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Continue reading New Ford Television ads made by consumers

24 09 2008

New Ford TV ads made by consumers

Posted by: in Marketing and Advertising

Filed under: Competitive strategy, Ford Motor (F), Marketing and advertising

Ford Motor Co. (NYSE: F) is stepping into the consumer-created advertising content kingdom. It announced today that it will run a national ad featuring a short film that recently won an online competition.

This is the secret that many companies are just now learning: your customers are your ideal advertising asset. When it comes to something as passionate about talking about the 2010 Ford Mustang, you definitely want to get out of your customer’s way, right?

This reminds me of Tide’s “Talking Stain” ad during the last Super Bowl. The ad was more than a pitch for the product; it also sent viewers to Tide’s website where they could send in their own “Talking Stain” video entries. Prizes were available and everything. The commercial was fairly low-budget, but the message and the strategy were brilliant. Perhaps Ford is trying to latch onto some of that effort. It’s about time.

The advertising industry’s “same old, same old” tack on strategic consumer messaging is exhausted, no matter how innovative the ad glitz is. Engaging consumers by encouraging a two-way line of communication is where it’s at for a whole new crop of consumers.

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24 09 2008

Vehicle Biz: GM abandons the Super Bowl

Posted by: in Marketing and Advertising

Filed under: General Motors (GM), Marketing and advertising, Columns, Recession

This is the first in a weekly series about the car business. The auto industry plays an important role in the global economy, but record-high oil prices and a global slowdown have created a crisis in the sector. This column will highlight some of the interesting stories that emerge as that crisis plays out.

Sure, the economy is in the tank and the stock market is teetering on the edge of a very steep cliff. But the severity of the situation really hit home with shocking news about a beloved secular American feast day: General Motors (NYSE:GM) announced this week that it will not buy ad time during the 2009 Super Bowl (that’s Super Bowl XLIII for all you Roman numeral lovers).

It seems that it was just yesterday that GM was promoting the new 2007 Cadillac Escalade at Super Bowl XL. Sales of the Escalade — perhaps the most over-the-top of the gigantic SUVs that so many Americans fell in love with — had been falling, and GM hoped to recapture consumers’ bling-addled imaginations with a shiny new model displayed, appropriately enough, on a fashion runway. It wasn’t to be, though, as Escalade sales continued to fall.

And who can forget GM’s adorable suicide robot ad from Super Bowl XLI? Some stick-in-the-muds found it a bit insensitive, but it did get people talking. It did not, however, help GM increase its sales.

And that’s the basic problem. Critics have long argued that GM relies too heavily on cheap redesigns and flashy advertising to sell automobiles, rather than focusing on good engineering and construction. The fact that GM is bailing out on the biggest advertising day in the media calendar recommends just how desperate it is. Maybe it has learned the lesson that you can’t sell cars no one wants, no matter how much you spend on advertising. Let’s hope that the money saved on Super Bowl ads is spent on making vehicles that can compete with Toyota (NYSE:TM) and Honda (NYSE: HMC).

Continue reading Nike (NKE) first quarter earnings preview

23 09 2008

Nike (NKE) first quarter earnings preview

Posted by: in Marketing and Advertising

Filed under: International markets, Forecasts, Products and services, Competitive strategy, Marketing and advertising, China, NIKE, Inc’B’ (NKE)

Wednesday afternoon following the market close, Nike Inc. (NYSE: NKE) will be reporting its fiscal first quarter earnings, and analysts are looking to see the company show earnings for the quarter of 93 cents per share.

The last time that the company reported was back on June 25, when it was able to beat out Wall Street estimates by two pennies, with a reported 98 cents per share for its fiscal fourth quarter, mostly a result of strong international demand, which was able to overcome weak consumer spending that injured the company at home in the U.S. In fact, to find the last time that the company reported quarterly figures under Wall Street estimates, you would have to go all the way back to its fiscal fourth quarter 2006 when it missed by a penny, with a reported 70 cents per share.

On a year over year basis, should Nike come in with 93 cents per share, it would be a 16.9% drop from the $1.12 that it was able to earn during the first quarter of 2007.

22 09 2008

The end of the Bratz craze? Bravo!

Posted by: in Marketing and Advertising

Filed under: Marketing and advertising, Mattel, Inc (MAT)

Parents rejoice: Bratz dolls are going the way of the hula hoop!

The sexed up Barbies on collagen injections that have been the subject of a 9-figure lawsuit involving Mattel (NYSE: MAT) and MGA Entertainment are not expected to be the hit this holiday season that they’ve been in recent years.

The Wall Street Journal reports (subscription required) that Target (NYSE: TGT) will be slashing Bratz-devoted shelf space by 50%, and annual sales of the dolls are expected to fall 25% to $300 million. Wal-Mart (NSYE: WMT) has also slashed its Bratz orders and many retailers are offering steep discounts on the dolls, indicative of an inventory glut.

The decline of Bratz is bad news for Mattel, which is locked in litigation over rights to a brand that appears to be rapidly declining in value.

In addition, Bratz’s risque image is causing problems for the company. Scholastic (NASDAQ: SCHL) has pulled Bratz books from its roster after parents and psychologists complained that the dolls modeled “precocious sexuality.”

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22 09 2008

Will ice cream help Krispy Kreme?

Posted by: in Marketing and Advertising

Filed under: Products and services, Marketing and advertising, McDonald’s (MCD), Krispy Kreme Doughnuts (KKD), Burger King Hldgs (BKC)

Troubled business Krispy Kreme Doughnuts (NYSE: KKD) wants to use one of America’s favorite treats — ice cream — to help bring it back to its glory days. The ice cream will be a soft-serve concoction, and the hope is that it will add another dimension of value for Krispy Kreme’s patrons beyond the core doughnut portfolio. I guess the former pastry star thinks that if you’re not in the mood for a doughnut, maybe you’re in the mood for ice cream. (Full disclosure: I don’t like ice cream!)

You know, I can’t really criticize the effort. Seems like a simple enough way for Krispy Kreme to expand its base of offerings. But will it suddenly set the company on a path of unfettered growth? I can’t say I see that. From an investor’s point of view, Krispy Kreme is the same stock to be avoided as it was before I read about this ice-cream initiative. In fact, it was only recently that I took a look at the company’s earnings and realized that I remained a bear on the business. I still think investors would be superior off looking at ideas such as McDonald’s (NYSE: MCD) and Burger King (NYSE: BKC) before Krispy Kreme. Yeah, they’re not massive on doughnuts, but they do well with burgers and fries, and they’re a superior way to play chains that sell less-than-healthy foodstuffs.

The ice cream plan is definitely a worthwhile experiment. But if management is just going to throw it on the menu without launching an aggressive advertising campaign in support, then I’m not sure how much good it can actually do. I’ve seen turnaround plans before that try to exploit some new product or project but fail to give it a proper push. We’ll have to see what kind of push Krispy Kreme goes for with its ice cream, but I’m still not a buyer of the stock.

Disclosure: I don’t own any company mentioned; positions can change at any time.

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19 09 2008

Microsoft’s “Seinfeld/Gates” ads were good, but not good enough

Posted by: in Marketing and Advertising

Filed under: Competitive strategy, Microsoft (MSFT), Marketing and advertising

When the first Bill Gates/Jerry Seinfeld television commercial was released about three weeks ago, there were mostly negative reviews of it. After all, the spot was odd, didn’t mention Microsoft Corp. (NASDAQ: MSFT) products at all, and really did not have any connection to what Microsoft was all about. Most likely, this was by design. This was Microsoft’s attempt to fend off those cute (but now, annoying) Apple, Inc. (NASDAQ: AAPL) ads that have a “hip and cool” actor portraying the Mac PC while a geeky, nerdy actor portrays the Windows Personal computer. And this was Microsoft’s comeback? That was the question many asked.

The second commercial in the series was much superior — but it seemed more like a sitcom mini-episode than anything. The editing and writing was admirable, but still — the connection with Microsoft’s products, vision and former leader and founder was small and light at ideal. Where was Microsoft going with this? Was the company trying to re-invent Seinfeld’s own award-winning sitcom that aired on NBC until 1998? Who knows? Throughout both commercials, though, Microsoft was generating a buzz. Even though much of the best-covered buzz was negative.

Although there are reports that Microsoft is “dumping Seinfeld,” perhaps he was just a way to generate initial buzz about Microsoft’s campaign to position Windows Vista and other Microsoft products as helpful lifestyle tools. Although the company says that a move away from the Seinfeld-Gates shtick was a planned move, maybe it was and maybe it wasn’t. Regardless, Microsoft does have an enormous challenge to really get consumers convinced that a Windows Personal computer can be just as cool as an Apple PC. Maybe a rotation of stand-up comics throughout its spots could do the trick.

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18 09 2008

7digital DRM free on the web music store planning U.S. store after signing major music labels

Posted by: in Marketing and Advertising

Filed under: Consumer experience, Competitive strategy, Apple Inc (AAPL), Amazon.com (AMZN), Marketing and advertising, Sony Corp ADR (SNE)

UK-based digital download store 7digital.com revealed yesterday that Sony BMG, a division of Sony Corporation (NYSE: SNE), had joined the other major music labels to offer high-quality MP3 files without anti-piracy technology from the store. The new deal brings 250,000 tracks to the format, making 7digital the largest digital rights management (anti-piracy technology)-free store in the UK with 4 million tracks offered. 7digital also launched new sites in other regions of Europe, and announced plans to launch a store in North America by the end of the year. CEO Ben Drury told Billboard that the U.S. store will be managed from an office in San Francisco.

Opening a store like 7digital, where music fans can purchase high-quality MP3 tracks from all the major labels would be a strong challenge to the dominance of Apple Inc. (NASDAQ: AAPL)’s iTunes Store in the United States. Drury told Billboard as well that consumers are more apt to purchase MP3 formatted albums over the DRM albums generally offered in stores like iTunes and that the average “transaction” on 7digital’ site is around $8. The CEO also welcomes the pending launch of a MP3 store by Amazon.com Inc. (NASDAQ: AMZN) in the United Kingdom, since it will promote and provide more choice to consumers looking at formats without DRM and stores without subscriptions.

High quality DRM-free MP3 files work on across all platforms and devices, meaning that consumers that do not own Apple’s iPod can purchase tracks for other devices. Overall a U.S. 7digital store would be a true competitor for iTunes and could boost the music labels if prices drop and more digital tracks are purchased as the CD slowly declines.

16 09 2008

Yahoo wants YOU to begin wearing purple

Posted by: in Marketing and Advertising

Filed under: Yahoo! (YHOO), Marketing and advertising

Yahoo Inc. (NASDAQ: YHOO) is embarking on one of the more bizarre marketing campaigns I’ve seen in a while. TechCrunch reports that the company launched the Start Wearing Purple campaign Monday. The website includes tidbits like the discovery of the purple frog, obnoxious background music and a special Flickr account celebrating the color purple. There’s also a fleet of purple bikes.

The campaign is apparently intended to push consumers into associating Yahoo with innovation, since the color purple is associated with innovation. Or so they state — I’ve never heard that myself, but I’m just a consumer.

In any case, it’s a shame that Jerry Falwell isn’t alive to see all kinds of gay world order conspiracy stuff here the way that he did with the purple Teletubby.

This is a pretty strange brand awareness campaign, and I’m not convinced that the color purple is the magic ticket to bringing Yahoo into the year 2008.

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Continue reading Sony’s Music Pass: An easy way to combat declining CD sales?

13 09 2008

Sony’s Music Pass: An simple way to combat declining CD sales?

Posted by: in Marketing and Advertising

Filed under: Products and services, Consumer experience, Apple Inc (AAPL), Marketing and advertising, Sony Corp ADR (SNE), Tech for the rest of us

It’s been almost a year since Sony Corporation (NYSE: SNE) launched the music downloading platform Platinum Music Pass in direct competition with Apple Inc. (NASDAQ: AAPL)’s iTunes Store, the largest and most successful downloading store. In the months since the program was announced and first released, it has not been reviewed very favorably. Nevertheless, this user found it very exciting and an inventive way to combat declining music sales based on CD profits and the strong grip store’s like iTunes have on the market.

When it was released, critics and industry “pros” derided the credit card-like download albums as a step backward (you could easily download an album from iTunes without the cards), overpriced (the set price of the cards is $12.99), and a complete misstep in a market and economy obsessed with environment-friendly products (the cards are only available from physical retailers). Nevertheless, and these problems aside, the cards do offer those music listeners who are shopping for groceries or out buying other goods the chance to buy a downloadable album without the hassle of the CD.

Critics overlooked the mass appeal and sale ability of the cards in grocery stores and other stores since the target groups are not listeners who go out to simply buy an album, etc. Additionally, the platform only offers music from Sony’s artists, which limits its catalog abilities, but it does offer the highest quality MP3 tracks at 320 kbps MP3. By comparison iTunes’s music files are generally 128 kbps in the regular store and 256 kbps in the iTunes Plus store.