Friday marked one week since the earthquake and tsunami that pounded Japan. Manufacturers of autos and parts there have either vastly reduced output or are shuttered for the next few days and possibly longer, depending on the fate of the Fukushima nuclear plant and Japan's power grid. But even U.S. domestic companies are feeling the pinch now and will feel it worsen if the shutdowns continue. GM has suspended production at its Shreveport assembly plant in Louisiana for the week of March 21 due to a parts shortage. "We will resume production at Shreveport as soon as possible, and at this point, we have sufficient vehicles to meet customer demand," said the company in a statement, which adds that GM's other North America plants are running normally. Ford says supplies are normal. "We don't have any production impacts at this point," says a spokesperson. A Detroit-based market observer says that is unlikely. "Some of the automakers are starting to realize now what components they are going to run out of," he says. "And that they will exhaust their supply of products like batteries or wiring. We are only starting to see the beginning of this." Jeff Schuster, head of industry analysis at J.D. Power & Associates, says everything depends on how long rolling power outages in Japan, problems at the reactor and infrastructure, and fuel supply shortages go on there. "It clearly goes beyond hybrids and electrics, though those vehicle segments will be impacted most because of the high level of electronic componentry," he says. "But really, that is going to be the case with all vehicles being produced today; these are highly specialized, sophisticated products with a lot of electronics, and a lot of that is coming out of Japan. So this could be widespread and substantial." Schuster says that some parts producers have restarted this week and that vehicle assembly should be restarted in the middle of next week -- "should" being the operative word. "If that's the case, we will continue to see isolated cases of shutdowns as we are seeing with GM in Shreveport, and inventory shortages -- particularly with vehicles like Nissan Leaf and Toyota Prius, which are in short supply already." Meanwhile, Toyota says operations at its 13 North American vehicle and engine plants are running normally, "although overtime has been curtailed for now to assure we maintain adequate inventories of parts that come from Japan," said Toyota in a corporate statement. The company points out that since most parts and materials for Toyota's North American-built vehicles are from North American suppliers, "this helps insulate Toyota's North American plants from production interruptions in Japan." The Torrance, Calif.-based U.S. arm of Toyota says the company makes 12 models in North America, including the Camry, Corolla, RAV4, and Lexus RX 350. And Toyota says nearly 70% of all Toyota and Lexus vehicles sold in the U.S. are made in North America. Prius vehicles, however, are built in Japan. "But, for now, inventory levels of the Prius at U.S. dealerships are generally still adequate," says the company. Honda says it sees no impact on its operations in North America, as more than 80% of Honda and Acura products sold in the U.S. are produced in North America, and most parts for Honda automobiles manufactured here are sourced here. The company says it has about 600 North American parts suppliers for its five U.S plants that make vehicles like Accord, Accord Coupe, Acura TL, Acura RDX, Civic, Pilot, Odyssey and Ridgeline. "We currently have adequate inventory of products supplied from Japan, both in inventory and in transit from Japan," the company says. But like Toyota, Honda's hybrids and the subcompact Fit are made in Japan. Nissan says its eponymous division has 47 days' supply, while Infiniti's supply stands at 49, although those figures don't include vehicles in transit to the U.S. from Japan. The company says 1,500 Nissan Leaf electric vehicles are either in transit from Japan or at port in the U.S. -- a number that includes the shipment of more than 600 Nissan Leafs that left port in Japan on March 10, the day before the earthquake. Nissan says it has also begun monitoring vehicles made in Japan for any traces of radioactive material. As far as humanitarian efforts from major U.S. and Japanese automakers:
Estée Lauder is launching a new skincare line called Idealist, and to emphasize how well the products work on all types of skin, the company is making a multicultural splash with the marketing campaign. Both TV and print ads will feature models Joan Smalls, Liu Wen and Constance Jablonski, with an "Every Woman Can Be Beautiful" theme. The line includes Even Skintone Illuminator, which works on all ethnicities and promises results in two weeks, powered by such ingredients as rice bran extract, Vitamin E, licorice and gentian. And its Cooling Eye Illuminator -- which also contains magnolia extract, caffeine, and sea algae -- is using what the company says is the industry's first contoured ceramic tip applicator, providing a cooling sensation. Both products are $58, and available at Estee Lauder counters nationwide in June. (The eye product is also scheduled for exclusive distribution at Bloomingdale's beginning in April.) Ads supporting the new line are scheduled to break in June, and according to a report in Women's Wear Daily, the campaign will get $35 million in North America ad spending; the launch could generate as much as $200 million in sales in the first year, with $85 million in the U.S. Sampling is also expected to play a major role in the campaign. Separately, Lauder also reaffirmed that it expects net sales to grow between 8% and 10% for its fiscal 2011 -- which ends June 30 -- despite the unfolding disaster in Japan, one of the company's key markets. "The tragic events that have recently taken place in Japan have created issues for our business in the country and for our Japan travel retail operation," Fabrizio Freda, Lauder's president/CEO, says in the company's release. "We are thankful that all of our employees in Japan are safe and accounted for. We are amazed by their courage and dedication to support our business. Our reaffirmation of the fiscal year guidance is a testament to the overall strength of our business, the breadth of our portfolio and the financial and strategic ability to manage through this crisis."
Jim Beam is launching "Live Music Series" which includes a 10-market concert tour, each featuring a different headline artist, and exclusive downloads of live concerts. Artists performing as part of the "Jim Beam Live Music Series" include Kid Rock, Bob Schneider, Cold War Kids, Derek Trucks and Susan Tedeschi Band, The Fray, Grace Potter and The Nocturnals, The Hold Steady, Manchester Orchestra, O.A.R. and Richard Ashcroft. Cities on the tour are Boston; Cleveland; Atlanta; Philadelphia; San Francisco; Chicago; Orlando, Fla.; Flint, Mich., and Holmdel, N.J. A video message from Kid Rock is included on the microsite promoting the tour at http://www.jimbeam.com/live-music-series. The site also includes interviews with each of the artists under the headline "Profiles in Bold." The Deerfield, Ill.-based brand also is promoting the music series and giveaways on its Facebook page and on Twitter. Beginning in May, special boxes of Jim Beam and Red Stag by Jim Beam will be marked with offer details and instructions on how to download a total of five "Live Music Series" tracks from the 10 artists on JimBeam.com. Jim Beam will also be streaming portions of each Live Music Series concert and exclusive interviews with each artist on JimBeam.com and Pandora. From June 1 to July 4, consumers age 21 or older can enter to win a trip to O.A.R.'s Live Music Series concert at PNC Bank Arts Center in Holmdel, N.J. by texting MYTOURBUS to short code 66937 or visiting www.jimbeam.com/livemusicseries to enter online. Upon arrival at Newark Airport, one lucky winner and three friends will be provided with their very own tour bus to live the rock star lifestyle for 24 hours. In addition to VIP treatment at the show, they will also receive a private meet and greet with the band before the concert. Jim Beam has linked with musicians in the past. In 2010, the spirits maker launched a consumer program for both the spirits and music industry by offering exclusive Kid Rock music downloads on Jim Beam and Red Stag by Jim Beam special boxes. In addition to spotlighting established artists, Jim Beam also supports up-and-coming musicians. Kid Rock handpicked three emerging artists -- Taddy Porter, Ty Stone and Leroy Powell -- to perform at the Jim Beam "Emerging Artist Showcase," hosted by Kid Rock and presented by Pandora. Mozes, an affiliate sponsor of the showcase, will be on site to bring the event to life across its mobile platform. Music from each emerging artist will be available to download on JimBeam.com.
Heineken USA's Tecate beer brand, which until now has focused its U.S. marketing on Mexican male immigrants, is expanding its target audience to all male Hispanics for its new 2011 "Celebration" campaign. As part of this broader strategy, Tecate will for the first time test English-language TV spots in select markets, as well as incorporate Tecate Light into its creative. The brand's previous campaign, "Anthem," focused strictly on recognizing the perseverance and character of Mexican male immigrants in the U.S., with a serious tone that portrayed the struggles and hard-working lives of men laboring in blue-collar jobs to support their families. The TV spots and other elements of the "Celebration" campaign continue the "Con Carácter" ("with character") theme, but have a partying theme, focusing on the "gregariousness and festivity" and other key elements of the overall Hispanic culture and Hispanic men. The new TV spots from KBS+P's Ramona, some of which launched in 15-second, Spanish-language versions on major Hispanic television networks this week (30-second versions will begin running in mid-April), humorously portray the "ingenuity, valor and determination" of Hispanic men. One spot shows a group of Hispanic men in a bar (wearing knight armor) standing to welcome a female fellow bar patron, who is clearly a senior citizen, to their table. Messaging: "This Tecate is for ... the ones from the roundtable, who are truly gentlemen." Another shows a group of Hispanic men in a bar vying to be the one who picks up the tab. A third shows an Hispanic male in a blue-and-white striped shirt, relaxing in a chair in his own home as he drinks a Tecate -- and holding up what appear to be two very large eggs (testicular connotations?) -- with the messaging: "This Tecate goes ... for the one in the striped shirt who is a real, real man." The tagline on all of the spots: "Let's celebrate character. Con Carácter." Tecate's decision to expand its consumer marketing approach is far from surprising, given that male Mexican immigrants represent less than 10% of the U.S. Hispanic population, and that most of the growth in the Hispanic market over the next decade will come from second- and third-generation consumers. "The new campaign is consistent in retaining the focus on the character of Hispanic men, but the creative interpretations of that are different -- and this creative is joyous, celebrating that character in humorous ways," sums up Felix Palau, VP, marketing for Tecate, for Marketing Daily. In addition to the television/online videos and online ads on targeted sites, the main Spanish-language campaign includes radio (DJ endorsements on Spanish-language stations nationwide), and out-of-home (including graffiti murals, bus shelters, mobile billboards and wrapped trucks). Reflecting the significantly expanded audience target, the media buy, by MediaVest MV42, is also wider than in the past, encompassing key Hispanic markets including Los Angeles, Dallas, Atlanta, Tampa and New York, with a national overlay. The testing of creative translated into English -- in TV spots on both Hispanic and mainstream networks, radio and out-of-home -- will take place in markets with high concentrations of acculturated Hispanics who are bilingual, such as San Antonio, Palau reports. "We, of course, want to test this carefully, in appropriate markets," he says. "If it's successful, we will expand it in 2012." As for Tecate Light, a 2007 launch that is currently sold only in the Western region of the country and Texas, the brand sees this as becoming a significant driver of its overall portfolio sales in the long term, Palau says. The initial approach is starting to broaden the light version's awareness by building it into the new campaign (shots of Tecate Light on tables in bars and inclusion in the beer toasts at the end of most TV spots, for example). Interestingly, Tecate regular competes mostly with domestic premium light beers in the U.S., according to Palau. Research shows Hispanic males viewing the light version as particularly appropriate for mixed male/female occasions, including family or other parties that may extend for multiple hours, while viewing Tecate regular as the choice for all-male, shorter-duration get-togethers, he reports.
Scott Burgess resigned last week as auto critic at the Detroit News soon after his editors, following an advertiser's suggestion, softened Burgess' criticism of the new Chrysler 200 sedan for the paper's digital edition. The 200 is the car featured in the "Imported from Detroit" spot featuring Eminem that first aired during the Super Bowl this year. Said Burgess, in a tweet on Gawker's auto site, Jalopnik, on Friday: "All of the edits could have been made before the story printed, and I would still be working there today." In essence, Burgess reported, as did Jalopnik, that the new 200 may be improved, but still doesn't stack up to the competition -- and that it's basically the old Sebring with some spiff. "We agreed so much with his assessment, we linked it to [the] 'Morning Shift' [section]," writes Jalopnik editor in chief Ray Wert. He cites sources at the Detroit News who told Jalopnik that editors changed the online version of the review after they got a call from an advertiser -- a local Chrysler dealer -- who objected to the tone of Burgess' review. In Jalopnik, Wert does a side-by-side of the online and offline versions of Burgess' review and highlights what was cut. Some snippets that ended up on the Deet News cutting-room floor: "If this is the best vehicle Detroit exports, then Glenn Beck is right," (referring to Beck's comments in March in which he contrasted Hiroshima with Detroit, arguing that Hiroshima succeeded because of the free market and Detroit failed because of unions and progressive politics); "Regrettably, the 200 is still a dog"; and this, which came right after his comment that Chrysler was smart to use elements of the new 300 exterior for the 200: "But no number of LEDs can hide a profile that looks like a loggerhead turtle. If this car came in a tortoise shell, the EPA would have to put it on the endangered sedan list to prevent trappers and auto enthusiasts from rightfully shooting it into extinction." Ouch. "Lots of readers were upset with my review, many called or emailed me," tweets Burgess. "Really, I was never upset over changing the story; I was disappointed in the reasons for the changes." Wert says the Auburn Hills, Mich.-based automaker itself has nothing to do with this imbroglio, and that it wouldn't be such a bad idea if it said as much. "There is no evidence at all to suggest Chrysler was in any way involved. This was an independent dealer who put the screws to the Detroit News. I think they need to stay out of it. Bu if people are saying Chrysler had something to do with it, they should jump in." In it jumped. The company tweeted that it, indeed, had nothing to do with it and linked to Jalopnik's latest story on the matter, which includes a comment from Detroit News Publisher Jonathan Wolman: "Our intent was to make an editing improvement, and we obviously handled it poorly. We should have let the online version of his review stand as written, as we did the print version." Wert points out that the real issue here is how and when the piece was edited. It's not rocket science that edits shouldn't happen after a piece is published unless there are factual errors in the published piece. But that's particularly true of reviews, which -- even with technology -- are at least partly an interpretation of one's experience. Says Burgess: "The reason this became a big deal is because it is so rare; it never happened before and it certainly won't happen again at the paper. In 15-plus years, I had never had anything close to this happen to me. Journalists are a dogged group of people who work extremely hard, are typically underpaid and want to do the right thing."
Smartphone makers (and even those who make more traditional, feature-phone handsets) would be wise to incorporate easy access to social networks if they want to increase customer satisfaction. According to the latest Wireless Smartphone Customer Satisfaction Study from J.D. Power and Associates, owners who used their devices to access social media sites such as Twitter, LinkedIn and Facebook had higher satisfaction rates (783 on a 1,000-point scale, about 22 points higher) than those who do not often access the sites on their handsets. (Although social media usage for traditional phone owners is lower, rates among those who access the sites from their handsets also reported higher customer satisfaction.) Those higher satisfaction rates can generally be attributed to an overall ease-of-use for the phones, says Kirk Parsons, senior director of wireless services for J.D. Power. According to the study, consumers who engage in mobile social media activity are also more likely to use their phones more often for calls, texts and data, are more likely to purchase additional wireless services in the future and are more likely to provide positive recommendations for their handset brand and service provider. "When [consumers] first started using these sites on these devices, it wasn't as easy. All these new applications and software make it much, much easier to be connected on your own," Parsons tells Marketing Daily. "If there is any service that makes it easier to use their cell phone, there's a positive impact [in] that you feel better about your device -- use it more -- and the wireless provider." Among smartphone manufacturers, Apple continued its dominance over all others, scoring 795 on the 1,000-point index. Motorola and HTC, which make phones that run on Google's Android platform, were second and third with relatively equal scores of 763 and 762, respectively. The rankings show that Apple continues to understand what consumers want from their phones, Parsons says. "They up the ante every time," Parsons says. Meanwhile, as smartphone penetration continues to increase, the price of traditional phones is declining. According to the study, the average price of a traditional phone in 2011 is $73, compared with $81 at the beginning of 2009. Nearly half (46%) of owners said they received a free mobile phone when subscribing to a wireless service -- a historical high.
Social media have accelerated our ability to be innovative, allowing us to identify gaps in the market more quickly and find new ways to improve customer service. As for what it takes for a company to be truly "innovative" today -- and seize the opportunities social media presents -- I've learned through my experience as head of marketing for a major retailer, and now, as a CMO who markets a social media solution to companies of all types, that the same set of "rules" apply to any organization, big or small. They are: Never fall in love with yesterday. When things are working well -- and sales are up -- there's an irresistible temptation to keep doing more of the same. This may be good policy for the short term, but ultimately, it leads to lost opportunities and can jeopardize the long-term success of your company. As a CMO or other company leader, it's your job to position your company, both on its own merits and within the competitive set with which you operate. The speed of competitive change today is outrageously fast, so don't get left behind while clinging to past successes. Invest in the untested. Always set aside a portion of your resources -- time, human and financial -- to test an idea with a promising but unclear path. Sure, 90% of these seeds may not grow, but the 10% that do will change your life -- and your company. Real innovation enters into the territory of the untested and unknown. This is why company leaders are wise to step out of their comfort zone to take advantage of new opportunities -- especially today, in light of the Social Web. Love the channels you have, but don't let them hold you back. If you've made huge investments in stores, catalogs, websites or other traditional channels, there's a natural tendency to focus on meeting the operational imperatives of each. However, this will derail your ability to evaluate all new channels effectively. Manage what you have for success, but don't let prior investments preclude decisions you might make if those channels didn't exist. Adapt to new insights to achieve a better fit and prepare for the "lift" social data can bring to all channels. Apply a totally different set of filters. Even when you don't have all the facts, you can make informed decisions and move ahead with new ideas. In positioning, you can be first to market, best to market, and so on, but the truly iconic market leaders can take very mature products and markets and apply a totally different set of filters. Look at Apple. Who would've thought the way to dominate the price-sensitive, loyalty-adverse cell phone market would be to introduce a very expensive phone supported by a single carrier? And that, with this one bold move, the market dynamics would fundamentally change? Accept that you can't know everything, but that your market will tell you exactly what you need to know. Here's where Social Intelligence comes into the mix, as it provides actionable insight -- a crucial element for innovation. A company needs to understand what is being said about its brand online, how customers are interacting across channels and where new market opportunities lie. This is essential not only to maintain meaningful, productive relationships with current and potential customers, but to uncover new and improved ways of serving your market. Companies that move now to take advantage of all that social media have to offer -- and, apply the rules for innovation shared above -- will be better positioned to out-innovate their competition, accelerate business growth, and more than likely, ensure their long-term success.
Unanimously, agencies have weighed in with torches and pitchforks for the account executive who made the unfortunate mistake of tweeting the message that lost his agency the Chrysler social media account. More recently, comedian Gilbert Gottfried lost his "duck voice" gig for insurance company Aflac by tweeting more than a few tasteless jokes about the disaster in Japan. While I do not condone, or excuse, such thoughtless public commenting, the blame should not land squarely on a renegade AE or spokesperson. The culture starts with the agency leads. The trust ensured to agencies with access to corporate accounts, or to spokespersons who represent a brand, should not be taken lightly. Poor choices of the right team member(s), or affiliate talent, are to blame. The unfortunate tweet that left one agency without a Chrysler account: "I find it ironic that Detroit is known as the #motorcity and yet no one here knows how to fucking drive." Among the tasteless tweets about the disaster in Japan from comedian Gilbert Gottfried: "I just split up with my girlfriend, but like the Japanese say, 'There'll be another one floating by any minute now.'" To avoid the pain we've recently observed in the social media marketing space, adhere to the following rules. 1 - Work Harder, Not Smarter In the case of corporate account maintenance, using Tweetdeck or Splitweet to manage multiple accounts is not always a good idea. Especially for mobile, on-the-run solutions, where the slip of a finger can post one message across all accounts. Also, while ensuring 24/7 client support by giving access to multiple team members is effective, every decision to add a team member with full access must be made with great care. 2 - Mother, May I? For brands (and even comedians) a social media messaging protocol should be in place. And, no -- I'm not kidding, Gilbert. For agencies, their marketing and communications teams usually coordinate the approval process. Before sending out any message, have the explicit consent to do so, in real-time. Time and time again, we see that deleting the offending tweet does not save the day. For public figures, have a person to run messages by. Maybe your management team, to make sure you will not be knowingly, or unknowingly, dissing a corporate partner or an entire city on your next tour stop. NBA player Dwight Howard's ex found this out too late. Her seemingly innocent tweets about her son violated a confidentiality ruling and could potentially lose her millions promised in support. 3 - The Golden Rule For the love of God, you do not have to dig deep to ascertain the "moral compass" of a team member or spokesperson. Whether or not someone calls other human beings "douche bags," or uses profanity in public spaces, can be recognized in less than 60 seconds simply by checking their social media pages. 4 - Sixth Sense Before launching any corporate campaign, discuss a protocol for damage control. Any AE can make a mistake, even a huge mistake. Sometimes it's not the mistake, it's the attempt to cover it up -- or the pretense that it is not a huge deal -- that sends the client into a tizzy. The agency should overcompensate by being proactive with a solution at hand: an apology to the Facebook community may or may not have been in the works. If, instead, everyone passed the buck until they found out who did it -- or worse, the client discovered the retweets before the agency pointed it out -- that is a relationship ender. An hour of cover-up and hand wringing isn't a very good use of time. It's best to have a plan in place to apologize and then fix the issue at hand, for all parties concerned. And, yes, the "fixing" part means taking the guy with the bad attitude completely off the "feel-good, Americana-focused" account. Although this AE actually got fired, he's now wide open for the Charlie Sheen intern gig. 5 - Don't Tweet and DriveSeriously. What struck us about the Chrysler post that no one else has mentioned yet is this clearly seems like a case of road rage. Are we to believe that he pulled over to tweet this, or tweeted this over a calming cup of tea at Starbucks? He surely can't say Oprah didn't try to warn him.