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STRATEGY | LEADERSHIP | MANAGEMENT | TECHNOLOGY

Sweet Smell of Success

ALSO IN THIS ISSUE >> BACKWARD STEP FOR GENDER PAY EQUALITIES > WEATHER THE FINANCIAL STORM

WELCOME 01 No one can fail to notice the toll the recession is taking on companies and the economy. Every day big names are falling by the wayside, unable to remain profitable and undoubtedly the pressure on SMEs is immense. It seems as if everyone is looking at their budgets to see how they can be reduced. In most companies across the UK, finance directors are looking at training budgets and suggesting the benefits of immediately utilising some of the funds elsewhere or stripping them away all together.

The focus should still be on the customer big or small

It is an uncomfortable situation and one that presents HR departments, and others responsible for training staff, with a difficult challenge. How can they reach their targets and grow the company if their workforce is under-developed? Faced, as I am sure that many companies are, with this dilemma, there are some ways training should be focused and can be carried out that need not be expensive. Firstly, intelligent managers appreciate that dips in the economic cycle need companies to be flexible and alert to opportunities as they arise. Customers under pressure will welcome new product and service ideas that reflect their circumstances. They appreciate suppliers who show adaptability and understanding. Training and development needs to concentrate on these workforce qualities.

Secondly, the focus should still be on the customer big or small. A customer should never be allowed to feel that they are only as important as how much they spend. In a recession, they will leave and when it’s over they won’t come back. Training in customer relationships is more important now than at any other time. This applies to employees of all levels from the switchboard to the managing director. Thirdly, emotionally intelligent leaders are key to keeping staff motivated at all times. However, they’re critical during times of fear, uncertainty and pessimism such as these. Companies need leaders who can manage their own emotions, stay positive, anticipate risk and show resolution. Inculcating positive attitudes in the workforce has to be their overriding objective. This can be encouraged by focusing on what development opportunities are available which will help to foster the feeling amongst employees of being invested in. Providing development through internal mentoring, using senior staff to mentor more junior employees, can be very effective especially if salaries and promotion are pegged. The best will stay only if they are receiving development. Targeting your training budget at customer relationship behaviours will keep customers at the forefront of everyone’s minds and encouraging staff to contribute new business ideas will make them feel involved in the future of the business.

dis.tinc.tive [di-stingk-tiv] - adjective 1. serving to distinguish; characteristic; distinguishing: the distinctive stripes of the zebra. 2. having a special quality, style, attractiveness, etc.; notable. - distinctively a. distinctiveness n.

CONTENTS 03 04

contents 04. NEWS

24. TOUGHER DRUGS POLICY

09. BOOKMARK

26. BACKWARD STEP FOR GENDER EQUALITY

10. GADGETS

28. INDIGO MULTIMEDIA

12. DIFFERENT

30. DERWENTSIDE

15. SWEET SMELL OF SUCCESS

32. WEATHER THE FINANCIAL STORM

20. OLDER WORKERS

36. NEXUS

23. think M.

Editorial Office, Distinctive Publishing, 7th floor, Aidan House, Sunderland Road, Gateshead, NE8 3HU | Tel: 0191 4788316 Produced by Northumbria University 185550/10/06

Note: The views expressed by contributors and correspondents within The North Works are their own. The North Works and Distinctive cannot accept liability for any views placed via this medium. Feedback can be sought via the contact details above. John Graham Managing Director email: john.graham@distinctivepublishing.co.uk | John Neilson Sales Manager email: john.neilson@distinctivepublishing.co.uk | Martin Williamson Creative Director email: martin.williamson@ distinctivepublishing.co.uk | Pete Thompson Production Manager email: pete.thompson@distinctivepublishing.co.uk

04 NEWS REGIONAL MINISTER SAYS HOMES AND COMMUNITIES AGENCY IS ALREADY DELIVERING CLEAR BENEFITS TO NORTH EAST’S COMMUNITIES they are geared to retaining skills and capacity in the sector to be prepared for the upturn.” Eamonn Boylan, the HCA’s national deputy chief executive, and Pat Ritchie, its North East regional director, also spoke at the event. Mr Boylan said: “We’re progressing our four key strategic objectives with all possible speed in the North East. These are: creating our new organisation; responding to the market downturn, knowing that the old working methods simply won’t succeed and more flexible approaches are needed; maintaining the momentum of home building and regeneration programmes and embedding our innovative place-based model of working.

Regional minister Nick Brown today said the body maintaining momentum in North East home building and regeneration during the recession was already delivering clear benefits to the region’s communities.

“We’ve already responded to the recession by bringing forward £1.2bn nationally to invest in housing and regeneration, Left to right: Pat Ritchie introducing flexible grant rates, (HCA), Nick Brown MP and Eamonn Boylan (HCA) and implementing tailored packages for individual housing associations, for example. We’re seeking to develop arrangements for delivery in partnership with local authorities, and also exploring new models of investment in order to support delivery of priority projects.”

Officially launching the Homes and Communities Agency (HCA) in the North East at the Radisson SAS Hotel, Durham, Mr Brown said: “The organisation is already playing a key role in ensuring much needed housing developments across the region continue to take shape, despite the economic downturn.”

Mrs Ritchie said: “In the North East, we have advantages such as a strong identity, some outstanding partnerships and some of the best-performing local authorities. But there are also issues, such as high levels of unemployment and a mismatch between the housing people need and what’s on offer, which we’re striving to address.

The HCA, the new national housing and regeneration agency, creates chances for people to live in homes they can afford, in places where they want to live, and for local authorities and communities to deliver their ambitions for their areas. The body, whose North East headquarters are in Gateshead, provides funds for affordable housing, brings land back into productive use and improves people’s quality of life, by raising standards for the physical and social environment.

“Momentum is being maintained through us delivering programmes and interventions put in place before we came into effect, establishing new flexibilities in the development process and implementing really positive dialogues with builders, RSLs and local authorities, for example.

Attended by representatives of the HCA’s key North East partners, including local authorities, regeneration agencies, registered social landlords (RSLs) and members of the private sector, the event’s theme was the first 100 days of the HCA, born on 1 December last year. Mr Brown said: “The effect of restrictions in credit supply has limited the options for many first-time buyers, which in turn has challenged the viability of many private sector schemes. “But the HCA is providing a crucial role in the North East. Responding quickly and effectively to the current challenges in the market is essential in order to maintain an effective supply of housing for those who need it now, as well as to ensure that

“We’re also preparing for market recovery by addressing the supply shortfall and acquiring opportunity sites, among other measures, and are focusing on place, including by implementing the Single Conversation - our new way of doing business with local authorities and partners that will ensure renewal, housing and sustainable development needs are met.” Steve Stewart, chief executive of Northumberland County Council, who took part in a panel discussion about the Single Conversation at the event, said: “I welcome the founding of the HCA because it provides an opportunity to take a broader view of the needs of people in the North East. “The agency has the resources to not only provide access to affordable housing but to take an important role in the regeneration and development of communities across the region.”

NEWS 05

BE-NE TAKES TRADE AND INVESTMENT UNDER ITS WING

UNIQUETHINKING SERVES UP A RECIPE FOR SUCCESS

North East businesses planning to invest in foreign markets will receive greater help with the creation of a new partnership between two of the region’s business support groups. Business & Enterprise North East (BE-NE) has taken over the running of the North East Regional International Trade Office (NERITO), in a move that will bring overseas trade and investment support closer to the other BENE services, Business Link and the North East England Investment Centre (NEEIC). This week, 26 NERITO employees will relocate from Aykley Heads in Durham to the BE-NE headquarters in Seaham, where they will be able to coordinate with the other business support services based there. Alastair MacColl, chief executive of Business & Enterprise North East, said: “Over the last two years we have made business support in our region substantially more effective, easier to access and simpler to use. The integration of overseas trade and investment into our wider portfolio of business support products will build on that momentum and allow us to offer our business community an even more comprehensive service.” For the past two years, the NERITO services have been operated by the North East Chamber of Commerce (NECC). James Ramsbotham, Chief Executive of NECC, said: “Moving NERITO and the UKTI services alongside existing business support is the right move for businesses. At NECC, we have campaigned for simplification in the support provided for companies and this will directly help businesses accessing a range of services. We urge businesses to use these excellent services to help expand their operations globally.”

Rob Collins of the Gourmet Society, Sam Hook of Uniquethinking and Craig Potts and Mike Morley of Pan Haggerty, winner of Best New Restaurant

The North East’s finest restaurants were celebrated last month thanks to a collaboration between creative agency Uniquethinking and the UK’s largest dining promotion company, the Gourmet Society. The North East Restaurant Awards, which were held at The Sage, were attended by more than 300 of the region’s leading restaurateurs who enjoyed an evening of food, drink and some serious networking. Uniquethinking was instrumental in organising and promoting the awards including event design and logistics. They also secured in excess of £100,000 worth of pre and post event press coverage, exposing the Gourmet Society to more than four million people and increasing membership figures by 20 per cent. The society now has 50,000 members in the UK. Rob Collins, director of the Gourmet Society said: “With in-depth knowledge of the hospitality industry, Uniquethinking was the natural choice to help us stage and promote our prestigious awards and the company has been a great support to us over the last four years, taking us from a regional dining club to the largest in the UK. “The awards were aimed at promoting the wealth of excellent restaurants we have in the North East and the buzz on the evening was amazing. This is the only awards ceremony dedicated to restaurants in the region and we were delighted with the response.” Uniquethinking works with a range of clients

including Blackfriars Restaurant, Eshott Hall, Fluid Design Group, Middleton Lodge, Costa Coffee and NewcastleGateshead Initiative, not to mention St Lucia’s leading holiday resort, Windjammer Landing where Uniquethinking is tasked with marketing the resort across the UK through a mix of advertising, exhibitions, online marketing and PR. Sam Hook, managing director of Uniquethinking said: “We were really pleased to work with the Gourmet Society in staging the awards which I know we can build on next year with an even bigger and better event. The coverage secured was excellent, helped by The Journal and Evening Gazette who agreed to come on board as media partners. We also persuaded all the restaurant critics in the region to be on the judging panel which ensured buyin from all the media. “With our skills and know-how in the leisure and hospitality industry we have since launched a marketing package for restaurants, hotels and tourist attractions which is proving to be really popular.” Next month Uniquethinking celebrates its fifth anniversary with a string of new contracts including mobile phone giant Orange where the company will be tasked with promoting new stores across the North. If your company could do with some bright marketing ideas contact Sam or Kirsty at Uniquethinking on 0191 2268804 or sam@uniquethinking.co.uk

06 NEWS

STAY OUT OF TROUBLE... LOOK FOR PAIN!

KNOWLEDGE NORTH EAST We live in a time when science, engineering and technology are high on the political agenda. Here Stewart Watkins, managing director of County Durham Development Company, reflects on seizing the initiative. The Prime Minister recently declared that science is a national priority and that it should be a key element in our path to recovery from the present recession. Even more recently Ofqual, the official regulator of qualifications, exams and tests in England, has sparked a debate about standards with a call for questions which stretch and challenge students.

Many companies are acting as predicted: slashing marketing budgets, digging in and focussing on relationships and goodwill. How are you handling the economic downturn? I hope you’re not personally focusing on ‘looking core’...many seem to be working hard to not look like excess baggage. But if you consider...in your own customer base there is more pain now, more need for your innovation than ever. A dark thought perhaps, but true nonetheless. Even stranger, many of your competitors are stepping down a gear...innovating less and offering you space. Here are a couple of strategies we’ve seen successful clients implementing. Now is the time for ‘super focus’ In your own sector, I’ll bet you can see some companies struggling and others thriving. It may be good fortune but more likely to be a combination of strong financial management and a clear focus on ‘what we’re good at’ and ‘why we’re better’. Help your business to take stock; you’re already sitting on insights into key customers’ buying behaviours and current issues, pains and needs. Be very focused and targeted. Looking at the most opportune groups of customers, (those in more robust, stable markets, those with more resources, or least barriers to purchasing), build a simple plan to target and resolve their ‘changed pains’. In essence, help your business to select niches and invest a small amount in really offering new, innovative and carefully targeted offerings to soundly beat your competition in small segments.

Build loyalty through flexibility It’s critical not to compete primarily on price and to maintain brand value and positioning, but everyone is seeking value for money. It may be worth taking a look at the range of price entry points for your products and services. Listen to your customers’ concerns and avoid these becoming barriers to purchase. Rather than cut prices, consider alternative strategies for risk sharing and supporting your customers cash flow. Perhaps consider, is it better to sustain longer credit terms, underwrite operating contracts, spread payments and offer a wider mix of pricing points. Importantly, package and communicate these effectively and at the right point in the sales process. This may be a critical decision factor which differentiates you from the competition. There is likely to be a kick back when you reach the end of the tunnel too... research suggests customer loyalty is strong and you’ll get a substantial lift in your business at the end of the recession if you are prepared to be flexible now. The conclusion then: be sensitive to your customers needs and find innovative ways to support them through these difficult times. Let your innovation add value and differentiate you from the competition. think M. is a successful strategic marketing and research company who specialise in helping businesses large and small practically develop opportunities and grow. There is much support available in the region to assist. If you would like to discuss your needs, call 0191 211 1957 and ask for Katie, or email katie@think-m.co.uk.

We need scientists – and we need well qualified scientists. More young people studying challenging science and technology in our schools and universities is the best way to produce scientists able to keep the UK competing on a world stage. We need to value our universities as economic assets - generators of cutting-edge technological advances and innovation at the heart of the region’s science, engineering and technology infrastructure. The North East Technology Park, NETPark, at Sedgefield in County Durham, is another key element in the north-east’s strategy to expand its knowledge economy and attract highvalue jobs. And NETPark has a wider role - as an innovation connector that will engage communities, particularly through education, awareness raising and access to employment programmes. To inspire university students who look at NETPark and see postdoctoral work blossoming into successful spin-out companies and to inspire school students to see science, technology and engineering as a potentially fulfilling and rewarding career choice.

NEWS 07

FROM FACTORY WORKER TO MUSIC MOGUL A factory worker has swapped mechanics for microphones after setting up his own music company in the North East. Former production engineer Andy Bloomfield left his job in the automotive industry, where he’d spent the past 18 years, to set up Break Free, a music management firm designed specifically to represent talent from across the North East region. “Working on the production lines wasn’t a bad job,” said 42 year-old Andy, “but it just got to the point were I knew it was time for a change. I’ve always been passionate about music, particularly the North East music scene, and I wanted to use that passion to help artists whose talent is sadly going unnoticed.” Colin Stratton, North East FSB Regional Chairman

FSB CALLS ON LOCAL AUTHORITIES TO LISTEN TO BUSINESSES The Federation of Small Businesses (FSB) is to roll out a new Small Business Engagement Accord in the North East which would see SME’s included in decision-making at a local level. Launching its new Small Business Engagement Accord, the FSB welcomed the involvement of LA’s in an initiative which sees them signing up to 14 Accord Principles which promote the importance of listening to small businesses. The principles include nominating business engagement champions from among the business community and within the council, as well as encouraging greater consultation with a wider range of business and community leaders. Colin Stratton, FSB Regional Chairman for the North East of England: “During this economic slowdown, it’s absolutely crucial that our North East Local Authorities proactively seek the views of small businesses and listen to their needs. In every area where a local authority has signed the Accord, small businesses will be able to put their views and concerns directly to decision-makers. The Accord represents a win-win situation for our Local Authorities and our local businesses. By following the principles, the LA’s can ensure that the voice of small business becomes central to any future consultations and also puts in place a structure to help ensure that councils and businesses work in partnership to ensure the continued growth and prosperity of the North East economy.”

Andy, who lives in Dunston near Gateshead, knew that setting up an independent record company wouldn’t be easy and approached his friend and former frontman of techno-band N-Joi, Nigel Champion, for help. Last November, just a couple of months after leaving his factory job, Andy signed singersongwriter Oonagh Cassidy as the first act on the Break Free label. Her debut album, the first official release by Break Free, is expected to be made available within the next couple of months and Andy hopes it will help open people’s eyes to the talent available in the North East. “Oonagh is undoubtedly a very talented artist,’ said Andy, “and I know that there are many more like her just waiting to be discovered. The problem with larger record companies is that they are often unwilling to take a chance on anyone and it can be hard for struggling artists to catch a break. “Break Free is focused solely on finding the very best the North East has to offer and working with them to develop a long-term music career on a national and, if possible, international scale.”

BOOKMARK 09 The Storm This is the bestseller on the credit crunch. In this brilliant short book,Vince Cable, ‘the sage of the credit crunch’ (“Daily Telegraph”) explains how we got here and where we’re going. In “The Storm”,Vincent Cable explains the causes of the world economic crisis and how we should respond to the challenges it brings. He shows that although the downturn is global, the complacency of the British government towards the huge ‘bubble’ in property prices and high levels of personal debt, combined with increasingly exotic and opaque trading within the financial markets, has left Britain badly exposed.Yet we need to be vigilant in our response to the dangers confronting us. Times of crises inevitably bring forth false prophets who offer easy panaceas and identify scapegoats. However, Cable shows that an insular response to the current crisis would be a disaster and urges us to resist the siren voices that promote isolationism and nationalism as the answer to economic woes. He argues that policy makers must keep their faith in liberal markets if the remarkable advances in living standards, which are now being extended to the world’s poorer countries, are to be maintained.

Get to the Top on Google From one of the United Kingdom’s leading search engine optimzation (S.E.O) experts who has worked with major companies like Amazon.com, the most comprehensive, accessible and up-to-date guide to S.E.O available. Written in a readable style for the beginner, but at the same time comprehensive enough for the skilled marketer, Get to the Top on Google will show businesses, both large and small, how to improve their search engine rankings, leads and sales. Get to the Top on Google is the first book to comprehensively address all aspects of modern day search marketing through a genuinely structured methodology, including an assessment of the impact of Web 2.0 on internet marketing strategies. By landing the links in a well-managed link-building campaign you can go from an also-ran to world champion by establishing both the importance and relevance of your site.

“Dragons’ Den”:Your Road to Success 4 million people watch the Dragons do business on TV. Now you can read their stories and learn from them Duncan Bannatyne, Deborah Meaden, James Caan, Peter Jones and Theo Paphitis are the stars of TV programme Dragons’ Den, but they haven’t always been millionaires and TV stars. Here, they reveal the secrets that have taken them from nothing to the very top. The Dragons tell their personal stories of success and failure. They also give advice on how to succeed in business and in life, including how to make money from scratch. If you’re looking for advice on making the most of your life or your business, this is the perfect book for you.

10 GADGETS 1. Philips Essence 42PES0001D: Just 38mm deep, the 42-inch essence boasts truly sensational visuals. 2. Siemens Gigaset S685 IP: Want free calls? 3. Nokia N97: The Nokia chef is serving up a scrumptious, feature-packed N97 “mobile computer”. 4. HP Pavilion dv2: The HP Pavilion dv2 is a solid little all-rounder.

4 2

1. Philips Essence 42PES0001D

3. Nokia N97

Just 38mm deep, the 42-inch essence boasts truly sensational visuals and several very neat design touches. A detachable speaker bar minimises its “presence” for people with separate sound systems. It also uses a multimedia box to house the three HDMIs and TV tuner, meaning the actual screen is slim, lightweight and clutter free.

The Nokia chef is serving up a scrumptious, feature-packed N97 “mobile computer”. Tasty ingredients on offer include the touchscreen from the Nokia 5800 Tube - an overdue first for the N-series, plus a web-friendly slide out QWERTY keypad a la the E-series, and the fabulous camera and multimedia features you’d expect from previous N-series releases.

But that’s not the limit of Philips’ thoughtfulness. If your DIY is a touch haphazard, you’ll love that it ships with a uniquely curved wall bracket that compensates for errors made when attempting to drill the bracket holes level. it’s the icing on a resplendent TV cake.

While still a really great all-round player, the N97 isn’t quite the sum of its brothers’ and sisters’ borrowed parts. It’s still a case of choosing a phone that does everything very well, or a one that does a couple of things brilliantly. The N97 is the former, but is definitely Nokia’s most complete handset yet.

2. Siemens Gigaset S685 IP

4. HP Pavilion dv2

Want free calls? You can connect the Gigaset to your router to make free VoIP calls to other compatible phones; just plug in an ethernet cable and sign up for a VoIP service - but not Skype (ie: the one everybody actually uses).

The HP Pavilion dv2 is a solid little all-rounder that gives a lot more power than other ultra-portable netbooks and the kind of portability that used to be reserved solely for far more expensive mini-laptops. If it’s serious computing muscle you’re after, you’ll have to look elsewhere, but for day-to-day computing tasks, coupled with some entertainment functions to keep you occupied when you’re on the move it’s ideal.

Other features include VoIP calling, SMS, digital answering machine and bluetooth headset connection.

12 FEATURE

Navigating the communica We are entertaining a period of the most profound change. Winding back over the past year there’s been a seemingly never-ending trail of watershed turmoil; from the Northern Rock debacle signalling the start of the credit crunch, to record fuel and heating price increases, even a food crisis. And online advertising revenue is now officially outstripping traditional media revenue. Consumerism itself is also seemingly at a crossroads. It has even fallen to the unlikely figure of Sir Martin Sorrell at WPP to seriously question - for the first time - in a series of little reported but quite extraordinary speeches and seminars, whether current attitudes to consumption can continue as notions of ‘minimalism’, ‘responsibility’ and ‘sustainability’ take on significant currency. Even Americans are now starting to reject hyper-consumerism as not just excessive, but actually damaging to themselves, others and to the planet. And so in this increasingly complex and fragile world, a reordering of the current model of mass marketing and consumption is inevitable.Tune in to the effects of climate change, the age of lessening materialism and the digital revolution - or risk all. Communications planning is no longer about writing a TV commercial or double page spread and shortly before presenting it asking the media department to knock out a coverage and frequency schedule. Today there are many more channels of advertising and communication – from events to emails, from fly-posting to text-messaging, by way of publishing magazines and inserts, running banners on a web page, blogging and social networking, sponsorship, sales promotions, product placement, field marketing and PR. If the medium is at least partly the message, then how people receive messages is increasingly central to how they will respond. Integration is the science (and art) of making brand connections, not filling spots and spaces. For a brand to survive and thrive today it must blend a mixture of activities across a range of channels in order to get people to build a rich and coherent picture of what it’s about. Using complementary

communication channels to stimulate people to do something that enhances the brand. A great creative idea must always be at the centre of an integrated strategy – think ‘My M&S’ or Honda’s ‘The Power of dreams’. Great central ideas can transform the fortunes of a brand by working across a range of issues seamlessly through a range of marketing channels. And in principle a good idea costs no more than a poor one.You can almost guarantee a certain result by buying share of voice and frequency of impacts. But making the most of your money is not about making impressions. It’s about making more of an impression. Cadbury’s now legendary ‘Gorilla’ ad by Fallon being a case in point. And dare I say Different’s own guerrilla public service campaign for Bonfire night (forgive the pun) which helped reduce firework and bonfire injuries by 80% year-on-year through encouraging and reinforcing safer behaviour? Finally, you have to make the appropriate investment to communicate across all available touch points to engage the people you want to talk to. Being centred on one idea means that when you interrupt people’s lives, with something they weren’t sitting around waiting to hear, you will have a better chance they will get it. For example, whereas a movie, DM piece or magazine article can unfold a complex story, a piece of advertising can’t. It has limited space and time to get its point across. This is why in integrated communications the sum is greater than the individual parts. Having a single central idea allows people to get what it’s about. From which point they can make further rich connections. 100% of people will never get the idea, but to survive and thrive today you do want the people who do to get it 100%.

DIFFERENT 13

ication crossroads Author: Ben Quigley, Managing Director, Different

Stop it…. Some children are stuck in a destructive cycle. But you can make it stop. Show that you believe in children no matter what.

‘Help Barnardo’s believe in children’ As one of the UK’s leading children’s charities, Barnardo’s believes in children regardless of their circumstances. We believe in the abused, the vulnerable, the forgotten and the neglected. We will support them, stand up for them and bring out the best in each and every child. “Barnardo’s work in the North East has covered three centuries - the 19th, 20th and now the 21st. We began with children’s homes, but now we run over 50 different services across the region, including counselling for children who have been abused, fostering and adoption services, vocational training and disability inclusion groups. Our area covers Northumberland, Tyneside, Wearside, County Durham and Teesside and on average, we work with around 13,000 children, young people and their families a year. Will you help us help North East children? We are looking for people interested in fundraising for us by forming professional fundraising groups. Could you organise an event, a Ball, a murder mystery night? Do you have skills which could help us help disadvantaged children get the best out of life? For more information, please contact Suzi Campbell on 01748 850939.

STRATEGY 15

Sweet Smell of Success Imagine the smell of freshly mown grass and the memory of summer that it brings - well thatâ&#x20AC;&#x2122;s exactly what ScentAir is launching into the UK - Scent Marketing. > > > > >

16 FEATURE Welcome to the new frontier of marketing. ScentAir UK is bringing the entire concept of sensory branding into the UK ….and it smells great. Our sense of smell is handled by the part of the brain that processes memory, so scent often triggers an emotional response and positively impacts on both sales and a person’s contentment rating.

times, soared by nearly 50% ! Aromas mean people solve problems faster and they make productivity rise.*

ScentAir has developed powerful ways of delivering scent to the office environment, ways that deliver hard results that are being felt from Disney World in Florida to Bloomingdales in New York - and then on to the worlds of offices, casinos, international hotel chains, shopping malls and even dentists! Research in the Journal of the HumanEnvironmental System indicates that the addition of scent to an indoor environment significantly increases the satisfaction rate of the building occupants. A Las Vegas casino infused a pleasing scent into its slot machine area and revenue, in scented

Scent is the sense linked most closely to memory people recall smell with up to 64% accuracy, even a year later and tend to become emotional when exposed to the scents of their youth.

Over 1500 scents are offered and equipment is provided free on loan. Scent costs are low and machines are programmed to release fragrance on a timed schedule or triggered by motion sensors.

Harnessing this power, and using it to win attention for products outside the perfume and potpourri industry, is the goal of this emerging, sense driven revolution. It’s being headed by ScentAir in over 80 countries and is one of the World’s fastest growing marketing brand tools!

* a few background facts... A Japanese company discovered that lavender and jasmine soothed data entry operators, while lemon increased production by up to 54%. Volunteers in a study by the Smell and Taste Treatment and Research Foundation of Chicago performed puzzle-solving tasks 17% faster when exposed to a floral scent. The Las Vegas casino infused a pleasant scent into an area containing slot machines and compared turnover in times with and without the scent. Total revenues during the scented times were 45.11% higher! 84% of people are more likely to buy the shoes in a scented room and many said they would pay around $10 more for the product in the scented environment! Peppermint - researchers found that peppermint infused oil in the air reduces fatigue. When the scent is inhaled, the capillaries constrict then dilate, sending a gentle rush of blood through the body and a boost in energizing oxygen. Vanilla - has a calming effect because it boosts the serotonin levels in the brain. Lavender - this scent reduces the stress response in the body and relaxes the muscles.

STRATEGY 17

18 FEATURE

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The human sense of smell (or olfaction) is 10,000 times more sensitive than taste

There are over 1000 different types of “olfactory receptors” in your nose (compared to just four types of “rod / cone” in the eye), so it isn’t surprising that smell is your most powerful and acute sense. These receptors communicate directly with the brain’s Limbic system, which controls our emotional and sexual response as well as our artistic abilities. Aromas link directly into memories and emotions. Think of the smell of a new born baby or the ink from a freshly printed magazine – and you are there. The human sense of smell (or olfaction) is 10,000 times more sensitive than taste, with around 400,000 identifiable odours present in the world.Yet often we are left with a tip-of-the-tongue feeling – a smell we recognize, are stirred by, but can’t quite place. Aromas break down into three main areas; Top Notes; which give the first impression of a fragrance, this initial stage is the most volatile. Middle Notes; where, a few moments after a fragrance is encountered, the heart of the fragrance is revealed. Lastly, there are Base Notes, which become more pronounced over time and is the longest lasting part of the fragrance. Each of these is divided into classes where the different types of smell belong – such as orange and lemon, which belong to the citrus class of the Top Notes, and the cedar and mossy smells from Base Notes’ woody class. Exposure to these triggers strong emotional responses – Melon draws feelings of friendliness, youthfulness and happiness.Vanilla makes Americans think of comfort, whereas the French consider it elegant and feminine. But in some Asian countries, it is felt to be sticky and syrupy. Woody (and musky) aromas such as Sandalwood score highest for sensuality among U.S. females. When Rolls-Royce buyers began complaining in the mid - 1990s that their new cars didn't live up to their predecessors, researchers tracked the problem to its source - the smell! Using a 1965 Silver Cloud as a reference point, the company recreated the aroma and now sprays it under the seats to re-create the scent of this classic car. Scent marketing is an immensely powerful tool that offers the ability to sculpt a unique environment for a company, rounding-off their customers' experience by engaging memory and emotions through the sense of smell. Aromas trigger memories. Memories influence emotions. Emotions set moods. And moods dictate reaction. It’s a powerful reality.

20 FEATURE

MANAGEMENT 21

ECJ decision will disappoint many older workers but CIPD warns that the days of the default retirement age are numbered Today’s European Court of Justice ruling on the Heyday case will come as a disappointment to many employees approaching retirement age who are being forced out of the labour market irrespective of their desire to continue working, says the Chartered Institute of Personnel and Development (CIPD). The ruling, which finds that the Default Retirement Age (DFA) does not contravene the European Framework Directive on equal treatment, means experienced and capable older workers lose out by not having the choice of staying on in employment. Mike Emmott, CIPD Employee Relations Adviser comments:

“Hopefully the government will realise sooner rather than later that scrapping the Default Retirement Age is a must. Not just to meet the growing demand for working beyond 65, but also because it is hugely beneficial to business and the wider economy. “Compulsory retirement ages can leave organisations blindly waving goodbye to valuable skills and experience. They do not just hit people at retirement age. They can lead to lazy management of workers for many years as older employees are filed by their managers under the ‘soon to retire’ category. “Our research shows older workers want to keep working, and this desire grows as the retirement age looms ever closer. Much of this is due to financial reasons in these days of squeezed pensions and longer life expectancy. Whatever the reasons, getting the most from these experienced employees should be good for business, good for the economy and good for the well-being of the workers themselves. “Although this downturn appears to be hitting younger workers much harder than their elders, there is still a compelling case for a thorough government review of the default retirement age, by which time hopefully the economy will be in better shape.” A CIPD research report Future Demand for Working Among Older Workers finds that just under two-fifths (38%) of individuals intend to work beyond the age of 65, with most (68%) citing financial necessity as the main reason for staying on. A further 31% of individuals would continue to work beyond retirement age if their employer allowed them to work flexibly.

think M. 23

REGIONAL INNOVATION SCALES UP FOR SUCCESS “For the team at think M., it is a pleasure to be involved in supporting this regional innovation and we continue to be encouraged by companies like Weigh-ahead who add to their accomplishments in defiance of bleak economic commentary”

Think M. staff: Joanna, (Marketing Strategy), Kate (Communications), Katie (Business development), Graeme (Market research), Adam (Channel strategy) Weigh-ahead: Ged (Managing Director), Carol (Commercial Development Director)

Consider this all too familiar airport scenario. Upon reaching the front of the check-in queue, your penance for over packing is dealt. Your fears are confirmed; your luggage exceeds weight restrictions, but what can you do? Repack your bags in a hurry? Leave some belongings behind? Resignedly pay excess charges? Here’s where Weigh-ahead come in… Weigh-ahead are the entrepreneurs behind a range of brand new patented systems that allow passengers to weigh their luggage before they reach airport checkin desks, avoid charges and still get all their belongings on-board! Weigh-ahead UKENA recognised the opportunity to build a business based on solving this problem for passengers and offering airports a way to enhance their services and generate extra revenue. With extensive commercial marketing support from think M., Weigh-ahead were able to develop a technologically advanced, accredited system and a solid strategy for realising returns. ‘think M. have been critical to our success. The team has walked beside us, and has been very creative in helping us engage and secure commercial interest

from airport operators and related target customers’ Gerard Stewart, Managing Director, Weigh Ahead Results are impressive. Weigh-ahead recently secured a major six figure contract with the multi-national airport services provider, Bagport GMBH. In partnership with this international giant, Weighahead plans to enter airports all across the world. In 2009 the partnership intends to install machines in pre-selected airports across the UK as well as running pilot installations in the USA. “We are very positive about marketing Weigh-ahead systems worldwide.The offer fits perfectly into our future designs and can contribute much in terms of helping us to establish ourselves as a global niche specialist” Sven Stohn, Chief Executive, Bagport Group Those familiar with the products are very optimistic about the future and potential to continue evolving the proposition with sustained innovation and a sharp eye on business and end-user needs.

celebrating their success to date. The award reflects Weigh-ahead’s achievement in developing a concept that is of true value to passengers and airports alike. think M. , who have been instrumental in consolidating the relationship with Bagport, continue to support further market channel developments for Weigh-ahead. ‘For the team at think M., it is a pleasure to be involved in supporting this regional innovation and we continue to be encouraged by companies like Weigh-ahead who add to their accomplishments in defiance of bleak economic commentary’ Joanna Westerman, Senior Marketing Executive, think M. There is a diverse range of funding and support available in the North of England to accelerate commercial development of such opportunities. If you are looking to develop your market, access new clients, or introduce new products and services, give Joanna at think M. a call on 0191 211 1957, or email joanna@think-m.co.uk to see how our growing team can assist you.

Weigh-ahead UKENA have also been announced as the winners of the Business Start-up category in the North Tyneside Small Business Awards, receiving recognition for innovation in their new business and

If you would like to find out more, or to discuss how we can help, please call think M. on 0845 838 7372. 39

24 FEATURE

Tougher Health and Safety demands tougher drugs pol New legislation that has come into effect this month will introduce tougher penalties on businesses that breach health and safety regulations. According to Concateno, Europe’s leading drug testing company, the new legislation adds a further incentive to businesses considering the introduction of an effective anti-drugs policies and drug testing in the workplace. The Health and Safety Offences Act 2008, which was announced in last October and came into effect on January 16th 2009, provides courts with increased sentencing powers that could include prison sentences for individuals found responsible for health and safety breaches and increase the maximum fines for offences. Neil James, head of sales for Concateno’s workplace division said: “Alongside the tougher legislation for corporate manslaughter that has been introduced in recent years, the new Act makes it vital for companies to manage down risks in their businesses, and also to demonstrate that they have undertaken due diligence to identify and prevent causes of accidents.” He added: “Employee drug misuse can be a contributory cause of accidents at work and a company’s management could potentially be held responsible if they haven’t taken sufficient action. Businesses have the ability and responsibility to proactively address this situation.” To be effective, a company’s drug and alcohol policy needs to include deterrents against the inappropriate use of drugs and alcohol – through education; Employee Assistance Programmes that help employee address their drugs problems through appropriate support and treatment; and through testing, whether pre-employment, at random, or following incidents.

MANAGEMENT 25

ty Law policies

26 FEATURE

ASHE RESULTS REPRESENT A BACKWARD STEP FOR GENDER PAY EQUALITY, BUT BLAMING EMPLOYERS IS TOO SIMPLISTIC Figures from the 2008 Annual Survey of Hours and Earnings (ASHE) released by the Office for National Statistics (ONS) show that women have slipped further behind men in the pay stakes. Gerwyn Davies, Public Policy Adviser at the Chartered Institute of Personnel and Development (CIPD), says this presents a challenge to employers and policy makers but cautions against simplisticly attributing the gap to poor employer practice: “Today’s figures showing that the pay gap between full-time male and female employees widened in the year to April is most disappointing and a blow to progress towards equality. The poor year for women in the workforce is further exacerbated by relatively small increases in the pay of part-time workers and public sector workers, categories of work where women are in the majority. “The figures demonstrate that even greater effort will need to be made by employers and government to narrow the gap. But it is simplistic to conclude that the gender pay gap is the result of overt pay discrimination by employers. The gap mainly reflects variations in the type of jobs done by men and women, different working patterns and, in particular, the impact of child and elder care on womens’ career choices and hours of work. All these factors need to be taken into account when devising changes to policy and practice designed to close the gap.”

LEADERSHIP 27 “Today’s figures showing that the pay gap between full-time male and female employees widened”

28 INDIGO MULTIMEDIA

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Quirky Northumberland store attracts orders and raises profile around the world thanks to its new website

NORTHUMBERLAND SHOP ATTRACTS WORLDWIDE ORDERS ONLINE RE, an eclectic lifestyle interiors store based in Corbridge, Northumberland, sells a wide range of unusual, REcycled and REscued objects and now shoppers from as far afield as the USA, Hong Kong and Australia are ordering goods through its online shop - www.re-foundobjects.com Inspired by their background in fashion and globetrotting experiences Simon Young and Jenny Vaughan started the business in 2003. Jenny said: “We set up the shop using a converted workshop behind a filling station in Corbridge and swiftly launched our first mail order catalogue in May 2004. “However we always understood that the internet would be an important part of our sales and marketing strategy, and we were keen to have an online presence that captured the fantastic atmosphere of the store, while allowing customers to browse and buy our goods.” Indigo Multimedia, a new media agency based in Newcastle-upon-Tyne, was commissioned to design and build the website. Simon said: “The team at Indigo came up with some really creative and exciting ideas on how we could develop the online sales side while ensuring the website was simple for both us and our customers to use.” Following the launch of the site, visitors quadrupled and orders placed from customers based all over the world started flooding in. Jenny explained: “We were receiving hundreds of orders per day through the website. The site let the business operate 24-hours-a-day seven-days-a-week. Orders are processed automatically and are linked to stock control. Indigo also set up an online system to let us check order history and user accounts. Without this technology we would have found it very difficult indeed to meet the high demand.” During the course of the past year the website also helped raise the profile of RE on a national and international scale. Using carefully thought-out SEO techniques coupled with a thorough linking strategy, the reputation of the website continues to be built up. Andrew Graney, web director at Indigo Multimedia, said: “The website is optimised for internet search engines such as Google and Yahoo, and is more likely to be

listed in search results. And by linking to other websites that are relevant the website has achieved a level of authority and credibility with the search engines, supporting online sales targets.” It is this integrated approach that has helped RE achieve recognition nationally and internationally. Press coverage has been extensive and includes pieces in glossy magazines such as World of Interiors, Elle Decoration, Country Living, and Homes and Gardens as well as coverage in weekend supplements and local publications. Jenny said: “Obviously we always do press previews for new products and collections but we also find that the website is used extensively by the media.” All the hard work has paid off; www.re-foundobjects.com now attracts an average of 20 thousand page views per day, 90% of all mail orders are now taken through the website, and the businesses’ profile has heightened significantly. The website was even short-listed for Yahoo!’s Finds of the Year campaign, an annual award for the most interesting and innovative websites. To find out how Indigo Multimedia can help you create a website, please contact Andrew Graney on 0191 209 2100 or visit www.indigomultimedia.com

30 FEATURE

DERWENTSIDE 31

£6.8 MILLION OFFICE DEVELOPMENT AT TANFIELD Work is now complete on Derwentside District Council’s most ambitious development project at Tanfield Lea, near Stanley in Co Durham. The £ 6.8million Tanfield Lea Business Centre has been made possible with funding from the District Council, One North East, County Durham Economic Partnership (CDEP) and the European Regional Development Fund (ERDF). This iconic development will provide 40,000 sq ft of modern office and workshop accommodation for businesses in a revolutionary, three-storey building which is targeted at both new and existing businesses and will include a new approach to lettings in order to encourage young entrepreneurs to pursue self-employment. n Facilities in the business centre will include: n 3 floors of modern office space including a communal atrium with kitchen

n n n n n n

facilities 45 office units ranging in size from over 100 to over 1000 sq ft Fully equipped conference and meeting rooms for hire Fully manned reception providing a wide range of office services Telephony and Broadband connectivity Car parking facilities 24 hour access to individual office units

The business centre is located in close proximity to the A6706, direct link road to Gateshead and Newcastle. Derwentside District Council’s Principal Development Officer, Ross Bullerwell, said “This major development will have a significant impact on the economy of Derwentside and ensure that public sector developments continue to lead the way in encouraging economic growth and sustainability in semi-rural locations”. The official opening of the new centre took place in March 2009. The ceremony was performed by Derwentside District Council’s Chairman, Councillor Eric Turner and Leader, Alex Watson as one of their last duties for the District. Interest in this iconic building has been very encouraging with enquiries for modern office accommodation being received from businesses across the many sectors throughout the North East. ROK Area Leader Neil Jukes said “This is a flagship scheme for ROK and we believe that this is a key project to continue the growth and redevelopment of the area. We will be employing local people to successfully deliver this project over the next year. “ Tanfield Lea Business Centre has achieved a ‘Very Good’ BREEAM rating (Building Research Establishment Environmental Assessment Method), demonstrating the level of environmental design excellence. For further information contact Andrea McGuigan on 01207 218219 or visit www. tanfieldleabusinesscentre.com

32 FEATURE STRONG INTERNATIONAL LINKS CAN HELP WEATHER FINANCIAL STORM Strengthened international links, especially with emerging markets, can help law firms weather the economic crisis, says the Law Society after the International Marketplace conference. Although the UK is now in recession, growth rates in much of the rest of the world are holding up, so law firms, of whatever size, with balanced international and domestic practices are best placed to weather the slowdown over the next couple of years. The UK is also expected to become an even more attractive location for foreign direct investment as many sectors consolidate and sterling priced assets become cheaper, which will present potential opportunities to form relationships with international clients at home. The Law Society warns that against this shifting business backdrop law firms need to think not only about short term tactics to shore up fee income but also about longer term strategy to ensure they emerge in a more competitive position from the economic downturn - developing an international perspective and capability will be key to this. Alison Hook, head of the Law Society’s international department, says: “The idea behind the International Marketplace conference was to get the perspective of some expert commentators on both the short and longer term prospects for international legal business, as well as to highlight developments in some of the world’s most exciting emerging markets. “Lawyers and law firm representatives came in to join us from over sixteen different jurisdictions, including Russia, the UAE, India and China, and we have government economic and investment attaches attending from fast growing economies such as Singapore, Saudi Arabia and India. Any law firm gathering intelligence on international business development would have found this event invaluable.” As well as a number of networking opportunities for law firms, the conference involved workshops designed to exchange best practice and ideas in areas ranging from training and retaining staff in a global market, cross border marketing, the development and maintenance of international strategy and good relationship management. Alison Hook says: “These workshops were useful not only for lawyers leading the international function within their firms but also for specialist professionals in areas such as human resources, marketing and business development. We will also use any ideas that these sessions came up with to develop further our own services for members and to canvass views on some ideas we are already looking at to support our members internationally.”

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Although the UK is now in recession, growth rates in much of the rest of the world are holding up 39

36 NEXUS

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Changing the general public’s day to day behaviour is a gradual process and we were looking for an agency who fully understood the challenge ahead.

MIKE LYNCH ADVERTISING HELPS THE NORTH EAST TO MAKE SMARTER CHOICES Independent media planning and buying agency Mike Lynch Advertising is implementing a campaign to raise awareness of the sustainable transport campaign, ‘Smarter Choices’ across Tyne and Wear. The campaign is a joint partnership with Nexus and the five local authorities across Tyne & Wear: Gateshead, Newcastle, North and South Tyneside, and Sunderland. ‘Smarter Choices’ aims to increase public awareness of the advantages of using sustainable transport and the local opportunities for it. The two-year campaign will target congestion and pollution-causing areas of transportation as well as highlight the varied benefits of using sustainable methods of transport. Smarter Choices aims to reduce the number of single occupancy car drivers by encouraging motorists to car share, take public transport, bike or walk to work where possible. Reducing single car drivers will not only help clear congestion on the roads but will have other benefits including money savings, improved health, and improved air quality. Laura Fitzpatrick, Smarter Choices Marketing Officer, said:

“Changing the general public’s day to day behaviour is a gradual process and we were looking for an agency who fully understood the challenge ahead. The team at Mike Lynch met our brief and came up with a result-driven media plan that will significantly raise the profile of Smarter Choices throughout Tyne & Wear.” Getting drivers to opt out of using their cars every day is a behavioural change – and no mean feat. Mike Lynch Advertising has been working with Smarter Choices to develop an advertising strategy that will utilise a wide range of media to reach the region’s commuters and school-run parents. Clare Lee, Media Director at Mike Lynch Advertising, said: “These days we are all too aware that changes need to be made in our everyday lives about the way we travel, and we are proud to be working with Smarter Choices to communicate ways everyone can get involved.” She added, “using a multi-media approach, we have worked with the Smarter Choices team to develop a series of campaigns over the two years that will target specific aspects of sustainable transport: promoting the benefits of cycling and walking, car sharing and public transport, benefits to employers of travel planning, and raising public awareness of ways to be involved.” Mike Lynch Advertising provides media planning and buying services for numerous high profile clients both regionally and nationally, including the Wildfowl and Wetlands Trust, Tynemet College, the Sage Gateshead, and Eastern Airways.