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November 6, 2007

Marketing Tuesday: Rebrand Awards- An Inside Peek

I spent the major part of last week in Rhode Island on the jury panel for the 2008 Rebrand awards, a yearly award series that offers companies the highest possible recognition for brand rebuilding and redesign in the business arena.

While the winners we finally agreed upon cannot be revealed until March of next year, the process of meeting with business, marketing and design minds from a range of different places and backgrounds, and of considering the applications submitted by over 100 companies that have recently engaged in substantial rebrands, is worth a brief glance.

My first thought when I walked in to one of three table-lined rooms at the Rhode Island Foundation (formerly a train station and hence fittingly large) was a resounding Oh No.

Thick binders covered practically every surface inch of the long tables that extended across the room. There were table loads of information explaining what the rebrands consisted of, with pages of before and after examples of the company, product or built environment, both before and after the rebrand. We spent the entire day reviewing these.

It was fascinating. There were instances of companies that had revamped, or at least attempt to revamp, not just their look, logos, and taglines, but also their organization's focus, target audiences, training programs, models of customer interaction, and the entire culture of their organizations. Materials submitted included photographs, pictures, sketches, promotional material, apparel, and videos. Fascinating and mind-boggling.

The criteria we based our decisions on were as follows:

• There had been a clear transformation for the better
• The rebrand had exceeded expectations or incorporated an element of surprise
• It spurred an emotional connection
• The rebrand had been intelligently executed and was capable of being
implemented organization-wide.

Continue reading "Marketing Tuesday: Rebrand Awards- An Inside Peek"

Posted by Saabira Chaudhuri at 4:49 PM

August 28, 2007

Marketing Tuesday: McDonalds Caters to Local Palates

I recently wrote a blog post, Lost in Translation – How Do Linguistic Differences Affect Global Marketing, on how, in line with cultural differences, advertising, commercials and marketing materials are necessarily differently constructed, conceived of, and perceived across different cultures.

A flurry of recent media attention towards McDonald's attempts to go upscale in Europe, brought me back to thinking about the direction in which marketing efforts are trending in an attempt to stay globally competitive in a world of increasingly porous international geographical, trade, and cultural barriers.

Multinational corporations and international companies seem to buying into the concept that altering not just their promotional or communications material, but also their products and services in line with different audiences, is an essential milestone on the path to success.

McDonald's in London, France and other parts of Europe has revamped its interiors- replacing plastic with leather and changing the color scheme. "To make McDonald’s and a Big Mac work in the country of slow food, we felt we had to pay more attention to space and showcasing," explained Denis Hennequin, president of McDonald’s Europe,
to the New York Times.

The fast food giant has also made significant additions to its menu in an attempt to woo local palates, offering porridge in the UK, soup in Portugal, and French cheese in France. The New York Times reports that a food factory in Munich has been served with the task of conceiving new menus for different tastes in the 41 European countries.

McDonald's move towards cultural sensitivity is a smart one: combined European sales have increased by 15% in the first half of this year according to the Times. And Europe isn’t even half the story. Being from India, I have noticed this strategy being adopted by the fast food giant there as well, with localized items including meatless burgers, paneer salsa wraps, and McAloo Tikkis being served up.

While clearly bent on being somewhat localized, the chain is also wisely conscious about ensuring that it does not dilute the consistency of its brand. "We would like to stay true to our roots while moving forward,” Mr. Hennequin told the Times.

This is essential. Particularly since the fast food industry runs on the basic premise of consistency (apart from speed), being sensitive to cultural differences while simultaneously maintaining the overarching message of the brand is a thin line to walk. Like so many other things, McDonalds and other big international chains out there are going to have to find a middle ground on this one. They seem to be doing fairly well so far.

Posted by Saabira Chaudhuri at 6:07 PM | 1 Comment

August 14, 2007

Marketing Tuesday: Will Murdoch Dilute the WSJ Brand?

"Readers can rely on this: The same standards of accuracy, fairness and authority will apply to this publication, regardless of ownership. Our reporters and editors feel an especially strong obligation because the Journal, from the beginning, redefined financial and business journalism." Gordon Crovitz, Publisher, WSJ.

Rupert Murdoch's recent acquisition of the Journal has done nothing to put an end to rampant speculation about what is to become of the nation's second largest, and what many call its most prestigious, newspaper.

Murdoch's reputation as an unscrupulous media baron with less concern for quality than for advancing personal business interests precedes him. "The Journal is as good as it gets in terms of high-quality journalism… Mr. Murdoch is a tabloid king with a reputation for taking everything he buys downmarket," says The Economist.

Many seem to believe Murdoch's ownership could inflict damage -- The WSJ online reports that by the afternoon after New Corp's acquisition, 170 readers canceled their subscriptions in protest. Some have expressed concern based on Murdoch's seeming penchant for tabloids, and "trashy" publications. Just how worried should the defenders of journalistic integrity and fairness be?

To give Murdoch his due, he couldn't have come this far without more than a shred of business acumen. Sure tabloids sell, but with the New York Post, News of the World and The Sun Murdoch already has a fair cut in the market for trashy sensationalism. Just because the 76 year old Aussie entrepreneur splashes the covers of these publications with bikini-clad (and often bikini-less) babes doesn’t mean he would dream of doing the same to the Journal. His $5 billion offer for Dow Jones has been criticized as $1 billion or perhaps even $2 billion too high, and Murdoch would not undercut his own interests by diluting a brand for which he has paid such a high price.

Perhaps a more pertinent concern is about the Journal's objectivity; the paper, although conservative, is hailed as a symbol of integrity and good journalistic practice. "The Journal is not really one newspaper but two- a newspaper and a highly opinionated conservative magazine. Hitherto it has succeeded it drawing a line between them. Will Mr. Murdoch resist allowing his own conservatives opinions to blur the line?" meditates The Economist.

And that is the crux. With the entrance of Murdoch, who has a notorious reputation for exercising his personal views over the media properties he owns, could the Journal become a right-wing mouthpiece for the news? Not easily according to some.

David Carr of The New York Times explains that the Journal’s editorial page editor, Paul A. Gigot, will retain significant authority -- to choose editorial board members, columnists, the editor of the op-ed section, the editors of the book review and other sections, and to have the final say over op-ed pieces as well as editorial positions.

If adhered to, this agreement will confer significantly less power upon Mr. Murdoch than the publishers of most other newspapers in the US. This is a big if however, as many claim that the Australian media mogul made similar assurances when he bought the Times of London in 1981, ones that he flouted soon after. If he does abide by the agreement then how much power he will actually exert, at least over the editorial page, boils down to how well Gigot chooses to stand his ground.

What's your take on how Murdoch's acquisition is going to affect the nature and content of the Wall Street Journal?

Posted by Saabira Chaudhuri at 11:57 AM

August 7, 2007

Marketing Tuesday: Study Confirms the Power of Brand Packaging

I recently wrote a piece entitled What a Packaging Makeover Can Do For Your Company -- it got me thinking about the issue of branding: what exactly branding is, how branding and marketing interact, and just how important packaging is to the whole process of branding, or perhaps rebranding, one's company, products or services.

In the course of my research I conversed with a number of industry experts about how heavily instrumental packaging is in the development and maintenance of a company's brand. All seemed to unanimously agree that packaging is intrinsic to the success of a brand. "Packaging is the number one medium to communicate the brand. "You need to pay attention to this area in your branding strategy because it is the first thing someone sees, touches, and essentially buys. Packaging is often more than a medium -- it can be part of the product," stresses Laurent Hainaut, founder of design agency Raison Pure.

While I was convinced, impressed even, by their assertions on how important packaging is for a brand, a study I came across this morning impressed me even further.

Funded by Stanford and the Robert Wood Johnson Foundation, the study that appears in August's Archives of Pediatrics & Adolescent Medicine, asked 63 low-income children, ages 3 to 5, to taste identical McDonald's foods that were in marked (name-branded) and unmarked wrappers.

The results? The food in the unmarked packaging was always pronounced less tasty than the food in McDonald's branded packaging, even thought the two foods were identical.

About 77 percent of the children said that the McDonalds labeled fries tasted better than the plain wrapped fries and 54 percent expressed a preference for McDonald's-wrapped carrots – well over double the percentage of those who liked the unmarked sample. The results weren’t all that striking with regard to hamburgers however, with only 7 more kids choosing McDonald's-wrapped burgers than the unmarked ones.
An author of the study, Dr. Tom Robinson opined that the children's perceptions about the food were "physically altered by the branding."

While thoughts about the kinds of ethical responsibilities this places on advertisers and chains like McDonalds or Burger King definitely flashed through my mind, I'm more intrigued by the sheer extent of the impact that such marketing strategies have on us all, even children who may be too young to read.

Posted by Saabira Chaudhuri at 4:35 PM

July 24, 2007

D’oh! The Plot to Simpsonize America

I confess, I was a little sad that I was out of the office the day the Fast Company class photo that appeared in the June issue was taken. One crummy reporting trip and I missed my chance to finally get my mug in the magazine! But fortunately, I now have a chance to show you just what I look like….or would, if I had a yellow face, bug eyes, and lips that look like they were drawn on with a crayon. Which, I guess, they were. Now, if only I could get a bit part in the movie….

By July 27, when The Simpsons Movie debuts, the range of product promotions, tie-ins, and spin-offs is likely to make even the marketing of Harry Potter seem wimpy. But for the next week or so, the idea still is fresh enough to enchant. Which is why I couldn’t resist going to Simpsonizeme.com and seeing what I would look like if I had commissioned Matt Groening do my portrait. A striking resemblance, don't you think?

The site, which is a Burger King tie-in, launched quietly last Monday. Or at least it was supposed to. By mid-afternoon the site was overwhelmed by the crush of folks pining for that hip jaundiced hue. All this, without any visible promotion. What’s up with that? Do Simpsons fanatics all have RSS feeds alerting them to every news bulletin from Springfield? Remind me to check out Salary.com’s newest “Wasting Time at Work” survey. Somewhere, there should be stats on web slacking.

This past Sunday night, the first ads promoting the site, by Crispin Porter + Bogusky (full disclosure: my kid works for the agency, so I got a sneak preview of the site during a pre-launch debugging exercise) aired during “The Simpsons.” Since then, according to Burger King, traffic has really gone through the roof. As of 3 p.m. today, the site had had 153,300,000 hits, and 4,067,378 folks had managed to upload their pictures for a full Simpsonesque make-over. Many more were left pining for that marigold glow, as the site’s traffic still outstripped the capacity to keep up with it. Burger King says it's upped the number of servers from 18 to 38. A few dozen more wouldn’t hurt.

And that’s the trick with the viral beast: make sure you can feed what you unleash. Frustrated Simpsonizers can be crankier than Mr. Burns if courted…then thwarted.

Posted by Linda Tischler at 4:52 PM | 2 Comments

June 21, 2007

Al Gore's $100 Million Makeover

When you pick up the next issue of Fast Company magazine, Al Gore will be serenely looking back at you. We were fortunate to have Good Morning America do a quick mention of the story -- check it out here. (The video screen for the segment is to the right.) The story will be available in its entirety early next week on FastCompany.com.

As all the cash register sound-effects clearly indicate, Mr. Gore has generated a significant amount of personal wealth since he left office; this in itself is not entirely unusual for someone who enters the private sector after a lifetime of public service. Money has long been a tonic for former politicians who leave, or are invited to leave, their jobs -- think symbolic board posts, memoirs, corporate keynote speeches, a lifetime of hefty honoraria. And, after his dramatic 2000 nonelection, Gore might have limped along to just that sort of life. Significant wealth alone does not a Fast Company cover subject make, however.

In what may be one of the greatest brand makeovers in history, Gore has become an international darling, hailed as a visionary on everything from climate change to Iraq. He's an Academy Award winner, a best-selling author, a front-runner for the Nobel Prize, and a concert promoter who turned out to be a bigger rock star at this year's Grammys than the rock stars themselves.

But what no one is talking about is that Gore has also become a stunningly successful businessman and entrepreneur, using the Petri dish of business to explore his deeply felt ideas about how the world works, doesn't work, and could work better. (In addition to being associated with two of the most successful technology companies in history, Google and Apple, he has also co-founded a cable network and an asset management company, both boasting radically new, and profitable, business models. They are becoming quiet forces in their respective fields.) And this, in many ways, has fueled his extraordinary comeback.

If I believed in the concept of a “natural”, I'd say Al Gore is about the most natural entrepreneur I'd ever met. Instead, we make the case -- with his help -- that a lifetime in government actually prepared him to take full advantage of the possibilities that exist, at least in theory, in the private sector. But he brings a tremendous ability to the table -- some of the very same stuff that tripped him up as a candidate. (If you've seen An Inconvenient Truth, you know he can handle, and prefers, complex data. Tough to get a soundbite out of him. Especially if he doesn't want to give one.) He's also a person of immeasureable charm and persuasiveness; he can work a room and a Rolodex like few others. He's deeply introspective. He's got the guts to invest his own money; he's hands on, yet trusts his partners and team members. (He credits them with much of his success. In every meaningful way, this is their story, too.)

For nearly two months, I've watched crowds filled with people of every size, shape, color and perspective clamor to get a chance to greet the Veep. Just to touch him. He was the star attraction at the Tribeca Film Festival's opening gala; he conversed effortlessly with programmers at an Adobe conference -- he'd circled the globe presenting his slideshow and attending meetings at least twice in the time it took me to write the piece. The "robo-candidate" of Y2K is gone -- he appears relaxed, happy in his own skin, passionately engaged in issues he gets to choose, with an agenda he gets to set. As a result, he's reenergized both his fans and his detractors -- nobody is neutral on the subject of Gore -- to powerfully emotional debates on everything from the issues of the day to his weight. And, he is the subject of endless political speculation. Will he? Won't he? (We give our own best guess in the story.)

It comes a surprise to everyone except the people who know him and work with him, that Gore has turned out to be such an extraordinarily nimble entrepreneur. And yes, he's made a tremendous amount of money. But this profile -- a business tale hiding in plain sight -- is how he did it.

Stay tuned.

Posted by Ellen McGirt at 2:07 PM | 15 Comments

June 18, 2007

Ad Legend Dan Weiden on Authentic Branding

My reporting for the article Who Do You Love? led me to Dan Weiden, co-founder of Weiden + Kennedy, one of the world's largest independently owned ad agencies. From its base in Portland, Oregon's Pearl District, W+K has launched unforgettable campaigns for Nike, Coca-Cola, ESPN, Honda, Miller Brewing, and Old Spice, among many others. In an interview in his corner office, Weiden conceded that while he rarely thought about authenticity per se, the attribute was at the core of all of the agency's work. Some excerpts from our talk:

FC: What's driving our hunger for the authentic?
Weiden: As our relationships become increasingly complicated and superficial, our longing increases for things that are really genuine. Much of it has to do with the overabundance of marketing—every flat surface is trying to sell us something. And with the Internet, there's so many voices vying for our attention.

FC: So in world that's saturated with marketing messages, how does a brand demonstrate that it is, in fact, authentic?

Weiden: Authenticity comes from having a real passion for the thing. When we first started working with Nike, we didn't bother with focus groups and planning. We were just a group of people who were absolutely turned on by sports and athletes, and what Phil Knight was creating, and we just wanted to turn other people on. We weren't trying to manipulate anyone. We were trying to share something that we loved. It was that simple.

FC: What must marketing folks absolutely get right to create an authentic brand?

Weiden: In our business, creative people have to internalize the brand. They have to almost channel the brand, so some part of the organization can come through in a human way. The whole issue with authenticity is that it has relatively little to do with technique, and everything to do with honesty.

FC: Why, then, does The Daily Show With Jon Stewart, with its fake newscasts, come across as authentic?

Weiden: Fiction is often more authentic than fact, because fact rarely reveals anything of import, whereas fiction is fully capable of showing us fundamental human truths. Jon Stewart delivers a fake newscast, but he is authentic. His humor strips away all the phoniness of politics and the pomposity of the network news.
A genuine, unscripted moment is so rare in politics. I remember when Richard Nixon met Mao, he was asked what he thought of Mao. Nixon replied that Mao's fingers were really well manicured. Reporters lambasted Nixon for what many claimed was a shallow and trite observation, but I thought it was so human. Nixon made the mistake of saying what he genuinely thought.

FC: How has Nike managed to continue to be perceived by many as authentic, even though the brand is so ubiquitous?

Weiden: I don't know why companies do this, but they like to list attributes that describe their culture. And the one attribute that consistently shows up on Nike's list is the word "honesty." Nike's values are the values of an athlete. It just embodies the athlete's heart and soul. No matter what the sport, the athlete comes first. When Nike talks running, it talks runner to runner. They are who they say they are. And they're not afraid to use language that only a runner—or a skateboarder or a golfer—would understand.

In the early days, Nike wouldn't allow a print ad to run more than once. When I pointed out that that was incredibly inefficient, the reply was: You wouldn't continually send the same letter to a friend, would you?

I once put a picture of the great long-distance runner, Lasse Viren, over my desk, in an effort to write a piece of copy that would make him laugh or at least respect what was said. I really think that honesty comes out of talking to some one, rather than some group.

Posted by Bill Breen at 10:24 AM | 1 Comment

June 13, 2007

The Music Industry: No Longer a One Trick Pony

There was a time when all a record label had to worry about was making hits. Good hits paved the road to successful albums, and then the label got paid--really paid. As holder of the majority of the publishing rights of music artists' songs, label executives where in a perpetual phase of not having to think about how to make money. But that was then, and this is now.

Now is the time when the recording industry is truly embattled. With CD sales on the costant decline and the surge in digital musical sales making very little impact on the overall bottom line, the recording industry could use a saviour.

The savior du jour happens to be Chris Lighty, CEO of talent management firm Violatar, and most notably, manager of superstar rapper 50 Cent. As reported in the Wall Street Journal today, later this month Lighty goes into business with Warner Music Group to launch Brand Asset Group, a consulting firm that will aid record labels in structuring product endorsement and equity deals--like the ones Lighty brokered for 50 Cent with Mark Ecko Enterprises for a clothing line and with Vitamin Water for the Formula 50 sports drink. The money an artist made on branding, touring, and licensing deals normally went to the artist and his management team, similar to the way it works with an athlete. But now, companies like the one Mr. Lighty proposes, will cut record labels in on a piece of the action.

"If the next 50 Cent comes along and the label that signs him doesn't get a part of all that brand extension, shame on them," Mr. Lighty recently told Samantha Marshall of Crain's New York Business.

Lighty isn't the only one hoping to change the recording industry into the music industry. Mark Pitts, president of urban music at Zomba Label Group, is always thinking about how his artist's music will fit into advertisers' youth marketing plans. Warner Music Group is also calling itself a music-based content company nowadays, with plans on foraying into film and video production. Other labels are venturing into network series and reality shows based on their artists. Long gone are the days of being hitmakers. Labels are in the business of entertainment, where today entertainment means making a hit that works well for radio and the club, as well as for ringtones. It also means making videos not only for MTV and BET, but for the YouTube and MySpace generation as well. What it mostly means, is thinking about new and novel ways of doing business and creating excitement about an artist.

It's sort of like the deal Prince brokered with Verizon Wireless recently. The artist's new single "Guitar," from his upcoming album Planet Earth was made available for free download on V CAST, as a direct-to-mobile release for anyone who participates in an online demo of Verizon's new Song ID music identification service. This was weeks before the single was available on radio and before the album picked up Columbia as a distribution partner, as reported in Billboard.

Related Links:
Why the Music Industry Needs A Makeover
Branding the Music Artist
The Long Tail of Music
Music Marketing 2.0
The Future of Music
Way Behind the Music

Posted by Lynne d Johnson at 7:34 PM | 2 Comments

May 29, 2007

Star Wars - Thirty Years of Success

This weekend millions the world over celebrated the 30th anniversary of the Star Wars franchise. For three decades a galaxy far away has enthralled the world without any sign of stopping. But I believe the success of Star Wars is more than creative, it is a display of powerful branding that mixes both heartwarming nostalgia and current coolness.

Continue reading "Star Wars - Thirty Years of Success"

Posted by Kevin Ohannessian at 3:57 PM | 1 Comment

Wine Critic Matt Kramer on "Authentic" Champagne

In the article Who Do You Love?, I argued that in a world stuffed with hoaxy messages and fabricated experiences, the quest for the authentic—"making it real"—is a new business imperative. What does it take for a brand to be authentic? I put that question to many people, including the wine reviewer Matt Kramer, who pens pithy, prescient columns for The Wine Spectator magazine and The Oregonian newspaper. Wine speaks to so many of authenticity's attributes: heritage, integrity, craftsmanship, a sense of place, a point of view. I wanted to get a wine guy's take on authenticity, so I tracked Kramer down in Australia, where he and his wife are living for a year.

In a phone interview, Kramer reminded me that when it comes to authenticity, companies must first understand the nature of the consumer's demand, which constantly requires proof. A brand's promise—the truth that consumers have chosen to believe or are prepared to accept—must stand up to scrutiny, again and again and again. "Cynics are always dismissive of authenticity," he says. "Fools are always accepting of it. The rest of us are both desirous of authenticity and skeptical about whether we're really getting it. We continually require confirmation that the thing we have deemed to be authentic is, in fact, still real."

Of course, what's "really real" is a completely subjective notion. We might proceed on the same impulses—we want, say, an "authentic" wine—but when it comes to defining a real wine, as Kramer puts it, "we all get off at different exits of the highway." I might consider Champagne to be authentic; if the bottle comes from France's Champagne region, it's real. A professional wine geek like Kramer, however, believes the vast majority of Champagne is junk, because it's blended from several different grape varieties from all over the region and it's "sold on the marketer's sizzle rather than on the wine's substance."

Kramer's point is that a consumer constantly makes a subconscious evaluation: how far am I willing to go to find the thing that's "really real?" Most of us would agree that Moet & Chandon's prestige cuvee, Dom Perignon, is the real deal, and even Kramer concedes that Dom is "quite good." But authenticity depends as much on the consumer's psychological need as it does on the brand's quality. "To someone who is searching deeply for authenticity," says Kramer, "a wine such as Dom Perignon is never going to be emotionally satisfying because it's everywhere—you can buy the stuff in the Congo." By Kramer's calculus, if your demand for authenticity is extreme, the odds are you won't find Dom Perignon to be "real enough."

It's very hard (though not at all impossible) for a brand to be authentic when it's ubiquitous. Recognizing that fact, Moet created a sub-category of Dom. Dubbed "Dom Perignon Oenotheque," it consists of a portion of each vintage, which has been set aside and aged longer than run-of-the-mill Dom. It's released in small batches and comparatively few people have heard of it. Hence, for the hardcore oenophile, Oenotehque has a better shot at being "more real." Says Kramer: "The need for greater authenticity is salved by greater exclusivity." Or to put it less kindly, "greater snobbery." As is often the case with authenticity, much depends on your point-of-view.

Posted by Bill Breen at 3:31 PM

April 5, 2007

Putting The Right Foot Forward

A good quality pair of basketball shoes endorsed by an NBA player and selling for only $14.98? Virtually unheard of, right? Not thanks to Stephon Marbury, the New York Knicks point guard who launched his line -- Starbury -- of affordable basketball shoes back in September. His flagship style, "The Starbury One," was so successful with kids and parents alike that he has released another pair, "The Starbury Two," this week. Ben Wallace of the Chicago Bulls has joined in endorsing the shoes as well.

What's more, the shoes are credible and durable. Growing up in the Coney Island neighborhood of Brooklyn, Marbury's family wasn't privileged enough to buy him $100 basketball shoes. So, when he was famous enough to have his own brand, he didn't want the shoes to be out of anyone's reach. In lieu of accepting a big endorsement check, Marbury has decided to wear his shoes on the court, which shows he has enough confidence in the quality.

It's a wonder that it has taken a celebrity this long to come up with an idea as simple as an attainable brand. There is no benefit --and really no lesson -- in having kids beg for a $150 pair of shoes that most parents don't want to spring for. I mean, isn't everyone happier when we don't have to spend unreasonable amounts of money just to look cool? I'm sure most people, when given the choice, would wear Starbury's over the most expensive and revered pair of basketball shoes simply because of the price, not to mention, the theory behind it.

Continue reading "Putting The Right Foot Forward"

Posted by Tamara Schweitzer at 4:19 PM | 2 Comments

March 26, 2007

Eye on Corporate Design

A Website About Corporate Identity is a Dutch project that addresses the "visual representation of an organization, including its logo, design, typefaces and colours, as well as its philosophy" and offers a number of related resources.

Of special interest is the Corporate Identity Catalogue, which features brief design snapshots of the logos of hundreds of companies and organizations. Each entry details information such as who designed the logo, what typeface it uses, reference colors, and the like. While it'd be great if it were easier to see the collection of logos at a glance, this is worth some time -- and at least a dozen clicks.

Posted by Heath Row at 12:07 PM | 6 Comments

March 9, 2007

H&R Block Goes Hollywood

"People were being lulled to sleep." No, that's not a description from the folks who make Ambien, but Tom Allanson, head of H&R Block digital tax solutions (the title alone makes you want to yawn), who I recently spoke to about how they reimagined the droning online tax experience. The problem, Allanson admitted: doing taxes online was so boring people were actually screwing them up.

So H&R decided to turn to Rob Legato, an Oscar-winning visual effects director for films including The Departed, Apollo 13, and The Aviator--a master storyteller who had made a career out of keeping audiences at the edge of their seats. Legato's Hollywood advice? H&R needed some good old-fashioned "conflict" in their story.

Suddenly the "IRS" became the antagonist and you, the user, the protagonist. The conflict: "Every week the IRS takes one-third of your paycheck. Now it's your turn to take it back" (it literally now says that H&R's website). "We had to be very careful as we built the story because we couldn’t portray the IRS as evil," explains Allanson, yet having enough chutzpah to infuse the story with some spice. While it’s subtle, now users navigating through their recently-released Tango tax program, are actually navigating through a traditional story arch (establish conflict, escalate conflict, and resolve conflict). And hopefully, making out like bandits.

Posted by Danielle Sacks at 1:22 PM | 3 Comments

March 7, 2007

Why the Music Industry Needs A Makeover

A recent article in Crain's New York Business (subscription required), titled "Music Labels' New Leaders," explores the music industry's shift to hiring the hippest hitmakers to man the helm of many top -level positions in the business.

This trend is just one play -- of many -- in the book of record labels trying to turn the business around. The fact that record labels need some assistance is no secret. Just look at EMI's recent rejection of Warner's bid ($4.1 billion) for acquisition -- because it was reportedly too low. Further proof of the dire straits that the music industry is in comes from the aforementioned Crain's article itself:

"Overall album sales in 2006 were down 1.2%, to 646.6 million, according to Nielsen SoundScan -- despite a dramatic rise in legal digital downloads. Analysts predict that the market will weaken further this year."

Surely hiring the hottest producers of the moment isn't going to be enough to make up for those sales, mainly because the music business isn't just about music sales. Here's an insider's view on the measures the music industry can employ to better connect their artists with the artists' fans, and hopefully to even garner some new ones for them.

On February 21, Fast Company held a roundtable discussion with leaders in the music industry to discuss the future of music. Panelists included, Grammy winner John Legend, Musictoday CEO Nathan Hubbard, VP-A&R Capitol Records David Wolter, OK GO's viral marketer Jorge Just, and associate chair of the Clive Davis Department of Recorded Music Jason King.

Click on title links to watch video clips from this discussion:

Branding the Music Artist

Long Tail of Music

Music Marketing 2.0

The Future of Music

Posted by Lynne d Johnson at 12:27 PM

February 22, 2007

Using The Bush Name For a Good Cause

Lauren Bush, the 22-year-old niece of President Bush, is getting political with fashion. The Princeton University senior and fashion model is designing a line of shoulder bags to help combat world hunger. Lauren Bush was seen sporting her tote a couple weeks ago at the Mercedes-Benz fashion week in New York City. The side of the bag reads "Feed the Children of the World, and is being dubbed her "Feed Bag" tote.

Bush will reportedly not be making any profits off of her new line, but instead give the money to the United Nations World Food Program, where each bag will help feed one child for a year. As a student ambassador of the U.N. World Food Program, Bush has helped rally other University students for the cause. Last October, she participated in a campaign at Georgetown University that established an alliance of American colleges and universities that are helping to fight the war on hunger.

But Bush believes her appreciation for fashion is what will get more people dedicated to her cause. "We all need to encourage students to use their individual talents to fight hunger," she said in a VOA news report in October.

Continue reading "Using The Bush Name For a Good Cause"

Posted by Tamara Schweitzer at 3:48 PM | 1 Comment

February 19, 2007

Merging Questions

Fast Company first wrote about the competition between XM and Sirius a couple of years ago, and while rereading the piece might not be a lesson in "I told you so," the companies' recent merger (subscription may be required) might be of interest.

For me, the merger raises several questions. One, does the merger indicate that the very idea of satellite radio has promise -- or that it might be an idea before its time? If there's truly a sizable business opportunity here, might it not be able to support more than one company? Secondly, I'm somewhat confused by broadcasters' plans to challenge the merger. Mightn't another satellite radio company be formed some day? Is a company a trust if there's still the opportunity for other businesses to enter a market?

And thirdly, what's the appeal? I personally have little interest in satellite radio. I'm not an avid radio listener, and part of me still feels like satellite radio is basically Music Choice (the cable television audio music channels) without the lame trivia questions and karaoke-quality visuals. I'm also curious whether the company's attempts to differentiate themselves content-wise is working. Is Howard Stern appeal enough to sign up for the service?

Maybe the market's too small for one company.

Posted by Heath Row at 8:48 PM | 3 Comments

February 15, 2007

Move Over Batman, Make Room for Bauer

I swear I'm not the type to watch a television show just because everyone else is watching it. I’ve never even seen any of Carrie’s ubiquitous dating foibles on Sex and the City, nor have I paid attention to all of the plot twists and cliffhanger hysteria on "Lost." Yet when it comes to 24, I am completely hooked.

No, I'm not just watching 24 because every media outlet and worth-her-weight-in-gold blogger is talking about it. Nor am I here to put my two cents in about 24's “meaning” for the larger anti-terrorism effort and whether real-life agents are more likely to torture suspects because they’ve seen Jack do it on the show. Really, truly, I watch "24" as an escape from my real life, which some could say is torturous, but is nothing compared to the 24/7 non-stop rollercoaster ride that is Mr. Bauer's.

Continue reading "Move Over Batman, Make Room for Bauer"

Posted by Ruthie Ackerman at 10:48 AM | 2 Comments

February 6, 2007

Using Fashion to Tap Into the Female Consumer

In the midst of New York's Mercedes-Benz (formerly-Olympus) Fashion Week, IMG Fashion announced that it will bring a Mercedes Benz sponsored Fashion Week to Berlin in July for the spring 2008 season.

If you haven't already caught on, Fashion Week means big-time exposure for up-and-coming, as well as, seasoned designers, but also even bigger exposure to brands that hope to capitalize on the throngs of people making their way to the tents. Mercedes-Benz already sponsors Fashion Weeks in Singapore, Australia, Hong Kong, and Canada.

According to Fashion Week Daily, more than 14,000 people per day visited the tents at Bryant Park in February 2005; this doesn't include the number of people who watch the shows from streaming video on the Internet. For an event sponsor, like Olympus or Mercedes Benz, or even a regional sponsor, this means direct access to the movers and shakers of the fashion world -- the celebutants, the designers, the buyers, and the media.

Even AT&T's wireless unit, formerly Cingular Wireless is jumping into the mix with coverage of Fashion Week offered to its customers . . . for a price. Cingular customers can download designer wallpaper sketches from Tracy Reese and Jenni Kayne for $1.99 each and customers who have the Unlimited Media package ($19.99) can watch the shows from the comfort of their cell.

Generally, this is an effort by these major brands to reach the female consumer who boasts 83% of the buying power in the US. Mark McNabb, Mercedes-Benz US VP of sales told MediaPost, "We have been trying to improve our marketing to a female audience over the past sixteen to eighteen months."

So with Fashion Week being the best way for traditionally macho companies like Mercedes-Benz to reach the female consumer and the power of her Louis Vuitton wallet, will other megla-macho companies jump into the mix soon?

Posted by Lisa LaMotta at 5:17 PM | 2 Comments

January 25, 2007

The Power of the Past in the Land of iPhone

I was listening to the NPR report on the auction of Twentieth-Century Fox memorabilia this morning, and it was another reminder of the dominating power of celebrity in our culture. Owning a sliver of their lives has almost talsmanic power. In a world where, increasingly, we connect on MySpace and in SecondLife within a virtual grammer that lacks touch or feel, there is an potent power in the tangible.

It also made me think again of what a truly bi-polar consumer culture we're in. Americans may not be political extremists, but we certainly are emotional extremists. On one hand, we fetishize the past, whether it be Humphrey Bogart's first studio contract (one of the items in the auction) or vintage sneakers or half of the kitschy omnium-gatherum that is eBay. On the other, we are this-just-in creatures of the new, always looking forward, never Lot's wife

How do we reconcile this retro-obsession with our worship of the next Steve Jobsian revolution? Americans are fundamentally a move-on people, for sure. (That's why Bush's spinmeisters are calling his new Iraq plan "The Way Forward.") We don't agonize over the past, we move past it. Yet part of us obviously clings to, and wants to own, the artifacts of a simpler, less troubled and tortured time. Deep in our ironic age, nostalgia becomes both a meta-commentary and a shot of Paxil. We bid for the past as we push on to the future.

Posted by Adam Hanft at 6:24 PM | 1 Comment

January 22, 2007

China Declares War Against Foreign Luxury

The upscale districts of Shanghai and Beijing sparkle with high-decibel status, from Armani to Prada to Burberry. The newly-minted Chinese upper class doesn't seem to mind this. But based on a report in this weekend's Financial Times, the government seems to have a problem.

Seems as though the Shanghai Municipal Industrial and Commercial Administration (and you thought we have leaden bureaucracy over here) has posted a notice on its website that warns against the shoddy construction, mislabelling and even dangerous components that their official quality checkers identified in fancy-schmantzy items.

The FT reports that a spokesman for Armani politely described the Chinese gripes as "not issues that are raised anywhere in the world. We pride ourselves on the quality of our products." That's a very understated response for understandable reasons: no manfacturer wants to alienate the gatekeeper to this enormous market.

Of course, there's an economic reason for the government acting as wardrobe nanny. They simply want to do as much as possible to discourage the purchase of foreign goods, and to convince those Chinese who have the money to drape themselves in luxury that locally-manufactured stuff can actually be superior. As the FT writes, "...the administration said its quality checks showed that consumers should not judge clothes solely on their price and on whether they had been imported."

Earth to the Chinese government: people who buy luxury goods don't give a damn about their shoddy workmanship or the pH levels in their wardrobe (Burberry was forced to recall a line of men's trousers last November when the quality checkers found an excessive pH level).

The nervousness of the Chinese government reflects an interesting reality. The country has roared to the export leadership position it has achieved without creating any "brands." That's the inevitable next step. Rather than bashing foreign luxury brands, my bet is that the Chinese will start to produce their own luxury statements. What better signal that they have moved from emerging to "emerged" status than if they could compete not just on low-cost manufacturing, but on the rarefied level of the superficial? Now that's the global recognition they're looking for.

So it's only a matter of time until Prada and Vuitton start facing the same threat from the Chinese as everyone else they're putting the squeeze on, and until Burberry starts shaking in its pH-flawed trousers.

China's combination of amazing growth and ever-abiding mystery make it one of the coolest places in the world, and coolness is the lingua franca of luxury marketing. If foreign buyers suddenly start finding China's status goods appealing, then suddenly they'll be in high-demand for local consumption, too. That would give China the spectrum from low-end to high-end success, and be one more nail in the economic coffin of Europe, for whom luxury products are an irreplaceable part of the economy.

Posted by Adam Hanft at 3:01 PM | 1 Comment

December 5, 2006

Apocalypto: Gibson's Saving Grace

There was an article in the New York Times this morning about Mel Gibson's Mayan epic, Apocalypto. The writer, Sharon Waxman, discussed some early praise for the film, alongside Hollywood criticism for the actor/director/producer's behavior. She writes:

"Since Mr. Gibson's drunken tirade against Jews last summer, many people in Hollywood swore -- both publicly and privately -- that they would not work with him again or see his movies."

The point of the article though, is whether Apocalypto, excellent film or not, would be nominated for an Oscar, considering the tension that still exists over Gibson's anti-semitism. We've wondered the very same thing in a recent online exclusive, "Can Mel Gibson Bounce Back?"

Looking at Gibson as a brand, we wonder whether a Gibson sanctioned project can still carry the same cachet? Can Hollywood accept the film on its artistic merit alone and overlook the personal brand attached to it? And what about the public? Is there enough interest in this film to generate wide audience acceptance?

How does a brand bounce back after a scandal? This slideshow, "Rebounding Brands," shows examples of a few.

Posted by Lynne d Johnson at 12:08 PM | 5 Comments

October 13, 2006

When Entertainment and Advertising Clash

The relationship between advertising and hip-hop music and its artists has proven to be invaluable over the years. A rap verse in an automobile ad, a bass-thudding beat in a fast food ad, an award-winning rapper in a beverage ad -- all par for the course -- it's always clear that it's advertising. So what happens when advertising masquerades itself as hip-hop entertainment, and the line between advertising and entertainment gets blurry? Thanks to YouTube, we have the perfect case study.

In recent months, hip-hop impresario Sean "Diddy" Combs began posting home video clips to YouTube and promoting his upcoming CD -- his first in five years -- Press Play. These videos are also publicized on his MySpace profile page. Videos of the artist urinating or getting a hair cut had become fodder for bloggers and entertainment websites.

But last week, the entertaining novelty of Diddy's home videos took a turn when the artist partnered with Burger King to launch a branded channel -- Diddy TV -- on YouTube and launched with a video of Diddy going into his local Burger King, ordering food, and announcing the partnership. A branded channel like Diddy TV is YouTube's attempt to promote a user-friendly advertising model. It worked in August when the Paris Hilton channel launched. Not so with Diddy TV.

The official Diddy TV launch resulted in some backlash for YouTube, with users posting parody videos and leaving comments about their dissatisfaction with YouTube enabling celebrities and brands to buy their way into the community, as well as calling Diddy a sellout.

Perhaps the site's users should calm down and accept branded channels. They could have to deal with preroll advertising, short spots that are immune to fast-forwarding, or video ads interspersed through each clip they watch on YouTube. The video community site is a business after all.

Posted by Lynne d Johnson at 2:56 PM | 1 Comment

September 21, 2006

JCPenney is Losing its Shirt

-- Literally --

Today JCPenney announced the largest private brand launch in the company's history, a 2007 release of a private label Lingerie line called Ambrielle.

Capitalizing on what many say is an underserved market, JCPenney will promote Ambrielle in a boutique-like setting in stores nationwide.

Currently, the U.S. lingerie market is dominated by Victoria’s Secret, which holds only 30 percent of the intimate apparel market. Thus retailers like Target, Wal-Mart, and now JCPenney are stepping up to the demand.

In the past five years, the intimate apparel business has boomed, with store-front and catalog retailers alike offering their own lingerie lines. Stores with a teen-focus like GAP and American Eagle are capitalizing on the popularity of undergarments too, with the GAP Body line and American Eagle’s Aerie opening later this year.

JCPenney is no stranger to the lingerie world- their current store brand called “Delicates” has been around for almost 10 years, but has been less than successful. However, the department store has developed a reputation for its wildly successful store brands, such as Arizona and St. John’s Bay- both billion-dollar brands.

When the Ambrielle line launches next spring, customers can explore 5,500 square feet boutiques in every JCPenney, and browse through a total of 4,000 intimate apparel items. The Ambrielle line will be broken into three sub-brands that appeal to different generations and styles: Smooth Revolution (modern and smooth), Mystique (sexy and enhancing) and Essentials (understated and natural). Each line is expected to be promoted as sensual and attractive, not risqué.

Posted by Kathryn Tuggle at 6:18 PM

August 30, 2006

Does Online Popularity Translate Into Sales?

Today, while reading "5 Brands Make Their Mark on MySpace," on iMedia Connection's web site, I wondered whether social networking popularity could actually translate into sales for a company. I doubt that befriending thousands of youth on MySpace will make a difference to your bottom line, but I could be wrong.

It's true that the MySpace effect has worked well for entertainment brands, but what about other types of brands such as food chains or automakers. Is it essential to have a profile on MySpace in order to reach your audience?

Posted by Lynne d Johnson at 12:45 PM | 8 Comments

August 24, 2006

Brand Tom Cruise for Sale

Whether Paramount Pictures cut off Tom Cruise as a result of his recent conduct--bouncing up and down on Oprah Winfrey's couch, attacking Brooke Shields for taking prescription drugs, publicly speaking out against psychiatry, zealously advocating Scientological ideals--or because he was no longer providing and optimal return on investment (ROI) is moot at this point. It really doesn't even matter whether Paramount shut the door in his face or if his Cruise/Wagner Productions company opted out in favor of going independent with the backing of $100 million from two unnamed hedge funds. What does matter is that the brand that is Tom Cruise is for sale, and financing it may prove risky business.

Today, The Wall Street Journal reported just how risky that business could be. Citing examples of failure at generating returns at the box office for hedge funds that backed such films as Poseidon, V for Vendetta, Lady in the Water, and Ant Bully, the article explains how hedge funds are starting to pull away from Hollywood.

As various forms of new media services push to the fore, video download services, Netflix, and DVRs in particular, Tinseltown isn't always cashing out huge at the box office these days. The cost of movie making continually increases, while the ROI appears to remain flat.

Big Hollywood studios could take some advice from Star Circle Pictures, a motion picture company covered in the September issue of Fast Company. According to that film company, there exists strategies for reducing the risk associated with movies. Perhaps even Cruise/Wagner should heed that advice.

Posted by Lynne d Johnson at 1:12 PM | 3 Comments

August 23, 2006

Heiress Airwaves?

Paris Hilton’s self-titled album came out yesterday, and our prediction from March was partly right. It sounds… better than I’m comfortable admitting. Tolerable even. Which can only mean she has some talent? Or perhaps our note on the timeless importance of the music producer was right on the money, and Scott Storch (the self-proclaimed “Meyer Lansky of hip-hop”) and the gang sprinkled a little studio fairy dust on it. It could be the placebo effect, but I thought I could hear a hint of Auto-Tune in there, which leads me to think it's the latter.

Either way, there’s nothing authentic about the promotional footage of Hilton recording posted on YouTube.com – little more than a slick music video with Hilton posing next to a mic (with spit guard, mind you). The high quality content stood in stark contrast from the usual lo-fi video most users post. But some genuine clips – or at least genuine-appearing ones – of the heiress actually laying down tracks might have assuaged audience and critic doubt (that’s assuming a lot). Was that a brilliant move by Warner Bros. or an incredibly stupid one? Does it matter? As it is, we may never know for sure.

Posted by Joseph Manez at 5:28 PM | 3 Comments

August 16, 2006

The Man Comes Around

Johnny Cash, according to an article on Slate.com, has never been more popular. The article goes on to say that under the guidance of producer extraordinaire Rick Rubin Cash was cast as indelibly cool. While also, claims the author, his music strayed into the arena of kitsch to solidify the somber legend quality of the "Man in Black." Sounds like a lesson in re-invigorating a classic brand to me...

Continue reading "The Man Comes Around"

Posted by Joseph Manez at 10:07 PM | 1 Comment

August 14, 2006

Innovation: Start by Leaving the Customer Alone

This post is a complete list of every promotion flung at the crowd during a single Mets-Padres game. 47 sponsored promotions from 36 companies in 9 innings. And you know someone's sitting in a meeting right now trying to work out how to create a promotion that will 'really break through'. Sometimes the best innovation is to be somewhere else.

Posted by Russell Davies at 2:05 PM

August 8, 2006

Miami Vice's Brand Affiliations

I originally reported that I'd go see Talladega Nights: The Ballad Of Ricky Bobby this past weekend, but I opted for Miami Vice instead.

Not much unlike the NASCAR parody, Miami Vice serves as a definitive case study for product integration into a film. Brandchannel.com reports:

"The detectives carry Nokia cell phones with video capabilities, Apple laptops, and Motorola video and audio devices. And the last step to being cool? A signature drink. Not even five minutes into the first scene, Crockett orders a Bacardi mojito at the bar."

Other featured products included Adam Aircraft, Benelli, BMW, Cadillac, Crown Royal, Donzi, FedEx, Ferrari, Heckler & Koch, Hyatt Hotels, Jack Daniel's, Mercedes, Milano's Pizza, NBC, Nokia, Pepsi, Range Rover, Shell, Sony, Southern Comfort, Toyota, and Xbox. Whew! The list is a bit exhaustive, but I suppose it beats having to view commercials before a film begins.

Do you think that the practice of integrating marketing within the storylines of films or TV shows makes sense? Should there be a clearer distinction between the two? And does product placement, as adopted in various films and TV shows lately, even work? For instance, can you name the products featured in the last film you watched?

Posted by Lynne d Johnson at 1:45 PM | 10 Comments

August 4, 2006

Weekend Watching

Tonight I'm parting with 10 bucks to catch Talladega Nights: The Ballad Of Ricky Bobby, Will Ferrell's NASCAR parody. In mocking the NASCAR industry, the film also pokes fun at its corporate sponsorships -- but not at the expense of such sponsors. In fact the movie is being touted as the best example of product placement and brand integration in a film -- ever.

From what I've seen on billboards, the Web, and in Ferrell's TV appearances and film previews, I'm thinking it just might be a little brand overkill -- but I'm not committed to that opinion just yet.

Posted by Lynne d Johnson at 12:26 PM | 2 Comments

August 3, 2006

The Dark-Side of Demand

The car stolen most in 2005 was BMW's 2001 M Roadster, according to CCC Information Services which tracks automotive claims. One out of every 200 registered Roadsters were pinched. BMW's M division creates high-octane versions of their standard car models for automotive enthusiasts. It seems they've succeeded in creating demand for these superior models.

But BMW's M is not the only latest technological pièce de résistance to receive ill-fated attention.

Here in New York, there have been warnings about wearing Apple's iPod headphones on the subway. Why? Because subway theft has risen and its all being blamed on the iPod. Call it the dark-side of popularity -- when you build demand for your product, this demand will not be ignored by those who seek profit by nefarious means.

What can BMW do about the Roadster's theft? What can any company do about such popularity?

Posted by Kevin Ohannessian at 12:16 PM | 4 Comments

July 31, 2006

Sky Ride

As one of the sponsors of BlogHer '06, the conference I wrote about on Friday, GM embarked upon a little one-on-one marketing. Instead of forcing conference attendees to sit through some intolerable PR session about future vehicles from Saturn, the company offered conference goers the opportunity to learn about them first hand by handing over the keys to the rides. For instance, I chose to test drive a silvery two-seater convertible named Saturn SKY.

Continue reading "Sky Ride"

Posted by Lynne d Johnson at 12:25 PM | 1 Comment

June 21, 2006

Gaffes of the Day

Inexplicably, Virgin head Richard Branson has teamed up with low-rent celebrity spouse Kevin Federline to call for protected status for the humble penny. Of course, the call to action accompanies a special SMS rate plan rollout from Virgin Mobile, but as Branson's full-page ad in today's New York Times says, pennies make us "feel American." Huh?

One, without being jingoistic, what does a Brit know about feeling American? Maybe we should bring back the ha'penny. Secondly, teaming up with Federline seems to be a branding misstep for Branson. What does Federline bring Branson in terms of popular opinion or credibility? Not a lot.

Oddly, the media event happened in close conjunction with another possible branding misstep. Target has licensed its name to develop a line of consumer goods under the umbrella of Target -- add one l'accent aigu -- Couture. Among the offerings, $140 jeans and $3,200 jewelry. But here's the rub: The goods won't actually be sold in Target stores.

Distancing, anyone?

Posted by Heath Row at 3:10 PM

May 18, 2006

Best Brands in the Land

According to a survey recently conducted by City Business Journals Network and Russell Marketing Research, the 10 brands best-known by American CEOs are as follows:

• UPS
• Dell
• Microsoft
• Sony
• Sam's Club
• Southwest Airlines
• QuickBooks
• Costco Wholesale
• FedEx
• Best Buy

Which company do you think is best -- which brand is strongest?

[Via IT Facts]

Posted by Heath Row at 4:01 PM | 11 Comments

May 17, 2006

From The 18th Annual DMI Brand Design Conference...

For 18 years, the Design Management Institute has brought together some of the world's best design thikers to discuss how all types of design can be used to help develop brands. This year, the conference will center around brand experiences and will feature presentations by creative executives from Walt Disney Imagineering, IKEA, BMW, Nokia and Cheskin (among others). I'll be blogging a few highlights from the conference room floor (feel free to pass on questions). After the jump, a breakdown of the five levels of brand experience and how designers can help brands develop better relationships by creating meaning...

Continue reading "From The 18th Annual DMI Brand Design Conference..."