Archive for May 8th, 2009

If you thought the bridge to nowhere was a bad idea …

May 8, 2009

… then sit down (absolutely necessary) and watch the attached 3-minute video clip which presents the John Murtha AIrport in Johnston, PA.

The highlights:

$150 million of government pork invested

Almost $1 million of stimulus funds

3 flights per day a.. to / from DC

20 passengers per day

These guys have absolutely no conscience …

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ABC TV video
http://cosmos.bcst.yahoo.com/up/player/popup/?cl=13140642

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Price Only One Part of the Value Proposition …So Say Companies Trying to Raise Prices

May 8, 2009

Excerpted from New York Times, “With Shoppers Pinching Pennies, Some Big Retailers Get the Message”, by Stuart Elliott, April 13, 2009

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As shoppers remain reluctant to open their wallets, stores are still scrambling to adjust advertising and marketing strategies to play up the value aspects of what they sell. Even as retail sales data for March suggested improving results at some chains, consumers are hesitating to buy much beyond groceries, gasoline, vitamins and candy.

Much of the focus on value defines the term in a way that will resonate with choosy shoppers. Value can mean more than low prices, but with unemployment high — and consumer confidence low — many are fixating on cost.

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That is reflected by a change in approach at Home Depot, which introduced a campaign that carries the theme “More saving. More doing.” The theme replaced one used since 2003, “You can do it. We can help.”

J. C. Penney, whose campaign carries the theme “Every day matters,” recently added phrases to its ads like “Style, quality and price matter.”

Whole Foods Market is promoting the lower prices of its private-label brand, 365 Everyday Value, in regional ads with headlines like “Sticker shock, but in a good way” and “No wallets were harmed in the buying of our 365 Everyday Value products.”

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Target, the discount retailer, began running a value campaign on April 5 in newspapers in 19 major markets. The headlines asked, “Why pay more for more?” The campaign seeks to explain the value proposition within the longtime ad theme, “Expect more. Pay less.”

In May, Target plans to advertise with “a whole new articulation” of the promise inherent in the “Expect more. Pay less” theme.

Before the recession, Target “fell into a trap,” and was “not doing as much as we should have been doing” with the “Pay less” part of the theme.

As the principal Target rival, Wal-Mart Stores, made hay with ads carrying the theme “Save money. Live better,” ads for Target played up the stylishness of merchandise or featured the designers behind its apparel and home furnishings.

“‘Expect more’ is the true differentiating play for Target if Wal-Mart owns price. The right price is only the beginning of the conversation.

Edit by DAF

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Full article:
http://www.nytimes.com/2009/04/13/business/media/13adcol.html?ref=media&pagewanted=print

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Employees Are Becoming the Newest TV Stars

May 8, 2009

Excerpted from Forbes, “Forget Celebrities. Employees Make Compelling Ad Stars In Tough Times” By Helen Coster, Apr 17, 2009

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A few employees who haven’t lost their jobs suddenly have a new one: advertising.

At a time when consumers are distrustful of big companies and their leaders, marketers are putting employees in ads in an effort to make their brands seem more transparent and trustworthy. These ads, from companies like Ford Motor, ExxonMobil, and Alabama Power, among others, are geared to make customers and employees feel better about these companies. Honda Motor Co. features at least 30 employees, including Chief Executive Takeo Fukui, and a few luminaries, including race car driver Danica Patrick, in three seven-and-a-half minute online films dubbed “Dream the Impossible” …

Nationwide Insurance is taking a similar approach with its new TV, print and radio campaign called “I Am On Your Side.” The TV ads feature Nationwide claims adjusters and customer service representatives talking about their experiences on the job. In one spot, property claims representative Terry Medley talks about how people prepare for a “prize fight” before they talk to an insurance adjuster. “We wanted to come across as authentic and genuine,” says Nationwide spokesman Michael Switzer …

[T]he TV spots … mark a sharp departure from the company’s previous ad effort. Themed “Life Comes at You Fast,” it featured celebrities such as Kevin Federline and Fabio showing the bad things that can happen to people when they aren’t prepared.

In some cases, marketers hope to demonstrate that by treating employees well, they will do good things for customers too. A current print ad from Verizon Wireless talks up innovation by touting its training programs for employees, including Philip Morisky, who is pictured teaching his son how to ride a bike. The tagline: “Our people. Our network.”

Companies tend to trot out employees as spokespeople when the economy or the company is in trouble. “Because of the financial crisis, there’s a growing anger about big companies in particular … People think that CEOs are overpaid, that big companies don’t respect the environment. … This is the natural reaction of some companies to say: “We’re on the consumers’ side. We’re not the enemy.”

Will people really buy more cars if they relate to the Average Joe in a Honda ad? “I think in the long term [they will],” says Honda’s Center. “It’s always controversial when you do institutional advertising but, as a marketer, you have to be able to juggle a couple of balls. One of them is to sell products and generate revenue in near term while continuing to build the foundation your house is standing on. That’s why we’re doing these things, even in these tough times.”

Edit by SAC

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Full Article:
http://www.forbes.com/2009/04/17/honda-nationwide-ads-cmo-network-employee-ads.html?feed=rss_leadership_cmonetwork

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