tv Talking Business BBC News May 31, 2017 3:30am-4:01am BST
of a system to shoot down intercontinental missiles. earlier this week, north korea carried out its ninth ballistic missile test this year. the us military say the operation is a critical milestone. the man accused of murdering two men and wounding a third on a train in the us state of oregon last week has appeared in court shouting death to the enemies of america. the victims were reportedly trying to protect two young women from anti—muslim abuse. he is due to appear in court again next month. us singer ariana grande has announced she'll return to manchester to hold a benefit concert for the victims of last week's bombing. she'll be joined by other pop acts such as coldplay, katy perry and pharrell williams. proceeds will go to the we love manchester emergency fund. tributes have been paid to a zoo—keeper who was attacked and killed by a tiger. rosa king, who was 33, has been described as the shining light of hamerton zoo park
in cambridgeshire. she died on monday after a tiger entered the enclosure she was in. ben ando reports. we do a lot of work for conservation, a lot of breeding to try and save... rosa king had always loved animals. according to those who knew her was passionate about welfare and protection. yesterday while doing thejob she protection. yesterday while doing the job she loved at hamilton zoo park, one of the tigers in her care attacked and killed her. today the family and friends of her pay tribute to the woman who had a special affinity for cheaters but loved all the big cats. now an investigation is under way, police say there is no suspicious circumstances but they will want to
know how a tiger got into an enclosure where she was working and turned a fun bank holiday into a tragedy. expert said tigers are wild and are potentially dangerous weather in captivity or not. under normal circumstances there is no reason for a predator like a tiger and a keeper should be in the same enclosure at the same time, the only exception would be if a tiger had been sedated, but there's no reason for a conscious predator to be in the same space as a keeper. some animal welfare campaigners say keeping wild animals in captivity is just wrong. taking a child to a zoo for the first time, of course there will be the wow factor, why wouldn't there be when they see a tiger for there be when they see a tiger for the first time or an elephant for the first time or an elephant for the first time but after that you have to ask yourself, what is the
educational benefit of seeing that same animal in that same space doing the same thing day in, day out. four yea rs the same thing day in, day out. four years ago another keeper, sarah clay, was killed by a sumatran tiger at this zoo in cumbria, the park was later fined £255,000 at this zoo in cumbria, the park was laterfined £255,000 for at this zoo in cumbria, the park was later fined £255,000 for health and safety breaches. hamilton zoo managers have described rosa king's death as a freak accident but alongside the shock and grief there isa alongside the shock and grief there is a need to find out what went wrong and why. now on bbc news, talking business. from cultural misunderstandings to establishing new distribution channels, moving your business into new markets can be a very tricky affair. in talking business, we'll be taking a look at what's involved in taking your brand global. welcome to talking business.
i'm tanya beckett. taking a business and brand global is really quite an operation. it takes much more than just a fancy website and glitzy advertising campaign, although both of those might be quite a good start. it is also understanding how your brand translates in other countries and finding the right partnerships and distributors. so, how do you market and export to new regions? what does it take to take your business global? here to discuss this are three experts. karen blackett 0be is chairwoman of mediacom uk, the largest media agency in the uk. jon wright who co—founded innocent drinks in may 1999 and is now a co—founder off of jamjar. and cat gazzoli, the founder of piccolo, which produces mediterranean baby food. let's start off
with you if we can. that has a very specific brand identity. when you're looking at taking it somewhere, irrespective of where it is, how do you pick the elements of that apart and say "we are going to work out which bits work and which bits don't?" well, first, because piccolo is founded on the mediterranean approach, a diet known around the world, we have had a lot of inbound interest when we launched in the uk. in terms of distributors and retailers saying we would love to have you. we think it is a message understood by the public here. it is looking at the inbound. it is also about looking at what other players are in the market and do our existing partners in the uk already have a relationship with that market? thinking in terms of the brand, your brand had a specific profile, jon.
perhaps you didn't see it that way but it certainly seemed that way. how did you break that down into chunks so you could look at it and say this works and this doesn't. it is about something that tastes good and does good. we wanted to be natural in how we constructed the product and responsible in conducting the business. those are things that were universal. whichever market, this is what people would want these days. however, it was the subtleties and lending it correctly that we had to get right. we'll get back to that in a minute. meanwhile, karen, how would you say... maybe there are examples of brands that have just mistepped recently. it is interesting. now, more than ever, what is essential of any brand launching globally or in one market is about a brand having purpose. so the "why?" we have audiences who can pick and choose based on price, accessibility, availability, so purpose is really important.
and it is not higher purpose in terms of solving the problems of humanity, but what they can give back to the consumers. you think that has to be a social purpose? you think that is a crucial element of taking a brand into a new market? a backstory? i absolutely do. moreso now than ever, in the current climate,, brands really need to try and look at how they are going to do something for the consumer. we are in value exchange with consumers and it is really, really important. jon, when you took yours to other markets, were there elements missing? people saying this is not enough? we would like this aspect. there were different aspects. the hardest thing was part
of the brand and its openness and the way we communicated with people who bought the product. the words around the back of the packaging. i think our biggest challenge was getting that device in each market right, engaging on our terms and being consistent with the way we started the business. did you have problems of people saying in this part of the world people do not like strawberries or we like our strawberries to come from here? something that was just an added complication? there was a sense that people wanted the recipes to reflect that national taste. in scandinavia, we had a berry recipe, it had to have blueberries. one of the things that happened was it grew organically in each market and each country adopted as they had a taste reflected in it. that is an interesting aspect. each country wanting to put their imprint on it. because piccolo is sourcing from the mediterranean and it is what they want, they are looking for that kind
of backstory, as you said, that kind of sourcing, where we were buying the raw materials for all our products, that they were interested in having tomatoes from italy. it is part of the reason why other markets are approaching us. do you think there are some cases where by people did not necessarily recognised the mediterranean diet as the life—lengthening elixir that we see it as? so far, we are a one—year—old company, we have had a very positive response. we are already exporting into china and progress into the us next year. in terms of large markets, we have had a very positive response. i am sure there will be a few markets... for example, i used to work in sub—saharan africa. they may not know the diet as much. it may not be familiar to them.
exactly, exactly. because i spent ten years of my life in the united nations in food, i feel i have a sense of which markets are right for piccolo. karen, you may go into a market where it's not enough, you may have to bolt something more on to accommodate cultural identity or cultural sensitivities. can you think of cases where that has happened? it's interesting. when brands look at expanding out of their core markets, they roll out on a geographical pattern... a regional basis. i do believe that geography actually isn't the core deciding factor of where to roll out to next. actually, those cultural nuances are really key and really important and it would not necessarily be a country next to each other that would be the same.
for example, we work with hoffsted, which is a cultural institution, and we looked at cultural differences in terms of marketing and targeting consumers. so, you find there are some markets where they tend to avoid risk. so, new product launches would be difficult. and those markets tend to be markets which are steeped in tradition or ritual. 0r markets that respect hierarchy. they prefer to gravitate towards market leaders. an example would be russia or israel orjapan, they tend to be markets culturally that tend to be risk avoiders. so, if you were launching a brand into that market, rather than taking an approach that one size fits all, actually, in those markets
which showed cultural similarities in terms of risk—avoidance, you need a tactic. natural fruit smoothies would not present a risk to anybody, but some people may not see it that way. we had a short—shelf—life product. once we squeezed the freeze into the bottle, we were geographically limited because of the shelf life. you saw it differently, then. we were physically constrained. we can get it across the channel and into northern europe and that is about as far as we can go. our first market was france. that was the first place we explored outside the uk. what about this idea of risk which karen has talked about. what we saw is all markets tend to move in the same direction and follow the same trends but are at different times in that journey. so it was about getting the timing right in different markets. so, we saw a much more rapid acceptance in scandinavia than germanic countries. scandinavians were already
into fruit juice and smoothies. it was easy to be accepted. in germany, everything was long—shelf—life so we had to change the distribution system and the view of what fruit juice could be. this is counterintuitive, if you saw something on the shelf that was very similar to your product you can think that is already done, but not so? i definitely think if the format is there, the customer already has the experience of going into the retailer and finding that type of product on the shelf, it is definitely a bit easier than bringing an entire new concept in the sense of changing the juice market. with piccolo, people know where to find baby food. they are not lost. when we take it as a new brand into a new market, at least we are not having to learn how to navigate the supermarket. they can find us and if they are looking for baby foods. they know where to go. more from our guests
later when we talk about establishing key partnerships. first, an example of a company making the journey we have been talking about. after losing their parents in the asian tsunami of 2004, brothers, rob and paul, wanted to create subtly innovative and unique driven by their personal passion after such a tragic loss. the result was gandys. they explain how to spot an opportunity from a distraction and taking that global plunge. it was inspired by travel and fuelled by giving back. after spending many years kind of volunteering in india and travelling around south east asia, we wanted to create a brand that would reflect that upbringing. because it has such an unusual story in terms of ourselves and losing our parents and wanting to build a children's home, there are people with quite a bit of admiration about what we do and people are intrigued
by the brand and story. sometimes it is better to make sure you have it right in your backyard, the formula and ingredients, before going everywhere. sometimes, at the start, people knock on your door and youwill say we will come back to you in two years' time or so. without realising, we were quite young and naive, you start dealing with countries and it takes up more time than the bigger markets. what we learnt in the last few years, more than often those people knocking on your door, in fact, it was not an opportunity but a distraction. what distribution do you have, who are your partners, what retailers and brands do you work with? we got a lot stricter on that and that seemed to help. biggest mistake?
the biggest mista ke's working with you. i would say the same. everyone makes mistakes. you cannot worry about making the biggest mistake as long as you don't do it again. don't make the same mistake twice. good advice. everyone is still with me. what do we mean by partners when we talk about going into a new market? you are already nodding, cat. what partners do you need? 0n the marketing side, if you have a lot of international markets, you need a partner with international footfall. we partner with water babies, a swim school, the largest in the uk. even though they aren't related? yes. it has been fantastic. when moms and dads go to babyschool, they get a pouch from piccolo. it also spreads by word—of—mouth.
and water babies is also in china so we ended up there too. so if they trust them in the water, they might trust you with the brand. yes. we also went with the uk's largest baby charity. they hear about us through the nct, which they trust. the nct is a british charity. i am looking at a similar model with an american counterpart. when we talk about partners, what kind of partners do we need and what function do they perform? one of the core things is getting distribution to expand into another market. distribution is king.
it does not have to be just physical bricks and mortar anymore so it can be digital, it can be e—commerce. think of an example, jd.com, china's second largest e—commerce site. their growth was connected to a partnership they made with the biggest internet service provider who had a messenger service which allowed one click through from the messenger tojd.com. that has been fundamental and a key part ofjd.com's growth. that was a key part. cat indicated that having brand consistency with the person you are trying to work with, but also trust and making sure the customer trusts them, is important. yes. 0n the continent, when we had to do the physical growth, we had to build a relationship
with retailers. and you need to engage consumers who are going to buy it. which bits are you going to do and what will you hand over to other people? it is very tempting to hope that someone can do it all, because they will probably promise that. but you will find out there interests are slightly different and they will not see the brand in the same way you will and understand its dynamics. increasingly, we try to partner for physical movement for goods, but we will set up local teams who build relationships with retailers and talk to consumers about the brand. cat, the brothers from before said time and again, there are plenty of distractors. yes. we have passed up on some things because it would take too much time for us going out and servicing that market.
you just have to file the interest and say it is not right now because we are focusing on other markets. it is about prioritising. it takes so much discipline. you become a hot property and everyone expresses interest in you. to say no to it, we will not explore it, it is a hard decision to make. but it is easy to get drowned and swamped. i am interested in the idea that distributors do not have interests aligned with yours. that seems counterintuitive. if you hire someone to help you, of course they have to have the same interest. it is not always true? cat said it very well, you have to share core brand values and purpose. making sure your brand keeps the correct company is really important when you are establishing a brand. there may be opportunities that allow you to go quick to market,
but actually, it could be detrimental because it is not the right company, it is not the right association. they may incentivise profits, saying we would like to sell fewer with a higher margin, and you may not be able to do that. if the "why" is not aligned, you really should not do it. the centre of the brand, is not just the "how and what," the centre is the "why," and it needs to be aligned for sustainable long—term growth. what about you ? we made them for ourselves, our mistakes. our first country overseas was france. we started doing it and we went to a trade show and put out a stand and translated everything in the promises of the brand onto banners, 100% fruit, no colourings, no preservatives. we said no preservatif, and we could not understand why no
one would come over. because it meant male protection. yes. we needed people on the ground to translate. i want to talk to you a little bit about cutting losses, cat. we are seeing, especially for major retailers, headlines coming out of china or india. you can understand because fast—growing legislation may change. there have been instances where you have seen retailers and other brands come out of pretty mature markets, canada, even the united states. have you had that experience? what is generally would spark a retreat? i think, especially now, those external conditions that have
happened in the past 12—18 months which are causing a lot of instability. just within the things we take for granted in terms of the landscape with retailers. especially with the recent election in the united states, we were lucky in six months to do a launch with a brand associated with walmart. having that parent company with us is very much a positive. you can see how the effect in the us can trickle into the uk. have you ever had to pull back? you have to decide which country to put the most investment in. we never pull out but we change investment. the companies we invest in, often what causes you to withdraw from a market is you have gone into too many. you have ever expanded, you have been overambitious. you realise you cannot cope with that breadth. so you have the double down on markets that work so be it is often internal operations.
when you say you have overextended, can you notjust hire more people rather than shutting down the opportunity? more people means more money. where will you get that from? how will you promise that? so, over extending, not anticipating competitive. or is it a change in legislation? it is a number of circumstances, the cost of raw materials, a change in legislation, policy, government change. there are a range of different influences. it could be, also, well, did you really understand the market? because when you expanded to another market, you absolutely have to understand what is the media landscape, what is the competitive landscape in terms of the competitors, what are the purchase cycles in this market? what is the lifestyle of the consumers in this market? what are the cultural nuances of the market.
that is just as important as some of the external factors and can have an influence. just one final question, jon, when you are advising the people, the companies you invest with, jamjar investments, do you say going global is necessary, or you do you say it is up to you? we were at a meeting yesterday looking at the uk market and it was in the billions. if your home market is in billions, you do not need to start anywhere else until you are selling millions. it is the same anywhere else. some products are a niche but global. others you can move faster with the internet. that is it for this edition of talking business. thank you very much
to all of our guests, kat, cat, and john. thank you for watching. goodbye. good morning. we start with a quick look back at what happened yesterday. this weather front made its way southwards and eastwards across the uk. it brought in some heavy rain to the north and west of the uk. as it went southwards, the rain fizzled out and allowed fresh air to follow in its wake. fresh air continues to creep southwards overnight. not quite getting to the southernmost counties, but we see cloud which is low round the coast. along with clear skies, major towns and cities clear, rural spots chilly and not as warm as it has been further south.
it begins with cloud breaking up into the afternoon, some showers and the further north you are, it should be a nice day with light winds and plenty of sunshine. it will feel pleasant and into the afternoon, in south—west england along the coast, 15 or 16 degrees. further inland, it is in the low 20s. 15 or 16 degrees, up to 23 in london. the chance of the odd shower, but most places will avoid them and have a decent day. good spells of sunshine across much of northern england. northern ireland may see more cloud, but in scotland we have a pleasant day with sunshine, 18 degrees in glasgow and inverness. through the evening, any showers we see will fade away. low cloud may become extensive in southern and western coastal counties. this weather front is creeping into the north—west and by dawn on thursday, nowhere near as chilly as the northern half of the uk, 1a degrees to start the day on thursday in glasgow. this weather front heads our way. a fair number of isobars associated.
tied in with this area of low pressure for iceland. southerly winds bringing in warmerair. in eastern areas in particular. thursday sees temperatures on the rise again. temperatures in the south—east at 25 degrees, 20 degrees widely, decent for most that there's rain in western scotland and northern ireland. into friday, this rain gets into northern england. it affects parts of wales but ahead of that, it will be another warm day, warm enough to spark thunderstorms but again, fresh air behind this weather front, and into the weekend. a weekend of sunny spells and scattered showers. westerly winds bringing a fresh feel to all parts. welcome to bbc news, broadcasting to
viewers in north america and around the globe. my name is gavin grey. 0ur the globe. my name is gavin grey. our top stories: a show of force: america tests its missile defence system over the pacific, as concerns grow over north korea's nuclear ambitions. free speech or die portland. you've got no safe place. this is america, get out if you don't like free speech. in court and defiant: the man accused of the portland double murder. the victims were killed defending a muslim girl. ariane grande will return to manchester this weekend for a benefit concert in aid of victims of last week's bombing. and solar secrets: nasa's historic mission to fly directly into the sun's fiery atmosphere.