Rather than co-sponsor an existing event, or even hosting its own version of an event, Red Bull has created its own sporting events (such as kiteboarding to Cuba), and in some cases a new sport to help market its brand. One such event is Crashed Ice.
*See link to Crashed Ice: http://www.redbullcrashedice.ca/
*See link to one reporter's thinking about various aspects of Red Bull's marketing machine: http://www.robwalker.net/html_docs/redbull.html
*Below is a brief preview of the NYT article that brought Crashed Ice to my attention.
WINTER SPORTS; Sport and Sponsor Collide in a Spectacle on Ice
*Please Note: Archive articles do not include photos, charts or graphics. More information.
March 3, 2007, Saturday
By MATT HIGGINS (NYT); Sports Desk
Late Edition - Final, Section D, Page 1, Column 3, 1002 words
CORRECTION APPENDED
DISPLAYING ABSTRACT - Maybe the gusts swirling snow through the alleys of the historic district here Friday were not actual winds of change. But in an old city famous for preserving the past, a new sport has become a showcase for changing relationships between fans and the way brands market to them. ...
Correction: March 6, 2007, Tuesday A sports article on Saturday about Crashed Ice, a competition created by the drink company Red Bull that is a blend of hockey and snowboardcross, misstated the number of racers who compete at a time. It is four, not three.
Saturday, March 31, 2007
Tuesday, March 27, 2007
WOMMA - Seriously, what does that stand for?
Having understood the perceived benefits and positives of buzz marketing/CGM/CGA/etc. this week in class, this article provides another view (generally negative) of buzz marketing. An interesting read.
The following was published in Forbes magazine by Jack Trout.
Link to the article: http://www.forbes.com/columnists/columnists/2006/03/02/gm-harley-marketing-cx_jt_0307trout.html
Tales From The Marketing Wars: Is Word Of Mouth All It's Cracked Up To Be?
Jack Trout 03.07.06, 6:00 AM ET
Suddenly, everyone is running their mouths about word-of-mouth marketing. You can tell things are getting a little out of hand when you discover there is now a Word-of-Mouth Marketing Association called WOMMA. And there are conferences popping up all over the world on this subject. One recent conference had over 400 attendees.
And that's not all. Now we have a new dictionary to learn. Word-of-mouth is now buzz marketing, viral marketing, community marketing, grassroots marketing, evangelist marketing, product seeding, influencer marketing, cause marketing, conversation creation, brand blogging and referral programs. That's the good stuff. What isn't so good is stealth marketing, shilling, infiltration, comment spam, defacement and falsifications.
If you're like me, you're probably a little confused about all this, so let's put some things into perspective.
First of all, world-of-mouth isn't new much less "the next big thing" that WOMMA declares. A third-party endorsement of your product has always been the Holy Grail. It's more believable.
In prior days, we used to try and find the "early adapters" for a product. We figured they had big mouths and loved to tell their friends and neighbors about their new widget.
What's different today is people have many more ways to communicate. Instead of just verbal we now have digital communications. Online chatter far surpasses over the fence chatter in every way, with the exception of clearly knowing the person with whom you are chattering. The trouble is that the ease of communicating en masse has raised the noise level to mind boggling levels. That's the good news.
Now for the bad news.
How many people really want to chatter about products? Do you really want to talk about your toothpaste or your toilet paper? Even people with prestige products tend not to chatter about them. All you really want is to be seen driving up in one. Now, if it's a Harley Davidson motorcycle, sure. That's because you're part of a club, and that's all they talk about. But they don't need buzz.
No product in memory got as much buzz and PR as the Segway gyroscopic scooter. The problem is that most of the buzz was negative. "Funny looking or dangerous on sidewalks" is not what you want to hear. Buzz can kill you if you don't have the right product. The very expensive movie King Kong was a bust because of a lot of negative word-of-mouth. "Too long, too loud and overdone." The Pontiac G6 giveaway on Oprah got a lot of buzz but the car died at the box office. People would take one for free, but not if they had to pay for it. You've got to have a product or service people want to talk about in a positive way, and there aren't many of these around.
Now for the really bad news. There's no way to control that word-of-mouth. Do I want to give up control and let consumers take over my campaign? No way. They aren't getting paid based on how many widgets get sold. If I go to all this trouble developing a positioning strategy for my product, I want to see that message delivered. Buzz can get your name mentioned but you can't depend on much else. Not too many mouths will do a stand-up commercial about your product vs. its competitor. Nor will they check with you in advance on what to say.
This all brings me to my word-of-mouth on word-of-mouth marketing. It's not the next big thing. It's just another tool in your arsenal. If you have a way to get your strategy or point of difference talked about by your customers and prospects, that's terrific. It will help, but you're going to have to surround it with a lot of other effort, including, if you'll pardon the expression, advertising. You just can't buy mouths the way you can buy media. And mouths can stop talking about you in a heartbeat once something else comes along to talk about.
This all brings me to my word-of-mouth on word-of-mouth marketing. It's not the next big thing. It's just another tool in your arsenal. If you have a way to get your strategy or point of difference talked about by your customers and prospects, that's terrific. It will help, but you're going to have to surround it with a lot of other effort, including, if you'll pardon the expression, advertising. You just can't buy mouths the way you can buy media. And mouths can stop talking about you in a heartbeat once something else comes along to talk about.
I certainly would never tell a CEO, "B.J., I just put a big chunk of our budget into word-of-mouth."
If you did, all I would say is "good luck".
With more than 40 years of experience in advertising and marketing, Jack Trout is the acclaimed author of many marketing classics, including Positioning: The Battle for Your Mind, Marketing Warfare, The 22 Immutable Laws of Marketing, Differentiate or Die, Big Brands Big Trouble, A Genie's Wisdom and his latest, Trout on Strategy. He is president of marketing consultancy Trout & Partners and has consulted for such companies as AT&T, IBM, Southwest Airlines, Merck, Procter & Gamble and others. Recognized as one of the world's foremost marketing strategists, Trout is the originator of "positioning" and other important concepts in marketing strategy.
BTW...WOMMA stands for Word-of-Mouth Marketing Association, an association that promotes and improves word-of-mouth marketing. (http://www.womma.org/)
The Branding of Hip Hop Super Stars
Contrary to popular perceptions of hip hop artists, I've always had an admiration for the intellect and business savvy of some of hip hop's biggest stars. Hip hop is a world full of branding. The most obvious sign of this are the consistent use of and heavy promotion of their "stage" names. Jay-Z, Diddy, Biggie, Dr. Dre, Snoop Dogg, Emimen, 50 cent, etc... Additionally, some of them are savvy enough to leverage their own brand names to help bring up other "new" brands under their umbrella, or to increase their marketshare through cross-promotions with other artists. As an example, Dr. Dre, the infamous and highly successful rapper/producer has brought to the music scene legendary artists such as Snoop Dogg and Eminem by introducing those artists as featured artists in his CDs, "Chronic" and "Chronic 2001", respectively. Many other hip hop stars have done the same thing. When one takes a closer look at the hip hop industry, one would be able to find many examples of cross-promotions through lyrical collaboration amongst various artists. Sometimes it's a colloboration between two rappers, or one rapper and one r&b (rythm and blues) singer, and sometimes it's with artists from a totally different music genre. As an example, in 2004, Jay-Z (rapper) and Linkin Park (rock band) have collaborated on their "Crash Collision" album. Their success closely mirrors the success that was achieved in 1986 in a collaboration between Run DMC (arguably the first hip hop super stars) and Aerosmith (a major rock band).
When one wants to find examples of branding, one needs to go no further than picking up or downloading a popular hip hop album.
When one wants to find examples of branding, one needs to go no further than picking up or downloading a popular hip hop album.
Sunday, March 25, 2007
Lexus looking to upgrade its brand perception
Lexus is seeking to change the brand meaning of Lexus to entice super-high end car buyers. They plan on utilizing non-traditional forms of marketing to develop strong "word of mouth" recommendations. Will this work or will it blurry the meaning of the brand for the brand's core customers?
STATUS SEEKER
To Woo Wealthy,Lexus AttemptsImage Makeover
It Seeks Luxury CachetLike Gucci and Prada;$100,000 Sticker Price
By GINA CHONMarch 24, 2007; Page A1
For years, Toyota Motor Corp.'s Lexus division pitched its cars as the practical alternative to European luxury brands like BMW and Mercedes. And over time, the Lexus brand came to be known as kind of expensive, always respectable -- and a little boring.
Audi
The Audi R8 is among the German models in the "prestige luxury" segment Lexus is trying to penetrate.
"Lexus cars are made to be luxurious and forgettable," says Ryan Wilsey, a 29-year-old Boston resident who works in venture capital. Formerly an owner of a Porsche Boxster, Mr. Wilsey's dream cars are a BMW M3 coupe or a Ferrari.
Now, with Toyota's sales hitting new records, it craves a makeover for Lexus. It wants to become a brand associated with the biggest names in luxury. Imagine "Louis Vuitton, Prada, Gucci and Lexus all mentioned in the same breath," says Brian Bolain, a Lexus marketing manager.
To get there, Lexus, a company known for its ultra-conservative culture, is introducing a slew of new vehicles costing over $70,000 -- more than anything Lexus has previously sold and nearly twice the price of its best-selling RX sport-utility vehicle. It deployed a "super affluent team," a group that traveled the country asking the ultra-rich what they want. It is throwing lavish parties around the country and cozying up with brands like Vogue Magazine and Neiman Marcus stores.
The best-selling luxury car brand in the U.S., Lexus is hardly struggling. Sales grew a healthy 7% to 322,000 vehicles last year. The company has no plans to move away from lesser-priced vehicles like the $33,470 ES and the $30,255 IS sedan, which together generate more than a third of the brand's sales. But Lexus, which is sold only in certain foreign markets, still lags well behind the world-wide sales of the BMW and Mercedes brands, which together sold more than 179,000 cars last month alone.
The "prestige luxury" segment, cars priced above $70,000, is a juicy target. Its sales have doubled in the past five years.
But today, the brand lacks the necessary cachet. "For that high-end buyer, we're not on their shopping list," says Bob Carter, head of Lexus's U.S. office.
Marketing, the lifeblood of a luxury brand, isn't a traditional strength for Lexus, which is known more for reliability and customer service. History shows it can be very difficult to change consumer perceptions of a car brand. And luxury buyers, usually older, could be even more stubborn, as they are often highly loyal to the kinds of cars they've previously owned.
WSJ's Gina Chon talks about some of the new features of the forthcoming Lexus LS V8 hybrid, which is expected to top $100,000.
Lexus's somewhat nerdy image dates back to its very beginnings in 1989. While Mercedes and BMW threw lavish parties to herald the launch a new model, Lexus's dealers offered free wine and cheese. The European rivals run ads in exotic locales stressing excitement and performance. Lexus's campaigns focus on specific technological features, like rotating headlamps.
One big challenge: high-end luxury cars traditionally target men. They represent 60% of Mercedes buyers and 58% of BMW buyers. But 51% of Lexus's buyers are female, a statistic that mirrors the proportion of women in the overall car market.
Lexus started its new push in 2005 when it assembled the super-affluent team -- nine Lexus employees from various departments including marketing and finance. The team interviewed car buyers who had at least $5 million in assets (excluding their primary residence) and who had previously owned a few luxury vehicles. More than half of the interviewees selected were men.
For the next two years, the team crisscrossed the country, asking 100 ultra-wealthy people such questions as "Why do you live where you live?" and "What do you do for enjoyment?" "We asked ourselves and these people a lot of questions," says team leader and marketing chief Deborah Wahl Meyer.
Owning Fleets
One of the team's early realizations was that the ultra-rich don't have a car. They have fleets of them, often scattered at different homes and vacation spots across the country. And not only did the rich have a lot of cars, some at the team were surprised by how often many buyers changed their fleet, trading cars more often than most people change wardrobes. Some changed cars in three months, either because they changed their minds or wanted the newest model.
That discovery led Lexus to realize that it didn't necessarily have to compete with other ultra-luxury brands as much as complement them. A Lexus sedan may not be as chic as Porsche 911 convertible, but it might be added as the practical daily driver for someone who already has one. Indeed, the team also found that many of the ultra-rich didn't act all that differently from regular Lexus owners, identifying themselves as "upper middle class" and shopping at places like Costco, Home Depot and Target.
New Hybrid
For those Costco runs -- and for a bit of Saturday night showing off -- Lexus this summer is launching the LS600h, a hybrid electric luxury sedan intended to combine the performance of a 12-cylinder engine with the promise of better fuel economy. The price tops $100,000.
The team found that ultra-wealthy buyers also like unique experiences inaccessible to the general public. So Lexus tripled the number of events it holds. Last August, it hosted a fashion show with Vogue at a vintage car show in California. It's offering 100 special-edition vehicles to big-ticket customers of retailers Neiman Marcus and Bergdorf Goodman.
To celebrate the redesigned top-of-the-line LS sedan, launched last fall, Lexus dealers threw parties on a grand scale. Two Arizona dealers hosted acrobats from Cirque du Soleil for a private performance. A Texas dealership celebrated with the legendary Motown group the Temptations, caviar, and champagne. In all, 182 of Lexus's 221 dealers had elaborate parties, many of which cost in the six figures, as opposed to the several thousands of dollars that were spent before.
Rich buyers said they rely more on their peers for advice than third-party groups. So to launch its new LS600h, the luxury hybrid sedan, Lexus is starting a test-drive program in which an influential person in a metro area -- like a Hollywood mogul -- is given the car to drive for a month. When the month is up, that person can choose the next person who gets to have the car for a month.
Quality of Service
The Lexus team says they were surprised by quality of service some super-luxury car buyers experience. "A Ferrari owner said when he takes a car in, he expects to be called and told what is going to be done to it, have it done and that's it. People who have Rolls Royces and Bentleys said the same thing," says Mr. Bolain. "But some of these people say they weren't getting that kind of service." The three car makers all say they offer impeccable service.
Lexus created four new "brand-experience manager" positions for each of its regions in the U.S. to answer queries and guide dealers on efforts like launch parties. That's a big deal for Lexus, a company so intent on avoiding waste that employees there joke it takes "an act of God" to add even one person to the staff.
To attract men to the brand, Lexus -- long known more for cushy comfort than pulse-racing performance -- is plunging into the sports-car arena in 2008, launching a souped-up high-performance series similar to Mercedes's AMG series and BMW's M models. And later this year, Lexus will announce production details of its "super Lexus" with more than 500 horsepower.
Long Haul
U.S. car makers, which have spent years trying to lure consumers away from the Japanese, learned the hard way how difficult it can be to change perceptions of a brand. It's "a long-term process," says Francisco Codina, a sales and marketing executive at Ford Motor Co.
Luxury buyers may be even more resistant. Other car makers have also found it a challenge to sway buyers from Mercedes and BMW. "If you've always bought a BMW and love BMW, why would you switch to another brand?" explains Jim Taylor, head of General Motors Corp.'s Cadillac division.
At a Lexus focus group session held at the Avalon Hotel in Beverly Hills, one 50-year-old advertising executive said he questioned whether he should give up the cachet of owning a Mercedes for a Lexus, even though he thought Lexus was a better-quality car. "My perception is that (Lexus) developed more for utility, to be a good sound car, than to deliver on style," said a 46-year-old entrepreneur who participated in a research session.
Still, Lexus's effort comes at a time when the European car makers may be losing the exclusivity that made them so desirable in the first place. By subsidizing monthly lease payments and other types of financial engineering, luxury car makers that once catered only to the truly rich have been able to dramatically expand their customer base.
In Orange County, Mercedes has almost three times the market share of Chrysler and around the same market share as Nissan, according to R.L. Polk & Co. And BMW is widely expected to launch the first car below the $30,000 price barrier when it brings its small 1-series hatchback here next year.
Donna Boland, a spokeswoman for DaimlerChrysler AG's Mercedes-Benz division, says the company's broad range of prices is a positive attribute, with different models serving different luxury customers' needs. Tom Purves, head of BMW AG's U.S. sales office, says high-end customers do want more exclusivity, but says an owner of a $121,400 sedan won't resent a 25-year-old with a much cheaper model.
There's been encouraging early response for Lexus at its newly built $75 million Newport, Calif. dealership, where visitors can practice their golf swing at the putting green or play arcade games. Allen Moznett, the dealer's general manager, says there's a waiting list for the new longer LS sedan, which can go for over $83,000.
Chris Hummel, a vice president at software maker Oracle Corp. recently bought a $140,000 Mercedes. Yet he's already seen about five others driving his pricey Mercedes in the San Francisco Bay area where he lives.
"Lexus doesn't play in that [price range] so they don't have credibility there," he says. "But given its reputation for customer service, I would jump all over it if they went there."
Write to Gina Chon at gina.chon@wsj.com
STATUS SEEKER
To Woo Wealthy,Lexus AttemptsImage Makeover
It Seeks Luxury CachetLike Gucci and Prada;$100,000 Sticker Price
By GINA CHONMarch 24, 2007; Page A1
For years, Toyota Motor Corp.'s Lexus division pitched its cars as the practical alternative to European luxury brands like BMW and Mercedes. And over time, the Lexus brand came to be known as kind of expensive, always respectable -- and a little boring.
Audi
The Audi R8 is among the German models in the "prestige luxury" segment Lexus is trying to penetrate.
"Lexus cars are made to be luxurious and forgettable," says Ryan Wilsey, a 29-year-old Boston resident who works in venture capital. Formerly an owner of a Porsche Boxster, Mr. Wilsey's dream cars are a BMW M3 coupe or a Ferrari.
Now, with Toyota's sales hitting new records, it craves a makeover for Lexus. It wants to become a brand associated with the biggest names in luxury. Imagine "Louis Vuitton, Prada, Gucci and Lexus all mentioned in the same breath," says Brian Bolain, a Lexus marketing manager.
To get there, Lexus, a company known for its ultra-conservative culture, is introducing a slew of new vehicles costing over $70,000 -- more than anything Lexus has previously sold and nearly twice the price of its best-selling RX sport-utility vehicle. It deployed a "super affluent team," a group that traveled the country asking the ultra-rich what they want. It is throwing lavish parties around the country and cozying up with brands like Vogue Magazine and Neiman Marcus stores.
The best-selling luxury car brand in the U.S., Lexus is hardly struggling. Sales grew a healthy 7% to 322,000 vehicles last year. The company has no plans to move away from lesser-priced vehicles like the $33,470 ES and the $30,255 IS sedan, which together generate more than a third of the brand's sales. But Lexus, which is sold only in certain foreign markets, still lags well behind the world-wide sales of the BMW and Mercedes brands, which together sold more than 179,000 cars last month alone.
The "prestige luxury" segment, cars priced above $70,000, is a juicy target. Its sales have doubled in the past five years.
But today, the brand lacks the necessary cachet. "For that high-end buyer, we're not on their shopping list," says Bob Carter, head of Lexus's U.S. office.
Marketing, the lifeblood of a luxury brand, isn't a traditional strength for Lexus, which is known more for reliability and customer service. History shows it can be very difficult to change consumer perceptions of a car brand. And luxury buyers, usually older, could be even more stubborn, as they are often highly loyal to the kinds of cars they've previously owned.
WSJ's Gina Chon talks about some of the new features of the forthcoming Lexus LS V8 hybrid, which is expected to top $100,000.
Lexus's somewhat nerdy image dates back to its very beginnings in 1989. While Mercedes and BMW threw lavish parties to herald the launch a new model, Lexus's dealers offered free wine and cheese. The European rivals run ads in exotic locales stressing excitement and performance. Lexus's campaigns focus on specific technological features, like rotating headlamps.
One big challenge: high-end luxury cars traditionally target men. They represent 60% of Mercedes buyers and 58% of BMW buyers. But 51% of Lexus's buyers are female, a statistic that mirrors the proportion of women in the overall car market.
Lexus started its new push in 2005 when it assembled the super-affluent team -- nine Lexus employees from various departments including marketing and finance. The team interviewed car buyers who had at least $5 million in assets (excluding their primary residence) and who had previously owned a few luxury vehicles. More than half of the interviewees selected were men.
For the next two years, the team crisscrossed the country, asking 100 ultra-wealthy people such questions as "Why do you live where you live?" and "What do you do for enjoyment?" "We asked ourselves and these people a lot of questions," says team leader and marketing chief Deborah Wahl Meyer.
Owning Fleets
One of the team's early realizations was that the ultra-rich don't have a car. They have fleets of them, often scattered at different homes and vacation spots across the country. And not only did the rich have a lot of cars, some at the team were surprised by how often many buyers changed their fleet, trading cars more often than most people change wardrobes. Some changed cars in three months, either because they changed their minds or wanted the newest model.
That discovery led Lexus to realize that it didn't necessarily have to compete with other ultra-luxury brands as much as complement them. A Lexus sedan may not be as chic as Porsche 911 convertible, but it might be added as the practical daily driver for someone who already has one. Indeed, the team also found that many of the ultra-rich didn't act all that differently from regular Lexus owners, identifying themselves as "upper middle class" and shopping at places like Costco, Home Depot and Target.
New Hybrid
For those Costco runs -- and for a bit of Saturday night showing off -- Lexus this summer is launching the LS600h, a hybrid electric luxury sedan intended to combine the performance of a 12-cylinder engine with the promise of better fuel economy. The price tops $100,000.
The team found that ultra-wealthy buyers also like unique experiences inaccessible to the general public. So Lexus tripled the number of events it holds. Last August, it hosted a fashion show with Vogue at a vintage car show in California. It's offering 100 special-edition vehicles to big-ticket customers of retailers Neiman Marcus and Bergdorf Goodman.
To celebrate the redesigned top-of-the-line LS sedan, launched last fall, Lexus dealers threw parties on a grand scale. Two Arizona dealers hosted acrobats from Cirque du Soleil for a private performance. A Texas dealership celebrated with the legendary Motown group the Temptations, caviar, and champagne. In all, 182 of Lexus's 221 dealers had elaborate parties, many of which cost in the six figures, as opposed to the several thousands of dollars that were spent before.
Rich buyers said they rely more on their peers for advice than third-party groups. So to launch its new LS600h, the luxury hybrid sedan, Lexus is starting a test-drive program in which an influential person in a metro area -- like a Hollywood mogul -- is given the car to drive for a month. When the month is up, that person can choose the next person who gets to have the car for a month.
Quality of Service
The Lexus team says they were surprised by quality of service some super-luxury car buyers experience. "A Ferrari owner said when he takes a car in, he expects to be called and told what is going to be done to it, have it done and that's it. People who have Rolls Royces and Bentleys said the same thing," says Mr. Bolain. "But some of these people say they weren't getting that kind of service." The three car makers all say they offer impeccable service.
Lexus created four new "brand-experience manager" positions for each of its regions in the U.S. to answer queries and guide dealers on efforts like launch parties. That's a big deal for Lexus, a company so intent on avoiding waste that employees there joke it takes "an act of God" to add even one person to the staff.
To attract men to the brand, Lexus -- long known more for cushy comfort than pulse-racing performance -- is plunging into the sports-car arena in 2008, launching a souped-up high-performance series similar to Mercedes's AMG series and BMW's M models. And later this year, Lexus will announce production details of its "super Lexus" with more than 500 horsepower.
Long Haul
U.S. car makers, which have spent years trying to lure consumers away from the Japanese, learned the hard way how difficult it can be to change perceptions of a brand. It's "a long-term process," says Francisco Codina, a sales and marketing executive at Ford Motor Co.
Luxury buyers may be even more resistant. Other car makers have also found it a challenge to sway buyers from Mercedes and BMW. "If you've always bought a BMW and love BMW, why would you switch to another brand?" explains Jim Taylor, head of General Motors Corp.'s Cadillac division.
At a Lexus focus group session held at the Avalon Hotel in Beverly Hills, one 50-year-old advertising executive said he questioned whether he should give up the cachet of owning a Mercedes for a Lexus, even though he thought Lexus was a better-quality car. "My perception is that (Lexus) developed more for utility, to be a good sound car, than to deliver on style," said a 46-year-old entrepreneur who participated in a research session.
Still, Lexus's effort comes at a time when the European car makers may be losing the exclusivity that made them so desirable in the first place. By subsidizing monthly lease payments and other types of financial engineering, luxury car makers that once catered only to the truly rich have been able to dramatically expand their customer base.
In Orange County, Mercedes has almost three times the market share of Chrysler and around the same market share as Nissan, according to R.L. Polk & Co. And BMW is widely expected to launch the first car below the $30,000 price barrier when it brings its small 1-series hatchback here next year.
Donna Boland, a spokeswoman for DaimlerChrysler AG's Mercedes-Benz division, says the company's broad range of prices is a positive attribute, with different models serving different luxury customers' needs. Tom Purves, head of BMW AG's U.S. sales office, says high-end customers do want more exclusivity, but says an owner of a $121,400 sedan won't resent a 25-year-old with a much cheaper model.
There's been encouraging early response for Lexus at its newly built $75 million Newport, Calif. dealership, where visitors can practice their golf swing at the putting green or play arcade games. Allen Moznett, the dealer's general manager, says there's a waiting list for the new longer LS sedan, which can go for over $83,000.
Chris Hummel, a vice president at software maker Oracle Corp. recently bought a $140,000 Mercedes. Yet he's already seen about five others driving his pricey Mercedes in the San Francisco Bay area where he lives.
"Lexus doesn't play in that [price range] so they don't have credibility there," he says. "But given its reputation for customer service, I would jump all over it if they went there."
Write to Gina Chon at gina.chon@wsj.com
Bud.TV: A Bomb for Anheuser-Busch?
A quick-follow up to last week's assigned reading on Bud.TV from the March 19 Brandweek:
Bud.TV may be giving Anheuser-Busch a sour aftertaste. The $30 million branded digital network, aimed at twentysomething males, averaged just 230,000 visitors in February, its first month online, per ComScore Media Metrix. A-B execs reportedly projected reaching 2-3 million visitors per month by year's end.
It seems like Anheuser-Busch should stick to making beer and leave the creation of online entertainment networks to the entertainment companies, and try to find another, more effective way to reach the coveted 21-34 male demographic...
Bud.TV may be giving Anheuser-Busch a sour aftertaste. The $30 million branded digital network, aimed at twentysomething males, averaged just 230,000 visitors in February, its first month online, per ComScore Media Metrix. A-B execs reportedly projected reaching 2-3 million visitors per month by year's end.
It seems like Anheuser-Busch should stick to making beer and leave the creation of online entertainment networks to the entertainment companies, and try to find another, more effective way to reach the coveted 21-34 male demographic...
Saturday, March 24, 2007
Generic Gas vs. Brand Name - Any difference?
OK, all you drivers out there - this thought may have crossed your mind. Why is the fuel at a Mobil/Shell/BP, etc. gas station priced higher than the average small town 'no-name' gas station? According to this ABC News report, it's simply because of the brand name!
According to scientific lab tests carried out on various brand-name and generic gas fuels, results show that the difference between a generic gas and a brand name gas is technically, zero. Experts believe that the brand name gas suppliers (ex: Mobil, Shell) are simply basing their prices on simple brand marketing strategies: 1) Brand loyalty 2) Brand recognition. The fact that most consumers feel comfortable buying brand name gas as opposed to generic gas, tells you that this strategy has been quite successful. For example, consumers may chose to buy fuel at a brand gas station because of it's customer service (ex: 'brand gas station' credit card usage, quick payment methods). In other words, consumers are willingly to pay extra for a brand name gas b/c of the added incentives and 'appearance-engineered' quality attributed to the brand name. Hence, the extra cents you pay for 'Mobil/Shell' gas is the 'added value' created via the supplier's brand-name. Excellent price strategy!
Link to video report:
Friday, March 23, 2007
Speaking of Major League Baseball
I found this interesting article on how MLB signed a deal with Sharp "that makes Aquos the “official high-definition television” of MLB. " I believe that sponsorships like this adds a lot of brand awareness, baseball games are on several nights a week and are always on TVs in bars and restaurants across the country. Let me know what you all think of the article and this type of sponsorship.
http://www.brandweek.com/bw/news/recent_display.jsp?vnu_content_id=1003561694
Posted to Brandweek March 22, 2007
http://www.brandweek.com/bw/news/recent_display.jsp?vnu_content_id=1003561694
Posted to Brandweek March 22, 2007
Thursday, March 22, 2007
Branding a Baseball Stadium
Here is an interesting set of articles on selling naming rights for a sports stadium and whether the financial gains are worth the missed branding opportunity. As the rights agreements expire the trend has become that some stadiums see name changes every five years or more. This causes confusion and alienation with fans. The article describes how the Texas Rangers got fed up with the endless cycle and are buying out of their agreement and changing the stadium name back to Rangers Ballpark. They believe by branding the park again they will enhance the team's overall brand and fan experience because that experience is so closely tied to attending games at the ballpark.
[link]http://www.dallasnews.com/sharedcontent/dws/spt/columnists/ksherrington/stories/032107dnsposherrington.2c212c5.html[/link]
[link]http://www.star-telegram.com/281/story/42404.html[/link]
[link]http://www.dallasnews.com/sharedcontent/dws/spt/columnists/ksherrington/stories/032107dnsposherrington.2c212c5.html[/link]
[link]http://www.star-telegram.com/281/story/42404.html[/link]
Wednesday, March 21, 2007
Starbucks Branding Concerns
Interesting article in today's WSJ about the market's response to weaker sales and Chairman Howard Schultz's memo last week indicating that the "push for efficiency may be diluting the brand and has made the company more vulnerable to encroachment from fast-food chains and oter competotiors."
The article goes on to discuss the positive links that a strong brand has directly on driving stock price amid weak sales numbers. Even in the face of stronger competition (McDonald's is offering expresso now in select stores), the Starbucks brand can still be positioned as a stock to watch with solid growth potential.
Howard Schultz is in Seattle today at the investor's conference to assure investors that the brand is as strong as ever, meaning so is the company.
The article goes on to discuss the positive links that a strong brand has directly on driving stock price amid weak sales numbers. Even in the face of stronger competition (McDonald's is offering expresso now in select stores), the Starbucks brand can still be positioned as a stock to watch with solid growth potential.
Howard Schultz is in Seattle today at the investor's conference to assure investors that the brand is as strong as ever, meaning so is the company.
Tuesday, March 20, 2007
Brandsploitation - A New Genre in Film
An interesting article from brandchannel.com that sheds light on the product placement concept in movies. The author uses various Hollywood examples to explain the varying strategies and techniques that could be used to integrate a brand into mainstream commercial films.
Link to the article:
http://www.brandchannel.com/features_effect.asp?pf_id=231#more
Link to the article:
http://www.brandchannel.com/features_effect.asp?pf_id=231#more
Remember the movie "The Italian Job"? That was a unique example where BMW Mini was almost a central character in the film plot.
BMW Mini Launches Web-Based Movies
As was the case with the parent BMW, Mini-USA division is launching web-based movies. The movies can be found @ = http://www.hammerandcoop.com/#
This is part of an overall national campaign run by Mini-USA to increase brand awareness and buzz for a new Mini model, that is not a whole lot different from the existing or older models. Buzz strategy includes, billboard ads, online movies, cinema ads, MySpace/YouTube ads and the print media placements.
Trudy Hardy, Mini marketing manager, who has been at Mini since its inception, says the challenge was creating awareness and buzz for a new Mini that doesn't look strikingly different from the previous model. She says that because many of the new version's differences are under the hood and inside, a subdued pitch would likely get caught in the clutter.
"We are seeing more and more people doing inserts, and what was unique and breakthrough is becoming the norm," she says. "So we are looking at new ways to approach things." She said that teasers on YouTube have garnered 18,000 hits since they launched this month.
As far as the online movies go....
Unlike BMW's "The Hire" films--which were not at all about touting specific product attributes, but about putting a kind of aesthetic halo around the BMW brand--the Mini "Hammer & Coop" films boast product attributes by making Coop a talking car--albeit a British one--in the vein of Eighties TV show "Knight Rider." "We actually gave Coop a personality, a voice, so while there's really an interesting dynamic between Hammer and the '07 Mini through the films, they talk about all the new features of the car," says Hardy. "It is really much more about the product."
In one sequence, Hammer can't find the keys to Coop, so the car explains, "just push the button," demonstrating that new feature. "Coop," says Hammer, "you continue to amaze."
More on the article:
http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticle&art_aid=55761
This is part of an overall national campaign run by Mini-USA to increase brand awareness and buzz for a new Mini model, that is not a whole lot different from the existing or older models. Buzz strategy includes, billboard ads, online movies, cinema ads, MySpace/YouTube ads and the print media placements.
Trudy Hardy, Mini marketing manager, who has been at Mini since its inception, says the challenge was creating awareness and buzz for a new Mini that doesn't look strikingly different from the previous model. She says that because many of the new version's differences are under the hood and inside, a subdued pitch would likely get caught in the clutter.
"We are seeing more and more people doing inserts, and what was unique and breakthrough is becoming the norm," she says. "So we are looking at new ways to approach things." She said that teasers on YouTube have garnered 18,000 hits since they launched this month.
As far as the online movies go....
Unlike BMW's "The Hire" films--which were not at all about touting specific product attributes, but about putting a kind of aesthetic halo around the BMW brand--the Mini "Hammer & Coop" films boast product attributes by making Coop a talking car--albeit a British one--in the vein of Eighties TV show "Knight Rider." "We actually gave Coop a personality, a voice, so while there's really an interesting dynamic between Hammer and the '07 Mini through the films, they talk about all the new features of the car," says Hardy. "It is really much more about the product."
In one sequence, Hammer can't find the keys to Coop, so the car explains, "just push the button," demonstrating that new feature. "Coop," says Hammer, "you continue to amaze."
More on the article:
http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticle&art_aid=55761
Follow-Up to Due Dilligence with Sponsorships
Hi
We heard a lot of great things about NASCAR yesterday. Well, AT&T is suing NASCAR for some logo / sponsorship shennanigans.... Remember - sponsors should be able to retain control of the brand and work with event organizers to accomodate for changes.
AT&T says sues NASCAR over car logo
Reuters
Updated: 6:09 p.m. ET March 16, 2007
NEW YORK - AT&T Inc. said Friday it sued NASCAR, charging the motor sports association violated the telecommunications company's right to put its logo on a race car.
AT&T filed the lawsuit after NASCAR denied a plan to change the paint scheme for the No. 31 race car's rear quarter panel, the company said.
The lawsuit filed in U.S. District Court in Atlanta, accuses NASCAR of "attempting to force the company out of the sport," AT&T said in a statement. A spokesman for NASCAR said the racing association had not yet seen the suit.
AT&T is in the middle of an effort to rebrand its cell phone unit Cingular Wireless as AT&T. The changes on the race car would have featured AT&T's globe logo.
But a competing telecommunications company, Sprint Nextel , is the key sponsor for the premier racing circuit of NASCAR, National Association for Stock Car Auto Racing.
That sponsorship contract, according to the NASCAR spokesman, prohibits AT&T from rebranding the race car.
"In the telecommunications sector, only the Cingular and Alltel brands are permitted on cars competing in the Nextel Cup because our contract with Sprint grandfathered in those brands," he said.
In a statement, John Burbank, vice president of marketing for AT&T, said: "There is nothing in our contract that prevents us from changing the Cingular brand name to our new brand, AT&T, on the No. 31 car."
He added that the grandfather clause "states we can continue as a sponsor as long as we do not increase our brand position on the vehicle we sponsor and do not move to a different race team."
We heard a lot of great things about NASCAR yesterday. Well, AT&T is suing NASCAR for some logo / sponsorship shennanigans.... Remember - sponsors should be able to retain control of the brand and work with event organizers to accomodate for changes.
AT&T says sues NASCAR over car logo
Reuters
Updated: 6:09 p.m. ET March 16, 2007
NEW YORK - AT&T Inc. said Friday it sued NASCAR, charging the motor sports association violated the telecommunications company's right to put its logo on a race car.
AT&T filed the lawsuit after NASCAR denied a plan to change the paint scheme for the No. 31 race car's rear quarter panel, the company said.
The lawsuit filed in U.S. District Court in Atlanta, accuses NASCAR of "attempting to force the company out of the sport," AT&T said in a statement. A spokesman for NASCAR said the racing association had not yet seen the suit.
AT&T is in the middle of an effort to rebrand its cell phone unit Cingular Wireless as AT&T. The changes on the race car would have featured AT&T's globe logo.
But a competing telecommunications company, Sprint Nextel , is the key sponsor for the premier racing circuit of NASCAR, National Association for Stock Car Auto Racing.
That sponsorship contract, according to the NASCAR spokesman, prohibits AT&T from rebranding the race car.
"In the telecommunications sector, only the Cingular and Alltel brands are permitted on cars competing in the Nextel Cup because our contract with Sprint grandfathered in those brands," he said.
In a statement, John Burbank, vice president of marketing for AT&T, said: "There is nothing in our contract that prevents us from changing the Cingular brand name to our new brand, AT&T, on the No. 31 car."
He added that the grandfather clause "states we can continue as a sponsor as long as we do not increase our brand position on the vehicle we sponsor and do not move to a different race team."
Monday, March 19, 2007
The Apprentice
A recent example of internet based product placement was in last night's episode of the apprentice. They had to make the first "cliffhanger" episode of a internet drama featuring a new cleaning product by Tide. The results were pretty lame in my opinion. They really had to force-fit the product into their work so it did not feel natural at all. I guess it only works when the product and it's potential use scenarios have more emotional weight like we saw with BMW today.
http://www.nbc.com/The_Apprentice_6/
http://www.nbc.com/The_Apprentice_6/
Sunday, March 18, 2007
Jaguar For James Bond 22?
Bond will change his car again?!! When the 007 movies helps these car manufacturers to promote their brands and cars, I am wondering that frequently changing 007's vehicle and obviously do the placement marketing(SE cell phone, Sony laptop etc) will hurt the 007 brand or not.
Above: The Jaguar C-XF concept car
Jaguar For James Bond 22?8th January 2007
James Bond may be forced to drop Aston Martin for the 22nd 007 film due in 2008, but his car is likely to stay British with a new Jaguar XF...No sooner had fans acclimatised to a new actor in James Bond's tuxedo, news is reaching MI6 that his equally famous car marque is about to undergo a change for the next film. Daniel Craig debuted as 007 in "Casino Royale" (2006) and co-starred with the new Aston Martin DBS, so new in fact that the car will only go in to production later this summer when 300 units will made (for those tycoons out there, the DBS will cost between £150,000 and £170,000 if you can make the shortlist).
But the association with one of Britain's most famous car brands is unlikely to continue in the 22nd film in the series, which is due to start shooting in January 2008. US giant Ford Motor Company - who own Aston Martin - put the company up for sale late last year as part of an attempt to restructure its balance sheet. Ever since, the UK firm based in Gaydon and Newport Pagnell has attracted a long line of potential suitors. Industry watchers expect Ford to offload Aston Martin sometime in 2007 for over $1 billion.
This leaves Q Branch in a quandary - which car do they issue 00-agents in 2008? Despite the planned Aston Martin sell-off, Ford will still have the exclusive rights for vehicle product placement in the 22nd film due to their $100m three-picture deal which began with "Die Another Day" in 2002.
MI6 understands that Ford is lining up Jaguar as Bond's next marque. Despite the film being in the early stages of script development by regular scribes Neal Purvis and Robert Wade, MI6 has been tipped off that the new Jaguar XF model - also due out in 2008 - is being groomed for 007.
Jaguar recently unveiled the "C-XF" concept car at the press preview of the Detroit Motor Show this weekend. The C-XF is tipped as a preview to the new XF four-door sedan which is being shrouded in secrecy and will not be publicly unveiled until the Frankfurt auto show in September.
Positioned in the luxury mid-size segment, the new Jaguar XF will replace the S-TYPE saloon in the Jaguar model line-up. Designed and developed at Jaguar's Product Development Centre at Whitley in Coventry, UK, the new Jaguar XF will be built at Jaguar's Advanced Manufacturing Centre at Castle Bromwich in Birmingham, UK.
"The Jaguar XF is a new sports saloon that will challenge people to think again about Jaguar as daring and different," commented Bibiana Boerio, managing director of Jaguar Cars. "Our new XK sports car has been very well-received and is enjoying great success. We are now moving on to the next stage of Jaguar's exciting new design era – and if you like the new XK, just wait until you see the new Jaguar XF!"
The C-XF concept is powered by the same 400 horsepower 4.2 litre V8 as the current S-Type R. It delivers in excess of 420 horsepower and 368 pound-feet of torque and could, in theory, power the concept to 180 mph. Behind the engine is the same six-speed automatic transmission that partners with the V8 in the XKR.
Designed by the same teams that produced the award-winning Jaguar XK sports GT range in 2005 – headed by Jaguar Director of Design Ian Callum and Head of Advanced Design Julian Thomson – the C-XF concept is a precursor to cars that will become recognised for their ground-breaking exterior looks and innovative interiors.
The C-XF concept car signals the onset of a new era for Jaguar. A stunning, four-door sports saloon which blends design purity with unmistakable dynamism, the C-XF is a clear indication of the design direction that the next generations of Jaguar saloons will take. Even though 007's days with Aston Martin may be numbered, the future looks bright for Bond in a British-made luxury car that would make any secret agent proud.
Stay tuned to MI6 for all the latest coverage of the 22nd James Bond film.
Produced by Michael G. Wilson and Barbara Broccoli (Eon Productions), BOND 22 (title to be announced) is scheduled for release November 7th 2008. Principal photography will start in Q1 2008, at locations to be announced. The script is currently under development by regular scribes Neal Purvis & Robert Wade. It will be British actor Daniel Craig’s second outing as James Bond, following his debut film "Casino Royale" released November 16th 2006. He is the sixth actor to play the 007 role in the franchise.
This article and picture come from : http://www.mi6.co.uk/sections/articles/bond_22_report_jan_07.php3
Saturday, March 17, 2007
Slogan-mania
What is the ability for a slogan to spread and shape a brand? (see following link).
http://www.nytimes.com/2007/03/16/business/media/16adco.html?ref=media
http://www.nytimes.com/2007/03/15/business/media/15adco.html?ref=media
Shopping and Technology
This article in the NY Times discusses a new technology that allows you to try on clothes in a kind of virtual mirror and lets your friends see you and comment live from anywhere with a computer. It's sort of a live version of my virtual model combined with myspace and could be a way for brands to differentiate themselves in the highly competitive fashion industry.
Friday, March 16, 2007
Leveraging the Power of a Brand
I thought this article was interesting. Basically, companies are grafting dormant brand names onto new products. For example, Ford opted to resurrect the Taurus name for the new 500 line. A primary reason behind this move is to leverage a consumer's awareness of a given brand (rather than spend a large sum of money introducing a new brand to the market).
I never really thought of branding in this sense, but companies such as Coca-Cola and Ford are utilizing this branding strategy.
http://www.slate.com/id/2161805/?GT1=9231
moneybox
Attack of the Zombie Brands!
Why Tab, the Taurus, and so many other failed products are getting resurrected.
By Daniel Gross
Posted Friday, March 16, 2007, at 7:17 AM ET
Last October, few tears were shed when Ford ended production of the Taurus. The unlovely, workhorse sedan had been the company's best-selling unit for much of the 1990s, mostly because of huge sales to rental-car companies. Shutting down production was a sign that Ford, in the midst of a serious restructuring, was looking to the future. But then in February, Ford announced that it would resume producing a car with the Taurus nameplate in the summer of 2007.
The Taurus isn't the only zombie brand around. Poke around the vast consumer products marketplace, and it's easy to find dead or dormant brands that have been revived or trotted out for second or third chances, from low-end autos to high-end couture, from mass-market soft drinks to gossipy magazines.
What gives? Why kill a product only to resurrect it? Businessspeople and marketers put great store in the concept of brand equity, the set of intangible factors that account for the value of a brand or a product. Even when products fail or are withdrawn from the marketplace, they still retain vestigial brand equity. Some consumers used the product or will recall the name from advertisements. And given the cluttered marketplace, any advantage helps. That's precisely what Ford recognized in slapping the Taurus name on an existing model, the 500. "Consumer awareness of the Taurus name is double the Five Hundred that it's replacing," Ford executive Mark Fields said in February when he announced the re-running of the Taurus. The company also noted that even after its retirement, the Taurus "is one of the top three most recognized Ford nameplates, behind only the F-Series and Mustang." For a corporation not to use such an intangible asset would be wasteful.
Reviving a dormant brand is also a perfectly postmodern gesture and befits a culture in which innovation frequently consists of retooling models that have worked in the past. Last year, Coca-Cola relaunched Tab (the 1970s path-blazer for Diet Coke) as Tab Energy. It's a mash-up, combining "one of Coca-Cola North America's most iconic brand names with one of the fastest-growing segments in the beverage industry." Same name, different product.
Life, now in its third incarnation, has been similarly updated to keep pace with the times—or at least to stay just behind them. Founded in 1936, the Time, Inc. property was a great, picture-laden weekly magazine. But in 1972, having been superseded by television and other magazines, it stopped publication. The powerful brand was revived as a monthly from 1978 to 2000. But, having been superseded by television, other magazines, and the Internet, it closed again in 2000. In 2004, Life returned as a celebrity-oriented, fluffy weekly that is inserted in Sunday newspapers.
For entrepreneurs interested in niche markets, reviving a dead brand can be an effective way of appealing to a narrow consumer base that has a reverence for the past. To most shoppers, the name Madeleine Vionnet doesn't ring une cloche. But for true fashionistas, Vionnete, inventor of the bias cut, couturier to Dietrich and Garbo, is an icon. Alas, her last collection appeared in 1939. Last summer, the name and the house were revived under the leadership of Greek-born designer Sophia Kokosalaki. Vionnet garments will soon grace the aisles of Barney's.
Not all brand-resurrection efforts are so high-minded. Sometimes finding dead brands is a form of dumpster-diving. Entrepreneurs have made businesses out of picking up discarded "heritage brands" on the cheap and trying to restore them to their rightful place on the shelves. Nuprin? Ovaltine? Prell? Without significant resources or large corporations behind them, these efforts tend not to meet with much success. The consumer-products marketplace is highly Darwinian, after all, and the brand names available for pennies are generally those that failed to adapt.
In the Internet age, brands sometimes mount comebacks before they've even gone under. Radar magazine folded in 2003 after two issues and re-emerged as a Web site and then as a magazine in 2005, only to fold again. A few months later, it returned for a third effort. Those who are quick to write Radar off would do well to recall that the magazine Radar would like to be was itself a zombie brand. Vanity Fair, which had a brilliant run as a Condé Nast property during the economic boom of the 1920s, was folded in the 1930s, and successfully re-emerged five decades letter as a Condé Nast property amidst another economic boom.
I never really thought of branding in this sense, but companies such as Coca-Cola and Ford are utilizing this branding strategy.
http://www.slate.com/id/2161805/?GT1=9231
moneybox
Attack of the Zombie Brands!
Why Tab, the Taurus, and so many other failed products are getting resurrected.
By Daniel Gross
Posted Friday, March 16, 2007, at 7:17 AM ET
Last October, few tears were shed when Ford ended production of the Taurus. The unlovely, workhorse sedan had been the company's best-selling unit for much of the 1990s, mostly because of huge sales to rental-car companies. Shutting down production was a sign that Ford, in the midst of a serious restructuring, was looking to the future. But then in February, Ford announced that it would resume producing a car with the Taurus nameplate in the summer of 2007.
The Taurus isn't the only zombie brand around. Poke around the vast consumer products marketplace, and it's easy to find dead or dormant brands that have been revived or trotted out for second or third chances, from low-end autos to high-end couture, from mass-market soft drinks to gossipy magazines.
What gives? Why kill a product only to resurrect it? Businessspeople and marketers put great store in the concept of brand equity, the set of intangible factors that account for the value of a brand or a product. Even when products fail or are withdrawn from the marketplace, they still retain vestigial brand equity. Some consumers used the product or will recall the name from advertisements. And given the cluttered marketplace, any advantage helps. That's precisely what Ford recognized in slapping the Taurus name on an existing model, the 500. "Consumer awareness of the Taurus name is double the Five Hundred that it's replacing," Ford executive Mark Fields said in February when he announced the re-running of the Taurus. The company also noted that even after its retirement, the Taurus "is one of the top three most recognized Ford nameplates, behind only the F-Series and Mustang." For a corporation not to use such an intangible asset would be wasteful.
Reviving a dormant brand is also a perfectly postmodern gesture and befits a culture in which innovation frequently consists of retooling models that have worked in the past. Last year, Coca-Cola relaunched Tab (the 1970s path-blazer for Diet Coke) as Tab Energy. It's a mash-up, combining "one of Coca-Cola North America's most iconic brand names with one of the fastest-growing segments in the beverage industry." Same name, different product.
Life, now in its third incarnation, has been similarly updated to keep pace with the times—or at least to stay just behind them. Founded in 1936, the Time, Inc. property was a great, picture-laden weekly magazine. But in 1972, having been superseded by television and other magazines, it stopped publication. The powerful brand was revived as a monthly from 1978 to 2000. But, having been superseded by television, other magazines, and the Internet, it closed again in 2000. In 2004, Life returned as a celebrity-oriented, fluffy weekly that is inserted in Sunday newspapers.
For entrepreneurs interested in niche markets, reviving a dead brand can be an effective way of appealing to a narrow consumer base that has a reverence for the past. To most shoppers, the name Madeleine Vionnet doesn't ring une cloche. But for true fashionistas, Vionnete, inventor of the bias cut, couturier to Dietrich and Garbo, is an icon. Alas, her last collection appeared in 1939. Last summer, the name and the house were revived under the leadership of Greek-born designer Sophia Kokosalaki. Vionnet garments will soon grace the aisles of Barney's.
Not all brand-resurrection efforts are so high-minded. Sometimes finding dead brands is a form of dumpster-diving. Entrepreneurs have made businesses out of picking up discarded "heritage brands" on the cheap and trying to restore them to their rightful place on the shelves. Nuprin? Ovaltine? Prell? Without significant resources or large corporations behind them, these efforts tend not to meet with much success. The consumer-products marketplace is highly Darwinian, after all, and the brand names available for pennies are generally those that failed to adapt.
In the Internet age, brands sometimes mount comebacks before they've even gone under. Radar magazine folded in 2003 after two issues and re-emerged as a Web site and then as a magazine in 2005, only to fold again. A few months later, it returned for a third effort. Those who are quick to write Radar off would do well to recall that the magazine Radar would like to be was itself a zombie brand. Vanity Fair, which had a brilliant run as a Condé Nast property during the economic boom of the 1920s, was folded in the 1930s, and successfully re-emerged five decades letter as a Condé Nast property amidst another economic boom.
Friday, March 9, 2007
Rachael Ray...Dunkin' Donuts
On the topic of celebrity-brand tie-ins, I'd be really interested to see what people think about this new initiative. Personally I would never put Rachael Ray and Dunkin' Donuts together, although I suppose that if Dunkin' is going to try to expand and go the healthier route, she might be a good choice -- an energetic, nationally recognized personality known for quick, somewhat healthy food -- but there will be so many detractors, so many people who think she's just annoying and are put off , and of course this will be a sharp contrast to the more subtle They Might Be Giants ads.
As part of the team who is presenting on Sponsorships the Monday after break, I've been reading a lot on strengthening the link between the sponsoring company and the sponsored event or celebrity, and how it works best if all aspects of the brand are tied to the sponsorship -- not just logo but product, advertising, sales. I keep picturing Rachael Ray staring up at me from my next cup of Dunkin' Donuts coffee!
Rachael Ray to tout Dunkin's coffee, donuts
Boston Business Journal - 6:19 AM EST Friday, March 9, 2007
Dunkin' Brands Inc. has inked a deal for cooking guru and TV star Rachael Ray to appear in a new advertising campaign for the coffee and donut marketer Dunkin' Donuts, the company said on Thursday.
Boston-based Hill, Holliday, Connors, Cosmopulos - Dunkin Donut's long-time ad agency - will create the campaign which will include TV, print, radio, online, in-store marketing and personal appearances on behalf of the brand.
Besides starring in TV spots, Ray will also lend her culinary perspective to the Dunkin' Donuts culinary team in the development of new, healthier options for food and beverages.
Most recently Canton, Mass.-based Dunkin' Donuts ran a series of TV spots that featured quirky jingles about Dunkin' coffee, specialty drinks and snacks, by the alternative music group They Might be Giants.
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