BJ's Wholesale Club says its net income for the second quarter edged up a bit, to $36.5 million, while sales jumped 17.9% to $2.65 billion. Same-store sales results gained 15.5%, a gain that's impressive even given that 8.1% stems from higher gas prices. The company also bucked a big trend among retailers, and told investors it was raising its earnings guidance for fiscal 2008. The Natick, Mass.-based BJ's is not the only warehouse club enjoying increased traffic, as shoppers intensify their efforts to get better deals wherever they can. The number of people who shopped at club stores such as Costco, B.J.'s and Sam's Club increased 3.6% from September 2006 to April 2008, according to a new report from Mediamark Research & Intelligence, while the total adult population increased 1.2% in the same time period. And the number of shoppers with a household income of $75,000 has grown 12%. "Upscale consumers have always been a large part of club stores' customer base," the report says. "It's now clear that a greater number of affluent consumers are being careful with their hard-earned dollars during this economic downturn." Club-store customers are 38% more likely than the average adult to have household incomes of $75,000 or more, 26% more likely to have graduated college, and 32% more likely to hold a job in management, business or finance. They are also 9% more likely to be parents. Overall, MRI says, 39% of all adult shoppers say they have been inside a club in the last six months. Still, even these stores are not immune. Several weeks ago, Costco warned investors that next quarterly earnings, scheduled to be announced in October, will be "well below" its former estimates. But even that, the Issaquah, Wash.-based chain says, is linked to inflationary issues, especially energy costs, adding that the outlook for sales is bullish. "Our comparable sales results remain strong relative to other retailers."
The Olympics aren't even over, but that doesn't mean it's not time to begin thinking about the next sports marketing event. American Express, which has backed the U.S. Open tennis tournament for the past 15 years, is once again prepped to help promote this year's event with several different efforts--including a print, outdoor and online advertising campaign and personalized programming at the event itself. The advertising effort kicked off Thursday with out-of-home placements throughout New York City. The ads feature Venus Williams and James Blake, following the company's well-known "Are you a Cardmember?" theme. "We know these players are well-liked and relevant to the NY area," says Jessica Igoe, director of global sponsorship marketing, tells Marketing Daily: "It's a way to connect with our customers. For us, it gives us a way to stop people in their tracks and say that's cool to look at, and then it highlights the benefits that fans and card members can get on-site." Among other on-site amenities, the company will provide free personal televisions that American Express cardholders can borrow for a day at the Arthur Ashe Stadium and USTA Billie Jean King National Tennis Grounds. Via the televisions, spectators can watch matches on all the courts, as well as access draws, live scoring and player bios. Programming on the sets will also include a channel with Williams, Blake and Billie Jean King sharing their beloved moments of the tournament. Content for that channel will be updated with other players sharing their memories throughout the tournament, Igoe says. "The TVs will have these unique moments as well as be a guide to the Open," Igoe says. "Everything we do on-site is to enhance the fan experience. It's to make the experience better. " For non-cardholders and those who are not in New York for the tournament, the company is also sponsoring Web programming on the USOpen.org site, which will feature hourly updates from the Open, as well as other athletes sharing their memories of the U.S. Open.
Dairy Queen is getting into the panini scene with a new product line called Iron Grilled Sandwiches. The new sandwiches launch nationwide this fall, backed by an integrated campaign via Grey NY launching Monday. Spend was not divulged for the TV, radio, print and outdoor push. Lane Schmiesing, VP/brand marketing at the Minneapolis Dairy Queen International, says the new sandwich lineup will bring in new consumers and redefine the brand for loyalists who think treats when they think DQ. "We think it's going to bring in a new customer and our existing customers for occasions they otherwise don't come to us for, so [the new sandwiches] will increase both frequency and reach." A new spot, breaking Monday on national cable and aimed at female heads of household, per Schmiesing, uses the DQ "spokes-lips"--a pair of rose-red lips that talk (and eat)--to focus on the food. The ads, similar to a previous spot for Dairy Queen's burgers, place the lips between the different Iron Grilled choices; the teeth go for one of the sandwiches, the lips the other. "It really gives us the opportunity to spend the entire time on the sandwiches and fresh ingredients," says Schmiesing. "We are really working on the duality of the brand because that's something unique to DQ: We aren't walking away from treats... but we are trying to establish our credentials [as a full-menu QSR]." The new lineup includes a deli-style turkey with Swiss cheese; a club sandwich with deli-style turkey, ham and cheddar cheese; and the Supreme BLT. Prices range from $2.65 (for kids-menu grilled cheese) to $4.05. In October the company will test-market a chicken bruschetta Iron Grilled Sandwich, grilled chicken, topped with mozzarella cheese, fresh leaf lettuce, diced tomatoes and pesto sauce. Maria Caranfa, director of Menu Insights for Chicago-based market-research firm Mintel, says panini-type sandwiches are growing in popularity at both quick-serve and casual-dining establishments because they appeal to consumers on several fronts. "Hot sandwiches with flat bread give one an option of a smaller snack, a light lunch or dinner on the run; it bridges all of those," she says. "They can be seen as more of a 'knife and fork' meal at a casual restaurant, and a hotter option--both in temperature and trendiness--at QSR restaurants. Flat bread is lower in calories than traditional buns, so the flat-bread sandwiches can be made at a lower calorie point without having to add low-calorie contents." Competitor Dunkin' Donuts has also begun offering flatbread-style breakfast sandwiches. In Restaurant and Institutions' 44th annual sales-based ranking of the top 400 restaurant chains, Dairy Queen-- with $2.5 billion in sales last year from 5,695 stores--was ranked 21st, after Red Lobster and before 7-Eleven. Dunkin' Donuts was ranked 10th, and McDonald's first. Dairy Queen--a division of Omaha, NE-based Berkshire Hathaway-- reports that in 2007, sandwiches were a $21 billion industry, and in 2008 that number is expected to top $28 billion.
BMW's Mini division will extend its international "Creative Use of Space" campaign, touting the brand and the latest addition to the portfolio--the Clubman--with a series of events on a New York City rooftop. The happening will take place on a roof space in the Hell's Kitchen neighborhood that combines a club atmosphere with performance studio, health spa and art space. The space--which includes a fabricated grassy knoll with seating "dimples," performance stage, movement area and bar that overlooks the Hudson River--will host fashion events, music performances, DJ gear, competitions and even yoga classes. It was designed by New York-based architecture firm HWKN. Mini Rooftop NYC--mostly open to the public during its ten days starting September 4--launches with a performance by the band MGMT, sponsored by style magazine Dazed and Confused. The company is promoting the space online at www.MiniSpace.com--which has a MySpace feel to it, complete with videos, various articles and registration for competitions. DJs can vie for an opportunity to perform on the roof, and arts-inclined consumers can submit graphic arts themes for a chance to have their designs on the roofs of Mini Clubman cars to be used as shuttles. The best proposals uploaded to MINIspace.com between August 7th and August 29th, 2008 will be printed on the rooftops of all the MINI Clubman shuttles. Mini is one of several car companies that have established branded clubs and designer environments in New York in recent years to pitch their cars as lifestyle brands. Land Rover, Nissan's Infiniti brand and Toyota's Lexus brand have hosted branded club-like "Pop-up" spaces in the city in recent years. And Audi has something of a permanent installation--one of six international spaces called "Audi Forum"--at 47th and Park Avenue in a former dealership. In 2006, the company used the space to debut the R8 supercar with the Forum as the terminus for a parade down Park Avenue. BMW's Mini division has done well this year--perhaps not surprising, given the booming market for small cars. The company, which sold 6,000 of the Clubman cars year-to-date through July in the U.S., sold 5,063 automobiles in the U.S. last month--a 24.4% increase versus the same month last year. Year-to-date, the division reports total sales of 31,463 automobiles in the U.S., an increase of 32%.
Retailers have gone beyond experimenting with Web 2.0 technologies to using them for full-scale marketing campaigns this back-to-school season in hopes of increasing foot traffic in stores and clicks on Web sites, according to a JupiterResearch analyst. Many retailers host back-to-school promotions for apparel, electronics and more through video game and shopping sites, virtual worlds, social networks and widgets to make kids aware of specific brands. Retailers believe that technology creates one-on-one relationships with young consumers, even as parents struggle to make ends meet. "More retailers have put together extended programs that target today's youth during the back-to-school season," says Patti Freeman Evans, Research Director and Online Retail Analyst at JupiterResearch. "Differentiated products in apparel and electronics can capture consumers with the fashion-forward model. Those that offer strong value for the money will do really well." JCPenney, for example, launched an integrated marketing campaign showing teens how they can "get that look" with several clothing brands sold at the retailer's stores. It features the theme of "The Breakfast Club." Sears introduced a similar campaign featuring actress Vanessa Hudgens from the TV movie "High School Musical" playing characters representing various styles they can recreate from clothing sold by Sears. Retailers like Victoria's Secret and Apple have also built relationships with universities, because college-age consumers are a key demographic. Victoria's Secret partnered with 33 universities to launch Pink's Collegiate Collection, a series of shirts, accessories and sports gear cross-branded with names, colors and mascots from participating universities. As part of Apple's back-to-school promotion, students and faculty of an accredited university receive a free iPod with the purchase of a computer. Consumers can look for "a good number" of retailers to push discounts, especially in apparel, to move out merchandise this back-to-school season, Freeman Evans says. While retailers that sell goods online have seen better results, this year the average family won't spend as much for apparel, pens, paper, books, computers and other supplies. In fact, spending per child should drop about $30. The average family with school-age children will shell out about $594.24 on back-to-school purchases, compared with $563.49 in 2007, according to the National Retail Federation (NRF). The trade association estimates that total back-to-school spending for kindergarten through grade 12 will reach $20.1 billion this year. While students will allocate the largest portion of the budget to electronics, NRF says spending will fall to $211.89 per person from $258.43 last year. Spending on clothing--$134.40 vs. $149.85, and dorm furnishings, $90.90 vs. $109.85, respectively--also will drop. While consumers have not stopped spending, parents have found more creative ways to purchase paper, pencils and computers at a discount. To save in small ways, some say they will repurpose notebooks that had a few pages torn out during the prior school year. One category-- school supplies--will experience an increase, from $63.52 in 2007 to $68.47 this year.
When it comes to spokespeople, you can't do much better than lassoing a hot recording star who appeals to both men and women, has a healthy image that meshes with your brand positioning, and believes in the product enough to actually want to be a part owner. Those stars aligned for Stampede Light Plus when the three-year-old brand--which claims the distinction of being the only U.S. beer to date to be infused with extra B vitamins, folic acid and folate--approached Jessica Simpson. The North Texas native struck a deal for a 15% stake in the Dallas-based company, which has a number of private investors, confirms Lawrence D. Schwartz, CEO, Stampede Brewing Co., Inc. "In addition to liking and drinking the beer, this fit in with Jessica's entrepreneurial interests," says Schwartz. "And clearly, Jessica's healthy lifestyle and image fit perfectly with our strategy, which has always been based on being different from other light beers because of our healthy, functional additives." The campaign also introduces a new tagline: "Be Smart, Drink Smart," promoting both Stampede as a sensible beer choice and the need for sensible alcoholic consumption in general. Stampede's most recent tagline was "Serve Yourself Better." Its first one, "Beer with Horsepower," was dropped as part of Stampede's lengthy, costly approval process with the U.S. Treasury Department's Alcohol & Tobacco Tax & Trade Bureau, which enforces the legal requirements that health-related claims by alcoholic beverages must be verifiable and balanced by messages conveying the health risks of excessive alcohol consumption. "They seemed to think that 'horsepower' sounded too healthy," Schwartz remarks. The campaign, created by Eisenberg & Associates, includes print in D and other regional magazines serving Wisconsin, Kansas and Minnesota, USA Today and "probably" some leading entertainment/ celebrity titles, reports Schwartz. Billboards and in-store promotions are also being employed, as are ads on MySpace and Facebook and blogs. TV and radio spots will follow. The brand's core demographics are ages 24 to 34, with a slight skew (58%) to females. "Women are usually first to be attracted to health-oriented products," Schwartz says. Stampede, which also markets its "full-bodied, light-lager taste," is distributed nationally through the Miller/Coors/Anheuser-Busch network. Last year, it saw 138% growth in dollar sales, reports Schwartz, who told Forbes that he projected revenue of about $540,000 for 2007. Beer with a health positioning "is probably always going to remain a niche," says Beverage World Editor in Chief Jeff Cioletti--noting that this remains true in Europe, where such beers were introduced years ago. But he adds that other U.S. beer makers may seek to develop products with a health appeal to attract more women. "Health and wellness attributes are driving virtually every new product and overall growth in non-alcoholic beverages, but this hasn't happened to the same extent with alcoholic beverages--maybe because when people think 'healthy,' they generally don't run for the bar," adds Gary Hemphill, senior VP for consulting/financial services firm Beverage Marketing Corp.
Like bees to honey, Häagen-Dazs has successfully attracted a swarm of caring consumers to an online public service announcement highlighting the plight of the disappearing honey bee. For its "Häagen-Dazs Loves Honey Bees" campaign, the ice cream maker's agency of record Omnicom Group's Goodby, Silverstein & Partners created a video showing costumed bees performing a unique bee dance set to hip-hop music, only to then slowly disappear from view. Then, Los Angeles-based marketing shop Feed Company was brought in to formulate and execute the "seeding" strategy for the video online. "Seeding," which is Feed Company's specialty, is a less hackneyed term for "viral marketing," but essentially means the same thing. The Honey Bee cause campaign incorporated a number of mediums, from traditional television ads and "Plant this page, Save a bee" flower-seed print ads to a microsite and philanthropic sponsorships. Feed Company was tasked with introducing the video to a large online youth-based community that actively shares video content and champion social causes on top social networks, video sites and blogs. "Youth online have a lot of socio-political energy and word-of-mouth impact," said Christine Chen, associate media director for San Francisco-based Goodby, Silverstein & Partners. "So we really needed to get the video to key social locations on the web where it couldn't be overlooked. Feed Company understood this and delivered the expected reach and engagement." In two weeks, "Bee-Boy Dance Crew" was viewed over 2 million times online. In addition, it received more than 3,500 comments on YouTube and was "buzzed about" on more than 130 sites and blogs and over 11,000 forum discussion sessions. The video continues to receive a four-and-a-half star rating on YouTube. According to Feed Company president and founder Josh Warner, the company typically charged between $60,000 and $75,000 for a campaign of this scale. "Häagen-Dazs definitely got their money's worth," Warner said. Founded in early 2007, Feed Company quickly established a name for itself when it helped Ray-Ban spread a video of a guy catching sunglasses on his face to the tune of over 13 million views. To achieve such impressive numbers, Feed Company employs word of mouth, social media and public relations to build up online views for brands and their videos. The company optimizes viral videos for search engines, and buzzes about the videos with influential bloggers, editors, and social networking sites. Other clients include Microsoft Zune, Intel, Disney, and Deutsch/LA. "How do you take your product into different online environments? Do you do user-generated content or something more professional? How do your other marketing efforts intersect with these efforts? What brand themes are you bringing to this new audience? Do you reveal who you are, and if so, how? These are just some of the questions a marketer has to answer when considering seeding video online," Warner said.
AutomakerMPG American Honda Motor Company24.4 Toyota Motor Sales U.S.A. 24.3 Hyundai-Kia Automotive Group24.1 Nissan North America23.2 Volkswagen Group of America22.2 American Suzuki Motor Corp. 21.8 Industry Average21.7 Daimler AG21.5 Fuji Heavy Industries (Subaru) 21.3 Mitsubishi Motors North America20.7 BMW Group20.6 Ford Motor Co. 20.5 General Motors19.9 Chrysler LLC19.0 Porsche Cars North America18.3 Tata Motors15.4 Due to low sales volumes and non-affiliation with any of the above brands, Aston Martin, Ferrari, Isuzu, Lotus and Maserati were excluded. Source: Cars.com