Archive for July 19th, 2010

“A Whale” turns out to be a minnow …

July 19, 2010

OK, I was sucked in by the hype.

The super-skimmer “A Whale” – whose deployment was delayed by the union-protecting Jones Act — was supposed to be capable of pulling 50,000 barrels of oil from the Gulf waters every day.

In tests, it skimmed approximately no oil from the Gulf.

‘All we found in the tanks was water … it was very ineffective.’

Bummer.

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Excerpted from Reuters: ‘Super skimmer’ a giant bust in Gulf cleanup, July 16, 2010

A Taiwanese-owned “super skimmer” sent to help clean up the Gulf of Mexico oil spill has been a bust, the U.S. Coast Guard said after tests on the ship.

“While its stature is impressive, ‘A Whale’ is not ideally suited to the needs of this response.”

The tanker collected virtually no oil in two weeks of tests.

“All we found in the tanks was water, so it was very ineffective.”

Full article:
http://www.msnbc.msn.com/id/38283782/ns/disaster_in_the_gulf/

Posted in Gulf Blowout & Clean-up | Leave a Comment »

Adults Only: A Trojan horse or a Trojan for horses ?

July 19, 2010

Hate to drag HomaFiles down to this level, but this one is too good to pass up.

Punch line: Since introducing its Magnum line of plus-size condoms,  industry leader Trojan’s market share and profits have surged.

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From Psychology Today …

Few marketers are as fortunate as condom makers, whose customers are glad to pay a premium for a product that isn’t really much bigger or better.

Trojan markets its Magnum line of condoms as “Bigger than most condoms …  designed to fit those that find normal condoms too constricting.”

Oh, yes, and then there are Magnum XL’s … an upsell version.

It’s easy to see why men fall for this particular sales pitch.

“The Magnum brand is viewed as a positive lifestyle badge and positive symbol … men are proud to show they carry a Magnum condom — the large size carries a certain cachet.”

The economics:  A box of 12 regular Trojans retails for around $5.99; a box of 12 Magnums or Magnum XLs is $7.99. That’s a 33 percent premium.

Trojan confesses that it’s hard to imagine Magnum buyers doing the math … and since Magnum condoms are only 3/10 of an inch longer than regular Trojans – and since XLs are the the same length as Magnums … all of the condoms cost about the same to make, so the Magnum’s price premium is pure profit.

As an academic observer notes: “I think the concept of having more sizes is a step forward for the industry … But you could never market them as small, medium and large, because no one would buy the small.”

Excerpted from Behavioral Economics: Monetizing the Male Ego, April 28, 2010
http://www.psychologytoday.com/blog/priceless/201004/monetizing-the-male-ego

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Factoids

Trojan, including Magnum, commands 75 percent of the condom market, with No. 2 Durex commanding 14 percent.

The company claims Magnum is the most popular condom among African-Americans, citing internal research that indicates they account for 22 percent of all condom purchases but 40 percent of Magnum purchases.

http://www.nytimes.com/2010/04/28/business/media/28adco.html?_r=1&ref=business

Posted in Behavioral Economics, Mktg - Positioning, Mktg - Pricing, Mktg - Product Line Mgnt | Leave a Comment »