Friday, June 13, 2008
Intregrating promotional efforts to maximize results
Thursday, June 12, 2008
No tomatoes = competitive advantage?
Over the last few days many eating establishments have been posting signs with the news that they are not serving tomatoes (due to the current warnings regarding salmonella food poisoning in raw tomatoes).
Obviously this is not the doing of fast food or sit down restaurants and customers seem to not be holding the issue about possible bad tomatoes against them.
However, no businesses that I've seen or heard about have tried to take this situation "by the horns" and do anything good with it.
For example, why not promote something like "while we have no tomatoes (like everyone else!), we'll give extra meat on your ham sandwich". The "extra" could be more fries, a price reduction on the order (due to lower costs due to no tomatoes), and so forth.
The point is... why not use this situation that is beyond local control and develop some offer of value to current customers and also be an incentive for new customers to give your business a try?
Be basic. Be creative. But at least consider doing something proactive.
Monday, June 9, 2008
How has it gotten to this?

The title on the cover of the June 16th issue of BusinessWeek (see right) that arrived in the mail today highlighted the negative views some businesses have towards customers. It is sad to consider that businesses across industries look at consumers as a form of competition that need to be conquered. No wonder businesses complain of the lack of customer loyalty.
It is unfortunate that too many organizations fail to remember Business 101 and 501.
Business 101 -- customers are the only source of revenue.
Business 501 (graduate level) -- loyal customers are the most profitable customers.
When the situation gets to the point where a major business publication features your business against customers on the front cover in a replica of an old time boxing card handbill, it is time to make significant changes.
How would BusinessWeek represent your relationship with your customers?
Friday, May 30, 2008
Displaying benefits in your promotions
You may recall seeing Kia advertsiements for their Sportage and Rio 2008 models that highlight safety, features and warranty but really trumpet how much each is priced less than leading competitors. What makes these ads effective is how the savings are shown... Kia shows how many grocery carts full of food the savings would buy (and several thousand dollars will buy quite a few carts full of food).
In a time when consumers are feeling the pinch of high gas prices (approaching $4 per gallon) on their household budgets, Kia leaves no doubt about what the savings from their vehicle prices can mean for the buyer. A picture is truly worth a thousand words.
The commercials will be added to this post when available.
Monday, April 7, 2008
Looking @ websites from mobile devices... is your site ready?
Accessing web sites from smartphones and PDAs is no longer the exception and businesses need to consider the implications. The ownership of smartphones in the USA alone doubled in 2007 to 14.6 million. Although Web browsers for mobile devices are becoming more technologically advanced, viewing websites from these items still entail making trade-offs such as horizontal scrolling, small screens, and slower download times.
What's happening to new mobile browsers?
There are two improvements that are making web use from phones more congruent with viewing the web from a computer:
(1) the ability to render web sites smaller -- essentially miniaturizing websites for small screens,
(2) the integration of technologies like Java, CCS, Ajax, etc. that allow mobile browsers to better mirror full-scale browsers.
The continuation of these types of advancements -- in mobile browsers as well as smart phones and PDAs -- should eventually minimize the differences between mobile and "regular" web viewing . But the difference is still real so until then...
What can organizations do?
- View your site on a mobile device to see what it looks like, its readability & viewability, and overall user friendliness.
- Minimize the horizontal width of your website.
- Carefully consider the size of images (download time and memory)
- Consider an alternative website designed for mobile access utilizing a .mobi (versus .com) domain.
Don't forget the customers who might come to you by mobile web access. How does your website project your brand to them?
Thursday, March 13, 2008
The"TMI" temptation of advertsing

"Too much information" in ads = too much lost

Who doesn't like to get more for their money? It gives us a sense of accomplishment... that we've gotten a bargain.
Look at these two ads from a local newspaper. The layouts of both ads have so much that little can be seen. Words and images get lost in all the information. And lost information mean less effective ads.
Wednesday, February 27, 2008
Closed for training... differing perspectives on Starbucks
Two viewpoints
1) The "How could Starbucks afford to do it?" perspective
.....Those with this point-of-view focus on a range of variables including the:
- lost sales during the closure
- "unproductive wages" (just consider the 400,000+ hours of barista training)
- opportunities for competitors to access Starbucks' customers (for example, Dunkin' Donuts offered heavily discounted lattes, espressos and cappuccinos during this Starbucks evening training)
- attention on negative issues at Starbucks given through media coverage of the training event
2) The "How could Starbucks NOT afford to do it?"
.......perspective
.. ..Those with this viewpoint -- and it seems to be a somewhat lonely place judging from what is currently read or heard -- wonder, even considering the possible negatives listed in #1 above, why wouldn't an organization be willing to take unconventional measures to refocus on its customers, if such methods were deemed productive?
Comparing the two sides
While those in the "how could they" camp focus on short-term negative outcomes that might result from this event, they seem to not consider the longer term negatives if Starbucks does not do something significant to counter some disturbing trends impacting their customers. One question begging to be asked is: "How much would continuing such current practices impact their profits if left unchanged". Two such practices that Starbucks reportedly focused on Tuesday night were in the areas of: (A) coffee drinks that are not prepared up to "Starbucks standards" and (B) not offering the desired consistent customer service that was a hallmark of the chain in earlier years but had been slumping recently.
Lift your cup high
Although Tuesday's closure of their locations surely had some short term negative consequences, let's hope that Starbucks customers lift their venti lattes (or espressos or macchiatos or whatever) high to toast the Starbucks management for their willingness to take a bold (and expensive) step to get the shops back to where they felt they needed to be. It will be interesting if Starbucks' customers taste and experience a difference (and for how long).
Tuesday, February 12, 2008
McDonald's: Please do coffee right this time!
Currently, the local McDonald's are in the midst of reconfiguring their front counters to accommodate the fast food firm's move into expanded coffee shop offerings.
No options
Even though they have had a nice tasting product for over a year, McDonald's chose to maintain their fast food heritage regarding their coffee. Even though promoting their coffee as a premium beverage in a redesigned cup, McDonald's failed to offer customers any choices of creamers. Instead of a selection of milks -- cream, whole, 2%, non-fat, soy, etc. -- and flavorings, McDonald's has limited coffee drinkers to a single type of coffee cream in "mini moos" (the miniature creamer "buckets" topped with foil -- see the picture above).
To be fair, McDonald's coffee drinkers could have a wider selection of creamers (2% or non-fat)... if they bought a small carton of milk with their cup of Premium Roast!
Jump, don't just stick your toes in
McDonald's seems to have the coffee that satisfies the palate. Here's hoping they realize it is more than just the coffee. Since McDonald's is entering the coffee market with more gusto, it would be beneficial to remember that up-market coffee is not viewed as a commodity and that even variables seemingly as small as coffee condiments impact consumer perception.
Saturday, January 12, 2008
Generational advertising, mixed messages
In December 2007, Kia Motors continued using the theme of parody retro music-oriented television commercials to promote their Annual KiaFest Year-End Sales Events. This was done via the takeoff of the song "Maniac" from the 1983 movie Flashdance.
Advertisements for similar sales in previous years featured playful takeoffs of the mid-1980s music scene (Styx and techno-pop).
I like the Maniac Kia commercial. It was fun and funny. Of course, I graduated from college in the early 1980s and have seen Flashdance.
My daughter didn't get it. She thought the commercial was pretty cheesy (and considered the salesman's pelvic trusts toward the car a bit "disgusting"). She has never seen the movie and would have only heard the song on an oldies radio station when I use to chauffeur her around. I don't think "cheesy" or being associated with an oldies station is a business' ideal brand position for their products.
Reading various comments on the web regarding the commercial revealed a wide array of comments about the commercial. Many asked if anyone knew the name of the song. Others wrote how funny they thought the actor was. Two things I did not see... much about the vehicles or the sales event.
Should Kia care?
Perhaps they should if they think younger age customers will be needed to reach their sales goal of 500,000 units a year by 2012 (up from just under 300,000 units in 2006). A look at Kia, from their prices, vehicles and promotions -- including a College Graduate (Sales) Program -- indicates that younger buyers are indeed a key target audience for Kia.
Including generational dependent content in ads is dicey.
If the consumers trying to be reached have a wide age range, building a commercial on a dated event, movie, personality, music, etc. runs the risk that a portion of the audience will not fully understand the intended message. Worse yet, some of that audience will develop negative (if even slightly) associations for the product by not "getting" the intended impact of the material and assigning their own interpretation to it.
Obviously, some dated material is less likely to have such unintended consequences. For example, Beatles music still transcends age groups.
Be careful.
Take care to understand the impact of including generational dependent materials in promotions. If your various customer groups have a significant age range, the promotion runs the risk of sending mixed (and sometimes undesired) messages.
Sunday, December 30, 2007
New Year's resolutions, consumers and business
- Home Depot with a tv commercial for those wishing to keep their home better organized in 2008 by purchasing storage solutions. This was in conjunction with a webpage (above right) and newspaper inserts for "The Ultimate Storage Event" sale.
- Valerie Bertinelli's video blog (with related tv commercial) as celebrity spokesperson for the Jenny Craig weight loss program. This includes an interesting twist on the New Year's resolution theme.
- A university's adult degree completion program which featured an ad in the local newspaper with the heading "New Year's Resolution No. 1: It's My Time. Time to do something for my career, my future... Time to finish my education"