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Posts Tagged ‘Marketing in a Recession’

Automotive industry cutting more than payroll

Wednesday, January 14th, 2009

As if you didn’t already know, the U.S. automotive industry is having financial troubles. In addition to laying off thousands of employees, closing manufacturing plants and reducing output, companies are being forced to limit their usually outrageous advertising efforts. For General Motors, after the worst year in nearly half a century, this means forgoing this year’s Super Bowl (gasp!). In years past, GM has been a heavy roller during the Super Bowl, putting their purchasing power to work as a game sponsor and a buyer of 30- and 60- second spots. This year, GM as well as its Cadillac brand passed on buying spots during the big game partly because of the $3 million dollar price tag.

Automotive enthusiasts don’t fret because the Super Bowl did manage to recruit Audi and Hyundai to purchase 30-second spots for the second year in a row. Prior to 2008, both companies hadn’t appeared during the game for nearly 20 years, but as some of the big dogs struggle to survive, these two companies are faring better than most. Even though Hyundai struggled like most in 2008, sales are up 20 percent already in 2009 compared to this time last year. Audi is also holding its own as the company continued a 13-year growth streak worldwide with sales dropping only slightly in the U.S.

With big players like GM out of the mix, it will be interesting to see what the underdogs do when the spotlight is on them.

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Microsoft branches out

Tuesday, January 13th, 2009

You know the economy is in trouble when software giant, Microsoft, decides to get into retail clothing.  As part of their “I’m a PC” campaign developed by ad agency Crispin Porter & Bogusky, Microsoft released a series of retro T-shirts last month in an effort to increase brand loyalty among Vista users following the highly successful Mac vs. PC commercials aired by rival Apple.

Sold under the name, “Softwear by Microsoft”, the shirts feature retro logos, classic photos and geek-chic iconography dating back to the pre-Web, DOS days of the software company.  One of those “classic photos” features Microsoft founder Bill Gates’ 1977 mug shot, after being booked for speeding in Albuquerque, New Mexico, where the company was also first headquartered.

Whether the T-shirts will become a fashion statement or a marketing flop is up for debate.  Web criticism has poured in from the start, chastising Microsoft for targeting its line to young-adult T-shirt wearing consumers who weren’t yet born or old enough to recall the early days of computers.  The company’s reputation for releasing software before removing the bugs has also been recalled.  Maybe Microsoft will mail buyers patches to sew on to the shirts every few months?

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Monster.com promotes new site in primo timeslots

Tuesday, January 13th, 2009

You wouldn’t necessarily think that this is the best timing, during one of the bleakest job markets in recent years, to promote the launch of a new website - especially during the expensive Golden Globes and Super Bowl. But, that’s just what the visionaries at Monster.com are doing. Using a compelling visual - a construction worker who is scared of heights clearly needs to reconsider his career path - and a simple message, “there’s never been a better time to go to Monster.com,” the company proves yet again just why they lead the Internet job search market.

Created by BBDO, Monster.com’s new spots will rival two Career Builder.com ads during the Super Bowl. But Monster.com will have the leg up. Having signed on as an official N.F.L. sponsor in November, the company will also promote an N.F.L./Monster.com contest.

Rounding out the campaign for the redesigned website, Monster.com and BBDO researched consumer expectations for Super Bowl ads this year, in this very different economic climate. They found people just wanted to laugh. Monster.com will deliver on that in a print ad series that features lines like, “Our new Web site is so easy to use it will make the glue stick seem intellectually challenging,” and, “It’s like online dating without that awkward kiss good-night.”

Always a fan of Monster.com creative, we think these ads will sure to stand out from the crowd on the big game night.

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New Company Logos

Thursday, January 8th, 2009

The economy isn’t the only thing to take a downward turn these days.  While many companies try to find ways to meet goals and deal with low employee morale, many have overlooked the fastest way to get a laugh and maybe even some much-needed free press: revising their logo.  Below are our top picks:

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Campbell Soup vs. American Family Association

Tuesday, December 23rd, 2008

The American Family Association (AFA) has recently taken issue with Campbell Soup/ Swanson for a print ad aimed at gays and lesbians. On their website the AFA is urging consumers to contact Campbell to demand that they stop “pushing the gay agenda” and to “remain nuetral in the cultural war.” Here is the kicker, the ad was specifically created to run in The Advocate, a hugely successful Gay and Lesbian magazine. Is this really “pushing the gay agenda”? Known for being all American and very conservative, Campbell Soup is nonetheless standing fast against the AFA. They have made no apologies for the ad series and have taken a very strong stance on the criticism. ” Our position on this is pretty straightforward, inclusion and diversity play an important role in our business, and that fact is reflected in our maketing plan. For more than a century, people from all walks of life have enjoyed Campbell’s products, and we will continue to try to communicate in ways that are meaningful and relevant to them.” said company rep Anthony Sanzio.  “Our plans for the Swanson brand include additional placements in The Advocate.” Misti Graham, president of the LGBT-specific agency MDG Marketing Group, said the gay and lesbian marketing targets an estimated $690 billion in buying power. “The LGBT audience is the third-largest in the country behind African-Americans and Hispanics, and we’re very in tune with which brands embrace the community and whose messaging and imaging reflects that.” I think this is all…. well….. Mmm, Mmm Good!

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Good night and good luck

Friday, December 5th, 2008

Puzzled by the new faces behind the anchor desks in your local television market? Sunday’s New York Times explained that a generation of veteran anchors, whose hefty salaries “seem out of sync with the reality of budgets,” are being bought out and laid of. This trend is alarming to viewers -  more than half of the population watches local news regularly, according to the Pew Research Center for People and the Press, while only 34 percent read a newspaper each day and 29 percent watch a network evening newscast.

But the Television Bureau of Advertising is expecting a 7 to 11 percent decrease in commercial revenue next year, and stations are adamant that the cost cutting has to start somewhere. But is the anchor desk the right place to start?

TV news, like its print counterpart, has long planned how to move its format to the Web to take advantage of a medium that’s still growing in popularity. The challenge is that viewers can pick and choose their own news on Web casts, which in some cases may render the anchor “superfluous.”

The reality is, as Tom Petner, editor of the TV industry newsletter Shop Talk said in the Times’ article, “The industry is moving from star players to more of a team sport.” But, this could be dangerous for some station owners who have newcasts, which represent 40 percent of the station’s revenue. Many veteran anchors in large markets carry the station’s entire brand solely on their shoulders. When you replace them with someone new and younger you not only risk losing viewers, but you also risk losing the insight that only decades of news reporting can bring.

This only goes to show that TV news must continue to reinvent itself if it wants to continue to thrive and make money for stations. And veteran anchors have an incredible opportnity to be a part of the solution, instead of a victim of the fallout.

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Email is marketer’s #1 direct marketing tool

Thursday, December 4th, 2008

In an effort to juice up sales this Christmas, retailers are checking their lists twice and sending customers emails jam-packed with exclusive offers to get them in their stores and onto their website.

When trying to reach millions of shoppers, emails are cheaper and quicker than print inserts or direct mail; the average cost of an email message is $7 per consumer response versus $48 for traditional direct mail.  Many retailers are jumping on the email bandwagon because they can create and send a promotion in half the time it takes to print and distribute traditional messages.

Saks Fifth Avenue installed a new point-of-sale system with Internet capabilities in every store to gather customer email addresses and send customized emails.  Home Depot promoted an opt-in email alert for coupons and special discounts on Black Friday, the company’s biggest shopping day.  Gap is getting personal and emailing customers coupons with customized holiday songs from artists Flo Rida and Trey Songz.  Bloomingdale’s is targeting younger consumers by increasing its emails significantly.  The upscale department store believes sending them a ton of shopping incentives will make them look better and feel important.

In today’s rocky retail climate, it’s vital to find a cost-effective way to increase traffic in stores and online.  And with millions of Americans looking for any way to stretch their hard-earned dollars this Christmas, exclusive discounts and free shipping via email will be impossible to pass up.

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