Archive for the ‘Mktg – Promotion’ Category

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Marketers reshape how college teams price & sell tickets …

August 10, 2011

Punch line: Colleges that are able to fill their football stadiums and basketball arenas are starting to price differentially – charging more for “hot” games.

But, the bulk of colleges are having trouble filling seats and are outsourcing ticket sales to aggressive outside organizations (think, “Boiler Room”)

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Excerpted from USA Today …

The “Haves” – Differentiated Pricing

Schools with overwhelming ticket demand are leveraging it as never before in an effort to boost revenue.

Notre Dame, for example, is varying football ticket prices by opponent for the first time this season. Games against Michigan State, Southern California and Boston College are $80; that’s $10 more than tickets for games against South Florida, Air Force and Navy.

The “Have Nots” – Outsourced Selling

“For years and years, if you put up enough billboards and sent out enough brochures, people would show up” at college games.

There not only was no need to be pushy in order to sell tickets to college games, there also was a fear of offending donors and deep-rooted fan bases by allowing non-profit colleges to have even the appearance of a chase-every-possible-dollar, professional sports business.

But, “colleges, for many years, were almost in an arms race for who could have the most seats — and they were able to fill those seats, for the most part. That has changed. … Most schools across the country have an issue with their football and/or their basketball seating demand vs. their seating capacity.”

Observers attribute this supply-demand imbalance to a combination of the tough economy, high gas prices and advances in high-definition television that have improved home viewing.

“An empty seat leaves money on the table and  is a cancer to your brand.”

Hence, the rise in outsourcing

The number of schools outsourcing proactive, full-time ticket-selling operations to companies like Aspire, IMG, and Monumental S&E has recently skyrocketed.

The typical setup: 12 to 14 full-time staffers working on commission, each making 80 to 100 phone calls a day from a database of school-connected names.

“Get potential customers to talk about their love of the school. Seek referrals and new leads. Above all, make sales — and get psyched about making sales. Every time a staffer makes a sale, they ring a bell. Staffers who don’t ring the bell enough get fired.

  • Note: Georgetown uses Monumental Sports and Entertainment

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Posted in Mktg - Pricing, Mktg - Promotion, Mktg - Selling, Sales Forces | Leave a Comment »

“Your rebate check may look like junk mail”

June 24, 2011

Interesting experience, indication of a trend.

Bought a set of new tires … tire guy pointed out that there was an applicable rebate of $20 per tire … even auto-filled out the mail-in form for me.

His parting words:“Your rebate check may look like junk mail … make sure that you don’t accidentally throw it away.”

Nice of the guy.

Have you noticed how more and more rebate and claims checks are, in fact,  looking like junk mail?

Historically, few people go through the hassle of submitting all of the docs for rebates. Historically, less than 15% of earned  rebates are claimed.

It’s just not worth the time and aggravation.

I guess that some companies think the 15% redemption rate is too high.

So, they try to aggravate “breakage” … doing things to keep folks from cashing the checks they receive.

One way to do it —  make the checks look like junk mail.

No way to run a business …

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Whew! Ronald dodges the bullet …

May 20, 2011

Punch line:  McDonald’s is standing by its clown … still another job ‘saved’ or created. But now, image consultants are dissing him.

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Excerpted from WSJ: No Pink Slip for Ronald McDonald, May 20, 2011

The 48-year-old, red-haired mascot has come under fire from health-care professionals and consumer groups who, in recent days, have asked the fast-food chain to retire Ronald McDonald.

But McDonald’s CEO says, “Ronald McDonald is going nowhere.”

“Ronald McDonald is an ambassador for McDonald’s, and he is an ambassador for good.”

There’s no doubt that Ronald McDonald is well known. He ranks fourth in consumer awareness out of 2,800 celebrities.

“Ronald is recognized by more than 99% of U.S. consumers. Of course, just because consumers know someone doesn’t mean they like them or trust them.”

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Some image consultants are beginning to question how relevant Ronald McDonald even is to kids anymore — and whether he has kept pace with McDonald’s own reinvention.

McDonald’s has modernized its image in recent years by remodeling restaurants … by selling frappes and fruit smoothies and by offering free wi-fi to customers.

“Mascots were heavily used in the mid part of the last century, but not so much anymore unless you’re an insurance company and you have a duck or a gecko or a caveman,”

“I’m not so sure Ronald is keeping up with where the brand is going. I question whether he’s still meaningful or a throwback to the last century.”

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#1 Mom? Moms not feeling the love on Mother’s Day…

May 4, 2011

TakeAway: As brands aim to offer new ways to please moms on Mother’s Day, many moms feel neglected, and even hate their presents. 

While Americans expect to spend more this year on Mother’s day, nearly $140,  some Moms would just prefer time off from housework and a homemade card … 

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Excerpted from MediaPost.com, “Brands reach out to moms, yet they feel dissed,” April 28, 2011

With Mother’s Day a few weeks off, marketers are doing their best to offer novel ways to remember her.

Lowe’s is targeting outdoor DIY projects as the ideal way to please her, offering plenty of mom-friendly ambience and lots of bright flowers. The retailer is even connecting it to a mom-friendly cause, selling Susan G. Komen Plant for the Cure plants.

Hallmark is getting some buzz for an extensive line of postage-paid greeting cards.

But … moms aren’t exactly feeling the love. A new survey from the Mom Complex reports that 30% of moms say they typically get honored for no more than 5 to 10 minutes on Mother’s Day. In fact, 40% feel their husband and children come first on Mother’s Day, and 12% feel they don’t even make the list.

Oh, and they hate their presents. What moms really want is time off from housework (57%) and a homemade gift or card. While 42% want that, only 28% got it last year …

… Americans will be spending more on mom this year — even if it’s not on the things she wants. The National Retail Federation reports that Americans are planning to spend $140.73 on gifts, up from $126.90 last year … Total spending is expected to reach $16.3 billion …

… The biggest change is in electronics with 13.3% planning to get mom an electronic gift, a 48% jump from last year. Jewelry is expected to be popular, with 31.2% percent of celebrants planning to buy mom silver, gold or diamonds — a 19% increase. …. it will likely be one of the biggest holidays of the year for restaurants, with 54.7% treating mom to dinner or brunch. About 65% will buy flowers.

Edit by KJM

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Not sure what to get? How about an experiential gift card?

April 13, 2011

TakeAway: People are starting to turn away from stuff and turn to experiences and memories.

The rise of “experiential gift cards” has shown that you can do more with just an old gift card. Gone are the days of unwanted toasters or even gift cards to stores you don’t frequent. 

Gift cards loaded with a value that covers a variety of different activities are becoming the new rage.

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Excerpted from AdAge, “New Gift-Card Trend Swaps Stuff for ‘Social Capital'” , March 28, 2011

“Experiential gift cards” …are becoming more popular, because they allow creativity for the giver and flexibility for the recipient.

“People aren’t looking for ‘stuff’ anymore, they’re looking for experiences,” … You can post pictures of your African-safari experience, but you can’t put up a picture of your Mercedes. That’s tacky.”

Smartbox offers gift-card boxes that retail from $49 to $369 … Inside the box is the card, of course, but also a book of the possible choices for such experiences as dinner for two in New York City (50 choices for $99); adventures like white-water rafting and surfing in California (100 choices for $69); and upscale getaways in the Great Lakes (35 choices for $369).

Experiential gifts, … are relatively nascent in the U.S. compared to the other places in the world such as the U.K. and Australia.

“In the U.S., this is really new, especially at retail, …The growth is really happening now”

Smartbox …has pushed out an aggressive public-relations campaign and more recently begun spreading its message via social media. …partnership with Zagat Smartbox Table for Two, and was marketed at Valentine’s Day with PR and a social-media promotion. …

“All happiness research points to the fact that it’s not the things you have that make you happy, it’s the experiences you have,” …”The lag in experience gifts and the lag in consumers recognizing it was an option surprised me, but marketers are catching on now.”

Gift experiences have the added bonus of making the giver more memorable. You won’t remember who gave you socks or a sweater, but you’ll probably recall who gave you an experience where a memory was created,…”A gift is a connection between me and you, and things have far less meaning than experiences.”

Edit by HH

 

Posted in Gifts - Gift Cards, Mktg - Promotion | Leave a Comment »

“It starts with the product …”

January 10, 2011

TakeAway: Consumers are still cash-strapped, but that hasn’t stopped Ford from selling more cars. The company’s sales were up 19% last month, and its year-to-date sales increased 21% versus the last year.  Ford’s secret?  “It all starts with product.”  Because without product, there’s nothing to market!

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Excerpted from Forbes, “Ford: How To Maintain A Sales Streak In Tough Times” By Elaine Wong, November 5, 2010

Ford’s VP of U.S. marketing, sales and service describes how Ford is tapping into social media and consumer trends toward vehicle customization, fuel efficiency and higher product quality to drive sales in an economic downturn.

Ford’s product development team has been focused on their four pillars – quality, green, safety and smart. The sales and marketing team  has done a lot of work to transform the image of Ford to being not just a company that makes the bestselling truck [F-Series] in America for 33 years or the Mustang, but a company that delivers products that are fun to drive.

Ford has a program called Drive One 4 UR School, where thousands of dealers help support local high schools, many of which are under a lot of financial stress. Fundraisers give people a chance to test drive new products. People aren’t naturally inclined to go to the dealer to get a new car when they go to a school event, but if they’re test driving it to help raise funds for their school and as part of a no-pressure environment, they may reconsider.

Ford is continuing its “rant” style of advertising when launching its new campaign for the F-150.  The ads cut through the clutter, have great recall among consumers and, if imitation is the sincerest form of flattery, more kinds of advertising with the “rant” style are being used in Iots of other commercials.

Edit by AMW

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Full Article:
http://www.forbes.com/2010/11/05/ford-sales-strategy-economy-social-media-elaine-wong-cmo-network_print.html

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Food Trucks Serve Up Branding, Not Just Lunch

December 30, 2010

TakeAway:  Pairing a brand’s message with a food truck has been increasingly employed in recent months, with major advertisers using trucks as rolling sandwich boards while advertising agencies issue the call to independent food truck operators to participate in brand-sponsored events.

Food trucks have grown in popularity in major cities, and advertisers now see them as a vehicle for delivering their message directly to consumers.

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Excerpted from NYTimes, “Marketers Discover Trucks Can Deliver More Than Food” By Tanzina Vega, November 28, 2010

When the Heavenly Mountain Resort in Lake Tahoe, Nevada, wanted to promote its ski passes this season, it bypassed the usual advertising media like billboards, radio and print ads and instead chose a truck filled with snow cones driven by two improv actors to publicize its message.  For Heavenly, the idea to distribute snow cones from a truck was simple: “We’re going to give you a little bit of the mountain..”  

The challenge with buying traditional media is “paying for eyeballs of people who have no interest in what you’re trying to sell.”

But some brands prefer to create their own food truck instead of hiring an independent operator. To promote its new product, Heinz Dip & Squeeze Ketchup, the H.J. Heinz Company bought a used truck and added a custom kitchen. The truck was then branded with a custom wrapping that displayed the “Heinz Ketchup Road Trip” message along with the related Twitter handle and Facebook page address.  At each stop, visitors get a free serving of Ore-Ida crinkle cut fries or Ore-Ida sweet potato fries and a packet of the Dip & Squeeze Ketchup.  The company will also give away promotional T-shirts to people who have participated in one of the social media parts of the campaign.

Most food trucks, corporate or not, use social media tools like Twitter to post their location to their followers, and now Zagat, the restaurant guide, has gotten into the game. In early November, Zagat announced a food truck Web site that features a map with the location of the food trucks that it partners with. They are also conducting a survey of the best food trucks in New York.

Edit by AMW

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Full Article:

http://www.nytimes.com/2010/11/29/business/media/29truck.html?_r=1&nl=todaysheadlines&emc=a210

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Pucker up with Nivea in Times Square for NYE

December 24, 2010

TakeAway: Surely there is no moment when more Americans lock lips than at midnight on Dec. 31, when a kiss marks the New Year, and that is why Nivea Lip Care ties its biggest marketing effort of the year to New Year’s Eve. 

Nivea is a natural fit as a sponsor, just as Waterford Crystal is for the crystal ball that descends on Times Square for the countdown.

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Excerpted from NYTimes, “For New Year’s Eve, the Tie-Ins Erupt” By Andrew Adam Newman, December 13, 2010

For the third consecutive year, Nivea is an official sponsor of the New Year’s Eve celebration in Times Square, and along with sponsoring a stage called the Nivea Kiss Platform, it will hand out about 30,000 samples of lip balm to revelers in the hours before the countdown.

“The brand is based on the insight that something wonderful happens when skin touches skin and humans connect, and the New Year’s Eve kiss sets the tone for the new year to come,” said Magnus Jonsson, vice president for marketing at Beiersdorf, parent company for Nivea.

This year, Nivea also is holding a contest on its Facebook page where couples in long-distance relationships vie for a chance to win a free trip to New York to be reunited in Times Square on New Year’s, with two couples who garner the most votes on Facebook winning.

Nearly as prominent as the ball are the numerals that light up to mark the dawning year, and Duracell is hoping to become similarly synonymous. For the third consecutive November, the brand set up what it calls the Duracell Power Lab in Times Square, which consists of four stationary bikes that when pedaled charge batteries that will subsequently be used to light the sign.  This year the bikes are housed in a trailer that for the rest of the year will be deployed to disaster areas, where it will provide charging stations for items including cellphones, laptops, and rechargeable batteries.  “We talk a lot about people trusting Duracell when it just has to work,” said its marketing director. When the numerals light up, “it’s that one iconic moment of the holiday season when millions of people are watching and it’s a great association for Duracell batteries being trusted in an important moment.”

The Times Square Alliance estimates that one million people attend the New Year’s Eve festivities. A Trylon Strategic Media Relations study commissioned by the group pegged the international audience at more than one billion.

Edit by AMW

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Full Article:
http://www.nytimes.com/2010/12/14/business/media/14adco.html?ref=media

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Pass the sea salt … now, there’s a gamechanger is the French Fries War.

November 30, 2010

TakeAway:  Wendy’s announced a national marketing plan for its new recipe for French fries, the biggest overhaul of its fries in 41 years. 

Wendy’s CMO admitted fries “are something we hadn’t been a leader in, in the past.” 

The $25 million campaign aims to educate consumers about Wendy’s new fries that it hopes will compete mightily against McDonald’s.

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Excerpted from NYTimes, “Wendy’s Rethinks Fries in Nod to More Natural Foods” By Tanzina Vega, November 21, 2010

For the last year, the company has been examining its product line for opportunities to promote food made with more natural ingredients. Wendy’s “new natural-cut fries with sea salt” use Russet Burbank potatoes and are thinner and crisper than the current fries and will be unpeeled.

The idea is to provide an alternative to McDonald’s, which has long been the leader in French fry sales. The Wendy’s campaign includes two television spots that will run on cable and network stations such as TBS, VH1 and Bravo and during shows such as “Conan” and “Lopez Tonight.” The campaign includes two radio commercials that will air nationally, as well as billboards around the country to entice people to select Wendy’s when they get hungry.

The digital campaign includes the use of the Wendy’s Web site, a Twitter account, a Facebook fan page and digital banner ads. The company’s YouTube channel will feature an ad for the fries and the background of the Wendy’s Twitter account page will also feature art for the fries and a “Fry for All” app that lets users select a box of fries that they can post on their Facebook page so they can “share” fries with their friends. The idea of sharing is central to the campaign. “When something is really good, you don’t necessarily want to share it so easily,” said the chief executive and CEO of Wendy’s agency of record.

Edit by AMW

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Full Article:

http://www.nytimes.com/2010/11/22/business/media/22wendys.html?ref=media

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Posted in Food & Drink, Mktg - Product & Innovation, Mktg - Promotion | Leave a Comment »

Is that a giant Quiznos toaster floating across the outfield grass?

November 29, 2010

TakeAway: Marketers are always looking for ways to increase consumers’ engagement with their brands.

Augmented reality technology offers a new way to do this.

But as Quiznos has learned, there are still some issues to be worked out.

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Excerpted from Fortune, “Augmented reality lacks bite for marketers,” by Kristina Grifantini, November 12, 2010

While enjoying a game at Yankee Stadium, you take out your smart phone and point its camera at the field. If the resulting image on your screen shows a giant Quiznos toaster floating above the grass, does that make you more inclined to go get a Quiznos sandwich? …

To users, augmented reality (AR) can seem like magic. When they hold up their phones to their surroundings, the program uses the phone’s camera, GPS, compass, and Web connection to superimpose digital images and information on an on-screen view. …

Though this technology has been around for a while, it has largely been confined to computers with webcams, or to special goggles and headsets. But with the exploding popularity of sensor-equipped smart phones, marketers are trying to use it to sell everything from lunch to concert tickets.

For the Denver-based Quiznos, the idea came about when the number of mobile users visiting its website skyrocketed from 20,000 to a million in a year. Tim Kraus, Quiznos’s interactive-marketing manager, wondered how he could turn those visits into additional real-life trips to one of the chain’s 5,000-plus stores. …

But since Quiznos launched the AR campaign in June, fewer than 2,000 people have user the layer, says Kraus, and he is unable to link the campaign to any increase in sales. Undaunted, he calls it an early-stage experiment to discover what works and what doesn’t. Aside from the fun and novelty factor, “there’s actually some utility in there,” he says. “I definitely think it’s a platform that’s going to grow.” …

This fall, Qualcomm released a software development kit that programmers can use to build vision-based AR applications for Android phones; the company expects commercial campaigns based on the technology to kick off next year. …

Edit by DMG

 

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Full Article
http://tech.fortune.cnn.com/2010/11/12/augmented-reality-lacks-bite-for-marketers/

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Children’s Tylenol is back, but will Mom buy?

November 22, 2010

TakeAway:  The first children’s Tylenol products are returning to drugstore shelves after a long safety recall, and maker Johnson & Johnson now faces the tricky task of persuading parents to buy the pain reliever again. 

The company has taken a low-key approach and must walk a messaging tightrope, providing reassurance that it has fixed its problems without calling so much attention to them that safety concerns resurface.

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Excerpted from WSJ, “Tylenol for Kids Returns to Shelves” By Jonathan Rockoff, November 18, 2010

Bottles of the grape-flavored version of children’s Tylenol have begun reappearing in pharmacies across the country half a year after several J&J over-the-counter children’s medicines were pulled because of manufacturing problems.

The recalls have cost the company hundreds of millions of dollars in lost sales and prompted a shake-up of manufacturing and management.  The quality problems included floating metal particles in the medicines and the potential for excessive concentrations of an active ingredient.

To get parents to return to Tylenol, J&J must combat not just the hit to its reputation but also the encroachment of rival brands, which have been taking over shelf space in drugstores. Cheaper private-label brands are also gaining amid the tough economy as sales of branded medicines drop.  Loyalty to Tylenol’s pain pills, a strong indication that customers will buy the product, dropped 7% in the past year, according to an annual survey in August of 35,000 Americans.  Among over-the-counter pain medicines, Tylenol ranked behind rivals Advil, Aleve and Excedrin in terms of customer loyalty after trailing only Advil in 2009.

“You don’t want to always be apologizing, because that cues the wrong response. You want to be cuing the core emotional benefits that Tylenol delivers,” said the chief executive of a company that consulted for J&J.  There are no signs in stores calling attention to the return, and packaging appears similar to the box before the recall.

Tylenol is a signature brand for J&J, which also sells prescription drugs and medical devices. The company’s swift withdrawal of the medicine during a fatal tampering episode in 1982 endeared J&J and Tylenol to generations of consumers.  Some of that goodwill persists, even after the most recent recalls.

Edit by AMW

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Full Article:

http://online.wsj.com/article/SB10001424052748703688704575620851371476806.html


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Posted in Mktg - Product Recalls, Mktg - Promotion | Leave a Comment »

Where, oh where, is My McRib?

November 2, 2010

TakeAway: The McRib – a boneless pork patty molded into the shape of a rib slab and adorned with pickles, onions and barbecue sauce on a bun – is almost never available at all McDonald’s restaurants at the same time.

Instead, the Golden Arches offers them in different cities at different times, rarely for longer than a few weeks.

The elusive nature of McRibs has prompted a “McRib Locator” website and offers cache to a humdrum sandwich.

Sometimes, distribution is slim on purpose.

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Excerpted from the Wall Street Journal, “Bona Fide Fans Chase Rib-Free Rib Sandwich” By Julie Jargon and David Kesmodel, October 11, 2010

The sandwich’s elusiveness has created a fan base of people who go to considerable lengths to munch on a McRib.  On Nov. 2, for the first time in 16 years, McDonald’s will offer the McRib at outlets across the U.S., but even then, only for six weeks or so. “It doesn’t sell well all year long because people get tired of it,” says McDonald’s USA President Jan Fields.

Plenty of companies offer limited-time products to coincide with holidays or promotions. Burger King offered actual ribs for a while this year. Mars sells red and green M&M’s at Christmas.

While the chain says it sold more than 60 million McRib sandwiches in the last three years, it sold 1.5 billion Big Macs in the same period. But every sale counts in a business that demands month after month of strong same-store sales.

Edit by AMW

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Full Article:
http://online.wsj.com/article/SB10001424052748704696304575538373863627604.html?mod=WSJ_hps_RIGHTTopCarousel_2

 

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Posted in Mktg - Distribution, Mktg - Promotion | Leave a Comment »

Naked Juice makes a splash

October 27, 2010

TakeAway: Sales of super premium juices have held up relatively well in a downturn, despite the products’ high price points.

PepsiCo launched the first national ad campaign for Naked Juice, its premium bottled juice brand.

Acai-based juices are competing on authenticity about their products, while up-and-coming brands deride mass market brands.

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Excerpted from Brandweek, “Naked Juice Ads Tell ‘Naked Truth’” By Elaine Wong,October 1, 2010

The campaign kicked off on digital properties and Naked Juice’s Facebook page. It highlights the brand’s promise—”no added sugar or preservatives”—and invites consumers to submit their own “naked truth.” Digital banner ads show live conversations consumers are having about the brand.

Print ads, which break in magazines such as Fitness and Shape, target consumers ages 25 to 35, who are “health-conscious, active and balanced in their food choices,” said Naked Juice’s marketing director.

Naked Juice was one of two pioneers (its rival is Odwalla) in the super premium juice category. But over time, the category’s original positioning and heritage became diluted, mainly, competitors coming into the marketplace are now introducing products with added sugar and extra water.

Edit by AMW

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Full Article:
http://www.brandweek.com/bw/content_display/news-and-features/direct/e3ifd62d5f2cdeae60ecdfda51c1a6f4e83

 

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Posted in Mktg - Positioning, Mktg - Promotion | Leave a Comment »

Ben & Jerry’s isn’t all natural?

October 25, 2010

TakeAway: Ben & Jerry’s has come a long way since it was just two guys making ice cream.

Now owned by Unilever, the brand is trying to remain authentic.

However, it’s “All Natural” ingredients aren’t what everyone considers natural.

Bowing to pressure from an advocacy group, Ben & Jerry’s will remove “All Natural” labeling from 48 products.

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Excerpted from Brandchannel, “Ben & Jerry’s Bows to ‘All Natural’ Pressure,” by Shirley Brady, September 27, 2010

…Ben & Jerry’s is removing the phrase “All Natural” from its packaging as a result of a request from a health advocacy group.

The Washington-based Center for Science in the Public Interest announced that the Vermont-based ice cream-maker, which is owned by Unilever, has agreed to remove the words “All Natural” from all its ice creams and frozen yogurts “that contain alkalized cocoa, corn syrup, partially hydrogenated soybean oil, or other ingredients that aren’t natural.”

The move “amicably” resolves a dispute arising from a letter that the Center for Science in the Public Interest sent last month to Unilever. The letter said that at least 48 Ben & Jerry’s products were “improperly labeled.”

Ben & Jerry’s responded to an inquiry from AP it won’t change any recipes, but will remove the disputed phrase gradually from all packaging.

One major point of contention: the FDA “has no formal definition for ‘natural.'” … “The Food and Drug Administration could do consumers and food manufacturers a great service by actually defining when the word ‘natural’ can and cannot be used to characterize a given ingredient,” CSPI Executive Director Michael F. Jacobson said in a statement. …

 

Edit by DMG

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Full Article
http://www.brandchannel.com/home/post/2010/09/27/Ben-Jerrys-All-Natural-Ban.aspx

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Posted in Mktg - Brands, Mktg - Promotion | Leave a Comment »

What are women talking about?

October 20, 2010

TakeAway: Women consumers are an formidable force, shaping how billions of marketing dollars are spent annually.

However, getting a deep view of their market influence, especially in a digital and social age, has been hard to come by.  A new monthly brand index aims to change that.

Women drive 85% of all consumer purchases (often by being unofficial brand ambassadors) and talk about brands constantly – about 92 per week.

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Excerpted from Brandweek, “Women’s Top Brands Listed” By Jim Cooper,September 27, 2010

A new monthly brand index that’s designed to be a comprehensive measure of the 25 brands most important to women compiles online search data, social media buzz data and online chatter.

Brands that used new media in their marketing mix were some of the biggest movers on the list. Gap, for example, which moved from No. 44 to No. 17 in August, offered a discount incentive to shoppers that checked in through Foursquare. Pizza Hut also offered a discount via Foursquare in August and saw its rank hit No. 60 from No. 73.

Brands with recently launched social initiatives also had solid gains on the index. Starbucks moved to No. 33 from No. 59 with a boost from buzz about an in-store donation program to help rebuild neighborhoods in New Orleans. And Olive Garden hit No. 92 from No. 145 with the news that it had raised $6 million for the Lymphoma and Leukemia Society through its Pasta for Pennies program.

Edit by AMW

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Full Article:
http://www.brandweek.com/bw/content_display/news-and-features/direct/e3i386774579db7c2033a69ab0af09f5664?pn=1

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Lululemon’s Ambassadors wear their loyalty on their sleeves … literally !

October 6, 2010

TakeAway: Upstart retailer Lululemon Athletica, a Vancouver-based maker and retailer of athletic wear, enlists fitness instructors as “ambassadors” to distinguish itself from sportswear giants who typically hire high-priced sports celebrities to model their outfits. 

Lululemon spends almost nothing on advertising beyond occasional print ads in yoga and running magazines; instead, ambassadors receive up to $1,000 of free apparel in return for modeling it for their clients. 

Word of mouth is certainly powerful.

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Excerpted from The Wall Street Journal, “Lululemon Grows Fast on a Slim Budget” By Kevin Helliker, September 13, 2010

Lululemon belongs to an emerging class of retailers focused primarily on designing, making and selling athletic wear to women—and grabbing growing shares of the estimated $15 billion market for women’s fitness attire. 

The companies’ believe that traditional sportswear giants have treated female athletes as an afterthought resonates with many women.

Even amid the recession, Lululemon’s high-priced apparel is selling briskly.

The company has expanded its roster of ambassadors to include running, spinning and resistance-training gurus, including some men.

In keeping with the peace-and-love ethos of yoga, Lululemon publicly describes its primary purpose as promoting good health and well-being rather than making profit.

The company says it offers free yoga classes in its stores to introduce people to yoga’s stress-relieving benefits, not to sell clothes.

Similarly, the company says its ambassador program offers vital feedback on new apparel from fitness experts.

 

Edit by AMW

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Full Article:
http://online.wsj.com/article/SB10001424052748703960004575481890366935552.html#printMode

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Puttin’ on the Ritz

October 5, 2010

TakeAway: Responding to the sharp decline in rates consumers will pay for luxury hotels during economic hard times, Ritz-Carlton will join airlines, credit-card companies, and many other hotel chains in offering a loyalty program to its customers. 

“Ritz-Carlton Rewards” will let guests earn free nights at other hotels.

The high-end chain had long held that its customers weren’t interested in anything as pedestrian as “points,” but the recession has hit luxury hotels even harder than the rest of the industry.

The new points program is one of a number of actions taken at Ritz hotels to try to attract more business and leisure travelers.

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Excerpted from the Wall Street Journal, “Ritz Carlton Bows to Recession, Adds Rewards” By Alexandra Berzon,September 14, 2010

 

“We always said in the early days, we’re not going to give you a toaster, we’re going to give you service,” said Ritz President and Chief Operating Officer Herve Humler. “That was part of the philosophy.”

The occupancy problems for luxury hotels have been compounded by what is known within the hotel industry as the “AIG effect“: Corporations that were the beneficiaries of taxpayer dollars or were laying off workers were criticized by politicians for booking expensive conferences in luxury resorts, and so they started to pull back. Recently, that problem has begun to ease slightly.

Even before the recession, the Ritz found it necessary to make changes in its high-class veneer, becoming more relevant for younger generations that were put off by the traditionally stiff service at many of its hotels.

That led to such changes as making the greetings from staff members less scripted, adding more technology to the rooms and removing the traditional piano and harp players from the lobbies in favor of, in some cases, pop music.

After spending years studying whether to include Ritz in its loyalty program, Marriott executives said that focus groups in the last year and a half began to show that customers were demanding enticements, particularly in Asia where Ritz is expanding. 

The company designed the new loyalty program to keep it separately branded from the general Marriott points program, Marriott Rewards, which has more than 30 million members who can earn points, which can be redeemed at any Marriott hotel as well as several airline partners.

 

Ritz’s top competitor, Four Seasons, has no plans to implement a loyalty program.

Edit by AMW

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Full Article:
http://online.wsj.com/article/SB10001424052748704190704575490113861298350.html

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Spend Real Money on…Fake Money?

October 4, 2010

TakeAway: Starting September 5, Target will offer Facebook Credits gift cards. 

With 500 million members, Facebook expects many to purchase the cards and use them on their favorite social games, applications and virtual goods. 

Target jumped on board, expecting the markets for online gaming and digital music to continue to grow.  For some potential cross-promotion, Target also has more than 1.5 million fans on its Facebook page.

What ever happened to good old conversation or handwritten letters, anyway?

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Excerpted from USA Today, “Target to sell Facebook Credits gift cards” By Jon Swartz, September 2, 2010

The new Facebook gift cards will be available in values of $15, $25 and $50 at all of Target’s 1,750 retail stores and at Target.com. Two or three more national retailers will start selling the cards in coming months.

This will be the first time Facebook has had any presence in a retail store. Facebook already has an arrangement with online-payment services PayPal and MOL to purchase Facebook Credits.

More than 200 million people play free social games on Facebook each month, according to Facebook. And many of them are beginning to spend money on premium goods and services associated with those games.  By year’s end, Facebook expects to have gift card credits available for its thousands of games. At least 19 games on Facebook have more than 10 million active users a month.

 Facebook’s entry into the growing prepaid gift card market could prove lucrative. The domestic prepaid gift card market is expected to reach $86.2billion this year, compared with $80.6billion in 2009, according to Mercator Advisory Group.

Edit by AMW

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Full Article:
http://www.usatoday.com/tech/news/2010-09-01-target01_ST_N.htm

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Pizza Hut searches for (internal) stars …

September 30, 2010

TakeAway: Pizza Hut has created a new ad campaign that moves from a pricing war with rivals Domino’s and Papa John’s to differentiation purely based on branding through employee spokespeople. 

There is no mention of deals or new-product offerings, and the ads seem to be working.

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Excerpted from AdAge, “Pizza Hut Makes Its Staff the Stars in Brand-Focused Campaign” By Rupal Parekh,September 20, 2010

There are signs that Pizza Hut is beginning to gain some ground on category leader Domino’s, which has 18.4% of the market compared to Pizza Hut’s 15%. Domino’s marketing strategy – something akin to “our pizza was gross, but we fixed the recipe” – was working to some degree. Domino’s posted historic same-store sales increases earlier this year of 14.4% vs. Pizza Hut’s 6%, but in the second quarter, Pizza Hut led same-store sales with an 8% lift.

Pizza Hut’s CMO said: “We just need to incite the consumer to pull up the emotional side of the brand and the high-quality products we provide…Our brand stands for quality already…we have no need to denigrate the brand in order to get people to engage with it.”

That Pizza Hut is turning employees into spokespeople makes it one of several brands (including Nationwide Insurance, Best Buy and BP)

in the past year that have tried to personalize their companies by using homegrown marketing talent, perhaps not coincidentally, while struggling with the recession.

While it’s not a goal of the campaign, the youthful skew could help connect with what Kurt Kane, VP-brand advertising at Pizza Hut, earlier this year told Ad Age is one of two of Pizza Hut’s core consumer groups, families and young adults.

Edit by AMW

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Full Article:

http://adage.com/article?article_id=145981

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McDonald’s: Getting minorities to "love it"

September 24, 2010

TakeAway: Years ago when McDonald’s niche offerings to Hispanics on the west coast overperformed with the general market, the company realized it was on to something. 

Now, rather than develop ads and menu choices geared towards the broad, general market, McDonald’s has developed a strategy of appealing to minorities and hoping the message will catch on with a broader demographic. 

While this is a very different approach than most companies take, as the demographics of the U.S. continue to change, this strategy is sure to be copied. 

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Excerpted from Bloomberg Businessweek, “Ethnic Marketing: McDonald’s Is Loving It,” by Burt Helm, July 8, 2010

The music industry has long sold black culture to white Americans. Now McDonald’s is doing much the same. It’s taking cues from African Americans, Hispanics, and Asians to develop menus and advertising in the hopes of encouraging middle-class Caucasians to buy smoothies and snack wraps as avidly as they consume hip-hop and rock ‘n’ roll.

“The ethnic consumer tends to set trends,” says Neil Golden, McDonald’s U.S. chief marketing officer. “So they help set the tone for how we enter the marketplace.” Golden says preferences gleaned from minority consumers shape McDonald’s menu and ad choices, which are then marketed to all customers.

The fast-food giant’s strategy is a departure from the way companies typically market to American households. Usually, a company works with an agency to develop advertising aimed at the general market, then turns to boutique multicultural agencies to create versions tailored to blacks, Hispanics, or Asians. McDonald’s still creates ads specially tailored to minority groups, as it has for over 30 years, but minorities exert an increasingly influential role in its mainstream advertising as well. The company thinks they provide early exposure to new trends. …

Its low prices have helped fuel McDonald’s recent strong performance, even as the rest of the restaurant industry struggles to recover from the recession. But Golden says his minority-shapes-majority marketing strategy is paying off, too. U.S. sales rose 1.5 percent in the first three months of the year …

Golden says he first discovered how dramatically minority tastes can influence mainstream preferences when he oversaw McDonald’s marketing in the U.S. West in the 1990s. His team had developed products aimed at Hispanics called the “Fiesta Menu,” … “But [the Fiesta menu] overperformed in the general market.”

Golden went on to create a strategy for the U.S. business that he calls “Leading with Ethnic Insights.” … marketers are asked to imagine how they would sell a product if the U.S. population were only African American, Hispanic, or Asian. They look for differences to McDonald’s general market plan.

That sensitivity has already influenced new products. The fruit combinations in McDonald’s latest smoothies, for instance, reflect taste preferences in minority communities. And when the company started heavily advertising coffee drinks last year, the ads emphasized the indulgent aspects of sweeter drinks like mochas, a message that resonated with blacks, says Golden. …

Edit by DMG

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Full Article
http://www.businessweek.com/magazine/content/10_29/b4187022876832.htm

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“Cash for clunkers” … CLUNK !

September 21, 2010

From the WSJ …

Earlier this year, Christina Romer, the former chairman of the Council of Economic Advisers, wrote that cash for clunkers was an example of “very nearly the best possible countercylical fiscal policy in an economy suffering from temporarily low aggregate demand.”

Economists Atif Mian of the University of California Berkeley and Amir Sufi of the University of Chicago have examined “cash for clunkers,” the $2.85 billion program that subsidized consumers to buy new cars and destroy older ones.

Their conclusion: The program “had no long run effect on auto purchases.”

It did juice sales during its two-month run last summer, by about 360,000 cars, but then it quickly hurt sales by about the same amount, in effect stealing purchases from the future.

The program was a wash in a mere seven months.

Messrs. Mian and Sufi caution that …  if this is the result from the “best possible” stimulus program — per Ms. Romer — the impact of the others must have been awful.

Excerpted from WSJ: Stimulus for Clunkers, Sept. 20, 2010
http://online.wsj.com/article/SB10001424052748703904304575497903033602826.html?mod=WSJ_Opinion_AboveLEFTTop

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Xerox to Its Clients: “Lend Me Your Icons”

September 20, 2010

TakeAway: Xerox takes a risk with borrowed-interest advertising. 

What if people who see their new ads featuring some of their clients remember Marriott’s customer service pitch rather than Xerox? 

Xerox says, “We think because these clients are being seen in an unusual space that it will make people look twice. We think the risk is offset by the power of the creative and the relevance of the message in the marketplace.” 

Time will tell…

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Excerpted from blogs.forbes.com, “Xerox Hopes Other Brands Help New Ads Shine” By Melanie Wells,September 1, 2010

It can be difficult for B-to-B companies to create lapel-grabbing advertising. Xerox hopes to get around that in its biggest ad effort in decades by featuring clients, such as P&G and Target. Some ads feature their well-recognized brand icons shown doing Xerox-related work, such as invoicing or digitizing documents. The campaign tagline: “Ready for Real Business.” The campaign will feature 20 companies that use Xerox products or services by the end of 2011. Companies featured in the initial TV and print ads include Marriott Hotels & Resorts; Ducati, the motorcycle maker; and the University of Notre Dame. Xerox admits some companies it approached weren’t comfortable lending their brands to this campaign, other executives liked the idea of having their icons appear in media where Xerox advertises but consumer-focused companies do not. CEO Ursula Burns “picked up the phone [to fellow CEOs], saying ‘Would you be interested in being in this campaign?’” Edit by AMW* * * * *

Full Article:
http://blogs.forbes.com/melaniewells/2010/09/01/xerox-brands-ad-campaign/

 

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“What’s this for?” … when freebies are most appreciated

August 20, 2010

Marketers know that giveaways go a long way.

In a paper published in The Journal of Consumer Research, researchers show that reactions vary widely across cultures to this kind of surprise.

Specifically, American-born consumers tended to be more pleased by unexpected freebies than were consumers in Hong Kong and Taiwan.

In one experiment, consumers from each region were equally pleased when presented with a free coffee drink that they had been told to expect.

But when the drink came unexpectedly, the Westerners were more delighted.

In other experiments, Asians tended to react better to gifts that were framed as the product of luck — the lucky ticket, say, fished out of a jar.

Westerners reacted better to gifts that were ostensibly rewards for something they did.

“In Western cultures, marketers should say something like, ‘We want to thank you for your patronage and loyalty, and that is why we are giving you this gift,’ ”

 Excerpted from NYT: Where Giveaways Are Valued Most,  July 26, 2009 
http://www.nytimes.com/2009/07/27/business/27drill.html

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Hawaii Five-0 … still more to the story.

May 28, 2010

I’ve got to walk back my story that CBS was doing a great job web marketing by sending rapid-fire replies to my original 5-0 post … with promo language like “the show will rock”.

Turns out that CBS had nothing to do with the replies.

Yesterday, I received this:

Oh, my!  I have to laugh at your comment that the Hawaii Five O posts came from the CBS web marketing team. 

FYI, each of those posters is a big Alex O’Loughlin fan who simply sought to answer the questions you posed. 

We are very in tune with Alex’s career and post in many, many different sites not just yours.

As a marketing guy, I guess I automatically gave too much credit, too soon to, well, other marketing guys.

Live and learn …

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Taster’s Choice: Nescafe whoops Starbucks’ Via …

May 24, 2010

Punch line: Starbucks decided to go downmarket with Via instant coffee and now finds itself in a street brawl with the potential to knife Starbucks premium image. 

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Excerpted from BrandChannel: Nescafe Calls Starbucks’ Instant Coffee Bluff,  November 19, 2009

Under pressure from Dunkin’ Donuts and McDonald’s, and with its brand value in decline, Starbucks introduced Via instant coffee with an in-store taste-test promotion intended to prove that the new instant can’t be told apart from the store brew.

Starbucks competing against store brands ?

Not the usual way to maintain a brand that was built upon premium-quality coffee and the idea that Starbucks stores are America’s “third place” (after home and work).

To counter Via, Nescafé is setting up sampling stations for a taste tests of their own: Nescafe vs. Via. 

The Nescafe mantra: “A lot of hype. OR a lot of flavor.”

According to Nescafe, they’re winning convincingly.

Ouch.

Nescafé stands as a reminder and a warning: you can always take your brand down and compete on the low end.

But don’t expect your new competitors to take it lying down.

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Full article:
http://www.brandchannel.com/home/post/Nescafe-Calls-Starbucks-Instant-Coffee-Bluff.aspx

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Beating the promotion cycle

April 23, 2010

TakeAway:  Jos A Bank responded to the downturn the way many companies did – discount, discount, discount.

But Jos A Bank, unlike most companies, appears positioned to carry its short-term success into long-term profitability. 

Thanks to several operating decisions (maintaining control over most of its manufacturing and shipping, and exploiting the downturn real estate market to negotiate low rent leases), Jos A Banks is maintaining profitability while acquiring new consumers. 

Did Jos A Bank figure out how to successfully execute and beat the margin killing promotion cycle?

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Excerpted from Washington Post, “The economic downturn suits menswear retailer Jos. A. Bank just fine,” By Ylan Q. Mui, April 19, 2010

… Jos. A. Bank began making headlines when — just days after the stock market plummeted to a 12-year-low — it offered to refund any suit purchase to customers who lost their jobs.

It rolled out aggressive promotions — such as buy one suit, get two for free — to lure new shoppers. The retailer revamped its Web site, opened new stores and started renting tuxedos. Last week, it announced it would open five pilot outlet stores that could become models for a new line of business.

Such moves have fueled an 11 percent increase in sales … during the last fiscal year and a 21 percent jump in profits … Wall Street valued the company at $1 billion this spring for the first time. Its stock price has more than doubled since last summer …

It seems an unlikely time for a rally. Retailers suffered massive losses as the financial crisis of 2008 froze consumers’ wallets and high unemployment rates stymied prospects for recovery …

Jos. A. Bank responded to the downturn with sharp pricing and inventive promotions … “They have a compelling price-value message with a good-quality product. . . . In this environment, that is what draws the consumer.”

But discounting can become a vicious cycle, and many retailers have struggled to wean shoppers off heavy promotions. Jos. A. Bank experimented with more traditional pricing during Father’s Day last year — typically one of its busiest holidays — and found sales dropped off. When it returned to aggressive promotions, customers came back. It has tested traditional pricing several times since with limited success.

Black said the company will continue discounting as long as necessary. Because it manufactures nearly all of its products, the retailer has greater flexibility to determine prices. The promotions have squeezed profit margins, but the company has made up part of the difference by saving on shipping and materials and negotiating some lower rents …

The retailer’s trademark suits have become increasingly important sales drivers, accounting for nearly 40 percent of sales last year compared to about 30 percent in 2008. Though Black said existing customers are purchasing less, the chain has enticed new shoppers away from competitors. Its customer file has grown 18 percent …

Meanwhile, Jos. A. Bank is testing several new concepts. Early this year, it began offering tuxedo rentals at some stores through a third-party distributor. The company is hoping the service will bring new customers through its doors, who could then be persuaded to purchase other clothing …

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Full Article
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/18/AR2010041802777.html?hpid=artslot

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Red Bull’s extreme marketing …soccer in the U.S.?

March 30, 2010

TakeAway: When does a marketing playbook need to be adjusted? 

Red Bull may provide us with an example very soon. 

The U.S. energy drink category-leader just invested $220M in a struggling MLS team and a massive MLS stadium — an investment in, well, a non-extreme sport that doesn’t exactly match RB’s image.

Soccer sponsorships have worked in other countries, but in the U.S. professional soccer has yet to generate even a fraction of the following that soccer boasts in the rest of the world. 

And, it is very unclear how many soccer moms are going to let their young kids embrace this high caffeine drink.

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Excerpted from WSJ, “Red Bull’s Latest Buzz: New Soccer Stadium,” By Matthew Futterman, March 18, 2010

There may be easier ways to sell drinks than buying a struggling sports team and building the biggest soccer stadium the country has ever seen atop a former industrial-waste site.

Yet that’s exactly the playbook Austrian “energy drink” maker Red Bull has been following for the past four years. The strategy will be unleashed this [last] weekend when the $220 million Red Bull Arena opens in Harrison, N.J. …

The team [New York Red Bulls] and stadium represent the biggest and most visible foreign investment ever made in professional soccer in the U.S.— even as closely held Red Bull had flat revenue and faces challenges from rivals like Monster Energy, distributed by Coke, and Rockstar, distributed by Pepsi.

“As soon as we decide to take part in a sport, we either do it properly or we don’t do it at all.”

Still, 15 years into its existence, Major League Soccer boasts just two profitable teams, and a labor dispute with players has jeopardized the current season. The Red Bulls themselves … have been something of a flop …

The venture is in keeping with the unorthodox marketing moves — including a festival for homemade flying machines and a half-pipe built for Olympic snowboarder Shaun White — Red Bull has become known for since its emergence in Europe in the late 1980s …

“Edgy marketing is part of this category, and they’re the grand-daddy of energy drinks,” says publisher of Beverage Digest. “They’ve done a great job building their brand both here and in Europe.”

Red Bull’s brand strength allowed it to outpace the industry last year in the U.S., when the premium-priced energy-drink market was growing at just 0.1% and Red Bull sales were up 1.1% …

In the U.S., Red Bull has a 33% share of the energy-drink market by dollars, ahead of Coke’s Monster, which has a 27% share and holds second place. But Monster has been gaining with the help of its parent company, as has Pepsi’s Rockstar.

Red Bull wields its identity as a rebellious category creator, associating itself mostly with activities and athletes that display a mix of courage and daring, such as Shawn White, the snowboarder sometimes known as the “Flying Tomato” for his shoulder-length red hair.

Other sports stars the company favors include airborne surfers, dirt bikers, skiers, stunt specialists or race-car drivers more obsessed with speed than grounded team-sport athletes.

It’s rare to see a Red Bull commercial on television — though the brand still gets plenty of play, whether it’s Britney Spears photographed drinking it or Lindsey Vonn sporting its logo on her helmet …

Within the stadium, the company’s logo —two bulls butting horns in front of a yellow sun—is emblazoned on the lower-deck seats. Where some companies might have plastered billboards throughout the building, Red Bull CEO says the idea is to build his brand through the quality of the experience the arena offers …

This project was about soccer … And selling caffeinated drinks.

“Everything that we do is for the value and the image of the brand.”

Edit by TJS

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Full Article
http://online.wsj.com/article/SB10001424052748704059004575127842812699832.html

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Recipes for success … driving consumer sales.

March 26, 2010

TakeAway:  Driving product usage is not as simple as it once was for food companies. 

Consumers now look for pizzazz in food products’ “back of the box” suggestions, yet consumers do not want to have to go to the grocery store to buy new/uncommon ingredients. 

Consumers do not want to be treated as cooking novices, yet more than 11 ingredients is way too complex. 

It’s a tricky position for food companies. 

As a result, the process to pick just the right recipe for the precious 2 inches of real estate on the product label is exhaustive and all inclusive. 

And, this process has a lot riding on it because if the recipe does not spur use, these products will sit, forgotten in the back of the pantry.

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Excerpted from WSJ, “For Old Labels, a Little Zest,” By Miriam Gottfried, March 18, 2010

Recipe developers at Campbell Soup spent months testing and tasting before reaching a decision: “Chicken With Sun-Dried Tomatoes” was safe enough to print on the back of a can of cream-of-mushroom soup.

Some of the most beloved American dishes started as back-of-the-package recipes, designed in corporate test kitchens to sell more cans of soup, bags of noodles and boxes of cake mix …

Now America’s increasingly sophisticated palate, influenced by TV cooking shows, celebrity chefs and gourmet ingredients, presents a problem. Many food companies have had trouble increasing revenue …

Food companies need to figure out how to update their recipes to entice today’s more ambitious cooks to use products that might otherwise sit on the shelf for months. The recipes must make cooks feel like they’re doing more than just adding eggs to a mix, but not use so many ingredients to require a special trip to the store. If they get too trendy, they risk alienating their core consumers …

Campbell’s began the quest for new label recipes last February …

The group was unsure about “Chicken With Sun-Dried Tomatoes”—boneless, skinless chicken breasts with a sauce of cream-of-mushroom-soup, basil, shallots, red-wine vinegar and sun-dried tomatoes and served atop egg noodles. Chicken is the most popular search term on CampbellsKitchen.com, but the group was divided on sun-dried tomatoes.

“Label recipes are weeknight meals,” says Campbell’s Kitchen group manager. “Most involve rice or pasta. The real estate is small, so there are few ingredients and few steps.”

In May, recipes were sent to consumers to try at home, asking if they liked the taste, found the ingredients affordable, and whether they would make the dishes again.

Testers liked a fajita recipe but didn’t think cheddar cheese soup was a necessary ingredient. Another recipe for beef short ribs … called for braising liquid made with French-onion soup and beer … “It looked like beer was the new wine, and it might be the right time for this recipe.”  But testers said they had to make a special trip to buy beer. Short ribs were unfamiliar and some consumers thought they were too expensive …

In the end, “Chicken With Sun-Dried Tomatoes” stood out because the gourmet twist was in the title and there were more ingredients—11 instead of the four to seven used in a typical recipe …

The recipe will appear on cream-of-mushroom soup cans starting in August. Sales of cream-of-mushroom soup … usually take off in September as cold weather approaches, and the company hopes to see growth in the business from the recipe promotion …

Edit by TJS

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Full Article
http://online.wsj.com/article/SB20001424052748704059004575127752736708066.html#mod=todays_us_personal_journal

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Coupons surge as economy sputters …

February 26, 2010

No surprise, consumers are more price conscious in the down economy … and companies are responding with a deluge of coupons …

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Excerpted from BrandChannel: Heinz – Back To Brand Basics, And Coupons,  February 19, 2010

Consumers are firmly entrenched in a new money-saving mind-set.

This new behavior includes more meals at home and a dramatic increase in coupon use 

“Coupons are back on shoppers’ radar; the economic downturn has instilled a drive to be smart and frugal about spending, and coupons definitely have a role in fulfilling it.”

Americans cashed in 3.3 billion coupons in 2009, a 27 percent jump from 2008 when the financial crisis tipped the US into recession.

“Brands saw coupons as a key to maintaining brand strength … they stood to lose sales to lower-priced competitors and store brands — so they doubled down, hoping to create brand loyalty once the economic dust settles.”

Full article:
http://www.brandchannel.com/home/post/2010/02/19/Heinz-Back-To-Brand-Basics-And-Coupons.aspx

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Loss leader pricing – why do it?

January 25, 2010

TakeAway:  Though it’s facing a lot of resistance from its franchisees, Burger is mandating a profit killing price for the double cheeseburger. 

Why in the world would a global franchisor want to force it’s franchisees to lose money.  The answer is, of course the franchisor doesn’t want the franchisee to lose money.  The franchisor wants to use the item as bait to bring in customers and increase the sales of other, and most likely, higher margin products. 

If Burger King franchisees do not get this logic or have proof that this logic is false, then Burger King may have bigger problems to worry about.

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Excerpted from WSJ, “Burger King Franchisees Can’t Have It Their Way,” By Richard Gibson, January 21, 2010

The price of a double cheeseburger is generating a lot of heat among Burger King franchisees.

In an ongoing dispute that could affect how the nation’s hundreds of franchise organizations set prices, the burger chain is insisting that its two beef-patty sandwich be sold for no more than $1—in line with other items on its “Value Menu.”

But the company’s franchisees claim that at that price, they lose money.

Although the loss on each sandwich may only be a few cents, a typical restaurant might sell several hundred of the burgers each week.

Most franchisees are following orders for now, but the National Franchisee Association for Burger King, which represents restaurant operators across the U.S., filed a lawsuit last fall in U.S. District Court in Florida, asserting that the company’s franchise agreements don’t allow it to dictate prices.

Burger King … says it sees the value promotion as key to competing effectively in the current consumer environment …

A court ruling that’s favorable to Burger King could embolden other franchisers to mandate prices. Many franchisees have long regarded their power to set prices as testament to their independence.

Burger King’s arch rival, McDonald’s, faced a similar issue, when its franchisees rebelled against a $1 double cheeseburger. The matter was defused when the fast-food giant removed one of the sandwich’s two slices of cheese and renamed it the McDouble, cutting the cost of ingredients …

Burger King’s franchisees say they usually get the chance to sign off on price changes, and that they’ve twice rejected a $1 double cheeseburger. Burger King confirms that it previously didn’t dictate prices on individual items, though it did require a $1 maximum price on Value Menu items.

The company won a separate case in 2008 requiring franchisees to offer the Value Menu, which is core to its efforts to attract price-conscious consumers.

A company might choose to set prices if it thinks the stores are charging so much that its royalties—and its reputation—are being diminished. But most companies don’t like to rile their franchisees …

Some franchises … say they recommend prices, especially in connection with national marketing campaigns.  For example, Papa John’s is offering a special Super Bowl pizza for $11.99, though it notes in advertisements that the price is valid only at “participating” restaurants.

“Most franchisees follow our recommended national offers,” says Burger King’s SVP … since customers might argue with the store’s workers if they’re charged more.”

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Full Article
http://online.wsj.com/article/SB20001424052748704320104575014941842011972.html#mod=todays_us_section_b

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Use virtual currency to buy virtual gifts … that's the Xmas spirit !

December 18, 2009

Key Takeaway: Looking to find a way to help increase customer interaction with your brand while, at the same time, take advantage of the social media boom?

The secret to answering these crucial questions may be through the use of virtual currency.

The social media crowd, especially women, tend to love the notion of virtual currency that can be used to obtain coupons and promotions, purchase virtual gifts for friends, or simply advance their game progress. Brand managers, if successful, could potentially turn the gift of virtual currency into a real-money transaction.

Take that, Monopoly!

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Excerpted from BrandWeek, “Women Clicking to Earn Virtual Dollars” by Stacy Straczynski, November 10, 2009

Women are jumping at the chance to earn online points and virtual dollars, according to a new report from online marketing firm Q Interactive. The survey, released at this week’s Social Media World Forum, found that 78 percent of women who play social media games clicked on an ad or signed up for a promotion to earn virtual currency.

“One of the primary ways marketers can leverage [social media] interaction is through virtual currency,” said Matt Wise, president Q Interactive. “If you take a look at some of the big game platforms, like Zynga, they comment that a third of their revenue is generated by lead generation, which is advertisers and brands interacting with consumers.”

“It talks to the fact that women are interacting with these games,” said Wise. “If you can create a positive brand experience, it’s an excellent way to weave advertisements into a game because you’ve got the attention of the consumers. . . . It’s a positive experience for the consumer and keeps the consumer engaged in the game by getting more virtual points and ideally playing some more.”

Women mainly attributed their virtual currency usage to advance in their games (37.7 percent) or give virtual gifts (17.3 percent), while many (39.7 percent) use it for both. Recipients claimed that using virtual currency was “fun” and “addictive” (33 percent) and they enjoyed being able to give gifts (25 percent), as well as advance in their games (24 percent). Virtual currency also sparked feelings of competitiveness (8 percent) and personal wealth (8 percent).

Top social media games on Facebook for Nov. 10 were Farmville, Causes, Café World, Mafia Wars and Aquarium, according to AppData.com, which tracks daily metrics and trends for Facebook applications.

Edit by JMZ

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Full Article:
http://www.brandweek.com/bw/content_display/news-and-features/direct/e3i8d89a411d4e37fb51572ae37de27a3cf

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Posted in Internet - Soc Networking, Mktg - Promotion | Leave a Comment »

Use virtual currency to buy virtual gifts … that’s the Xmas spirit !

December 18, 2009

Key Takeaway: Looking to find a way to help increase customer interaction with your brand while, at the same time, take advantage of the social media boom?

The secret to answering these crucial questions may be through the use of virtual currency.

The social media crowd, especially women, tend to love the notion of virtual currency that can be used to obtain coupons and promotions, purchase virtual gifts for friends, or simply advance their game progress. Brand managers, if successful, could potentially turn the gift of virtual currency into a real-money transaction.

Take that, Monopoly!

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Excerpted from BrandWeek, “Women Clicking to Earn Virtual Dollars” by Stacy Straczynski, November 10, 2009

Women are jumping at the chance to earn online points and virtual dollars, according to a new report from online marketing firm Q Interactive. The survey, released at this week’s Social Media World Forum, found that 78 percent of women who play social media games clicked on an ad or signed up for a promotion to earn virtual currency.

“One of the primary ways marketers can leverage [social media] interaction is through virtual currency,” said Matt Wise, president Q Interactive. “If you take a look at some of the big game platforms, like Zynga, they comment that a third of their revenue is generated by lead generation, which is advertisers and brands interacting with consumers.”

“It talks to the fact that women are interacting with these games,” said Wise. “If you can create a positive brand experience, it’s an excellent way to weave advertisements into a game because you’ve got the attention of the consumers. . . . It’s a positive experience for the consumer and keeps the consumer engaged in the game by getting more virtual points and ideally playing some more.”

Women mainly attributed their virtual currency usage to advance in their games (37.7 percent) or give virtual gifts (17.3 percent), while many (39.7 percent) use it for both. Recipients claimed that using virtual currency was “fun” and “addictive” (33 percent) and they enjoyed being able to give gifts (25 percent), as well as advance in their games (24 percent). Virtual currency also sparked feelings of competitiveness (8 percent) and personal wealth (8 percent).

Top social media games on Facebook for Nov. 10 were Farmville, Causes, Café World, Mafia Wars and Aquarium, according to AppData.com, which tracks daily metrics and trends for Facebook applications.

Edit by JMZ

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Full Article:
http://www.brandweek.com/bw/content_display/news-and-features/direct/e3i8d89a411d4e37fb51572ae37de27a3cf

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Posted in Internet - Soc Networking, Mktg - Promotion | Leave a Comment »

Marketers’ new best friends …

November 9, 2009

TakeAway:  Are apps the next best thing to a Web site?  Some say yes! 

With consumers becoming more and more reliant on their cellphones as an information resource, apps are positioned to be a key tool to drive trial, loyalty, and cross-sales. 

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Excerpted from NY Times, “What Do All These Phone Apps Do? Mostly Marketing,” By Roy Furchgott, October 4, 2009

Useful applications are seen as a gold mine for building brands.

Stanley Works, the hand tool maker, iPhone App turns the phone into a level …The company does not know if the iPhone app drove a single sale or fostered any brand loyalty. But based on the 400,000 downloads, Stanley declared the iPhone level a resounding success and is now looking for other tool apps … Other companies are experimenting as well …

Behind the land rush to apps is a belief that they may be some of the cleverest advertising devised. They are advertisements that people voluntarily choose to watch and share with friends. Some apps are even consulted in store aisles when customers decide what to buy. “Apps have a huge advantage,” said a mobile market analyst … “You had to take a step to get it; you are already half sold.”

When people open an app, they give it full attention, which helped drive MasterCard’s decision to follow its A.T.M. locator app with one that would show shoppers nearby stores that offer discounts to MasterCard users.

Apps also give the company a chance to sell cardholders on more services. “It allows consumers to engage with the brand every day,” said SVP for mobile digital marketing at MasterCard …

Novelty apps have had the most downloads, research shows, use of them fades quickly …

Current thinking is that utilities that people use repeatedly are the most effective …

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Full Article
http://www.nytimes.com/2009/10/05/technology/05apps.html?ref=media

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Why is the White House mad at Edmunds … and not at me ? It’s just not fair !

November 2, 2009

Gotta admit, I’m a  bit hacked off.

This week, Team O turned its Chicago guns on Edmunds.com for reporting that “each vehicle sold with a CARS-program assist actually cost taxpayers more than $24,000”.

Source: The New Ledger, The White House Attacks Edmunds for Reaching Politically Uncomfortable Conclusion on Cash for Clunkers, Oct 30, 2009
http://newledger.com/2009/10/the-white-house-attacks-edmunds-for-reaching-politically-uncomfortable-conclusion-on-cash-for-clunkers/

Why am I hacked?  Because we  were all over this one in the Homa Files more than 2 months ago — on August 18.  (The post and the prove-it link are below.)

Shouldn’t somebody be mad at the HomaFiles, too ?

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Original post: The Homa Files, C4C … here’s the “incremental analysis”, August 18, 2009
https://kenhoma.wordpress.com/2009/08/18/c4c-heres-the-incremental-analysis/

Most reports tout the Cash for Clunkers programs as a runaway success.

In fact, about 250,000 C4C deals were transacted in a week or two – fully utilizing the budgeted $1 billion – at an average rebate of about $4,000.

But …

Marketing promotions should always be evaluated on an incremental basis.  That is, how many sales were induced over and above what would have happened any way.

Car authority J.D. Power and Associates thinks that most of the cars purchased through the C4C program were simply sales that would have happened this year but were pulled ahead a few months. The company thinks that as few as 20% of the cars bought in the program are really new sales to the market. That means that as many as 80% of the cars would have been sold this year anyway. Edmunds.com, which tracks vehicles pricing and buying data, agrees. They say: “when the public thought that the program would cease after the first billion dollars was spent, they rushed to dealerships.By Aug. 20, we could be back to pre-clunker sales levels.”

So what ?

Well, from a marketing analysis perspective, the full cost of a program should be assigned to the incremental sales.  So, the $1 trillion should be allocated across 50,000 incremental car sales (20% times 250,000).  That’s about $20,000 per incremental sale.

Recast, phase 1 of C4C took 250,000 clunkers off the road by, in effect, giving away 50,000 new, more fuel efficient cars.

Worth it?

You decide.

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Marketing that goes down the toilet … literally.

October 30, 2009

TakeAway:  Very little is off limits anymore when it comes to marketing. 

Making all marketers proud, the “adults wipes segment”  is getting more graphic and more descriptive.  YIPES.

I’m a proponent of good benefits advertisng, but this one makes me very, very queasy.

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Excerpted from NYTimes, “Adult Toilet Training, From Madison Ave.,” By Andrew Adam Newman, October 20, 2009

Toilet tissue advertising traditionally has featured fluffy clouds, cherubic toddlers and Mr. Whipple … But the ads remained steadfastly oblique about what consumers do after they tear along the perforated line.

With the prevalence these days of commercials for erectile dysfunction drugs and risqué network programming, however, tissue brands also are growing more frank … 

Cottonelle just launched a new commercial and a new Web site, CottonelleInstitute.com, to highlight not just the brand’s Aloe & E toilet paper but also its new flushable moist wipes … With both products, the brand is breaking with tradition, trumpeting not softness but rather that it is “dermatologically tested” for sensitive skin.

“Dry toilet paper is generally thought of as being a functional product, and a lot of brands in the category talk about strength and softness,” said a brand manager for Cottonelle wipes. “But we are reframing the Cottonelle brand as a personal care brand, which is a much more emotional space.”

… and the brand is pitching both rolls and wipes in one advertisement, in the hope of increasing the use of wipes, which are purchased by only 25 percent of households, many of which use them only on what she called “select usage occasions” … 

Getting adults to use more wipes in the bathroom … requires marketers to engage in a sort of toilet training with grown-ups, and Cottonelle and other brands apparently think cultural taboos have relaxed enough to do exactly that …

The wipes segment has been fast growing with only modest marketing support … and marketers say the growth of wipes does not cannibalize sales of toilet paper, because consumers tend to use them not as a replacement but an added step …

Charmin also is pitching its wipes … as complementary to rolls, and has launched a new campaign … that includes a video “product demo” …

“It’s a pretty straightforward way of speaking to consumers and letting them know how best to use the products together to get cleaner,” said a Charmin brand manager. “To my knowledge it is the most clearly that we have laid it out so far.”

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Full Article
http://www.nytimes.com/2009/10/20/business/media/20adco.html?ref=media

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Ring, ring, ring … want a couple of bucks off?

October 28, 2009

TakeAway:  Mobile coupons delivered directly  to  smartphones are catching on, spurring impulse purchases. 

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Excerpted from CNBC, “Coupons Via Cellphone: Whipping Up the Impulse Buy,” By Christina Cheddar Bank, October 15, 2009

To date, the concept of receiving coupons on your cell phone has been more theory than practice. This is despite a resurgence in coupon use and an increasing dependence on cell phones.

But with the focus on mobile coupons as a marketing tool on the rise, is the industry heading to an inflection point? A new Harris interactive survey … of more than 2,000 adults … found that 42 percent of those who were between 18 and 34 years old, and 33 percent of those 35 to 44 years old are at least somewhat interested in receiving opt-in alerts on their cell phones for specials at their favorite establishments …

This type of technology is even more impressive when one considers how many purchases consumers make on the fly … 9-in-10 Americans have made an impulse purchase when they were out shopping in a store based on a sale or a special that was going on around where they were … Among adults who own a cell phone, nearly a quarter — some 22 percent — make this type of purchase at least once per week or more often …

1020 Placecast  has designed a system to use digital marketing and mobile devices in an attempt to drive consumers to specific locations.  Using their systems, a restaurant or retailer can send an alert to a customer’s phone whenever the person is nearing its location …

Coupons.com … developed applications for the Apple’s iPhone and other devices to help consumers sort through coupons and pair them with their grocery lists … also trying out a system that allows shoppers to browse through coupon offerings on its Web site, then load the offers on to a key tag. Once at the store, shoppers can wave their key tags over the scanner during checkout in order to get the credit.

Both companies caution this is still early days for these technologies.

However, with the number of smartphone users on the rise … penetration is about 15 percent in the U.S. today (about 40 million phones) … most forecasts call for that number to at least double by the end of 2011 … coupled with the yet untapped interest, there may be significant opportunities for a technology that is simple enough for consumers to understand and appreciate …

Still, at this time, the reality is there is still more buzz about mobile coupons than people actually using these offers. But as retailers look to hone in on how they can improve relationships with their customers it seems the demand for this type of service is there.

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Full Article
http://www.cnbc.com/id/33244923

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Posted in Mktg - Promotion, Mobile Marketing, Uncategorized | Leave a Comment »

Staple brands are stealing the show

October 23, 2009

TakeAway:  The “back-to-the-basics” consumer has given new life to many staple brands, e.g. Campbell’s, Kraft.

But, these brands are quickly finding that consumer purchases should not be taken for granted. 

The competition among staple brands has grown very intense, as consumers now more freely substitute products across categories for their “perfect” purchase.  So, product relevance is more important than ever.

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Excerpted from NY Times, “More Ads for Basic Brands as Shoppers Spend Less,” By Stuart Elliott, October 7, 2009

Readers of this week’s People magazine could be excused for believing they were leafing through a Look magazine from 1959. Of the 44 full-page ads in the issue, half are for brands like Campbell’s, Jell-O, Kraft cheese, Lipton tea and Post cereal.

Familiar packaged foods that were once dismissed as dowdy or out of date are regaining their puissance as Americans spend less and eat at home more. While marketers in fields like automobiles, financial services and luxury goods are slashing ad budgets … advertising is being maintained, and in some cases increased, for prosaic mealtime products …

The campaigns are another sign that marketers, in this case food companies, are still scrambling to keep up with the profound changes in consumer behavior caused by the recession …

In many instances, suddenly budget-conscious consumers are switching from more expensive foods and “are discovering the difference they’ve been paying for is not worth it,” said the editor of a daily food industry newsletter …

The growing power of middle-brow meal items was apparent in a decision on Monday by Condé Nast to close the more upscale of its two food magazines, Gourmet, and keep publishing the more mainstream Bon Appétit. “Gourmet was a tough sell to packaged goods advertisers” … 

Venerable foodstuffs are not only looming larger in the media in which they typically appear, they are turning up in unexpected places. The episode of “Saturday Night Live” … featured commercials for a Kellogg’s cereal and Tabasco hot sauce …

And, new products are being introduced under mainstay names like French’s, Hormel, Quaker, Ritz and Wheaties …

Marketers of longtime kitchen favorites agree that as nice as it is to capitalize on nostalgic feelings, they must also meet contemporary needs.

“A lot of times, people are talking about a return to the ’50s,” said EVP and CMO at the Pinnacle Foods Group … “But it’s important we’re going forward in this new environment in a way that’s relevant to today,” she added, “instead of just playing on our history.” …

For many of these brands, said Patty Bloomfield, VP at Northlich, “the good news is people have a very strong feeling” about their quality and remember growing up with them …

As for the future, experts say they believe the back-to-basics shift in consumer sentiment could become permanent even after the economy improves …

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Full Article
http://www.nytimes.com/2009/10/07/business/media/07adco.html?ref=business

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Posted in Mktg - Brands, Mktg - Promotion | Leave a Comment »

Starbucks plays the value card … say, what ?

October 15, 2009

TakeAway:  For a company that has increased the price of its latte exponentially each time the price of milk rose by a penny, it is very intriguing to see Starbucks aggressively offering a coffee value play.  Will a high volume, low margin gain from an extension of its market footprint be able to turn this company around … we’ll see.

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Excerpted from WSJ, “Starbucks Takes New Road With Instant Coffee,” By Julie Jargon, September 30, 2009

Starbucks aims to convince Americans and Canadians that its new Via instant coffee is comparable to its brewed product …

Via is part of a strategy to provide value for customers who can’t or don’t want to splurge on a regular coffee purchase. One packet of the instant variety produces a cup of coffee for less than $1. Via costs $2.95 for a three-pack and $9.95 for a 12-pack …

Portability will be an important selling point. As such, Via will be available in stores such as REI and Office Depot … Via will be available for purchase on domestic United Airlines flights longer than two hours …

Starbucks doesn’t plan to enter traditional grocery stores until sometime next year … In traditional supermarkets, Starbucks will go up against Nestlé, maker of Nescafe Taster’s Choice, which already is running ads attacking Via.

Starbucks is launching its own ad campaign on television — a rare move for a company that has traditionally stuck to print ads and social-networking sites for its marketing.  The initial commercials will promote a “taste challenge” that will take place at Starbucks stores … “We’re convinced a majority of people won’t be able to tell the difference” …

The idea for developing an instant coffee has been brewing at Starbucks for 20 years … The company, which has struggled amid the recession as customers have either forgone Starbucks visits or purchased less expensive coffee drinks, expects its entry into the $21 billion global instant-coffee market to be a huge opportunity to boost sales …

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Full Article
http://online.wsj.com/article/SB125418430092348015.html?mod=djemMM

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Posted in Mktg - Product & Innovation, Mktg - Product Line Mgnt, Mktg - Promotion | 1 Comment »

How to seduce women … advice from Pepsi. Huh?

October 14, 2009

Takeaway: PepsiCo’s Amp Energy drink has come out with an iPhone application that gives men tips on how to seduce women.  Huh ?

It’s no surprise that PepsiCos’ brands are moving into the digital space, as most brands nowadays have some sort of Facebook page or iPhone app. But by doing something so gratuitously over-the-top, could Amp’s message harm the image of PepsiCo’s other products? Probably not, since many of their brands have an “edgy, young and fun” positioning.

However, with the information available to consumers, it’s only a matter of time before someone realizes Amp is brought to them by the same company that sells Life cereal. And while Mikey may like the app, we’re not so sure mom will.

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Excerpted from BrandWeek, “Pepsi Brand App Comes With NC-17 Rating” by Brian Morrissey, October 9, 2009

PepsiCo’s Amp Energy drink is looking to connect with young men by providing what might be the ultimate utility for the target audience: ways to score with women.

The “Amp Up Before You Score” iPhone application gives dudes various pickup lines and background info through digital flip cards for 24 different types of women, ranging from “rebound girl” to “treehugger” to the now ubiquitous “cougar.”

The app description page on iTunes warns of (promises?) profanity, crude humor and suggestive themes. Amp Energy targets men 18-24.

The Amp app suggests nearby motels, displayed on a Google Map, for rendezvous with married women. For “indie girls,” the app pulls in content from Under the Radar magazine and plots out nearby thrift stores.

Edit by JMZ

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Full Article:
http://www.brandweek.com/bw/content_display/news-and-features/digital/e3id3d058ba458918f0aee67a2b41453db2?imw=Y

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Follow-up article from WSJ:
http://online.wsj.com/article/SB10001424052748703790404574471522737925470.html?mod=WSJ_hps_MIDDLEForthNews

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Posted in Internet - Soc Networking, Mktg - Brands, Mktg - Promotion | 2 Comments »

Turn back the clock: coupon clipping brand loyaty.

October 13, 2009

TakeAway: Amid growing competition for consumer purchases, marketers are turning back the clock and resorting to increased couponing.

Now, with coupon values at all time highs, marketers are facing an should-be-expected challenge –  excessive promotion hurts brand image and trains consumers to hop from deal to deal.   

Old practices die hard.

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Excerpted from NYTimes, “A Clip-And-Save Renaissance,” By Stephanie Roosenbloom, September 24, 2009 

… It may be the digital age, but when it comes to pinching pennies, most consumers are opting for a method that is well over a 100 years old: the paper coupon. Thanks to the miserable economy, coupons … have made a comeback.

The recession has even made coupon clippers out of some groups that once avoided them, including well-to-do shoppers and young shoppers …

As the economy worsened and consumer sentiment plunged, coupon redemption ticked up 10 percent in the fourth quarter of 2008, compared with the period a year ago — the first jump in coupon redemption since the early 1990s. In the first half of this year, coupon redemption climbed 23 percent. Some 1.6 billion coupons were redeemed … it is forecast that more than three billion coupons will be redeemed this year …

Coupon redemption was also spurred on by marketers who dangled more valuable deals … there was a 9 percent increase last year in the face value of coupons …

Another way coupon clippers save is by shedding brand loyalty and buying whatever is on sale …

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Full Article
http://www.nytimes.com/2009/09/24/business/24coupon.html?em

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Which is your scarcest asset: time or money?

October 9, 2009

TakeAway:  In today’s economy, motivating consumers to pull the trigger and purchase (now) is job one for most marketers. 

Sometimes, the answer may be as simple as changing the brand message to emphasize time instead of money … or vice versa.

If buyers are “experiential”, focus on time; if they’re “possessive”, focus on money.

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Excerpted Knowledge@Wharton, “Time vs. Money:  Analyzing Which One Rules Consumer Choices, ” September 16, 2009

Pick up a magazine or turn on the TV and prepare for a flood of marketing messages about how you spend your time and money … Yet with all this talk of time and money, little is known about how consumers’ attitudes and behaviors are influenced by a product’s association with these concepts …

A new paper … argues that when companies weigh whether to go for an ad campaign with a time or a money theme, they should be aware that each evokes strong reactions from consumers …

Emphasis on time … typically leads to more favorable consumer attitudes and purchasing decisions because … time is less fungible than money … and people feel less accountable for how they spend their time because it can be more difficult to measure than monetary outlays. These two characteristics — fungibility and ambiguity — are important differentiators in how consumers think about time and money …

When money matters … for the prestige possession, subjects reported greater feelings of personal connection when they were primed to recall the money spent on the product …  those who highly valued the mere possession of the product had more favorable attitudes when prompted to consider the money involved in the purchase … 

Ultimately, the researchers conclude: “Brands can cultivate consumer relationships by first considering how consumers most identify with the product (through experience or possession) and then highlighting either their time or money spent accordingly.” … 

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Full Article
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2341

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Posted in Mktg - Consumer Behavior, Mktg - Pricing, Mktg - Promotion | Leave a Comment »

MillerCoors heading into fantasyland … fantasy football, that is.

October 6, 2009

TakeAway: Beer brands want to be top-of-mind when fantasy football managers are pretending to be savvy general managers

MillerCoors has implemented an online platform that will contain a Coors Light interface while the faux manager is on his team page.

And, MillerCoors wants to be involved with all the touch points of a fantasy sports manager, and is now targeting sports blogs.

Well, at least their product will get your mind off the fact that you passed up on Drew Brees. Or it could help you cope with the fact that you aren’t a real GM.

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Excerpted from AdAge, “Coors Light Runs Fantasy Football Advertising Blitz” By Jeremy Mullman, September 14, 2009

Coors Light is betting big on fantasy football.

MillerCoors’ flagship brand, which is the official beer sponsor of the National Football League, is rolling out a raft of new deals in and around fantasy-sports sites for the coming season.

Coors Light had previously had a presence in the sport via NFL.com, but this year it has added a series of new platforms, including deals with WaterCooler, Yardbarker and the Fantasy Sports Ventures network.

The reasons for the marketer’s enthusiasm for the category are twofold: (1) It is convinced that the brand’s core drinkers play the game in droves, and (2) the amount of user data those sites collect gives the brewer a far-greater degree of certainty that it’s ads are being seen by legal-age drinkers, so it won’t have to deal with the sort of backlash that has hounded past online ventures by brewers, such as Anheuser-Busch’s Bud.TV.

How safe? Consider that WaterCooler’s FanSection — a fantasy-football platform that’s integrated into Facebook — is able to use the social network’s user data to determine if players are 21 or older. If they are, they get a version of the game that’s literally coated in Coors, even down to the branded trash-talking modules that accompany game results that are displayed in players’ Facebook news feeds (and, as such, are viewable by all of their friends).

Edit by JMZ

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Full Article
http://adage.com/article?article_id=139005

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Posted in Mktg - Promotion, Social Media & Networking | Leave a Comment »

Branding in Action: The Power & Danger of Iconography

October 5, 2009

I thought that the video linked below — using the Obama campaign as an example — did a nice job of illustrating the impact of branding — including the supporting ingredients, e.g. distinctive “brand mark”, strong visual presentations, consistent (and ubiquitous) use.

image

The Video Link

WARNING: The politics lean right.  If you lean left, just pay more attention to the branding points being made than to the political points being raised.

It’s worth watching … really !

http://www.youtube.com/watch?v=GdtqtfXdR-c

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Posted in Mktg - Brands, Mktg - Promotion, Obama Administration | Leave a Comment »

Great moments in marketing … an old guy pitches GM’s “bring it back” guarantee … huh?

September 22, 2009

Ken’s Take: I don’t usually take positions on ads, but I can’t resist on this one.  More “Take” below…

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BrandChannel, Should GM and Citi CEOs Take To The Airwaves?, September 17, 2009

With consumer confidence low, GM plans to reform its image and resuscitate itsbrands.

Two months after declaring bankruptcy, GM has rolled out a new ad campaign featuring government-appointed chairman Ed Whitacre.

In a 60-second spot, Whitacre declares the brand revived, and goes so far as to brag, “We win.”

The ad shows Whitacre walking through what looks to be GM research and development, shiny new cars decorating the scenery. Whitacre invites consumers to test a new GM model — though none are shown — and promises them a 60-day-money-back guarantee if not fully satisfied.

GM seems to be taking a gamble by personalizing its products with the very leaders the public holds responsible for their failure. Consumers may dismiss the ads as just more lies and empty promises. On the other hand, they may find the sight of executives stepping up to the plate a refreshing act of responsibility.

GM has made a miscalculation: Consumers are looking for action, not words.

GM should spotlight their fleet of competitive vehicles in advertisements. Instead, they’re undermining the quality of their product by placing the spotlight on their 60-day-money-back guarantee.

Full article (with a link to the commercial):
http://www.brandchannel.com/home/post/2009/09/17/GM-and-Citigroup-unveil-new-ad-campaigns-to-resuscitate-brands.aspx

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Sidenote:

“Ad agencies can do a real disservice to clients by pitching CEO ads. It’s an easy way to land a client, because it’s very flattering to the CEO. And most CEOs have big enough egos that they cannot imagine appearing in the ads might be a bad idea. They just think the agency is brilliant for recognizing their own brilliance.”

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Ken’s Take II: (1) My wife literally asked “who’s the old guy?  He looks almost dead.”  Perhaps Whitacre thinks he reeks credibility. I bet most folks find him more creepy than credible.  (2) Re: substance: I disagree with the article.  It’s a bold move to shift product quality risk from consumers back to the company — where it belongs  (3) Re: unintended consequences: How many folks will simply take 60 day joy rides in GM cars? Hmmm

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Posted in Mktg - Advertising, Mktg - Promotion | Leave a Comment »

Fumble! Bud's college "fan-cans" yanked from market as colleges protest.

September 15, 2009

TakeAway: Anheuser-Busch made a risky and costly marketing decision when it decided to launch a school-themed Bud Light campaign without the permission of the schools. 

AB wasted a valuable portion of its marketing budget since, due to school protest, it must stop production of and remove the existing inventory of many “themed” beers.

And, it hacked off several of the biggest (football power-house) universities, potentially damaging future relations. 

A little more due diligence or “priming” should have been done before launching this marketing campaign.

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Excerpted from WSJ, “Team Colored Bud Cans Leave Colleges Flat” by John Hechinger, August 21 2009

Dozens of colleges are up in arms over a new Anheuser-Busch marketing campaign that features Bud Light beer cans emblazoned with local schools’ team colors …

As part of a broader marketing effort, the Bud Light school-colors campaign, also called “Team Pride” in the marketing materials, aims to use “color schemes to connect with fans of legal drinking age in fun ways in select markets across a variety of sports,” … the cans don’t bear any school’s name or logo…

Colleges fear that promotions near college campuses will not only contribute to underage and binge drinking but also will give the impression that the colleges are endorsing the brew …

Collegiate Licensing Co., which represents about 200 colleges, the National Collegiate Athletic Association and other school-sports organizations, complained to Anheuser-Busch about potential trademark violations after being notified about the campaign. 

At least 25 schools have formally asked Anheuser-Busch to drop the campaign near their campuses. In recent letters, the University of Michigan’s lawyers threatened legal action for alleged trademark infringement, demanding that Anheuser-Busch not sell the “maize and blue” cans in the “entire state.” …

Edit by TJS

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Full Article:
http://online.wsj.com/article/SB125081310939148053.html

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Ken’s Take: If the powerhouse schools had gotten a cut of the actions, I bet concerns re: underage drinking would have disappeared.  Call me cynical.

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Posted in Beer & Liquor, Mktg - Packaging, Mktg - Promotion | Leave a Comment »

Fumble! Bud’s college "fan-cans" yanked from market as colleges protest.

September 15, 2009

TakeAway: Anheuser-Busch made a risky and costly marketing decision when it decided to launch a school-themed Bud Light campaign without the permission of the schools. 

AB wasted a valuable portion of its marketing budget since, due to school protest, it must stop production of and remove the existing inventory of many “themed” beers.

And, it hacked off several of the biggest (football power-house) universities, potentially damaging future relations. 

A little more due diligence or “priming” should have been done before launching this marketing campaign.

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Excerpted from WSJ, “Team Colored Bud Cans Leave Colleges Flat” by John Hechinger, August 21 2009

Dozens of colleges are up in arms over a new Anheuser-Busch marketing campaign that features Bud Light beer cans emblazoned with local schools’ team colors …

As part of a broader marketing effort, the Bud Light school-colors campaign, also called “Team Pride” in the marketing materials, aims to use “color schemes to connect with fans of legal drinking age in fun ways in select markets across a variety of sports,” … the cans don’t bear any school’s name or logo…

Colleges fear that promotions near college campuses will not only contribute to underage and binge drinking but also will give the impression that the colleges are endorsing the brew …

Collegiate Licensing Co., which represents about 200 colleges, the National Collegiate Athletic Association and other school-sports organizations, complained to Anheuser-Busch about potential trademark violations after being notified about the campaign. 

At least 25 schools have formally asked Anheuser-Busch to drop the campaign near their campuses. In recent letters, the University of Michigan’s lawyers threatened legal action for alleged trademark infringement, demanding that Anheuser-Busch not sell the “maize and blue” cans in the “entire state.” …

Edit by TJS

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Full Article:
http://online.wsj.com/article/SB125081310939148053.html

* * * * *

Ken’s Take: If the powerhouse schools had gotten a cut of the actions, I bet concerns re: underage drinking would have disappeared.  Call me cynical.

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Posted in Beer & Liquor, Mktg - Packaging, Mktg - Promotion | Leave a Comment »

Marketing focus: “What is the bigger job this brand does in a consumer’s life?”

September 8, 2009

Many big marketers are cutting back on ad spending this year … total measured ad spending for the first six months of ’09 has dropped 14.4% compared with the first six months of 2008.

But this is not how the companies that sell basic supermarket staples the American public purchases by the palletful are going about marketing in this recession.

For example, General Mills … is spending 16% more on marketing than it did in ’08. “In an environment where you have consumers going to the grocery store more often and thinking more about meals at home,we think that is a great environment for brand building, to remind consumers about our products.”

General Mills purveys homey comforts—Cheerios, Wheaties, Progresso Soup, Hamburger Helper.  It does  intensive research that aims at wreathing a kind of grandiosity of purpose around everyday products: “What is the bigger job this brand does in a consumer’s life?”  This question is threaded through an exhaustive process—including videotaped interviews with key customers — that ultimately boils the marketing message of key brands down to simple story lines. For Hamburger Helper, it’s “One Pound. One Pan. One Happy Family.”

General Mills has long built evocative stories around simple products … believing that  “marketing is a business in which the best story that’s most aggressively deployed wins”.

excerpted from Business Week, How General Mills’ Marketing Pays Off, July 16, 2009
http://www.businessweek.com/magazine/content/09_30/b4140067532922.htm

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Posted in Mktg - Advertising, Mktg - Promotion | Leave a Comment »

Inside that magazine: a video clip … hmmm, interesting idea.

September 1, 2009

Ken’s Take: An interesting play.  Nice use of technology to drag print into the current century.  CBS should get nice buzz. My bet: still too expensive for it to become a common promo device … but, costs keep coming down.

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Excerpted from WSJ: Video is invading a new medium: print. Aug 20, 2009

In a marketing stunt to promote its fall TV series, CBS is inserting thousands of tiny screens in copies of Entertainment Weekly.

The screens measure two and a quarter inches diagonally and play about 40 minutes of clips from new and old CBS shows.

The reader/viewer can push a spot on the cardboard insert that holds the screen and watch a clip of the sitcom “Two and a Half Men.” Push another to see a preview of the new crime-investigation spinoff “NCIS: Los Angeles.” Another delivers an ad for PepsiCo Inc., which is helping fund the promotion.

The player is much like the chips that play music in some greeting cards and magazine ads and is rechargeable.

This isn’t the first time magazines and technology have teamed.

In 2005, CBS embedded People magazine with singing sound chips to promote an Elvis Presley miniseries.

Last year, the cover of October’s Esquire magazine splashed blazes of electronic ink … that flashed with messages and an illusion of a car on the road.

Full article:
http://online.wsj.com/article/SB125073451546645129.html?mod=djemMM

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Posted in Mktg - Advertising, Mktg - Promotion | Leave a Comment »

Forget the cola wars … now, it’s Big Carl vs. Big Mac in “the burger wars” ..

August 25, 2009

Ken’s Take: (1) Nice example of “judo marketing” – leveraging a much bigger competitor’s strength. (2) the mobile diner shows some marketing cahones (3) never, ever say that you’re not concerned about what competitors are doing – just riles them up (4) even if you say you’re not concerned, be concerned and counter-punch

Excerpted from WSJ: Hardee’s, Carl’s Hope to Steer Angus Eaters. Aug 19, 2009 

The burger wars are heating up, with the Hardee’s and Carl’s Jr. chains taking aim at McDonald’s Corp. with a taste challenge and an attack on Big Mac.

In September, Hardee’s and Carl’s Jr. restaurants will offer mail-in refunds to customers who claim to like a McDonald’s Angus burger better than a Carl’s Jr. ‘Six Dollar Angus Burger ‘ — which actually costs $3.99 –or a $3.49 Hardee’s Angus Thickburger.

The chief executive of CKE Restaurants — the parent of both Hardee’s and Carl’s Jr. —  said that McDonald’s national rollout last month of $3.99 Angus burgers “gave us the perfect opportunity” to change a perception among consumers that burgers at Carl’s Jr. and Hardee’s cost more than those at McDonald’s.

Moreover, feeling that the McDonald’s Angus burger was a copycat of CKE’s Angus burgers, Carl’s Jr.  is introducing the Big Carl, to go up against the Big Mac.

The Big Carl contains seven ounces of beef, compared to the Big Mac’s 3.2 ounces, and costs $2.49, about 50 cents less than a Big Mac, depending on the city.

“After they so blatantly copied our burgers, we felt it was fair play.” 

The Big Carl burger will be backed by a snarky marketing campaign. One television commercial begins with a parody of the Big Mac jingle followed by a voice from Carl’s Jr. saying, “We’ve got a jingle, too. Double the meat. Double the cheese. Less money. La La La La La.”

One day next month, the company will park a Carl’s Jr. mobile diner outside McDonald’s restaurants in Los Angeles and offer to swap McDonald’s customers’ Big Macs for Big Carls.

CKE could have a hard time making a dent in its large rival. With 14,000 U.S. stores, McDonald’s dwarfs CKE, which has 1,082 Carl’s Jr. restaurants and 1,713 Hardee’s in the U.S.

Hardee’s sells different types of Thickburgers, the biggest of which is the Monster Thickburger, which tips the scales at 1,420 calories and 108 grams of fat. McDonald’s Bacon and Cheese Angus burger weighs in with 790 calories and 39 grams of fat.

McDonald’s isn’t worried about CKE’s efforts. “It’s flattering that there’s so much attention around us … our Angus third pounder is a great burger and I’m not too concerned about what other folks are doing.”

Full article:
http://online.wsj.com/article/SB125064285111841883.html?mod=djemMM

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Posted in Mktg - Promotion | Leave a Comment »

“On Sale” at Tiffany … doesn’t sound right, does it ?

August 11, 2009

The downturn has forced the likes of Tiffany, Chloé, and Chanel to quietly lower prices, a strategy that could tarnish their glitzy brands.

For example, Business Week reports that Tiffany quietly nudged down prices for engagement rings —one of its biggest sellers — by about 10%. Salespeople tell customers about the reductions, but otherwise there’s no publicity, no signs.

The dilemma that Tiffany and other purveyors of luxury goods face is how to use price cuts to woo customers without tarnishing their brands.

Executives are well aware of the need to woo today’s frugal buyers while trying to maintain tomorrow’s prestige. Some have chosen to be discreet by refusing to advertise sales or by e-mailing “exclusive” offers to select clients.

Retail experts argue that price cuts could prove to be perilous for luxury retailers. “The losers [in this recession] will be the ones who destroyed their brand by discounting them”

Excerpted from: Business Week, In Luxury Sector, Discounting Can Be Dangerous, July 23, 2009
http://www.businessweek.com/magazine/content/09_31/b4141049551979.htm

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Posted in Mktg - Brands - Private Label, Mktg - Pricing, Mktg - Promotion | 1 Comment »

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