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A History of Marketing

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  • Tracey Panek: Levi's Corporate Historian on Building a Timeless Brand
    A History of Marketing / Episode 41 This week, I’m joined by Tracey Panek, the corporate historian for Levi Strauss & Co, a company that embraces its past as an active part of its marketing strategy. Tracey’s role sits directly within the marketing department. Among her many tasks is to mine Levi’s archives for authentic stories. “Authenticity” may be a buzzword we hear often, but Levi’s backs it up with primary sources, including patents, artifacts recovered from shipwrecks, and of course, jeans… lots and lots of jeans.Tracey walks us through the brand’s evolution from a dry goods wholesaler serving miners in the California Gold Rush to a globally recognized icon of American culture. This episode is a great case study in how a company can embrace its heritage without getting stuck in the past.Here is what you’ll learn in this episode:* The Patent to Trademark Pivot: How Levi’s transitioned from relying on the functional patent of the copper rivet (1873) to building brand equity through the “Two Horse” trademark once the patent expired.* The “Picks and Shovels” Reality: Why Levi Strauss was originally an importer/wholesaler, and how a customer letter led to the invention of jeans.* Cultural Chameleons: How the brand navigated the shift from John Wayne conservatives to the “dangerous” denim of the 1950s and the psychedelic counterculture of the 1960s.* Campaign Spotlights: The stories behind the sales-doubling “Launderette” ad of the 80s and the Walt Whitman-inspired “Go Forth” campaign.Listen to the podcast: Spotify / Apple PodcastsThank you to Xiaoying Feng, a Marketing Ph.D. Candidate at Syracuse, who volunteers to review and edit transcripts for accuracy and clarity.Bridging History and Marketing at Levi’sAndrew Mitrak: Tracey Panek, welcome to A History of Marketing.Tracey Panek: Thank you for having me.Andrew Mitrak: I thought I’d start by asking you about the connection between history and marketing at Levi Strauss & Co. You’re a corporate historian. What is your relationship to other marketers at the company?Tracey Panek: Well, I’m actually part of the marketing department, so it’s a very close relationship. It’s actually a really great place to be because I can see what projects are coming up and what I can tie into that we can use and provide resources from the archives to. So, it’s a great spot to be in.Andrew Mitrak: One of my research sources for prepping for this interview was a book called Levi Strauss: The Man Who Gave Blue Jeans to the World, written by Lynn Downey. I saw that Lynn worked as a historian at Levi’s. Was she your predecessor? Did she help build this history department, and what did this history department look like when you took it over?Tracey Panek: Lynn was my predecessor. She worked at the company for almost 25 years. She was hired in 1989 to establish the archives. Her great contribution was to help start to tell the stories, was to help try to clear up myths about Levi in particular, but other stories that had been told that weren’t really accurate. She also scoured the world in search of pieces to add to the collection, to build the collection. So when I joined in 2014 at her retirement, there was a great collection in place.But one of the things that was missing is it was a very manual collection. And what I mean by that is it was not digital. If you wanted to use the collection, you had to come in person. There was the need to bring the collection into the 21st century. So I started in mid-year 2014. By the end of the year, we were doing the first photoshoot—we now do this annually—but we were photographing all of the vintage pieces on site. That has been the beginning of a much more digital collection. So we have the physical collection and the digital collection, adding new and exciting pieces along the way.Andrew Mitrak: If she was hired back in 1989, there is sort of a self-awareness about Levi’s place in history, that they know that they’re a historic brand and that for over 35 years now, they’ve embraced their place in history and kind of leaned into themselves as a historic brand.Tracey Panek: Yeah, definitely. Being able to have the archives and have the resources to come up with authentic stories. Today we use that word in marketing, and for me, what it means is that they’ve got to be accurate. They’ve got to be based on primary sources as much as we can, and having the collection allows us to do that.The Early Life and Resilience of Levi StraussAndrew Mitrak: I want to ask you about the life of Levi Strauss, because reading his story, I just felt grateful to be alive today. He fled and escaped Bavaria because of antisemitic laws. The trip across the Atlantic was super dangerous and it seemed miserable. Then once he got to the East Coast, he then traveled through Panama to get to California, and that was really dangerous as well. Do you think these hardships helped shape his character and made him and his company more resilient?Tracey Panek: Well, you’re very right in describing a lot of the hardships that he went through. He was the youngest son in a Jewish family. There were very few opportunities for him to work or to marry with all the restrictions and pogroms that they had. So his father dies when he’s still very young, he’s 15 or 16, and he and his mother and two older sisters decide that they’ll make their way to America. They looked with hopefulness and kind of an American spirit that today we look back on and we call the American Dream. And I think there was a bit of adventurousness and wanting to make a name for himself and his family.He definitely went through a lot, even changing his name when he arrives in America. He was lucky to have a couple of older brothers and they help him to learn about what will be his business, dry goods in the wholesale side of it. So absolutely. One of the stories I love to tell to describe how tough he was and how resilient he was—because you went through a lot and you just had to get up and move on—is 1857. Four years after Levi sets up his company. He’s only been in San Francisco a few years but has managed to be very successful. So successful that by 1857, he decides to send an amount of treasure—I want to say it’s like close to $80,000 in gold.But you can imagine, in 1857, it is worth a lot. And he’s going to send it back to New York where his family is and where Wall Street still is, it’s still the financial capital of the United States. He sends it by steamship down the Pacific down to Panama. It is then loaded onto a train, goes to the Atlantic side because of course there’s no canal at that time, and then another steamship, the treasure rooms are the contents are deposited into another ship and they head up to New York. But off of the coast of the Carolinas, the ship hits a storm and it sinks to the bottom of the ocean floor. And all of that treasure is lost.It’s a huge amount of money. And Levi just has to continue on and not dwell on it. Although I think it’s rather telling that in some of the invoices not long after that date, there is little notes: “Are you insured? Are you insured?” It’s a great story of resilience. I actually bid on and won a piece of that ship. The ship is called the SS Central America, “Ship of Gold” is what it’s referred to as because it’s this Gold Rush era ship. And we have in the archives now a piece of the copper hull plate that’s on display and that is a perfect example of what you point out. You had to be hardy. You had to get up and move on when you’re faced with obstacles and you had to be resilient.Andrew Mitrak: Yeah. That was one of the stories in the book that stood out to me. Like, oh my gosh, this shipwreck and he’s sending a decent chunk of his fortune back. And also like 400-something people die. It’s a really horrible tragedy, all this money lost, but also these people lost. And it kind of also speaks to just the hardships of operating a business at that time, making it to California and the West Coast in the first place, and that that was just how commerce was done, is how things were sent back and forth. Anybody who is coming to the West Coast, they’re making this perilous journey where they can sink, they can get horrible diseases.Tracey Panek: I’ll just mention one more thing about those early years. The other great story about Levi is a year after he arrives in the city, and he’s pretty successful early on, he donates a portion of his profits to an orphanage in the city. It’s still around today, that orphanage, Edgewood. In fact, I went last year to a big event they had there. It set a precedent for giving back to the community and also spoke volumes really about Levi, his Jewish values, his own values about, you know, you go through hardships, but where you can, you try to give back something.Andrew Mitrak: Yeah, that’s great.Levi Strauss: The Wholesaler and the Gold RushAndrew Mitrak: I think of Levi Strauss as the classic “picks and shovels” story, and that it’s not the people who search for the gold who make the riches, but it’s the people who sell the tools that get them wealthy. But also, when I learned about this story in grade school—I grew up in California and they teach you about the Gold Rush then—they taught me as if Levi Strauss was selling the jeans directly to the miners and they kind of pitched that as a story. But it was a little more complex than that. He founded the company in 1853 when he was only 24 years old, but then the riveted denim jean wasn’t invented until 1873. So he wasn’t really selling jeans until much later. So what was he actually selling the miners during the Gold Rush? Because it wasn’t the jeans yet.Tracey Panek: The Gold Rush was an important part of the company’s history. Levi wouldn’t have come to San Francisco were it not for the Gold Rush. He leaves New York where he’s learned from his brothers, but he comes out to make a name for himself. And you’re right, he’s not going to do it by looking for gold. But he recognizes an opportunity to sell, and within a month of his arrival in the city, he’s looking for a warehouse near the waterfront where we still are today, by the way. But Levi, he is prepared for a shipment of supplies that will come a month after his arrival so that he can set up his business very quickly.He is not manufacturing. As you point out correctly, in those first 20 years, he’s not manufacturing. He is importing and exporting and selling things that others are making. And we have an invoice from 1858. And on that invoice, there are things like fabric, drawers, gray flannel shirting. There’s hose, which would be socks, and you can get, I think each of the socks was $1.15 for some hose. And the Hardy and Kennedy wanted to get $128 worth of hose. All of the requests, the supplies that they want, add up to $1,600. 1858. That’s a lot of product. One retail customer. So imagine all of the business that Levi is doing. So you’re right in noting that Levi wasn’t manufacturing, but the Gold Rush and the time that he begins, it certainly molds who he is and his relationships that will be established throughout the West.Andrew Mitrak: The folks in the Gold Rush, they were certainly benefiting from materials that Levi’s imported and sold wholesale to retailers, but they weren’t buying jeans quite yet. That wouldn’t come until 1873. Can you tell the story of how Levi first encountered Jacob Davis and how the riveted denim jean kind of came into play?Tracey Panek: Well, let me first say that a lot of what people read and what you may have read in your own research is myth about Levi coming and bringing denim with him when he arrives in San Francisco and creating on his own, sewing on his own blue jeans. Well, that’s not what happens. He develops a very successful dry goods business within the first 20 years. And he gets a letter in 1872 from a customer in Reno, Nevada. Reno, Nevada is very close to Virginia City where the Comstock Lode silver load has been discovered. It’s a huge discovery. It will help fund the development and growth of San Francisco.And this customer is a tailor in Reno. And he writes to Levi about this remarkable innovation. And it’s so interesting because it’s tiny. A tiny little innovation that will eventually allow Levi to manufacture for the first time and will eventually revolutionize fashion. It’s just a little piece of metal. A little tiny piece of metal, a rivet that’s added to pockets of work pants. And in this letter from Jacob Davis, that’s the name of the tailor, he sends two samples of them and tells them that they are selling like hotcakes and he can’t keep up with the demand. And would the company be interested in taking out a patent to protect his idea? He just knows somebody’s going to steal it.Levi, he’s adventurous as you pointed out, he agrees. The company on May 20th, 1873 is granted a US patent for an improvement in fastening pocket openings. It is the birth of the modern blue jean or riveted denim pant. And in that patent, those patent papers, there’s a sketch with little dots at the pocket area and one at the base of the button fly where the original rivets were. And that’s the story. We celebrate at the company May 20th every year as the birthday of the blue jean or 501 Day, as that garment or overall would eventually be called.Jacob Davis and the Birth of the Blue JeanAndrew Mitrak: Yeah. This really changed everything. Because if you think of how annoying it must be for your pocket to break and rip, because if that’s the thing that gets ripped, if people are using these jeans or I should call them waist overalls, that’s what they were called then, right? They were using them to hold their tools. Maybe if you find some silver, maybe put that in there. And if it’s ripping, you’re just losing everything everywhere, right? And so this comes and they totally lean into this. I just checked the Levi’s I’m wearing, I checked them before I put them on like, it’s right there. Patented May 20, 1873.And it’s kind of unusual, thinking of this as a marketer, that most products, they’ll say the date the company was established, right? You’ll see that EST, such and such date. But it doesn’t say that. It says the date that this was patented. So was it immediate that Levi’s the company started manufacturing and leaning into this patent as sort of their differentiator?Tracey Panek: Yeah, and let me clarify that what you’re talking about is the branding on the rivets themselves. Which is amazing because these are tiny. This is like smaller than a thumbnail. And it’s a little tiny little bit of copper and on that little rivet it says PAT for patent, May 1873, SF CA, SF California, and LS & Co. And all that on the little rivet. Yes, it is on that rivet and that imprint is given to those first manufactured products in 1873, the first waste overalls, those riveted pants. So Levi and the company, they’re very savvy about their branding and know that if they put it on there, you know, it’s something you can recognize. And then of course the Levi’s buttons are going to be branded as well. And eventually they’ll also anticipate the end of the patent, which doesn’t last forever, and start to create something to differentiate between them. So yes, the company leans into it. Levi is still a wholesale dry goods dealer, so the wholesale part of the business still continues as usual. And those riveted denim products will be a part of his business, but they won’t become super popular and bring the business what will happen eventually until much later.From Patent to Trademark: The Two Horse BrandAndrew Mitrak: Yeah, let’s dig into that story. Because then when does it sort of start to emerge? Because you mentioned how patents expire, they don’t last forever. Trademarks, however, last a lot longer. And pretty soon you can see the Two Horse Brand patch that’s on the back and the red imprint on the leather that’s on the back of the jeans. So when did that start to come into play when they sort of evolved from relying on the patent to then sort of trademarking more of their IP around what’s on the pants themselves?Tracey Panek: So a patent doesn’t last forever. It lasts about 20 years. And the company wanted to create something that would be recognizable to customers who wanted to get a genuine pair of Levi Strauss & Company waist overalls. And they created this image of two horses facing opposite directions with a little pair of our overalls in the middle. And the idea is they’re so strong, even if you pull them, you’re not going to tear them. And that trademark was created in 1886. It’s one of the oldest continuously used trademarks in the world. Originally we put it on our garment, on our waist overalls, on the inside pocket. But only the wearer could see that. So then we wise up about that and we put it on the back patch of the garment so that others can see it, not only potential customers as well as our customers who knew us.It was important in a couple of ways. That image could be recognized by anyone who was illiterate, which would have been a number of our workers, our blue-collar workers who wore our products. It could have been recognized by somebody who didn’t speak or write English, because we had a lot of immigrants who were working as well. So it played a number of roles and it symbolized the strength and quality of the product. So it was a great way to easily let people know: look for the Two Horse Brand, and then you know you’ve got a genuine pair of Levi’s.From Trademark to Icon: Levi’s and the CowboyAndrew Mitrak: So, when did the waist overalls themselves, when did that become the majority of Levi’s business? When did they start to sort of divest from the rest of the dry goods part of the business and really lean into the waist overalls themselves?Tracey Panek: Well, it happens slowly. When they bring some of the first trained accountants into the company—this will be members of the Haas family who marry in, who have come with an accounting background in the late teens and early 20s—they start to recognize that this is a bigger seller than they knew. And by the 1920s, they start devoting some revenue to advertisements. So in the 20s, you’ll have advertisements with cowboys wearing our products and feature details being called out. And they’re being produced in a number of languages: English, Spanish, Portuguese, Chinese.And then it’s by the 30s, coming out of the Depression—because the Depression was hard for the company, but everybody around the United States and the globe—when we begin to recover from that, we focus on the cowboy as our marketing symbol and also on our denim, our riveted denim products. Which, by the way, almost immediately include riveted denim jackets, which will add to the line and other riveted denim products. We don’t really pull out of our wholesale business until after World War II. But we had recognized, beginning as early as the late teens, how valuable this product was and started to focus on that more. So it happens gradually. It doesn’t happen just immediately.Andrew Mitrak: When did it grow from primarily being sold to working people just for utility versus being more of a fashion statement? What were the first inklings of people wearing it for something other than just its pure utility and more for the image associated with it?Tracey Panek: Well, we get hints of it because it doesn’t happen immediately. But we get hints of it in the 1930s. In fact, one of the earliest examples of it is in 1935 in Vogue magazine. An article about dude ranching, having a dude ranch vacation, which becomes very popular in the 30s and 40s. People from the East, the East Coast, and even as far away as Europe will come to the West and stay on a working horse or cattle ranch. And they want to have a Western cowboy dude ranch experience, and so they want to dress like a cowboy.And Vogue magazine says, if you’re coming out and you’re a woman, get yourself a pair of Lady Levi’s. The year before, we had introduced the first blue jeans for women. Get yourself a pair of Lady Levi’s, wear them cuffed at the bottom once, with a Stetson hat, a silk kerchief, boots, and a great air of bravado, the article says. And if you can do that, you’re going to have a great time. But here you see people who are dressing not because they want to do tough work, but because they want to dress like someone else. In this case, cowboys or dudes from a dude ranch.And then, of course, you have movies. We’re in California to the south of us in San Francisco. You’ve got Hollywood coming out with leading actors, especially in Westerns, and they’re wearing Levi’s. John Wayne, for example, in 1939, he has his first leading role in Stagecoach and he’s wearing a pair of 501s. So there are a number of influences that will change and lead people to start purchasing not just for practical workwear. And by the 50s, we like to say that’s the decade when denim became dangerous. And a lot of customers will be from those who are joining motorcycle clubs and they want to have some tough clothes as well, but they’re going to get their Levi’s with a leather jacket perhaps, and that look of the rebel, which is implanted in people in the movie like Marlon Brando’s The Wild One.Levi’s and Hollywood: An Organic ConnectionAndrew Mitrak: You mentioned the movies and iconic actors like John Wayne and Marlon Brando. Levi’s, more than most other companies I can think of, is really tied to the movies in a way where there are so many just iconic characters, even very different types of characters, that are wearing Levi’s. You mentioned Stagecoach and how the Westerns were really popular and that presumably people on the East Coast were watching Western movies and seeing Levi jeans and coming to the dude ranch out West and then wanting to get their own Levi’s or their Lady Levi’s. Was Levi’s sort of intentionally making connections to Hollywood to sort of use product placement in a way? Or was it more organic where costume directors and wardrobe folks at Hollywood were just picking out Levi’s because that’s what looked good or what they thought would be good on the character?Tracey Panek: Not in the way we think about it today. Today we have something called the House of Strauss, where influencers, movie, film folks can come and be outfitted in Levi’s. We didn’t have anything like that. But we certainly had good relations with the studios. And we’re in California, our location certainly probably helped. But also, we have many people who are wearing Levi’s. By the 1960s, when you have this rising youth generation who are adopting denim and certainly blue jeans in a big way—thanks in part, I think, to the idea of the rebel and what they’re wearing—then there is a desire to look a certain way, to wear something different from your parents and your parents’ generation, and they do that through Levi’s.Plus, Levi’s are such a great canvas for self-expression. It’s just this lovely tough blue fabric. Even if it tears, you can repair it with embroidery or a patch and it’s going to look cool. So all of these influences will come into play when it comes to the popularity of Levi’s in pop culture and in other subcultures generally.The Shift from “Waist Overalls” to “Jeans”Andrew Mitrak: As we’re talking about this era, at some point, waist overalls become jeans. Can you tell the story of how that transition happened? When did waist overalls—which is just so funny that that was the phrase that was used, jeans just sounds like something that’s existed forever, but no, it’s actually relatively recent—so how did that happen?Tracey Panek: Yeah. So we, I mentioned briefly the rise of the youth generation. San Francisco is the headquarters, the city where our company is headquartered, and we’re a stone’s throw away from the counterculture epicenter, the Haight-Ashbury. And young people are flooding into San Francisco and they are adopting Levi’s and blue jeans and denim in a big way. It was in 1967 when we introduce our first zippered jean, the 505, which is slimmer and intended to be a product that this younger generation will like, that we switch the name on our advertising to “Jeans” instead of the “Overalls” that we had been using.So I think the story of that is, as a company, we’re observant. We are watching what’s happening in culture and we’re paying attention and so we’re responding to that. And that includes not just naming a product for what the young people are calling it, but using their music because that will be another way that they will connect with our products.Andrew Mitrak: Yeah, using their music. On YouTube, I found a radio ad of the Levi’s Jefferson Airplane song, which is amazing and so from the era.And so you’re leaning into this counterculture, but also there is sort of a dance between the John Wayne sort of conservative, actual using jeans for their utility purpose—that Levi’s has probably a large customer base that’s doing that—and then you have the Marlon Brando sort of greaser type motorcycle guy of the 50s, the hippies of the 60s, you even have like rockers and punks of the 70s. And there are different flavors of counterculture that Levi’s is appealing to even as it’s also appeasing sort of the mainstream. How does the company balance both?Tracey Panek: The great thing about Levi’s is its timeless appeal and those working-class roots, which make it a garment that’s not pretentious. If you want to fit in and not be somebody that’s making airs, then you’re going to want to wear blue jeans. So they become really something that so many different cultures and subcultures choose, as you correctly point out in your description of the folks that are wearing them. Even today, I’m pleasantly surprised when I learn about a unique group that I didn’t know about that have been wearing Levi’s and have been tapping into that.So the company, to some extent, works on creating timeless products. Our iconic product being the 501, that waist overall, and still having those products that have been timeless and that you can use and that won’t look dated. Let’s just say that. So you can wear them today, or you could have worn them in the 1800s and they look relatively the same. And in that way, you can use that as a basis for so many different age groups, genders, sexualities—because that’ll be another story in and of itself—who have worn Levi’s. And I think it’s one of the really amazing qualities is the versatility of our clothing.Levi’s Iconic “Launderette” CommercialAndrew Mitrak: One of Levi’s most iconic advertisements is their Launderette ad, which aired in Great Britain in the mid-80s. Can you tell the story of this advertisement?Tracey Panek: Well, by 1985, we’re well established as a global product. And the 501, which is the icon, it is a button-fly denim riveted waist overall—we call it jeans now—but that product, we wanted to give a little love, especially coming out of eras where there were other competitors. And so in 1985 on Boxing Day, which is the day after Christmas in the UK, we launched a commercial called Launderette. And in the commercial, Nick Kamen, who’s this very handsome young man, comes into a laundromat and the ad is set to the music “I Heard It Through the Grapevine“ by Marvin Gaye. It’s just a great song.And he goes into the laundromat and he starts taking off his clothes because he’s going to wash his Levi’s. And it’s busy. There’s other people at the laundromat and they’re looking at him, “What’s this guy doing?” And so there’s certainly a little sex appeal there, but there’s also surprise. He throws his Levi’s into the washing machine and washes them. And that is the ad. It is an incredibly popular ad. It, in estimates from people and reviews that I’ve seen of it and talking to people, it probably increased sales of the 501 by as much as 200%. Thanks to the music, thanks to Nick Kamen who is featured on it. It just hits the right notes in so many ways and it helps to re-energize the 501.Andrew Mitrak: So the creative behind it, BBH, and the person who made it is one of the creatives, is Sir John Hegarty, who’s... he’s knighted. And I don’t think he would have been knighted if it wasn’t for this ad. It’s like, there aren’t that many advertising people who get deemed a Sir and get knighted. And it’s like, he’s one, and it’s probably you could tie it to this Levi’s Launderette ad. He’s had an amazing career, but this, this ad is what he’s most associated with.Tracey Panek: He was a guest speaker just this past year for our marketing team. So it was quite an honor to have him talk a little bit about working with the company and working with a brand that was willing to be very creative.Andrew Mitrak: Oh, that’s great. I love his talks. He’s so inspiring. So that’s cool that you got to hear directly from him with your team.Walt Whitman and the “Go Forth” CampaignAndrew Mitrak: I want to ask you about my personal favorite campaign, which I saw probably around the time I was in high school. It was “O Pioneers!” and “America Go Forth,” and they’re both set to these beautiful poems by Walt Whitman.And they’re filmed in this very impressive cinematography type way that just evokes this feeling of Americana. I loved these ads when I first saw them. Can you share more context about these ideas?Tracey Panek: Those ads launched in 2009. One of the things I love about them is they actually used wax cylinder recordings of Walt himself. So you can hear his, you can hear him speaking, which I think makes it even more appealing and authentic coming from him. And you can hear his, where he puts emphasis on his words. It’s so beautiful, isn’t it? That poetry that you were referring to. And the imagery that they used in the ads was also to support those beautiful words that he says.It was really created as a campaign to inspire a pioneering spirit, the way that Whitman captures it in his poetry. And I think it did it really beautifully. And I recently watched some of those, just the beautiful images with his voice in the background. Just lovely to, and very different from some of the other ads that we’ve done, but very memorable.Andrew Mitrak: Yeah, that’s right. And I think this was one of the first ads that I remember seeing like really tying a brand to Americana. You know, it’s a historical ad. It’s very striking to hear a wax cylinder recording with music behind it. And it struck me that Levi’s wasn’t advertising the rivet, they weren’t even advertising the product. They were like advertising this idea and leaning into a shared history of people. And I’m wondering for you as a historian who’s also part of a marketing team, do you sort of see this trend of Levi’s from going to marketing rivets and marketing their product to marketing ideas like durability to then evolving their brand to talk about things like whole cultural movements and then ultimately shared history? Like, do you sort of see that evolution in how Levi’s has approached their marketing?Tracey Panek: Well, that campaign with Walt Whitman especially, was a nod to our Western roots, especially the old pioneer and coming out West and what it means to be, which really is all about our early history. You know, we were born here in the American West. And for a lot of people overseas or in other parts of the world, we represent what they think of when they think of America. So I think that we did it well.I think that, you know, we’ve used at different times what we’ve felt was relevant for that particular time period. You referred to the Jefferson Airplane and their “White Levi’s” song that you can hear Grace Slick singing. And that ad campaign was from 1967. And they just hit it perfectly. It was the year of the Summer of Love. And at that time, that made sense to do it then. So I think we look at what’s happening and relevant at any given time and try to do our best to respond to that.Discover More Levi’s HistoryAndrew Mitrak: Tracey Panek, thanks so much. I’ve really enjoyed this conversation and having this opportunity to go through Levi’s history and analyze their marketing in a new way. For listeners who want to learn more about your work and the history of Levi’s, where would you point them to?Tracey Panek: I do a series on TikTok called “Greatest Stories Ever Worn” and “From the Levi’s Archives.” You can look for me there. You can look for videos that I’ve done on YouTube. I narrate the YouTube “From the Archives,” the Levi’s Archives series. If you’re looking for more of a corporate kind of thing, you can look for me on LinkedIn and you can find a lot of my content there. And then of course, I also do a lot of the writing for Unzipped, our company blog. So, yeah, several different places.Andrew Mitrak: That’s great. I’ll paste links to all of those in the blog that accompanies this show. So Tracey Panek, thanks so much for joining me. This has been a lot of fun.Tracey Panek: My pleasure. Thanks for having me, Andrew. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
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  • Margaret Getchell: How America’s First Female Retail Executive Built the Macy’s Brand
    A History of Marketing / Episode 40Long before giant balloons floated down Broadway* at the Macy’s Thanksgiving Day Parade, a remarkable young woman with a prosthetic eyeball developed the beginnings of the Macy’s brand in the 1860s.Her name was Margaret Getchell. She was a marketing visionary who gave Macy’s its iconic red star logo, she captured customers’ imaginations with fantastical window displays, and she cemented the brand’s connection to the holiday season.Even though she was the first female executive of Macy’s, Margaret Getchell’s contributions were largely lost to time. That was until Stephanie Forshee rediscovered Getchell’s story began the work of restoring her legacy.Stephanie published Getchell’s belated obituary in the New York Times as part of their “Overlooked No More” series, and introduced her story to a new generation through her children’s book, Hidden Gems: Margaret Getchell LaForge, which is part of a series celebrating fierce females in business.It’s an inspiring story that gave me new appreciation for the Macy’s brand. Now, here’s my conversation with Stephanie Forshee.Listen to the podcast: Spotify / Apple PodcastsThank you to Xiaoying Feng, a Marketing Ph.D. Candidate at Syracuse, who volunteers to review and edit transcripts for accuracy and clarity.Andrew Mitrak: Stephanie Forshee, welcome to A History of Marketing.Stephanie Forshee: Thank you. Thank you for having me, Andrew. I’m excited to be here.Andrew Mitrak: I’m so excited to speak with you and have a great conversation about the life and career of Margaret Getchell. That’s a name, Margaret Getchell, that I’m guessing a lot of listeners haven’t heard before. You’ve written a piece for The New York Times about Getchell, as well as a children’s book called Hidden Gems. So to start, how would you describe Margaret Getchell to someone who’s never heard of her before?Stephanie Forshee: Yes, I think you’re correct that most people don’t know the name. Margaret Getchell was America’s first female retail executive. She worked for R.H. Macy & Co. during the 1860s and 1870s. She worked with the founder, Rowland Hussey Macy, who was a distant cousin of hers. She started with the company in 1860 as a cash clerk, worked her way up to head bookkeeper, and then made history in 1866 when she was named Superintendent of the store. That means she was the manager of the store, overseeing about 200 employees at that time, which would have been a big deal, of course.Rediscovering a Retail PioneerAndrew Mitrak: As well as that managerial and executive experience, she had a lot of contributions to marketing that we will speak on as well. I’m just wondering, how did you first come across this story? When was the moment where you realized, “Wow, I need to help tell this story and make more people aware of Getchell?”Stephanie Forshee: Early in the pandemic, very early on, when we were still in lockdown, March 2020, I was a business journalist at the time and enjoyed reading about businesses, particularly retail companies. I was nerding out on this book about the history of Macy’s. Within the first few chapters, there was information about Margaret Getchell and some of the early employees of the store. That’s when I learned she was supposedly America’s first female retail executive.I had never heard the name, so I was very intrigued by her story. I was doing a little searching online, and I just thought maybe it was just my ignorance, silly me for not having heard of this woman, but I quickly realized that not a lot of people knew about her or had written about her. There was an encyclopedia.com entry about her and maybe two or three articles about her at the time. She was very uncovered in terms of what she deserved. I started researching her as much as I could and immediately became more and more intrigued by her story. I was very interested in the idea of uncovering information about this woman that very few people knew about. So that was exciting for me as well.Andrew Mitrak: It’s always an exciting rush of a feeling when you discover somebody who has an interesting story and realize it is relatively uncovered. You think everything is covered on the internet, and it is surprising, of course, your book is called Hidden Gems, when there is more to be told here. I’ve experienced that myself, and it is a good rush.Stephanie Forshee: Yes, I can definitely relate to that.Andrew Mitrak: Your background is as a PR professional now, but you had been a reporter as well at some point, so telling stories was in your wheelhouse as well.Stephanie Forshee: Yes, I was a business journalist for about 15 years and worked for various publications. I was always drawn to stories that were sort of off the beaten path. Finding Margaret fit into that narrative, even though it was something completely new to me—covering a historic figure and researching someone like this. That was a whole new process but used a lot of the same skills.From Schoolteacher to Retail ExecutiveAndrew Mitrak: Let’s walk through some of Getchell’s career. To start, how did she get her job at Macy’s? You mentioned that Rowland Hussey Macy, the name of Macy, was a distant cousin of hers. Was that the initial connection for her to start work there?Stephanie Forshee: Actually, they had not met at that point. She graduated high school at the age of 16. She was very skilled with numbers, so she became an arithmetic teacher for a school on Nantucket. Then she traveled to a couple of different cities in New Jersey and New York.Years earlier, she suffered an eye injury. It was a freak accident playing a game of tag with her sister. It was a gory accident where she injured her eye. She didn’t immediately lose her vision, but it was deteriorating over the years. When she was 19 years old, she finally had surgery to have her eye removed and replaced with a prosthetic eye. It is one of those incidents that changed the trajectory of her life.Andrew Mitrak: Just to pause on that—an eye injury. Today that seems gruesome, but in the 1840s or 1850s, just thinking of what eye surgery was probably like back then... there were probably not the same types of anesthesia or processes. It seems like a really horrific, traumatic, formational experience.Stephanie Forshee: I agree. That is something I’ve been researching the past few years—what that would have been like, that time versus today. You’re right, it is not something that anyone would want to endure. But it did shape her as a person and was something she had to deal with.So, when she was 19, she underwent this surgery. This was early in the summer of 1860. As she was recovering, the doctor recommended she should consider a change in career. She had been a school teacher at that point, and he was saying that grading papers by candlelight things like that was probably not too great for her eye. That’s how the story goes. In hindsight, the doctor was probably suggesting, “You’re 19, you need to be married and go about your life.”But she did take it into consideration to change her career. She had heard of her distant cousin Rowland Macy. They had both grown up, he was 20 years her senior, but they both were from the island of Nantucket. He was her distant cousin, even though they never met. She decided to apply there. The meeting went very well; she had an interview with him, she explained that she was skilled, so he hired her as a cash clerk to start, and she made her way up from there.The Humble Beginnings of R.H. Macy & Co.Andrew Mitrak: It’s funny that it all started because a doctor allegedly recommended this change in career. It’s funny tho, reading some of these old books, old biographies, how often doctors would recommend things like, “Go move out West” or “Go live near a lake.” Doctors don’t really prescribe that kind of treatment anymore. A lot of changes in medicine and doctors’ recommendations. Anyway, this may have been the starting point for her meeting with R.H. Macy. The meeting went well. Can you share a little more about R.H. Macy and about Macy, the department store itself in 1860? Obviously, I am guessing, it wasn’t the major brand that it later became. Where was it in its journey? Just started? Was a little more established? Where was it in its establishment?Stephanie Forshee: At that time, the New York store was only two years old. Rowland had other ventures—he really had a lot riding on this because he’d opened stores in Massachusetts as well as California, and Wisconsin, and those just didn’t pan out the way he had hoped. He was not the “Merchant Prince” at that time as he came to be known later.At that time, the store was on its way. Sales were okay; they were definitely growing and surviving. But when she came to the store, it was not a full-fledged department store by any means. It was a dry goods store. The advertising, the signs out front just said cloaks, millinery, silks, and gloves. They had select items, but it was just a small store. Over the years, it would expand greatly.Andrew Mitrak: Can you paint a picture of that time for women in business? Was it common for somebody like Margaret, a young woman, she was 19 or 20 at this time, to get a job at a store, or was this unusual just to work in business at all as a young woman?Stephanie Forshee: In New York, it would be pretty uncommon even just to have this job, much less what she would go on to accomplish. There were definitely women employed by the store, but it wasn’t that common at that point.What is interesting is that she was from Nantucket, so she came in with all the confidence in the world. Nantucket, if you ever visit there or even read about it, they are very proud of its heritage and history. They were known as the whaling capital of the world at that point. Most of the men, the majority of them, were out on whaling voyages for months or years at a time. The women, just like in many times when men went to war, women had to run things. It was like that early on. In Nantucket, they were having to run the post office, the schools, and pretty much the whole town while men were away on these whaling voyages.She would have grown up seeing that in her community. Roland, having that same perspective, knew that women were just as capable. So they were, in a way, in their own bubble thinking that women could do things and run businesses too. But to your point, that was not very common generally at that point. And that would be the 1860s, right before the war. So in the coming years, it would become more common.The Origin of the Macy’s Red Star LogoAndrew Mitrak: That’s really interesting. This connection to Nantucket, and you mentioned whaling, and this actually leads to one of the most iconic contributions that Margaret Getchell has was the Macy’s logo, which was a tattoo that R.H. Macy had, that was a whaling tattoo. Can you tell the story of the logo and how Margaret Getchell helped identify and create that?Stephanie Forshee: She started out as the numbers person, accounting and bookkeeping, and gradually became a trusted confidant of Rowland Macy. She was constantly coming up with ideas. She would say that she liked to “put a bug in his ear” for different things.One of her greatest contributions was the logo. She knew that he had a red star tattoo on his wrist. At the time, I think that he was actually kind of embarrassed by this tattoo or his past as a whaler; it wasn’t something that he was particularly proud of as he was trying to make a name for himself as a merchant in New York at that point. But she saw that and thought it would be a good idea to be an emblem or insignia for the store.She decided to put the red star logo on their letterhead and on each individual price tag and for items within the store, which we will get back to that as well. Macy was one of the first to have fixed prices. Before that, it was all negotiating and haggling on prices. The fact that they had price tags on their individual items was innovative at that time. The other thing is that they put the red star on columns outside the store, which still stand today. The original Macy’s is actually at 14th Street and 6th Avenue; that predates the famous Herald Square location.Andrew Mitrak: I use the word “logo” to describe this red star, but that is kind of an anachronism. It wouldn’t have been called a logo at the time. Logo is kind of a more common thing later. The red star emblem itself has been such an iconic part of Macy’s. Was that somewhat unusual for a company to adopt an emblem like that, or was that common or can you contextualize that decision for them?Stephanie Forshee: I wouldn’t say that it was common. It would have been somewhat unusual, but not restore our business, a logo like this, but it did exist for sure. One of Macy’s earlier ventures, he was in Haverhill, Massachusetts and his logo used a rooster as an emblem at that time in some of the newspaper advertisements. So it wasn’t unheard of by any means, but at that time, they didn’t think it was a “must-have” for a business.Andrew Mitrak: That’s right. If I were to think of them at the time, I haven’t studied this deeply, a lot of them tend to be much more ornate and much more detailed than have the names as part of it and it’s hard to remember. The red star logo or just a star itself, is such an instantly recognizable, simple type of emblem. You can see that Macy sort of wants to use it in different ways, where they’d like to use typography, and it kind of gave them some more flexibility on how to use it. So it seems like a really good decision as a logo and you couldn’t just do a star today cause it seems like so widely overuse. Also, it’s also claimed by Macy as a thing. It seems like it was a really good, prescient thing for Margaret Getchell to notice, latch onto, and embrace as well.Stephanie Forshee: Yes, at the time I think it was just a great idea that she had. To your point, the simplicity of it is what really stuck with people. As you know, it is still the logo today, so it must have been a success.Innovative Marketing Stunts and Store LayoutsAndrew Mitrak: Let’s talk about some of her other contributions to Macy’s, specifically around things like placement and displays. Do you have any favorite examples of her other contributions—clever tactics to help increase sales and attract customers?Stephanie Forshee: She loved thinking different innovations for the store. She was constantly coming up with ideas for different departments. It was her idea to introduce the toy department and the book department; at that time, it would be a bigger draw than today. Unfortunately, Macy’s doesn’t have a ton of books in its stores today.She always came up with new ideas for new merchandise. One of my favorite examples of Margaret’s innovations is that she loved a good publicity stunt. One of the things she did was bring cats into the store. She dressed them up in baby doll clothes and put them in little carriages, or prams as they were called back then. She put those in the window display. I’m sure passersby were wondering, “What on earth is going on?”They were so intrigued and enchanted by these cats. So many people came into the store that day, and they had record sales selling all these baby doll clothes, different accessories, and the dolls themselves of course. That was just one example of creative, out-of-the-box thinking.Andrew Mitrak: Just to comment on this cat thing, and it’s so funny when I read this. I’ve been to a few conferences where everybody has booths in these conferences, and it’s almost like a window display, and you want people to come to your booth. A thing that sometimes people will do is bring puppies. “Oh, we got puppies! Come play with puppies and hear about our company software, B2B SaaS product.” People will be like, “Oh my gosh, that’s so innovative. They got puppies there.” This is kind of just a riff on something that Margaret Getchell did 150-plus years ago. So it’s funny that sometimes, like these tactics that they can be from the past, but still see kernels of that almost today as well.Stephanie Forshee: Yes, I can only imagine this within the children’s department at that time, just hanging out with all the cats.Andrew Mitrak: In addition to cats, any other favorites of yours?Stephanie Forshee: Macy’s had a lot of ideas, and a lot of the New York department stores were following the lead of European department stores. Soda fountains were becoming all the rage. It would have been the late 1860s and the early 1870s. When they were becoming popular, Margaret knew that they needed a soda fountain at Macy’s. Her idea was to place it towards the back of the store so that customers would be eyeing other items as they were walking back and forth to the soda fountain. That is something that we know most stores do today, but at the time, it was a grand idea.Andrew Mitrak: Totally. Today, I think of grocery stores—essential products like milk are almost always at the back of the store. It’s the thing that expires, the thing you often need a refill of. Just thinking of, “What is the thing that will attract people in? How do I make them exposed to more of the products and merchandise within our store to increase sales?” Super clever.The ‘Customer-Obsessed’ PhilosophyAndrew Mitrak: She had this motto: “Be everywhere, do everything, and never forget to astonish the customer.” Do you have a sense of how she actually used that motto? Was it something she wrote down? Was it something she said to her employees? How did that motto manifest?Stephanie Forshee: It’s not exactly clear. It must have come up because many employees said that she had embraced this motto. I would imagine she used it in training, perhaps with the cash girls. I have mixed feelings about the motto. “Be everywhere, do everything”—it is true, if you want to astonish the customer, you do have to do those things. But I think she, as well as Rowland Macy and leadership within the store, were maybe workaholics for sure. From everything I read about them.Andrew Mitrak: To me, it has echoes of Amazon. I am in Seattle, and so Amazon is a big company– It’s a big company everywhere, but it’s one that’s so close to my home– and it sounds a lot like Jeff Bezos. He has this idea of customer obsession, and that’s in their culture. And of course, they are the everything store and so “Be everywhere, do everything, never forget to astonish the customer” seems like it echoes Amazon. And at the time, Macy’s was selling books and all sorts of goods, they were being an everything-type of store.Stephanie Forshee: That’s a great parallel. They definitely took the customer obsession very seriously.Establishing the Holiday Shopping SeasonAndrew Mitrak: I want to ask you about one more famous contribution she had: convincing Macy’s to have the store open on Christmas Eve. I think this was in 1868. Now Macy’s is so associated with the Christmas holiday and Thanksgiving through Christmas season. Can you just share a bit about this decision and the impact that had?Stephanie Forshee: At that time, she was wanting the store to stay open late. It started out on Christmas Eve and would later turn into the entire month of December, staying open late because, as we know, there are lots of last-minute shoppers. She knew that was an opportunity for the store to make more money if they would stay open late. They did, and they had record sales that day. It’s one of those things that today, in hindsight, some people who are working on Christmas Eve and throughout the Thanksgiving holiday might not love Margaret’s grand idea.Andrew Mitrak: There is a trade-off on your priority stack: do you prioritize the customer or your employees? It seems like that trade-off was for the customer at the expense of some of the employees who have to work longer hours as a result.Leadership Changes and Unfair CompensationAndrew Mitrak: Getchell is a pioneer in the business world and she is a pioneer of reaching the glass ceiling at Macy’s. She was promoted to Superintendent, she became second-in-command to Macy himself. But as Macy’s the brand grows, she becomes overlooked. Her time there was super impactful but relatively short, and was not a multi-decade career there. Why do you think it was that she became overlooked?Stephanie Forshee: There are a few things. We haven’t talked about her husband yet, but she did meet her husband, Abiel LaForge, at Macy’s. She was introduced to him through Rowland. He had been a soldier during the Civil War and met Rowland Macy’s son, helping him out. He became a close, trusted person of the Macy’s family. Abiel eventually comes to work for Macy’s years after Margaret started.He was very dedicated to the company, for sure, but he was not coming up with all these innovations and he was not giving the same type of contribution as Margaret. In 1872, Rowland Macy is thinking about future partners of the firm—what’s going to happen if he retires or passes away. He is looking at successors. For some reason, Margaret is completely overlooked in this equation. As much as she was given opportunities before and for the year prior, at this point, Rowland, he did choose Abiel LaForge, as well as one of Macy’s nephews, Robert Valentine. There is no exact reason given. I think simply because she was a woman. At that time, he gave her a lot of opportunities, but it seemed like there was a limit there.Andrew Mitrak: As an aside, she does marry Abiel LaForge. I’ve referred to her as Margaret Getchell, but her full name is Margaret Getchell LaForge, and it does seem like they’re kind of almost both used. I know your book is Margaret Getchell LaForge, but the New York Times’ piece just calls her Margaret Getchell. I wasn’t quite sure which name to use. Do I use LaForge or not?Stephanie Forshee: Yes, so they were married in 1869 and she did take his name. But I think that some people who would just say Margaret Getchell is because most of her contributions really to the store were before her married life. So it was out of respect for that.Andrew Mitrak: I’m going to quote from your New York Times article: “In fact, after her husband became a partner, her compensation was eliminated and she gradually stepped away from her work to care for her children. Having a husband who owned a stake in the business was considered sufficient, as he would support the family with his earnings.” It sounds like her compensation was eliminated before her job was eliminated. To all these points of Macy being tough on employees, that seems really unfair.Stephanie Forshee: When you think about it today, it is unbelievable. You can’t really think of someone not being paid for their job. In a lot of ways, Margaret was ahead of her time. She not only worked when she was married, but she worked through her pregnancies as well. That was really unheard of. She would have already had two children by 1872. When her husband was named a partner, but at that time, that was when her compensation was taken away. With Abiel being a partner in the store, everything was going to be the same pot of money, if you will.Andrew Mitrak: It sounds like that period from 1860 through the end of that decade, she really was full-time Superintendent, rising the ranks, having astonishing contributions. Then from 1870 onwards, it becomes a little less formal.A Legacy Cut ShortAndrew Mitrak: You mentioned that R.H. Macy had been doing succession planning in the 1870s. It is important that he was, because there are a series of tragic endings in a short period of time. R.H. Macy died in 1877, age 54. Then Abiel LaForge dies a year after that in 1878. And then sadly, Margaret Getchell dies in 1880 at 38 years old. Is there anything you’d want to share about her final years?Stephanie Forshee: It is really sad to think, she accomplished so much in the business world and started her own family. For anyone to pass away at 38 is devastating. The fact that she lost the two men she was closest to in her life—her employer, that she grew so close to and her husband—those few final years were extremely hard for her. She had some health issues, things like nerves pain and chronic pain. She ultimately passed away from a combination of heart failure and ovarian issues. As far as I know, it would have been ovarian cancer, though at that time they didn’t exactly know how to treat that. Those final years were definitely marked by tragedy.Andrew Mitrak: It also seems like, certainly tragic on a personal level, but for Macy’s the company, it leaves a leadership vacuum. The steward of the brand and marketing innovation is gone. The founder is gone. Abiel, considered one of the potential successors, is also gone. Who takes the reins at Macy’s, and do any of Getchell’s innovations survive this transition?Stephanie Forshee: A few people stepped in temporarily because it was a very quick succession with Macy and Abiel LaForge dying the next year, and even Valentine. When Macy passed away, Margaret’s husband Abiel and Robert Valentine had intended to and filed paperwork to rename the store “LaForge & Valentine.” So in some way, it is crazy to think of now because of all the tragedies that happened, because they passed away, the store was never renamed. It’s crazy to think that it would have been a completely different name.A few people stepped in temporarily over those next few years. Over the next decade, it was a shorter tenure. It was the Straus family who would eventually become in charge of the store for decades and innovate even further in the coming years throughout the early 1900s.In terms of her innovations and contributions to the store, surviving her legacy, I think in many ways they did. When Macy hired Margaret, because she had been so successful, that encouraged him to hire many more women and promote them to leadership roles. Even though, they didn’t quite get to the level that Margaret did—there were managers and head buyers—but the next Superintendent or two were not female. But there were some positives to come from that.The Enduring Spirit of InnovationAndrew Mitrak: It wasn’t until decades later in 1924 that Macy’s launched the Thanksgiving Day Parade, which is probably its most famous marketing event. Getchell obviously wasn’t alive to see it, but do you see any of her fingerprints on this event?Stephanie Forshee: In some ways, yes. There is nothing you can directly link to say she had the idea for a parade, but just the fact that she was constantly innovating and encouraging others to share their ideas. I think she would be in favor of it and definitely proud that Macy’s came up with this idea and was able to pull it off in a way they have. To see it today, I’m sure she would be very pleased.Lessons from Margaret Getchell’s LifeAndrew Mitrak: Wrapping up, as you reflect on Margaret Getchell’s life and work and you spent a lot of time on her biography, are there any top lessons that you’ve taken away? Are there ways you’ve applied her “astonish the customer” philosophy, or other ways you take her lesson to your own professional life as a marketer and PR professional?Stephanie Forshee: Absolutely. I think of that all the time. I feel inspired by her. I have been writing for the sake of other people knowing her name and learning from her, but I feel very lucky to have been the person to follow her journey and research her over the past few years. The “astonish the customer” philosophy—I am constantly thinking of that.I also put myself in her shoes a lot. I don’t know this for sure because it’s not something she wrote in her diary. I think she must have faced some forms of imposter syndrome or having doubts, being one of the only female leaders. I put myself in her shoes a lot thinking, “Okay, if she can do it, I can do it.” Those are the things that encourage and inspire me.Andrew Mitrak: That’s a really inspiring lesson to wrap up on. Stephanie Forshee, thanks so much for joining. I’ll be sure to post links to your piece in The New York Times as well as your book Hidden Gems in the blog post. Stephanie, I’ve really enjoyed the conversation. Thanks so much for joining me and sharing about the astonishing career of Margaret Getchell LaForge.Stephanie Forshee: Thank you so much. Thanks for having me, Andrew. It was great.*Footnote: In the intro, I mention balloons floating down Broadway. While the parade famously followed Broadway for decades, the route changed in 2009. Today, the balloons float down 6th Avenue, though they still end at Macy’s flagship store on Broadway & 34th. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
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  • Jim Spaeth: An Insider’s History of Marketing Mix Modeling
    A History of Marketing / Episode 39A recurring theme on A History of Marketing is the tension between marketing as an art and marketing as a science.Lately, we’ve explored the former. David Gluckman shared how he invented Baileys Irish Cream in 1973 based on gut instinct and “the benefit of ignorance.” Scott Reames revealed how the team that birthed the Nike brand in 1971 had no formal training as marketers.This week, the pendulum swings in the other direction in my excellent conversation with Jim Spaeth, Ph.D.Jim’s career places him at the center of the industry’s shift toward rigorous measurement. From his early days at Young & Rubicam and General Foods, Jim pioneered Marketing Mix Modeling (MMM), a discipline designed to measure marketing’s ROI in financial terms and further optimize investments in marketing.* The Origins of MMM: How General Foods used early models to uncover granular insights to bridge the gap between marketing and finance* Connecting Ads to Sales: How the ambitious ScanAmerica venture attempted to measure actual SKU-level supermarket purchases to locally-aired TV ads* Standardizing Internet Advertising: His time leading the Advertising Research Foundation (ARF) during the dot-com boom, where he fought to standardize the chaotic new language of clicks and views* The Future of Measurement: How deep learning and AI are addressing the lingering challenges of causality and creative assessmentIf the last few episodes demonstrated the power of creative intuition, this conversation explores the discipline of proving that intuition actually works.Listen to the podcast: Spotify / Apple PodcastsThank you to Xiaoying Feng, a Marketing Ph.D. Candidate at Syracuse, who volunteers to review and edit transcripts for accuracy and clarity.Defining Marketing Mix ModelingAndrew Mitrak: Jim Spaeth, welcome to A History of Marketing.Jim Spaeth: Thank you.Andrew Mitrak: I’m really excited to speak with you. Prior guests, Shelly Zalis and Bill Moult, both highly recommended speaking with you, especially on the history of marketing mix modeling, which is something that has been brought up on this show before, but we haven’t fully delved into.So, I thought I’d ask you about some of that. And first, I thought maybe we could define that for listeners. So if you were at a dinner party or having a glass of wine with somebody and you had to explain marketing mix modeling to them—to somebody who hadn’t heard of it before—how would you overall describe that to them?Jim Spaeth: I would describe it in a few ways. The simplest is just from what its goal is. It attempts to decompose the contribution to sales of all of the marketing and non-marketing factors that drive sales. And at its simplest, in some ways, it’s to prove that marketing is accomplishing something. To quantify what it’s accomplishing and to measure the return on investment. So, it’s a way for marketing and finance people to talk to each other. That’s kind of one part of it.But also, by understanding all of the factors that are driving sales, you can begin to think about how to optimally allocate budgets, which things are working, which things need help, how external factors that you don’t control impact your sales. So good examples would be things like the weather, the economy, competitive product pricing. You don’t control everything, but you need to react to certain things. So, in a way, conceptually, it’s the engine for an ideal dashboard for a marketer.Andrew Mitrak: And do you think of it more as a backward-looking dashboard analyzing results or more of a forward-looking model of where to apply things? Or is it a little bit of both?Jim Spaeth: It’s a little bit of both. It’s accused of being backward-looking because the problem is, typically marketing mix models need two or three years’ worth of data. So, what they learn or figure—learn tends to make it sound like AI, and these days there is AI in marketing mix, but not always, and certainly there hasn’t been—but what you can infer, I guess is a better way of saying it, from marketing mix is what the impact of those historical activities have been.So if you ran the same television campaign for the last 10 years, that’s what you’re going to understand about, that’s what your model is going to tell you about. It’s not going to tell you about this great new campaign and what it might do. Now, that said, you can use marketing mix to, as I said, optimize your spend going forward based on what historical responses have been. You can use it to forecast, and forecasting can be at a broad level or it could be at a very granular level to help, you know, production, inventory, things of that sort.But you always have to recognize that it’s based on history. So that’s why it has that backward-looking reputation. However, I would say any technique is backward-looking because any technique based on data is based on something from the past. I mean, it might be yesterday or last week or last month, but it’s something from the past. It’s just a question of how far back in the past you have to go.The Origins of MMM: From Marketing as Art to ScienceAndrew Mitrak: You mentioned earlier in your career, you were at General Foods in-house. And by the way, General Foods is probably better known today for the Post cereal brands, is that right?Jim Spaeth: Oh, it was the home of Post, Maxwell House, Jell-O, Tang that went to the moon, or at least in space, I can’t remember anymore. So, it was merged with Kraft, then Kraft has been merged with Heinz...Andrew Mitrak: And so really mass CPG products. Were you involved in marketing mix modeling there?Jim Spaeth: So that was kind of the beginning. GF was the beginning of marketing mix modeling, quite frankly. I would say the prologue is, before that, I worked for nine years at Young & Rubicam when it was a full-service ad agency. And those were the days of the 15% commission, so the agency had a lot of money to bestow many, many benefits and services upon their clients, and they weren’t always squabbling over every nickel and dime.So we had a big, big research department and we did a lot of different stuff. But these guys were thinking about how to use science in marketing. Marketing was an art. I mean, it was just all an art. It was judgment, it was creativity, it was... and it worked. You know, we just couldn’t really prove it, we couldn’t measure it, but you could see it work when well-marketed brands beat the crap out of the more commodity brands, and they could charge more money and get away with it because they seemed to be higher value. So we knew marketing worked, but it hadn’t really been measured and it hadn’t really been submitted to the science of optimization and all those kinds of things. So that work was beginning at Y&R.So, those are kind of the prologue days, really trying to bring science methods, econometrics, and such into the marketing world.An Early Insight: Connecting Stove Top Stuffing Sales with Potato PricesAndrew Mitrak: You worked at Y&R before General Foods. Did having this in-house and agency perspective on marketing mix modeling shape your views in any way? Did you notice sort of gaps or things that didn’t work? Because not everybody has the luxury of working at both.Jim Spaeth: Yeah, that’s a really good, really, really good point. Absolutely did. My knowledge from Y&R of how media is bought and sold made a big difference, because why do you need to learn something when you can’t act on it, right? So, you buy your television largely in the upfront market. While you have some flexibility, you’re pretty much, let’s say, 80% locked in. So, we’re not going to be able to change it anytime soon, whereas radio was pretty nimble, and if you learned something about radio, you could act on it over the weekend and make a change.So things like that, knowing how media really worked was very, very helpful. And then the view from inside the business, inside the food business, was amazing because you really got to see how it worked—both organizationally, how it worked, what the decisions were, when they got made, what the decision-making process was like.I came in initially into the market research department where we began to build an actual, honest-to-God marketing mix modeling practice, which meant, to boil it down simplistically, using econometrics. So using regression modeling and all the sales and marketing data you could lay your hands on. And in those early days, we built models for all of the GF brands.And they were very simplistic. They would just say, “Here’s my sales. To what degree is...” Now remember, we’re talking in the ‘80s now, right? “To what degree does television drive sales versus radio versus outdoor versus magazines? What’s the impact of pricing? What about my in-store promotions? What about my coupons?” So what I just named, seven or eight factors, maybe there would be 10 or 12 factors in a model. My personal big breakthrough was when I discovered that Stove Top stuffing did well when the price of potatoes was high. So, you know, starch on your plate could be Stove Top, could be potatoes. When potatoes were expensive, you go to Stove Top. When potatoes are cheap, Stove Top didn’t do as well. So, that was pretty sophisticated. That was a cross-elasticity in the model. So they were really, really simplistic.Who Actually Used Marketing Research?Andrew Mitrak: When you built those early models at General Foods, who do you present that to, and who makes use of that information? Is it to product groups as far as, “Okay, we’re going to change our products”? Is it to advertising agencies who then use it to inform their campaigns? How does that research actually get put into practice?Jim Spaeth: That’s a very, very good question because that development of that kind of organizational process has been equally, if not more, important than the development of data and statistical technique. In those days, we worked collaboratively. So every division had its own little research group and a head of research. And so we would collaborate with them because we wanted to be somewhat cohesive and consistent in our story. And then ultimately, we would report to the marketing director or the division president.Andrew Mitrak: The marketing director or division president, they are looking at all this information and then they’re using it to just inform their overall marketing strategies.Jim Spaeth: Right. Setting budgets, allocating budgets. That was the primary application, deciding what’s working, what’s not working. Back in those days, we weren’t able to break out creative, so we couldn’t really try to understand whether this particular campaign was working. That has only come very recently. That was a desire from the beginning, but not something we could accomplish.Andrew Mitrak: Did it feel like General Foods was early to this kind of practice? That this was sort of the frontier of using research and analytics?Jim Spaeth: My impression is back then, GF was clearly the first. And it disseminated from there. So one of the reasons mix modeling in its early phase was pretty much just a CPG practice is because people moved from GF to Pepsi, to Kraft, to Clorox, to wherever, and brought the practice with them.The ScanAmerica Project: “Ahead of its Time”Andrew Mitrak: After General Foods, at some point, you get involved with ScanAmerica and Arbitron. Can you tell me this story?Jim Spaeth: That was an early attempt at measuring both product purchasing and television viewing among the same households so that you could look at not the audiences among women, but the audience among Maxwell House purchasers, or frequent Maxwell House purchasers. That was ScanAmerica. That was actually a joint venture between Burke Marketing Services and Arbitron. So Arbitron did the TV part and Burke did the sales part, and they also had expertise in test marketing.So that was very, very exciting, and it didn’t make it. The first of a number of startups that I’ve been involved in that have not been successful but have been exciting and groundbreaking.Andrew Mitrak: It seems like a really ambitious project because this would have been in the ‘80s?Jim Spaeth: Second half of the ‘80s.Andrew Mitrak: The idea really was the ads you’re running, really connecting those to actual purchases and having a set of SKUs that are at a grocery market in an area that saw those ads, and really connecting end-to-end, which seems like a complex, ambitious challenge to solve. It still seems challenging today, especially 40, 50 years ago or so, it sounds like a really tough one.Jim Spaeth: Yeah, it was a little bit ahead of its time.Andrew Mitrak: I’ve worked for a handful of startups and it seems like there’s an interesting thing as a marketer to join a product as part of the vision, right? Where the product is not quite reality yet, but if you get enough people on board and it seems like it could cross the chasm and become real, there’s a big opportunity. So it seems like it’s important to just swing for the fences and try things out, even if they don’t work.Jim Spaeth: Absolutely. That’s been the story of my career. It’s like, when you see it, go for it. And we really, really believed in it. And we had clients who really, really believed in it. It was just too hard to do, too hard, too expensive to do at that time. And the other thing is you run into those organizational issues. That’s I think where I first learned, it may make complete sense, total sense, it might have demonstrable economic benefit, but before you really push too hard, make sure you understand what the industry or organizational constraints might be.Standardizing a New Frontier: The Internet and the ARFAndrew Mitrak: You mentioned the Advertising Research Foundation (ARF), and you became president of the ARF in the mid-’90s. What is the ARF for somebody who hasn’t heard of that before?Jim Spaeth: Sure. The Advertising Research Foundation is, I want to say the oldest... Now, I don’t know how far back the AMA goes, but the oldest or one of the oldest marketing-centric trade organizations in the United States. It was founded by the ANA (the Association of National Advertisers) and the 4A’s (the American Association of Advertising Agencies) because they needed something, they needed to stimulate better research.Andrew Mitrak: Yeah, and I think the AMA was the ‘30s or ‘40s. I’d have to look it up.Jim Spaeth: So I think the ARF actually predates it. And it was focused on advertising because it was the child of the advertisers and the agencies. So obviously marketing is a broader topic, but that’s what their focal point was. And again, many, many years later, ARF was still respected around the world as a preeminent authority with respect to advertising and media in particular, maybe not marketing more broadly or market research more broadly, because you had other organizations in Europe and in Asia and elsewhere. But it’s an organization with global stature that’s been around for a long time and does a lot of leadership. We’re doing some great work right now on this topic of marketing mix modeling.Andrew Mitrak: That’s awesome. By the way, it looks like ARF, based on Wikipedia at least, was founded in 1936, and AMA was founded in 1937. So it predates the AMA. [laughs]Jim Spaeth: Slightly earlier, all right.Andrew Mitrak: Why the jump to ARF after having a career at startups, at agencies, at large CPG companies?Jim Spaeth: The ARF was very important to me personally. The reason is, back when I was at General Foods, the head of research at GF was involved, I think he might have been on the board of ARF. They needed someone with some media expertise in a volunteer role. This was just early on. And he kind of volunteered—he went to my boss and he said, “I want to volunteer Jim for this job.” Which was great because I was a little bit bored, frankly.And I had very little exposure to the outside world. I’d been in my two companies I worked at and was fine and comfortable, but didn’t really get out a lot. So this kind of put me out in the outside world. And I will never forget being in a meeting with five or six legends of the day who were on this committee. They just didn’t want to chair it. And somehow, not because of me, but because of my company, I had the stature to chair it. So they gave it to me. And the kid walks in, not knowing what he was getting himself into, and suddenly I’m talking to these people who I’ve read their papers, I’ve read their articles, I know all about them. It was like... I was awestruck.And I will say, just without making this too much about me, it enabled me to find my footing. And I think that’s what ARF does for a lot of people in the industry. It really brings them on board, broadens their perspective. And a lot of my ambitions where maybe I had something that was innovative I really wanted to push, but the company I worked at wasn’t really quite ready for it, I could go... I had another gig. I could do whatever ARF volunteer work I was doing and kind of try to push the industry in a certain direction. My whole career has been about innovation. What better place to try to drive innovation? So that’s what brought me there.Andrew Mitrak: As far as driving innovation when you’re there, this is the late ‘90s through early 2000s that you’re president, and this is the dot-com bubble era. The rise of the internet and the rise of early digital advertising as well. As I was researching and prepping for this interview, I came across an article that was published in 2002, and I’m going to read you a quote. The article is all about how advertising measurement models are changing as the internet is developing. And I’m going to quote: “We’ve invented this jargon: clicks and ad views and page views,” says Jim Spaeth, president of the ARF. “We need to direct people to standard media terminology and get people to talk the same language.”I’m still talking about ad views... yeah, ad views and page views and clicks. Those are still used today. So I was just thinking of this, putting myself in this era. It’s like, okay, the internet’s developing, it’s brand new for everybody. There’s a lot of uncertainty around it. It kind of sounds somewhat familiar with AI today as well. But there’s new standards that need to happen, people are measuring different things, there’s uncertainty. And then you, as the head of ARF, need to help standardize, need to kind of bring people together. Can you just paint a picture of that era and some of the challenges and opportunities there, and who you needed to persuade to adopt the same language around things?Jim Spaeth: The internet was just happening. You had a lot of really smart people coming on the scene with absolutely no background in advertising or marketing, for that matter. And they were reinventing the world. Now, that’s great, they’re reinventing the world, but as you will appreciate as a historian, it pays to understand where this world came from and what the framework is you’re moving into. Particularly when you think about it from an ad spend perspective, digital was new. It was like novelty money, it was experimental money, it was some extra cash here and there. The bulk of the spend was still... we were spending more in outdoor advertising than in digital, right?But suddenly digital is reinventing everything. So we don’t have impressions, we have clicks, and we don’t have reach, we have uniques, and we don’t... It’s like, can you just stop confusing people? Do you want to be part of the scene, or do you want to have somebody have to have a special training course just to understand your vocabulary? And then by the way, what happens when you put your clicks into a media plan? Do we add them to the impressions or do we have to create clicks for television? It was like... it was kind of stupid, frankly. And it continues.Why Programmatic Advertising was Digital Marketing’s BreakthroughAndrew Mitrak: It continues. It is shocking how little digital was for as far as a percentage of marketing spend for as long as it was, but it grew at a rapid rate. Were there any milestones at standardization that you saw as big wins in this period?Jim Spaeth: I think the biggest breakthrough was programmatic advertising. Digital always had a problem because the audiences to any one thing you bought were so tiny that instead of going out and buying a 12-rated television program, now I got 12% of the country watching me right now. That’s it. Let’s put another one of these in. Let’s put 12 of these in. Now I’ve got a plan. You could do it on the back of a napkin. You could do it on an Excel spreadsheet for sure.But digital was tiny, and you needed to buy thousands and thousands of units to add up to anything. So it was manually prohibitive. Labor was prohibitive. It was not efficient for agencies to do at all until you could do it in an automated fashion, which was supported by the fact that digital is data-driven, right? So there’s metadata and so forth associated with it.So programmatic was possible for digital and absolutely necessary. And it took a while to get it to work right. And I’m not sure it still works right, but... and then we had some experiments trying to do television programmatically, and the early ones were kind of nuts because you didn’t... whatever, it’s a long subject, but they ignored some basic things that we understood from the beginning of time. Like, people pay a lot of attention to ads on primetime, so that’s important. They pay a lot less attention to ads in daytime because they’re busy, if they’re home, they’re busy around the house doing whatever they’re doing. So there’s different value propositions, and that was often not seen in programmatic. Now, attention has become an important variable, which I think is great, and that really differentiates the quality of impressions in a big way.So, automation, right? Sorry, long-winded answer. Automation was necessary and possible for digital. It made it more affordable, and then the other thing that happens is digital has more or less an infinite supply, right? So, as an economist, I would say when your supply is infinite, your price gets really low. So that’s why digital impressions are so inexpensive. “Oh, you want some more? We’ll make you some more.” It’s a little oversimplified, I will say, but that dynamic is at work. So they became cheaper impressions. It was good for advertisers because they were cheap. It was good for agencies because it was labor... it was not labor-intensive, it was efficient and profitable for the agencies. And now, of course, we’ve got television and out-of-home and other media, radio, going through that same kind of automation process now.Recent Innovations in Marketing Mix Modeling and the Impact of AIAndrew Mitrak: Kind of reflecting on this conversation in your career and the development of marketing mix modeling, are there any sort of remaining challenges with it that haven’t fully been solved yet? Or are there still things you would have expected to be more buttoned up and dialed in and more of a solved problem by now that still haven’t been resolved? Are there lingering things where you think, “Wow, more innovation needs to happen in this space that will \pave the way for it in the future”?Jim Spaeth: There’s always that. But you know, I have to say, marketing mix is, in some cases, conducted by bigger companies as a business, and like a lot of businesses, they’re really trying to drive costs down and profits up. Not to say they don’t do a good job, I’m not saying that at all, but it changes the orientation a little bit.And then there are a lot of modeling companies that are driven by entrepreneurs who are really motivated to do a great job. It’s one of the things I’ve enjoyed about being involved in this field is a lot of very highly motivated—and not just about making money, I mean, that’s obviously a good thing—but highly motivated to just advance the state of the art and do a great job.And just off the top of my head, I’ll call out Nancy Smith at Analytic Partners, who has created one of the biggest independent marketing mix companies in the world. I would call out Ross Link, who developed his company and then actually ran Nielsen’s company for a while and is back doing his own thing in his own way. And Steve Cohen at in4mation insights and his partner, Mark, who just keep pushing the envelope. I mean, these people just want to do great work, and it’s so refreshing to see. There’s real pride of their services and their products.Andrew Mitrak: That’s cool. It’s great that it continues to develop and continues to get better, and it’s an area where entrepreneurs continue to make an improvement for folks. Do you have any other kind of final reflections or takeaways on this conversation?Jim Spaeth: You know what is interesting? Kind of just go back to your previous question more directly. The practice, under the stewardship of those people I’ve mentioned and others, has continued to push in the directions I always, and my partner Alice, have always seen as where the benefits are—getting faster, getting more granular, more inclusive. And that just keeps happening, which is great.A big breakthrough was a few years ago, we finally started seeing creative being assessed through these same tools, which was really, really good. So that’s finally happening on a bigger scale, I think, than ever before. And then, the frontier right now is AI, which offers to make certain levels of analysis more possible, affordable than would be if it was all manual.But the other thing with AI and deep learning in particular is, mix modeling was always a bit of an art and a science. The science was the data and the statistics and the models, but the modeler had to look at the results and go, “That’s not possible. Everyone knows when prices go up, sales go down. So what’s wrong with the model?” Right? That was the art part. You had to have a common sense sort of understanding of how these things work because the model can come up with some cockamamie solutions, and you have to really make sure you’re looking at something that really makes sense from every angle.And deep learning—I have not practiced it, but as I’ve read about it and understood it—has a better grasp of causality and can give you more assurance that what you’re looking at is actual causality and not coincidence. I think that’s another important breakthrough. And I hope we see that spread quickly through the industry.Andrew Mitrak: Jim, thanks so much for your time. I really enjoyed the conversation.Jim Spaeth: Great talking to you, Andrew. Thank you so much. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
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  • David Gluckman: Why the Inventor of Baileys Thinks Market Research is Bullsh*t
    A History of Marketing / Episode 38“Why should all alcoholic drinks taste punishing and challenging? Why shouldn’t they taste pleasant?”My guest, David Gluckman, asked himself this question in 1973. It led him to develop what became Baileys Irish Cream, a liqueur that’s now sold ~2.5 billion bottles globally.In our conversation, David shares the remarkably haphazard origin story of Baileys along with the contrarian lessons from his career creating alcoholic drink brands like Tanqueray No. Ten, Cîroc, and Smirnoff Black.Listen to the podcast: Spotify / Apple PodcastsWe dive into the stories and insights from David’s book, “That sh*t will never sell!” David’s candid about his disdain for modern marketing practices, his frustration with Baileys’ brand extensions, and why he believes great ideas never come from middle management.I also ask David about how brands interact with unexpected internet memes, the ethics of marketing alcohol, and if cavalier marketers like him can succeed in an era when brands have become bureaucratized. Here is my spirited conversation with David Gluckman. Thank you to Xiaoying Feng, a Marketing Ph.D. Candidate at Syracuse, who volunteers to review and edit transcripts for accuracy and clarity.How a Tax Break Inspired Baileys Irish CreamAndrew Mitrak: David Gluckman, welcome to A History of Marketing.David Gluckman: Thank you very much. Nice to be a part of it.Andrew Mitrak: I loved reading your book, That Sh*t Will Never Sell, which is a really fun read. I’m excited to speak about your full career and all of the amazing products and beverages you’ve had a chance to work with. But I thought I’d start off with one of your most famous stories and case studies, and that’s all about Baileys. Could you share the story of developing Baileys?David Gluckman: It all happened very quickly and it happened pretty well seamlessly, as well. We got a brief on a Friday afternoon which said that the Irish government were looking for brands for export, and if they were successful, they’d get a 10-year tax holiday, which is quite significant. But it was just a telephone conversation late on a Friday afternoon.And the following Monday—we had just been in business on our own—my partner came in and I said, “What are we going to do about this Irish brief?” We discussed it and I said, going back to my previous career 10 years earlier, “Is there anything in my experience in the development of Kerrygold butter—branded Irish butter—which we could bring to bear on this?”My partner said, “Well, what happens if we mix cream and Irish whiskey?”So, being an action man, I said, “Let’s go down to the local supermarket, buy some cream, buy some whiskey, mix it together, and see what it tastes like.” There was no intellectualization, there was no identification of a target group or anything like that. We simply—the brief was hot off the presses, so we just started thinking.The mixture of Irish whiskey and cream was pretty disgusting. But I just figured there was something there. So we went back to the supermarket, looked around, and we bought some powdered drinking chocolate. Added it, added some sugar, and I think the realization dawned: Why should all alcoholic drinks taste punishing and challenging? Why shouldn’t they taste pleasant? And what we had with this mixture was a very pleasing, chocolate-flavored drink.I got quite excited by this because there’d never been anything quite like it that I’d come across. So I called up my client and said, “We have an idea in solution to Friday’s brief. Can we talk?”And that’s how it started, really. It was my experience on Kerrygold that was the trigger, if you like, that led to the first part of the solution, which was the product, the liquid.The Benefit of Ignorance: Developing a Drink with No TrainingAndrew Mitrak: Yeah, that’s right. It seems like such a jump. So this, to place this in time, this was the early 1970s.David Gluckman: It’s 1973. That’s right.Andrew Mitrak: 1973 that you’re developing Baileys. And you had worked previously with Kerrygold and on Procter & Gamble products. But it seems like jumping into you mixing the drinks themselves and coming up with a concoction, it seems like a jump. And you were also involved in the branding elements as well. So this is an example of the product being developed with the same people behind some of the branding of the product. I guess, could you speak to that experience of just developing a drink and developing a beverage itself? Did you feel like you had any training or authority to do that? Or what prompted you to actually develop the drink?David Gluckman: I think that not having any training and being fairly ignorant was probably a benefit. Because had we had some scientific knowledge, we would have been deterred by the thought that something that contained cream could survive in temperatures of 40 degrees above zero or 40 degrees below. If you have a certain element of ignorance, you can do anything. If you don’t know what you can’t do, you can do anything.And I think ideas start in different ways, and that’s how this one started. I can’t explain why. We didn’t start like this every time, but I wasn’t averse to mixing products up and changing things around.Andrew Mitrak: There must be so many lessons in this because it all starts with a tax incentive, which is—I wouldn’t imagine, it doesn’t seem like the best reason to start a beverage is because of for tax reasons, but why not? You do that. You mix it yourself with ingredients from the grocery store and it’s, I don’t mean this in an insulting way, kind of dumb. It’s just like, “Oh, that’s Irish cream, Irish whiskey, why not?” It’s not really over-intellectualizing it.And then you go on to develop the name and the brand and the bottle. Can you speak to the next steps of building everything that surrounds the liquid itself? What did that look like?From a Bottle in a Cab to the ‘Baileys’ Bistro SignDavid Gluckman: I was excited, so I jumped in a cab and took it over to my client. And he was just intrigued by what I had in a bottle in my hands. So, not allowing any foreplay, he grabbed it and tasted it and said, “Hey, this tastes really good. Maybe we should do it.”And that was the most important part of the whole procedure because had he turned to me and said, “Look, this is not our thing,” that would have been the end of the brand and the end of the story. But he bought the idea immediately. He just thought it was worth taking to his technical people to see whether they could make it happen.But then he said to me, because he was a man of some impatience, “We must now think about branding.”And I remembered... the best way to start branding is to start with a name, a brand name, because you can’t design a package without a brand name. And I remember talking to a gentleman, the late Tony O’Reilly—very famous businessman, he was for a while president of Heinz in America, worldwide, and also one of the most famous men in Ireland. He said to me over a drink, “If you ever develop a brand that requires an Irish surname, don’t use one like his.”So I said, “Well, why ever not?” I mean, O’Reilly’s, whatever it was, sounded perfectly normal to me. He said, “No, Irish family names have a tendency to sound whimsical.”So that lodged in my cortex somewhere. And I remembered that. Anyway, we were moving office, and as we arrived at our office, there was a restaurant below it called Baileys Bistro. And I think when you’re developing brands, you think about every aspect of the brand almost 24/7. It becomes a kind of an obsession. It’s always not too far from the front of your mind. And when I saw the name Baileys, I thought it was perfect.Baileys Irish Cream. It just seemed to fit. And so I called up my client and said, “Why don’t we call it Baileys?” And he said, “That sounds terrific. Let’s do that.” It’s an Anglo-Irish name. And that’s how the name began.Crafting an Instant Classic: The Design and Branding of BaileysDavid Gluckman: And from there we developed packaging. And I think that in the brief for the packaging, there were echoes of Kerrygold. I said to the designer, “Imagine Kerrygold with all that wonderful bucolic greenness that is Ireland, and build that in. But remember that it’s an alcoholic drink and people will pay a premium price for it. So it doesn’t belong in the chiller cabinet, but on the liquor shelf. So give it some status and some quality.”And he got it almost in one. But in effect, that was the Baileys story. There are one or two bits and pieces, but effectively that was it.Andrew Mitrak: The thing that surprised me is just the time in which this happened. 1973... I was born in 1990 and that, and so Baileys was around before I was born and certainly had been around by the time I became of drinking age. And it just seemed like one of the products that’s been around forever, right? That so many spirits and liqueurs feel like pretty old brands. And Baileys, for me, just seemed—I would have assumed that it was a hundred years old or more, not just invented today, like 50 years ago or so.Did you think about creating a history for Baileys or having it appear to be older than it really was and have some traditions to it? Or did you want it to be perceived as, “This is a new product, this is a new option for you, this is a new alcohol you can consume?”David Gluckman: I think we were governed by the kind of style that attached to alcoholic drinks at that time. You know, there was a lot of heritage, dates going back to the 19th and 18th century. There were idiosyncratic devices, like the bat on the Bacardi bottle. I think the convention was antique and conservative. Although there were brands that were emerging at that time that were much more modern, like Malibu, for example, which didn’t follow those rules.But no, I don’t think so. I think we just had a vision in our mind of what the label and the packaging had to say. And it was all about a celebration of Ireland’s green and pleasant land. And I was imbued with a certain passion for the country through working with O’Reilly and on Kerrygold, and that always stuck with me.‘Benefit Out’: Why Baileys Wasn’t Built for a Target AudienceAndrew Mitrak: You mentioned that there wasn’t a lot of, you know, target audience and persona building and things like that that went into it. Did that come down later, after you had invented it and passed it off? Did the targeting and demographics and how to go to market and where to target first—did that come later after you had handed off the product, or was it never part of it? Was it just a beverage for everybody to begin with?David Gluckman: Well, my belief, I think, is what I call “benefit out.” In other words, I think if you have a product that has something to offer, communicate that to people and it’ll find its own level. So I didn’t have any particular target archetype in mind. People were doing that kind of thing back then, but having been in this particular field for 50 years, I think most of that is bullsh*t.You design a product, make it available. The advertising and marketing people will fine-tune it if you like, but we handed it over the product as it was and left it to the companies. I think it’s one of the saddest things about my job is you develop a brand for which you have a passionate feeling, and then it disappears and perhaps isn’t developed along the lines you would like. But that’s life.The Creator’s Dilemma: Letting Go of a Brand You BuiltAndrew Mitrak: Yeah. So this is something I wanted to follow up with you about because you were a consultant, and you obviously had a massive part in Baileys, from the conception, the ingredients, the name, the bottle, so much of it. It’s you bringing this to life. And then you don’t own it at the end of the day. You hand it off. And you write, “I can remember being introduced as someone who, quote, ‘a man who helped out with the label design.’” And that rankled you a bit, but you let it go. And is it hard to let go of a product that you helped create?David Gluckman: Not really. I mean, I think that the remark to which you refer was made at the launch party in Dublin in 1974. And somebody... I think the Irish are very protective of brands that go out under their name, as they should be. And somebody introduced me not as one of the people who created the brand, but someone who helped with the pack design. Since I have absolutely no graphic skills whatsoever, that rankled a little.And then I think if you look back on things, you realize that for ideas to succeed, other people need to own them. In other words, what this guy was saying is, “This is my brand, not his,” and “I own it.” And I think that’s important. It’s a grown-up way of accepting the situation with brands. But if people start buying into it and feel ownership, then it’s very important.Andrew Mitrak: That’s an important lesson and something I think every marketer and brand person could keep in mind.What Explains Baileys’ 50 Years of Staying Power?Andrew Mitrak: So reflecting on Baileys, it seems like there are just so many spirits that have been introduced and come and gone and had various levels of success over the last 50 years. And why do you think Baileys has had the staying power that it’s had?David Gluckman: Well, I think what amazes me about Baileys is how it hasn’t been superseded by competitors. In other words, it’s sort of kept its position. And I think that’s largely through manipulation of price because Baileys, I think, sells for far less than it ought to. But I think that in that way, Diageo, because of the economies of scale, et cetera, are probably able to prevent any other operator from really damaging it. I don’t think that’s forever. I think that will happen.I hate Baileys’ advertising and I loathe Baileys’ brand extensions because I think they’re cheap and nasty and trivial. And I’ve been quite vocal in my comments along those lines. But that’s... it’s been a long, long dead for me as a brand.Andrew Mitrak: You’ve watched it from the sidelines over the last five decades or so since you handed it off. And they have, you know, Baileys candies and peppermint Baileys and all these new flavors of Baileys. And it’s just like, “Okay, that seems a little...” Parts of it seem a little gross, but it also seems to cheapen the brand and some of the core ideas that you helped develop there.When a Meme Takes Over: Baileys and the ‘Old Gregg’ PhenomenonAndrew Mitrak: The first time I ever came across the brand Baileys was in this viral video that was an early meme called “Old Gregg.”Andrew Mitrak: And I was a teenage boy, like probably 15 years old when this came out. And there’s this absurd sketch that has a line from this character named Old Gregg. And the character asks:“Have you ever drunk Baileys from a shoe?” And this was my first time, I’m like, “What is Baileys?” And still today, within a very small group of people who are give or take five years from me, if I’m at a holiday party or some gathering and there’s Baileys, someone might say, “Have you ever drunk Baileys from a shoe?” And it’s just a silly thing. And I’m wondering, did you ever come across this sketch at all? And do you know if anybody at Baileys had a reaction to this Old Gregg comedy bit?David Gluckman: I don’t. In fact, the first time I saw it was the link you sent me yesterday. Yeah. And I’d not heard of it before. And bear in mind, I went to the Baileys 50th-anniversary lunch recently, but that’s the only connection I’ve had with the brand since the 1970s.Andrew Mitrak: There’s an interesting thing where there’s meme culture of the internet. There are these people who like share things, and brands don’t always have control over that. That the internet—you bring a thing to life, and then some comedy sketch makes a silly joke and has your product being drunk out of a shoe. And no control over your product whatsoever, but sometimes the internet just will run with a thing. It just seems like an interesting little case study of what a lot of brands deal with, where there’s some meme that now comes across on the internet that a brand has to somehow choose to embrace, choose to ignore, or just choose to live with for a bit. And it just seems like an interesting element of today’s media culture of how a brand might have to interact with the online universe.David Gluckman: Well, again, that’s beyond my pay grade. You know, the brand has been handed over, and I either jump up in the air with delight or cringe when I see the way it progresses. But you know, that’s life.Why Great Ideas Start at the Top, Not in the MiddleAndrew Mitrak: You go on through your career and it turns out okay. You work on a number of great brands: Tanqueray No. Ten, Smirnoff Black...David Gluckman: Cîroc.Andrew Mitrak: Cîroc, yeah. And more, the list goes on. And rather than tell the story of each of those, I’d also, in your book, you also talk—there are these themes that come through your work as well and lessons that you’ve learned from all of them. And I thought we could talk about those lessons, and maybe some of your stories of those other brands you worked on could come through that.And one of the lessons that I totally identified with is that successful ideas don’t start in the middle of the organization. They start at the top. And that you need corporate cojones, you need leaders—usually the president or CEO or founder—to have conviction and make bold bets for a product to succeed, for a brand to succeed. Can you expand on this idea?David Gluckman: Yes. What happened was that roundabout the time... I think I started in brand development in ‘69. Around ‘72, I think, an American called Tom Peters and a colleague called Robert Waterman wrote a book called In Search of Excellence, which we read. And we got very excited by this book because it talked about how companies worked, how big—and these guys were McKinsey consultants, I think—and they were talking about what it was like being inside big companies. And we came to various conclusions. It took a long time for these conclusions to bed down, but I think they’re very appropriate now.One, that you could never develop a successful new brand if your path to development was through middle management because middle managers didn’t have the power to make things happen. So what IDV did, which was before it became Diageo, was instituted a thing called the “champion system,” which we got from Tom Peters, which said that anybody could commission a new brand provided he or she had the power to make it happen.So we were getting top members—we had the finance director come in with a brief—mainly top-level management because, A, top-level management weren’t interested in the mechanics of doing something. A middle manager has to go and spend hundreds of thousands of dollars researching an idea to prove to his people above that it’s going to work. We didn’t have that problem. You would simply be asked by your client, “Will this work?” to which the answer was, “Yes, I think so, but I’m not sure.” And you can never be sure whether something would work.So we had this top-down approach. The other thing is we didn’t engage marketing people. None of the brands we developed went down the marketing route or were developed through the marketing route. Marketing was very successful in making the brands work, but we didn’t use marketing. We didn’t use that constant desire to prove everything. If you look at Baileys and deconstructed it, nothing would have been as it was if we’d gone through the marketing route. Everything would have been questioned and debated and alternative before it happened, and might not have been quite such a successful brand. So we had a different way of working.“Don’t Go Through the Marketing Route”Andrew Mitrak: I want to follow up on this idea that you don’t go through the marketing route because something that I’ve thought a lot about on this podcast series is I want to cover the stories of a lot of the greatest marketers of all time. And within business, the greatest marketers of all time within companies, very rarely would you think that it’s the CMO, actually. If you look at a list, you’ll see it’s often founders or CEOs that have very strong marketing instincts. Steve Jobs, Walt Disney, Oprah Winfrey, Lee Iacocca.David Gluckman: A lot of people in the drinks business: Sidney Frank.Andrew Mitrak: Yeah. And it strikes me that a lot of the best... if you ask somebody, “Who is one of the best marketers in the world?” they usually won’t name somebody with “marketing” in their title. They’ll think of a CEO or founder who has really strong instincts. Do you have a reaction to this?David Gluckman: I think that’s true, and that’s certainly been my experience. The best people I worked with were board directors. O’Reilly was a fantastic guy to work with because he could take a decision. And he’d take a decision—I was a junior executive, aged 24—and if I came up with something that he thought was interesting, we’d do it.Whereas with marketing, you go through strategic analysis and you look at target audiences and you spend buckets of money doing market research. I remember I did a pitch to Unilever 30 years ago, and I said, “If I ran your business, I would cut your research budget, your market research budget, in half, and then I’d halve it again. And get people, A, to use their brains more, and B, to look at the data you already have.” I didn’t get the business, but that wasn’t a surprise.Andrew Mitrak: That is funny. It is interesting how often a company will always want to commission new research, even if the company’s been around for a very long time and probably has decades of existing research you could draw from and draw conclusions from faster and more cheaply.Why Buying an Idea is as Important as Creating OneAndrew Mitrak: Another idea of yours is that the person who purchases the decision deserves as much, if not more, credit than the person who comes up with the idea. Can you speak to that or can you articulate what this idea is?David Gluckman: This is something you learn over time. Ego plays such a big part in this whole business in which we work. But when you come to think of it, if somebody had said, “Look, I don’t think this chocolate milk stuff is our kind of thing,” that’s the end of the story. I think the people who buy ideas are not given nearly enough credit for that. I would say that every single idea of mine that got out of my office and into somebody else’s and worked was down to the person having the ability to buy the idea on an argument, because we never spent any money on research. We figured it was a complete waste of time.Because if you get nine out of 10 consumers thinking an idea is good, the chances are it’s mediocre because you’ve just reinvented your competition. Good ideas will get two passionate people out of 10 loving it and the other eight hating it, and you build from there. But you can’t use that as a tool to sell it to your marketing guy. Two out of 10 people think it’s a brilliant idea, you ought to go with it? No chance.Andrew Mitrak: So how does this change your behavior over time, knowing that you’re really dependent on the person buying the idea? For me, for instance, this totally resonated with me. And I know that I almost treat my ideas a little more cheaply in a way where there was a time, especially early in my career, when I feel like I had a good idea, I’m like, “Oh, this is so precious. I shouldn’t share it with anybody. I should really develop it for a long time.” And now I’m like, whenever I have an idea, I just share it. I try to get it out there. And I know whether it gets adopted or not, I’m not going to feel too bad over it. Of course, I’d like things to succeed and be adopted, but just get it out, share the ideas, be confident you’ll come up with more ideas. And if somebody buys it, great. And of course, do your best job to try to sell it, but if you don’t, try to not let it be out of your control. Is that your thinking about it, or are there other ways we should treat our ideas differently, knowing that really their success depends on somebody buying the idea?“There’s No Plan B”: Why it’s best to pitch only one ideaDavid Gluckman: When I worked in advertising in London in the ‘60s, there was one agency called Collett Dickenson Pearce, which I think was one of the best agencies in the world in its time. But they only ever produced one idea in response to a brief. When they went to a client, they said, “This is what we think you should do.” And there were two ways out of this: the client would give them good reason not to do it, in which case they’d do another one, or they’d fire the client and look for somebody else.And at the time, we were just amazed—working in more conservative agencies—how could they do that? How could they just go with one idea? But I think when you engage with the business of creativity and the business of solving problems, you realize that there can only be one solution within your capability. Now, I’m not saying it’s the perfect solution. There might have been a better idea than Baileys, and there may be better elements in brands. But I think if you’re really true to what you believe, you go with one idea.To the point, I had this long relationship with my client. I remember once going with two ideas, and my client said to me, “You haven’t solved it, have you, if you’ve got two ideas?” And I said, “No, I haven’t.” So they said, “Go away and come back with one.”Andrew Mitrak: Yeah, one of the quotes in your book is, “There’s no plan B.”David Gluckman: I think that’s what we had to do. After Baileys... when I started, the first pitch I ever did, there were 48 ideas. That was because we weren’t sure what the client wanted, and the client wasn’t sure what they wanted either. So there were 48 solutions. Whereas once things became more specific, you could look for one idea.Innovation vs. Renovation: The Case for Inside-the-Box ThinkingDavid Gluckman: The areas I... I think there’s a lot of glib nonsense talked about my particular field. The word “innovation” is used because somebody comes up with a turnip-flavored Smirnoff or something. But that’s not innovation. That’s something that you knock up on a Friday afternoon after lunch. That’s not innovation. Innovation is something new and doesn’t happen all that often.I have this... you know, people talk about breaking paradigms and disrupting markets. Most of that’s complete bullsh*t. My counter-theory to this is what I call “inside-the-box thinking.” I think most of the thoughts and ideas that have been any good that we’ve produced have been from inside the box, from looking at past research that people have done, just reading through documents and reports. From looking at... coming up with ridiculously obvious observations.Like, I remember when we did Tanqueray No. Ten, the observation upon which it was based was: Did you know that there’s 10 times as much vodka sold as gin? So why don’t we try and get vodka drinkers to drink our gin? And how do you do that? You take out all that juniper flavor and tame it down and make it fruitier and fresher-tasting. Now, that’s inside-the-box thinking because that’s based on data that’s already there.Andrew Mitrak: I love this idea of inside-the-box thinking. Do you have some practical guidance or a few tips for embracing this, for discovering ideas that are hiding in plain sight?David Gluckman: Well, I think you have to disregard consumer research because I think it’s a very blunt tool. And I say that from having done hundreds of focus groups all around the world, many, many in America. But you don’t have to go and ask consumers what to do. There’s a legend on the front of my book, which is the story of the man who sold the world what it didn’t know it wanted. And I think that’s what you’re doing. You’re trying to develop things that people didn’t know they wanted. I think that’s quite an important... you know, if you take the research route into innovation or development, you just end up with what people say. Can we produce a product to compete with Red Bull that doesn’t taste quite so ridiculous?The Rise of Non-Alcoholic Beverages (and Their Puzzling Price Tags)Andrew Mitrak: Back to alcohol brands, you’re mentioning the brand extensions that Baileys has done over the years. It seems like there’s this tension between alcohol beverages wanting to be part of cultural trends and to be innovative, but also that there’s this history and this tradition to it, right? Johnnie Walker has been around for 200 years, but I remember not too long ago when they were releasing all these special Game of Thrones editions to their brand. And similar with Guinness, you know, it’s a big piece of Irish pride, they’ve been around for hundreds of years. I hope they don’t mess with the recipe too often. But now I’m seeing the alcohol-free version of Guinness. And I actually think it’s pretty good, as far as non-alcoholic beers go. But it’s very different than traditional Guinness, and it almost seems like sacrilege to mess with Guinness, right? So, do you have thoughts on how brands both stay true to their values, their history, and not damage their brand with too many brand extensions, but still want to try new things and to innovate and be relevant?David Gluckman: I’m quite an outspoken critic of the non-alcoholic category, particularly wines and spirits. I bought a bottle of Gordon’s a while back, Gordon’s Zero. And it cost a pound less than a bottle of full-strength Gordon’s. And when you think about it, what you’re paying for that money for is gin-flavored water, which is crazy, really. I mean, gin-flavored water for £14.Andrew Mitrak: You’re totally right that, especially with a spirit or wine, the trend to go from like 14% to 0% just seems like almost too big a jump somehow. I think it works better with beer, but the pricing of it doesn’t make any sense to me at all. That if you look at the non-alcoholic beers at a supermarket, at least here in America, basically the same price, sometimes even higher than the alcoholic ones. There’s a thing called hop water, which is like the hops in an IPA beer that are infused in water. And sparkling water will be 30 cents a can here, but hop water will be like $2 a can or more. And it’s like, why is that? It’s just sparkling water with a different sparkling flavor.And then mocktails, if you go to a restaurant, there’s this thing called a mocktail instead of a cocktail, and it’s juice. It’s just juice! But it’s priced the same way a high-end cocktail is, and it just seems crazy.David Gluckman: Yeah, exactly. I find it strange. I had some non-alcoholic product, which I will not name, the other day, which cost, I think... on a 70cl bottle, which is our unit size here, cost about £42. And a bottle of Johnnie Walker Black Label, where your capital has been locked up for 12 years in a warehouse, costs £35. I think that’s just crazy, really, that you’re paying for a kind of flavored squash thing for £7 more than Johnnie Walker Black. It’s ridiculous. But that’s the way the world works.Marketing Alcohol and Navigating the EthicsAndrew Mitrak: I want to talk about this trend towards non-alcoholic beverages because I think it does coincide with more awareness about the negative health impacts and societal impacts of alcohol. People are almost willing to pay more because it’s perceived as healthier. Do you think that’s part of it?David Gluckman: It’s in part. I think we went there in 1984. The guy to whom I reported at IDV, who was a global director of the company, said to me one day, “Well, look, I think that alcohol is going to come under attack.” This was 40 years ago. He said, “Alcohol is going to come under attack.”We were amazed at how successful Perrier was, especially in the US. Because to me, Perrier is just soda water with history. And so we looked at developing a series of non-alcoholic products, which we did, and they were quite successful, except the company committed too much money. They set up a separate organization to manage it without having the critical mass of some big brand to make it successful. But we were there then. We had developed a brand called Aqua Libra, which was incredibly successful in the UK for a while, and another drink called Purdey’s, which is now owned by Britvic. So we went down that route. But the company, I think at that time, went into the merger and took the decision that their business was alcoholic beverages, not non-alc. So they were dismissed.Andrew Mitrak: I do want to ask you about this a little more as well because on the one hand, I’m mesmerized by the capabilities of developing an alcoholic beverage and the marketing around it, and iconic campaigns. Absolut Vodka, the Super Bowl is so full of great beer advertisements that people will talk about for weeks afterwards. So a lot of the best marketing and branding and advertising is around alcohol, but it is something that does have societal harm to it. My family has a history of alcoholism, and I’ve seen firsthand it’s had really, really bad impacts on people. And I’m kind of... it’s a tension because I can both admire the brilliance that goes into developing the products, but I can also see some of the harm that the products have had on people and in society.Does that ever come up? How often does that come up as you were working on these products, as you work in this industry? Do folks think very much about that and how they reconcile some of the negative impacts of the products they’re selling?David Gluckman: There was always that background feeling, as there would be with cigarettes. You know, should I be doing this? Is this the field in which I should be engaged? And because I smoked when I was younger, I would never have taken on a cigarette brief, I don’t think. But alcohol... well, it was there in the back of my mind, but it didn’t stop me from working in the category. It was just so interesting. And the laws protect us from selling booze to children and things like that. So that’s an adult decision.Andrew Mitrak: As companies introduce new brands of alcohol, they’re doing that because they want their company to grow, right? And they want to sell more. And in America at least, the top 10% of drinkers consume like 90% of the alcohol. And I’m wondering, where do they want to sell more to? Do they want to sell more to that top 10% of drinkers who are already drinking a lot? Are they trying to find new drinkers and bring new people into the market? Are they trying to upsell people so they’re paying more for alcohol than they otherwise would, so they’re not going at the bottom-shelf liquor, they’re going more for the premium one? Do companies have that strategy in mind of like, which market are we breaking into? How are we growing our product? And how does that reconcile with the ethics behind alcohol marketing?David Gluckman: I think most of the time people copy other people. So if somebody brings out a raspberry-flavored vodka, seven other people will come up with raspberry-flavored vodkas, which is copying. When Seedlip came out with their non-alcoholic spirit, about which I was quite scathing, other people have rushed in and copied Seedlip as well. So a lot of it is just copying what other people are doing. Not many people are looking to completely change things around.Could There Be Another David Gluckman?Andrew Mitrak: I’ve really enjoyed this conversation and reading your work. One of the questions that I have is that, could there be another David Gluckman? You seem to have been in the industry at this moment and had this career where you could come up with these ideas and work with relatively small teams and take bets and find the right decision-makers to champion that.But a whole industry and things have been bureaucratized around it, things have been so formalized with more stringent types of market research. It seems like there’s so much more consolidation within the beverage industry that they might be a little more risk-averse, and that having independent voices or having smaller teams create bolder ideas just doesn’t seem to happen as much anymore. So I guess the two parts of the question is, could there be another David Gluckman or a person like you who does what you do? And if so, how would they go about it?David Gluckman: I think the only way that would happen is the way it happened for me, is to find a client with whom to work who makes that possible. A client with corporate cojones, if you like. A client who says, “Yes, we can,” has a very positive attitude. And the client—I mean, I think if I didn’t have a client, I would have been... I might have done one or two brands if I’d been lucky. But the client that I had that could go to a member of the main international board and sell an idea off the back of a cigarette pack, and they empowered this kind of thing, they stimulated you.I think it’s the company. Otherwise, it’ll happen with entrepreneurs because the beer business is certainly full of people like that. Brilliant, brave people who went with their instinct.Andrew Mitrak: Again, for listeners, the book is That Sh*t Will Never Sell by David Gluckman. It’s full of great stories, some of the case studies you’ve heard here, but they go into more depth, and there are lessons and a lot of wit and fun throughout it. So, really enjoyed the book, David. Aside from purchasing your book, are there any places you’d point listeners to as far as where they can find more of your work online?David Gluckman: Well, I think they’ll be all over the place. So if you just Google me, you’ll probably find some stuff. If anybody buys a book and wants to have a chat, my Zoom door is always open.Andrew Mitrak: Oh, that’s a very nice offer. I hope you get flooded with meetings. So yeah, David Gluckman, thanks so much for your time. I really enjoyed the conversation.David Gluckman: It was a pleasure, Andrew. Enjoyed it too. Thank you. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
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  • Scott Reames: Nike's First-ever Historian Shares Secrets Behind the Swoosh
    A History of Marketing / Episode 37This week, I’m sharing a special conversation with Scott Reames. Scott spent three decades at Nike and for 16 years was Nike’s official corporate historian, a role he invented. He even helped Phil Knight with research and fact-checking for Shoe Dog, the only business memoir I’ve read more than once.Nike is the first brand I remember embracing as a kid. I suspect this might be true for a lot of marketers.Growing up in the 1990s, I played basketball, I watched Michael Jordan win six NBA championships, and my favorite movie was Space Jam (which, as we’ll discuss in this episode, originated as a Nike ad).Nike is the gold standard for branding. They set the bar for iconic advertising, bold messaging, and culture-defining sponsorships.But how did they build their marketing empire? Who were the marketers responsible?In our conversation, Scott shares the stories of Nike’s most important marketing milestones and the people behind the brand.Nike’s brand wasn’t built by seasoned marketing experts, but by a group of self-taught mavericks in Portland, Oregon with passion, ambition, and good instincts. Their professions: an accountant, a social worker, a lawyer, and a student.In this conversation, Scott shares:* How Blue Ribbon Sports (Nike’s original name) established its early reputation in the running community with the help of cofounder Bill Bowerman.* How marketing helped Nike win a legal battle against Onitsuka, allowing it to continue as a brand.* The story of Rob Strasser, Nike’s first head of marketing, who started as the lawyer on that Onitsuka lawsuit.* The real story of the movie Air, and how Hollywood gets so much wrong.* The surprisingly morbid inspiration behind “Just Do It”.Here’s my conversation with Scott Reames.Listen to the podcast: Spotify / Apple PodcastsThank you to Xiaoying Feng, a Marketing Ph.D. Candidate at Syracuse, who volunteers to review and edit transcripts for accuracy and clarity.Nike’s Secret Sauce: ‘We never sold shoes. We sell dreams.’Andrew Mitrak: Scott Reames, welcome to A History of Marketing.Scott Reames: Thank you for having me. I’m excited to talk.Andrew Mitrak: I’m so excited to talk about the history of marketing at Nike. And as I was preparing for this interview, I was thinking, is the history of marketing at Nike just the same as the history of Nike?Scott Reames: It’s funny, I was thinking about a quote I have from Jeff Johnson, who was the first full-time employee hired in 1965, right? So, Phil Knight and Bill Bowerman, the co-founders, were working full-time at their own jobs, and they hired Jeff to essentially be boots on the ground and really do everything: start the marketing, start the advertising, start the product development, everything.And he told me years ago, he said, “The secret sauce for Nike, Scott, is we’ve never sold shoes. We sell dreams.” And to me, that is like the epitome of marketing. I mean, that literally is marketing. It’s marketing a product by going well beyond just, “Here’s what it does for you, here’s how it wears, here’s why it’s good for your foot,” that kind of stuff.So yeah, I would say if that was the mindset in 1965, then it certainly was a part of the fabric of what developed later into the company of Nike.The Bold Early Days of “Blue Ribbon Sports”Scott Reames: I mean, Phil Knight, there are some early letters that Phil Knight wrote to early retailers and coaches as well, but mostly retailers. And at the time, Nike started—or Blue Ribbon Sports started—as an Onitsuka Tiger distributor, not it didn’t have its own brand yet. And Tiger is now ASICS for those who aren’t as familiar. So we were the distributors of the Tiger brand running shoe in the United States.And Phil created a letter, I think it was also in 1965, might have been ‘66, where he didn’t name the runner, didn’t name the athlete, but said that there was a runner, a high-profile runner who had been running in Tiger shoes and felt that they were one of the greatest shoes ever. And he said something along the lines of, “The only people who won’t be running in the shoe are either uninformed or idiots.” And then Phil at the bottom wrote, “And now you are no longer uninformed.”I was like, wow. I mean, talk about a not-too-subtle dig at coaches and retailers. So from the beginning, there’s been that understanding that Nike, or Blue Ribbon Sports then Nike, maybe looks at things a little differently.Andrew Mitrak: That’s a bold line. There’s so much there. So, Jeff Johnson, who I’ll ask more about, he said Nike doesn’t sell shoes, they sell dreams. But in the early days, and you mentioned this, they weren’t Nike at all. They were Blue Ribbon Sports, and they were selling Tigers, Onitsuka Tigers. I actually, Onitsuka has re-released these, and I wear Tigers a lot.Scott Reames: Nice.Andrew Mitrak: Like they’re actually pretty good shoes. They’re kind of that old, I don’t know how much they actually match the original style of it, but I like Nikes of course, but I do also like my Tigers as well, those branded ones. And so, do you think that Nike in 1965, were they making marketing decisions? Or what was sort of the original Blue Ribbon Sports approach to marketing?Scott Reames: I think in the earliest days—‘64 was when the partnership started and the shoes started getting delivered from Tiger. ‘65 was when the first outreach really began. So the original, early marketing was really mostly done by Tiger because Nike was just… I keep calling it Nike, it’ll be interchangeable, but Blue Ribbon Sports, because Nike didn’t exist yet, was just the distributor of the Tiger brand shoes. They didn’t do a lot of their own marketing. They mostly sent out the flyers that that Tiger had sent to them.That started to change as the ‘60s progressed. Jeff Johnson started to be more involved in creating the flyers that would be used in the US. By the end of the ‘60s, Phil Knight is actually writing some copy. He actually coined the term “Swoosh fiber” that was used to describe basically nylon, the nylon uppers, in a 1969 print ad. So that was the first place that we can see the word Swoosh being used, and obviously becomes important later.How Marketing Won a Landmark Legal BattleScott Reames: But throughout the ‘60s, what Nike, Blue Ribbon Sports, did was increasingly taking over the marketing of Tiger, at least in the United States. To the point that when the two brands did part ways in the ‘70s, and they each sued each other for breach of contract, the judge ruled in Blue Ribbon Sports’ favor in terms of who owned the names like the Nike Cortez, the other shoe brand names, that we—they said Nike owned them because they had done the marketing of those products. And so it’s like Bill Bowerman designed the Cortez, and they ruled, the judge ruled that neither Tiger nor Blue Ribbon Sports owned the design of the Cortez, but that Blue Ribbon Sports owned the name of the Cortez because of the marketing they’d done of it.So those are anecdotal, but those are indications that the company was starting to realize the benefit and the power of marketing and advertising.Andrew Mitrak: Yeah, so marketing helped give them a legal win early on.Scott Reames: Which was critical because if you lose that, if we lost that case, I wouldn’t be talking to you today.Andrew Mitrak: Exactly. There are so many places where the Nike story seems like it could have just flipped a coin and could have gone either way. One of those, really early on, Phil Knight, I think he’s in Japan, and he comes up with the name Blue Ribbon Sports because he needs a company name. I’ve heard a few versions of the inspiration for that name. What do you think is the real story?Scott Reames: Well, one of the versions I bet you’ve heard is that it was his favorite beer, Pabst Blue Ribbon. That was lore and/or myth that was spread mostly by his contemporaries and others of that era who just liked to tease him. And he never really went out of his way to correct them. He just thought it was funny.But when we were working on Shoe Dog, he obviously wanted to really tell the story correctly. And he admitted there that no, he didn’t… while he did kind of BS his way into a meeting with the Onitsuka—well, with the president of Onitsuka—that when they said, “Who do you represent?” he was prepared that that question might be asked, and he answered “Blue Ribbon Sports,” because as a track athlete himself and just in general, a blue ribbon signifies first place or it’s a great thing to earn when you’re in Little League or sports in general. So he felt “Blue Ribbon Sports” telegraphed the message that this was a quality company, even though it didn’t exist.Andrew Mitrak: It’s so funny just to contrast the name Blue Ribbon Sports to Nike. Like one just kind of seems so generic, vanilla, it’s a distributor, right? And the other is so branded and is kind of abstract and all that. And you have to kind of create new meaning into it. It’s not obvious what Nike is until the brand exists. So it’s just funny to contrast the two.Scott Reames: That’s correct.Bill Bowerman’s Credibility and the Birth of an EmpireAndrew Mitrak: So, Phil Knight’s early partner was Bill Bowerman, the co-founder of Nike. And Bill Bowerman, he gives all of this credibility and reputation to Nike as a brand. So do you almost think of this partnership somewhat as a marketing decision to work with Bowerman, or how do you think Bowerman improved Blue Ribbon Sports’ marketing presence?Scott Reames: Well, certainly his name, the gravitas of his… I mean, literally the University of Oregon had won its first track and field title, NCAA title, in 1962. So he was certainly a rising star in track and field coaching. And the university also was starting to register some A-level runners. There was a man named Otis Davis that ran in the Olympics in 1960 who was a Duck. So it was basically a program on the rise.And obviously Phil Knight, having run for Bill Bowerman, also had a personal affinity for it. But I do think it was a little bit of mercenary, a little bit of certainly wanting to make a sale, obviously. I mean, Phil’s trying to get his fledgling company off the ground and making a sale to the University of Oregon would not be a negative thing in any way. And then also being able to say that the Tiger brand running shoes are the shoes worn by the NCAA title, you know, NCAA champion, University of Oregon, certainly had its own cachet.Whether that was done completely with forethought as to the marketing side of it, or it was just literally, where else would you start as a Duck alum? You know, Phil’s not going to go to the University of Washington, right? He’s not going to go contact USC. I mean, maybe eventually, but he’s going to start at home. So I don’t know if it was overtly a marketing thing like, “This will be amazing.” I think he didn’t have any idea that Bill Bowerman would ask to be cut in as a partner. He was just looking for a sale.And the main reason for that is the reason why he didn’t expect him to cut in as a partner was that he, Phil, did not have any knowledge of the fact that since at least 1954, Bill Bowerman had been contacting Adi Dassler, Horst Dassler, other members of the footwear cartel at the time, trying to get somebody to sell him shoes directly instead of through wholesale so he could get them less expensively. But more importantly, he also had design ideas that he wanted to impart and have put into a running shoe. And all he would get back from Adidas and others was, “Thank you for your interest. You can get our shoes at through such and such distributor.” And they made no mention at all about any interest in his design ideas.So Phil is just reaching out to Bill to get a product endorsement and a sale. Bill sees now an opportunity to have a connection, a direct connection to a footwear manufacturer who might take his ideas and actually turn them into something. So it was a very serendipitous exchange of letters that led to the partnership that led to Blue Ribbon Sports, which led to Nike, which led to you and me being here today.Andrew Mitrak: Right, yeah. And then so for listeners, Adi Dassler, obviously Adidas, and then the other brother, is it Rudolf Dassler?Scott Reames: Oh, sorry, Rudy, yeah. Horst was the son. I forgot about that, sorry.Andrew Mitrak: Rudy was Puma. Which is its own really fascinating history there that we won’t go into...Scott Reames: I mean, there’s a great book called Sneaker Wars. It’s absolutely fascinating about the two brothers and how much they didn’t like each other.Andrew Mitrak: Totally. Yeah.“If You Have a Body, You Are an Athlete.”Andrew Mitrak: So one of Bill Bowerman’s lines is, “If you have a body, then you are an athlete.” And I love this line, and it’s just like, what a great turn of phrase, and also really expands your addressable market as well.Scott Reames: Yes.Andrew Mitrak: Did Nike or Blue Ribbon Sports ever use this line publicly? Or how was this used?Scott Reames: No, not in the earliest days. It didn’t really… he may have used it to his own, in speaking to his own people or in his own communications with others, but Nike didn’t start using it until 2001. There was the Nike mission statement in the earliest days was essentially to be the world’s leading sports and fitness company. Right? Okay, well, it’s a good goal. We don’t want to be number four, you know? It’s like we want to be the world’s leading.So by 2001, check. They’d done that. So it was kind of like saying, well, we want to be what we already are. So Mark Parker, the co-brand president, or co-president at the time, decided that it was time to change the mission statement. And they went around and around, and basically they decided to be more aspirational instead of literally achieving a specific goal. And so it was like, to bring innovation, innovation, inspiration, and innovation to every athlete in the world. And the athlete had an asterisk. And then if you look at the asterisk, it said, “If you have a body, you’re an athlete.”Which is about the most inclusive way you could… I mean, there can’t be a more inclusive slogan, as you were saying earlier. I mean, literally, we all have a body. We can all be athletes. We can all, you know, we can’t all be Michael Jordan or Serena Williams, but we can certainly be more athletic or we can do something that is athletic in our own way. So that was when it really took a high profile within the company. Again, how it was used before that, I don’t know. That was the first time, and since then it is a key part of the mission statement.Phil Knight’s Skepticism and the Ad that Changed EverythingAndrew Mitrak: So back to Phil Knight and the early Blue Ribbon Sports story, I read that somewhat ironically, Phil Knight was skeptical of advertising. So when did they really start advertising beyond just sort of republishing Onitsuka’s brochures? What were their first early forays into advertising?Scott Reames: Really, beyond just the one-offs that were done like Carolyn Davidson, who designed the Swoosh, she also did some early advertising, but those were very one-offy. There wasn’t really a program put together, per se. That really came about in the mid-70s when we started to have a series of products coming out on a fairly regular basis. So there was, it was all print, there was no television, certainly by this point at this point. But roughly once a month, there would be a new shoe in the pipeline that we would advertise.The advertising was done first again by Carolyn, and then it became too much for her. She was just a freelancer, and we weren’t her only client. So she basically said she’d like to be replaced. So we brought in a couple of agencies. One only lasted for about a year, but the second one was John Brown and Partners. They were based in Seattle, and they started really doing the series of ads, a series of print ads.And usually it was a fairly technical: “Shoe X is coming out and it does this, and here’s why you would want to run in it,” and blah, blah, blah. So they were informative, but they certainly didn’t have the Nike oomph, whatever you want to call it, yet.And then that all changed in 1977. So one month in 1977, we didn’t have any new product in the pipeline. But we were particularly committed to running the ad. It was always in Runner’s World, I believe. And so we had a space there that we’d purchased. So Patsy Mest, who was the ad director at the time, or ad manager for Nike, told John Brown, “Just write something that makes a runner feel good about themselves.” That was I think the entire brief, at least that’s what John told me.So he’s kicking around like, okay, okay, what would you do? What would you do? So he came upon a very simple, five-word: “There is no finish line.”And then Denny Strickland, the art director for John Brown, and Bob Peterson, the photographer, had the brilliant idea to essentially create an atmosphere where you see a long way, a distance, in the distance there’s a runner running down a country road. So you can’t see the product. You wouldn’t know it’s Nike, literally, until you saw the bottom of the print ad. And that really became the first brand ad that Nike did. And it was mostly by the luck of the fact that we didn’t have product that month, and that John Brown had an inspiration, which is even more amazing because he told me he’s by far not a runner. Right? But he just felt like this was something that was like, to make them feel good, but it also meant like there is no finish line. So you ran a great race today, but tomorrow I bet you could do a little bit better because there is no finish line.And it just hit. Right? I mean, people really, it resonated with them. We got letters, Nike got a bunch of letters from people saying how much they appreciated the fact that we see them, that Nike gets them as runners. And so it actually spawned such a demand that people started wanting us to make a poster of the print ad, which was not part of our plan at all. We didn’t have a poster business. But within three or four years, we had a multi-million dollar poster business because of that print ad that spawned other posters like “Iceman” and some of the iconic, “Supreme Court,” that are now super, super iconic. All came about because of responding to the consumer saying, “We really like that ad. It hits for us. Can you reprint it for us?”Andrew Mitrak: So that ad, “There is no finish line,” great line, because there was no product that month. Most of the advertisements had been, “Here’s this shoe and technical specs,” and more advertising a product line versus advertising Nike as a brand and selling the dream. Did that, leading to things like the poster business, do you think that’s when it clicked for Phil Knight that advertising was really powerful? Or do you think that’s when he sort of went from being a skeptic to fully embracing advertising?Scott Reames: Well, it’s funny because when I interviewed John Brown, he told me that he had introduced, Phil Knight introduced himself to John by saying not necessarily what he told Dan Wieden, “I’m Phil Knight and I don’t like advertising, I hate advertising,” but he said something along those lines, that he was skeptical. He felt that word-of-mouth or, as we used to say, “word-of-foot” advertising was best. An athlete, a runner, say, “Hey Andrew, I think you’d like this shoe.” And then that’s why you would run in it, not because you picked up a print ad or saw something on TV and you’re like, “I’m going to wear that shoe.”So that was his mindset. And John believes that “There is no finish line” and the reaction to it was one of the first moments where Phil saw, literally firsthand, that there is a power to good advertising, to persuasive or not in-your-face advertising. But it was funny because that’s 1977, and then in 1980 or ‘81 is when Phil, I guess it was ‘82 when Phil first met Dan, and he said essentially the same thing, “I don’t like advertising.” So Phil was clearly reluctant or slow to embrace the power of advertising, which of course now is the ultimate irony, that it’s synonymous with Nike now.But he needed to see it because in his mind, he’s an accountant by trade, he’s a runner himself. So for him, it was Steve Prefontaine wearing Nike running shoes that he felt was the power, the endorsement of that kind, as opposed to just a clever turn of a phrase or a funny, you know, words on a paper.The Legend of Steve Prefontaine: Nike’s First IconAndrew Mitrak: Let’s talk about Steve Prefontaine, because it seems like he was one of the first Nike iconic sponsorships. Nike’s so well-known for partnering with athletes and having long-standing partnerships. Can you tell the story about their initial relationship with Pre and how this kind of became an early template for their sponsorships?Scott Reames: Steve Prefontaine followed in the footsteps, literally, of other Oregon runners like Phil Knight of course earlier, but Geoff Hollister and Kenny Moore and some of the early 1960s runners, all of whom played important roles both either in the launch of Blue Ribbon Sports then Nike or in the University of Oregon’s ascension into essentially the elite of track and field programs.So when Pre comes along in 1969, the Tiger Cortez had already been created, the Tiger Boston, I mean, we’re really starting to… we being both Tiger and Blue Ribbon Sports are really starting to get some, no pun intended, traction in the industry. Sorry, footwear jokes, what can you do?And then serendipitously, this kid from Coos Bay, Oregon, a little tiny little town on the Oregon coast, shows up at the University of Oregon and he just instantly captures everyone’s… he was so magnetizing. I mean, people were just drawn to him. And he performed so well at Hayward Field. Right? That he drew from the crowd, and the crowd fed off him. It was just an amazing symbiotic relationship.And he was also brash, but he backed it up. Right? He had swagger, but he was cocky, but he was also really good. So it’s not like he was just like, “God, that guy’s full of himself.” He was good and he knew it, but he then performed. And Phil seemed to really gravitate towards that personality. Maybe that’s Phil… Phil’s a very quiet, kind of introverted person. Maybe if he weren’t so introverted, maybe he would be more Prefontaine-esque, I don’t know. But Phil has referred to Steve Prefontaine as the soul of Nike on many occasions, which is all the more remarkable when you really look at that Steve had a very, had a very short life, unfortunately. He came to Oregon in ‘69 and he was killed in a car accident in 1975. So, and that was only two years after he graduated from U of O. And of course, back then, before NIL and all the other things we have today, Steve couldn’t accept any money from Blue Ribbon Sports. He was basically living on food stamps and surfing off couches for a while because he was training all the time. He couldn’t find a job.So by the time he graduated, then he was able to, Blue Ribbon Sports could hire him to be an employee, if you will, but mostly to let him train. But it was only a two-year window where he was essentially affiliated officially with Blue Ribbon Sports. And yet he is so impactful that more than 50 years after his death, he’s still considered one of the triangle legs. I mean, Phil Knight, Bill Bowerman, and Steve Prefontaine are essentially considered the initial trinity of the company.Andrew Mitrak: It’s a really remarkable story and a really sad ending to it. And I think when he died, he held like pretty much every record he could hold at the time. Is that right?Scott Reames: He held, I believe, eight American records. And this was back when they were doing both mile and multiple miles, like one mile, two mile, three mile, but also the metric races too. And he held pretty much all of them from within about a mile to three miles, and then the metric equivalents, at the time of his death, which is remarkable.Nike’s Pattern of Picking Rebels and UpsettersAndrew Mitrak: It seems like a pattern is Nike, either deliberately or with a lot of luck, just finding the right talent to identify and pick the right talent early on and get their brand associated with them. And Pre is just one example, and of course, they’d have a lot of other examples of doing that as well.Scott Reames: Well, theoretically, if a guy doesn’t or a woman doesn’t pan out, you kind of forget about them, right?Andrew Mitrak: I guess that’s right. Yes, it’s survivorship bias. Exactly.Scott Reames: Right. But so Steve Prefontaine passes in ‘75 and the mantle moves from—it doesn’t stay with running, it moves to tennis with a young John McEnroe, right? Well, look at McEnroe: rebel, brash, cocky, backs it up, you know, but not establishment, you know. And then the transfer is over to Andre Agassi: rebel, brash, you know, all the way up through Serena, Kobe. I mean, it’s just been the MO.And this isn’t always true. I mean, Pete Sampras was a very successful Nike athlete and he’s pretty buttoned down. You know, he’s not, I don’t think you’d call him brash by any stretch of the imagination, but so I think part of it is Phil seems to just have a gift for identifying, especially when they’re young, right? Because it’s really easy to sign somebody after they’ve, you know, been with another brand for five years and you kind of know who they are.Scott Reames: But to take a chance on a Tiger Woods, who, okay, yeah, obviously he was turned out to be great, but you don’t know that for sure when he’s 20 years old. I mean, there’s been a number of players that are can’t-miss who missed, right? And so, Phil does have—I don’t want to call it the Midas touch because he’s certainly not perfect. We’ve certainly had some people we picked that didn’t exactly pan out, but usually the ones that are, again, the status quo upsetters, the people that have a different point of view, the people that give zero F’s about, you know, how you feel about them. I mean, that kind of appeals I think to Phil, and it certainly has been some of the more successful Nike athletes over the years.Andrew Mitrak: So we jumped a little in history.Scott Reames: I tend to do that.Andrew Mitrak: No, no, it’s great because it’s all—all these ideas are related.The Serendipitous Origins of the Nike Name and SwooshAndrew Mitrak: And so, back to Blue Ribbon Sports becoming Nike. There are these stories that have been told a lot, and I don’t want to dwell on them too long. So there’s the story of Jeff Johnson coming up with the name Nike, and Carolyn Davidson designing the Swoosh logo for $35. And you can read about these in Shoe Dog, you can—they’re very well-documented online. I’ve also listened to several of your interviews to prep for this and I’ve heard you talk about it so much, so I don’t want to spend too much time on this part of the story.But the thing that strikes me about this period of time is that it’s like lightning strikes twice in the same place at the same time. That that name, Nike, and that Swoosh that Carolyn designed, it’s like peanut butter and chocolate or something like that. It’s just like, wow, those go together so perfectly. And what do you attribute it to? How did luck happen like just like that, right there? Was it luck? Was it some marketing instincts? Was there something in the water in Beaverton, Oregon? Like, what happened?Scott Reames: Well, Jeff has told the story multiple times, so I—and I don’t want to rehash what you said is already pretty much out there. But in terms of Nike was a chosen—it came to him for several reasons. Marketing was related to a big part of it. I mean, just the fact that it’s the Nike goddess of victory, the Greek goddess of victory. Well, certainly, again, like a blue ribbon, that’s kind of what you’d want to associate with, you know, victory. Duh.The Marketing Logic Behind the ‘Nike’ NameScott Reames: But Jeff had also read quite a bit about the successful brands and what they share often. And usually it’s a one or two-syllable name. It’s a hard or exotic letter like a K or a Q or an X, you know. And I mean a couple of other factors, and he just was like, Nike, when he thought of it, it was just like, it’s like check, check, check, check. All those things seem to work. So he was really adamant that that that was the name.And the funny thing was, just like with the Swoosh, all the people who were involved at the time with finally selecting the name Nike and the Swoosh logo agreed that they didn’t like either one of them that much. Both of them they considered to be the least gross, the least, you know, eh, you know. And that’s why that quote about Phil Knight saying, “It’s the one I, you know, I don’t love it, but maybe it’ll grow on me.”So it wasn’t like, again, they were like the clouds parting and the angels singing and they were all like, “Ah, that’s the mark.” You know, it was more of, “Okay, well this will do for now.” So part of it was blood, sweat, and tears of developing the brand and developing the fact that Nike—the Swoosh was now standing for and being associated with quality and successful athletes. You know, so if it had been a circle or a—I mean, there’s a bunch of other drawings out there that may or may not be legit that Carolyn came up with. She didn’t unfortunately save the rest of them, I wish she would have.So if it had been if it had been an X, let’s say, you know, then that today might be an X on a pair of shoes. You’d be like, “Oh, that’s the Nike Swoosh,” you know, or the Nike whatever, you know. And so we sort of again, retroactively look at now the Swoosh and say it was a genius move, or the name Nike was a genius move. But there were a lot of folks, when we first introduced the logo, especially the lowercase n-i-k-e, the italic lowercase Nike, a lot of people were like, “Who’s Mike?” Because the N looked like an M. And so there wasn’t that brand recognition.And even again, Jeff Johnson, when he was at the first trade show in 1972 where we’re actually debuting the new Nike line of shoes like the Nike Cortez now. They they actually brought the Tiger Cortez and the Nike Cortez to Chicago to the NSGA show to sell them to retail clients. And Jeff Johnson basically said, “You don’t need this shoe. You’ve already got the Tiger, but we think it’s a good one.” And retailers actually said, “Well, we’re not sure what’s going on,” because we couldn’t talk about it. “We’re not sure what’s going on between you and Tiger that you would have your own brand. But you’ve always been straight with us, so we’ll buy some of your shoes too.”You know, so it was literally, it was relationships, honestly, more than just explaining to them that, well, this Nike Cortez, it has, you know, Swoosh fiber, you know, or whatever. It was the relationships of it. And so if that’s—I don’t know if that’s marketing or if that’s just, that’s just building on your reputation and building on people trusting you.Andrew Mitrak: Yeah, that’s right. So I framed the question in such a way that it’s as if lightning all struck in 1973 and everything came out perfectly and that everybody embraced this as an iconic brand from day one. And the truth, of course, is no, it takes time. Right? You build—by the way, did I have the year right? Is it 1973?Scott Reames: ‘71.Andrew Mitrak: ‘71. Okay, thanks for correcting me. Yeah. So those happened in 1971, but people are mispronouncing the name, calling it Mike. And it takes years and years of building the brand and identifying with that Swoosh that it becomes sort of ingrained with all this meaning. So it wasn’t that it was like a home run right off the bat. It did take a lot of time to build.Scott Reames: It was unique enough, and it did look different, right? I mean, you got Adidas with three stripes, you’ve got Tiger with the sort of two-stripey, you know. And so stripes were kind of the look. And you could call the Swoosh—I mean the Swoosh originally was just called “the stripe,” right? It didn’t—nobody said, “This is the Swoosh.” In fact, we never have been able to fully find a paper trail or any sort of trail that went from “Swoosh fiber” for a shoe in ‘69 to “the Swoosh.” There was no memo saying, “Henceforth, this shall be called the Swoosh.” You know, it just sort of organically was referred to that over time, and then later trademarked.So it was a different enough logo. And there was also other efforts to—I mean, so the Nike boxes were orange, right? The shoeboxes were orange, very bright orange to contrast with the blue boxes of Adidas, right? So you again, very different—we’re trying to find different ways to differentiate that this brand is clearly not that brand, you know, or the other brands. And that was done with some forethought. Jeff Johnson has told me that that was specifically done, the orange boxes and some motions, some movements were made to make us look and be remembered as different from the establishment.Rob Strasser: From Lawyer to Nike’s Head of MarketingAndrew Mitrak: I want to ask about another major figure in Nike’s marketing history, and that’s Rob Strasser. And Strasser, he joins as a lawyer initially, then he became Nike’s head of marketing. And this just seems like an odd transition. I can’t think of many great marketers that started as lawyers. So can you tell me about this early part of Rob Strasser at Nike?Scott Reames: Yes, so he was one of—he was on the legal team. I mentioned earlier the lawsuit between Onitsuka and Blue Ribbon Sports. And he was on the working for the company, the law firm that Nike hired to represent them. And so he did such a great job and he just bonded. He bonded with Phil and some of the other Nike executives at the time. And so when the dust settled and the case had been won, at some point, I don’t know if he approached Phil or if Phil invited him, but he joined the company.And I think he did join originally to do some partly legal work, but you know, again, in the 1970s, it was pretty much all hands on deck. And I don’t know, I don’t know if I’ve ever really heard the story of how he specifically was asked to become the marketing director. I know that it was with—they had what was called the Buttface meetings. And again, if you’ve read Shoe Dog, you know the Buttface meetings. So it was fairly common every six or nine months for the senior leaders to get together at an offsite and walk in as the marketing director or the apparel VP and walk out as the footwear VP or the, you know, so they they would basically do almost a carousel. So it could be that Rob walked in as the legal rep and walked out as the marketing director. I don’t know.But whatever, however that came about, it was genius because he had an affinity for it. And that was what led to, you know, many, many—I mean, we talked about the poster program. I mean, that was essentially Rob’s realizing that this is a—that people want posters. Let’s make them posters. It’s not part of our business plan, but we can figure this out. Air Jordan. I mean, the whole signing of Jordan, that was Rob Strasser. And just the marketing in general, creating the Pro Club, you know, where people where NBA and ABA players got a percentage of some of the footwear that was sold that they wore. That was that was not done in the industry. And Rob created that. You know, so he was very much ahead of his time in a lot of things. Or maybe he just was a guy who could just analyze stuff. Maybe that was his legal brain that he could just say, “Well, this would make sense. Why don’t we do it this way?” And there’s a lot of more Wild Wild West back then.The Story Behind Rob Strasser’s Legendary ‘10 Principles’Andrew Mitrak: Rob Strasser, he penned these 10 principles. And we don’t need to read through all 10 of them or anything like that, but when did this happen? When did he write these principles? And what was sort of the context for that?Scott Reames: It was 1977. And from what I’ve been told, because Rob has passed many, many years ago, so I never got a chance to interview him. But what I’ve been told by his secretary is that she was called at the time, and by others who knew him, was he was just having a bad day. He—I’ve heard different versions of it, but essentially a couple of employees were pushing back on being assigned something that they didn’t really want to do. And Rob, that was like the last straw for him, that the people were no longer fully embracing that we, you know, you give all for the company and you just do whatever’s asked.So he went to his typewriter, sat down at his desk, just started quickly, quickly, quickly, you know, pounding out what became these 10 principles. Showed them to his secretary. She kind of looked at it like, “Oh, you sure you want to do this?” you know. And so they she made or they made a bunch of copies and he taped it or left it on people’s chairs or taped it on their doors if they weren’t there. Didn’t run it by Phil Knight, didn’t run it by anybody. It was just there the next morning when people showed up.And even though—I don’t know if we want to go down that whole Air rabbit hole, but in the movie Air, they they play those up as if they were like on every wall and they were like the guiding principles that everybody quoted all the time. And that doesn’t seem to be accurate at all. But I can tell you that almost everybody I interviewed had their original copy. They never got rid of it, right? So it had an impact. Not an overt daily, you know, it wasn’t like, “Well, as principle number four says...” You know, there was not that kind of quotation of it.But I think people appreciated that somebody, first off, clearly has a passion for it. And secondly, there’s the first effort to really try to figure out, well, what is it about our company that does make us different? And we’ve been, I mean, all the way through the maxims in 2001 and all the way to today with the five maxims now that there are, there’s been that desire to try to boil down to its essence what makes Nike Nike. And Rob’s was purely organic, purely hellfire and brimstone, you know, just and then they’ve done HR has tried to do a much more of a measured thing. And that’s to me, that was a little bit too shaved and polished, you know. So there’s but every time they do that, whoever does it, it comes down to performance, teamwork, authenticity, innovation. I mean, I’m pleased in a way that over 50, you know, 50-some-odd years almost later, the core values are roughly the same. However you want to articulate them, they’re really the same.Breaking Down the ‘Break the Rules, Fight the Law’ EthosAndrew Mitrak: I’ll read through a few of them just to give listeners context. And I’ll also post a link to them in the blog that accompanies this show. But it’s:* Our business is change.* We’re on offense all the time.* Perfect results count, not a perfect process. Break the rules, fight the law.And I’ll jump to number 10, which is: “If we do the right things, we’ll make money damn near automatic.”And I do think, like you were saying how like when HR writes it, HR wouldn’t say “damn near automatic” or things like “break the rules.” They can’t say that. Break the law, like, oh, we can’t do that. Yeah. So, but it’s funny though, like you need to have a little edge to be inspiring, otherwise you kind of like roll your eyes at it. So, it sounds like they weren’t completely formalized, but they definitely landed and there were things people would remember and keep as well. So is that kind of how they were how they were used?Scott Reames: I believe so. From the number of people I’ve talked to about it. And the hard thing or the thing that people need to be reminded of is the context of it. This is 1977. There was no guarantee that Nike was going to be Nike, right? I mean, we’d been only a company for five years as Nike. We didn’t have our own real basketball shoes at this point yet. We were mostly selling off-the-rack Blazers and Bruins that we got from, you know, different Japanese companies. So there wasn’t, other than the Waffle, the Waffle outsole, which was the one innovation that Bill Bowerman had brought in the mid-70s, when people, you know, people sometimes they laugh like, “Live off the land.” Like, yeah, like Nike has to live off the land or or, you know, “Break the rules,” you know, or it’s like they’re making it sound like we’re just, you know, we’re just kind of like completely just out there just to run roughshod on people. But we weren’t—we didn’t even know if we’re going to survive. There was some, ironically, since we’re dealing with tariffs today, there was some tariffs that were being imposed that were going to be costing the company like $25 million, which was like $24 million more than we had, right? And so it was going to potentially shut the entire company down.This is all in the late 70s. So yeah, we’re Nike now and Nike’s, you know, multi-kajillion dollar business, but not in 1977. So this was this was very heartfelt and there was a real concern that if people did start to put themselves first or start to push back on being asked to what they do, that the company may not survive. So with that context, these 10 principles, I think, resonate more.Andrew Mitrak: So you joined Nike in the early ‘90s, and this was after Strasser left, but shortly before he passed away.Scott Reames: Correct.Andrew Mitrak: Did you encounter these more like just in your role, or was it more later as a historian that you encountered them? What was when did you first come across these principles?Scott Reames: I don’t remember specifically, but I don’t recall them being—I definitely would say it was probably after I created the historian role in 2005. If I had come across them, it might have been like, “Oh, that’s interesting.” But I didn’t really know the story behind it. Again, partly because there hadn’t been a me before me, right? There wasn’t a historian who was capturing this stuff and publishing it. So maybe the people who were around from ‘77 on who did keep them in their drawer or kept them on their wall or whatever, they may have known the story, but it was not like you could just go to the website or go, you know, it’s like, it was just like, “Oh, wow, okay. What was the context of this?” “Oh, yeah, Rob Strasser.” “Who?” “Well, he died last year.” You know, it’s like it was definitely not a cohesively told story. It was more of if you knew, you knew.Setting the Record Straight on the Movie ‘Air’Andrew Mitrak: Okay, going down the Air rabbit hole a little bit.Scott Reames: Be careful.Andrew Mitrak: I know, I know. So you had mentioned Strasser being instrumental in signing Michael Jordan and the Air Jordan and the Jordan brand. And the story is well-documented. Unfortunately, like the best-known documentation of it is the movie Air. And when I first saw the movie, I did like it. I thought it was like a very entertaining movie and all that. But of course, like later on, you realize, oh, it’s it’s like almost entirely a work of fiction aside from like a few, you know, yes, Michael Jordan and Nike worked together kind of stuff. So, but as a historian, are you are you just sick of being asked about this movie, or what’s your relation to it now?Scott Reames: So I’ve had a little bit of a bell curve reaction to Air. Initially, I was like charged up. I’m like, I’m going to get the story straight. I’m going to tell the story the correct way. And I went on LinkedIn and, you know, posted a couple of links and stories. And then the next thing I know, I’m getting media inquiries. People are, you know, the Portland Monthly and Sports Business Journal want to talk to me about it. I was like, “Whoa, whoa, whoa, whoa, I wasn’t really planning to go that big.” But it was good because I was setting the record straight.And then it became like, okay, now I’m telling this for like the 40th time. So I was getting a little tired of it. But now, I still feel that it’s important that the actual story be told because there are people in the movie who played a much larger role—Rob Strasser, Peter Moore—in the signing of Michael Jordan than did Sonny Vaccaro, who was played by Matt Damon. Part of that’s storytelling, I get it. I get creative license. But I know Rob Strasser’s daughter, right? I’ve worked with her. She works at Nike. I’ve met Peter Moore’s kids, his sons, you know. So it’s like, I want them, I want their families to get their due.And you know, again, I just present what actually happened. If you—I thought the movie was actually pretty entertaining, too. Phil Knight actually told me he thought the movie was entertaining. When I asked him, because he had seen it before I had, and I said, “Well,” he said, “I thought they captured Nike in the 1984 time period perfectly.” And I said, “Oh, good.” I said, “How about accurately?” He goes, “Oh no, it wasn’t accurate at all.” I’m like... you know. So it’s just, that’s the hard part, is there are other people who were instrumental in signing Michael Jordan, and if you see the movie, you would have no idea.The ‘Cringey’ Portrayal of Phil Knight in ‘Air’Andrew Mitrak: Yeah, for sure. So I’m kind of surprised that Phil Knight was able to enjoy it because from, you know, reading his book, seeing some of his his speeches, and, you know, you were describing him as a pretty introverted person, the Ben Affleck portrayal of him, he kind of comes off as a—I don’t know, not a great look. Not that I know Phil Knight at all, and you only get so much from watching interviews or watching a speech of his, but it didn’t seem to be anything like him whatsoever.Scott Reames: The word that I was told and heard most often from people who know him and know the story was “cringey.”Andrew Mitrak: Yeah.Scott Reames: Right? That Ben played him kind of cringey or cringily because he’s not... I mean, again, in 1984, he was certainly younger, obviously, but yeah, there was just, it was a lot of license taken there. And again, I, my concern or my issue there is they could have reached out to Phil Knight, they could have reached out to me, they could have reached out to anybody, and they didn’t. You know, and again, as as people kept reminding me, it’s not a documentary, right? So it’s Hollywood.But the hard part though, Andrew, after the movie was how many people treated it like it was a documentary and said things like, “Oh my gosh, Deloris Jordan, Michael’s mom, I love her. She’s tough as nails. The way she negotiated Michael’s contract...” and I’m like, “That never happened.” So that’s to me is like, you’re you’re basically taking David Falk, the agent, and basically minimalizing him and saying that it was Jordan’s mom that did it all. I’m like, well, that would be interesting and it’d be a great story if it were true, but it isn’t. So why would you write it that way?Andrew Mitrak: Yeah, for sure. And also, reading a bit about Rob Strasser, he seems like such a larger-than-life character.Scott Reames: Literally.Andrew Mitrak: Blustery and… yeah, exactly. And couldn’t be any more different than the Jason Bateman character. And it’s like, I kind of would like to… it seems like the real person would actually be a pretty cinematic character. Like, just would have a big screen presence. So I just wonder if you were to rewrite it or do a story like this, would he and Peter be among the main characters for you?Scott Reames: Oh, absolutely. No, Rob Strasser—again, I didn’t meet him, but I’ve seen plenty of photos of him, I know plenty… I mean, his nickname was “Rolling Thunder.” He’s been described as a “walking HR violation,” right? I mean, the stuff that he would do in the ‘70s and ‘80s and the things he would say and the stuff he would throw at people, I mean, would get him written up by HR on almost a daily basis today. He was over three bills, right? So he was over 300 pounds, but I mean, it was a big man. It wasn’t like fat, he was just big. Very intimidating, very imposing.So yeah, when I heard Jason Bateman, and I love Jason Bateman, he’s one of my favorite actors, but I was like, for what role? And then when I saw him, it’s like he’s witty and urbane and Jason Bateman. And Rob, from everything I’ve heard, was just… let it all just loose. He just was like, didn’t give… he just would be Rob. And so it was like, there’s a disconnect here. That was a little strange. But the movie… again, it does capture some of the great stories, it just credits the wrong people.The Impact of ‘Air’ on Nike’s HistoryAndrew Mitrak: Do you think it’s… when it comes to interest in Nike history, do you think it’s a net positive or a net negative? Because on the one hand, you know, you’re… spent a lot of time as a corporate historian at Nike, and it’s near and dear to your heart, and you probably want more people interested in Nike history. So it’s probably good to get people to think about what happens behind the scenes and think more about the ads they see and the shoes they purchase and the brand they’re familiar with. But on the other hand, it’s obviously got so many things wrong that we just talked about. So it has to be super frustrating for you to hear these things repeated. But just on net, do you think it’s been a positive or a negative?Scott Reames: I don’t think it was a negative thing. I think it could have been more. And again, I think the story is fascinating enough that it didn’t need to have a lot of the manipulation of it. But in terms of, did it redraw and draw in a new generation of people? I think absolutely. So I’m not regretting that it was made. I’m just wishing that they had tried a little harder to stick more towards the actual happenings because they’re just as interesting in my opinion.But if it spurs other movies, if it spurs other people to become more interested in how Nike came about… I mean, Nike’s story is a fascinating story, right? I mean, to your point, you made a comment earlier about how there were many times that Nike has… you know, if you go left instead of right, you would have come to an end. It’s kind of like a video game, right? You pick the wrong door, game over. And when Phil and I were working, when Phil was writing Shoe Dog—I say Phil and I, but Phil wrote Shoe Dog and I helped to edit and helped with some materials—he was candid about how many times… I mean, we came up with more than 20 or 25 different times where, you know, if it’s left, it’s game over; if it’s right, we continue. And he just kept making the right calls, or the decisions just turned out to be the right ones. And that’s why we’re here today. There are so many other businesses that make that one wrong turn and they disappear, you never hear of them again.How Wieden+Kennedy Landed Nike as Client #1Andrew Mitrak: So around the time of signing Michael Jordan, it was in the early ‘80s that Nike formed its relationship with Wieden+Kennedy. Can you tell me about how they were founded and how Nike came to be their first client?Scott Reames: Sure, that’s a great story. So we had, as I said earlier, bounced around. We had John Brown and Partners, before that we had the Morton agency—I forgot them. So we had Morton for like a year, John Brown and Partners for like three or four years. And there was another agency called the William Cain agency here in Portland. And they had a young copywriter named Dan Wieden. Dan Wieden had worked with Peter Moore at Georgia-Pacific before that. And as Dan said, “Peter left Georgia-Pacific, I got fired.” So they kind of went their separate way. Dan ends up at the William Cain agency, and Peter ends up at Nike.So Peter is starting to need some more advertising help, and he contacts his old guy from the agency, Dan Wieden, or from Georgia-Pacific, and Dan starts writing some copy. And then Peter at some point decides he’s got too much on his own plate to do all the art direction, so he says, “Can we find somebody to do the art direction?” Well, David Kennedy was also an alum of Georgia-Pacific, and as Dave told me, he said, “I got tired of working on plywood advertising and decided it’d be more fun to work on footwear.”So Dan and Dave individually—Wieden and Kennedy, not Wieden+Kennedy—started working on the Nike account to the point where they realized that they wanted to do this full-time on their own and not be working for another agency. So they made a pitch on St. Patrick’s Day, 1982. They made a pitch to Tom Carmody and Patsy Mest, who were the advertising people at Nike, that they would start their own agency and they wanted Nike to come along as their first client.Again, this was one of those times where I just loved my job so much, because Dan, being a tremendous storyteller that he is, of course, can’t just say, “And so they signed us.” He’s giving me the whole thing about how he’d had a tooth pulled or he was about to have a tooth pulled, so he’s on painkillers. He’s already nervous about the meeting, so he’s having a drink or two. And he just said the whole thing is like this surreal circus going on in his head, and they’re pitching this idea of becoming the agency. And I said to him later, “What if they had said no?” And he goes, “Well, I probably would have quit and moved to Chicago or moved away.” But thankfully, Tom and Patsy decided that they would go with these two.And on April 1st, like two weeks later, they officially opened up their doors, if you will, although the door was like a hotel, and they were using… they borrowed a card table and a typewriter from Patsy at Nike. And that was essentially the launch of Wieden+Kennedy on April 1st, April Fool’s Day, which I adore, 1982, with Nike as its only client. They had never done a national TV ad, Nike had never done a national TV ad, and by October, they did their first couple of ads, and then, well, you know the rest. It worked out pretty well.Andrew Mitrak: Yeah, for sure. The rest is that, yeah, 40 years on, they’re still an agency partner for Nike. So it seems like amazing.Scott Reames: Winning Emmy awards and doing all these cutting-edge, amazing things.Andrew Mitrak: Yeah. It’s funny also that Georgia-Pacific was like the common thread of so much talent because I don’t know, I guess I don’t mean to be offensive to any Georgia-Pacific fans out there, but it’s kind of the most boring company possible. It’s like, what, it makes like cardboard boxes or something like that, or like tissue paper or something. It’s kind of a funny… just a funny place for all this talent to spring from that would do such creative, iconic ads out of that company.The Darkly Inspiring Origin of ‘Just Do It.’Andrew Mitrak: I have to ask about the inspiration for “Just Do It.” It famously is… Dan Wieden credits this to Gary Gilmore’s last words, which… it’s sort of a dark story. There had been this moratorium on the death penalty, and then that gets overturned, and Gary Gilmore was the first to be executed in 10 years, and his last words were “Let’s do it.” His last words are “Let’s do it” in front of a firing squad.And then 11 years later, Dan Wieden comes up with “Just do it” as a slogan for Nike, and he kind of recalls that it was Gary Gilmore’s “Let’s do it” that was the inspiration. And it just seems like a really odd connection. One that it’s not one-to-one, it’s “Let’s do it” versus “Just do it.” But also just that this odd little thing that’s a little footnote in history that’s kind of a morbid piece of history inspires, you know, probably among the best-known slogans in history, certainly in the top few. And it just seems like an odd connection. So what do you think about this story and what… is this truly how it happened or what’s your take on that?Scott Reames: Well, all I can tell you is that’s what Dan told me. And I remember my jaw opened up a little bit, like, “What?” And I said, “I’d heard rumors of different things, but this...” And he said… and then I finally said, “Are you putting me on?” And he goes, “No, no.” And he relayed the whole thing. He said, if I remember correctly, it wasn’t right yet before the firing squad, but essentially they were coming to get him from his cell, and they were like, you know, “Do you have any last words?” and so on. And he was just kind of like, “Let’s do it.” You know, I mean, “Just stop, let’s just get this over with. Let’s do it.” And he said that just stayed with him, that defiance, right? I mean, literally, it’s like, “Yes, let’s send me to my death.” You know, it just attached into one of his synapses in his brain and it parked there. From what he told me, that’s kind of the way his brain worked. Things just stayed with him.So why it was 11 years, I don’t know if his mind had been refreshed by an article that he’d read. He didn’t ever go into that level of explanation. But I know that he was frustrated that the campaign that they were working on was very disparate. It had about a half dozen different 30-second ads, and they were all interesting and kind of whimsical and funny, but there wasn’t really a thread that tied them together. And he even said to me, he goes, “I don’t… I’ve never been a tagline person. I’ve never been really one that considers that to be great moments in advertising.” But he said, “I felt like this needed it. It needed something to bring them together.” And that’s somehow that the “Let’s do it” bubbled up.Originally it was going to be “Do it.” And he told me that that felt too bossy. “Do it! Do it!” So he thought “Just do it” softened it a little bit. Like, “You know, okay, you’ve been talking about this forever, Andrew, just do it,” right? “You’ve been saying you’re going to start running after work, just do it.” It’s a little bit less, “Do it!” And it obviously worked.Andrew Mitrak: I mean, obviously it does. And it’s something where… well, one, back to the story, it just sounds like one of those things that’s like an internet urban legend or something like that. It kind of sounds like there’s just a ring of it that sounds like it’s a myth that’s debunked on Snopes somewhere. But in this case, it’s actually true, it actually happened.Scott Reames: The man credited with it told me he did it. So I don’t know how you refute that.Andrew Mitrak: No. And also, as you say, it’s like, okay, I have notes that have been tucked away for more than a decade, and I’m sure that him being the copywriter he is, he could do that too. So it makes sense, but it does, yeah, it turns into this amazing inspirational ad. It’s an inspirational slogan that you can remember. And like, sometimes I honestly say, like there are times in my life where I’ve probably been on the edge of something and just thought, “Oh, just do it.” And it probably got me over the edge to take some action. And who knows how many times that… probably a billion times in the world somebody’s made some decision kind of thinking, “Just do it.”Scott Reames: The reaction they got almost immediately was, I mean, women saying, “I left my husband or my boyfriend because I was inspired to just do it.” And it’s like, whoa, that was not part of the brief. But that was… people internalize that to be whatever it meant to them. And I think that’s why it’s still resonates so many years later because people still have an internal need for motivation. Some people are very easy to get themselves out there and other people just need, “Hey, just do it. I know you can do it, just do it.”Mars Blackmon and Michael Jordan: The Perfect FoilAndrew Mitrak: One of the ad spots I want to ask you about are the early Spike Lee ads with Michael Jordan. Do you know how those came to be? Because they’re among, you know… Nike’s made so many in history that are great, but those are just some of my favorites.Scott Reames: Well, the… Jim Riswold, right, a legend at Wieden+Kennedy, now passed away unfortunately not too long ago, somehow had the genius to realize that Michael Jordan needed a foil, right? Needed somebody to bounce off of and essentially to be the pitch person, whereas Michael then almost became the anti-pitch person. I mean, some of those original ads, I mean, literally Michael’s saying, “No, Mars, it’s not the shoes.” You know, I mean, it’s kind of weird or kind of bold for a company to say, “Our shoes actually will not make you Michael Jordan. But here’s Michael Jordan.”So, you know, and obviously, it was again very organic because Spike Lee had created the… I think it was Do the Right Thing, I think it was the first movie where Mars Blackmon appears, and he’s wearing his Air Jordans. So that was not because Nike placed them or gave him shoes, he just… Spike Lee, slash Mars Blackmon loved the Air Jordan.So that was that special sauce of Riswold and others just basically saying, “Hmm, these two could really play off each other.” And obviously, they did. And we recreated that to some extent with Little Penny and Penny Hardaway, right? So and Little Penny was from Chris Rock‘s voiceover. Same idea, right? An athlete who’s maybe not the most bold and outgoing person, so you pair them with a foil who is, right? And you get pretty much the same result. So I think a lot of times when we do ads, we do them once or twice and then we move on to something else. And Spike Lee, the Mars Blackmon-Michael pairing, just seemed to have that special “it,” right? It was like it hit over and over again. So they found different ways to bring the two of them together all the way up until, you know, essentially when Michael retires for the first time, and then we actually… Mars comes back, you know. So it’s or and then when he plays baseball, you know. It was like literally Spike Lee was almost attached to the hip to Michael through those ads.Andrew Mitrak: Well, then the other foil to Michael becomes Bugs Bunny with the “Hare Jordan” ads, and that becomes Space Jam, which is the other one I want to ask you about because that seems like such an innovative, kind of unlikely pairing as well.Scott Reames: Yeah, and I don’t, I don’t know the actual impetus for what caused them… you know, who was it that sat down and said, “You know, what if Michael played a bunch of the Looney Tunes?” I would suspect Riswold, but I don’t know for sure. But it was just a… you know, it was kind of whimsical. It was a Super Bowl ad, right? So they knew that they were going to have a bigger audience and a more diverse audience than just football or basketball players. It’d be essentially a lot of people who’d be watching it. So you want an ad that maybe is more… draws more people in. And obviously, Looney Tunes, you know, certainly who doesn’t… who didn’t grow up with them and who doesn’t love them?So the fact that it actually turned into a movie and then later a second movie and I think even a remake of the first movie just shows that whatever the thinking was, it was tapping into the right vein.The Origins of Nike’s Corporate Historian RoleAndrew Mitrak: In the early 2000s, is that when you made your transition to becoming a corporate historian for Nike?Scott Reames: 2004 into 2005, yeah.Andrew Mitrak: How did that happen? What did that look like?Scott Reames: Before that, I was in what was called Global Brand Communications. So my role specifically was to do the communications for senior-level leaders, including Phil Knight, Mark Parker, and others. And the more I facilitated those interviews, the more I listened to these guys talking about the early days of the company, the more I noticed that there were… let’s just call it variations. You know, “The Swoosh was $35,” “The Swoosh was $50,” “The Swoosh was $75.” Just little things, but I realized that because we were a very oral storytelling company, once a voice disappears, whether it’s Bill Bowerman dying in 1999 or Rob Strasser in 1993 or ‘94, those voices are gone, right? And if we aren’t capturing those stories better, we lose that amazing opportunity to really learn from them.And I was learning also a lot, Andrew, that a lot of what we accepted as lore wasn’t necessarily true. It’s like the game of telephone, right? It shifts and it drifts and it gets embellished and it gets just changed over time. And for the most part, except for a couple of the exceptions I just listed, most of the original people were still around back in the early 2000s. So I didn’t need to ask somebody else what Frank Rudy was thinking when he came up with the Nike Air idea; we could just interview Frank Rudy. And so we did. We could talk to Jeff Johnson about the name Nike and how he came up with it because he was around, and thankfully still is.So it was just more of kind of these ideas percolating together. In 2004, Phil Knight also announced, at least internally, that he was stepping down as the CEO. And again, as his PR person, I felt like, okay, well his legacy, his stories… we’ve got to make sure we capture these because who knows what… nobody knew at that time that he would still be pretty much be hanging around every day. But you didn’t know that for sure. And Jeff Johnson, right at that same time, had had a pretty bad stroke, which he’s recovered from, but it was a little bit of a shot across the bow. Geoff Hollister, employee number four, also a long-time contributor, was diagnosed with a cancer that eventually took his life a few years later. So mortality was essentially rearing its head right and left in the early 2000s, basically reinforcing my belief that we needed to capture these stories while we still could from the OGs.So that all came together. I pitched it to Phil over lunch. He said, “Let me think about it,” and a couple of months later, I got a call from the head of the department that ran the archives department saying they got a head count approved for the historian role. “Do I want it?” And I said, “Yes. Yes, yes, yes.”Andrew Mitrak: Yeah, it sounds like a dream.Scott Reames: It was a dream. I did it for 16 years until I retired.Nike’s Secret Sauce: Passion Over PedigreeAndrew Mitrak: I wanted to sort of wrap up with reflections on Nike and their marketing story, and one of the themes that comes to mind is people who aren’t trained marketers making some of the best marketing decisions of all time. That Phil Knight was really… he was an accountant, that was his background. And Rob Strasser was a lawyer, and Jeff Johnson, I am not sure what he was doing before marketing.Scott Reames: He was a social worker in Los Angeles.Andrew Mitrak: He was a social worker. And Carolyn was… Carolyn Davidson was really early in her career as a freelance graphic designer.Scott Reames: She was a student at Portland State, yeah.Andrew Mitrak: Still a student, yeah, still a student. And folks who just kind of have to learn and just have some instinct and do the right thing. And I’m guessing if you have any reflections on that, of just folks who aren’t necessarily trained in marketing, but still… I don’t know what it says about marketing, that you don’t have to be trained in it to make some of the best decisions ever in it. But what are your thoughts about that?Scott Reames: Well, I think Phil has a knack for finding people who are greater than their role, or that they’re flexible or they’re inquisitive and they… they can look at a problem that may not be something they’re classically trained in, but they’re intelligent and observant. And especially if they have a passion for and an understanding of what Nike is or who Nike is, they can articulate that maybe in different ways, but they can look at something and say, “Well, I don’t know, I’m not really trained in marketing, but doesn’t it seem to you that we should do this?”And I think the more, whether it’s the principles or the maxims, the different ways that Nike tries to get people to understand who we were/are, the more people are internalizing that and accepting it. And again, if they’re people who think beyond what’s laid out in front of them, they can somewhat extrapolate and essentially come up with an idea that maybe isn’t really something they were trained to do, but it just seems… “Well, that seems like a logical thing to do, doesn’t it? I mean, if this is Nike, shouldn’t we do this this way?” And I’m probably oversimplifying it, but it just can’t happen so often and be a happenstance, right?I mean, we’ve had this weird track record of bringing people in who were building architects and become Tinker Hatfield. He was not hired to design Nike shoes. He was hired to design Nike buildings because he was an architect. But somehow, he made that leap. And the people within the company who gave him that latitude… they could have easily said, “You’re an architect, get out of here.” Instead, it was like, “Well, that actually is not a bad idea, Tinker. What can you go with that?” That’s kind of cool.Andrew Mitrak: Super cool. No, I think it’s super inspiring. Scott, I’ve found this conversation super inspiring. For folks who want to learn more about Nike history and follow some of your work online, where would you point them?Where to Find More Nike HistoryScott Reames: To my LinkedIn page, I guess, would be the best place. I don’t do a lot of social media other than LinkedIn. I try not to just barf out stuff on a regular basis. I try to come up with something that’s topical or something that maybe is in the news, like Air. But I love hearing from people, and I love… I don’t really do an AMA kind of thing, ask me anything, but I love it when people do send a question, and I try to find the answer if I don’t know it. So if they want to find me on LinkedIn and follow me, I’d be happy to respond when I can. I will not tell you how to get a job at Nike because I haven’t applied there since 1992. But it is a great company and there are a lot of amazing stories about it.And of course, read Shoe Dog. Definitely if you have any interest in Nike, please read Shoe Dog because it’s an amazing look at the company.Andrew Mitrak: Yeah, Shoe Dog is just one of the best business books, business memoirs of all time. So thanks for your contribution to Shoe Dog as well, because it’s one of those few business books that I’ve reread and enjoyed a lot because it’s so good. So thanks for that. Well, yeah, Scott, thanks so much for this conversation. I really enjoyed it.Scott Reames: Thank you, Andrew. I appreciate it. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
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Om A History of Marketing

A podcast about the stories and strategies behind the campaigns that shaped our world. Featuring conversations with top CMOs, marketing professors, authors, historians, and business leaders. marketinghistory.org
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