Saturday, June 25, 2011

BrandTang: 40 years later

I really haven't thought about Tang in the past 30 years, but someone has.

This report is from AdAge:

Tang became the most famous beverage in the galaxy more than 40 years ago when it rode along with astronauts in space. Now the powdered drink mix has reached a more earthly milestone.

Kraft Foods announced today that Tang has become its 12th billion-dollar brand, with global sales nearly doubling since 2006, thanks mostly to aggressive marketing in international markets such as Brazil, Argentina, Mexico and the Philippines. Tang joins an elite roster of billion-dollar brands at Kraft, including powerhouses such as Oreo, Trident, Milka, Oscar Mayer, Maxwell House and Cadbury chocolates.

Of course, in the beverage world, the billion-dollar club is not as elite. Coca-Cola alone boasts 15 of them, ranging from Coke and Sprite to Vitaminwater; and PepsiCo owns 10, including Pepsi-Cola, Gatorade and Sierra Mist.

But for Kraft, Tang's ascension validates the focus the food giant put on the brand overseas, including making it one of 10 "power brands" in developing markets. "With an entrepreneurial spirit, our Tang teams across the world connected virtually to harness our global powdered beverage technology and expertise," Sanjay Khosla, Kraft's president for developing markets, said in a statement.

The brand reached $1 billion sales in the year ended March 31, Kraft said. The brand in 2010 controlled a category-best 15.6% of the international powder concentrate market, edging out another Kraft brand called Clight, which is the international version of Crystal Light, according to Euromonitor International.

Tang initiatives include giving regional managers more freedom, while customizing flavors to local markets. Although orange is the top-selling variety, Kraft says it found success pushing flavors such as mango in the Philippines, soursop in Brazil, horchata in Mexico and pineapple in the Middle East. Such local flavors make up roughly 25% of Tang sales in developing markets.

In some countries Kraft learned that consumers wanted smaller packages, so the company introduced slimmer, more affordable sizes, such as two-liter packs sold in Mexico for below 50 cents. And the company spread the word with aggressive sampling programs. The brand's global ad agency of record is WPP's Ogilvy & Mather.

Kraft is "doing a decent job of taking a product that is sold in the U.S. and adapting it to local tastes and preferences to really drive growth and to drive further expansion of the brand in those newer markets," said Erin Lash, who covers Kraft for Morningstar. "They've been switching from more of a centrally managed [approach] and shifting to more of a local focus to really resonate with the consumers."

Stateside, Tang has gotten less attention -- and less glory -- since its high-flying days back in the 1960s, when it began rocketing into space. In 1965, Tang, then owned by General Foods, aired a TV ad within three days of the Gemini 4 splashdown. And in 1968 Tang sponsored ABC's network coverage of America's first manned flight around the moon, Apollo 8.

But the last time Kraft dedicated any measured media spending to Tang in the U.S. was in 2008, when it spent a paltry $129,700. Rather, Kraft's domestic drink focus has been on Crystal Light, which had $46 million in measured media last year, and Kool-Aid, which got 26.4 million. Meantime, Kraft plans to spend aggressively on its newest drink brand, Mio, a first-of-a kind liquid water enhancer launched in the U.S. earlier this year.

Still, Kraft signaled that it might return some of the spotlight to Tang. "Based on the tremendous success Tang is enjoying in other markets, particularly in Latin America, we're looking at what lessons we might be able to apply here in the U.S.," spokeswoman Lisa Gibbons told Ad Age in an email.

Even without any advertising support, Tang grew slightly in the U.S. to $14 million in sales in the year ending April 17, ranking it ninth in the fruit-drink-mix category, but well behind No. 1 ranked Kool-Aid, which had $129.5 million in sales, according to SymphonyIRI data, which does not include Walmart.

~ ~ ~
Contributing: Natalie Zmuda

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Tiny Screens

Optimizing for Mobile.

Ever hear that?

There are a couple ways to do it...

Marketers Need Mobile Sites -- But Make Them Truly Mobile
Consumers who use smartphones to shop or visit brand Web sites are time-constrained, attention-compromised, and trying to engage a brand on a tiny screen. And there are lots of them, so ignore them at your own risk.

Kari Wilson, product marketing manager, Google Mobile Ads, and Sebastien Chalmeton, vice president, mobile strategy, Phonevalley, raised those points recently at the OMMA Mobile conference in New York.

Chalmeton said that advertisers without mobile sites might as well be closed one day per week.

Wilson said 30% of people who shop for consumer electronics, 15% of finance seekers, and over 15% of insurance queries, are via mobile, but "we did a study where we looked at (the) top 1,000 advertisers and found 79% didn't have mobile optimized sites."

She said that's bad for business because 60% of consumers who have a bad mobile site experience will not go back to that site, 40% will go to a competitor's site, and 19% will have a negative perception of the brand.

Chalmeton cited five keys to creating mobilized sites. Keep the layout simple; prioritize content; use uniquely mobile features; design for thumbs not mice; and make it easy to convert consumers who have little time.

Keeping mobile sites simple "is the most critical thing you need to do when you design a mobile site," said Chalmeton, whose company has done mobile site optimization for companies like General Motors and LG.

"For Cadillac we tried to eliminate clutter as much as possible," he said. "You can view content at arms' length, and that's a rule of thumb." Also, he said, advertisers should make sure their mobile sites are focused on one piece of content at a time. "The consumer is on the go, so you can't do one-minute videos; 30 seconds is about right, because mobile sites are still slow."

Wilson said another simplification that aligns with behavior is making search easy and prominent: "For a lot of consumers, search is what they do with smartphones."

Chalmeton said one way to think about prioritizing content is to think of the three to five most important things for a mobile consumer and make those easy to find and do. Also, given the short attention span of the mobile user, he said that marketers should make mobile experiences transaction-based, not about browsing. And they should do things like using simple coding to make their mobile sites load as fast as possible, he added.

Also, Chalmeton continued, marketers need to think about what makes mobile unique, such as GPS, cameras, notepads and other utilities -- and that good mobile platforms drive consumers to retail and channel partners since the consumers are already likely to be out and about.

The final steps have to be smooth and simple, Chalmeton concluded, pointing to fairly easy mobile site features -- such as forms, click-to-call, and logins -- that can keep customers on track to purchase.

(Source: Marketing Daily, 06/07/11)

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The Truth about Excuses

from Seth Godin:

Excuses are easy to find (but worthless)

Even good excuses, really good ones, don't help very much.

Explanations, on the other hand, are both scarce and useful.

And accurate forecasts and insightful intuition are priceless.

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Friday, June 24, 2011

Friday Night Marketing News from Mediapost

Just Click & Read... I'll have 3 updates Saturday & 3 Sunday....

Packaged Goods
by Tanya Irwin
The video features Carlton, a scholarly talking cat, who is on a crusade to tell America how important the vagina is (or should be.) Likening the vagina to such natural wonders as Mount Kilimanjaro and the rings of Saturn, Carlton drives home, in an amusing way, the need for a shift in conversation, to move away from euphemisms and treating the vagina as a taboo topic. ...Read the whole story >>
Financial Services
by Aaron Baar
According to a study from Chadwick Martin Bailey and iModerate Research Technologies, more than half of smartphone and tablet owners use their devices for some form of mobile banking. At the same time, the 39% of people who plan to purchase one of the devices will use it for banking. ...Read the whole story >>
by Karl Greenberg
"Clearly, consumers are interested in having new technology in their vehicles, but automakers must ensure that the technology is ready for prime time," said J.D. Power analyst Dave Sargent, in a statement. "There is an understandable desire to bring these technologies to market quickly, but automakers must be careful to walk before they run." ...Read the whole story >>
by Sarah Mahoney
"They have increasingly large amounts of time to learn about things, and are passionate about hobbies. They have much more exposure to the world and have highly specified global tastes. They're more discerning, and much more likely to experiment. For marketers, this urban opportunity is happening right before their eyes." ...Read the whole story >>
by Karl Greenberg
If marketers at major brands are trying to honestly figure out how corporate citizenship can be part of business rather than a cost center for pure philanthropy (or, to borrow a cliché, how to "do well by doing good") a new study by Landor unveiled in Cannes this week should help them make the case to their boards. ...Read the whole story >>
by Karlene Lukovitz
"That's at least 35% -- and arguably 62% -- of deal buyers who represent new business," observes ForeSee president/CEO Larry Freed. Obviously, e-tailers will have to satisfy these consumers to a high level in order to convert them to longer-term customers, he adds. ...Read the whole story >>

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Newspaper Update

We were talking last Friday about this in my last sales meeting with the radio stations:

Local Dailies Can Charge for Online Content, But They Bring in Pennies

The newspaper industry has been suffering a long and painful decline, but the 1,390 U.S. local dailies hanging in there are dabbling in charging for online content. However, the revenue generated through subscription plans is not looking that impressive.

We commented a few months ago that Gannett might be on to something with the paid-content models on the websites of three of its local newspaper websites because they applied economic basics: high demand, low supply. Say your local daily has the most comprehensive (or perhaps the only) coverage of a university's athletic department -- diehard fans (alumni, parents) are likely willing to pay a fee.

A new study from the Missouri School of Journalism's Center for Advanced Social Research comprising 300 interviews with local dailies found that 46% of the newspapers surveyed with circulations of less than 25,000 charge for some online content, while 24% of newspapers with circulations above 25,000 do the same.

Of those that don't charge, 35% are drawing up paid-content plans and 50% are mulling online subscription options. Just 15% aren't considering charging for online content at all.

However, a third of the dailies with paid-content models believe the revenue from that source will contribute at most 20% of total digital revenue, with 10% expecting the subscription revenue to account for more. About 50% see only "a negligible contribution to the bottom line," the report says.

It gets worse: 85% of these local dailies said digital revenue accounts for less than 15% of their revenue; in the next three years, 60% expect it to be more than 15%.

So it seems paid-content models for regional publications can bring in revenue, but it's marginal at best -- and probably not enough to offset the massive decline in local print advertising.

(Source: Gavin Dunaway, Adotas, 06/03/11)

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Give and Take

from my email:

Daily Sales Tip: Know What You're Willing to Concede

Successful salespeople make it a point to know which concessions they're willing to make before the negotiation begins.

Sometimes concessions are an effective way to overcome an impasse, but only when salespeople:

-- ask for something in return (e.g., a long-term contract or minimum purchase level), and

-- gain a reasonable assurance that granting the concession will allow the sale to move forward.

Source: Tom Reilly, president and founder of Reilly Training

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Thursday, June 23, 2011

Thursday Night Marketing News from Mediapost

Click & read:

by Karl Greenberg
A source close to Attik points out that comedy is something of an advertising sub-specialty, and that agencies will typically subcontract to a species of director whose expertise is hijinks when they want SNL-type humor. Not so with Scion, for whom Attik creative director Simon Needham has helmed most all the automaker's ads, including these. ...Read the whole story >>
by Sarah Mahoney
"Only 15% of those over 40 would say, 'Yes, I want to be your organization's friend or follower,'" said Erin Read Ruddick, whose company conducted the research. "Fears about the "time sucking nature" of Facebook are bigger than we expected, as are privacy concerns." ...Read the whole story >>
by Karlene Lukovitz
The concept: Helping SoCo fans to plan and interact throughout their nights out by consolidating a variety of digital activities in one convenient, cross-platform area -- while building awareness of the new Lime product through the hub's features and design. ...Read the whole story >>
by Aaron Baar
"Carriers are closing the gap on brands with respect to consumer openness and receiving marketing alerts," Michael Linnert, North American General Manager for Upstream, tells Marketing Daily. "They interact with their customers regularly through new phone and plan purchases, customer support, billing, and other factors that make up the customer experience." ...Read the whole story >>
Packaged Goods
by Tanya Irwin
"Rock Your Skin" marks a new brand approach, says Kevin Harshaw, marketing director of personal care at Clearasil parent company, Reckitt Benckiser. The effort targets young adults via online and integrated experiences and leverages the "summer break" and "back to school" season as an opening for consumer communication. ...Read the whole story >>
by Karl Greenberg
"This is really a global effort, and we are excited how this will be interpreted by filmmakers in places like China and Russia. The fact is, the more we look at this brand globally, we see a lot of the same foundations; our customers have a lot more in common than you might think." ...Read the whole story >>

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New Ad Campaigns

from Amy at Mediapost:

Betty White for the AARP. Shaun White for Stride gum. Flo ventures outside Progressive's superstore. Let's launch!

VWVolkswagen Golf Canada created the first two ads in its "Drive Until..." campaign, and wants John Q. Public to create the third and conclude the series. After all, VW means "people's car" in German. Those interested can visit, a site that leads to Volkswagen Canada's Facebook page, where users can submit their commercial script, complete with cast, music and VW car to be featured. The first two ads follow a man as he takes two very important steps in his life. In "Courage," the man drives his Golf around the block until he's mentally ready to propose to his girlfriend. "Drive until you find the courage," closes the ad, seen here. "Time" shows our man driving his Golf and spending time with his three best friends the night before his wedding. "Drive until it's time" concludes the ad, as he parks in front of the church. Watch it here. So what's next? Bringing home baby? Sending a child off to college? Red Urban created the campaign.

FloProgressive launched "Meant to be Together," marking the first time that Flo has left her work grounds. Flo goes fishing, catches butterflies, rides an ATV and sits by a campfire with a handsome suitor. "We make a great pair," Flo says to her outdoorsy guy. She means Progressive and the great outdoors. Turns out, Flo never left the store and the prospective insurance buyer was daydreaming about a long-term future with the peppy spokeswoman outside work boundaries. See the ad here, created by Arnold Worldwide.

State Farm Falcon

State Farm launched three amusing TV ads using the tagline "Get to a Better State." A wife catches her husband discreetly talking on the phone at 3 a.m. in "State of Unrest." He's speaking to Jake, a State Farm rep. The wife grabs the phone asks Jake what he's wearing and tells her husband: "She sounds hideous." "Well, she's a guy, so..." responds her hubby. Watch it here. A man calls his former State Farm agent in "State of Regret." Jerry's car is up a pole and he's unable to get in touch with his new insurance provider, even though it only took 15 minutes to sign up. Cough, cough, Geico. See it here. In "State of Confusion," people are saving so much money by switching to State Farm that they're using the extra money on extravagant items, like a falcon, jumbo-sized gumball machine, tuba, Segway, Viking helmet and jukebox. Watch it here. DDB Chicago created the campaign.

In the Raw in your corner

In The Raw launched a trio of TV spots supporting its all-natural sweeteners, Sugar In The Raw and Stevia In The Raw. Voiced by actress Frances McDormand, the "It's Only Natural" spots cover personal relationships and the ideal sweetener-to-tea ratio. A waitress forgets the free bread basket and delivers a BLT sandwich without the bacon. That's nothing compared to refilling a woman's iced tea, throwing the sweetener-to-tea ratio off-balance. The woman remains calm and adds Stevia in the Raw to her drink and daydreams about the lousy tip she'll leave her waitress. See it here. A man is unsure whether he should buy Sugar In The Raw or Stevia In The Raw. He didn't write down what his wife requested and rather than potentially offend her, he'll pick up both to be on the safe side. Smart move. Watch it here. My favorite is "Breakup." A woman sits in her kitchen corner, eating newly baked brownies with a fork, straight from the baking pan. Her boyfriend of four years dumped her by email, so the chocolate goodies are well-needed comfort food. See it here. Mother New York created the campaign.


A day without Betty White is a day with less laughter. White's two latest TV spots for AARP show that despite her age, she still has a youthful, sometimes childlike personality. In "Car Wash," White stands outside her sprawling mansion, with hose in hand, watching a shirtless stud wash her car. She periodically wets the car, ensuring the stud will continue to dry it off. See it here. Betty makes a slew of "Funny Calls" in the next ad, even using some outdated phones to wreak havoc. Doesn't she know about caller ID? She orders pizza without its necessary ingredients, mimics whatever another caller says, and gets flirty with one person, asking, "What are you wearing?" Watch it here. GSD&M created the campaign.

Sony Project Shipwreck

Sony and Intel gave five Michigan high school students a nautical adventure with Project Shiphunt. Led by nautical archaeologist Dr. James Delgado and armed with Sony VAIO laptops with Intel 2nd Gen Core Processors, the students will search for sunken ships throughout Lake Huron's "Shipwreck Alley." The first film released, seen here, profiles the team and an overview of the challenge. A future video will report on their findings. I'm sure they will find at least one missing ship. What a tremendous learning experience for these kids. The campaign was created by 180LA and produced and directed by

Vancouver Tourism

Following the riots that ensued when the Boston Bruins defeated the Vancouver Canucks to win the Stanley Cup, Tourism Vancouver and DDB Canada launched a Web site to show that the actions of a few don't define the city. This is our Vancouver aggregates images, video and comments generated by those who love and care about Vancouver. Content is found on Facebook, Twitter, Flickr and YouTube and stored in one place. Looking to improve its image while the city continues its massive clean-up, the site encourages Canadians to contribute things they believe best describes the city.

Samsung Infuse

We already know it fooled people with its vibrant colors. Now, AT&T highlights the sharp colors of the Samsung Infuse 4G by tricking adorable animals into thinking the screen is something that it's not. The campaign is running online and on AT&T's Facebook page. There, users can choose a door and see what animal comes out to interact with the phone. My favorites were the adorable kitten playing with an interactive ball of yarn, a mouse petrified to grab a piece of cheese atop the phone, until the screen fades to black, removing the sight of a mouse trap, and a frog climbing the phone when it sees green leaves onscreen. Watch a demo here. BBDO New York created the campaign.

Stride Gum Getaway

The makers of Stride gum will go to extreme lengths to have consumers upgrade to Stride 2.0. Stride's CEO, a human billboard at a mall, accosts a consumer unwilling to upgrade his gum. The CEO hops on a skateboard and chases the young man throughout the mall, eventually catching him and throwing him atop a waiting van. After switching the gum, the CEO hops into the van, driven by snowboarder Shaun White. See the ad here, created by JWT New York.

Watercolor app

Random iPad App of the week: Auryn Ink launched an iPad app that simulates watercolor painting. It's an impressive app that makes watching paint dry fun. The app targets intermediate and high level artists, along with anyone who enjoys watercolor painting. Users can control the amount of water on the brush, which influences flow effects, along with the type of canvas texture to paint on. The app is also sensitive to gravity, so paint flows downward when the iPad is tilted. The app costs $3.99 in the App Store. Get your paint on.

Amy Corr is managing editor, online newsletters for MediaPost. She can be reached at

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From my email:

Daily Sales Tip: Try Not to Let It Bother You

There's no such thing as rejection. Somebody saying "no" is just like somebody saying "yes." "No" is just a word, like "yes" is a word, except we put all these connotations on certain words: "No" is bad and "yes" is wonderful. Here's the key - if I don't give "no" any power, then it doesn't stick to me. I can keep getting "no'd" and it doesn't matter. Eventually, the more I keep going the more "yeses" I will get.

Sometimes I get asked by salespeople if sales is something you're born with or something you can learn. That's a hard one to answer. I think it's unquestionable that some people are born with the skill to communicate more effectively than others - it's in their DNA. Can you teach someone how to sell? Yes, you can give them all the skills sets, but eventually they still have to do it.

In all these years that I've been selling, nothing has changed. I'm constantly looking at how I am doing it. What should I say? What should I not say? I can come out of a sale knowing I did all the right things and still not get an order, and still, I will feel great because they weren't ready to buy at that time.

There's no point in beating myself up, if I take it personally, or feel rejected, everything stops: I'll never get out of bed. That's why "no's" don't matter. Being told "drop dead and go away" doesn't mean anything; it's just their opinion, and has nothing to do with me or with you.

So if I do get fed up, I just make a choice: How long do I want to be fed up for? Answer: I only want to do it for seconds. I have got my life ahead of me and if I take it personally and get upset nothing is going to happen except I'm going to blame someone else, and then it's a spiral into the abyss - the downward elevator to despair doesn't make for sales.

So keep your chin up and spirits high -- set your sights on winning the sale and you will always succeed.

Source: Motivatioanal speaker Jeff Gee

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Wednesday, June 22, 2011

Wednesday Night Marketing News from Mediapost

Click & read to your kids?

by Aaron Baar
In April, Boost topped the list of pre-paid companies in a recent J.D. Powers' survey for customer satisfaction. Boost Vice President Andre Smith spoke with Marketing Daily about the company, its prospects and the industry as a whole. ...Read the whole story >>
by Karlene Lukovitz
Every one of the 148 food/beverage/consumer products companies analyzed (using publicly available information) showed sales growth in 2010, with 2.9% growth for top performers and 1.5% growth for the bottom quartile. Most sales growth came organically and from acquisitions, with the strongest organic growth coming from emerging markets in Latin America and Asia. ...Read the whole story >>
by Tanya Irwin
Sheraton has never launched a campaign with digital assets like "Meet You There," says Hoyt Harper, global brand leader for Sheraton Hotels & Resorts. The effort is aimed at reaching new conquests as well as re-engaging with former guests, he adds. ...Read the whole story >>
by Sarah Mahoney
Although 81% of marketers say the idea of category management is either very or extremely important, according to Kantar Retail's 2011 Category Leadership Benchmarking Study, only 72% of retailers agree, down from 78% two years ago. Mass stores and convenience retailers are even less likely to rate category management as important. ...Read the whole story >>
by Karl Greenberg
"Max and his son made their way homeward bound, when mischievous rain fell down, down down; safety was threatened by every roguish drip, they slipped and slid, they couldn't get a grip." The Michelin man appears at roadside throwing tires like Frisbees. ...Read the whole story >>
by Karl Greenberg
"For the average consumer looking to purchase a new vehicle, especially during these times of rising gas prices, they see more value in smaller vehicles with traditional gas engines -- some of which approach 40 mpg -- rather than hybrids or even electric vehicles," said Doug Scott, senior vice president, consulting, GfK Automotive. ...Read the whole story >>

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The Problem with Advertising

This morning I was reading about the new warnings that will be on cigarette packages and it triggered a problem I have seen in the advertising world.


Not just changing the channel or station when commercials come on, but mentally ignoring the ads.

Not all ads mind you, but we really only recall a few of the thousands we are exposed to daily.

There are numerous reasons why, which I'm not going to take the time to talk about now.

But we've had warnings on all kinds of things that are bad for us and yet there are certain segments of our population that do them anyway.

If the anti-smoking advertising campaigns worked, that I have been seeing for decades, we would not have smokers.

Mediapost shared this article this morning:

Top of the News
How Soon Before Consumers Burn Out On Grisly Labels?
Thom Forbes, Jun 22, 2011 07:42 AM
Even as the government yesterday unveiled jarringly grisly images that it will require cigarette makers to display on their packages, experts warned about the hula-hoop syndrome. The message may be effective in driving people to try to quit killing themselves in the short term but, over the long term, they could "get complacent about the omnipresent warnings," as Melissa Healy puts it in the Los Angeles Times.

As shocking as images of blackened lungs, men with holes in their throats or a mouthful of rotting teeth and cankerous lips may be, consumers will eventually become as inured to the message as they are to just about anything except the 1-800-Kars for Kids jingle. "Outside experts said the government would have to vary the messages to avoid what psychologists call 'wear out,' Healy reports.

But, for the nonce, "These labels are frank, honest and powerful depictions of the health risks of smoking," says Health and Human Services Secretary Kathleen Sebelius.

The new FDA labels can be viewed here. A Seattle Post-Intelligencer slide show includes some samples (Nos. 17-19) from Canada, Australia and Uruguay that are equally graphic, including the photograph of a wasted 42-year-old Canadian woman dying of lung cancer.

The nine images unveiled yesterday were culled from 36 candidates the FDA circulated for public comment starting last June. "The agency ruled out some far more disturbing images, including an unsparing photograph of a bald lung cancer victim hollowed out by her disease," Healy writes.

Consumers in countries around the world may be asking, "What's the big deal?," according to an AP roundup of global trends. "We are so far behind," says Michael Cummings, chair of the Roswell Park Cancer Institute's Department of Health Behavior. "We're a third world nation when it comes to educating the public on the risks of smoking."

Reports say about 40 other countries require cigarette packaging to carry prominent warnings on the dangers of smoking.

While pointing out that studies have found graphic images to be effective at deterring children -- "the tobacco industry's prime target when seeking new customers for its addictive product" -- the American Lung Association says it will work with the FDA to make sure the images are rotated "so that consumers don't become desensitized to their urgency and impact."

Some experts, such as Louisville, Ky.-area convenience store owner Myron Williams, say consumers are already blasé about the message. "Most people smoking already know the risk, so I don't see this slowing them down anytime soon," he tells WDRB News. Cigarettes make up half of Williams' revenue.

Some of the major tobacco companies have challenged the legality of the new labels in a lawsuit, among other things arguing that the warnings relegate the brand name to the bottom half of the cigarette package.

A spokesman for Richmond-based Altria Group, parent company of the nation's largest cigarette maker, Philip Morris USA, says the company is looking at the labels and has no comment, the AP reports. Altria is not a party in the federal lawsuit.

Pundits and the public have not, of course, greeted the labels with universal acclaim, though I was surprised to not have found more complaints about the "nanny" or "police" state from prominent commentators populating the Internet this morning. While most of the featured comments on Duff Wilson's story in the New York Times this morning applaud the initiative, one dad takes it personally: "I don't smoke, never have, and I find these photos highly offensive.... I see them every time I go into a store, they make me ill, they are gross, and it angers me that my young kids see them everyday as well. They cannot read, they just see govt. sponsored dead bodies."

Writes another: "Nobody is forcing car dealerships to put pictures of crash victims in the windows of their vehicles. You won't find graphic photos of obese people on potato chip bags, and alcohol bottles don't have Charlie Sheen's face on the label."

Begging the question, why not? But that's another story.

You can vote on which label you think is the most effective at the Huffington Post. (The current No. 1 is the rotting teeth.) Or, if you're still smoking, you can cast the most important secret ballot you may ever cast by calling the American Lung Association's Lung HelpLine at 1-800-548-8252 or by signing up for Freedom From Smoking Online.

Image from

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The Importance of Goals

from my email:

Daily Sales Tip: Setting Goals

Rainmakers, those in the top 10% of all sales performers, believe in the power of goals and action plans. Those who truly want to reach the elite status don't get there by accident -- they live by goals, and they are committed to doing what they need to do to achieve.

There are two important things that set apart sales people, sales managers, and leaders who live by their goals and those who don't.

First, people who have goals know where they want to go. Contrary to what you might read in other books about goal setting, you don't have to sort out your life's purpose in order to achieve success in sales.

All you need to do is set a target. It can be as simple as having an annual revenue goal, and having the answer to the question, "Do I really want to achieve this badly?"

Second, once you know where you want to go, commit to a goals routine. If you have already done so, bully for you! It'll help you achieve. In any case, take care to keep your goals routine simple, and to visit it frequently.

The simpler it is, the easier it is to stick with it. A simple roadmap can help you build and stick to your own goals routine. Below is one that is easy to follow in your journey to sales success:

-- Review your goals first thing in the morning every day. Say your big picture goal out loud, then review your action plan for the day. This should only take a few minutes. At the end of each day, review how the day went, and set goals and actions for the next day.

In the time you might take to drink a cup of coffee (if you down it as fast as I do), you will have accomplished this review.

-- On Friday, or during the weekend, review the week and set goals and actions for the next week.

Do this with a colleague who can be a "goals partner" so to speak. Your goals partner can be a peer, a mentor, a coach, or a friend, but it's someone you work with explicitly each week to make sure you're on top of your goals, staying committed and pushing yourself.

-- Once per month, meet with a small group of people you trust to review what you're doing, where you're headed, what you'll do in the next month, and get ideas for how you can achieve more and shake off any nagging hassles.

-- Once per quarter, review your progress toward your annual goal. During this meeting step back and ask yourself, "What do I absolutely positively need to get done over the next three months to achieve my annual goals?"

Set no more than three priorities for the next quarter that you'll direct all your passion, energy, and intensity toward so you can stay on track.

-- Once per year, set your targets for the next year. Make sure you ask yourself, "What do I need to do to get to my big picture goal?"

When you're done with your goals and annual plan, ask yourself, "If I get done what I'm about to do, will it help me get to my big-picture goal?" Make sure it does!

Source: Sales consultants Mike Schultz and John Doerr of the RAIN Group

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Tuesday, June 21, 2011

Tuesday Night Marketing News from Mediapost

Click & Read, (Or Read, Click & Read):

by Karl Greenberg
Microsoft and BBDO say the study's results apply Jungian archetypes to give each device a "personality." It also sheds light on similarities and differences among the 1,500 consumers in China, Russia, Saudi Arabia, UK and the U.S. who were involved in the study. ...Read the whole story >>
by Aaron Baar
According to a new study released by entertainment, media and technology research firm Interpret, women now comprise equal market representation among interested game players. The company's recent New Media Measure finds that female console game use has increased over the past two years, and not just for the family friendly Wii system. ...Read the whole story >>
by Tanya Irwin
Customer satisfaction results for five industries show improvement for dining and lodging, but a downturn for air travel with Delta Air Airlines at the bottom of the heap, according to the American Customer Satisfaction Index. ...Read the whole story >>
by Sarah Mahoney
John Burbank, president, Strategic Initiatives, Nielsen, tells Marketing Daily, "Consumers can now shop anywhere they might be, at any given moment. That's a big change from 10 years ago, when they had to be at their home computers." He adds that consumer acceptance of online grocery shopping is considerably higher in Europe. ...Read the whole story >>
by Karl Greenberg
"We feel the transformation of the website is an attention-grabber for site visitors, exhibiting some fun," Garth Ely, Goodyear brand marketing director tells Marketing Daily, "but still offering all of the information tire shoppers need in just a click away. Obviously, 'Cars 2' is destined to be a big commercial hit, and we want to show consumers that Goodyear is intimately involved." ...Read the whole story >>
by Karlene Lukovitz
The concept, based on make-believe "insurance" certificates (which come with coupons), builds off a core insight driving the larger campaign: Adults still love Kraft Macaroni & Cheese, but often feel that they have to enjoy it surreptitiously by sneaking bites while they're preparing or serving it to their kids. ...Read the whole story >>
by Joe Mandese
During Monday's Media Festival sessions, Diageo CMO Andy Fennell reminded attendees that despite all the rapid and rampant changes taking place with consumers and media technology, "the fundamentals of marketing still work." ...Read the whole story >>

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Everyone Wants Value

Just because you have a lot of money, doesn't mean you are foolish with it...

Retailers Respond as Value Mania Hits Even the Well-to-Do

They make more than $100,000 a year. They're recently back from a vacation to Aruba -- via freebie air miles. And they go shopping together for their groceries every week --at Walmart.

The Whited family of Marietta, Ga., never expected that Walmart would become their shopping anchor. Or that value would become their shopping mantra. But they have little choice.

While their total income far exceeds what most American families make, in a post-recession nation still adapting to higher food and gasoline prices and a still-shaky employment picture, their ultra-value-conscious shopping habits square perfectly with millions of other American families who can't let go of the tough lessons learned from the Great Recession. America's largest and most familiar retailers -- from Walmart to Target to 7-Eleven -- have been forced to bend to this new reality.

"We used to shop wherever we wanted and throw whatever we wanted into the basket," says Jamie Whited, who is a mother of two young boys and vice president of client services at a software marketing company. "Now we're very conscious of where we shop and what we buy there."

But like a growing number of Americans, the Whiteds don't measure value only by price. They examine how much is actually in a container. They factor in family preferences. And they still demand the kind of quality they used to get in pricier products. This new American shopper is changing the way retailers market, merchandise and maneuver.

"It's a new game, with America's retailers and manufacturers trying to satisfy consumers on multiple levels," says James Russo, vice president of global consumer insights at Nielsen. "There's a fundamental shift in consumer behavior, and retailers have had to adapt."

Nearly 45% of consumers say they have become "more practical and realistic in purchases," according to a May consumer survey by BIGresearch. That's up from 43% May 2010 and up from 37% five years ago.

Few things are more practical than the use of coupons. Before the recession, 22% of households reported using them. During the recession, the figure ballooned to 35%. But now, even with the recession supposedly in the rearview mirror, an even higher 37% of consumers say they use them, Nielsen reports.

Nor is it just lower- or middle-income consumers who clip coupons, but higher-income shoppers, too, Russo says. "The stigma is gone."

Before Whited goes shopping, she and her 6-year-old son, Austin, clip coupons. When they snatch something from the shelf, Austin's typically the first to ask if they have a coupon for it. Besides coupons, Whited recently started to take along a calculator that she uses to make sure they don't go over budget.

About a year ago, they switched from grocery shopping at Publix to Walmart. More recently, they even switched which Walmart store they shop at because they discovered that one slightly farther away typically offers better deals.

It's not as if they have to make these changes. Whited and her husband, Michael, both kept their jobs during the recession. But Michael, who is a call center manager, hasn't had a raise in two years. And while Jamie recently got a small raise, it's less than $50 per paycheck.

"We were sitting there at the end of the month with no money left over," she says. "We couldn't figure out why."

Walmart brings back the basics
Duncan MacNaughton, chief merchandizing officer at Walmart, says the chain is totally plugged into the economic squeeze affecting the Whiteds and millions of other American families. "Our customer continues to be under significant pressure," he says. "Our job as a merchant is to delay and mitigate that pressure as much as possible."

That's one reason the chain has refocused -- like a laser -- on value. Walmart recently pulled away from trying to be fashionable. It nixed eye-pleasing wider aisles while cramming bargains galore back into the store by adding 8,500 items -- nearly 11% more merchandise, MacNaughton says.

Walmart brought back everything from cut fabrics to camping equipment to guns. "Our customers are telling us they want basics," says MacNaughton.

But even with the basics, they demand value -- and decent quality. In November, the Whiteds decided to start economizing by substituting store-brand and value products for name brands. Now, instead of paying up to $4.99 for a bottle of Pantene Pro V shampoo, they're buying Suave Professional for $1.99. "That's a significant difference for us," Whited says.

And earlier this year, Michael Whited stopped buying the Kellogg's Frosted Mini-Wheats that he loves and substituted a value brand sold at Walmart: Malt-O-Meal's Frosted Mini Spooners, which provides nearly twice as much cereal for about the same price.

"We definitely prefer quality," says Jamie Whited. "But if we can get quality at a cheaper price, we'll go for that."

Walmart has plenty of company among retailers hammering the value message. But one is a surprise: 7-Eleven.

Convenience chain gets value message
The chain most folks go to for convenience is starting to tout value.

In 1998, 7-Eleven created the 7-Select store brand. That line, which started with a handful of products, now tops 300 -- with more coming, says Jesus Delgado, 7-Eleven's senior vice president of merchandising.

"Since the recession, consumers have been asking us for more value, and we've had to respond," he says.

For example, a 2½-ounce bag of Lay's potato chips sells for 99 cents to $1.29 at 7-Eleven stores. But the chain's 7-Select brand in a 2½-ounce bag consistently sells for 89 cents.

Nor is 7-Eleven limiting its value play to its own brands.

John Lindstrom knows firsthand. The 22-year-old senior at Purdue University is spending the summer in his hometown of Dallas. After shooting hoops in the heat with some buddies, he recently stopped by a 7-Eleven near Southern Methodist University.

He headed straight for the display that offered two 20-ounce Gatorades for $2. "It was a no-brainer," he says. "One bottle usually goes for $1.79."

These days, he says, he even searches out value at 7-Eleven.

"The hangover from the recession forces people like me to look for values in places they previously didn't," he says.

Value sits at the top of his shopping list. While at college, he buys groceries only at Walmart and mostly sticks to generic and store-brand products.

"I stay away from places that don't have deals," he says.

Retailers all recognize the new mindset. Here's how four others are responding:

• Target. Although rival Walmart has long worn the value crown, Target is picking away at that by rolling out value brands for food and household products.

Its Market Pantry store-brand food line -- with prices 10% to 30% off national brands -- has ballooned to 1,800 items since it began in 2001. Over the past year alone, it's added more than 100 products, says Annette Miller, vice president of grocery at Target. The Market Pantry line's strongest growth has been since the recession, she says.

More recently, in 2009, Target created the Up & Up line of home products, such as paper products and health and beauty aids. That line, which offers savings up to 30% over national brands, already has more than 900 items, she says.

• Domino's. Just how low can the price of a large pizza go?

Domino's is pushing the envelope. It's busting through the now-familiar $10 pizza deals with a Monday through Wednesday offering of $7.99 for carryout pizzas. It's the first carryout promo the chain's ever offered. And it includes up to three toppings -- which adds serious luster to the value aura.

"People had enough of a shock in 2008 that they're being smarter about how they spend money in 2011," says J. Patrick Doyle, CEO at Domino's.

Some families buy two and toss one in the fridge for the next day, he says. "Consumers are absolutely as focused on value today as they were during the depths of the recession," he says.

• Jos. A. Bank Clothiers. Nothing brings customers into the men's clothing chain faster than promotions on suits.

Last Thursday, Jos. A. Bank had a doozy. For the first time in its 106-year history, the 500-store chain not only put its entire stock of suits on sale at half price, but also threw in a free suit with each one purchased. In other words, for $275, folks walked off with two suits.

Psychologically, says Jerry DeBoer, senior vice president of marketing, the bragging rights have serious heft.

"You're not just bragging about a cup of coffee that you got cheaper," he says. "You're bragging that you saved hundreds of dollars on a suit."

• Seattle's Best. Then, again, maybe there are bragging rights for a value-based cup of coffee.

That's the guiding light at Seattle's Best Coffee, the value brand owned by Starbucks that is growing at a double-digit pace. A bag of Seattle's Best coffee at the grocery store typically costs as much as $2 less than its big sister Starbucks brand.

The brand's entire strategy is quality for the masses. Eighteen months ago it was sold in just 3,000 locations, but the brand is now sold in upwards of 50,000 locations, including Burger King, Subway and AMC Theaters.

"People are not going to settle and choke down a bad cup of coffee because it's cheaper," says Michelle Gass, president at Seattle's Best. "The value of coffee isn't just in its price. A cup of coffee can be the best -- or worst -- part of your day."

(Source: USA Today, 06/10/11)

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Oops, Out of Time

Don't let this happen:

Daily Sales Tip: Allow Enough Time for a Decision

Have you ever had a key decision-maker leave in the middle of your presentation because he or she was out of time? You aren't holding the attention of a prospect who is looking at the clock!

At the beginning of the call, ask how much time the prospect has set aside. Then adjust your presentation to take no more than 60 percent of the allotted time.

Why only 60 percent? Because your prospect's decision to act typically occurs at the end of a meeting, so you want to allow enough time to resolve any remaining issues and reach an agreement.

Source: Sales trainer/author Kevin Davis

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Monday, June 20, 2011

Monday Night Marketing News from Mediapost

Click & read:

by Karlene Lukovitz
On average, these health-conscious consumers patronize one or more of the leading chains (McDonald's, Subway, Burger King and Wendy's) nearly four times each month. "Health" is not their only criterion for choosing menu items -- in fact, value or taste more often drives their fast-food menu choices. ...Read the whole story >>
by Karl Greenberg
Speaking at the monthly gathering of the International Motor Press Association on Friday, George Magliano, principal auto economist, Americas, for IHS' Global Insight research division, predicted: "We will get jobs back, and auto prices and profits are there even if volume isn't. We will see more small cars, better prices for small cars." ...Read the whole story >>
by Tanya Irwin
In honor of the Dallas-based airline's 40th birthday, the group will complete 40 coast-to-coast projects with the help of Southwest employees. Sony Corp., The Coca-Cola Co. and American Eagle Outfitters are contributing sponsors of the tour. ...Read the whole story >>
by Sarah Mahoney
Bargain hunters, who discovered the dollar-store format in droves during the recession, haven't lost their taste for the low prices and convenience this format offers: Dollar General says affluent shoppers continue to be its fastest-growing customer segment. ...Read the whole story >>
by Karl Greenberg
The new program, which integrates a virtual Ford showroom with a console game, also makes the Dearborn, Mich.-based automaker the first company to launch a branded space within the North American version of PlayStation Home, a free platform for PlayStation 3. ...Read the whole story >>

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