brandchannel.com

Around The Web: Giving Back

Wed, 10 Mar 2010 18:33:00 EST

After customers complained, Wal-Mart puts more products on its shelves. [Reuters]

Furriers are experiencing a profit boost thanks to recent fashion shows. [NY Times]

Royal Dutch Shell has concluded gasoline sales with Iran. [WSJ]

American Eagle brand Martin + Osa will dissolve before the summer. [WWD]

Chevrolet Surfaces At SXSW For Push Into Social Media

Wed, 10 Mar 2010 16:57:00 EST

There were a few good reasons why Chevrolet and General Motors’ other surviving brands admittedly came late to the social-media table. There was that bankruptcy thing last year, and the worst sales environment in decades. And when GM first began sniffing around online networks a few years ago, it began at the corporate level.

But now Chevrolet is leading GM into a determined new surge in social media, and the brand’s coming-out party is going to be its heavy participation in South by Southwest, one of the nation’s largest and most influential interactive conferences. Chevy will be asking SXSW attendees in Austin, Texas, to help it evaluate three emerging applications.[more]

“Now things are getting better [for GM] so it’s time to become proactive” in the space, Christopher Barger, GM’s director of social media, told brandchannel. “We’ve had a strong presence as GM in online networks, but now it’s time to really build up our brand presences more than our corporate presence."

So Chevrolet will be asking the social-media aficionados at SXSW to evaluate a new location-based social-networking application that it developed with Gowala. The brand will use Quick Response codes to introduce attendees to the key features of vehicles such as the Volt and Cruze, and will be beta testing an application called Chevrolet iReaveal which will “unlock” three-dimensional models of its vehicles.

“The practitioners who come to this show know the technologies better than we do, so it’s a great opportunity to learn,” Barger said.

"Married On MySpace" Brings Brands And Couples Together

Wed, 10 Mar 2010 16:01:00 EST

As social-networking site MySpace premieres the second season of its viral “Married on MySpace” series, brands have jumped at the sponsorship opportunities. The show's first season, geared toward young couples as well as reality show junkies, successfully generated more traffic for the site and MySpace wants a repeat performance.

“Married on MySpace” will follow one chosen couple (who met through the website, obviously) down the aisle, but not until site members have voted on all that the nuptials entail. As the number of reality shows increases and the space becomes cluttered, attention spans tend to decrease. Yet MySpace hopes that the road to wedded bliss, with all of its twists and turns, will keep people watching. [more]

Advertisers have complemented each element of the wedding plans, including Hewlett-Packard, standing in as the event photographer. With consumers forgoing traditional scrapbooks for online photo albums, director of business development Lori Lenz, supported the pairing: “Our printers are about key life events, like marriage, having babies, vacations. The MySpace audience is very appealing to us. They store memories differently, so this is a really great way to show the relevancy of printing photos and images.” One of those life-enhancing printers will be given to the winning couple.

Similar to last season, wedding magazine The Knot will host themed videos on the site and is keeping its readers updated on the project via its monthly publication. Viewers can also expect a wedding registry challenge to be repeated at JC Penney, a department store with a wide range of products perfect for budding families.

Getting married can be a stressful process, but MySpace has turned it into a source of entertainment with a branded twist. Whether the union or the website survives is another story.

American Eagle Reports Higher Earnings But Discontinues Sub-Brand

Wed, 10 Mar 2010 15:54:00 EST

Fashion retailers that know how to read the market can survive, and even thrive, in tough economic times. The latest news from American Eagle Outfitters proves this point. The company announced this week that its fourth-quarter earnings were up from $33 million a year ago to $59 million this year. Sales for the quarter were $972 million this year versus $906 million for the fourth quarter last year.

At the same time, American Eagle announced yesterday that it is closing down its Martin + Osa brand, a chain of 28 stores, and an online store. The four-year-old brand just wasn't producing, so American Eagle said it would focus on its core brands – AE, aerie, and 77Kids – all of which have "a greater potential of creating long-term shareholder value," according to CEO Jim O'Donnell.[more]

Martin + Osa was named after early 20th Century adventurers Martin and Osa Johnson of Kansas. Denims, women's, and men's clothing were marketed under the brand, but there did not appear to be anything that differentiated it from other retailers.

Clearly, American Eagle decided to cut its losses rather than invest additional dollars in Martin + Osa. While it's always a difficult decision to abandon a floundering brand, it's likely that America Eagle made the right move in the long run.

Someone Please Save Chuck E. Cheese's

Wed, 10 Mar 2010 14:45:00 EST

Generally, a strong, popular brand can weather a bad mention in the press. Even a second bit of bad press should be no big deal. However, three, four, or five are cause for alarm. And family dining and entertainment establishment Chuck E. Cheese's should be alarmed.

The Chuck E. Cheese's brand name has been turning up in the news with rather disturbing frequency, and each report evokes more of images "jail time" rather than "fun time." Here is a list of some of the reports from the last few months:[more]

"One day, three police incidents at Susquehanna Township Chuck E. Cheese's restaurant"
"Brawl At Memphis Chuck E. Cheese"
"Two Crooks Target Mom At Chuck E. Cheese's""
"Fight breaks out at St. Louis Chuck E. Cheese's"
"Chuck E. Cheese Riot In Tennessee Leaves Several People Facing Charges"
"Customers brawl at Toledo Chuck E Cheese"
"Brawl breaks out at Chuck E Cheese in Flint Township"
"Testimony Begins in Chuck E. Cheese Slaying"
"Three Arrested After Greenville Chuck E. Cheese Fight"

And then on Monday: "Robber hits OP's Chuck E. Cheese"

These incidents have become common enough that hyper-popular celebrity blogger Perez Hilton has taken notice, obsessively re-blogging each new report, with scathing commentary.

Clearly, no single incident of this nature would damage the brand that claims as its tagline "Where a kid can be a kid." However, if it continues unabated, it could be death by 1,000 cuts. What's more, the brand seems to be dragging its feet to address the situation. So far, the only action the brand has taken is to post "rules" in its 530-plus locations; and those "rules" are a little less than thoughtful or even practical: "No gang-style apparel, including but not limited to hats, shirts, buckles, bandanas, towels ... No gang-type conduct or behavior, including verbal slogans, greetings, hand signs or intimidation. No weapons or tools or any sort whatsoever; including knives, chains, screwdrivers, glass cutters." (Bolding, ours.)

These incidents are not exactly new for the brand. Two years ago, The Washington Post asked what it was about the chain that caused such a commotion: "Fights among guests are an issue for all restaurants, but security experts say they pose a particular problem for Chuck E. Cheese's... Law-enforcement officials say alcohol, loud noise, thick crowds and the high emotions of children's birthday parties make the restaurants more prone to disputes than other family entertainment venues."

Despite all of the reports, and the apparent inability to stem its woes, the brand's stock has traded higher and has been rated a "buy" by many experts. However, If Chuck E. Cheese's wants to maintain that standing, it might want to begin doing something to arrest its sinking image.

Disney Halts Successful Volunteer Program

Wed, 10 Mar 2010 13:19:00 EST

For those of you who missed last year's promotion offering a free Disney theme park ticket on your birthday, the recent Disney "Give a Day, Get a Disney Day" promotion provided another opportunity to obtain a one-day gratis ticket to the park not only for yourself, but for friends and family willing to volunteer for a day.

If you never heard about it and want to join in, well, you’re too late. Just ten weeks after it’s unveiling, the Walt Disney Co. ended the promotion on Tuesday after reaching its goal of 1 million volunteers.[more]

It appears the opportunity to visit Disney for free brought out the compassionate side of people. In Rochester, NY, the Susan B. Anthony House had 90 volunteer requests in January because of the program. It normally gets 5. And Heritage Christian Services saw a 90 percent increase in volunteers in the area.

For Disney, giving away free tickets worth approximately $79 each is a winning proposition, at least for now. With a flat first quarter 2010 profit, the company is still relying on the discounting of hotel rooms to lure people to their parks. Attendance was down at Walt Disney World and Disneyland Paris. People are also spending less on food and merchandise, the company said. Per capita guest spending at Disney World was down 6 percent domestically for 2009, even with the birthday promotion.

Yet, the success of the promotion bodes well for Disney's brand, as it continues to remain relevant to consumers, and this level of connection will only translate into greater ROI as the economy rebounds.

Madonna's Star Still Shines With Exclusive Macy's Deal

Wed, 10 Mar 2010 12:01:00 EST

Sure, Lady Gaga may be the latest groundbreaking and outrageous performer to catch the media's attention, but don't count out the original "material girl" just yet. Madonna has been front-and-center recently, and her aura is anything but dim. She's currently starring on ABC's new TV show, "The Marriage Ref," and she caused her usual buzz at Sunday's Oscars when she appeared with 26-year-old boy toy model Adam Senn.

Now the iconic performer has struck a deal with Macy's to launch the "Material Girl" collection, inspired and designed with Madonna and her daughter Lourdes. The "fast-fashion" collection will target juniors and hit the market in August, just in time for the back-to-school season.[more]

Macy's will be the exclusive retailer of "Material Girl," marketing the collection through 200 stores and online. It's the first deal for Madonna in her joint venture with Iconix Brand Group. According to Neil Cole, CEO of Iconix, the "Material Girl" collection is the just one of a series of new Madonna brands coming from the partnership. Iconix Brand Group owns, licenses, and markets a number of consumer brands including Bongo, Joe Boxer, London Fog, Mossimo, and Ocean Pacific.

Despite her rise to fame in the 1980s, Madonna is one diva who has managed to keep her brand image alive through a fine balance of controversy and commercialism.

Red Bull's "Art Of Can" Exhibit Has Energy

Wed, 10 Mar 2010 11:28:00 EST

Once upon a time there was just Red Bull. Today, however, the brand finds itself fighting to stay alive in one of the most viscously competitive consumer markets around. Ironically, it's a market the brand practically created.

To stay ahead, the brand employs all manner of brand-building measures, some conventional, some not. The brand runs standard 30-second TV commercials about the drink "giving you wings." It also underwrites F1 racecars and sponsors star athletes like Olympic gold medalists Lindsey Vonn and Shaun "Flying Tomato" White. The brand's less conventional sports sponsorships include airplane races and "soapbox derbies." But one Red Bull promotion is wildly unique. [more]

On March 4, Red Bull's "Art of Can" exhibit opened on Miami's tony South Beach. The show consists of 47 art pieces inspired by, and made from, Red Bull cans. The striking pieces include a Medussa head, a Hermes foot and a "Fab-redbull-ge" egg, among others. The event also incorporates couture, featuring designs by former contestants from the popular reality show Project Runway. The exhibit runs through March 14 and then again in Dallas, TX, in July.

Red Bull has been hosting the "Art of Can" exhibits in the US since 2005 (and claims it has done some kind of "Art of Can" event in Europe since 1997). While the brand is unlikely to become a consumer art icon on par with Warhol's Campbell's soup can, the effort is admirable, and effective. By incorporating an art and fashion angle to its otherwise extreme sports personality, Red Bull demonstrates the truly iconoclastic, creative nature of the brand; and in the aspirational youthful energy drink market, that kind of message has wings.

Does social media have value?

Wed, 10 Mar 2010 11:27:00 EST

Assessing the value of social media platforms.

The First iPad Commercial: Success Or Failure?

Wed, 10 Mar 2010 10:35:00 EST

If you tuned into the 82nd Annual Academy Awards this past weekend, besides seeing Alec and Steve, Sandra and Jeff, and James and Kathryn, you also saw Apple’s first commercial for the iPad. It’s very possible Apple fanboys were more excited for the ad than many award-winners were for their respective Oscars. And now that we've had a few days for the commercial to settle in, it's time to gauge its effectiveness.

At first glance, the commercial appeared flawless. It was a classic Apple ad that perfectly illustrated the exciting and sexy features of their much-hyped, state-of-the-art product. However, beneath the spectacle of the actual device was the curious reality that the iPad was sitting on a person’s lap the entire time. Yes, we all saw how amazing the various functions were – but isn’t the iPad supposed to be a sleek, portable device? If that’s the case, the iPad in the commercial came across as a little, well... big.[more]

Surely, Apple is trying to market the iPad as a device one could take on the subway, the bus, or use while sitting at a crowded bar – so why are they making it look like a laptop? While the iPad is supposedly poised to steal the eReader market, the commercial only fleetingly showcased its eReader function. Regardless of the on-going iPad vs. Kindle debate, Amazon appears to be content with its product and its singular purpose.

"We think we built a nice – very nice purpose book – purpose device,” said Amazon CFO, Tom Szkutak, who further described that purpose as being “built for reading.”

Amazon Kindle and Sony eReader could leverage the laptop versus portable device debate to their advantage. An easy marketing angle for either Amazon or Sony could be, “Buy the iPad if you want a computer – but stick with us if you want a device you can read with one hand, and hold a cup of coffee in the other.”

Headline Roundup: Pump It Up

Wed, 10 Mar 2010 07:08:00 EST

Disney's 'Rapunzel' will see a tough new makeover for male viewers. [LA Times]

Cutting back on discounts gave J.Crew an unexpected boost in sales. [WSJ]

Bank of America has put an end to overdraft fees on debit card purchases. [NY Times]

Twiggy, known for her modeling past, is designing a collection for HSN. [WWD]

Chile's recent earthquake negatively effected its wine industry. [Businessweek]

Cynthia Rowley has extended her clothing line to include bridesmaid dresses. [Vows][more]

Cisco launched a high-speed web program that shortens download time. [CNN Money]

Amazon pacified comic book fans with gift certificates after a pricing error. [TechCrunch]

South Africa is stocking up on condoms to prepare for the FIFA World Cup. [Guardian]

Viacom may change its decision to pull 'The Daily Show' from Hulu. [Business Insider]

Foot Locker built a new brand strategy to fulfill past business goals. [AP]

Lexus' new ads focus on the automaker's hybrid history and its models. [Brandweek]

Rimmel breaks out of its British box with two new brand ambassadors. [Fashionista]

CBS has already sold out of its online March Madness ad positions. [Adweek]

The Ultimate Marketing Alliance -- Per E �sberg

Wed, 10 Mar 2010 00:00:00 EST

The focus of marketing is often to attract new customers but equal focus must be put on past and present customers, in order to win acceptance of a line extension or understanding why a former customer abandoned your brand. Understanding and keeping a loyal customer is worth more money than a one-time purchase by a consumer that wants to try the new flavor of the month. Energy must therefore be put into understanding this consumer group better.

Around The Web: Lowered Expectations

Tue, 9 Mar 2010 17:02:00 EST

Jones Soda drops its asking price in order to be bought by Reed's. [CNN Money]

Facebook is set to experiment with a Foursquare-esque feature. [NY Times]

Razor brand Gilette will re-launch its men's skincare collection. [WWD]

Packaged Facts says that people spend more on pets during a recession. [BrandFreak]

Reused Product Sales Help eBay Go Green

Tue, 9 Mar 2010 16:33:00 EST

Online marketplace juggernaut eBay is launching a green shopping site and ad campaign. For the first 250,000 users who pledge to reuse on eBay, the company will preserve one acre of rainforest.

The mantra of the campaign's website professes that purchasing used is as beneficial to the environment – and as helpful – as recycling or conservation. Director of eBay’s green team, Amy Skoczlas Cole, comments, “Most people think you have to make a product in a certain way with a certain set of ingredients for it to be green. What we’re saying is you don’t have to make this new product at all."

Environmental experts agree that reusing products does have benefits. Not entirely altruistic, eBay has suffered from shrinking market share and a push for ecologically minded shoppers is a strategic move.[more]

Items qualified as green by eBay might be pre-owned or recylced in some manner. The ad campaign will feature a five-page insert appearing in 15 Hearts magazines starting in April – to coincide with Earth Day. It showcases sustainable products in room displays. A sample tag: “Choosing a previously owned espresso machine saves 90% of the CO2 needed to produce a new one. So you get the jolt you need without compromising mankind."

The brand hired Cooler to calculate carbon conservation by purchasing used versus new. Included in those calculations are overall costs of designing new items, materials, manufacturing, packaging, and shipping. For example, buying worn leather shoes saves the same amount of energy an average household consumes daily; a used watch equals 39 days of your refrigerator’s energy; and a used handbag – made of leather – equals the energy in a flight from Paris to London.

eBay is in partnership with Team Earth, a consortium of NGOs, individuals, and private companies assembled by Conservation International. According to Julie Blackwell, senior director, Team Earth, Conservation International. “eBay’s passionate community has changed the way we shop and we have no doubt that they can change the way we consume. They are a perfect partner to rally collective action around some of the most pressing environmental issues of our day.”

Ghirardelli "Million Moments" Combines Live Streaming With Sweepstakes

Tue, 9 Mar 2010 16:01:00 EST

Ghirardelli Chocolate is launching a traditional sweepstakes promotion with a twist: Consumers are being asked to visit a website and compose a 75-character message about the "sweet little moments" when they enjoy Ghirardelli. The comments will then be streamed live on a special website. Comments entered between now and the end of April may also appear on a special billboard in lights in New York City's Times Square.[more]

The "Million Moments of Timeless Pleasure" sweepstakes promotion is designed to bring attention to the premium chocolate maker's Ghirardelli SQUARES product. The grand prize is a trip for two to one of four world famous squares – Times Square in New York, Ghirardelli Square in San Francisco, St. Mark's Square in Venice, or Trafalgar Square in London. Additional prizes will include free chocolate for a year and thousands of instant chocolate prizes.

The sweepstakes/website tie-in will be supported with a sampling program this month and next in Atlanta, Boston, Chicago, Dallas, Miami, Los Angeles, New York, Philadelphia, San Francisco, and Washington, DC, where Ghirardelli intends to distribute one million SQUARES. Consumers can find out where the Ghirardelli SQUARES street team will be by following the campaign on Twitter @GhirardelliTour.

Sweet.