Archive for December 2008
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DEC
2008
Brandweek,
December 22, 2008 —
Zappos CEO Tony Hsieh has not only built a $1 billion a year in sales company but also a leading example of how brands are built that rely less on advertising and marketing.
The company's approach to building its culture and promoting its brand through customer service has gained adherents from organizations large and small.
DEC
2008
Poor customer service and fast-changing technology are still problems. Can the delivery giant redeem its troubled copy-chain unit by rebranding?
BusinessWeek,
December 18, 2008 —
Kinko's is not what it once was, and many customers don't like that a bit.
"They are chronically understaffed and overpriced," Pamela Haber, a Los Angeles event planner, says of the printing giant. "I've done enlargements—I had to get behind the counter to show them what to do."
Gerald Bose, a Sewell (N.J.) management consultant, complains: "You go in there now, the average person, you're not sure what the place is. The first thing you see is the photo kiosk. You can mail stuff. There's the color copier. Way over in the far corner, computers [for word processing and other tasks]. They are getting away from their knitting."
DEC
2008
Poor customer service and fast-changing technology are still problems. Can the delivery giant redeem its troubled copy-chain unit by rebranding
BusinessWeek,
December 18, 2008 —
Kinko's is not what it once was, and many customers don't like that a bit.
"They are chronically understaffed and overpriced," Pamela Haber, a Los Angeles event planner, says of the printing giant. "I've done enlargements—I had to get behind the counter to show them what to do."
Gerald Bose, a Sewell (N.J.) management consultant, complains: "You go in there now, the average person, you're not sure what the place is. The first thing you see is the photo kiosk. You can mail stuff. There's the color copier. Way over in the far corner, computers [for word processing and other tasks]. They are getting away from their knitting."
DEC
2008
Springwise Newsletter,
December 18, 2008 —
Back in Springwise's early days, one of the first stories we covered was the car-sharing service from Zipcar. Fast forward almost six years, and the same topic has emerges again, this time from rental giant Hertz.
Launched late last month, Connect by Hertz now offers car sharing in London, Paris and New York City.
DEC
2008
New York Times,
December 15, 2008 —
ESPN.COM is counting on less clutter and more advertising options to bolster revenue at a time when its sister cable channels are battling rare weakness.
DEC
2008
Wall Street Journal,
December 15, 2008 —
Sure, the economy's bad. But it's a good time to innovate, according to Clayton M. Christensen, a Harvard Business School professor who focuses on innovation.
He is the author or co-author of a number of books on the subject, from "The Innovator's Dilemma" to a book due out next month on health care, "The Innovator's Prescription."
Dr. Christensen spoke with MIT Sloan Management Review senior editor Martha E. Mangelsdorf for Business Insight.
DEC
2008
By Andrew Pierce
Prophet,
December 15, 2008 —
Repairing the damage done to consumer confidence is not going to be easy, and many of the sector’s brands that were once pillars of the community (Lehman Brothers, Bear Sterns, and others) are beyond the task. But the work starts now, and falls to marketing leaders to draw on all the best thinking and resources at their disposal to get the job done. (Marketing News)
DEC
2008
The retail environment is a hothouse for national brands
Hub,
December 15, 2008 —
We now stand at the crossroads of perhaps one of the greatest economic declines in recent American history. It is fitting to reassess one of the more volatile questions faced today in the retail landscape: do store brands pose a significant threat to traditional brands in new ways, and if so, are brands destined to accelerate their decline, disappear in their current form, or evolve with new strategies?
Yes — this is a controversial discussion, but it is even more important now because of changes in the underlying market foundation and because of strategic implications for manufacturers in their approach to being seen by shoppers at retail.
DEC
2008
Advertising Age,
December 15, 2008 —
Detroit's meltdown and the continuing recession have been dominating the news recently, but there were other major news stories this year, including the election of Barack Obama as president and the sale of all-American Anheuser-Busch to foreign-owned InBev.
DEC
2008
Consumers are flocking to blogs, social-networking sites and virtual worlds. And they are leaving a lot of marketers behind.
Wall Street Journal,
December 15, 2008 —
For marketers, Web 2.0 offers a remarkable new opportunity to engage consumers.
If only they knew how to do it.
That's where this article aims to help. We interviewed more than 30 executives and managers in both large and small organizations that are at the forefront of experimenting with Web 2.0 tools. From those conversations and further research, we identified a set of emerging principles for marketing.
DEC
2008
Consumers are flocking to blogs, social-networking sites and virtual worlds. And they are leaving a lot of marketers behind.
Wall Street Journal,
December 15, 2008 —
For marketers, Web 2.0 offers a remarkable new opportunity to engage consumers.
If only they knew how to do it.
That's where this article aims to help. We interviewed more than 30 executives and managers in both large and small organizations that are at the forefront of experimenting with Web 2.0 tools. From those conversations and further research, we identified a set of emerging principles for marketing.
DEC
2008
New York Times,
December 13, 2008 —
FOR some time, Procter & Gamble, the world’s largest advertiser, has been dipping its big toes into the vast pool of Facebook, now the world’s largest social network. I recently knocked on the doors of both companies to hear how the experiment was going. Neither was inclined to say much.
Independent experts on Web advertising have been watching, however, and what they see is a myriad of difficulties in making brand advertising work on social networking sites. Members of social networks want to spend time with friends, not brands.
DEC
2008
Brandweek,
December 13, 2008 —
What do Burger King underwear, Kellogg's hip-hop street wear and Allstate Green insurance have in common? They all were voted among the worst brand extensions of 2008.
Earlier this month, TippingSprung polled 689 Brandweek readers and other marketing professionals, online, about this year's flurry of line extensions. Among the other duds: Coca-Cola's RPet clothing at Wal-Mart, Playboy energy drink and the Disney Sleeping Beauty executive fountain pens priced at up to $1,200.
DEC
2008
New York Times,
December 11, 2008 —
ALONG with the usual signs from advertisers, the new Indianapolis Colts stadium features a hallway filled with dishwashers, refrigerators and washing machines, brought to football fans by the retailer Hhgregg, which is based in Indianapolis. It is the latest frontier in stadium sponsorship, showing how far sports teams are willing to go to attract marketing dollars.
DEC
2008
Boston Power's Devices for Laptop Maker H-P Won't Be Replaced as Often
Wall Street Journal,
December 10, 2008 —
A small Boston-area company backed by venture capitalists won a contract from Hewlett-Packard Co. to make batteries that will be sold as so-called green power supplies for laptop computers.
The contract awarded to Boston Power Co. marks a rare inroad for a U.S. company in the rechargeable-battery business for consumer electronics. Japan's Sony Corp., Sanyo Electric Co. and Panasonic Corp. dominate the world-wide market.
DEC
2008
Marketing Daily,
December 10, 2008 —
Diageo's Crown Royal Canadian Blended Whisky, the spirit category's first-ever TV advertiser back in 1996, said it will return to the airwaves this holiday season for its first national brand campaign in over five years. Royal Crown had run a responsible drinking-themed campaign on national cable in the summer of 2007 featuring Jamie McMurray, a driver for its sponsored NASCAR team.
DEC
2008
Entertainment Weekly,
December 10, 2008 —
Everyone knew the face of late-night TV would change when Jay Leno left The Tonight Show, but prime time as well? On Dec. 9, NBC announced that the reigning king of late night will stay put at the network by hosting an untitled new gabfest at 10 p.m. every weeknight, starting next fall. Leno, who is set to step down from The Tonight Show on May 29, will pack the first-ever Monday–Friday prime-time talk show with signature bits like those corny “Jaywalking” segments and a stable of A-list guests — which could set up a potential booking war with his successor, Conan O’Brien. (“I am absolutely thrilled that Jay is staying at NBC,” O’Brien said on his show Tuesday, although there are certainly drawbacks to the arrangement.)
DEC
2008
New York Times,
December 10, 2008 —
Making videos for YouTube — for three years a pastime for millions of Web surfers — is now a way to make a living.
One year after YouTube, the online video powerhouse, invited members to become “partners” and added advertising to their videos, the most successful users are earning six-figure incomes from the Web site. For some, like Michael Buckley, the self-taught host of a celebrity chatter show, filming funny videos is now a full-time job
DEC
2008
Analysts say the e-tailer's new iPhone shopping app, among other high-tech tools, will help it outperform rivals amid weak consumer spending
BusinessWeek,
December 9, 2008 —
Gary Bacon II had bargain-hunting on the brain when he visited his local Barnes & Noble (BKS) in Jacksonville, Fla., on Dec. 7. But he didn't make any purchases. Instead, the Web designer whipped out his smartphone, snapped a few photos, and headed for the exit.
Bacon was using a new feature, released by Amazon.com (AMZN) on Dec. 3, that lets users take mobile photos of items they want to buy, store them in an online shopping cart, and purchase them whenever they want—typically at a discount—via the online retailer.
DEC
2008
Bratz dolls are facing removal from all shops after a US federal court banned parent company MGA Entertainment from making the Barbie rival.
BBC News,
December 9, 2008 —
The court issued the order after Barbie-maker Mattel won a landmark copyright-infringement case against MGA in August.
Bratz designer Carter Bryant had been found guilty of developing the Bratz brand while still working for Mattel.
DEC
2008
Brandweek,
December 9, 2008 —
For the last several years, marketing experts have implored corporations to "join the conversation," namely through blogging. One problem: several years into the blogging phenomenon, not many consumers trust their blogs.
DEC
2008
Chicago Tribune,
December 9, 2008 —
MySpace.com is teaming up with Internet search leader Google Inc. in a campaign to extend MySpace's reach and counter the expansion of their common rival Facebook Inc.
The alliance, unveiled late Monday in Paris, builds upon MySpace's seven-month-old effort to make it easier for the 127 million worldwide users of its online hangout to connect with their social circles while they're at other Internet destinations.
DEC
2008
Promising a slew of new green vehicles, the troubled Detroit automaker is turning to top design firms to make those cars innovative and appealing
BusinessWeek,
December 8, 2008 —
Ford Motor (F) has been making a lot of promises lately. On Dec. 4, as Alan Mulally, chief executive of the beleaguered Detroit automaker, sought about $9 billion in government loans, he pledged to limit executive compensation, renegotiate employee contracts, and definitively steer Ford toward making greener cars.
DEC
2008
Nine Components That Powerfully Engaging Brands Share With Religion
Advertising Age,
December 8, 2008 —
Having spent years talking with brand fans — from obsessed Harley-Davidson riders to devoted Guinness drinkers to young Hello Kitty admirers (one of whom owns more than 12,000 pieces of Hello Kitty merchandise) — I've been struck by the power brands have over their followers. But can the apparent parallels between brands and religion possibly hold up? Have some brands actually managed to create their own religions by, coincidentally or deliberately, adopting triggers and tactics from the world of religion?
DEC
2008
Interpublic Unit Forms Bodega Division to Tutor Clients in Marketing to the Region's 'Emerging Consumers'
Wall Street Journal,
December 8, 2008 —
During presentations at McCann Worldgroup's office in Bogotá, Colombia, staffers have taken to letting a chicken loose to hunt and peck around clients' feet.
Racks of potato chips and other products on display in McCann's Mexico City conference room, which has been designed to look like a bodega.
In Mexico City, the big advertising agency hired a local merchant to install racks of potato chips and otherwise transform its conference room into a bodega, or corner grocery store. Clients lunch on tacos served on a plastic table mat.
The point of these exercises: to give big marketers some insight into the lifestyles of Latin America's low-income consumer.
DEC
2008
Interpublic Unit Forms Bodega Division to Tutor Clients in Marketing to the Region's 'Emerging Consumers'
Wall Street Journal,
December 8, 2008 —
During presentations at McCann Worldgroup's office in Bogotá, Colombia, staffers have taken to letting a chicken loose to hunt and peck around clients' feet.
In Mexico City, the big advertising agency hired a local merchant to install racks of potato chips and otherwise transform its conference room into a bodega, or corner grocery store. Clients lunch on tacos served on a plastic table mat.
The point of these exercises: to give big marketers some insight into the lifestyles of Latin America's low-income consumer.
DEC
2008
Marketing Daily,
December 8, 2008 —
Papa John's launched a one-day Web campaign with a display ad on Google last Friday that resulted in online weekend sales that were up between 15% and 20% over a typical weekend, the pizza giant says. Mobile orders also rose.
DEC
2008
Marketing Daily,
December 8, 2008 —
J.M. Smucker Co., which completed its acquisition of Folgers from Procter & Gamble in early November, is coming out of the gate aggressively by announcing pricing reductions on the brand.
DEC
2008
In good times or bad, a customer database is a license to do business.
Hub,
December 8, 2008 —
Research indicates that during the last two recessions (1990-91 and 2000-01), growth in every retail sector slowed. According to the McKinsey Quarterly, 93 percent of retailers surveyed experienced slowing revenue growth in one of the recessions and 59 percent found it true in both.
Unfortunately, it also takes retailers longer to benefit from the turnaround when it does happen. The average retail growth rate in the year of recovery in both 1991 and 2001 was just 0.3 percent.
Most of us start to hunker down and take a defensive approach to a recession. Obviously cutting costs where possible is common sense. But when it comes to marketing at retail, cutting back is a self-fulfilling prophecy to 0.3 growth.
During previous recessions, advertising,... continue reading
DEC
2008
Experts Say Mass Distribution Won't Tarnish Upscale Brand
Advertising Age,
December 8, 2008 —
Apple's iPhone is headed for Walmart. According to Bloomberg, the retail giant is set to sell a 4GB iPhone for $99. The current 8GB entry-level model is $199 plus a two-year AT&T-service subscription.
DEC
2008
McKinsey Quarterly,
December 5, 2008 —
Although even the highest levels of uncertainty don’t prevent businesses from analyzing predicaments rationally, says author Hugh Courtney, the financial crisis has shown us the limits of our tools—and minds.
DEC
2008
McKinsey Quarterly,
December 5, 2008 —
Stinting on customer service is a common and sometimes costly response to tough economic times. By managing the customer experience more rigorously, companies can maintain quality while still saving money
DEC
2008
MediaPost Publications,
December 4, 2008 —
Seeking to dispel the perception that online usage is rapidly overtaking traditional TV viewing, the two top researchers from Walt Disney Co.'s ESPN unit Wednesday unveiled the results of some new research indicating that multi-platform media usage is not a "zero sum" game, but is actually adding incremental impressions and new opportunities for people to consume media content - and for advertisers to reach them - in different places, and at different times. While that may not seem like a remarkable epiphany, the executives also showed that TV usage continues to grow, not decline, amid the expansion of online and mobile video platforms, and that there still is relatively little concurrent usage of those platforms. Most of it is incremental or additive and... continue reading
DEC
2008
MediaPost Publications,
December 4, 2008 —
In a recent report from Pew Hispanic Center, U.S. Hispanics represented over 50% of the U.S. population growth since 2000. In our current economic climate, one would think that that be the kind of growth that marketers would aggressively seek out. While Hispanic media investment overall has grown considerably, especially television, the online ad segment has under-indexed relative to general market online spending even though the U.S. Hispanic audience is more open to brand suggestions and advertising messages, as shown in a recent eMarketer report.
DEC
2008
New York Times,
December 4, 2008 —
THE faltering economy could mean renewed interest in coupons as shoppers refocus on the cost of the products they buy — that is, if they do actually buy anything these days. Coupons that offer cents off — or percents off — the price of things like groceries, clothing and restaurant meals are particularly popular when consumers need to stretch their dollars. So word that a recession began last December could bring an increase in the number of coupons offered by marketers, as well as redemption rates by consumers.
DEC
2008
New York Times,
December 4, 2008 —
General At least G.M. knows how difficult the challenge will be.
A quarter-century ago, G.M. started Project Saturn with the same goals. And it worked, for a time. Saturn owners, including many who traded in their Hondas and Toyotas to own the first models in 1990, became cheerleaders for the division’s customer-friendly approach, while the United Automobile Workers union gave up many of its traditional restrictions to help Saturn succeed.
Motors has promised Congress that it can recreate itself as a different kind of car company — smaller, with a more cooperative relationship with its union, and a lineup of fuel-efficient cars to compete with the best of the foreign brands
DEC
2008
McDonald's is rolling out new designs for its food packaging aimed at fortifying the brand and staying ahead of obesity concerns
BusinessWeek,
December 3, 2008 —
McDonald's (MCD) is busily remodeling its U.S. locations, accessorizing interiors with flat-panel televisions and plush chairs—even the exteriors are made of real brick these days (BusinessWeek, 5/15/06). Now the Oak Brook (Ill.) chain is turning to its packaging. In early November the king of cheap eats began rolling out new packaging across its 13,900 U.S. restaurants that aims to make the containers for its sandwiches, french fries, and soft drinks more relevant to today's consumers, and not look like a throwback to the 1990s.
DEC
2008
But Taste-Test Campaign Is Causing Some to Freak Out Over Use of 'Impoverished' People
Advertising Age,
December 3, 2008 —
Talk about a taste test: Burger King is literally trekking all over the globe to convince consumers its Whopper sandwich tops McDonald's Big Mac with its new "Whopper Virgins" campaign.
The fast feeder has created a set of new of 15-second teaser spots driving people to a website, Whoppervirgins.com, in its latest zany marketing ploy hatched by Burger King's agency of record, Crispin Porter & Bogusky, the MDC Partners creative shop credited with campaigns like "Whopper Freakout" and "Subservient Chicken" for Burger King.
DEC
2008
A Recession Will Expose Nonworking Parts of a Marketing Plan
Advertising Age,
December 2, 2008 —
The current economic crisis will undoubtedly leave a lasting imprint on how all business gets done from this point forward and undeniably be a catalyst for unprecedented change in the advertising industry. And we had better be ready for it.
In any economic crisis, reduction in ad spending is inevitable and necessary as companies adapt, Darwin style. Today's environment is no exception. We're keenly aware that in past recessionary periods advertising has taken more than its share of cuts. This time, while the cuts in spending have already begun, the impact will have even more dire and long-term consequences. As the cuts continue, brand managers will begin to realize that "my current advertising level and spend really wasn't helping to build my brand the... continue reading
DEC
2008
New York Times,
December 2, 2008 —
For the Big Three automakers to win over Washington lawmakers in their bid for federal aid, they will have to address a critical question in the business plans they give to Congress on Tuesday. Just how serious are they about shrinking their vast lineups of different brands and models to match the current harsh reality of the market?
DEC
2008
New York Times,
December 2, 2008 —
CRITICS claim that advertising is just a lot of hot air. For the next month, at certain bus stops, they will have a point. In the latest example of a trend that is becoming increasingly popular on Madison Avenue, heated air will descend from the roofs of 10 bus shelters in Chicago, courtesy of the Stove Top brand of stuffing sold by Kraft Foods.
DEC
2008
Quick Changes to Strategies Are Needed as Moms Shift Priorities for Themselves and Families
Advertising Age,
December 2, 2008 —
While President-elect Barack Obama is assembling his cabinet in Washington, moms across America are changing the ways they stock their own cabinets. As they function simultaneously as secretaries of transportation, interior, homeland security and, most important these days, commerce, women faced with new economic realities are rapidly shifting their priorities and shopping behaviors. Here are six changes in where they stand on consumption.
DEC
2008
Company Has Eight Brands, but No Brand Messaging
Advertising Age,
December 2, 2008 —
"How Detroit drove into a ditch" is the headline of an article in the Oct. 25 issue of The Wall Street Journal.
When the most respected business publication in the world writes a 2,000-word article on the problems of the U.S. automobile industry, you have to assume it knows what it's writing about. Especially since the author of the article is the Journal's former Detroit bureau chief and a man who is writing a book about America's car culture.
DEC
2008
By Aneysha Pearce,
December 2, 2008 —
Recently, McDonald’s staved off a boycott by a Christian family advocacy group for its support of the National Gay and Lesbian Chamber of Commerce. In Evanston, IL, the Cinemark theater wasn’t able to escape the outrage from the gay and lesbian community, whose local members picketed Nov. 22 and 23 over the chain’s CEO’s financial support of California’s Proposition 8 campaign.
These are the kinds of situations dreaded by businesses that keep a close eye on reputation management. How... continue reading
DEC
2008
cNet News,
December 2, 2008 —
Whenever I read a Sony or Microsoft press release or meet with company representatives, they're quick to point out that Nintendo's Wii console isn't a competitor. Why? They claim it's because the Wii does gaming differently and is more of a "casual" platform than a "true" gaming console.
DEC
2008
By David Aaker
Prophet,
December 1, 2008 —
In this blog posting, personal branding expert Dan Schawbel speaks to David Aaker about his new book "Spanning Silos." (Marketingweb, December 2008)
Tags: (none)
DEC
2008
Red Dot Square uses virtual reality to reinvent the center of the store
Hub,
December 1, 2008 —
Yes, it is critically important to understand how the mindset of the shopper is different from that of the consumer. But we must not forget that the shopper and the consumer is the same person. The greatest challenge of shopper marketing is, in fact, connecting the shopper experience to the consumer experience. The most important insight of all is how shoppers plan to use what they buy once they’re back home, once again living their lives as consumers.
DEC
2008
New York Times,
December 1, 2008 —
Facebook, the Internet’s largest social network, wants to let you take your friends with you as you travel the Web. But having been burned by privacy concerns in the last year, it plans to keep close tabs on those outings. Facebook Connect, as the company’s new feature is called, allows its members to log onto other Web sites using their Facebook identification and see their friends’ activities on those sites.
DEC
2008
Books, Boxed Software, DVDs -- All Headed to Irrelevance
Advertising Age,
December 1, 2008 —
I want to make a bet with you. I wager that by January 2014 almost all forms of tangible media will be either in sharp decline or completely extinct in the U.S. I am talking about not just print but all tangible forms of media — newspapers, magazines, books, DVDs, boxed software and video games.
DEC
2008
By Chiaki Nishino and Fred Geyer
Prophet,
December 1, 2008 —
The troubled economy is forcing corporate leaders to re-evaluate their spending plans across the board and marketing is not exempt. In fact, marketing is often first in line for cuts as corporate leaders attempt to identify immediate cost reductions that may take longer to achieve in other areas.
DEC
2008
Unilever Launches Axe Line of Products Following P&G's Debut of Gillette's; Campaigns Make Appeal to Male Vanity
Wall Street Journal,
December 1, 2008 —
Guys, you're having a bad hair day. Every day.
That's the message Unilever is sending with the launch of its first Axe line of hair products for men. The Axe line, best known for male body sprays that claim to help guys get the girl, now promises "girl-approved hair" with the use of shampoos, conditioner and styling products due to hit U.S. store shelves Monday
DEC
2008
Q&A: American Airlines' Roger Frizzell on Staying Steady in a Tough Economy
Advertising Age,
December 1, 2008 —
Roger Frizzell knows why you fly. He also knows you're frustrated by it. Not long after joining American Airlines as VP-corporate communications and advertising in late 2003 — a period of time he describes as the beginning of American's "turnaround plan" from its near bankruptcy earlier that year — he and his team came up with the "We know why you fly" campaign. In an interview with Advertising Age, Mr. Frizzell describes his outlook for the airline with a phrase every marketing executive seems to be using with great frequency: cautiously optimistic.
DEC
2008
Fast Food Retail
Prophet,
December 1, 2008 —
Pizza Hut’s rebranding of some of its outlets as ‘Pasta Hut’
has generated consumer discussion, but it is a stunt that is
unlikely to produce long-term growth for the brand
DEC
2008
More-Subtle Images Pack Bigger Punch, Says Neuromarketing Study
Advertising Age,
December 1, 2008 —
As we are exposed to millions of messages in our lifetimes, does the logo retain its magic? Or are we caught up in a format that once worked but is out of date?