Category: Marketing Insights
November 29th, 2006

The Web cuts the fat from our shopping basket.

Proponents of the "would you like fries with your burger" approach to marketing listen up.

Our days of foisting unwanted products and features on Johnny Consumer are numbered.  The Internet is freeing us from the tyranny of "added value". William Bulkeley points out in today’s Journal that "when customers find a way to avoid buying excess baggage, they move quickly":

– The film industry spent years selling us rolls of 24 shots when all we ever  wanted was one or two good pictures of Fido. Walgreen’s continues the tradition by offering two sets of prints for the price of one.  New web services like Flickr and iPhoto allow us to pay for only the pictures we want.

– For years, the music industry sold us albums packed with songs, when all we really wanted was one hit single. iTunes and Napster saved us from this horrible blight.

– Newspapers sell us advertising packaged around news. TV assails us with unwanted commercials every 5 minutes or so. While we, the ad industry, continue to fool ourselves with the notion that consumers WANT to see our ads. Not so Google (Well not so much anyway).

– Encyclopedia Brittanica sold thousands of unopened volumes to people seeking enlightenment on just a few issues. Saved by Wikipedia and search engines.

– Technology companies of all sizes sell us products packed with features we will never use (and never asked for). Well, no one has saved us from this just yet. But its coming.

– Ad agencies and the media have sold Corporate America billions of dollars of advertising solutions with vague promises of "creating awareness". Perhaps never before has so much been paid for such nebulous results. (Do I hear you say, Praise Be for the Mortar?).

There is an important point here. The Web has returned the power of choice to the people.

But then again think of what we will miss?

My kids will never discover they like the "B" side more than the hit.

And who wants to throw away all those shoeboxes full of aging photographs? Which of us has not spent a few fond, unexpected hours, rummaging through boxes of family photos?

For the full perspective on this dimension of the consumer-internet revolution, read the full story here.

 

November 29th, 2006

Following Target’s lead, Home Depot turns to product design to fire-up sales.

Home_depot_home_hero
"The new fire extinguisher with the smooth lines of a martini shaker is the centerpiece of a new line of Home Depot products, called Orange Works, that will be unveiled today and begin appearing in stores next fall.

"The Orange Works project is a collaboration between the retailer and Arnell Group, a New York marketing and design company that is a division of Omnicom Group Inc. Such private-label products have become a retailing trend, helping to differentiate what might otherwise be commoditized goods. They also typically carry fatter profit margins…

"Home Depot expects the line’s first three products to generate sales of $250 million the first year — a fraction of 1% of the company’s expected $90 billion in 2007 sales. But Chief Executive Robert Nardelli says he expects the new line to bring additional traffic that will result in increased residual sales."

Brand advocates rejoice, the new fire extinguisher is called a  ‘Home Hero’. 

And in a somewhat provocative move it appears to be silver and not red.  One wonders if that was a smart move?

Read more here (Wall Street Journal online, a subscription may be required).

November 22nd, 2006

It’s a Small CrocsWorld After All

Disneycrocs1

Brilliant, simple cobranding. Take two superpower brands that embody "fun and magic" and combine… "Wonder-Twin powers, activate! Form of a Tinkerbell Croc in lime green and pink! Shape of a Captain Jack Sparrow Croc in black and maroon!"

Crocs Press Release: "The Disney by CROCS line, which is targeted towards children and
adults, will debut with special-edition Mickey Mouse die-cut Adult
Beach and Kid’s Cayman models. These styles will be available in a
broad range of two-toned color pallets including Mickey’s signature
black and red. Other models include an array of unique designs
emphasizing the distinctive personalities of Disney’s characters
including Mickey and Friends, Winnie the Pooh and Friends, Disney
Princess, Disney Fairies, as well as Pirates of the Caribbean and
Disney*Pixar’s Toy Story and Cars."

I know my 4 year old daughter would be THRILLED to don a pair of Disney Princess Crocs!

If you are interested in reading more on Crocs, here are a couple great stories from Business 2.0 featured on CNN Money:

How a stay-at-home mom sold Crocs a $10 million idea.
(about Jibbitz, the charms you see all the "cool kids" wearing on their Crocs.

When Crocs attack, an ugly shoe tale.

By the way, did you know that in Israel, one in six people owns a pair of Crocs?

November 19th, 2006

Unsold over-the-top holiday gifts boost the bottom line: Branson’s galactic trip returns 600% ROI.

Virgin_galactic
For less than $2 million you, thou blessed reader, can charter a flight aboard Virgin Galactic’s SpaceShipTwo. Soar 63 miles above sea level and experience weightlessness
firsthand. After returning to Earth, you and your guest will
enjoy luxury accommodations on Necker Island and four nights of
all-inclusive festivities on Sir Richard Branson’s private island
retreat in the British Virgin Islands.

The Virgin spaceship vacation is just one of the many delights in the recently published Nieman Marcus 2006 Xmas holiday catalog. Other gifts include a personal 7ft skyscraper made of #2 pencils ($40,000), and luxury pet homes by Italian designer Marco Morosini featuring wheels and crafted of poplar with an interior
rug and coordinating wallpaper ($6,000 +).  See the rest here.

Funny enough, most of the spectacular gifts never sell.

Nieman’s report only half of the items on its fantasy list sold last year, and other retailers report similar results.

Limited Brands jewel encrusted $3 million bra for Victoria Secret failed to find any takers last year.  Sam’s club offered a custom 1968 Camaro by Chip Foose for $198,000  and a wine tasting trip to New Zealand for $48,000. Neither sold.

So why do they do it? For the free PR. The Journal reports that Nieman’s estimate the publicity from their fantasy list generates $9-$12 million of TV coverage. For Victoria Secret, the million-dollar bra "elevates the brand to the status of ultimate luxury".

So effective are these programs that a whole slew of rivals are planning similar promotions this season. Watch out for seven "wow" items from Saks including a walk-on role in an American Ballet Theatre production, and a day at the Super Bowl accompanied by a famous football player. Bloomies is auctioning  designer-themed travel packages, and even Target is getting into the game with a $10,000 Lionel train set.

Read the full story here (subscription required).

November 14th, 2006

As a matter of fact, the carpet does match the drapes.

In an infamous episode of Sex in the City, Kim Cattrall’s character, Samantha, discovers a grey hair…down there. After being told that plucking each individual hair actually causes the grey to spread, she attempts to dye it. Instead of getting “the carpeting to match the drapes” so to speak, Samantha ends up looking more like she’s giving birth to a tiny clown.

BettyBeauty

Now, fast-forward to Betty Beauty owner Nancy Jarecki sitting in a Rome salon: “As I saw women leaving the salon, I couldn’t help noticing that some would linger by the door. After a few minutes, their colorist would come back with a little paper bag, hand it to them, and send them cheerfully on their way. When I inquired about this mysterious ritual, the receptionist said, “Per sotto, per farli combaciare,” meaning  “For the hair down there…to make it match.” I thought, “How genius!” 

Betty Beauty recently launched a new product specifically formulated for “the hair down there”. These pubic-hair-dying kits are being marketed with great names like: BROWNBetty, FUNBetty (in hot pink), BLONDEBetty, AUBURNBetty and BLACKBetty. Check the entire line out at www.bettybeauty.com or in select salons.

Last week, Betty Beauty’s website was on pace last week for 2 million annual visits, running well ahead of Procter & Gamble Co.’s Clairol.com and climbing toward that of L’Oreal’s website.

Colorarci ha impressionati!