Tag: 1960s

Perfume Customers

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“So how do I convince women to buy their own perfume? How could I get the American woman to buy her own perfume? I would not call it perfume,” David Senra quotes from A Success Story by Estée Lauder.

In the 1950s and 60s women didn’t buy themselves perfume. Instead, it was a gift and is an example of JTBD’s customers or consumers dynamic.

In Jobs Theory, producers have to solve the job for both the customer and consumer. No one gets fired for buying IBM articulates the customer angle – but leaves out the consumer. Does IBM serve the job for users (and later, investors)? ymmv

But Lauder did something different. Rather than address the concerns of both groups, she took a page (or inspired one!) from The 22 Immutable Laws of Advertising. Or in the words of Ricky Bobby, if you ain’t first, you’re last.

David again, from A Success Story:

“I would call it Youth-Dew, a bath oil that dubbed as a skin perfume. That would be acceptable to buy because it was feminine, all American, and very girl next door to take baths, wasn’t it? And so think about the difference in size of bath oil, how many ounces you would sell compared to the size of like a perfume or cologne.

We created a mini revolution in the whole world. As I saw it took on a fresher, more stimulating aspect. Instead of using their French perfumes by the drop behind the ear, women were using Youth-Dew by the bottle in their bath water.

It doesn’t take a graduate school of business to figure out that that meant sales, beautiful sales. In 1953, Youth-Dew did about 50,000 worth of business for us. In 1984, that figure was over 150 million dollars.”

Beautiful.

Don’t Bring an Educational Solution to a Design Fight

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Dr. Henri J. Breault of Tecumseh, Ontario is a hero. Working as a pediatrician in a hospital, Brenault’s widow recalls him coming home from work one day and exclaiming I’m sick and tired pumping kids’ stomachs!

So he invented the childproof medicine cap.

At the time, Canada had about 100,000 cases and 100 deaths.

Breault came up with the palm-and-twist bottle. As an aside, how great is YouTube? This short video shows four different child-proof caps. I did not know how the pinch one worked! Breault’s creation is fourth.

Prior to Breault’s 1967 invention was a public education campaign.

We know that education affects behavior much less than systems affect behavior.

And our traditional punching bag is financial education.

“If someone says financial literacy at a party I basically give them a thirty-minute lecture. The idea is that in a perfect world if someone is taught about FICO and its impact on their life, they would take action to improve their FICO score. This is just not what researchers have found – and it’s really robust…the punchline is that environment matters.” – Kristen Berman, All the Hacks, October 2021

So, don’t bring an educational solution to a design fight.

The Lego Story (book review)

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The LEGO Group was founded in 1932 by Ole Kirk Kristiansen and the story is told in The Lego Story by Jens Andersen.

The takeaway, like all successes, is to work hard and get lucky. Rather than a review, let’s tour history through industry.

1919, Denmark’s economy slows. “Farmers in Billund and other districts benefited from Denmark’s neutrality during the First World War, by selling grain and meat to the warring nations and earning some extra hard cash by producing peat.” When farmers have money they can pay carpenters like Ole Kristiansen. And if farmers don’t, they can’t.

1925, a fire in Ole’s woodshop. This will be a recurring theme.

1929, the depression. “For a while, the future looked promisingly bright, but shock waves from the Wall Street Crash in October 1929 that wiped out billions of dollars in wealth quickly spread to Europe. Germany and England, Denmark’s biggest trading partners, were badly affected, and the price of grain, butter, and pork crashed.”

1932, anything that sells. Though woodworking had been his trade, it was the 1931 Yo-Yo craze that inspired Ole to make toys. “By the 1930s, yo-yo-ing had become a nationwide fad,” writes Chat GPT, “with tournaments and competitions being held across the country.” Ole’s brothers and sisters want to know why a good carpenter would waste his time, “I think you’re much too good for that, Christiansen—why don’t you find something more useful to do!”

1933. “We worked like dogs, my wife, my children, and I, and gradually things began to pick up. Many days we were working from morning till midnight, and I bought a cart with rubber wheels so the neighbors wouldn’t be disturbed when I took the packages to the station late at night.”

1940, Germany invades Denmark. Though occupied (and part of the resistance group, running grenades to saboteurs in LEGO boxes) it was a good time for LEGO. Parents were “keen to protect their children from hardship,” and during the five years of occupation, LEGO’s revenue grew.

1942, another fire in the woodshop.

1946, plastics? Ole buys a plastic molding machine. Through the early 1950s executives at LEGO will say no no no, plastic toys will never take off.

1947, Ole sees his first plastic brick from an English toy manufacturer. This is the seed for LEGO but will prove a thorn in their intellectual property side for decades to come.

1951, the top-selling LEGO toy is the (plastic molded) Marshal Plan-delivered Ferguson tractor.

1955, LEGO bricks roll out to toy stores.

1956, LEGO bricks roll out to Germany. Andersen writes, “Selling toys in Germany would be like selling sand in the Sahara.” LEGO advertises in one city, Hamburg, creating a two-minute film to play before features. Word spreads.

1958, good news, LEGO invents the tube on the underside of the LEGO brick. Ole Kirk passes away and his son Godtfred takes over.

1962, the Scale Model Line. Godtfred grows up playing LEGO, so do other people. What if we make LEGO for professional adults? The Scale Model line is for engineers to design with LEGOs. Even the everyman could create his own house. The project fails but leads to the 1/3 size pieces ubiquitous in today’s sets.

1968 LEGOLAND Denmark opens. It’s a hit.

1976 oil crisis. “A significant part of LEGO’s challenges in the 1970s could be ascribed to two separate oil crises, a stagnating global economy, Denmark’s falling birth rate, and a declining toy market abroad.”

1978 minifig enters. Lego, Kjeld Kristiansen notes, has three phases: blocks, wheels, and mini-figures.

1989 LEGO pirates. But Gameboy too.

…

If there’s one consistent lesson through each decade of LEGO it’s the importance of sales. Every few years someone comes along and says the toys are good enough and every few years someone else reminds them but we have to sell these things. It’s just hard work.

Should you build *magic*?

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When talking about Jobs To Be Done, Bob Moesta notes that there are two ways to innovate. Supply-side innovation is internally driven. Organizations know their capabilities, limitations, and business model and build from that position. This type of innovation is more efficient, has limited scope (and costs!), and uses the language of the organization.

Alternatively, demand-side innovation is externally driven. Jobs theory is demand side as is the Mom Test and IDEO’s invention through iteration. This type of innovation includes prototypes and feedback, lots of questions, and uses the language of the customers and consumers. 

“Any sufficiently advanced technology,” Arthur C. Clarke wrote in 1962, “is indistinguishable from magic”. 

That quote highlights this aspect. Technology users want it to feel like magic. Builders use advanced technologies.

Face ID is magic. 

“What Apple did with Face ID was take a really hard computer science problem, and using a lot of complicated technology, create something with a simple name. I intuitively know what Face ID is just from the name. It’s also intuitive to use. I looked at it and was in. There’s an opportunity to do something like that (for crypto). Multiparty computation is not the right marketing term for what the average person might use.”

Brian Armstrong to Ben Horowitz. 

Uber is magic. 

“At first glance Uber might just look like a simple app—after all, the premise was always to hit a button and get a ride. But underneath its deceptively basic user interface was a complex, global operation required to sustain the business. The app sat on a vast worldwide network of smaller networks, each one representing cities and countries. Each of these networks had to be started, scaled, and defended against competitors, at all hours of the day.”

Andrew Chen, The Cold Start Problem.

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The wrong lesson here is to think customers want magic. It’s situational! Shopping and buying are different. 

There is no best way to innovate, only trade offs. But Clarke gives us a nice framing for technology.