New Mintel research indicates that for restaurant operators, the good news about the new federal requirement that chains post calorie and nutritional information for menu items is that most restaurant patrons are enthusiastic about the coming transparency, effective in 2011. However, the consumer findings also indicate that affected chains (all that have 20 or more locations) clearly need to think through the implications now and prepare to maximize the plusses and minimize potential negatives -- including calorie sticker shock and challenges related to balancing menu offerings. The menu labeling language included in the new health-care bill will require posting calorie counts on menus, menu boards and drive-throughs, and providing other nutritional information on request. Exemptions include items that will be on the menu for less than 60 days and customized orders. (Vending machine operators will also be required to post calorie information in "close proximity" to each article of food or the selection button.) The Food and Drug Administration must propose specific regulations by March, and the regulations will be finalized through a formal rulemaking process. Mintel found that more than 60% of restaurant-goers believe that restaurants should post nutritional information on menus, and 44% think that federal or local governments should facilitate such actions. However, as restaurant operators are well aware, diners continue to be torn between a desire to eat healthier meals and their long-inculcated taste preferences for foods that are often high in calories, fat and sodium. Case in point: Nearly 60% of Mintel's survey respondents say that, when they're going out to dinner, they want something that "tastes great," while just 23% claim to want to eat a healthy meal. At the same time, only 14% say that they're never interested in ordering a healthy restaurant meal, and nearly half report eating more healthful meals in restaurants during the past year. In other words, restaurant patrons are attracted to healthful meals -- as long as they are also flavorful. "Menu transparency will allow consumers to have control over their food decisions with a complete understanding of what they're eating," notes Eric Giandelone, director of foodservice research at Mintel. "However, getting people to eat healthier requires more than just posting calories or adding healthy options to the menu. The food also has to taste good." Consumers report using a variety of methods for adopting healthier eating habits in restaurants. The most common (employed by 66%) is reducing fat consumption. In addition, 52% report eating more fruits and vegetables, and 49% report reducing calorie intake by simply ordering less food. From restaurants' perspective, "there is a concern that healthy menu items may not sell, but there is also a danger in having a calorie-laden menu when the calorie count law starts taking effect," stresses Giandelone. "There may be some initial consumer shock at the calorie counts, and chains may have to start listing lower-calorie options or smaller portion sizes to help diffuse this unpleasant surprise."
Subaru is doing a little badge engineering. The company has launched, very sub rosa, a new Web site where owners of Subaru vehicles can order badges designed to be affixed to cars. The badges reflect, numerically, where the current vehicle resides in the history of Subarus one has owned. Owners can then expand the numerical badge with more icons representing hobbies, passions and achievements (one says "100K+"). Kevin Mayer, Subaru's director of marketing communications, says people have ordered over 7,000 badges from www.BadgeOfOwnership.com, which has been live for two weeks. "They are like merit badges for lifestyle activities," says Mayer. He said the site has proven to be popular beyond owners, and that people are even using VINs for vehicles they don't own as a way to obtain the badges. The automaker is in the midst of its "Love" campaign, which launched last year. "The recession was an opportunity for us," Mayer tells Marketing Daily. "We needed mass media for our new campaign and when GM and others pulled out of the market, it was huge for us. We did mini upfronts, and looked for opportunities to out-share-of-voice the competitors on TV." Subaru eschews the traditional tier system for addressing buyers in different parts of the purchase funnel, where national ads are for awareness and brand equity, tier two are dealer group ads for people in market, and individual dealer advertising touting local deals. Mayer says the "badge" effort is part of a larger loyalty strategy. "We plan to evolve it into our version of a 'frequent flyer' program, so that based on your interaction with the brand [both at retail and online], you can earn things. It's one of those things where one might be able to earn rewards points." The badge program works well for the Subaru zeitgeist. "Our customers tend to live full lives; they are very engaged physically, love outdoor sports, and are also politically active and involved in socially responsible programs," he says. The company two years ago began moving from a traditional tier one, two and three approach to parsing the purchase funnel (from national ads for awareness and brand equity, to dealer group ads for products and individual dealer ads for deal-of-the-week type messaging) to a "heart to wallet" approach. "A tier-based approach is really about who is going to pay for that message," he says. Subaru decided that the less concrete brand attachments don't get left behind when consumers get to the bottom of the purchase funnel. He says while marketing messages for people who are about to buy tend to be about deals, beauty shots and specific comparative features, but consumers in the market for a car are not purely rational. "We thought that was short-sighted because at the end of the day people buy cars emotionally and justify their purchase rationally," says Mayer. He adds that the company's "heart to wallet" strategy is also media-agnostic. "With TV we run the full gamut at different times. Same with digital. Lots of people think digital is bottom funnel, but we run heart messaging in digital media." Subaru is actually focusing more this year on "heart" messaging [which would traditionally be top-funnel brand equity advertising] because "we are seeing results." Subaru had a good 2009 and sales are up 40% year-to-date. The Subaru "Love" campaign in its current "Dear Subaru" iteration is a bit like a consumer-content effort, where creative is based on letters from consumers. Ads, like one that shows a vehicle completely covered in mud, may not feature current-model vehicles. One that only shows a worn-down key (that wore out before the car did) doesn't feature vehicles at all.
Who's currently the hottest pitch man in town? It's none other than pro wrestler turned reality TV star Terry Bollea, better known by his ring name, Hulk Hogan. Hogan will be the new face of direct financer title loan company 1-800-LoanMart starting in early July. He will be featured in national TV and radio ads along with special appearances by WWF manager Jimmy "Mouth of the South" Hart. Currently signed to Total Nonstop Action Wrestling, Hogan has maintained popularity since the mid-'80s as the all-American, working-class hero character Hulk Hogan in the World Wrestling Foundation (now known as World Wrestling Entertainment). Darren Prince, CEO of Prince Marketing Group, Hulk Hogan's longtime marketing agent, negotiated the deal. 1-800LoanMart is a direct financer title loan company that enables car owners to achieve their financial objectives by supplying them with a car loan through financing methods that are secured by the value of the car and not by the customer's credit standing. "Hogan is an amazing athlete and an extremely positive individual," says Colby Estes, marketing director of 1-800-LoanMart. "His larger-than-life persona brings a depth of character and experience that is unrivaled." Somewhat ironically, Hogan also is currently stumping for a New London, Conn.-based debt-referral company, Debt Help Center USA, owned by National Media Connection. As a partner in the debt-settlement commercials, Hogan will receive an up-front fee plus incentives and bonuses based on the number of callers responding to the ads in which he is featured. In one spot, Hogan rips apart a shirt that reads "Don't Sweat the Debt." Responses to the ads are automatically routed to various companies that pay for the referrals. Those clients are charged based on the number of calls their company receives. Hogan is also currently on air in TV spots for Rent-A-Center, a rent-to-own company. He joins the company's lead spokesperson, Troy Aikman, the Pro Football Hall of Fame quarterback and Fox Sports broadcaster, in the company's latest marketing efforts. With his legions of loyal "Hulkamaniacs," Hogan enjoys broad popular appeal across multiple consumer segments. "Hulk has been a consistent presence on TV, in movies and in arenas across the U.S. for more than 30 years," says Ann Davids, Rent-A-Center senior vice president and chief marketing officer, in a statement. "He's stayed relevant because people like and respect what he stands for." The integrated campaign, created by Rent-A-Center Marketing Alliance partners Razor, Launch Agency, and Hispanic specialist Co. Jones, includes radio in addition to TV, print, interactive and in-store marketing. OMD plans and purchases the broadcast media. Rent-A-Center operates more than 3,000 company-owned rent-to-own stores in 50 states, Washington, D.C., Puerto Rico and Canada.
"The recession may have given people an added reason to think about the way they buy things, but these changes were happening even before the recession hit," Naomi Troni, global CMO of Euro RSCG Worldwide, which just published its new research in a white paper called "The New Consumer," tells Marketing Daily. "There are something like 16 different kinds of Tropicana orange juice out there," she says. "It's crazy, and people think it's just too much. They are trying to get away from that overcomplication. Obviously, people have been thinking the recession is awful. But it's interesting that it's given them a reason to stop and think, to reassess what they want to do." The study -- which included responses from 5,700 adults in Brazil, China, France, Japan, Netherlands, England and the U.S. -- found that across the board, people are looking for ways to add meaning to their lives, and are fed up with many aspects of consumerism. Strong majorities think society is moving in the wrong direction -- in France, 70% agree, in the U.S., 66%, and in England, 63%. Overall, 69% of respondents think people are too shallow, with that conviction especially strong -- 79% -- in the U.S. They also say they're shopping differently than they used to -- 70% of the global sample and 80% of Americans say they are both more careful and mindful about their purchases, and 68% overall wish they could buy simpler products, with fewer bells and whistles. Troni says that many of these changes have been informed by a greater sense of environmental responsibility, a majority thinks so in every market: 59% believe we are too disconnected from the natural world, and 51% say they worry that digital communication is weakening human bonds. "It's bigger than just environmental concerns -- it's really about a more meaningful way of life, and it's more widespread. Even five years ago, things like organics were seen as more of a fringe movement. Now, more people are looking beyond the impact of things on their own bodies and health, and on the global impact of their purchases." Another clear change, she says, is that consumers are enjoying many of these cutbacks, not suffering through them. In the U.S., for example, 87% say saving money makes them feel good about themselves. "It makes them feel smarter," she says, "and they enjoy feeling one up on the brand."
Kia is in the midst of a product blitz in the U.S., with 85% of its lineup refreshed or even new in the last 22 months. The company, which has experienced 15 years in a row of market growth in the U.S., is continuing the pace this year with three new vehicles, and new in-vehicle entertainment and communications technology. Kia is also focusing on social media and mobile efforts, per VP/Marketing Michael Sprague, who made a stopover in New York last week en route to the Irvine, Calif. headquarters. Sprague says the company -- whose sales grew 9.8% last year because of the Soul, Forte and Forte coupe vehicles -- has also expanded its geographic footprint, doing well with Soul in urban and suburban markets and among style-conscious and more affluent customers. "This year we are asking how we take the brand to the next level," he said. The automaker will have introduced three vehicles this year, including the 2011 Sorento crossover, which went on sale early this year; an all-new version of Sportage; and an all-new Optima. Sorento, per Sprague, has been Kia's No. 1 seller this year -- with more than 9,000 sold through March, ending Kia's best-ever quarter. "Digital and mobile media will be a big focus this year," he said, noting that 39% of users of Cars.com accessed mobile devices from dealership lots. "Since one in two phones today are smartphones, our biggest challenge, at least in this area, is how to communicate with consumers on mobile platforms." The company is also the first-ever auto advertiser on magazine portal Zinio, and is marketing on iPad. Kia is preparing a social media promotion for Soul that launches July 5. Central to the effort is a platform that connects Facebook and YouTube, so the automaker doesn't have to create different elements for each platform. The single-channel, social media platform -- via thisMoment -- ties together sites like Facebook, MySpace, and YouTube, the brand's own site and the iPhone in real-time. User-generated submissions can be uploaded directly to the channel or pulled from a user's existing social media library, and can be moderated by the brand. Sprague said part of the push has included sponsorship of the LGPA tournament this year in San Diego -- where Kia had, among other things, 50 vehicles available to players. The automaker is also sponsoring the World Cup and is in its third year of a National Basketball Association partnership.
The Top 10 DMAs in which reside adults who live in a custom-built home: 1 Champaign & Springfield/ Decatur, Ill. 2 South Bend/ Elkhart, Ind. 3 Paducah, Ky./ Cape Girardeau, Mo./ Harrisburg, Ill. 4 Ft. Myers/ Naples, Fla. 5 Green Bay/ Appleton, Wis. 6 Roanoke/ Lynchburg, Va. 7 Davenport/ Rock Island, Iowa/ Moline, Ill. 8 Louisville, Ky. 9 Chattanooga, Tenn. 10 Atlanta Source: GfK MRI's Market-by-Market study, www.gfkmri.com
Typical media buys will include a mix of tactics that promote a brand or product in the most effective and efficient way possible. Planners and buyers will leverage sites, platforms and media that can potentially produce the greatest return or achieve the highest degree of visibility. Thanks to advent of new mobile technologies, the standard approach to digital ad buying, such as paid search and online banners, is declining. With the introduction of the iPad, the nature of advertising is undergoing a paradigm shift. With more than two million iPads sold in fewer than two months, media buyers must understand the device has reshaped how consumers interact within the digital space. For example, Wired magazine created an interactive version of itself for the iPad and received sales of 24,000 digital copies in one day. Technology is the driving force of future consumer consumption and the following needs to be considered when planning campaigns. 1. Reach the right audience
Unlike the online or print versions that capture marketing data with each transaction or sale, iPad usage data is restricted to Apple. While you could advertise on the web version of the product site, apps are where the audience is being engaged. When buying media for the iPad, you need to consider sponsorships as the optimum medium; create a message that is broad and connected to the specific app. In movies, product placement and trailers have been used for years, and the concept is equally valid in creating campaigns for consumer consumption or consumer (mass) personalization.2. Stay efficient
Media buyers will always look for ways to stretch their dollars. Negotiate the lowest CPM's or use networks to achieve a broad reach through targeting capabilities. The days of third-party ad tracking through pixels are behind us (for now), and standard measurement practices will be difficult to apply to such buys. Inability to track users as they jump from one app to the next will force buyers to become creative in their tactics or else be forced to create hundreds of unique ads. One tactic that is gaining popularity is localization. As you select the properties to work with, check to see if they prompt users to provide their location. By targeting users who have shared their location, you can present offers that are relevant to both the user and brand.3. Be creative within budget
The iPad presents an opportunity that cannot be overlooked. Creative teams can flex their skills to develop an advertisement that offers an experience so rich that the buzz and excitement alone could generate more media impressions then a standard buy. Consider how effective Apple's own homepage takeovers were on CNN and the nytimes.com. Millions of impressions were generated from articles and YouTube videos capturing these out-of-the-box concepts.4. Create the strongest media mix
Understand the challenges that new technology has introduced to traditional digital advertising. The lack of a standard ad creation and delivery platform needs to be re-thought: should buzz be more important than targeted eyeballs or critical mass? Is the need to use sponsored tactics worth disrupting efficiency?On the plus side, the media world may not have to wait too long before these issues are addressed. Apple is launching iAds on July 1 and, just recently, the Interactive Advertising Bureau announced it had formed a Task Force to develop an infrastructure to provide guidance and ad standards for tablets and e-readers.