A brilliant young man

A young man called Andrew Russell has produced a remarkable paper on marketing wool that everyone with an interest in the fibre should read. Not because everything he says in it is right. But because it is a perfect example of the type of thinking and analysis that should have been applied to the wool industry 30 years ago. Why is it so useful? First it points to the Emperor’s new clothes: the credibility of the leadership of the industry in the marketing function. After spending $5billion in woolgrowers’ levy funds, the industry has a brand that was recently valued at $28million. The current incumbents and their ‘research and innovation’ strategy should be judged by outcomes in terms of higher prices and higher demand. Only then will their strategy of finding ways to make a better buggy whip be seen for what it is: futile. Mr Russell's advice that the word “Merino” be used instead of "Wool" in the same way that Toyota used the name Lexus for its high end product is a near-perfect solution. I have been a marketing strategist for Toyota for 20 years. I was on the marketing team that launched the Lexus brand into the Australian market and the separation of the two brands was essential for Lexus to command its high price. It is a perfect analogy. Much can be learned from premium brands about how to manage wool as a high end product. (And don't let anyone tell you the luxury market is too small. It is the fastest growing market in the world as millions of middle class Chinese and Indians aspire to own western luxury brands.) Mr Russell’s paper is very useful because he has a grasp of the fundamental tools of strategy and uses trustworthy models. He asks the right questions and comes up with some of the right answers. He has made a valuable contribution to the industry. It remains to be seen if he gets a fair return for his labours, if only to see his ideas executed (in the marketplace, not at dawn).