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MICROSOFT'S CULTURAL MOVEMENT - CNN MONEY

From today's CNN Fortune

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How to make accounting software cool

Microsoft tapped a cutting-edge ad agency to craft an offbeat, (Cultural Movement) campaign aimed at small business owners.

By Devin Leonard, senior writer

Last Updated: July 3, 2008: 3:11 PM EDT

NEW YORK (Fortune) -- It was too weird to be true. In late 2006, a series of videos appeared on YouTube about a Willow Springs, Ill., resident named Kyle Bone who'd created a successful product called "the anti-shirt" - a shirt that exposed the area of one's torso that a normal tee shirt would cover and revealed the area that would otherwise be exposed. In short, said Bone, it cured the age-old problem of "farmer's tan."

Viewers who investigated Bone's site found a link to another site, www.ideawins.com, where they could enter an American Idol-like search for the best small business idea in America. And, oh, they would also download a free copy of Microsoft Office Accounting.

As you've probably guessed, Bone doesn't actually exist. He was invented by StrawberryFrog, a ten-year-old ad agency based in New York City. StrawberryFrog is one of those small, self-styled renegade shops like Mother, Brooklyn Brothers, and Our Man in Havana that big companies call when they are having trouble moving products and don't feel they are getting results from their large agencies.

Thanks to StrawberryFrog, more than two million people have downloaded the free version of the accounting software. (The company won't disclose how many users have upgraded to the paid version, but it claims the number was substantial.) Meanwhile, the agency's campaign was short-listed for a prestigious Lion award in June at the 2008 Cannes International Advertising Festival. "StrawberryFrog hasn't been around that long," says Jane Bedford, founder of The Bedford Group, a consulting firm that helps large corporations select ad agencies. "But they are very well known for their creative work and their digital skills."

In this case, Microsoft (MSFT, Fortune 500) was struggling to sell software to small business owners. According to the research firm IDC, Microsoft had a mere 3% share of the accounting software market for U.S. companies with fewer than 100 employees. Its largest competitor, Intuit's (INTU) QuickBooks, enjoyed a 24% share.

These are not the kind of numbers that warm the heart of Steve Ballmer, Microsoft's CEO. So Microsoft snubbed its longtime agency, the Interpublic Group's McCann-Erickson Worldwide, and turned to StrawberryFrog to craft one of its signature out-of-the-box campaigns for Office Accounting.

The people at StrawberryFrog say they don't do traditional ad campaigns. They prefer to say they craft "cultural movements" for their clients, which include such blue-chip names as PepsiCo Frito Lay, Morgan Stanley, Procter & Gamble (PG, Fortune 500) and Disney (DIS, Fortune 500). By this, the agency means, it strives to come up with ideas that get consumers talking on Facebook, posting videos on YouTube and twittering with each other on their cell phones. "We have to stop thinking about only selling a product and instead think about activating a massive virtual community," says StrawberryFrog founder and CEO Scott Goodson.

Microsoft and StrawberryFrog decided early on that it would be difficult to get small business owners who were already using QuickBooks to go through the hassle of moving all their data from one accounting program to another. Instead, they targeted small entrepreneurs who might not be using accounting software at all. "We noticed a lot of small business owners were doing their accounting in a very old fashioned and sub-optimal way," says Paul Prokop, group product manager for Microsoft Office Accounting. "They were sticking Post-Its on their computers. They were keeping records in shoeboxes."

Not surprisingly, StrawberryFrog discovered these potential customers weren't interesting in talking about crunching numbers. They much preferred talking about business ideas. The ad agency and the software giant decided to tap into their zeal by creating a Web site called IdeaWins where entrepreneurs could download a free version of Office Accounting and enter Microsoft's search for the best American small business idea.

How would people find IdeaWins? StrawberryFrog would drive them there. It arranged for free copies of Office Accounting to be parachuted into Willow Springs, Ill., Bone's purported hometown. Soon after, videos of the event - some of them made by townspeople and others by the agency - appeared on YouTube. StrawberryFrog auctioned off anti-shirts on eBay. The agency seeded small business blogs with comments about IdeaWins. In January 2007, the ad shop set off in the IdeaWins Ultimate Challenge R.V. to hand out hats and t-shirts and collect ideas from entrepreneurs in Seattle, New York, Las Vegas and Chicago.

Microsoft ended up with more than 7,000 ideas. In March 2007, a trio of judges - Carolyn Kepcher, a veteran of Donald Trump's The Apprentice series; Los Angeles maternity wear designer Liz Lange; and Microsoft corporate vice president Chris Capossela - selected four finalists. They included hip-hop inspired poetry group from New Jersey that wanted to start a restaurant and a school, a Florida woman with an idea for a do-it-yourself wallpaper business, an Illinois woman with an upscale clothing rental proposal, and a Maryland resident with a plan for an "organic beauty bar."

The judges announced the winners - the poetry guys from New Jersey - on NBC's Today Show. Microsoft couldn't have been happier. "We were absolutely stunned by the response to the contest," says Prokop. "That's the kind of publicity you can't buy."

The software giant and its ad agency are currently working on a new campaign for the next version of Office Accounting, which will be available later this year. Meanwhile, Microsoft says thousands of people continue to download the current edition on www.ideaswins.com.

It's not clear yet if IdeaWins increased Microsoft's share of the accounting software market. IDC hasn't released its 2007 market share figures yet. But Microsoft and StrawberryFrog can took comfort in this: A bunch of consumers seem to think Microsoft Office Accounting is actually kind of cool now. Who would have thought such a thing would be possible with small business accounting software?

LEFRANT FERRANT EARN BACK FRANCE'S FASHION CROWN

Yesterday, the French designer team of Lefranc / Ferrant stormed the Bastille and retook the throne of French Fashion after a good 15 year absence. The duo held their 2009 summer collection fashion show in the cool Jewish quarter of Paris, only steps away from the majestic ancient mansion of Jean Paul Gautier. For years, French fashion and Parisian houses have been dominated by the likes of Stella MacCarteny and Alexander McQueen.

The Lefranc Ferrant show yesterday was received by the most respected fashion elites of Paris with widespread applause and nods of approval. The only criticism was that the space for the show was so packed that people were standing in line outside to get in but there was only standing space, which was all occupied.

Bea Ferrant , the female of the duo looks a lot like a lovely femme fetale version of Yves St. Laurent. And during the same year that the great French designer passed away, it's as if his spirit has moved into her designs which give the label's look the elegance of a St. Laurent, with the radical modern feel of a rebel digital ninja.

When Victor Hugo launched his great masterpiece, he wrote his agent the day after his book was launched. The letter contained a single letter. "?"

After reading the morning papers filled with reviews of Les Miserables, his agent repied with a single letter "!". The exact same shall be applied after yesterday's show of Lefrant Ferrant.

Design Duo puts on France's most elegant and modern and - yes - buyable fashion show.

The clothes take the breath away of Paris' mightiest fashion critics.

The Lefranc Ferrant show yesterday was received by the most respected fashionisas of Paris with widespread applause and nods of approval. The only criticism was that the space for the show was so packed that people were standing in line outside to get in but there was only standing space, which was all occupied.

Here are the first images from the show. Lefranc Ferrant has hit Joseph in London and several select famous stores in the US. Anyone interested in where fashion is going should keep an eye out for this label.

SPAIN WINS EURO 2008, AND IT'S A NICE WIN

You've got to admire the young Spanish team who won the Euro 2008 championship this evening. Football lovers will agree that it was a good win for the game. Spain hasn't done much in the game for a long time and this win has a chance of unifying a part of the world that's seen a lot of divisions over many years.

THE MOST LUXURIOUS SNEAKERS IN THE WORLD

Scarcity has usurped exclusivity as the new 'luxury' in America and Europe. If everyone has it, IT can't be all the amazing - can it?

When it comes to sneakers, there are lot of manufactured shoes to choose from. But then there is ShoeFu - hand designed shoes, custom made. Wonderful work.

Check out the wonderful simple to use ShoeFu site here

Here are some of the wonderful pieces of walking art. ShoeFu even made an exclusive pair of Che Frogera Viva la revolucion shoes:

THE INNOVATIVE MARKETING OF BARACK OBAMA

Barack Obama, the Democratic Candidate understands how marketing has changed. His bottom up, grass roots Cultural Movement approach has already defeated one major long-time candidate who made the mistake of applying the old fashioned, brand positioning approach. Just look at Obama's website. It is really quite brilliant. It enables anyone to become a fund raiser. And a lot more. If you haven't visited the site, I strongly suggest you take the tour, if only to study the very smart use of the digital space as a vehilce to empower Obama's supporters. It's very well done indeed. Check it out here.

IS DEFACING SAO PAULO ART OR SOMETHING MORE IMPORTANT?

Brazil's most common visual image is the futbol. But its fastest growing visual language is that of the social commentator, the graffiti artist, the rebel visual naughty one. All over Sao Paulo, like I mean every underpass, every city wall, every tenement building is recently repainted with the optimistic eye-candy of the street. I remember the days when New York's subway cars were the graffiti artist's canvass and the battle between Ed Koch and the artists was lost. It is twenty-five years later and I feel like I am right back in the early eighties here in Brazil. The only major difference is the content. Back then, they were outlaws and the content was an act of civil disobedience. Near the end of that movement, it became the candy colored art movement of Keith Haring, founded by Andy W. Here in Brazil it's the cutting edge of the art world from the start. And what's more I think it's more meaningful. Here, the graffiti artist is a poet as well as a voice of a new generation of urban educated visualistas. They are living in the outside lane, and the art is lovely, bright, colorful and full of human expression, joy, homor and is down right entertaining. Perhaps it has to do with the fact that their political leadership are by the people, of the people, and this would take the wind out of the anarchist's graffiti artist's sails. And the result is incredible expressions of light and color. I love it.

Oh...our flight just got called...time to head to the gate, back to NYC.

HOW TO GET INTO ADVERTISING - THE BEST HEADHUNTERS

I have had the pleasure of working with some of the best headhunters in the world. And some of the very worst. Many headhunters are independent and truly serve the interests of the talent and the agencies seeking talent. They match talent with agency needs. These headhunters may tell you that an independent agency, like a StrawberryFrog, is better for your career than a big corporate shop. Or they may say the opposite. Some of these headhunters are paid retainers by the big huge conglomerates to recruit talent to the big huge conglomerate agency no matter what the big huge agency does in terms of work. Most headhunters however are on the up and up, and do their very best to find the right home for talent. Ultimately it is up to the talent to decide. If the headhunter does protest too much, it might be worth asking whether they are being renumerated for their recrutiing to a major agency. If not then you know you are in good hands.

Some of the best headhunters I have come across are, in my opinion:

Creative:

- Anne Marie Marcus

- Dany Lennon

- Gilly Taylor

Planning:

- The Talent Business

- Sally Jones, Tangerine

Account management:

- Alasdair Ritchie, Tangerine

AWESOME WEBSITES

The interactive web rules. It's the cutting edge of marketing today. Cyber thinkers and creatives are the most influential out there. Here are some very cool new websites that will knock your socks off.

Neave Television

Zefrank

Neon bible

Mr. Picasso Head

Apathy Party 08

Autoposy

CyberRadio

The Mini Mizer

Girlsmiles

Make a snow flake

Universescale

Scion Speak

Alien Empire

BRAZIL BUSINESS TRIP - DAY ONE

I never thought I would be so excited about landing at an airport. But Brazil has mystic powers. Perhaps it has to do with having flown directly over the Amazon for several hours. Kevin (our ECD and my partner), Chip (our head of strategy) and I were treated very well on Tam, the national airline of Brazil on the NYC to Sao Paulo flight. Most fortunately, we were met by Ronaldo at the airplane jetty and whisked right through the long passport control line.

We may have traded the sunny and warm skies of New York for the grey skies of Sao Paulo in winter, but the  joys of Brazil are not to be undone by mere clouds.

The first stop was to the hotel Unique. WOW, the hotel is the closest thing I've seen to a modern architectural representation of Noah's Ark. Designed by a Japanese Brazilian, it is one of Sao Paulo's finest boutique hotels. The lobby, the design, the rooms, everything is a joy to be in. We certainly are not going to be roughing it.

Shortly, we will be off to visit with our Frog brothers and sisters at StrawberryFrog Brazil, and then on to our wonderful Brazilian client.

Later...

CHINA TO TOP U.S. IN BEIJING MEDALS, BUT WHERE IS BAKINO FASO?

AP just reported that PricewaterhouseCoopers will release a survey tomorrow declaring that (using their professional accounting process), they've figured out that China will win one more medal than the USA (88 - 87) and top the overall table for the first time.

Well then, what's the point in having the games then. We all know the outcome.

HOW BORING! I really dislike these kind of PR surveys intended to shine the torch on the brilliance of PricewaterhouseCoopers. The Olympics already have been watered down with the light of commercialism. Pierre de Coubertin said at the birth of the modern Olympics “The important thing in life is not to triumph but to compete.”

And now this wonderful report from an accounting firm. I wish China, the US and the Bakino Faso Olympic team all the luck in the world. We just don't need a scientific report on the outcome just yet. I prefer the nail biting. It's must more exhilarating.

If you are, on the other hand, most partial to knowing the outcomes in advance. Here is the report from AP:

“As the host nation in Beijing and (with) an economy which has grown very strongly since 2004, the medal ‘target’ of 88 for China according to our model is much higher than its actual medal totals in Athens (63) or Sydney (59),” said John Hawksworth, the report’s author.

China was third in overall medals at Athens 2004, behind first-place United States (102) and Russia (92). China was second in gold medals behind the U.S. in 2004—32 to 36.

Hawksworth predicted Russia will drop to third place at Beijing with 79 medals overall, down 13, followed by Germany (43), Australia (41), Japan (34), France (30), Italy (29), Britain (28) and South Korea (27).

The report lists significant factors behind a country’s performance at the Olympics since 1988, including population, average income level and being the host nation.

“The bottom line is that size matters, but it is not everything,” Hawksworth said. “David can sometimes slay Goliath in the Olympic arena.”

India remains a “significant underperformer” and is predicted to get six medals in Beijing, compared with one silver medal at Athens.

“The most plausible explanation is that, with the exception of (field) hockey, Indian sport tends to be focused on events that are not included in the Olympics, most importantly cricket,” Hawksworth said.

Last year, Italian Olympic official Luciano Barra forecast the United States would beat China in both gold medals and overall medals won.