Planters Peanut Butter......Finally

Finally, after 100 years, the most logical entry into a new market is coming with Planters going into the U.S. peanut butter market. The only problem is that with so much competition in this market Planters has a lot of work ahead of them. Planters is targeting adults with their peanut butter campaign and using a mascot, "Doug," voiced by Kevin Dillon, known for his character on the hit HBO show, Entourage. Kraft, which owns Planters, is trying to work its' way more into the grocery business where it has been lacking for years.

Kraft had been neglecting its Planters brand for some time, until the relaunched Mr. Peanut with the voice of Robert Downey Jr. The marketing team started thinking of new products and it's using peanut butter in different ways. Instead of typical peanut butter & jelly sandwiches, it is focusing more on more comprehensive recipes using peanut butter. Planters will probably succeed due to it's great brand recognition and the fact that people associate Planters with a quality nut product.

Read the full article here:  http://www.businessweek.com/articles/2012-03-08/krafts-planters-heads-for-the-peanut-butter-aisle#p2

Rodgers' Discount Double Check

What happens when a touchdown dance and an insurance company get together? You get the "Discount Double Check," an Aaron Rodgers creation that took on a life of its' own. Originally done by Rodgers as a touchdown dance during practice, State Farm partnered up with him and turned the move, with a new name, into a phenomenon. The "Discount Double Check" took a life of its' own with sports players and commentators using it as a part of their normal vernacular. This was an advertiser's dream. State Farm was able to successfully penetrate into mainstream media and become a part of the sports world.

The downside however is that people are not making the association with the discount double check and State Farm. People know the move and the phrase but the tie-in with the company is not really there. State Farm will continue to spread the phrase but it will work more in strengthening the relationship. It’s certainly better to have your product name out there divorced from the company than to not have it out there at all,” says Bob Dorfman, creative director at Baker Street Advertising. They have an enormously popular sports star and a great slogan so this phrase seems like it is here to stay.

Read the full article: http://www.businessweek.com/articles/2012-03-06/state-farm-steals-a-touchdown-dance-and-scores-free-advertising

Mormon Mall

Last week, a 700,000 square-foot mega mall funded by the Jesus Christ Church of Latter Day Saints opened in the heart of Salt Lake City. More than 90 retailers will be inside this mega-store and 1/3 of them are brand new to Salt Lake City. City Creek Center, the mall's name, has fountains that spew fire and water, a retractable sun room, along with other man-made fixtures. The store has a deal with the church and will be closed on Sundays and also will be sharing some profits with the church. Mormons have a tradition with this type of investment. Brigham Young, the Church’s second president, founded Zions Cooperative Mercantile Institution which is sometimes referred to as “America’s First Department Store."

This mall is sure to be a hit in Salt Lake City because it incorporates new stores and modernized shopping but still stays true to Mormon beliefs and tenants. Also, this mall shows that although we are slowly coming out of a recession some groups, like the Church of Latter Day Saints, still has money to develop and build. What will be interesting is if stores like Macy's and Tiffany & Co. will sell the same merchandise they do in other stores in the City Creek Center or will they adjust to fit a Mormon audience.

The full article can be found at: http://www.businessweek.com/articles/2012-03-16/what-slowdown-the-mormons-are-building-a-mega-mall

An Apple TV TV

It looks like Apple's biggest supplier is branching out into the TV business with a $1.6 billion dollar investment in the Japanese LCD TV company Sharp. Sharp is currently struggling after it said it's expecting to lsoe $3.48 billion this fiscal year. The Sharp plant though is the most efficient plant at making 60 in. TVs and could be the future leader in smart televisions. People are expecting to see a debut of an iTV by the end of the year.

Television may be a smart move for Apple because it works strongly on the interconnection between its different devices. Everyone also knows that Apple TV is reworking itself to come out bigger and better and having an Apple constructed television would be a nice compliment. Apple is trying to be a constant part of a consumer's day and television would just increase the amount of time that a person can use an Apple product.

The full article can be found at: http://www.businessweek.com/articles/2012-03-28/sharp-investment-makes-sense-if-apple-tv-is-coming

All Bags Fly for Free...Not Exactly

Southwest Airlines focuses its' advertising campaign and it's slogan attacking other airlines for their gratuitous use of fees. A big Southwest motto is that "Bags Fly Free," which is true unless you are flying on their wholly-owned subsidiary, AirTran Airways. Although it's been three years since the purchase, the fees still remain. AirTran still is an independent operation but Southwest is working on incorporating it and making it a part of the Southwest brand. This is a slow process but also bag fees are a strong source of revenue. The issue is that if Southwest Airlines prides itself on no fees but their subsidiary charges fees will this hurt the brand name.  The merit to Southwest Airlines motto may be tarnished a little bit but the divide between both companies helps distinguish one from the other. I believe that AirTran will have its best year once it's fully incorporated into Southwest.

Read the full article at: http://www.businessweek.com/articles/2012-03-28/at-southwest-not-all-bags-fly-free

Feedback Schmeedback

Just because a company asks for your opinon does not necessarily mean that they want to hear it. Many major companies use a "Great Man/Woman" approach with one person making all the major decisions. Some people like Larry Ellison of Oracle makes all the decisions from advertising to product development. Steve Jobs was notorious for this because it was not until later in life that he stared listening to others around him but still, the final decision was up to him. The firms have a type of CEO idolatry which although have had some successes may ultimately lead to their downfall. No matter how knowlegedable and visionary a CEO is, they still may make mistakes about trends in the market or what next move should be made. Business intelligence and knowledge management have made huge strides in the past years but many big companies would rather stick to what they are doing and not listen to those who actually consume and use their product.

A strong exception is Google that basically revolves its' whole money-producing function around what works with customers and what does not. Google makes its money through advertising and it uses feedback to understand what produces the best advertising. Facebook, on the other hand, uses advertising for revenue but is struggling against Google because it can not produce the same amount of revenue. This may be due to strategy or some factor but definitely, feedback and business intelligence plays a role. Customers are how an operation survives so listening to them and their needs is the only way to adapt, change, and thrive.

Read the full article at: http://www.businessweek.com/articles/2012-03-26/analyze-this-tech-companies-dont-use-their-own-products

German Amazon?...Well, Not Exactly

Amazon is having competition in southeast Asian markets but from itself? The Samwer brothers, who are known for copying American businesses and launching copycat versions have just released a copy on Amazon.com. Lazada.com, their new website, copies the layour and even color scheme of Amazon. They are targeting southeast Asian countries that have not been locked up by Amazon yet. So far the brothers have made over a $1 billion dollars by copying sites like Ebay, Pinterest, etc. Their effectiveness comes out of a well-funded "clone factory." This however brings up the question that if websites can be successfully copied and can become popular in smaller markets, what's to prevent their reach into larger albeit still international markets?

Copyright laws will protect these copycats from competing with their original American versions but overseas, especially in countries with more relaxed copyright laws, these sites may thrive. It's a delicate balance the Samwer brothers must manage but it does show that copycat websites can be successful and that brand name does not mean the same thing all over the world.

The full article can be found at: http://www.businessweek.com/articles/2012-03-22/german-copycats-clone-amazon-dot-com

Order Up! Japanese Is On The Menu

Investors have been dumping millions into Japanese farms and fish ponds as the world's appetite for Japanese products increases. Food investors have already invested at least $281 million. "Food is the one area that has a big investment potential,” says Mori, 44, president of Dogan Investments in Fukuoka City. Twenty-five regional banks have increased their lending to farmers who want to export their products abroad. Banks are giving low lending rates because they believe that the taste for Japanese delicacies will only expand and they will make back what they lend and more from these farms.

Wagyu beef and black swine are also two other major livestock that have been growing exponentially and customers have been scouting out these markets. Owners of these farms have essentially changed from farmers to securities salesmen because of the growth in these industries. This can serve as a great boost for the Japanese economy who has had lending decrease over the past 2 years. The world's tastes are expanding and Japan is enjoying the boom it gets from these new globalized consumers.

The full article can be found at: http://www.businessweek.com/articles/2012-03-15/funds-hope-to-cash-in-on-japanese-cuisine

Will Apple Need Carriers Anymore?

It appears that Apple is currently looking for telphone software engineers to work on iOS. Many people are very excited about this because Apple is looking to add voice-over-IP (VoIP) capabilities to its iPhone and iPad operating system. This is doubly exciting because it could potentially mean that it may drop its' carriers and launch its own voice service. On the other hand, it could mean that they want to work even closer with its partners because VoIP is the next generation in voice services. Apple neds experts to develop SIP-based clients to communicate with carriers' IMS cores.

Apple will most likely not go into the the VoIP business for many of the same reasons that Google is not getting into the business. This technology will probably go into a cross-device VoIP set-up that allows customers to trade phone calls among iPhones, iPads, and Macs. This communication could range from phone calls to videoconferencing to instant message. Carriers will never be able to limit Apple's ingenuity and this initiative, if it is successful, may make Apple products even more popular then they are now.

The full article can be found at: http://www.businessweek.com/articles/2012-03-23/is-apple-planning-its-own-mobile-voice-service

Extra! Extra! Want to buy a Daily Variety?

The Web once again shows it's strength and how if you can't update then you can't stay in the game. Daily Variety, Hollywood's 107 year old industry trade publication has been put up for sale. This comes after the trade newspaper has been losing out to its' competitors Deadline, the Wrap, and its' traditional competitor, the Hollywood Reporter. The Reporter had a relaunch in 2012 where it put daily news on its website and released a weekly magazine.

Daily Variety is still known around the world and this valuable asset makes it a "trophy brand," according to Ken Sonenclar, managing director at DeSilva & Phillips investment banking. The sale praice will probably be around $50 million but to survive the newspaper will not only have to get better managment but also revamp itself. Variety was one of the first newspapers to block its Web content to non-paying subscribers. Its' competitors, however, post much of the same news for free online. Daily Variety needs to be taken into the digital world. People can get the same news and the same information for free in an instant. They need to figure out what makes them different and how they can market that to customers.

The full article can be found at: http://www.latimes.com/business/ct-variety-sale-20120324,0,7980325.story

"The Hunger Games" - More of a Dessert to Finish a Great Quarter in Hollywood

Hollywood executives are breathing a little easier after the phenomenal first quarter it has had after coming out of a disappointing 2011. Last year had the lowest levels of movie attendance in 16 years when it dropped 4%. The newly-released "The Hunger Games" just had the 3rd biggest opening ever with $155 million dollars although it cost Lionsgate studios only a little more than $80 million to make the film. This has been the biggest first-quarter increase in years and this is changing the film industry's mindset that the first quarter and winter, in general, is only for the "least attractive pictures."

This winter has produced a number of hits with filmgoers such as "The Lorax," "Chronicle," "The Woman in Black," and the "The Devil Inside" which opened to a strong $33.7 million on the year's first weekend. Veteran movie producer Sean Daniel notes that "Word of mouth goes viral today," and that Internet trailers help build excitement and it keeps the audience in a "moviegoing frame of mind." Recent movies also have been so varied that it is attracting a wider scope of individuals. Furthermore, social media and targeting specific cable channels has made advertising more impactful and cost-effective.

This trend seems like it will continue because the two biggest films of the year, "The Avengers' and "the Dark Knight Rises" have yet to come out and those will definitely be breaking some records. All in all, 2012 does not look like to be the end of the world, at least not for the film industry that is, they will surely be resting easier once the year's sales figures come in in December.

The full article can be found at: http://www.latimes.com/entertainment/news/movies/la-fi-ct-projector-20120323,0,1353397.story

How Do You Say Delicious Around the World?

Kraft Foods is taking a new name that it will attach to its global snacks business. Mondelēz International was a creation from two employees in different parts of the world. Johannes Schmidt, in Vienna, and Marc Firestone, from company’s headquarters in Northfield, Ill, came up with the name because they wanted to work upon the idea of a “delicious world.” The name has two main parts, “Monde,” which is French for world, and “-delēz,” which is a play on the French word for delight, “délice.” It’s a word that very much exemplifies the international focus this name is meant to embody. Some worry that non-Spanish, Italian, or French speakers will have difficulty pronouncing the name properly but the uniqueness of the name, in my opinion, adds to its’ appeal.  They macron over the “e” also helps make the word in the words of Kraft spokesman Michael Mitchell, “more ownable.” The specific product names will remain the same, such as Oreo and Cadbury but this name is for the corporate brand. I believe that this name will be very successful for them and that it does an excellent job of working with their strategy. Kraft will just have to wait to see if the general public finds the name as catchy and interesting as the creators found it.

The full article can be found at: www.businessweek.com/articles/2012-03-21/kraft-mondelez-and-the-art-of-rebranding

UPS: Bringing the Brown Overseas

UPS recently spent $6.77 billion purchasing Dutch rival TNT Express. This deal comes after weeks of negotiations and UPS can now better compete with DHL. According to estimates, UPS will have between ¼ and 1/3 of the European package delivery market. UPS sales will grow from 26% to 36% with the acquirement of TNT.  UPS shares rose 4.2 percent in afternoon trading; they had total sales of $53.11 billion last year and it expects sales of $60 billion with TNT. UPS also was in competition with FedEx Corp. for the acquisition of TNT. By 2015, UPS expects savings to grow from $525 to $725 million a year.  This purchase will make UPS a shipping powerhouse worldwide and FedEx will have to work hard to try to stand up to this new shipping magnate. UPS was always one of the nation’s biggest but now it will be one of Europe’s biggest as well.

The full article can be found at: http://www.lompocrecord.com/business/ups-snags-europe-s-no-package-delivery-outfit/article_4c976b15-dd2c-51d8-9021-a34c109e0e54.html

Microsoft’s Video Game Market Looking Towards the Future

Microsoft Corp. is one of the three big players in the video game market along with Sony and Nintendo. Their console, the Xbox 360, has been on the market for seven years but still continues to sell and was bolstered by the introduction of their new Kinect, a motion-sensor accessory. It had its’ best year of sales in 2011. Even with this success however, they are still looking to unveil the next version of their Xbox console in 2013 or early 2014.

Releasing a new console into the market is something that has to be timed perfectly. According to Michael Pachter, an analyst at Wedbush Securities Inc., “Theyre still selling a lot of Xbox 360, and they’re making money…I don’t think the world needs them to put a new console out just because we’re bored.” The last fiscal year showed a 45% sales gain to $8.91 billion and outsold both Nintendo Co.’s Wii and Sony Corp.’s Playstation 3. Nintendo is releasing its’ new console, the Wii U later this year but its’ once extremely popular console has been having dwindling sales for years now.

Microsoft is in a very strong position so they must be careful about which route they take. New consoles are inevitable but new consoles tend to lose money at first and it isn’t worth the hit if their current console is doing so well. Also, people may be turned off from buying a new console if their purchase of their current console was made in the past year or past couple years.

The full article can be found at: http://www.bloomberg.com/news/2012-03-15/microsoft-says-it-won-t-be-discussing-new-xbox-at-e3-conference.html

Sears: Saving Money by Closing Doors

Sears Holdings Corp plans on closing 62 of its’ retail stores in order to reduce expenses. Edward Lampert, Sears’ CEO, just had the company’s largest quarterly loss in at least nine years.  Its’ goal is to raise about $770 million to help recuperate from that loss. Shares fell 1.1 percent to $82.55 at the close in New York but shares have more than doubled this year after falling 56% last year.

The company also owns Kmart and has 45% less cash than last year with $747 million in the fourth-quarter. Kmarts have been struggling for years now and the amount of these types of stores have been falling with the success of major player Walmart and also wholesalers such as Costco and BJ’s. To survive, Sears not only has to raise money but find a way to reinvent itself to survive in the new market.

The full article can be found at: http://www.bloomberg.com/news/2012-03-16/sears-to-close-62-stores-in-first-half-of-this-year-to-cu.html

Walmart’s Lines Are About To Get Even Crazier

Apple’s new iPad will be coming not only to Apple Stores but also to Wal-Mart Stores eight-hours earlier.  The world’s largest retailer will be selling a limited number of iPads. This is a special arrangement because Apple does not typically favor other retailers over its over 350 Apples stores. IPads account for about 20% of Apple sales and it is the company’s second best-selling product behind the iPhone. This is a huge competitive advantage for Wal-Mart because it gets a head start over Best Buy and Target.  Sales will probably not affect Apples stores too much because of the limited quantity that Wal-Mart will be selling earlier. Lines will form just as long around these Wal-Marts at each and every Apple store.

The full article can be found at: http://www.bloomberg.com/news/2012-03-15/wal-mart-to-start-selling-ipads-at-midnight-before-apple-stores.html

Apple Might Not Control the Whole World Just Yet…

Cisco Systems is working to reinvent the way in which we watch television. They announced that they will pay $5 billion to acquire a British software company NDS Group.  NDS says that, “An amazing user experience is critical to the operator’s success. Thanks to powerful MediaHighway® set-top box software and intuitive EPGS and UIs like the award-winning NDS Snowflake™ UI, NDS makes it easier for your customers to maximize their enjoyment and use more of the services you have to offer. The NDS Studio Design team will create a unique look and feel for your operation, or choose from a wealth of existing solutions.”

            NDS has a large assortment of technologies all designed to “maximize (a television market’s) content investment and revenues, push your brand and give your customers the flexibility to enjoy their content on all of the devices they own.” Cisco wants to be ahead of the game and moreover, ahead of Apple in the content area. Other competitors such as Rovi and Google are looking at this same market.

            Apple is always at the forefront of the next innovation so other companies must take any advantage they can so that they do not lose out. Portable and streaming content is the next big revolution but the technology and means of distribution have yet to be perfected. If this company’s technologies turn out to be successful, it will be Apple that will have to find out how to “copy” Cisco’s innovation.  

            Read the full article at: http://www.forbes.com/sites/greatspeculations/2012/03/16/watch-out-apple-itv-cisco-going-for-the-kill/