Mercedes-Benz is separating its iconic three-pointed star logo from its name. That's the most obvious visual change the German automaker is instigating worldwide on Nov. 1. It is the first major revision of Mercedes-Benz brand identity in 18 years, per the company, which recently divorced itself from Chrysler. The new look will appear in European-market advertising for the 2008 C-Class sedan and Estate wagon, and in the U.S. next year. The effort, which also includes a transformation of the three-star logo from a three-dimensional visual to a two-dimensional shape, affects both Mercedes passenger cars and commercial vehicles. The company says the change, which reflects a "more sharply focused brand positioning" program begun last year, will be reflected in advertising as well as corporate communications generally. Specifically, the star will now always appear atop creative executions and communications, with the Mercedes-Benz name on the bottom. Both will appear in what the company calls "arrow silver," with the positioning reflecting a new corporate mantra, "The Star always shines from above." The company also says that henceforth, advertising for Mercedes globally will adhere to a kind of creative template, in which images of automobiles will prevail in settings around architecture, people and landscapes. Per a company release, advertising will feature "generous compositions" with unusual perspectives and lighting. Says a company release: "Vitality and dynamism are major components of the visual idiom as are the inventive use of focal depth and unfocused images." The forthcoming European-market ads follow the new theme. Ads for the C-Class show the vehicle up close--as it appears to be speeding along a causeway past the viewer, away from a sun-dappled series of waterways and islands, with mountains ranging in the background under lowering clouds, suggesting the drama of Albert Bierstadt's nature paintings. Another, for the C-Class Estate wagon, sets the vehicle in a sere Aegean landscape, on what looks to be the set of a Greek dramatic tragedy, complete with chorus. The company is also installing a retail strategy, including a color scheme for dealership signage in "midnight blue." The redesign was developed in-house and with the agency Claus Koch Identity GmbH. "The new brand identity of Mercedes-Benz revives our entire presence and ensures an unmistakable image which combines tradition with a future-oriented approach," says Klaus Maier, executive vice president/Mercedes Car Group, responsible for sales and marketing, in a release. Says Olaf Gottgens, vice president/brand communications, Mercedes-Benz Cars: "The image that has established our brand identity over the decades is and remains the star. In the future, we will be featuring this even more prominently, where it is visible to our customers." Donna Boland, spokesperson at the company's U.S. arm in Montvale, N.J., says the move has nothing to do with recent changes in Daimler's corporate structure. "This is something that historically, we have done from time to time, to refresh and sharpen the brand profile; it is necessary when you have an iconic brand that is among the top ten most recognized brands in the world." She adds that Mercedes-Benz USA* will begin refreshing to the new look next year--not under an enforced time frame, but "as an area redoes banners, dealership materials. We are not going to pull everything out at once." Separating the logo from the text may make sense given the universal recognition among consumers of the brand. "My first instinct was, why do they need to do it?" says Wes Brown, automotive guru at Iceology. "But then, it's a symbol everyone knows. For customers and non-customers alike, that silver-pointed star is arguably the strongest emotional connection, and if that is what pulls people in, if that's what they connect with, why not make it front and center?" * Editor's note: The story was amended post publication.
During its fall conference in Chicago, which wraps up today, the Direct Marketing Association officially announced three additional direct mail practices now required of its members. The guidelines are part of DMA's new "Commitment to Consumer Choice" (CCC) program, which aims to enhance consumers' control of the direct mail they receive. DMA has, of course, long offered its central Mail Preference Service (MPS) enabling consumers to opt out of promotional mail from all DMA members, or mail from individual member companies (as well as e-mail and telephone preference services). But given the waves of legislation emanating from states - this year, "do not mail" bills were proposed in 15 states and data security bills in 38 states, for example - DMA president John Greco stressed that making mail choice more readily available and easier to activate by the consumer is clearly in the industry's best interests. DMA efforts have prevented passage of such bills, but the industry faces increasingly serious threats to self-regulation from green, privacy and other activist groups exerting pressure on legislators, he said. And as some marketers point out, the National Do Not Call Registry and CAN SPAM Act are prime examples of self-regulation being taken out of business's hands. The new CCC guidelines require that members: * Include on every piece of commercial solicitation mail sent to both customers and prospects a notice apprising consumers of the opportunity to "modify the receipt of future mail solicitations." The notice statement must include a reference to the option of eliminating future commercial mailings from the company, but marketers may choose their own wording and may also opt to include other options, such as reducing the number of mailings received from the company. The choice statement need not act as an actual opt-out vehicle, though some mailers may choose to go that route. Many are likely to use the notice to refer consumers to a Web site (or phone number) where consumers can manage their options. While this guideline and the others take effect immediately, and direct marketers are being urged to implement the notice requirement as soon as possible, the DMA will delay beginning its "systematic monitoring process" for the notice requirement for a year to enable marketers to test wording and implement the notices, according to Steven K. Berry, DMA's EVP, government affairs and corporate responsibility. * Disclose, upon request by a consumer, the source from which the direct marketer obtained personally identifiable data about that consumer. * Use the DMA's Mail Preference Service (MPS) file every month (previously, the requirement was quarterly use), so that a consumer's request for in-house suppression is honored within 30 days. DMA members must also continue to refrain from mailing the consumer for a minimum of three years from the date the request is received. Direct marketers interviewed by Marketing Daily uniformly said that the CCC source disclosure and monthly MPS usage requirements present little or no problem. Several said they already have these practices in place, and some voluntarily make it a policy to stop mailings for five years to customers who have opted out. But direct marketers do report that the notice requirement is raising concerns about potential impacts on response; extending proactive mail opt-out options that many now provide to customers to prospects, as well; and working out logistical issues. "No one wants to mail to people who don't want our mail, but changing anything on a control package can affect response," says one marketing executive. "We can try to minimize the impact with testing, but I wish there was a less onerous way to achieve this goal." Another direct marketer confirms that her company views the notice requirement as necessary and will start testing wording early next year and be ready for roll-out by the Oct. 15, 2008 enforcement deadline. However, she adds that many questions arise, ranging from how individual marketers will ensure that service bureaus can get all opt-outs/preferences coming in both directly and through the DMA onto files efficiently, to dealing with areas of potential consumer/marketer confusion such as consumers providing conflicting preference instructions or being irritated by continuing to receive non-promotional mail after ordering a product but also opting out of getting future solicitation mail from a company. Still, since all members will be required to demonstrate CCC understanding and compliance by completing an orientation and training program, there should be time to answer questions and work through issues. Some direct marketers say that whatever is involved in achieving compliance, it is unimportant in the context of the dynamics driving the CCC. "We're in an age where consumers have lots of control, and we need to be responsive to their preferences every step of the way," says Harte-Hanks Inc. spokesperson Chet Dalzell. "Marketers claim and seek to be customer-centric, and if that's the case, we need to walk the talk. Marketers do communicate with customers about preferences and respect these, but it's important to extend this to prospects-and demonstrate our complete commitment to consumer choice to the regulators." "Time Inc. supports the DMA commitment to choice," says Brian Wolfe, president of consumer marketing for the company and a DMA board member. "Any policy that makes it clearer to consumers how not to receive mail that they do not want is a policy that we support."
Whirlpool has launched what it describes as its most ambitious laundry product to date, a washer/dryer system specifically designed to dispense OxiClean stain remover. Billing it as "the next generation" in cleaning technology, Whirlpool's new Aspen Green Duet Steam washer is believed to be the first appliance manufactured with a specific laundry product in mind, says a Whirlpool spokesperson. "Whirlpool is a brand based on consumer insight, and in this case, consumers were very clear," she says. "They love OxiClean." So the new Duet Steam is designed to add OxiClean stain remover at the optimum time in the wash cycle. OxiClean has 30.1% of the stain remover market, she says, and 52% of those who use it add it to the wash. (The Church & Dwight product can also be used to pretreat stains.) The launch, however, comes at a tough time for the industry. With real-estate woes across the country affecting both home sales and remodeling plans, the Association of Home Appliance Manufacturers (AHAM) reports that factory shipments for the "Big Six" appliances--washers, dryers, dishwashers, refrigerators, freezers, and ranges ovens--are down 5.3 % so far this year. But washers tend to sell somewhat better than other appliances, says Jill Notini, director of marketing for AHAM. "Over a five-year period, appliance sales are up 19%, while washers are up 21%, driven by new features that stress convenience, such as specialized detergent reservoirs and energy-saving technology." The Duet's use of steam is also likely to appeal to consumers. "Steam is a relatively new feature making its way into products, and it's definitely getting a lot of hype," says Notini. A significant change in the appliance industry has been that consumers are less likely to wait until their old machines conk out to replace them, she says. "People are trading up sooner," she says. Color--like Whirlpool's natural-looking green in this launch--seems to be a big part of that. "Laundry is making its way out of the bowels of the home," says the Whirlpool spokesperson, with 55% of laundry rooms now on the first floor and 12% on the second floor. That means laundry appliances have to make something of a style statement, too. That's not only true in new homes, says the spokesperson, but also in remodels. She adds that both Whirlpool and its Maytag brands will begin rolling out more color products in the future to address that need. Marketing plans have targeted home editors, and included a PR satellite tour with "Dirty Jobs'" creator Mike Rowe. And obviously, it provides a bit of a plug for OxiClean. "When people go out to buy a new washer and see this feature, says Craig Sheehan, group product manager for Church & Dwight, "this may really interest consumers who haven't tried OxiClean yet."
More than 65 million consumers will open deposit accounts online in 2012--representing a 280% increase from the current level of 23 million, according to a report from Javelin Strategy & Research. The five-year increase is a result of increased consumer willingness to adapt to new technology, and a readiness among financial institutions to expand offerings. Financial institutions must enhance existing online account opening systems to take advantage of deposit acquisition, customer retention opportunities, and huge cost savings that will materialize through the exponential growth in online account opening. Banks that are ready for the demand will experience increased retention and services per household among existing customers, and will accelerate acquisition of new customers at one fourth the cost of offline acquisition, according to the Pleasanton, Calif.-based Javelin. Banks and credit unions need to focus on product as well as process to grow online account openings, however, says Jean M. Garascia, an associate analyst and the report's author. A competitively priced, basic product coupled with a simple, secure and immediate online account opening and funding process will enable financial institutions to compete with the "direct banks" that currently lead in this arena. Suggested improvements include shorter application forms, real-time security and identity authentication, and immediate funding of accounts through multiple means. The availability of simple products designed for the online channel is vital to retaining and expanding relationships with existing customers and acquiring new customers through online account opening, Garascia tells Marketing Daily. These accounts have basic terms that can be easily understood online and offer attractive benefits that "offline" products may not, such as zero minimum balances, fee free accounts, and high-yields for savings and checking. While the number of deposit accounts opened online leveled off between 2006 and 2007, projected growth will be funded by strongly rising consumer demand coupled with attractive product offerings in a simplified online account opening process, Garascia says. This combination of process and product will increase acquisition of new customers and retain existing customers who currently are being enticed to open attractive online accounts elsewhere. All financial institutions interviewed claim increases in total accounts opened per year since implementing a "straight-through" online account opening process allowing consumers to open and fund accounts in a single session. While growth has varied across different institutions, those who combine competitive product offerings with straight-through online account openings have experienced net growth in deposits from 3% to 15% since implementation. The increase in online banking will not render traditional banking obsolete. Conversely, it should be viewed as a technology that complements the efficiency of employees and the level of service they are able to provide new customers. The use of online account opening technology frees up more time for the branch or customer service representative to adopt the role of a personal banker who can offer a more customized new account on-boarding experience, and focus on setting up online services or cross-selling other products, such as online banking and bill payment.
National pest-control company Orkin, a division of Atlanta-based Rollins, Inc., is relieving the Orkin Man of his duties. The character, named Ned and played by actor Wayne Thomas Yorke, is being phased out after a four-year stint. The change comes with Orkin's signing Dallas-based The Richards Group as AOR in mid-September after a four-month review. The agency replaces J. Walter Thompson, Atlanta. Kevin Smith, CMO for the company, says that while the actor may be exiting, the character--who in one form or another has been central to advertising for years--will not. "We would never retire the Orkin Man; it's sort of a deliberate rethink," he says. "We have used lots of different actors and characters, from a robot to thousands of Orkin men in an Orkin army, so we think we want to have an ability to expand or portray the character in other ways. And I wanted to make sure [The Richards Group] has creative flexibility." He says that the creative evolution will be toward a message that appeals to younger consumers concerned about issues like diseases and environmental responsibility. "I think it's a combination of looking toward a new generation and reinforcing the brand. What was important then is different today; so our message needs to move." He says Orkin will probably debut its first work from The Richards Group with the start of the bug season, at around the end of the first quarter next year. Smith says that Terminix is the other big player in the sector. However, the size of the field--there are roughly 19,000 pest-control companies--means Orkin really competes with smaller local companies, as well.
It's the staff, stupid. But it's also the merchandise, and price. A new study by consultancy J.D. Power & Associates says the courtesy of sales associates has a huge influence on consumers' overall department store experience, particularly with more upscale stores. The firm recently completed its first study in the area of customer satisfaction at department stores. The "2007 Department Store Experience Study" is based on responses from 5,877 consumers in Atlanta, Los Angeles and New York. In the Atlanta metro area, Nordstrom ranked highest in customer satisfaction among upscale stores. Kohl's was highest among mid-sized department stores, followed by Dillard's and Macy's, which tied. Nordstrom was also highest in Los Angeles, with Macy's ranking highest among mid-sized stores. In New York, Neiman Marcus ranked highest among upscale stores, with JC Penney highest among mid-level stores. Michael De Vere, executive director of emerging industries at JD Power, says courtesy and friendliness account for 31% of the consultancy's measure of consumer satisfaction in upscale stores, with availability of sales staff and speed comprising 19%. "While it always comes back to merchandise, sales staff is key," he says, adding that Nordstrom scored high on facility, merchandise, sales staff and general price. "In comparing Nordstrom, they were best in all four factors, and sales staff measures were huge for them." The study shows that upscale department store shoppers liked the availability of exclusive brands and customer service at Nordstrom's in Atlanta and Los Angeles, and at Neiman Marcus in New York. De Vere says midscale-store shoppers are--perhaps not surprisingly--more interested in price and value, as well as with selections of brands and fashions, areas in which JCPenney, Kohl's and Macy's succeed in metropolitan areas, per the study. The study also finds that consumers who frequent mid- and upper-end stores also shop down-market stores. Per the consultancy, 4 in 10 upscale store customers say they shopped at the midscale department store Macy's before making a purchase at an upscale store; and midscale department-store shoppers say they also shopped discount stores like Target but made their purchases at a midscale department stores. De Vere says the up- and down-market movement of consumers is blending segments of the market. And he says there is a silver lining in the fact that upscale consumers are dabbling in mid-school stores, but not purchasing. "Over half of [upscale] consumers are stating that they couldn't find the merchandise they were looking for, but that's not a rejection of the store. Macy's clearly sees the opportunity. And, if they spend their ad dollar to get that traffic in there, it's only a question of time." Macy's has, in fact, launched a campaign promoting the store as a one-stop shop for Sean Jean, Martha Stewart, Usher, and other premium labels, with TV spots featuring the aforementioned who appear in their own sections of Macy's touting their products. "Macy's right now is pushing to claim superiority, from the merchandise standpoint," says De Vere. "We had consumers rate various brands on image; consumers see a Macy's and JCPenney and Kohl's as very similar from brand image. What Macy's is trying to do is say 'we carry some designer brands.' If you think about where their target is, one could speculate they will be short of Saks or Neiman Marcus, but right in a sweet spot." He says mid-level stores like Macy's have no choice but to move up, since they are feeling pressure with one out of ten of their customers going to Target first. Other findings: consumers who shop at a midscale department store before making a purchase at an upscale store spend an average of $109 per visit and $2,393 annually on apparel, while customers who shop at an upscale store before purchasing at a midscale store spend an average of $249 per visit and $4,011 annually on apparel. Consumers, per the study, are also becoming more concerned about conservation, with about 45% of upscale store customers and 30% of midscale customers--and particularly those 40 years old and younger--saying that they would like their department store to offer a designer shopping bag that is reusable. And the best way for stores to undermine customer satisfaction is to make them wait in line, unless the store's in Los Angeles. Per JD Power, a wait of more than four minutes at the cashier lowers satisfaction, declining 42 points in Atlanta and 44 points in New York (on a 1,000 point scale). In Los Angeles, consumers are more patient, per the consultancy. Satisfaction declines by an average of 22 points among shoppers in Los Angeles who wait longer than five minutes to check out.