4sight

Free Beer (and Hot Wings?)

No brand is immune to deterioration and erosion, even including the biggest spenders imaginable.

In this case, Budweiser.

Anheuser-Busch has suffered in recent years, and the culprit is the under-30s.  Just like in radio, when a product like beer or mass entertainment becomes less cool to younger consumers, there are problems.

How far has Bud fallen?  USA Today reports that sales were off 9% in ’09, and are slated to fall by a similar percentage this year.  Worse, Bud is suffering from a seven-year brand loyalty skid, according to Brand Keys research.  Back in ’03 among national brands they were ranked #16.  This year, they have plummeted down to 220.

Think there’s a trend here?

To counter this loyalty cascade, A-B is going commercial-free.  Well, at least the equivalent, by giving away free beer to younger beer imbibers in a campaign that will run several weeks.

Beyond the sampling campaign, Bud is partnering with Facebook to award a free beer to those who hit the legal drinking age (not unlike a station birthday card with a nice gift or discount), as well as new TV ads that will be laser-focused on a one-week period starting Saturday and running until October 3.

So, keep an eye out for these new Bud ads, as they attempt to retrench among young people.  Obviously, boomer marketing has hit a wall as more upscale beer drinkers have drifted to less caloric alcoholic beverages or designer brews.

The question is whether a venerable brand, famous for showcasing classic athletes and Clydesdales can engineer a youth turnaround. 

As A-B is discovering, if you lose youth, you can lose it all.

That’s a good lesson for media companies, too.

(And we all know how long commercial-free lasts.)

Oh, Domino's

What do you do when you're in last place and you've already been humiliated in social media circles?

You turn to customers for answers.

At least that's the bold course of action being taken by Domino's as they try to improve their position on the pizza hierarchy.  

It turns out that while Domino's was recently rated first for convenience and price in an industry survey, the actual product - the pizza - was tied for last (with Chuck E. Cheese!). 

Their solution?  Let food bloggers, critics, and others who have mercilessly slammed their pizza have at it.  On their website, anyone and everyone was welcome to chime in (and continue to do so).

The "mocumentary" below shows how they went about surveying listeners (including some riveting focus group "through the glass" scenes), as well as disappointing responses from Domino's employees.  Clearly, there is risk to this approach, especially for a company that was burned by that famous YouTube video where a couple of moronic pizza makers did gross things in a Domino's kitchen.

The "tastes like cardboard" comment was frequent, and instead of shying away from the criticism, Domino's met it head-on, and posted it on the website for all to see.  "The Pizza Turnaround" video catalogues the journey to improve the product:

<CLICK HERE TO VIEW DOMINO'S "THE PIZZA TURNAROUND" VIDEO>

And the website continues to allow for ongoing consumer comments.  These are bold moves by a conservative company that had to come to grips with giving up some control in order to improve their position.

Many mature brands are in need of a makeover, due to time in grade, tired images, and entrenched consumer opinions.  Instead of blowing up the brand entirely, the Internet and social networking provides another way. 

Pizza, pizza.

Fly-In

Last week, I spent a couple of days in Annapolis at Arbitron's "Programming Fly-In."  And there were a few surprises.

First, they drew a record crowd - in December and in a travel budget challenged environment.  Second, there were a lot of programmers in the room.  And finally, it was good to get outside of Arbitron headquarters.  The change of venue was a positive. 

As PPM reaches that tipping point where more markets are coming online, there is an even greater need to understand how it works, how it should be sold and marketed, and best practices.  Kudos to Gary Marince, Rod Rodrigues, and the Arbitron team for putting together a uniformly strong series of panels and sessions.

For me, this "Fly-In" had a special treat.  As many readers of this blog and friends of mine know only too well, I am a Starbucks Super P1.  One of the best sessions was "The Brand," presented by Starbucks' Director of U.S. Store Level Marketing, Bill Black.

Bill came out in a green barista apron, and proceeded to show the room how strategic research and market segmentation makes his company smarter, and provides their team with the knowledge that can grow their business and sustain their dominance. 

There were lots of charts and graphs, but it was less about coffee consumption, and more about the mind of the Starbucks customer.  I learned there's a name for people like me - "Super Regular."  And along with another key segment, "Coffee House Enthusiasts," Starbucks focuses on these two segments above all others.  That's because the "Super Regulars," may only be 4% of their overall consumer base, but they contribute 20% of Starbucks' revenue.  The analogies to radio abound.

Beyond whether they drink fraps, espressos, or brewed coffee, Starbucks studies and tracks their aspirations and their attitudes.  Of course they know age, sex, education, and ethnicity.  But they also know each segment's "best moment of the day," the car they'd like to drive, and their view of the world.

So for us "Super Regulars," it's all about maintenance.  But for those "Coffeehouse Enthusiasts," there is great growth potential.  These customers skew younger, female, and their values closely mirror Starbucks' DNA.  Black's team knows there is headroom with this group.

And in their meetings, the focus on these two segments is laser-sharp.  "We have to focus on our core," notes Black.  So when brainstorms drift into less productive areas, the litmus test is whether an idea addresses "Super Regulars" or "Coffeehouse Enthusiasts."   If not, they simply move on.

That's not to say that Starbucks isn't looking toward the future.  Overall, 7% of their business comes from young "Basic Occasionals."  These are the teens and tweens who never knew a time when there wasn't a Starbucks.  They may not have the spending power now to become core customers, but they will down the road.  Starbucks clearly has an eye on its future, rather than simply chasing today's dollars.

You couldn't help but conclude that Starbucks knows a great deal more about its clients than we know about our listeners. I sat next to research maven Charlie Sislen, who was also impressed with the depth and breadth of Starbucks' segmentation knowledge.  He reminded me that radio has Scarborough, but the fact is that tool is mostly used to show off big indices in sales pieces.  The lack of research that would allow radio strategists to envision key audience target groups is part of the reason why there's often a failure to see the bigger picture in our business. 

Knowing the songs they like or which station plays too many bad songs along with the good ones is all about us.  Starbucks asks those same types of questions, but focuses their research on the customer.  That information is the backbone of how their strategy is set, and the ammunition they need to understand what's happening with McDonald's, Dunkin Donuts, and the myriad of other competitors gnawing away at their core.

A case in point came from a story that Black told about a customer who told them about the importance of ensuring his morning beverage is prepared to perfection: "If you don't get the drink right, it sets the tone for the entire day."  The attitude of the barista, as well as the ability to get that "Super Regular" in and out, is all part of creating that perfect morning experience.

And of course that brought to mind how a morning show can also make someone's day - or get it off to bad start.  A poorly prepared feature, a lame bit, or a whole lot of rambling - well, you get the point. 

The commercial radio industry has a great need for an all-encompassing study that lays out its core segments, identifies the problems, the challenges, the potentials, and the opportunities for growth.  Continuing to simply test the gold library or ask the same series of image questions will help win the market skirmishes, but do nothing to help programmers and strategists see the bigger picture. 

The entertainment and information media marketplace has only become more competitive during this last decade, and yet radio's research techniques are still very 1978.  

Thanks to Starbucks and Arbitron for giving us a glimpse into market segmentation done right.

Kickoff

No, this isn't a post about college or pro football.  Instead, it's about how you kick off a new campaign, startup, or a brand extension in 2009.

The poster child is Starbuck's new VIA, an instant coffee product that comes in convenient little packets that hope to mimic the taste of the real thing by just adding hot water.

For Starbucks, it's been a tough couple of years.  While they were busy selling and marketing food, music, books, and movies, McDonald's, Dunkin Donuts, and Tim Horton's have been launching heat-seeking caffeinated missiles at Starbuck's coffee franchise.

And it has apparently worked.  As the economy worsened, Starbucks got tagged with the "$4 coffee" label, while its competitors have successfully marketed the notion that great tasting coffee doesn't have to become a line item on your personal budgetary spreadsheet.  

So, in response, here comes VIA, and it's different for Starbucks in several ways.  First, it actually works out to be less than a buck for a cup of their coffee, a significant savings if you can get past the instant part.  And it's actually coffee, unlike so many unrelated products they've been marketing. 

But how do you launch a product like VIA in a way that consumers will notice, and ultimately sample the new product?

Starbucks pulled out many stops on VIA and came up with a multi-tiered approach that may prove to be effective.  First, VIA started with a countdown in all the stores in the hope of creating some level of expectation among their customers (cumers). 

Then they made sure that they had signage ready to go that reflected the VIA on-the-go lifestyle vibe.  And their in-store displays were top-notch and consistent.

Finally, sampling.  The VIA taste test ran throughout a 3-day period in early October, in order to get customers to try it, and compare it to brewed coffee.  Starbucks produced their own spot, but lots of regular folks took their shot at it, too, and posted their videos on YouTube.

 

<CLICK HERE TO WATCH STARBUCKS TASTE TEST VIDEO>

So contrast all of this with the way that we often launch our products.  Yes, there's usually a countdown, just like for VIA.  But too often, all the details are not nailed down or considered.  In fact, there's often a philosophy to just get the new product started, and then we can course-correct in the days and weeks afterwards. 

What type of impact and branding potential gets missed by the lack of a coordinated, strategic campaign?  Too often, sales falls way behind, tethered to the first couple of sales reports where there is hopefully some signs of growth.

In the marketing-centric, fast-paced consumer world in which we live, there is always an emphasis on "new,' but there is also a need to be great.  More and more, we have been trained to be skeptical about new products and trials, whether it's a restaurant opening, a TV pilot, or even an instant coffee product.  If it isn't great, together, and compelling out of the box, it is often doomed to failure.   

The emphasis on creating a great consumer experience is intensifying.  If you don't believe me, walk into an Apple store and think about the many ways in which they have created a unique, exciting, and satisfying retail atmosphere.  Now contrast that with what it's like at a Best Buy, Wal-Mart, or The Gap.

This is why one of the greatest marketers in the world - Disney - has now turned to Apple for consulting help in re-launching their retail stores.  Steve Jobs is reported to be the go-to person on this Disney makeover.  Apple has elevated expectations for the in-store experience, and in the process, has sent a message to other brands, as well as consumers about how to do it right.

This VIA launch is a similar reminder for us in business to rethink the ways in which we not only kick off a new format, but also a new website design, an iPhone app, or anything that we want to have noticed and sampled.  We don't know if VIA will turn out to be a success, but it is hard to fault Starbucks' coordinated marketing and retail effort. 

The bar has been raised.

Digital Drinking

Here's a quote that may have a ring of familiarity to it:

"Everything we're doing starts with the digital property at the center of the program.  Whether it's a traditional media site or an entirely Web-based site, the entire program is developed around a digital platform, and then if there's a promotional opportunity to take it outside other digital realms, we're negotiating that as added value."

 

Sounds like a high-tech product or brand?  Maybe even a very savvy media company?  Or a radio station trying to expand its footprint?

But no, it's Southern Comfort, and the speaker is Lena DerOhannessian, the company's U.S. Brand Marketing Director. 

Examples of their new program include sponsoring a list of the Top 50 all-time cover songs, presented with Spin on their website, including free downloads. 

Southern Comfort will also have a Facebook Fan Page that will include videos, news, recipes, and a text platform.  In that way, they hope to engage its community of fans and help give Southern Comfort a greater sense of currency and movement, rather than simply being just another kind of alcohol brand.

Southern Comfort's digital strategy includes expanding its reach by tying in with other Internet websites, and in the process, taking advantage of their communities and reach.  This includes promotions and activities with sites from Comedy Central, Break.com, Hulu, and My Damn Channel.  In this way, they can take advantage of the content on these sites to tie in Southern Comfort into those communities.

As DerOhannessian concludes, "We hope to learn significantly more about who our consumer is and what it is as a brand that we can provide to them that would make the communication more satisfying to them and the experience more memorable." 

Southern Comfort has done its homework, determining the websites and brands its consumers enjoy.  In the process, it has provided them with a digital roadmap that allows them to better connect with customers, instead of just doing bar nights. 

Someone on their team has also read Seth Godin's Meatball Sundae.  These digital strategic initiatives launched by a legacy "meatball" brand like Southern Comfort should be yet another reminder of the importance of using new platforms and tools to better serve today's customers and communities. And it starts with understanding the consumer, and not just doing digital stuff.

Southern Comfort is 135 years old.  If they can take stock, do their homework, figure it out, adapt, and start moving - anybody can.

iPhone Urban Legend

You may have seen the story that at the recent OMMA Mobile Conference, a major exec from Papa John's Pizza, Jim McDonnell, expressed his disappointment with the company's iPhone app.  There's only one problem - his company doesn't have an app available at the App Store.

If you own an iPhone (or Touch), you know exactly what I'm talking about.  The charm of the iPhone, and the main reason it has exploded in sales growth and customer satisfaction is the App Store - a virtual candy store of apps where new ones come in daily.  Our Tech Poll indicates that better than 8 in 10 iPhone owners download apps - free or paid.  It's the key driver why the iPhone has become the leading mobile device.

When I read the story about Papa John's, I went to the App Store to see why their application wasn't working for them.  And of course, they don't have an app.  A follow-up article about the conference reports that Papa John's has an "iPhone-enabled mobile site" that includes a store locator and a speedier way to order pizza.  

So two problems:

1. If you're playing around with apps (and I emphasize "playing"), it's time to rethink the strategy.  Or in fact, develop a strategy.  Just being available on an iPhone doesn't solve any problems, nor does it address consumer needs.  Too many potential clients come to us here at Jacobs (or jacAPPS, as we're now calling our business), and simply asking whether they can buy an app.  While the interest is flattering, our next step as developers... and marketers... is to sit down with them to discuss the goals and strategies behind the app.  

In the case of Papa John's, there's no driving strategy here, aside from making it a little easier for pizza eaters to find one of their stores.  There are so many other things their app could contain - menus, coupons, a pizza trivia game, and even the user being able to custom design a pizza.  And of course, it would help Papa John's if they actually had an app. 

2. If you're serious about your brand being a part of the iPhone, and you're not providing an app that's available at the App Store, you're making it difficult for consumers.  The essence of the iPhone is elegance and simplicity.  It shouldn't be hard to find and download your app.  But if it's not searchable inside the App Store, and not available with a one-touch download (just like every other app), you're kidding yourself about what you're truly offering consumers.  I don't care how many other cool features your app delivers.  If it's not in the App Store, it's not an app. 

We've now developed more than 60 apps for clients who are enjoying their position inside the App Store, and these apps have now generated more than 600,000 downloads in just six months.  That's not a bad contribution toward Apple's one billion total, and our app business continues to grow.  We're now developing apps for festivals, personalities, as well as games for other brands.  

There's a learning curve here, as Papa John's is finding out.  It's like "Brave New World," and mistakes will be made.  We're studying the analytics, and beginning to conduct research into app usage, accessibility, and utility.  It's part of our responsibility as marketers and developers to figure this thing out, and better serve the brands that want to be a part of the mobile device revolution. 

In many ways, it's like 1993 all over again, when a small number of companies had built websites, and the other 95% were thinking that perhaps it was time to start thinking about building one of their own.  So, again, two pieces of advice.

1. Get a strategy

2. Get inside the App Store

I'm A Pepper

When it was announced last March that the marketing folks behind Dr. Pepper would give away one free sample of the soft drink if Chinese Democracy was released before the close of the year, it seemed like one of those impossible marketing promises.

But more and more, it appears that the always-delayed album will finally be in Best Buy stores next month, and Dr. Pepper will make good on its promise.  Now if every American took them up on the offer, Ad Age estimates a total cost of $165 million.  But, of course, consumers will only have 24 hours after the release of the album to go online and register for their free sample.

Crazy?  Like a fox.  There will clearly be lots of new Dr. Pepper sampling, loyal drinkers of Dr. Pepper will be happy, and of course, the campaign is already garnering lots of free publicity in media outlets all over the world.  Wes Brown of Iceology points out that Dr. Pepper will likely take credit because after 17 years of waiting for the new album, the soft drink company got it done in six months.  Yes, it will cost money, but the payback is already enormous. 

It's a great example of thinking big with marketing, hitching a wagon to a media star, taking a risk, and making an outrageous statement.  No, it's not "40 minutes of non-stop rock" nor is it "Rocktober."  And isn't that the point of bold, over the top guarantees?  

Full disclosure:  I am indeed addicted to Diet Dr. Pepper.

Reinventing The Whopper

Burger King has provided us with a smart marketing lesson this year.  Their very successful signature burger, the Whopper, recently turned 51 years-old.

But the company is not resting on the Whopper's heritage, reputation, or laurels.  While the sandwich has always been a big hit, Burger King realizes that it's easy for consumers to take it for granted as they keep looking for the next hot restaurant or food style.

So, they've been reinventing.  You may remember that commercial campaign last year where they punked consumers in the drive-thru line by telling them they were out of Whoppers.  Customers were irked, angry, and desperate to have their Whoppers.  This was a great way to remind us all about the value of the Whopper, and its importance in the fast food pantheon.

And now, they're starting the Whopper Bar, a new concept that will bring the sandwich to food courts, strip malls, and casinos.  Looking a lot like the open style of a Starbucks, the Whopper Bar will feature chrome counters and plasma TVs (that show open flames).  And a key to this new concept is a whole new line of Whoppers, with different toppings and flavorings.

Too often, heritage companies get caught in the same rut that Burger King was in.  Signature events and promotions that once were exciting often become forgettable annual events that customers appreciate, but no longer find buzzworthy.  No matter the legacy or history of the event, the audience appreciates new spins, different features, and additional reasons to engage with you.

Reinvention isn't just a good idea, it's a necessity, especially in a society where "new" is the mantra, and consumers are always looking for something to talk to others about.  The good old Whopper has now been updated and relocated, and it might just become a topic of conversation more than a half century after it first came to market.

Bringing together your key staffers for a brainstorm and/or conducting a couple of L.A.B. groups are all it would take to do the same thing for a station event, promotion, or fundraiser.  How will you reinvent your station in 2008?