“The budget process shouldn’t be used to advance a social agenda” … oh, really?

April 8, 2011

President Obama – concerned that ObamaCare might be defunded —  is ranting that “The budget process shouldn’t be used to advance a social agenda.”

And, I haven’t heard any pundits call him on the obvious hypocrisy:

ObamaCare was passed using a Senate scheme called “reconciliation” so that it could be passed by a simple majority.

You may remember Harry Reid wrangling with the Senate parliamentarian over the rules.

You see, by Senate rules, reconciliation can ONLY be applied to budget matters.

Somehow, ObamaCare was ruled to be a budget matter requiring only a simple majority.

I guess ObamaCare isn’t a social agenda item when it’s passed, only when it’s being defunded.

Go figure …

Posted in Debt - Deficit, ObamaCare | Leave a Comment »

Want to sell more to men? Just follow these 5 steps

April 8, 2011

TakeAway: As men shop more and more,retailers need to make them feel comfortable in their stores,  Here’s how …

* * * * *

Excerpted from AdAge, “How to Connect With the Heart and Mind of the Male Shopper” by Simon Goodall, March 29, 2011

Men are shopping more than ever. In 2002, 64% bought their own clothes; four years later that number was 84%, according to GQ. Around one-third of primary shoppers for groceries reportedly are now men. Yet 40% of men feel unwelcome in retail stores, we have found.

… all of the suggestions below should be seen as statements of how men are, on average, more likely to behave than their female counterparts. It’s important to understand why they shop…

1. Men need to demonstrate their mastery of shopping.

Men like doing things they can do well. And hate doing things they aren’t good at. …they have never had the opportunity to learn how to be a good shopper. …empower him to demonstrate his mastery …and he will come away feeling he has done a good job.

Amazon has enabled millions of men to master buying music. Consumer reviews and lists provide what he needs to feel confident about his choices…

2. Performance is emotional.

Men want to know how products perform. Reasons to believe are truly reasons to buy. Performance provides a kind of “emotional functionality.” It helps men feel that their choice is more efficient, powerful or technologically advanced. Performance is the way to a man’s heart.

3. Men don’t browse, they carry out reconnaissance.

…when men find themselves popping into a computer store or surfing through 3-D-TV reviews online, they are not browsing — they are carrying out important reconnaissance. Perhaps that explains the drift from generalist to specialist stores. They need someone available to assist with their purchases… they seek out expert advisers and technological proof during their research.

…personalization also plays to the fact that men are more willing to pay for products and brands that are customized to their needs….

4. Men want products that reflect their progress in the world.

Sixty-eight percent of millennial men and more than 50% of Gen X men state a preference for brands that “show I have good taste,” … men are more likely to seek out brands that offer exclusivity; have market-leading position; suggest to others that they are successful; and have a “members-only feel,” … proof of quality and their good taste in the details….

5. Men want sanctuaries where they can be men again.

… the majority of men still do not view shopping as a leisure activity, perhaps because it still carries connotations of femininity. Yet the resurgence of traditional barbershops and emergence of male beauty zones suggests a boom in retail experiences that create a sanctuary for maleness…

So what’s key to winning his heart, mind and wallet? Understand the underlying emotional motivations for why men shop.

Edit by HH

 

Posted in Mktg - Consumer Behavior | Leave a Comment »

87% agree: “A debt problem is a failure of leadership” … but, there’s a surprise twist

April 7, 2011

Yesterday, Freedomworks (a conservative org) released the results of a survey on the debt and deficit.

Folks were asked: Do you agree or disagree with the following statement?

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure.

It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies…

Increasing America’s debt weakens us domestically and internationally.

Leadership means that ‘the buck stops here.’

Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren.

America has a debt problem and a failure of leadership. Americans deserve better.” 

A resounding 87% of the respondents agreed with the statement.

The percentage dropped to the high 50s when the statement was identified with its speaker: Sen. Barack Obama, Congressional Record, S.2237-8, 3/16/06

Posted in Debt - Deficit | 2 Comments »

Four more years …

April 7, 2011

President Obama – or, as some are calling him “Present Obama” – launched his 2012 campaign.

Worth spending a minute watching this …

Obama: 4 more years

Posted in Obama Administration | Leave a Comment »

Unilever: “We can make your arm pits sexy …”

April 7, 2011

TakeAway:  Since practically everybody uses deodorant, marketers need to devise new features or grab sales from rivals. 

Winning over new customers is particularly difficult, however. Some 50% of deodorant buyers reported using the same brand in the last 12 months.

* * * * *

Excerpted from the WSJ, “Unilever Tackles the Ugly Underarm” By Ellen Byron, March 30, 2011

Unilever’s new angle on selling deodorant to women is a product that claims to make underarms not only odor-free but prettier. 

Dove Ultimate Go Sleeveless, which hits U.S. stores this week, claims its formula of specialized moisturizers will give women better-looking underarms in five days.

UGS was inspired by Unilever research that found 93% of women consider their armpits unattractive. 

Magazines and talk shows pour out the tips on how women can improve plenty of body parts, from legs to midriffs to fingernails. But little attention — or advice — has been brought to armpits.

Some 62% of the women surveyed said they suffer underarm skin problems like breakouts, discoloration or itchiness, according to research at Unilever. Nearly half said they have been embarrassed enough by the condition of their underarms that they have changed clothes.

Promoting a problem that consumers don’t necessarily realize they have is a frequently used but risky approach.

“Any marketer has to be careful of appearing to create a problem that doesn’t really exist  … You can suffer a backlash if you do that.”

Edit by AMW

* * * * *

Posted in Mktg - Positioning, Mktg - Product & Innovation | Leave a Comment »

70,000 children will die … oh, really.

April 6, 2011

When I was a kid, the local school board would biennially warn that football, the band, the honors program and hot lunches would be cut unless a levy was passed to boost real estate taxes.

I remember that – even as a kid – it sounded like a bunch of bull.

Sometimes the levies passed.  Sometimes they didn’t.

Regardless of the vote, the stadium lights still glowed brighton Friday nights, the smart kids still got their honors courses, and the cafeteria kept serving up hot slop.

Here is today’s equivalent of football, band, honors and lunches:

According to the Daily Kos, USAID Administrator Rajiv Shah testified before the House Appropriations State and Foreign Ops subcommittee that “Adopting H.R. 1 (the budget passed by the GOP House) would lead to 70,000 kids dying.”

Geez.

It’s not even enough these days to warn of seniors eating dog food, schools being shuttered, etc.

Nope. The bidding is up to 70,000 kids dying.

Only children and seniors programs can be cut.

Everything else is more essential, more critical.

Except that is, for the $100 to $200 billion in wasteful spending that the GAO reported last month:

WSJ, Billions in Bloat Uncovered in Beltway, March 1, 2011

A GAO report uncovered billions of dollars in wasteful spending by the U.S. government due to duplicate work done by dozens of overlapping agencies on redundant and  ineffective federal programs

For example, the U.S. government has 15 different agencies overseeing food-safety laws, more than 20 separate programs to help the homeless and 80 programs for economic development.

The agency found 82 federal programs to improve teacher quality; 80 to help disadvantaged people with transportation; 47 for job training and employment; and 56 to help people understand finances.

The report took particular aim at government funding for surface transportation, including the building of roads and other projects, which the administration has made a major part of its push to update the country’s infrastructure. The report said five divisions within the Department of Transportation account for 100 different programs that fund things like highways, rail projects and safety programs.

The report chided the government over encouraging federal agencies to purchase plug-in hybrid vehicles while having policies that agencies reduce electricity consumption. It said government agencies have purchased numerous vehicles that run on alternative fuels only to find many gas stations don’t sell alternative fuels. This has led government agencies to turn around and request waivers so they didn’t have to use alternative fuels.

The GAO identified between $100 billion and $200 billion in duplicative spending.

GAO’s prior recommendations have generally been ignored or postponed by federal agencies and lawmakers, particularly when they could require difficult political votes.

Hmmm.

Just not hearing a lot about that report this week …

* * * * *

To see the full report, click the pic.

image

Posted in Budget - Deficit | Leave a Comment »

Click here if you ‘like’ Google’s ‘plus one’ feature …

April 6, 2011

TakeAway: Google’s making  another attempt to break into into the social web by creating a “plus one” feature for its search results.

Much like on Facebook, you will be able to share your likes as well as see other people in your network of contacts’ and the things they like. 

* * * * *

Excerpted from AdAge, “Google Adds Own ‘Like’ Button in Foray Into Social Search” , March 30, 2011

Google‘s take on the “like” button — the “plus-one” —  to make search more social, and to combat the growing dominance of Facebook.

Google will allow users to vote plus-one on search results and to share that preference in Gchat, Gmail, Google Reader, Buzz and, soon, Twitter.

This is the first time Google has added a direct social signal into search results.

Over time, Google will integrate the plus-one into the search algorithm itself so human votes will have an impact search ranking.

“Injecting a social layer into the algorithmic search is key to relevance… 35,000 results in less than 3 milliseconds. It’s meaningless, but if you can sort through those by people who have given a social signal and those rise to the top, it can only enhance the user experience.”

The question is whether Google can keep bad actors from gaming the plus-one system for fun or for profit. Google, to its credit, has a lot of experience filtering out attempts to game its algorithms..

Edit by HH

Posted in Internet - Soc Networking | Leave a Comment »

When GE really does file its tax return …

April 5, 2011

A week or two ago, the NY Time’s dropped a bombshell of a story.

The headline,  “GE’s Strategies Let It Avoid Taxes Altogether”:

The reported “facts”: GE reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

Hmmm.

According to Reuters, it turns out that GE hasn’t actually filed its tax return for 2010 yet, and when it does it will pay some unknown amount in US income taxes.

The ultimate conclusion is likely to be the same, but it looks like the Times got some of facts wrong.

Oh my.

Posted in Taxes | 1 Comment »

Buy more of my products and I’ll make a small donation to charity … if I remember.

April 5, 2011

TakeAway: As many people rally around Japan, companies must walk a fine line when combining a brand message with an expression of sympathy. 

As consumers become increasingly skeptical of cause-related marketing and celebrities, organizations and major marketers have to balance trying to help without appearing to exploit the tragedy for profits. 

* * * * *

Excerpted from the WSJ, “Cause-Tied Marketing Requires Care” By Emily Steel, March 21, 2011

Microsoft’s Bing learned that lesson early on. The search engine created a backlash when it posted a message on Twitter, offering to donate $1 to Japan’s relief efforts each time someone forwarded its message.  The missive set off a firestorm of complaints from Twitter users, who accused Bing of using the tragedy as a marketing opportunity. Within hours, the company responded. “We apologize the tweet was negatively perceived. Intent was to provide an easy way for people to help Japan. We have donated $100,000.”

Marketers have to be especially careful when they create programs that commit them to donate a portion of their proceeds if someone makes a purchase, some ad executives say. 

Still, several retailers are deploying this strategy.  U.S. sushi chain SushiSamba said that through the end of March it will give 100% of the proceeds of a special $12 sushi roll to relief efforts. 

Other marketers are giving their customers benefits in exchange for making donations. American Airlines and Continental Airlines said they would reward donors with bonus airline miles. 

Many companies have chosen to stick to straight donations, instead. Wal-Mart, P&G, Coca-Cola and Walt Disney are among more than 100 corporations across the globe that have committed to donate a total of more than $151 million in cash and other products or services thus far.

Marketers are promoting the initiatives through public relations, their own websites and social networking. While companies often want consumers to know about their efforts, few are launching ad campaigns to avoid any criticism of their intentions.

As relief efforts continue, companies’ motives are likely to be less altruistic, ad experts say. “The first people that do it probably have their heart and head in the right place,” Mr. Adamson says. “But as you go further along, more people try to jump on the band wagon. Doing good becomes less substantial and more of an attention grab.”

Edited by AMW

* * * * *

Posted in Internet - Soc Networking | Leave a Comment »

Whatever happened to Obama’s vow of a line-by-line budget review?

April 4, 2011

As Sen. Schumer and the other caucus-instructed Dems rant about $60 billion in gov’t spending cuts being “extreme” – “likely to kill over 70,00 children” — don’t you wonder what ever happened to Obama’s pledge to go through the budget line by line to eliminate wasteful spending?

To refresh memories, here is an excerpt from news reports dated November 2008:

President-elect Barack Obama vowed today to get rid of federal programs that no longer make sense and run others in a more frugal way to make Washington work in tough economic times.

Obama said that to make the needed investments to create jobs, “we also have to shed the spending we don’t need.”

“In these challenging times, when we are facing both rising deficits and a sinking economy, budget reform is not an option. It is an imperative,” Obama said. “We cannot sustain a system that bleeds billions of taxpayer dollars on programs that have outlived their usefulness, or exist solely because of the power of a politicians, lobbyists, or interest groups. We simply cannot afford it. This isn’t about big government or small government. It’s about building a smarter government that focuses on what works. That is why I will ask my new team to think anew and act anew to meet our new challenges…. We will go through our federal budget – page by page, line by line – eliminating those programs we don’t need, and insisting that those we do operate in a sensible cost-effective way.”

Spending restraint is even more important with the federal deficit expected to top $1 trillion in 2009 — more than double the previous record. And that’s before an economic stimulus package that could cost upwards of $500 billion over two years.

Obama vows line-by-line budget review, November 25, 2008

I figure there are over 50,000 lines (and over 6,000 earmarks) for the President to review.

And, the GAO recently reported that they spotted over $200 billion in gov’t agency duplications and redundancies – sometimes, more than 50 departments doing exactly the same job … and often doing it ineffectively.

Think President Obama has his reading glasses on and a sharp pencil in his hand?

I’m betting no …

Posted in Budget - Deficit | Leave a Comment »

Pepsi (and everybody else) goes retro …

April 4, 2011

TakeAway: Many brands are finding that the best way to come up with a new product is to make a retro version of the old product.

Pepsi, Heinz, Hostess have all incorporated “throwback, retro” design and products into the line up. 

Studies shown that Millennials relate particularly well to retro items as it gives them a feeling of authenticity.

* * * * *

Excerpted from MediaPost, “More Retro Action: Heinz, Hostess Follow Pepsi” by Karlene Lukovitz, March 22, 2011

Everything old is new again in the world of marketing — although these days, “old” can sometimes mean the 1990s.

One week after PepsiCo made retro versions of Pepsi, Mountain Dew and Doritos a permanent part of the brands’ lineups, Heinz Ketchup is readying a collector’s edition glass bottle with a retro label, and Hostess is featuring ’70s brand characters and bringing back Twinkies’ original banana filling recipe.

These developments come a week after PepsiCo announced that it is making sugar-formulated (no high-fructose corn syrup), retro-packaged Throwback versions of Pepsi and Mountain Dew … permanent, year-round parts of the brands’ portfolios.

The retro phenomenon — also being seen in a wide variety of nonfoods categories (think Nike’s Playoff Air Jordan 13 Retro athletic shoe and Disney’s revival of the “Tron” franchise) — is being driven primarily by marketers’ realization of the power of “authenticity” among Millennials, in particular.

“Retro is very cool with 20-somethings, because it ties in with their desire for simpler, cleaner, more authentic lives. … they see nostalgia as a way to differentiate themselves.”

“Millennials thrive on interconnectedness, but highly value authenticity, particularly ‘real’ ingredients as opposed to ‘chemical stews.’

At the same time, boomers feel a rose-colored yearning for the days when life was less complex.”

Edit by HH

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

A Nation of Takers, Not Makers

April 1, 2011

Consider these depressing statistics:

More Americans work for the government than in manufacturing, farming, fishing, forestry, mining and utilities combined..

Today in America there are nearly twice as many people working for the government (22.5 million) than in all of manufacturing (11.5 million).

This is an almost exact reversal of the situation in 1960, when there were 15 million workers in manufacturing and 8.7 million collecting a paycheck from the government.

WSJ, We’ve Become a Nation of Takers, Not Makers,  April 1, 2011

Posted in Government Employees | 1 Comment »

Georgetown’s “chronic unwillingness to come together” … huh?

April 1, 2011

Be honest.

If Bush had misspoken like this, mass media would have gone nuts.

But, since the Orator-in-Chief said it, it got buried.

Here’s one recap I found:

During his speech at Georgetown University yesterday… he took a slap at his host.

Obama said, “You also happen to go to a school that for a long time has suffered from a chronic unwillingness to come together and make tough choices.”

Oops.

Seems that the smartest man on the planet just flubbed a line on the teleprompter.

In fact, the President’s speech read, “you go to school IN A TOWN that, for a long time has suffered…”

In other words, he was attempting to insult Washington, not the university.

Perhaps, he should listen to what he reads …

Posted in Obama Administration | Leave a Comment »

Just me, or is that package smaller than it used to be.

April 1, 2011

TakeAway: As businesses anticipate rising raw materials costs, consumers are beginning to encounter shrinking food packages. 

With unemployment still high, companies have tried to camouflage price increases by selling their products in smaller packages. 

Most companies reduce products quietly, hoping consumers are not reading labels too closely.  However, there could be some backlash as consumers wise up.

* * * * *

Excerpted from the NYTimes, “Food Inflation Kept Hidden in Tinier Bags” By Stephanie Clifford and Catherine Rampell, March 28, 2011

In every economic downturn in the last few decades, companies have reduced the size of some products, disguising price increases and avoiding comparisons on same-size packages, before and after an increase. Each time, the marketing campaigns are coy; this time, the smaller versions are “greener” (packages good for the environment) or more “portable” (little carry bags for the takeout lifestyle) or “healthier” (fewer calories).  Trying to keep customers from feeling cheated, some companies are introducing new containers that, they say, have terrific advantages — and just happen to contain less product.

“Consumers are generally more sensitive to changes in prices than to changes in quantity,” John Gourville, a marketing professor at Harvard Business School, said. “And companies try to do it in such a way that you don’t notice, maybe keeping the height and width the same, but changing the depth so the silhouette of the package on the shelf looks the same. Or sometimes they add more air to the chips bag or a scoop in the bottom of the peanut butter jar so it looks the same size.”

Kraft is introducing “Fresh Stacks” packages for its Nabisco Premium saltines and Honey Maid graham crackers. Each has about 15 percent fewer crackers than the standard boxes, but the price has not changed. Kraft says that because the Fresh Stacks include more sleeves of crackers, they are more portable and “the packaging format offers the benefit of added freshness,” said a Kraft spokesman.  Similarly, P&G is expanding its “Future Friendly” products, which it promotes as using at least 15 percent less energy, water or packaging than the standard ones.  “They are more environmentally friendly, that’s true — but they’re also smaller,” said Paula Rosenblum, managing partner for retail systems research at Focus.com, an online specialist network. “They announce it as great new packaging, and in fact what it is is smaller packaging, smaller amounts of the product,” she said.

Or marketers design a new shape and size altogether, complicating any effort to comparison shop. The unwrapped Reese’s Minis, which were introduced in February, are smaller than the foil-wrapped Miniatures. They are also more expensive — $0.57 an ounce at FreshDirect, versus $0.37 an ounce for the individually wrapped.

In the culture of thinness, smaller may be a selling point. It lets retailers honestly claim, for example, that a snack package contains fewer calories — without having to change the ingredients a smidge.  “For indulgences like ice cream, chocolate and potato chips, consumers may say ‘I don’t mind getting a little bit less because I shouldn’t be consuming so much anyway,’ ” said Professor Gourville. “That’s a harder argument to make with something like diapers or orange juice.”  But even while companies blame the recession for smaller packages, they rarely increase sizes in good times, he said.  Once the economy rebounds, he said, a new “jumbo” size product typically emerges, at an even higher cost per ounce. Then the gradual shrinking process of all package sizes begins anew, he said.

Edit by AMW

Posted in Mktg - Packaging | Leave a Comment »

70% of Americans support Libyan kinetic military action … oh, really?

March 31, 2011

I’ve heard that spin quite a few times in the past week.

70 percent!

Think about it …

Do you think that 70% of the country knows whether Libya is a city, or a state, or a country, or a continent, or a planet?

I’ll take the under on that bet.

Do you think that 70% of the country knows where Libya is and how you spell it?

I’ll take the under on that one, too.

Do you think 70% of the country has the slightest idea what a kinetic military action is – and why we’re doing one in Libya?

Put me down for under on that one.

Yet, 70% are supporting the bombardment campaign.

70 per cent. 

Oh, really?

Posted in Polls & Surveys | Leave a Comment »

Facebook; “Pssst, I hear you’re yearning for a pizza …”

March 31, 2011

TakeAway: When you thought Facebook couldn’t get any more stalkerish, it has just rolled out real time ads relating to status updates, posts etc.

In the mood to eat some cupcakes? Immediately cupcake ads should populate the side bar of your Facebook page. 

With real time ad response, Facebook hopes to put advertisers between consumers’ current thoughts and desires and the next step of fulfilling it.

* * * * *

Excerpted from AdAge, “Facebook Test Mines Real-Time Conversations for Ad Targeting” by Irina Slutsky, March 23, 2011

….Facebook started to mine real-time conversations to target ads.

For example: Users who update their status with “Mmm, I could go for some pizza tonight,” could get an ad or a coupon from Domino’s, Papa John’s or Pizza Hut.

A user may not have liked any soccer pages or indicated that soccer is an interest, but by sharing his trip to the pub for the World Cup, that user is now part of the Adidas target audience

With real-time delivery, the mere mention of having a baby, running a marathon, buying a power drill or wearing high-heeled shoes is transformed into an opportunity to serve immediate ads, expanding the target audience exponentially beyond usual targeting methods such as stated preferences through “likes” or user profiles.

The moment between a potential customer expressing a desire and deciding on how to fulfill that desire is an advertiser sweet spot, and the real-time ad model puts advertisers in front of a user at that very delicate, decisive moment.

“The long-held promise of local is to deliver timely, relevant and measurable ads which drive actions such as commerce, so if Facebook is moving in this direction, it’s brilliant.”

This real-time test could make a huge difference in how Facebook ads perform, as well as how they are perceived by users. …some analytics firms claim that the Facebook display ad click-through rate is abysmally low — 0.051% in 2010, or about half the industry average…

Edit by HH

Posted in Internet - Soc Networking | Leave a Comment »

NY Times & O’Reilly come together … rant over GE’s tax loopholes.

March 30, 2011

Disclaimer: I own GE stock and want the share price to go up … a lot.

The NY Time excoriated GE last week because the company paid federal income taxes in 2010.

According to the Times:

“As the company expanded abroad, the portion of its profits booked in low-tax countries such as Ireland and Singapore grew far faster … Since 2002, the company has eliminated a fifth of its work force in the United States while increasing overseas employment.

In that time, G.E.’s accumulated offshore profits have risen to $92 billion from $15 billion.”

Let’s frame the issue: GE paid no federal income taxes for 2 main reasons:

1) The company lost a boatload of money on GE Credit during the financial meltdown, and have carried over the losses.  The ultimate tax dodge: lose money.

2) GE makes a ton of money outside the U.S., pays taxes to local countries and doesn’t “repatriate” the profits back to the US.  That way, the company funds its international developments and keeps the $$$ away from the IRS.

Put succinctly by Seeking Alpha:

Why should GE, or any other company, have to pay U.S. tax on money earned outside the U.S.?

It makes perfect sense, from the perspective of the company and its shareholders, to keep the money outside America until the American politicians wake up and lower American tax rates to the point at which they are competitive with those in Singapore or Ireland.

GE choosing not to pay tax now by choosing to keep the money offshore isn’t really that different from a homeowner deciding not to sell his house now because he doesn’t want to pay the capital gains tax this year.

Up to a point, the decision on when to realize income is up to the taxpayer, not up to the New York Times reporter.

And whatever you might think about how influential GE or its tax department is, it’s not GE that sets the tax rate in Singapore or Ireland.

Seeking Alpha, Why G.E.’s Tax Reducing Strategies Are Legit,  March 27, 2011 

Note: O’Reilly hates GE … mostly because of his feud with Olberman and because he thinks that MSNBC operates as a White House press office.

See Bill and Lou Dobbs rant on GE …

Posted in GE, Taxes | 2 Comments »

Pepsi hypes social media … as share slides

March 30, 2011

There’s a nagging question: how to quantify the ROI of social marketing, and the impact on the bottom line.

Pepsi diverted its Super Bowl ad budget to its “Refresh crowdsourcing initiative” — an ongoing corporate citizenship effort that was cited by Ad Age as a factor in why Pepsi has slipped to third place behind Coke and Diet Coke in the US.

Pepsi’s argument: you’re either on the digital train or you’ll get left behind.

According to PepsiCo’s Director of Digital and Social Media:

  • Technology affecting our lives is nothing new. Once clocks were invented, we began living our lives by the clock.
  • There have been more apps downloaded since apps began than all the music downloaded from iTunes.
  • Kids are “addicted” to the iPad and think all screens are touch screens
  • Grandparents now have relationships with their grandchildren on Skype and Facebook.

Excerpted from: BrandChannel, PepsiCo Pumps Up Digital Fitness, March 24, 2011

Posted in Beverages - Soft Drinks, Internet - Soc Networking | Leave a Comment »

Ken gets a makeover … now, a“babe-magnet”

March 30, 2011

 Not me, silly …. Barbie’s “arm candy” in toyland.

I missed that Barbie dumped toy Ken in 2004, ending a 43 year relationship.  For the past 10 years, the jilted Ken toiled in obscurity.

Well, he’s back.

Mattel brokered a reconciliation between Ken and Barbie as part of its brand-marketing, sales-recovery strategy.

Ken’s remake has boosted the brand’s sales to $1.25 billion in 2010

* * * * *

Excerpted from: BW Magazine, “Why Ken Is the New Babe-Magnet in Toyland”  February 10, 2011 BW Magazine

The world’s most famous plastic couple – Ken & Barbie — is getting back together.

Ken’shandlers revamped his image, giving him a Justin Bieberesque makeover complete with floppy locks, skinny jeans, and graphic T-shirt.

That landed Ken a scene-stealing part in Toy Story 3, restoring him to his previous status of pop culture icon.  The filmmakers cast Ken as a vain, leopard-print-wearing metrosexual. In one scene, Ken cries: “I’m not a girl’s toy.”

Ken now has his own Facebook page and Twitter feed (sample tweet: “Weekend Ken-fession: I may have knocked somebody over while walking and playing Madden on my iPhone this morning. My bad.”).

Beaming with confidence after his big-screen debut, Ken won his ex back with professions of love on big-city billboards and ads in Us Weekly. One message: “We may be plastic, but our love is real.”

Despite Ken’s breakout movie role and his growing ranks of Twitter followers, his future depends, as always, on the woman he loves.

He’ll stay in the spotlight “unless he does something to really upset Barbie.”

Posted in Mktg - Brand Management, Mktg - Brandmarks & Logos, Mktg - Brands, Relationships - Loyalty | Leave a Comment »

Raise taxes … unionize gov’t employees … and say bye-bye to your taxpayer base.

March 29, 2011

Some preliminary census results have been released.

Here’s a shocker: folks (and companies) are moving from high tax states to low tax states.

* * * * *

Excerpted from RCP: The Eyes of Texas Are Sparkling in the 2010 Census, March 28, 2011

The fastest growth rates in the 2000-10 decade have been in Texas, the Rocky Mountain states and the South Atlantic states.

Public policy plays an important role that’s especially relevant as state governments seek to cut spending and reduce the power of the public employee unions that seek to raise spending and prevent accountability.

  • The eight states with no state income tax grew 18 percent in the last decade. The other states (including the District of Columbia) grew just 8 percent.
  • The 22 states with right-to-work laws grew 15 percent in the last decade. The other states grew just 6 percent.
  • The 16 states where collective bargaining with public employees is not required grew 15 percent in the last decade. The other states grew 7 percent.

The lesson is that high taxes and strong public employee unions tend to stifle growth and produce a two-tier society.

Posted in Census - Birth Rates, Taxes | Leave a Comment »

Wal-mart goes back for the future … more EDLPs

March 29, 2011

TakeAway:  Wal-Mart lost sight of what made it a retail giant: every day low prices.

In an attempt to reverse its US sales slump, the company is abandoning its recent focus on upscale shoppers to instead refocus on low prices.

In a crowded mass retail segment, differentiating with the lowest prices just might get Wal-Mart back on track.

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Excerpted from brandchannel, “Wal-Mart Tries to Find Its Way Back,” by Dale Buss, March 22, 2011

It’s one thing for a brand to recognize the error of its ways and attempt to return to what made people love it in the first place. But it’s quite another thing to complete the journey successfully.

Walmart, America’s largest retailer, is finding out that truth about branding these days. It is mired in its worst U.S. sales slump ever, kept there for now by the chain’s inability to return to its roots as a basic purveyor of value-priced merchandise after an ill-considered move upscale.

[According to] Bill Simon, Wal-Mart corporate’s new U.S.-stores chief … Walmart stores are returning to the Every Day Low Prices formula that traditionally powered its sales growth, and also restoring broader selection.

“I think we tried to stretch the brand a little too far,” Simon said.

In short, Walmart realized that its core customers… liked the feel of stores so full of attractively priced merchandise that it could barely be contained on the shelves. A couple of years ago, under Project Impact, Walmart had stripped selection and focused on a clean-store look in an effort to attract upscale shoppers. But that group proved a fickle lot.

Now, in a new advertising campaign breaking next month, Walmart will highlight its decades-old emphasis on low pricing by poking fun at competitors … who use the sort of “high-low” strategy it just abandoned. …

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Posted in Retailing, Walmart | Leave a Comment »

For sale: Diamond ring … $1 million … free shipping (I think)

March 28, 2011

From Costco, of course … complementing their strategic thrust into wedding gear and services.

Move fast … only one in stock at this price.

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Posted in Laughs, Retailing | 1 Comment »

In store service goes virtual … and, oh yeah, help yourself.

March 28, 2011

TakeAway: Digital bar code scanning is being utilized in stores to help customers learn more about the product, watch videos, price shop, and even help make an online purchase. 

Home Depot has taken to this strategy to provide another way for customers to get tips and help especially for those in the digital world often unwilling to ask for help but would rather just look it up or do it themselves.  

* * * * *

Excerpted from Internet Retailer, “The Home Depot customers get a Quick Response from mobile bar codes” by Katie Deatsch, March 22, 2011

… Home Depot long emphasized its jovial sales staff that is eager to offer product information and tips in stores. Now the retailer is taking that help to the mobile realm.

… a series of ads incorporating QR, or Quick Response, two-dimensional bar codes that smartphone owners can scan using an app tied to a smartphone’s camera to access product ratings and reviews, how-to guides, product videos and a web page on which they can make a purchase.

… Shoppers …will be able to access information like product demos and instruction videos, relevant accessories, buying guides, project guides, and an option to purchase online. …

… Home Depot … will be able to track the scans via Scanbuy bar code system analytics to better gauge customers’ interests, view locations of scans and more…

“… customers already using mobile devices to assist in the purchasing process, and now Home Depot is embracing this technology to more closely connect our stores and customers to our digital content…”

Bar code scanning may lend itself to products such as home furnishings that can have many complex features and are often installed by do-it-yourselfers.

… enables shoppers to scan…codes on Ralph Morris products for more information about the line as well as to gain access to post-sale help such as information on how to install the Randolph Morris products.

Other retailers using bar code scanning to promote their brands. …Macy’s Inc. last month launched a QR bar code scanning marketing program …that lets in-store shoppers use a mobile device …to access videos about the designers and brands. …provide consumers with tips and information on the latest trends, and advice and inspiration from celebrity style icons via 30-second films delivered to a phone.

 

 

 

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Posted in Mktg - Shopping Behavior, Retailing | Leave a Comment »

College students meeting schools’ low (and declining) expectations … less studying, less thinking, higher grades … let’s party.

March 25, 2011

Punch line: A provocative new book, “Academically Adrift: Limited Learning on College Campuses,” makes a strong case that for a large portion of the nation’s seemingly successful undergraduates the years in college barely improve their skills in critical thinking, complex reasoning and writing.

* * * * *

Excerpted from NYT,  College the Easy Way

What are America’s kids actually learning in college?

For an awful lot of students, the answer appears to be not much.

Intellectual effort and academic rigor, in the minds of many of the nation’s college students, is becoming increasingly less important.

“Many students come to college not only poorly prepared by prior schooling for highly demanding academic tasks that ideally lie in front of them, but — more troubling still — they enter college with attitudes, norms, values, and behaviors that are often at odds with academic commitment.”

Students are hitting the books less and partying more.

Easier courses and easier majors have become more and more popular.

Perhaps more now than ever, the point of the college experience is to have a good time and walk away with a valuable credential after putting in the least effort possible.

What many of those students are not walking away with is something that has long been recognized as invaluable — higher order thinking and reasoning skills. They can get their degrees without putting in more of an effort because in far too many instances the colleges and universities are not demanding more of them.

The average amount of time spent studying by college students has dropped by more than 50 percent since the early 1960s.

But a lack of academic focus has not had much of an effect on grade point averages or the ability of the undergraduates to obtain their degrees.

Thirty-six percent of the students said they studied alone less than five hours a week. Nevertheless, their transcripts showed a collective grade point average of 3.16.

“The colleges and universities have set up a system so that there are ways to navigate through it without taking difficult courses and still get the credential.”

In their first two years of college, 45 percent of the students made no significant improvement in skills related to critical thinking, complex reasoning and communication.

Many of these young men and women are unable to communicate effectively, solve simple intellectual tasks (such as distinguishing fact from opinion), or engage in effective problem-solving.

“It’s important to get the word out about the lack of academic rigor and intellectual engagement that’s occurring at colleges and universities today.”

Posted in Education - Academics | Leave a Comment »

Whatever happened to: “After we pass it you’ll like it”

March 25, 2011

The Heritage Foundation points out that:

“Last year at this time Newsweek showed 40 percent of Americans supporting Obamacare and 49 percent opposing it. Today, only 37 percent support it while 56 percent oppose.

According to Quinnipiac, after Obamacare passed last year, 44 percent of Americans approved of President Obama’s handling of health care while 50 percent opposed. Today, only 44 percent approve while opposition has grown to 56 percent.

And according to the Kaiser Family Foundation, after Obamacare passed, 62 percent of Americans thought the law would either have no effect on them or make them worse off. Today that number is up to 69 percent.”

Just in case you think that’s right-wing malarkey, here’s a broad based survey summary from  Pollster.com … now, a unit of that right wing bastion — the Huffington Post:

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Posted in Health Care / Medical Insurance | Leave a Comment »

How much does a ‘for sale’ home’s list price matter?

March 25, 2011

Answer: a lot … it’s the psychological effect called anchoring.

For example, researchers asked both professional real estate agents and man-off-the-street amateurs to predict the final selling price of a house.

They were all told that the current tax appraisal value of the house was $135,000.

Then, each respondent was told that the house was listed in one of four prices — ranging from $119,900 to $149,900.

The researchers found a clear positive correlation between list prices and predicted sale prices.

The amateur is responded more to the differences in list prices and the professionals — but even the pros and a $15,000 spread that can only be attributed to the differences in the list prices.

Bottom line: if you’re selling a home beach for the sky with your list price; if you’re buying a home try to ignore the list price and focus on more fundamental values like tax assessments and comparable sales

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Source: Priceless, William Poundstone, Hill and Wang Books, 2010

Posted in Behavioral Economics, Mktg - Pricing | 2 Comments »

Are B-school profs different?

March 24, 2011

Prof. Greg Mankiw of Harvard made headlines a few years ago when he got a million-dollar advance to write an economics textbook.

I just stumbled on this blog post of his … thought it was interesting.

Punch line: Business students force the faculty to think practically

* * * * *

Excerpted from Mankiew Blog, Are B-school economists different?, June 02, 2009

A journalist … mentioned that he was finding that many of his best sources on the financial crisis teach at B schools, not Econ Departments.

I don’t know of any hard data to establish whether journalists are more likely to cite economists in business schools than those in economics departments, but I can believe it might be the case.

On average, economists in business schools have a more practical and empirical approach to the field than do those in economics departments.

Why? I don’t think the answer is … a difference in training.

I think part of the answer is self-selection.

Economists who are naturally more abstract will have a harder time teaching MBAs and will gravitate toward economics departments. The PhD students there will not mind the higher level of abstraction.

By contrast, economists of a more practical and empirical frame of mind will gravitate toward business schools, where their practicality is valued.

Some business schools encourage more practical research. The case studies written by faculty at Harvard Business School are a particularly extreme example. This experience forces the faculty to come down to earth from the rarefied theory that often characterizes economics research.

Finally, the students themselves influence how the faculty thinks.

Faculty who teach PhD students are used to being asked, “How did you derive that first-order condition? “

Faculty who teach MBA students are used to being asked, “Is that really how it works?”

By contrast, the typical MBA student, like the typical journalist, is older and more self-confident; he or she will more likely balk at what seems to be excessive abstraction.

The business students force the faculty to think practically.

Posted in Education - Academics | 1 Comment »

Walk clockwise around grocery stores !

March 24, 2011

Why?

Because you’ll save money.

Researchers have discovered that “shoppers open their wallets wider when moving through a store in a counter-clockwise direction.”

On average, they spend $2 more per visit.

Why??

One theory is that most shoppers are right handed … and like most basketball players, they go to their right better…. so, impulse items stocked to their right along “walls of value” are easier to grab and throw in the cart.

If you are right handed, walk clockwise and the “wall of values” will on your left,  and will be less tempting.

Source: Priceless, William Poundstone, Hill & Wang, 2010, p.149

Posted in Mktg - Pricing | 1 Comment »

NYC: Fight a ticket online …

March 24, 2011

From Late Night With Jimmy Fallon:

“New York City has a new service that lets you fight a traffic ticket online. To make it feel like you’re talking to a real clerk, your computer will spend the whole time chewing gum and talking to a friend on the phone.”

… at least the computer won’t be getting fee healthcare and an oversized pension.

Posted in Government Employees, Laughs | Leave a Comment »

Quick: Who to layoff: bad “senior” teachers or good “junior” teachers?

March 23, 2011

Punch line: Teachers’ unions are more interested in protecting their members’ jobs than in the quality of education

According to the WSJ …

The steep deficits that states now face mean that teacher layoffs this year are unavoidable. Parents understandably want the best teachers spared. Yet in 14 states it is illegal for schools to consider anything other than a teacher’s length of service when making layoff decisions.

“If layoffs are based only on seniority, that doesn’t help the kids,” said U.S. Education Secretary Arne Duncan in a conference call with reporters. “And particularly doesn’t help the kids who need the most help.”

“Fourteen states have quality-blind layoffs rules but about 40% of all teachers work in those states, and they’re the states with the biggest budget deficits.” In addition to New York, the list includes California, New Jersey, Pennsylvania, Ohio, Illinois and Wisconsin.

The unions that support these laws insist that seniority is the only “fair” way to reduce the teaching work force.

The real problem is the underlying assumption that seniority is a decent proxy for performance.

But, two recent studies on seniority-based layoffs indicate that “only about 20% of the teachers who have the least seniority are also among the least effective teachers in a district. About 80% of the time, there’s a teacher who’s worse that you could have laid off but didn’t because they had more seniority.”

As Secretary Duncan notes, layoffs based on seniority will also remove good teachers from the classrooms where they are most needed.

High-poverty students tend to matriculate at schools where the teachers have less seniority.

While the unions hate school choice for students, they insist on it for teachers.

And senior teachers tend to opt out of high-poverty districts.

The good news is that more and more people now see through the union agenda, even if too many politicians are still on the fence.

In a recent Rasmussen poll, 68% said “teachers’ unions are more interested in protecting their members’ jobs than in the quality of education.”

Posted in Education - Academics | Leave a Comment »

I spent $1 million on digital advertising … did it work?

March 23, 2011

TakeAway: With the move to digital, companies are unsure how to ensure their digital marketing dollars are being spent effectively.

Companies are spending more and more on copy testing for digital ads even with the criticism that copy testing kills creativity.  

* * * * *

Excerpted from AdAge, “Copy Testing Coming to Digital Marketing” by Jack Neff, February 27, 2011

As … marketers are investing more in digital, they’re bringing with them one of their time-honored processes from TV advertising: copy testing.

… despite criticism that copy testing leads to bland ads that avoid risks, and that the storyboards or animatics used in copy tests don’t capture the magic production can create. …

…copy-testing houses have years of research showing copy-test results predict sales impact from ads. But expansion of copy testing to digital adds a new layer of controversy: Some critics believe tests developed for TV won’t work on digital ads.

… people close to P&G say it’s “TV testing” most of its digital ads now — video and other formats alike.

…”A home-page takeover on Yahoo can cost a million dollars a day,… The traditional thing with digital was if it’s not working, we’ll take it down. When you drop a million dollars in a day, you’d better be sure it’s working.” … “even if copy-testing squelches creativity …the world’s largest advertisers see value in doing this.”

…”All of our communications testing is designed to increase the odds of success in market, … We often conduct early learning with prototype production, increasing our ability to produce communication that really resonates with consumers.”…

… believes creative inconsistency has hurt digital ad effectiveness and applauds marketers for seeing they need to test copy. …But…”to try to force fit the old TV pretesting model into digital is kind of idiotic.”

… the context and content of where digital ads run affects how they work, …

Making small digital buys to test creative is no longer tenable for brand marketers because online survey response rates have plunged in recent years. Clicks and conversions in small tests are meaningful for direct-response advertisers, …but not brand marketers, … no links between clicks and offline sales, brand awareness or purchase intent.

…more packaged-goods clients are spending on digital copy testing, though most don’t have specific budgets for it and many are hesitating because of a lack of adequate research options. “Digital is not a single advertising medium, but rather an accumulation of media and should be addressed as such.”

“Once brands and researchers fully understand the digital space digital advertising research will become more actionable.”

 

 

 

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So, it the unemployment rate up or down?

March 22, 2011

Answer: Depends who you ask.

The gov’t Bureau of Labor Statistics reported that unemployment has fallen the past couple of months and is now a bit under 9%.

That would be good news … if true.

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http://www.bls.gov/news.release/empsit.a.htm

But, it seems that Gallup begs to differ.

According to Gallup, the unemployment rate has been increasing the past couple of months and is now over 10%.  The underemployment rate has also been increasing and is now almost 20%

So, who to believe – the fox guarding the henhouse or a left-leaning, reasonably objective 3rd party.

Hmmm.

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Posted in Employment - Jobs, Unemployment | Leave a Comment »

Brands and Buddies, the new way to Bing

March 22, 2011

TakeAway: Visual “tiles” that come up with Bing’s search results are part of the Bing’s innovations  to make the search platform more interactive and relevant to its users.

It is also showing the searcher’s Facebook friends’ Likes as another way to for users to validate the results. 

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Excerpted from BrandChannel, “Bing Enhances Search with Brands and Buddies”  by Sheila Shayon, February 25, 2011

… search with Microsoft’s Bing lately, noticed the tiles now included with dynamically rendered visual info from brands in the entertainment, local, travel and auto categories. … enhancing Bing to be more relevant to users.

User queries trigger them to appear on the right side of the screen from one of 45 launch partners including IMDb, Yahoo Movies, Rotten Tomatoes, OpenTable, Yelp, CitySearch, Urban Spoon, Cheap Flights, YouTube, MTV, Last.fm, Rhapsody, Pandora, MSN and dozens more.

The tiles are interactive and click-through on a Pandora or Rhapsody tile brings up a song or checks the number of plays via Last.fm.

… the tiles are “going to be pulling in metadata from those sites. …figure out the results they’re looking for if you append some kind of visual cue onto the page.” … And enable users to “ingest third party content more successfully,” …

… “an innovative move to add images to the organic results. But … innovations must come from the ranking results vs. making adjustments to the aesthetics of searches…

… not so much intrusive as a value add to the search and/or social online experience: …feel Bing as a search engine is more user-friendly, smart and reputable. Consumers are intrinsically drawn to visual references and respect and trust this type of added feature when looking for a product…

… Bing tiles are the latest ingredient in a richer mix evocative of Microsoft’s Windows Phone 7 interface with alerts on homescreen tiles updated real-time.

Add to the mix that Bing also now displays your friends’ Facebook likes in your search results, …

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That menu — it’s playing with your mind … is it a profit scheme?

March 22, 2011

You bet it is …

In his book, Priceless: The Myth of Fair Value (and How to Take Advantage of It), author William Poundstone dissects the marketing tricks built into menus—for example, how something as simple as typography can drive you toward or away from that $39 steak.

1. The Upper Right-Hand Corner
That’s the prime spot where diners’ eyes automatically go first.

Restaurants often use it to highlight a tasteful, expensive pile of food.

2. Pictures

Generally, pictures of food are powerful motivators but also menu taboos — mostly because they’re used in downscale chains like Chili’s and Applebee’s.

Red Lobster ditched pics when it started trying to inch upscale

3. The “Anchor”
The highest priced item on the menu may not ever get ordered.  That’s ok.  It’s purpose is to make everything else near it look like a relative bargain.

4. In The Vicinity
The restaurant’s high-profit dishes tend to cluster near the anchor.  They’re items at prices that seem comparatively modest (when compared to the anchor).. They’re the items the restaurant really wants you to buy.

5. Columns Are Killers
It’s a big mistake for restaurants to list prices in a straight column. “Customers will go down and choose from the cheapest items.”

Consultants say to omit “leader dots” that connect the dish to the price; and to drop dollar signs, decimal points, and cents

6. The Benefit Of Boxes
“A box draws attention and, usually, orders.

When you see an item in a box, think “high margin”

7. Menu Siberia
That’s where low-margin dishes that the regulars like end up. They’re there, but relatively easy-to-miss  … or so the restaurant hopes..

8. Bracketing
A regular trick …  it’s when the same dish comes in different sizes.

Because youre never sure of the portion size, you’re tempted to to trade up … especially from small to “regular” size.

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Excerpted from Priceless: The Myth of Fair Value (and How to Take Advantage of It), to be published in January by Hill & Wang, an imprint of Farrar, Straus & Giroux. © 2010 by William Poundstone.
http://nymag.com/restaurants/features/62498/

Posted in Behavioral Economics, Mktg - Pricing | Leave a Comment »

Is social media losing its edge?

March 22, 2011

TakeAway: With all the recent social media flops some say the end of using social media is near. 

While the way people get and consume information is different, the idea behind making a product that people need and selling it them stays the same, and CMOs need to do things that matter like actually selling the product.  

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Excerpted from AdAge, “Do Campaign Failures, High-Profile Firings Signal the End of Social Media?” by Jonathan Salem Baskin, March 22, 2011

The latest news involving social-media pioneers isn’t good. Pepsi has fallen to third place behind Diet Coke in spite of its widely heralded switch from Super Bowl ads to a huge social charity program called Refresh Project. Burger King has …fired agency Crispin Porter & Bogusky after producing Facebook campaigns and viral videos that got lots of attention while the business witnessed six consecutive quarters of declining sales. …

Every CMO should use this occasion to pause and reflect …on rolling out a social-media campaign or start giving away content for free. Unfortunately, there are many reasons why you shouldn’t, and may not.

… what good are invented metrics for social campaigns if they don’t evidence any influence on sales? There’s no such thing as a successful brand that doesn’t deliver successful marketing, is there? In fact, the latter builds the former. They can’t be disconnected, and if social marketing can’t be made responsible for tangible behaviors that matter to the business, not just to ideas about branding, then no made-up measures of its importance matter much at all.

… Identifying what the social efforts did, if anything, requires the upfront presumption that they were necessary and therefore accomplished anything at all that mattered (like starting out to claim that cereal is “part of a balanced breakfast”). …

…beginning of the end of social media’s infancy. Maybe it’s time to stop talking unseriously and get serious for real. Technology has utterly changed the ways consumers get and use information, and it has completely disrupted how companies create, share and collect it. …People still need and do the same things they always did, and companies still need to sell to them. Pretending that conversation has any value apart from the meaningful, relevant and useful information within it — fad ideas, like “content” is anything more than a silly buzzword, or that anybody wakes up in the morning hoping to have a conversation with a brand of toothpaste or insurance — is no longer credible in light of the latest news.

Instead, CMOs need to discover new ways to do the old things that still matter: Offer products and services that someone truly needs, admitting that you want to sell stuff to them, and then properly serving them after they’ve given you their business. Sounds so easy as I type it but doing so has gotten so incomprehensibly complicated. Maybe the news coming out of Pepsi and Burger King is a wakeup call that we need to make all of this simpler, not harder. …

 

 

 

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Jobs affected by federal minimum wage hikes account for 41.8% of the total reduction in jobs seen since 2006.

March 21, 2011

Economists warned that raising the minimum wage would result in lost jobs. It always does.

Why?

As labor gets more expensive, companies pare back the employment rolls.

Sure, the folks who hang onto their jobs make more … but folks who lose their jobs make less – zero to be precise.

Here’s a great analysis from the site Political Calculations

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In 2006, the last full year in which the U.S. federal minimum wage was a constant value throughout the whole year, at least before 2010, approximately 6,595,383 individuals in the United States earned $7.25 per hour1 or less.

For 2010, the first full year in which the U.S. federal minimum wage was a constant value through the year since 2006, the U.S. Bureau of Labor Statistics estimates that an average of just 4,361,000 individuals in the United States earned the same equivalent of the current prevailing federal minimum wage of $7.25 or less throughout the year.

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In terms of jobs lost, that means that 2,234,383 of the jobs lost in the U.S. economy since 2006 have been jobs that were directly impacted by the series of minimum wage increases that were mandated by the federal government in 2007, 2008 and 2009.

Interestingly, the average number of employed members of the civilian labor force in 2006 was 144,427,000. In 2010, the average number of employed members of the civilian labor force in the U.S. was 5,363,000 less, standing at 139,064,000.

So, in percentage terms of the change in total employment level from 2006 to 2010, jobs affected by the federal minimum wage hikes of 2007, 2008 and 2009 account for 41.8% of the total reduction in jobs seen since 2006.

Thanks to Tags for feeding the lead

Posted in Economics, Employment - Jobs | 1 Comment »

Panera builds loyalty .. and, oh yeah, keeps prices high.

March 21, 2011

TakeAway: Panera Bread investors are hoping the company’s new loyalty program and additional menu items will lead the way for continued sales and traffic growth.  The loyalty program, MyPanera cards, is a way for the company to build deeper relationships with people who are already engaged with the brand.

* * * * *

Excerpted from WSJ, “Panera Bread Sees Loyalty, Innovation Bringing in the Dough” By Annie Gasparro, February 11, 2011

On the heels of launching its customer-loyalty program, Panera is bringing in steak as new protein for its sandwiches, which, bolstered by extra marketing, are expected to help continue the trend of increasing sales, especially in the dinner and catering businesses.

The move to add steak to the menu comes at a time when beef prices are at all-time highs and rising, putting additional commodity pressure on Panera. But the company remains confident.

Panera’s loyalty program, MyPanera cards, is expected to be a key driver in future traffic growth, as it allows the company to track what its customers are buying, when they buy it and how much they spend. The free program was launched in the fourth quarter and presents members with “soft rewards,” like complimentary items, that match their buying habits.

This kind of insight can be used to make marketing substantially more effective, analysts point out. By giving a free bakery item to a customer who normally buys just coffee, Panera could create a higher-check customer long-term. In the same way, it could bring breakfast frequenters, for instance, in more regularly for lunch or dinner as well.

Panera isn’t afraid of raising prices coming out of the recession. The bakery chain says its overall commodity costs, about 80% of which are locked in for the year, will be up about 3% this year, causing the company to raise prices 2%.  Panera’s bottom line improved through much of the recession, having increased every quarter in nearly three years largely due to customer loyalty. While competitors discounted to lure customers during a slump in dining demand, Panera’s aversion to price cuts succeeded among its base of mostly upper-middle-class customers and revenue growth never reversed.

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Posted in Food & Drink, Mktg - Loyalty Programs | 1 Comment »

What do the Big East and Richmond, VA have in common?

March 21, 2011

Both have 2 team in the NCAA’s Sweet Sixteen.

Ouch.

All of a sudden, the Big East looks more like the Big Easy.

Charles Barkley on TBS: “When you get to the tourney you’ve got to be physical & talented … not just physical.  Everybody’s physical. Except for Connecticut’s Kemba Walker, who does the Big East have?”

Double ouch.

Think back to brackets’ day.  The pundits (Bilas, Vitale)  praised the Big East and said Virginia Commonwealth didn’t belong in the tournament. That there needs to be more “basketball guys” on the selection committee — who know what they’re talking about. 

Hmmm.  So, who knows what they’re talking about?

Time for baseball.  Go Cubbies.

Posted in Sports & Athletics | Leave a Comment »

Marketers Return to “Good Ole Days” Strategy

March 18, 2011

TakeAway: With the economy still a long way from recovering, marketers are turning to an old strategy to reconnect with consumers.

Recent ads from automobile and even bourbon companies aim to reach the average Joe via the theme of shared values.   

Advertising that makes an emotional appeal to consumers is by no means a new trick to advertisers or their agency partners, but it’s easier said than done. 

One of the classic, textbook examples of marketers who excel at this is Coca-Cola, which isn’t selling bottles of Coke, per se, but “8- and 12-oz. bottles of happiness.” 

In tough times, the strategy may be even more critical as cash-strapped consumers are more likely to spend money on brands that closely align with their personal values.

* * * * *

Excerpted from WSJ, “Marketers Embrace ‘Values’ Pitch in Tough Times” By Elaine Wong, February 17, 2011

The two-minute Chrysler “Imported from Detroit” commercial is full of values-laden phrases. There are the obvious descriptors like “hard work” and “conviction” as well as adages that inspire awe and determination, such as: “It’s the hottest fires that make the hardest steel.” Or, thought-provoking questions like, “What does a town that’s been to hell and back know about the finer things in life?” All statements that are meant to encourage consumers to take a second look at Chrysler by prompting them to reconsider their values.

Another one of Detroit’s Big Three, General Motors, which also advertised in the Super Bowl, has been running a campaign for the last four months to promote its new lineup of Chevrolet vehicles, including its Volt electric and Cruze compact cars. A 60-second “anthem” or anchor television spot takes viewers through Chevrolet’s historical past, as well as a brief look into its future. “One hundred years ago, Chevrolet sprang bolt by bolt, car by car, out of the very best America had to offer: ingenuity, integrity, optimism,” the voiceover says.  There is also a subtle plug at Chevy’s “deep” history: “This isn’t just any car company. This is Chevrolet. And the strength of our nation can be found in every car and truck we make. That’s why today, tomorrow and on into a bright future, we can proudly say, ‘Chevy runs deep.’”  The strategy is a bit different from the past, when Chevrolet marketed its vehicles via a “hard sell” kind of approach–i.e., “We’re an American brand, you’re an American consumer, therefore, you should buy our products.”

The shift stemmed from this insight: “While consumers want us to succeed, they don’t want to spend their hard earned money on us just because we’re made in the U.S. and are a U.S. company.” A better approach was to focus on the emotional reasons behind why Americans buy Chevrolets.

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

GM Shareholders: The next bailout?

March 18, 2011

If you were one of the insiders who bought GM’s stock on the day of the IPO for $33 and change, and you’re still holding it, guess what?

You’re under water.

More realistically, if you’re one of the first day fat cats, you flipped the IPO stock … maybe for as much as $39 … you made some quick money.

But, those suckers who bought your flip?

Well, they’re way under water.

Last week, the stock was trading at its life time low … under $32. It’s still there.

Some traders are shorting the the stock, looking for a near-complete collapse.

Here’s an analysis from one of the shorts – Jonathon Hoenig of The Capitalist Pig and WSJ’s Smart Money …

GM recently announced a $4.7 billion profit , its biggest in a decade. Some 45,000 union workers will receive profit-sharing payments averaging $4,300 – a record.

And on that very same day, shares of the company slid below their IPO price of $33 for the first time, a vitally important fact overlooked by most of the enthusiastic media reports.

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If there was ever a stock that makes people emotional , it’s General Motors. Either the company is the backbone of the American working man or the poster child for bad business practices.

That emotion, of course, is only exacerbated by the fact that GM received a $50 billion bailout from the Federal Government, an intervention that left taxpayers the largest shareholders, still owning 26.5% of an extremely weak stock. For the government to break even, shares will have to hit an estimated $53 – up 64% from current prices.

And not all of GM’s headlines have been as rosy as its recent profit announcement. The company sold just 281 Chevy Volt hybrids in February.

Despite its recent rebirth, this is a quintessential ” old soldier ” stock, heavy with the overhang of public ownership and beset with wasteful political influence .

Posted in GM bailout & IPO | Leave a Comment »

Diet Coke smacks Pepsi …

March 18, 2011

Punch line: Coke #1, Diet Coke #2, Pepsi #3, Diet Pepsi ?

According to the WSJ …

U.S. sales of Diet Coke overtook those of Pepsi-Cola for the first time in 2010, making the diet soda the No. 2 carbonated soft drink in the country behind Coca-Cola, industry data are expected to confirm Thursday.

Occupying the top two rankings marks a historic win for Coca-Cola in its decades-old rivalry with PepsiCo, which has seen its market share slip in recent years and is trying to retool its marketing.

Pepsi-Cola commanded only a slight lead over Diet Coke in 2009, when each brand had slightly less than a 10% market share among carbonated soft drinks.

That year, regular Coke won the cola wars with a 17% market share.

But market-share data is expected to confirm Diet Coke pulled ahead in 2010.

PepsiCo made a big bet in 2010, when it didn’t market its flagship cola on the Super Bowl or in other TV spots.

Instead, it launched the Refresh Project, an online charitable-giving program that disbursed $20 million in donations “for refreshing ideas that change the world.”

Increasing the stakes, Coca-Cola and PepsiCo also spent billions of dollars last year to acquire their largest independent U.S. bottlers in a bid to bring drinks to stores more quickly.

WSJ, Diet Coke Wins Battle in Cola Wars, March 17, 2011

Posted in Beverages - Soft Drinks | Leave a Comment »

Illinois adopts “Internet Sales Tax Law”

March 17, 2011

Last week, Illinois’ governor signed into law controversial legislation requiring Internet retailers like Amazon.com and Overstock.com to collect Illinois’ 6.25% sales tax if they have affiliate sellers in the state.

Previously,, internet sellers were only compelled to collect sales taxes if they had a physixL presence in the state – e.g. stores or distribution centers.

So, Borders.com would have to collect sales taxes, but Amazon.com didn’t.

Hardly a level playing field.

But, Amazon has over 10,000 “affiliates” based in Illinois – companies that hawk their wares through Amazon. 

Now, these affiliates count like physical outlets.  So, if Amazon has a single affiliate based in the state, it is compelled by law to collect sales taxes

Amazon’s plan: terminate all affiliates located in Illinois.:

My take:

First, the law has nothing to do with level playing fields – it has all to do with tax revenues.

Given that, consider the so-called “second order effects”.  Many Amazon affiliates are likely to move out of Illinois – across the border to Indiana or Illinois – taking with them jobs and, oh yeah, corporate tax revenues.

Hmmm …

Posted in Internet Marketing - eCommerce - | 1 Comment »

Suburban moms — armed with iPads — spur mobile commerce …

March 17, 2011

TakeAway: If your company is utilizing ecommerce, you will want to make sure it is iPad user friendly.

More and more shopping is being done on tablet devices and is stealing its share from pc based purchasing especially as women are becoming heavier users than men because of the inability for the manpurse fad to stick.

* * * * *

Excerpted from AdAge, “How the iPad is Reshaping Ecommerce”  by Patti Ziegler, February 22, 2011

The growing cohort of iPad owners — wealthy, tech savvy, and increasingly female — is emerging as a powerful driver of online retail sales.

… iPad has become a must-have mobile device for many suburban moms, who seem especially fond of shopping (and playing Scrabble) …

…counterpoint to common technology stereotypes, women appear to be gaining on men as the fastest growing segment of early iPad adopters. In fact … the female-to-male ratio of iPad users shifted from 1:2 to 2:3… This finding is particularly significant when one considers that women control between 70% and 85% of household spending in the U.S…

…the iPad has emerged as …the poster child for a new class of mobile commerce. Many retailers report that over 50% of their mobile traffic is now coming from the popular tablet device, …

…rather than creating new incremental sales, tablet-commerce will largely grow by …cannibalizing traditional PC-based retail traffic.

… smartphone-based “m-commerce” also remains highly relevant for retailers. Smartphones are less likely to be used to browse products and make actual purchases, yet mobile devices are increasingly supplementing the in-store shopping experience …to find nearby locations, check hours, and obtain price comparisons. …m-commerce activities are not transactional, they do have the potential to drive incremental sales offline.

… E-commerce is growing at a double-digit pace and many retailers are ramping-up their presences on mobile and online platforms to offset a simultaneous decline of physical store sales. … creating opportunities for retailers that create shopper experiences that seamlessly extend across smartphones, laptops, tablets, in-store kiosks and, yes, the iPad.

The iPad’s nearly 10-inch display is comfortable … for web-surfing and product consideration, overcoming the size restraints frustrating shoppers on mobile phones. … the touch-screen functionality provides a more immediately satisfying and tactile shopping experience. …free from the constraints …they can be comfortably schlepped from commuter trains to airport lounges to kitchen counters, facilitating purchases at every venue.

Little wonder then that tablet sales — as a share of total PC sales — are forecast to nearly quadruple from 2010 to 2015…”To that end, retailers need to ensure that all pages, transaction forms, and form fields render as well from tablet devices as from any other browser,”…

In addition to the iPad, new offerings include the Android-based tablets Samsung Galaxy Tab and T-Mobile G-Slate. …The demographics are particularly attractive … typically affluent and more likely to be spending money online in the first place. Nearly 95% of iPad owners have “solid wealth and strong incomes,” …

Meanwhile, among men with means, there’s been speculation that the iPad will finally make “man purses” an acceptable accessory. …Good luck with that, guys! Perhaps an iPad-equipped woman could help you buy one online.

 

 

 

Edit by HH

 

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Posted in Internet - Soc Networking, Internet Marketing - eCommerce - | 1 Comment »

Husky women play with men …

March 17, 2011

In this case, we’re talking about the top-ranked UConn Huskies women’s basketball team.

Seems that one of their competitive advantages is practicing against men.

According to Business Week:

The top-ranked Connecticut team is among the two-thirds of Division I women’s basketball programs that practice against male players.

Because men who gravitate to competitive round ball are generally built bigger, stronger, and faster than women, teams use them as a form of overload training.

“It’s like wearing ankle weights when running.”

If it weren’t for the guys, starters would practice against bench players, who, as a rule, are not as good as the first team.

Plus, from a coach’s point of view, the guys are the managerial dream of expendable labor.

“We don’t have to be worried about whether they are going to be ready to play,”

Business Week, Winning Women Practice Versus Men, March 10, 2011

Posted in Sports & Athletics | Leave a Comment »

On Wisconsin: We couldn’t have said it better …

March 16, 2011

Something troubled me watching the protesters camping in the Wisconsin state capitol.

Business Week hit the nail on the head:

Protesters chanted, sang, played drums, deployed yogic oms, and —though few gave the impression of being gainfully employed — they conducted long conversations about the sanctity of workers’ rights.

Business Week,  A Divided Wisconsin, March 9, 2011

And, from the WSJ: 

Whether Wisconsin represents the emergence of a broad-based, national campaign against reform-minded Republican leaders, however, depends on something far less clear: the ability of the protest movement to reach beyond its own echo chamber to the nonunion middle class.

 WSJ, Rules for Wisconsin Radicals, March 15, 2011. 

Funny how folks who don’t pay taxes aren’t fazed by wasted tax dollars …

Posted in Unions - UAW | Leave a Comment »

Want the impact of Facebook? Then, pay up!

March 16, 2011

TakeAway: Brands trying to get in front of their customers by utilizing sponsored stories may be surprised to find out where their stories are ending up. 

This latest attempt for brands to utilize free promotions via Facebook prove that there is still a need to pay for the customers’ attention.

* * * * *

Excerpted from AdAge, “How Brands are Getting Lost on Facebook”  by Brad McCormick, February 22, 2011

… Facebook recently announced the launch of sponsored stories … which allow marketers to insert certain user updates into paid advertisements … another blurring of the line between paid and earned media.

But …brands are stumbling in their quest to be heard on the world’s most popular social network.

… Not all friends are created equal … a principle that social networks have struggled to properly put into practice.

Facebook actually attempted to correct this with…”Top News” featuring the news and updates from your friends that Facebook’s thinks you will be most interested in. … a brand’s presence within a user’s “Top News” is as good as gold because it is the default page.

“Recent News,” is fast becoming the spam folder of Facebook. …with an overflow of updates from “friends” with whom you rarely interact …this is where branded updates are appearing.

… While Facebook’s marketing department may tell Starbucks that another customer’s affinity for a Double Espresso Venti Mocha holds value to its fanbase, Facebook’s Edgerank algorithm may be saying something entirely different. Otherwise, there would be no need to “ensure your fans see the content that your Page publishes” via purchasing sponsor stories ads.

More than anything, Facebook’s announcement shows that is still necessary for brands to pay for a customer’s attention. While that’s not astonishing, for brands to truly leverage the power of Facebook, they need to find better ways to earn it.

Edit by HH

Posted in Internet - Soc Networking, Internet Marketing - eCommerce - | Leave a Comment »

Here’s your new Medicaid card … good luck.

March 15, 2011

Punch line: Being on Medicaid was associated with the longest length of stay, the most total hospital costs, and the highest risk of death.

According to the WSJ …

Dozens of recent medical studies show that Medicaid patients suffer for it.

Foe example, 2010 study of 893,658 major surgical operations performed between 2003 to 2007, published in the Annals of Surgery, found that being on Medicaid was associated with the longest length of stay, the most total hospital costs, and the highest risk of death.

In all of these studies, the researchers controlled for the socioeconomic and cultural factors that can negatively influence the health of poorer patients on Medicaid.

So why do Medicaid patients fare so badly?

Payment to providers has been reduced to literally pennies on each dollar of customary charges because of sequential rounds of indiscriminate rate cuts, like those now being pursued in states like New York and Illinois.

As a result, doctors often cap how many Medicaid patients they’ll see in their practices.

Meanwhile, patients can’t get timely access to routine and specialized medical care.

Source: WSJ, Medicaid Is Worse Than No Coverage at All, March 10, 2011. 

Posted in Health Care / Medical Insurance | Leave a Comment »

But, I just want plain old toothpaste …

March 15, 2011

TakeAway:  An explosion of specialized pastes and gels brag about their powers to whiten teeth, reduce plaque, curb sensitivity and fight gingivitis, sometimes all at the same time.

Add in all the flavors and sizes, plus ever-rising prices, and the simple errand turns into sensory overload. 

Manufacturers acknowledge the problem and are putting the brakes on new-product introductions.  In this case, more product variety isn’t always better.

* * * * *

Excerpted from the WSJ, “Whitens, Brightens, and Confuses” By Ellen Byron,February 23, 2010

 

P&G, maker of Crest, says it has “significantly” reduced the number of oral-care products it makes world-wide in the past two years.  Crest hit the market in 1955 and in 1960 became the first fluoride toothpaste to gain the American Dental Association’s “seal of acceptance.” Toothpaste was elevated from cosmetic to therapeutic status, and sales of Crest nearly tripled within the next two years. The 1980s brought tartar-control formulas, raising consumer expectations of what toothpaste could do. Ever since, companies have brought out benefits and ingredients, in search of the next game-changing upgrade.

Each new benefit is a chance for toothpaste makers to push prices upward and drive sales. With some 93% of U.S. adults using toothpaste, according to Mintel, there’s little room to recruit new users.

Packaging plays its part in toothpaste-aisle clutter. “The toothpaste carton is a certain size and shape and sits on the shelf in a certain way. That makes it hard to communicate effectively when there’s a meaningful difference in a new product,” says Jonathan Asher, senior vice president at Perception Research Services, which specializes in packaging and shopper marketing.

This year, Colgate-Palmolive introduced packages meant to be more easily deciphered. It standardized sizes of the Colgate logo, the “sub-brand” and the flavor or benefit, so shoppers will notice them in that order. It did what it calls “shelf tests,” timing how long it took shoppers to find new packages of Colgate Total Advanced Whitening and other variations, versus older packages. “The new packaging was not only preferred but it was easier to find,” says Nigel Burton, president of Colgate’s global oral care, consumer insight and advertising.

Many dentists think differences between brands aren’t very meaningful. “Just make sure it has fluoride and has the American Dental Association seal,” says Ada Cooper, a New York dentist and consumer adviser for the ADA, which evaluates toothpaste claims. The ADA’s seal “tells you that the product has been tested, that it’s effective in doing what it says it’s going to do, and has the right mix of ingredients.”

Edit by AMW

 

Posted in Mktg - Product Line Mgnt, Mktg - Versioning | Leave a Comment »

Unemployment, Budget, Libya, Japan … Fore!

March 15, 2011

Media widely report that Pres Obama took a 4 a.m. phone call from Sec. of Staff Bill Daley last week.

Many inferred that it was the news of the Japan earthquake and tsunami.

Au contraire.

Appears that it was a wake-up call for his 61st round of golf.

As Alfred E. Newman would say, “What me worry?”

President Obama just could not wait for spring weather to arrive.

For the second week in a row, the most powerful man in the world stepped away from the White House to hit the golf course.

Even as his administration and the U.S. military help Japan recover from a devastating earthquake, and as the world worries about Fukushima’s nuclear reactor, the president could not resist taking advantage of the 48-degree weather in the Washington, D.C., area.

The president left the White House Saturday afternoon for a short trip to Joint Andrews Base in Camp Springs, Md.

With cloudy skies, it’s not the best weather for golf, but Obama loves to spend his Saturdays on the greens. Last fall, Obama went golfing darn near every weekend.

These are never quick “work on your swing” trips; usually the president plays 18 holes, as he did last week.

ABC News, Just Warm Enough for Golf, Obama Back on the Course
a. March 12, 2011

Posted in Obama Administration | Leave a Comment »

Answer: $514,327,670 … What’s the question?

March 14, 2011

The amount of money that 24 Unions donated to Dem political campaigns over the past 20 years.

Yep – over half-a-BILLION dollars.

That’s why Dems think that automatic payroll deductions for dues is so important.

Maybe if it’s not automatic, then some folks might decide that the union is serving them well .. especially when they simply serve as a financial conduit to Dem politicos.

Hmmm.

Note on the list the prominent position of gov’t employee unions … and quasi gov’t unions like the UAW and the SEIU.

click the chart to enlarge it 

image

Here’s a post from last fall that puts the numbers in context:

According to data from the Center for Responsive Politics …

  • Business PACs gave 52% of their $72.2 million in total donations to Republican candidates from January through July. In the same period of 2009, corporate PACs had sent 59% of their $64 million in campaign contributions to Democratic candidates,
  • Overall, big banks, securities firms and other financial-services companies gave 55% of $18.5 million in campaign donations to Republicans in the January-through-July period. That’s a reversal from the same period last year, when they gave 65% of PAC donations to Democrats.
  • PACs that are run by labor unions give an overwhelming share of their donations to Democrats. Sixteen of the top 20 PAC donors to Democrats so far this election are operated by labor unions.  None of the top 20 PAC donors to Republicans have been labor unions in the current election cycle.

WSJ, Corporate Political Giving Swings Toward the GOP, Sept 21, 2010 

Thanks to JC for feeding the lead.

Posted in Politics - General, Unions - UAW | 1 Comment »

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