King St News

Chris' Column - Failed Campaigns

Mon, 29 Aug 2011 00:00:00 +1200

The marketing world is littered with case studies of failed campaigns. It’s amazing when you think that with smart people, research, market knowledge and basic common sense that things can go wrong. But go wrong they do, helping perpetuate the myth that half of what is spent in advertising is wasted.

When the book on the worst marketing disasters of the 21st century is put together, it’s a sure bet that the Telecom Abstain for Black campaign will have its very own chapter.

The campaign was actually never launched. It was leaked to the market a few days before launch date but that was enough to consign it to an international laughing stock. For those who missed it, the whole campaign was based on the idea that we should abstain from sex for the duration of the world cup to show our support for the All Blacks. In return for this, we would be given a black rubber ring to wear so we could tell the world we were abstaining for black. The campaign was to be fronted by Sean Fitzpatrick who was to feature on billboards, press ads and elaborate TV ads. The TV ad that was shown by the news media featured Fitzpatrick driving a giant pink hand while he extolled the virtues (so to speak) of abstaining. It was unbelievably badly done. Hundreds of thousands of dollars were spent on production.

As news came to hand, the media went into overdrive. A day after the campaign was leaked the newspapers, radio and TV were all over it. Then the international media got hold of it and before we knew it, the campaign was being reported in the UK, Europe, Australia and the US. And instead of people laughing with it, they were laughing at it.

As the frenzy reached its height, the social networking sites went into overdrive. I happened on a couple of them and found some absolutely hilarious exchanges – much of which would not be appropriate to put into print. The attacks on the campaign spread so quickly it was frightening.

Recognising that they were on a hiding to nothing, Telecom did the decent thing and pulled the campaign before it went to air and spared us having to endure it in its entirety.

And then began the post mortems. There have been many. Bad judgement, an opportunity to properly leverage a prime sponsorship opportunity missed, atrocious PR, huge damage to Sean Fitzpatrick’s image, terrible brand association and just a terrible idea being some of the criticisms. There are no positives to be found and it’s just amazing that it went through a whole development and approval process without someone saying this is wrong.

There are so many lessons marketers could learn from this, you could write a whole new book about it. One of the things that amazed me was how quickly the public managed to get mobilised to have their say. Talkback radio ran hot, the bloggers got into gear instantly, the online news sites had literally hundreds of comments and, of course, Facebook became a vehicle for anti abstain in black campaign sites. Even Telecom staff set up a site in protest. It was unbelievable how quickly the public sprung into action. Because we have our own sense of ownership of the All Blacks and a love of the game of rugby, we were horrified to see these two great properties being so systematically undermined. On top of this because it was such a bad idea, it provoked an unprecedented reaction.

But it told us that if you get it wrong or upset the market in some way, you are going to hear about it straight away. Through posting comments online, calling talkback radio and setting up social networking communities, consumers can have their say in ways we’ve never seen. Maybe Telecom should have asked the public what they thought about the campaign before they embarrassed themselves internationally. They would have got the same response. And saved themselves a lot of money.

Chris Williams is Director of King St. chris@kingst.co.nz

Chris' Column - Home of Cycling

Wed, 10 Aug 2011 00:00:00 +1200

Public submissions are open for us to have our say on the much debated Home of Cycling, a world-class cycling facility that will be built, subject to funding being finalised, at St Peters School near Cambridge. The joint submission made by Waikato/Bay of Plenty was won against some hot competition around New Zealand including Auckland, Manawatu and Canterbury.

The Government, corporate sponsors, community trusts and other stakeholders are contributing 75% of the total capital cost of the facility. The remaining 20%, $6 million has been requested of the Waikato District Council and is now the subject of a public submission.

Meanwhile, debate rages. Much of it is emotive and based on the fact that we have enough debt, we’ve been burnt by the V8’s and that the predictions of significant economic impact are pie in the sky.

It’s hard not to get caught up in all the emotion. Equally it is impossible to ignore the fact that we live in very tough economic times and the timing is not ideal.

Putting aside the emotional stuff, it’s worth dwelling on the facts. The Home of Cycling will be a community facility and will deliver programmes from Learn to Ride to social competitions across all four disciplines – track, road, mountain bike and BMX. Bike NZ will relocate its track, road, mountain bike and BMX development and high performance programmes to the region and it is expected we will get $11.5 million per annum in direct economic impact. This has been reviewed by independent research. The facility will also link the national cycleways from the north and south. This is all before we see any international competitions and the associated visitors and media contingents.

As far as the numbers go, the impact on the Waikato ratepayer would be on average $3 per ratepayer, per year based on 20 years at 7% interest. Once again, it doesn’t feel to me to be too much of a burden. Of course there will be an opportunity cost as far as the money is concerned. The flipside of this is you would want to be sure that we would get the same or better returns if the money was invested in something else.

When you weigh up all the facts, The Home of Cycling looks very compelling. It will be a year round operation with peaks along the way when we host competitions. It will involve the whole community, promote health and well-being and family participation; it will create new jobs in the region and bring new people here. It will also help position the region as a centre of excellence, put us on the map internationally and bring benefits we will only discover once it is up and running. But it has to get up and running first. And it feels like it would be an absolute travesty if we were to lose it. If we do lose it, I am sure we will all die wondering what might have been. We are in this position because we won the rights over many other regions in the country. Both Auckland and Manawatu have the funding in place and are poised to trump us if the money isn’t raised here. Quite aside from the fact that these two regions can obviously see the benefits of the Home of Cycling, it would be a terrible thing to lose out to either one of them because we couldn’t come up with the money.

It seems a shame that we’re coming out of a recession and there’s a degree of caution in the marketplace. It’s also a shame that events such as the V8’s have caused a drain on our resources and made us a bit gun shy. The truth is that the Home of Cycling is a genuine investment that will bring on-going benefits – not just over one weekend in the year. So there really is no comparison with the V8’s. So I believe we need to think long term. Being home to an international centre for one of the world’s biggest sports will definitely be a huge asset for the region.

Chris Williams is CEO of King St. chris@kingst.co.nz

Chris' Column - News Corp

Tue, 26 Jul 2011 00:00:00 +1200

It’s been fascinating to read the on-going saga at News Corp, the media empire run by Rupert Murdoch and his family.

It all started at the News of the World where stories emerged of some of the most despicable behaviour by the newspaper’s journalists. This has taken the form of phone hacking whereby unsuspecting people, dead and alive, have had their phones tapped in order to enhance a story. It was so bad that the parents of a young girl who was murdered actually started to believe she was alive because her phone appeared to have been used by her. As other stories came to light, various people have fallen on their swords from the Managing Director of News of the World to a senior police figure in England.

In an effort to smooth the waters and to enhance the chances of his acquisition of a bigger stake in BSkyB, Rupert Murdoch closed down the News of the World, bringing to an end a 168 year history and thereby the death of the largest Sunday newspaper in the world. An unbelievable move. But if you think this was all about PR, think again. It was purely and simply about business and cutting their losses. A move that has backfired as News Corp has been forced to back out of its plans to up their stake in BSkyB.

Meanwhile, the Murdoch entourage has hit London and is embroiled in one of the most epic damage control exercises we are every likely to see. As the biggest family of media moguls in the world have become the biggest news story in the world, it’s hard to know how long the story will run but it could be that we are seeing the beginning of the end of a true empire.

News Corp is an absolute behemoth. It has interests that span all forms of media and entertainment including cable network programming, filmed entertainment, television, direct broadcasting satellite television, publishing and digital media. Companies such as Harper Collins, The New York Post, The Wall Street Journal, Fox News, 20th Century Fox, BSkyB, The National Geographic Channel and many, many others fall under its widespread umbrella. And in the intensely competitive world of media and entertainment, they would have had their fair share of challenges over the years. As with many media organisations they have to deal with the proliferation of media choice and changing behaviours in the online space, all culminating in the fact that we are now becoming more and more in control of our media consumption. Instead of waiting for our daily newspaper to be published to get our news, we can get the latest headlines online and completely bypass the need to hold a printed form of the news in our hands. The same goes for television of all types – from the news to entertainment. The bottom line is that it is harder and harder for media and entertainment businesses such as News Corp to stay ahead of the game.

So while it is absolutely staggering to read that the most underhand methods have been used to break the type of stories that sell newspapers and boost TV ratings, it probably stands to reason that in a company driven by a megalomaniac leader, no stone would be left unturned to win the readership and ratings wars.

And along with incredible size, comes influence. So one of the most disturbing aspects of the News of the World Story is in the fact that the Murdochs have used their sizable clout and media reach to influence (bully might be a better term) politicians and business leaders, no doubt in an effort to enhance their position in a given country. All in the name of keeping profitable and expanding the empire.

There’s a saying that power corrupts, and absolute power corrupts absolutely. This definitely applies to News Corp. And the other saying that springs to mind is that what goes around comes around. It may just be that these two sayings are going to collide in a perfect storm to bring about the demise of the Murdoch empire as we once knew it.

There could never be a valid reason given for kicking the parents of a murdered schoolgirl when they were totally down and out. There could never be an explanation that could in any way redeem the company and the people involved. That, to me, is why it is over for the Murdoch’s. They will never have the mystique and mana they once commanded now that they have been the subject of the most sordid and shocking news story the media business has ever seen. And, as if to rub salt in our wounds and confirm why it really is all over the patriarch himself, Rupert Murdoch, denied any responsibility and laid the blame squarely at the feet of people he employed. Power not only corrupts, it makes you forget where the buck should really stop.

Chris Williams is CEO of King St. chris@kingst.co.nz

Chris' Column - Critics Hoist by their own petard

Wed, 29 Jun 2011 00:00:00 +1200

It was with great relief that I found out the results of the Wel Energy Trust election on the weekend. The Power On, Discounts and Grants team gained a clean sweep with all seven members taking the seven positions available. My main relief was not just to do with the fact that the best candidates won; it was more to do with the fact that we helped them with their campaign strategy so we were very keen to get them over the line, given the faith they put in us.

It’s hard at the best of times to get the result you want with any marketing campaign, so we’re certainly not going to get too up ourselves over this success. Equally, five of the team were incumbents and, with the addition of two excellent new candidates, they were a very hard line up to beat.

But a win is a win and it demonstrated, once again, to me how many layers you need to put together an effective campaign. Press and radio advertising, accompanied by brochures and corflute signs formed the basis. Back in the old days, this would have been the main body of the campaign. The candidates would have called all their contacts and that would have been that. But times have changed and the way to really get the jump on the competitors is now taking place in the mysterious world of digital media. Email, social networking, blogging all took their place in the campaign as we spread our various nets around the community. The combined numbers of all our collective data bases went into the thousands which ended up being a very powerful media channel in its own right. And in the end the whole added up to be greater than the sum of the parts and we managed to make it work. Some good lessons for the next time.

And as is the case with many political campaigns, we saw a fair amount of mud slinging and personal attacks. It started early on in the piece with a past trustee having a go at Chairman, Mark Ingle and accusing him of favouring projects he had an interest in. Utterly outrageous claims that I felt compelled to write to the editor of this newspaper about. A letter then followed about my friendship with Mark and how I travelled to Nepal with him and his wife. Hardly ground-breaking news I thought.

Letter after letter followed accusing trustees of back room dealing and conflicts of interest while trying to sow seeds of doubt over the trustworthiness of the team. Over this time, not a single piece of correspondence was published that pushed policy initiatives or new ideas. Our strategy was to not get into a street fight and keep pushing the key messages. My own view when you are working at the absolute coal face of political campaigning is that if you are being provoked, your opponent is actually waiting for you to throw a punch. And as happens in rugby, the person who throws the punch gets sent off and is, therefore, the loser in the contest.

But what surprised me most was how much exposure the letter writing brigade gave to the Power On, Discounts and Grants team. It was a completely new brand developed for the campaign and we made a big effort to get as much recognition as possible. And while some of the letters definitely got under our skin and tempted some candidates to come out swinging, they actually were a big help in maximising exposure for the brand and some of the candidates. A good case of being hoist by your own petard.

Chris Williams is CEO of King St. chris@kingst.co.nz

Chris' Column - Fieldays

Tue, 14 Jun 2011 00:00:00 +1200

In case you hadn’t noticed, it’s Fieldays time again. As I write this column a temporary city is taking shape out at Mystery Creek as over 1,000 exhibitors set up and prepare for a crowd of around 120,000 people - mainly farmers, who will be making the trek here to network, get ideas, socialise and open their wallets as they invest in their businesses.

The largest event of its type in Australasia has a huge impact on our city – try finding accommodation this week, or a spare table at a restaurant and don’t be surprised if the “no vacancy” signs are up. As an event it is enormous and totally eclipses the likes of the V8’s in terms of its impact on the city. And because it’s all about agriculture, there will never be any question as to its long term sustainability. Like all businesses it will need to adapt to the changing times – globalisation and the digital age being just two of the influencing factors – but you could virtually bet the farm that Fieldays will be around for a long time to come.

From a business perspective, we have seen the 2011 Fieldays as something of a turning point in the economic cycle. I am touching wood as I type this, but it does feel as though there is a cautious sense of optimism emerging.

Going back 12 months, you could almost cut the air with a knife while walking around Fieldays. The mood was very gloomy and this was reflected back from many of the exhibitors who were having a genuinely hard time. On top of this, farmers had adopted a very “gorse pockets” mentality and were not at all keen on spending too much. Debt reduction seemed to be the big driver. These factors, along with the overall global climate, meant 2010 Fieldays was not as positive as other years.

From King St’s point of view, the mood back then translated straight to our bottom line. Whereas usually we have a couple of big months in May and June as we produce display material for our clients, there was a notable lack of any large scale work as many clients made do with what they had.

This year has been completely different. There has been a greater willingness to invest which suggests a renewed sense of confidence in how things are shaping up. I am very happy to report that we have had the busiest run up to Fieldays than we’ve had in our 12 year history. Long may it continue!

And the great thing about this is that the whole office is abuzz – the team are motivated and have all risen to a new level. There is nothing like a daunting work load and some exciting new projects to work on to get people to go to a new level. This could not be more different to the position we were in last year when it was doom and gloom and the whole world seemed to be dragging it's feet.

So at our level, we are feeling the effects of Fieldays and absolutely loving it. The event will have a big impact on our business this year, as I expect it will for the whole city. From what we gather many of our suppliers are absolutely rushed off their feet as well.

And even though we have seen a few false dawns as we go through the recovery stage post-recession, this may be the time where we look back and say it was Fieldays 2011 when things started to turn. Touching wood!

Chris Williams is Director of King St. chris@kingst.co.nz

Chris' Column - The Budget

Tue, 31 May 2011 00:00:00 +1200

We often get asked in our business what is going to happen when money gets spent on marketing and advertising. Often, we have a fair idea of what the results will be; and there are plenty of occasions when we’re really not sure – mainly because we’re trying something new. If we get the basics right, we can usually ensure we get some kind of a response. One of the things I do know for sure is that if you do nothing, nothing will happen in a big hurry.

And so it went a couple of weeks back when we were served up the 2011 budget announcement. You can hardly call it an announcement in these days of spin and sound bites. We were actually fed a slow diet of budget titbits over the weeks leading up to the big day, so we pretty much knew what was coming. So, technically, there shouldn’t have been any disappointment. I, for one, felt let down.

Maybe we have grown to expect too much from the ubiquitous and highly likeable John Key. Maybe we’re so deeply in debt while swimming against the recessionary tides, that there’s not a lot that can be done. Or maybe, it just is what it is and we can either suck it up or move to Australia.

But maybe, the country is being run by a team of people who completely lack for original thought and are incapable of coming up with any game changing ideas.

A reduction in Kiwi Saver, change to Working for Families, cuts to the public service sector, tighter restrictions on students loans were the main headlines. Even as I write this I find myself getting bored, and find it embarrassing that this is the best we can come up with.

Offsetting this ritual rearrangement of the deck chairs was the aggressive and highly unrealistic growth projection. 4% growth in GDP has been predicted from 2013 – a figure we reached once during the 1990’s and have not come close to since. Apparently the Christchurch rebuild is going to be a big contributor to this so I do wonder what the figure would have been if there had not been an earthquake – maybe we need more natural disasters to ensure growth.

As expected Labour has roundly dismissed the entire budget, accusing the Government of having no plan. All very well and good if you have a plan of your own to put in front of the electorate so I am looking forward to seeing what Phil Goff and company have to say when they announce their economic policy.

As a business that has survived the rough and tumble of the recession, we are looking for a bit of inspiration. From what we can gather there are some very good economic signals - commodity prices are very strong, the job market is stable and interest rates are very low. On top of this, I genuinely feel as though we are out of the worst of the recession and things are turning around.

So it was really disappointing to see that no initiatives were presented that even remotely encourage the business community to lift their heads and start thinking about employing more people and investing in growth. There was not a single idea that said the Government understands the global, digital, connected world we all operate in; nor was there anything that would help us create jobs and wealth through playing to our many strengths – agriculture, tourism, bio-technology to name a few.

The bottom line is that, as always, we are on our own. Decisions on hiring and investment will have to be made on the basis of our own courage as it seems we can’t rely on any kind of vision to give us the wider sense of confidence we all need.

Two weeks down the track and the polls are starting to emerge. Post budget there has been little or no change. Even ACT’s support has hardly moved. To reiterate my point – if you do nothing, noting will happen in a big hurry.

Chris Williams is Director of King St. chris@kingst.co.nz

Chris' Column - Waikato Stadium Naming Rights

Tue, 17 May 2011 00:00:00 +1200

News last week that a sponsorship broker reckoned he had a couple of potential naming rights sponsors lined up for Waikato Stadium certainly got some local attention.

The broker, Murray Stott, has said he has at least two companies who would be interested in being associated with our stadium, with the potential to bring millions of dollars to HCC over the next 5 – 10 years. Councillors have expressed a bit of surprise as to why they haven’t seen much detail on the matter and, understandably, seemed interested in finding out more.

Meanwhile, some of the region’s larger companies have ruled out the idea of being the naming rights sponsor, all of them giving very good reasons as to why they wouldn’t pursue it.

The opportunity to sign up Genesis Energy to full naming rights was passed up a few years ago when the council of the time decided they didn’t need the money and would prefer, instead, to preserve the heritage of Waikato Stadium by sticking with its original name. That money would probably come in handy now, but it’s too late to dig that decision up. It’s well and truly dead and buried.

On the face of it, selling the naming rights to Waikato Stadium wouldn’t be a bad idea. With some fairly big figures being thrown around, it would certainly help council pull in a better return on its asset. Further to this, there are other examples around the country that demonstrate how it can work – AMI Stadium in Christchurch, Vector Arena in Auckland, Westpac Stadium in Wellington and FMG Stadium in Palmerston North just to name a few. No doubt these all work well for the companies involved. They certainly get a lot of media coverage and name association so it’s probably worth the investment.

But how real are these interested parties? If they are genuinely interested, why haven’t proposals been presented and discussion held? From what has been reported, it looks as though there is not a lot of substance behind what has been claimed about what could potentially be on offer.

The one thing the companies mentioned above have in common is that they are all very big. Three of them are financial institutions and one is a power company. They all have a major stake in the region they are located in and, with the exception of Vector, a national reach.

The main point is that the number of companies who would be able to sign up a naming rights deal would be very small. Add to this the fact that a great deal of sponsorship money has been committed to the Rugby World Cup and many other companies have had to look closely at this area of expenditure during the recession, I would argue that finding a naming rights sponsor for Waikato Stadium would be a challenge. I think it would be a good idea to find a partner that had the brand values to fit with our stadium, but I find it very hard to believe there are companies “lined up”.

If there are, then bring them on. Council needs to reconsider its decision not to sell naming rights. As Gordon Chesterman rightly points out, we live in different economic times to what we did in 2002. But the point is, you can’t bank promises so if there are potential sponsors out there, get a discussion going. If not, don’t go making idle promises. We’re far too busy working our way out of the recession to go down blind alleys.

Chris Williams is Director of King St. chris@kingst.co.nz

Chris' Column - The More Things Change ....

Tue, 03 May 2011 00:00:00 +1200

The more things change, the more they stay the same

It wasn’t Back to the Future. It wasn’t an episode of Walking With Dinosaurs. It was the string of events that led to the change of leadership in the Act Party. A cross between Groundhog Day and the dance of the desperates. After giving us all lessons in survival, party leader Rodney Hide finally met his match when former Reserve Bank Governor and National Party leader, Don Brash, made a move on the position and ousted his mate of 15 years. Or should I say ex-mate.

Rodney Hide, the self-appointed perk buster and promoter of straight shooting was systematically hoist by his own petard when he was busted for taking his partner on a trip to the UK and later admitted he knew about one of his MP’s using the identity of a dead baby. That he survived for so long is testament to the MMP world we live in and for the thickness of Rodney’s hide, so to speak.

But the real story, from my point of view, is in the images and messages that have followed. From out of the ashes came Don Brash and, by his side, strode Roger Douglas. Douglas first came to parliament in 1984 when the David Lange led Labour Party stormed into office and heralded the most dramatic economic reforms we are ever likely to see. A committed idealist, he left no stone unturned as he converted our protectionist system into a free market economy. Whatever you think of him, Roger Douglas has had a significant impact on our country, both in good and bad ways.

Don Brash has had nowhere near as much impact but nevertheless, his legend precedes him. As leader of the National Party, he became known for his “Orewa Speech” where he bestowed the virtues of one law for all and how we should abolish the Maori seats in parliament. He then went on to become one of the most bumbling, accident prone politicians in our history. Not helped by his abysmal media skills, he managed to lurch from one disaster to the next before finally being replaced by John Key after losing the 2005 election – one the National Party should have won.

I could write pages more about these two latter day legends, but that is not the point of this column. What absolutely astounds me is that this is the best we have got when it comes to leading the extreme right of our political system. With a firmly centrist Government in place and some real issues to deal with, not the least of which being that we are borrowing $300 million per week to keep running, we could certainly do with some fresh thinking and new ideas. The voice of the right has a place in the mix on this front so a change from Rodney Hide should have been a good thing.

Instead we got a pair of tired looking men in their seventies spouting out the same old lines, the hackneyed phrases and stale ideas from years past. Amid telling us he was worried, concerned, being kept awake at night by our mounting debt levels, Don Brash has not given us a single idea about how this might be solved. We need innovative, well thought out strategies that fit with the political labyrinth of MMP, not a whole lot of waffle and empty promises. To make matters worse we hear whispers of unfinished business from the Douglas corner and a comeback of the dreaded Rogernomics. Like shoulder pads and double breasted suits, Rogernomics belongs in the 80’s.

As businesses who have come through the toughest couple of years we are likely to face, it’s a shame to see an opportunity wasted to bring some forward thinking to the top table in parliament. It doesn’t really matter whether or not you agree with right wing policy. This is not the point. The fact is we need a range of views and ideas, the net of which should help turn things around and make us more competitive. Sadly, this is just not going to happen. All we need now is for Brash and Douglas to appear on Dancing With the Stars. Then the circle will be complete.

Chris Williams is Director of King St. chris@kingst.co.nz

Chris' Column - V8's

Tue, 19 Apr 2011 00:00:00 +1200

Another V8’s has come and gone and life is getting back to normal at King St. After a few weeks of inconvenience culminating in us not being able to drive to our offices on Thursday and Friday last week, not being able to hear ourselves think on Friday and generally not benefiting one iota from the event I never thought I would hear myself say that I hope the stories about doubts over the event’s future aren’t true. In case you missed it, this newspaper’s lead headline on Monday was “Black cloud over V8’s fate”. The story then went on to outline, among other things, that the Supercar bosses had not given assurances that the event would stay here.

By all accounts a very successful event was held and everything ran smoothly with the only problem being that the total crowd of 105,000 was well below what was required to turn a profit - a really bad outcome given all the negative publicity that has surrounded the event over the last 12 months. It’s hard to say what the final numbers would have been if the weather had been kinder but my impression from the last tow years is that the forecast figure of 130,000 is out of reach.

Given the massive amount of money that has been invested in hosting the V8’s event it would be a shame if we were to lose it before it runs its course and we get the opportunity to gain the full return on the investment. Regardless of whether or not you agree with the initial decision to bring the V8’s here, it’s too late. The horse has bolted and we have to try to make it work so we don’t end up losing out completely.

And there are positives. Whatever you say about the petrol heads, they seem to be great people to have as visitors. They fill the hotels and motels, eat at our restaurants, drink at our bars and don’t seem to cause any trouble. No doubt they leave here with a good impression of Hamilton and will hopefully convince a few of their mates to come with them next time. Hamilton also gets unbelievable exposure from the TV coverage. In a climate where it is very hard to cut through unless you spend vast amounts of money, the world-wide exposure we get cannot be underestimated from a profile building point of view.

This will all help as plans start coming together for the reformation of the Regional Tourism Operation. HCC have allocated $390,000 in the annual plan to bring back this crucial part of our tourism infrastructure. Six other councils in the region are also being asked to contribute so let’s hope they all give their full commitment so the region can compete on an equal footing for the tourist dollar. The combination of our event strategy, the development of key products such as the cycleways, the Claudelands Events Centre, central Government contribution and local council investment will all mean that the Waikato region will have a very strong story to tell potential visitors and help build a consistent flow of people who come here to sample the many attractions on offer.

If we lost the V8’s we will lose out on many fronts. Whatever ratepayer money has been invested will effectively be written off, we will forgo the opportunity to be beamed around the world via the extensive TV coverage and we will miss out on tens of thousands of people visiting us and spending their money. We would also lose a key part of our tourism story. So while my personal view is that the decision to bring the V8’s here was flawed, and I am certainly not looking forward to all the inconvenience if the event stays here, it’s in our interests to keep it here.

Chris Williams is CEO of King St. chris@kingst.co.nz

New Designers on the Street

Mon, 04 Apr 2011 00:00:00 +1200

We are very excited to welcome two very talented new designers to the KingSt team. Mandy Bryers joins us as Senior Designer having worked in Auckland and Tauranga; while Angela Parker joins us from Lodge Real Estate where she worked immediately after graduating with a Media Arts Degree from WINTEC. We are gearing up for what is looking like a busy year so it's great to have new talent in the mix.

Chris' Column - Paul Henry

Mon, 04 Apr 2011 00:00:00 +1200

Those of us who thought we had seen the back of controversial television presenter, Paul Henry, were in for some bad news this week as Mediaworks announced they have signed him up for the drive time spot on Radio Live along with some projects on TV3. Reading between the lines on this, it will only be a matter of time before he gets his own TV show. Whether or not he goes head to head with his old breakfast show remains to be seen but I am sure the powers that be at TV3 will be taking a serious look at it.

Henry is one of those polarising characters who people either love or hate. I am in the latter camp but I can’t help but admire what he has managed to achieve off a limited talent base. Along with co-star Pippa Wetzel, he commanded a significant audience on TV One’s Breakfast and would still be there today had he not managed to embarrass TVNZ and the country with his blatantly racist remarks. TVNZ have copped a fair amount of flak since he was fired but, being the public broadcaster, they really had no choice and, in my opinion, made the right decision.

But now it’s going to be all out war between the two major radio networks and our two free to air television networks. Radio Live is a Radio Network station that is trying to make inroads against the juggernaut that is Newstalk ZB. I am a fan of Radio Live. It has quality presenters across the whole day but is finding the going tough against the entrenched audience habits of mainstream New Zealand. With Paul Henry’s following they definitely have some news value and I am sure he will give Larry Williams a fright in the drive slot. With this, they will be able to promote their other content and hopefully boost ratings – albeit off a low base.

On television, it’s going to be very interesting. As a very infrequent viewer of early morning television, I have found it hard to get enthusiastic about the new line up on Breakfast. Corin Dann and Petra Bagust are straight out boring compared to the old presenters and, while I couldn’t stand Paul Henry, he at least made his presence felt and provided some entertainment. The new pairing are bland and uninspiring. Fair game you would expect for a Paul Henry led attack. I would be worried if I was at TVNZ.

Henry has potential to cause further pain for TVNZ. The news wars have become very heated over the last couple of months as the coverage of the Christchurch and Japan earthquakes have given the news teams the opportunity to flex their respective muscle and prove who is the most responsive. TV3 look to have come out on top on this front and the ratings would reinforce this. So Henry will be looked upon as a way to further strengthen TV3’s position so we can expect a few surprises.

But Henry is not without his risks and detractors. Many people regard him as a loose cannon who can upset as many people as he attracts. It will only be a matter of time before he unleashes another verbal assault in the same vein as the Sheila Dikshit episode or the comments about our Governor General. From what I have seen of him, he appears to have a talent for spontaneity and courting controversy, but I have not seen the high level of journalistic quality from him that we see from the likes of Paul Holmes and John Campbell which I believe is the most telling point. Short term he may boost ratings and help Mediaworks make gains where they have previously struggled. But long term, we may long for more substance and grow tired of his foul mouth. I for one will neither watch nor listen to him.

Chris' Column - Event City

Tue, 22 Feb 2011 00:00:00 +1300

It’s been interesting to see the headlines coming out of City Hall over the last couple of weeks. As all the budgets go through the wringer, we’ve had a full view of the numbers including what has been forked out for the V8’s and the Claudelands Events Centre plus all the associated debt. I suppose transparency is a good thing but on the other hand it has led to a number of negative headlines. There’s no hiding from the facts but, personally, I have been ground down by one bad headline after another so I look forward to reading about the positive things that are happening here.

Part of the on-going debate and discussion has been around the strategy to position Hamilton as an events city.

Under the last regime a huge amount of effort and investment was put into developing the event city strategy. Big ticket items such as the V8’s and the Tua vs Cameron fight were signed up and alongside this, investment continued in other high profile events such as the Waikato Times Hamilton Gardens Arts Festival, Balloons over Waikato. The Gallagher Great Race and many others. So it’s good to see that the money allocated to funding these and many other events is going to stay intact because, on the whole, it’s a very worthwhile investment for our city.

Along with the significant investment that has been made in specific events, we now also find ourselves in the position of having a near complete events centre that has plans to play host to international performers, sporting contests, conferences, expos’ etc. The Claudelands Events Centre is going to form a major part of our events repertoire. And as an aside, it is here to stay, so I am hoping it will start to attract some positive headlines because if all the news about it is negative it will become self-fulfilling and its full potential will not be reached.

But back to the main story. With all the focus on the event city strategy, some mistakes were made. Tourism Waikato was disbanded leaving a gaping hole in our local infrastructure. Our perceived lack of commitment to tourism has hurt the city and the region in many ways so it is good to see that plans are progressing well to reform the Regional Tourism Organisation and rebuild our reputation as a tourist destination. There was also a very border based mentality under the old regime. It seemed that anything outside the city’s boundaries was not relevant. This was manifested in the decision to cut off funding to Tourism Waikato. But it also failed to fully maximise the potential for a more partnership based approach with organisations such as Mystery Creek whose events make an enormous contribution to Hamilton’s economy.

So with a new Mayor in place, a new CEO about to take the seat and a new shape to the council, I guess it will remain to be seen what happens with the event city strategy. For what it’s worth, I think trying to position ourselves as an event city is flawed. There’s no question that a busy and vibrant events calendar is an important part of the city’s makeup. Not only does it bring colour and excitement, but it also has a genuine economic impact. Just look at one event such as the Waikato Times Hamilton Gardens Arts Festival and what it is bringing to the community and you have to conclude that it’s a very sound investment. But it’s only part of what makes up a city and how we should position ourselves. Unless we want to be Las Vegas, we need to have a strategy that takes into account all our other strengths and doesn’t lead us to make investment decisions based on events alone. I wonder what would have happened with the V8’s decision had there not been such a single minded focus on events.

From my point of view it becomes a case of determining who are the people who will most be impacted when it comes to deciding on the strategy that best befits us. In this case, it’s the people who already live here followed by potential businesses and residents who are looking to make the move to Hamilton. I would argue that a sole focus on an event city strategy would not resonate long term and we need to add more depth to the story.

Chris' Column - The Job Market

Tue, 08 Feb 2011 00:00:00 +1300

The front-page article in the Waikato Times on Saturday carried a very interesting story on the local job market.

In many respects the facts sum up where we are at as we grind our way out of recession. As it stands the total number of people out of work in the region sits at 13,300, up from 12,400 in December. Nationally the figure is on the rise and with a whole swag of new graduates entering the job market, it is most likely to keep climbing.

More broadly speaking, it feels like things are slowly starting to improve. We are in no way breaking any speed records but my observation is that there is a greater sense of optimism in the market at present so we are hoping that this year is going to be more positive than last – which was nothing more or less than a joyless grind in my opinion.

As far as job seekers go, the outlook mirrors the rest of the economy – it is going to be a long slow grind out of recession. So many people will have to play the waiting game and make multiple applications before securing a job.

From my own businesses point of view we can confirm that our team is now smaller than it was two years ago. People have left who we haven’t replaced and we made the decision to keep staff numbers down in order to protect our bottom line. As things pick up it’s likely that we will need to recruit some new people but I am sure I would not be alone in taking the view that we will only start hiring when we are completely stretched to the gunwales. It’s not a bad philosophy to adopt even in the boom times.

With that in mind we have been in the market recently for two positions – these came through a couple of key resignations. One position is for a graduate, the other, a more senior position.

It’s fair to say that we have been inundated with responses – from all around New Zealand and the world. This speaks volumes for the power on online advertising in recruitment but that is probably another story. But what has struck me most has been the huge variance in quality of the applications themselves. So the rest of this column is some free advice to all the people out there who are looking for jobs.

The first point I would make is that first impressions count. As most applications are made by email you have to consider what is happening at the other end of the message you are sending. Generally you will be applying to a senior person who is very busy and in the process of juggling many things. So you need to cut through in some way. The applications that catch my eye are usually simple, professional and well written. If we are looking for a designer, we will look at the portfolio first then look at everything else. Formatting the CV is also really important – make it clear, simple and easy to read. All fairly straightforward stuff that can be sadly lacking a good deal of the time.

But by far the most important part of the application we find is the cover letter. Whether this is part of the email message or as an attachment, this is what will determine whether or not you get past first base. And while it might seem obvious to point this out, it never ceases to amaze me how many letters we get that are full of inaccuracies, spelling mistakes and bad grammar. I had one cover letter that had at least 20 mistakes, including getting my name wrong.

I have talked to budding graduates until I am blue in the face about the importance of this part of the application – it’s more than likely that a badly finished letter will go straight into the file of unsuccessful applicants.

If your CV measures up and your letter is 100% accurate, you’re more than likely to secure an interview, which you need to prepare for, do your research on the company involved, come armed with questions, be yourself and make every effort to give the impression that you are the stand out candidate.

But remember that it all comes down to the first impression you create. And you will do this by the strength of your letter writing. A very old discipline that will never go out of style.

Chris' Column - Lessons Learned

Tue, 14 Dec 2010 00:00:00 +1300

Most people I’ve talked to in the last couple of weeks say they are absolutely hanging out for a break. I am definitely in that category, having worked through a very challenging year. 2009 was difficult for many people and businesses as the effects of the recession took hold. 2010 started with a lot of promise but the reality has been that it has been as tough, if not tougher that 2009. The economic data tells us that there is a slow and very steady recovery afoot but the general feeling seems to be that the going has been hard. In many ways it’s similar to recovery from a major trauma. If you have an accident and break your leg, it’s fairly painful at the time. But the pain goes on for much longer and is far more intense during the recovery period. That’s what it feels like now.

So we look forward to continuing the recovery next year and, hopefully, by 2012 we’ll be humming along again.

With all the challenges that we’ve faced this year, there have definitely been some lessons learnt. Some of which we will take into next year and profit from. Here’s what we’ve learnt:

The first thing we learnt was to just get on with it. This has not been the time to over-complicate things. Our clients have been working in the same environment as us, so it’s been a case of getting to the heart of problems quickly, getting a plan together without fuss and executing as effectively as possible. Not too many debates and dramas. Just get on with it. Worth remembering.

Also, we learnt to stick to out knitting and work on what pays the bills. It’s tempting to get side tracked by new projects and areas for investment. While the rewards form these activities can be strong, the risks can be as well. And sometimes the biggest risk is in overlooking what earns your bread and butter. So we aim to stick to our knitting for a while yet.

The other big lesson has been to preserver. We had one prospect that we worked on for 18 months. Because of the way their business was going, they were in no particular hurry to make any changes. It was tempting to give up a few times, but we stayed in touch and ended up with a couple of projects. Hot leads should be treated like gold, and even if they take a while to convert we learnt that is pays to be persistent.

I also learned that leaders need to be seen to be on top of the business, communicate clearly and motivate the team regardless of the environment. Even in a relatively small business such as ours, leaders need to realise that they set the example as far as the work ethic goes, and if you happen to b e dragging your feet, the rest of the team will follow accordingly.

As a profession we’ve learnt a lot more about how to help our clients connect with their customers and this has given us some great learnings for next year. Social networking has been the big mover this year and has become a major a part of our communications repertoire. We have been getting great results from using these tools and the opportunities for marketers in the years to come are many fold. But at a more personal level I think we need to be careful. I have found Facebook and Linked-in great as ways to reconnect with people and stay in touch. But they have their limits and represent more and more ways for us to stay in contact that don’t involve a face to face meeting or conversation. Text, email. Facebook, Linked-in , MySpace etc are all fantastic tools that can make a big difference for marketers. But, they are a half way house to a more meaningful exchange. They all have their place, but they will never replace the true value of a one on one conversation. And in the end, that is one of the big lessons I have learnt this year. While we’ve managed to find a lot more ways to stay connected, in some cases it has led to online relationships taking the place of the real thing and a resulting sense of isolation for many. So lets celebrate all these tools as fantastic ways to talk to customers cost-effectively, but remember that they are not a replacement for catching up for a coffee with a client to shoot the breeze or having a beer with your mates to talk about nothing in general. Lets make 2011 the year of the face to face conversation. Merry Christmas.

Chris' Column - Goldstein

Tue, 30 Nov 2010 00:00:00 +1300

One of the most eagerly awaited advertising campaigns hit our screens over the last couple of weeks when the latest effort from ASB was unveiled with a very high impact campaign.

After 11 years of the Goldstein campaign, ASB decided to send the affable New Yorker home and develop a new flavour for their advertising.

Goldstein was one of the most enduring and admired campaigns New Zealand has ever seen so it’s no wonder we were all so expectant about what would take its plce.

The first TV featured a montage of different people in an ASB branch, obviously setting up future stories that would be told about their lives and how much of an impact ASB would have on them. The campaign is tied together by the line “Creating Futures” and also features press advertising, billboards, online advertising among other things.

The second TV ad in the campaign has already created quite a stir. It’s a story about a couple who are trying to have a baby but obviously having problems. They eventually get IVF treatment through the help of a bank loan and the story ends happily ever after when they find they are having triplets. All made to look possible through the efforts of the bank. Quite a tall story if you ask me. So far the Advertising Standards Complaints Bureau has taken a number of complaints about the ad, with many people finding it insensitive far fetched because it both trivialises the IVF process and creates an impression of a very easily achieved outcome. I would imagine there are many people out there who have tried IVF with no success so it’s understandable that there would be issues. There will be a hearing soon when there will be a decision as to whether or not the ad should be kept on air. If it gets pulled, it will go down as a big waste of money.

Because we work in the advertising business, we often get asked our opinion on campaigns such as this. Advertising can be very subjective and it’s very easy to pull someone else’s creative efforts to pieces so my opinion is based on what I think as banking customer. I don’t bank with the ASB, but I use a wide range of banking services from my bank.

For me the whole premise that a bank can “Create Futures” is fundamentally flawed. Sure enough, if you want to buy a house, a car, take out business or personal loan or deposit money banks are great. Without the money they lend you for your mortgage it would take a long time to save to buy a house outright. The overdraft facility you get for your business can be a key part of cash flow management and on it goes. But banks are not stupid. They have strict criteria and rules around repayments that are very hard to get around. So if you don’t have the required deposit and income levels to fit their mortgage regulations, you can forget about the offer you’re thinking of putting on the house you’ve fallen in love with.

A lot of this is for your own protection as well as theirs and it seems to work quite well in New Zealand.

The main point is that, in the end, it’s a real stretch for a bank to try to tell me that they will have any impact on creating my future. As far as I am concerned, it will be up to me to do that. I am sure my bank will help me along the way - as long as I fit their criteria. If not they will not be remotely interested in me. And neither should they.

So my opinion of the ASB campaign is that it is a flight of fancy and presents an over inflated view of their worth, and ability to actually help us in some of life’s crucial stages. It is extremely well produced and the media planning and web strategies are fantastic, but I just find it hard to believe that a bank could actually have that much impact on my life. Come back Goldstein, all is forgiven.

Chris' Column

Tue, 30 Nov 2010 00:00:00 +1300

One of the most eagerly awaited advertising campaigns hit our screens over the last couple of weeks when the latest effort from ASB was unveiled with a very high impact campaign.

After 11 years of the Goldstein campaign, ASB decided to send the affable New Yorker home and develop a new flavour for their advertising.

Goldstein was one of the most enduring and admired campaigns New Zealand has ever seen so it’s no wonder we were all so expectant about what would take its plce.

A lot of this is for your own protection as well as theirs and it seems to work quite well in New Zealand.

Chris Williams is CEO of King St. chris@kingst.co.nz

Chris' Column - The Hobbit

Wed, 03 Nov 2010 00:00:00 +1300

If you ever wanted to see an episode in New Zealand life that sums us up completely you would need look no further than the drama that unfolded around the production of The Hobbit over the last couple of weeks. Unless you live deep inside a Hobbit hole yourself, it would have been impossible to miss.

Sir Peter Jackson first started the warning signals a few weeks back, telling us that the Australian unions were trying to force their will on the New Zealand Actors Equity and demand a collective agreement for working on The Hobbit. As this unfolded, various other players joined the debate and before we knew it, a massive stoush was underway. It was surprising to see some actors come out in support of the union move. While I don’t think it is at all unreasonable to expect fair market rates for working, it didn’t seem to me that there had been any problems in the past; furthermore Peter Jackson seemed to be acting in completely good faith in his efforts. From what I can gather there have been no stories about him mistreating actors in any of his productions.

Anyway, what transpired gave us a very clear and honest view of New Zealand Inc.

The first thing that struck me was how quickly the whole thing became front page news. Remember we are talking about a movie here, a very big movie but still just a movie. But before long, you would be forgiven for thinking that there wasn’t much else happening other than whole lot of people running around trying to save a movie about Hobbits. A reminder that we live in a small country inhabited by a very passionate lot, and that sometimes there’s just not much happening. Along with this, there were the people who make an art form at tilting at windmills. The union types who thought they could take on the movie moguls, and some of the actors who thought the same but were actually absolutely dreaming. But without the people who tilt at windmills it wouldn’t be New Zealand so good on them I reckon.

By the time the situation started to look a bit precarious and the Prime Minister had to get involved, our size in the scheme of things really came into focus. Warner Brothers is a huge organisation that resides in the US, the world’s largest economy. Money talks in their industry and they do massive deals all the time. When they talk costs they talk in tens of millions and they work to make sure they make the maximum amount of money as possible for their shareholders. They do not need New Zealand and can use their influence to undertake productions in many places around the world.

So, as far as the money side of things went, we didn’t actually have a lot of clout. This is nothing new given the fact that we are a very small economy in most sectors.

But, in typical Kiwi style, this did not turn out to be a weakness. In typical Kiwi style, we were able to stare down the odds, do a deal and walk away with the movie intact. Albeit there was a higher cost, but we also managed to negotiate a very good marketing deal along the way. But the main point is that The Hobbit movies stay here and the thousands of jobs they will create are safe. A great outcome followed by an excellent piece of negotiation by John Key.

The whole episode truly summed up life in New Zealand. But, for me, the most New Zealand aspect of it all was how The Hobbit got here in the first place. A few years back, The Lord of the Rings was just a very popular book. But a clever Kiwi by the name of Peter Jackson decided to make it all into a movie and set about making it happen. Not only did he make it happen and win a sackful of Oscars, but he also built an entire industry and put New Zealand on the map in many, many ways. Most of us would have said what Jackson set out to do was impossible, and in many ways it probably was. But the Kiwi spirit is to look at the impossible and overcome it. So good on them all for fighting to keep what we fought tooth and nail to win in the first place.