Tomato Soup is Tomato Soup

I recently placed an order with Ocado for my groceries and it struck me when looking at the vast array of Tomato soups available and the difference in price for each type of Tomato Soup, that surely Tomato Soup is Tomato Soup? Well I thought so, but now I'm not so sure...

Here's a chart with the different soups and the price per gram. I was amazed at the variation...

Ocado's Tomato Soups

So why is there such a variance for simple Tomato Soup?

Well it's all to do with the Price Value Equation, I mentioned before.

Basically people perceive that each of these soups has different levels of perceived benefits, and each benefit (and subset of benefits) is valued differently. The more benefits the soup has the higher the price, although I guess a  couple of soup manufacturers have probably got their pricing wrong...

Its no surprise that Waitrose Cream of Tomato Soup is the cheapest both per serving but also per gram as it's own label and positioned as no frills, despite it being from a recognisable and (arguably) strong brand. I'm not surprised to see their Tomato & Marscapone higher up the scale as it has a higher perceived value because of its raw ingredients and its packaging.

What I was surpised at is Heinz's pricing strategy... The Organic, Farmer's Market and Touch of Basil which all appear to have more product benefits are actually cheaper than other standard Heinz Cream of Tomato formats, except the multipacks. This is the first and only time I can recall having ever ever seen Organic cheaper than the standard offering... Perhaps Ocado and Heinz have to take a look at their pricing, by either contacting me or reading some books...  Search Amazon.com for pricing strategy

How to be a great account manager

I was recently asked to help a young account manager develop their own account management skills and rather than spend hours inflating my own ego about the capabilities I have and the behaviours I exhibit in being a good account manager, I chose to put my recent coaching expertise to good work.

We started our conversation, helping him understand for himself what was important about being a good account manager and what he thought a good account manager was. To help him, I asked some straightforward questions, to help focus his attention towards his particular area. It was during that part of the conversation that I saw a light bulb go on in his head - what he thought was a good account manager didn't tally with his buyer's idea of a good account manager or indeed what his boss or his managing director actually thought a good account manager would do.

So he committed to ask a colleague who once worked as a buyer for a large retailer in the UK what she thought it would take to be a good account manager. The answer he got from her was pretty simple in it's boldness - understand my business! The buyer had been targeted on profit, waste and sales in his overall category. She was also targeted on other small areas, but she thought they were particular to her and her category.

Now he had realised that he had been potentially annoying his buyer as he was always talking about his brands' performance and not on the category and not looking at wastage or profit for her. This was a pivotal moment for him as it brought into focus what he was potentially doing wrong and how he could change it to be compelling for his buyer. Despite being on courses before about account management, it was only now that he could see for himself what success looked like, rather than all those PowerPoint slides that told him what a great salesperson should focus on.

He than started to take the same approach for his boss and his Managing Director and came to the conclusion that their goals were not aligned, as the boss wanted to achieve his sales targets (volume only) with the least amount of effort and that the MD wanted to increase profit in the short term. He felt he was a bit of a piggy in the middle between the goals of the buyer, the boss and the MD's. He felt that he had to play them off against each other...

I reassured him that this was in essence "the game" that everybody played as all parties are fighting over the contents of the table and want their biggest cut of the contents. I asked him how he could win at this game and he started to think about what behaviours it would take to be a winner in this game.

After another session he developed his own list of behaviours he felt would meet the criteria of all parties (including himself) in being a good sales manager. We then went through each of them and the sub-components, scoring himself against his standard as we went. We then discussed how he could improve his score to become a better account manager. Was it better to focus on improving every criteria or to focus on key ones? If key ones, was it better to focus on improving the score from a 8 to a 9 of from a 4 to a 6? The answer to that question is his alone and differs with every criteria, as quite simply his success will only be down to what he has the appetite to improve.

We left with the next session being about constructing a good proposal to a buyer and also to prepare for the moves in the game, between the buyer, the boss, the MD and himself and I think that session will be equally interesting, if not more so, given the frameworks around proposals and negotiating we both have...

These sessions highlighted to me a few things...

Firstly, the power of self-discovery - when that moment of awareness by one's self clears up all confusing thoughts and allows one to focus on what needs to be done. Numerous courses or people telling you what to do won't help you gain insight or confidence about what needs to be done, only by understanding yourself will that discovery be gained. That sounds a bit zen like, but it is so true.

The second thing I noticed is that his confidence in himself increased dramatically. His behaviour started to change from being a person seeking permission for his every action, to taking the actions on for himself. In short he had gained a great deal more confidence to be self-autonomous and responsible for his own actions.

The third thing, I noticed was how much I enjoyed the sessions. It wasn't about me - funnily enough I could have told her all of what he discovered himself, and to tell him that would just be me boosting my ego (just as I'm doing now!). It was all about him. I felt honoured (and humbled) to be able to witness somebody be willing AND able to take their own development seriously and develop further than in any way I possibly could alone...