past, we've got some news that's sure to pep you up. Starbucks is going to let you circumvent that line all thanks to its new mobile order and pay system. 
So how does it work? It seems simple enough. You make your food and beverage choices via the Starbucks app, choose the store where you'll pick your order up, and tap to pay. The app will give you approximate wait times and send your order to the store as soon as you pay. 
Starbucks has already rolled out the new feature in Portland, Oregon, but the rest of the nation will have to wait until 2015. And while it's only available on iOS right now, the company says Android will get it during the rollout. 
But while getting to skip the long line for your morning pick-me-up is sure to please, speeding up your morning routine isn't the company's only goal. In an interview with Wired, Starbucks chief digital officer suggests the feature will bring in more business by "eliminating the 'pinch point' of the line." 
Not to mention the fact that Starbucks isn't the only food and beverage company experimenting with a mobile ordering and payment system. Taco Bell and Chipotle are two of several that come to mind. 
But we can't forget Starbucks is already kind of the champ when it comes to mobile payments. In an interview with The Oregonian, Starbucks chief digital officer said, "We already have this huge momentum and success in terms of cards, loyalty, and mobile, and it's leveraging that momentum that we've added in this new feature, this new capability. It's actually a natural extension." 
And GeekWire says Starbucks isn't done building out the service just yet. More features are on the way. They intend on learning from the experiences in Portland and adding more features soon, like the ability to schedule a drink, have one delivered, or timing it based on a person's proximity to a store. 
So will you give Starbucks mobile ordering system a try when it comes to your city? Let us know in the comments below. For Newsy, I'm AJ Feather.

Chobani founder turns centuries old Greek yogurt into billion dollar craze
HARRY SMITH: Not a scientist, but just from observational skills, this is a lot of yogurt. 
HAMDI: And this is only five days' inventory. So as you see, this is an actual tweet. 
HARRY SMITH NARRATING: As we tour his offices, Hamdi explains how Chobani got so big so fast. Somebody tweeted this. 
HAMDI: Yeah, somebody has tweeted this. 
HARRY SMITH: Chobani, your yogurt warms my soul. Based largely on word of mouth and social media, his customers marketed the product for him. Go online and you can witness the Chobani love fest. Even cats like it. 
HAMDI: The communication is so fast, you don't need huge money for the marketing for your voice to be heard. It's a flat world. 
HARRY SMITH: And if you're good-- 
HAMDI: If you're good, you'll be there. 
HARRY SMITH NARRATING : Hambi believes Chobani is the model for the future. 
HARRY SMITH: You're a food revolutionary 
HAMDI: I hope so, because that's what we want to do. It's shame what's in the supermarkets today. It really is. It doesn't have to have all this preservative. It doesn't have to have all these bad colors and stuff like that. It doesn't. So whose responsibility is this? It's the manufacturers responsibility. And they can make it this way. They can make it better. They can make it nutritious, and they can make it accessible. That's what we did in Chobani. 
HARRY SMITH NARRATING: Only in America can a 40-year-old Turkish Kurd immigrant making a foreign food do so well that his company can afford to sponsor the Olympic team. Remember the ads? 
COMMERCIAL NARRATOR: Now our yogurt is powering our US Olympic athletes. 
HARRY SMITH NARRATING: Hard to believe, but this bustling plant had been scheduled to be shut down in 2005. Food giant Kraft had given up on making its yogurt here and put the place up for sale. Hamdi, who owned a small feta cheese company nearby, saw the ad and toured the plant the next day. 
HAMDI: I called my attorney, and I said, just saw a plant, and I think I want to buy it. He actually laughed at me. He actually used some bad words and said, you're really, really crazy. That's not going to happen. 
HARRY SMITH NARRATING: Deep in rural New York dairy country, progress was something folks thought happened somewhere else. But here, Hamdi saw an opportunity, and he took it. 
HAMDI: If I could put it in the store and it stays there, I wonder what this is? And if they can try it, and once they try it, they're hooked and they won't go back, then this is my chance. So what I tried to do is make sure that this yogurt was absolutely perfect. 
HARRY SMITH NARRATING: Create a yogurt that tasted good and was good for you? The folks in downtown New Berlin where Chobani is headquartered had their doubts. Betsey and Frank Baio own New York Pizzeria. They are among Hamdi's best friends. Even they wondered. 
BETSY BAIO: He would tell us all these things, and I would be very supportive. And then he would leave, and I'd be like, oh my god. We're  going to feel so bad when he goes bankrupt, because he's going to lose his shirt. 
HARRY SMITH: You thought he was going to go under. 
FRANK BAIO: Yeah, definitely. 
BETSY BAIO: 100,000% go under. 
HARRY SMITH: And you're his good friends? 
FRANK BAIO: Yeah. I was not even going to charge him for lunch. We had a free lunch. I think I'd help him out a little bit. 
HARRY SMITH NARRATING: But if there is such a thing as a secret ingredient in this saga, it is this man, yogurt master Mustafa Dogan. Armed with a pocket full of spoons, he is, if you will, a taste sensation. Hamdi brought him here from Turkey to work his craft. 
HARRY SMITH: Is it right? 
MUSTAFA DOGAN: Yeah, it's good. 
HARRY SMITH NARRATING: And together, they labored around the clock for two years, even sleeping at the factory to get the recipe exactly right. 
HAMDI: That place became my home. It was lonely days, difficult days, a lot of question marks, a lot of pressure. 
HARRY SMITH NARRATING: As we sat in this hilltop house, fire blazing, Hamdi said it was one of the most nerve-wracking times in his life. But any doubts he had faded when the first cases of Chobani hit store shelves. 
HAMDI: One major store in New York took our product. And he called two weeks later and he said, I don't know what you guys are putting into these cups, but I can't keep it in the shelf. 
HARRY SMITH: Really? 
HAMDI: Yeah. And I said, all right, this is good. At that moment, I realized that this wasn't going to be about selling. This was about, can we make it enough? 
HARRY SMITH NARRATING: Since then, they have barely kept up with demand. Obsessed, driven, competitive, and a guy so self-aware, he told his most trusted employees to sock him if he ever gets out of line. But Hamdi has something else they don't teach in business school. 
HAMDI: Passion. The famous poet in Turkey's Rumi, he said, "With passion, pray. With passion, make love. With passion, eat, and drink, and dance and play." 
HARRY SMITH NARRATING: Perhaps this is the model of the new CEO, a man who can quote 800-year-old Persian poetry. And while everyone in America apparently is eating Greek yogurt now, until my visit to Chobani, I was the last person who hadn't tried it. 
HAMDI: So this is your first time ever? 
HARRY SMITH: Yeah. 
HAMDI: Oh my god. 
HARRY SMITH NARRATING: He is a perfectionist, a mystic, and one hell of a salesman. 
HAMDI: What you have is just beautiful yogurt here. And see, it won't move. It's really thick, and it's creamy. But what people do, which I'm very picky about it, is just keep stirring, and stirring and stirring, and that's no good. So what you want to do is just you go upside down, turn it like this. See? Beautiful blueberries. 
HARRY SMITH: I get it. 
HAMDI: Right? 
HARRY SMITH: Where's this been all my life? 
HAMDI: I know. It's been in Turkey and Greece. 
[LAUGHTER] 
Not here in upstate New York. It's a 10-acre lake-- 
HARRY SMITH NARRATING: Most every day, Hamdi Ulukaya goes for a walk in the woods. And let the rest of the food business beware. Because like Thoreau, nature inspires him. It's where he gets his best ideas. 
HARRY SMITH: The normal model is you're in that office 20 hours a day. But you say, I need to walk in the woods. 
HAMDI: Absolutely. And they don't want me to be there. That's the thing. It's you go do your walk and think what you need to think. We got this. And by the time I'm out, and I get home and I call my colleagues, it's this, he just walked in the woods again. 
[LAUGHTER] 
Because of ideas that come out of it. 
HARRY SMITH NARRATING: Ideas like his new yogurt bar in New York's trendy Soho neighborhood. 
HAMDI: This is the first time we are having interaction with our consumers. We say, what do you think? Do you like it? I learn so much from talking to people over there. 
HARRY SMITH NARRATING: He learns from people. He lives his passion. And if you haven't been impressed with any of this so far, on every Chobani package-- and it's been there since day one-- is a statement of company policy. 10% of profits go to charity. 
HAMDI: Why are you doing what you're doing if you don't have a purpose? Money? How much money do you need? There are a lot of rich people that come and go, there are a lot of successful people that come and go. What counts is what you leave behind, and what kind of difference you make. 
NEWS ANCHOR: Our thanks to Harry Smith who hasn't quite been the same since. Up next after a break, some news that deserved a bit more attention this week, including a revealing look at what flight –

[MUSIC PLAYING] -When I was a boy growing up in Eastern Turkey, my mother used to tell me stories about the shepherds. I learned that a shepherd would give a gift without asking for anything in return. That is why a shepherd's gift means so much. I kept her lesson with me ever since and I realized that the world is still full of spirit. This is what inspired me to Shepherd's Gift foundation. To shine a little light on the shepherds. 
[MUSIC PLAYING]

NARRATOR: Men's hair goes through a lot. So make sure it's ready for anything. Dove Men Plus Care, fortifying shampoo infused with caffeine makes your hair up to five times stronger, plus less hairful. 
Dove Men Plus Care, test your strength.

Chapter 3

MAN: welcome back SWAT bumble the popular dating app is redefining how we think about connectivity company recently launched bumble biz its new offering but lets users professionally network and find mentors joining us right now to talk about it Whitney Woolf hurt she's the founder and CEO of bumble explain what what is bumble bids we've talked about the dating app portion of this where women go first
WOMAN 1: that's right so bumble biz is an extension of our pre-existing platform bumble so we originally launched bumble as a female for a stating platform right and it's been just shy of three years we know hearts for those who don't know it's that women make women make the first correct yes always and this really changes the dynamics it reduces harassment it creates a more a kinder exchange between two people and now we have launched a business vertical within for opportunity swiping for opportunities swiping to network we did this because our users were already using the platform to network women were taking control of the platform to go out and find business opportunities and to expand their network because they were in control of the experience and so we built a vertical for them to be able to do this seamlessly
MAN: what is a swipe
WOMAN 1: yes
MAN: you go just one over
WOMAN 1: you swipe right for yes or left for no so if you're garbage or set up a
MAN: 10 billion swipes there's a lot of losers men on this thing right those are
WOMAN 1: swipe left this could be be swipe right oh yes so it's actually very interesting we are so doing it is unbelievable a lot of swipes it's a lot of swipes sites so we're very excited about that and we've grown very rapidly and we have seen actually the highest engagement per all three of our verticals in bumble biz and it's only been live for kotas development
MAN: so we were talking gentle break a little bit actually Harvey Weinstein and harassment online and harassment in the workplace and havoc and you were what I was trying to understand is on bumble biz people are trying to you thought the people before you did bumble biz people were trying to find people on LinkedIn or there trying to pick up people on LinkedIn so or both?
WOMAN 1: what has happened women have experienced on other platforms when they're using it for professional professional reasons they are being solicited for romantic purposes they are being told you know professionally speaking you look very beautiful that's not professional and it's inappropriate and so with Bumble women cannot be solicited women cannot be picked up but
WOMAN 2: here's the main control I mean if I was somebody who was looking to get into the business Harvey Weinstein might be somebody that I would solicit and say okay you're in a guy in a position of power let me try and come to you and then that makes him look like I've made the advance on him
WOMAN 1: well no because it changes the dynamic so bumble has set the stage to create an ake einde social network and what we're seeing is when you set the tone with how your product is built and you lay down the ground rules this is a place where we treat each other with kindness we are respectful to one another here you actually weed out a lot of that behavior
MAN: do you think you will upend LinkedIn I mean one of the other things is Facebook recently seems to be getting into the business I was going to say to the business side that you know you can now put your resume on Facebook there with that as well where does LinkedIn stand with all of this
WOMAN 1: so I think Facebook and
LinkedIn are incredible but they are there to connect you with people you already know right it is they were not platforms built necessarily to extend your network they were really built to stay in touch with your network and we want to be the inverse of that we want to be the modern approach to that where we aren't saying this is where you only connect with people you've already met right this is a this is not opposed to just amass your rolodex that you already know and just keep it digital this is a place actually connect with new people and so it really becomes more of an inverse of something like Facebook or LinkedIn hey there thanks for checking out CNBC on YouTube be sure to subscribe to stay up-to-date on all of the day's biggest stories you can also click on any of the videos around me to watch the latest from CNBC thanks for watching

NARRATOR: Toyota. In the late '90s, sales of the people carrier went into sharp decline. Mom and Dad thought it looked boring when compared to the SUV. So, engineers at this American plant in Detroit came up with an idea. If they couldn't sell the people carrier to parents, why not try and sell it to the kids? Andy Lund came up with the new child-friendly design.
[Andy Lund, Chief Engineer]
ANDY LUND: We did not think that the word "cool" and "people carrier" had to be opposites. We wanted to make a cool van.
NARRATOR: Toyota weren't sure what "cool" might be for 7-14 year olds, so they travelled from coast to coast to find out.
ANDY LUND: We decided that, if we're going to learn, we have to go and listen to the children and watch the children.
NARRATOR: What were the things that kids were saying they wanted?
ANDY LUND: There were several features. Let me show you two. The first one is the seat. It is a captain's chair, it's designed after the driver seat, so the people who sit here don't feel they're stuck way back there. A key member of the vehicle. And so that was the first thing. The second thing was a wide-screen rear-seat entertainment.
NARRATOR: How did these changes affect sales?
ANDY LUND: Well, focusing on what children want did help our sales of our minivan. We always believe that, if you listen to the customer, and if you give the customer what they want, they will reward you by purchasing the vehicle.

NEWS ANCHOR 1: So are you searching for a custom table? How about a Barry Manilow clock or a flamingo hat? If so, Etsy might be the spot you need to go to right now. It's an online marketplace for unique and handmade goods. After its launch in 2005, sales soared, reaching more than 1.3 billion dollars, that's with a "B," last year. 
[Bar graph showing Etsy annual transactions in 2009, 2010, 2011, 2012, and 2013: 180.6 million in 2009, 314.3 million in 2010, 525.6 million in 2011, 891.5 million in 2012, and 1.35 billion in 2013.]
NEWS ANCHOR 1: Chad Dickerson is the CEO of Etsy and he joins us at the table, and not for nothing, he's a Duke grad. It's a very Duke-friendly place around here.
HAD DICKERSON: I am, thank you. Just like Charlie. 
NEWS ANCHOR 1: Yes, just like Charlie. Good to see you, Chad. So you don't like the word tchotchkes, you don't like the word knickknacks because you say it's unique, one of a kind. Why is that important to you?
CHAD DICKERSON: Absolutely, I mean Etsy is a community of a million artisans and craftspeople and what they make is really beautiful and unique. So we really want to respect the artisanship and craft behind what's on the site. 
[Text on screen “Trending on Easy: Vintage Style Harry Potter Time Turner Necklace, Wooden Curve Test Tube Vase, Unicorn Lamp”]
NEWS ANCHOR 1: Like your cufflinks, for instance, those stood out to me.
CHAD DICKERSON: Oh yeah.
NEWS ANCHOR 1: Those are very cool.
CHAD DICKERSON: In fact, so I have these cufflinks that are made from vintage maps. 
CHARLIE ROSE: Oh yeah.
CHAD DICKERSON: And here on my left is Berkeley, where I lived, Berkeley on the left.
CHARLIE ROSE: Nice.
CHAD DICKERSON: And Brooklyn on the right, where I live now. So these are -- you can pick your cities and the seller will make those for you.
CHARLIE ROSE: And what did you bring with you?
CHAD DICKERSON: So I brought with me three really beautiful items. The top categories on Etsy are jewelry, clothing, and housewares. So this is an example of a beautiful bracelet that you can buy on Etsy, and again, jewelry is the top category. You can find engagement rings that have the fingerprints of the two people getting married, amazing customized stuff, clothing, beautiful bow ties.
CHARLIE ROSE: Yes.
CHAD DICKERSON: Gorgeous.
CHARLIE ROSE: And the next item? 
CHAD DICKERSON: Oh, the next item, this is a lamp. 
CHARLIE ROSE: Aww!
NEWS ANCHOR 1: Now that's where you lost me. You lost me there, Chad. 
CHAD DICKERSON: This is a really beautiful lamp, and one of the things that's amazing about Etsy is, you know, we've lived in a world with big box retail where you go to a store and you pick something up off the shelf and it looks the same as everyone else.
NEWS ANCHOR 1: But that is the beauty of Etsy.
CHAD DICKERSON: And this is -- the beauty of Etsy is you can get something that no one else has.
[Text on screen “Etsy’s Guidelines: All items must be handmade, vintage, or a craft supply, etsy shops are independent businesses, items must be accurately represented”]
NEWS ANCHOR 2: I have to tell you. Three months ago for the first time -- I know you guys have been around for about nine years, started in Brooklyn -- I bought something from Etsy. And what I found was most interesting is that there was a personalized message in it. That whoever sold me the print that I wanted for my office actually put a note in it, and I thought this is so interesting because I think of online as being really impersonal, but this is not.
CHAD DICKERSON: Right, it's not. That's the beautiful thing. 
CHARLIE ROSE: And how did you discover it?
NEWS ANCHOR 2: So I found something and I wanted to buy it from a big box retailer and you guys had it unframed at a much cheaper cost, so I decided to go with Etsy. 
CHAD DICKERSON: And you got a personalized note, which I think is--
NEWS ANCHOR 2: Yeah, from the printing place that did it. 
CHAD DICKERSON: Right, so when you buy something on Etsy, it really is this personal relationship. It's a little more like, you know, it's a farmers' market versus a supermarket, and you do get these personal messages, and it feels really good to support an artisan. 
CHARLIE ROSE: So where's all this going? What's the future of Etsy?
CHAD DICKERSON: As you saw, the numbers in Etsy's continuing to grow. You know, our goal is to reimagine commerce to build a more fulfilling and lasting world. And what do we mean by that? We mean really changing the way things are bought and sold in the world and making it more personal and more human. We've gotten a really good start here in the U.S., although there are sales in 200 countries, over a million sellers around the world, and we're continuing to expand around the world. 
[Text on screen “Most popular categories: Jewelry, clothing, housewares”]
CHARLIE ROSE: So how do the craftspeople find you?
CHAD DICKERSON: On Etsy?
CHARLIE ROSE: Yeah.
CHAD DICKERSON: Word of mouth. You know our best sort of sales force is our sellers. They have good experiences on Etsy, they tell their friends, tell their neighbors, and it's largely grown through word of mouth. 
[Text on screen “Etsy products: Bearded man magnets, wooden animal rings, doll arm earrings”]
CHARLIE ROSE: And you get a percentage of every transaction?
CHAD DICKERSON: Three and a half percent. The way we look at it is ninety-six and a half percent goes to the artisans, so it's very artist friendly, and it's very easy to get started. To get started on Etsy, you have to spend 20 cents to list an item, so you can literally start a business with 20 cents. 
NEWS ANCHOR 1: But you set a really good tone for the company that you run, because listen to this. He has blameless post-mortems. So if something goes wrong, you have a blameless post-mortem, talk about that. And you also give awards to people who make the most spectacular mistake. I love what that does for people. 
CHAD DICKERSON: Right, so blameless post-mortems are really about what we call just culture. If you have a culture and you punish mistakes, people tend to hide information and then they don't learn from those mistakes. So blameless post-mortems, we always feel awful when we make a mistake, but--
NEWS ANCHOR 1: And we know it.
CHARLIE ROSE: Yeah, the idea here is not to be as scared of failure.
CHAD DICKERSON: Absolutely, and you know we've given awards for failure because we want to make sure that people understand that when we make a mistake that they're not going to get punished. In our engineering team, for example, they have these things called public service announcements where people send out a narrative about the mistakes that they've made, and they say don't make the same mistake.
NEWS ANCHOR 2: Right. Wonderful to see some Etsy sellers will soon be in -- what do we have here -- Nordstrom and West Elm too. Chad Dickerson, thank you so much. 
CHAD DICKERSON: Thank you very much.

[MUSIC PLAYING] ANNOUNCER: It's still climbing, and we'll start the [INAUDIBLE] gear in a little bit. And release.
[CHEERING]
(SINGING) If you're scared and walk away because there's no need to feel ashamed, yet we all feel the same. Whoa, where's your passion, where's your fight tonight. Whoa.
[AIR RUSHING]
SKY DIVER (ON RADIO): All right, I know the whole world is watching now... I'm going home now.
ANNOUNCER: Jumper away. Speed 725. Showing Felix in a stable descent. And Felix is back to earth safely and a new world record holder.
- Woo!

Chapter 4

INSTRUCTOR: Since this is a strategy course, it seems only natural to start with a discussion of what strategy is and what it isn't. First, consider the following strategy statements drawn from actual documents and announcements from well respected companies. Our strategy is to be the low cost provider. We are pursuing a global strategy. The company's strategy is to integrate a set of regional acquisitions. Our strategy is to provide unrivaled customer service. Our strategic intent is to always be the first mover. Our strategy is to move from defense to industrial applications. 
What do these strategy statements all have in common? Well, first of all, none of them are actually strategies. They represent tactics, goals, objectives, and descriptions, but not strategies. 
They are mere strategic threads, small components of overall strategies. 
The problem is that in recent years, strategy has become something of a buzzword. Whenever we want to sound smart and demonstrate our business acumen, we just make sure the word strategy shows up in our ideas. The result is that we now refer to many mundane and uninteresting aspects of the business as being strategic, when they are really only small pieces of the overall business strategy. 
So then, what is a strategy? Being clear about what a strategy is will help us understand more clearly what a strategy is not. Well the word strategy originally comes from the Greek word strategos, meaning the art of the general. In other words, the origin of strategy comes from the art of war, and specifically the role of the general in a war. In fact, there's a famous treatise entitled The Art of War that is said to have been authored by Sun Tzu, a legendary Chinese general, around the 2nd century BC. Strategists consider The Art of War to be one of the great masterpieces on strategy. 
In The Art of War, the goal is to win. Winning is good and losing is very, very bad. Can you imagine the great Hannibal saying something like, our strategy is to beat Rome? No. Hannibal's goal was to defeat Rome. His strategy was to bring hidden strengths against the weaknesses of his enemy at the point of attack to achieve that goal, such as crossing the Alps when the enemies did not believe he could. 
The general is responsible for multiple units that must work together to win the battle and the war. The way the general adds value to the battle is by providing high level orchestration and vision. That is, he can see what the field commanders cannot. Great generals think about the whole, and they work to coordinate all the necessary pieces, even sacrificing some pieces when necessary in order to ensure that the overall goal is achieved. 
We sometimes think of business as modern day war. But the casualties are more frequently investor pocketbooks rather than human lives. The challenge of the executive is similar to the challenge of the ancient general. The modern day executive needs to develop a set of complex tactics and activities that lead to a victory. 
So how do we know what our strategy is? Or, if we do not have a strategy, how do we formulate one? A good strategy provides clear and concise answers to four key questions. First, where do we compete? In other words, what competitive arenas or markets will we be active in? We define markets as industries, product markets within those industries, and geographic markets. 
Second, what unique value do we bring to win in those markets? In other words, why do our customers choose our products and services when they could have chosen the products and services of any competitor out there? Our unique value could be cost or differentiation, which includes image, customisation, styling, reliability, et cetera. Third, what resources and capabilities do we utilize to deliver that value? Do we have exceptional human capital, superior technology, unrivaled network connections, or a unique reputation? 
Resources generally refer to the things we have in our tool box. These things can be tangible, such as a diamond mine or an oil field, or they can be intangible, such as a reputation. 
Capabilities generally refer to the things that we can do or our ability to use the things in our tool box. 
Fourth, how do we sustain our ability to provide that unique value? Are there barriers to imitation? Are their factors that keep our competitors from being willing or able to replicate the value we create for our customers? This last question focuses on understanding what factors allow us to continue to win over time. 
So one example of a clearly defined strategy comes from Ikea. Ikea sells relatively inexpensive contemporary Scandinavian style furniture and home furnishings to primarily young white collar customers all over the world. By being the first furniture retailer to put stores in every major country, Ikea has greater scale than local competitors. The choice of markets has helped Ikea offer their unique value propositions of inexpensive fashionable furniture. 
Ikea sells this furniture in a fun and low pressure show room, where order fulfillment is usually immediate. Ikea is able to sell inexpensive stylish furniture because they've developed excellent design capabilities for inexpensive Scandinavian design. But perhaps even more important is the fact that products are designed to be manufactured by suppliers using mass production techniques and then shipped in flat boxes. 
The flat boxes require that final assembly is done by the final customer. But this dramatically drops shipping costs. Because shipping costs are so low, Ikea suppliers can manufacture furniture in high volumes and ship it around the globe. The complex interdependence of ikea's strategy makes it difficult for competitors to imitate because they don't design their own furniture, and their suppliers don't manufacture furniture in high volumes and ship in flat boxes. To imitate Ikea, they would have to completely change the way they design, manufacture, and ship their furniture. 
Note that we learned what Ikea does, but we also learned what Ikea does not do. Ikea does not compete in the high end furniture business. Ikea does not try to provide high levels of service or customization to customers. Ikea designs most of its furniture, but does not try to manufacture its products. Thus, in addition to clearly articulating why we win with customers, a really good strategy also provides a clear boundary line signaling what we do not do. 
It is also important to note that what we've discussed briefly over the last few minutes is not in any way intended to be comprehensive. And there are many important perspectives that are excluded. For example, Henry Mintzberg, one of the most well-respected business strategists of our day, would want to emphasize the important differences between an intended strategy, an emergent strategy, and a realized strategy. He would want you to know that sometimes strategy is really more about what you actually do rather than what you intend to do. That is, your real strategy emerges as you do it and may not line up with your plans. 
Other strategists would not want me to leave out the importance of staging or timing. You may have a great plan, but if you execute the plan with poor timing, it may fall flat. To be successful, you also need to have a well-orchestrated set of timed steps in order to win in the marketplace. 
In conclusion, since we cannot adequately cover every expert's opinion in just a few minutes, I really want to focus your attention on the four questions we discussed before. As you strategically analyze companies and/or develop your own strategies, you need to have compelling answers to these four questions. First, where do we compete? Second, what unique value do we bring to the table in those markets? 
Third, what resources and capabilities do we utilize to deliver that value? And fourth, how do we sustain our ability to provide that unique value? When you have these answers, you'll be well on your way to articulating a clear strategy.

Google - Year In Search 2014
In 2014 we searched trillions of times. What do these searches say about us? 
We search for hope more than fear, science more than fiction.
We search for things we love And for greatness.
We search to make sense.
BARACK OBAMA VOICE OVER:"Here's what gives us hope. The world knows how to fight this disease."
We search to remember. We search to be inspired.
JUSTIN TIMBERLAKE: "Here we go, ready?"
WOMAN 1: "Did you hear those words?" 
WOMAN 2: "Yes!"
MAN VOICE OVER: "Just rendezvousing with this comet is an extraordinary thing. We're going to make discoveries that no one's imagined yet."
Search on.

ACTOR IN COMMERCIAL: Unmistakably masculine. Just for man. Roman. Man. Mens. Man. Man. 
ISAIAH MUSTAFA: Hello, ladies.
NARRATOR: This is one of the most successful marketing campaigns ever and there is a key reason why. We can attribute its success not to the content, but instead to the audience they target.
ISAIAH MUSTAFA: Look at your man, now back to me, now back at your man, now back to me. Sadly, he isn't me, but if he stopped using lady scented body wash and switched to Old Spice, he could smell like he's me.
NARRATOR: The man, your man could smell like a campaign was a big risk for Old Spice, the biggest shift in their marketing history. In a surprising move, the company targeted women to sell a product for men. Early American Old Spice was founded in 1937 and their first demographic was women. The founder William Lightfoot Schultz was inspired by his mother's potpourri. Demand for men's fragrances was low because body odor was long considered by many as a sign of masculinity. But, throughout the early 20th century, companies realized that they were not reaching 50 percent of potential customers and began marketing to men without much success. Advertisers got their break with the effects of the depression in the 1930s. Men lost their jobs, their pride, and the sense of masculinity. Deodorant companies offered a way to get it back. Old Spice was on the forefront.
In 1938, Schultz launched Old Spice for men. But, how did they define their form of masculinity? Sailing. They decorated their packaging with historically formidable ships like Graham's Turk and Friendship. During World War II, Schultz transformed his factory into a military production facility. Old Spice aftershave, then, became the scent of choice for American soldiers abroad. Therefore, globally defining the scent of a masculine man. With the advent of television, Old Spice was able to more directly link their scent to the concept of manliness. 
ACTOR IN COMMERCIAL: Why do so many single men use Old Spice aftershave lotion? Well, let's see. There's Julie and Karen, and Peggy, Joel.
NARRATOR: Into the 1970s, they doubled down. 
ACTRESS IN COMMERCIAL: There's no question about it. Men who wear Old Spice really understand what girls like. 
ACTOR IN COMMERCIAL: Girls like it. Is there a better reason to wear Old Spice?
NARRATOR: Subtle, huh? But, this worked. In the 1990, Old Spice sold to Procter and Gamble for $300 million. Despite new ownership, Old Spice marketing was more or less the same as it had been for the previous 40 years. They had a legacy on their side and a consistent older consumer base, but they were struggling to reach the younger demographic. With the new millennial consumer, this struggle became a nightmare. Here's a new deodorant called Axe, spray like this to stay fresh all day. Axe Body Spray turned to the men's grooming market upside down. They successfully sold to the coveted 15-25 demographic with edgy commercials depicting Axe coated regular guys getting the girl. It's the same formula Old Spice used for decades, but amplified. Old Spice just couldn't shake their old school reputation and it only got worse for Old Spice. Soon, the men's grooming market was crowded with competitors like Dove for Men, Nivea Men, Suave Men.
Following Axe's success, these once gender neutral brands attacked the newly profitable male market. Old Spice tried to keep up and released a largely unsuccessful swagger campaign. Old Spice was falling further out of favor. They had to rebrand, so they looked to the big guns. Wieden and Kennedy is an American advertising agency responsible for some of the most memorable marketing campaigns in recent memory. 
[David Vinjamuri, Marketing Professor at NYU]
DAVID VINJAMURI: Wieden and Kennedy's an iconic agency. They really stayed independent when a lot of agencies were getting sucked up. It was reflected in the kind of creative work that you see in this campaign. 
NARRATOR: With the help of Wieden and Kennedy, Old Spice decided to do a 360 rebranding and the older a brand is the harder it is to change consumers perceptions. To shake that perception, Old Spice really had to step out on a limb. 
DAVID VINJAMURI: This is classically almost impossible to take something that's perceived as a product for my grandparents, dated, not current, not interesting. But, the advantage is that frees you because you really don't have anything to lose at that point. 
NARRATOR: Luckily, Wieden and Kennedy had a plan. P&G's own research had uncovered a surprising statistic. Sixty percent of men's body washes were actually purchased by women. They had their new target consumer. They needed to find a sexy, confident, hyper-masculine, but maybe most importantly, funny lead character. They found that in Isaiah Mustafa. 
DAVID VINJAMURI: They picked somebody who's very relatable, funny, intelligent, and they played off of the stereotypes of a pro-football player and he wasn't that at all. He was actually engaging and easy to relate to.
NARRATOR: They had their audience, they had their man. Now, all they had to do was implement it. The Super Bowl is the Mecca for advertisers. Unilever announced it would be launching a big campaign for Dove Men in care body wash for the Super Bowl in February. Old Spice decided to directly challenge that campaign, but without airing a TV commercial. Instead of spending money on the Super Bowl itself, Old Spice surrounded it, and to do that they looked to the still young sleeping giants. Social media. They targeted millennials where millennials lives. "The man, your man could smell like" first appeared on YouTube and Facebook a few days before the big game, and it worked. On day one, the videos were seen 5.9 million times on YouTube, that's more than Obama's victory speech after 24 hours. On day two, Old Spice had eight out of the top 11 most popular videos on the entire Internet. On day three, the campaign hit 20 million views. In one month, Old Spice became the number one all time most viewed brand on YouTube.
The campaign was a cultural phenomenon and Mustafa was the face. He was everywhere, doing interviews on Good Morning America, The Today Show, Oprah, and Sports Center. But, for Old Spice, this virality needed to pay off. What's the use if it didn't get these millions of viewers to actually purchase the product? By May 2010, Old Spice sales were up 60 percent. By July, a 125 percent, an all time high for the brand. They were the number one brand for men's body wash. Old Spice took a big risk and with help from W and K, its risk paid off. It completely reinvigorated its brand and came out looking 50 years younger. In the process, unearthed previously untapped market.
Today, they're still marketing men's body wash to female consumers. In the summer of 2018,
Old Spice launched its She Nose Best campaign, which showcases the influence women have on guys important life decisions, and it looks like this one's working too. Let us know what you think in the comments below and please like and subscribe.

STEPHEN CURRY (VOICEOVER): Day in, day out, day in, day out, day in, day out, day in, day out, day in, day out, day in, day out, day in, day out, day-- day in, day out.

-Dear candidate, thank you for your application to our Ballet Academy. Unfortunately, you have not been accepted. You lack the right feet, Achilles tendons, turnout, torso length, and bust. You have the wrong body for ballet, and, at 13, you are too old to be considered. 
[MUSIC PLAYING]

[Bill Davidson, VP and Founder’s Great-Grandson]
BILL DAVIDSON: 1903 is when we rolled out the first motorcycle from the original factory ship. Bill Harley and the three Davidsons had this dream to create two-wheeled transportation. And I'm just thrilled to be carrying on this strong culture, this strong brand, and the identity that Harley-Davidson has throughout the world. 
[Jill Giglio, Harley Davidson Dealer]
JILL GIGLIO: The phenomenon behind Harley-Davidson is nearly hard to explain. 
[Karen Davidson, Director and Founder’s Great-Granddaughter]
KAREN DAVIDSON: If I have to explain, you wouldn't understand. 
WOMAN 1: Harley-Davidson is freedom. 
MAN 1: Harley-Davidson is special, because it's a way of life. 
WOMAN 2: When I'm on the back of a Harley, I feel close to God. I feel close to Heaven. 
[Jim Harley, CIO at Harley-Davisdon]
JIM HARLEY: It doesn't matter what walk of life you're from, being on a Harley-Davidson motorcycle, you are part of one community. And that's just a really, really powerful experience. 
INTERVIEWER: What's your name? 
MIKE: Mike. 
INTERVIEWER: What do you do? 
MIKE: Call center rep. 
INTERVIEWER: What kind of bike do you ride? 
MIKE: '97 Fat Boy. 
MAN 2: Certified public accountant. Dyna Super Glide. 
WOMAN 3: Receptionist. 1,200 Sportster. 
[Bob Remme, IBM]
BOB REMME: Harley has found a way-- by using IBM portal technology-- to really serve their customers in a much more personal way. 
JILL GIGLIO: H-dnet allows us instant access to anything and everything to smoothly operate our business. 
[Dave Canquist, IBM]
DAVE CANQUIST: H-dnet provides superior service and support to that dealer channel so that they, in turn, can support the riders. 
JIM HARLEY: The dealership is spending less time from the computer and spending more time talking directly to the customer. 
[Andy Benka, Harley-Davidson]
ANDY BENKA: It is about staying close to your customers and showing them that you're a brand that lives with them. 
KAREN DAVIDSON: There's a loyalty to Harley-Davidson. There is a pride. 
BILL DAVIDSON: This is a lifestyle for these customers. And to see this on somebody's arm, it is a true testimonial that this is something they believe in, that they live, every single day. And that is so rewarding for us. 
[MUSIC PLAYING]

Chapter 5

NARRATOR: once the world's top automaker Volkswagen has fallen to number two. One reason the company admits it rigged 11 million Vehicles worldwide to cheat on emissions tests. Here's a breakdown of the Scandal blowby blow.
NARRATOR: A group of scientists at West Virginia University discovered that Volkswagen was using software in its diesel cars to cheat on clean air tests. The software detects when the car is being tested the engine then runs different making emissions seem cleaner than they ordinarily are. They find emissions are up to 40 times higher than legal limits. But the company repeatedly denies the claims to us officials.
NARRATOR: The US Environmental Protection Agency announces that Volkswagen was manipulating its diesel cars to score better on emissions tests. Volkswagen admits rigging half a million cars in the US to work around emission laws, but the company's problems are bigger than that. It admits the problem is global in scale affecting 11 million cars worldwide.
NARRATOR: Amid calls to fix the affected Vehicles VW halts the sale of diesel cars in the US. The CEO Martin Wintercorn Apologizes and resigns. He's replaced by Matias Müller, the head of VWS Porsche brand. Meanwhile Volkswagen is hit by endless lawsuits from customers upset that their cars have lost value because of the software.
NARRATOR: Volkswagen's German headquarters are raided by police in search of incriminating documents as German prosecutors investigate. Volkswagen says they are cooperating and anyone involved will face the full consequences. Days later the French and Italian offices are also raided.
NARRATOR: Plans are announced to start recalling the 8.5 million affected cars across Europe. The company says they will be fixed by the end of 2016. VW sees its recently won title of world's top automaker to Toyota.
NARRATOR: Michael Horn head of Volkswagen in the US testifies to us lawmakers blaming the Scandal on a few Engineers. Senior Management was not involved he says. After months of apologizing VW decides it's time to pay up.
NARRATOR: The company Forks over $500 each to owners of affected cars in the US the gesture cost Volkswagen $250 million. But for some customers it's no longer enough. They demand a buyback of the rigged Vehicles.
NARRATOR: Nine managers suspected of involvement in the Scandal are suspended by the company. Volkswagen says it will set up a fund to compensate owners tapping mediator Ken fineberg to decide how much each should get.
NARRATOR: Another exec is out. This time it's Michael Horn CEO of Volkswagen group of America, he resigns. Volkswagen reaches a deal to buy back or fix half a million Us cars involved in the emissions cheet.  
NARRATOR: The company says the price tag for the crisis is double its original estimate. It sets aside about $18 billion to deal with the cost of the Scandal. VW agrees to pay up to 14.7 billion to settle the issue. that's much more than any other automaker has paid for wrong doing.
NARRATOR: Most of that money will go to owners of the affected vehicles. In addition to compensation for lost value Volkswagen will have to either buy back or fix the cars. But this isn't the end of the story. The company still faces civil and criminal investigations.

Budweiser never disappoints with a Super Bowl commercial, and 2014 is no exception. "Best Buds" is perfect. Take a look.
["Let Her Go" by Passenger]
- [Whines] - [Nickers] ♪ Well, you only need the light when it's burning low ♪ ♪ Only miss the sun when it starts to snow ♪
♪ Only know you love her when you let her go ♪ ♪ Only know you've been high when you're feeling low ♪
♪ Only hate the road when you're missing home ♪ ♪ Only know you love her when you let her go ♪ [Horse snorts]
[Howls]
♪ And you let her go ♪
[Neighs]
♪ And you let her go ♪ ♪ Oh, whoa, ohh ♪ [Horses neighing] ♪ Well, you let her go ♪♪
[Barking]
[Neighs]
Beer, puppies, horses, best friends. Does it get any better? But is it the best Budweiser commercial of all time?
Hit us up and let us know. And while you're deciding, click right here to see David Beckham Uncovered. You voted and this sexy star bared it all.
I'm Brianna Baxter. Thanks for watching.

-Welcome home, buddy. 
-[SINGING] You and me, we were made for love. A lifetime is not long enough to show you what you mean to me. Ooh. I'll be waiting here for you, when you come home to me. 
-I'll see you later, buddy. 
[MUSIC PLAYING] 
[WHIMPER] 
-(SINGING) Ooh. 
-Hey, I'm sorry. I decided I shouldn't drive home last night. I stayed at Dave's. 
-(SINGING) Ooh. When you come home-- 
-I'm back. I'm back. 
---to me. 
-Yeah, I'm back.

NARRATOR: Spam is irritating, it can also be threatening, housing malicious malware, viruses and other cyber threats. Spam thrives because spammers profit from it. So, what do we do about spam?
NARRATOR: To start, Canada’s anti-spam legislation requires a “consent” and an “unsubscribe” option, making it harder for spammers to succeed. So what can you do to help us? Report spam!
NARRATOR: Canadians report thousands of spam messages to us every week. We use this information to investigate malware, false and misleading advertising as well as spyware.
NARRATOR: Each report of spam is valuable. They all form a piece of the puzzle that helps us go after the worst offenders.
NARRATOR: Violators can face severe penalties of up to $10 million dollars for each violation.
NARRATOR: Our main goal is to protect you and make spammers think twice about sending spam to Canadians. Together we can fight spam. To learn more, please visit:fightspam.gc.ca/src

LIZ: The most important part of my business is establishing customer trust.
JOSEE: My success depends on how secure my customers feel.
ED: My customers need to know they can trust me with their personal information.
NARRATOR: The Office of the Privacy Commissioner of Canada is responsible for protecting and promoting people's privacy rights. The Commissioner makes sure that businesses comply with PIPEDA, the federal private-sector privacy law. PIPEDA establishes the rules for how businesses handle personal information.
BERNARD: Does PIPEDA apply to my business?
NARRATOR: PIPEDA applies to most businesses across Canada except in Quebec, BC and Alberta where they have their own private sector laws. But even in those provinces, PIPEDA covers federally regulated industries, like transportation, telecommunications and banking.
ED: What do you mean by personal information?
NARRATOR: Personal information is more than just a name or address; it can be a person's age, ethnicity, medical information, credit card number or even income level.
JOSEE: How can PIPEDA help me?
NARRATOR: PIPEDA is good for your business because it gives you the information you need to protect your customers' personal information. If people know your business will respect their privacy, they'll bring you their business. It's a win-win situation.
FADI: I respect our customers' privacy, what can I do to ensure I'm covering all the bases?
NARRATOR: Check out our PIPEDA guide for businesses and organizations. It explains your responsibilities under the Act. You can find the guide on our website along with lots of other resources about good privacy practices, e-learning tools, fact sheets, guidance documents and videos.
JOSEE: Sounds a bit complicated, do most business owners have trouble complying?
NARRATOR: It's actually pretty straightforward. PIPEDA clearly outlines ten principles for protecting personal information.
LIZ: What exactly does accountability mean for my business?
NARRATOR: Accountability means that you need to make sure someone in your organization is responsible for protecting the personal information you collect and that you give that person the tools and support to do it right. Be sure to clearly explain why you're collecting personal information.
BERNARD: What's involved in getting customer consent?
NARRATOR: Do your best to make sure your customers understand how their personal information will be used and get them to agree to it. Don't collect more personal information than you need.
FADI: Can I use personal information for any reason that could benefit my customers?
NARRATOR: Only use personal information for the reasons you explain to your customer. Don't keep it any longer than you need it and be sure to dispose of it securely. Make sure that personal information is as accurate, complete and up to date as possible. Protect all personal information and do whatever it takes to keep it from falling into the wrong hands.
BERNARD: How can I show my customers that we take this issue seriously?
NARRATOR: Tell them about your privacy practices and policies, put up signs, post information on your website, write it in a newsletter.
LIZ: What if my customers ask me about their personal information?
NARRATOR: They have a right to see it so be ready. Develop a simple procedure for responding to requests and get back to them as quickly as possible. Let your customers know what they can do if they have concerns or further questions about how you handle their personal information. Visit our website to learn more about privacy rights and practices that can work for you and your customers. At the Office of the Privacy Commissioner of Canada, we protect and promote privacy rights because good privacy makes good business sense.

NARRATOR: chances are if you've been online. You've heard of cookies, but what are they really. 
It's kind of like your own secret recipe for the internet, they're just little bits of data that help websites and advertisers get insight on how you use the web. 
You let a site know what you like and they remember that information so they can make you something tasty the next time you visit. Not a bad deal just be careful what you're sharing before you go digging in. 
Learn when to keep your cookies to yourself so you can go boldly not blindly

ERICA JOHNSON: three longtime TD employees say they're under incredible pressure to meet quarterly sales targets that keep Rising.
PERSON 1: customers deserve to know what's being done to them at their institution.
ERICA JOHNSON: we've agreed to conceal their identities because they worry about losing their jobs. they say when customers approach the counter and punch in their pin.  a star appears on the teller's screen click on that the teller sees products and services the customer hasn't yet purchased. Products that help tellers reach their sales targets. They say tellers aren't always clear the products and services have fees attached. This teller demonstrates a common tactic for selling overdraft protection without mentioning the cost.
PERSON 1: you're checking has overdraft protection let me just activate that for you.  that's a a big one
ERICA JOHNSON: sure enough when we visit TD branches in Vancouver with a hidden camera…
PERSON 2: well, you're preapproved for overdraft protection I can activate that for you right now
ERICA JOHNSON:  no mention of the fee five bucks every time we dip into that line of credit. At this TD the employee suggests we sign up for a credit card we never asked for.
PERSON 3: here let me turn off some credit card info
ERICA JOHNSON: tellers who don't meet their sales goals can be put on a performance Improvement plan and eventually their employment may be terminated. Stressful even for this TD manager.
PERSON 1: I find myself waking up in the middle of the night I take back to sleep because I know I've got to explain why this teller is not edged 100%
ERICA JOHNSON: in the hundreds of emails we've received today
TD employees talk about the pressure to sell sell sell that unrealistic expectations are causing stress leave and ulcers.
LAURENCE BOOTH: We look to them to basically provide a service. We don't think of banks as I don't mean this pejoratively, but as uh secondhand car salese.
ERICA JOHNSON: on Parliament Hill the ndp's finance critic says mandating unrealistic sales goals is too much.
Alexandre Boulerice: targeting vulnerable Canadians to drown them more into depth, absolutely,  uh unacceptable
ERICA JOHNSON:  TD Bank declined to be interviewed in a statement it said giving tellers sales goals makes good business sense but that employee should never sell a customer a product that doesn't fill a need. ERICA JOHNSON, CBC News

[Words on screen read “Ethisphere: Good. Smart. Business. Profit. Global Ethics Summit]
[MUSIC PLAYING] 
[Cindy Moehring, Chief Ethics Officer, Walmart]
CINDY MOEHRING: We have to accept that we live in a very complex world, and that ethics and compliance programs these days are expected to be sophisticated. It's our job to figure out how to break that down and make the sophisticated simple and understandable by the business. So we spend a fair amount of time. Our lingo at Walmart is striving for excellence, which in part means you are constantly re-examining what you are doing and how you are doing it, and never accept the status quo. And if you can figure out how to make a process more efficient, with less steps in it, to actually get to execution, that's a huge step forward. 
[MUSIC PLAYING]

[Words on screen read “Ethisphere: Good. Smart. Business. Profit. Global Ethics Summit]
[MUSIC SPEAKING] 
[Tony West, EVP Government Affairs, GC and Corporate Secretary]
TONY WEST: Whether we like it or not, we live in a time, increasingly, where corporations are looked to to solve the big problems that society has. And whether we acknowledge it or not, corporations don't operate in a vacuum. They don't operate by right. There is a social license that gives us the ability to operate in the communities in which we live, and work, and do our business. And you cannot earn that license every day if you are not acting in a way that is both responsible, that is sustainable, that enriches the ecosystem in which you exist. And at the core of that has to be what you call sustainable ethics. 
[MUSIC PLAYING]

[Words on screen read “Ethisphere: Good. Smart. Business. Profit. Global Ethics Summit]
TONY WEST (EVP Government Affairs, GC and Corporate Secretary): Think about what is necessary for the long term. You have to obviously, as a company, you've got to manage for the level of return, quarter over quarter, no question. But you also have to manage if you want to be a sustainable enterprise for the long term, for generations, for the duration of those returns over time. 
And at the core of that kind of growth, at the core of that kind of success, has to be this sustainable culture. Because that is a set of values. It's not a set of rules. It's a set of values, which every employee owns and has responsibility. But clearly rules can change. But these values, I think, would stand and persist regardless of the jurisdiction, regardless of the time. 
[MUSIC PLAYING]

 [Words on screen read “Ethisphere: Good. Smart. Business. Profit. Global Ethics Summit]
[MUSIC PLAYING] GEORGIA NELSON (Board Member, CH2M HILL Companies): I think about it in two ways. First off, I think diversity really impacts decision making. And good decision making, to me, is good governance. And so you have a robust group of people, a different group of people around the table. You have a robust discussion. I think the quality of decision making is really enhanced by diversity in the board room. 
The second point I wold like to make is around innovation. Having diverse folks around the table really drives you to let go of conventional thinking, to get out of traditional boundaries. And you begin to think about things in a different way. And by doing that, innovation grows and prospers, and that is not just in your policies, and your procedures, and soft issues, but also in the thought of development. So I would leave you with those two thoughts. 
[MUSIC PLAYING]

[Words on screen “2014 World’s Most Ethical Companies www.ethisphere.com Insights from the 2014 World’s Most Ethical Companies”]
John Sullivan (Corporate Communications Manager at Aflac Incorporated): Well, ethics is a top-down procedure at any organization, but especially for an organization such as ours. We're an insurance company, which means that when a customer comes to us, or a potential customer comes to us, the first decision that they're going to have to make is, can I trust this company? 
We're not a car dealership. We're not a department store that when you purchase something, you walk out with that product. Aflac sells a promise. And that promise is that we will be there for you in your time of need. So really it's a piece of paper, and if a customer trusts us, then they are going to be much more likely to consider us for their insurance needs. 
Our CEO, who has been our CEO for 23 years now, has always had a saying. And that saying is that bad news does not improve with age. And what he means by that is, if something happens that could bring your ethics quotient into play, you need to get it out there. You need to be honest with people. 
Hiding it from the public is not going to work, especially in this day and age where everybody is a journalist on social media. So it's quintessential to our business and frankly any business that wants to protect its reputation to just be honest with people. It sounds so simple. And it's true whether it's here in the United States, whether it's abroad. 
Do the right thing. And if you do the right thing, not only will customers appreciate that. Shareholders will appreciate that. But it will also reflect upon your business. And it's vitally important in this day and age with the eyes upon you, no matter what business you're in, to simply do the right thing.

Chapter 6

FOCUS GROUP LEADER: Anybody? Anyone at all? Any thoughts? Again, we are talking about the cover, the cover of the book. 
GUY: I like it. 
FOCUS GROUP LEADER: You like it? Great. Terrific. Anything more specific? 
JENNA: I hate it. 
FOCUS GROUP LEADER: Hate it? Jenna hates it. 
GUY: Actually, I didn't really like it. 
FOCUS GROUP LEADER: Guy has changed his opinion almost immediately. 
GUY: Yes. 
ANTHONY: I'm a little confused, because you're asking me to react to a book cover. It's just the same words repeated over, and over, and over again. 
FOCUS GROUP LEADER: It's the title of the book, Truth in Advertising. David, question, yes? You don't have to raise your-- 
DAVID: Where's the bathroom? 
FOCUS GROUP LEADER: I think it's down the hall on the left. 
DAVID: Oh, I'm going to need that later. 
FOCUS GROUP LEADER: So the title of the book, Truth in Advertising. Anthony, does that sort of bring up any emotions for you, any reactions? 
ANTHONY: If I'm being honest-- 
[SCREECHING] 
[David slowly pulls a plate of cookies across the table towards him]
--boredom, confusion, just feelings, if I'm being honest. 
FOCUS GROUP LEADER: Honesty, yes. Honesty is great. Those are some more negative, more negative emotions generally. Jenna, if you had to sort of describe-- 
JENNA: I don't like red. It reminds me of my mother-in-law. She was a really horrible person. She liked red, so I just don't, and now she's dead, so-- 
FOCUS GROUP LEADER: Anything more relevant to the-- 
GUY: I agree with Jenna. 
FOCUS GROUP LEADER: About her mother-in-law? 
GUY: About everything. 
ANTHONY: Truth in Advertising, right? What does that mean? 
FOCUS GROUP LEADER: That's a great question. Do you have any reactions, David, to the title? 
DAVID: Well, I see truth. But I'm thinking lies. 
FOCUS GROUP LEADER: Yes, in a sense. In a sense, the novel is about lying. 
JENNA: My ex-husband was a liar. 
FOCUS GROUP LEADER: OK. 
ANTHONY: Advertising is about lying though. 
FOCUS GROUP LEADER: It is. And the main character works in advertising. He's a copywriter in New York City, and we sort of follow Finbar Dolan through these difficult complexies-- 
ANTHONY: Now, what's that? 
FOCUS GROUP LEADER: Finbar Dolan. 
ANTHONY: What is? 
FOCUS GROUP LEADER: Finbar Dolan. 
ANTHONY: Yeah. What is that? 
FOCUS GROUP LEADER: The main character. 
GUY: It's a girl? 
FOCUS GROUP LEADER: It's a 40-year-old man. 
DAVID: It's a river elf? 
FOCUS GROUP LEADER: It's not an elf. 
JENNA: That's quite a name. 
ANTHONY: That's also a girl's name. 
FOCUS GROUP LEADER: Great. So he's sort of estranged from his family, so there's complexities there. And he has dying father, so he deals with that, and then this sort of disillusionment with the industry and his career. And then sort of all these complex themes that are addressed throughout the book, relatable themes. Yes? 
ANTHONY: If I can stop you. 
FOCUS GROUP LEADER: Yes. Absolutely. 
ANTHONY: It feels like a book that lacks a clear focus. 
FOCUS GROUP LEADER: I mean, it would be hard to summarize any novel in just a few words. 
ANTHONY: Man-eating shark terrorizes a peaceful beach community. 
JENNA: Jaws. 
DAVID: A troubled teen spends Thanksgiving break wandering the streets of New York City. 
GUY: Catcher in the Rye. 
ANTHONY: There you go. 
FOCUS GROUP LEADER: That's a good book. 
FOCUS GROUP LEADER: This is also a book. 
GUY: I've got one. Sex. 
JENNA: 50 Shades of Grey. 
FOCUS GROUP LEADER: OK. 
[LAUGHING] 
FOCUS GROUP LEADER: But it's a book that we're talking about. 
GUY: Oh, yeah. 
FOCUS GROUP LEADER: The book right now that is-- so this book-- 
DAVID: I wonder if they're going to make it a movie. 
MAN 1: This is good, right? 
JOHN KENNEY (AUTHOR): I think they're really getting it. 
FOCUS GROUP LEADER: Back to this book, Truth in Advertising. 
ANTHONY: So I have a question. 
FOCUS GROUP LEADER: Yeah? 
ANTHONY: Is that how big the book is going to be? 
FOCUS GROUP LEADER: This is a poster. 
ANTHONY: Personally, I would never read a book that big. 
FOCUS GROUP LEADER: That's a mock up. I mean, the real one's going to be book sized.

[Footage of Barack Obama giving a speech. There is a graph overlaid on top of this footage showing the real time aggregate feedback of a focus group viewing the video: Democrats (represented by a green line) and Republicans (represented by a red line). At minute 45 in the speech Democrat approval is at 53 and republican approval is at 49.]
BARACK OBAMA: In the end, there is no program or policy that can substitute for a parent, Both Republican and Democrat members of the focusable group react favorably to this part of the speech, which republican’s approval climbing faster than democrats] 
for a mother or father who will attend those parent-teacher conferences or help with homework, or turn off the TV, put away the video games, read to their child. 
[Republican approval is at 85 and Democrat approval is at 71]
[APPLAUSE] 
I speak to you not just as a president, but as a father when I say that responsibility for our children's education must begin at home. [Republican approval climbs to 95 and democrat approval climbs to 85]. That is not a Democratic issue or a Republican issue. That's an American issue. [Republican stays at 95 and democrat approval climbs to 87].
[APPLAUSE]

Chapter 7

NARRATOR: A ranger never takes the easy way out.
[MUSIC]; “You're reaching deep inside you, more things you never known”
NARRATOR: That's why getting into the Rangers is tough and the training is tough. So it makes me feel like I'm part of something, really special, and I'm not the only one.
[MUSIC]; “You can do it in the army”

NARRATOR: we asked real people if they'd help us with an experiment for FabreZe fabric refresher. They agreed.
NARRATOR: Relax, take some nice deep breaths
MAN:  what do you smell?
WOMAN 1: lilac
MAN: clean
WOMAN 2: there's something that's really fresh
WOMAN 1: A little bit beachy
MAN 2: Like children's blankets
MAN 3: Smells like home.
NARRATOR: Okay take your blindfolds off.
WOMAN 1: Oh my God
WOMAN 2: Oh my God. Hello???
NARRATOR: And now new and improved for Breeze fabric refresher with up to two times the odor elimination. So you can breathe happy. Guaranteed.

NEWS ANCHOR: An American tradition, the trip to the mall may be living on borrowed time.  Many of the country's 1200 malls are going under thanks in part to online shopping, in part to the Great Recession.  But a few are still thriving by reinventing themselves.  Here's Mark Strassmann.  
MARK STRAUSSMANN: The Woodville Mall is coming down.  The retailing fixture in Toledo, Ohio since 1969 closed three years ago.  The roof fell in.  First on its allure for customers and then on the decaying structure itself.  
DANE BIHN: It was condemned, it was unsafe.  
MARK STRAUSSMANN: Dane Bihn's overseeing the demolition.  For him, this job is personal.  
DANE BIHN: Yeah, I used to come to the mall, sit on Santa's lap, go see a movie, have a hot sam.  You know, do the things that kids do when their parents take them to the mall.  
MARK STRAUSSMANN: The classic American mall with its chain stores and food courts began a golden age of retailing in the 1950s.  That era is over.  No new enclosed mall has been built since 2006.  
MARK STRAUSSMANN: How many do you think will be around in ten years, 20 years?  
MAN: Probably 50 percent of them will be gone.  
MARK STRAUSSMANN: What you're saying is for some of these malls to survive, it can't be cookie cutter anymore.  
MAN: No, cannot.  You got to give them a reason to spend the time to go and make the effort to go there.  And the only way they're going to do that is if there's a fun thing going on.  
[ Music ]
MARK STRAUSSMANN: This is Plaza Fiesta in Atlanta, a once struggling regional mall.  It's now a Mexican town square, 280 mostly family stores and more for the city's booming Hispanic population.  
JOSE LEGASPI: This is a bus station, this is the ticket sales for the buses.  
MARK STRAUSSMANN: Jose Legaspi transformed Plaza Fiesta and nine other dying malls across the country, all of which cater to Hispanic communities.  4.4 million people visited here last year.  They found benches to sit, stores they want, services they need.  
JOSE LEGASPI: They will spend a lot more money, right, the whole family will eat.  And then, they'll buy their shoes.  They'll do the dentistry because we have dental offices.  They'll go and do their medical and they'll do their groceries.  So it's one-stop shopping in every sense of the word.  
MARK STRAUSSMANN: Legaspi says all struggling malls need to learn who their local customers are and what they want.  And cookie cutter malls like Woodville will keep crumbling.

[MUSIC PLAYING]
[Steve Bogie, Managing Director, Operations IT at Air Canada]
STEVE BOGIE: What's going on in the industry today that requires a transformation is a model that is fundamentally broken. 
[Lise Lefaive, Portfolio Manager at Air Canada]
LISE BOGIE: Air Canada is addressing the ability to deliver a great customer experience by offering our service directors an application that lets them know who is on board the aircraft, what their trends are, what they need, and what they're looking for from us so that they can be proactive in that customer engagement. 
[Keith Dugas, Excellence process & Technology at Air Canada] 
KEITH DUGAS: We were given a fortunate opportunity to work alongside Apple and IBM to develop a cabin electronic logbook. We get a heads-up of what's broken before the aircraft arrives, whereas in the past, we've had to wait for the aircraft to arrive, pull out the logbook, and then see what they've recorded. 
[Captain Jason Brown, Manager of Flight Technical at Air Canada]
CAPTAIN JASON BROWN: I believe the importance of flight operations in the flight deck is really the safety of the passengers. So by bringing together the weather data, the mobility platform data in real-time in flight, it's allowing Air Canada flight operations to transform and modernize themselves and bring us to a new level of safety and reliability. 
STEVE BOGIE: What excites me most about what I do is the ability to make the business better, take advantage of technology, watch the reaction from our passengers as they grow and they come back, and the light in the employees' eyes as we enable the organization. 
[MUSIC PLAYING]

Chapter 8

[Background Discussions]
KATIE COURIC: Here we are, Howard Schultz.  When you look around this place, what do you see?
HOWARD SCHULTZ: I see a deep sense of community.  We intended from day one, to really, kind of build a third place between home and work.  Really, I think, at a time in America where people are hungry for human connection, we're providing that. 
KATIE COURIC: Wow, that's a tall order for a coffee shop unless you're Howard Schultz, the CEO of Starbucks. 
HOWARD SCHULTZ: If we can bring you the world's best, healthy energy bar, and you know it's from Starbucks, that's accedo to the brand.
KATIE COURIC: He's a born salesman. A cheerleader on caffeine.  
HOWARD SCHULTZ: My promise for you is I will never ask anything of you that I am not asking of myself.  Happy anniversary, Starbucks!
[Crowd Cheers]
KATIE COURIC: Happy 40th anniversary, to be exact.  Here, there, and everywhere. 
[Text on screen showing locations of Starbucks coffee shops: Los Angeles, Fukuoka, Japan, Mexico, Karakow Poland, Germany, and more]
HOWARD SCHULTZ: We were never perfect.
KATIE COURIC: So, what's up with the apologies? 
HOWARD SCHULTZ: We made mistakes.  And we will make more mistakes.  
KATIE COURIC: Here's what's up.  After leading Starbucks through grande sized growth in the 80s and 90s, Schultz stepped down as CEO in 2000 to focus on global expansion.
HOWARD SCHULTZ: People around the world, they want the authentic Starbucks experience.  Growth became a strategy as opposed to an outcome.  
KATIE COURIC: So, it was all about growth.  
HOWARD SCHULTZ: It was.  
KATIE COURIC: Not about quality.
HOWARD SCHULTZ: It wasn't about quality.  And more importantly, it wasn't about the customer or the partner.  
KATIE COURIC: Partner, by the way, is Starbucks speak for employee.  It all came crashing down, starting in 2007.  Starbucks' pricey frappuccinos and lattes didn't mix well with the failing economy.  Do you think that the company and you had a tin ear about what people were experiencing during the height of the recession?
HOWARD SCHULTZ: No.  
KATIE COURIC: You know, that maybe they couldn't spend 5 bucks on their coffee every day?  
HOWARD SCHULTZ: Katie, it's not 5 bucks.  It's not 5 bucks.  Let's get that right.  It's $1.50.  
KATIE COURIC: But no, for these fancy coffee drinks that people are addicted to, it's a lot more than $1.50, Howard.  
HOWARD SCHULTZ: Okay, okay.  I did not.  We did not have a tin ear.  Remember--
KATIE COURIC: A little bit?  
HOWARD SCHULTZ: The entire country, every company was going through a financial crisis.  Starbucks was not alone.  Primarily, we wanted to remove all of the physical barriers between us and our customers so that there was direct sight line.  They could see everything.
KATIE COURIC: Schultz says there's a renewed focus now on the product that puts Starbucks on the map: coffee, which puts the pressure on Andrew Linnemann, the Director of Coffee Quality.  
ANDREW LINNEMANN: I can't imagine a day without coffee.  I can't imagine.  
KATIE COURIC: Every day in the tasting room at the Seattle headquarters, Linnemann and his team slurp.
[Slurps]
And I'm sorry to say, spit their way through dozens of cups.  Taste-testing batches from around the world.  
WOMAN 1: Decent acid, good medium body.  
KATIE COURIC: To them, it's a bit like fine wine.  
ANDREW LINNEMANN: It's challenging because it's already a very intense flavor profile.  There's a lot going on.  And it's really hard to differentiate between coffees.
KATIE COURIC: These days, Howard Schultz and Starbucks are, again, pushing ahead, full steam.  What is this? 
HOWARD SCHULTZ: We discovered a piece of equipment that literally makes the best cup of brewed coffee you can find.  
KATIE COURIC: Schultz is back in salesman mode.  Showing off a new brewing system that he claims makes the ultimate cup of coffee.  Now, how much would this cup of joe cost me, Howard?
HOWARD SCHULTZ: Kelly, what do we charge for this coffee?  
KELLY: I think it's about 30 cents more than the traditionally brewed coffee.  So, that would probably be about, I'm going to say, 2.75? 
KATIE COURIC: 2.75?  
HOWARD SCHULTZ: Not 4 or 5 dollars.  
KATIE COURIC: Okay, but for all the coffee talk, have you seen the new logo?  There's something missing.  That's right, it doesn't say coffee or Starbucks, for that matter, which means Starbucks can sell tea or nutrition bars or just about anything else at your neighborhood grocery store.  Well, why not just put Starbucks coffee on the coffee and Starbucks other things on the other products?
HOWARD SCHULTZ: That would be more confusing, Katie.  That's why you're in news and not in marketing.  
KATIE COURIC: [Chuckles] Oh, okay!  Do you want to just take over the world?  
HOWARD SCHULTZ: No.
KATIE COURIC: Sounds like it!  Can we have, like, Starbucks tennis balls?  
HOWARD SCHULTZ: No, we're not doing any of that.  We're staying within our core, but there will be adjacent products that I think will be complementary to the coffee.  That's the story.
KATIE COURIC: And that's Howard Schultz's story.  After the bitter and the sweet, he remains a man on a mission.  A mission in which coffee is just the beginning.
HOWARD SCHULTZ: I think at the end of the day, we were never in the coffee business serving people.  We were in the people business serving coffee and understanding them.
KATIE COURIC: That sounds like a bumper sticker. 
HOWARD SCHULTZ: Well, but it's true.  
KATIE COURIC: Do you have that embroidered on a pillow at home?
HOWARD SCHULTZ: [Chuckles] No, but it's true.  It's true.  We're in the business of humanity.  
BARISTA: Coffee and double tall non-fat cappuccino?

Old person: you getting 550 bucks back on your return.
Young person: can I get that now? 
Old person: we could try. I got a good feeling about, good feeling.
[Music]
Old person: oops!
Background voice: CRA can't get you your refund until March block can get it instantly

Woman: employment status? 
Man: well, not all prisons have bars. Some have casual Fridays.
Woman: okay. Well, you're getting an instant refund.
Background voice: People are complicated our experts make taxes simple.

Background voice: 378 loads, that's how much laundry Consumer Reports Pat slaven did to find the best laundry detergents. She tested more than 50 liquids, powders and pods. also in the tests two laundry systems that claim to clean without detergent the $300 pure wash, and the $400 wash it. Both mount on the wall above your washer and inject ozone into to your wash water. All the detergents and the laundry systems were rated on how well they eliminate a variety of stains. 
Pat Slaven (Textile engineer): We have a pallet of soils and stains that include blood, wine, dust, sebum which is ring around the collar; tea, chocolate, ice cream, grass.
Background voice: The detergentless systems couldn't handle the stains they were only slightly better than just plain water. And when it comes to detergents some didn't shine including Tides lower priced simply clean and fresh far better and top rated Tide's Ultra stain release a liquid and Tide plus bleach alternative a powder. Both are for high efficiency machines. The test found some other winners that are close behind and work in any type of machine. Members Mark ultimate clean from Sam's Club and Whisk deep clean. They cost about half as much per load.

-I'm Dr. Aaron Perlut of the American Mustache Institute. When the Declaration of Independence was adopted in 1776, Americans understood that we were endowed by our creator with certain unalienable rights. And among these are life, liberty, and the pursuit of happiness. 
Part of these was also the freedom from unfair taxation. And that's why on Presidents' Day 2012, the American Mustache Institute will launch its Million Mustache March in support of the STACHE Act Legislation, which provides an annual $250 annual refund to people of mustached American heritage. You see, the declaration's only failing was that all men are not, in fact, created equal. 
Science has demonstrated that mustached Americans are 38% better looking than our clean shaven counterparts. But those good looks come at a price in the form of American made grooming accouterments, facial hair coloring solutions, mustache wax, bacon, and Hall & Oates records. To join the million mustache march by visiting stacheact.com. And for everyone that joins, H&R Block will make a charitable contribution to Millions from One, which provides clean drinking water to those who cannot provide it themselves. I'm Dr. Aaron Perlut of the American Mustache Institute, and I approve this ad.

[Music]
Man 1: thank you very much
Woman 1: thank you
Woman 2: thank you
Woman 3: merci boku
Woman 4: gracias
Woman 5: arigatou gozaimashita
Different people: Thank you. Thank you. Thank you. 
[Music]

Chapter 9

Outdoor chain REI announced Monday its stores will be closed on Black Friday. CEO, Jerry Stritzke told employees in e-mail, "While the rest of the world is fighting it out in the aisles, we hope to see you in the great outdoors." He's here with us in studio 57. Great to have you here.
Thank you.
We should clarify. You'll take their money online, right?
Actually, we have a takeover screen that covers up our online site and encourages them to opt outside as well.
And why are you doing that?
You know, it's a, we started thinking about how do we be authentic as an outdoor company on Thanksgiving or the day after Thanksgiving. And really came to the conclusion that, for us, encouraging people to get outside was maybe one of the most authentic things we could do. And we're passionate about it.
So you're saying there's more to be gained from brand identity and the values of the company than there is whatever sales you might have on Black Friday?
I think it's important for brands to always be true to who they are. And for us, encouraging people to get outside, particularly on a holiday like Thanksgiving, we do believe that is an important message.
Now, was there much resistance within the company?
Oh, no. I would say there was, maybe if there was a resistance it was maybe me, like, are you kidding? Yeah, but, no.
By yourself?
Yeah. It was very enthusiastically embraced.
That's what I was wondering, Jerry. Because I think a lot of people are looking at you going, what's Jerry smoking? And if it wasn't your idea, whose idea was it? When you first heard the idea, did you think, great? How did it come about? Are you guys sitting around a table?
He's smoking the great outdoors.
Smoking the great outdoors.
Yeah, it was nine months ago and gave the team the challenge of figuring out, how do we do something authentic? They came back with this idea. I have to admit it was a bit shocking. But the more we thought about it, the more excited we got about it as an idea that, one, our associates would love. But, two, as a co-op, we have five million members that love the outdoors. We just really believed that they would get into it as well.
Okay, but you had such a good year that you can take off one of the busiest days of the shopping year?
We are having a good year. Actually, this is our second year of double digit growth and-
That's what we call a good year.
Yeah, that's a good year. But I do believe that, as a company, the more we're authentic about what we're about and we actually spend a lot of time taking people to the outdoors.
Will you do ads about this?
Yeah, we took an ad today mainly just letting people know that we're closed. We don't want-
The idea is about authenticity and brand identity.
Yeah, very much so.
Do you think this is also just, it's become too cluttered, kind of the marketplace on Black Friday? Everybody's open at, you know, what's like, five in the morning or all night to get the TV on sale at Kmart. We always show the pictures of everybody rushing the aisles.
People stampeding in, yeah.
Yeah. And so this was a, not only a marketing decision rather than just too like a brand decision?
I would say it was more the brand, but I think your point is a valid one from a brand perspective. The contrast between I think what is happening today on Black Friday and then I think the joy associated with being outside is rather stark. So it's a particularly good day to make the point about how powerful it is to get outside.
Now, Jerry, the skeptics that say, Jerry, this is just a PR ploy on your part because we're all talking about it, you sound all nice and fuzzy. That we want people to get out and enjoy the outdoors, but really could be a huge PR ploy. Some people could say.
Well, I would be a little different. I actually don't expect to see a bunch of other retailers closing on Black Friday. You know, so the skeptics, you think about that for a bit.
You want attention to the fact that you're doing this.
We do and I think that attention really creates the platform to talk about the power of getting outside.
Well, I think it's great. I think it, I do.

Hi, I'm Dave Walker and this is Akron branded
[music on the background]
And my early work on branding I developed what's called a brand identity model and that's now been relabeled, rebranded to the brand vision model. 
And I just want to talk about a couple of key elements of that. And one is that brand is not a three word phrase. 
So, you start out by saying what do you want your brand to stand for in the minds of your customers and in your employees and others. 
And that usually turns out to be seven eight ten twelve different attributes or associations. 
And then you say what are the three or four most important and those turn out to be the core and they drive most of the brand building programs, and they should be ones that really differentiate that really resonate and they're really something you can deliver or will be able to deliver in the future.
And then we add to that a brand essence which is a summary kind of statement that that motivates the whole brand vision. 
And some some days were better off without it because it it just distracts, it just just doesn't quick in a place. 
But when it does it can be very very helpful so that's the brand vision.

[MUSIC PLAYING]
TERI GAULT: Ah-ha! Cookies! 
INTERVIEWER: Teri Gault has one rule when she shops. 
TERI GAULT: I just can't stand to pay full price and I won't. 
INTERVIEWER: She describes herself as the queen of cheap. She took us along to Ralph's Supermarket. 
TERI GAULT: Nice to see you again. 
INTERVIEWER: Where she saved a bundle. 
TERI GAULT: So it was $49. 
CASHIER 1: Yeah, it's $49.60 and it's now $11.61 is your total today. 
TERI GAULT: Yay!
INTERVIEWER: Then she hits Staples. 
CASHIER 2: Out of 50? 
TERI GAULT: Yeah. 
INTERVIEWER: That's out of 50 cents. She paid 44 cents for $28 worth of office supplies. 
TERI GAULT: Thank you. 
INTERVIEWER: And who says there's no such thing...
TERI GAULT: Do you have any hot peppers? 
INTERVIEWER: ...As a free lunch?
TERI GAULT: Have a great day. 
INTERVIEWER: At Toys R Us, she got a whole bike for free. 
INTERVIEWER: How did she do it? As the founder of an Internet shopping site called The Grocery Game, she knows her way around coupons. 
TERI GUALT: I want to give you my Club Card. 
CASHIER 3: Of course. 
INTERVIEWER: But the real bang for the buck came from joining customer loyalty and reward programs which nowadays seem to be everywhere. 
TERI GAULT: I think that we've been programmed to expect loyalty or reward of some sort because it's a huge marketing trend right now. 
Everybody's doing it. And if you're not doing it, you're probably not up to speed.
INTERVIEWER: So holiday shoppers now expect not only to give, but to receive something in return. 
Three quarters of us have joined loyalty programs. Racking up airline miles, getting free shipping, free dog food, clothing discounts, all efforts by businesses to keep customers coming back. 
MARILYN CARLSON NELSON: These are the original stamp books.
INTERVIEWER: You can trace it all back to programs like Gold Bond Stamps which started in 1938. 
MARILYN CARLSON NELSON: People licked the stamps and put them in here. 
INTERVIEWER: Grocery stores gave out stamps based on how much you spent, then you redeemed the stamps for free stuff. 
MARILYN CARLSON NELSON: I remember wanting ice skates for some reason. And got ice skates from the Gold Bond Stamps, so-
INTERVIEWER: Marilyn Carlson Nelson is the daughter of the founder of Gold Bond Stamps, Curtis Carlson. Now she's the CEO. 
And Gold Bond Stamps have turned into the Gold Points Program with 11 million members. The concept hasn't changed. 
Build up points, get free stuff. 
MARILYN CARLSON NELSON: Sometimes people think that if they offer cash discounts, that that's very powerful. 
But there's something inspirational about saving for things that you particularly want. 
INTERVIEWER: So do points have more power than cash? More power than discounts? 
MARILYN CARLSON NELSON: We actually believe they do. 
CASHIER 4: Do you have a Petco card?
INTERVIEWER: At Petco pet stores, they believe that discounts will keep members of their P.A.L.S. program loyal. 
But there's something else that brought us here. Because if you really want to understand the psychology of rewards programs, you might want to take a look at rats. 
JACK ARONSON: So all of these reward programs, coupons, incentives, all of these can be traced back to fundamental work that any psych 101 student will know from BF Skinner. 
INTERVIEWER: Behavioral psychologist BF Skinner studied rewards systems by putting pigeons and rats in so-called Skinner boxes. When the animals pulled levers, they got rewards or not. 
The rat who got food every time he pulled a lever is a lot like the shopper who gets free shipping every time he buys something from Amazon.com or points every time he sits down to eat at TGI Fridays. 
He goes back again and again, expecting a reward. But take that reward away and eventually the person or the rat changes behavior. Jack Aronson advises companies how to set up loyalty programs. 
JACK ARONSON: What that means is when I say there's no longer free shipping January 1st, everybody who was attracted to your company because of free shipping is going to be alienated. 
Much the same way when the point systems stop, people don't want to interact with the companies anymore. 
Because you attracted them because of that offer, not because of who you were or what your company did.

[Background music]
Release!
Astronaut: I know the whole world is watching now… I'm going home now.
Background voice: Jumper away. Speed 725. Showing Felix at a stable descent. And Felix is back down to Earth safely. The new world record holder.

Chapter 10

REPORTER: It all starts here on the product design and development floor, where innovative ideas such as shatter-resistant wine glasses eventually become desired items on store shelves.
Give me some idea of the kinds of things that are designed here.
WOMAN 1: We design furniture, we design bedding, we design food, toilet tissue, and facial cleaners, and apparel, jewelry, shoes.
REPORTER: Why does it make sense for Target to actually design their own products?
WOMAN 1: Our competitive advantage is our design team. We start with the guest first and foremost. 
We spend a lot of time observing her and interacting with her or him to understand how she or he interacts with our products. 
And we take those leads back to headquarters, and we ideate and we brainstorm, and we develop prototypes.
REID PLUMBO: Like a piggybank?
STEPHANIE GRATTA: Mm-hmm.
REPORTER: Reid Plumbo, an aerospace engineer, and Stephanie Grotta, a landscape architect are just two of the 600 designers on staff.
REID PLUMBO: It all goes back to designing products that meet the needs of the consumer. We had performance characteristics that those had to meet. 
When we're here designing picture frames or bakeware, same thing. We have to apply math and science to meet those requirements.
REPORTER: And much of their product lines are Target brands that generate more than $10 billion in sales annually. In the U.S. and Canada alone, there are nearly 2,000 stores.
WOMAN 1: We want to create such a love and loyalty to our brands at Target that our guests will come back time and time again.
WOMAN 2: It is really, I think it is about connecting with people--
REPORTER: That brand love is openly discussed and developed in brainstorming sessions, patented, and then prototyped here in a 3D printing room onsite.
How much of a tool now is the 3D printing?
STEPHANIE GRATTA: It is essential for us to be able to get it off of the 2D screen and look at it in prototype form and tweak it, it is an important part of our process.
REID PLUMBO: We are there every day trying to make products that deliver awesome functionality, great style, at a really, really good price. And so I feel the weight of that every day.
REPORTER: Between home and apparel, Target designs 40,000 of its own brand-named items each year. But not every idea is successful.
Have either of you ever had a flop?
REID PLUMBO: Boy, that's a good question. I'm sure we've had actually each probably hundreds.
STEPHANIE GRATTA: Yeah.
REPORTER: Still, those failures are not deterring the company's focus on growing its customer base.
What do you think people want when they go shopping?
WOMAN 1: They're looking for incredible value and that's what we're all about is, you know, giving the guests the confidence that what she's buying at Target is on trend and it's affordable. 
I always like to say we sweat the details. You know, we make sure we do all the heavy lifting. And if you can do that, then there's not a lot of thinking involved. It's an easy purchase.

RACHEL KRAUSE: The world of software development is filled with buzzwords: agile, lean, and design thinking being just a few examples. A lot of times we think we have to practice one or another, but these concepts actually work well when practiced together.
RACHEL KRAUSE: Design Thinking Agile. Let's look at how design thinking and agile can work together. The design thinking model is used to better understand problems. And agile is how we deliver solutions. This flashlight represents a designer's focus when it comes to working in an agile environment. Closest to the flashlight is our more defined, more focused effort items. These are items that are in the current sprint that will keep the team moving forward.
RACHEL KRAUSE: As the distance away from the flashlight increases and we get into items for future sprints we see that they are less defined with less focused effort. Just like the light of our flashlight gets dimmer the further in the distance it goes.
RACHEL KRAUSE: If we look at our design thinking model, we see all aspects of the design process accounted for, from empathizing to implementation. As UXers working in an agile environment it can feel overwhelming to account for all of these aspects in your sprint process. Let's plot each one on our flashlight. Empathize Starting with the Empathize phase, this is where we conduct research to better understand our users. In other words, this is research used to develop personas which puts this in our Future Sprints category.
RACHEL KRAUSE: Next, we move on to the Define phase Define where we combine all of our research and observe where our users' pain points exist, which helps us understand the business opportunities available to us as well as identifying problems that users run into. That puts this phase into the Future Sprints category, along with empathize. Next we look at the Ideate phase where we come up with lots of creative ideas.
RACHEL KRAUSE: Since we're vetting ideas and in the early stages of design here, this will fall into the Upcoming Sprints category. This gives us additional time in our process to further refine these ideas. Prototype The fourth phase is Prototype, where we build tactile representations for a range of our ideas that we came up with in our previous phase. Depending on where you are in your design process this phase can either live in the Upcoming Sprints or the Next Sprint category.
RACHEL KRAUSE: You can gauge that by knowing where that item is in the product backlog and knowing how well defined that item is. Test Implement The less defined an item, the more you'll want to spend time figuring out what that item entails. The more defined the item, the more time you can spend iterating on the design to get it ready for the next sprint. The less defined the item the more time you'll want to spend testing that prototype to see how viable it is with users.
RACHEL KRAUSE: Next we have the Test phase, where you get feedback from your users. This phase lives in the Upcoming Sprints category, where you'll gather feedback from users that will inform design changes. And finally the Implement phase lives in the Current Sprint category. This is where you'll be focused on helping the development team work through the active backlog items. And this area is where you'll have the most focused effort.
RACHEL KRAUSE: As a designer, working an agile can feel unpredictable at times. Having a better understanding of how much effort to dedicate to tasks can help you keep your sanity.

Chapter 11

[ Background music ]
NARRATOR: The Amazon universe keeps on expanding. The new Kindles still download books.
FILM: Alright, let's rehearse, huh?
NARRATOR: They also play Amazon's new TV and film productions.
DIRECTOR: Action!
NARRATOR: There's a new set top box to watch them on TV.
AMAZON REPRESENTATIVE: We've packed in loads of entertainment.
NARRATOR: And now in some American cities, there are Amazon grocery deliveries from vans advertising Amazon productions. The Carelli family in Seattle live the complete Amazon lifestyle.
AMAZON DELIVERY MAN: Alright, thank you.
MALIENA CARELLI: My parents always use it for groceries and stuff and sometimes if we're out of snacks for school, we ask, "Mom, did you order Amazon?" And she's always, "Yep it's on its way."
NARRATOR: They're fed, entertained and provided with literature, toys and almost anything they might want to buy, all by one company.
AMANDA CARELLI: Mom, who's this for?
JOHN CARELLI: Everybody. With our hectic schedules and the kids with different activities, we always need things right away, you know, kind of on-demand shopping. It's just been a really good service for us.
NARRATOR: The Carelli's are living proof of the flywheel effect. Every Amazon service they use increases their use of the others.
MAYUME CARELLI: I have to say that Amazon Fresh, because I liked it so much, it made me want to use Amazon.com even more.
NARRATOR: And the family's media consumption centers on their membership of Amazon Prime.
MAYUME CARELLI: So you can watch movies if you're a Prime member, stream it to your devices and also if you have a Kindle, you can borrow books if you have a Prime membership, you don't have to pay.
INTERVIEWER: Do you have Kindles?
MAYUME CARELLI: We do, we have 4.
AMANDA CARELLI: Well there's different types of Kindles like a basic Kindle, Kindle Fire, which is basically like a mini iPad.
NARRATOR: For the Amazon generation, visiting shops is just a waste of time.
MALIENA CARELLI: It's a pain in the neck. You just go into your grocery store and you have to look for everything. Amazon, you just search it up with the press of a button. It's easier.

LESLEY STAHL: Do you have any idea how many people in the world are wearing your glasses right now?
ANDREA GUERRA: At least half a billion are wearing our glasses now.
LESLEY STAHL: Luxottica is the biggest eyewear company on Earth. Luxottica started here as a small tool shop in Agordo, a dot of a town in the Italian Alps. When frames were still made of mountain goat horns. This was the factory in 1961. This is what it looks like today. Last year, Luxottica made some 65 million pairs of sunglasses and optical frames. But they're very expensive. They can be very expensive.
ANDREA GUERRA: They can. But this is one of the very few objects that are hundred percent functional, hundred percent aesthetical, and they need to fit your face for 15 hours a day, not easy. And there is a lot of work behind them.
LESLEY STAHL: Luxottica wouldn't tell us their markup, but glasses like these can sell for up to 20 times what they cost to make. And all the glasses are designed by Luxottica. If people begin to know that Chanel glasses were designed by Luxottica, would it change the way they think about Chanel glasses?
ANDREA GUERRA: You know, that would be totally wrong. That would be crazy.
LESLEY STAHL: But why isn't the Luxottica name a brand name? Are you in any way hiding it?
ANDREA GUERRA: Hiding it?
LESLEY STAHL: Yeah.
ANDREA GUERRA: Not at all. We are listed.
LESLEY STAHL: Listed on the New York Stock Exchange where Luxottica shares are soaring. There company raked in $8 billion last year, but their best seller wasn't a fancy fashion house label. It was a brand they outright own, Ray-Ban. When you bought it, you could buy them for, I don't even know how little money.
ANDREA GUERRA: Twenty nine dollars.
LESLEY STAHL: Twenty nine dollars at the drugstore, at a gas station. And you took them off the market.
ANDREA GUERRA: We refurbished everything.
LESLEY STAHL: And made them upscale. Today, those $29 pairs can cost 150 and more. And Ray-Ban is the top selling sunglass brand in the world. When Americans go to buy these glasses, I'll bet 99 percent think they're buying an American brand.
ANDREA GUERRA: It is an American brand. What's wrong with it? I mean, it's an American brand owned by Italians. I think the world is, the world is this.
LESLEY STAHL: It is the world and we don't realize it. That's the thing. Before I started working on this story, I never heard the name Luxottica.
ANDREA GUERRA: Yeah.
LESLEY STAHL: Which is all the more surprising since Luxottica not only bought Ray-Ban, they also bought LensCrafters, the largest eyewear retail chain in North America. You may think, well, there's choice in the mall for other glasses. But Luxottica doesn't only own the top eyewear chain in the country. It owns another large chain, Pearle Vision. And Oliver Peoples. And several boutique chains. And it runs Target Optical. And Sears Optical. And we're not done. Luxottica also owns Sunglass Hut, the largest sunglass chain in the world. So is there a free market in eyewear?
BRAD AARONS: No, I don't think there really is. I think one company has excessive dominance of the market.
LESLEY STAHL: Smartmoney.com columnist, Brett Arends, says the appearance of variety is an optical illusion.
BRAD AARONS: Reality is, it's like, you know, it's like pro-wrestling competition. It's actually fake competition.
LESLEY STAHL: So Luxottica can set the prices as high as it wants.
BRAD AARONS: Luxottica's dominance, it's what's called a price maker, which means that essentially it can set prices and other people will follow in its make.
LESLEY STAHL: Which he says is why glasses, in general, cost so much. Even at your local opticians.

-OK. So, what is economics? Economics starts with a word, scarcity. But what is scarcity? 
Scarcity is the idea that we cannot have everything we want. As much as we'd like to have, there are limits that keep us from having everything. What are these limits? Scarce resources. Why are these resources scarce? Because they're hard to find. 
Money is a great example. Let's say you want a phone and a laptop, but you don't have enough money to buy both. You're forced to choose between the two. Even if you have enough money to buy both, you'll still have to choose between buying those things or buying other stuff. What I'm trying to say is that you can never have enough money, which makes it a scarce resource. 
Time is another scarce resource. Suppose you need to work, but you also want to play on your Xbox. You can go to work or you can play video games, but you can't do both at the same time. Of course, you could do one after the other, but there's only 24 hours in a day. By doing one thing, you'll have to cut another thing from your schedule. 
So, what is economics? Economics is a study of how people make decisions given the resources, scarce resources, that are provided to them. But it's not just about people. It's also how businesses and governments make decisions, as well. Economics is a study of how our society as a whole uses its resources.

There are many types of elasticity. In particular, I'll focus on the price elasticity of demand. Before I get into a specific discussion of elasticity, let me ask you a question. If a business wants to generate more revenue, should it raise the price of its product or lower the price of its product? I ask, because I have a friend who runs a children's bookstore, and when she found out that I was an economist, she asked me this question. 
Well, actually, she asked if she should be giving an educator discount. But what this really meant was that she wanted to know if she should discount or lower her prices. So generally, what would you say? Should a business owner increase prices or decrease prices in order to generate more revenue? The answer, as usual, is, it depends. 
Think about it. When your local electric company wants to raise more revenue, it will enact a rate increase. Yet, when an airline wants to quickly generate additional revenue, it will cut ticket prices. Which approach is correct? They both are. 
Here's the issue. If I raise my prices, I know that quantity demanded, or the willingness to purchase on the part of my consumers, will drop. That's just the law of demand. But what the law of demand doesn't tell me is how much the quantity demanded will drop. When I raise my price, will my customers be very sensitive to the price increase, cutting back a lot on their purchases? This will be bad for me, because I'd lose a lot of revenue. But if I raise my price and my customers only by a little bit less, not reacting too much to the price increase, this is good. I'd see increased overall revenue. 
So the crucial issue here is to find out how sensitive my customers will be to a price change. Elasticity is a measure of sensitivity or responsiveness to price. In equation form, the elasticity of demand or e d is equal to the percentage change in quantity demanded over the percentage change in price. Because demand exhibits an inverse or negative relationship, elasticity of demand will be a negative number. 
I use percentage change to measure elasticity, rather than absolute change. Let me illustrate why. If I tell you that product price has gone up by $1-- this would be the absolute change-- is this a big change or a small change? It depends. What's the product? More to the point, what was the original price? 
OK, look, say we're talking about a pack of gum. Originally, the price was $1. Now, it's $2. This represents an absolute change of $1. But is it a big change or a small change? It's actually a pretty big change-- price doubled or increased by 100%. 
What if we're talking about a text book rather than a pack of gum? Originally, the price was $100. Now, it's $101. This is still an absolute change of $1, but is it a big change or small change? 
In this case, it's a small change. Price has increased by 1%. Bottom line is that we need to know not only the dollar amount of the price change, but also how this compares to where we started. 
Now, technically, the formula for elasticity of demand is the percentage change in the quantity demanded over the percentage change in price, which can be found by taking the ratio of the difference between the new and the old quantities over the average of the new and the old quantities, all over the ratio of the difference between the new and the old price over the average of the new and the old prices. Frankly, I've found that if I use this version of the elasticity formula, students eyes glaze over. People get so hung up on the math that they lose sight of the intuition and what elasticity means, so I'll be sticking to the slightly easier form and will frame my questions for you accordingly. 
How would you actually use this formula? Take a look at this article about the Clinton administration's proposed cigarette tax policy. If you look at the last paragraph, you'll find enough information to determine the elasticity of demand for youth smoking. Remember, elasticity of demand is the percentage change in quantity demanded over the percentage change in price. The article states that for every 10% increase in price there's a 7% decrease in youth smoking. This means that elasticity of demand, according to the formula, is minus 7% over plus 10%, or negative 0.7. 
OK. Now, what do I do? I know that the elasticity of demand for youth smoking is minus 0.7, but what does it mean? The critical component to look at when dealing with elasticity of demand is the magnitude-- how big is this number? The bigger the number, the more people respond to the price. The smaller the number, the less people respond to price. The fact that the number is negative only signifies that demand is a negative or inverse relationship between price and quantity demanded. 
Since I care about the size of the elasticity number, rather than a sign, let's make things easier and just look at the absolute value or the size only of elasticity of demand. In this example, the absolute value of the elasticity of demand is 0.7. Again, what is this number really mean, and what does it tell us? 
Ultimately, the key value where elasticity is concerned is 1. In the case of youth demand for cigarettes, the size of the elasticity figure is less than 1. Since elasticity of demand equals the percentage change in quantity demanded over the percentage change in price, this means that the absolute value of this ratio is less than 1. It follows then, in order for this ratio to be less than 1, it must be the case that the size of the price change is greater than the size of the quantity change. 
What this tells me is that it takes a relatively large price change to initiate a relatively small quantity demanded reaction. In other words, if the elasticity of demand is less than 1, people don't react much to price changes. They're insensitive to price changes, or their demand is inelastic. 
Question-- does this make sense, that where cigarettes are concerned people don't react much to price changes? Note that the article specifies data for youth smoking. Do you think that youth sensitivity to cigarette prices is any different from adult sensitivity? Which group would respond more to a price change, youth smokers or adult smokers? 
If you thought that youth smokers would respond more to a price change than adult smokers, you're right. Adults tend to have more disposable income, so a price increase affects them less. In addition, the nicotine addiction is likely to be stronger for someone who's been smoking longer. This means that the size of elasticity for adults will be even smaller than the magnitude of the elasticity of demand for youth smokers, indicating a smaller reaction to any price change. 
One last question for you regarding inelastic demand-- if the absolute value of the elasticity of demand is less than 1-- that is, people don't respond much to a price change-- would you raise your price or lower your price to generate more revenue? Well, the demand for electricity is inelastic. When the price changes, people tend to purchase about the same amount of electricity. We don't like the rate increases. But other than trying to conserve a bit here or there, we continue to consume the electricity. This means that the electric company could raise prices quite a bit and not see very much decrease in the quantity demanded. As a result, total revenue-- price per unit times the number of units sold-- will increase overall. 
What if the absolute value that elasticity had been greater than 1? That would mean that the absolute value of the percent change in quantity demanded over the percent change in price is greater than 1, which could only be true if the size of the quantity change is greater than the size of the price change. So having a value of elasticity that's greater than 1 indicates a relatively large quantity demanded reaction to a relatively small price change, or demand is "elastic." 
Question-- if it's a case that demand is elastic, would you raise your price or lower your price in order to generate more revenue? Answer-- demand for airline tickets is fairly elastic, meaning that customers react a lot to fairly small price changes. So by decreasing prices a little bit, the airlines will see a relatively large increase in quantity demanded or ticket sales. Overall, this would yield greater total revenue. 
Is it possible for elasticity of demand to be equal to 1? Technically, it is. If so, the size of the quantity change is going to be equal to the size of the price change. The changes exactly offset one another. That is, a 10% increase in price results in a 10% decrease in quantity demanded, and there would be no change in total revenue. 
Next time, characteristics that determine elasticity of demand.

Chapter 12

[MUSIC PLAYING] 
[Text on screen reads “Whole Foods Market has local foragers across the country. Elly is one of them.
ELLY TRUESDELL: The local forager for Whole Foods Market is truly a resource for small local businesses who have never worked in this large retail format before and they really need a guiding hand, they need someone to work with them, to come in and be a real success in this major, major format. Whole Foods Market is super committed to local vendors and I think that's because they are making the best quality product around. It's coming from closer to you, it's coming from the season's best dairies and produce, et cetera. 
On the one hand, we're dedicating ourselves to flavor, but we're also helping and supporting, really building up these businesses who may have not otherwise have the chance to. Foragers are all over every region. We're visiting meat and livestock farmers, we're visiting dairies, we're visiting packaged product facilities, so we're really hitting all terrains and we're in every part of the country. It's pretty neat. 
My job is definitely outside of the 9:00 to 5:00. It's outside of normal office hours and certainly brings me to every venue you can imagine where there's food available. 
My favorite forager visits are generally to farms, whether that's a produce farm, or meat, dairy. Just love visiting the place where something's being grown and it's the raw product. And the people who are growing that food are almost always the most passionate. They know so much about whatever it is that they're growing and it's just a really neat thing to see. 
When I'm looking for products, I'm really looking across the board. I'm looking for fresh produce, I'm looking for baked items, I'm looking for prepared foods, every category that's coming locally and I get to look at. One thing that they really need to have in common is that they need to meet our quality standards, they have to have certain ingredients in them to even enter our stores, and they really need to have a story. They need to have some meaning behind them. We need to feel connected to the story and how they're making those products. 
I feel really lucky to be the local forager. There's so much culinary creativity going on. There are so many artisans, there are so many passionate people who are making different products from coffees to multi-ethnic breads, and so I feel really lucky that I get to meet all of those people, I get to taste their foods, and I get to see how they're making it. 
The most satisfying part of my job I think is that I'm getting to help people all day long. I find a huge personal pride and excitement when a vendor comes to our stores and succeeds and does really well. It's such a fun job. I'm helping people, but I'm also getting to taste amazing foods. This is definitely one of, if not the best job at Whole Foods Market. It's amazing.

NARRATOR: Before Prime launched in 2005 one-day shipping was an exorbitant luxury. Now it's the standard shipping speed for Amazon's 100 million Prime members. Earlier this year Amazon doubled the speed of Prime shipping from two days to one. And the faster speed is now available on more than 10 million products. 
CHARLIE O'SHEA: Prime one-day is basically going to A) keep up with the brick and mortar guys and B) enhance Prime. 
SIMEON SIEGEL: Amazon has changed the game completely. So what they excel at is getting an object from a creator to a consumer as flawlessly as they can and as quickly as they can. So Amazon is changing people's expectations and they're perpetually improving those expectations.
NARRATOR: But behind every Amazon box there are lots of people hustling and a lot of money spent to get it to you in just one day. Here's what happens when you buy a Prime eligible item on Amazon.com. Amazon spends tens of billions on shipping every year. In just the last quarter of 2018, Amazon's shipping costs jumped 23%, reaching a record $9 billion. 
INTERVIEWER: So why is it worth it?
DAVE CLARK: Well customers come to expect consistent fast delivery of anything on earth from Amazon. And our job is to continue to make that happen.
NARRATOR: And Amazon set aside $800 million just in the second quarter of 2019 to start making one-day shipping the norm.
DAVE CLARK: Most of that investment is going towards the infrastructure and transportation costs associated with speeding up delivery to the millions of Prime customers who are about to begin to experience one-day as the new normal.
SIMEON SIEGEL: The difference with e-commerce is the costs never end. The pick, pack and ship happens every time a unit is sent out.
NARRATOR: To better control this process and its large cost, Amazon is cutting down its reliance on UPS and the U.S. Postal Service and is investing heavily in its own logistics network. It now handles the shipping for 26% of online orders. Amazon now has at least 50 airplanes, 300 semi-trucks, 20,000 delivery vans and it operates ocean freight services between the U.S. and China.
SIMEON SIEGEL: Amazon is looking to do it all. That shouldn't be much of a surprise. The only thing that matters to Amazon is making sure the customer is happY and is paying for Prime every year or every month. What that means is sometimes you can rely on partners but you want to make sure that you have it in your pocket if that's not the case. 
NARRATOR: Other big retailers are also spending a lot to keep up with the fast shipping expectations Amazon has created.
REPORTER: Walmart is rolling out free next-day shipping with orders of 35 dollars or more starting today.
NARRATOR: And target offers free two-day shipping on orders over 35 dollars. And during Amazon's big Prime Day sales event July 15th and 16th, eBay plans to hold a crash sale offering 80% off big ticket items.
SIMEON SIEGEL: Amazon's 25 years old. The reality is that's a really short time to be around to have become the number one player. So can anyone compete? Sure people can compete. Can they sustainably compete is the harder question. I don't think we've seen it yet.
NARRATOR: The journey a package takes to your door starts before you even place the order. Most items on Amazon are sold directly to you by a third party. In Jeff Bezos' letter to shareholders in April 2019, he said third-party sales have grown from 3% of total merchandise sales in 1999 to 58% in 2018. Amazon charges those sellers a fee to list items on Amazon.com starting around 15% of the item's selling price. Amazon also sells things directly. In some cases Amazon buys inventory from a third party and then sells it to consumers. Other items are Amazon's own brands such as Amazon Basics, Amazon Essentials, fashion lines like Lark & Ro and Alexa devices like the Echo. 
All items sold directly by Amazon are already sitting in an Amazon warehouse waiting to be ordered and shipped. Most third-party items fulfilled by Amazon are also already waiting at an Amazon warehouse, while others are sent directly from the seller or to an Amazon warehouse once you hit that place order button. Amazon does not disclose the details of its inventory strategy. 
SIMEON SIEGEL: Figuring out where a product sits before you buy it is a phenomenal mystery. It's something that every reseller would love to know. And figuring out the code that is Amazon has been part of that hard process.
NARRATOR: After an item is ordered and ready at one of Amazon's 175 fulfillment centers around the globe, it's picked, packaged and shipped by some of its 250,000 warehouse workers often with help from one of its 100,000 robots.
SIMEON SIEGEL: It's essentially an amusement park for a box. There's conveyor belts that go around, there are slides. It looks like a lot of fun. But the question is: how much is automated versus how much his manual labor? And that suite, blending that, figuring out how to have the least human touch points while ensuring the best quality control is that perpetual conversation.
NARRATOR: We visited a fulfillment center outside Seattle where 2,000 workers prepare packages on a couple million square feet of floor space. Workers here showed us the process of getting an item from the shelves to a box.
SHARI OWEN: We scan the item and make sure that that item is what matches what's in our hand that's on the screen and then we stow it into a bin. And then there's cameras here that take pictures of where our hands go of where we place the item.
MICHELLE ODMAN: I am a picker so I pick product that will end up going down to the packing department and then they pack it out and send it to our customers.
FERNANDO RAMIREZ: I need to put it into a box. It actually tells me what type of box it is. Tape. Put the item in there. Scan it through. Drop it down the line.
NARRATOR: Amazon says it's 100,000 robots inside the fulfillment centers help make this whole process more efficient. In 2012 Amazon bought robotics company Kiva for $775 million and started using robots in its fulfillment centers a couple years later. Now there's driving robots that move inventory around, robotic arms that lift boxes and pallets and even a new robot that can package items in custom-sized boxes.
MICHELLE ODMAN: If it wasn't for them then I'd have to walk and I'd much rather be up here in my own little world picking then walking up and down. So I love the robots.
NARRATOR: As technology continues to change how fulfillment centers function, Amazon just announced it will spend $700 million to retrain a third of its U.S. workforce by 2025 to move them to more advanced jobs. 
After an order leaves the fulfillment center it has to get across the country or world to another warehouse in your region. Some boxes are sent via one of the shipping giants, but Amazon is cutting costs by sending packages in at least 300 of its own semi-trucks and now dozens of its own planes. 
DAVE CLARK: We've been building out an air network for a number of years now. That coupled with our partners networks, we're in a place we have a lot of incremental capacity to be able to advance packages for customers much faster than we were two or three years ago.
NARRATOR: Amazon broke ground on a new 1.5 billion dollar air hub in Northern Kentucky in May. It has capacity for 100 planes.
JEFF BEZOS: One of the great things about customers all over the world: they are divinely discontent. You give them the best service you can. They love it. But they always want a little bit more. We're going to move Prime from two-day to one-day and this hub is a big part of that.
NARRATOR: After an item arrives near your city it waits in another warehouse like this one for a delivery person to pick it up and take it that last mile to your door.
DAVE CLARK: We've been building for over 20 years to support this network that's eventually just constantly getting faster and we knew would begin to migrate to a one-day service. The big difference for us is all about how we get product from our fulfillment center to that last-mile location.
NARRATOR: Last-mile is the most expensive part of the delivery process. Until an item arrives at a warehouse near your home, it can be shipped in bulk. But then each package needs to be hand delivered to a different address, which takes a lot of people and a lot of time. Amazon pays to outsource much of last-mile delivery to carriers like UPS and USPS, which charge a fee, and those fees just went up. In January the post office increased its last-mile shipping rate by nine to 12% depending on package size. The more Amazon can keep last-mile delivery in-house, the more it can control these costs. To do that Amazon uses small business partners, some delivering out of 20,000 Amazon vans. And in 2015 it launched Amazon Flex.
OMAR MONTES: I've been driving for Amazon Flex roughly since 2016 on and off, I'd say at least two solid years.
NARRATOR: Amazon Flex is available in about 50 U.S. cities. Anyone over 21 with a driver's license, auto insurance and at least a mid-size sedan can sign up. After clearing a basic background check, drivers in areas with open spots can start picking up and delivering packages. Drivers use the Flex app to sign up for a block, which ranges from three to six hours. Then they head to a warehouse where they find out how many boxes they've been assigned to deliver in that timeframe. 
Amazon advertises that drivers make $18 to $25 an hour and they're responsible for their own vehicle costs like gas, tolls and maintenance. Amazon wouldn't disclose how many drivers have signed up or what percentage of its last-mile deliveries are made by Flex drivers compared to its shipping partners. But it did tell us their last mile delivery programs are expanding.
DAVE CLARK: We've built out these small businesses, the delivery service providers, and we have Flex which is our on-demand crowdsourced delivery piece. So we need all of that to meet the various types of delivery we do in each of our geographies and I think you're going to see expansion on all fronts there.
NARRATOR: Amazon has one unusual approach to increase its number of small business partners helping with last-mile. Amazon says it will contribute as much as 10,000 thousand dollars if full-time employees want to leave the company and start their own package delivery services.
JEFF WILKE: Early response is great. It allows us to complement the capacity that we have with our great carrier partners. It's great for some of our employees who don't want to do the same thing that they've been doing in the warehouse for five or 10 years. They want to learn some new skills and over 16,000 employees have already taking us up on this.
NARRATOR: Amazon is also looking at several high-tech solutions to streamline last mile delivery. In June, Amazon announced its new autonomous delivery drone will be operating within months and it has a one year FAA permit to test them.
SPEAKER: We're building fully electric drones that can fly up to 15 miles and deliver packages under five pounds to customers in under 30 minutes.
NARRATOR: Amazon also has patents out for a giant flying warehouse and drones that can react to flailing hands and screaming voices. And it's even testing a sidewalk robot called Scout to bring packages right to your door.
All these steps are an incredible challenge to pull off. In recent years, Amazon has faced an onslaught of negative press about working conditions at every step of the process. We spoke to several workers about their concerns.
DAN FULLER: The working conditions at Amazon are dangerous and that's systemic I've worked in five different buildings in three different states from coast to coast and it's the same everywhere. 
OMAR MONTES: It might not be outright exploitation but it is almost like a disposable workforce.
DAN WELLS: It's been so pervasive that many of the pilots, in fact most of the pilots at our airlines are actively seeking employment elsewhere.
NARRATOR: Last year Amazon raised the minimum wage to fifteen dollars for all its 350,000 U.S. employees, more than double the federal minimum wage of $7.25. In his annual letter to shareholders, owner Jeff Bezos challenged other top retail companies to match this. And Amazon offers generous benefits.
EMPLOYEE: I needed my medical insurance. That's what's essentially kept me at Amazon. 
NARRATOR: But some workers, most who asked to remain anonymous, told us Amazon expects them to keep up a fast, often unreasonable pace. 
EMPLOYEE: They say that they care about their employees and quality. But no, it's really just about numbers. You have to make not only a certain rate but you can't accrue more than 30 minutes of time-off-task per day otherwise you get written up. Usually most buildings are at least a million square feet. You could be walking three to five minutes each way to go to bathroom. So if you went to the bathroom twice you could easily use up that 30 minutes. So a lot of people don't go to the bathroom.
NARRATOR: CNBC was connected to Fuller through the Retail, Wholesale and Department Store Union. Although he's not a union member. We asked Amazon about the working conditions in fulfillment centers.
DAVE CLARK: We have world class facilities, we have restrooms all over this place. We have break rooms. We have TVs. Anybody who is watching, don't take my word for it. Please come take a tour and see for yourself. I'll put us up against anybody any day.
INTERVIEWER: Do you feel like the pace that workers are asked to work out is reasonable?
DAVE CLARK: Well our, the way we look at productivity rates, just like anyone, we have expectations. In every job, my job has expectations, your job has the expectations. The way we set the rates and the processes are based on actual performance and the overwhelming majority of employees are able to meet those expectations.
NARRATOR: Warehouse workers told us their productivity is closely tracked based on how often they scan a package. Workers told us they can get written up if they don't meet certain metrics. Amazon also has patents for a GPS-enabled wristband that could track workers' movements and breaks.
DAVE CLARK: I think too often people look at that technology and sort of debate, is this Big Brother tracking an employee or something to that effect? And you know really almost all the time you look at these wearables or other types of things like that, they're usually some form of safety device.
NARRATOR: Workers can lose their jobs if they don't work fast enough. At one warehouse in Baltimore, The Verge reported that Amazon terminated 300 full-time associates in a one year period between 2017 and 2018 for inefficiency. Amazon said in a statement that "the number of employee terminations have decreased over the last two years at our Baltimore facility as well as across North America."
PROTESTERS: Amazon workers are under attack. What do we do? Stand up, fight back.
NARRATOR: There have been several protests in the last few years around the world where Amazon workers have demanded better working conditions.
SHARON BLEACH: In orientation they talked about safety. That was the number one thing. Safety. And you get there and that's forgotten.
NARRATORS: In the UK, ambulances were called to Amazon warehouses 600 times from 2015 to 2018. In April, the National Council for Occupational Safety and Health identified Amazon as one of a "dirty dozen" companies, citing six deaths in seven months and 13 deaths since 2013. But Amazon says that last year alone it spent $55 million in safety improvements at fulfillment centers and its employees got a million hours of safety training.
INTERVIEWER: As Amazon increases the shipping speed, can they also increase conditions to be more fair, equitable and sustainable as far as safety goes?
DAVE CLARK: Well I'm incredibly proud of the safety record of our sites and the focus of our leadership team on safety. Any incident is one too many and anytime something happens, our teams come together and figure out what happened and get to the root cause and try to eliminate anything from occurring again in the future. 
NARRATOR: Amazon Air is another area where growth in the program has led to challenges. Amazon-branded planes are flown by contract pilots from Atlas Air, ABX and Southern Air.
These airlines negotiate contracts with the pilots. And five of these pilots told us working conditions have deteriorated since their airlines started flying for Amazon.
DAN WELLS: As a result of Amazon being such a large company, they have the ability to put a very strong pressure on our companies and have them drive down our pay and working conditions as pilots.
NARRATOR: Dan Wells heads up the union that represents these pilots. They protested outside Amazon's annual shareholder meeting in May. They also spoke out in April against poor working conditions and low pay near the new Amazon air hub.
DAN WELLS: We have a hard time maintaining enough qualified pilots. There's a tremendous amount of turnover at these carriers which in net reduces experience and creates a lot of stress on things, a lot of frustration, which certainly distracts people from their duties as pilots.
NARRATOR: In February, an Amazon Air plane operated by Atlas Air crashed near Houston, killing all three pilots aboard. The cause of the crash is under investigation with initial National Transportation Safety Board findings showing the pilots may have lost control of the plane.
In interviews with Business Insider weeks before, several Amazon Air pilots said they thought an accident was inevitable. They cited low wages that made it difficult to attract experienced pilots, training they considered shoddy, fatigue and poor morale.
DAN WELLS: Pilots that are working for Amazon's contractors are overwrought with schedules and scheduling changes and constant training. All of those things have added to greatly increasing the risk in the cargo system that we fly in.
NARRATOR: In a statement Amazon said, "All of our airline delivery providers must comply with the Amazon Supplier Code of Conduct and Federal Aviation Administration regulations. We take seriously any allegation that a delivery provider is not meeting those requirements and expectations and review accordingly." 
Workers bringing packages that last mile to your door also told us safety is a concern. One reason: Amazon doesn't provide Flex drivers with any branded clothing to identify them.
JONATHAN: I'm pulling up to this house and I get to the front door and you know this guy just comes running out like, "Hey what are you doing?" and he's talking so fast and I was thinking you know I'm in Connecticut. You know I'm a Puerto Rican guy in a white guy's yard and like, you know, what if he just comes out and shoots me in the face without asking questions? You know that was my fear. 
NARRATOR: After another delivery where he says a customer let his German Shepherd charge at him, Jonathan paid 45 dollars out of his own pocket for a custom sweater on Etsy.
JOHNATHAN: I think Amazon the least they could do is give us something that would make it a little bit safer and make us more visible when we're out there delivering.
OMAR MONTES: I've gotten a lot of mean glares from people because they're like, "Who is this guy? He's just in front of my driveway or he's parked in front of my house. He's just wearing a yellow vest." You don't even have to wear that vest. It's just, I do it because at least I look less suspicious.
NARRATOR: In a statement Amazon said, "They are welcome to wear the safety vests that we have available for them in the delivery stations while they're on their route which can help customers identify Flex participants.". And some drivers told us the way the Flex app works encourages distracted driving because it requires drivers to manually tap refresh to secure their next assignment.
CLIFFORD LEVINE: If you want to get blocks then you have to be tapping on that refresh button in the app pretty much constantly. But how do you do that while you're delivering? So it encourages people to do it while they're driving.
NARRATOR: In a statement Amazon says, "Safety is our top priority and we are proud of our safe driving record. We regularly communicate a variety of safety topics including loading and driving practices with drivers. Amazon Flex participants can also sign up for delivery blocks up to a week in advance through the Amazon Flex app." 
Amazon is working to ease the burden on its delivery drivers and save money with high-tech solutions like those drones and Scout sidewalk robots, and its fulfillment centers are becoming more automated, too.
DAVE CLARK: Our focus on automation has really been begin in automation in the places that can be most beneficial to the workforce. Remove the most tedious task, remove the heaviest lifting task, whether that be lifting large containers or bringing the inventory to the associate so they don't have to walk through Earth's most massive selection in order to find the thing they're looking for.
NARRATOR: But for now Amazon still relies on people to bring us our packages in just one day. And with expectations for rapid delivery only growing, Amazon will need to continue innovating to make shipping even faster. 
SIMEON SIEGEL: We will see shipping speeds increase every day. The announcement that Amazon is going to one-day is ironic because in certain regions we have it in an hour already. That's not going to stop. And what's absolutely critical is any company that sticks their head in the sand even if it's Amazon. We'll see the competition pass them by. That's the one guarantee we have in retail.

Chapter 13

[MUSIC PLAYING] 
NARRATOR: In 2010, American Express created Small Business Saturday, a new shopping day right after Black Friday to help small businesses get what they needed most-- more customers. But for 2011, the goal was clear. Make Small Business Saturday more than just a one-off event, and cement its place as an official shopping day during the holiday season. 
American Express couldn't do that single-handedly. So they rallied business owners, consumers and public officials to help. First, they gave small business owners a tool kit to carry the day. 
American Express armed them with everything they'd need-- from a Shop Small badge to posters to social marketing tools. This Digital Kit featured a YouTube video maker for businesses to make their own ads, a Facebook page builder, and a way to launch online deals through Foursquare. Over 500,000 owners took advantage. 
Next, American Express reached out to get public officials on board. Communities and states from coast to coast declared their support. Even the Senate stepped up and passed a resolution declaring Small Business Saturday an official day, unanimously. Finally, American Express rallied millions of shoppers to join the movement, by finding local businesses and pledging to make one small purchase. 
KID: I pledge to shop small at Big Top Candy Shop. 
MAN: Allan's Boots. 
WOMAN: At Juno Baby Store. 
MAN 2: Make the pledge to Shop Small. 
KID 2: Please.
MAN 3: Shop Small on Small Business Saturday. 
NARRATOR: So how big was it? 
BUSINESS OWNER: You know, 20% increase. 
BUSINESS OWNER 2: Our sales were up about 30%. 
BUSINESS OWNER 3: 166% increase from last year. 
NARRATOR: In the end, it became a top 10 trending topic on Twitter. The second annual Small Business Saturday reached 2.7 million likes on Facebook, more than double the first year. Most importantly, 103 million Americans shopped small, from California to Washington, DC. 
BARACK OBAMA: This is Small Business Saturday, so we're out here supporting small businesses. 
NARRATOR: In just over a year, Small Business Saturday went from a day that didn't exist to a permanent fixture on the holiday shopping calendar. See you next year.

Brand logos fly onto the screen to form a collage of a laughing man. He holds the side of his face with his hand.
Text, Where brands meet people
Logo, Clear Channel

Nick Scarpino: I am here today to talk to you about a topic that I love-- Marketing Communications. Now that is probably something you don't hear every day, but it's true. I love marketing communications. But what does that mean? Well, there are many different aspects to marketing. You got things like pricing, distribution, that type of thing. 
The communication side of marketing really deals with all the different ways that you can get the word out about something. It's just a fancy way of saying that. So by a show of hands, how many of you have ever played the game, whirlyball? All right. OK, so yesterday in rehearsal nobody raised their hand. I thought [LAUGHTER] am I the crazy one or are they the crazy one? So TEDx organizers go play whirlyball. 
OK, so for those of you who don't know what whirlyball is, it's a fantastic game. You play with your friends and family. It involves bumper cars. It involves banana scoop, a wiffle ball-- basically, I'm just telling you to Google it after this because it's awesome and you should all play. I say Google a lot. 
[LAUGHTER] 
So two friends of mine actually like whirlyball so much that they left their jobs in Chicago, and they moved to the Twin Cities in Minnesota to start the whirlyball there, because they don't have one there. And as they're getting ready to open the doors for the first time, they've started receiving phone calls on a near daily basis with different advertising opportunities. That makes sense. And so as they consider each advertising opportunity individually, they actually all seem like great ideas. 
But they don't have all the time and the money in the world to make everything happen. So they'll get questions like, hey, are you interested in advertising in our community marketing calendar that goes out to all the local-- we print it out, it goes to all the local homes in your area. That sounds like a good idea. They get questions like, are you interested in putting an ad on a place mat in the diner that's across the street from your whirlyball location? Sounds like a good idea, right? But then like I said, they don't have all the time and money in the world. 
And those are just the opportunities that they're being presented with. They also have all their own marketing communication ideas as well. So they've created a website. They've built a Facebook page. The opportunities are seemingly endless in marketing communications and they're constantly changing. 
So 20 years ago, every advertiser out there wanted to put an ad in the local newspaper in order to reach their target market. Six or seven years ago, every single person, every company out there wanted to go out to Myspace and reach their customers. How many of you have ever had a Myspace account? OK, that's good. But things change, right? Things change. 
So how do businesses prioritize marketing communications when everything is changing all the time? That's what I'm really passionate about. That's the challenge that every business today is facing and it's really difficult, in particular, for small businesses and nonprofits that probably have very little to no marketing resources at all. 
Noted psychologist, Barry Schwartz, wrote a book called The Paradox of Choice. He gave a TED talk of the same name. It's one of my favorites out there. And in that talk, he describes how when human beings are faced with an endless amount of choice, it actually damages the human psyche. It paralyzes us. It renders us incapable of making decisions at least to a certain extent. So he says that in order for us to make the best decisions possible, we need to narrow down that endless list of opportunities, based on a certain set of criteria. And then we can really feel good about our decisions as we go forward. 
So that's why I'm here. That's what I'm passionate about. I'm passionate about helping businesses in particular, small businesses and nonprofit organizations, narrow down with a certain set of criteria that I've created all the different marketing communications opportunities that are out there. 
So if you're thinking about starting your own business, if you're thinking about starting your own nonprofit organization, perhaps you're looking to ignite a little change of your own-- that was the theme for today. [LAUGHTER] Hey, I got that in there. Maybe this will help you, but if you're just maybe thinking about one day-- maybe you're already working at a great company. Maybe you just want to get the word out about something else that you're passionate about. I hope what I'm going to present to you today will help you. 
So I brought today with me two different lists of this criteria that we're going to look at. And the first list is called the Five Marketing Communications Must-Haves. There are five marketing communication tactics that are so important. You have to do all of these before you do anything else. In fact, if you have limited time and money, which everybody does, I want you to start with number one and I want you to go through as far as you can through number five. And hopefully, you can get through all five, right? 
So without further ado, what is the most important thing you can do in marketing communications? It's that you can utilize your physical location if you have one. So if you have a store or any place that you interact with customers on a near daily basis, it is likely your most expensive asset that you have. So you really need to squeeze as much value out of that asset as you can. 
What does this mean in practical purposes? It means putting a great sign outside of your building. That's kind of an easy one. It just tells people who you are and what you do. It means if you have foot traffic by actual people walking by, driving, boating, whatever they do-- it means putting out signs that say things like, what your specials are and things like that or giving away free samples. Things like that. 
Now a great example of this is the Chinese restaurant that's just down the street from my house. They do a great job of utilizing their physical location even when disaster struck. This is a little hard to see. But a car drove through the front window and walls of this Chinese restaurant. It's very hard to see, but they boarded up the walls right here and they spray painted a big thing that said, Open on top of it. OK, [LAUGHTER] that's a great way, right? 
But that's not even the coolest thing. Watch for the coolest thing. The coolest thing is they put this sign on the front door. We're open come in and enjoy delicious Chinese food. Food was so good that a car had to come in as well. [LAUGHTER] Good, right? That is an awesome way to utilize your physical location. So I want you to do as my local Chinese restaurant does and utilize your physical location. 
T number two marketing communication must have or number one if you don't have a physical location, is that you need to build and maintain a website. A recent study by Google came out and said that 60%, almost 60%, of small businesses do not have a website, which is really a shame. Because when you think about it, a website is one of the least expensive marketing communication tactics you can possibly implement. It gives you 24-hour access to customers and prospective customers. And you can control the entire message on the site. So everybody needs to have a website. 
Now, right next to that Chinese restaurant is my local dry cleaner. And super low cost dry cleaner of Naperville, Illinois, has a website. It is literally a mom and pop shop. A mom and pop own the place. There are only two of them, but they have a great website. It lists their location. It lists all the services they offer, their prices, how to contact them, etc. So if they can do it, you can, too. So I want you to do as my local dry cleaner does and build and maintain a website. 
Number three-- this one's easy. You need to offer a way to speak to somebody at your business. The most obvious way is with a phone line. You can also do advance things like have a video chat or have just a regular chat feature on your website. Because nothing will ever replace the importance of human-to-human interaction when dealing with business. As a business, you can offer your customers empathy. You can upsell them on something if that's appropriate. You can just answer their questions and tell them where you are if that's what they need to do. 
So the best example I've ever seen of this is Moe, the bartender from The Simpsons. Now Mo is a sole proprietor. He's a one-man band. He owns that bar and he manages that bar. He serves all the drinks and even he has a customer service line. And no matter how many times Bart Simpson will prank his customer service line, he answers that phone every single time and he tries to give the best customer service possible. He always goes and looks for the person whoever Bart's asking for. [LAUGHTER] So I want you to do as Mo from The Simpsons does and offer your customers a way to speak to somebody at your business. 
Number 4-- you need to be found by your target markets. Right now, all around this country and around this world, somebody out there is looking for whatever it is that you're selling or whatever cause you're supporting if you're a nonprofit organization. And it's really important to get in front of those people at the right time, and the right place. 
Now if this is happening online, and it's happening online-- I work at Google and I'm telling you this-- that means that you need to get in front of people. If you sell something, it means you need to show up on Google and Bing. It means that you need to be on Amazon and on e-bay if those are relevant to your business. You've got to show up where people are looking for you. 
A great example of this that I hope will resonate with college students, as most of you are, is that I just recently did this Google search, I need pizza now. All right. And look at the first result. This is-- I did it from my house again, and I use a lot of local examples. Sarpino's Pizza Delivery, right? It gives me the address. It gives me the store information, the pizza menu, the location. It gives me everything I could possibly want to know about satisfying my need for pizza right now. So I want you to do as the pizza delivery does and be found by your target markets. 
Number five of five-- the last one, the last thing that you must implement-- is you need to engage customers within one community. So what does that mean? It means giving your best customers a way to interact with you and your staff and your company and things like that. And it is a way to engage with each other. This can happen in a variety of different ways. But the most obvious one, the easiest one to give you, would be something like a Facebook page. I can interact with this brand. They can answer my questions. I can put it out socially, things like that. 
But it doesn't have to be online. And the key thing is that you don't have to do everything when it is online. You don't have to be on Pinterest and on Twitter and on GooglePlus-- you should be on GooglePlus-- but you don't have to be [LAUGHTER] and you don't have to have a YouTube account and all these kinds of things. You don't have to do everything. You just have to do one really well. That's the keyword up there, just one. And like I said, it doesn't have to be online. 
My local library has a wonderful kid's program that my son attends quite frequently, in which anybody from the community can go and they can bring their children and the children get to interact with the library staff. They build a community. They get to interact with other children. It's wonderful. So I want you to do as my local library does and engage customers within one community. 
All right, so we talked about the five marketing communication must-haves. That answered questions like, what should I do right now? But then there's all these other opportunities out there in marketing communication, kind of like I was telling you with my whirlyball friends. So how do we make decisions? How do we set marketing communication priorities when we know that five years from now everything is going to change. What do we do now? And how do we plan for the future? 
Well, I've created a second list that I brought with me today and this is the list that I call Three Factors for Setting Marketing Communication Priorities. There are three factors by which you can measure every single marketing communication tactic idea out there. And these three tactics, these three factors can actually be summarized in just seven words. Now it's getting late so I'm going to go through these, but then I'm going to ask for a little audience participation, so just start getting mentally prepared. 
So the three factors for setting marketing communication priorities can be summarized in just seven words. And they are target markets, sharable experiences and return on investment. Now, I need help here. I want you to say these with me. We're not going to say the numbers. We're just going to say those seven words. All right? I need to hear it loud. They got to hear you at home. I've got a lot of friends that are watching the Livestream. They need to hear you, OK? So let's do it together. On the count of three. One, two, three-- target markets, sharable experiences, return on investment. 
Now here's the crazy thing. In rehearsal I thought nobody's going to say anything. I'm going to have to do this again. I'm going to have to chastise people and say this TEDx millions of people are watching around the world. They're going to watch this after. That was really good. But I still want to do it one more time, because this is all timed out. This is scripted, right? OK, so let's do it one more time so that everybody around the world can hear it. On the count of three. One, two, three-- target markets, sharable experiences, return on investment. You have no idea as a marketer how happy this makes me. It's just so beautiful. This is beautiful. People chanting about marketing-- this is great. 
[LAUGHTER] 
OK, so to illustrate that, I want to give you an example. I want to give you an example that brings all three of those things together. And the example comes from a job that I used to work at before I came to Google. I used to work for a wonderful nonprofit organization called IES Abroad. It's actually based here in Chicago. And I've actually talked to a few of you. How many of you have studied abroad with IES? That's a lot of hands. That's great. Did you like it? [LAUGHTER] Good, all right. All right. 
So for 5 and 1/2 years I worked in the marketing department there and it was a wonderful experience. And so we had a very small, but mighty marketing team. We took on the challenge in my last year there of we really wanted to come out with like a new branding campaign. Our goal was always to increase the number of students at local colleges who are studying abroad, right? So IES Abroad functions a lot like a college. We send U.S. college students on study abroad programs, as many of you know. 
So we thought to ourselves, how can we appeal to our target market of current college students who had not yet studied abroad? That was our target market, OK? So what we came up with was a message or letter that we called Your World Redefined. So to a potential student, a student just like many of you who are in college right here, the idea was that this message would show you that if you studied abroad, your world would be redefined. 
But then we wanted to go about activating this message. How do we get the word out? How do we tell people this in an open and honest way? Well, what we did was we came up with this idea. We printed on 8 1/2 by 11 white pieces of paper, plain as day-- Blank redefined. And we sent this to all of our current students who are studying abroad all around the world. Thousands of students are studying abroad. We just printed this on a flyer, sent this to them. 
And we said, would you please tell us something that has been redefined via your study abroad experience. And if you want to, would you please share that with your friends and family. The reaction and the creativity that came out of this was truly inspirational. College students are really creative. So I want to show you a few examples of how people started sharing this on their social media accounts. They started creating photos. They created videos. They took our message off those pieces of paper. I'm going to show you a few examples. 
Here's one. This is a student in Spain. She is at a soccer game. And she is showing you that football has been redefined to her by studying abroad. This student, a little hard to see, is in Morocco and riding on a camel. She is showing that transportation has been redefined by studying abroad. These students-- man I'm telling you in marketing it's like the greatest thing in the world when somebody takes your slogan and does something else with it. These students put this on their t-shirts after they had run a race in Spain and they were saying that working out had been redefined by their study abroad experience. 
These students are on the Galapagos Islands off the coast of Ecuador. They are having a class there and it's hard to see, but that student in the middle's sign says, that for her, class has been redefined by studying abroad. This student is near the Berlin Wall and she is showing you how freedom has been redefined for her by studying abroad. Read it. 
[LAUGHTER] 
College students are really creative. It's hard to get there. That's Machu Picchu overlook in Peru. That's hard to get to. Getting high has been redefined by studying abroad. [CHUCKLES] I can't end with that. My mom's in the audience. [LAUGHTER] All right. So last, but not least, again, it's really cool when people take that off of your sign and they stick it on sand, for example. These students have written holiday redefined. They even used our brackets. That is so cool. [LAUGHTER] So for their vacation, their holiday had been redefined. 
So now let's think back to what we talked about-- target markets, sharable experiences, return on investment. Our target market was current U.S. college students who had not yet studied abroad. This tactic had clearly reached those people, because their friends, who are already studying abroad, were sharing all their stuff with them. They were sharing these pictures with them in videos and things like that. It was awesome. 
Speaking of sharing sharable experiences, that was number two, right? Clearly we had created a sharable experience and we had encouraged our current students to share that message and that experience with their peers. So it was great. Lastly, return on investment-- I'm not going to go into specific details, but the campaign was very successful. This launched about four years ago. It still continues today. It was very, very successful. 
Our small, but mighty marketing team won several awards when it came out. And it was great. Everybody loved it. They still continue to use it today. So it was obviously very successful. 
So that's really it. I've gone over with you the five marketing communication must-haves. We've talked about the three factors for setting marketing communication priorities. And so, I hope that if you're looking to go start your own business or nonprofit someday, again igniting a little change of your own, I hope we remember these. But if the only thing I've done for you today is convince you that you need to check out whirlyball or that you need to study abroad, if there's still time left, I think I'd be OK with that, too. Thank you very much. 
[APPLAUSE]

Online advertising goes further still.  Advertisers are eager to know about our activity right across the web.  And so to better understand what we want, they're tracking our browsing habits.  It's called behavioral targeting.  Think of it like going on a shopping spree and accumulating lots of bags.  When you buy something, you become laden with bags.  The branding on the bags quickly gives away to onlookers where you've been and what types of things you've been buying, and what you're likely to buy in the future.  All of which is very valuable to advertisers.  
[ Music ]
This is how the online version of that works.  When we visit a site that contains advertising, the advertising company's server sends back at us a cookie, a tiny file that identifies our computer uniquely.  Now, as we surf the web, the cookie in effect tracks where we go, registering our interests with the advertising company.  They then target adverts more accurately.  Visit a car site, get car ads.  Visit a travel site, get travel ads.  It's that simple, yet also for many, deeply worrying.  
>> By monitoring somebody's web behavior, you can build up a picture of who they're talking to, what they're reading, what they consume, and that can be an incredibly intimate and potentially powerful profile of somebody's life.  
>> Many of these judgments can only be quite poorly made out because they don't know the context you're in.  So if I'm looking up -- somebody's looking up material on cancer, is that for me?  Is that for a friend?  Is it for a piece of coursework?  And, of course, real decisions can follow from that.  
>> I'm really not so vexed by behavioral advertising and targeting.  I think that as long as it's transparent at some level and you the consumer or the user have the ability to find out what is being, kind of, used to your supposed benefit, then I feel quite relaxed about and actually think that it could be an exciting leap forward.
[ Music ]
>> So, we've seen that we pay for web search through being targeted with advertising.  We pay for some email systems by having our email scanned for advertising opportunity.  And we pay for browsing sites by being tracked through cookies.  Consumers are becoming the consumed.  We are watched and traded.

[TEXT ON SCREEN: The Tyson Foods Meals That Matter Disaster Relief team traveled to Moore, Oklahoma shortly after tornados struck the area May 20, 2013. Cook teams from three states served nearly 80,000 meals to people displaced from their homes by the devastating storms. Jessie Tiles Tyson Team Member Sherman Texas]
JESSIE LILES: All of us that are on these teams are volunteers. And we all want to help with the community. Disaster relief is only one thing that we're involved in. So when a call comes, we go. It's absolutely an honor to be able to do this and wear the Tyson name. The fact that they support this is far and away a great accomplishment. 
[TEXT ON SCREEN: David Ellis, Southgate Baptist Church member]
DAVID ELLIS: Well their immediate need is to replace the things that they lost in the disaster that keep them going from day to day. You have to think that these people are coming home, and it's like coming home to an empty house. They have nothing. They don't have a tube of toothpaste, they haven't got a pair of socks, they just have what they had on when the tornado hit. And so we're replacing those immediate needs. 
I tell people all time that, how many trips to a store would take like Walmart or Target to put the things in your house that you come home to every night that you need on a daily basis? They have no soap, no shampoo, no hand towels, no toiletries. And so we're meeting those immediate needs. 
[TEXT ON SCREEN: The Meals that Matter cook teams as well as Mercy Chefs served meals from the church’s facilities]
DAVID ELLIS: Well, they actually asked us through our pastor, Doug Brewer, to have a place on our church property so they could serve the community. So immediately, the pastor said, yes, we'd like to serve and partner with you. So we opened up our facility to both those food serving organizations. Oh, it's been tremendous. I think at one point, there was over 10,000 meals being given away a day between the rescuers and the support staff and, of course, the people that lost their homes in this area. 
[TEXT ON SCREEN: May Farmer Tyson Team Member, Nashville Arkansas]
MAY FARMER: It feels good to know that when they walk up and they're looking for us and they ask can they have something to eat and we have plenty to give them, because we're out here to help them because we know they have no power, no food. And it just feels good to know that we can feed all these people out here and do whatever we can. And nobody's upset about how hot it is or how hard we're working or being tired, because we know we have a job. And that's feeding the people as much as we can. 
[MUSIC PLAYING] 
[TEXT ON SCREEN: 73,467 pounds of product donated. 29,667 pounds of protein donated to the Food Bank in Oklahoma City. Tyson Members from 18 locations working at the Meals That Matter site. 3,223 total hours logged by all teams. ]
- Sherman and [? Knoll, ?] making a difference and more. 
[MUSIC PLAYING]

[MUSIC]
GABE ZICHERMANN: Our brains are wired in a very specific way, which is called intrinsic reinforcement.  And how it works is any time you challenge yourself to something and then you achieve that thing, your brain secrets a little bit of this magic neurotransmitter called "dopamine."  And dopamine is sort of like -- it's a little bit of a high, but it also makes you want to do that thing again.  So, challenge, achievement, dopamine.  
INTERVIEWER: And experts like Gabe Zichermann began to proselytize about how marketers can take the best ideas from games and apply them to shopping.  
GABE ZICHERMANN: In a game setting, that challenge-achievement loop is done hundreds of times per hour.  In contrast, in the real world and most of the things that people do, whether that's work or buying stuff, there's very little of that.  We've actually taken all the challenge out of most things, so we're not getting that dopamine rush.  
INTERVIEWER: Marketers realize that if they could inject the same excitement and compulsion into their products, they could dramatically increase sales.  So they began to look at ways of using gaming techniques such as rewards, levels, and achievements to sell us everything from running shoes to groceries.  This cereal, Krave, has its own gaming app.  Pirates of the Caribbean comes with its own rewards scheme.  And these sausages have their own Facebook page.  This technique became known as "gamification."  Manufacturers use it to create stickiness with the product and the brand.  
MAN 1 VOICE OVER: We got six chances, so here we go.  
INTERVIEWER: McDonald's Monopoly is one example.  It looks like a simple tear and win game, but to make it more compulsive, players needed to collect all the properties on the Monopoly board to win the jackpot.  McDonald's had turned a visit to their restaurant into a game.  
GABE ZICHERMANN: In the United States, that game which is played for 1 month a year every year for the last 10 years is responsible singlehandedly for an increase of about 3% in same store sales in the United States alone.  So this game alone is worth nearly three quarters of a billion dollars in revenue to McDonald's.
MAN 1 VOICE OVER: Guess what?  I am a winner today.  That's right.  I just won a medium order of French Fries.  
GABE ZICHERMANN: Every other company on Earth is trying to get you to spend money and they're putting all their effort into getting you to spend your money on stuff all the time and gamification is one of the tools that companies might use to accomplish their goals.  Just like they incorporated television advertising 50 years ago, gamification is the new tool set.  
INTERVIEWER: So fun isn't this frivolous thing at all, it's actually a hard-nosed currency for selling now.  
GABE ZICHERMANN: Make no mistake, the house always wins and that's a key thing for consumers to understand.  This thing that's fun and engaging and useful, they're paying for that one way or the other, whether that's in cash or time.  
INTERVIEWER: Business had learned from selling to children how the adult market could be turned into a game.  But there was another childish trait which business needed to tease out of adults.  
BENJAMIN BARBER: The trouble with adult consumers is they think too much.  They walk down there and they say, "I don't think I really need that.  I think I'll put off that shoe purchase until next week."  That's the last thing that those who sell to consumers want, that kind of reflective, deliberative approach.  They'd much rather have adults go in and say, "Oh look at that!  I want it, I want it now," like a child.

Sophie Galvani: 70% of women still say they do not feel represented in either media or advertising, who can't be what you can't see. Dove is proud of what we've done in our advertising and showcasing a broad diversity of women but we know that it's not enough and we know that we can't do it alone. That's why we've partnered with Getty Images and Girl gays.
Amanda de Cadenet: What's so important about this particular campaign is that we've been able to highlight and photograph women and girls all over the world who don't generally get seen.
Dr. Rebecca Swift: as image professionals we have the responsibility to authentically reflect society and to help trigger social change. Project show us is the largest stock photo collection of women created by women to challenge beauty stereotypes.
Hind: If I can't break the stereotype and change it one photo at a time I will do it as long as I can.
Bhumika: In a country like India if you're gay if you're bisexual people will instantly judge you. But Monisha, she does not care
Yagazie: We want to be people that look like us and more than anything being able to relate
Nina: I wanted to share with the world unique beauty.
Sophie Galvani: we're inviting you as media and appetizers to come and use this image bank so that we can represent a much broader view of how women hood looks around the world today. Show us a world where all women and girls feel seen and represented.
[Music]

NARRATOR: What if you knew precisely what your customers wanted at any time and could instantly provide them with it?  Well, that's the holy grail that marketers and advertisers have been searching for, for decades because with that information, they could create tailor-made ads that would target directly to customers who were likely to buy their products without wasting money on the people who wouldn't.  Just two years after voicing doubts about advertising, Page and Brin went into advertising and changed that industry forever with a system called "AdWords."  Type in a specific search term and specific adverts appear in two sections of the Google page.  Now if you click on one of those adverts, money flows straight to Google, as the advertiser pays for your traffic to their site.  For the consumer, it's as simple as that.  But what makes this special for advertising companies is that it's so targeted -- a selling process initiated by a consumer looking for something in particular.  Unlike the failed dotcoms, AdWords seem to be the perfect marriage between what the web can do and what consumers want. 
[Eric Schmidt, CEO of Google] 
ERIC SCHMIDT: The first rule of the Internet is that you can speak to each individual as though they're a different person.  It's not a broadcast mechanism.  It's a narrow-casting mechanism.  And what AdWords is, is it's a single ad to a single person every time.
[Douglas Rushkoff, Author of Life Inc.]
DOUGLAS RUSHKOFF: It's catching people in motion.  It's catching people who are already in motion towards something already goal-oriented, already halfway there.  
NARRATOR: Through targeted advertising to consumers, Google and ultimately the web had found a way to pay for itself.  But Google's ambition ran even deeper than money.  Page and Brin wanted to transform the web itself.  They built into their advertising machine the analytical insight of their search engine and crucially this is what cemented Google's influence on the web.  Their goal was to filter for consumers relevant ads from the irrelevant ones.  So every time you activate AdWords by searching on Google, it unleashes a chain of events which can be illustrated like this.  [Background Music] Let's say a car company wants to see their ad appear at the top of the page when someone searches for the words "new car."  They tell Google the amount they're willing to pay to make their advert appear.  The process is actually an auction so lots of companies might be competing for the top spot.  But Google doesn't necessarily give the top spot to the highest bidder.  It judges ads based on how relevant they are to the search and arranges indicators of the quality of the advertising company's website.  In simple terms, 'P' the price the winner pays is related to the value of bid multiplied by quality.  This gets top billing.  In this way, Google doesn't just rake in profits, but positions itself as a powerful arbiter of quality and relevance online.  
ERIC SCHMIDT: Google will make the entire world's information available to you and occasionally will show you some advertisements.  If you want to click on those ads, there might be something very valuable for you to click on but you don't have to.  I think that's the trade.  
NARRATOR: AdWords is what made Google the dominant player on the web and very quickly the rest of the web fell into line behind this model.  Offer your products and your services for free while funding it behind the scenes with highly targeted advertising.  Now the irony is that this ultra-capitalist model requires that the web stay true to its non-capitalist roots.  It has to remain an open network, easy to search, with no pay-per-view, and no areas that Google can't go.  [Background Music] This open vision of the web also requires us users to play our part, consuming the eye candy in a virtual suite shop of free content.  The longer we're online, the more attention we pay, the more information businesses of all kinds can capture, and the more advertising they can sell.  

CORY CREED: Hello, everyone Cory Creed here from "Social Fresh" East in April of 2013. And we are on break. So we pulled Morgan out-- Morgan Johnston from Jetblue-- out to talk with us. Nice job on your presentation. 
MORGAN JOHNSTON: Thank you very much, appreciate it. 
CORY CREED: Excellent. Tell us what your role there is at JetBlue.
MORGAN JOHNSTON: I am the Manager of Corporate Communications and Social Media Strategist. 
CORY CREED: OK, so what does that mean? 
MORGAN JOHNSTON: I get to play on Twitter and Facebook all day.
CORY CREED: Excellent!
MORGAN JOHNSTON: Realistically, I spend a lot of time working with our marketing team and our customer support team to make sure that we're all aligned in our messages. And take a look at the atmosphere, and what our goals are. And try to activate them. 
CORY CREED: So it's not just social media. It's communications and social media, kind of combined? 
MORGAN JOHNSTON: Absolutely, well, so obviously we try to pair our social media along with our existing schedule, whether it's a marketing or communications. But all of that is really dependent on making sure that our customer support team is in line, because with social media it's so much about the conversation. 
CORY CREED: OK. Very good. So I wanted to unpack a few odds and ends of things that you talked about in your presentation, if you don't mind. But one of the things you mentioned early on, is from the beginning JetBlue started in 2000. Is that right? And social media really didn't exist to speak of back then. And you said, we were ready for it. We didn't really need to change much. What you mean by that? 
MORGAN JOHNSTON: Well, absolutely. So when we started, obviously we started in the internet age. And right off the bat, a lot of our bookings were online. So we were used to an online sort of sense. 
But the idea of from the beginning-- it was all about the connection with our customers. And it was the connection with our flight attendants and our pilots and our res agents with our customers. So when social media came about, it was a natural extension for us to move from just that one-to-one interaction in person to interaction online. 
CORY CREED: So where a lot of other companies were communicating, trying one communication to everyone, you were going more a one-on-one already, before social media. 
MORGAN JOHNSTON: Absolutely. Because I think the natural instinct for a lot of companies was-- this is another advertising channel. It's the one-to-many sort of approach. And we started looking at it the other way around. Let's start with the one, and see if we can build a larger audience. Because that conversation is happening in a public space. 
CORY CREED: Now I think a lot of businesses would be scared of that. Because when you go one-to-one, there's a whole lot of people out there. How do you keep that all up? 
And I want to talk specifically, in your presentation you talked about Hurricane Sandy. And where 70% of the travel is coming out of the Northeast or was it New York? 
MORGAN JOHNSTON: The Northeast. 
CORY CREED: The Northeast. OK. So most your travel is coming out of Northeast. Hurricane Sandy this past year hits the Northeast so bad-- and how do you-- you talked about that you did it. But how do you have the manpower and manage that much communication when you try to do one-on-one at a time when everyone is coming at you probably? 
MORGAN JOHNSTON: Sure. Well, and we're not always going get everyone. And we have to be OK with that . And we have to be understanding of that. 
But when you're doing this all hands on deck sort of strategy, the fact that what we're doing is social is reflective of what we're doing on the phones. There's some utility in that. And by the way, there's times where you can scale. So 90% of our audience didn't really need to talk to us individually. They just needed information. 
But if you've already established a trust in a communication channel, they're already going to be listening to us, and what we're saying. So if we're pushing out information about-- this is what we're doing with our operations. This is where you can go to get your flight status. This is where you can go to changes. All of these things help communicate to a larger audience, and actually reduce overall call volume. 
Traditionally, we would have to put out the press release and hope the media picked it up. With social media, we now have the ability to push out to a larger audience directly, and ultimately make life easier for all of our individual communications. So those individual communications are actually really tailored to that one individual. 
CORY CREED: So I would assume at an airline, never worked at one. So obviously-- 
MORGAN JOHNSTON: I recommend it. It's lot of fun. 
CORY CREED: Thank you. We'll see. So I would guess when something like Hurricane Sandy hits, the phone lines light up. And they probably don't get answered. Because they just don't have that-- with Twitter and social media-- have you done the measurements? Do you actually think you've been able to reach and effect and help more people using those social media channels than telephone? 
MORGAN JOHNSTON: Right. Well, and you don't plan a call center for an irregular operation. You plan it for a day-to-day business. And so you can do what you can to scale up the amount of response, but yeah, your phone lines are going to fill up. 
What we found with social media is, quite honestly, you can lower the call volume a little bit, just from those busy questions. The hey, what's the status of my flight? If you're saying, here's a website. We can go check the status of your flight. 
You're going to immediately pull all those people off the phones. And that's great. So that frees up the calls a little bit. 
If you're on top of that, also doing those one-to-one communications and saying, hey, come in. We can help you via DM, to help rebook you if need be. We only have 30 people. If 2,000 crew members are on our phones, only 30 online, we're not going to be able to do the same volume. 
But one-- we're showing a public example of the all hands on deck mentality that we're doing across the company. But two-- we are trying to help, and we can move the needle a little bit. Our team was able to handle, you know, 63 bookings an hour with all these people kind of coming in, which is not huge in the overall scheme of things. But it adds a drop to that bucket. 
CORY CREED: Yeah. And so let's talk specifics. I think you said you had 30 to 40, somewhere in that range. 
MORGAN JOHNSTON: We have 30 crew members who are working around the clock as our social media support team. I call them B6 Black Ops. Love you guys. 
CORY CREED: Shout out to them. Good. And so they're doing a great job. I assume when something big happens, it's all hands on deck. Everybody's on call? 
MORGAN JOHNSTON: We're try to get as many of them in as possible. Triage, the messages coming in. Obviously there's lots of tools out there that allow you to assign tweets. So we have one person who's kind of the routing and moving things to where they need to go. 
CORY CREED: And a big part of this you mentioned is not just handling the questions, but handing them off to the right person. 
MORGAN JOHNSTON: Absolutely. Well, sometimes we'll reach out if there's a question that's outside the norm. We're not necessarily going to allow or enable somebody in the operations to answer via Twitter. But if we can get that information, we can outsource the information gathering. And then we just can be the vehicle for helping give that information out. 
CORY CREED: And lastly in your presentation, you mentioned that it wasn't just the storm itself. It was the day or two after the storm. And that there was a lot of delays and things that happened not just the day of, but after. Is that right? 
MORGAN JOHNSTON: And when you're looking at some of these operations, it's an interesting thing with the online community. People expect kind of this real time effect. Once the storm has passed, everything should go back to normal. And when you're dealing with something that's actually based on infrastructure, you have to make sure that our crew members can get to the airport. If our crew members are still digging out their house-- who's in the Rockaways, that's underwater. 
We have to be cognizant of that as well. We have 400 people, or 400 crew members in the New York area that were directly impacted. 80 of them lost their homes entirely. So telling those stories helps our customers understand who we are as a company, who we are as individuals. That's really important to us, too. 
CORY CREED: Fantastic information. And what we're seeing out of the conference, we're only about a fourth of the way through the conference. You did an excellent job. But we're seeing that everyone's talking about stories. They're talking about not just social media, but the communication. The social media being part of the communication and how it all ties in well together. So thanks so much for being a part of "Social Fresh". 
MORGAN JOHNSTON: My pleasure. 
CORY CREED: Appreciate the interview. Thank you very much.

Nike Livestrong Chalkbot Web Film
[WORDS ON SCREEN “Nike Livestrong. It’s About You. Integrated Campaign.”]
LANCE ARMSTRONG: I just want to let you know that after long talks with my kids, the rest of my family, a close group of friends, I have decided to return to professional cycling in 2009. 
[WORDS ON SCREEN “September 24, 2008 Lance promises his return to professional cycling”]
ARMSTRONG: I am here to fight this disease. I am here so that I don't have to deal with it. You don't have to deal with it. 
[WORDS ON SCREEN “Lance’s mission it to spread the message of Livestrong”]
ARMSTRONG: None of use have to deal with it. My children don't have to deal with it.
[WORDS ON SCREEN “Nike hears the call”] 
ARMSTRONG: This must be a global health priority. We know that we cannot do this alone. 
[WORDS ON SCREEN “This time the Tour de France is not about Victory”]
ARMSTRONG: And I cannot guarantee an aid through a victory, but I can guarantee you that the Livestrong message will touch all aspects of our society, all continents of our society, and certainly touch on all the different diseases and facets of cancer that need the attention. 
[WORDS ON SCREEN “It’s about hope”]
ARMSTRONG: It's not about me. 
WOMAN 1: It's about my sister. 
MAN 1: It's about my dog. 
MAN 2: It's about my son. 
WOMAN 2: It's about sharing my story. 
MAN 3: So people can compare their stories to mine. 
[WORDS ON SCREEN “It’s about what people can do. It’s about facing the impossible. It’s about cancer. And it’s about you. It’s about taking action. It’s about how hope prevails. It’s about owning a piece of the road. It’s about survivors everywhere. Chalk your message on the roads of the Tour de France. It’s about You. The campaign used an integrated approach including online messages, a series of It’s About You films, television, events, print, OOH and a new invention: the chalkbot.”]
NATHAN MARTIN (CEO of Deep Local): We built chalkbot together so that people from everywhere can spread messages of hope and cancer survival to the entire world at the Tour de France. 
[WORDS ON SCREEN “It’s about using the road as a canvas – Nike Chalkbot Team”]
MARTIN: It's a fully pneumatic robot. 
To print a message in sort of memoriam of a lost loved one 
[WORDS ON SCREEN printed in yellow chalk on roads “I miss you Emmett Bedford. Neil cotton cancer survivor. Believe.”]
MARTIN: or in honor of someone fighting cancer, and see that appear on the road in the Tour de France, that they could never participate in physically. That has the power to be very comforting, I would say. 
[WORDS ON SCREEN “36,000 messages were received via Twitter, SMS, web banners, and wearyellow.com. It’s about going strong. It’s about Lorana and my girls. Contributors received a GPS-tagged image of their message printed on the road. Thousands were printed along 13 stages of the Tour de France.”]
COMMENTATOR: So as you see the riders are going all over the yellow chalkbot, they'll remind you while the Nike chalkbot follows the road of the Tour de France, you can follow Nike chalkbot at home on Twitter or at wearyellow.com 
[WORDS ON SCREEN “It’s about you. Livestrong.com”]

A pigeon walks by a subway entrance. People go down an escalator into the subway terminal.
A woman in a red jacket scowls as she ascends. Text, Are you ready for the fast lane?
A man loads up his black van full of equipment and shuts the doors. He drives down a city highway. He and two others unpack the gear and take it down into the subway terminal.
They use a saw to cut wooden planks.
They construct a large red slide with wooden support beams that descends down the side of the staircase.
A man peers at them as they continue to build. A man brushes a white powder over the surface of the slide. They put a Fast Lane sticker on the entrance to the slide. A man slides down. Text, Dedicated to everyone who enjoys speeding life up a little.
Two women take the slide. Others take note of the slide and smile as people descend. A woman peers down the length of the slide as another hops off the bottom and laughs.
A woman shakes her head.
A boy goes down the slide on his mother's lap. They smile. A man going up the stairs takes notice. Two men with cameras film a man descend as they go down the stairs.
A woman flies down the slide and lands on the blue cushion pad beneath it. A girl smiles as she watches. A woman looks up as people go down the slide.
A woman on the lower floor laughs and looks up. A man in a business suit takes the slide slowly as he holds onto the sides. Text, Fast Lane, Driven by fun. A man goes down the slide as he holds a guitar.
He continues to play guitar. Text, What are you driven by? www dot facebook dot com slash volkswagen.

INTERVIEWER: So you launched a pilot. Tell us a little bit about that. 
CHRISTINE NURNBERGER: So the pilot-- this is very, very targeted. 56 C-Level executives-- most were in the later stages of the buy cycle, and it was a 2-step direct mail campaign. And I got to be honest, I'd been very anti-direct mail for quite some time. I feel like it's expensive. It's cumbersome. It's really hard to measure the results. But with this, we had so money to throw at it, we're like, let's give it a try. 
So the first part of the direct mail-- you can see in the lower right-hand corner there-- our recipients received a shadow box with a thumb drive that said, you know, zombie apocalypse preparedness agency open now. When they looked at the thumb drive, there was a customized video that would say, you know, Rachel, if you're seeing this video, you've already made it further than most. In the coming days, I'm going to send you everything you need to survive the apocalypse. And you hear the zombies like banging on the bunker. 
And then two days later, they received a zombie survival backpack with the book, World War Z, for How to Survive a Zombie Apocalypse, rather, two tickets to go see the movie, Zombie Repellent, which was, in fact, Silly String, and a couple other little things in the backpack. It was very well received, very well received. And it landed exactly where we wanted it to, which is on the CIO's desk. 
We had salespeople, for the first time, calling us up, like, can we do more of these? I walked in to close the deal, and it's on the guy's desk. He thought it was the most creative thing. So it really changed our perspective on direct mail as a tactic when you use it to get at the right audience in a very targeted way. So it was the pilot. 
INTERVIEWER: So it's really all about those right channels and, you know, as you can see with the slide, it's-- can we get the-- can we even communicate the right message to reach the right audience at the right time, of course? And do we communicate a message that actually resonates with our audience? So let's talk a little bit about your tracks and the audience. 
NURNBERGER: Yes, so the first track, the C-Level track, was the pilot that I just talked about. We did a drop of, I think, 56, and then we wound up with spun up another 56 or something like that, but it was still very, very targeted. We also decided to aim this at reporters and analysts. SunGard, for a period of about 14 months, had just been dead silent in the press. This was before I came on board. 
We had lost mind-share with our key analysts. We had lost mind-share with our key reporters. And so we thought this would be a, kind of, creative fun way to say-- you know what-- SunGard is not the same old dinosaur company that you think of it as-- we've got new technology-- we've got new initiatives-- we've got new patents-- and to really reintroduce the new SunGard availability services to our key media constituents. And then we had our PR firm follow up with the PR track. 
INTERVIEWER: So here's an example of the flash drive that we talked about before. That's the personalized message that went out to everyone. And then, the blown-up picture of the survival kit. So-- 
NURNBERGER: Pretty cute. 
INTERVIEWER: They're adorable, but look at the feedback that you got back. 
NURNBERGER: Yeah, we actually landed a very significant article in the Wall Street Journal for four of our customers. We had our key analysts, which, for us, are John Morency and Rachel Dines-- John's with Gartner-- Rachel's with Forrester-- tweeting about it. The response was overwhelmingly positive. We did get one negative response from one of my sales reps, who sent me a note saying that he felt like we were being really insensitive because his customers are, in fact, zombies. And I explained to him that he was probably going after the wrong target market. But you can't please everybody. 
INTERVIEWER: OK. So let's get into the email list and what they got. 
NURNBERGER: So this was the broader base campaign. We leveraged the same materials across all of these various touch points, so I think that's important to note. When we build our assets, we build them so they can be printed, they can be produced as a banner, an infographic. We try to do it once, and have it be very flexible to deliver the content across a myriad of different vehicles. 
So this was the cloud track about how surviving a zombie apocalypse is similar to migrating to the cloud. The cloud's a very hot topic. This went out to a segment of our audience that had previously raised interest in our cloud solutions. I think the next one is the more pure disaster recovery that went out to the folks in our database, who'd previously acknowledged interest in our disaster recovery solutions.

NARRATOR: Today many online retailers have got clever in collecting and analyzing information on their customers.  
[Jeff Bezos, CEO & Founder of Amazon.com]
JEFF BEZOS: We study your past purchase history and then use that in a statistical way to make predictions about what other things in this massive catalog of products that you might be interested in.  
NARRATOR: What Jeff Bezos is talking about is a whole new level of interaction with customers and something that's defining the new commercialized web: recommendation engines.  
[Chris Anderson, Author of Free]
CHRIS ANDERSON: As you start looking for cameras, you start to see people who clicked -- who looked at this also looked at that.  People who bought this -- people who clicked on this bought that.  You know in this -- the course of your clicking, the service becomes more useful to you.  
JEFF BEZOS: One way to think about that is we're sort of redecorating the store for each customer who walks in.  If you think about a physical store, that would be impossible.  You can't run around and rearrange the furniture and put the products that that particular individual customer might like most up front.  Very, very difficult.  But in an online store, of course you can do that.  You can redecorate the store for each individual customer.  You can help people find things that they might not have ever been able to find any other way.  
[Background Music] 
NARRATOR: Recommendation engines enable businesses to constantly personalize their offerings to match our interests and behavior.  This intimate knowledge of customers gives web c

MATTHEW SWEEZEY: a lot of people get confused when we talk about marketing automation and CRM. so what's the difference and how can they work together let's find out right.
[Music]
MATTHEW SWEEZEY: many businesses get confused with the differences between CRM and marketing automation. So let me help you out. A CRM gives businesses a complete view of their leads prospects and customers. CRM is often owned by sales, we're marketing automation is owned by marketing. The two tools work in tandem marketing automation is used to manage campaigns, creates assets such as landing pages and emails and manage the programs those leads create. When the two tools are used together they have three very powerful outcomes.
The first is visibility the CRM is a database where sales inputs data, such as calls emails and meetings. The marketing automation platform adds to that the individual interactions from the prospect such as which content that each person look at or which emails did they open. This data gives sales the critical visibility to know who to talk to when and what about.
The second is automation. Marketing automation tools allow businesses to create truly personal customer journeys the automations know exactly what to send to whom and when. Once the leads have been passed over to sales the connection between the two tools is still strong. Marketers can create other automated programs sales can deploy directly from within the CRM.
The final way the two tools work together is through reporting. With the two tools integrated marketing can now track each lea they pass over, know when it closes, and even how much revenue is generated. This allows marketing to show their contribution to the bottom-line.
CRM and marketing automation are both powerful tools and, when combined businesses are able to generate more leads close them faster and prove the value of those efforts. Ready to learn more and you can head over to trail ahead for a deeper dive or you can check out the rest of the videos in this series. Thanks for watching
[Music]

NARRATOR: We all want to take our business on a journey to success. To help us navigate and make the right decisions along the way, we need information instruments. The most important of these are known as key performance indicators. 
But which KPIs are key for our journey? Many businesses have gone into space before, and there are lots of navigation instruments and metrics available that we could use. 
With so much information at our fingertips, we should be able to make decisions with confidence and accuracy. But in reality, the results of all this information can be very different. With so much information available, we can lose sight of the key information we need. At the time when we should shoot to success, all too many businesses are missing their landing. 
[MUSIC PLAYING] 
It's not that there's no data. There's lots of it available. The problem is that in many cases, we don't have the right KPIs. Our research shows that less than 10% of all management information circulated actually informs decision making. 90% is wasted. 
Finding the right KPIs should start with your business goals. If companies map out their strategy and then develop the key performance questions they need to have an answer to, they will be guided to the right key performance indicators. At the Advanced Performance Institute, we help customers identify and develop the most relevant and meaningful indicators, so they can steer their mission to success. 
[MUSIC PLAYING]

[MUSIC PLAYING] 
NARRATOR: In 2010, American Express created Small Business Saturday, a new shopping day right after Black Friday to help small businesses get what they needed most-- more customers. But for 2011, the goal was clear. Make Small Business Saturday more than just a one-off event, and cement its place as an official shopping day during the holiday season. 
American Express couldn't do that single-handedly. So they rallied business owners, consumers and public officials to help. First, they gave small business owners a tool kit to carry the day. 
American Express armed them with everything they'd need-- from a Shop Small badge to posters to social marketing tools. This Digital Kit featured a YouTube video maker for businesses to make their own ads, a Facebook page builder, and a way to launch online deals through Foursquare. Over 500,000 owners took advantage. 
Next, American Express reached out to get public officials on board. Communities and states from coast to coast declared their support. Even the Senate stepped up and passed a resolution declaring Small Business Saturday an official day, unanimously. Finally, American Express rallied millions of shoppers to join the movement, by finding local businesses and pledging to make one small purchase. 
KID: I pledge to shop small at Big Top Candy Shop. 
MAN: Allan's Boots. 
WOMAN: At Juno Baby Store. 
MAN 2: Make the pledge to Shop Small. 
KID 2: Please.
MAN 3: Shop Small on Small Business Saturday. 
NARRATOR: So how big was it? 
BUSINESS OWNER: You know, 20% increase. 
BUSINESS OWNER 2: Our sales were up about 30%. 
BUSINESS OWNER 3: 166% increase from last year. 
NARRATOR: In the end, it became a top 10 trending topic on Twitter. The second annual Small Business Saturday reached 2.7 million likes on Facebook, more than double the first year. Most importantly, 103 million Americans shopped small, from California to Washington, DC. 
BARACK OBAMA: This is Small Business Saturday, so we're out here supporting small businesses. 
NARRATOR: In just over a year, Small Business Saturday went from a day that didn't exist to a permanent fixture on the holiday shopping calendar. See you next year.

[MUSIC PLAYING] NARRATOR: The 10th of December, 1948. 
-This universal declaration-- 
NARRATOR: 48 nations signed the Universal Declaration of Human Rights. 60 years later, human rights are still flouted just about everywhere. No country in the world can stand up and honestly claim to respect the declaration entirely. 
To awake the defender of human rights that's asleep in each and every one of us, Amnesty International Belgium created a series of experiments. 
Amnesty operates hidden cameras in front of a church, a school, a hospital, in a theater, a town hall. 
[A man dressed in a tuxedo and standing next to his fiancé. They are an interracial couple]
MAN: “We’re supposed to get married here, we had an appointment today but these two men won’t let us in.
[In another hidden camera scene, a woman speaks to a passerby on the street]
WOMAN: This man won’t let my daughter enter the school.
Passerby from the first scene at the church: Since when do you get to decide who has the right to go to church and who doesn’t?
[Yet another hidden camera scene. A man dressed in all black and a black baseball cap is speaking to a group of people]
AMNESTY INTERNATIONAL ACTOR: Three people cannot sit on a bench together
[Another hidden camera scene]
MAN 2: They won’t let us in the hospital and won’t tell us why!
[A man walks out onto a stage in front of a crowded audience at a theater venue]
MAN 3: The performance will not take place tonight. The show has been cancelled.
[Crowd starts murmuring. A different hidden camera scene appears]
AMNESTY INTERNATIONAL ACTOR: We’ve been given orders these two won’t be possible
[Amnesty actor gestures at the interracial couple in their wedding attire]
NARRATOR: What people don't realize is that the two men in uniform are actors. 
[Woman responding to an Amnesty International Actor]
WOMAN 2: Abuse of authority that’s what you’re trying to do! Are we in an authoritarian state here in Belgium?
Very quickly, citizens react and start defending human rights. 
[Man on stage at cancelled theater performance speaking to crowd]
MAN 3: I’m going to have to ask you to leave.
[The crowd at the theater boos. Several people stand and jeer at the man. A woman stands and shouts at the man on stage]
WOMAN 3: It’s a democracy here, you know!
[Another hidden camera scene, a man is speaking to the Amnesty International Actor]
MAN 4: This is a democracy, we have rights here.
WOMAN 3: To see this in my own country, honestly that’s horrible.
[Woman speaking to an Amnesty International actor]
WOMAN 4: This isn’t the US you know!
[Another man confronting an Amnesty International Actor]
MAN 5: Well, the right to freedom of religion to begin with…go on, move. Get out of here now!
NARRATOR: The hidden cameras are shown on video sharing websites such as YouTube, and Dailymotion, and on television, to wake up other people's consciences with the slogan, "Human rights still need you to defend them. Wake up humans! Go to amnesty.be". 
Access to the amnesty.be site is blocked and censored for subversive content, likely to harm the public interest. At the same time, lesoir.be, a leading site for information in Belgium is also blocked. The press and blogs carry the story and mails begin to circulate. Result-- in less than 24 hours, thousands of people react, pass on the information, and become active defenders of human rights. When the Amnesty site goes back online, the number of visits triples. 
The same day, SMSs sent to thousands of people with a message, "Your last SMS was destroyed. It contained unlawful words which could harm national security," followed by a special phone number. 
RECORDED VOICE: Don't you find it inadmissible that your freedom of expression and opinion is attacked? You're right. Human rights still need you to defend them. Visit amnesty.be. 
NARRATOR: Hundreds of calls follow, and visits to the Amnesty International site multiply. People send SMS messages as the viral activity grows. 
An e-mail is sent to journalists and public opinion leaders, warning them from now on, their electronic address book could be examined at any time. Again, people are invited to call. 100% of journalists involved and 2 out of 3 opinion leaders react and call the number. Belgium's leading French speaking dailies decide to headline the Wake Up Humans campaign on their portals. 
Posters looking like official government decrees are stuck up on the walls. Anyone wishing to circulate inside the property must provide proof of nationality or religion. For security reasons, conversations with a political content will not be tolerated inside the campus. 
In total, the Wake Up Humans campaign succeeded in waking up several thousand consciences, proving that Belgians are courageous people who are ready to get involved, not only by donating money, signing petitions, and becoming members, but also by standing up and giving their most precious gift, the capacity to fight for the defense of human rights. 
[MUSIC PLAYING]

[Music]
NARRATOR: hi everyone Cory pading here with T2 and today I want to talk to you about the differences between paid owned and earned media. Now as we know there exist plenty of different media types online where we can feature our brand and discuss other brands.
The question is what are these different types of media and which one is most valuable to feature our brand. Essentially there are three distinct categories in media: we have paid, owned and earned.
With paid we're talking about something like Google AdWords or maybe a sponsored post on a social network. Essentially anywhere that we're investing capital and our time in order to have our brand.
Featured with own media we're talking about things like our website, our blog any one of our owned social channels. Essentially anywhere where we're controlling the content that our audience sees.
Lastly with earn media we're talking about media where we have no control over the content that's being shared about our brand. Essentially it's our audience that's talking about our brand. This can be something like a featured post on a major news source or another brand posting a Blog article about us. This can be one of the most valuable assets that we can earn in terms of media because this is when people start talking about our brand. Obviously if it's positive it's even better because we're generating brand loyalty.
I hope you found today's session helpful and we'll see you again soon.
[Music]

Chapter 14

CELIA HATTON: This Beijing supermarket's filled with brands that might look familiar, but flavors that definitely aren't. Blueberry-flavored potato chips, strawberry and milk-flavored Cheetos.  What about aloe juice from Minute Maid? Every major US food label, it seems, is trying to bite into China's $186 billion fast food and processed food industries by creating new products designed just for Chinese taste buds. Tropicana cantaloupe juice, orange-flavored Chips Ahoy cookies, and Chinese herbal medicine Wrigley's Gum. But it's Frito-Lay potato chips that really push the boundaries. Early taste tests reveal that Chinese people didn't like popular American flavors like sour cream and onion. So product researchers came up with new flavors inspired by traditional Chinese food. From Szechuan spicy to sweet and sour tomato, all the way to the sugary end of the spectrum with cucumber flavor lychee and mango.
[Harry Hui, Pepsico representative]
HARRY HUI: The market is extremely competitive, so there are many new products that are being launched regularly onto the marketplace.  
CELIA HATTON: Popular American chains are also getting in on the idea.  McDonald's has purple taro pie. Starbucks offers coffee drinks with jelly cubes on the bottom. And KFC's got spicy squid on a stick. These products may seem wacky in the U.S., but there's serious pressure to be the object of Chinese cravings.  
[Shaun Rein, Managing Director, China Market Research Group]
SHAUN REIN: China's going to become the second largest, if not largest consumer market in the world in the next five years. So if American companies don't figure out how to get it right in China, they're going to be missing out on what should be their major generator for growth.
CELIA HATTON: Even the toothpaste companies can't afford to ignore the flavor game. From lotus flower Crest to salty Colgate. Every corner of the grocery store is trying to tempt China's curious consumers.

[MUSIC PLAYING] NARRATOR: Globalization is a widely discussed topic. It is, therefore, not all that easy to explain such a complicated term in simple words. Let's start from the beginning with a background to globalization. 
Advances in technology, such as mobile phones, airplanes, telephones, and the internet, have made the growth of transport and communication networks possible. Amongst other things, this means that people and countries can exchange information and goods more quickly and in a less complicated way. This process is called globalization. Globalization comes from globe. 
[Illustration of a globe]
Globe: Hello. 
NARRATOR: And means the worldwide coming together of countries and nations. Let's look at an example. Companies used to manufacture products in their home countries, just like the companies Profi-TV and Supercolor, who produce televisions in Country A. 
Their products are in direct competition with each other, but both companies pay the same salaries and production costs. They have the same customers, use similar suppliers, and sell televisions at similar prices. In short, the same conditions apply to both companies. So far so good. 
Due to technical, cultural, and economic developments that have come about through globalization, other companies which manufacture products under different conditions can now offer their products in Country A too. That's why a company from Country B can sell televisions here at a lower price, because they were produced for less. The local firms Supercolor and Profi-TV have to react to withstand the competition. 
And so the world grows closer together, and there is an active exchange of goods between countries. More affordable products are available for more people. However, not only does an exchange of products and economic goods take place, but also of services, knowledge, cultural goods, and even languages. All of these individual elements are closely linked and influence each other. 
But where there is light, there is also shadow. Because of globalization and this intense exchange of goods, people and the environment often suffer. If a company decides to move production to an economically disadvantaged country, people in industrialized countries lose their jobs. 
At the same time, job opportunities open up to many locals in the economically disadvantaged country. Many people in these countries work for very little money in comparison to those in industrialized countries. Therefore, they often remain poor, and more often than not, do not have sufficient insurance, social insurance, or health insurance cover. 
A further disadvantage of globalization is ecological problems, such as climate change. The use of aeroplanes, ships, and lorries to transport goods over international borders is constantly on the increase. This causes more carbon dioxide to be released into the atmosphere, which in turn is the main cause of global warming. 
Even national environmental standards are ignored. This is a further cost factor in the worldwide international site competition, which should be kept as low as possible to be attractive for a company. There are, therefore, many sides to globalization which affect almost all aspects of life, causing me to think that the chain of positive and negative effects will continue to grow further. What's important is to realize that globalization itself is neither good nor bad. It just depends how people deal with all the new possibilities in the future. 
[MUSIC PLAYING]

ALIZA GULAB: When traveling, you're more than likely to try delicious, authentic food found in the country that you're in, not fast-food chains. I mean, who travels across the country to try... McDonald's? But McDonald's is the second-biggest fast-food chain in the world, and it's all over. Its menu items actually differ depending on where you are, like the McFalafel in Sweden or the McSpicy Paneer in India. Let's take a look at what McDonald's menu items look like around the world.  You can get a really good kick of heat with Thailand's Kaprao Crispy Chicken Rice. It's rice served with chicken curry.
CUSTOMER: It's actually really good. It's, like, sweet and spicy, but honestly you wouldn't think it came from McDonald's.
ALIZA GULAB: And for dessert, try its Thai pie. It's stuffed with black sticky rice and young coconut that oozes when you bite into it.
ALIZA GULAB: Canada's poutine is a can't-miss. It's fries topped with cheese curds and gravy. It first appeared in Quebec in the 1950s, and you can try it at some Canadian McDonald's.
ALIZA GULAB: While the Big Mac may be one of McDonald's most popular beef burgers, that's not the case in India.
ALIZA GULAB: About 95% of the world's Hindus live in India. Cows are sacred in Hinduism, so practicing Hindus don't eat them. As a substitution, the Maharaja Mac uses chicken and adds heat with jalapeños. It's also estimated that anywhere between 20% to 30% of India's population is vegetarian. More than any other country. And many people that do eat meat don't eat it often.
ALIZA GULAB: The McSpicy Paneer and McAloo Tikki are two vegetarian sandwich options in India. The McSpicy Paneer is fried cheese with lettuce and spicy sauce. Paneer is the common cheese used throughout the Indian subcontinent. The McAloo Tikki is a fried potato and pea patty with veg sauce, ketchup, tomato, and onion.
ALIZA GULAB: Like India, many Swedes enjoy the vegetarian lifestyle. Sweden's McDonald's offers items such as McFalafel with four or nine pieces of falafel bites. It also sells the McVegan, a soy vegan burger. One of our producers, Ju, tried it herself. Here's what she thought.
JU: It's mixed with tomato powder, onions, and peppers, so, like, what you're expecting from here is quite, like, a juicy soy-protein burger, but with quite a strong, like, vegetable taste to it as well. It's not really, really flavorsome. It just tastes like quite a good, standard veggie burger, like, made of soy protein. It certainly looks very, very impressive. Like, I really like the color of it.
ALIZA GULAB: In Hong Kong, the company created the first McDonald's Next, a sophisticated and modern version of the restaurant with an open kitchen, hand-washing tables, and silverware. At this McDonald's, you can get gourmet burgers, rich desserts, and matcha drinks, like this soy milk matcha latte and Shake Shake fries, which are also available in other Asian countries.
ALIZA GULAB: Taiwan has an extensive breakfast menu, and a lot of its breakfast sandwiches are made with toast, like this one, with pork, cheese, and cabbage. You can also get items like corn soup, and just like Shake Shake fries, some countries in Asia have Shake Shake Chicken, too.
ALIZA GULAB: Switzerland's McDonald's offers a Quinoa Curry Burger. It's a quinoa veggie patty topped with lettuce, tomato, garlic, and curry sauce between a ciabatta bun.
ALIZA GULAB: If you're familiar with American McDonald's, you know that there's only two flavors of McFlurries: Oreo and M&M.
ALIZA GULAB: But Switzerland has Toblerone McFlurries. The country is known for great chocolate, and Toblerone was invented there, so it's only fair that they made their own version of a McFlurry. Our producer Graham tasted it.
GRAHAM: That's amazing. That's so rich and creamy and sweet. That's delicious. I mean, it tasted kind of like a chocolate milkshake. Very good. I love that. I love that.
ALIZA GULAB: Saimin is common cuisine in Hawaii. The traditional noodle dish can be found at Hawaii's McDonald's. It serves the noodles in a broth with char siu, fish cake, nori, and egg. Spam is also a huge part of Hawaiian culture, and McDonald's offers a breakfast platter with Spam, Portuguese sausage, eggs, and rice. Pair it with a taro pie, made with the tropical root vegetable taro. South Africa's menu has a Boerie Burger. You can get it with one or two patties, and it's served with ketchup, mustard, and grilled onions. Boerie is special to South Africa. It is short for boerewors, which translates to "farmer's sausage" in Afrikaans.
ALIZA GULAB: Meat pies have been a staple in New Zealand since early British settlement and can be found anywhere, from bakeries to gas stations and even in the country's McDonald's. The Georgie Pie is a square-shaped pastry filed with ground beef and cheese.
ALIZA GULAB: Japan has a pretty extensive menu of burgers, and among them is the Teriyaki Burger, a beef patty with lettuce and teriyaki sauce. It also has an Ebi Filet-O, a breaded shrimp patty. And if you're thirsty, try the Melon McFloat. It's Fanta soda with vanilla soft serve.
ALIZA GULAB: A lot of McDonald's make you pay extra for condiments, especially their dipping sauces, but in Mexico, they do it a little differently.
ALIZA GULAB: Instead, it has a complimentary salsa bar. Use it on the special breakfast platter. It comes with sausage, scrambled eggs, and McMolletes, bread that comes with refried beans, white American cheese, and salsa. In Mexico's McDonald's, you can also try a pay de queso. It's a classic handheld pie crust filled with a sweet cream cheese.
ALIZA GULAB: Rice is a staple food in Indonesia. The country produces over 60 million tons per year. Its McDonald's offers sticky-rice balls served with fried chicken, spices, and chili sauce. Wash it down with black currant fruit tea, which comes in this fun purple juice pouch.
ALIZA GULAB: McDonald's in the United Kingdom might be the best place to stop if you'd like to try food from around the world. Yep, its limited-edition menu offers items like the Indian Chicken and the Canadian Stack.
JU: Got some chicken in there, lettuce, tomato, onions, and, of course, the naan on the outside. If you like garlic and you like chutney, you will love this. Ooh. OK, crispy onions and bacon and sauce and lettuce and two burger patties. That's it.
ALIZA GULAB: You can also just stick to classic UK flavors and get a traditional bacon roll. It's bacon served on a roll with ketchup or brown sauce.
JU: The bacon in there is actually quite good.
ALIZA GULAB: So tell us, would you consider eating at a McDonald's while traveling? Is it an experience to add to your bucket list? Let us know in the comments below.

MARK NIU: It's one of the great ironies in the world of digital technology. Google developed Android is the most popular mobile operating system in China, yet Google services such as search, email, and YouTube are not in China. 
[Tim Bajarin, President at Creative Strategies]
TIM BAJARIN: You can't be a world power in tech and not be in China. So that was always on the table. But Page took a very strong position early on to not comply with some of the Chinese government regulations and that forced the situation where they really couldn't do anything. But at this stage of the game, with China being such a huge economy and the tech sector in China and the demand for tech products growing so high, they can't ignore it anymore. 
MARK NIU: Lead by founders Larry Page and Sergey Brin, Google has been out of China for five years. But earlier this year it announced a new CEO, Sundar Pichai, who recently stated that despite the issues of the past, it would be a privilege to serve Chinese users and that if we could figure out a model by which we can serve those users, it would be a privilege to do so. 
That privilege is expected to begin as early as this fall, but with small steps. The information report says Google is preparing a special China app for mobile devices and extending its Android wear software for wearable devices. Google did not respond to CCTV's request for comment. 
TIM BAJARIN: They've tried to find angles and different ways to try to get into the country that was good to them and was acceptable to the Chinese government. It appears that the simplest way to do it is to try to get the Google store certified by the Chinese government. And even if it may be somewhat watered down compared to what you can get on it, it would be a step in the door for them to try to use that as a platform to try to expand. 
MARK NIU: The big question is whether the Chinese versions will be attractive enough to consumers to help Google gain ground on the numerous online stores throughout China already offering Android apps. But as competitors like Apple continue to experience double digit growth in China, Google appears to be willing to change tactics by returning for a fresh start. Mark Niu, CCTV, Mountainview, California.

LUMBOMIRA ROCHET: Welcome to Station F, of the biggest startup incubator in the world where L’Oreal is the exclusive beauty partner and where we will be accelerating 10-plus Beauty startups every year. This is very emblematic of L'Oreal’s strategic initiative to embrace open innovation and the startup ecosystem as a competitive advantage and to co-create the future of the beauty experience. After our investments in our R&I tech incubator in San Francisco, in Founders Factory in London, in Partech, L’Oreal is very excited to step into station F and to support the next generation of beauty entrepreneurs. 
Now looking back at 2017, we can say that L'Oreal is amplifying its digital leadership further on all dimensions: ecommerce leadership marketing leadership social leadership and beauty tech leadership and building new and important competitive advantages for the group. Ecommerce has passed the two billion euro mark and is now representing 8% of the group's revenues and is the third country after the US and China growing at more than 30 percent year-on-year it significantly contributed to the group growth in 2017 and all our categories are benefiting from this rising online shopping craziness. China the u.s. Korea and the UK are leading the way in this new channel, and both our Luxury and Active Cosmetics Divisions are now over 10% of their revenues in e-commerce.
As our consumers are increasingly and massively connecting with our brands online, our marketing is shifting towards a digital first approach. With more than 38% of our media invested into digital platforms a massive 1 billion audience on our websites and close to 250 million followers on our social networks our contents need to be adapted to the new 
creative codes of digital. Today's consumers crave for ultra-short, impactful, animated contents. Following the visual codes of GIFs and Boomerangs, we call them “Billboard in motion”. 
Our Colorista art by L’oreal Paris, Fructis by Ganier, Mineral 89 by Vichy, or Vernis a Levres by Yves Saint Laurent campaigns were designed for digital native platforms such as Facebook and Instagram and performed really well with our consumers, showing high engagement and shareability rates. Fast paced, colorful and immersive, these campaigns are clearly paving the way for new marketing at the digital age.
Now social connection engagement and influencer marketing are obviously a growing part of our brand’s marketing strategies. In 2017 four of our brands are in the top 10 of the earned media value from being mentioned on social networks demonstrating that our brands are part of our consumers spontaneous conversations online: L’Oreal Paris, NYX professional makeup, Maybelline New York, and Urban Decay. On the same line more than 170 million reviews have been done for our brands on the different in commerce platforms and beauty destinations proving the consumers’ love for our products. Our brands never stop innovating in the digital field by leveraging the endless possibilities offered by new beauty technologies such as augmented reality and artificial intelligence to provide new and useful services to our consumers such as 3d makeup try on, shade finders, 3d hair color try on, skincare diagnostic, service bookings at salon, smart sampling etc.
These services are powerful tools to increase the consumers engagement with our brands and to help them find the right brand the right product or the right color for them. personalization is becoming central to the beauty business and our brands are taking it very seriously. our consumers across the globe are also increasingly asking for personalised contents that match their interests for our beauty categories. Through our precision marketing program we are increasingly personalizing the contents we sent to our consumers to be relevant in their context and across their beauty decision journeys and we strive to send them the right message at the right time. We personalize for example our advertising our emails our website landing pages our products which increases significantly the levels of engagement consumers have with our brands. 
Loyal digital transformation is moving fast and we are also very much working to make it sustainable. There is no successful and sustainable digital transformation without clear return on investment digital ROI return on investment is a big priority for L’Oreal
and our teams are closely following the impact and uplift of our digital investments. the digital team has developed a set of proprietary powerful tools that are now available to marketers and media directors to measure real time the performance of their digital campaigns and reorient their strategic investments towards the best performing channels. there is no successful and sustainable digital transformation without data protection. 
L’Oreal is committed to respecting consumers data privacy laws all around the world and to ensure that consent and transparency sit at the heart of our relationships with our consumers. We see data protection as an act of corporate social responsibility as much as a legal requirement that will promote trust and loyalty between our brands and their consumers. There is no successful and sustainable digital transformation without embarking training and motivating all the employees and staff. A massive upskilling program has been going on for three years with more than 19,000 people trained to digital L’Oreal has partnered with General Assembly a leading digital education provider to develop and roll out an online test to assess the level of digital proficiency of our employees and candidates providing them with a personalized upskilling track to excellence. to conclude thanks to its capacity to adapt and fitness for change L’Oreal has embraced digital as a powerful new way to connect to our consumers, build new competitive advantages, in a sustainable respectful and inclusive way.
[Music]

Chapter 15

DON MCMILLAN: There are some things I hate about PowerPoint, and I figure it's kind of my duty to point them out. So here we go. Here's common PowerPoint mistakes. Number one-- people tend to put every word they are going to say on their PowerPoint slides. Although this eliminates the need to memorize your talk, ultimately this makes your slides crowded, wordy, and boring. You will lose your audience's attention before you even reach the bottom of your-- aaahhhh-- first slide. Please-- please don't do that any more, please. 
Number two most common-- many people do not run spel cheek. Big mistak. Nothing makes you lok stupider than spelling erors. If it's got a red line under it, recheck the spelling. And, finally, I hate this. Avoid excessive bullet pointing, only bullet key points. Too many bullet points, and your key messages will not stand out. In fact, the term bullet point comes from the people firing the guns at annoying presenters. Hence, the bullet point. 
Bad color schemes-- not good. Clashing background and font colors can lead to distraction, confusion, headache, nausea, vomiting, and loss of bladder control. I can't stay on that one too long. Here's something I've noticed-- the number of PowerPoint slides you have in your talk, the less useful your talk actually is. Unfortunately, my presentation is right there. 
And then there is this. People love to pack data into their presentation. They just shove more and more data, thinking it's better, but it's not. The more data you have, the harder it is to read your slide, and the effectiveness plummets. 
Now you can improve the effectiveness by adding some shading and some 3-D effects and then some second order and third order effects, and then-- I know, let's add some labels. That'll help a lot. And that that's pretty much every marketing slide I've ever seen right there. Then someone, like VP of Marketing, standing there going, it's real clear in Q4. What the hell are you talking about? 
Now I'm into animation. People becoming animators in PowerPoint. You can have things flying all over the place. And that can be good. If you're a visual learner, that will improve the effectiveness of your performance. But if you're easily distracted, more animations and people will have no idea what you're talking about. They're just, wow, that is cool, wow. 
And there's regions here, by the way. There's the simple, but effective region. There's the active, but confusing. The effective, but boring. The active, but ineffective. The dull, but static region. The busy, but useless. The ADD only region. The useful, but amusing. The stupid, but confusing. The dull triangle, the hyper triangle, the sleepy square, the dizzying pentagon, and everything else I just call pointless motion. 
That slide right there took me an hour and a half to make right there. PowerPoint can just suck the life out of you. It's amazing. I've also come up with this. It's a kind of a little science I've invented called font analysis. Basically, the font you choose says something about who you are as a person. There's a huge list of fonts, and you choose one, and that says something about you. So be careful the font you choose. 
For example, if you choose Courier New-- it happens to be my favorite-- you're probably organized and structured. If you choose Matisse, it means you're artistic. And if you choose Times New Roman, it means you're lazy, apathetic, and unimaginative, and you always use the default.