I had a slightly surreal moment at last night’s terrific AC/DC concert in Melbourne.
There I was, standing next to my Dad (mid-50s), my older brother (mid-30s) in a crowd of people who ranged in ages from about six through to at least 65. Acca Dacca were playing a song released in 1975 (called The Jack – it’s about…um…sexually transmitted diseases) while on stage the band’s diminutive guitarist Angus Young (who is 55 and balding) slowly peeled off his school uniform in a sort of leering striptease.
Many thoughts were going through my mind as the crowd roared its approval (including, did I really pay $150 for this?) but as always my thoughts turned to the topic of innovation in relation to how the money making machine of AC/DC actually works.
For example, there are a few lessons in the fact that the band rolled through a set list mainly consisting of songs recorded over 25 years ago.
The first is the baby boomers will pay plenty for a bit of nostalgia and aren’t afraid to celebrate the fact that they are still a force in popular culture. (If you are in any doubt, check out this story from Trend Hunter).
The second lesson is that innovation is great, but when you are on a good thing, sometimes you need to stick to it.
Classic, iconic products (think Coca-Cola as a long-bow example) never change their formula. They might introduce other new products, but at the core of the company’s product range is the old favourite. An iconic product also lets you transcend generations, something Coke and AC/DC do very, very well.
That doesn’t mean these brands don’t innovate – last night’s show was a perfect example of how AC/DC tweak their packaging (that is, the giant stage props used in the live show) while keeping the product (the songs) the same and cashing in over and over again.
The concert also taught me a lot about innovation in the area of brand extension. The amount of AC/DC merchandise being sold last night was incredible and the fans (many of whom were already clad in AC/DC T-shirts) were snapping the stuff up at an impressive rate.
There was everything from school ties and flags through to tote bags and flashing devil horns (of which there must have been 20,000 in the stadium last night).
So there’s a lesson – when you find yourself with a product or service that your customers just love, be careful that you don’t change it too much.
Tweak the packaging, build products around it, extend your brand as far as possible – but don’t lose the essence of what makes it great.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
