Even as companies have begun to shell out more money to market products and services to reach consumers with tighter purse strings, their marketing departments are facing major hurdles to getting the job done, a new survey finds. For one thing, the survey of nearly 400 Marketing Executives Networking Group (MENG) members suggests, more than 70% believe there is a shortage of qualified executive-level talent. MENG President Richard Guha says companies are shifting employees from other areas into marketing or sitting on job vacancies. "I know companies that have not had a chief marketing officer for two years because they can't find someone," he says. "The alternative has been to rely on consultants." The financial and the energy sectors, which have not historically spent a lot of money to market consumer services, are stepping up efforts. Guha says many are not finding the marketing people with sufficient experience to execute plans. The electronics industry has also fallen on difficult times. Many up-and-coming marketing professionals who would have been executives today were laid off in early 2000, following the burst of the dot-com bubble. Chase Norlin--CEO at video search engine Pixsy, who has served as senior business development executive at ValueClick--worked at an early YouTube-like startup, ShareYourWorld, founded in 1998. Norlin says the sexy dot-coms attracted professionals into marketing, but when the bubble burst many returned to the industries they came from. "There's always a shortage of the best marketing people, especially in tech," he adds. Guha says companies also have not considered the effects on the marketing industry as Baby Boomers retire. MENG also partnered with Salary.com to survey marketing salary trends. It found salary parity despite 2006 U.S. Department of Labor statistics that show women made 66.5% of what men made in marketing executive jobs. That's the good news. But the average tenure of these executives is another thing. "It's disturbing that the average person these days is in a job for 2.5 years," Guha says. "Very few people join a company saying in a year or two I'll move on. It takes more than a year just to get familiar with the job and the company." Guha says marketing professionals get the least amount of time to learn a company business, and in many ways they need the most to fully understand the brand's position. Too often, he says, companies bring on competent staff and don't give them the time to figure out the business. In most cases the executives are brought in to turn around a failing business. If the business doesn't pick up, they are pushed out the door. "We know the average time a chief marketing officer spends in any position is 22 months, and the study suggests many marketing executives have just under eight jobs in about 18 years," he says. "That's quite horrifying."
There's plenty to be perky about at Mattel these days. On the heels of a massive legal victory against Bratz, Barbie's nemesis, the company reported strong second-quarter sales, buoyed by toys pinned to "Batman: The Dark Knight." The toy marketer says worldwide net sales gained 11% in the second quarter to $1.11 billion, while U.S. sales gained 3%. Global sales at both Fisher-Price and American Girl--which got a big boost from new stores and the Kit Kittredge movie--jumped 10%; Hot Wheels achieved a 5% increase. Net income for the El Segundo, Calif.-based company fell to $11.8 million, compared to last year's second-quarter net income of $22.8 million. "We expected the positive contribution from toys tied to the summer entertainment properties 'Batman: The Dark Knight,' 'Speed Racer' and 'Kung Fu Panda'," the company says in its release. "And we also achieved nice growth in several of our key core brands. International markets continue to lead the way, but the U.S. business also posted solid performance in the quarter." And if predictions for Warner Bros.' "The Dark Knight" pan out, the latest Batman sequel toys will provide plenty of continuing coattails for product tie-ins. Variety, for example, reports that the film has a shot at opening as high as Disney's 2006 "Pirates of the Caribbean: Dead Man's Chest," with $218.4 million. Mattel's Barbie, however, is still in a major midlife crisis, with worldwide sales on Barbie products sliding 6%. But Mattel won a major victory over MGA Entertainment, which markets Bratz. A federal court ruled that the majority of Bratz design drawings, prototypes and sculpts were created by a doll designer while he was employed by Mattel. In the trial's next phase, Mattel says, the same jury will be asked to rule whether Bratz dolls actually infringe on the drawings that are now owned by Mattel. If so, jurors will then determine the amount of damages due Mattel.
Even an increasingly scary economy and soaring coffee prices are not going to make most Americans consider cold-turkey withdrawal from their beloved coffeehouses or favorite fast-food brew purveyors. Still, small behavior changes a major large impact on the coffee market, and current economic pressures are expected to drive consumers to brew more of their premium coffee at home and/or choose less extravagant out-of-home coffees. The result: While the food service sector will maintain its lion's share of coffee dollars, retail-purchased coffee's growth rate will slightly outpace food service's over the next five years. That's one trend among many now percolating within the coffee market, according to the latest study on the sector from Packaged Foods (PF), "Coffee in the U.S.: Retail, Foodservice and Consumer Trends." According to PF, total food service and retail coffee sales, driven in no small part by rising prices, rose 11% to $43.9 billion last year. During 2003-07, total sales experienced compound annual growth of 9.7%, outperforming PF's February '06 prediction of 6.9% for the 2005 to 2010 period. Although three out of four cups of coffee are already made at home, according to the National Coffee Association, food service's starkly higher price to the consumer has long meant that out-of-home dollar sales dwarf retail's. And until last year, food service was increasing its share. Food service-sold coffee sales grew at a compound annual rate of 10.4% between 2003 and 2007, to exceed $38 billion and account for 87% of the total market-up from 84.8% in 2003. During the same period, retail coffee brands had a CAGR of just 5.3%. Last year, retail's nearly $5.7 billion represented 13% of the total market, down from 15.2% in 2003. But while PF projects that food service will grow by about 36% to nearly $52 billion by 2012, that means it will retain its current 87% share of a projected total of $59.4 billion, rather than continue to grow share. That's because retail sales are expected to grow a bit faster--by nearly 37%--to reach $7.8 billion and hold onto their 13% share. Sales of packaged coffee in supermarkets, drugstores and mass merchandisers (excluding Wal-Mart) as tracked by Information Resources, Inc. (IRI) increased 5% during the 52 weeks ending April 20 to $3.6 billion. This was a slight bump in performance from packaged coffee's 4.8% increase for full-year 2007 and its 4.9% CAGR for the 2003 to 2007 period, PF points out. In addition to economic jitters, retail coffee sales are benefiting from the growing number of premium food service-branded varieties now available at supermarkets and other mass retail outlets. Packaged coffee marketers and retailers--in a "if you can't beat 'em, join 'em" move--are increasingly combining forces with the food service leaders. Cross-branding food service coffee brands for retail distribution has been particularly successful for Starbucks' marketing partners, PF notes. Kraft has hit brown gold with ground/whole bean Starbucks and (Starbucks-owned) Seattle's Best retail versions, and PepsiCo is cleaning up on the bottled/canned ready-to-drink side (Frappuccino, DoubleShot and Starbucks iced coffee). More recently, quick-service coffee leader Dunkin' Donuts and Procter & Gamble have been flooding U.S. grocery stores and warehouse clubs with packaged, premium DD coffees. Meanwhile, the nation's second-largest coffeehouse chain--Minneapolis, Minn.-based Caribou Coffee--is partnering to expand its packaged beans into supermarket chains in the Northeast and Southeast, and launching a line of branded premium RTD coffees with Coca-Cola. In addition to pushing food service-label packaged varieties, a growing number of supermarket and other retailers are installing coffeehouse-branded kiosks and coffee bars, including Starbucks, Seattle's Best and Peet's Coffee & Tea, Inc. The report also details the competitive coffee scenario and growth-driving trends such as specialty/upscale, organic/natural, single-serve, fair trade and functional (health/wellness/energy claims) and hybrid coffee/energy drink varieties.
Remember the Metro? The Prizm? Ford Festiva? Neon? Those mid-1990's compact cars, long thought extinct, are returning to life. The boom in the market for cars like Toyota's Prius, Honda's Civic and anything small and fuel-efficient has created the new booming market for used compact cars. It seems that the reputations of those cars as less than safe, which ultimately led (along with cheap gas) to their downfall and the rise of SUVs, is not as big an issue. Cars.com, the shopping and research site, reports a big increase in searches on the site for economy cars built in the mid- to-late-'90s. Per the site, the Geo Metro and Geo Prizm have seen consumer searches rise by more than 200% versus last year. Increased demand has also driven up prices for such cars that, say, six years ago could have been had for a grand. Geo Metros from the mid-'90s, which have a book value of around $1,300 are listed for sale on Cars.com for north of $4,000. The firm says these earlier subcompact cars get good gas mileage precisely because they are small, lightweight and simple--which also means they aren't as safe. "Comparable small cars from the past several years are designed to be safer, and the field as a whole is more reliable than it was 10 years ago," says the firm.
Mercedes-Benz is using title sponsorship of Miami's Mercedes-Benz Fashion Week to do its own fashion-related events at the city's Raleigh Hotel. The company ran a swimwear design show this weekend featuring 15 designers, with Red Carter as "Mercedes-Benz Presents Designer for Swim 2009." The hotel will also have a branded lounge, "Mercedes-Benz Star Lounge," hosting various fashion-show events by invitation only. Mercedes-Benz will also have a "beauty retreat" in private cabanas alongside the hotel's pool. Mercedes will display vehicles like the SLK, SLR Roadster, C63 AMG and SL Roadster at the hotel. The company is title sponsor of Fashion Week in New York, Los Angeles, Mexico City, Berlin and Miami. Starting next year, Mercedes will also have title sponsorship of Stockholm Fashion Week by Berns. This summer, Mercedes-Benz was creator and title sponsor of "Young Fashion Industry Award at Stockholm Fashion Week." "Mercedes-Benz Fashion Week Berlin," Germany's only internationally ranked fashion event, was founded last year by the automaker. Mercedes-Benz has title-sponsoring rights for the twice-a-year event until 2011; the summer show is happening this month. The Montvale, N.J.-based U.S. sales arm of Mercedes became sponsor of New York's Fashion Week in 2001--the year the show, produced by 7th on Sixth, was brought under the aegis of sports and lifestyle marketing firm IMG, which acquired 7th on Sixth from the Council of Fashion Designers of America. The council created 7th on Sixth in 1993. Like other luxury automakers, Mercedes-Benz, saw sales hurt last month from high gasoline prices. The company sold 19,576 cars and trucks in June, versus 19,589 during the month last year. Still, Mercedes' overall sales are up 10.5% in the first six months to 130,678 vehicles.
Coca-Cola is launching a six-city, invitation-only music tour featuring hip-hop artist Lupe Fiasco. The "Coca-Cola Refresh Your Flow Tour," which began last Thursday in L.A., aims to attract teens 13-17. The series, developed by the Atlanta-based company, will visit music venues in Philadelphia, Atlanta, Chicago, Washington, D.C., and New York. Tickets to the show are free and can be had only from radio stations in markets the tour visits, as well as from participating retailers and Coca-Cola street teams traveling to teen hot spots throughout the cities. In addition, select Boys & Girls Clubs in each market will distribute tickets to Club teens. Yolanda White, assistant vice president, African American Marketing, Coca-Cola North America, says the company has been marketing to African-American consumers for half a century. "In 2008, our overall marketing efforts have increased for African-Americans and multicultural consumers," she says. The company will have branding and products at concerts, including "Coca-Cola City" backdrops on the stages to Coca-Cola beverages. "The concert venues are set with multiple experiences that allow teens to interact with the brand," she says. The tour is being supported with limited-edition packaging (aluminum and vintage), a digital sweepstakes with leading retailers to win music prizes on mycoke.com. Consumers can also view hip-hop videos and vie for music-related awards on mycokerewards.com. "We also have ads in VIBE magazine, on BET.com and urban radio. In the marketplace, we have street teams sampling our products at teen hot spots in cities across the country," she says. "The focus for our overall African-American marketing platform is across multiple Coca-Cola brands. For the Coca-Cola Refresh Your Flow Tour, the focus is primarily on Coca-Cola Classic."
TitleM/FSalary Marketing DirectorF$150,000 Marketing DirectorM$130,000 VP MarketingF$190,000 VP Marketing M$185,000 Top Division Marketing ExecF$185,000 Top Division Marketing ExecM$175,500 Of the 397 respondents, the average number of years of experience was nearly 18 with 6.37 of those years in the current job. They have worked for 5.4 companies and held nearly 8 jobs. More than 80% have direct reports, more than 35% have more than five direct reports. Sixty-three percent work for private companies and the rest for public firms. Source: Salary.com