There may not be any plug-in hybrid cars for sale in the U.S., but if there were, a lot of consumers would want one. A new study by Harris Interactive suggests that more than 25% of car buyers would consider a plug-in hybrid vehicle for their next purchase. For the record, a plug-in hybrid is designed to run entirely on electricity, at least for short trips at lower velocities. Also for the record: such cars have never been in the U.S. market in notable volume, except for General Motors' brief experiment with its late '90s EV1 car of which GM delivered somewhere north of 1,000 to high-profile lessees in California, before reeling them back in and impounding them. The car was the subject of a documentary, "Who Killed the Electric Car?," last year. General Motors has said it is planning on production--at some point--of its new plug-in Volt concept, a hybrid that can also potentially run on ethanol and diesel, and has enough juice to travel 40 miles on electricity alone between charges. GM has been showing it off at events and auto shows. Ford has also bowed a plug-in electric take on its Edge crossover, powered by a hydrogen fuel cell battery. Also, brass at GM, Chrysler Group and Ford have reportedly fired off a joint missive to the Bush administration asking it to triple money allotted for government-funded battery research. Acceptance of hybrid gas-electric vehicles has seeped beyond the blue states, with sales of hybrids up nearly 50% in the first seven months of this year, according to R.L. Polk & Co., which says the boom is driven by big sales in the Midwest. On Wednesday, electric plug-in vehicles were also the star of an industry event in Washington, D.C., organized by IEEE-USA, the U.S. public policy arm of the Institute of Electrical and Electronics Engineers. According to the Harris Interactive AutoTechcast study, which polled around 10,000 American consumers in July on their familiarity and affection for hybrid, plug-in hybrid, and diesel, 27% of U.S. vehicle owners are likely, very likely or extremely likely to include plug-in hybrid engine technology in their next vehicle. When presented with a suggested market price premium of $3,200, consideration drops to 16%. "Hybrids performed higher on inclusion on next vehicle and familiarity, and once the estimated market price of each was mentioned, hybrid [non plug-in] was only slightly better [as a feature polled consumers would favor]," says Stephen Lovett, Director of Automotive & Transportation Research at Harris Interactive. The study suggests the biggest challenge for vehicles like Volt is consumer awareness and understanding. Only 23% of respondents said they were either extremely (3%), very (6%) or just familiar (14%) with the nuts and bolts of plug-in hybrid power. But Lovett says that favorable responses to plug-in jumped after respondents got a primer on the technology. "Once we explained the technology, 52% said that they would be much more likely to include it on their next vehicle--if we didn't mention the estimated price," he says. The strongest positive note came from respondents who own a compact SUV, of whom 45% said they were likely to purchase a plug-in hybrid for their next vehicle, versus 31% of compact car owners, and 36% of sports car owners. Among those who say there were least likely to include plug-in hybrid vehicles on their shopping lists, 84% did say they would prefer plugging in to filling up at the gas station.
Scoring with college sports fans, Nissan and ESPN The Magazine have teamed up for the second straight year to sponsor the ESPN Gridiron Blowout Tour. This year's tour provides college football fans with the ultimate tailgating experience and interactive promotions that both Nissan and ESPN The Magazine expect to disclose this week. The campaign kicked off with online banner ads and spots that launched across ABC and ESPN television networks earlier this month. The ads show college mascots chasing after the Heisman Trophy, which sits in the bed of a Nissan truck. The 10-city ESPN Gridiron Blowout Tour that begins Saturday visits college football marquee match-up games where fans can watch ESPN college football coverage in the Nissan Lounge, a viewing area lined with comfortable couches and flat-screen TVs. Nissan expects about one million fans to attend the tour that begins at the Georgia at Alabama game on Saturday, and ends at the Texas at Texas A&M game on Nov. 23. The tour also makes stops at North Carolina State, Tech at Clemson, Florida State University, the University of Southern California, and Kansas State, among others. While Nissan plans to display the Heisman Trophy at each stop along the way, football aficionados can enter a contest for the chance to win an all-expenses-paid trip for two to the Heisman Trophy presentation and the reception for Heisman recipients and candidates, as well as members from the Heisman Foundation and National Football League. As sole presenting sponsor of the Heisman Trophy, Nissan invites fans to log on at theheismanvote.com to cast their votes for their favorite college football stars. Last year during a similar promotion sponsored by Nissan and ESPN The Magazine, fans cast more than 16 million votes. The combined votes count as one vote for the Heisman Trophy. Nissan will set up computer voting kiosks so fans can access the site at tour stops. Those who come out to cheer on their teams also get a chance to win Nissan and ESPN co-branded merchandise such as mini-footballs, keychains and hats with the Heisman Trophy logo. "We're connecting with the passions of college football fans, and getting an opportunity to showcase our vehicles like the Titan, and launch the new Rogue," says Kyle Pratt, group director, Integrated Strategy & Programs, Nissan/Infiniti at Omnicom's media agency OMD. The 2008 Rogue, Nissan's first entry into the small crossover SUV segment, went on sale Wednesday and will begin rolling into dealerships next week. The carmaker announced a starting price of $19,250 for the front-wheel drive Rogue S and $20,450 for the all-wheel drive Rogue S. The equipped SL starts at $20,670 for 2WD and $21,870 for AWD. Nissan hopes the promotion will raise awareness and entice potential buyers who might want to know more about the vehicles' performance, such as fuel economy. "Getting the point across in promotions requires several components, from national advertising, to online and on site," says J. Schaffer, promotions manager, Nissan North America. "Some of these were done last year, and we found them very successful." Nissan relies on feedback from dealerships to measure any promotion's success. Some feedback will come from reports on foot traffic into stores, as well as from monitoring the number of people who "raise their hand and inquire about additional information" for specific cars. These signals and more will determine if Nissan, the brand, can connect successfully through college sports with football fans, Schaffer says. Nissan's extended relationship with ESPN The Magazine includes custom-produced stories about the Heisman that will air on ESPN. Nissan also will continue to work with the magazine to create customized Heisman inserts throughout the college football season, the ESPN Gridiron Blowout Tour and Heisman Trophy promotions.
Although details haven't been entirely flushed ... make that fleshed ... out, Procter & Gamble is announcing a return of the Charmin Restrooms to New York's Times Square for the upcoming holidays, slated to begin in about two months. The ceremonial "first flush" will take place on Nov. 19, three days before Thanksgiving. While last year "Everybody Loves Raymond" star Doris Roberts was on hand for the opening ceremonies, a P&G spokesperson says details such as which celebrity might be involved are not yet "fully baked." But he did tell Marketing Daily that there will be no billboard space. Last year, a huge sign hung from the front of the building housing the 20 johns, reading "You're in New York. Go in style." with an arrow pointing to the facilities and the Charmin logo and its cartoon bear. P&G appears to be taking greater advantage of the marketing potential this year, offering visitors interactive activities so that they can decide which type of Charmin is right for them. Dewayne Guy of P&G says the inside of the facilities "should look different. We're launching a restage of our Charmin Ultra Soft, which is a blue product, and our Ultra Strong, which is red, so that theme runs through the space, red and blue." It is the second year that P&G has staged the promotion for its Charmin brand. Last year, more than 420,000 people from 100 countries and all 50 states visited the restrooms. "Last year we used 10,500 mega rolls, which is the equivalent of 42,000 regular rolls," says Guy. "We think we will top that this year." The 20 restrooms will feature family-friendly facilities with attendants on hand to service each stall after every use. "We know how difficult it can be to find a public restroom in New York City," said Dennis Legault, brand manager for Charmin, in a release, "so this is Charmin's gift to New Yorkers and tourists this holiday season." The Charmin Restrooms will once again be located at 1540 Broadway in Times Square between West 45th and West 46th streets, and will be open from 10 a.m. to 11 p.m. every day except Christmas Day. They will close at 6 p.m. on Christmas Eve and New Year's Eve.
A new study from the Natural Resources Defense Council (NRDC) says that leading air fresheners contain alarming levels of phthalates--chemicals that affect reproductive development, particularly in babies. The environmental watchdog group, which says it believes its test to be the first of its kind in the U.S., currently has more than 1.2 million members, and is considered to be a leader in shaping mainstream opinions about the environment. Of the 14 different brands tested, only two--Procter & Gamble's Febreze Air Effects and Dial Corp.'s Renuzit Subtle Effects--contained no detectable levels of phthalates. Products under the Glade and Oust brand, both owned by S.C. Johnson, as well as Air Wick and Lysol, both owned by Reckitt Benckiser, all contained phthalates. The three with the highest level of phthalates were Walgreens Air Freshener, Walgreens Scented Bouquet and Ozium Glycolized Air Sanitizer. Walgreens says it will pull its products, and conduct independent testing. "Prior to the study's release, the manufacturer of one of the Walgreens brand products had already begun the process of reformulating its air freshener to exclude phthalates," a Walgreens spokesperson says. In the meantime, "we are removing the Walgreens brand air fresheners mentioned in the study as a precaution. We will have a phthalate-free version available in our stores soon." The NRDC estimates that air fresheners are now a $1.72 billion industry in the U.S.--up 50% from 2003, and used by an estimated 75% of households. NRDC says it has filed petitions with both the Environmental Protection Agency and the Consumer Product Safety Commission, in conjunction with the Sierra Club and other environmental groups, to begin testing all air freshener products. As a result, marketing and labeling claims are likely to come under greater scrutiny. The NRDC says none--including brands marketed as "all-natural" and "unscented"--had phthalates in the list of ingredients or anywhere else on the label. "Consumers have a right to know what is put into air fresheners and other everyday products they bring into their homes," the group says. Phthalates are hormone-disrupting chemicals that can be particularly dangerous for young children and unborn babies, leading to reproductive abnormalities. The European Union has banned most phthalates from use in toys and cosmetics. A bill banning six phthalates from children's toys is currently awaiting action from the governor of California. (San Francisco's first-in-the-U.S. ban on the substances in children's products is currently facing legal challenges, says an NRDC spokesperson.)
Diageo has teamed with Zagat to create an online guide to restaurants dedicated to serving premium spirits. Zagat and the parent of such brands as Smirnoff, Guinness, Johnnie Walker, Tanqueray, and Cuervo has created Drinkwell at idrinkwell.com based on reader surveys of the establishments through the standard Zagat.com vetting process. The concept was conceived at Diageo, according to Steve Wallet, vice president/channel marketing for the spirits marketer. He declined to reveal the financial aspect of the relationship. The premises included in the site do not have to carry Diageo brands, but must be Zagat-rated establishments and "must agree to carry only premium products," he said. "When people go out they often start the evening with cocktails, and that experience--good or bad--can set the mood for the entire night," says Wallet. The program is as much a trade marketing effort as it is a consumer push, since the Diageo name does not yet appear anywhere on the drinkwell site. The brand will show up in some point-of-sale materials and at some point, the drinkwell brand may be featured on packaging, but there are no plans at this moment, Wallet adds. "Zagat is well-known among consumers as the world's most trusted source for millions of people on where to eat, drink, stay and play around the globe. As such, the Zagat brand is side-by-side with drinkwell on the idrinkwell.com site." In addition, drinkwell establishments are Zagat-rated, not Diageo-rated," Wallet explained. "Diageo's role is primarily behind the scenes--partnering with world-renowned beverage experts including Dale De Groff, Steve Olson, Paul Pacult, Dave Wondrich and Doug Frost to provide training opportunities for restaurants and bars that are drinkwell-accredited." As part of the effort, the experts are offering an official on-premise and online "drinkwell Academy Staff Training Program." Bartenders who attend the four-hour on-premise course or successfully complete six hour-long online lessons will become "certified" mixology experts. Training will also include menu planning. Drinkwell-accredited establishments will receive a black and brushed metal plaque to place in their establishment, similar to the burgundy Zagat Survey decal. Consumers can find the site from the Zagat.com home page, and it will also be featured on some of the Diageo brand sites, Wallet says. A PR campaign, pop-up live event on Oct. 2 and search engine marketing round out the marketing effort. Digital Grit built the site and is handling search marketing.
Shoppers are getting fussier when it comes to their favorite Web sites, and retailers are responding by investing more money in product-detail pages, customer service initiatives, and marketing programs that encourage cross-channel buying, according to a new survey from Shop.org and Forrester Research. "Companies are investing in new features that will keep customers coming back, and home pages everywhere are getting a major facelift," reports the survey, which polled 150 retailers. Shop.org is a division of the National Retail Federation. In the 12 months ahead, 88% of retailers say they plan to improve product detail pages, with 80% adding alternative images, 72% incorporating lifestyle photography, and 63% integrating customer ratings and reviews. More are also integrating top sellers with "what's new" sections, and adding and making dropdown menus and rollover lists in key navigational areas. Merchants are also investing in customer service features, with 33% adding more live chats, and 53% enhancing the checkout process. In 2006, online customer acquisition tactics continued to be the top marketing priority, getting 51% of the marketing dollars. Retailers spent an additional 24% of marketing budgets on online customer retention programs. And retailers say paid search remains the most effective way to acquire customers, and e-mail alerts--used by 73% of retailers--the cheapest, most effective tool for customer retention. One of the survey's major findings is that retailers are becoming more fluent in selling across channels and of total marketing spend, 18% is now directed toward driving cross-channel sales, up from 13% in the prior year. And it's working: Respondents say 43% of catalog customers have also purchased from their online store and that 35% of online customers have also gone into an actual retail location. Direct mail continues to be a favorite weapon, with 66% of the respondents saying they "measure the success of a catalog by how it increases Web sales."
Celestial Seasonings, the Boulder, Colo.-based tea maker that staked its corner of the market as the un-caffeine, is moving into--let's all breathe--coffee. The brand, known for herbaceous/citric blends of tea with whimsical names and colorful boxes adorned with New Age art and anecdotes, is rolling out a line of organic, gourmet whole bean coffees. The effort is part of a global rebranding--the company's first in its 40-plus-year history--that includes new packaging and a revamped logo. While the new boxes still have the wildly colorful artwork and the quotes, the new packaging will be more focused on what's inside the box and is meant to reflect a new brand theme, "tantalizing adventures for the senses." "We did extensive quantitative and qualitative research and found that we weren't emphasizing key elements, and that was causing some confusion," says David Ziegert, acting general manager. Ziegert tells Marketing Daily that in addition to emphasizing the logo, the flavor name for each tea is now on the same spot on every package--the top--with modernized artwork that emphasizes the flavors. Ingredients get top billing, with depictions of berries and herbs supplanting gods, heroes and other mythic images. Packaging for Raspberry Zinger tea, will, for example, show raspberries springing from the ocean. Honey Lemon Ginseng Green Tea will swap out the warrior for lemons and honey flowing down a river. Chamomile tea will swap out the lady in pink for chamomile flowers. "Everything goes back to the cornerstone message: From marketing campaigns and new-product initiatives to every box, it's about tantalizing adventures for the senses," he says. "Taste is relevant but so is visual appeal." Ziegert says a print advertising and point-of-purchase effort begins next month with ads slated for wellness and lifestyle books like Real Simple, Prevention, Food and Wine and Natural Health. In-store programs include product samplings, brochures and displays. There's also a program with Curves Health and Fitness, a global franchise. At the health club for women, Celestial will distribute one million samples and brochures explaining the redesign and emphasizing that the tea isn't changing. The company's expansion into coffees will initially comprise five SKUs: Morning Thunder, Decaf Morning Thunder, Fresh Roastaroma, Caramel Mocha and Vanilla Hazelnut, which Ziegert says will be USDA-Certified Organic and Fair Trade-Certified. They will be on sale this fall with suggested price of $10. The launch will be supported by PR, point of purchase, coupons and a dedicated Web site, celestialseasoningscoffee.com. Ziegert says that the coffee program will not undermine the brand's established position in herbal non-caffeinated teas, a category it created and popularized in the U.S. "I think what we have found and what we know to be true is [that] it's a great opportunity. Celestial Seasonings is closely affiliated with decaffeinated teas, but we are perceived as leader and innovator in the hot brewed beverages. When we have done the research and spoken to consumers, there are a lot of tea drinkers who also drink coffee. It is a very easy bridge to build to leverage the brand into the [coffee] market," he says. He adds that Celestial's point of differentiation will be that all five SKUs will be organic and fair trade-certified and also shade grown, which preserves surrounding habitats. And the packaging will be in 12-ounce resealable bags. He says distribution, starting late October, will be in mass, natural food and specialty stores where coffee is found, supported by consumer initiatives.