Archive for March, 2011

Get your free ObamaPhone and free minutes …

March 4, 2011

That’s the shock email circulating these days. 

OK, to be fair and technically accurate, the program was started under Reagan, but it’s actively promoted by the current administration so we’ll give them some  credit.

Apparently cell phones are a necessity for minimum living standards …

What follows is unbelievable, but true … just follow the links.

The Program

SafeLink Wireless is proud to offer Lifeline Service, which is a program that enables qualifying customers to receive free cellular telephone service.

If you qualify, you will receive free cellular service, a free SafeLink Wireless cell phone and the assurance that you will get no bills and no contracts EVER!

image

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How to Qualify

The process to qualify for Lifeline Service depends on the State you live in.

In general, you may qualify if…

1.You already participate in other State or Federal assistance program such as Federal Public Housing Assistance, Food Stamps and Medicaid, or

2.Your total household income is at or below of the poverty guidelines set by your State and/or the Federal Government, and

3.No one in your household currently receives Lifeline Service through another phone carrier, and

4.You have a valid United States Postal Address.

Note: In order for us to ship you your free phone you must live at a residence that can receive mail from the US Post Office.

In addition to meeting the guidelines above you will also be required to provide proof of your participation in an assistance program, or proof of your income level.

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See for yourself:
https://www.safelinkwireless.com/EnrollmentPublic/home.aspx

Kraft goes back to basics: targeted spending, innovation and feet-on-the-street

March 4, 2011

Punch line: Kraft plans to increase marketing to lift lagging sales

Kraft’s U.S. sales are lagging the company plans to boost marketing on targeted brands.

The foodmaker plans to fight rising ingredient costs, the aftereffects of the recession and a stagnant packaged-food market by spending more on its biggest and most profitable brands.

Specifically, Kraft will hike marketing spending by 10% on the 20 brands that make up two-thirds of its revenue and income.

“Under the theme of fewer, bigger and faster, we have 12 big bets in North America this year …  In total, our innovations represent over $2 billion of sales in new products.”

Among the new products is Mio, a “flavor pod” for water that Kraft calls its biggest brand launch in a decade. “Mio is the ultimate way to personalize your beverage.”

Other “big bets” include Trident Vitality and Stride Spark vitamin-enriched chewing gums; Planters NUTrition; Oreo Fudge Creams: Philadelphia Cooking Cream: Oscar Mayer Carving Board and Lunchables with fruit.

The company will ramp up its 7,000-person salesforce.

“We intend to win every account, every store, every household, even yours and mom’s.”

Thanks to Diana M. for feeding the lead

The decline of private unions … precursor to the public ones?

March 3, 2011

Union supporters seem to have a hard time answering the question: which heavily unionized industries have prospered over time?

Steel? Autos? Telecommunications? Education?

Come on, name one.

Sure, members may prosper for awhile, but inevitably, their firms and industries move to non-unionized regions or off-shore.

So, the benefits are transient.

I guess public employee unions think they’re immunized since states can’t move and government services can’t be off-shored.

Or can they ?

Have you noticed how they’re referred to public serants or government employees … but, rarely as government workers.

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Here are snippets from an article that stirred my thinking …

To members, unions exist to win higher wages and fringe benefits, and in this, they mainly succeeded.

In 2006, union wages in the private sector were about 19 percent higher than those in comparable nonunion firms.

The union wage premium can endure if higher productivity (aka, efficiency) justifies higher wages, or if companies can pass along costs to customers.

But, the productivity advantages of unionized firms are scant.

The formula worked, because many heavily unionized industries were dominated by a few large firms with similar labor costs that could be recovered in higher prices.

That changed in the 1970s and 1980s.

  • Imports and “transplant” factories created new competition in steel and autos.
  • Airlines, trucking and communications (telephones) were deregulated, allowing new low-cost rivals into the market.
  • Digital technology and the Internet transformed communications and threatened many industries, including traditional phone companies and newspapers.

Both executives and union leaders underestimated the vulnerability of once impregnable market positions. The downfall of the “Big Three” automakers epitomized this disastrous cycle.

Public-sector unions now face a similar predicament.

RCP, Big Labor’s Dilemma, Robert Sameulson, February 28, 2011

Diet Pepsi wants you to “get the skinny” … (and, psst, “get skinny”)

March 3, 2011

TakeAway: Diet Pepsi’s new skinny can is being met with controversy because of the perception that skinny is better and that this will influence the image issues young people face nowadays regarding their body types.

Pepsi on the other hand thinks it’s a new skinny can will provide as a marketing tool for people to “get the skinny” on what is trendy and in.  Who will win the battle?  

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Excerpted from AdAge, “Skinny Pepsi Can Launch is Heavy with Controversy”  by Natalie Zmuda, February 21, 2011

It’s hard to imagine that a brand the size of Diet Pepsi spent only $500,000 on measured media in the past three years combined, but that’s exactly what happened.

With the focus on programs such as Refresh Project and brands such as Pepsi Max, Diet Pepsi was pushed to the sidelines. …

“We are going to actually start talking to our consumer again. … We have our loyal followers that are a specific psychographic, and we want to make sure we talk to them on a one-to-one level.”

To that end, the brand is introducing a new package, the Skinny Can, and building a major marketing program around it, slated to run throughout 2011. The can will become part of Diet Pepsi’s permanent lineup. (Pepsi’s Skinny Can is a full 12 oz. serving. )

… Ads promote the can but also convey the idea of “getting the skinny” or the inside scoop on the latest in culture, fashion, style and design. …

A slew of partnerships and retail promotions are also a part of the effort. A promotion that gives consumers $5 off a purchase at Target when they buy a four-pack of Skinny Cans and a People magazine is launching late this month. …

To help conceive the effort, it formed a “Pop Culture Council,” …that was presented with various ideas and advertising concepts and told to “pull them apart and rebuild them.”

“They were saying you need to stop thinking as a staple product and think as we think in the fashion and design industries,” …

The effort is not without controversy. The National Eating Disorders Association put out a press release saying it “takes offense” to the idea. “Pepsi should be ashamed for declaring that skinny is to be celebrated,” …

“It’s the new shape of a product. We’re not talking about the form or shape of a woman,” she said. “And it’s also the marketing platform, getting the skinny, the inside scoop, on fashion, style and design.”

Eric Gustavsen, founding partner at creative firm Graj & Gustavsen who has no connection to the project, said … “This particular idea is simple enough and understandable enough that it may very well have mass appeal. It’s cool and different. That doesn’t mean it’s going to redefine what a soda can shape is, but there’s nothing wrong with breaking away and experimenting.”

Edit by HH

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The fall and rise of unions …

March 2, 2011

Great chart in yesterday’s WSJ.

The point of the article was the power of public unions.

My take: the steady decline in private sector unionization.

Why?

Not because company workforces have de-unionized, but because union companies have either (1) moved to non-union regions of the U.S., or (2) have off-shored operations, or (3) have gone out of business – collapsing under the weight of union wage & benefit scales.

Interesting analysis: I’d like to see a mapping of state tax rates against the presence of public employee unions.

My hypothesis: a very high correlation …  in part, indicating a vicious cycle: public unions drive up gov’t expenses – which drive up tax rates –  which drive companies & industries out of the states – which narrows the tax base – which drives up tax rates – which …

Surprised no pundits have jumped on that yet.

image

http://online.wsj.com/article/SB10001424052748704615504576172701898769040.html?mod=djemEditorialPage_h

Deep Thought: “Children begin by …”

March 2, 2011

“Children begin by loving their parents;

as they grow older they judge them;

sometimes they forgive them.”

 
Oscar Wilde, The Picture of Dorian Gray, 1891
http://www.quotationspage.com/quote/27153.html

(OK, so I heard it on Criminal Minds ….)

“Public-employee unions are a mechanism by which every taxpayer is forced to fund the Democratic Party.”

March 2, 2011

Snippets from an interesting article in the Daily Beast

Punch line:  “The primary purpose of public unions today is to work against the financial interests of taxpayers” 

The primary purpose of private-sector unions today is to get workers a larger share of the profits they helped create. But with a power greater than their numbers, these unions have destroyed the manufacturing sector, forcing jobs overseas by driving labor costs above the price consumers here will pay.

Public employees are already protected by statutes that preclude arbitrary hiring and firing decisions.

So,. the primary purpose of public unions today, as ugly as it sounds, is to work against the financial interests of taxpayers: the more public employees are paid in wages and uncapped benefits, the less taxpayers keep of the money they earn.

Public-union bosses collect real money from all taxpayers for the benefit of a few …  public-sector jobs are funded by taxpayer dollars, forcibly collected by the government

A sizable portion of those dues is then donated by the public unions almost exclusively to Democratic candidates.

Of the top 20 biggest givers in federal-level politics over the past 20 years, 10 are unions; just four are corporations. The three biggest public unions gave $171.5 million for the 2010 elections alone.

Big money from public unions, collected through mandatory dues, and funded entirely by the taxpayer, is then redistributed as campaign cash to help elect the politicians who are then supposed to represent taxpayers in negotiations with those same unions.

In effect, the unions sit on both sides of the table and collectively bargain to raise taxes while the voters’ voice is silenced.

Michael Barone sums it up: “public-employee unions are a mechanism by which every taxpayer is forced to fund the Democratic Party.”

Daily Beast, More Politics End the Privileged Class, Feb 28, 2011

“Public-employee unions are a mechanism by which every taxpayer is forced to fund the Democratic Party.”

March 2, 2011

Snippets from an interesting article in the Daily Beast

Punch line:  “The primary purpose of public unions today is to work against the financial interests of taxpayers” 

The primary purpose of private-sector unions today is to get workers a larger share of the profits they helped create. But with a power greater than their numbers, these unions have destroyed the manufacturing sector, forcing jobs overseas by driving labor costs above the price consumers here will pay.

Public employees are already protected by statutes that preclude arbitrary hiring and firing decisions.

So,. the primary purpose of public unions today, as ugly as it sounds, is to work against the financial interests of taxpayers: the more public employees are paid in wages and uncapped benefits, the less taxpayers keep of the money they earn.

Public-union bosses collect real money from all taxpayers for the benefit of a few …  public-sector jobs are funded by taxpayer dollars, forcibly collected by the government

A sizable portion of those dues is then donated by the public unions almost exclusively to Democratic candidates.

Of the top 20 biggest givers in federal-level politics over the past 20 years, 10 are unions; just four are corporations. The three biggest public unions gave $171.5 million for the 2010 elections alone.

Big money from public unions, collected through mandatory dues, and funded entirely by the taxpayer, is then redistributed as campaign cash to help elect the politicians who are then supposed to represent taxpayers in negotiations with those same unions.

In effect, the unions sit on both sides of the table and collectively bargain to raise taxes while the voters’ voice is silenced.

Michael Barone sums it up: “public-employee unions are a mechanism by which every taxpayer is forced to fund the Democratic Party.”

Daily Beast, More Politics End the Privileged Class, Feb 28, 2011

Groupon’s second mistake.. it’s response to its first mistake- offensive Superbowl Ads

March 2, 2011

TakeAway: Just because you were recently offered $6 Billion to be acquired does not mean you can do no wrong.

Groupon’s unclear response to the backlash from its Superbowl Ads was worse than the offense caused by the actual commercials. 

Groupon should take a lesson from Nokia about clear decisive message saving it from its earlier faux pas. 

* * * * *

Excerpted from AdAge, “Groupon vs. Nokia: The Right Way to Respond when Backed into a Corner”  by Rosanna Fiske, February 17, 2011

When CEOs of tech and digital media companies speak, people pay attention. …everyone is listening to the titans of the tech industry.

…recent statements from two well-regarded tech CEOs made international headlines. …Groupon’s botched attempts at explaining its much-hyped and controversial Super Bowl ad. The second was intended to be far more subdued; it was surely not meant for a global audience of several hundred million — the leaked “burning platform” memo from Nokia CEO Stephen Elop.

[In case you missed it, Groupon’s commercial made light of the political and social problems in Tibet – bringing the company more notoriety, than fame.]

The Groupon fallout has many questioning the company’s maturity and ability to handle immense market pressures. …the time for brushing aside their sometimes cavalier approach to communications is long past.

What exactly has allowed Groupon’s Super Bowl ad to continue haunting the company, …concern has far more to do with a general lack of acumen in Groupon’s communications with its customers and stakeholders, rather than the visual offensiveness of its advertising.

… Groupon … can no longer rely on the goodwill of the digerati. Letting slip an errant message in an email blast is one thing; offending a good portion of 111 million U.S. consumers is quite another.

…, Groupon chose the path of least resistance, with multiple attempts at acquiescing to outside interests.

After initially issuing an apology, Groupon CEO Andrew Mason in a blog entry… attempted to explain the ads by rehashing some pre-Groupon history. … a rash decision to pull the ads. This … approach clearly affects the company’s image and reputation.

Contrast … to the skillfully-written Nokia memo. … CEO Elop eloquently expressed his concerns, comparing the company’s faltering sales and prestige to “standing on a ‘burning platform,'” while imploring that “[Nokia] must decide how [it is] going to change [its] behavior.”

Little chance analysts, investors or employees might misconstrue that message.

Mr. Elop’s impassioned plea was decisive and clear; … he delivered a superbly contrasting perspective of how to act … when your company is on the brink of international acclaim …

Also revealed … a long-held secret of successful brands: … executives appear to have their act together and explain the “how” and “why” behind their thinking.

 

 

Edit by HH

 

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Gov. Walker: “President Obama simply misunderstands” … ouch!

March 1, 2011

When speaking to the nation’s governors, Pres. Obama jumped back into the Wisconsin fray giving shout-outs to the unionized state employees.

Here’s Gov. Walker’s response …

Excerpted from the Milwaukee Journal Sentinel, Walker responds to Obama, Feb. 28, 2011

Gov. Scott Walker responded to comments President Barack Obama made about the protests in Madison:

Walker’s office issued this statement:

“I’m sure the President knows that most federal employees do not have collective bargaining for wages and benefits while our plan allows it for base pay.

And I’m sure the President knows that the average federal worker pays twice as much for health insurance as what we are asking for in Wisconsin.

At least I would hope he knows these facts.

“Furthermore, I’m sure the President knows that we have repeatedly praised the more than 300,000 government workers who come to work every day in Wisconsin.

“I’m sure that President Obama simply misunderstands the issues in Wisconsi …, and isn’t acting like the union bosses in saying one thing and doing another.”

Blessed are the teachers …

March 1, 2011

Snippets from a guy who was both a college prof  and a farmer.  Whole article is worth reading …

Punch line: So far the angry teachers of Wisconsin have not yet won over the public. They have not convinced the majority that, in an age of staggering budget deficits, they — or, indeed, public employees in general — must as a veritable birthright enjoy salary, benefits, and pensions on average far more generous than those of their private-sector counterparts, who make up the majority of taxpayers.

Why do teachers’ unions oppose merit pay? Why should someone who did not join the union still have to pay its dues? Why should the state have to collect the dues from employee paychecks on behalf of the union? Moreover, when these questions are posed amid a landscape of teachers skipping classes to protest, urging students to join them, and soliciting fraudulent doctors’ notes to cover their cancellations of classes — while their supporters in the legislature hide out to prevent a quorum and thereby subvert the democratic process reaffirmed last November — the public becomes further estranged from their cause.

Contrast teaching to, say, farming.  In farming, almost everyone is constantly hustling — welders, independent truckers, contractors. There is no guaranteed income for the day, let alone for life, no pension other than Social Security, and no health benefits of any kind. There is no sick leave for the self-employed. A day with the flu means the amount of work to do the next day doubled. 

For me, teaching was the antithesis of everything brutal in the private sector.  Yes, there were hours spent in the evenings correcting papers, staying long after class to advise students, endless committee work, class planning well beyond the eight-to-five grind, and research over the summer. But all that said, there were benefits, lots of them: guaranteed retirement with a defined pension; generous medical, dental, and vision coverage; and most importantly time off from the classroom. We taught about 16 weeks a semester, counting finals and introductory orientation, or 32 of 52 weeks a year. The other 20 weeks were ours to spend for “prep.” Some did, some did not, especially those who had been teaching the same classes for five or six years.

So what I remember most was our constant rationalization of our lot. In self-righteous fashion we reminded everyone that we were paid only for nine months’ work and that teaching was an art, a noble profession, not a mere job.

I think that we forget how fortunate teachers are in the 21st century, in terms of compensation, hours spent at work, and the general absence of physical danger, at least in comparison to the lineman, the garbage collector, or the interstate trucker. I have met hundreds of teachers who have had only one steady job: teaching. I have seldom met a land-leveler, company field man, or tractor mechanic who had not worked at a half-dozen jobs over his career — and rarely by choice.

Yes, teaching is a noble profession upon which the future of our youth rests. It is not easy, and it is not as lucrative as the law or medicine. Yet in comparison to most workers in the private sector, teachers are, in terms of working conditions and compensation, blessed.

NRO, On Teachers and Others, February 25, 2011