Category Archives: Brand Awareness

Mercedes and their Smart Cars, or the B-list.

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A while back, we had an in-class discussion about whether Mercedes Benz was tarnishing its brand image by releasing a lower end model. My group member , Alice, whom I recently found out drives the same car as me (great taste!), seems to share the same opinion as I do, on the Benz matter as well. To quote her post,

“It’s the fact that Mercedes is now everywhere on the road that really turns me off.”

Couldn’t agree more. With the amount of Mercedes’ out on the streets now, it feels like they’re beginning to decline in their product life cycle. They’re starting to spit out anything they can (there’s now 14 different classes), and it’s getting repetitive. I mean, it’s not like they’re selling model after model of SLR McLarens. I’ve only seen 2 SLR’s over the past few years, and I see about 2 B-classes every 10 minutes driving in Vancouver and Richmond. I don’t find it prestigious nor perceive it to have a high value when I see it everywhere, every time. Nothing new.

Mercedes prides itself on luxury, and new technology. Neither of which I see any more. Unless I look at this:

but it’s not a Benz.  It’s the Hyundai Genesis, base cost of $40,000, is just $10,000 more than the B-class. The highest end of Hyundai vs. the Lowest end of Mercedes, A sports car vs. an “all around car”.

It’s just a matter of time that Hyundai will increase it’s perceived value, as long as it sticks true to its brand name and image – “Affordable New Cars”.

Like we’ve learned from the beginning, “your brand comes from the promises you keep”.

Mercedes may have then proceeded with “promises are meant to be broken”. Bold. Very bold, but not that smart. So much for Smart Cars..

Foursquare for free food?

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Don’t get too excited yet, unless you’re big on dog food.

But first, what is Foursquare?

Foursquare is a popular website that allows users to “check in” at places they are and earn points to unlock badges. The application has platforms on smartphones, check ins through texts, and real-time updates on Facebook, Twitter, etc.

TechCrunch has an article that talks about the benefits towards businesses that engage their customers with Foursquare. Companies offer free drinks for those that check in a certain number of times or reach a certain ranking (ex. “Mayor of ___”). A great pull promotion strategy for many restaurant – type businesses.

However, most of us only recognize Foursquare as a medium to other companies, and have had little if any actual reward from Foursquare itself.

An article on AdFreak sheds light on a cross promotion between Foursquare and GranataPet (a German pet food company). In short, GranataPet has set up billboards that urge users to check in on Foursquare, which then triggers for dog food to be dished out for your four legged friend to enjoy.

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As GranataPet themselves put in their video, they want to catch the attention of their “target group” while also giving the pets something to enjoy. Not only that, but the interactive billboard also attacks all steps of the AIDA model. The large colourful billboard attracts its customers/target group, then they are interested to check in on Foursquare to see what will happen. Their desire/action to do so thus lets their dog have a free sample. The owners watch as their dogs are enjoying the treat and might go straight to a shop to buy the food that they seem to like so much!

Looks like GranataPet has successfully leashed their customers!

The battle of the sodas.

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I was reading Marketing Mag again, and another article caught my eye.

Coke vs. Pepsi.

We’ve always known the two soft drink powerhouses to be the first and second, but just recently, a change in the the US market has put both Coke, and now Diet Coke ahead of Pepsi.

AdAge, another of my favourite blogs also had a similar article.

Both Marketing Mag and AdAge questioned whether it was a smart move by Pepsi to suddenly drop from the loop of Super Bowl commercials this year. Instead, they chose to give $20 billion in grants to consumers as opposed to spending it on celebrity endorsements in the new Refresh Project. I personally had an encounter with the project since a friend of mine was working the promotion. In short, students were asked “what do you care about?” and then had the opportunity to take a picture, proudly holding their idea written on a whiteboard in front of a select background of their choice.

I must be perfectly honest, this push promotion strategy seemed to work at the time, and I was intrigued with the concept behind the project. But since the picture, I have forgotten about the project until now (that was in Oct.) and the picture is probably buried under some marketing notes in my room. In fact, when I think Pepsi, I think about this commercial:

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and not the project.

So perhaps a funny commercial with a well-known celebrity is a lot more long lasting? Especially since only a select few will have their Refresh ideas granted, as opposed to using a celebrity in a pull promotion.

Coke, the long leader seems to do this well. With a well-known product placement in popular reality singing competition – American Idol and its long-time sponsorship of the Olympics since 1928!

Roll out the change for roll up the rim!

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I was driving home from lunch today and feeling a bit tired, I decided to grab a coffee on the way home since I still had an afternoon class. And then the little voice in my head kicked in and  I thought maybe I’d just save the extra drive (don’t even get me started on the gas prices these days) and make myself a coffee at home, or even better, hope that I still have an energy drink left in the fridge. And then it hit me…

http://www.marketingmag.ca/wp-content/uploads/2011/02/timhortons_1102.jpg

Rrroll up the rim.

Marketing Magazine reveals that Tim Horton’s has been keeping the success of the famous promotion on the down low. The main purpose of the promotion is to reward the loyal customers. Although redemption rates are said to be high, I must say I have been unsuccessful in winning anything so far: 0-1.

However, what attracts customers are the prizes. Like the article mentions, Napoleon, this year’s barbeque donor, admits that the brand recognition and brand awareness they are getting is huge. Their name is now plastered on who knows how many cups, and windows of Tim Horton’s all around the world-a lot of exposure for an Ontario based company. I can tell Napoleon that their partnership was well worth it. I will admit that I have never heard of the brand until I eagerly read my large double-double to see what kind of prizes I would be winning, and although I didn’t expect to win one of the bigger prizes in just one try (my Facebook updates tell me I’m about 20 or so cups behind winning even a coffee/donut), I now remember Napoleon, and I remember barbeques.

Toyota also comments on how the promotion allows them to better their perceived value.

Tim Horton’s and their partners:

http://rocketlounge.files.wordpress.com/2009/03/photo-5.jpg

myself:

http://4.bp.blogspot.com/-Ux7VVWXYtbE/TW2enReLmRI/AAAAAAAAAXY/30DxkKdJwhw/s1600/tim%2Bhortons%2Broll%2Bup%2Bthe%2Brim.jpg

First The Force, now The Drive.

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Volkswagen’s super bowl ad was it’s first display of the company’s attempt to penetrate the US market. Jim Henry of BNET reports that Volkswagen is looking to spend $4 billion dollars in the US market to push the company’s sales objective up to 1 million sales. However, they can’t just stop in the US.

Volkswagen Norway took this into their hands, literally. AdFreak features the new interactive print-ad that VW Norway has created. I’ll let the video explain itself:

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One comment specifically caught my eye,

“thus creating a successful ad (viral) which is seen by more people regardless of those who actually see and experience the ad physically”

Although the cars may not be out on the market yet, by featuring them in such memorable ads, they are trying to cover the five components of brand equity: brand awareness, perceived value, brand loyalty, brand associations, and symbols/trademarks/patents. They know that there is no trial-ability in the products yet, however, the main purpose of such ads is to get potential consumers to remember the name.

They want consumers to be aware of the Volkswagen brand and what it has to offer. For example, with the Darth Vader ad, they wanted for customers to value that Volkswagen can not only meet the needs of a businessman, but for his son as well. In terms of the virtual ad, both existing and potential Volkswagen customers are able to test out the new features that the car has to offer, and as well, although it may not be legally implicated, they will now be remembered as the first brand that created a “virtual drive” for their customers through a simple iPhone app.

Perhaps next time we are looking for a vehicle upgrade, The Force will bring us right into the Volksagen dealership.

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