Wednesday, October 12, 2011

From Zero, to the Max - Dr. Pepper 10 Steps into the Cola War to Battle for the Male Demographic

Since the 1980's, a war has been brewing - almost literally - between Coke and Pepsi.  This is nothing new.  The younger, perhaps swifter "challenger" - Pepsi (born in 1898) - made great headway in terms of chipping away at Coke's (born in 1886) commanding lead in the market through the early 21st century by positioning Pepsi as a "better tasting" cola.





More recently, however, Pepsi has seen its' market share slip, forcing a "retooling" of its marketing.  One aspect of this retooling was bringing Pepsi Max to the US as a means of pulling in male cola drinkers who are self-conscious about drinking "diet" beverages.  


According to the NY Times, Pepsi Max was introduced in Europe in the early 1990's, and made its' US debut in 2007.  
A 2009 report by Mintel, the market research firm, said the soda’s sales had been “impressive,” even during the economic downturn, “likely by attracting price-sensitive energy drink users.”
The importance of "zero calorie, 'diet' alternative" beverages in the market is considerable, and supported by the most recent entry into the war for male drinkers - Dr. Pepper 10.

Pepsi Max and Coke Zero have been somewhat subdued in their targeting of men - relying largely on conventional male humor, and masculine phrasing to indicate the targeted group.

Pepsi Max: "I'm Good," Superbowl 2009



Coke Zero: "Two Men in a Restaurant," 2006

Dr. Pepper 10, on the other hand, is taking a much bolder approach (perhaps as a nod to its' "bold" flavor) introducing the new product under the tagline,  "It's Not For Women."



The appeal of this approach is obvious - generate buzz and word of mouth.
'Is this really for men or really for women?' is a way to start the conversation that can spread and get people engaged in the product... One topic people never tire of talking or arguing about is differences between men and women, particularly if women are excluded... That will always get someone's attention.
Dr. Pepper is, however, taking a bit of a risk.  It's Facebook page for the campaign - the Ten Man'ments - has 10.6 million "likes" and counting, but has been lit up with criticism.  Here's a typical "complaint:"


Given that Dr. Pepper's own research has shown that 40% of those trying the NEW Dr. Pepper 10 are women, and earlier Pepsi research citing similiar 40/60 split in terms of female/male drinkers of Pepsi Max, the brand risks alienating a significant portion of its market.

Accordingly, Pepsi claims it has chosen to downplay gender in its messaging.  Lauren Hobartchief marketing officer of the sparkling brands division of PepsiCo explains:
while some of our past advertising was more overtly about being the diet cola for men, there’s still a lot of women drinking Pepsi Max, so it doesn’t make sense to be so specifically gender focused.
Pepsi's "new" commercial may be a testament to the brand shaking the shackles of gender and assuming the "taste" positioning that has served the brand well in the past.


Pepsi is erring on the side of caution.  It is a brand that seeks to be all things for all people.  Looking more closely at Dr. Pepper the bold move of ruffling feathers over gender may be more attuned with how they have built their brand - to almost be an elitist, some people get it, some people don't.

As far as gender appeals go, this one may resonate more strongly with key Dr. Pepper drinkers than the lukewarm gender appeals made by Coke Zero and Pepsi Max (in the past).  It is a little ironic, however, that the brand that played on affiliation & social needs by encouraging us to "be a Pepper too" is now taking an exclusionary stance by targeting men.

Monday, October 10, 2011

Maybe "Big Girls Don't Cry," But Brands do, for Mommy...

For decades, American brands have recognized a distinct consumer that not only holds purchasing power on their own, but also controls the purchasing power of others - the "Mom."


Marketers, and even politicians, have sought to make "mom" a brand of her own - first giving birth to "Soccer Moms," and then, "Hockey Moms," as distinct groups of consumers who share common demographic and psychographics.

According to Mike May, the Director of Communications at the Sporting Goods Manufacturers Association, Soccer Moms are
most likely married, aged late 20s to early 40s, probably driving an SUV; she works, though it's questionable whether or not she has ever played soccer. Some are college graduates and some are not.
Hockey Moms "are basically the same people."  They may be a little tougher (thanks to the reputation of the sport) and a little more blue collar - but their focus on their family, placing family needs above their own, remains constant across both groups.

These moms have taken their power online, creating a phenomenon known as "mommy blogging."


While the numbers alone are staggering -  79% of all US moms with kids under 18 use social media and 4 million moms are blogging - the influence these blogs have on consumers is what is really making brands take notice.

According to NPD Group research,
Active social media moms [have, on average] bought a children’s product based on a social media recommendation... five times in the past year. Fifty-five percent of these moms said they made their purchase because of a recommendation from a personal review blog
It's not surprising then, that brands are falling over each other to woo and win over these influential Moms.  For instance,
popular mommy bloggers have been sent to the Olympics, courtesy of Procter & Gamble, and to the Oscars, courtesy of Kodak; and road-tripped to Disney World in a Chevy Traverse, courtesy of G. M. Canada...
The fascination with Moms as a target market is not limited to the US.  As domestic markets continue to dry up – thanks to the almost endless number of competitors and economic recession – marketers are finally looking to China as a consumer market, rather than just the world’s factory.  So now they are introducing us to Tiger Moms - Chinese mothers who hold the purse strings (supposedly in an iron fist) for her family.


In her book, Battle Hymn of the Tiger Mom, Amy Chua describes the Chinese mom as part drill sergeant, part Sorority House pledge mistress, who's demands for perfection are voiced bluntly, without apology.  Mom is likely to say to her daughter - "Hey fatty - lose some weight." Or to a child who doesn't get straight A's - "You're lazy.  All your classmates are getting ahead of you."


Regardless of what we think of this parenting style, it provides great opportunity for brands to consolidate "Moms" into a coherent target group based upon shared attitudes and sensibilities.  Or does it??


Just like skeptics who question the usefulness of market segments such as Soccer Moms and Hockey Moms in the US - Chinese researchers are calling into question the relevance of "Tiger Moms" in today's China.


According to Allen Wang, CEO and Founder of Babytree.com, China's most popular parenting website, today's Chinese mom comes from a "post 80's" generation, that values freedom and things like "happiness, confidence, and the ability to do anything they want in their lives" for their children.  In essence, the Tiger Mom is a fiction of the past, while the Chinese Mom of 2011 looks (and acts, and thinks) a lot like her Western counterparts.




The case of Tiger Moms reminds us that targeting, while an appealing necessity, is in no way an easy task.   As we look for similarities among consumers we often find them, but similarities in one area do not guarantee similarities in others. Yet once we convince ourselves of these similarities, we take them for granted and suddenly find ourselves slipping into stereotyping.


Whether it is Soccer Moms, Hockey Moms, Tiger Moms, or any other demographic group, Michelle Miller, co-author of The Soccer Mom Myth, clearly isolates the problem:
You can put 12 women who fit the ‘soccer mom’ demographic together in a room and get wildly different opinions about a product or service.
This is why brands must stick to the basics - both quantitative and qualitative research - rather than get caught up in the buzz of new consumer groups and target markets.  Knowing your customer is key. Regardless of which demographic or psychographic is "hot" at the moment, that will never change.

Friday, October 7, 2011

afghaniSad

At a Center for Communication event on Social Media Marketing this week, Mark Ghuneim, CEO of Wiredset responded to a question about timing Tweets and other social media content posting with a tongue in cheek, "Don't post on a day when Apple is announcing something."

That was on Tuesday, October 4th, when Apple brought good news to our ears - the arrival of iPhone 4S, along with other product improvements and innovations.

The very next day, Wednesday, October 5th, Apple once again dominated news feeds with the sad news of Steve Jobs' passing.

Ever since, tributes to Jobs have been almost endless - reflective of the impact he has had on individuals, businesses, and our culture in general.  According to Facebook, for instance,
628 million active users changed their Facebook profile picture to a real Apple, the Apple logo, or a picture of Steve Jobs.
You may have seen a lot of "status" postings of "iSad" or this visual:


YouTube exploded with videos - some traditionally media driven, like the CNN tribute below; others more grassroots produced by brand fans and loyalists.


CNET's retrospective video on Jobs puts it perfectly, describing his uncanny ability to make Apple's highly sophisticated and innovative technology, "simple, magical, and fashionable" to us as users.

In the shadow of Jobs' passing, however, important stuff is going on around the world, that is getting little or no attention.

Today, October 7, 2011 is the TEN year anniversary of the War in Afghanistan - making it the "longest war" in America's history.  For the past 10 years about 100,000 US soldiers have had their "boots on the ground" in Afghanistan, and 1,780 of them have given their lives in the line of duty.

I am not hating on Steve Jobs, or diminishing the impact of his death.  It does, however, make me think about how lives are valued in our society today.  When what we care about is so dependent on what the media emphasizes and reports on, it is not surprising that Facebook, and social media is more abuzz with Jobs' passing, than the sacrifices of our soldiers in Afghanistan.

To illustrate - in my NY Times "Today's Headlines" email this morning (timestamped 3:05AM) there were 38 clickable links to content.  11 of these links, almost 30%, were to Steve Jobs, or Apple related content.  There were no links to content related to the 10th Anniversary of the War in Afghanistan.  Furthermore, a review of the NY Times' homepage, around 11:00 this morning, yielded no news about the Anniversary.

This makes me AfghaniSad.

Monday, October 3, 2011

Advertising Indusrty Critics Ask - "Where are all the Black people?"

Advertising as an industry is notorious for its lack of diversity.  A study of the creative teams behind 2010 Superbowl Ads conducted by the Institute for Diversity and Ethics in Sports at the University of Central Florida found that
"The number of advertisements featuring a person of color as creative director went from zero in 2010 to four (representing 7%) in 2011…  And the study found that the "gender breakdown of creative directors remained the same from last year at 94% male, 6% female."
Another Ad Age article delves into potential reasons for the lack of diversity – citing both hiring and retention problems. 
“Not only do you have to recruit people that are diverse, you have to create environments under which those people are comfortable working in…”
Still, all is not lost .  Ad Age lists almost a dozen initiatives, dating back as far as 1973, to improve diversity in the industry.  And, filmmakers in partnership with the 4A’s and VCU Brandcenter produced a short film – Pursuit of Passion:  Diversity in Advertising – that paints a rosier picture of the issue, and its impact on creative work.  Watch the full length film here:



Despite the conflicting opinions about diversity in the industry, The One Club (among other “partners”) is hosting a creative career fair during this week’s Ad Week.  The goal of the event, known as “Where Are All The Black People?” is to
… have as many participants as possible walk away with a job offer, a confirmed second interview, or a paid internship. Participants will also have the opportunity to connect with a mentor, meet professional contacts in the industry and establish a valuable network.
The event will be held on Tuesday, October 4, 2011 from 8am-6pm at New World Stages, 340 W. 50th Street NYC.  For more event information and/or to register, visit the Where Are All The Black People website.

**This post is for informational purposes only - check back later for updates of a more critical nature, like, "why are there no black people in advertising?"  And, of course, we might need to discuss the pros & cons of affiliating with Al Sharpton as a "celebrity" endorser...

Thursday, September 29, 2011

FTC to Reebok - "The BUTT Stops Here."

Over the last year or so, a new phenomenon hit the fitness market - "toning" sneakers.  The products are designed to provide an "unstable" foundation while walking, which (supposedly) allows wearers to tone their hamstrings, calves, and butts, simply by walking around.  Forget the hours at the gym, just wear these shoes during your normal daily activity and viola! Instant results.  Claims so fabulous and enticing that the "toning" segment of the sneaker category reached $1.1 billion in 2010.



We all know, however, that things that sound too good to be true, are too good to be true.

Today the news is a buzz with a $25 million settlement Reebok has agreed to, after the FTC charged that it deceptively advertised its' toning shoes & apparel.  At issue are specific claims Reebok made that the users of the product would see "a 28% increase in strength and tone of the butt, and an 11% increase in the strength & tone of the hamstrings and calves."

Reebok is standing by its claims - stating that is has received "overwhelmingly enthusiastic feedback" from users - and has simply agreed to the settlement to avoid a protracted legal battle.

Here's an EasyTone ad - what do you think?


Obviously, the FTC thinks the ad is deceptive and misleading.  This leads us to a bigger issue, as indicated by David Vladeck, Director of the FTC's Bureau of Consumer Protection:

[We're here] to remind advertisers big and small that they must have adequate proof for the claims they make in their ads...
End game for ALL advertisers - claims must be substantiated.  If you say it, you must be able to prove it.
 
What puzzles me most in this particular case, is why Reebok went here in the first place?  I can understand "sketchy" Sketchers introducing ShapeUps as a way to get into the "serious" fitness market, but come on, Reebok is a REAL FITNESS BRAND.  It has a lot of respect to lose by following the dollars of fad products.  Real athletes who spend real money on fitness equipment know that you have to work to get results.  EasyTones are just too easy.  While Reebok may have added revenues from the segment, they more than likely alienated core customers who are embarrassed and offended by this type of bogus product, and the bogus claims.

Wednesday, September 28, 2011

Halloween for Marketers – No Tricks, Just Treats…


The economy might seem scary these days, but apparently US consumers aren’t too scared – vowing to celebrate and spend more this Halloween than in the past.  Spending is projected to reach almost $7 billion.


While candy is still the biggest line item on revelers shopping lists, decorations and costumes aren’t far behind.


Good news!! But wait, Halloween is just one day of the year.  What happens to the economy the other 364 – does it turn back into a pumpkin at midnight like the carriage in Cinderella?

For some Halloween marketers – maybe.  They pack up the ghosts and goblins, and store them away for next year.  For others, who are true “occasions” marketers, absolutely not.  

Sure, candy is a natural fit for Halloween.  Most brands deck themselves out in “spooky” packaging to distinguish their everyday products from the “special occasion” products (which are essentially the same things!) to get us to buy more.



How about candy brands that have embraced the “occasions” marketing strategy and extended their product line to include holidays across the calendar?  Just Born, the maker of Peeps, comes to mind.


That's right - they moved from sweet Easter chicks & bunnies, to snow & gingerbread men for Christmas, to hearts for Valentine's day.  Not to be outdone, they scared up some halloween themes too:


Now all they need are stars & stripes for Fourth of July, and turkeys for Thanksgiving and they'd be all set!  

The end game is that "occasions" marketing can mean big business to brands, especially during hard times.  Addressing holidays through festive packaging and other promotions is a way to get in the game faster & on the cheap - without product development.  The seasonal boost in sales may be just what the brand needs to move out from the red and into the black.

Other brands, however, may find great ROI in product development and decide to get more involved with "occasional" products.  By creating products for different holidays, or seasons, brands can smooth production and distribution patterns that typically cause headaches for seasonal marketers.  

Just Born has figured a way to keep its production lines running all year long and as a result, has not only become a more efficient producer & distributor, but has also won the hearts and "sweet tooths" of millions of customers.  Now that is a sweet strategy.

Thursday, September 22, 2011

Burberry - "Tweetwalking" the Talk of Social Media & Brand Experience


Going Viral.  Organic Conversations.  Facebook this, Twitter that...  I'm plum tuckered out just from listening to all the talk about social media and marketing.  While brands struggle to figure out how social media fits with their strategies and consumers, some are learning to walk the talk and deliver value added campaigns.  

Earlier this month – during Fashion week – Burberry broke new communication ground by creating a #tweetwalk conversation on Twitter where it shared each “look” in a tweet before it hit the runway.  Taking a lesson from Donna Karan and Marc Jacobs, who livestreamed their Spring runway shows via Facebook, Burberry also livestreamed its Fall show on its own website, in addition to Facebook creating an additional point of engagement with brand fans and customers. 

Other recent examples – like Coca Cola’s use of Facebook to extend and entrench it’s Happiness positioning – is indicative of a huge push to social media as a communication tool. 

Hold your horses…. This doesn’t mean that traditional media is dead.  In fact, a large portion of the global success of #tweetwalk can be attributed to regional “Twitter Takeovers,” in which editors of traditional media tweeted on behalf of the brand via accounts such as @burberry_turkey (the editor of Elle, Turkey), @burberry_russia (the editor of Vogue, Russia), and @burberry_korea (the editor of Elle, Korea).  Vogue & Elle (among other traditional media) recognize that they must move forward and work with new, digital formats - and brands like Burberry are taking advantage as they extend their influence across these platforms.   

Christopher Bailey, Burberry’s CCO (Chief Creative Officer) spoke with Mashable about the importance of a media mix to the brand's communication strategy:  
… the online experience Burberry has developed on its own behalf doesn’t detract from or diminish the role of traditional media, but provides another channel for consumers to experience the brand. “A brand is not just about product, it’s about experience as well, and experiences need to come from the center of a community,” he said. “I get excited about using all of those platforms to communicate to all of our different communities around the world about what we’re doing.”
In another Mashable interview, Dennis McEniry, President, Online, Estee Lauder Companies (often thought to be the owner of some of the most “digital forward” beauty brands) illuminated the old vs. new media debate:
Traditional is still important, but it’s becoming a different blend.
When you look at it across all our portfolio, TV and digital are the highest priorities. Television is becoming even more important for most of our brands than it has been in the past. And of course all of our brands are doing digital and doing a lot more with digital than in the past. 
Print is still a big priority with our largest brands like Estee Lauder and Clinique, but they’re changing the mix.
In the end – the brands that leverage social media the best (like Coca Cola, Burberry, and Estee Lauder mentioned here) are the ones that have moved past buzzwords like optimization, viral, and engagement towards INTEGRATION of communication media.  While today, the media may be new, the goal of the brand stays the same - to create a consistent voice that gains volume as it resonates across many (old & new) media platforms.

One doesn’t have to look past Coca Cola (a very old school brand that consistently steps up and leads the way in the digital new school) and what it has done with integrated “audiomarks” that form the backdrop in virtually every communication piece the brand produces.  Give this Vimeo clip a viewing and listen for the audiomark - this is an amazing example of how deeply embedded aspects of branding can be, both inside us as consumers, and in everything that is wrapped up in, and associated with a product.