Those great moments of clarity when the timing, idea, product and marketing seem to distill upon your mind like spring dew are few and far between. When they happen, drop everything and start writing! Next don’t lose your notes! When Howard Schultz jumped on a plane to go see who was behind a little coffee shop called Starbucks, he had no idea what he would find. He sold house wares, what did he know about coffee! He was dying to know how two coffee shops in Seattle could outsell the entire Macy’s account of a special coffee machine.
I am sure he had no idea that he would one day sit on top of the largest coffee franchise in the world some day. His gut told him, I smell the smoke; I need to go see how big this fire is.
In 1982 Dietrich Mateschitz found himself in steamy Thailand nursing a major jetlag. Asia is full of little shops with strange potions in even stranger bottles. He probably jumped out of a tuk-tuk at the first site of a store that looked remotely close to a pharmacy and somehow communicated his German clock has not reset to Bangkok yet. Maybe he was watching a kick boxing fight and noticed two Red Bull logos on all the shorts and banners and thought, “why am I watching this, I should be sleeping, and what is up with those Red Bulls?’
The details are unclear, but he knocked back a can and BANG, the big idea hit him.
Dietrich was the Marketing Director for a German toothpaste company and licensing and marketing was already in his blood. His big idea, let’s license this drink, change it to western taste buds, soup up the branding and see how much we can make selling to truck drivers, travelers anyone who needed a quick boost.
Do you think in 1982 he could see himself on the Forbes 400 2008 biggest swingers in the world list?
#260 all self made! Check out his photo. Like a good race horse, boxer, actor…Billionaires and future billionaires have a certain look, the vibe.
http://www.forbes.com/lists/2008/10/billionaires08_Dietrich-Mateschitz_DGAD.html
No this is not a lesson on how to start a billionaire face franchise. Our friend Dietrich however, followed a proven formula to get fabulously rich and here is the lesson we can learn from him.
Step #1 Do something, anything.
Move around, travel, read, talk to people, do something for someone without any expectation of a return. That creates the ingredients. Great ideas are like good soup. You throw in a lot of great stuff but you need to let it simmer, it takes a while. Killer home runs start with fresh ingredients.
Step #2 Keep an open mind.
What does a marketing guy at a tooth paste company know about creating a global beverage empire? Ask Howard Schultz the same thing about coffee. Ask Ray Kroc when he was selling milkshake machines door to door, did he ever think he would control the biggest hamburger franchise in the world. They all had a common winning trait. A fertile open child like mind to anything new and creative. When you hear negative people that never offer a better solution, just tune them out and eliminate them from your social circles if possible. Anyone can criticize, but without offering a better solution, they are just a pain in the butt and they will never help you get to billionaire row.
Step#3 Play the long game.
With a massive 70% market share for energy drinks you would think that it was ok to kick back. Dietrich has what all billionaires have, vision. They can see 4 or 5 moves ahead. A brilliant move he made was to link Red Bull with sports early in the game.
Great marketing is a mile deep and an inch wide
While every beverage company was playing the short game brewing up new caffeine in a can ideas glutting the market, Dietrich was busy buying up sports franchises. Investing today's earnings on yesterday's business worked great during the industrial production phase 100+ years ago. Today old thinkers will always get crushed by nimble visionaries who take today's cashflow and invest in future businesses. When the competition comes, the winners have already moved the brand to a new and larger stage, leaving the copy cats holding a bag of thin margin, profit sucking vampires.
Step #4 “Don’t get safe, get creative.
The natural tendency when we are ahead is to protect the lead. Yea that worked for Memphis Monday night for the big game right? You are up by three points with 20 seconds left. Foul the guy! Don’t let him go down and drain a three, force him to a one on one! I know fouling when you are ahead and time is running out might seem counter intuitive but going against the grain, fading the herd is often the winning idea. Safe in marketing is a fast track to the poor house. Safe might work in the short run but it is a guaranteed loser in the long run. History is full of dead safe companies you have never heard of.
Additional articles:
“Why most advertising and investment ideas are wrong.”
http://franchisewhale.com/2007/12/why-most-advertising-and-investment.html
“Who knew cavemen could sell insurance.”
http://franchisewhale.com/2007/12/who-knew-cavemen-could-sell-insurance.html
OK, hit the road, keep an open mind, think five chess moves ahead and get creative! When you get on the 400 list, please thank the Whale, I know I will.







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