Category Archives: marketing

Are You Lying to Your Customers?

Are You Lying to Your Customers?

It seems like every company these days is trying to claim that they are innovative, trying to claim that they are customer-centric, trying to claim that their employees are important to them. But are they?

Can all this be true?

Or, are all of these companies lying to their customers, lying to their employees, and lying to their shareholders?

Many companies say that they are committed to innovation, but employees know the truth. If employees’ experience around the innovation efforts of the company (and its outcomes) isn’t consistent with the innovation messages being communicated, then not only will innovation participation and outcomes be low, but ongoing trust and loyalty will be further eroded in the organization.

Employees can see the Lucky Charms on your face when you say you’re committed to innovation publicly, but behind the scenes your actions demonstrate that you really are not.

And don’t be fooled, customers will start to see the Lucky Charms show up on your face, no matter how hard you try and convince them that the marshmallow goodness is not there.

If you aren’t going to define what innovation means to your company, if you aren’t going to create a common language of innovation, if you aren’t going to teach people new innovation skills and support innovation at all levels by making limited amounts of time and capital available to push their ideas forward, then don’t say you’re committed to innovation. You’ll tear the organization down instead of building it up.

Lying to CustomersIf customers don’t see you increasing your level of value creation, improving your level of value access, and doing a better job at value translation (see Innovation is All About Value), especially when compared to the competition, then they too will become disillusioned, frustrated, and start to look for other alternative solutions that deliver more value then all of your offerings.

Meanwhile, shareholders behave like customers on steroids. If you are being rewarded with an innovation premium by the market, you can’t be “all hat and no cattle” for very long, meaning you have to deliver compelling inventions on a repeated basis with a strong potential to become the innovations that drive the future growth of the company. This is hard to do once, let alone on a repeated basis. We will likely see Apple be the latest victim in the next twelve months.

Why? Because AAPL is at an all-time high based on the likely high percentage of people that are likely to upgrade from an iPhone 4 or 5s to an iPhone 6 or 6 Plus. What about after that? Well, the smartphone industry is about to enter the same place that the PC industry hit a few years ago, when replacement cycles began to lengthen, reducing revenues, and forcing prices (and margins) lower. Simultaneously carriers will seek to extract more of the margin from the overall equation, and if Google/Motorola/Lenovo, Nokia and others start to bring $99 smartphones developed for India and other places to the richer economies that will in their next generation likely be “good enough” compared to the high end $699 handsets, more people will choose to wait longer between upgrades, or trade down with their next purchase, much as they did when $400 laptops started to become the rage.

So, what are we to learn from Apple’s pending share price collapse about the middle of next year?

Well, the first thing we will learn is that continuous innovation is hard. Now I’m not saying that Apple is going to go away, HP and Dell haven’t gone away, but Apple’s share price in Q2/Q3 2015 will struggle, they will face employee defections, and it will become more like Dell, HP and Microsoft than Facebook or Google. Not because those companies are any more or less innovative than any of the others, but because the growth paradigms are different and those companies are still in a different place on their growth curves.

We can also learn that continuous innovation requires consistency, commitment, the ability to recognize and prepare for the inevitable peaking of any growth curve, the organizational agility necessary to change as fast as the wants and needs of your customers and your environment, and the ability to understand what your customers will give you permission to do (so you know where to go next when your most profitable growth curve begins to peak).

You should see by now that continuous innovation is about far more than technological innovation, but instead requires not only continuous commitment, but also a continuous willingness and ability to change, and a continuous scanning of your environment using a Global Sensing Network.

Do you have one?

What is yours telling you about your company’s future?

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Where is the Innovation Bonfire the Hottest?

Stoking Your Innovation Bonfire Sales

Now that I’ve secured a book deal with Palgrave Macmillan for my second book, I thought it might be interesting to peek in on the Nielsen Bookscan sales numbers on Amazon and look back at the last couple of years of sales by geography in the United States for Stoking Your Innovation Bonfire. This is what you’ll see in the map above (darker color indicating more dense sales). Unfortunately they don’t collect international data an so I can’t show you a world map, despite the book’s global popularity.

So where in the United States does the innovation bonfire burn the brightest? Here are the top ten cities:

  1. Washington D.C.
  2. Boston
  3. Los Angeles
  4. New York
  5. Philadelphia
  6. Silicon Valley
  7. Seattle
  8. Cincinnati
  9. Chicago
  10. Dallas

Think your city should be on the list?

Get a copy of the book or ask your library to acquire it.

Curious what my second book is about?

My intention is to make it the definitive instruction manual for planning successful change (complete with guest experts and numerous collaborators).

I’m currently developing the powerful visual, collaborative change planning toolkit that will sit at its core and building the web site that will allow me to start inviting people to register their interest in getting exclusive early access to the toolkit before the rest of the world, so people can use it with their clients or in their company as soon as possible, and also possibly contribute to its evolution.

So, stay tuned and subscribe to my weekly newsletter to get the latest info on this exciting new project!


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Let’s Chat About the Language of Innovation

Let’s Chat About the Language of Innovation

Let’s Chat About the Language of Innovation

It was bound to happen sooner or later…

What is it you might ask?

Well, it is the recognition that the language we use (and more importantly, having a common language) when it comes to innovation, to change, or to pretty much any other aspect of business is just as important as it is in our personal lives.

Who does the recognition come from?

Well, none other than the innocats, a cool group of people who host a twitter chat at #innochat every Thursday at 5PM GMT (that’s 9AM for those of you on the west coast of the USA, Noon on the east coast, and well, 5PM for those of you in the UK).

Personally I tend to use Tweetchat.com to participate in twitter chats like this because it makes it easy to follow along real-time. If you go to the Tweetchat.com web site, just enter the hashtag #innochat as the room you’d like to enter.

So, come join me tomorrow (October 9, 2014) for an #innochat on the language of innovation. You can find the introductory post for the session here:

Sorry, link expired

UPDATE: Sorry, link to transcript expired

On that page you’ll also find links to my latest article on the topic and my latest white paper (commissioned by Planview).

If you’d like to commission a white paper, webinar, or keynote speech on innovation, social business, inbound/digital/content marketing or some other topic you think I can help people make sense of, contact me.

Otherwise, come join me for a lively Twitter discussion of the importance of a common language of innovation.

Oh, and if you’re curious what my current definition of innovation is, here you go:

“Innovation transforms the useful seeds of invention into widely adopted solutions valued above every existing alternative.” – Braden Kelley

Keep innovating!

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Are you competing at cloud speed?

Are you competing at cloud speed?We live in an era of constant, accelerating change, and the only organizations that are equipped to keep pace are those that are capable of competing at cloud speed. Does trading out packaged software installed on your own servers for the cloud-based versions offered by your vendor accelerate your organization to cloud speed?

Sorry, no.

So what the heck is cloud speed anyways?

Competing at cloud speed is a goal that every organization should have, and it requires learning fast not failing fast, it involves creating the flexibility to adapt to trends that spread globally faster than ever before, to respond to competition from unexpected sources, and provides a potential antidote to decreasing corporate lifespans.

Accelerating to cloud speed requires your organization to operate under a series of principles that make it both FAST and agile.

Going FAST (the Right Way)

In the experience of Gordon Tredgold, creator of the FAST Approach to Leadership, we usually end up doing either the wrong job or a poor job in an organization because of a lack of focus or accountability, as a result of work has that’s been made overly complex, or because transparency doesn’t exist across the organization.

The FAST Approach to Leadership attempts to address these concerns by answering the What, Who, How and How Far questions related to the task, service or project that is to be delivered (or goal to be achieved). The following four areas make up the letters of the FAST Approach to Leadership and its FAST acronym:

  1. FOCUS is about the WHAT, what we’re doing, what is our objective, and what does success look like.
  2. ACCOUNTABILITY is about the WHO, who is going to do the work, who will be accountable and how will we hold them accountable.
  3. SIMPLICITY is about the HOW, what is the solution, how are we planning to deliver success. Is our solution simple or have we over complicated it.
  4. TRANSPARENCY is about How Far, How Far we have come and How Far we have to go in order to be successful, it’s also about our honesty about our progress and capability.

Focus and Accountability help to ensure that we are getting the right job done, increasing our effectiveness.

Simplicity and Transparency help to ensure that we do a good job.

The objective of FAST Leadership is to ensure that we do the right job, well, each and every time.

Becoming Agile

According to a recent Forrester report titled Business Agility Starts With Your People, a digital business requires an organization to be able to both sense and execute on change, and Craig Le Clair of Forrester outlined a set of ten dimensions that define the digital business, grouped by market, organization and process:

Market Dimensions

1. Channel Integration – Information sharing and cross-channel experiences

2. Market Responsiveness – Customer knowledge and rapid access to resources

Organization Dimensions

3. Knowledge Dissemination – Broader sharing and flatter organizations

4. Digital Psychology – Trend awareness and digital skill sets

5. Change Management – Embracing change and embedded change management

Process Dimensions

6. Business Intelligence – Information management and distributed analytics

7. Infrastructure Elasticity – Cloud awareness and the embrace of cloud options

8. Process Architecture – Process skills and core system independence

9. Software Innovation – Real-time experience and incremental development

10. Sourcing and Supply Chain – Agile sourcing processes and supply chain flexing skills

People looking for a shortcut might hone in on the Process Dimension named Infrastructure Elasticity because it contains a mention of the word cloud and think that this dimension is the secret to competing at cloud speed, but by itself it is not. Forrester’s research showed that the relative performance of an organization along the Infrastructure Elasticity dimension was not a predictor of organizational success, but instead an enabler of improved performance along other dimensions. Craig Le Clair found that greater business agility comes not just from increased Infrastructure Elasticity, but from consciously utilizing that increase to achieve other improvements, such as an improved Digital Psychology or increased Knowledge Dissemination.

Competing at Cloud Speed

When we think about the cloud, what makes it incredibly powerful for organizations is that it breaks down walls. The cloud makes it possible to quickly get people in different departments, geographies, and even organizations collaborating together using a range of cloud-based tools to achieve business goals. When the cloud is viewed not as a solution, but as an enabler of multiple business agility improvements, and a foundation for the principles of FAST Leadership (focus, accountability, simplicity and transparency), we can finally begin competing at cloud speed.

Competing at cloud speed will help improve the velocity of:

  1. Information flow inside and outside the organization
  2. Decision making and commitment
  3. Resource re-deployment
  4. Channel and customer feedback on course corrections

Competing at cloud speed means putting systems in place that quickly capture the voice of the customer, and broadcast it widely and deeply enough into the organization. It means putting the processes and decision-making tools in place to allow leadership to adapt their strategy, redeploy resources and spin up new cross-border and cross-boundary project teams to full productivity faster than the competition in order to capitalize on changes in customer wants and needs.

Are you competing at cloud speed?

Join Inc. 100 and #1 Leadership Expert, Gordon Tredgold, formerly Head of Service Delivery at Henkel, for a simple approach to improve your operational performance live during our expert webinar on October 8 or register for the OnDemand recording.

Sources:

  1. http://www.theleadershiphub.com/blogs/fast-leadership-0
  2. http://solutions.forrester.com/business-agility/improve-your-business-agility-187UW-2434YQ.html
  3. https://www.linkedin.com/pulse/article/20140914015150-649711-don-t-fail-fast-learn-fast
  4. http://www.business-strategy-innovation.com/Voice-of-the-Customer-White-Paper.pdf

NOTE: This article was written for Intuit Quickbase’s The Fast Track but disappeared off the web so I brought it back here


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Making People Dance Instead of Jaywalk

Making People Dance Instead of JaywalkI love anything that is fun and investigates human psychology, especially crowd psychology, and the investigation of how you can use fun to potentially influence human behavior for social good (i.e. the piano stairs example I’ve shared before).

Nobody likes to wait at pedestrian crossings. Traffic lights can be dangerous for impatient pedestrians trying to save a few seconds to cross the street (and willing to risk their lives in the process).

The folks at Smart created The Dancing Traffic Light, an experiential marketing concept providing a fun and safe way to keep people from venturing too early into the street. They started by placing a dance room on a square in Lisbon, Portugal and invited random pedestrians to go into the box and dance. Their movements were then displayed on a few traffic lights in real time. This resulted in 81% more people stopping and waiting at those red lights.

It’s a genius marketing gimmick because it reinforces the brand value of fun by making people dance in a box that looks, imagine that, a bit like a smart car.

The question brought up by this example of a marketing campaign that claims that fun can be used to achieve social good, is that it claims a benefit, that without an extended test could be attributed to novelty…

Does the benefit hold up over time?

Or does it stop being fun and impactful after people have seen it once or twice or the live video component goes away and it becomes a recording? Do people then start jaywalking again at the normal rate?

What do you think?


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A Simple Idea to Save Oil

Sometimes the simplest ideas are the best.

Here is a great marketing campaign from S-Oil in South Korea which took the challenge of finding ways to decrease oil consumption in South Korea and turned it into a marketing campaign:

In this case the solution highlighted in the video is one potential solution of many to the challenge of decreasing oil consumption, and is focused on reducing the amount of oil consumed searching for a parking spot.

The one thing I didn’t understand was why “HERE” was in English instead of Korean characters… (NOTE: I had to replace the video and the new one is in English)

But anyways…

What simple solution is hiding under your nose?


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What Do You Do When People Say Your Logo Looks Like *#&@?

Stikkee Number 4 - New Hershey Logo

Recently The Hershey Company decided to update their logo and since it’s launch they’ve been getting a lot of negative buzz surrounding the new logo because some people think that part of the logo looks like a steaming pile of *#&@.

The new branding was created in-house by Hershey Global Design, with assistance from goDutch and Alexander Design Associates, and on the one hand for Hershey I imagine all of the pile of excrement comments might be quite concerning, but on the other hand you have the age old mantra ‘all publicity is good publicity’.

Where do you stand on the controversy?

hersheys colorful kissPersonally I would have used the colorful kiss they developed instead in order to reinforce their global confection and snack company positioning and dropped the redundant “The Hershey Company”. In addition, I don’t think the pile of excrement comments will harm their sales or their brand because most people won’t even notice or care.

And after all, when it comes to marketing and advertising, you should really be doing WGAS Marketing anyways.

Not sure what that is?

Check out the article here and follow along! 🙂

Please note the following licensing terms for Stikkee Situations cartoons:

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Unlock Marketing Innovation with a WGAS Focus

Unlock Marketing Innovation with a WGAS FocusBack in 2011 when election season was fast approaching, one thing that you heard repeatedly during election coverage was analysts talking about the importance of the undecided vote. Often in an election it is the undecided who swing the vote for one candidate over another. As a result, there is an incredible amount of focus placed on understanding why people are still undecided between two major candidates (think Obama vs. Romney) and so as a result campaign strategists and speech writers are obsessed with capturing the imagination of the undecided. But, there is a lot of complexity in those undecided numbers, as they include:

  • People that are truly undecided
  • People that don’t want either candidate to win
  • People that didn’t even know there was an election going on
  • People that feel the whole system is corrupt
  • People that can’t tell the difference between the two candidates
  • And so on

So if the undecided are so important in politics, why shouldn’t they be in business?

If we are the Coca Cola company, do we really think that an advertisement or a marketing campaign is going to turn a loyal Pepsi drinker into a Coke drinker? Are we going to be able to turn Red Bull or milk drinkers into Coke drinkers?

People prefer to drink a lot of other things over something thick and syrupy like Coke and Pepsi most of the time, and while a lot of people may drink Coke either regularly or occasionally, a lot of people don’t and won’t. So if we are the Coca Cola company we are advertising to:

  • Remind Coke drinkers how great Coke is
  • Make occasional Coke drinkers think about having one again soon
  • Convince people that aren’t sure about Coke that they should really try it

This reminds me of the old saying “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” (John Wanamaker)

Personally, I believe the percentage of waste is much, much higher than fifty percent because:

  • Probably less than fifty percent even see the advertisement
  • Twenty percent or more will never buy the product no matter what you do
  • Twenty percent or less already buy the product
  • Leaving MAYBE ten percent of the people exposed to the advertisement to be swayed by it

The above are just my intuitive estimates. I’m sure someone out there probably has done the research on this and could share a more precise number, and if that’s you, please share in the comments!

A lot of this waste comes from the fact that we as marketers focus on the volume of exposure we can achieve for a product or service, even if we’re using complicated segmentations, personas, and/or behavioral targeting. No matter what, we always end up coming back to the volume of exposure we are able to achieve, because it is something we can measure. We try to segment the market and target our chosen segments with a carefully crafted message and creative, but ultimately most marketers attack the problem by asking this question:

  • What do the people who buy my product look like?

When we should all be asking the question:

  • Who gives a @*!%?

I like to call this WGAS marketing.

The premise behind it is that there is only a very small, diverse subset of people out there who have any interest in what it is that you’re selling. And so, by trying to talk to everyone that looks like that subset – by age, gender, race, tax bracket or whatever other segmentation parameters you might select to target based on, then you’re still wasting a huge amount of time – and money. Instead, we should be looking at creative ways to expose only those people who have a need (or maybe a want) that we can satisfy with what we’re selling.

Jobs-to-be-Done Isn’t Just for Innovation

We talk about identifying unmet needs and jobs-to-be-done when it comes to innovation, but there is no reason why we shouldn’t keep that line of thinking in mind when it comes to our marketing of a potential innovation (or any product or service). Thinking about the jobs-to-be-done or the needs that the customer is trying to satisfy instead of the commonalities of prospective customers from a targeting/segmentation might change the kind of marketing strategy and execution that you come up with.

You might think in different ways about what success looks like, or consider marketing methods you might otherwise skip. For example, while doing in-store demos of a new food or beverage may cost more per potentially engaged person than traditional advertising, you are much more likely to turn the people you do engage with into customers, and to have a conversation with them, so is it really more expensive?

Or you might do something like what Safeway has started doing, as shown in this New York Times article. Safeway is using its vast amounts of shopper data to engage in WGAS Marketing by offering variable pricing – offering different prices to different customers on the same product. But unlike, the variable pricing of airlines that is based on availability and timing, Safeway is varying the price based on individual shopper behavior.

Done properly, pull marketing can use content as a WGAS Marketing strategy. The key of course if to create content that your WGAS audience will find value in and that will cause them to either take action or to develop a stronger affinity for your brand so that when they are ready to take action that you are either the only brand that they will consider, or firmly planted at the heart of their consideration set.

Another way of engaging in WGAS Marketing is to engage in activities that your WGAS audience will engage with. Companies like Red Bull and Life is Good use events very successfully as a WGAS Marketing strategy mixed together with a traditional segmentation and targeting approach. Red Bull focuses so much on their WGAS audience that their product isn’t even featured on their home page.

For better or worse Camel cigarettes and McDonald’s identified kids as the ‘undecided’ potential customers in their markets and chose to target them as a way of increasing their current and future sales. Larry Popelka in his book Moneyball Marketing talked about how Clorox identified new mothers as a group of ‘undecided’ potential bleach buyers who had something that they wanted really white (diapers) that Clorox could target and grow into long-term profitable customers.

So, as you can see, one of the keys of WGAS Marketing is to not just identify what your current customers look like and to try and attract more of them, but to identify the underlying reasons why someone may have a need to consider your solution (think jobs-to-be-done), or become open to a new solution such as yours because their life circumstances have changed.

So, WGAS about your product or service? Or WGAS about the problem that your solution addresses (if it is something new or innovative)?

Finding the answer to one or both of these questions is the key you need to unlock a source of tremendous new revenue and profits for your business. Are you ready to look for the things that will cause people to care? Are you open to considering alternative marketing approaches that will help you reach the people WGAS?

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Is there a market for Smartwatches? Can Apple create one?

Stikkee 3 - Apple Watch

Okay, it’s been a week since the Apple Watch was announced, and do you know what the world’s most popular wearable is likely to be for 2014/2015?

It’s not the iWatch, but the iPhone 6, which is breaking the pre-sales records of the iPhone 5.

No, it’s not an iWatch. Don’t you dare call it that!

We’re Apple and we’ve decided that it’s far too sophisticated and exclusive to be an iWatch.

Oh, and we’ve also decided that you must own at least an iPhone 5 to be privileged enough to wear an Apple Watch.

Okay, so instantly Apple has reduced the potential market size for the Apple Watch from 6 Billion people to about 100 million people (based on statisticbrain’s numbers).

Now, layer on top of this the fact that in a YPulse survey of millenials, only 32% stated that they wear a watch regularly.

$96 million of smartwatches were sold between October and July according to CNet at an average price of $189 (and dropping fast) – often bundled with a phone – and with Samsung wrapping up 78% of the market. If you do the math, that’s just over 500,000 units, less than 1% of the likely iPhone 5 sales over the same period.

The Apple Watch starts at $349.

But wait, we’re not done yet.

Consider that Samsung has become a faster, nimbler innovator in some ways than Apple and are shipping a new version of their smartwatch next month, up to six months before the Apple Watch is expected to be available – oh, and you’ll be able to use their new watch to make phone calls and run lots of wellness apps (including some from Nike). Plus Samsung will probably launch an even more capable version shortly after the Apple Watch starts shipping.

Apple’s already playing catchup in the smartphone market and they haven’t even shipped their first unit.

So if Apple is entering a small market with a declining average unit price against a more nimble competitor, what rabbit do they have up their sleeve to grow the market and increase their stock price?

What will make the Apple Watch a must have?

The iPod was a must have because it allowed you to carry your entire music library around with you after easily organizing it on your PC and syncing it to the iPod. After that you could then easily navigate thousands of songs on the device with the handy click wheel.

The iPhone was a must have because it became the world’s most widely adopted personal, wearable computer. The iPhone disrupted the balance of power in the mobile phone industry and allowed device makers to start offering whatever applications they wanted (unencumbered by the carriers). The iPhone also disrupted the digital camera market, the Flip (super portable, simple video cameras), and the dedicated GPS market.

Other wearables are on the decline.

iPod sales in Q4 2013 were down 52% from Q4 2012.

Google Glasses got a lot of buzz early on, but interest has fizzled.

Fitbits and Nike Fuelbands have lost their luster and momentum.

Even the iPad, which became a must have after Apple solved the Value Translation riddle and properly highlighted its benefits as a more relaxing and accessible computing device, has seen sales fall the past two quarters as the large screen phones have started to become big enough to begin decreasing the need for a separate tablet. If you’re keeping score the iPad disrupted the gaming industry and challenged people to think deeply about their computing device preferences.

Now back to the Apple Watch…

Can a smartwatch really unseat the mother of all wearables, the smartphone?

In an era of declining interest in watches, can Apple change people’s behavior and lead a resurgence in watch wearing?

These are all very tough questions, but they are not tough challenges that Apple hasn’t faced before.

It’s easy to forget that the iPod didn’t become a runaway success until two years after its launch (with the launch of the PC version of iTunes), and that it took a year for Apple to really ramp up sales of the iPhone (after the launch of the App Store), or that Apple got killed in the press after the announcement of the iPad but figured out how to translate its value by the time they started shipping it.

So, is Apple up to the challenge this time?

After their recent string of game-changing innovations the pressure is on!

Please note the following licensing terms for Stikkee Situations cartoons:

1. BLOGS – Link back to https://bradenkelley.com/category/stikkees/ and you can embed them for free
2. PRESENTATIONS, please send $25 to me on PayPal by clicking the button 3. NEWSLETTERS & WEB SITES, please send me $50 on PayPal by clicking the button
License for presentations - $25
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How Happy Are You When You Fly?

I came across the following video from British Airways a month or so ago, and I’ve been so busy I haven’t had a chance to write about it, but I finally had a moment and so I thought I would share it with you now.

It’s about a happiness blanket that British Airways has invented and subsequently tested on flights between London and New York.

When I first found the video I had to first check the date it was posted because it almost seemed like an April Fool’s joke, but it was posted in June, so it was definitely something they were serious about.

The question I have is, what actionable data were they hoping to gain from the investment of all of this time, money, and energy (at the expense of not doing something else they were considering)?

Personally, I don’t get it. It seems like a waste of money as they likely learned very little they didn’t already know. And if it was done as a viral marketing ploy, well, that doesn’t really work if it gets people laughing at you instead of with you.

Whatever the reason behind it, personally I would have spent my marketing dollars elsewhere.

So, without further delay, I give you, the happiness blanket:


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