Turning a Commodity into a Premium Product

In the marketing world, having your product labeled as a commodity can be a death sentence. Often, one consumers believe all products within your category are more or less the same, the only way to distinguish yourself is by offering the lowest price. This is no fun! It drops margins down to the minimum and also leaves little room for creativity for good marketing.

At least this used to be the case. Starbucks is a shining example of what a company can do to turn a commodity into something more, and they have done it with good strategy and effective marketing. It started with creating a unique in store environment. Instead of having a small, in and out type of location, Starbucks started the process by putting couches, tables, playing music and offering WiFi in their cafes. This move was important to differentiate itself from the competition. Starbucks also offered endless customization and emphasized customer services from their baristas.

Instead of pounding these differentiating factors into consumer minds through commercials, magazine ads or other advertisements, Starbucks made another interesting strategy decision; they let word of mouth and curiosity drive customers to their cafes. This move saved them money that they could reallocate toward expansion and improving the cafe experience.

Finally, Starbucks made it's boldest move at the register; by charging almost double for a comparable product to what was offered at Dunkin Donuts and 7/11. Paired with the cafe experience, customers were happy to pay the extra since Starbucks was now perceived as a luxury product. Getting coffee at Starbucks was less about a quick caffeine hit or a warm drink. It meant being social, or relaxing, or studying with music, and this change left competitors scrambling to match the brilliant shift in the product category.

Sometimes in marketing less is more, and Starbucks made this an integral part of their philosophy. They  teamed their marketing department with their business strategy team and realized that a minimal marketing campaign built curiosity and drove consumers to the cafes. All in all, this formula turned their coffee from a commodity into a premium product with enormous margins. We will see if more commodity producers can replicate this success to build differentiation and minimize the price wars that come with being commoditized.      

Creative Execution for Cuties

As the semester finishes off, I thought I would share the final product for our Cuties creative pitch. Our group simulated working with an agency and used their creative brief to develop some creative executions and big ideas. For this piece of creative, we used the big idea of "Don't get left at the lunch table."

After using a "Day in the Life" (as mentioned in my last post) we realized that our target consumer looks for snacks that are quick easy to eat so that they can get out and play. Lunch is not a long, social process like it is for other consumers. Our target values efficiency, and being the last one at the lunch table is like being the last one picked for the dodgeball team. That's how we developed our big idea, and that led to this creative execution:

Day in the Life

As my group continues to work toward submitting some creative ideas for Cuties (based on the brief submitted by another class group) we have tried a few different activities to inspire ourselves and get our creative juices flowing. One that our professor recommended is running through the target consumer's day minute by minute, in as much detail as possible. At each step it's important to pursue the motives and drives, "WHY does the target choose to do what they do, and why do they do it in the way that they do?" It takes being thorough and almost nosy to a point, but in the end is extremely beneficial.

This "Day in the Life" process can improve creative ideas in a couple ways. On the practical side, understanding the activities and interests of the target can guide which medium of media to use and how to engage the consumer. It's important to have a "place" where the brand and the consumer can "meet", and knowing when the target is going to be receptive or engaged is vital in developing that setting. For Cuties, we were able to eliminate various media channels for our target consumer understanding that he did not use magazines, social media or pay any attention to radio.


The other major insight a "Day in the Life" can provide are the pains and challenges that the target consumer is faced with everyday. Having a better understanding of this can make marketing the product more relevant and effective, especially since clients sometimes have distorted views of their product or customer. Although clients often conduct their own market research, using the "Day in the Life" process can ensure that their findings are indeed useful and sometimes reveal new insights about the target.

This new tool can help guide good creative and inspire myself and others as I continue my career in marketing, and I am excited to offer it to other peers as I continue with group projects throughout next semester.

Uniqlo Creative Brief

Over the semester in my advertising class, we have been working on creating a Creative Brief for Uniqlo. This was an awesome simulation of working on the planning side to inspire and motivate the creative team. Below is what all of our research and work led to; the Creative Brief.. We will now take on the role of a Creative Team for the second half of the project, and more posts will come as that half of the project progresses. 

Linking Neatness and Creativity

When we started this blog assignment, my professor let the class know that our blogs would likely evolve over the course of the semester. Now that we are almost into December, I realized I wanted to hone the focus a bit more, specifically investigating the relationship between being a neat freak and being creative. Both are qualities that define who I am, and I realized there are many links between the two. Below is a mind map I did and wanted to share some of the main takeaways.

As a self admitted "Neat Freak" and a creative person, I realized being unwilling to settle for the status quo is an important shared quality for both traits. Neither a neat nor creative person is ready to accept what is presented to them; they look to improve the situation in one way or another. A neat person would look at a messy drawer and imagine organization methods to tidy it up while a creative musician might hear a simple chord progression and imagine a way it can be the foundation to a grand symphony. In this way, I think both are perfectionists as well. They are often relentless in their pursuit to improve what they are working on. 

Maybe the most important link between neatness and creativity is the methodical nature of each venture. Whether I am writing a paper or cleaning dishes, both activities involve a ritual-like set up and execution. Dishes begin with rolling up my sleeves, adjusting the water to just the right pressure and temperature, adding soap to the sponge, and then starting with cups and silverware before getting to the bigger plates, pots and pans. With a paper, the methodology is quite similar. Making sure I have proper lighting at my desk, opening up all the programs I will need on my laptop, taking a deep breath before gathering my thoughts and beginning to type; this is the sequence that leads up writing. Both methods are habitual, constant, and helpful in focusing my mind for the task ahead. In this way, being methodical is shared in my being both neat and creative. 

This mind map helped me see the links between being neat and creative, and I will continue to consider these connections as I add to the blog and analyze more of today's advertising.  

The Art of Picking a Brand Name

I recently read an interesting article from Fast Company (the link is here!) and learned about a company called Lexicon. This boutique firm is responsible for some of the most iconic and popular brand names in pop culture. BlackBerry, Dasani, Febreze and OnStar are just a handful of their most successful recommendations, and they will likely continue to produce hit names after learning more about their creative process.

When most companies and creative teams brainstorm a name for a product, the process begins with thinking about the product's main benefits or features. Often this leads to an adjective being matched with the product so that it's easy to identify what the product is as well as its main benefit. Examples would be things like EasyMail, iPhone, and Command Strips. These are all straightforward and easy to understand, but mostly uninspiring. Instead, Lexicon looks to have its creatives focus on a more abstract adjective associated with the product. They also sometimes avoid showing the product or its features to its team, to help keep them open minded.

The results are undeniable, and more ad agencies could take the process that Lexicon has perfected and apply it to their own work. Being able to stay open minded is a key to inspiring creative, and Lexicon has emphasized the importance of mixing up their process and staying out of an uninspired routine. I would hope that more firms will look to Lexicon as a template for success, especially following the courageous approach to take chances on ideas that are as risky as naming a phone a BlackBerry.

Got Milk! Speaker Prep

Here is a recent speaker prep I did for a representative from the Got Milk! campaign. Kelly Fisher stopped by our class and showed us some different pieces of creative that were developed in response to a creative brief that she also shared with us. It was interesting to see how many different directions a team can go while using the same general insights and reasons to believe. Here is my analysis of Got Milk's strategic issue, public perception through groundswell analysis, as well as a question I had for Ms. Fisher:

1. Although the Got Milk campaign was extremely popular when it was released and throughout its life in the 90s and early 2000s, it seems to have less traction recently. Got Milk has to keep the campaign fresh and revitalize it every so often, and it seems due for a refresh.

2. Consumer perceptions of the new Got Milk campaign about chocolate milk being used as a post workout drink seem to be highly positive and well received. Groundswell points to the use of professional athlete sponsors as being very popular.   

3. Are milk producers and distributers willing to take advice about changes in packaging or labeling to match the advertising efforts of the Got Milk campaign, or do low budgets keep them from making these changes? 

Apple - iPad mini - TV Ad - Piano

This week Apple released their new iPad Mini, and with that came a new ad campaign. Based on the commercial posted above, the SMP Apple has arrived at is "Every inch an iPad". I think that this proposition, as well as its execution, is brilliantly executed and will likely guide this product's advertisements for its lifespan.

The ad itself is simple yet powerful. In order to link the products together, nothing is more effective than showing the two side by side. The iPad mini is simply a miniaturized version of the original hit Apple product, and this shot lets consumers see that size is the only real difference. Not only that, but the two are also running the same program and are used in identical ways. Both products are used in harmony (both literally and figuratively) and this is a powerful reason to believe that this product is a sibling to the original iPad.

The SMP and the commercial that Apple used are simple, effective, and clean. They don't make a mess of trying the communicate their message, and this is what makes advertising super effective. For now, since size is the main differentiation between the iPad and the iPad mini, "Every inch an iPad" is a perfect SMP. It's catchy, easy to understand, and communicates the point. Neatly and cleanly. Thanks Apple, this is a commercial I will actually enjoy seeing on television.

Burt's Bees Research

This week I was looking forward to our guest speaker from Burt's Bees, but due to hurricane Sandy the visit from Global Marketing Manager Julie Talbot was cancelled. I did, however, conduct some research about the company's public perception, an issue they face right now, as well as a question I had for Ms. Talbot. Hopefully her presentation is rescheduled for later in the semester!

1. Burt’s Bees has worked hard to adapt and keep up with the growing use of social media on Facebook and Twitter, but many users have reported technical issues with signing up for online contests and other sorts of interactive features. It seems that Burt’s Bees may have overly ambitious goals on social media and has disgruntled some of their fans with its technical issues.   

2. Consumer perception of Burt’s Bees is incredibly favorable. The public sees the company as responsible, forward thinking and lovable, and almost all the groundswell is positive and supportive.

3. How does Burt’s Bees strike a balance between working toward the “Greater Good” of society and being socially responsible vs. making a profit and increasing shareholder value?

 

An SMP for Coca-Cola's Guerilla Marketing Campaign

For those who have never seen this clip, it is one of my favorite examples of effective marketing. Coca-Cola has always had strong branding and good advertisements, but in my opinion, this guerilla marketing campaign takes the cake.

In my class we have been studying the single minded proposition (or SMP), and this is the statement that essentially guides the creative team toward creating good content or art that will be used in an ad campaign.  For this commercial, I would imagine that the SMP emphasized, as with all Coke ads, a theme of happiness. However, a good SMP also inspires the creative team, and in this case it is clear that the creative team was incredibly inspired.

I think that Coca-Cola leveraged the insight of how happy and joyous people get when they get free items from a vending machine and then ran with it. So the SMP may have been as simple and connected as, "Show that Coca-Cola brings the same joy that free items from a vending machine does." This SMP may be closely linked to the actual creative that was produced, but I think that's what made it so effective and compelling. The team identified a terrific insight and then enlightened the creative team and allowed them to take it to the next level. Sometimes the situation requires less structure or required elements for the campaign, but sometimes it takes a bit more guidance when you identify something that resonates as well as this campaign does. In this case, I think Coke nailed a great insight and translated it into their SMP, and the result is a campaign that makes consumers gleeful just watching it. Good SMP's lead to good creative, and this example showcases that principle.

Guest Speaker from Publicis

In my advertising class this week, we learned more about creative briefs from the Chief Marketing Officer from Publicis, Chris Shumaker. In preparation  I did some analysis about a current strategic issue, consumer perceptions of the company, as well as a question I had for Mr. Shumaker. All three elements are below:

1. As a major agency that is constantly acquiring smaller firms (most recently LBi international and Arachnid). This may pose issues merging new staff, contracts and clients since there are often conflicting clients with the new agencies.

2. Although there is little public groundswell regarding a company that serves businesses, Publicis is seen as one of the most successful and well established agencies in New York. There are thousands of likes for their Facebook page and no negative comments on either Twitter or Facebook.

3. Usually how big are the teams that assemble a creative brief, and what different roles or skills does each team member possess?

Television is Still King...For Now

According to a recent study, television is still the most influential medium in terms of marketing toward consumers. Details can be found here, but the takeaway is that television still earns the most revenue from advertising spots and that is because it was ranked as the most influential. 37% of respondents reported that they rely on tv advertisements more than any other channel, and it was almost quadruple the second highest choice. Newspapers came in second place, followed by the internet.

Although I can't say it's surprising that television takes the cake, I can't believe how low internet was rated on this survey. In an industry that is growing at such a rapid pace, they have struggled to gain influence and trust in the consumer's mind, and this is a problem. Until they are able to gain some trust, consumers will ignore ads from the internet. Social media outlets like Twitter and Facebook offer huge potentials in advertising because of their massive audiences, and I think we will see more of a push to boost credibility and quality of ads seen on these sites. Like an article I discussed earlier, these outlets are already working to make ads more relevant to the individual user, and I think this is a reflection of the industry's goal of moving the internet higher up on this list of influential mediums.

We will see what the next 3 to 5 years brings, but with the growing availability of TiVo and products like it, matched with an intense movement from the internet industry to improve their standings, I would be surprised if the internet had not taken over as the most influential ad medium by 2020.

Wait, What was that Commercial For?

Ketel One may be a classy brand of alcohol, but in terms of their branding they are nothing more than average.  I understand that alcohol can be a more tricky advertising challenge since you can't show anyone drinking the product, but there can still be good ways to tie your brand to an idea or quality. In this commercial (which was actually a single spot in a line of three) Ketel One simply links their product to "enjoying the night" type of philosophy. Not only is this incredibly cliche and overdone, but 30 seconds after this commercial had played I had already forgotten which brand of alcohol was in the commercial!

Other brands like Guinness, Corona and Jameson have set an example of creating strong branding that is also creative and unique. When you watch a Corona commercial, you could actually name what beer was being marketed without seeing the label or hearing the name. In the Ketel One commercial, it seems like any other vodka could replace the brand, and therein lies the major problem. Hopefully Ketel One can reevaluate how they want to brand their product, because as things lie they may as well call themselves Ketel None.

Exercise in Class

In my advertising class last week, we did an exercise that I found to be insightful and thought provoking. Using different masterpieces from the ancient world including the pyramids and the Sistine Chapel, we imagined what sort of creative brief would be given to each of the teams that executed the work. We learned about the balance between being too vague and open ended with directions and being too specific and not allowing for any imagination and creativity. A good creative brief should inspire, and give some guidance as to the key aspects to use, but it should not be limiting or bossy.

For the pyramids, one of the best examples generated was "Build a magnificent tomb that will honor the great and powerful leaders, and immortalize Egypt's glory as a center for knowledge and trade." This type of rich language fuels the inspiration for unbelievable works of creativity like the pyramids. It leaves room for creativity, but doesn't leave the team guessing as to what the end goal is.

I really enjoyed this assignment and it has left me imagining what other good briefs inspired. As we move forward this semester and work on creating our own creative brief, I will be using this lesson to help make a better brief myself.

Cleaning Products Can be Funny!

Finally, a cleaning product company reviewed by the Neat Freak! Windex (one of my most trusted weapons in the arsenal against filth) is not a product many people would classify as sexy. It's not a hip product, it isn't young, and it isn't flashy. SC Johnson understands this, and they released this commercial keeping its identity in mind. 

There are so many positive aspects of this commercial, but the most important is simplicity. The company didn't try to do too much here, and that is an key strategy that too many other companies forget. The concept is clever and witty, and it plays off of a classic scenario that everyone can relate to. Also, the company adds a product feature and a reason to believe with the video time lapse showing how Windex begins working before you do. It differentiates the product from other glass cleaners, which makes viewers even more likely to remember the product itself and not just the commercial. This can be a major flaw when using humor, but I think Windex avoids this with their execution.

The effectiveness of this commercial can be summarized with one of the most liked comments; "funniest commercial ever. i tried this on my mate and it was hilarious. windex works. thanx guys." It shows how not only do people appreciate the humor, but they recognize it is a Windex commercial, and also recognize Windex's effectiveness. Excellent job by SC Johnson. I didn't think I could respect this product anymore, but after this commercial I certainly do!   

Mini's Best Test Drive Shows Amazing Insight

Mini's latest ad is based on the idea of creating the "Best Test Drive Ever", and seems to be centered around one of the better insights a car company has identified recently. Although we can only guess as to the actual insight that Mini chose to work with, working with the commercial's content can help us make a good assumption.

The first part of the brand positioning statement that I recognized were the brand qualities. Fun, quirky, alternative and energetic were all central adjectives that the commercial expressed, but maybe the most important one was passionate. Whether it was the fans guiding the car down the runway or the rock band on stage at the end, it was clear that everything associated with the brand was passionate. This helps us get at the insight; which I think is that Mini is designed for a special kind of person. Not only do they embody the qualities from the commercial, but they want their car to have a special spunk and personality. It blends high performance with funky styling, because a Mini driver is exactly that paradox; the popular nerd.

Mini finishes the commercial by reviewing their checklist their initial, and now completed, checklist. It is  the reason to believe that Mini has offered the best test drive ever, and also the reason to believe that Mini is the popular nerd that they claim to be. I think this commercial is a direct reflection of Mini's brand positioning statement, and both are brilliantly executed.

GM and Tide Shows Proper Branding Strategy

The NFL is known for being the most profitable league in American sports, and a large part of this is the revenue they gain through commercials. Given their very large television audience, and the fact that most people watch these events live, it makes for ideal commercial spots. Apparently 181 million viewers will watch games this season, making it a massive outlet.

GM and Tide have made deals with the NFL to integrate the league and its teams into elements of social media, television advertisements and product packaging. GM will use the slogan "Never Say Never" and sponsor a highlight of a comeback story from each week. Tide will feature ads with celebrities wearing their favorite team uniform looking clean and fresh after a Tide wash. More details about these campaigns can be read here.

I think this sponsorship makes a lot of sense, and it reflects a branding process by both sides that was well thought out. Both reflect the rugged, patriotic, and passionate qualities that the NFL and its fans typically embody. The fans that view these commercials are much more likely to listen and respond with a purchase behavior since they are precisely the segment that the brands seek to target. It's important that more companies use this type of analysis before buying ad space, and you don't need to be a mega corporation like GM or Proctor and Gamble to engage in it. All companies need to think more critically about the audience that their proposed advertisements and sponsorships will speak to. We will see how the Tide and GM campaigns fair, but I expect this to be a fruitful relationship for all parties, including the fans.  

7-Eleven's Coffee Election

7-Eleven has engaged in what I find to be clever and effective marketing with their "Coffee Election Campaign". When customers buy coffee they are offered either a Mitt Romney or Barack Obama disposable cup, and 7-Eleven has kept track of how many cups are chosen, and also divided these results by state. Additionally, on each cup is a link to see how the "race" is panning out. The site it takes you to is here, and it is highly interactive and contains links to other 7-Eleven promotions.

I hadn't heard of this campaign before, but apparently 7-Eleven has run it for the past four elections. Interestingly enough, each of those four times the winner of the cup election has also won the Presidential election! This stat drew me to the site and I enjoyed using the site and looking at all the different state results. I also enjoyed the idea of getting "involved" and supporting my candidate by visiting 7-Eleven and purchasing a cup.

This is a shining example of how effective marketing can be, and how it is especially likely to draw favorable opinions when companies use a "pull" instead of "push" philosophy. Instead of having a pop-up ad, 7-Eleven chose to present a clever idea that draws interest and allows customers to choose to listen to a message rather than forced to hear one. I think people are much more likely to navigate around the site and check out other promotions since they went there by choice. This leads to more interest in 7-Eleven and its products and sales (especially in coffee), which is the ultimate goal. I am very pleased to see this campaign, and highly curious to see if this year's cup winner also claims the Presidency.  

Spilled Milk

A recent article from the New York Times detailed the new controversy about the new milk containers that large warehouses like Costco have begun to use. (Milk is after all a highly polarizing and hotly debated issue.) The new containers make shipping much more efficient, since trucks can carry many more palates with the stackable containers. A typical warehouse like Sam's Club used to require four or five truck deliveries a week with the old and inefficient design. Now, it only takes two truck shipments. More details about the dairy innovation can be found here.  

There has been consumer backlash about these changes, but frankly I find it ridiculous. Users claim that the new container makes it harder to pour and spilling is now more frequent. I could not help but laugh when hearing this; THIS is the reason companies should switch back. Despite the obvious benefits including reduced costs for stores, greater savings for customers, more recyclable shipping materials and significantly less fuel consumption by large trucks, spilling outweighs all of this. It is simply baffling, especially since some of these outspoken consumers are the same ones complaining about rising food prices, or calling for better fuel efficiency. 

I could not be more pleased that warehouses like Sam's Club and Costco will be ignoring this consumer outcry and continuing the use of the new containers. It illustrates a situation where the negative groundswell may overwhelm the positive groundswell, but the company decides not to act on it. In this situation, it seems more obvious to ignore the negative feedback, but these decisions can be much more difficult and consequential. When is it appropriate to ignore feedback, and when must a process or product be changed? It is a delicate balance that can be difficult to judge correctly every instance, but it seems that warehouse retailers have chosen correctly here. Time will tell if more retailers make the switch, and to those who complain, there is no sense in crying over spilled milk. 

5 Hour Energy shows us what NOT to do

In the advertising world, 5 hour energy is known for their unique marketing philosophy. They have embraced commercials that are cheesy and low budget, and many people have grown to appreciate them (even if they don't necessarily enjoy them).

The latest 5 hour energy commercial represents a change in this philosophy, and frankly it's a massive failure. Instead of their typical light hearted and cheesy approach, the mood is serious and bland. Not only that, but the stats they express are clearly misleading. The doctors they polled do not recommend 5 hour energy, they only recommend "a low calorie energy supplement to healthy patients who use energy supplements." All this is saying is that low calorie supplements are better for you! The fact is that doctors cannot and will not recommend 5 hour energy, and this commercial uses deceptive wording to trick customers into believing otherwise.

This commercial is very disappointing, and I am not the only one who was let down by the effort. Of the 145 ratings on youtube (when this was posted), 141 were dislikes. I hope that the company recognizes that this new approach is failing, and maybe they will get back to what made them popular to begin with soon.    

Can Twitter Make Advertising More Relevant?

In an article I found recently (check it out here), Twitter is rolling out a new feature to identify user interests and display ads based off of these individual preferences. In an effort to minimize wasted advertisements that users have no interest in, the website will use factors like favorite tweets and frequently used hash tags to identify user interests and "likes".  Unlike fellow social network Facebook where users literally "like" things they are interested in, Twitter will have to adapt a more sophisticated method of finding what users are interested in. Like the trend in advertising, Twitter is looking to cut out wasted time, effort and money (something the Neat Freak loves to hear!) and find the most effective use of ad space in hope people will click on ads they are actually interested in.

I think Twitter is taking the right approach to improve their advertising.  All parties benefit from this method; marketers are happy that their ads are directed at those who are interested, users are more satisfied with ads that relate to their interests, and Twitter can make charge more money because of both! I think everyone can agree that if we are to be subjected to advertising, we would much rather see ads for our own interests rather than random ones.

The one issue that may hover over the methods of both Facebook and Twitter is privacy. Where is the line drawn in terms of much they can use the information we post about ourselves? Once we post something is there an implicit agreement for sites to use the information to target us, or do they have a responsibility to respect our privacy and treat all users as equal? It seems that the boundaries have yet to be fully established, and I expect the coming years to be filled with legal battles and new legislation to determine what rights and responsibilities parties share in respect to privacy and targeting based off of posts. It will be an interesting debate, but I think Twitter taking a step toward more relevant advertising is a beneficial move for everyone.

NFL claims they will not place advertisements on uniforms...

Roger Goodell, the commissioner of the NFL, was recently asked about the possibility of having small advertisements on team uniforms and answered "It's not something that's actively being considered by the NFL."  Citing the limited number of partners that the NFL likes to maintain and a new contract with Nike, Goodell said that the costs would outweigh the benefits for the league. Details were found here: Here

I think that this is an interesting move by the NFL, and one that is worth keeping an eye on. The trend seems to be a growing amount advertising in the sports world, and companies are more willing to shell out big money to leagues as popular as the NFL. The fact that they turned down such an offer is noteworthy. A deal for this ad space would be worth hundreds of millions of dollars over a multi-year contract, and other leagues will probably be accepting these deals in the coming years.  I can certainly appreciate wanting to keep uniforms looking clean and classy, but it seems that the future of professional sports features deals to advertise on uniforms. Several other sports have already begun with these sponsorships (soccer and NASCAR being major pioneers) and fans seem to be indifferent or even in favor of this sort of branding.

I think that the NFL is missing out on a big pay day because of bad assumptions. Other leagues have shown that there is little or no public backlash when uniforms have small ads, and it certainly isn't an issue that would decrease television ratings. I look forward to seeing how long they hold this stance before common sense prevails.