Negative consumer reviews online are becoming increasingly important to would-be buyers, according to a new study, with 80% of consumers saying they have changed their mind about a purchase after reading a thumbs-down report. That's up from 67% last, according to the new 2011 Online Influence Trend Tracker from Cone Inc., a Boston-based public relations and marketing communications agency. "Negative information is now just as powerful as positive information," Mike Hollywood, Cone's director of new media, tells Marketing Daily. "For marketers, that means that leaving your head in the sand and just letting people make negative comments isn't working any longer. Reaching out and trying to make the consumer experience better, even if you can't solve the problem, is important." The good news is that word-of-mouth for positive reviews has swayed 87% of shoppers, confirming their decision to purchase. And nearly 90% say they find online channels a trustworthy source for product and service reviews. The study also finds that the pricier the purchase, the more likely shoppers are to do extra digging, with people saying they are nearly 25% more likely to verify recommendations for high-cost purchases, such as cars, than they were in 2010. And 59% say they are more likely to research products or services online because they can easily access applications on their cell phones. The survey, which is based on responses from just over 1,000 adults, finds that shoppers are doing homework well beyond reading user reviews and comments on e-commerce sites, and are 50% more likely now than they were last year to search for articles and blog recommendations (42% in 2011 vs. 28% in 2010). An important trend, says Hollywood, is that consumers are becoming increasingly savvy about sorting out which reviews are more important, and a credible-sounding negative review from someone willing to leave their name, for example, makes a bigger impact than a cranky anonymous consumer. "Consumers do have the ability to sniff out who might have an ulterior motive. They are definitely giving more credence to their trustworthy sources, often valuing the opinion of bloggers and reviewers more than mainstream media," he says. "Marketers can use that to their advantage by targeting the bloggers and commenters in their industry that have, or will soon have, that level of credibility."
Fast casual restaurant brands now make up more than half of the country's top 75 limited-service burger chains, according to a report on these chains from foodservice research/consultancy firm Technomic. "This is an interesting time in the burger segment," says Technomic EVP Darren Tristano. "We are seeing very high growth rates from smaller brands and a steady stream of new 'better burger' entries making their presence felt, while at the same time some of the larger brands are struggling to maintain their footholds." Despite their growth, fast casuals still account for just 2.6% of total sales among the top 75 limited-service burger chains, because the 75 include McDonald's, Wendy's and Burger King. Together, those three chains own 75% of U.S. limited-service burger sales. Sales of the top 75 limited-service burger chains grew 1.6% last year, to $65 billion. Some of the fastest-growing fast casual, limited-service burger chains, in terms of percentage growth in units last year, included Shake Shack (units up 133%, to seven); Smashburger (up 116%, to 93); Mooyah Burgers & Fries (up 55%, to 17); Five Guys Burgers and Fries (up 35%, to 737) and Freddy's Frozen Custard & Steakburgers (up 28%, to 46). The top 10 fastest-growing limited service chains saw combined growth of 49%, adding 1,078 locations. "Better burger" concepts are benefiting from focused menus, as many quick-service chains in the segment are expanding their menus to include breakfast, specialty coffee and broader entrees. At the same time, fast-casual burger chains that offer adult beverages are competing successfully against casual-dining chains, at a lower price point. Despite the unit openings last year, limited-service burger chains' expansion actually slowed. Unit counts overall grew 0.2%, versus the past three years' rates of 0.5%, 0.7% and 09%. Still, this restaurant segment's expansion has continued to outpace those of the broader limited-service restaurant business, and the industry as a whole. Not surprisingly, McDonald's is the dominant sales-growth driver within the limited service burger category -- offsetting declines by other large burger chains -- while unit growth is coming primarily from the emerging brands, which continue to take share from both limited-and-full-service restaurants.
Chipotle Mexican Grill has created a foundation to support sustainable food. The Denver-based fast casual restaurant chain is also debuting a film that shows the path to more sustainable farming. The stop-motion animated short called "Back to the Start" is a first for Chipotle. It was directed by London-based Johnny Kelly and features a cover of the Coldplay song "The Scientist," sung by family farm advocate Willie Nelson. Chipotle will show the two-minute film nationally beginning in September. It will appear on nearly 5,700 movie theater screens in advance of feature films. The goal is to educate consumers about Chipotle's favored farming methods, and demonstrate the differences between industrial farming and more sustainable methods. The film can also be viewed online at Chipotle.com or on Facebook at Facebook.com/ chipotle. "We produced this film to help illustrate the choices people face in deciding what to eat, and hope that it will encourage people to choose food that is raised with respect for the land, the animals, and the farmers that produce it," says Chipotle Founder, Chairman and CEO Steve Ells in a release. The film depicts the story of a farmer whose family farm has evolved over time into a factory farm. In a moment of self-reflection, the farmer realizes that his animal factory is not consistent with his vision for the farm. As the song lyrics suggest, the farmer goes "back to the start" by ridding his farm of its factory qualities and returning to more sustainable farming methods. The song is available for purchase on iTunes, with proceeds ($0.60 per download) benefitting the Chipotle Cultivate Foundation, which supports family farms. Chipotle, which claims to be the world's largest restaurant seller of naturally raised meats, operates more than 1,100 restaurants nationwide. The restaurant also pioneered the use of organic, locally grown ingredients in fast food. Chipotle has donated more than $2 million over the past two years to philanthropic organizations including Jamie Oliver's Food Revolution, The Nature Conservancy, FamilyFarmed.org, The Lunch Box and the Niman Ranch Scholarship Fund. In October, Chipotle will host "Cultivate Chicago," its first one-day festival combining music, art and food, which is intended to get people thinking and talking about food and food issues, the company says. Attendees will have the opportunity to sample and purchase food crafted by local artisans, while a beer garden will include craft ales and organic wines available for tasting. Admission to the festival is free, and Chipotle says it intends to host similar events in other cities.
Emergen-C vitamin C drink, a division of Irvine, Calif.-based Alacer Corp. is launching a new extension, Emergen-C Kidz, for children ages 4 to 13. The product, which comes in packets of water-soluble powder, comprises vitamins, minerals, electrolytes and antioxidants. The company is timing the launch with the beginning new school year and supporting with an integrated marketing campaign that includes national radio ads, social media efforts and PR programs. There is also a cause-marketing component: for each Emergen-C sold, Alacer Corp. will donate 25 cents to the non-profit Vitamin Angels program. Francey Grund, associate brand manager of Emergen-C, tells Marketing Daily that the company, which advertises nationally on network and cable day-part, radio, and active lifestyle, men's and women's health, and fitness print verticals, is ramping up online efforts with more social media and digital advertising. Facebook ads will support Emergen-C Kidz, as will a mommy/daddy blog tour, the Emergen-C eNewsletter, and such PR efforts as product seeding to celebrity parents. Alacer Corp. says it hopes to raise additional funds for Vitamin Angels through the My Emergen-C Kidz Pledge on Facebook, where parents are encouraged to commit to a healthy family lifestyle. For every family that takes the Pledge, Alacer Corp. will donate an additional 25 cents to Vitamin Angels. Grund says that Emergen-C consumers respond to cause-marketing efforts such as the Vitamin Angels program aligned with the Emergen-C Kidz launch. "We really increased our social media presence to focus on our philanthropic efforts," she says. "We did a social campaign last year where we had a set amount of donation and consumers could decide who the funds would go to. That went very well. We also do a lot with [U.S. military personnel care-package program] Operation Gratitude." According to Grund Emergen-C has a broad competitive set because of the range of ways consumers use the product. "We aren't really just a vitamin brand, we are really becoming a health and wellness lifestyle brand, so one thing we have seen is that consumers use [Emergen-C] in a very personalized way every day," she says. When the product is used for immune support it competes versus brands like Minn.-based supplement company Airborne, she explains. When it is used as a general health booster, then it would be a vitamin aisle competitor, and when used by athletes for electrolyte replacement, it would spar with sport drinks.
Is there a business case for condoms that do good? With Sir Richard's Condoms, Boulder, Colo.-based design firm TDA_Boulder is hoping so. The company created the for-profit line of virtuous condoms with agency and outside equity partners. Now the brand is launching grassroots efforts in New York, San Francisco, San Diego, Los Angeles, Boulder, Colo., and Austin, Texas to support the brand's expanded retail distribution through Whole Foods and Walgreens. The cause model for Sir Richard's condoms, which come in handkerchief-style plaid packages, is that for each condom purchased one is donated in a developing country -- initially Haiti. And they are made from 100% natural latex. The campaign for the brand, which was developed by the agency, involves the dissemination of lime green fanny packs on locked bicycles and public spaces. The packs come with a square hang tag/ booklet that reads: "This is a complimentary fanny pack. When worn as a fashion accessory by a man, it makes for excellent birth control. No man has ever been seduced while wearing a fanny pack in the history of the fanny pack. In the event you prefer your birth control to involve actual intercourse, may we suggest Sir Richard's Condoms." The teams are targeting such commuter bikes as single speeds, cruisers and town bikes that are parked near Whole Foods and Walgreens stores. The agency, whose other clients include FirstBank, Webroot, Boyer's Coffee, Justin's Nut Butter and Avery Beer, says the strategy selects for active as well as socially and environmentally conscious consumers. Jonathan Schoenberg, creative director at TDA_Boulder, tells Marketing Daily that Sir Richard's just went coast-to-coast at Whole Foods. "This is a way to support certain regions," he says, adding that in addition to Walgreen's/Southern California, the brand is in boutiques and upscale hotels, including Paul Smith, Fred Segal, Viceroy Hotels, and Wynn Hotels. "We have been advertising as we enter new markets, but have limited funds. The fanny packs are designed to support our national inclusion in Whole Foods with occasional mention of other retailers in specific cities." Until now, Sir Richard's has done campaigns in New York and Southern California and for specific events, according to Schoenberg, who explains that the brand was official condom at Bonaroo; Shecky's; and Pride Parades in places like San Diego, Boulder, and San Francisco. He said equity partner funding for the brand came about because "lots of people saw how we could do good in the world while building a more relevant condom company; there's a huge shortage of condoms in developing countries," he says. "We actually believe the condom market is ready for a new major brand that's culturally and emotionally relevant." An agency study found that 20% of condom users are "Very Likely" to buy the brand over Trojan and Durex and that another 44% were "Likely to Somewhat Likely" to do so. "And in the short time we've been in the market, we've seen a huge resonance and interest. At this point, we're looking to manage the growth smartly," says Schoenberg. A new study on cause marketing from Chicago-based Mintel suggests that while most people are not moved by cause marketing to purchase a product, those who are influenced by cause-marketing efforts will respond to brands supporting charities. In the study, 85% of consumers said they do not "often" decide to buy a product based on a cause-marketing campaign, and just less than half of these consumers "sometimes" (40%) or "rarely" (46%) buy a product based on cause-related sponsorships. "Because of the general disinclination to buy products because of a cause-related sponsorship, product marketers should not rely on a cause-driven campaign as the primary means for purchasing a product," says the study. "While a cause may sometimes convince some consumers to choose one brand over another, it is unlikely to be a significant deciding factor behind brand choice." The study did suggest that Millennials show a "significantly higher" likelihood than the average respondent to buy a product based on the cause it supports. But 78% of Millennial-age respondents still reported not often deciding to buy a product based on support of a cause. Conversely, people who are "often" or "sometimes" influenced by CRM efforts showed a significantly higher likelihood to "feel better buying from a company that supports a charitable initiative," according to the firm.
In the latest twist on employing QR codes, Quaker is looking to boost sales of its Chewy Granola Bars by enabling kids to receive personalized messages from musician Nick Jonas. Boxes of the bars currently feature a prominent photo of Jonas and messaging urging mothers to "Send your kids a custom message from Nick Jonas!" When scanned with a smartphone, the QR code on the back of the box launches a message to buy the bars. The code needed to unlock one of three free StarGreetz e-cards from Jonas are inside the boxes. Entering the code on chewysuperstar.com/nickgreetz allows the user to create a happy birthday, good luck or congratulations e-card in which Jonas uses the recipient's name. Kids 13 and older can post their message to their Facebook walls (those younger can ask friends to post it on their pages). StarGreetz -- a startup celebrity messaging company -- worked with Quaker to create the cards, the microsite and a Jonas Facebook video.
Business-to-consumer (B2C) companies have been the "early adapters" of social media, not surprising given social media's ability to engage directly and cost-effectively with communities of customers. While business-to-business (B2B) companies have been slower in arriving at the social media party, however, many of the more astute B2B companies recognize that social networking can add tremendous value to their sales process. Although their products and services are not geared to mass markets of individual customers, the complexity and highly specialized nature of their product and service offerings make social networking a potentially valuable sales tool. As sales-enabling technologies have evolved, B2B companies have witnessed a significant shift in the types of products and services that their customers want. Many companies -- especially those in industries such as machine-building, construction, technology and other industries that are dependent upon an installed base -- are finding it necessary to transition from providing products to selling more comprehensive solutions, often involving machinery, hardware, software and services. This creates the need for a cross-functional sales effort involving people from across the organization, along with the elimination of departmental barriers so that knowledge can flow freely throughout the enterprise, accessible to those who need it to shape deals, identify customer needs, and satisfy customers' unique solution requirements. The new B2B sales environment calls for new methods of internal collaboration, but B2B sales organizations have not fully embraced collaborative technologies, relying instead on more traditional methods of communication such as e-mail, meetings and phone calls. As a result, vital information becomes fragmented or lost, leading to knowledge gaps and the inability to re-use information or promote organizational learning. Solution sales require the involvement of the entire organization. Fortunately, however, advances in network technologies have enabled B2B companies to undertake the type of collaboration necessary to go from selling what the company wants to produce, to selling the complex solutions that customers demand. It has been clearly demonstrated that sales people with a nuanced understanding of social networks outshine their competitors because they are able to access information when they need it and provide it when it is asked for. This "social sales" capability involves using social networking platforms such as Tibbr, Yammer, Socialcast or Chatter (Salesforce.com's collaboration tool) to establish internal communities that encourage new levels of collaboration and information sharing. Because community participants are employees with common interests and complementary expertise, the quality of shared content tends to be of a very high order. Before B2B companies pursue the development of a social sales capability, however, they should be aware of the implications of social sales for the existing sales organization. We believe that organizations should check their readiness for social sales across three dimensions: 1. Organizational readiness. To allow people to focus their energies on creating valuable outcomes for customers, organizations should ask themselves if they have a vision for social sales and what they hope it will accomplish, as well as the organization's willingness to introduce nonlinear structures to encourage cross-functional teamwork. The organization also needs to think about how it will monitor and measure the success of its social sales program; whether social sales will be actively supported by the senior leadership team; and which resources will manage the social sales program, establish and monitor usage policies, own and edit content and keep conversations on track. 2. Workforce readiness. Sales executives should determine whether their workforce is prepared not only to adopt new behaviors, but to embrace the notion of being part of an "ecosystem" where specific roles are less important than fluidity and adaptability. This involves asking what programs and communications strategies will best facilitate the transition; ensuring that employees have the right social media skills; and what role incentives and rewards should play in encouraging active collaboration. 3. Technology readiness. Social sales technologies are readily easy to deploy. Networking platforms are fully scalable and can be set up inexpensively and quickly. Yet, B2B businesses need to consider how to evaluate and select the right social media tools, and if social sales platforms will be integrated with existing CRM systems. The need for system requirements, usage protocols and standards must be reviewed, as well as the ultimate sponsorship of the program by the CSO, CIO or both offices. By drawing on the networking capabilities of social media platforms, B2B sales organizations can build highly collaborative, cross-functional communities of expertise. They can dramatically improve sales force productivity, and can more easily attract a new generation of technically savvy, socially networked employees. Companies that move quickly to build their social sales capabilities will gain the competitive advantage of being able to produce, share and use the right knowledge at the right time, helping deliver highly specialized, comprehensive solutions that customers now demand.