Monday, August 14, 2017

Geolocation and Target Marketing

Geolocation is a fascinating tool to consider for your marketing plan. Remember Pokemon Go, and all the marketing hoopla associated with firms that leveraged it? That brief craze brought geolocation into the public eye. Even though the fad has faded, there are many marketing possibilities for geolocation, as smartphone-toting customers go to work, go to school, go on vacation, go shopping, or are simply on the go.

Privacy concerns need to be addressed, of course. Still, by defining the audience, the offer, and the objective, marketers can test and refine their use of geolocation to attract new customers and encourage repeat purchasing.
  • Target customers in or near your location. Through geofencing, you can define an area within which you will communicate incentives to visit your venue or buy a particular offering. Coca-Cola sends messages to shoppers' phones while customers are inside Albertsons supermarkets, for instance, directing them to promotional deals in the soft-drink aisle. 
  • Have something to say. This is sales promotion territory--meaning the marketing should convey a sense of urgency, such as a limited-time offer. American Eagle Outfitters identifies shoppers entering the mall parking lot and communicates about new products and other news, boosting foot traffic.
  • Make location count. Starbucks uses geolocation to transmit the customer's mobile order to the nearest convenient location via the ordering app. Customers like the speed and convenience. Starbucks likes the efficiency. Win-win all the way around.


Monday, August 7, 2017

Marketing Electric Cars to Green Buyers

Tesla has had considerable success targeting green car buyers as it markets its initial two models of luxury all-electric cars, priced about $70k and up.

Now its biggest challenge is to meet the expected tsunami of demand for the popularly-priced all-electric Tesla 3. Starting at about $35,000, this stylish sedan is priced at half of what the other Teslas cost, yet it also carries the cachet of the Tesla brand, no small consideration. So Tesla has been active in the bond market to raise funds for the steep production increase needed to keep up with Tesla 3 demand.

Meanwhile, Tesla is booking way more than 1,000 reservations for the Tesla 3 every day. Delivery won't be for at least a year. This gives competitors like the Nissan Leaf time to appeal to buyers who want to drive green cars. Nissan is leaking bits and pieces of its new 2018 Leaf design to build anticipation and interest.

California is doing its part to encourage green buyers--it's looking at big rebates for all-electic and plug-in hybrids. This would bring the price of electric vehicles down to a level where mainstream buyers would do the math and see the financial benefit as well as the environmental benefit. 

Friday, August 4, 2017

Wristwatches Tick Along on Social Media Marketing

Wristwatches are decidedly old-fashioned--yet their fashion appeal lives on into the 21st century, despite the many substitutes (like the mobile devices everyone totes around, or the smartwatches made by Apple and others).

Retro, antique, and high fashion watches are ticking along on social media marketing. Just days ago, a New York Times article reported on how upscale vintage wristwatches, posted on Instagram, are drawing the interest of collectors and beyond. In fact, expensive vintage watches are selling well despite the many digital substitutes. 

As shown at top, Gucci is using Instagram for an artistic approach to marketing its stylish watches. And it's not the only brand leveraging social media. Swatch has nearly 5 million Facebook fans, for instance, and 771k Instagram followers.

Swatch--which revolutionized the watch market decades ago--is actually doing very well with its fashion watches, even in this digital era. Swatch's CEO says: "In July, our factories are at maximum capacity because the demand coming from our own brands is so strong." Swatch maintains handsome stores in airports and through carefully-selected retail stores.

Monday, July 31, 2017

Back-to-School Shoppers Are in the Stores

My search for "back-to-school shopping" returned 324 million results. Here are the top 4 from the list--all ads. Zappos, Walmart, Retailmenot (coupon site), and Staples. Zappos is promoting its "fast and free shipping," and its "huge selection." The others are promoting "save, save, save."

The LA Times notes that BTS is an $84 billion market (research by the National Retail Federation). And other research indicates that lots of shoppers are looking at price promotions carefully.

Most important, many BTS shoppers prefer to buy in person, to see, touch, and evaluate merchandise rather than click to buy. And when children are part of the process, they want a say in what gets purchased (which in some cases, results in a higher transaction amount). Legacy retailing is the beneficiary of this consumer behavior pattern.

Despite supply lists provided by schools, BTS shopping still needs organization. And that's where physical stores are doing their part to group merchandise needed by students for easy access. Nearly every store has a college dorm section, and a separate school supplies section. School days begin in a matter of days. Stores are ready to outfit students in advance, attracting shoppers to malls and big-box retail locations alike.

Monday, July 24, 2017

CMO Issues: Accountability and Metrics

Accountability still counts!
 
Chief marketing officers are under pressure as never before to be accountable for results. This is nothing new, really, but with more marketing tools at their disposal and the constraint of carefully-controlled budgets, accountability is a priority.

This means that metrics have to be chosen and applied to enable CMOs to track, measure, and evaluate marketing campaigns in great detail. No wonder CMOs are examining media and social media metrics to be sure that these reflect the reality of how campaigns are performing and avoid misleading, fraudulent, and imprecise measures.

Meanwhile, social media platforms are introducing better metrics and analysis tools to enable measurement and performance assessment. This is crucial, because CMOs must be able to trust the numbers. However, despite closer scrutiny of marketing tactics and results, a few CMOs are either choosing inappropriate/old-fashioned metrics or not selecting metrics at all.

Another way to look at accountability is through the lens of big-picture marketing goals. Some businesses use the Net Promoter Score to see how marketing affects the customer experience and willingness to recommend the brand or organization. No matter which metrics you apply, be sure you are measuring what matters--and include interim benchmarks in your marketing, so you can adjust campaigns if preliminary results aren't close to present targets.


Sunday, July 16, 2017

The Celebrity Face of Tourism Australia

Celebrities bring star power when they serve as the face of tourism for a destination, in traditional media and in social media.

For example, the actor who plays Thor in Marvel movies, Chris Hemsworth, is the high-profile celebrity face of Tourism Australia. Interviewed by the New York Times, he gave his top reason for tourists to visit Australia: "Besides the sights, the people are also a draw. They are so welcoming."

Aussies are pleased and proud to have this actor represent them in tourism marketing, through ads, interviews, and other tools. In fact, Hemsworth has generated widespread media interest in Australia tourism around the world.

Hemsworth has nearly 11 million Instagram followers and frequently posts with the tag @Australia to promote the country to tourists and fans. He and his wife both mention Australia on social media, leading to hundreds of millions of impressions and positive associations for the destination. Some percentage of the many people reached by the ads or social media mentions will be influenced and then book a trip or extend a trip, resulting in a boost for Australia's tourism businesses.

Sunday, July 9, 2017

US Auto Market Share Brawl

If Toyota is correct and the US auto market has peaked, meaning that total sales by all industry participants combined will barely budge in 2017, then market share is the name of the game. The only way for one company or brand to show growth is by taking share away from a different company or brand (including cannibalizing a brand in the parent's portfolio).

This situation will have a major influence on automaker's US marketing plans for the coming 18-24 months. So far, the signs point to a plateau.

For starters, consumers will likely benefit from increased financial incentives (rebates, for instance) as dealers and brands court switchers or try to hold onto usually brand-loyal customers. Dealers are also benefiting from manufacturers' financial incentives, which they may or may not pass along to consumers in the form of reduced effective pricing.

A table on the Wall Street Journal site shows that sales of light trucks are picking up speed vs sales of passenger cars. Gas prices are low, so even though SUVs and pickups don't deliver fuel efficiency equivalent to cars, buyers are returning to their truck-buying habits.

As a result, the market share brawl is not just a matter of, say, GM vs Toyota, but also cars vs SUVs and pickups, plus gas vs hybrids vs electric. How to stand out? For example, for differentiation and to appeal to targeted segments, Volvo is going all electric by 2019. What complicates this brawl is the aggressive entry of Tesla and its popularly-priced electric car (image at top). The market share brawl is underway!

Wednesday, July 5, 2017

Big Beer Brands, Craft Beers, and Consumer Behavior

Craft beers are trendy and popular, as well as locally-known--which is why beer giants like Anheuser-Busch InBev are swallowing up many smaller brands. Above, logo of A-B InBev's Blue Point Brewing Co, founded in 1998 and serving the Long Island, NY area.

Fortune magazine has a map and video showing the extent of the "drink local, buy global" trend, including the news that A-B InBev recently purchased its 10th craft brand (Wicked Weed Brewing, based in North Carolina).

A-B InBev seeks two ingredients in craft beer acquisitions: (1) variety, so the parent's product portfolio isn't too heavily weighted toward one type or another; and (2) owners who are interested in working with a deep-pocketed, marketing-savvy parent for growth.

Craft beers aren't the huge growth niche they were a few years ago, but they're still growing. As the extent of involvement by beer giants becomes more widely known, will craft beer lovers be put off or will they be able to judge each brand and brew on its own merits? Marketers will be watching for clues to consumer behavior, attitudes, and actions as competition becomes even more intense between beer brands.

Saturday, July 1, 2017

The Yogurt Marketing Battle Goes On

Chobani FB image
A decade ago, Chobani upended the US yogurt market with its innovative, tangy Greek yogurt products. Today, the yogurt market representing nearly $8 billion in annual purchases. However, Greek yogurt growth is plateauing.

All you have to do is check the yogurt display in any grocery store and you'll see how the industry's top competitors are reacting by segmenting the market and adding products/lines for target audiences with different tastes.

General Mills image
General Mills just announced a new line of French yogurts from Yoplait, branded Oui. The idea is to encourage yogurt lovers to try this artisanal yogurt (packaged in glass jars) and, once they acquire the taste, make them loyal customers.

Chobani is expanding into smooth yogurts these days, appealing to a broader audience beyond its loyal fans of Greek yogurt. Danone is expanding its Dannon yogurt production facilities even after selling Stonyfield yogurt to complete the acquisition of White Wave plant-based milks.

The marketing battle includes social media. Chobani has more than 100k Twitter followers and 1.4 million Facebook likes. Yoplait has more than 72k Twitter followers and 2 million Facebook likes. Dannon has more than 25k Twitter followers. Watch for more marketing activities as yogurt marketers try to build market share in this intensely competitive industry.

Monday, June 26, 2017

Back to School Begins in June

So soon? Staples has had backpacks and other school supplies prominently displayed in the front of its stores for several weeks--even before school was over!

Other retailers are already promoting back-to-school items, as shown here on Zappos and Dick's today. Visit any website catering to teens and parents (Old Navy, Walmart) and you'll see some school-related items featured.

Rushing the season? Partly...this is a definite trend for all retailers as they try to get a jump on the competition. It's also a function of changing consumer behavior, with parents being price-conscious and interested in bargains, even two months early.

Target has been mounting special college programs for years, and has begun opening smaller stores very close to college campuses, making it convenient for students and parents to browse and buy. "Growth on college campuses and in urban markets is a priority for Target," says a Target VP.

Go into any housewares/home goods store (Bed Bath & Beyond for instance) and dorm room products are the big focus, with helpful checklists and ideas for parents and students. IKEA has its dorm website ready, with body copy that begins: "Ready or not, fall's on its way, and with it, a new school year."

Amazon Prime Day in July may very well be a key turning point in buying for back to school. Not surprisingly, Walmart is battling Amazon on this front for a major piece of the pie. States also recognize the trend toward earlier purchasing and are moving their tax-free weeks earlier to accommodate consumer buying preferences.

Students may roll their eyes when they go into a store and see school-related products. But retailers want to get on the parents' radar and make an impression as the store or website to visit for back-to-school items. So while some people are thinking pool accessories and pickle ball, others are thinking pencils and packs. For savvy marketers, the plan is to present a solid value proposition, polish brand image, and encourage buyers to go ahead and buy--early.

Sunday, June 18, 2017

Fortune 500 Issue Reflects B2B Advertising Trends

The 2017 edition of the Fortune 500 is, as in other years, a rough indicator of B2B advertising trends.

Judging by the total number of printed pages and the multiple sponsored advertising sections, ad support is clearly strong. Prestige advertisers like Rolex are represented. Well-known brands like Stihl and General Motors have special ad sections. This issue gets high readership, and advertisers want to be there.

As digital advertising comes to the forefront of many marketers' priorities, seeing a 2017 issue with 340 printed pages (slightly fewer than in 2016) actually represents a strong advertising market.

So many magazines are appearing thinner and thinner, yet this Fortune issue is full of ads. True, the number of pages is down from 2016 and earlier years, yet having 340 pages filled with valuable editorial content and repeat advertisers makes a statement about the health of B2B magazine advertising.

2017: 340
2016: 346
2015: 392
2014: 390
2013: 352
2012: 312
2011: 316
2010: 308
2009: 276
2008: 356
2007: 386
2006: 384
2005: 410
2004: 478
2003: 410
2002: 402
2001: 474
2000: 630 - Peak of dot-com boom!
1999: 510
1998: 506

Tuesday, June 13, 2017

Ecosystem Brands Rule

The well-known BrandZ ranking of top global brands (by value) is out--and so-called ecosystem brands are leading the way, yet again.

In 2017, the top 10 brands, as ranked by BrandZ in terms of value, are:

10. McDonald's (US-based)
9.   IBM (US)
8.   Tencent, owner of WeChat (Chinese)
7.   Visa (US)
6.   AT&T (US)
5.   Facebook (US)
4.   Amazon (US) - ecosystem brand
3.   Microsoft (US) - ecosystem brand
2.   Apple (US) - ecosystem brand
1.   Google (US) - ecosystem brand

A senior BrandZ exec says: "Ecosystem brands cleverly meet our needs and make our lives easier by offering us all sorts of things that are connected so we gain this traction with them."

In other words, Microsoft and other ecosystem brands encourage repeat purchasing and brand loyalty with multiple offerings that supplement and coordinate with each other. Microsoft and Apple, for instance, offer operating systems . . . software . . . hardware . . . services . . . and so on. The more offerings a customer buys into over time, the higher the lifetime customer value. Ecosystem brands offer value and, in turn, customers value those brands highly.

Monday, June 5, 2017

Brand Purpose Boosts Unilever Brand Growth

https://twitter.com/Unilever
Some Unilever brands have been emphasizing sustainability and social responsibility initiatives--driving much higher revenue growth for those brands.

Unilever says those purpose-driven brands (including Ben & Jerry's, Lifebuoy, and Dove) are increasing revenue more than 50% faster than its other brands...and helping Unilever continue growing in the global marketplace.

Given the highly competitive nature of the product categories involved (such as ice cream and personal care), Unilever's experience indicates that consumers definitely recognize and respond to differentiation on the basis of non-functional benefits. In other words, many consumers will choose brands because of corporate citizenship and purpose, not just features that deliver benefits.

Yet brand purpose must also go hand-in-hand with brand usefulness, meaning the brand provides value in the form of meeting a consumer need.

Thursday, June 1, 2017

Shopper Marketing Today

Academic research has shown the importance of point-of-purchase marketing stimuli for influencing in-store buying decisions. (See this classic 1990 study, for instance).

Yet in recent years, the increased availability of information to supplement in-store buying decisions has altered the dynamics of shopper marketing. Consumers frequently research brands and products before entering the store...knowing exactly what they want and what they want to spend as they walk down each aisle.

So what does this mean for shopper marketing in 2017?
  • Retailers are personalizing offers via app, email, and snail mail. This strengthens ties with existing customers and allows the stores to present relevant offers to interested buyers, keeping brands top of mind.
  • Manufacturers are still paying for in-store displays, but doing more checking to see that the displays actually get set up in visible areas.  
  • Manufacturers are seeking ways to differentiate products in the store--such as printing the "time of manufacture" on juice so shoppers can determine how fresh each product really is, compared with competing products.
  • Retailers are catering to the showrooming trend by offering actual showrooms, with purchases optional (or not even accommodated). Target's showroom for at-home technology is an opportunity to educate. "These products don’t sell themselves, and we are trying to tell a bigger story. We’re asking Americans to become the technologists of tomorrow," explains a Target innovation exec.

Thursday, May 25, 2017

Marketing Red Nose Day USA

Today is Red Nose Day in America, a day of fundraising to support children's charities and combat poverty.

NBC is broadcasting a telethon tonight in support of Red Nose Day, along with special programming featuring celebrities who are involved with the charity efforts. This high-profile media attention is a big part of the fundraising effort.

If you don't already have your Red Nose merchandise, hop on over to the local Walgreens and buy a nose or another item where the purchase supports the charities. Walgreens is the official retail partner and its stores are doing their part with signage, enthusiastic employees, etc.

Charity partners are also marketing Red Nose Day. Save the Children, for instance, has its website and social media sites promoting the event and urging donations.

And Red Nose Day USA is extremely active all over social media. Its Twitter account has 60,000 followers and is posting videos, images, and other content to engage and energize people. Go ahead, put on your red nose and get funny for money (to support serious causes).

Tuesday, May 23, 2017

Are QR Codes Still a Viable Marketing Element?

Techcrunch https://techcrunch.com/2017/01/31/website-snapcodes/
Remember QR codes? They're sprinkled through the latest edition of my Marketing Plan Handbook and they therefore date the book to a period when QR codes were everywhere. Then apps became ubiquitous and many experts declared QR codes a thing of the past.

Not so fast. In fact, QR codes have new life among social media sites! Snapchat, for instance, invites businesses to create Snapcodes that are QR codes. Updating the QR code for the Snap generation, in other words.

Pinterest is also updating the QR code idea, with its object-recognition lens that can understand a QR code and then open the website associated with that code. No special app, just use Pinterest.

Facebook recently tested a QR code reward program, geared toward retailers and their customers.

Google Allo can also work via QR codes to quickly expand a user's friend base or share chat functions. QR scanning is easy and convenient.

So the answer is YES--QR codes are not only viable, they're trendy. Again. Watch for creative marketing with QR this year.

Friday, May 19, 2017

Customer Satisfaction and Your Marketing Plan

If you're writing a marketing plan, you need to understand customer satisfaction with your products, with your brand, within your industry (and of course, your competitors). Sometimes you can find secondary data that will give you some ideas as you scan the external environment for your situational analysis.

For instance, are airline passengers satisfied with their flying experience? Which airline earns the highest marks from customers?

Click to the American Customer Satisfaction Index and find out. The latest surveys indicate that JetBlue, Southwest Air, Alaska Air, and other budget carriers are ahead of the pack, and price is one reason why. And while you're there, take a look at other industries to see what U.S. consumers think.

Also click to J.D. Power, which ranks brands within industries according to customer satisfactions. Dyson, for instance, is on top in the latest U.S. vacuum satisfaction survey.

Search for customer satisfaction by industry, and you'll find industry-sponsored surveys like the one undertaken for Airlines for America. The most recent survey indicates that more Americans are flying and more are satisfied with flying. Of course, this research was completed well before the highly publicized problems with overbooking and passengers being forcibly removed from jets.

Other groups conduct customer satisfaction surveys to provide consumers with input as they make buying decisions. Insure.com looks at the "best car insurance companies," as an example.

So when you are developing a marketing plan, dig deep to see how consumers view your industry, your competitors, and your company or brand or products.

Sunday, May 14, 2017

Marketing, Innovation, and Growth

Chief Innovation Officer & Chief Growth Officer

Coca-Cola just announced the creation of a senior-management post, Chief Innovation Officer. Coke's new CEO wants innovation not tucked away in R&D but visible and reporting to the top, leading the way with brand ideas for future growth beyond the company's current brand/product portfolio.

A current Coke innovation exec says: "We scan the broad spectrum of trends, and get inspiration from -- not trying to solve specific business problems because that is incremental - but where we have to go." So Coke is investing in promising startups that will help it innovate marketing (new products, new processes, new communications) more quickly through partnerships. 

Coke also has a chief growth officer, replacing the chief marketing officer (CMO) with a broader leadership position. The CGO role is to streamline marketing across brands and divisions with a global view and responsive marketing. Coke's president explains: "To keep up with the fast-moving consumer landscape around us, our organization has to be ready and willing to change at a faster pace probably than at any time in our history." That's what the CGO will do for Coke.

In the context of intense competition among beverage marketers, and ongoing changes in consumer attitudes and preferences concerning soft drinks, Coke wants these two new positions to jump-start growth on a global basis.

Wednesday, May 10, 2017

Blurring the Lines Between Marketing and PR

A new study finds increasing overlap between public relations and marketing. One of the study's co-sponsors, Paul Holmes, says:
PR has the opportunity to move aggressively into paid content, an arena long dominated by advertising but that will require investment and training. The bigger challenge for the profession and for society is what happens when consumers no longer know the source or the nature of the information they receive, and how that impacts the credibility of that information.
And that's both a plus and a minus for marketing in general and society at large. 

The three key developments fueling this trend are (1) social listening, (2) digital storytelling, and (3) real-time marketing.

As a top official of ANA states: "Digital has put PR front and center, as it allows immediate outbound communication and inbound feedback."

PR's traditional function has been to "listen" to the interests and concerns of an organization's publics (consumers, community members, and other stakeholders) and allow for response through programs or other means. PR also explains the organization's position to the publics and helps protect reputation, both reactively and proactively. So in a real sense, PR has been an integral element in the marketing plan from the beginning.

With the rise of product placement and influencer marketing, among other techniques, consumers are increasingly surrounded by content that they can't as easily evaluate in terms of source (paid? spontaneous? stunt?). This is where transparency becomes critical.

Saturday, May 6, 2017

How Walmart Keeps Reinventing Itself

Walmart is the quintessential store-based legacy retailer, offering vast product selection at low prices. It continues to innovate to attract foot traffic, such as by seeking out made-in-America merchandise, particularly local goods, that are distinctive and appeal to local or regional shoppers.

But while Walmart was growing into the world's largest store operator, along came the Internet, and with it, Amazon. Walmart's retail dominance continues in the world of bricks and mortar, but it's still working on a successful strategy to achieve big gains in online retailing. And that's where Jet.com comes in.

Walmart acquired Jet.com last year, to gain not only the site and its customers but also the e-commerce savvy of the founder, Marc Lore, who now heads all of Walmart's e-commerce operations. Lore recognizes the power of omnichannel marketing, saying: "If you don’t want to let another business cannibalize your customer, you have to let them shop whatever way they want to."

Not only is Walmart reinvigorating its online operations, it's also offering inducements to bring online shoppers into stores. Similar to the way Jet.com offers discounts for those who can wait to receive items, Walmart will offer discounts to shoppers who pick up their purchases in one of its nearby stores.

Quoting Lore: "Now they [shoppers] can either pick up and save even more money, or ship two-day for free to home, without paying for a membership." Fighting words as Walmart battles Amazon. In fact, Walmart is looking for a patent on a system to compete with Amazon's Dash buttons. Here, the hook would be automatic replenishment, without even pushing a button.

Sunday, April 30, 2017

Theme Parks Leverage Global Brand Franchises

https://www.usj.co.jp/e/attraction/
Harry Potter, as a brand franchise, is helping Universal Studios up its attendance in Florida and Japan (and it's doing quite well in Japan). Minions, as a brand franchise, is also giving Universal a unique draw in Japan. And guests are actually spending more per visit, even as Universal experiments with outdoor events during winter months.

Disney--traditionally the market leader--is expanding its brand franchises as competitive tools to keep attendance growing. Star Wars is a tried-and-true draw. Now Disney is also opening Avatar attractions. For an infographic illustrating the evolution of Disney's theme park/movie brand doings, see here. Interesting, Disney Tokyo is both popular and crowded, which is affecting foreign tourist attendance (not in a good way). For an unusual look at Disney and theme parks (namely, what didn't get built), see here.

More theme parks are opening year after year to satisfy international interest in exciting rides, water parks, and entertainment with branded elements. Warner Bros., for instance, is partnering to create a theme park in Abu Dhabi, featuring two brand franchises: Gotham City (Batman) and Metropolis (Superman).

In the high-stakes world of theme parks, where attractions run into the millions of dollars to design and develop, companies are competing with some of the most fascinating new rides ever. Brands are a key way to bring in fans who know and love the franchise...but the rides have to deliver if the parks are to enjoy all-important word of mouth.

Friday, April 21, 2017

What's Next for Legacy Retailing?

Stores have been closing as the full impact of consumer behavior shifts is felt by legacy retailers from coast to coast. The head of Urban Outfitters notes: "The U.S. market is oversaturated with retail space and far too much of that space is occupied by stores selling apparel."

Of course, this "over-storing of America" theme is nothing new: legacy retailing has been grappling with so many stores and so many malls for decades--literally. By one account, the number of shopping malls increased twice as fast as population growth between 1970 and 2015.

Lots of malls means lots of stores--yet with the ascendancy of online and mobile shopping, how many stores do legacy retailers really need?

The over-stored phenomenon and shifts in buyer behavior are leading to "zombie malls" and retail bankruptcies. Wet Seal is only one of many retailers to close its doors in 2017 alone. Some retailers are trying to reorganize as smaller chains. Is that how legacy retailing will survive?

Meanwhile, Walmart is buying smaller online businesses like ModCloth in a bid to attract their shoppers and broaden beyond its legacy customer base. Is that how legacy retailing will survive?



Monday, April 17, 2017

How Not to Handle a PR Crisis

Right now, if you do an online search for "United Airlines crisis," more than 1 million results pop up.

That's an indication of how serious a PR crisis United Airlines is facing after forcibly removing a passenger from one of its jets to make room for crew.

The flight from Chicago was fully booked and even offering up to $1,000 in vouchers for future flights didn't bring anyone forward to volunteer. Airline employees said they would have to randomly select passengers to leave the plane.

Three passengers reluctantly agreed when they were asked to leave their seats to make way for United crew members. One refused. And so United's employees brought in the aviation police to forcibly remove the passenger. Things did not go well.

Others on the plane began to video the encounter and post to social media. Soon the entire planet could see how this passenger was being forcibly dragged through the aisle, his face bloody and his body limp. Millions of people viewed and reposted the videos. Many news media posted the videos and their comments. Social media memes popped up in the wake of the incident.

How did United react? Well, despite its stated commitment to customer service (see top), the airline simply didn't do a good job here.

Its CEO didn't know how or when to apologize and try to make things right. At first, he talked about "re-accommodating" the passengers--and that phrase was, of course, widely ridiculed. He then blamed the passenger for being belligerent, which not only contradicted the videos but also made the customer the bad guy in this situation. Wrong.

Finally, the CEO began issuing apologies and saying that all passengers on the plane would receive refunds. By then, United's stock had dropped and even competitors were taking some jabs at the company.

Now all of this is on top of the famous #UnitedBreaksGuitars video, when a musician couldn't get United to pay for a guitar it broke. He wrote a song, did a video, and posted it online. Yes, the hashtag and video went viral. United got the message.

Once again, United Airlines is in the midst of a PR crisis.

Tuesday, April 11, 2017

Marketing Paints Named with Emotional and Experiential Appeal in Mind

White isn't just white in the marketing world of paint. As Consumer Reports notes, it can be "Simply White" or "White Dove" (both Benjamin Moore). Taupe isn't just taupe--SherwinWilliams says that "Poised Taupe" is its color of 2017 (see above).

In the May issue of Consumer Reports, the color marketing manager for Behr explains how that brand's paint names work: "Names can typically be sorted into four descriptive categories: visual, geographical, emotional, and experiential."

In fact Behr's website presents "Color Trends and Inspiration," where you can see its 2017 trends organized according to three categories: Comfortable (muted), Composed, and Confident (more adventurous).

Behr's Instgram account has nearly 30k followers examining its many paint and decorating idea photos, covering all the rooms in the house and the outside too.

Benjamin Moore has 122k Instagram followers and uses the hashtag #PaintLikeNoOther to identify its creative and colorful idea images for consumers to consider and enjoy.

SherwinWilliams has nearly 76k Instagram followers and uses #SWColorLove to identify its images that inspire and encourage consumers to express themselves with color.

One last thought about color: It seems that consumers tend to prefer paints with fanciful names, such as "mocha" instead of "brown," as more pleasing to the eye. Then there's the sheer marketing appeal of paints with personality-plus names. Why market "white" when you can market "White Dove," for example?

Tuesday, April 4, 2017

Procter and Gamble Grows in Services

Brands that are successful for products can sometimes be stretched into the service sector. That's what happened when P&G bought Dallas's University Laundry, a service that picks up dirty laundry and delivers clean clothes on the campus of 23 universities.

One of University Laundry's marketing appeals is the potential for built-in repeat business. Students, the target market, get accustomed to the convenience of easy drop-ff and pickup, no waiting in line for washers and dryers, no folding. Also, University Laundry has a "local" feel, taking a local name for its services on each campus. Finally, arrangements are on demand via app, although a toll-free number is available for conversations (a nod to differing consumer behavior and expectation situations).

Now the firm is part of Tide Laundry Services. Tide, a P&G detergent brand you might have heard of? P&G tried Tide laundry services a while back, shelved the idea, and brought it back in a test last year. University Laundry fits into this service pattern of wash-dry-fold and app for convenience.

P&G also operates professional laundry services on site for organizations or institutions. One of its customers is the NFL. Yes, P&G has the scale to handle laundry for football teams, under the Tide brand.

The well-known, well-respected Tide brand is certainly a good fit with this service business. But what are the long-term growth and profit possibilities?

Monday, March 27, 2017

Brand Fanship in the Age of Consumer Skepticism

Brand loyalty is the name of the game for every marketer. And high on the credibility list is peer recommendations. Sure, brand communications carry some influence, especially by boosting brand awareness. But consumers are skeptical of advertising (no surprise).

So who do consumers trust? One study says consumers are seven times more likely to trust what other consumers post in photos about brands on social media sites, compared with what brands put in traditional communications. Seven times. Seeing really is believing, if a peer posts it. No wonder brands are trying to leverage social media content posted by consumers.

Auto manufacturers are intensely interested in loyalty and brand fanship. In Canada, some brands offer loyalty incentives to keep your family's business, car after car.

There are more subtle ways that brands can provide tools for consumers to use in showing brand fanship. Subaru, for example, offers the option of ordering a free Subaru Badge of Ownership to adhere to the back of the car, along with lifestyle icon extras to adhere alongside.

Above, my order to go on the latest Subaru I purchased, showcasing my brand loyalty and icons reflecting family interests. Plus a 100k mile badge for Subaru #5 in the family.

If you pass a parked Subaru and notice a number like this on the back, you know the owner is loyal and happy with the brand. If each badge sparks the interest of a few people, multiply by the number of owners and people influenced year after year. That's a good investment for Subaru, IMHO, enabling brand fans to show the world how they feel, in the age of consumer skepticism. Seeing is believing.

Monday, March 20, 2017

McDonald's Plays Catch-Up with Mobile

McDonald's wants to catch up to what Starbucks and Panera have been doing for many months--encouraging gadget-toting customers to use advance mobile ordering, adding convenience by speeding up transactions in the store.

Of course, Starbucks was so successful in influencing consumer behavior that its stores were bombarded with advance orders and the company had to reorganize work flow to prevent bottlenecks.

As of today, McDonald's US has more than 69 million Facebook likes, 3.4 million Twitter followers, 2.2 million Instagram followers. Its mobile app allows menu browsing, store locator functions, and more--but no order and pay functions, yet. Bear in mind that this company has a definite digital presence and has experience engaging brand fans.

However, according to one report, McDonald's has lost 500 million transactions to competitors since 2012. That's a lot of transactions. And competition is extremely fierce in the fast-food and casual-dining world, where technology is helping to shape and improve the customer experience.

Big chains have to out-innovate smaller, hungrier rivals (pun intended). Moreover, they have to out-innovate each other to retain market share. Panera has had mobile order for more than a year, and the results indicate it's having an effect on sales. So McDonald's is playing catch-up.

Finally, McDonald's is testing a national mobile system for advance ordering. The initial test involves 29 stores in California (and some UK stores). McDonald's expects to roll the system out month after month, with thousands of stores participating by the end of 2017. Will customers use the new process, and will this be a valuable competitive move for McDonald's?

Thursday, March 16, 2017

Domino's Mobile-Led Marketing

Domino's, which built its rep on convenient, speedy delivery, wants to make it really easy to order pizza--applying what it knows about consumer behavior. Above, the "zero click" app that will order your favorite pizza (or whatever you like from the menu) with no clicks. Mobile-led marketing that works. Domino's revenues and profits are up.

Want to order one of its pizzas via emoji? You can do that by tweeting the emoji to Domino's. (The pizza giant is very social, with more than 1 million followers on Twitter, 17 million Facebook likes, and 1 million Instagram followers.) Soon, AI tech will enable online voice ordering a la virtual assistant (think "Alexa" for instance), no clicks needed.

For all the focus on mobile-led marketing, Domino's also has its eye on the in-person customer experience. It's been rolling out new store designs where customers can watch their pizzas being made (seeing it made fresh adds to the experience) and eat in rather than taking out.

Thursday, March 9, 2017

Marketing, Art or Science?

art or science?

Trick question, because the answer is both, as you know.

But how much of marketing is art and how much is science? The Australian CMO of a software firm says today's marketing is 70% science, 30% art. Basically, if you're not using science (meaning sophisticated analyses, Big Data, etc.) to inform decisions, you're not optimizing your business...but without the creativity of art, marketing can't touch hearts and minds.

Other marketing execs agree that science is an integral part of targeting, in particular. In the quest for "right time, right place, right message," a YouTube marketing exec argues that the science angle is helping pinpoint the right time and right place, but the art angle is the key ingredient in the right message, critical for brand "magic."

The CMO of Progressive Insurance comments that "A lot of marketers are so proud of their art but they don't know their science." In fact Progressive relies on the art for quirky commercials starring Flo and a cast of characters that engage audiences. But the company also has in-house media buying so it can control exactly what gets placed where and when--the science. "We're not going to outspend anybody. We're going to out-create them," is how he says Progressive competes in an intense marketplace.

The head of strategy at an agency notes: "There are cases where all evidence points to a course of action or where intuition has to prevail and we need to be careful to take these chances even where we know measurement is thin." In other words, trust to creativity for breakthrough marketing.

In the end, effectiveness is what matters the most, measured by metrics that relate to strategic KPIs (key performance indicators). And science can help marketers do a better job of planning, testing, and measuring effectiveness of the art in brand communication. Art and science for today's marketing!

Sunday, March 5, 2017

B2B Content Marketing for Thought Leadership, Value Added, and Entertainment

B2B content marketing has always had the goal of establishing a brand or company as an authoritative thought leader and adding value with information.

Now the goal is to entertain as well as to provide information or education. Why?
  • One reason is clutter--so many brands are adopting content marketing for differentiation, it's harder to stand out. Brands need to have the right content for their audiences (and their strategies).
  • Another reason is media access--B2B customers want to be able to access content marketing via any digital device and through a website or social media. This diversity of points of access makes attracting and retaining an audience more challenging.
Not surprisingly, IBM is an expert in B2B content marketing. Its US home page has links to free downloadable subject guides, developer info, free tools, authoritative studies, and more.

The IBM YouTube Channel includes sub-channels for Watson and other categories of interest to a range of B2B buyers.

The IBM Twitter account (tweet above) posts videos and other content of interest--not just product/service related but general interest, as in the AI content promoted above.

And IBM's Facebook account similarly posts frequently with ever-changing content for B2B buyers, as well as serving as a recruiting tool.

Virtually every post has visual interest, whether a photo or video, to add to the appeal. It's not just a data dump, it's content marketing in a format that fits the B2B audiences' preferred method of accessing information. Importantly, the content marketing is ready 24/7 whenever a buyer anywhere wants to learn more about a subject of interest.

Wednesday, March 1, 2017

Ranking Top Brands

Who's #1?

No two brand rankings are alike, which is why sometimes Apple is the world's top brand, sometimes Google, sometimes another brand. Year to year, the exact brand rankings can change, but usually the same group of well-known brands stays in the top tier.

Here are three brand rankings published during the past year:

  • According to Forbes, Apple is the world's most valuable brand, followed by Google, Microsoft, Coke, and Facebook.  (published 2016)
  • According to Interbrand, Apple is the world's best brand followed by Google, Coke, Microsoft, and Toyota. (published 2016)
  • According to Brand Finance, Google is the world's most valuable brand, followed by Apple, Amazon, AT&T, and Microsoft. (published 2017)
Even the very top brands like Google actively integrate their names and logos into entertainment viewed by millions. Google Earth played a pivotal role in the movie Lion, for example, showcasing its functionality and features. Apple is a perennial placement favorite in movies, too. Keeping a high profile adds to the image and the value of brand equity.

Wednesday, February 22, 2017

The Power of Co-Branding and Limited-Edition Products


Above, a co-branded food product that just appeared today on supermarket shelves: Limited Edition Peeps Oreo cookies.

Peeps has its own loyal customer base (including 327k Facebook fans) and Oreo has its own loyal customer base (with 42 million-plus Facebook fans).

Combine two powerful brands, add the "buy now" incentive of a limited-edition product with a holiday connection, and you have an end-cap seasonal item that attracts attention from shoppers and the media.

And of course Oreo has created a hashtag for this limited-edition product, to fuel word of mouth: #OreOMG.

Wednesday, February 15, 2017

From Zipping and Zapping to Clicking

Thirty years ago, advertisers were bemoaning the increase in zipping and zapping as consumers time-shifted their viewing habits and skipped the commercials. That was in the old VCR era. It continued into the DVR era, with media firms trying to find ways to put commercials in front of viewers, like it or not.

In more recent years, commercials have become a popular part of major TV events like the Super Bowl. Time recently published a list of the most influential Super Bowl ads "of all time." (That list was published before the Patriots won against the Falcons in February.)

For comparison, take a look at Entertainment Weekly's 50 best commercials list published 20 years ago, in 1997.

Now streaming has changed advertising, viewing patterns, and consumer behavior, again. And in an era when there are more choices (broadcast and cable channels, streaming services, YouTube, etc.) than ever before, many commercials are so entertaining that consumers voluntarily click to watch them.

Here's a link to YouTube's advertising leaderboard for January, 2017. Among the top commercials viewed on YouTube were several scheduled to air during the Super Bowl. No zipping, no zapping, but a lot of clicking to preview these ads before they air on TV.

* abbreviations: DVR = digital video recorder, VCR = videocassette recorder. To see what these gadgets used to look like, click on the links to check out their entries on Wikipedia.

Saturday, February 11, 2017

Renting Clothing Is Still in Fashion

Back in 2009, Rent the Runway was in the vanguard of the clothing rental business model, offering designer-branded, special-occasion fashions at a fraction of the purchase price, to be worn for a few days and returned. Since then, it has expanded to stores and stores-within-stores at Neiman-Marcus. And gained competitors. And it offers a wider range of products like fashion accessories.

The rental/subscription model is increasingly popular as consumers avoid buying and instead, enjoy wearing in-style clothing for a limited time (a few days or a month). Of course, startups are looking for niches and differentiation so they can fine-tune an effective positioning.

For instance, Le Tote offers clothing by monthly subscription, selected by personal stylists for your consideration. Just check the "tote" to see what's being recommended, then rent, wear, return, and repeat. No shopping, no laundry, hundreds of styles/brands to choose from, and no unworn styles sitting in the back of your closet with the tags still on.

Interestingly, fashion brands that do business with these and other rental startups gain access to feedback that helps them better satisfy their customers, rental or purchase. Le Tote notes what happens to garments that are rented and returned, re-rented and returned. What parts wear out, for instance. And tells the manufacturers so they can do better. Win-win-win (for manufacturer, rental service, and--of course--the next customers.

Other product categories are represented in the rental-subscription business model, too. More on that soon,

Sunday, February 5, 2017

Print Ads on Super Bowl Sunday

Advertising is more than TV commercials and social media. Advertisers even use legacy media like print -- newspapers and magazines -- to reach audiences. Today, for example, is a day when football fans read the sports section in a local or national newspaper for more detail about the teams playing in the Super Bowl.

The entire back page of today's New York Times sports section has the lighthearted ad from Bud Light, shown at top. It sings the praises of "the official holiday of Friendship"--meaning the Super Bowl, but not named as such. A clever ode to sports being an opportunity for friendship and fun, positive brand associations that Bud (an official Super Bowl sponsor) wants to encourage.

The Bud Light website requires visitors to submit their birthdate to enter, as shown here. If you want to see the new Bud Light commercial and other A-B commercials being aired tonight, they're already online.

Inside the same New York Times sports section is a full-age ad from Gatorade, titled "An Open Letter to Athletes..." and singing the praises of serious athletes "pursuing your dreams, setting your goals and giving it all you've got...We are too."

Fans are speculating about which color Gatorade will be poured over the winning coach's head tonight in Houston. Or for interactive brand engagement, just go all Snapchat and dunk your selfie in the Gatorade color of your choice. Gatorade says last year's Snapchat dunk opportunity resulted in 165 million impressions.

Sure, Super Bowl commercials reach a huge audience, but print and other promotions also reach targeted audiences with specific messages that support brand image and personality.

Tuesday, January 24, 2017

Super Bowl Advertising Preview for 2017

National advertisers are already releasing their Super Bowl ads for 2017, hoping for viral sharing that will boost the brands and, with luck, encourage buying too.
  • Like funny ads? Watch Melissa McCarthy in her Kia ad, teaser already up on YouTube and elsewhere.
  • Like the Patriots? Tom Brady stars in an Intel ad (the ad was up even before Brady knew for sure he was back in the Super Bowl).
  • Like music? Pepsi sponsors the halftime show, and its ad featuring Lady Gaga is, well, musical. 
  • Like quirky feel-good ads? Skittles has one for you this year.
  • Like something new? Mars (which is behind the Skittles ad) will shoot a Snickers commercial live, during the Super Bowl, which has (surprisingly) never been done. Well, it's a bit risky, maybe that's why this is a first. To attract attention, Mars will do a 36-hour livestream branded entertainment show (view at Snickerslive.com) leading up to the game. 
And Yellow Tail wine has stitched together a series of coast-to-coast local ad buys to showcase its Australian wines. Locked out of national because of category-specific Anheuser-Busch InBev's exclusive Super Bowl commitment with Fox, which is televising the big game, Yellow Tail went the local route and will be seen during the game, just like any other big advertiser (except aired locally). The reach and the exposure, just not the "official" advertiser.

Wednesday, January 18, 2017

Mozilla the Pro-Privacy Brand

Mozilla's pop-up "Internet Health" store in NYC
Mozilla--known for its Firefox browser and other digital products--identifies as a pro-privacy brand. To reinforce that association with its brand, Mozilla and the Tactical Technology Collective recently partnered on a pop-up store in Little Italy in Manhattan. 

The Glass House, as it was called, welcomed 10,000 visitors in 17 days and offered thought-provoking, artsy exhibits, not to mention specific instructions for protecting privacy and security online. Mozilla's CMO explained:
The Glass Room is part of a global movement raising awareness for internet health.
Mozilla has been raising awareness of digital privacy and security concerns for years. Its website hosts a portal of information about how individuals can protect themselves online. You can click here to read more.

Sunday, January 15, 2017

Amazon vs Legacy Retailers

Legacy retailing continues to look for ways to compete as Amazon innovates in online retailing. Walmart, the world's largest legacy retailer, is cutting corporate jobs to get leaner. It's also reorganizing its e-commerce leadership while it integrates its acquisition of grocery retailer Jet.com.

Above, two news releases from Jet.com's "press" section, showing the acquisition just weeks after Jet celebrated its first anniversary last year. In fact, Jet.com has itself acquired an e-commerce firm known for online shoe retailing in competition with Zappos.com (which is owned by Amazon, of course).

Meanwhile, Amazon is expanding--on a large scale. It recently announced plans to hire 100,000+ employees during the next 18 months. The book industry is coming full circle with Amazon's plans to open additional Amazon bookstores. Which means that the innovator that disrupted book retailing is now joining brick-and-mortar retailing, a very different industry all these years later now that consumer behavior has evolved.

Sunday, January 8, 2017

More Legacy Retail Woes

Legacy retailing (aka brick-and-mortar stores) continues to have difficulty meeting the challenges of online shopping.

The Limited--one of the original mall-based women's specialty chains--has just closed its 250 stores from coast to coast and will sell online only. Founded more than 50 years ago, the Limited at one time had hundreds of mall stores and was hugely popular, but that was before the Internet. The retailer's private equity owner said in a statement: "In an increasingly challenging environment for mall-based retail and women's apparel, we are very disappointed that the company has had to make the difficult decision to close its retail locations."

Sears also made an announcement this week: It's selling the well-known Craftsman brand to competitor Stanley Black & Decker. Sears was one of the pioneers of catalog shopping in the 19th century, and Craftsman is one of the three brand jewels in its crown (along with Kenmore and Diehard). Selling a crown jewel to raise money will likely only postpone the inevitable. Sears has been trying for years to strategize its way out of an expensive legacy retailing situation. Sears is closing yet more stores, having already agreed to rent parts of open stores to other retailers (like Primark). 

Macy's announced that it's laying off 10,000 workers and closing 100 stores after a worse-than-anticipated holiday season. The company stated that the stores being closed were "unproductive or are no longer robust shopping destinations because of changes in the local retail shopping landscape."

What is the future of legacy retailing in a world where consumer behavior is evolving along with technology? More posts on that topic soon.