Archive for March 23rd, 2010

From soup to nuts: Campbell’s turns to psychology for consumer insights

March 23, 2010

Takeaway: Consumer anxiety commonly runs high when companies discontinue iconic images — last year scores of consumers protested the redesigned Tropicana carton.

In this high-stakes branding game, Campbell’s has sided with science and will soon abandon its widely-recognized red and white labels for a design the company believes will evoke a deeper emotional response from shoppers.

To arrive at this decision, the company employed neuromarketing – an emerging discipline that augments traditional market research with analysis of consumers’ biometric responses to new stimuli.

If successful, Campbell’s approach may provide marketers with powerful new tools for understanding their customers.
 
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Excerpt from FastCompany, “Campbell’s Soup Neuromarketing Redux: There’s Chunks of Real Science in That Recipe” by Jennifer Williams, February 22, 2010.

About a week ago, the Campbell’s publicized a bold redesign of its iconic label with the assistance of neuromarketing. Pundits promptly predicted brand suicide, decrying the company for using pseudo-science.

With help from its parter Interscope Research, Campbell’s spent two years studying microscopic changes in skin moisture, heart rate, and other biometrics to see how consumers react to everything from pictures of bowls of soup to logo design.

By the end of a two-year study, more than 1,500 subjects were interviewed and tested using multiple methodologies–which ranged from traditional consumer feedback to cutting edge neuromarketing techniques.

The team used a combination of proprietary micro facial expression analysis obtained by in-store cameras, in-aisle eye tracking and pupilometry, and intercept interviews.

One brand team member explained that the type of cutting edge technology they employed enhanced traditional methods of market research.

An Innerscope researcher explains, “Companies that rely exclusively on traditional measures, focused only at the conscious level, are missing a critical component of what drives purchase behavior. The vast majority of brain processing (75 to 95%) is done below conscious awareness. Because emotional responses are unconscious, it is virtually impossible for people to fully identify what caused them through conscious measures such as surveys and focus groups.”

Many argue that the new label design could just as easily been arrived at by a savvy designer with good instincts. Perhaps. After all, understanding that a steamy bowl of soup is likely to elicit a positive emotional response isn’t much of a leap.

The end result offered many things that savvy design or consumer feedback alone could not have predicted. This fall, consumers can expect their soup shopping to be easier and more emotionally enjoyable than it is with Campbell’s current label. Flavor and style will be easily distinguished, and the familiar red logo will still be there. However, the logo will be smaller and out of the way in the scan and selection process, and the updated images will tap into emotions that consumers already associate with and want to feel about soup.

Was this a case of a mere marketing fad masquerading as science meant to mesmerize corporate clients more than consumers? Campbell’s synchronizing of careful research done by three agencies–research which triangulated two years of data gathering and statistical analysis–looks a lot like genuine science.

Edit by BHC
 
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Full Article:
http://www.fastcompany.com/article/rebuttal-pseudo-science-in-campbells-soup-not-so-fast

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Individual healthcare mandates and the 5th amendment …

March 23, 2010

Here’s an interesting twist I haven’t heard from the TV pundits …

Under ObamaCare, everybody has to buy health insurance — even healthy folks who want to opt out.

If you don’t have health insurance, you get fined … most recently, I heard that the fine has been pared down to $250 annually.

How will it be enforced ?

Well, the bill adds over 15,000 IRS agents to police it.

[Analytical note: that means that the new agents have to nail about 6 million scofflaws each year just to cover their comp & benefits … each agent will have to find and nail about one each day]  

This morning, I heard a Congressional shill say that each year — as part of the 1040 process — people will be asked if they are in compliance with law and have health insurance.

If they answer yes, they are asked to provide substantiation.

If they answer no, they have to pay the fine.

Isn’t that self-incrimination?  Isn’t that protected by the 5th amendment ?

If this process works ok for ObamaCare, why not extend it to other areas of the law ?

For example, ask people if they have complied with all speed limits when driving. If they self-incriminate, fine ’em.

Maybe ObamaCare has uncovered a whole new way to raise revenues and offset the deficit …

Stupak’s Price: $726,409 … so much for principle.

March 23, 2010

Right from Stupak’s office … note the date (March 19, 2010) … At least he waited 2 days until he switched his vote from no to yes …  for chump change compared to what Dodd, Landrieu, and the SEIU got … gezz Bart, if you’re going to sell your soul, at least go for some serious money.

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Increasingly customers ask: what’s in a name?

March 23, 2010

Takeaway: In light of recent economic conditions, consumers are arguably more focused on value than ever before. This, combined with the increasing power of national retailers, now limits consumer products and services companies’ ability to deliver differentiated benefits to customers.

Faced with these new competitive pressures, brand managers must form new strategies for connecting with their customers to reinforce the value of their brand.
 
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Excerpt from FastCompany, “Logos Get Lost in the Supermarket, Here’s Why” by Jamey Botter, March 11, 2010.
 
Logorama, the movie comprised entirely of animated logos, recently won the Oscar for best animated short film and is an excellent representation of the technicolor tapestry of branding that our world has become.

What would the world be like if there were no more brands to differentiate products, inspire us, or give us a good feeling about a company or product we’ve never tried before? I’m one who thinks it would be bad for brands to meld together into a homogenized mess, and I see that starting to happen in places. At the rate things are going, someday soon all brands will look like Walmart’s Great Value label.

Why is this happening? It’s partly because value is in great demand now, with unemployment still in double digits throughout parts of the country. It’s also because retailers are putting pressure on manufacturers to differentiate their brands inside their stores, so that a brand doesn’t look and act the same in one store chain as it does in another. If brands fold to this pressure, they become diluted and change what they really stand for. This erodes brand equity with consumers and eventually, retailers decide they don’t need certain brands anymore and can easily outsource the product cheaper themselves to increase their margins. So now those manufacturers are out, and jobs are lost. And so is the brand.

Private label brands grew at twice the rate of national brands over the last decade. Retailers like Walmart, Target and Costco are narrowing consumer selections everyday. Walmart recently took out Glad and Hefty storage bags to give more space to its Great Value brand. Walmart brought Hefty back, only after the company agreed to manufacture its Great Value bags.

That sort of manipulation will continue to happen unless brand managers, strategists, designers and manufacturers stand up to big-box retailers and reinforce the naturally differentiating attributes of their brands. They must build their brands so the retailer depends on them and the manufacturer, like the good old days.

Over the last 100 years, brands have played an important role in our society. The danger of private labels taking over the national branding landscape is the loss of meaning and value in the brands we love, prefer and recognize. Not only do our favorite brands help us distinguish product attributes, they inspire and motivate us, and give us a sense of individualism and choice.

If price is the only thing we as consumers are driven by, then sure, just make all the brands the same, Big Brother. But understand that what starts at retail can mushroom to other industries. Soon, we could all end up buying gas from one brand of gas station. Bank at one brand of bank. Wear clothes from one clothing company because they’re all alike anyway.

Edit by BHC
 
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Full Article:
http://www.fastcompany.com/1579214/when-private-labels-take-over-the-world
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What do student loans have to do with healthcare ? … and why you should care if you have a student loan.

March 23, 2010

Answer: Nothing … It’s a stretch to lump student loans and healthcare except that the apparent (i.e. unproven, unsubstantiated) savings accruing from nationalizing of student loan programs are needed to make ObamaCare look like it reduces the deficit.

I think there are huge implications — not only to banks, but also to student borrowers.

Here’s a twist: under ObamaCare, the tax-fines are going to be policed by 15,000 additional IRS agents. 

Do you think they’ll add another 15,000 to work collections on student loans ?

I’m betting the over on that one …

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Excerpted from USA Today:  Revamped student loan bill tucked into massive health bill, Mar 19, 2010

To satisfy budget requirements and win over skeptical deficit hawks in their own party, Democratic leaders wound up directing a total of $19 billion (of the $61 billion in revenues that the student loan shift would produce over 10 years) to reduce the deficit and help pay for the health care portion of the legislation.

The basic thrust of the legislation, which would derive its $61 billion in savings by shifting all lending from the lender-based (but government-subsidized) Federal Family Education Loan Program to the government’s Direct Loan Program. The lenders have been trying to months to turn lawmakers against the idea of ending their ability to make loans (and the accompanying subsidies), arguing that doing so would kill thousands of jobs.

But on Thursday, they took another approach, directing their ire at the billions of dollars that would go to purposes other than helping students afford college, namely health care.

“Should students be paying for their neighbor’s medical costs? Separate consideration of student loan reform is imperative to ensure that legislation that minimizes job losses and reinvests savings in higher education can be considered.”

The most blatantly political move in the legislation: an exemption that would allow a state-run bank in North Dakota (alone among the states) to continue to offer loans directly to students.

Democratic Congressional aides defended the decision because they said the North Dakota bank is, as a taxpayer-owned agency, essentially a government lender like the federal government, so sustaining its ability to lend is consistent, they argued, with the legislation’s overall goal.

But critics compared the deal to the much-criticized exemption that health care supporters granted to Sen. Ben Nelson of Nebraska to win his key vote for that legislation,

“This ‘Bismarck Bank Job’ provision looks like exactly the sort of backroom deal that makes the American people hate Washington and the whole process that has led to this massive, awful government takeover of our health care.”

Full article:
http://www.usatoday.com/news/education/2010-03-19-IHE-student-loan-measures-in-health-bill19_ST_N.htm

Move over Charlie Brown, Congressman Stupak wants to kick the football …

March 23, 2010

Fool me once, shame on you.

Fool me twice, shame on me.

What about the 3rd, 4th, 5th times ?

Doesn’t Bart Stupak learn ?

To refresh your memory:

  • Back in November, pro-life Rep. Bart Stupak scored what he thought was a victory and the House passed an amendment to its ObamaCare bill limiting the use of tax-payer funds for abortions.
  • But, immediately after the vote, pro-choice Dems expressed confidence that “controversial language on abortion would be stripped from a final healthcare bill” via legislative maneuvering.
  • Then , House Dem leadership told Stupak and his pro-life buddies to take a hike …  because  liberal Dems want the government to fund abortions.
    https://kenhoma.wordpress.com/2010/03/15/why-is-stupak-surprised-that-his-amendment-was-trashed/

Sunday, to get Stupak to vote yes on ObamaCare, the President promised to issue an Executive Order that, in effect, restores the Stupak Amendment to the final bill — after the fact.

Well, a couple of potential bumps in Bart’s road:

  1. The President has to do what he promised … hmmm.
  2. Some legal pundits are saying that the Executive Order has little or no force — the passed law will prevail in high courts
  3. A President can rescind an Executive Order at any time

This time when Lucy pulls the football away, Stupak will have no one but himself to blame.

He’ll deserve to feel more ‘stupid’ than ‘Stupak’.