Value Is the New Green†

Wall Street Journal, March 13, 2009 — Until recently, being green was the best way for companies to demonstrate a sense of social responsibility, and for consumers to feel good about their purchases. Healthy food, hybrid cars, energy efficiency — these were the attributes that burnished brands.

But now green is taking a back seat to a new core value — value. Green hasn't gone away, but companies are having to consider their "value" equation to try to serve the millions of consumers who either can't afford premium experiences, or just don't want them anymore.

Disney Angles for Cash, Loyalty†

New Web Portal Is Aimed at Bringing in Subscriber Fees, Holding On to Fans

Wall Street Journal, March 11, 2009 — Walt Disney Co. moved to bolster its online business by introducing a new Web portal it hopes will attract paying subscribers and encourage fan loyalty.

The new venture, called D23, will allow subscribers who pay a roughly $75 annual fee full access to a range of Disney news, online entertainment and other features. Part of the Web site will be available to the public free of charge.

No Offense, but This Guy's Got Your Number†

BK's Russ Klein Promises More 'Edge,' Premium Products in '09

Advertising Age, March 2, 2009 — Burger King chief marketer Russ Klein, the man who brought you "Whopper Virgins" and Facebook's "Whopper Sacrifice," says he's not out to offend people; he wants to forge emotional bonds with consumers based on areas of tension.

Few CMOs Think They're Effectively Tracking Social Media, Word-of-Mouth†

Survey: Marketing Execs, Not Other Departments, Should Be in Charge of Monitoring Customers' Conversations

Advertising Age, January 26, 2009 — Who in corporate America owns the consumer relationship, the customer experience, word-of-mouth or social media? The answer appears to be nobody.

For all the talk about listening to consumers, few marketers think their companies are doing so effectively and even fewer are monitoring what people say about their brands in social media, according to a new survey by the CMO Council.

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?

Why Westin Changed Its Name Tags

If I worked for the hotel chain, my tag might read: "Carmine Gallo: My passion is golf."

BusinessWeek, October 28, 2008 — Inspiration that keeps employees energized on a daily basis often has more to do with communication than compensation. The question is, how do you do communicate with your staff in a genuine way and encourage them to impress your customers? Westin Hotels & Resorts seems to have a found an effective strategy that you might be able to use in your own business.

Thriftiness on Special in Aisle 5

New York Times, October 14, 2008 — While it might seem counterintuitive for stores to teach shoppers to cut their spending, several chains have concluded that providing such knowledge can spur loyalty and keep customers from trading down to cheaper competitors.

So the Stop & Shop grocery chain is offering “affordable food summits” where consumers are taught how to lower their grocery bills. Home Depot offers classes on how to cut energy bills. And Wal-Mart Stores hired a “family financial expert” who has used online chats to teach several thousand shoppers how to save money for college, whittle away debt and sell a house.

The retailers say their advice is neutral, not specific to any store — but they are always careful to point out money-saving items that their stores carry. The... continue reading

Starbucks Gets Web 2.0 Religion, but Can It Convert Nonbelievers?†

New Blog, Social Networks Will Likely Reignite Debate If Move Is an Attempt to Empower Consumers or Advocate for the Brand

Advertising Age, March 24, 2008 — How many ways can its legion of latte-sipping loafers ask for free Wi-Fi? Starbucks is finding out.

Last week at its annual meeting, Starbucks announced the launch of My Starbucks Idea, a social network where consumers can post ideas for how the company can improve its service and products or comment and vote on others' ideas. Voting will be tallied online, with each idea assigned a point value.

Consumers will be kept up to speed on what Starbucks is doing with the proposed suggestions on a new blog, Ideas in Action.

Though the program sounds like a smart Web 2.0 move, it has already drawn a dart or two from observers of the company, and is likely to reignite debate over whether brand-created blogs or social networks are a smart attempt to empower... continue reading

10 Possible Starbucks Responses to McDonald's Coffee Threat

Seekingalpha.com, January 9, 2008 — I've used Starbucks' (SBUX) business strategy as a way to discuss the Trial and Error Economy (here and here). I'm not, by any means, the world's greatest expert on the company, but it provides a great vehicle for teaching about corporate strategy. Now, according to the Wall Street Journal, McDonald's (MCD) will sell premium coffee drinks made by baristas at most of their 14,000 stores.

How should Starbucks react to the McDonald's threat? Here are some ways:

1. Do nothing. Best implemented with one's nose high in the air, saying that Starbucks customers would never buy coffee at McDonald's. Would work very well for three to six months. Ignores the reality that Starbucks' recent growth has come not from Volvo-driving college grads, but from... continue reading

Steve Jobs Offers Rare Apology, Credit for iPhone†

Wall Street Journal, September 7, 2007 — Many people stood in long lines to get Apple Inc.'s iPhone — and paid a lot for it. In the end, Steve Jobs concluded that such loyalty counted for something.

Responding to a flood of emails complaining about a surprise iPhone price cut, Mr. Jobs apologized publicly and said Apple will offer a $100 credit at Apple stores to all iPhone users who paid the original price. "Our early customers trusted us, and we must live up to that trust with our actions in moments like these," Mr. Jobs wrote in a letter posted yesterday on Apple's Web site.