2008 May | money news blog

30 05 2008

Live Nation teams with Facebook to sell concerts

Posted by: in Marketing and Advertising

Filed under: Products and services, Consumer experience, World wide web, Apple Inc (AAPL), Marketing and advertising, Media World

Live Nation (NYSE: LYV) has secured a deal with Facebook and created an application for the social-networking site to sell concert tickets and promote concerts that may interest users. In addition, according to Variety, the application brings the “My Live Nation” global concert search engine into Facebook and allows users to sync the new application with their music library to receive concert updates automatically. Wired reports that the Live Nation application does not, however, link directly with your Apple Inc. (NASDAQ: AAPL) iTunes library or another third-party program, instead giving the user the option of pointing toward a library or not.

It’s no surprise that one of the largest concert promoters has moved in with one of the top social-networking sites. Given that Live Nation is no stranger to wide exposure, the number of users on Facebook who may already be familiar with the promoter is prone to be significant. Instead, the aspects of Live Nation’s application that grant users to share upcoming concerts and shows they’re either attending or would like to attend should increase awareness of local and regional concerts — at least on Facebook.

Not a bad idea in the end, even if it is some form of viral marketing like the cited Wired and Variety articles claim. It’s not like Facebook isn’t already being used to market and sell music in other forms; the TuneSocial program basically advertises albums users are listening to, and iLike streams tracks that users enjoy. Live Nation offers the next logical step with concerts but directly connects users with the capability to buy tickets and boast or share with friends.

30 05 2008

Live Nation teams with Facebook to sell concerts

Posted by: in Marketing and Advertising

Filed under: Products and services, Consumer experience, World wide web, Apple Inc (AAPL), Marketing and advertising, Media World

Live Nation (NYSE: LYV) has secured a deal with Facebook and created an application for the social-networking site to sell concert tickets and promote concerts that may interest users. In addition, according to Variety, the application brings the “My Live Nation” global concert search engine into Facebook and grants users to sync the new application with their music library to receive concert updates automatically. Wired reports that the Live Nation application does not, however, link directly with your Apple Inc. (NASDAQ: AAPL) iTunes library or another third-party program, instead giving the user the option of pointing toward a library or not.

It’s no surprise that one of the largest concert promoters has moved in with one of the top social-networking sites. Given that Live Nation is no stranger to wide exposure, the number of users on Facebook who may already be familiar with the promoter is apt to be significant. Instead, the aspects of Live Nation’s application that grant users to share upcoming concerts and shows they are either attending or would like to attend should increase awareness of local and regional concerts — at least on Facebook.

Not a bad idea in the end, even if it is some form of viral marketing like the cited Wired and Variety articles claim. It’s not like Facebook is not already being used to market and sell music in other forms; the TuneSocial program basically advertises albums users are listening to, and iLike streams tracks that users enjoy. Live Nation offers the next logical step with concerts but directly connects users with the capability to buy tickets and boast or share with friends.

30 05 2008

Retailers get fashions to shelves faster — sign of trouble?

Posted by: in Marketing and Advertising

Filed under: Marketing and advertising

A piece in the USA This day reports that top retail chains have improved their supply chain management to get the hot new fashions in stores more quickly before.

Sounds great, right? Maybe not. According to the article. “With the tighter economy squeezing retailers industrywide, several companies have hit on a successful formula for propping up earnings: They’re speeding up the time it takes to get the latest fashions into their stores.”

Obviously increased efficiency is great and there’s nothing not to enjoy about improved ordering, fewer markdowns, etc. But it could be creating a false sense of optimism if it’s allowing for the frontloading of sales. $30 million in sales in the first quarter and then $10 million in the second is the same as $20 million in each quarter: but if you don’t know about the differences in inventory situations, you could have a false sense of optimism at the end of the first quarter.

Time will tell whether superior supply chain management is messing with the distribution of sales throughout the year.

30 05 2008

Go-OO: Stick a fork in it

Posted by: in Productivity

Filed under: Windows, Macintosh, Linux, Productivity, OpenOffice.org, Open Source

screenie

Since before the dawn of time, open source projects have forked more often than Lindsay Lohan cheked into rehab. The Mozilla browser is a great example of a successful fork, it was once based on Netscape, but evolved on its own and eventually rendered classic Netscape obsolete. Many — if not most — forks disappear into obscurity. We aren’t so sure this one will go so quietly.

Go-OO is a fork of OpenOffice that has quite a few impressive features which really ought to be in official OO, but for some reason or another aren’t, such as support for OpenXML, superior Microsoft Binary support, and Word Perfect Graphics support. It also boasts significantly superior begin times — at least on our poorly equipped test machine.

Long story short, this is a fast, lean beast of an office suite with great compatibilty with Microsoft Office. The price is right at $0.00, but as with any community project you’re both welcome and encouraged to donate to the developers for their efforts.

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29 05 2008

Kraft’s Kool-Aid is still hip (and healthy)

Posted by: in Marketing and Advertising

Filed under: Products and services, Consumer experience, Coca-Cola (KO), PepsiCo (PEP), Marketing and advertising, Kraft Foods’A’ (KFT)

Is there anything cooler than Kool-Aid? Kraft (NYSE: KFT) believes there’s, my friends. In fact, Kraft thinks a healthier Kool-Aid is pretty darn hip!

According to this AP article, Kraft wants to position the Kool-Aid brand to health-conscious moms as a beverage that’s okay for children to consume. The food company will be adding vitamin E to one of the Kool-Aid varieties, and it has reformulated its sugar-free lineup to improve the taste. There’s also a new Kool-Aid product on the market called Burstin’ Waters that’s supposed to be relatively healthy.

The company actually has been pretty good about trying to make its products not as junky. As the article says, Kraft introduced an initiative a few years back to create a set of nutritional guidelines that would aid the company in making its portfolio more in tune with the current zeitgeist; indeed, moms everywhere seem to be getting sick of putting sugary, fat-inducing foodstuffs into the stomachs of their kids. Of course, I’m sure kids still get away with eating junk at times (it’s like an inalienable right of the youth); for the most part, though, consumer choices are shifting, and woe be the consumer-goods entity that does not respond. Just ask Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP). Those two have been kicking it into high gear when it comes to alternatives to sugary carbonated sodas. Pepsi and Coke now offer all kinds of waters and enhanced beverages; in Pepsi’s case, many of its salty-snack products are decidedly healthier. Coke purchased VitaminWater last year, and has been doing well with it. And with vitamins all the rage, Kraft would be smart to really promote the heck out of that vitamin-E addition.

From this point on, the public is going to increasingly demand food and drink of a higher quality, consumables that can promote wellness. Kraft needs to sell the public on its new Kool-Aid, especially since, no matter how much improved it is, it still is, well, Kool-Aid. It’ll never be the healthiest thing on the market, but with the right campaign, perceptions can change, and sales can grow. Kool-Aid is still a famous brand, and tiny evolutions like this can help it remain relevant.

Disclosure: I own shares of Coca-Cola; positions can change at any time.

29 05 2008

David Cook’s Billboard success almost matches The Beatles

Posted by: in Marketing and Advertising

Filed under: Products and services, Consumer experience, Apple Inc (AAPL), Amazon.com (AMZN), Marketing and advertising

Like it or not, “American Idol” season seven champion David Cook is off to an impressive start with 11 songs entering Billboard’s Hot 100 chart this week, and 14 songs enter the magazine’s Hot Digital Songs, both records. Billboard notes that the Hot 100 placing is the most any artist has enjoyed on that chart since The Beatles scored 14 hits in 1964. Cook’s record is the first in Billboard’s Nielson Soundscan “era” (i.e. since 1991) and shatters Miley Cyrus’s 6-song debut in November 2006. Cook’s digital debut is also a record and beats out Cyrus again. According to Billboard, Apple Inc. ’s (NASDAQ: AAPL) iTunes Store withheld reporting digital sales until the show had ended.

Cook is also ready to enter the studio, according to E! On the internet. The winner signed to RCA Records, a Sony BMG label, and 19 Recordings for a new album in the fall. E! erroneously calls the new album Cook’s “debut”, when he released an independent album in 2006, but that album and its songs were pulled from Amazon.com (NASDAQ: AMZN) as he worked his way through “American Idol” competition.

Simon Fuller, “American Idol” creator, told E! that he “honestly believes that David has the potential to go on to become one of the most successful Idols of all time.” If early success and an independent album can hold fans until the fall, then Cook will certainly enjoy a huge release. Regardless, “American Idol” winners and finalists albums always seem to do well at first. It’s only later that they lose steam or interest from their supposed fans. Still though, 11 chart debuts is impressive and Cook might never be in the same league as The Beatles, but his success might well come close to copying the Fab Four.

28 05 2008

Victoria’s Secret trips over ’sexy’

Posted by: in Marketing and Advertising

Filed under: Competitive strategy, Marketing and advertising, Limited Brands (LTD), Small business

poster If the current rash of courtroom events surrounding Victoria’s Secret is what CEO Sharen Turney had in mind when she indicated that the company might have become “too sexy”, I think there may be trouble in store for that flagship name of Limited Brands Inc. (NYSE: LTD). I don’t know about you, but I find courtroom litigation anything but sexy. Unless of course, we’re talking about the assistant district attorneys they cast for Law and Order.

First, Victoria’s Secret pulled an ‘Atomic Wedgie” on Kentucky couple, Victor and Cathy Moseley, by gaining a court order to block the couple from using a truncated version of The Victoria’s Secret name. It’s no big deal really because it was fairly obvious that the names “Victor’s Secret” and “Victor’s Little Secret” were pretty flagrant abuses of a trademarked name which deserves secure protection. The one little triumph which came out of that decade-long legal tussle was that the court determined that plaintiffs in trademark infringement cases do not need to show that the infringement actually cost them money, as revealed in a decidedly not sexy Associated Press news blurb.

Next, we find out that Juicy Couture has grabbed Victoria’s Secret by the seat of the pants, regarding alleged product marketing infringement. It seems that Juicy thinks that Vicky has infringed on various aspects of packaging, color schemes and logo placement, as explained by blogger Bruce Watson. Personally, I haven’t analyzed the claimed offenses. I’ll leave that to the courts. I do however find the whole thing to be a bit blown out of proportion — and very un-sexy.

Finally, an MSNBC report briefly examines a trademark complaint against Victoria’s Secret by Sexy Hair Concepts. In that fight, Victoria’s Secret has now launched a challenge against a federal Trademark Trial and Appeal Board ruling in favor of Sexy Hair Concepts LLC. The whole matter centers around the word “sexy” and who has the right to use that word for advertising purposes and/or how it might be used. Victoria’s Secret claims that the word sexy does not attach to brand recognition in the minds of but a few consumers, and the company cites a study it conducted of 308 hair product purchasers. Victoria’s Secret states that only 5 of the 308 individuals studied, associated the word sexy with a specific company’s products. So, I guess “sexy” is fair game for anyone, in a manner of talking.

I’ll tell you my friends, the whole thing is not very sexy to me. If Victoria’s Secret’s Turney wanted to reduce the company’s level of sexiness, she sure got her wish without even trying. All this bickering and finger wagging has really turned me off of the company. In a consumer environment where frilly, lacy and high end garments are low on the priority list, this just isn’t the best time for Victoria’s Secret to have legal briefs be the only briefs the company is making news with. If Victoria’s Secret wants my thought, right about now a good dose of real sexy is exactly what the company needs. All this courtroom banter is just leaving me out in the cold.

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28 05 2008

Lessons for investors in the woes of the New York Yankees and Mets

Posted by: in Marketing and Advertising

Filed under: Marketing and advertising, Walt Disney (DIS), News Corp’B’ (NWS), Business of sports

Baseball isn’t always a perfect metaphor for life, but it is a good one for investing.

Good teams know how to find value where others may not see it. Spending gobs of money on high-priced players does not always pan out and successful companies do the little things well. There is no superior illustration of this than the current sad say of the New York Mets and New York Yankees.

Despite investing more money than the GDP of some small, developing countries on costly talent, the New York Mets and New York Yankees are being outperformed by teams from the vast baseball wasteland known as Florida. The pain being felt by New York sports fans pales in comparison to the anguish in the executive offices of Walt Disney Co. (NYSE: DIS)’s ESPN and News Corp. (NYSE: NWS)’s Fox Sports, which spent large bucks tor the rights to broadcast baseball games. I bet ESPN and Fox ad sales representatives would break out in a cold sweat at the thought of an all-Florida World Series.

What’s ironic is that the people in Florida don’t seem to care about baseball. More than 80,000 people showed up to watch the football games of powerhouses University of Florida and Florida State in 2006. Last year, the American League Rays attracted an average of 17,148 fans to their games and the NL Marlins drew 16,919, according to the Baseball Almanac. That’s roughly a third of the 52,739 who went to see the Yankees or the 47,579 who went to watch the Mets.

Every baseball pundit with a mouse, personal monitor and keyboard predicted that the New York Mets would win the National League East and stand a decent chance of making the World Series. Instead, the not-so-Amazin’ Mets are near the the bottom of the division with a record of 24 wins and 24 losses, almost six games behind the Florida Marlins. Their cross-town rivals, the Yankees, are doing even worse, languishing in last place in the American League East. Much to everyone’s surprise, the Rays are remaining competitive with the World Series champs Boston Red Sox.

This underscores baseball fans like investors need to question conventional wisdom. It also proves to a long-suffering Philadelphia fan like me that there is a God.

28 05 2008

Rachael Ray wears scarf, Dunkin Donuts pulls ad due to terrorism accusation

Posted by: in Marketing and Advertising

Filed under: Marketing and advertising, Scandals, Politics

The world of conservative punditry is in a tizzy after Michelle Malkin wondered if Dunkin’ Donuts spokescheerleader Rachael Ray wasn’t wearing a keffiyeh in a current television ad. Just to be safe, Dunkin’ Donuts pulled the ad.

I won’t launch into any ad hominem attacks of Michelle Malkin, much as I’d like to right now. But I’ll offer up a few facts:

The keffiyeh is an ancient traditional headdress worn by men, and is most connected to the Bedouins. While the keffiyeh was worn by both Yasser Arafat and Che Guevara, it was also worn by bohemian American girls in the 1980s.
Critics of the keffiyeh’s symbolism point to its connection with Palestinians and Fatah. However, Palestinians themselves wear the headdresses no matter what their celebration affiliation or political leanings.
Arabs are not all terrorists. In fact, most Arabs are not terrorists. Connecting an ancient traditional garment worn by millions across dozens of countries to a tiny (no matter how awful) faction of criminals seems racist.
Rachael Ray is not wearing a keffiyeh in this picture. She’s wearing a paisley scarf with a fringe, selected by her stylist. Honestly, I don’t think it looks great on her, but what do I know.

For Dunkin’ Donuts to pull an ad based on the rantings of an ultra-conservative columnist? Far more worthy of boycott than being accused of having a spokeswoman who might wear a paisley scarf while drinking a Cool Latte. One liberal pundit says she’s sticking with Starbucks (NASDAQ: SBUX until the ad comes back. What do you think?