It’s Easy to be Green – Take 2

Building on our post last year about Marcal’s line of earth-friendly paper products, Kimberly Clark has taken green innovation to the next step with its new Tube-free bath tissue.

Launched exclusively in Walmart and Sam’s Club stores, the new tube-free bath tissues offer consumers a visible way to help reduce the 160 million pounds of trash (usually not recycled) generated by discarded toilet paper tubes.

One downside – the new Tube-free offering does not use recycled paper, like the rest of the Scott Naturals line.  However, K-C personnel indicate a move to at least 40% recycled-content paper is in the planning stages, especially if the product is launched into other retail outlets.

Have you tried this new tube-less wonder?  What do you think – share your thoughts in Comments.

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Reality Show Nation

Summer 2010 could have been dubbed the “Summer of Snooki”, named for the much discussed breakout “star” of MTV’s hit reality show Jersey Shore.  For months, Snooki and her male counterpart The Situation have been getting more than their 15 minutes of fame via constant exposure – tabloid TV and magazines, website chatter and tweets – all anxiously reporting on every drunken stumble, questionable wardrobe selection and salacious hookup.  It’s been widely reported that Snooki was paid $30,000 per episode to appear in Season 2 - not bad for a 22 year-old former veterinarian technician student; and Elle magazine has just selected her as one of Hollywood’s most powerful women, alongside studio heads, network chiefs and Oscar winners such as Angelina Jolie and Sandra Bullock.

But this discussion is not about the supposed shame Jersey Shore’s cast has brought to the Garden State, but rather some thoughts on the impact of extreme personalities in our dynamic media and marketing environment.  Some, including The Atlantic’s Mark Ambinder posit that the pervasiveness of reality show characters has made wacky, crazy political candidates more acceptable:

But all the reality shows — and the characters who have been mainstreamed and are now a part of our lives, people who we would otherwise encounter when we browsed the tabloids at the supermarket — have conditioned us for “wild and woolly” candidates. Culture bleeds into politics, and the other way around.

Next week’s elections won’t spell the end of the parade of dysfunctional loudmouths – the winners will take their places in Washington DC and state capitols around the country to pontificate for the next 2, 4 or 6 years.  And some of the losers will leverage their new-found visibility into talk shows, book contracts and continue to assault our senses for months to come.  And every night we’re treated to another batch of reality show contestants – teen parents, addicts, alleged singers and dancers – will marketers’ messages be able break through this cacophony?

As mass media content (both entertainment and news) becomes extreme will marketing tactics need to become even more extreme to capture the attention of consumers?  Or will a softer tone get the message across more effectively? 

What do you think?  Please share your thoughts in Comments.

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The Green Value Opportunity: Local Solutions

 

According to public relations firm Edelman,

“… the global tide of conspicuous consumption is turning away from traditional status symbols of the past and moving toward products and brands that support sustainability. Protecting the environment, improving healthcare and reducing poverty are the causes that global consumers care about most.”

 

Marketers are taking notice of this.  As discussed in a previous post,  we believe there are new value areas to be mined—areas that people will resonate to more deeply—a higher order level of value.  And ‘Green Value’ represents one of those opportunities.

One of the more visible efforts in this direction can be observed with P&G’s Dawn DishwashingLiquid.  When the brand came to the rescue in the Gulf Coast what quickly followed was an eco-friendly advertising message featuring Dawn as “the only product that can be used to clean oil-soaked animals” and a promotion where portion of sales would be contributed to Save Wildlife.

Leslie Kaufman discusses the Dawn phenomenon in her column, Ad for a Dish Detergent Becomes Part of a Story

And, consumers are living green!

Yes, the notion of green (which initially spoke to environmental or macro-level conservation) has trickled down and has become personal. And, as green becomes personal, consumers are finding ways to make more personally and socially responsible decisions about how they spend their money—choices they view as long-term solutions. 

Reduce-Reuse-Recycle is a long standing initiative referring to minimization of waste materials, and you don’t have to go very far to see charts instructing us on how to accomplish this.

 What we want to explore has to do with the mindset that consumers are bringing to their decision making process.  To this end, let’s take a look at three living green solutions!

The growth in the buy local movement speaks to a sustainability strategy with benefits that extend beyond the “feel good” support your community.  Not only might it have favorable economic implications for a community or region, it becomes a deeper way for consumers to demonstrate environmental responsibility.  In addition to thinking of local in terms of geography, we propose thinking of it as a micro concept so we actively include smaller enterprises in our decision-making set for whatever we consume.

Just as individuals flock to farmers’ markets in cities across the country or seeing ‘buy local’ triggers one’s commitment to support local growers, people are applying this concept to other sectors.

Imagine customers being motivated to switch their financial portfolio from an investment banking leader to Domini Social Investments, an investment firm committed to socially conscious investing.  Investors can directly support underserved communities in every state through a special Social Bond Fund.

Then there are restaurants like Red Robin being recognized by the National Restaurant Association in an annual reward designed to “raise awareness about the restaurant industry’s contributions to local communities and to inspire other restaurant operators and owners to do the same.”  Or Jimmy’s No. 43, one of the first restaurants in New York City to stop serving bottled water, hosting slow-food events and featuring a slow-food menu as part of its commitment to the Slow-Food movement.

The impact of ‘local/green’ solutions can also be applied to other product and service providers.  Let’s spotlight some existing and potential opportunities.

Apparel.  Environmentally friendly clothing is no longer limited to niche brands.  Now you can count Van Heusen, Levi and Eileen Fisher among the companies with organic entries.

Food/Beverages.  Major soft drink and beverage marketers, such as Coca-Cola and Pepsi maintain dozens of bottling facilities across the country.  Prominent label copy highlighting “bottled in Philadelphia, PA, or Tampa, FL, or Portland, OR” would remind consumers of the reduced carbon footprint and improved product freshness of a product bottled nearby. 

Restaurants.  Jim Denevan, founder of  the  traveling restaurant series Outstanding in the Field, has made it his commitment “to re-connect diners to the land and the origins of their food, and to honor the local farmers and food artisans who cultivate it.”  The OITF experience is captured vividly in Deborah Moss’ column, Foodie feasts straight from the farm.   Restaurants participating in New Jersey’s Restaurant Week promote special efforts to include locally grown/sourced ingredients in their menu offerings.

Retail.  From Whole Foods to supermarket giant Kroger, grocery stores are highlighting locally grown produce and specialty products.

Travel.  The Staycation (or vacationing close to home)  phenomenon, triggered by the economic downturn, has become a feature of hotels from luxury brands like The Breakers Palm Beach  or major chains like Marriott or Hilton.  Even state tourist boards are seeing the value of strategies to encourage travelers to spend their recreation dollars in their state or neighboring states.  In addition to the cost savings, travelers also get the benefit of lightening their carbon footprint.

 

Can you think of other ways to bring local solutions to your marketing and brand strategies?

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The New Value: Going Way Beyond Price

 

 

The Landscape


In this time of near double-digit unemployment, rampant underemployment, sky-rocketing home foreclosures and other adverse economic factors, the emergence of the tightfisted consumer was totally predictable. What was spawned from necessity does not appear to be a short-term strategy. Rather, it is becoming a way of life for a majority of Americans.

Harris Interactive reports that American consumers continue to hold the line on spending, with 63% purchasing more generic (private label) branded products. This behavior is consistent across generations.

A recent study from Decitica, Marketing to the Post-Recession Consumers posits that consumer spending patterns have been profoundly altered by the current recession and we are now entering a period of “new normal.” Decitica has identified four distinct consumer segments – Steadfast Frugalists, Involuntary Penny-Pinchers, Pragmatic Spenders, and Apathetic Materialists.

While consumers’ commitment and focus on finding the lowest prices vary, it’s clear that price-related value is no longer a competitive advantage. Rather, it has become an expected attribute for many purchasers.

The traditional retail “fix” of offering discounts is no longer (or is fast becoming) like email SPAM.  In other words, buyers are applying their own mental filters to these offers, going for the lowest price point across many product categories. But, this approach has resulted in store brands in some categories becoming category leaders – suggesting that lower pricing as a strategy is a form of value that brand marketers cannot sustain.

Given these conditions, it is clear that the days of price discounts as the sole expression of value are over.

As consumers navigate the new economic world order, more than ever, they want to feel they are getting the best value for their money. Marketers will need to be more inventive in their offers and create products as well as marketing messaging that imbue brands with discernible value. So the question is this:

In what ways might marketers re-create brand value in today’s environment?

It begins with looking at value through an entirely new lens.

 

A New View of Value

In recent years, companies have begun to enhance brand value with what might be described as product-driven, functional value strategies.

Some brands, many in the Procter & Gamble stable, are combining well-recognized attributes of premium brands such as Dawn Hand Renewal with Olay Beauty, Mr. Clean with Febreze Freshness, Tide with a Touch of Downy to offer consumers an assurance of product performance and desirable attributes. This brand-combining strategy has enabled P&G to maintain its premium priced edge.

In the current new campaign for 1800 Tequila, the commercial’s protagonist points to the functionality of the cap as a point-of-difference with Patron.

Clearly, if there are product elements that can be leveraged as these examples demonstrate, marketers should naturally capitalize on these product advantages. But, there is also a consumer-driven factor that is likely to strengthen this trend towards a new value paradigm and we believe this is an attitude of responsibility.  Specifically, people are becoming more responsible when it comes to the ‘stuff’ they acquire.

When you layer on facts like declining disposable income or postponing retirement out of financial necessity, it is inevitable that the purchase decision process will be more conscious, even introspective as buyers weigh their choices.  And, the factors weighed are likely to reflect factors that might not have considered in the past.  With these shifting attitudes, we believe there are new value areas to be mined—areas that people will resonate to more deeply—a higher order level of value.

As we look to redefine value in this new era, it is important to look at areas that are likely to have an enduring impact on consumers’ purchase decision process. We believe these reflect what used to be incidental benefits but now are more at the forefront that ever before. By tapping into these avenues of opportunity, brand perceptions will be enhanced and companies will have a chance to make a new impression in the marketplace.

In subsequent posts, we will feature the New Value opportunities.  Stay tuned to our first discussion – the Green Value opportunity.

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The New Singles – Take 2

It looks like we’re not the only ones thinking that marketers are missing the boat by not considering New Singles in their marketing strategies.

A recent story on NPR’s Marketplace highlighted the general lack of advertising and marketing targeted to single women.  A few exceptions got our attention – Lowe’s current TV spot focuses on a single woman (no kids or man in sight) with a home improvement project list.  Given that a large part of the growth in home ownership in the past decade has been driven by single women, Lowe’s appears to be on the right track.

More Magazine – targeted to the vital 40+ woman, ran a cover story in their April 2010 issue entitled ”Loving La Vida Solo“.  The title alone serves to reinforce the thinking behind the New Singles segment:

“…coming to discover that happiness – a full life, a full heart – can be theirs with or without a partner.”

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What’s up for 2010!

2010
We’ve had fun bringing our twist to those trends that got our juices flowing in 2009.  And now we cast our attention to 2010.  There are so many happenings that are showing up and we think they will be changing the way we all look at the world. 

In addition to updating past posts when it makes sense, here are a few themes we are following:

  1. The New Value, it’s not just about price.  It’s experiential, it involves conscious decision-making – so marketers might have new chances to make a first impression.  For established brands, could this development be a boon?
  2. Transparency.  The 2008 election highlighted how critical it was to voters to be authentic. Now we see marketers like Domino’s Pizza jumping on board, taking “truth in advertising” to a whole new level.  What else is next?
  3. Has outreach to Ethnic & Urban consumers become yesterday’s news?  The economics of advertising and promotion is giving companies pause and there have to be casualties.  How will this dollars and cents issue affect marketing decision-making?
  4. The End of Civility.  If 2009 told us anything, political correctness seems to have taken a back seat.  You remember Kanye West’s public dissing of Taylor Swift at the MTV Awards and Representative Joe Wilson calling President Obama a liar during the live broadcast of his health care speech to Congress and the American people.  How far is this going?
  5. Career Path, meet Career Streams.  Distrust of corporations has been growing for some time.  Mergers and acquisitions, unemployment, job attrition, to name a few factors, are forcing us to think of new sources of earning potential.  Could single payer income sources be a thing of the past?
  6. A New Twist on the “Water Cooler.”  With more people moving to flexible work schedules and with work teams comprising people from different locations and time zones, the pop culture discussion around the “water cooler” has practically disappeared.  What will drive the mass culture word-of-mouth when mass culture seems to have fragmented completely?

We look forward to bringing our take on these ideas and more so keep an eye out for some new views from New-Take in 2010!

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We’ve Got Updates – Right Here!

Some updates on previous posts:

giftboxesAre eReaders going to be the “got-to-have-it” gadget for holiday gifting this year? Barnes & Noble has launched its own dedicated eReader, the Nook.  They already offer an electronic book platform that can be used on PCs, iPods and other devices.   The wars are escalating as Amazon has just introduced a free application designed to enable Kindle owners to read electronic books on their PCs.  While Forrester Research reports that most bibiophiles are still looking for significant price drops (below $99) before they are willing to invest in an eReader device, will the increased number of electronic book platforms across existing and dedicated devices make the printed blockbuster a thing of the past?

lv2The Virtual Goods market is skyrocketing. US sales of virtual goods have doubled in just a single year and are expected to exceed $1 billion in 2009. And many consumers are indulging their recession- thwarted desire for luxury goods by spoiling their online alter-egos. Sales of fashion and accessories in the virtual universe Second Life account for 40% its the marketplace, as players outfit their avatars with the latest Gucci, Prada and Jimmy Choo gear that they are no longer able to afford in the real world.

And lastly, guess who’s joining the parade to Pop-up Stores? While it was played for laughs in the hit comedy “The 40-Year Old Virgin”, online auction leader eBay is planning to use temporary mobile locations to generate awareness and to familiarize shoppers with their web functionality. You saw it first… in the movies!

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The New Singles: Single and Thriving!

Single-by-Choice-plus-source1Most people spend some part of their adulthood as singles – as young adults bounding out of their parents’ homes or through circumstances, as divorced people or as widows and widowers.  Historically, being single was short-lived, but things are changing. 

The Facts

The US Census reports that over the past 25 years, the median age for first marriage has increased nearly 4 years for men to 27.1 and 5 years for women to 25.8.   Single-person households grew from 17% to 28% over the same time period.  And a small (9.2 million adults), but growing group is not marrying at all. 

Whether people are staying single longer or not marrying at all, dynamics leading to the growth of the single segment may include:

  • Greater economic achievement by women has freed them from needing to marry for financial stability
  • De-stigmatization of single parenthood, in fact 11.6 million single adults have children living with them (either through divorce or because they have chosen to have and raise children on their own)
  • Increasing acceptance of homosexuality has freed many gays from sham marriages
  • Marriage or partnering is not viewed as the only lifestyle option when you have reached a “certain” age

With these factors at play, how singles are currently marketed to (looking to be paired up) or not marketed to (mostly absent from marketing/communications efforts) needs to be reconsidered.  The group of singles we are spotlighting here might be a minority now but they represent an untapped consumer segment that could be a new source of opportunity for marketers of a wide range of products and services.

Dove, Volkswagen and Ikea (to name a few) demonstrate the value of intelligent engagement with newly uncovered consumer segments.  Dove celebrated the diversity of women by featuring “real women” in their successful Campaign for Real Beauty**Volkswagen and Ikea effectively reached gay/lesbian sensibilities with smart marketing.

New Singles Defined

For New Singles, singlehood is not a stop on the way to coupledom and/or wedded bliss, but rather a choice.  It may or may not have been planned at the outset of adulthood, but over time, single is now their chosen state of being.  Being single for this segment is a lifestyle, not merely a lifestage. 

While there are some people who have not necessarily chosen to be single, as noted in a highly touted September 2006 New York Times article highlighting the dilemma of middle-aged male high school graduates who are still seeking suitable life partners, others truly are “Single by Choice.”

 

In 1999, magazine publisher Sasha Cagen came up with the term “quirkyalone” on a Brooklyn subway platform on NewQuirky-Alone1 Year’s.  Quirkyalone is a mindset, a movement which has grown into an international community and speaks to singledom as a celebrated option that is the equal of coupledom rather than solely something people back into.

She later expanded on this concept in an essay in the first issue of her magazine To-Do List which was republished in the Utne Reader in 2000.  Cagen was surprised by the fervor of responses from readers who felt their lives had been validated by her work.  As a result of these responses, Cagen opted to expand her essay into a 2004 book, titled Quirkyalone: A Manifesto for Uncompromising Romantics.

In 2006, social psychologist Bella DePaulo (PhD, Harvard) published Singled Out: How Singles are Stereotyped, Stigmatized, and Ignored, and Still Live Happily Ever After . Using social science data Dr. DePaulo challenged the stereotypes of people who are single.  In addition to offering seminars and workshops on the science of singlehood, Dr. DePaulo’s writings have appeared in professional journals and other publications. Her latest book, Single with Attitude (2009), is a compilation of essays that originally appeared in Living Single, Dr. DePaulo’s popular blog for Psychology Today and other writings which were first published in the Chronicle of Higher Education, Forbes.com, the Huffington Post, and the New York Times.

New Singles have even made its way into popular culture, reflecting the new reality of this segment.  According to the Urban Dictionary, Single by Choice is a person who does not wish to be in a relationship.  They value their independence and do not feel they need to have a boyfriend/girlfriend/husband/wife to gain validation.  People who are single by choice may  go out or date casually, but do not choose to be in a long term committed relationship.

In recent years, the blogosphere has become populated with optimistic and expansive perspectives on singles including Living Single, Singles by Choice, SingletudeMySingleSpace, to name a few.  And then there’s National Singles Week (also known as Unmarried and Single Americans Week) which was just celebrated (September 20-26).

The Opportunity

As with any other marketing niche, there might be targeted efforts to reach them, but, how they are portrayed, addressed and communicated to, are the most important elements to for an effective campaign.   To win with New Singles, here are some keys to bear in mind:

Messaging Key:  It is not enough to include single people in advertising.  Messaging and tonality needs to be uplifting, welcoming, even celebratory – remember New Singles enjoy rich, fulfilling lives.  They are at ease with their status and do not consider being single as an affliction.

dining aloneImage Key:  It goes without saying, stay away from stereotypes.  New Singles are diverse.  They come in a range of demographic and socioeconomic flavors.  They don’t exist in a vacuum, they have family and friends.  New Singles live in urban centers and in the suburbs. You get the picture.   

Product Key:  New Singles are consumers of as vast an array of activities, products and services as the larger population, not just dating services or singles cruises.  They have homes and apartments that need furnishing, upgrading or repairing.  New Singles take vacations and dine out but only couples/families are promoted to.  They appreciate fine wines and champagne but half-bottles available on-premise are rarely found at retail.  New Singles need insurance to provide for themselves now and in the future, but families are the focus for most insurance products.  And this is just the tip of the iceberg.

 Value Key:  Clearly, having a better understanding of this segment is important to convey relevant New Singles values.  So remember to include this consumer mindset in the research process whether the focus is on new product development, branding or other marketing efforts.

Whether promoting restaurants, hotels, cruises, vacation destinations, insurance products, home furnishings or alcohol beverages, remember going solo is a chic and powerful choice. 

By stepping up to the plate with a plan that includes New Singles and is spot on attitudinally, marketers stand to gain substantial credibility and incremental market share among this untapped and sizeable consumer population.  Said another way, treating New Singles as a center of influence could pay huge dividends for your business!

 

**Read this marketing case study on the impact of Dove’s Campaign for Real Beauty.

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Living in a Barbie World?

barbie1-(2)Barbie is celebrating her 50th birthday in style - Universal Pictures has just signed the iconic doll for her first live-action film.  Barbie is a superstar property:

According to Mattel…Barbie has 99% worldwide brand awareness, is the number one girls property in the toy industry, the top doll property in the U.S. and the number one worldwide property in the traditional toy industry.

With those kind of attributes, plus 75 million units of animated videos sold worldwide, we can understand why we’ll be seeing “Barbie: The Movie” in a multiplex one day soon.  And after a summer filled with blockbusters based comic book/graphic novel heroes like “Watchmen” and cartoons like “Transformers”, licensing popular toys for future film projects is the newest big thing.

However, unlike comic book or TV show characters which have a rich back-story, some of the announced projects are based on toys or games which have been driven mostly by the participants’ own imaginations.  What shape will the planned “Battleship”, “Legos” and “Candyland” movies take?   What can we expect from the rumored ”Viewmaster” film? 

Will film makers be able to capture the imagination and excitement of the new adventures created by children (and adults) each time they played these games?  Coming to a multiplex near you!

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Brands Go Pop!

warhol dollarFirst coined by consultancy Trendwatching in 2003, Pop-up stores are fast becoming a potent marketing tool for a wide variety of brands.  The combination of cash-flow challenged landlords, high commercial vacancy rates, and tight-wad consumers has led more organizations to look to temporary retail locations as a way to generate buzz and boost sales.

The use of temporary (often less than a month) retail locations has been growing over the past few years.  Pop-up stores allow marketers to experiment with different strategies, from launching a new line product to jump-starting brand visibility by going outside of regular retail outlets to providing exclusive opportunities for sampling and collateral distribution.  Over the past year, organizations as diverse at Hermes, La Perla, Gap, eBay and the NJ Division of Travel & Tourism have leveraged the use of pop-up stores to build awareness and excitement for their brands.

This fall, expect to see these stores popping up:

  • Gucci’s sneaker-only pop-up stores, named Gucci Icon-Temporary will be open for just a few weeks in New York City, London, Berlin, Hong Kong, Tokyo and at Miami Beach’s Art Basel event.
  • Jones Apparel is launching their new Rachel Rachel Roy line in conjunction with New York’s Fashion Week with a pop-up store in Soho.  The store will feature a selection of sportswear, jewelry, handbags and footwear.  The Rachel Rachel Roy collection will then be available exclusively at select Macy’s stores. 
  • Toy giant Toys ‘R’ Us is planning to open 80-90 pop-up stores this upcoming holiday season, taking advantage of vast swathes of vacant space in malls around the country.  Corporate management expects these locations to generate significant sales at a much lower cost than adding permanent locations as they battle general merchandise retailers like Target and Wal-Mart for market share.

So, will pop-ups store create enough buzz to get consumers to get off their couches, away from their computers and opening their wallets?  We’ll check back in at the end of the season and see if sales have popped up!

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