Welcome to the

1. Welcome to the www.stratplanning.com

2. What you use when you don’t know what to do. Piaget Intelligence? Knowledge Insight Information Wisdom Facts told, heard, or discovered. Result of knowing, familiarity, learning. Power of observation, discernment, penetration. Knowledge and experience, with the ability to make use of them correctly. Common sense. Material, news, reports, evidence, papers Learning, education, enlightenment, ken, realization, cognizance, comprehension Spontaneous observation, acumen, innate knowledge, intuition, immediate perceptions, perspicacity Good judgment, sagacity, understanding, comprehension, judiciousness, discernment Data A quantity or fact, given or admitted, from which results may be found. Definition Scores, ratings, answers, associations Synonyms

3. Another way of looking at it(with a little help from Steven Pinker and Noam Chomsky) • We avoid ignorance by collecting ‘intelligence’ • We get our intelligence from information • Information is a correlation between two things produced by a lawful process • Rings of tree • Cheese and self-pity sandwich • Rocks are smarter than cats • Ignorance comes in two forms; • Problem: We have an inkling what we are looking for and how to go about it • Mystery: We stare in wonder until we can upgrade it to a problem

4. We only have two days, so this guy is really, really important. Pluralitas non est ponenda sine neccesitate I’m really, really important

5. Occam’s Razor The best explanation is the simplest one, but that which accounts for all the facts. KISS+ Theories should be as simple as possible, but no simpler.Einstein

6. But then we have organised complexity

7. Hyperreality

8. Hyperreality WARNING: Don’t take this definition seriously - written by a lawyer: In experiential terms, hyperreality entails the creation of a scenario (reality) that is fully-functional, and does not rely on any outside influences for its functioning. The reality would thus exist and function, even if there were no-one to observe it and interact with it. Only through this functionality would the hyperreality scenario be able to assimilate any person or player or actor, aligning their perception to attain the goals set by the reality (i.e. the successful insemination of the product into the mind of the consumer, increasing the chances that it would be sought). Source: Pangeae Realities

9. For example If Targus wanted to promote their mobile presenters.

10. Work and worth and the meaning of life

11. The Demand Curve $ Q

12. Resource-based theory of the firm Doyle P. Shareholder value-based brand strategies. Brand Management Vol 9, No.1, p20-30, Sep 2001.

13. Resource-based theory of the firm Making a profit In a market Being better at some things Process Goods/services - distribution - customers Tangible and intangible assets and resources. Money invested

14. The meaning of life is ...

15. Increased amount of cash inflows Increased frequency of cash inflows Increased speed of cash inflows Increased durability of cash inflows

16. Strong brands are not goals in their own right, but a means to create shareholder value.

17. What are you worth?

18. Equity R3 000 Assets R5 000 Liabilities R2 000 R3 000 R3 000 Balance Sheet and Income Statement in 5 minutes What you’re worth = what you have - what you owe. Equity = Assets - Liabilities

19. Balance Sheet and Income Statement in 5 minutes Balance Sheet Income Statement Balance Sheet

20. Income Statement R100 R 50 R 50 Sales COGS GP Expenses NPBT R 30 R 20 Tax NPAT R 10 R 10

21. The whole game is about: Selling more • Sell more to existing customers • Get more new customers Spending wisely • Invest less in bad assets • Invest more in good assets.

22. Strategy

23. Mintzberg’s 5P’s of Strategy • Plan: an intended course of action • A kid has a plan to get over a fence, a corporation has one to capture a market • Pattern: consistency in behaviour • When Picasso painted blue for a while, that was a strategy, and when Ford produced the Model T only in black • Position: placing yourself ‘in the way’ of profits • What is a niche strategy, but a position to avoid competition? • Perspective: a way of seeing the world • Mcdonald’s QSVC • Ploy: a move intended to outwit a competitor • Market signals, such as the threat to expand production. Here the the threat is the strategy, not the expansion itself.

24. Strategy • “Competitive strategy is a combination of goals for which the firm is striving and the means by which it is getting there.” Porter • “A pattern of decisions …” Andrews [Kenneth] • “The art of distributing and applying military means to fulfil the ends of policy.” Liddell Hart • “The art of the employment of battles as a means to gain the object of war.” Von Clauswitz

25. Sid, you’re giving me a headache

26. Means Resources End Tactics

27. Ad: War

28. Strategy is what you need to do to win

30. MiG-15 F-86 Turn Climb Accelerate    

31. The Boyd Loop Research See what our options are Observe Orientate Act Decide Execute Choose

32. Insights

33. Capturing Mindsets People might be an enigma, but as planners, we need to find a way to describe what they actually think, feel and do, what they say they think, feel and do, and what we would like them to think, feel and do. All this seems to be encapsulated in one word; Insights.

36. People Feel …(point 8 will blow your mind) 1. Financially exhausted - lack of personal economic progress 2. Unhappy at work 3. Crime is by far the public’s top personal concern 4. Feel the social and physical infrastructure is crumbling 5. School system seems a shambles 6. Roads and public amenities are in disrepair 7. Visibly upset about hearing promises from politicians they know they won’t keep 8. Roper Starch, USA, 1996.

37. Schemas Six Ship Fork S _ x Shi _ F __ k

38. 4 l 2 l

39. Insight means comprehension first of all, because in the absence of comprehension there would be no insight to begin with. Zen and the Art of Insight A penetrating, discerning understanding that unlocks an opportunity. David Taylor, AVG

40. But we are here for shareholder wealth Consumer insight: • Understanding • That can be leveraged for a result

41. And the only k = change Consumer insight: • Understanding • That can be leveraged for a result • In a certain dimension (time and space).

42. Looking for insights It is said of Horatio Nelson, the great British Admiral, that, in order to deny the clear visual evidence of massing enemy vessels, raised his telescope to his blind eye and announced, “I see no ships.” To see an insight, you have to at least look for it. • Think • Ask • Observe • Measure • Infer • Discuss

43. Examples • Leaving the egg out of the cake mix • Making washing-up liquid foam • Instant coffee not an instant hit • Noisy food mixers How many species of each animal did Moses take with him on the ark? Cognitive consonance

44. Were any of these ads based on an insight, and does it really matter?

45. Ad: Bud pencils Bud pencils

46. Ad: You’re not late You’re not late

47. Ad: XBox

48. Ad: VW car wash VW car wash

49. Ad: Sumo

50. Ad: Mohlson I am Canadian