Mobile phone maker HTC Corp. wants to make the phone personal, emphasizing the breadth of its handsets and how each one can appeal to different needs through a new global advertising campaign that addresses you, the individual. The effort, developed by Deutsch LA, emphasizes the personal when it comes to mobile handset technology. Noting that people have an emotional relationship with their phones, the campaign uses the word "you" to emphasize the company's brand promise. A newly redesigned Web site has the word written out in various styles, with explanations underneath them such as: "want to Tweet wherever you are" or "could use a good laugh." Clicking on one of the "Yous" takes the user to the phone that is right for them. (The "good laugh" one, for instance, directs a user to the Imagio, which features easy access to YouTube video.) Television commercials take a similar tack, with a voiceover proclaiming things about "you," while visuals show people interacting with their phones. "You are different from you," says a voiceover as the camera moves from one person to another. "You are trying to forget about work," it says while a man is having a conversation in an office stairwell, "while you are working late," as the picture shifts to a man in an office late at night. After several other such proclamations, the voiceover continues: "And you realize you don't need to get a phone. You need a phone that gets you. And you. And you." A second commercial depicts similar scenes from the phone's point of view, looking up at different users in different situations. Both spots end with the HTC logo and company tagline "Quietly brilliant." "'Quietly Brilliant' is doing great things in a humble way, with the belief that the best things in life can only be experienced, not explained," said John Wang, chief marketing officer, HTC Corporation, in a statement. "The You campaign is the perfect embodiment of 'quietly brilliant' and is core to HTC as a company, innovator and partner." The campaign, which will include television, print, outdoor and online executions, began airing over the weekend in London and will eventually roll out to 20 countries worldwide. (The U.S. rollout is expected later this week.)
Financial services companies should brace for Baby Boomers retiring and moving their assets out of current retirement accounts. However, being attuned to those customers and offering new, income-generating products will help companies capture a share of the "money in motion," according to Deloitte's "Mining the Retirement Income Market" study. Insurance companies, mutual fund providers and banks also could get a piece of the pie. Retirees are concerned about being able to generate income that will last throughout their retirement. This gives financial companies, particularly those that previously focused on insurance, an opportunity to develop new products -- but they must first address internal issues surrounding operations and products, the study advises. "Insurers face a critical decision about whether to unbundle insurance coverage from asset management offerings and how best to achieve this because their ability to assume these risks is a core strategic advantage over players in the other sectors," said Rebecca Amoroso, head of Deloitte's U.S. insurance practice, in a statement. The largest mutual fund companies hold the dominant position in the "defined contribution plan" market, which means they are most affected by Baby Boomer retirement, adds Cary Stier, Deloitte's U.S. head of asset management services. "But they are also in a potentially good position to capture rollover assets," Stier said. "Still, mutual fund companies will likely need to reposition and broaden their brands for the retirement income market." Most people view their banks as their primary financial institution, Deloitte notes. Banks can capitalize on the relationship they already have with Boomer consumers by establishing a role in planning and managing retirement income programs. All financial services companies should build end-customer knowledge, Deloitte advises. Insight into consumers' concerns, preferences and behaviors is necessary to determine what is lacking in the current market and to develop creative solutions that fill the gaps. Companies can analyze information from existing customer interactions and transactions and supplement with primary consumer research and external consumer databases. Companies should segment and size the market in order to identify customers, products, services and channels that offer the greatest opportunity for profitable growth, according to Deloitte. Next, they should define and communicate their brand, including a value proposition -- product and customer experience -- that is customized to the needs of a target market. This includes developing a message and selecting media that address the perceptions and attitudes of the target segment. All financial services companies should enhance product development capabilities, according to the study. Products must be brought to market more quickly and efficiently in the future, Deloitte says. Involving customers and distributors to test-market concepts and features will speed the process, along with engaging IT, operations, and risk management. Financial advisors need to have the education, tools and incentives to provide advice and service to end consumers. Finally, financial companies should measure performance, and should not be afraid to modify approach accordingly. "The retirement income market is just emerging and how it evolves will depend in part on how financial services companies respond to the challenge," according to Deloitte.
Mercedes-Benz USA has signed a four-year deal with the U.S. Tennis Association that makes Mercedes-Benz the "Official Vehicle of the U.S. Open" and the "Presenting Sponsor of the U.S. Open Men's Singles Championship." Mercedes replaces Lexus, which was sponsor from 2005 to 2009. The deal includes vehicle displays at the Billie Jean King National Tennis Center in Flushing, N.Y., branding on USOpen.org and advertising buys on CBS, ESPN2 and the Tennis Channel. The Montvale, N.J.-based automaker will have on-court signage for all televised men's singles matches and side court signage on the majority of tennis courts, including Arthur Ashe Stadium, Louis Armstrong Stadium and the Grandstand, per the company. The automaker also becomes a sponsor of Arthur Ashe Kids' Day, the interactive tennis and entertainment festival that serves as a kickoff event for America's Grand Slam tournament. The U.S. Open, which will take place Aug. 30-Sept. 12 next year, brings in some 720,000 fans to the Queens Borough venue each year. Lisa Holladay, manager for brand experience marketing at Mercedes-Benz, says the partnership was the result of good timing, with Lexus' program ending and Mercedes wanting in. "The event is in our back yard, and it has the right target for us: 700,000 qualified prospects and customers who attend," she says. She says the company has not determined whether it will create tennis-themed ads. "The partnership starts in January, but the sponsorship is almost a year out, and it happened pretty quickly. There is a large media component, but we don't know if we'll do specific creative to go along with it." Holladay says that among the vehicles the company will show at the five to seven displays it will have on site are the forthcoming SLS AMG gullwing, and the E-Class Cabrio convertible. Mercedes this year also became "Official Patron of The PGA of America," wherein Mercedes had a "PGA Performance Center" facility to promote the 2010 Mercedes-Benz E-Class. Per Holladay, Mercedes-Benz' event strategy is focused on ownership of "pinnacle" properties. "Partnership marketing is an important way of using dollars strategically to target qualified customers through top events. That's how we look at every property," she says. Mercedes has title sponsorship of global Fashion Week events, and last year signed a deal to be sponsor of several PGA pro golf events. The roster of U.S. Open sponsors includes Canon, Evian, Heineken, IBM, Chase and J.P. Morgan, as well as Continental Airlines, Amex, and Polo/Ralph Lauren.
In some ways, there's something comforting about the way retailers are gearing up for Black Friday, that make-or-break kickoff to the holiday season. Stores like Target are already shoving aisles of Christmas items in between the Halloween costumes. And advertising circulars are already being leaked to deal-finding websites, creating a buzz retailers count on to build traffic. But there are also signs that this holiday season - the second consecutive year of dreary economics lessons - will be different. Retailers, for the most part, will consider it a big win if they can sell at least as well as they did last year, Leon Nicholas, director of retail insight at Management Ventures, based in Cambridge, Mass., tells Marketing Daily, "We don't expect to see as many flashy price points, as more stores have locked in already-low pricing. I don't think we'll have the assortment we've had in the past. And in many ways, Black Friday is becoming more of a cultural event about browsing than buying, with people surfing the web for deals and ideas." Stores are encouraging that, Phil Rist EVP/BIGresearch, says, "by making Black Friday earlier and earlier each year," with many events and web-only sales starting on Thursday. "We'll see even more of that this year." Still, he says, Black Friday matters as much as ever. "It's always going to be the day for the super deals and the way stores try to get the money early in the season." And indeed, many people are shopping earlier. About 69% of shoppers expect to do most of their holiday shopping by Dec. 7, up from 60% in 2008, according to a new survey from Accenture, the consulting company. And more say they plan to shop on "Black Friday" -- the day after Thanksgiving -- this year (52% vs. 42% in 2008). But once they get there, Accenture predicts something of a disconnect. Retailers have drastically cut back their inventory levels to avoid the bloodbaths of last year, so there will be fewer desperation discounts - at least initially. But 86% of the shoppers in the survey say that unless they can get a discount of at least 20% or more, they won't buy. (In fact, a quarter of those say that unless discounts are in the neighborhood of 50%, they won't open their wallets.) And 38% say they shop late deliberately, because that's when they believe they will find the best bargains. That may make for a bleak Black Friday. With so many consumers still worried about jobs, Nicholas says, "you may see them buying heavily at discounters, where they believe inventory will be limited. But while you may see a lot of people walking through stores like Macy's, they won't be buying yet. Retailers have trained them to wait longer."
About one-quarter of customers eligible for Verizon's telco TV service have signed up, helping to drive the number of subscribers higher in the third quarter, though growth rate slowed. The company, the eighth-largest MSO, added 191,000 net new FiOS TV subscribers, bringing its total to 2.7 million. The penetration rate is at 24.9% with 10.9 million potential customers -- a figure that was at 19.7% at the end of the third quarter a year ago. Still, new customer acquisition was slower than in the previous two quarters, and gross sales were lower due to what the company hinted was a slowdown in marketing. CFO John Killian, speaking on a call to discuss 3Q results, said FiOS "continues to have good momentum in the market." AT&T, which has telco TV service U-verse, recently said it added a net gain of 240,000 new customers in 3Q, closing with 1.8 million homes served. But its penetration rate was at a lower 12%. Verizon also added 198,000 net new FiOS Internet subscribers in 3Q, and now has 3.3 million customers. Penetration is at 28.5%. Verizon believes it can continues to add about 1 million new FiOS customers a year, Killian said. FiOS revenue in 3Q was $1.4 billion, up 56% versus a year ago. One benefit, Killian said, of FiOS is it can lower cost structure at the company.
Throughout the recession, many marketers have relied on so-called "recession-survival" lessons to drive their strategies. Unfortunately, these aren't always lessons as much as they are myths. We thought we would help dispel some of them and share a few tips to spur positive momentum. Myth #1 - Follow the leader Growing and innovating by mimicking industry leaders is a bad practice in a blossoming economy, and even more dangerous in a recession. Recessions (like all moments of crisis) are great opportunities for challengers to gain a leadership position if they rethink their category and offer a clear market alternative. FedEx managed to upset the unchallenged leadership of rival UPS when, in 1977, it benefited from a strike at UPS and the bankruptcy of REA Express. Myth #2 - Better safe than sorryWhen recessions hit, many companies' first reaction is to focus on the short term by cutting long-term cost such as innovation and brand building. History demonstrates that this is a big mistake. In the 1974-75 recession, Ford cut marketing spend by 14%. Chevrolet increased spending, particularly for its fuel-saving economy models. Chevrolet's market share rose by two percentage points, while Ford lost share. It took years to regain its previous position. Myth #3 - Recessions are bad times to introduce new brandsConsumers have emerging needs during recessions that new brands can address. During a six-year recession in the 19th century, the Denver area was growing as rail lines opened to the West. The U.S. desperately needed a drink. A 26-year-old Prussian immigrant named Adolph Coors opened what he called the Golden Brewery there. It eventually became one of the largest brewers in the world. Myth #4 - National brands are deadPrivate labels have been gaining ground. National brands are not doing a great job of defending their perceived value whenever they stop innovating or confuse consumers with unclear or overlapping offerings. To hold consumers now, national brands need to give consumers new reasons to continue to engage with them. Myth #5 - Value = priceValue is not just about a price tag. It is about perceived value for money. Investing in innovation, new formats and sizes will do a better job of proving perceived value than playing a pricing war. Apple has managed to sustain the success of the "i" story through frequent product introductions, short product life cycles and quick pricing shifts. So don't force your consumers to trade down for a commoditized offering. Give them a reason to trade up to their perceived value at the same price. Myth #6 - More SKUs = more market shareLaunching new SKUs to buy shelf space or "give more choices to consumers" will never buy you market share. Retailers are in the process of fundamentally rethinking their supply strategies by relying on a smaller number of brands (and SKUs) and a higher degree of customization to cater to fickle consumers. So unless you own your distribution channel, forget about SKU proliferation and work on portfolio rationalization. This will help your innovation to shine and your retailers and consumers will probably say "thank you." Myth #7 - Consumers are marketersMany marketers still believe that consumers will tell them what they really want. Unfortunately, no matter how many hours you spend behind a two-way mirror, consumers can react to the next big thing, but they will not create if for you. When entire consumer mindsets are being redefined (from "greed" to "good", and from "me" to "we"), what marketers should do is analyze what drives macro societal shifts, identify if and how they are likely to impact their consumers' attitudes and leverage current technology to address them. Myth #8 - The answers lie in researchBuilding an effective research plan is a matter of finding the proper balance between upfront and downstream research. Too much of the former can confuse strategic direction, and too much of the latter can delay action. As marketers become increasingly risk-averse, the balance often tips from the former to the latter. This is counterproductive, creating paralysis. Remember that answers don't always lie in research, and definitely not in one kind of research ...
I have a confession. I don't really like driving. It hurts my back, and when I'm behind the wheel I don't shed 20 pounds, lose 20 years, re-grow my hair, feel especially rebellious or revel in the freedom driving is supposed to give me. That's because I live in New York City, the Black Hole of Calcutta for automakers. Driving in New York doesn't leave you feeling relaxed; it leaves you feeling like you've returned from a bombing raid. Like most New Yorkers (I'll borrow an old license-plate slogan from the Sunshine State) I'm just happy to arrive alive. I usually get out of the car feeling like I've aged 20 years, added 20 pounds and abused another lumbar disk. Also, since I live in New York, the appropriate emotion for driving is rage. I get enraged at other drivers. I hate them. I become a savage. I'm the type who, if I've been waiting patiently in the off-ramp lane to, say, the Brooklyn Bridge -- which can be a harrowing mile-long queue -- I'll risk ramming the guy in front of me to keep someone from squeezing in. Ambulance? Wait your turn. Give the guy a sedative. So it is that with a car, meaning a press car these days, I don't care how nice the hand-stitching looks, how good the fit and finish is, how bitchin' the sound system is, how smoothly the engine torques, how well the designers understand psychology and ergonomics. What I tend to remember most with a new vehicle -- because I'm usually enraged -- are the screw-ups: the poor navigation system, the weird pause while accelerating, the befuddling arrangement of controls on the dash, or complicated dials that make me think, "maybe I'm too stupid for this vehicle." If the vehicle is a luxury make, such experiences are deadly. It doesn't matter how nicely the important things may have been executed, if there is one problem -- a chintzy panel, a design flaw, even a minor one -- the mind tends to run it to the top of list. It's the pebble in the shoe. I have driven a lot of vehicles, and almost all of them have had a pebble in the shoe. The relatively few cars or trucks that just seemed not only to get everything right, but to have anticipated what the driver might not have even considered an issue have usually been imports. Until recently, experience in this department had made me biased toward Toyota, Honda, Nissan, the Korean brothers, and European lux marques. They had always been the guys who came up with the cool "Wow, who would have thought of it?" solution. The last few domestic cars I've driven, however, are changing my thinking. Cars like the Ford Flex, Fusion, Camaro, Lacrosse and the Lincoln MKZ suggest that the domestics have finally begun to get ahead of consumers in the car department. Lincoln's MKZ is perhaps the biggest surprise because it comes from a brand I had kind of relegated to an automotive nursing home. The Ford luxury brand had become an oxymoron to me, and a dim shadow even of Cadillac and Buick -- especially in cars. Ford's luxury flagship? The Town Car. "Just drop me off here, sir." I had actually borrowed the MKZ specifically to test the Sync platform, Ford's Microsoft-driven telematics program. But to my great surprise, I was so blown away by the rest of the vehicle that I didn't even get around to Sync. I still don't know how it works. But forget about me; the most telling comments were from others. Particularly my dad -- even more of a curmudgeon than I am when it comes to cars. His taste for cars is like my taste for food: four wheels, used and Japanese. The last time he drove a domestic was in 1965, when we (accidentally) drove our Falcon into Lake Ella. But even he -- who thinks Ford is a division of Dodge -- was enamored of the vehicle. "I like this car," he said. From my father, that's a ringing endorsement.