Crowdsourcing for Marketing

In recent years, one of the highest profile crowdsourcing platforms for consumer products was Quirky. Now the site is under new management, and its platform is being revamped and relaunched.

How else are marketers identifying new product ideas and inventions via crowdsourcing?

• Innocentive is a site where companies, nonprofits, and government groups can "challenge" the public to solve specific problems that will lead to new goods or services. At left, the header for Cleveland Clinic's page on Innocentive, below which are listed a number of specific medical "methods" that the organization sought innovative ideas for. Corporations also post needs and problems for Innocentive users (from around the world) to consider and submit suggestions.  
• Some entrepreneurs post on their sites or blogs or social media to attract crowdsourced ideas. Emily Weiss put a post on her digital beauty magazine asking readers about their ideal face wash. She received hundreds of responses and used the input to create and launch Glossier Milky Jelly Cleanser. 
• Sir Richard Branson has hosted the entrepreneurs behind the idea-sourcing site Ideapod, where consumers can post ideas on various topics. A cross between Twitter and YouTube, Ideapod can connect companies and consumers through posts of a limited number of words and videos of a limited number of seconds.

Beyond new products, many marketers are crowdsourcing content, such as the tried-and-true contests that have resulted in memorable Super Bowl ads. For 10 years, Doritos ran its "Crash the Super Bowl" contest and put the winning ads on the air and online. This year's contest was the final one, however, with not only a huge reward but also the chance to work with director Zack Snyder on a future project.

What Do Companies Say About Their Mission?

Not every company has a mission statement publicly available, but most major corporations post a vision and statement of values for the world to see. Here are some samples of what big companies say about their mission, which in turn drives business strategy, marketing management, and every aspect of operations.

Procter & Gamble writes about its vision this way: Our Purpose unifies us in a common cause and growth strategy of improving more consumers’ lives in small but meaningful ways each day. It inspires P&G people to make a positive contribution every day. Our Values reflect the behaviors that shape the tone of how we work with each other and with our partners. And Our Principles articulate P&G’s unique approach to conducting work every day.

Unilever writes about its purpose and vision: Our Corporate Purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact." Unilever is committed to supporting sustainability and providing our consumers around the world with the products they need to look good, feel good and get more out of life.

Starbucks writes about its vision: To inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time. With our partners, our coffee and our customers at our core, we live these values: [culture of warmth/belonging, courage to challenge status quo, transparency and dignity, accountability]. We are performance driven, through the lens of humanity.


L.L. Bean writes about its values: The values that the company's founder, L.L. Bean, was raised to believe in were simple and deeply ingrained. Nature is something to be revered. Family ties are a priority. Being neighborly is a matter of course. And "do unto others" is not just a saying, but a way of life.

McDonald's writes about its values: Everyday all around the globe, McDonald's is putting people, processes and practices into place to make better food, more sustainable sourcing, happier people, a stronger community and a healthier planet.

PepsiCo writes about its mission: As one of the largest food and beverage companies in the world, our mission is to provide consumers around the world with delicious, affordable, convenient and complementary foods and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages to evening treats. We are committed to investing in our people, our company and the communities where we operate to help position the company for long-term, sustainable growth.

Burger King Wants to Be Hot Dog King?

Burger King recently announced the addition of a new menu item: hot dogs, available in two variations. One is "classic" with relish and other garnishes, the other is a chili-cheese dog.

So far, the fast-food firm says its test-marketing showed customers are adding dogs to their orders, not substituting dogs for burgers or other items. "It was the biggest market test that we ever did," explains the North American BK president.

In other words, this is a top-line revenue generator, and possibly a traffic-booster (at least in the short term). Plus the dogs will be supplied by Oscar Mayer, which has to be a brand boost.

Given how few national chains offer hot dogs, Burger King may see this as a way to differentiate its menu and offer a staple item that appeals across demographic groups. But given the trend toward healthier eating, adding grilled dogs is a counter-intuitive idea that might work out because it isn't "on trend."

Super Bowl Ads: Lots of Celebs and Animals and Humor, Also Some Duds

SUPER BOWL 50: ADS 

Although the most excitement of the evening was on the field as the Denver Broncos stomped the Carolina Panthers, many viewers tuned in to see the ads as much as the game.

Critics gave this year's crop of Super Bowl ads a mixed reception:

• The New York Times said the ads mostly played it safe, using well-known celebrity power to attract attention and a zoo-full of animals (the famous Clydesdales, plus assorted doggies, a puppy-monkey-baby character, and more).
• USA Today's top pick was Hyundai's humorous ad featuring a dad tracking his daughter and her date. 
• NPR liked Heinz's weiner dogs and Honda's singing sheep as the top animal-driven ads.
• Chicago Tribune liked the weiner dogs but didn't like the constipation ad, LG ad, or puppy-monkey-baby ad.
• Advertising Age liked puppy-monkey-baby and Avocados from Mexico, among others. 
• Adweek didn't like the constipation ad, Rocket Mortgage, PayPal, Skittles, and LG's ad. 

In keeping with the upbeat spirit of the night--underdog beats favored team--I enjoyed the Coca-Cola ad, featuring buddy-buddies Ant-Man and Hulk. It has 2 million YouTube views and counting.

Super Bowl 50: Super Ads?

The pressure is on advertisers to, well, not drop the ball during the Super Bowl. “You want to make sure you're representing your client's brand in the best way possible,” says the head of the ad agency that produced Kia's Optima ad (starring Christopher Walken, above). That means delivering a memorable ad that adds to the brand's reputation or buzz, no lawsuits in sight.

This is a milestone year for the football championship. Will it be a milestone year for bowl ads? Already, marketers are sizing up the size of their response by releasing ads online ahead of the game. CBS is even touting the ads to be posted on game day and promising a fan vote finish for audience involvement.

For insights into how behavioral science is applied in Super Bowl ads, take a look at this fascinating Ad Age piece. And don't forget the perennial approaches that have attracted viewers in the past, such as "see our banned ad."

On Sunday, which ad will score the most audience touchdowns? Which brands will do the best in social media?

Back to the Retail Future: Will Amazon Invest Heavily in Stores?

One reason Amazon can charge such low prices is its relatively low overhead compared with brick-and-mortar stores. No rent, no large employee roster, no fixtures, no electricity. Amazon just posts a photo and description of the merchandise and patents its 1-Click purchasing process. As orders pour in, Amazon can mine the data and use the analysis to plan future marketing initiatives. Slim profit margins work fairly well in this situation.

Last year, Amazon opened a real book store (shown above) stocked with books rated by customers as 4 or 5 stars, plus Amazon's branded gadgets (Kindle for instance). The idea was to study in-store customers, analyze their buying patterns, gain experience with visual merchandising, and see how different products do in the store.

Now Amazon is reportedly looking at a serious store-retailing presence, maybe in malls. Of course, having devastated the retail book business, Amazon's competitive situation is quite different if it enters traditional store retailing in a serious way.

Online, Amazon is such a powerhouse that other retailers are testing different ways to compete online and off-line. One example is the testing of click-to-buy and collect the package free at the store as a way to compete with Amazon, even though that sometimes raises costs and slices margins. Other competitive moves include the use of apps to speed shopping and improve convenience.

If Amazon moves into a nearby shopping area, the competitive landscape will change drastically. Again.

Marketing Barbie's Latest Makeover

Iconic Barbie, the doll beloved by boomers and still on toy-store shelves after more than 50 years, is getting a needed makeover. Despite her high fashion forays, and several museum displays devoted to her fashionista variations, Barbie has been criticized for her unrealistic, ultrathin body type and shaped feet that fit only in high heels. 

Facing increased competition from many other dolls, sales of Barbie dolls dropped 20% from 2012 to 2014, prompting parent company Mattel to add new diverse product variations for 2015 (a wider range of skin tones and hair styles).

In 2016, Mattel has introduced even more faces and shapes to update the Barbie product line. Barbie now is short or willowy, slim or curvy, to appeal to a wider target market and better reflect the diversity of the toy buying public.

Some of Mattel's Barbie ads in the past year have emphasized the aspirations of girls, aiming to associate the brand with dreams of career possibilities. Other ads focused on fashion and expressing individuality. Will Barbie's latest marketing makeover reverse the sales slide?

More about Marketing to Millennials

So many marketing plans target Millennials that it's worth looking at some recent research about this key market segment.

• As shown in the Pew Research data at left, Millennials have a very positive view of the role of small businesses in America, and the role of technology firms. Millennials are, like the rest of the nation, not as positive about the upside-impact of national news media.

• Millennials are using their ever-ready smartphones for all kinds of functions, not just selfies but of course mobile banking as well.

• Loading prepaid cards with money to spend is another Millennial behavior. 

• Eating out -- but at distinctive fast-casual places -- is part of the Millennials' routine.

• Personality is a big part of the appeal to Millennials when they consider foods and beverages. No big, boring, bland corporate stuff backed by conventional advertising, please.

When Will the Shakeout Hit Mobile Payment Systems?

Innovative technologies bring a messy beginning to industries, as entrepreneurs tinker in their garages (literally, in many cases) and start businesses to commercialize their products. Think of the car industry, where 253 auto manufacturers operated in 1908. Or the computer industry, where in the 1970s, big names included Wang, Apple, Tandem, Commodore, even Tandy Radio Shack.

Apple Pay

In every case, a shakeout reduced the ranks and consolidation brought the strongest survivors together. For cars, the shakeout began in the 1920s: By 1929, only 44 automakers were in operation--and the Great Depression of the 1930s narrowed that number even further. For computers, the revolution came in the form of IBM, which introduced its personal computer in the 1980s. Brand proliferation continued for a time, but soon the high cost of entry and competition prompted brand after brand to either drop out or be acquired. Same pattern in TVs. And on and on.

So when will this pattern emerge in mobile payment systems? Not in 2016, but soon, IMHO. A key element will be what the biggest brands are doing. For instance, Apple Pay has many bank and retail partners, it's high visibility, and it's concluding deals to launch in more countries. In other words, Apple will be a major factor in shaping this industry's immediate future.

New entrants continue to announce their own mobile payment systems. Walmart recently launched Walmart Pay, which operates through its Walmart app. The world's largest retailer is also participating in a mobile payment program devised by a group of retailers. JP Morgan Chase has Chase Pay scheduled to roll out this year. Target is in the same retail group testing mobile payments as Walmart, but it also is mulling a proprietary system.

Meanwhile, tech standards are in flux, consumers have a LOT of choices, and the roles of various players (banks, retailers, card issuers, telecoms, chip manufacturers, etc) aren't yet settled. Consumer acceptance of mobile payments continues to be relatively slow, in part due to security concerns and the multiple systems competing for adoption.

So no shakeout yet, but consolidation will happen sooner rather than later. And when it does, it will disrupt the marketing plans of every participant (while it shapes the behavior of consumers). Get ready!

Slower PC Sales as Buyers Stay Mobile

iCharts

Sales of desktop computers and laptops actually dropped in 2015 as consumers and business buyers continued their migration toward mobile devices like smartphones and tablet computers.

Projections had previously indicated this trend would gain traction in 2015. Another reason for lower PC sales is that buyers are holding onto their equipment longer than in the past.

Above, IDC's chart of how the top five PC companies were doing in terms of market share, quarter by quarter from 4Q 2014 through 4Q 2015.

IDC also said there was growth, but only single-digit increases, in smartphone sales around the world during 2015. Still, the iPhone is also a worldwide winner, with many brand fans in China boosting Apple's sales in that market.

Even tablet computer sales weren't blazing hot, in part because of product line proliferation--meaning more choices, such as detachable tablets, hybrids, and larger smartphones that, in essence, double as mini-tablets. Decisions about which operating system to choose--Apple's iOS, Android, Windows, etc--complicate the buying process for many consumers and businesses.

When consumers buy fewer digital gadgets, retailers feel the fallout. H.H. Gregg, for instance, saw holiday revenues drop compared with the previous year, due to lower PC and tablet sales. Suppliers of accessories (such as cases, power cords, etc.) also feel the fallout, although they still attract buyers who need replacements for existing equipment.

If you're writing a marketing plan for a company that supplies this industry or a reseller that stocks such products, consider the trends and likely impact on your marketing situation for 2016 and beyond.