I’ve just watched a couple of videos that explain how Coca Cola are approaching marketing as a content strategy going forward. Overall the content was thought-provoking, although I’m not sure if the use of cute cartoons was a way to distract from an overly complicated story that verges into Siobhan Sharpe Jubilympics territory a little too often (make your own mind up by watching them here).
One bit I did really like, though was a definition of the 70/20/10 model (about 3′ 10″ into the second video), which I think could be interestingly applied to innovation in general within organisations. It’s sort of a spin on Pareto…
In terms of investment, Coke aim to spend 70% of their marketing investment on content that is bread and butter, low risk, and known to work. 20% of their investment will go into investment on innovation of existing ideas (effectively, medium risk), and then 10% of investment will go on brand new, higher risk, ideas.
However, investment isn’t the same as time spent by their people, especially when it comes to marketing activities with external spend on big-ticket items like advertising inventory and creative. Coke envisage that the bread and butter activities will take up 50% of their marketing team’s time, 25% on the medium risk incremental innovation, and the remaining quarter on the high risk new ideas. Finally, given that many of the high risk activities will fail, Jonathan Mildenhall, VP Global Advertising Strategy and Creative Excellence talks about declaring learning objectives up front for these activities, not measurable goals.
That last point I see as being really embedding an approach that is likely to see innovation happen and succeed, because it breaks away from the idea that new ideas can be a solution for known “problems” with measurable outcomes; put another way, how can you learn if you are expected to already know what it is you don’t know?
Anyway, thought-provoking stuff.