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tv   Talking Business  BBC News  May 29, 2017 2:30am-3:01am BST

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of president trump and brexit. speaking at an election rally, the german chancellor said europeans must take their destiny into their own hands, while remaining friends with america and the uk. british airways says it intends to operate a full schedule of long—haulflights and a high proportion of its short—haul programme from heathrow on monday, after a weekend of disruption caused by a computer failure. it says all flights will run from gatwick as normal. thousands of people have rallied in rio dejaneiro, calling on brazil's president to step down over allegations of corruption. a supreme court investigation has released testimony alleging that michel temer took millions of dollars in bribes, and a number of parties have left his governing coalition. civilians are being hit hardest in the iraqi city of mosul, as the operation to retake the city from is militants enters its final
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phase — that's according to the un. the humanitarian relief co—ordinator told the bbc that militants were directly targeting families who remain trapped. iraqi forces supported by kurds, shia militias and us forces are pushing into western mosul, which is still largely held by the last remaining militants. eastern mosul is back in the hands of the government. alan johnston reports. in the ruins of the streets, the battle grinds on. one more shot fired and in the heat and the attack continues on the fringes of mosul old city. in the distance, the mosque held by the militants and they may well fight to the death to try to keep it. as the army presses
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forward , try to keep it. as the army presses forward, fears grow for the thousands of civilians trapped in the old city. they are in danger of being hit accidentally by the attacking government forces and the un said the militants are using civilians as human shields, targeting those who try to escape. some families to gather their children and run for their lives, risking all the dangers of crossing the frontline. these people have been lucky, they have made it out. the iraqi army is urging all the civilians in the old city to flee if they can. the un believes as many as 2000 people may attempt to get away. meanwhile, the soldiers are gearing up meanwhile, the soldiers are gearing upfor meanwhile, the soldiers are gearing up for what will surely we are brutal climax to the battle for mosul. now on bbc news talking business. moving your
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business into new markets can be a very tricky affair stop in talking business, we will be taking a look at what is involved in taking your brand global. welcome to talking business. taking a business and rand global is really quite an operation, it takes much more thanjust quite an operation, it takes much more than just a fancy website and glitzy advertising campaign all those both of those might be quite a good start. it is also understanding
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how your brand translates in other countries and finding the right partnership and distributors. how do you market and export to new regions? what does it take to take your business globally? here to discuss this are three experts. the chairwoman of media, uk, the largest media agency. the founder of innocent drinks in may 1999 and now home finder ofjamjar innocent drinks in may 1999 and now home finder of jamjar and the founder of ethical low which produces mediterranean and baby food. ——f piccolo. when you are looking off taking it somewhere, how do you pick the elements of that are pa rt do you pick the elements of that are part and do you pick the elements of that are partand said do you pick the elements of that are part and said we are going to work out which bits work? our company is found on a diet known around the world so we have had a lot of
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inbound interest when we launched in the uk. in terms of distributors and retailers saying we would love to have you. we think it is understood by the public here. it is also looking at what other players are in the market and do our existing partners in the uk already have a relationship with that market. thinking in terms of the brand, your brand had a specific profile. it seemed that way. how did you break that down into chunks so you could look at it. when it is about something that tastes good and looks good, we were responsible in conducting the business in things that were universal. whichever market, this is what people would wa nt market, this is what people would want these days. it was the
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subtleties of lending it correctly. how would you say, the wrexham will is of brands that have me stepped first mac now, more so than ever, what is essential of any brand launching globally or in one market is about brand having purpose. so the wide. we have audiences and who can pick and choose based on price, accessibility, availability and purposeis accessibility, availability and purpose is really important. and it is not high your purpose in terms of solving the problems of humanity but what they can give back to the consumers. you think that has to be a social purpose? a back story? i absolutely do. more so than ever, in the current climate, brands really need to try and look at how they are
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going to do something for the consumer. going to do something for the consumer. we are in value exchange of consumers and is really, really important. when you took innonce to other markets, whether elements of missing? people saying this is not enough? there were different aspects. the hardest thing was part of the brand was its openness and the way we communicated with people who bought the product. i think our biggest challenge was getting that device in each market engaging on out device in each market engaging on our terms device in each market engaging on ourterms and device in each market engaging on our terms and consistent with the way we started the business. did you have problems of people saying in this part of the world are people do not like strawberries or we like our strawberries to come from here? there was a sense that people wanted
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the recipes to reflect that national tastes. in scandinavia if we had a berry recipe, it had to have blueberries. one of the things that happened with innonce, it grew organically in each market and each country adopted at as they are in with a taste reflect that in it. that is an interesting aspect. each country wanting to put their imprint on it. because piccolo is sourcing from the mediterranean and it is what they want, they are looking for that kind of back story, that kind of sourcing, where we were buying the raw materials, they were interested in having that tomatoes from italy. it is part of the reason why other markets are approaching us. why other markets are approaching us. do you think there are cases where by people did not necessarily
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recognised the mediterranean diet is the alexa that we see it as? so far, we are a one—year—old company, we have had very positive response. we are already exporting into china and progress into the us next year. in terms of a large market, we have had a positive response. i am sure there will be a few markets... for example sub saharan africa were used to work m, sub saharan africa were used to work in, may not know the diet as much. i spelt ten years of my life in the united nations in food, ifeel i have a sense of which markets are right for piccolo. you may go into a market where you may have to bolt something more on to accommodate cultural identity or cultural sensitivities — can you think of cases where that has happened? when
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brands look to expand into other markets, they roll out on a geographical pattern... a regional basis. i do believe that geography actually isn't the court deciding factor of where to roll out to next. the cultural nuances are really key and important and it would not necessarily be a country next to each other that would be the same. for example, we work with halsted which is a cultural institution and we looked a cultural differences in terms of marketing and targeting consumers. you find there are some markets where they tend to avoid risks. new product launches would be difficult. those markets tend to be markets which are steeped in tradition. market that respect high
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raki is. they preferred to gravitate towards market leader. —— hierarchy. an example would be russia or israel orjapan, tend to be markets culturally it would be risk avoiders. if you were launching a brand into that market, rather than taking an approach that one size fits all, in those markets which showed cultural similarities that are risk avoidance you need a tactic. natural fruit smoothies would not present a risk to anybody but some people may not see it that way. once we squeezed the freeze into the bottle, we were geographically limited. because of the shelf life. we were physically constrained. we can get it across
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the channel and into northern europe and that is about as far as we can go. our first market was france. what about this idea of risk which carand what about this idea of risk which car and has talked about. what we saw is all markets tend to move in the same direction but there are different times in that journey so it was about getting the timing of right in different markets. on march more rapid acceptance in scandinavia than the germanic countries. scandinavia was already into smoothies. in germany everything was long shelf life so we had to change the distribution system and the view of what fruit juice could be. this is counterintuitive, if you saw something on the shelf that was very similarto your something on the shelf that was very similar to your product you can think that is already done but not
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so. think that is already done but not so. if the format is there and the customer has experience of going into the retail and finding that type of ruddock, it is definitely a bit easier than bringing an entire new concept in the sense of changing thejuice new concept in the sense of changing the juice market. with new concept in the sense of changing thejuice market. with piccolo people know where to find baby food, they are not lost. when we take it asa they are not lost. when we take it as a new brand into a new market, we are also navigating by part of the supermarket they can find us and if they are looking for baby foods they know where to go. more from our guests later when we talk about establishing key partnerships. first an example of a company making the journey we have been talking about, after losing their parents in the asian tsunami of 2004, brothers rob and paul wanted to create subtly innovative and unique driven by their personal passion after such a tragic loss. the result was gandys.
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how to spot an opportunity. tragic loss. the result was gandys. how to spot an opportunitym tragic loss. the result was gandys. how to spot an opportunity. it was inspired by travel and filled by giving back, after spending many yea rs giving back, after spending many years kind of volunteering in india and travelling around south east asia, we wanted to create a brand that would reflect that upbringing and would give people hope in our product. because it has such an unusual story in terms of ourselves at losing our parents and wanting to build a children's home, at the there are people with quite a bit of admiration about what we do and people intrigued by the brand and story. sometimes it is better to make sure you have it right in your backyard, the formula and ingredients, before going anywhere. at the start, people lock in your door and that will say we will come
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back to you in two years time so, without realising we were quite young and naive, you start dealing with countries and it takes up more time than the bigger markets. what we learnt in the last few years, more than often those people knocking on your door in fact it was not an opportunity but a distraction. what distribution do you have, who are your partners, white retailers and brands do you work with? we got a lot stricter on that and that seemed to help. the biggest mista ke's the biggest mistake's working with you. i would say the same. everyone makes mistakes. you cannot worry about making the biggest mistake as long as you don't do it again. don't make the same mistake twice, good advice. everyone is still with me. what do we mean by partners when we talk about going into a new market?
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you are already nodding, kat. what partners do you need? on the marketing side, if you have a lot of international markets, you need a partner with international footfall. we partner with waterbabies, a swim school, the largest in the uk. even though they aren't related? yes. it has been fantastic. when moms and dads go to babyschool, they get a pouch from piccolo. it also spreads by word—of—mouth. and waterbabies is also in china so we got there to. so if they trust them in the water, they might trust you with the brand. yes. we also went with the uk's
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largest ba by yes. we also went with the uk's largest baby charity. they hear about us through the nct, which they trust. the nct is a british charity. iam trust. the nct is a british charity. i am looking at a similar model with an american counterpart. you. when we talk about partners, what kind of partners do we need and what function do they perform? one of the core things is getting distribution to expand into another market. distribution is king. it does not have to be just physical bricks and mortar any more so have to be just physical bricks and mortar any more so it can be digital, it can be e—commerce. think ofan example, digital, it can be e—commerce. think of an example, jd.com, china's second largest e—commerce site. their growth was connected to a partnership they made with the biggest internet service provider who had a messenger service which
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allowed one click through from the messenger tojd.com. that allowed one click through from the messenger to jd.com. that has allowed one click through from the messenger tojd.com. that has been fundamental and a key part of jd.com. 's growth. that was a key part. cat indicated that having brand consistency with the person you are trying to work with, but also trust and making sure the customer trust them, is important. yes. on the continent, when we had to do the physical growth, we had to build a relationship with retailers. and you need to engage consumers who are going to buy it. which bits are you going to do and what will you hand over to other people? it is very tempting to hope that someone can do it all, because they will probably promise that. but you will find out there interests are slightly different and they will not see the brand in the same way you will and understand its dynamics.
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increasingly, we try to partner for physical movement for goods, but we will set up local teams who build relationships with retailers and talk to consumers about the brand. cat, the brothers from before said time and again, there are plenty of distractors. yes. we have passed up on some things because it would take too much time for us and out into servers that market. file the interest and say it is not right now because we are focusing on other market. it is about prioritising. because we are focusing on other market. it is about prioritisingm takes so much discipline. you become a hot property and everyone expresses interest in you. to say no to it, we will not explorers, it is
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a hard decision to make. but it is easy to get drowned and swamped. a hard decision to make. but it is easy to get drowned and swampedlj am easy to get drowned and swamped.” am interested in the idea that distribute us do not have interests aligned with yours. that seems counterintuitive. if you hire someone to help you, of course they have to have the same interest. it is not always true. cat said it very well, you have to share core brand values and purpose. making sure your brand keeps the correct company is really important when you are establishing a brand. there may be opportunities that allow you to go quick to market, but actually, it could be detrimental because it is not the right company, it is not the right association. they may incentivise the friendly, saying we would like to sell fewer with a higher margin and you may not be able to do that. if the "why" is not aligned, you really should not do it. the centre of the brand, is not
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just the how and what, the centre is the why, and it needs to be aligned for sustainable long—term growth. what about you ? for sustainable long—term growth. what about you? we made them for ourselves, our mistakes. ourfirst country overseas was france. we started doing it and we went to a trade show and put out a stand and translated everything in the promises of the brand onto banners, 100% fruit, no colourings, no preservatives. we said no presertif, and we could not understand why no one would come over. because it meant male prophylactics. yes. we needed people on the ground to translate. i want to talk to you a little bit about cutting losses, cat. we are seeing, especially for
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major retailers, headlines coming out of china or india. you can understand because fast—growing legislation may change. there have been instances where you have seen retailers and other brands come out of pretty mature markets, canada, even the united states. have you had that experience? what is generally would spark a retreat?” that experience? what is generally would spark a retreat? i think, especially now, those external conditions that have happened in the past 12— 18 months which are causing a lot of instability. just within the things we take for granted in terms of the landscape with retailers. especially with the recent election in the united states, record three was lucky in six months to do a launch with a brand associated with walmart. having that parent company with us is very much a positive. you can see
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how the effect in the us can trickle into the uk. have you ever had to pull back? you have to decide which country to put the most investment in. we never pull out but we change investment. the companies we invest m, investment. the companies we invest in, often what causes you to withdraw from a market is you have gone into too many. you have ever expanded, you have been overambitious. you realise you cannot cope with that breadth. so you have the double down on markets that work so be it is often internal operations. when you say you have overextended, can you notjust hire more people rather than shutting down the opportunity? more people means more money. web you'll get that from? how will you promise that? -- that from? how will you promise that? —— where will you get that. so, over extending, notanticipating competitive. or is it a change in
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legislation? it is a number of circumstances, the cost of raw materials, a change in legislation, policy, government change. there are a range of different influences. it could be, also, well, did you really understand the market? because when you expanded to another market, you absolutely have to understand what is the media landscape, what is the competitive landscape in terms of the competitors, what are the purchase cycles in this market? what is the lifestyle of the consumers in this market? what are the cultural nuances of the market. that is just as important as some of the external factors and can have an influence. just one final question, john, when you are advising the people, the companies you invest with, jamjar investments, do you say going global
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is necessary, or you do you say it is necessary, or you do you say it is up to you? we were at a meeting yesterday looking at the sides of the uk market and it was in billions. if your home market is in billions, you do not need to start about any where else until you are selling millions. it is the same anywhere else. some products are a niche but global. others you can move faster with the internet. that is it for this edition of talking business. thank you very much to all of our guests. kat, cat, and john. thank you for watching. goodbye. hello. this is the shape of things to come
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rather than what we saw for many, at least, during the course of sunday, which was a decent enough day for many. our weather watchers were out in force once again. but it really clouded up in southern parts through the afternoon and on into the evening. that came as we began to see the first signs of very humid air piling its way out of france across the channel up into the southern part of the british isles. and then late in the day, thunder storms brewing up in the south of france. some will go overnight into the southern half of britain. very muggy fare here. something much fresher into the northern parts of scotland where it will start dry on monday. that will not last all day, i assure you, because there is a general progression of the cloud and rain from the north of england and northern ireland ever further north into scotland. by the middle part of the day there will be some brightness just
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about holding on. and then down across the murray firth as well. further south than that, murky. drizzly rain. the odd burst in northern ireland. and it will be there to be had too in parts of the north of england and down into wales. somewhat drier conditions in the south. a very close feeling. and if you get a bit of brightness, those temperatures will rocket higher in the afternoon. but it may also spawn some showers in east anglia and the south—east. out towards the west and down the south—west of england that we may well see some very violent thunderstorms. with some sunshine, you could add 4—5 degrees through cardiff and over towards the london area. through the evening, a migration of thunderstorms if they do break out ever further towards the east. all the while, there's still the danger of something coming out of france pushing north on the breeze. cloud and rain is there to be had
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all the while across northern scotland. even as we start tuesday. we have been between two weather systems. a lot of cloud hanging on in the north of scotland. murky conditions. through the day, the weather front will push smartly through northern ireland, bringing rain to scotland, going through the north and west of england and down in the wales. it will take an age before it gets down to the far south—eastern corner. once that is away, pressure builds in. wednesday is looking glorious with some very pleasant spring sunshine. take care. goodbye for now. welcome to bbc news, broadcasting to viewers in north america and around the globe. my name is gavin grey. our top stories: a warning from merkel — the german chancellor says europe can no longer rely on the united states and britain. a second day of chaos for thousands of passengers with british airways. as computer failures continue. another brazilian leader under
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political pressure — thousands rally on the copacabana beach, to accuse president temer of massive corruption. no cannes do? joaquin phoenix walks off with a best actor prize at the film festival but has to apologise for his footwear.
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