Ultimately, it comes down to sales, so in April when the product hits the shelves, the 3 flavor ‘teams’ will get their friends to vote for their favorite, which becomes part of the line with a launch on Labor Day in 2010. The fans will design the launch campaign as well.
While this won’t be the first Social Media Community Designed beverage (that honor seems to go to Vitamin Water Connect), Dew’s effort did more to involve more fans, and had voting or fan participation at every stage, up until the launch.

This campaign has so many good marketing elements to it, so here are some lessons for your future marketing. (There are probably more elements I’m missing.)
Brand Loyalty: Showing fans you care and asking them to tell you the next product generates interest – especially among your most rabid fans.
Social Sharing: Use of Facebook, Twitter, YouTube, and 12 Seconds.TV and more got fans voting and promoting the entire effort.
Word of Mouth: The name contest required votes and followers on Twitter (see http://twitter.com/509Cyclone for an example). Many of these accounts got 500 or more followers in just a few days. These people had to make a little effort to vote, and share with their friends. And the accounts interacted back with their fans.
User Generated Content: The 12 Seconds TV effort generated a number of very clever spots watched by hundreds or thousands of people.
PR: I’m writing about a soda I don’t even drink (since I’m decaffeinated.) They have a good story to tell the press.

Ultimately, though, we’ll see how many sales rack up with the 3 test flavors, and whether “everyone gets a trophy” (they release all 3) or whether they keep one for launch on Labor Day.  I’m Interested in knowing how this ends. What else can we learn from efforts like this?

*Disclaimer: I was invited to the reception by Porter Novelli and Pepsico friends, but received no compensation for this blog post (other than a few hors d’oeuvres and some Mountain Dew samples at the reception.)

Related articles by Zemanta

• Dew Does The Crowd (wired.com)

Meanwhile, back in the real world, the media business is being turned upside down by our new freedoms and our new roles. We’re not just readers anymore, or listeners or viewers. We’re not customers and we’re certainly not consumers. We’re users. We don’t consume content, we use it, and mostly what we use it for is to support our conversations with one another, because we’re media outlets now too. When I am talking about some event that just happened, whether it’s an earthquake or a basketball game, whether the conversation is in email or Facebook or Twitter, I want to link to what I’m talking about, and I want my friends to be able to read it easily, and to share it with their friends.

This is where my reality lies. I seem to get a huge volume of information daily, but the best information comes from my friends (and by friends, I mean both those who I really know and spend time with, and those who are in name-only on social networks).

Clay names this ‘superdistribution’ – the sharing of content from friend to friend. I’m more likely to learn about breaking news from @breakingnewson on Twitter or someone re-tweeting that than I am by reading NYTimes.com these days. And that, in a nutshell, is a big problem for the Times. It is not un-solvable. And I do believe people at NYT are thinking about it. It will be interesting to see how quickly that translates to action.

I ran into Lauren Solomon of LS Image Associates, whom I worked with several years ago, and haven’t seen in good while. She introduce me to Elyissia Wassung of 2 Chicks with Chocolate.

We went inside, and here are my live blogging notes (excuse typos and partial sentences – this is raw note-taking).

Street Smarts Live – an Inc. Magazine Event:
The Knack, How Street Smart Entrepreneurs Learn to Handle Whatever Comes Up, by Norm Brodsky and Bo Burlingham.

How Street Smart Entrepreneurs Learn to Handle Whatever Comes Up.

Norm: 1st Business  asked How were our sales yesterday didn’t understand that there were more than sales gross margin, profits, etc are important
Cash is the hardest commodity to get, and easiest to spend. Lots of first time entrepreneurs think image type things like stationery is important, decorations, etc. They’ll need to have cash later on, don’t waste on fancy stuff. He always bought furniture at bankruptcy or close-outs.
Logo design did within company  – never outsourced to designers.

Sold recent business for much more than last one because it had better gross margins important to understand.

Norm always learns from mistakes.
Biggest mistakes entrepreneurs make is in planning  don’t just start business do free market research also, other executives in business  not in  your exact field or territory may answer questions for you. Go to sector groups.
Make sure business you are starting fits in with your life/life plan. For example, if you only want to work 3 days a week, don’t start a 24/7 store. His long range plan was to take off 16 weeks a year. It took him 15 years to set the business up that way, but he worked to it.
Make sure you’re capitalized sufficiently to get to level that you don’t need to be borrowing. If business will cost 200k, put 50k in reserve (25%).
Most people are overly optimistic in projections.
Most common problem in running, on going business: people don’t understand gross margins. They’re not making enough in sales. Sell service for 10$, your direct cost is $6, 4$ is your gross profit. $4is used for overhead,   If we hire and pay salesperson 40k a year, we need 100k to hire him or her.

Accounting is Quickbooks good? QB or any accounting system crap in, crap out. If you do it by hand you may understand relationship between numbers more directly.
If you follow numbers by hand, it may show you trends that you might not notice on computer.
Accountants are great historians, but when you get year end or quarterly statements it may be too late. You need understanding quickly.
Q: as business starts, most people micromanage everthing. As business grows, you have to hire others. How to do this best.
A: Important to set culture of the business. Learned he’s a terrible manager liked to be involved in everything. It is hard for entrepreneur to let go and let others do their jobs. Also promote people to peter principle to too high a position. Learned also to hired people for attitude, and can teach them abilities. Try to promote from within. If you hire good in the beginning, you’ll be better later on.
Let people make some of own mistakes.
Eventually let staff lock him out of staff meetings.
Q: When’s the right time to step out of the business?
A: business must be running on own cash flow, and you know that people there can do the job.
Q: Bo there are different stages to this at one time, you backed off from meetings, but you were still involved.
A: He was also making decisions that were in best interest of him, not of the company. He stayed on for a few years when he sold company, and there were challenges.
Q: What happens when you have been running business for years, economy changes, and you have to grow it. The employees aren’t of the ability to grow it?
A: You have to take emotion out of business decisions people work with him or for him but they are not friends, because sometimes you have to make decisions that affect them in a mental or monetary way. If you make decisions about what’s best for company, you may hurt people along the way but the company, if it gets bigger, may be better for everyone. The business comes first.
Q: Did you have investors invest in  your companies?
A: First business funded by lawyers and accountants that financed him. He eventually bought them out (didn’t have a buy out agreement, so there was a dutch auction). He had customers fund cash to fund his buyout. 95% of all companies do <$1M a year in business.
Only 5000 companies do 30m a year or more. Microsofts and HPs are the rarities in business.
Q: How to get away from staff and day-to-day to create systems and processes
A: Believes in critical numbers simple reports, weekly: Sales, margins, new boxes in, etc. and a few more, and via that he can tell how business is going. In fact, staff will tell him how things are going put in notes when things change.
Also, surround yourself with someone who’s great with numbers, and other weak points, but learn to understand it.
Bringing up 2 entrepreneurs now, Brian Kelly, City Beans, and Mike ? West End ? Express
Mike: Wanted to get from $1MM to 10MM a year, Norm told him he couldn’t do it in way he was talking about got him to $3MM, then eventually. They allowed him to do it while taking off weekends, having a life plan. If he had done sales sales sales, he never would have been able to enjoy life.
Brian: Went to Norm, article about shredding business, had a coffee business and was working as fireman, Norm helped him get business started.
Business nightmare starbucks was moving in next door to his store. He had been competing with Dunkin, business was cash-flow positive. He was worried that they’d cluster around him and drive him out of business. Norm helped him look at it a different way – $bucks is big company, what can I do that they do, and how can I make up for the loss of business they’re going to have  what’s the plan? The answer was he had done catering for years they did soup, salad, sandwiches, and did corp catering. Lost 11% but gained it back in catering business.
The important thing is you’re going to have competition, you have to figure out why you’re better than everyone else.
Norm: Dad was door-to-door peddler bought dresses for $4, sold for $8. There are opportunities everywhere.
Customer asked box storage question he did research, found industry prices, and realized he had opportunity to outsell them. Put boxes in his office to start, eventually became largest archival storage company in the country.

Q: New entrepreneurs most difficult part is finding sufficient capital. Where is capital most easy to access?
A: Norm: it is A difficult part, always an issue. Most people start with their own, bank accounts, 2nd mortgage on house, go to family and friends or rolodex for money. Some unconventional avenues  – going to potential customers  get them to invest in your company if you’re going to produce service for them. You may have big idea, but start at a smaller level. Get investor to help you do small part, before you go to larger idea.
Brian financed first Coffee business by working 2 or 3 jobs, took money from tax returns, credit cards, built coffee bar himself as carpenter.
Q: You spend time finding the Niche you have to continue to look for ways.
A: Perfect Courier  the only computer you could buy was an IBM32  a big box that could take customer addresses and total a bill. Was trying to get Scalia, McCabe, Slobes as a client. Problem they had was a chargeback to clients they were not getting the data in way that accounting department could use it. He took 1500 tickets, had 20 typists type the bills perfectly  the agency’s accounting department wanted the program he said it was proprietary. He had to have 60 typists until he got the thing programmed 4 months later.
He went from courier to a billing service.
Niche he discovered with storage service he was closer into town than big companies like Iron Mountain he could do faster delivery.
Q: Focus on making sale, getting customer and develop a relationship What’s value of capital vs getting customers?
A: You’re either an onsite or offsite shredder offsite was 750K, onsite cost 250k.  Partnered with someone outside of town. Eventually he doesn’t own a shredder he basically owns customer relationships and partners with everyone.
Q: You’re making money – how to expand correctly
A: Before you start business, you don’t know opportunities stick to One. Once you’re running business you see many opportunities. Once you have cash flow sufficient, you can expand, but also do them one idea/expansion at a time.
Be careful you don’t kill golden goose.
Q: Debt vs equity financing? Challenge of getting rid of equity
A: doesn’t like to give away equity. In beginning, you may not be able to get rid of debts quickly enough.
Q: Finding partners and structure
A: His 2 partners were sweat equity partners, took >20 years for them to get it, with right to buy it out.
Q; In book you talk about compensation of sales people no commission  how do you keep them motivated?
A: Doesn’t believe that only commission motivates people. If you’re not feeling fairly paid, or happy with job, they can find other jobs. They have a culture, and pay sales people fairly, and prosper for bonus, and how company does. Sales people also want consistency  it can be positive for them. Sales people can cover for each other.
Q: Have run by KASS rules up to now, has challenge finding a good lawyer.
A: Rarely gets involved with lawyers both sides walk away a little unhappy is a good settlement. Lawyers shouldn’t make business decisions for you  they’ll tell you about the law.

Last week I wrote about the Elevator Pitch, Reloaded. Today at the Expo, I got a hallway elevator pitch that hit many of the important points in that article. The person didn’t know I was a blogger for Inc., or that I wrote the article. She just gave a passionate pitch that really hit all the points for me, so I thought it’d be worthwhile to show you an example of someone doing it right.

pitching, elevator pitch, inc.com, howard greenstein, howardgr

Were you paying attention when Chris Brogan gave 100 Personal Branding Tactics Using Social Media?

Do you promote your blog to offline audiences? Maybe you should?

More as I dig out from a week away.

As I posted on the Social Media Club site, SU2C is an effort to get some much-needed attention on the problem of Cancer, and get some money in the hands of researchers trying new things to solve difficult problems.

SocialVibe is donating $1 for each blogger that signs up to their service via the special url http://www.socialvibe.com/SU2C, as well as turning points for showing these ads on Facebook and other social networking sites into real dollars for the SU2C cause. They’re hoping to raise $50,000 by doing this.  So, you’ll see this ad on my site, and on my Facebook page. And, hey, SocialVibe even referred to my Social Media Club post on their page. So, I’m returning the link and asking you to get involved too. If you have a blog – run an ad for a few weeks, and get that $50k to the Cancer Research labs via Stand Up To Cancer. Oh, and you can donate directly as well.

“Making love to customers is not a campaign, but a lifestyle,” says Saul in his talk. What does he mean? “Making love to your customers is not something that you can do for a certain amount of time–it is a company commitment. You can’t run this like an ad campaign–customers will sense when it is over and leave you. Over-exceeding expectations means treating your customers better than any other company relationship your customer has ever had.” This is something the Nordstrom executive or a manager at the Four Seasons would smile knowingly and nod at.

Saul’s company, Freshbooks.com, where he’s Chief of Magic, spends time, effort, people, and resources on creating relationships with customers. The central assumption in these relationships is that Freshbooks employees love their customers–even if the customers have something bad to say. Saul considers this a great opportunity to turn a detractor into someone who realizes how much Freshbooks loves him or her.

Read the rest over at Inc.

Online Spin » Blog Archive » A Different Perspective On Social Media Marketing

Last week I was invited by Dr. Augustine Fou, senior vice president/digital strategist, MRM Worldwide, to speak to a great group at MRM in an inter-agency meeting focusing on understanding social media’s implications for the agency business.

Some good discussion over there in the comments, too.

Chances are, if you’re not an early adopter type, you may not have heard of Twitter, the online community that is a kind of instant-messaging social network. Users send updates of up to 140 character (about 2 sentences) out to their followers–people who choose to receive their messages–and read the messages of those they follow.

Read the rest at INC’s Startup Blog.