Chrysler is matching the government's "Cash for Clunkers" Car Allowance Rebate System (CARS) offer with one of its own. The Auburn Hills, Mich. automaker's new incentive offers up to $4,500 off any 2009 model-year Chrysler, Jeep or Dodge vehicle. A Chrysler spokesperson affirms that the program, "Double Ca$h for Your Old Car," is available to anyone shopping a new vehicle, and that the offer is in addition to the government's program, which offers a government credit of either $3,500 or $4,500 for trading in an inefficient vehicle that is not more than 25 years old for the purchase of a new vehicle. Chrysler's incentive, timed to the official start of the CARS program on Thursday, offers either the cash or 0% financing for 72 months through GMAC Financial Services and is valid through Aug. 31. The spokesperson also says that the offer replaces existing incentives on specific Chrysler, Dodge and Jeep vehicles. Thus, if a shopper trading in under the cash-for-clunkers program gets the full $4,500 from the government, the total discount could be $9,000. The effort is being supported by a national TV, print, radio and interactive campaign, via BBDO, launching Friday. The television buy is both national and local, with creative discussing the combined benefits of the government's offer and Chrysler's additional incentive. The first of several spots for the program is a "tri-branded" spot featuring Dodge Ram, Jeep Grand Cherokee and Chrysler Town and Country. That ad will be followed by brand-specific ones for Dodge, Chrysler and Jeep. Chrysler is also buying full-page newspaper ads in 50 top markets, as well as in USA Today and The Wall Street Journal. A new study suggests the "Clunkers" program may indeed have wheels. Redwood City, Calif.-based Dealix, an automotive dealer lead-service company, has released a dealer survey conducted earlier this week in which three out of ten dealers report having made a sale involving a "Clunkers" voucher even though the rules about how the program will be administered will not be issued until Friday. Ninety percent of dealers that responded to the survey said consumers had either low or moderate awareness of the program; two-thirds said information given to dealers up to this point is "insufficient." Sixty-eight percent of dealers said the CARS program has boosted traffic to showrooms, and that buyer interest is strong and nearly that many reported an increase in interest among Web surfers.
Knoll, an office furniture design company, wants people to think its latest chair is more than just a rigid place to sit, via a new multimedia marketing campaign and tagline: "It's not just a chair. It's a movement." The campaign, from agency Fathom in New York, positions the new chair, called Generation, as an essential part of one's ability to get work done in modern times. "The workplace has evolved from a place where people are doing focused task work to one where they're moving from project to project," David Bright, senior vice president of communications at Knoll, tells Marketing Daily. The "movement" tagline carries a dual meaning, as the chair has several spots of flexibility, such as a "Flex Top" that has some give as a person puts an arm over its back. Similarly, the back of the chair pivots from side-to-side, allowing for a greater range of motion while leaning back. The anchor of the campaign is a dedicated brand Web site, www.sithowyouwant.com. "Everything on the site points to what's compelling and unique about this product," says Peter Groome, president and founding partner of Fathom. "It's about creating more of an experience than what has been done in relation to movement." A video on the site depicts a man sitting down in a Generation chair, expanding to show several people sitting in different in positions in the same chair. As they converse, work and read in the chair, features such as the Flex Back and Flex Top are shown in operation. The five workers combine back into one, as the original man leaves the chair. The effort, which also includes a print advertisement and trade materials, targets both architects and office designers as well as the typical worker who may want to use the chair. "From our knowledge of the marketplace, people buy chairs for a lot of different reasons," Groome says. "If you get people excited about it -- as they were with the Aeron -- they'll demand it." Groome's reference to Aeron is not coincidental. The entire campaign is intended to position the Generation as the next name-brand chair people ask for when furnishing their offices. Of course, the Aeron was popular during much more robust economic times. While marketing a high-end office chair during a recession could be challenging, Bright believes the Generation is competitively priced, and will help the company meet its overall expectations of doubling its market share in the next two years. "We believe our goals are realistic," Bright says.
Procter & Gamble is hoping to sweep/mop (swop? smop?) some bloggers into its net with for its Swiffer brand through its sponsorship of a pre-event during the BlogHer Convention in Chicago this week. The brand linked up with six women to develop a social media site "SocialLuxe Lounge" and an event with that name that kicks off the 2009 conference, which touts itself as the largest blogging conference for women. As part of the partnership, P&G and Swiffer will offer guests manicures, pedicures, something called "clean-tinis," and the first-ever BlogLuxe Award presentation -- awards given by bloggers to bloggers -- to recognize outstanding efforts in the blogging community. The launch event took place Thursday afternoon at the Hyatt Regency Chicago, the site of the conference. Swiffer will also do product demonstrations, giveaways and a special performance by SONY BMG recording artist Chris Mann. The Swiffer SocialLuxe Lounge will also host the first annual BlogLuxe Award meant to honor top bloggers in eight different categories whose blog encompasses quality of writing, influence, entertainment and integrity. To celebrate the redesigned Swiffer WetJet, Swiffer will also have an award for "Cleanest Blog" with the winner getting a year supply of Swiffer products. Among some 35 sponsors are Kodak, Lands End, Leggo, Weightwatchers, TNT and Allstate. A spokesperson for Swiffer says the event gives the brand access to blogger loyalists. Beth Feldman, co-founder of RoleMommy.com and one of the bloggers who helped develop the SocialLuxe Lounge program says the SocialLuxe Lounge is not technically part of the conference but is, like pre-Oscar parties, meant to heighten the experience for attendees. "It's a free event honoring bloggers," she says. She says the six bloggers came up with the concept and that she engaged Swiffer to participate. "I have worked with Swiffer for several years, as a spokesperson for their brand, and as a blogger, I introduced them to the group."
American Express is relaunching an online resource and networking site for business owners. OpenForum.com, which debuted in 2007, has been redesigned with a greater focus on forging "meaningful business connections" and providing practical, actionable information and insights from industry experts, celebrity entrepreneurs and top bloggers and news outlets. In conjunction with the unveiling of the new OpenForum, American Express will launch a TV spot featuring actual entrepreneurs. The spot highlights the role that business owners play in their communities, society and the economy. Nearly 60% of small business owners feel challenged in finding innovative ways to market their businesses yet only one in 10 is tapping opportunities in social networking, says Marcy Shinder, vice president of brand management for American Express Open, which is dedicated exclusively to the success of small business owners and their companies. For many business owners, OpenForum represents their first foray into social media. "The new OpenForum provides a one-of-a-kind community where business owners can equip themselves with the best information and resources available to build and grow resilient businesses, including opportunities to leverage social media," Shinder says. "OpenForum is more than just a networking site. It's an online resource that can help inform, promote and grow their business." The refreshed site is designed with a greater focus on forging meaningful business connections, and providing practical, actionable information. A new tool on the site called Connectodex will help businesses market themselves and find vendors. The Connectodex's recommendation engine can help users find businesses with similar interests or in similar geographies, as well as connect with members that may offer complimentary services and expertise. The site also will showcase best practices in entrepreneurship through new content from the Next New Networks and BigThink video series. Another new section, Idea Hub, is a virtual trading post of insights between industry experts and other business owners. Idea Hub features original and exclusive articles and blog posts from Federated Media's business and social media thought leaders such as Guy Kawasaki (Alltop), Henry Blodget (The Business Insider), and Adam Ostrow (Mashable). An alliance between FedEx and American Express will bring small businesses "The World" Idea Hub topic area. Media partners of Idea Hub include BusinessWeek, Entrepreneur, Slate.com, and CondeNet/Wired. American Express will add a section to the site later this summer called The Pulse, which will help business owners follow conversations on Twitter that are relevant to their business. Business owners can also receive the latest news from OpenForum by following @OpenForum on Twitter (twitter.com/openforum).
The Center for Science in the Public Interest (CSPI) is supporting a consumer protection class action lawsuit brought by a Tinton Falls, N.J., man against Denny's. The suit seeks to force the chain to disclose on its menus the amounts of sodium in its meals and also to print a warning about the health risks of high sodium, at least within New Jersey. The suit charges Denny's with committing "deceptive and unconscionable commercial practices" under the New Jersey Consumer Fraud Act. Specifically, the charge is that the chain's menu "deceptively presents various items as single meals to be consumed by one individual, without disclosing that they contain substantially more sodium (in some cases two or three times more) than the maximum recommended amount for all meals consumed by an individual during a given day." Some Denny's meals contain 4,000 to 5,000 or more milligrams of sodium. The suit cites the Centers for Disease Control and Prevention guideline that about 70% of Americans fall into categories of people who should consume no more than 1,500 mg of sodium per day, including those over 40, those with hypertension, and African Americans. The suit was filed Thursday in Superior Court of New Jersey in Middlesex County on behalf of Nick DeBenedetto, a 48-year-old man with high blood pressure who says he has been a long-time Denny's customer at Denny's restaurants in East Brunswick and Brick, N.J. In addition to the menu disclosures, it seeks, for DeBenedetto only, "treble damages and/or a refund of the purchase price" of meals the plaintiff claims he would not have eaten if he'd been informed about their sodium content. Denny's released this statement in response: "Denny's believes the lawsuit filed by CSPI is frivolous and without merit, and the company will fight it aggressively in court. With hundreds of items on the menu, Denny's offers a wide variety of choice for consumers with different lifestyles, understanding that many have special dietary needs. In June 2009 the company launched Better For You items allowing guests to replace favorites with lower-sodium and fat alternatives. Additionally, earlier this month Denny's launched a Better For You kids menu. All nutritional information is available online at www.dennys.com." CSPI litigation director Steve Gardner, who is acting as co-counsel, said during a press teleconference today that Denny's was chosen for the class action suit because, "as far as we can tell, Denny's is public enemy #1" as far as chain restaurant sodium levels are concerned, although the center has also stressed that too-high levels of sodium are common in chain restaurant fare. In May, CSPI announced that it had researchers investigate 17 chains, and found that 85 out of 102 meals analyzed contained more than one day's worth of sodium. Meals from several chains had sodium levels of 4,000 to 5,000 mgs. Gardner and CSPI executive director Michael F. Jacobson said that CSPI first approached Denny's in December 2007 and engaged in private negotiations about sodium until this spring, when talks ended. CSPI maintains that the chain made only small sodium reductions in a handful of items after negotiations ceased. Jacobsen said that posting sodium content and other nutritional information on the Web, as opposed to menus, is "totally inadequate." The National Restaurant Association, on behalf of the industry, has expressed support of a federal nutritional labeling standard for restaurant chains with 20 or more locations. For the industry, dealing with a patchwork of municipal and state regulations, some of which are "onerous or incapable of being complied with," is the worst-case scenario, points out Dennis Lombardi, EVP, foodservice strategies for WD Partners, a design and development partner for multi-unit retail and restaurant businesses. A hybrid or compromise bill combining aspects of two different the Labeling Education and Nutrition Act (LEAN) and Menu Education and Labeling Act (MEAL) was introduced this summer. That bill would require posting calories on menus, but sodium and other nutritional information would need to be available only on customer request. "There's no doubt we're headed for a new environment for restaurants in which there is going to be a level of requirement of sodium disclosure," sums up Lombardi. "Consumers are pushing for it, legislators are responding and the restaurant industry has by and large embraced this as well." CSPI has pushed for Congress to pass legislation requiring the Secretary of Health and Human Services to implement a plan to reduce sodium in packaged and restaurant food by half within 10 years. Jacobsen notes that an Institute of Medicine study on how to lower sodium is underway, and some believe the FDA "should crack down on sodium on its own."
At this point in the summer, the "staycation" may be as dull as another Sunday of backyard whiffle ball. So Target Corp. says it is sponsoring a long list of local art events, offering 2,200 free days at more than 100 museums, theaters and cultural institutions throughout the country. The sponsorships, which also include some reduced-ticket price events, range from the mainstream (New York City's Museum of Modern Art, where Friday night attendance is free, for example, or the Institute of Contemporary Art in Boston) to regional (Miami Children's Museum, free the third Friday of the month) or local musical events, such as the Oklahoma City's Arts Council's Twilight music series. The Minneapolis-based retailer says almost 60% of Americans are looking to find less expensive activities in which to partake this summer, while 48% are vacationing closer to home. "At Target, we want to make sure that our guests and their families have the opportunity to enjoy amazing museums and performing arts institutions year-round, no matter the cost," the company says in its release. "By taking advantage of free, local events this summer, families can plan the ultimate family field trip or 'staycation' that is fun, affordable and educational." Target's sponsorship comes at a good time, with many museums reporting a falloff in attendance. A survey released by the National Endowment of the Arts last month reported persistent declines in participation for most art forms, with just 35% of U.S. adults -- or an estimated 78 million -- attending an art museum or an arts performance in the 2008 survey period, compared with about 40% in 1982, 1992, and 2002. The U.S. rate of attendance for art museums fell from a high of 26% in 1992-2002 to 23% in 2008, comparable to the 1982 level. And between 1982 and 2008, attendance at performing arts such as classical music, jazz, opera, ballet, musical theater, and dramatic plays has also registered double-digit declines.
Top 10 DMAs in which live adults who used pickles in the last six months: 1 Tri-Cities, Tenn./ Va. 2 Knoxville, Tenn. 3 Green Bay/ Appleton, Wis. 4 Paducah, Ky./ Cape Girardeau, Mo./ Harrisburg, Ill. 5 Davenport/ Rock Island, Iowa/ Moline, Ill. 6 South Bend/ Elkhart, Ind. 7 Chattanooga, Tenn. 8 Champaign & Springfield/ Decatur, Ill. 9 Louisville, Ky. 10 Lexington, Ky. Source: MRI's Market-by-Market study, www.mediamark.com
Marketers are being challenged to leverage existing social networks to effectively reach audiences. The question many ask is, "How do we make the most of word of mouth marketing, especially when it resides on third-party sites in the form of tweets, comments and status updates?" One way is to aggregate this earned media and re-use it in the context of a purchase path. First, I want to note that earned media is not always positive. Customer sentiment is shaped as a result of experiences with your products and services, and this is an essential part of the evolution of the corporate website. Simply creating a broadcast of product information with nothing but glowing reviews does not build the trust and credibility that is required to succeed in a world where transparency has become expected. This is important to keep in mind as you begin to aggregate and re-use this media in a new context. A natural tendency would be to filter out negative comments and only display the positive ones. However, social media has created levels of transparency and immediacy that we have not had in the past. Within seconds of a customer experience, they can share it across hundreds of places with thousands of people. For many brands, this negative feedback is a huge sticking point when considering how and where to integrate customer created content. A common fear is that a sales deal will be lost if a customer reads something other than a glowing review. Let's face it, the reviews are out there and everything can be found via search. Instead of fearing negative comments, embrace them. Brands have the opportunity to build credibility by interacting with customers on tough issues and helping to solve problems. Establishing trust can begin by creating a blended experience of sponsored communities with what is happening on social networks. Rather than filtering the conversation, the goal is to facilitate conversations with your customers and the market as a whole. Showing that you care goes a long way, and can even help increase the quantity and quality of earned media. Then, as if earning media is not challenging enough, the task of aggregating it can be just as difficult. Social media has created a proliferation of places where earned media resides. Literally dozens of formats have emerged, ranging from tweets, comments, status updates and reviews. But there are solutions to help you manage this dispersed content. Emerging standards like Facebook Connect, OpenId and open programming interfaces are making it possible. Also, most companies already have invested in a content management system (CMS) to create and publish corporate content, and these tools usually have the capability to consume content from third party sources via RSS and XML. If you are tagging favorite tweets or bookmarking earned media, hooking this feed to your CMS is a good way to centralize comments while allowing marketers to re-purpose this media across several touch points. However, simply aggregating and re-purposing earned media is not enough. Brands should go the extra step and become facilitators of conversations. Consider the placement of earned media that support learning or buying so that, when a customer is ready to engage, you have provided the opportunity for them to interact with the people who made these mentions. There are several places it makes sense to repurpose earned media. If you are wondering where, think of the paths a customer takes on your site. Is a customer looking to learn about the experiences of others, seeking answers on a product they own or simply wanting to become part of a community? If you have not clearly defined the various scenarios on your site, look at your web analytics application. This data will not only give you insight into click streams, but it will also indicate which pages are less sticky. Placing earned media on these pages can be a good way to keep them engaged. The end result of this process is that you will have taken the first steps toward turning earned media into a managed asset that you can re-use and re-brand in many contexts. The inclusion of user-generated content into your corporate Web site harnesses the activities taking place all over the Web, creating a much more dynamic site for your visitors. In turn, your corporate Web site will be a more effective tool to help your organization serve its customers and build brand awareness in new markets. Editor's note: If you'd like to contribute to this newsletter, see our editorial guidelines first and then contact Nina Lentini.