Want To Bet?

Golfsmith does, the nation wide golf and tennis retailer is promising to refund consumers the amount of money they pay for a TaylorMade driver if Spain's Sergio Garcia wins The Masters next month. Here is the catch, you must purchase one of three top of the line Taylor Made drivers, Garcia's major sponsor, by a certain date.

Did I mention that the drivers cost between $300 and $400? If Golfsmith does have to pay it would cost them a tune of $1,000,000 for every 3000 drivers sold, needless to say Golfsmith has taken out an insurance policy just in case he wins.

It is a fairly safe bet for Golfsmith however, Sergio is 0 - 41 lifetime in majors and usually performs the worst in The Masters. TaylorMade has no connection with this except sponsoring Sergio and any buzz that is created through this promotion.

Should TaylorMade be happy with this promotion? TaylorMade prides itself on being the number one driver in golf and if Sergio does not win does that tarnish the brand? Soon they might be able to say they are the number one driver in golf who never wins. How could TaylorMade make this a positive brand building experience?

See A Pot Hole...Just Call KFC?

As you are driving around the cities you say the person sitting next to you in the car " I wish someone would do something about these pot holes!" By the time you finish your sentence you notice a crew up ahead working on the pot holes. As you get closer you notice that one of the workers looks like a person you have seen on TV. Then you notice and exclaim "It's Colonel Sanders from KFC!"

In an unusual cause-marketing push, KFC is tackling the pothole problem in Louisville, Ky. in exchange for stamping the fresh pavement with "Re-freshed by KFC," a chalky stencil likely to fade away in the next downpour. Read the complete article here.

What a great concept that will get people to stop, look, remember and go back to look at when they drive down that street. I am surprised that Louisville is allowing this. What does the Highway Beautification Act have to say about this? Further more once the Colonel is done working and "refreshing pot holes" will you even notice it? Bottom line is this, short term it is awesome, unique and definitely a purple cow. Long run I have to question it. Do you think is this a good or bad idea?

Is there hope?

Maybe customer service with in the airline industry isn't as dead as I thought. Look at the peoples faces and posture change as this flight attendant puts a new twist on pre-flight instructions. You can honestly see the mood lift among the passengers especially when you watch the seasoned business travelers in the front rows. Southwest Airlines gets it and you have to appreciate the shot thrown at their competitors because it is completely true. How do we get other industries to catch onto this noble yet basic idea?

Glass So Clean It Is Invisible?

Here is a great example of how effective guerrilla marketing can be. Hire three people for a weekend and have them walk around a city (Chicago) pretending they are holding glass that is "so clean it is invisible." What a great way to tell your story about your brand instead of the same old boring demonstrations. I love how people in the video are stopping, watching, smiling, video taping, and photographing this low cost high appeal glass free promotion.



Even though I love this concept I have to wonder...will this motivate you to purchase Windex the next time you are out of glass cleaner when an available substitute is sitting right next to it for a lower price?

Lets Do The Math

Have you stopped at Caribou lately?

Often I like to get a mocha and a muffin. The latest promotion the barista, err employee will counter and say would you like to make that a large drink and get the pastry for just a$1.

Lets do the math


Small mocha - $2.90
muffin - $1.95
TOTAL: $4.85


Large mocha - $3.90
Muffin - $1.00
TOTAL: $4.90


What's the up sell and profit of that? A mere $.05? Is this a good idea for Caribou?

On another note, the free shot of espresso promotion when we "spring ahead" is a great idea and a great example of viral marketing. Truly an awesome low cost high appeal promotional idea.

Should We Show Them The Money?

Should the state of MN fund a Vikings stadium this season?

We have federal stimulus money coming that is to be used to create new jobs. A new stadium started this fall would create consistant jobs for two-three years. Look at the Twins & Gophers stadiums and how many companies they used and the number of people hired. Couple that with a few new road projects.....

Are You Kidding Me???

Have you seen the commercial for a new frozen entre free from Kashi.com?

So being the dork marketing guy I went directly to Kashi.com and signed up for it. I liked the spot and it made me go to the site and sign up. I look forward to trying this new product.

Here is where it gets good – I went to send a comment to the folks at Kashi and when I click the topic under FAQ and it simply tells me, at this time we are unable to accept ideas or comments from outside of Kashi. Our professional research and development team are constantly working to improve…..

Really – are they that CA arrogant to NOT accept comments from their consumers? I am truly shocked that a company such as Koshi does not accept comments. In this day and age shouldn't they want to know what their customers think especially since they use a market skimming pricing strategy with plenty of available substitutes?

SuperModelquins???

This is wierd, creepy, different but yet I am talking (blogging) about it...so it must be effective. Make sure you watch the "premier episode" located in the lower left corner.

Go Check this out. http://www.oldnavyweekly.com/

Where is the value?

Hyundai's latest ad campaign informs customers if they are having a difficult time making payments they can defer for three months. If times are still tough you can return the car.

So where is the value in returning the car? Don't you still need some sort of transportation to interviews or even to buy groceries?

What do you suggest they do...

In a recent interview in Brand Week the new CMO of Chipotle, Mark Crumpacker, made some interesting points about their customer and the task at hand.

1. Most Chipotle customers always order the same thing "That’s something I’d like to change with our marketing. I can tell you I like my new carnita bowl better than I like my chicken one" How should they do this?

2. "We found that people are coming to Chipotle because they love the food, which is great. But we found that they are not using the fact that we spend a lot of time and effort on making all of our food as sustainably and naturally-raised as possible. We all assumed that that was a big driving factor. Even people who were coming to Chipotle for a long time, they appreciate it, but it’s not the reason they are coming in. They just love the way the food tastes" Should they stop promoting their form utility?

3. "We can give them new things to talk about. It’ll be more along the lines of, ‘Oh, did you know Chipotle is doing this? Did you know they’ve got all these great things going on?’ We’ll be spending a significant amount of our energy in terms of ramping up those conversations that consumers are having." What could they do, that they are not doing now to give customers more reasons to talk about Chipotle?

Is Failure An Option...

In an economic crisis, the weak die first. So it was no real surprise that the first sports casualties of the current recession came from minor professional leagues: Last month the WNBA shuttered its premier franchise, the Houston Comets, and the Arena Football League, which had been scratching out a living since 1987, canceled its 2009 season. (The LPGA is cutting three tour stops and $5 million in prize money from the 2009 tour, so they're feeling the pinch, too.) Click here to read the entire article.

The question is, were these failures part of a normal, recessionary, thinning of the herd? Or were they the early warning signs of a pro-sports bubble that may be about to burst? Who is next? What should pro sports teams be doing to overcome this?

They Don't Get It Anymore...

Starbucks is in the news again in attempt to get same store sales back on track. The company is considering offering a value menu along with rolling out instant coffee. I find this humorous, since Howard Shultz, CEO in the past has said he does not see McDonald's as a direct competitor...hmmm? I have always admired Starbucks for trying to be the leader in new product development but in the current economy people want to see more value in their $3.00 cup of coffee. Starbucks is going to attempt this by selling instant coffee which will cost about a dollar a cup for $2.95 for a pack of three where one can but a 30 cup can of Folgers for $2.65. Click on the links above and read the articles for more information.

Do you think Starbucks "Gets It" anymore? Selling a $1 cup of coffee, what will that do to the Starbucks brand? Is it better to be developing more products instead of offering promotional discounts? Should they be offering better promotions with more value before they lose even more customers to McDonald's and their $0.67 coffee. In times likes these how do luxury brand companies hold on and maintain their customer base especially when there are so many available substitutes? I would love to hear your thoughts

See if you can spot the celebrity...

How to sell anything

Less cookies or higher prices?*

Even the Girl Scouts or America have tough decisions to make. A recent article on CNN reports people will find one to four less cookies per box this year. So instead of raising the price on a $3.50 box of goodness you will get two to four less Thin Mints. From cookies, to laundry detergent to cereal to baby formula a lot of companies are practicing raising prices by lowering quantities. Sure, I understand they are trying to shift the supply curve to right but are they also trying to get the customer to purchase their product more often?

What other products have you noticed this trend of reducing the size but keeping the price the same?

Would you rather have the same price but lower quantity or a higher price with a higher quantity

Another great example of public relations for a terrible product

I can not believe this product actually got this type of positive PR.

Click here to see what I mean.

A glass and a half full commercial

An advertisement from the UK. Very creative and the balloon is the best part.

NEW CORPRORATE LOGOS JUST RELEASED...

A humorous sign of the times...

You would think they would be doing better...

Late last year ebay decided to change their pricing stratagy. The result is explained below. It also clearly demonstrates what happens to a product/service when they have an available subsititute such as Craig's List.

From the Wall Street Journal
-------------------------------------
EBay Inc. reported a 31% slump in fourth-quarter profit and the company's first quarterly revenue decline, as the online seller struggled with one of the worst environments for consumer demand in decades.

Revenue fell 6.7% as shoppers pared holiday budgets and shifted away from eBay's core online auctions. And eBay indicated that conditions remain uncertain in the current quarter, issuing ranges for revenue and profit that are below estimates on Wall Street.

While eBay said its online payment and communications units grew, revenue in its core marketplace business -- which accounts for 55% of revenue -- declined 16%. The company attributed the drop to the strengthening dollar given the company's large international exposure, and the global slowdown during a crucial shopping season.

But eBay, the largest online retailer by volume, also appeared to lose some ground to fixed-price sites such as Amazon.com Inc., some analysts said. "EBay is losing market share compared to other e-commerce players like Amazon," said J.P. Morgan analyst Imran Khan. "They still have a lot of work to do."

Shares of eBay fell 6.5% to $12.41 in after-hours trading, erasing gains made earlier in the day. The stock traded on the Nasdaq Stock Market at 4 p.m. at $13.28, up 73 cents.

EBay profit dropped 31% as CEO John Donahoe's turnaround skidded.
John Donahoe, who has been eBay's chief executive for a year, said he was pleased with the progress the company has made to turn around its flagging marketplace business. "The changes are not working fast enough, but we are on the right path," he said.

He also emphasized that the faster-growing nonauction portions of the business are becoming as significant as the traditional core eBay business. "In the future, if we connect the buyer and seller through an ad, that is as good as an auction," he said.

For the past year, Mr. Donahoe has pushed for eBay to sell more fixed-price goods and changed the company's fee structure. In the fall, eBay said it would lay off about 1,000 full-time employees, or 10% of its work force.

For the fourth quarter, eBay reported earnings of $367 million, or 29 cents a share, down from a $531 million, or 39 cents a share, a year earlier. For the fourth quarter, revenue was $2.04 billion, down from $2.18 billion.

A classic example of how to use public relations and the media

Starbucks' campaign to promote volunteerism (and store traffic) got a huge bump today from no less than Oprah Winfrey -- and by extension, Barack Obama.

Starbucks' 'I'm In' spot is set to air on CNN, and CNN Headline News, as well as a variety of NBC platforms.

The talk-show host talked up the java giant's "I'm In" campaign, which encourages consumers to pledge five hours of community service before the end of the year. Those who commit to doing so at Starbucks between now and Sunday will be rewarded with a free coffee.

Ms. Winfrey also encouraged Americans to help the chain double its goal of 1 million hours pledged on the coffee company's site, pledge5starbucks.com. The "Oprah effect" already seems to be working: According to the site, about 350,000 hours were pledged by this afternoon on the East Coast.

Below is the Oprah segment, be aware that this a just a little politically slanted.


Do you think this will work? I think this a great example how to use public relations to push sales but outside of going in and signing up to get my free coffee this will not make me want to go back and pay $4 for another cup.

Maybe it is not the economy...

After 10 years, Pepsi-Cola Co. is splitting with soccer star David Beckham in what was described as a mutual parting. But the decision to walk away from Mr. Beckham, coming on the heels of a disappointing, injury-riddled stateside debut season with Major League Soccer's Los Angeles Galaxy, raises questions over whether the soccer celeb's marketability is fading along with his footwork. Since he inked a deal with Major League Soccer in 2007 that could be worth as much as $250 million over five years, Mr. Beckham has also parted with Gillette. He has global deals with Adidas and Motorola; the latter pact expires in June. See full story at http://AdAge.com

Are Beckham's 15 minutes of fame over? What major sports and entertainment marketing figure is next?

The gift that keeps on giving...A Suggie?

When I first saw this ad I thought what a cute and sort of clever idea...the second half of this ad I began to wonder if this a SNL commercial. So if you need to make this a December to remember then buy that special person a Snuggie.

Click here to see what I mean

I would love to see this companies profit and loss statement after this holiday season.

Has another bubble burst?*

The NFL is having problems...


And so is my beloved marketing geniuses Nascar...




And to top it off...

Can you drive really fast around tight corners? Do you lose your temper and burst into tears when other drivers cut in front of you? If you answered yes to both questions, NASCAR might want to hear from you.


The motor racing sport could do with more exciting, emotive personalities, NASCAR Chief Executive Brian France told reporters at the Reuters Media Summit in New York. Read More



I really hope they do not take the direction France wants them to go, besides they became a big business because of the ability to relate to the fans, having emotional drivers will make sports center but they are already on it for being good people. The last thing we need is hot headed morons driving 200 miles per hour. And with sponsors pulling out now, can you imagine how fast they will be pulling out if they do go this direction.


Which leads me to my next point, do you think the golden age of sports marketing is coming to an end? How viable of a vehicle is sports marketing especially when more and more companies are starting to spend less and less in sponsorship? Is it because of a lack of return on investment?

Sure we are talking about it...*

Will this make you want to switch from McD's, Wendy's or where ever to the Whopper? What kind of return on investment could BK expect from this? Is it worth the implicit and explicit costs of running the ad?

Selling The Sizzle Not The Steak

The roller-coaster stock market and plunging housing prices have left many consumers afraid. In response, marketers are adopting a softer approach to peddling their products, playing up comforting images in their ads and focusing on family and the warmth and safety of home.
Some marketers are even reviving old advertising to remind consumers of happier times.

Click here to read the article

I like how the article points out how brands are trying to become more soothing. I find it funny that in "hard times" brands and businesses go away from the greedy sales approach while moving to more of a marketing oriented approach in their message. Shouldn't it have been this way all along? It has been for Nordstrom's, Sun Country, etc... What are some examples, other than what was mentioned in the article. you can think of where companies are changing their message trying to create a "softer approach" to their customers wallet?

Would you rather...*

iPhone in Walmart???

That is correct, after this holiday season AT&T iPhones will begin being sold at Walmart. Click here to read the entire story. This move by iPhone makes me wonder...Will the iPhone brand lose its impressive status now that it is sold at Walmarts or will become stronger? Which is better sell your phone at Walmart or sell your phone through all other wireless communications providers such as Verizon and Sprint? Finally by going to a more intensive distribution model is the writing on the "wal" for the iPhone, haven't we seen this before?

Super Bowl Sneak Peak

Want to see who is going to be in the Super Bowl click here

Do you believe Brian Williams?

If you are into technology then you have to watch this!!

Who Could Ever Think This Is A Good Idea???

Click here to see what I mean...I do not even know where to start on this one.

A "Purple Cow" Sighting

Have you heard the one about the woman in California who is unemployed and frustrated with her job search so she purchases iron on decals and puts her cover letter and resume on her shirt?

Kelly Kinney did just this when she saw a guy in line with a T-shirt and thought, ‘People pay attention to things they read on T-shirts,'" Kinnney said. She turned her resume and cover letter into two iron-ons that she put on a white T-shirt. "I'm in marketing. I have to do anything I can to get noticed," she said.

I have a hard time seeing her getting a dream job using this approach, but I have to give her credit getting the attention of others. Do you think others will follow her lead? What is too far? Will possible future employers even take her seriously when they stand behind her at the grocery store or any other line that she is?

Read the full article and share your thoughts.

http://www.the-signal.com/news/article/6526/

A more competitive product or a slimmed down product mix?

GM is considering cutting Pontiac, Saturn and Saab in order to save money? Begs the question – when companies merge what benefit is there in having more than one vehicle that are similar within the same company?

Example:

Chevrolet Traverse / Satrun Outlook / GMC Acadia / Buick Enclave – all four are crossovers and have virtually the same features are built on the same chassis – so why make four versions of the same thing? Why not just one model with all the different levels of features?

Owning the holidays

MACY's 2008 windows shows how even if the consumer is going to spend less, just get them to come to your store which in return will allow you to get them to spend. I am suprised that more stores do not do this. Although Target is going to own downtown Minneapolis this winter with the Holidazzle Parade. What retailers do you think need to take this type of approach? What should they try to own?

TIger and Buick = No More

General Motors Corp. is ending its relationship with its most visible endorser, golf superstar Tiger Woods, citing the difficult economy as well as Mr. Woods' desire for more family time as he and his wife prepare for the birth of their second child. The automaker had a nine-year relationship with Mr. Woods, arguably the biggest sports endorser in the world. Mr. Woods made several commercials on behalf of GM products and also played as often as he could in the Buick Open tournament each season in Grand Blanc, Mich.

Beyond this, it has been noted that since Tiger became the spokesperson for GM the average age of customers buying Buicks dropped 10 years in the short period that he has endorsed them.

If the GM is truly hurting why would they drop a celebrity such as Tiger who stands for performance, quality and status. Isn't this what every type of car dreams to be?

In my opinion just another poor decision for a very complacent, status quo company / industru

Michael Phelps and Subway...huh?

Below is an article regarding Michael Phelps and a new sponsorship / endorsement. Do you think Subways campaign will be a success or failure? I think they have a major credibilty issue since Phelps pronounced his love for McD's in August. Let me know what you think.

---------------------------------------

If there was one thing Americans learned about Michael Phelps during his history-making eight-gold-medal run at the Beijing Olympics -- other than that he can swim really, really fast -- it was that he really, really likes McDonald's.

With the Phelps deal, Subway intends to use one of McDonald's most famous admirers to steal its market share.

At a press event before the games, the in-training Olympian revealed he'd been on a double-cheeseburger kick. Newspapers all over the world noted his Arches-fueled 10,000-calorie-a-day diet. Then, in an interview with CNBC, his agent, Peter Carlisle, said: "If there's one deal [he's wanted], he's always said it'd be McDonald's. ... The truth of the matter is you can't stop the guy from eating the food." So, how, then, did Mr. Phelps wind up signing a major, long-term endorsement deal for Subway, one of McDonald's fiercest and fastest-growing rivals? It makes about as much sense as Nike's Michael Jordan professing a love for Reebok. Mr. Carlisle begs to differ. "The difference is that Michael Jordan only played in one brand of shoes, while Michael [Phelps] has consistently been forthcoming about his love for a variety of different foods and a variety of different quick-service restaurants," he said. "There was tremendous interest in that category well beyond McDonald's and Subway." 'More of a partnership'Subway prevailed, Mr. Carlisle said, because it offered "more of a partnership and less of an Olympic program," and also because its fast-growing presence and ambitions in Europe and the U.K. dovetail with Mr. Phelps' own ambitions to promote the sport of swimming in advance of the 2012 London games.

Also a factor, Mr. Carlisle said, was the Subway brand's more-healthful image. While Mr. Phelps could have "easily" done a deal with McDonald's that focused on its more-healthful offerings, Mr. Carlisle said, "there are differences between the brands [regarding perceptions of healthfulness], and they were taken into consideration." Those considerations appear to have become more pronounced after Mr. Phelps was criticized following a major deal with Kellogg that put his face on Frosted Flakes boxes. (Wrote MarketWatch: "Suddenly a newly minted celebrity had betrayed America's impressionable and overweight kids, who will doubtless now line up at the local Wal-Mart to buy pallet-loads of sugary non-fibrous crud.") Mr. Phelps may have been reluctant to take on the similar barrage that inevitably would have accompanied any McDonald's deal, though Mr. Carlisle said that was not a factor in his decision.

Whatever the reason, Subway now intends to use one of McDonald's most famous admirers to steal its market share. "McDonald's is Goliath, and we're David," said Tony Pace, chief marketing officer for the Subway Advertising Fund Trust. "Fortunately I have a pretty good slingshot." Mr. Pace said he expects ads starring Mr. Phelps to subtly refer to the swimmer's well-known burger habit. Mr. Pace said he could forsee a commercial with pitchman Jared Fogle and Mr. Phelps together, one with a healthful foot-long and the other with several foot-long sandwiches. "And Michael might say, 'I need to eat more than you do, Jared,' and Jared could say, 'But at least I've got you eating right.'" A McDonald's spokeswoman declined to comment on the extent of its attempt to strike a deal with Mr. Phelps. In a statement, she said: "We enjoyed a very positive working relationship with Michael, particularly at the Summer Games in Beijing. As a top Olympics sponsor, we wish Michael and all the Olympics athletes the best in their future endeavors."

The "BEG" Three

I have a real hard time believing that we need to save the automobile industry. First, would you go to a bank and ask for a loan but not have a dollar amount rather say it is substantial? Second when you go to a bank for a loan would you spend $20K for your trip to the bank instead of paying a much lower amount which gets you there just as conveniently?

Here is my two cents on what should happen. First of all the automotive industry should not be bailed out. This will do two things 1. It will bust the union which will ultimately shift the supply curve to the right for the BEG three. Second it will force the BEG's to develop a more competitive product. Sure there will be job losses from suppliers but that will only make them create a more competitive product. As for the union, it needs to be broke and the union members need to find a way to make them more competitive instead of being complacent and inefficient. I never wish anyone the fortune of being laid off but if you are you need to realize there is no difference between selling brake pads and selling your self to a potential employer. I agree Unions in the past were good but now in this economy do nothing but protect the weak and hurt business practices...think about is Wal-Mart asking for a bail out?

Finally another note, why did (the US Government) act so quick on the banking industry? Even with the bail out they are still failing with stock falling 20 some percent yesterday.Shouldn't they be required to make a more competitive product?