Author: loganmcl

Adidas launched a massive new campaign called “Adidas is all in.” At first, there were 5 second teaser videos for the campaign, but it is now out in full blast and can be seen in various measures of advertising such as magazines, billboards, commercials, and online videos.

The campaign features celebrities such as Katy Perry, B.o.B., D. Rose and Messi to demonstrate versatility in the brand. Also, this attracts more consumers from each celebrity’s fan base.

Previously, Adidas segmented the market by psychographics- different groups that consumers associate themselves with. Their target audiences were athletes, skate kids, and fashion and music fans. With the new campaign, comes a new market segmentation and target audience. Adidas is now going to segment consumers by age (demographics). Their new target audience is the brand’s primary consumers- teenagers aged fifteen to nineteen. Lots of research was conducted by Sid Lee Montreal and this segment appears to be very attractive as “kids these days mash everything up. They wear stuff that we intended for the court, on the pitch. Stuff that we intended to be style, they wear in the gym.”

The segment is clearly identified (all teenagers), is reachable through advertising and word of mouth marketing and it is substantial as there is a large population that is between the ages of fifteen and nineteen who need to buy clothes and sport apparel. Further, the segment is responsive and profitable. Since teenagers mash up their styles, they will respond well to the new campaign and it will be profitable as teenagers will continue to buy trendy clothing.

With “all in” as the slogan, Adidas hopes to spread the message that “we’re all in this together,” unlike Nike who focuses on purely the individual themselves. This is an excellent positioning strategy as Adidas can visibly differentiate themselves from Nike. Also, the “all in” slogan can focus on individuals.  Adidas wants consumers to know that “when you’re passionate about something, especially your game, you’re all in, you put everything into it.”

Sources: The Globe and Mail
FMag

I recently came across an interesting blog post from Michael Fleischner’s Marketing Blog titled Marketing Through Partnerships that talked about the importance of partnerships in marketing.

He states that “Partnerships come in various shapes and sizes. And when it comes to marketing, the type and extent of partnerships vary greatly.”  As I read this quote, it made me think about all of the different types of partnerships in marketing we have talked about throughout the term in COMM 296. Most importantly, co-branding, supply chain relationships, and brand licensing.

A successful supply chain partnership that comes to mind is that of Dell and FedEx. Dell has a very short supply chain that allows products to get to consumers smoothly and quickly, thanks to a partnership with FedEx. The Dell manufacturing plant is located right beside a FedEx shipping centre and all products are shipped through FedEx.

Some co-branding partnerships that I can think of are: The Gap and (RED), Apple and (RED), Apple and Nike, Lip Smacker and Dr. Pepper, Target and Issac Mizrahi, McDonald’s and Monopoly, and Eddie Bauer and Ford. By partnering with each other, these companies all saw increases in the number of users as well as profits. If a consumer recognized one brand name, they were more likely to buy what that brand was partnered with over other products available. Additionally, these partnerships persuaded consumers to buy the co-branded products.

Further in his blog, Michael exclaims, “Consider what aspects of your marketing campaign (internet marketing, email marketing, direct marketing, etc.) can be supported or improved by seeking out a partner.  Even if you are sharing profits 50/50, you’re much better off than if you were to go at it alone.”

I think this is an excellent quote as it reinforces the fact that a partnership in marketing can open many doors and is extremely valuable in the long run. Finally, when I look at companies who have various partnerships, the majority of them have ultimately been very successful overall.

On YouTube the other day, one of the videos featured on the home page was titled “Jennifer Aniston’s Sex Tape” and it had just over 5 million hits.

REPEAT: Sex Tape?……. WHAT? On YouTube?

Though the title may be deceiving, this video is not exactly what you think it is. It is all a part of the new Smartwater advertisement campaign by Glacéau, who is owned by Coca-Cola. Jennifer Aniston has promoted the beverage in the past and is once again the chosen celebrity to promote Smartwater in a “viral video” on the internet. The full version of the video is titled ‘Jennifer Aniston Goes Viral- Smartwater.’

There are mixed reviews about the video; however, I think the advertisement has been successful with respect to the first step of AIDA. Smartwater sure has captured the attention of millions of consumers on the internet and made them aware of the product.

Smartwater focuses on satire by incorporating take offs on popular YouTube videos. Keenan Cahill, the professional lip syncher, the dancing babies, hundreds of cute puppies, and the double rainbow are all examples of well-known YouTube videos that are featured. In the end, Jennifer Aniston turns on her sex appeal and drinks Smartwater in slow motion.  She then states that Smartwater is “the purest tasting water there is.”

After watching the video, the consumer has no true desire to go and buy Smartwater, other than the fact that Jennifer Aniston looks sexy drinking it and advocates that it is the purest water available.

As Jacqueline Lee mentions in her blog,  Smartwater

“create[s] a disconnect between the brand and their targeted market” by featuring three nerdy internet boys with all the other famous YouTube videos.

I agree that nerdy internet boys are not the ideal target market for Smartwater. But, when a consumer watches Keenan Cahill or listens to the double rainbow song, they will now likely be thinking about Smartwater after watching the viral video.

In celebration of Starbucks’ 40th anniversary, the new Starbucks logo is finally here and a selection of new treats are available on the market.

Over the last 40 years, the company has focused on building the Starbucks brand name. With the new logo, they hope that the same two-tailed siren image will still be recognized without the writing. In addition, by eliminating the word “coffee” from the logo, Starbucks will be able to focus on other products that are offered. This is in hopes of growing the Starbucks brand beyond specialty coffee.

A new product line, Starbucks Petites, will hit Starbucks stores this week. In particular, new Cake Pops will be featured. These bite size cake treats come in three flavors: birthday cake (vanilla with pink chocolate icing), tiramisu, and rocky road.

Cake pops were selected to be offered on the menu because they are a quick, easy, and portable way to enjoy cake. In addition, it is a new trend for specialty bakeries to offer these carefully made delicious treats. Starbucks recognizes the increasing popularity of cake on a stick and hopes to capitalize on its growth and demand.

This Thursday, Friday, and Saturday from 2-5 p.m., customers will receive a free Cake Pop with the purchase of any Starbucks drink. This is a great way for consumers to become accustomed to buying a Cake Pop to go with their normal purchase of a Starbucks drink. Here, Starbucks is using shaping to get consumers to try and then want to buy more of the Cake Pops.

In the end, only time will tell whether or not Starbucks is able to not only make a profit with their Cake Pops and other Starbucks Petites treats, but become recognized for products other than coffee and expand the company’s brand.

For more about Starbucks Petites: Starbucks Menu

“It’s thinner, lighter, and faster than ever.” – Apple

The iPad 2 is here.

Earlier today, Steve Jobs took the stage in San Francisco and presented Apple’s newest edition of its iPad. The release date for the popular tablet computer is scheduled for March 11^th in the US and March 25^th in Canada.

Some new features include a 33% thinner design, two cameras on both sides, a dual-core A5 chip, a lighter weight and faster graphics.

The original iPad put the tablet computer industry in the introduction stage of the product life cycle. It was the first tablet computer to hit the market with no competition at the time of release. The majority of people who purchased to iPad within the first couple of months were innovators. Then, with several reviews and more research available about the product, some of the early adaptors purchased the iPad towards the end of 2010.

With the iPad 2, tablet computers are now in the growth stage of the product life cycle. Apple’s sales are projected to sky rocket and it is expected that there will be long lines to purchase the coveted tablet on the first day it is available. Steve Jobs thinks “2011 will be the year of the iPad 2,” even with the emerging competition in the tablet industry.

There are now a wide variety of tablet computers available on the market, which further illustrates the growth stage because of increasing competition. Some of the iPad’s competition includes the Samsung Galaxy Tab, Dell Streak, Motorola Xoom and the BlackBerry PlayBook. Further, there are more early adaptors purchasing the iPad and the early majority is just around the corner.

I spent Reading Break in downtown Toronto, where Tim Hortons is a very popular choice for coffee, breakfast and even lunch. There was a Tim Hortons on almost every single street corner or within only a few blocks of each other. Everyday there was always a long line at each location, sometimes even out the door. One morning I decided to wait in line and go try their new breakfast wrap. When I got to the front of the line, I noticed some very blue donuts that I had never seen before in Vancouver. I asked the cashier if they were something new and she explained to me that they were exclusive to Toronto and its 320 Tim Hortons locations. The donut was a tribute to the Toronto Maple Leafs hockey team. It was dipped in vanilla and had blue and white sprinkles, similar to the team’s jersey colours. It was only available on days when the Toronto Maple Leafs had a home game.

What a great way for Tim Hortons to catch the attention of any Maple Leafs fan and attract them to their store. On game days, fans can pick up a blue and white donut to show their support for their favourite hockey team and eat it with a sense of pride and patriotism. This will cause an increase in sales as the city comes together to show their support for the team and more and more people want to buy the donut. David Morelli, Tim Hortons spokesperson said “we’re hoping the doughnuts will help the Leafs. And if that doesn’t work, the Leafs should help us with the doughnuts.” Tim Hortons has done an excellent job of segmenting the market. They have successfully combined geographic, demographic and psychographic segmentation.  The donut is only offered in the Toronto area (geographic) and it attracts Maple Leafs fans (psychographic).  Also, it is easy for the average coffee drinker to pick up with their normal cup of coffee and attracts the attention of children looking for a fun treat (demographic).

Who knew this little bird could have so much power?

It seems like everywhere I go, the word “Twitter” or “tweet” appears. As I sit down to read this month’s issue of Elle magazine, one of the featured articles is about Twitter. Even last week’s episode of Grey’s Anatomy featured Dr. Bailey tweeting about her surgeries for the world to “scrub in on” with minute by minute updates. At first, I wasn’t a huge fan, but now the little bird is growing on me. I have become addicted to reading tweets from friends, companies, and celebrities I follow as well as creating them myself.

Here is the video clip from Grey’s Anatomy:

Twitter has over 200 million users and there are approximately 140 million tweets sent daily. In 2010, 100 million new accounts were registered and there were over 25 billion tweets sent in total. Just last year, in January 2010, there were only 50 million tweets sent daily. The number of daily tweets is constantly growing. This pattern can be seen from the graph below that was created by Twitter last year.

With the recent trend of increasing Twitter users, copmanies are now using Twitter to advertise their products and services. Twitter is an excellent way for a company to advertise their name and products. It is simple to use and doesn’t take much time to tweet 140 characters about upcoming promotions, new products, or product reviews. Plus, it is free to use. #success. Also, Twitter users are able to mention companies and provide feedback to them through the use of the hash tag (#) and the @ symbol.  In a blog post by Willis Wee, he mentions that 80% of  Twitter users use it for business purposes and 20% of tweets contain brand names. He then provides 7 ways a company can increase their followers on Twitter.

1. Your tweets- choose words carefully.

2. Your background- a good background is equivalent to a good impression.

3. Your avatar-have the same avatar across all company profiles to make it easily identifiable.

4. Don’t use auto tweet-show that your company cares.

5. Be personal- communication is key: don’t tweet in a robotic manner or in a corporate top down tone.

6. Say thank you- being polite will bring you far in life and thanking can spark conversation.

7. Overall image- Twitter requires customization, so make it suitable for your company.

From my experience with Twitter, I think these are excellent tips to help increase followers to a certain page. If a company is able to use the right combination of these tips, they will be able to promote brand image and increase awareness. This might even persuade more users to move towards their products or services. Further, these tips can also be used to increase followers on one’s personal page.

Sources: How Twitter Users Changed in 2010

PepsiCo Beverages Canada has launched a new, or should I say, old beverage straight out of the seventies. The same campaign, Throwback, ran across the United States last year and was a huge success. For a limited time in select areas across Canada, consumers will be able to flashback to the seventies and enjoy the great taste of the original Pepsi made with all natural sugar instead of the high-fructose corn syrup that is used today. The beverage will be packaged in a can similar to the one from 1971 and is expected to fly off the shelves. Pepsi Throwback is targeting the “young at heart” and especially Generation Y who spent their youth consuming the beverage. The campaign is going to run with the tag “Pepsi Throwback: A blast from the past” and will be displayed with a retro seventies theme. In addition, there is going to be a large promotional effort through social media.

Not only is Pepsi going to attract Generation Y consumers, but it will also attract consumers from various other generational cohorts who are health conscious and concerned about consuming unnatural beverages with lots of fructose and preservatives. Since Pepsi Throwback contains natural sugar, unlike most of the soft drinks today which use corn syrup to sweeten their drinks, these consumers will likely buy the beverage because of its natural ingredients. In addition, the beverage will also appeal to Generation X consumers and tweens because the word of mouth will spread about the amazing taste of the beverage containing real sugar as well as their reliance on social media.

Overall, I think the campaign will be very successful as many consumers are going to want to get their hands on the beverage to recall the great taste from the seventies and relive a part of their youth or try the all natural sugar soft drink flavour for the first time. Hopefully I can find one and give it a try!

Source: Marketing Magazine

With the Super Bowl fast approaching, it reminded me of all the excellent commercials that are featured during the game. In 2010, my top two Super Bowl commercial favourites were:

To add to Jasna’s blog post about advertising during the Super Bowl, it is expected that this year more than 90 million viewers will be watching the game. A 30 second advertising spot costs a whopping $3 million. This raises the question- are people watching the game for some great football or just purely for the outstanding and much anticipated commercials that will air? Whatever the reason, several companies are happy to have such high exposure to their commercials and are hoping to attract new customers to buy their products. With a downturn in the economy, companies are especially optimistic that advertising during the Super Bowl will increase sales and lead to a more profitable year. That said, millions and millions of dollars are spent on creating these “one of a kind” commercials. When designing these commercials, behavioural influences, specifically, attitudes and perceptions must be kept in mind as each company only has a short 30 seconds to impress their audience. Since attitudes consist of three components- cognitive, affective, and behavioural- it is important that each company influence all three within their commercial to maximize its effectiveness.

For example, Google did an excellent job of influencing consumers’ behaviours with their “Search On” commercial above. To add to Jasna’s analysis of the commercial, there is a rather large affective influence. The entire commercial is based on a Parisian love story, which evokes consumers’ feelings about love and romance. Further, it ends with a baby laughing and someone searching “how to assemble a crib” on Google, which signifies a happy ending to the vignette. Next, there is a behavioural influence because the ad ends with the phrase “search on”, persuading consumers to search the internet using Google. Finally, there is also a cognitive influence because the consumer is informed of several features Google offers and it makes us think about how we could fully utilize the search engine.

As I sit down for the Super Bowl next Sunday, I will appreciate both the art and psychology behind the commercials. I cannot wait to see what is in store for us!

Recently, the Gap opened its first Athleta store in San Francisco. Until now, Athleta apparel and products were only available for order online. The company is hoping to have success with an actual physical retail location. This is the first credible threat to Lululemon’s yoga apparel and raises the question: can Athleta compete with the ever so popular Lululemon?  Currently, Athleta has a slightly lower price point compared to Lululemon. This is a huge attraction for customers as the economy is weak and consumers have become price smart and are keeping purchases to a minimum. Lululemon has focused primarily on yoga; whereas, Athleta has a complete lifestyle offering- with swimwear, running gear, yoga wear, winter apparel, golf apparel and more. They definitely have a broader offering of product and are hoping this will attract more customers.

With the new store, customers will now be able to come in and try on Athleta’s apparel, making it easier to find the perfect fit. Personally, I think it is easier to try clothes on in store instead of buying them online and then having to return them because the size or look is not quite right. In addition, when a customer enters a store and looks around to see how the clothing is displayed, put together and marketed, they might be inclined to try more items on and ultimately purchase them.  In addition, with their first physical store, perhaps Athleta can try establishing a connection with a customer before and after a purchase, much like Lululemon has done. Lululemon does this by offering yoga classes, creating community events and sponsoring athletes with its clothing. I think that if Athleta does a good job of promoting their product and is able to maintain a strong customer base, they will be as successful as Lululemon. If Athleta is able to do this, then they may prove to be a formidable competitive force in the marketplace.

For more information on the new store:

Athleta Website
Bloomberg Article