Belmont University

July 03, 2008

A New Kind of Nano

Tata Nano.jpgYes, there is a Nano you can drive, and while it is sleek, “amazingly small” and appears to come in a variety of colors, it’s not branded by Apple. An article from Wired magazine introduced this new little Indian car to me, and I couldn’t help but smile at the sight of it. A visit to the car’s website reveals that Tata Motors is attempting to engage consumers through interactive channels (blog, facebook, etc.) to promote the new vehicle. It's even positioned as “The People’s Car.”

Selling for the equivalent of $3,000 USD per car, this innovation appears to be the answer for many in India who have never been able to own a car before. According to the Wired article, “When it comes to keeping the price down, Tata Motors starts with major advantages. Labor, raw materials, facilities — all cost far less in India than in Detroit. And it doesn’t hurt to be part of the country’s most powerful industrial combine. Tata Steel’s plant is just a couple of hundred miles from Tata Motors’ West Bengal manufacturing plan — a proximity that further cuts costs.”

Unfortunately, with this tiny car, comes a tiny gas tank. The Nano only holds 3.9 gallons. Also, environmental concerns are tied to the notion of more people being able to own cars in India. It should be interesting to watch the success of this car and continue to see how auto manufacturers respond to the needs of today’s world.


June 26, 2008

Interactive Advertising

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The top winner at this year’s Cannes International Advertising Festival was an interactive campaign for Uniqlo, a Japanese clothing retailer. The Titanium Grand Prix award went to Projector Tokyo, a 4-year-old production boutique, for its creative work.

According to the story from Portfolio.com, “The Projector’s creative director, Koichiro Tanaka, said the challenge was to create a relevant, portable experience. The result combines user-generated media and the Uniqlo website with a nonstop fusion of dance, sound, and viral video. It's available via product catalogs, screensavers, ringtone downloads, and customizable T-shirts. There isn't a single 30-second TV spot to be found.” The clean, quirky site is fun to explore and, more importantly, helped increase sales for the retailer.

Accolades for this and other viral campaigns highlight the transition from traditional mass advertising to more interactive efforts to engage consumers. The ability to inform and entertain in messaging is essential.


June 17, 2008

iWant One

promo_iphone_enterprise_20080609.jpgI want to take a few moments to give credit to who many perceive to be the brand powerhouse for today —Apple. Apple has done an impressive job of anticipating trends and staying ahead of the curve. The brand consistently delivers on performance and design and has successfully positioned itself as the “cool” brand to have. Through their gateway product, the iPod, they’ve given many of us byte-size chunks of what they have to offer — form and functionality. If you don’t have an iPhone, chances are you want one.

The Mac in the Gray Flannel Suit” article in one of last month’s BusinessWeek magazines highlighted the new demand for Macs in the corporate setting. While there are some disadvantages to consider in such a transition (mainly “Apple’s secretive culture,” price-points and lack of corporate sales and support staff), five factors were recognized for fueling this transition: consumer clout, snazzy software, web computing, the Vista debacle and recruitment. While I am still staring into a PC, there may soon come a day when an Apple might be looking back at me.

I can only wonder what Apple has in store for us next.


May 29, 2008

Conscious Consumption

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As social issues gain more attention, consumers are responding with their time and wallets. Whether switching to energy-efficient light bulbs to conserve resources, donating funds to help restore communities or spending weekends helping those in need, many people are taking steps to make a positive difference. While contributing to a cause should always be “in style,” today, doing your part can literally be quite fashionable.

Take a look through the racks at Philanthropy, a trendy boutique in downtown Franklin, TN, and you’ll see what I mean. Claiming “style with purpose,” the business offers a variety of merchandise, including graphic tees highlighting social issues and accessories designed to make a bold statement. The best part - a portion of the proceeds goes to support various campaigns, including Aid Sudan, Hands and Feet Project and Against the Grain.

Considering going “green”? You’re certainly not alone. Today you can buy “Eco-Iconic,” what trendwatching.com has termed for "Eco-friendly goods and services sporting bold, iconic markers and design, helping their eco-conscious owners show off their eco-credentials to their peers.” New hybrid models, accessories and even architecture allow consumers to make eco-friendly purchases they can be proud to sport.

So, how can your business help consumers help the world?


May 24, 2008

Starting the Conversation

southwest.jpgUntil fairly recently, the consumer-brand relationship has been heavily one-sided. If feedback channels did exist, they were utilized more so to air complaints than to routinely interact with products/services and other customers who share similar interests. Thanks largely to technology innovations, this is no longer the case. Successful brands are utilizing interactive media to engage consumers and give a louder voice to customer evangelists.

Take Southwest Airlines, for example. In my opinion, they have positioned themselves as “the people’s airline” by inviting customers to vote on preferences and share their stories, while offering them the freedom to “move across the country.” Their blog, Nuts About Southwest, encourages dialogue between the company and the customer, and the customer and the customer, incorporating other social media tools, such as YouTube, flickr, facebook, Linkedin and Twitter (they’ve already expressed they won’t be going the way of American Airlines regarding the baggage fee via Twitter). These utilities not only allow users to share media, they have the capabilities to solicit a response from the consumer, whether it be ratings, comments, tags, etc.

It all begins with a conversation, by listening to what the consumer is saying and evolving your products/services to best deliver on expectations. Because they’re talking, whether or not you’re listening.


May 19, 2008

Burger Translation - Going McGlobal

[Authored by MBA Candidate Wesley Payne] As U.S. businesses continue global expansion efforts, even the "experts" continue to learn valuable lessons. With modern technology capable of carrying humans anywhere in the world in a matter of two days and sending communication instantly to any receptive media at any point on the globe, the idea of global expansion seems like the right choice. For some companies, it may be the only path that offers continued growth. The catch continues to be in adequately understanding how to market your product to the culture of the new country.

McDonalds Barcelona.jpg McDonald's decided in 1981 to expand into Spain (Note: Barcelona unit shown to the left.). This at first seemed like a viable, untapped market of over 8 million people ripe for invasion from the fast food industry. After successfully negotiating with the government, McDonald's went about spreading quickly throughout the European peninsula.

Unfortunately, McDonald's was not ready for two aspects of the Spanish culture. First, was the lack of reason for and desire to rush through one's meal. The Spanish are a very laid back people that adhere to a pace of food consumption most Americans would consider painfully slow. When the McDonald’s people came in offering quick food to take home to eat after work, the Spanish simply saw no need for it.

After recovering from this setback and refocusing their marketing to young Spanish parents and immigrants with kids, they made another mistake by not offering alcoholic beverages. When they started to draw in the young families with the promise of a playground and no hassle meals for children, they noticed the parents would not eat. After some surveying, they found that the parents wanted to drink wine or beer with their meals. Since its inception, no McDonalds had ever served beer at the restaurants in any city or country in the world. This has since changed, and now the corporation serves beer throughout Europe within its stores.

So did the changes make for a successful foray into Spain and later Europe? Yes and No. According to the company website, McDonald's is currently in over 60 countries, with Spain ranked number 11, with over 260 stores. They have also penetrated the rest of Europe with other major countries on the continent presently accounting for half of the top ten. Though McDonald’s did not change the culture and currently provides very few stores when considering Spain’s population of 40 million, they do continue slow and steady growth. It is no doubt in part to their adaptations, but some credit should be given to globalization as a whole. McDonalds may have been ahead of its time when it first tackled the Spanish market. However, as their economy continues to grow and global cultural norms continue to blur, it could be that their timing will work out rather well.

Authored by Wesley Payne, MBA Candidate


May 05, 2008

Where Has All the Competition Gone?

[Authored by Jeremy Smith, MBA Candidate] As consumers, do we really have a choice when it comes to where and what we purchase? While most businesses have many competitors, there are quite a few that don’t. In many different business sectors, competition seems to be shrinking as large players grow and dominate the field.

A good example is the retail marketplace. Competition is high when it comes clothing retailers or restaurants. If you are looking for a place to buy some new shoes or a dinner for the evening, the choices are abundant. There are many cases where this isn’t true. Retailers like Wal-Mart and Target, Kroger and Publix, Lowes and Home Depot, Barnes and Noble and Books-a-Million, and Best Buy and Circuit City may compete with each other, but not usually with anyone else. There are exceptions to this rule as retail giant Wal-Mart carries just about everything. However, they specialize in nothing. In addition, the competing products are usually of a lower quality.

For example, if I need to buy a kitchen sink on a Sunday afternoon, I basically have two options, Lowes or Home Depot. If I need a popular book to read, Books-a-Million or Barnes and Noble are my two choices. Other small local or online retailers are available, but sometimes the consumer needs something right away or it might want “to touch” the product to feel comfortable with it. These companies have essentially created local oligopolies and compete only with each other. As a result, the big-box stores who used to offer big savings are now only marginally cheaper than their local predecessors.

Best Buy.jpgCircuit City.jpg A bigger question might be what happens next? In many of cases, one player within each pair is starting to outshine the other. In the fourth quarter of 2007, Best Buy, the No. 1 consumer electronics retailer, posted an 18.5 percent jump in sales while Circuit City lost money. Lowes is continuing to gain substantial ground on Home Depot, and Barnes and Noble is the only national book retailer doing well financially. Will the market eventually support only a single competitor in each such space?

Wal-Mart has already gained this position in several small geographic areas and they are using this position to increase profits. In my hometown of Fayetteville, TN, Wal-Mart is the only major retailer. Grocery stores like Food Lion and Bi-Lo have left town. The market is too small for the addition of a store like Target and the prices reflect this lack of competition. Every item in the Fayetteville store is more expensive than the same item in the Murfreesboro Wal-Mart. Are the fates of larger markets the same? In retail, the rule is to grow or fail. However, should one company win, it is the consumer who would suffer.

--Jeremy Smith, MBA Candidate


Product Placements on the Rise

[Authored by MBA Candidate Mitch Walker] Product advertising through media is experiencing many changes. The industry is switching away from direct advertising to more of a product placement approach. Although, this concept is nothing new, more and more companies are utilizing this approach. The next time you watch television or a movie, try and identify certain products that appear or are mentioned over and over. Some of them will become more obvious than others. Unless the viewer is really thinking about it, they may not realize that they are being exposed to certain product placements.

Camaro from Transformers.jpg In the movie You’ve Got Mail, AOL, Apple, IBM and Starbucks were products that were frequently displayed. Apple computers were exclusively used and displayed in the movie Mission Impossible 2. Chevrolet made excellent use of the Camaro in the recent Transformers movie.

More and more television shows are being broadcast “commercial-free” and obtaining more and more advertising revenues via product placements. Recent examples of television series that have been broadcast without ad interruptions include Gideon’s Crossing, 24, and Alias. Furthermore, with the advent of digital video recorders, viewers are switching from watching live programming to watching recorded programming and fast forwarding or skipping through commercials. By placing products into the show’s content, viewers have no choice but to be exposed to advertisers’ products. Reality TV has changed the rules of the game by creating brand entertainment. The Apprentice reality TV show has positioned the product as an integral part of the show. In many of the show’s challenges, the company’s own executives introduce the task which involves their own product. Staples, Pontiac, QVC, Sony, Best Buy and Pepsi, to name a few, are companies that have placed their products in tasks on The Apprentice.

Reality TV hit show Survivor has made product placements extremely obvious with reward challenges centered on food products as the reward such as Doritos or Mountain Dew.

Product placement is also evident in books, music videos and video games. Children’s books feature product brands right in the titles. Skittles Riddles Math, The M&M’s Brand Counting Book, and The Hershey’s Kisses Addition Book are just a few examples.

Product placement in video games isn’t anything new. In the 1980’s, Sega placed banners advertising Marlboro in its auto racing games. More recently, Sega has placed ads for Dole Food Company in its Super Monkey Ball video game.

Coke on Space Shuttle.jpg Product placement is accomplished under various arrangements including 1) it merely happens within programming without any intentionality (see example in the picture to left of a Coke displayed from the space shuttle), 2) the placement is arranged and a certain amount of the product is supplied as compensation, or 3) the placement is arranged in return for monetary compensation.

--MBA Candidate Mitch Walker


April 24, 2008

Are you in the Loop?

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My husband works in interactive marketing, so I tend to learn about new technologies and how to best capitalize on them as he does. He’s been utilizing search-engine marketing for years now, knows all about the latest Mac offering before it goes public and started blogging long before I did.

We recently discussed the concept of a “viral expansion loop” after reading Fast Company’s Cover Story “Ning’s Infinite Ambition.” According to their website, “Ning is the only online service where you can create, customize, and share your own Social Network for free in seconds.” As users contribute to and create more networks that engage more users that contribute to and create more networks that engage more users...you see the workings of a “viral expansion loop.” Facebook, MySpace, YouTube, etc. have all benefited as a result of this concept.

My takeaways — regardless of product/service offering or which dimension(s) you do business, we should all recognize the value in consumer networks and power of word-of-mouth messaging. Inspiring customer evangelism by delivering on (better yet, surpassing) expectations EVERY TIME reaps exponential rewards. Perhaps by becoming “friends” with your target, you can gain all of their “friends” in the process.

Also, it pays to pay attention. Ning’s developers recognized a good thing and took advantage of the opportunity to take social networking to the next level. Keep trend-watching, and feel free to comment and share emerging trends/technologies that have caught your attention.


April 01, 2008

Back to the Future or on to Mars? Google Fools.

customtime_screenshot.gifWere you one of the many intrigued by Google’s latest innovations today? “Gmail Custom Time” allows users to send messages one hour, six hours, last night, last week, etc. But use them wisely; you only have ten per year.

What about becoming a “Virgle Pioneer?” Since “Earth has issues,” Virgin founder Richard Branson and Google co-founders Larry Page and Sergey Brin “will be leading hundreds of users on one of the greatest adventures in human history: Project Virgle, the first permanent human colony on Mars.”

Imagine the possibilities. Then check your calendar.

Google has been creating buzz on April Fool’s Day for a few years now. Check out the hoaxes they’ve pulled over the years. The brand has certainly proved clever enough to keep us all talking.


March 21, 2008

emPowered by HGTV

poweredby HGTV.jpgI have been an HGTV fan for the past few years now…House Hunters, Divine Design, Design to Sell, and of course, Carter Can. Having recently purchased my first place, my affection for the channel has only magnified as I continuously watch for design ideas I can incorporate into my home and compare others’ buys to my own. The brand has certainly capitalized on (and undoubtedly propelled) the DIY trend and allowed consumers to vicariously shop for houses, even when the market is down.

So I’m happy to see the brand I love apply its core competencies to the real estate market, powering the HGTV FrontDoor search. I saw FrontDoor.com advertised for the first time a few days ago, and I knew the “just a matter of time” cross-over had been devised and was in place to continue leveraging the brand.

The site is easy to navigate and clearly communicates important consideration points in the search (including an estimated monthly mortgage). There’s even a “Foreclosure Guide” to help those taking advantage of today’s “buyer’s market.” Compared to traditional sites, such as Realtor.com, HGTV’s site is much more eye-catching and engaging. Of course, they do know a thing or two about design.

While I won’t be in the market for a house again any time soon, I will certainly plan to go through the FrontDoor in the future.


March 20, 2008

Co-Branding: Cinnabon

[Authored by MACC candidate Meredith Little] When it comes to a food weakness, cinnamon rolls are it for me. And it doesn’t get much better than a Cinnabon World Famous cinnamon roll either. However, these mouth watering, calorie-laden, bites of goodness are generally found only in shopping malls and airport food courts. Yet with some co-branding techniques that Cinnabon is now employing, we may start seeing glimpses of our favorite cinnamon roll in other products on supermarket shelves.

Cinnabon Carvel Co-Brand.jpgWhat could be more loved than a hot gooey cinnamon roll? Some would say ice cream. Both are sweet and delicious; one is hot, the other is cold. This is the perfect match for a co-branded operation. Since 2002, Carvel has worked closely with Cinnabon to develop several successful co-branded locations. As a result of the initial success, Cinnabon is planning to accelerate their co-brand plans by providing current and future franchisees the option to offer two of the treat industry’s most sought after products under one roof. Separately, both these brands have brand equity- adequate brand awareness and a sufficiently positive brand image. The two brands logically fit together, and research studies show that consumers are more likely to perceive co-brands favorably if the two brands are complementary rather than similar. This is a recipe for success!

Cinnabon Mrs. Smith's Co-Brand.jpgCinnabon has also engaged in a special case of co-branding called ingredient branding. By creating brand equity for Cinnabon through co-branding with other food products, Cinnabon increases their brand awareness and encourages consumer preference for goods containing their product. For example, Cinnabon has teamed up with Betty Crocker for a Cinnabon Cinnamon Streusel Muffin Mix (These are really good, by the way!). Also, Orville Redenbacher’s popcorn and Cinnabon come together in cinnamon popcorn with a pour-over Cinnabon frosting topping. Sounds good huh? Just be prepared…your hands will be sticky after consuming this product. If this isn’t good enough, you can also find Mrs. Smith’s pies and coffee cakes made with Cinnabon cinnamon and frosting. This is sure to be a yummy combination, since Mrs. Smith’s Cinnabon Apple Crumb Pie was a First Place winner at the American Pie Council's 2005 National Pie Championship.

With each of these products, the distinctive Cinnabon logo is clearly visible on the outside packaging, signaling to consumers that the host product contains the Cinnabon ingredient. By successfully marketing their ingredient brand, Cinnabon can promote awareness for their product, develop loyal customers, and generate greater sales.

The good news is that we don’t have to wait till we’re at the airport or the mall in order to enjoy Cinnabon goodness. By co-branding and ingredient branding, Cinnabon has brought their sweet, famous, taste to other foods that we can enjoy even more now.

Meredith Little, MACC Candidate



March 19, 2008

Hard Marketing Road Ahead

[Authored by MBA Candidate Jamie Shanks] Mortgage lenders have a hard road ahead of them. They are faced with the task of repositioning their product and company image in both directions of the supply chain. Customers of lenders no longer have faith that lenders such as Countrywide, Bank of America and JP Morgan have their best interest at heart due to the loose underwriting standards which dominated the industry for years. Suppliers (in this case the suppliers of capital, i.e. investors) no longer trust that lenders are accurately reporting the underlying asset which is being packaged and sold on the secondary market.

Struggling lenders, such as the soon to be acquired Calabras, CA giant Countrywide Financial, have continued to run TV and newspaper spots pushing some of their more exotic products such as home equity loans and home equity lines of credit. Yet none of the troubled companies have begun campaigns which attempt to reposition their fallen product in either the mind of the consumer or those on Wall Street.

It seems that the sub-prime mess may have opened up opportunities in many markets for those brave enough to take it. However, the first step will be for a large lender to acknowledge their mistakes and wrongdoings (outside of hundred million dollar writedowns) and begin to shift the consumer perception of their product and industry through a different kind of advertisement. It will be interesting to see the first company that tries to gain a competitive advantage in repositioning its products and services by distancing itself from the likes of Countrywide and Bank of America.

Wells Fargo.jpgWells Fargo is one such institution that has viewed the subprime shake up as an opportunity. There have been talks of the bank acquiring a regional bank and taking advantage of the deep discount which such an acquisition would offer. However, Wells Fargo can only take advantage of such an opportunity due to their band equity and positioning in the market. Wells Fargo is the country’s oldest bank and has a reputation of playing it safe during times of volatility when other institutions are putting it on the line. This brand image which the company strives to promote and protect has resulted in the company being the only US based financial institution to maintain its AAA bond rating. As such, the company can obtain financing at a much lower rate than many of its competitors; this allows the company to issue debt to fund such an acquisition whereas many competitors cannot. Clearly, brand equity and brand identity are crucial pieces to Wells Fargo’s past and future.

Jamie Shanks, MBA Candidate



March 04, 2008

Low Prices vs. Right Prices

wal-mart germany.jpg [Authored by Zac Cooke, MBA Candidate] In a little over 40 years Wal-Mart has grown to become one of the largest corporations in the world, with annual revenues topping $350 billion. They have achieved this position as retail market leader by delivering products at a low price to all consumers. They are able to deliver these lower prices to consumers while maintaining a position as the 67th most profitable company in the U.S. in 2006, and they've done this by selling up to 40% of their offering as private label goods. These privately branded items, many of which are made in foreign countries, offer Wal-Mart an opportunity for higher profit margins.

Over time this strategy has led to huge growth, but now, as Wal-Mart continues to expand globally, their domestic pricing strategy is not leading to uniform success in all of their foreign markets. Recently, Wal-Mart completely pulled out of Germany and South Korea. Their strategy of offering low priced items led consumers in both countries to perceive the products offered by Wal-Mart as being of low quality. This has proved disastrous in countries like Germany where quality is valued heavily in the buying decision. Wal-Mart is also seeing problems in Japan with their Seiyu retail outlets. Last year, Seiyu posted losses of $195 billion. This is even after attempting to drive higher Japanese sales through the use of higher end goods.

Continue reading "Low Prices vs. Right Prices" »


February 27, 2008

Harley-Davidson: Master H.O.G.s of Brand Loyalty

Harley Davidson Bike.jpg [Authored by Evans Smith, MBA Candidate] Brand loyalty consists of a consumer's commitment to repurchase a particular brand of product. Over the years, Harley-Davidson has evolved from a motorcycle shop to a lifestyle. Touting symbols on the backs of jackets and other accessories of the American Eagle and the American Flag, Harley Davidson wants to show that they represent freedom.


Harley Owners Group (HOG)

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Each customer that purchases a Harley-Davidson motorcycle receives a free 1-year membership in the Harley Owners Group (HOG). This group is the epitome of brand loyalty. The H.O.G. organization consists of over 295,000 worldwide members with 900 local chapters and is the largest company-sponsored motorcycle enthusiast group in the world. With a mission statement of "To Ride and Have Fun,” who wouldn’t want to join the group? All of us have been driving down the interstate minding our own business only to get passed by a no less than 20-member motorcycle crew. Most of the group likely consists of weekend warriors that want to get out and release their inner rebel spirit. HOG does an excellent job of capitalizing on this. HOG sponsors State, National, and even International rallies for that span across all 50 states and 6 continents. Live bands, parades, bike shows, and games are just a few of the activities that take place during these events at every planned stopping point.

Continue reading "Harley-Davidson: Master H.O.G.s of Brand Loyalty" »


February 26, 2008

Burger King's Deprivation Research: We Don't Sell Whoppers!

Whopper with Cheese.jpg [Authored by Jeffrey Williams, MACC Candidate] On February 8, 2008, The WSJ came out with an article about Burger King’s tactic of getting customers to want the Whopper more than ever—take it off the menu. This was a marketing prank, a hoax on customers, to see how they would react. In the words of article author Suzanne Vranica, “The videotaped hoax was a twist on a market research technique called ‘deprivation research’ in which marketers measure how loyal consumers are to a brand or product by taking it away from them.” (See: http://online.wsj.com/public/article/SB120244090812952965-n9_CUGYWfucluaN0vL4eS28jL8w_20090207.html?mod=rss_free).

It sounds to me like the consumer is being cruelly treated in order to garner appreciation for a fast food staple of America. Maybe this makes sense, but to the people who are in line, I’m sure that it seems like a pointless waste of time. If one is a good sport, that’s fine. But most of us aren’t, at least as a first reaction instinct. crying_child.jpg

Other companies have tried this tactic of deprivation and deception. For example, Verizon challenged customers to avoid using their cells for a weekend; Dunkin’ Donuts served Starbucks’s coffee for a week. Following the pattern of giving away competitors’ products, Burger King gave away McDonald’s burgers and Wendy’s burgers, all while videotaping customers who felt bewildered and betrayed. Here's a link to the “Whopper Freakout” video, from which BK has made commercials: http://www.whopperfreakout.com/index.html

Continue reading "Burger King's Deprivation Research: We Don't Sell Whoppers!" »


February 24, 2008

Southwest Airlines Resorts to Productivity Enhancers

Southwest_Airlines_logo-1.jpg[Today's post authored by Massey MBA Candidate James Preston] Southwest Airlines marketers have always developed clever advertising campaigns. Who can forget the “Click Ding” advertisements that depict an average office setting with businessmen and women normally going about their business until the “ding” is heard throughout the office. Suddenly these same staid office workers are franticly sprinting to their desks to “click ding” to see the “exclusive” and “deeply discounted” airfares available only through the “clink ding” program. The airline used the campaign to tout its “point-of-difference” that it is the low price provider.

The airline may have outdone itself with its new “Be More Productive” advertising campaign. In this series of advertisements, Southwest attempts to highlight its consistent on-time record by introducing us to Nick Pudder.

Nick Southwest Airlines.jpgNick is an unassuming looking fellow whose meteoric rise to Senior Vice President by the age of thirty-two has been met with a mixture of awe and disbelief from his colleagues. In the campaign, jealous co-workers are found whispering about his sudden increase in productivity and the fact that the company has given Nick his own parking place. He is referred to as a “machine” and thought to be “extremely productive”. Another co-worker standing in front of the “employee of the month” photographs (all of whom are Nick) calls Nick “amazing” because he closed four sales presentations in four different cities all in the same day.

Ultimately, several co-workers and media speculate that Nick is taking some sort of “productivity enhancers”. Nick finally denies using “productivity enhancers” but admits that he has been flying Southwest Airlines “a lot”. This is a clever tie-in to the current steroid scandal that has rocked Major League Baseball in which the recently released Mitchell report has named many high profile players as steroid users.

Continue reading "Southwest Airlines Resorts to Productivity Enhancers" »


February 01, 2008

Super Bowl = Super Ad Purchase? (Part II)

Super Bowl 2008 Logo2.jpg Last week I shared some facts and figures related to whether or not purchasing an advertising slot on the Super Bowl telecast would be considered "a good deal." We considered Audi as our example company for this illustration. Based on the estimated price tag of up to $3 million for a 30-second spot and an estimated audience of 93 million (our reference point from last year's number), we calculated that Audi would be reaching its audience at a cost of slightly more than 3 cents each. That sounded like a pretty attractive price!

So, now we need to build in some realism to our purchase evaluation. First, given that not all of us viewers have $38,400 (mid-point MSRP for an entry-level A4 model) sitting idly by in our bank accounts for such a purchase, we need to begin by figuring out what proportion of the 93 million viewers are actually within our potential market. For the sake of simplicity, let's "assume" that 25% of our 93,000,000 viewers (a pretty ambitious assumption) have the means to purchase an A4. That takes us down to only 23,250,000 individuals we really are interested in reaching who are likely to be part of our Super audience.

Continue reading "Super Bowl = Super Ad Purchase? (Part II)" »


January 25, 2008

Super Bowl = Super Ad Purchase?

Super Bowl 2008 Logo.jpg It's that time of year again--Super Sunday, where an audience of millions will feast on football, hot wings, and a bevy of well-placed one-liners nicely packaged into 30-second spots. And the price advertisers will pay for the privilege of running a one-half minute message to the Fox TV audience? Up to $3 million. That's up from the reported price tag of up to $2.6 million for last year's Super Bowl and up to $2.5 million in 2006. And those figures obviously don't include any of the creative, talent, or other production costs that go into what can be some very elaborate backdrops for displaying one's message.

As one example, be sure to catch the Audi ad that pitches for its R8 sports car. The product is shown in front of a real Beverly Hills home that is currently on the market for $200 million (I'm guessing that was offered for free in exchange for helping sell the house?). However, Audi's spot also features movie icon Alex Rocco from the academy-award winning The Godfather (1972). Audi reportedly paid Paramount somewhere between $500,000 and $1.5 million just for the licensing rights to use Godfather material for the campaign.

Continue reading "Super Bowl = Super Ad Purchase?" »


January 18, 2008

Give’em Something to Talk About

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Some movie marketers have gotten a lot of us talking. Instead of feeding folks most of the plot line and hoping we’ll come to the theater to fill in the blanks, these buzz agents have left so much more to the imagination. A huge fan of tease tactics and consumer engagement, I can’t help but be intrigued by the promotional efforts launched for this week’s release of Cloverfield and the upcoming Batman Blockbuster, The Dark Knight.

Producers of Cloverfield hope you are wondering what “thing has found us?” The bait? Well, it all started with the release of a movie trailer without a title. We got a glimpse of a party interrupted by panic and speculation that left us asking, “What was that all about?” The videography, which appears similar to that used in The Blair Witch Project, adds to the intrigue. According to director Matt Reeves, "We wanted this to be as if someone found a Handicam, took out the tape and put it in the player to watch it. What you're watching is a home movie that then turns into something else." Time will soon tell if the hype for this release turns into a successful thriller.

All joking aside, I have been most impressed with the viral marketing campaign for The Dark Knight. The “I Believe in Harvey Dent” political campaign launched on the web, followed by the vandalized version, “I believe in Harvey Dent too,” certainly got the buzz swarming. We were even invited to partake in some detective work ourselves (i.e., finding the “Haha”s and secret message on the “I believe in Harvey Dent too” webpage and participating in a scavenger hunt launched on WhySoSerious.com).

Marketers should consider the value in advertising that, in itself, entertains. Again, it all comes back to consumer engagement. The ongoing challenge: giving our audience something to talk about.


December 17, 2007

Social Networking--The Next Big Wave in Advertising

Social Networking Image.jpg While many of us "over 30 somethings" are still learning about this whole online phenomenon called "social networking," Red Herring now reports that by 2011, one half of all online adults and 84% of all online teens will use social networking on a monthly basis. It's here and it's not going away anytime soon. In fact, Facebook, a website many adults still view as a play toy for students, was recently tagged with an enterprise value of an astounding $15 billion.

Worldwide, online social networking advertising expenditures are expected to reach $1.6 billion and push past the $4 billion threshold by 2011. The two biggest current players in this arena (70% of the combined market) are Facebook and Myspace, whose joint successes have been fueled by web-savvy teens and college students. But with such high stakes for future advertising revenues, other players are emerging. Many of us now receive regular invitations from colleagues far and wide to join their LinkedIn network--a service clearly differentiated to appeal more to working professionals.


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November 20, 2007

Where can I buy that shirt? I’m sorry. YOU can’t.

claseo.jpgReceiving an invitation can’t help but make one feel special, and everyone wants to feel special, right?

According to this Springwise article, that appears to be the thinking behind the Claseo Fashion Line. Taking exclusivity one step further, Claseo clothing can be purchased by invitation only. Membership allows you to participate in an online community of other “chosen” shoppers and gives you the ability to help design new collections.

Disappointed you haven’t been invited? There is hope. You can apply for an invitation if you see something you have to have. If you try this, please share what response you receive!

Brand managers must continue to explore new ways of engaging consumers, promoting value and making buyers feel special. For examples on how to take this idea to the masses, check out Trendwatching.com’s report on “Massclusivity.”


November 13, 2007

Which Brands Are Your Friends?

facebook.gif

Even I caved. For months I had declared that social networking sites were not for me, but then curiosity got the best of me, and “everybody else was doing it,” so I had to try it for myself. Now, I am a part of one of the many online communities responsible for reuniting long lost friends and keeping folks updated with every day happenings.

So, will you be friends with me now?

That question may soon come from entities who are not what we might naturally consider “friend-material.” According to a Techland article from CNNMoney.com, Facebook is letting its users control what advertising they see and become authentic customer evangelists. The debate revolves around whether users will overtly promote brands or not.

The challenge remains for brands to present themselves in a manner that makes consumers want to be associated with them. Hint — If they will wear your logo on a t-shirt, chances are, they’ll friend you.


November 01, 2007

iPod touch Commercial Created by i

As a former Ad Agency “Brand Journalist,” I still enjoy watching brands capitalize on consumer insight. Apple gets it right AGAIN by tapping into what trendwatching.com has dubbed “Generation C.”

If you have seen Apple’s recent iPod touch commercial, you have seen the handiwork of 18 year-old Nick Haley. Haley, the ideal customer evangelist, took his love for Apple public when we uploaded a video he created about the new iPod touch. His work became the inspiration for the new commercial.

Creative consumers inspire and challenge existing media moguls as production technology continues to become more accessible and we, as consumers, start believing our vision matters. Successful companies must continue to listen to what the consumer has to say. Fortunately, consumer voice is louder now than ever before.