Wake Up Call†

Brandweek, November 11, 2008 — Given its recent financial struggles—at the core of which are weak sales that have forced the closing of about 600 of its U.S. stores through the first half of fiscal year 2009—the question many people are asking right now is: Can Starbucks get its mojo back?

A Plan for Spanning Silos†

No Need to Blow Them Up, but CMOs Must Foster Communication and Cooperation

Advertising Age, November 10, 2008 — Autonomous silos defined by products, countries or functions, often operating in isolation if not in competition with each other, are no longer a viable option. They can be monumentally inefficient, limit the creation of silo-spanning offerings, lead to wasteful and non-optimal resource allocation, be barriers to marketing that has scale, and create brands that are inconsistent and confused both internally and externally. In tough economic times, such inefficiencies and barriers can mean the difference between business success and disappointing marketing performance, or even failure.

However, that does not mean the answer is to blow them up, or even that the goal of the organization should be to centralize or standardize. Rather, silo-driven problems... continue reading

McDonald's New Packaging Focuses On Contents

Marketing Daily, October 29, 2008 — McDonald's is putting a focus on its food and a more whimsical personality through new packaging that global chief marketing officer Mary Dillon calls "the biggest new packaging initiative in the history of our brand." The new packaging, which features photographs of the food and kitchen utensils as well as big print typography, will begin rolling out in November in the United States, United Kingdom and Ireland.

McDonald's Coffee Strategy Is Tough Sell†

Introduction of Premium Drinks Comes at a Weak Economic Time, but Executives Say Rollout Is on Track

Wall Street Journal, October 27, 2008 — After unveiling plans earlier this year to sell espresso drinks at all of its U.S. locations, McDonald's Corp. now faces a fresh set of challenges.

The weak economy has prompted some consumers to brew coffee at home instead of buying it at coffee shops. A sharp pullback by Starbucks Corp., which is shutting hundreds of stores as its sales slow, has analysts questioning whether now is the right time for McDonald's to roll out its premium line of lattes, cappuccinos, smoothies and sweet, ice-blended frappes.

An Old Buzzword Is Back: Bargains

New York Times, October 24, 2008 — As the year began, consumers started to see a trickle of advertisements that played up brand value rather than attributes like status or prestige. As the economy worsened in the spring and summer, the trickle became a torrent.

Now, as the crisis in finance continues, a veritable tidal wave of ads devoted to saving money is washing over the country.

Marketing textbooks suggest, however, that a focus in the short term on pinching pennies could in the long run have a deleterious effect on the images of brands or products by cheapening them.

McDonald's Reports 4.5% Sales Bump for August†

Olympic Sponsorship Appears to Pay Off, at Least in Short Term

Advertising Age, September 9, 2008 — McDonald's Corp. today reported same-store sales for August were up 4.5% in the U.S. — a result one analyst estimates will be nearly double the industry average. But industry-watchers are doubtful the company can keep up that pace, especially now that the Olympics are over.

UBS analyst David Palmer predicts the Golden Arches' August performance, which also saw global sales jump 8.5% compared to August of last year, will come in "nearly double" that of the fast-food industry as a whole.

McDonald's Steps Aside In Reaching Out To Teens

MediaPost Publications, September 9, 2008 — Marketing to millennials in the wild and woolly world of social media means getting out of the way. That was a major theme of Kim Lloyd's address at the PMA Digital Marketing Summit in New York on Monday.

Marketers Love Conversation, Unless the Consumer Starts It†

Listening Gets You More Than Complaints -- You Get Positive Brand Association and Word of Mouth

Advertising Age, August 11, 2008 — If the consumer voice is so important these days, why are brand feedback, or "contact us," forms so get-out-of-my-face unfriendly?

I dare you to find a feedback form that winks even a quasi-friendly smile. And if you find one that allows consumers to truly communicate in their native voices — complete with links, photos, audio clips or videos — I'll eat my just-published book.

Brands Get Social for Olympics†

Brandweek, July 22, 2008 — With the Olympic Games just a month off, some brands are looking to extend their sponsorships with social media programs.

Lenovo has created 100 athletes' blogs in an attempt to align itself with some less mainstream sports, such as field hockey and modern pentathlon. It gave the athletes laptops and video cameras to chronicle their preparation for the games.

Sampling: The New Mass Medium†

Tactic Has Won Over Likes of Starbucks, McD's and Morphs Into Big 'Event'

Advertising Age, May 12, 2008 — One of marketing's oldest and least glamorous practices — doling out free product — has come a long way from the gray-haired ladies in the supermarket aisle. No longer the province of marketers who can't afford to buy mass media, deep-pocketed giants from McDonald's to Starbucks, Coca-Cola and Dunkin' Donuts are adopting sampling on a grand scale, turning it into a media event — and, in some cases, the media buy.