Going Global Talking Business


Going Global

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Meanwhile, the soldiers are gearing up for what will surely we are

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brutal climax to the battle for Mosul.

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Talking Business. Moving your business into new markets can be a

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very tricky affair stop in Talking Business, we will be taking a look

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at what is involved in taking your brand global.

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Welcome to Talking Business. Taking a business and Rand global is really

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quite an operation, it takes much more than just a fancy website and

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glitzy advertising campaign all those both of those might be quite a

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good start. It is also understanding how your brand translates in other

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countries and finding the right partnership and distributors. How do

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you market and export to new regions? What does it take to take

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your business globally? Here to discuss this are three experts. The

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chairwoman of media, UK, the largest media agency. The founder of

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innocent drinks in May 1999 and now home finder of jamjar and the

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founder of ethical low which produces Mediterranean and baby

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food. --F Piccolo. When you are looking off taking it somewhere, how

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do you pick the elements of that are part and said we are going to work

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out which bits work? Our company is found on a diet known around the

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world so we have had a lot of inbound interest when we launched in

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the UK. In terms of distributors and retailers saying we would love to

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have you. We think it is understood by the Public here. It is also

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looking at what other players are in the market and do our existing

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partners in the UK already have a relationship with that market.

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Thinking in terms of the brand, your brand had a specific profile. It

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seemed that way. How did you break that down into chunks so you could

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look at it. When it is about something that tastes good and looks

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good, we were responsible in conducting the business in things

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that were universal. Whichever market, this is what people would

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want these days. It was the subtleties of lending it correctly.

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How would you say, the Wrexham will is of brands that have me stepped

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first Mac now, more so than ever, what is essential of any brand

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launching globally or in one market is about brand having purpose. So

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the wide. We have audiences and who can pick and choose based on price,

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accessibility, availability and purpose is really important. And it

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is not high your purpose in terms of solving the problems of humanity but

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what they can give back to the consumers. You think that has to be

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a social purpose? A back story? I absolutely do. More so than ever, in

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the current climate, brands really need to try and look at how they are

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going to do something for the consumer. We are in value exchange

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of consumers and is really, really important. When you took Innonce to

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other markets, whether elements of missing? People saying this is not

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enough? There were different aspects. The hardest thing was part

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of the brand was its openness and the way we communicated with people

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who bought the product. I think our biggest challenge was getting that

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device in each market engaging on our terms and consistent with the

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way we started the business. Did you have problems of people saying in

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this part of the world are people do not like strawberries or we like our

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strawberries to come from here? There was a sense that people wanted

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the recipes to reflect that national tastes. In Scandinavia if we had a

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berry recipe, it had to have blueberries. One of the things that

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happened with Innonce, it grew organically in each market and each

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country adopted at as they are in with a taste reflect that in it.

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That is an interesting aspect. Each country wanting to put their imprint

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on it. Because Piccolo is sourcing from the Mediterranean and it is

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what they want, they are looking for that kind of back story, that kind

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of sourcing, where we were buying the raw materials, they were

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interested in having that tomatoes from Italy. It is part of the reason

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why other markets are approaching us. Do you think there are cases

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where by people did not necessarily recognised the Mediterranean diet is

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the Alexa that we see it as? So far, we are a one-year-old company, we

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have had very positive response. We are already exporting into China and

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progress into the US next year. In terms of a large market, we have had

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a positive response. I am sure there will be a few markets... For example

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sub Saharan Africa were used to work in, may not know the diet as much. I

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spelt ten years of my life in the United Nations in food, I feel I

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have a sense of which markets are right for Piccolo. You may go into a

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market where you may have to bolt something more on to accommodate

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cultural identity or cultural sensitivities - can you think of

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cases where that has happened? When brands look to expand into other

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markets, they roll out on a geographical pattern... A regional

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basis. I do believe that geography actually isn't the court deciding

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factor of where to roll out to next. The cultural nuances are really key

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and important and it would not necessarily be a country next to

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each other that would be the same. For example, we work with Halsted

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which is a cultural institution and we looked a cultural differences in

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terms of marketing and targeting consumers. You find there are some

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markets where they tend to avoid risks. New product launches would be

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difficult. Those markets tend to be markets which are steeped in

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tradition. Market that respect high raki is. They preferred to gravitate

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towards market leader. -- hierarchy. An example would be Russia or Israel

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or Japan, tend to be markets culturally it would be risk

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avoiders. If you were launching a brand into that market, rather than

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taking an approach that one size fits all, in those markets which

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showed cultural similarities that are risk avoidance you need a

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tactic. Natural fruit smoothies would not present a risk to anybody

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but some people may not see it that way. Once we squeezed the freeze

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into the bottle, we were geographically limited. Because of

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the shelf life. We were physically constrained. We can get it across

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the Channel and into northern Europe and that is about as far as we can

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go. Our first market was France. What about this idea of risk which

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car and has talked about. What we saw is all markets tend to move in

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the same direction but there are different times in that journey so

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it was about getting the timing of right in different markets. On March

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more rapid acceptance in Scandinavia than the Germanic countries.

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Scandinavia was already into smoothies. In Germany everything was

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long shelf life so we had to change the distribution system and the view

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of what fruit juice could be. This is counterintuitive, if you saw

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something on the shelf that was very similar to your product you can

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think that is already done but not so. If the format is there and the

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customer has experience of going into the retail and finding that

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type of Ruddock, it is definitely a bit easier than bringing an entire

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new concept in the sense of changing the juice market. With Piccolo

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people know where to find baby food, they are not lost. When we take it

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as a new brand into a new market, we are also navigating by part of the

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supermarket they can find us and if they are looking for baby foods they

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know where to go. More from our guests later when we talk about

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establishing key partnerships. First an example of a company making the

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journey we have been talking about, after losing their parents in the

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Asian tsunami of 2004, brothers Rob and Paul wanted to create subtly

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innovative and unique driven by their personal passion after such a

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tragic loss. The result was Gandys. How to spot an opportunity. It was

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inspired by travel and filled by giving back, after spending many

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years kind of volunteering in India and travelling around South East

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Asia, we wanted to create a brand that would reflect that upbringing

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and would give people hope in our product. Because it has such an

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unusual story in terms of ourselves at losing our parents and wanting to

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build a children's home, at the there are people with quite a bit of

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admiration about what we do and people intrigued by the brand and

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story. Sometimes it is better to make sure you have it right in your

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backyard, the formula and ingredients, before going anywhere.

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At the start, people lock in your door and that will say we will come

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back to you in two years time so, without realising we were quite

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young and naive, you start dealing with countries and it takes up more

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time than the bigger markets. What we learnt in the last few years,

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more than often those people knocking on your door in fact it was

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not an opportunity but a distraction. What distribution do

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you have, who are your partners, white retailers and brands do you

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work with? We got a lot stricter on that and that seemed to help.

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The biggest mistake's working with you. I would say the same. Everyone

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makes mistakes. You cannot worry about making the biggest mistake as

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long as you don't do it again. Don't make the same mistake twice, good

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advice. Everyone is still with me. What do we mean by partners when we

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talk about going into a new market? You are already nodding, Kat. What

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partners do you need? On the marketing side, if you have a lot of

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international markets, you need a partner with international footfall.

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We partner with WaterBabies, a swim school, the largest in the UK. Even

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though they aren't related? Yes. It has been fantastic. When moms and

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dads go to babyschool, they get a pouch from Piccolo. It also spreads

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by word-of-mouth. And WaterBabies is also in China so we got there to. So

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if they trust them in the water, they might trust you with the brand.

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Yes. We also went with the UK's largest baby charity. They hear

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about us through the NCT, which they trust. The NCT is a British charity.

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I am looking at a similar model with an American counterpart. You. When

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we talk about partners, what kind of partners do we need and what

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function do they perform? One of the core things is getting distribution

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to expand into another market. Distribution is king. It does not

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have to be just physical bricks and mortar any more so it can be

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digital, it can be e-commerce. Think of an example, JD.com, China's

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second largest e-commerce site. Their growth was connected to a

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partnership they made with the biggest Internet service provider

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who had a messenger service which allowed one click through from the

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messenger to JD.com. That has been fundamental and a key part of

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JD.com. 'S growth. That was a key part. Cat indicated that having

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brand consistency with the person you are trying to work with, but

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also trust and making sure the customer trust them, is important.

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Yes. On the continent, when we had to do the physical growth, we had to

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build a relationship with retailers. And you need to engage consumers who

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are going to buy it. Which bits are you going to do and what will you

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hand over to other people? It is very tempting to hope that someone

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can do it all, because they will probably promise that. But you will

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find out there interests are slightly different and they will not

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see the brand in the same way you will and understand its dynamics.

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Increasingly, we try to partner for physical movement for goods, but we

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will set up local teams who build relationships with retailers and

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talk to consumers about the brand. Cat, the brothers from before said

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time and again, there are plenty of distractors. Yes. We have passed up

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on some things because it would take too much time for us and out into

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servers that market. File the interest and say it is not right now

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because we are focusing on other market. It is about prioritising. It

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takes so much discipline. You become a hot property and everyone

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expresses interest in you. To say no to it, we will not explorers, it is

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a hard decision to make. But it is easy to get drowned and swamped. I

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am interested in the idea that distribute us do not have interests

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aligned with yours. That seems counterintuitive. If you hire

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someone to help you, of course they have to have the same interest. It

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is not always true. Cat said it very well, you have to share core brand

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values and purpose. Making sure your brand keeps the correct company is

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really important when you are establishing a brand. There may be

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opportunities that allow you to go quick to market, but actually, it

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could be detrimental because it is not the right company, it is not the

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right association. They may incentivise the friendly, saying we

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would like to sell fewer with a higher margin and you may not be

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able to do that. If the "why" is not aligned, you really should not do

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it. The centre of the brand, is not just the how and what, the centre is

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the why, and it needs to be aligned for sustainable long-term growth.

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What about you? We made them for ourselves, our mistakes. Our first

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country overseas was France. We started doing it and we went to a

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trade show and put out a stand and translated everything in the

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promises of the brand onto banners, 100% fruit, no colourings, no

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preservatives. We said no presertif, and we could not understand why no

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one would come over. Because it meant male prophylactics. Yes. We

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needed people on the ground to translate. I want to talk to you a

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little bit about cutting losses, Cat. We are seeing, especially for

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major retailers, headlines coming out of China or India. You can

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understand because fast-growing legislation may change. There have

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been instances where you have seen retailers and other brands come out

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of pretty mature markets, Canada, even the United States. Have you had

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that experience? What is generally would spark a retreat? I think,

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especially now, those external conditions that have happened in the

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past 12- 18 months which are causing a lot of instability. Just within

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the things we take for granted in terms of the landscape with

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retailers. Especially with the recent election in the United

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States, record three was lucky in six months to do a launch with a

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brand associated with Walmart. Having that parent company with us

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is very much a positive. You can see how the effect in the US can trickle

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into the UK. Have you ever had to pull back? You have to decide which

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country to put the most investment in. We never pull out but we change

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investment. The companies we invest in, often what causes you to

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withdraw from a market is you have gone into too many. You have ever

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expanded, you have been overambitious. You realise you

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cannot cope with that breadth. So you have the double down on markets

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that work so be it is often internal operations. When you say you have

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overextended, can you not just hire more people rather than shutting

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down the opportunity? More people means more money. Web you'll get

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that from? How will you promise that? -- Where will you get that.

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So, over extending, not anticipating competitive. Or is it a change in

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legislation? It is a number of circumstances, the cost of raw

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materials, a change in legislation, policy, government change. There are

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a range of different influences. It could be, also, well, did you really

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understand the market? Because when you expanded to another market, you

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absolutely have to understand what is the media landscape, what is the

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competitive landscape in terms of the competitors, what are the

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purchase cycles in this market? What is the lifestyle of the consumers in

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this market? What are the cultural nuances of the market. That is just

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as important as some of the external factors and can have an influence.

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Just one final question, John, when you are advising the people, the

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companies you invest with, JamJar Investments, do you say going global

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is necessary, or you do you say it is up to you? We were at a meeting

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yesterday looking at the sides of the UK market and it was in

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billions. If your home market is in billions, you do not need to start

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about any where else until you are selling millions. It is the same

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anywhere else. Some products are a niche but global. Others you can

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move faster with the Internet. That is it for this edition of Talking

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Business. Thank you very much to all of our guests. Kat, Cat, and John.

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Thank you for watching. Goodbye. This is the shape of things to come

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rather than what we saw for many, at least, during the course

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of Sunday, which was a decent enough

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