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
Wednesday
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
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
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
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
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
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
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
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