Expert advice broadcasted at IBN

Former CEO and co-founder of Virgin Radio, John Pearson, gave an insightful and informative presentation to regional businesses at the International Business Network, held at Doncaster Racecourse on 25 September.

John, who has worked closely with Richard Branson and the Virgin brand through some of its most incredible growth years, offered a personal insight into the values and behaviours that make Virgin one of the most successful brands in the world.

He shared his experiences of attempting to take a product – Virgin Radio – into new markets, some of which proved a lucrative move, while others simply did not work.

“We had the idea of taking the Virgin brand and exporting it all over the world,” explained John. “We have been reasonably successful in many markets – including Thailand, India, France and Italy – but unsuccessful in some. We failed miserably in China.”

Based on the attempts to take Virgin overseas, John offered some key tips for businesses wanting to take their products to new markets, including the importance of brand recognition.

“Fish where the fish are,” advised John. “We missed this one when we started. We thought big radio markets were where there were a lot of people. What we should have looked at was where the Virgin brand was already as it is difficult to market where you don’t know.

“Everyone talks about turning a product into a brand, but Virgin had a brand before a product.”

John also spoke about the difference between establishing, innovating and improving a product in an overseas market. He explained that establishing a new product is the most difficult, stating that: “Just because there is a gap in the market, does not mean there will be a market within that gap.”

John highlighted the importance of research – especially of the right kind. “Do your homework,” he advised. “You would be surprised how many people don’t do that.

“You can go and look at quantitative data but this hard data doesn’t give you what you need. Qualitative data gives you what you need.”

John referred to UK Trade & Investment’s Overseas Market Introduction Service (OMIS), which enables companies to request research and advice on new markets.

However, he pointed out that research should be coupled with instinct. “Don’t rely on research alone – it should be there to support your gut feeling, not for you to base your decisions on.”

John used several interesting comparisons to illustrate his speech, including the second law of thermodynamics, which he referred to when he explained that Virgin Radio had chosen to use a local partner in all markets.

“Be careful of who you stand next to,” he explained. “The second law of thermodynamics states that when you put a hot object next to a cold one they will become a uniform heat. Always pick the hottest – and best – person you can to stand next to. Be careful if someone cold wants to stand next to you because they will steal your heat.”

‘Virgin Values’ was a topic John focussed on heavily, stating that company values are at the core of a successful business. He said that some companies make the mistake of putting shareholders before customers, and in turn, putting customers above members of staff. He explained that Virgin turned this on its head, putting staff at the very top. Keeping staff happy, he said, results in customers being happy, which ultimately results in shareholders being happy.

John said company values should not be forgotten when a company attempts to take its product overseas. “If you are successful in the UK and your product is successful in the UK, then why do anything differently?

“If you are thinking of exporting then look at the values that make you a success in the UK and apply those same values overseas.”

John’s presentation at the IBN was followed by a video and panel discussion of the Queen’s Awards for Enterprise. The awards recognise businesses for international trade, innovation and sustainable development. Previous winners joined the panel to explain the benefits that come with winning an award, including staff morale, publicity opportunities and the benefit of being able to use the Queen’s Awards logo on business stationary.

As usual, resident IBN poet Ian McMillan acted as compère at the event, and – unable to attend – Digby, Lord Jones of Birmingham, gave a welcome speech through a recorded video. Now minister of state for trade and investment, Sir Digby explained how he intended to use the position to help put businesses into the heart of the decision-making and policy-formation within the Government.

Sir Digby also pointed out that he would be attending the next IBN in person – although next time the event will be much further afield, in Copenhagen. Following a successful visit to Dublin earlier in 2007, UK Trade & Investment will take 40 businesses to Denmark, which is considered an excellent market for UK companies because of its strong purchasing power, ease of access and widespread use of English. The visit will take place on 28-29 February 2008.

As at all IBN events, the presentations were followed by a buffet and drinks, giving attendees plenty of opportunity to network with fellow business representatives from across the region.

To find out more about the IBN in Copenhagen, telephone 0113 394 9825 or email ibn@uktradeinvest-yh.org.uk.