I had an opportunity to speak with Hunter Hastings today. Hunter is the Chairman of the EMMGroup (www.emmgroup.net). His firm consults with consumer packaged goods, technology and pharmaceutical companies like P&G, Microsoft and Ely Lilly, about how to grow their businesses organically.
JB: Hunter, what are the biggest challenges the corporate marketing function faces today?
HH: There are significant challenges. In our work we see that the old marketing model is broken and the new model is not clear to companies yet.
The old corporate marketing function is centralized and controls the strategy, the knowledge, the design, the brand. But the use of that knowledge and those assets has to be executed at a distance and in many places – at the retailer, at the worldwide web, with many design firms and agencies, in packaging and across many other forms.
The old marketing organization is based on a “hub and spoke” structure. The brand group at the center owns all the knowledge assets and is inefficient at sharing them at the right place, time, with the right people. It’s messy and inconsistent.
JB: Any hints about what the new model will resemble? Is anyone out there doing it right?
HH: Yes, the new model requires organizing around process and technology instead of organizing around functional silos. In the new model, people collaborate around process with technology helping them out. It’s a network analogy instead of the hub and spoke. There are no Kings or Queens in the new model; the structure is about teams and meeting deadlines. There is no hierarchy to blockade collaboration; no silos.
We see Google doing this very effectively. Using technology like Googledocs to stay organized around teams, projects and deadlines in a highly collaborative and efficient environment.
We also see CPG clients like P&G who have gotten very good at creating solid processes and are now moving toward enabling collaboration with technology.
The analogy we like to use is organizing like a network. There’s no center and no one is in charge. Knowledge flows around the network based on where it’s needed and who is going to use it.
JB: How has the renaissance in packaging we’ve seen over the last ten years with improvements like single serving, portability of consumer products, more ergonomic packaging, etc., affected the corporate marketing function?
HH: Over the past ten years, CPG clients have discovered the power of design. For example, tests showed them that if they changed packaging color from yellow to blue, consumers said “this product is milder than that other product and it meets my needs better.”
Design is a creative process. It requires continuous refreshment. And, it may have to be adjusted for different target audience segments or in different countries. The complexity and supply chain for these new designs puts even greater burden on the marketing function to collaborate.
3D design (surface design, structural design and user experience design), for packaging is more important than ever. It’s migrating from the brand companies to the retailers own brands and to private label. The renaissance is continuing in areas like paper goods, canned goods, fresh meats and produce. The need for collaboration continues to grow.
You need process, software and a flexible networked structure that organizes itself around collaboration.
JB: Thanks, Hunter. What’s your best advice to marketing and packaging clients given all this?
HH: It’s all about the organizational structure. Change it.