Month: February 2011

The average consumer is used to hearing commercial testimonials about how great a product is: “ProActive got rid of my acne in less than a week!”

However, Miracle Whip triumphs many other advertisers by taking a completely different approach and doing the unthinkable: criticizing their own product. Having just launched a new viral campaign this week, Miracle Whip’s commercials use testaments from “haters” and “lovers” of the brand including the likes of D-list celebrity Pauly D from Jersey Shore. In the commercial, Pauly D says “I hate Miracle Whip. Like, I hate Miracle Whip so much that if I had a girlfriend that liked Miracle Whip, it’s a deal breaker.”

Source www.youtube.com

Although this is a risky move for Kraft, as the campaign could provoke more negative attention then wanted, I think this is an innovative way to market a product.  This isn’t the first time Miracle Whip has stirred up discussion. A few years ago, on the Colbert Report, even Steven Colbert picked up on the Miracle Whip craze by mocking Kraft’s campaign. The fact that a sandwich spread can cause so much conversation proves this is an effective marketing campaign.

Source: http://bargainbriana.com/1-miracle-whip-printable-coupon/

Miracle Whip has positioned itself as a tangy, exotic spread that “isn’t mayo and isn’t for everyone.”  The campaign aims to attract new consumers using their current product, a strategy we all know as “market development”.  I think that Kraft’s current campaign strongly positions themselves in a consumer’s mind as a bold product, and it compels non-users to try Miracle Whip.

Personally, when it comes to Miracle Whip, I’m a hater of the product, but a lover of the campaign.

For a company who is projected to be the fastest company to make 1 billion in profits, Groupon is the quintessential example of using social media to your advantage.  Whether you have purchased a discount ticket at the Whistler Bungee Jump, or a cheap haircut from a chic downtown salon, people would be crazy not to take advantage of most of their deals. Phil Wainewright describes Groupon’s success in his article and I must agree with Phil: clearly Groupon is doing something right.

Source: www.youtube.com

Now operating in over 50 cities, how did a once-small internet site turn into a booming coupon-giant in such a short amount of time? Groupon saw a hole in the market, and went for it.

I think Groupon’s biggest advantage is the way it segments the market. It targets both local businesses that are looking to expand their consumer base, as well as deal-hunting consumers.  Groupon then brings them together by offering one huge deal a day and charging a hefty premium to the business. The greatest part of Groupon’s strategy is that their consumers are nearly anyone with a credit card and internet access. This is because although Groupon is providing the same service, the benefits of these services change daily, allowing for a broad consumer market.

 Why didn’t I think of doing that?

 Source: www.youtube.com

 I think Groupon is a brilliant idea, and it’s clear that many other people do too, as a variety of other discount-offering sites such as “Swarm Jam” and “Daily Deal” have popped up. These successful services are perfect examples of how successful it can be to harness the power of social media.  

Fact: Since writing this blog post, Howard Schult, the chief executive of Starbucks has taken a seat on the Groupon Board of Directors.

Juggling between reading my marketing book and finding an appealing concept to blog about, I stumbled upon the following article:

Hudson’s Bay Revamping Restaurants at 24 Locations

Having just read about Coca-Cola’s efforts to expand their empire, many of Hudson’s Bay and Coca-Cola’s actions paralleled each other.  

As the textbook explains, Coke wanted to create a product that didn’t coerce men away from the “diet” stigma of Diet Coke, so they created Coke Zero, a more masculine, aspartame-infused drink. Similarly, in the revamping of Hudson’s Bay, the company is trying to rebrand itself as a more upscale department store.

With the recession in the past and the purchasing power of consumers increasing, Hudson’s Bay has timed this renovation skilfully, however is the company trying to capitalize on the growing purchasing power of their current customers, or are they targeting a new market of Canadians?

Reading through the Globe & Mail article, it appears as if the retail-giant is attempting to maintain their current customers, while attracting people with different, more expensive tastes. Additionally, through the renovation of even their in-store restaurants, they can appeal to a crowd that is simply interested in a relaxed, yet chic meal.

In my opinion, change is great and as a consumer I am attracted to anything that is new-and-improved. Nevertheless, I believe that any company that is attempting to re-establish itself must be careful not to cut ties between what it is and what it wants to be.  

Although I don’t think Hudson’s Bay will be on par with Saks anytime soon, I believe that this direction is the right one for the retailer to take.