Thursday 24 March 2011

Nokia and Microsoft Partnership

The Story:
Nokia and Microsoft have recently announced a broad strategic partnership. They have agreed to work together to bring ‘Windows Phone’ to the consumer while allowing each brand to showcase their individual strengths. The Microsoft software will be used on various smart-phones made by an industry leader in hardware and imaging, Nokia.
Reflection and Analysis:
This is certainly an interesting partnership and one which seems to make sense. The question, however is whether or not these two strong brands combined will be enough to compete with the industry giants, Apple and Blackberry? This could be a great product since so many consumers are familiar with the Windows operating system, however it must ensure that product glitches are non-existent. Over the past years, apple has done a wonderful job at bringing to light all of the issues surrounding the Windows product and so if the new product for smart-phones has any complications at all, it will likely perpetuate a negative perception of the brand. However, if the product works and performs well, this could be a great opportunity for both companies to build and enhance brand equity.

Celebrity Endorsements Soar at the 2011 Grammy's

The Story:
At the 2011 Grammy Awards show, which aired in February, there was an astonishing number of commercials using celebrity endorsement to sell product. According to this article, approximately 22% of the ads during the show were featuring celebrity endorsements, which was almost a 50% increase over last year. Brands that utilized this form of advertising included Ford, Chevy, Dodge, HP, CoverGirl, Olay, Target, Nintendo and Apple.

Reflection and Analysis:
I found this information very interesting when I first saw it, because I find myself very intrigued to see the continuous turnover of celebrity endorsers for various products in the marketplace. I also like to see which celebrities in particular are chosen by the various brands to help convey their brand messaging since it is crucial that the values of the brand and the celebrity are somewhat in sync. It seems that with this ever growing trend, if a brand does not have a link to some form of celebrity, than they may begin to lose ground in the market. I don’t feel that this is necessarily true, but it raises an interesting point. Are we reaching a point where the brands themselves are not strong enough to complete on their own without a celebrity to try to sway consumer perceptions? Or is this just a fun way to add another dimension to a brand? I feel that celebrity endorsements can still be very beneficial if done in the right way, but it needs to be understood that once an associative network is built between a celebrity and a brand, it is very difficult to reverse. This can make management of the brand difficult because if a celebrity acts in a way that perhaps contradicts the brand values, then it could have serious repercussions for the brand.

Black Friday Facebook Initiative

The Story:
While this story is from last Fall, I came across it recently and was intrigued by the initiative of this online retailer, Diapers.com. Leading up to Black Friday and Cyber Monday in the US, Diapers.com started an online social media initiative  via facebook to engage its consumers and gain valuable feedback. They called it “Battle of the Brands” and they chose particular brands which they carried and which customers were particularly passionate about. They put similar brands of baby clothes and products up against each other and asked people to vote. There were ten brands selected as winners, and their line of products or clothing was discounted by 30% from Black Friday to Cyber Monday in order to stimulate sales.

Reflection and Analysis:
I think this was a great initiative to get consumers involved and engaged in experiential marketing. Diapers.com also did not require that the customers ‘like’ the facebook page before voting or purchasing, only that they participate. This is a great way of going about building a strong and lasting brand community since customers don’t feel that they are pushed into ‘liking’ something. It objectively brings people together and since there is a definite trend emerging of new moms on facebook, this was a perfect promotion.

Tuesday 15 March 2011

Gaga Ends Partnership with Target

The Story:
Lady Gaga recently broke her partnership with Target in the US because the company refused to sever all ties with another partner, MN Forward (an organization that supposed a Minnesota politician who has been linked to supporting anti-gay groups). She was supposed to be the new face of Target and was in the process of giving the retail chain an exclusive expanded edition of her new album.

Reflection and Analysis:
In terms of timing, this could not have come at a better time. The spotlight is glaring on Lady Gaga now because of the release of her most recent single “Born this Way”, and this piece of news only solidifies her strong beliefs and adds value to her brand. People love to love her because of her unique and incredibly strong personality. She is absolutely a trend setter and a leader who always stands up for what she believes in. Early in the semester, we discussed as a class, the notion of a person as a brand, and Lady Gaga is the epitome of this.

Levi's Viral Campaign Banned by YouTube

The Story:
Levi’s recently attempted a viral campaign to increase awareness of it new line of jeans called that targeted curvy women. They essentially used a hidden camera to show how many people looked at the ‘rear view’ of girls as they walked down busy streets. This was an attempt to show how their new line of “curve ID” jeans would perhaps fit better for these body types. The video was actually banned from you tube because of its failure to gain consent from various individuals captured on the film.

Reflection and Analysis:
This is an interesting story, not only for Levi’s, but also for the YouTube brand. YouTube took a strong stance in this case in order to not have its name associated with a campaign by Levi’s that could be considered distasteful and as a result is only adding to its brand equity.
The implications for Levi’s is however potentially much more negative. The bad press surrounding this video is unfortunate because the viral campaign was the most successful campaign Levi’s had run in years, with over 7 millions views in the first few days, yet it was quickly tarnished when it became clear that the YouTube terms of use were being violated. The videos were removed which has made people take notice,  and as such, this could become a great opportunity for Levi’s if handled in the right way. In the immediate term, people are likely only seeing the move as a violation of privacy and producing video for marketing purposes without having consent or permission from those involved. I think that in order to deal with this type of ‘bad press’ effectively, Levi’s should take a period of time as a ‘cooling-off’ period, and then address the issue directly by admitting their lack of concern and disclosure. Going forward, they could effectively play off this misstep by releasing new videos where the individuals caught ‘gawking’ could potentially be interviewed after for further feedback (and giving their consent for use of course).  

The McWedding in Korea

The Story:
Perhaps it was only a matter of time, but McDonald’s has now officially entered the wedding business. While, currently only adopted in the Korean market thus far, couples can opt to host their wedding at a McDonald’s for a minimal fee. According to this article, McDonald’s s in Korea receive on average, over ten phone call enquiries per week regarding wedding packages

Reflection and Analysis:
While this may be seen as a strange brand extension for McDonald’s in North America, I think this could be a very good move for them in the Korean market. There is a substantial amount of demand in the Korean market to justify this service offering, and in conjunction with the fact that McDonald’s in Korea is not perceived as a ‘low-end, cheap’ fast food provider as it is in North America, this move makes sense. While North Americans may find this brand extension comical, I think it is a true testament to McDonald’s brand power in Korea given that numerous individuals find themselves so aligned with the brand values that they would consider hosting their wedding there.

Airwalk Jim Shoe: Invisible Re-Launch

The Story:
This campaign, recently launched by the ‘Airwalk’ shoe brand urged its loyal customers to get involved via a cool augmented reality app for smart-phones. Customers had to go to specific locations in either LA or New York, and find the Airwalk ‘Jim Shoe’ in what they called an invisible pop-up store (only visible through the A.R. App). Once they found the shoe, they were re-directed to Airwalk’s e-commerce site to finalize their purchase. 

Reflection and Analysis:
This is a truly unique and interesting way for this brand to engage its customers and gain their involvement and because it is also using such new technology, it is stimulating a lot of discussion and awareness. The decision to use a smart-phone app works great with the Airwalk brand because it aligns nicely with the brand values of being young and fun. The Jim Shoe itself is evoking a certain nostalgic appeal since it has a retro look that is meant as an “ode to the most loved/hated school activities of all time, gym class”. This new shoe is targeting not only the teenage/young adult age group, but also those in their 30’s who remember the brand from years ago.  I think that Airwalk is doing a great job of combining nostalgic appeal with modern technology to keep their consumer base interested and engaged.
I think that this campaign is great in that it will help develop a brand community around the Airwalk brand, and those consumers who did participate in the campaign will likely become evangelists for the brand since it seemed like such a unique and fun experience.