Land Rover is launching a national advertising campaign to tout the brand's adventure heritage while promoting the brand's LR3 and LR2 SUVs. The campaign, which breaks next month, features outdoor, print and TV ads using real people who are framed as "experts" who use Land Rover vehicles in specialized environments. The effort is timed with the brand's 60th anniversary next month, but doesn't allude to it directly. Finbar McFall, VP marketing at the Irvine, Calif.-based Ford division (soon to be sold), says the campaign addresses Land Rover's need to build brand awareness in the U.S. "We have lots of data we track; we are doing a very good job, our figures are at an all-time high. But if you dig deeper, our qualitative research shows inconsistencies," he says. "The Range Rover vehicle is better understood by Americans than the brand. We want to spread the Land Rover word." He says the effort will use an off-road expertise message to promote LR2 and LR3 on the regional dealer-group level with two 30-second TV ads to run in local markets. There will also be magazine, billboard, metro radio and viral marketing elements. McFall says that the creative strategy was to make sure that if consumers see only one element of the campaign--be it a print ad or billboard--they will get the message. "With most integrated advertising you have to see it all together to get the message. What we want to do is go deeper in each area so if you just see print or digital you will get it." Print ads, for instance, are more text-and-image-heavy than usual, with a main theme and photo, and a section at the top featuring an explorer like Ranulph Fiennes, the Red Cross, or UN Peacekeepers, or a satellite photo of their locale. Headlines for print include "The official vehicle of very official things," "Beautiful in ugly situations" and "There's only one way to find out if your vaccinations really work." McFall says the TV spots aren't complete, but they will borrow elements of a film the company has been showing dealers. The film shows archival footage of Land Rover vehicles in the outback and jungle through the years and clips off of YouTube of current owners. "There's a serious and fun side," he says. The company yesterday kicked off the campaign with belly bands around The Wall Street Journal. Outdoor efforts will include billboards that appear to have been deliberately tilted to a 45-degree angle so the Land Rover vehicle in the photo is on a steep incline. Digital includes a Google Earth-like world map within Land Rover's U.S. Web site, that lets site visitors choose different countries or regions to find out what Land Rover is doing there. "We want people to realize that Land Rover is a global brand," says McFall, who says the effort will run through the year. "You will see it change slightly over time, starting with a very clear brand message. Once that's established, it will become more product specific. One of the mantras of our company is authenticity. Stories are there to be told."
In some ways, the revelation that Hannaford, a regional supermarket chain, allowed 4.2 million of its customers' credit-card numbers to slip into the hands of data thieves isn't a big deal. After all, consumers are getting used to the idea that paying with plastic at any retailer presents a growing risk. Back in 2006, for example, thieves swiped 94 million credit-card numbers from TJX, owner of T.J. Maxx. But experts say consumers' growing concern that retailers are careless with their cards is eroding their trust. In fact, the idea that all stores are equally vulnerable means the thieves aren't just stealing data, they're also siphoning off stores' brand identity. The latest breach involves Hannaford, with 1,500 stores throughout New England, as well as the Sweetbay chain in Florida. (Both are owned by Belgium's Delhaize Group SA.) "These thefts zap trust," says Ken Banks, of KAB Consulting, a marketing and brand consultant in Seminole, Fla. "If people feel they can't trust a store with basic financial transactions, why should they trust it on anything? Sweetbay, for example, has been trying to establish itself a low-price alternative to Publix. But this may make shoppers think: 'Can I trust that their prices really are lower?' A data theft makes shoppers think a store isn't as buttoned-down as it needs to be, across the board." Often, shoppers are right to think the worst of stores. "Retailers have not been doing their part," says Bruce E. Spitzer, a spokesperson for the Massachusetts Bankers Association, which sued TJX after its breach. "And that's causing a major reputation issue for banks," he says, since consumers often get angry at bank that issued the card, rather than the store that didn't guard transaction data carefully enough. In some ways, he says, the situation is improving. When the MBA sued TJX last year, he says, only 40% of retailers were meeting adequate security standards. "By the time we settled that suit, that number had grown to 70%. More and more, retailers are thinking: 'There but for the grace of God go we,' and are willing to spend the money needed to upgrade their security systems." And to be sure, retailers aren't the only ones with security issues. While TJX's breach remains the largest, there have also been massive thefts at banks (Citibank lost track of 30 million records in 2005), brokers (TD Ameritrade exposed 6.3 million people last September) and even government agencies. (A U.S. Department of Veteran Affairs laptop with 26.5 million veterans' Social Security numbers was stolen in 2006.) In fact, the sheer volume increase in thefts may result in another problem--customers reacting to an increasing threat by letting their guard down. A risk, says Spitzer, is that as consumers become increasingly aware that banks, Visa and MasterCard will reimburse them for any fraudulent charges, they may be less vigilant. "Right now, it's just card theft, and it's important for consumers to know they don't have a lot to worry about. But if thieves get more information--Social Security numbers, account numbers, and passwords, it could be full-blown identity theft," he says. So far, Hannaford has said it knows of about 1,800 cases of fraud stemming from the breach, and is warning its customers to be extra careful about reading bank statements. Meanwhile, Banks says retailers need to be on guard for the way data thieves may be robbing them of customer loyalty. "To an extent, shoppers will be forgiving," he says. "They can see these breaches are happening everywhere, and they certainly aren't about to stop using credit and debit cards." But even as retailers work harder to define their stores for consumers, he adds, they need to recognize that data theft can undermine their brand positioning, making them look careless, clueless, or both. It all speaks to the ongoing evaporation of consumer confidence, Spitzer says. "And while some retailers still continue with that 'Customer confidence be damned, and the banks will pick up the costs anyway' attitude, the effect of diminished consumer trust will hurt all of us."
Mark LaNeve, General Motors head of sales and marketing, concedes that this year will be rough. The company focused on its Pontiac division at the N.Y. Auto Show, reinforcing that brand's positioning with a GXP G8 sedan, the Solstice coupe and a truck-like version of the G8, yet to be named. Q: Will this be a lousy year for the auto industry?A: It will be tough, but we are seeing just what we predicted. We feel it is going to be a year that runs a little behind last year. Last year, the industry sold 16.3 million vehicles in the U.S.; in the first two months of the year it was tracking 15.6 million, almost exactly what we thought. We said it would run below 16 [million] in the first half, and above it in the second. With the Bear Stearns thing, we don't feel as confident as we did--but I still think it's going to be roughly below trend but not a huge fall-off. it's still a pretty decent market. Q: You are showing Pontiac vehicles at the show. GM's strategy is to sell Pontiac in dealerships that also sell Buick and GMC. How is that channel strategy faring? A:We currently have 80% of volume of those brands sold through "on channel" dealers--selling all three brands. We have done over 600 dealer projects in the last couple of years--be they buy, sell, or consolidation. We have about 100 projects left of significant size to do, so I would characterize it as three-quarters done. Q: What are the market benefits of putting those brands together? A:The synergy is, you have GMC covering trucks and crossovers, Buick in near premium, and Pontiac as affordable performance: three different price positions in the market, 20 models between the three brands covering 80% of market coverage. It compares very favorably with Nissan and better than Honda and about the same as Chrysler, Jeep and Dodge stores. Q: With Saturn now becoming a full-line brand (rather than the limited-vehicle brand it used to be) is it redundant vis à vis Chevrolet? A:Chevrolet will have a strong, expressive American value aspect to it. Increasingly, Saturn will be "Euro sophistication." Saturn will compete with Volkswagen. That will become real evident. It will be, volume-wise, in the 250,000 to 300,000 unit range, premium to Chevrolet. No--that wasn't Saturn's historic position, which was below Chevy, so we will have to move Saturn up. People say "Do you need both Chevy and Saturn, and I say, "Does the market need VW?" Well, if one of them goes away, it should be VW, not Saturn. We are going to compete head-on with them.
There was at least one reference to the presidential campaign at the auto show press days in New York City yesterday. Mercedes, which devoted its presence to promoting its Bluetec diesel-powered vehicles, used the election theme to say that consumers will--hopefully--vote" for Bluetec when those diesel variants are available in all 50 states later this year. The company says it expects to see 14% diesel penetration in the U.S. by 2017, and that 22% of Mercedes vehicles sold in the U.S. are diesel. Currently 30% of E-Class and 12% of R Class vehicles sold in the U.S. are ordered with diesel. Nissan unveiled the 2009 Maxima, its full-sized sedan that has played second fiddle to the Altima for years. The new version is being promoted as a sports sedan. Al Castignetti, VP and general manager of the Nissan division, says the company's latest vehicle--and 50% of the company's initial volume of its first "supercar", a high-performance sports car, dubbed GT-R--are sold for July delivery. Also coming: the Cube, which Castignetti said was intended for young buyers. BMW is also bringing a raft of new variants to market this year. Tom Purves, CEO and chairman of BMW North America, says that the company this year will introduce "No fewer than 11 completely new models." They include the X6 crossover, a 1-Series coupe and convertible, and a new version of the M3 performance car. He says the goal "in the medium term" is to sell 400,000 vehicles in the U.S. market, which he says is now BMW's most important. General Motors' Pontiac division brings famous New Yorkers to the stand to introduce new vehicles. Last year it was Donald Trump. This year, rapper 50 Cent was ushered up by head of NA design Bob Lutz to talk about three new Pontiac vehicles intended to align to the brand's affordable-performance mantra: The Solstice Coupe, GXP G8 sedan and a El Camino-like car/truck combo. The company is launching a promotion in which consumers are encouraged to go to Pontiac.com/namethatcar and suggest a fitting appellation for the vehicle. Fifty Cent suggested calling it the "Curtis," half seriously.
Economists and financial advisers, it seems, are always telling Americans to save more money. According to new Mintel Comperemedia research, it seems the banks are trying to get you to do it as well. According to the company, 86% of direct mail savings account offers from banks offered rates between 4% and 5% (at least when it came to mailings with advertised rates), compared with 60% of such offers in 2006. Comparatively, an additional 10% promoted rates above 5%. In 2004, 99% of direct mail offers promoted rates of 3% or less, and in 2005, 67% were 3% or below. The rise in rates can be attributed to more competition among banks to secure new customers, says Farah Huq, market research manager at Comperemedia. "It's the new vehicle to lure customers in," Huq tells Marketing Daily. "[They think], hopefully, by getting customers in the bank, they can later sell them a mortgage or some other product." In addition to the high savings rates, the banks are hoping to lure customers with low or no minimum balances (as are required on certificates of deposits) and none of the restrictions that are usually found on money market accounts. According to Mintel Comperemedia's research, 76% of the direct mail offers in 2007 did not list a minimum deposit. Of the ones that did, a third of them required only a $100 minimum balance, while only 5% required $10,000. "These savings accounts could become the new money market or CD accounts," Huq says. "They are offering competitive rates with very few restrictions." The trend toward higher-yield savings accounts began with ING Direct's Orange Savings account. The company has been consistently aggressive with its high-rates promotions in its direct mail campaigns. In 2005, the company promoted rates higher than 3% in just over one-fifth of its mailings. Last year, 99% of the company's direct mail promotions advertised rates above 4%. Since then, more companies--not just banks, but brokerages and other financial services companies--have begun touting higher-yield savings accounts. The competition has become so fierce that many are offering other incentives (such as additional cash for opening an account) to lure customers. "It will be interesting to see where people take their money," Huq says. "I'm sure people will begin looking for the best perks." However, if the economy continues to slow, and the Federal Reserve continues to cut the prime rate, promotions for the high-rate savings accounts may slow down, Huq says. "It will be interesting to see if we're seeing the same high rates in 2008," she says. "It's possible we'll see some drop off in Q2."
HOLLYWOOD, Calif. -- Shoddy creative work is no stranger to TV and print, and it's unfortunately becoming a familiar presence on the Web as well, Los Angeles Creative Club director Roger Poirier says. "Most creative--both online and off--falls flat. We've all seen TV, print and Web ads that suck. I've written some, you've written some, and still others of you have signed off on it and paid for it," Poirier says in opening remarks to the Creative Panel at OMMA Global Hollywood. Still, a number of agencies are creating inventive, effective and aesthetically pleasing online campaigns. Austin, Texas-based T3, for example, did just that when it crafted the JCP Today widget for JCPenney. Aimed at adding branded functionality to the lives of the retailer's 35- to-38-year-old female demo, the widget made it easy to search for clothes and find out about special offers. But it also boasted a calendar feature allowing users to keep track of special events like birthdays--and to receive gift suggestions accordingly. "It showed the users that tech tools and toys are not just for the younger generation," says Jay Suhr, T3's senior vice president of creative services and account planning. JCP Today also served up original advertorial content on a weekly basis, with T3's copywriters working with the retailer's brand managers to come up with fashion tips and articles. "It was like creating our own media channel," Suhr says. "And it was hugely popular with the most loyal customers." He praised its efficiency, saying the average ticket price for purchases via the widget was double the price of the average online purchase. T3 also developed campaigns for the youth brand Arizona Jeans Company, including "Board Builder," a user-generated content effort that launched with the online retailer's spring fashion initiative. Users could customize a surfboard and port it to their Facebook profile, and just two months later, over 3,700 visitors had posted a personalized board. "Creativity doesn't always have to be about the transaction or sale," Suhr says. "It can be just as effective if it gives the audience the ability to engage, share, vote and otherwise create commentary with the brand." At TBWA Chiat Day's Media Arts Lab, coming up with compelling display ads for Apple meant taking a step back from the technology and getting acquainted with the brand's overall strategy. "Apple's brand was built on TV and outdoor--these big, iconic, emotional and impactful mediums," says Zach Leary, Media Arts Lab's director of production. "And we thought about changing the model for the Web, but we had to think about how we could help the campaign evolve and be sustained online--and not at the expense of the work that had been done before." So Media Arts Lab piggybacked on the "I'm a Mac, I'm a PC" TV spots when it came to the display ads, creating the "Leopard is Better and Faster than Vista" and "Don't Give Up on Vista" two-paneled rich media spots that ran on sites like CNET and The Wall Street Journal. Creative placement was also key to the display campaign's success, as the ads ran against content like comprehensive user guides for Vista, as well as the Journal's home page. "It was using online media as mass media, which is somewhat contradictory to the way we view this media as behaving," Leary says. "The Web can be niche and targeted, but it can also be used for mass, broad reach. Of course it costs more, but it's still cool and effective." Leary adds that tech partners were crucial in flawlessly executing a display campaign. "The execution part was difficult, because there were no specs--we just progressively streamed video and there was a lot of Flash 9 work, and local connection stuff to synch two banners together," Leary says. "So we partnered with companies like PointRoll and EyeWonder to make it work."
Two recent news stories from the world of medical research hold significant omens for the less scientific world of advertising media effectiveness. First, the University of Hull, England analyzed the effects on consumers, in six clinical trials, of new-generation antidepressant drugs, incorporating hitherto unpublished data from the manufacturers. Second, scientists from Duke University, North Carolina, and the Massachusetts Institute of Technology in Boston examined the effect of differently priced painkillers on relieving pain. The conclusions are damning stuff. The antidepressant drugs worked no better than a placebo for the majority of patients with moderate depression, and only marginally better for those who were severely depressed. The control group did almost as well on placebos duplicating "more than 80% of the improvement seen in the drugs group." This compares with the placebo effect on pain, which is "about 50% of the response to pain medication." The price of a dummy pain killer psychologically influenced the way patients responded to it. The same pill costing $2.50 worked "far better" than when marked down to 10 cents. In the full-price pill group, 85% felt less pain. In the cut price group, only 61% did. As Camilla Cavendish in the London Times summarized it: "If placebos are so good at relieving pain, and even better at relieving depression, why aren't we studying placebos?" These studies raise two observations about our advertising media effectiveness world and how we value what is offered. First, if we really want to understand the true effects on customers of commercial communications, it's time we got to measuring the effect of different communications. What happens when we don't do it? Too often, we assume that advertising works without applying the discipline of finding out how well business performs in its absence. Second, if media agencies want to be more valued by advertisers, perhaps it's time to stop the media holding companies' pursuit of new business by offering ever-cheaper servicing and begin to get real and charge higher prices for better added value services.