Walmart says it is offering something new for the holidays: A Christmas Price Guarantee. That aggressive price-matching promise may be a sign that Holiday 2011 will be even more of a slugfest than initially forecast. “Walmart is trying to give customers assurances that they don't need to wait to shop later in the season to get better deals -- a strategy to move sales forward in the season,” Doug Hart, partner in the retail and consumer product practice at BDO USA, tells Marketing Daily. “It may be trying to replicate its strategy of 2008, when it was able to take market share by discounting aggressively early in the season. “ Still, he says, that doesn't necessarily mean the Bentonville, Ark.-based retailer, which is battling a two-year sales slump in the U.S., is willing to take off the gloves quite yet. “It's too early to tell whether this is the start of a price war. Some competitors may view this as Walmart's efforts to neutralize them in a price war, and it is unclear how they will react. The pricematch applies to any product purchased between Nov. 1 and Dec. 25. If a customer finds it advertised for less at another store, Walmart will give the customer a gift card for the difference through Dec. 25. (Internet ads and Black Friday deals are excluded.) “The greatest gift we can give our customers this holiday is great low prices on the things they want most,” Duncan Mac Naughton, Walmart's chief merchandising officer, says in its release. “Walmart is easing shopping stress this Christmas by allowing customers to shop when and how they want, all while guaranteeing low prices through the entire holiday season.” Retailing experts say one reason Walmart is emphasizing its price positioning is that more and more, it is losing customers to low-cost channels such as dollar stores, as well as higher-priced ones, including department stores. Its recent decision to promote its layaway options, for example, “was a competitive move, reaching a core target market with an offer that is important. We are definitely seeing an increase of Walmart shoppers crossing into dollar channels. That is who Walmart is trying to reach,” said Mary Brett Whitfield, SVP/Kantar Retailing, in a recent webinar. And in another indication that all retailers may be making greater price cuts to win holiday shoppers, Shop.org, the online unit of the National Retail Federation, says 92.5% of online retailers plan to offer free-shipping promotions, and 31.4% of those surveyed say they will start those promotions earlier. And 56.3% say their budget for free shipping promotions is “somewhat or significantly higher than last year.” Sears, for example, just announced it will offer free shipping on orders of $99 or more starting Oct. 30; online shoppers at its Kmart unit get free shipping on anything more than $49.
NASCAR's roots (at least “reputationally”) are about as far from the university demographic as professional wrestling is from quoits. But with the circuit's drivers having for years now been fully mainstream (which is a nice way of saying NASCAR drivers no longer brew beverages in the woods that they could actually use as fuel) and hugely marketable, they should be getting as many collegiates and post-collegiate interested in the track as those stick-and-ball sports. There's only one problem. Unlike football, baseball, basketball, and hockey, racing cars is not a college sport, (unless you're at a very exclusive academy in, say, Monte Carlo). Since 2008, therefore, NASCAR has been running a program that has two aims: get college students to think about careers in NASCAR, and get college students to think about NASCAR, period, as fans. The program, NASCAR Kinetics: Marketing in Motion, targets university marketing, advertising, business and communications students who might be interested in motorsports, and gives five of the best of them a chance to do case-study based projects on a semester-by-semester basis. The racing league says the program "teaches case studies and projects based on challenges and opportunities currently facing NASCAR, its official partners, tracks, and other relevant businesses operating in the industry." The program now involves some 19 schools from six when it launched in 2009. Steve Sweeney, NASCAR's director of consumer marketing explains that by next year the program will have expanded to 30 schools. He tells Marketing Daily that NASCAR is, meanwhile, adding a second program, which has a lot more to do with getting college kids interested in going to races. As part of the "U. Crew" effort two brand ambassadors at participating universities tout NASCAR at student events, and develop programs with local tracks (Sweeney says NASCAR chooses the universities, to some extent, by their proximity to NASCAR tracks) designed to entice students to come to a race. "It has been hard to maintain 18 to 34 demographic, so we started to look at ways to engage students," says Sweeney, adding the point of the Kinetics program is to give marketing and communications students a "taste of NASCAR" as a job. "We are getting in front of students and giving them an opportunity to see how they can have a career in NASCAR. Most people just see the driver, but in our sport there are so many roles, especially when you start to look at agencies, marketing, and partners. There's just so much marketing that goes on and lots of opportunities." NASCAR brand sponsors like M&M's, and Dodge are involved this semester in case studies like "Social Media Strategization for Michael Waltrip Racing," where each student team has to create a comprehensive social media strategy for Michael Waltrip Racing and come up with sponsorship activation ideas for Chrysler's Dodge division. Sweeney says the second case study, “M&M’S Makes Race Day More Fun” has a secondary function of building awareness and enthusiasm for NASCAR among the student body at participating schools: the five marketing students per school have to hold NASCAR Viewing Parties around Sprint Cup Series races, and highlight M&M’S brand’s status as the "Official Chocolate of NASCAR" at the events. Sweeney points out that M&M’s and NASCAR provide the students with collateral and a $1,000 budget. "These are real case studies, with real issues and problems," says Sweeney. "So you end up with 19 perspectives on how these students might attack the problem. The students get to experience real-life stuff, and the brands benefit. And there are benefits for us because when they do viewing parties they are exposing hundreds of students to the sport." Sweeney says the U. Crew program involves twelve schools, and aim to get students to some of the first ten and last ten races in NASCAR's season. "With NASCAR, every weekend is like the Super Bowl: we get 100,000 per race, and there are days of [events like] tailgating and a level of camaraderie that's hard to fathom. So [we want to] get students out there to experience it."
After an unsuccessful flirtation with a lighter Mediterranean menu, Romano’s Macaroni Grill has returned to offering fresh interpretations of classic Italian fare, and an emphasis on the Italian experience in its casual restaurants. The revamped menu includes customer favorites harking back to the chain’s founding in 1988 by Philip J. Romano, plus 25 new items. Macaroni Grill has also reinstated occasional serenades by opera singers and letting customers pour their own house wine (on an honor system) from a large bottle provided to each table -- unique brand touches that had become inconsistent in recent years (some locations had continued these traditions; others had not). To spread the news about the changes, spearheaded by a new (as of 2010) CEO, Norman Abdallah, Macaroni Grill has launched a new, national campaign taglined “Something New. Something Classic.” Spanning television, radio, out-of-home, online advertising and social media, the campaign from the VIA agency introduces a suave brand-ambassador character with a Rat-Pack-reminiscent fashion style. In the 30- and 15-second television spots, airing on network and cable, the character comments on the food and social interaction as couples enjoy dinner in a romantically lit Macaroni Grill location. The tongue-in-cheek patter incorporates humorous double entendres playing off each couple’s entrée selections (e.g., “Twirl baby, twirl”; “Either she’s got a thing for mussels, or she’s got a thing for muscles”). Over a number of years, the chain had “kind of lost its path” in terms of hewing to the brand’s “soul” -- “great Italian food and an experience that differentiates it from the standard, monotonous chain-restaurant experience,” says its CMO, Brandon Coleman. Rather than take the predictable casual-chain creative approach, consisting almost entirely of close-up shots of food, Macaroni Grill asked VIA to focus as much on the experience as the food, he says. During the year that the menu and marketing were being revamped, the chain did no television advertising. While the restaurants do offer selections for the calorie-conscious (six entrées with fewer than 600 calories), the creative seeks to convey a spirit of “self indulgence” and the ability to have a “big night out” within a casual, comfortable environment, notes VIA chief creative officer Greg Smith. The online banner ads include click-throughs to visual samplings of new menu items, again with cheeky narration by the brand character. Out-of-home is being used in key markets, and radio has always worked well for the chain (given that so many dinner/lunch decisions are made during drive time), says Smith. Macaroni Grill also has a “robust” Facebook presence, says Smith, who reports that fans downloaded more than 70,000 coupons from Facebook during the first week of the campaign. Majority-owned since 2008 by Golden Gate Capital (the previous owner was Brinker International), Macaroni Grill currently has 204 locations in 42 states. The chain got its start in Leon Springs, Tex.
You can try to wish them away and reminisce about the days when people shopped and purchased in physical stores. But shopping apps for mobile devices aren't going away, and retailers have two choices when it comes to savvy shoppers with smartphones in their holsters: use 'em or lose 'em. Use the apps and mobile devices, that is -- or lose the consumers who view them as necessary shopping equipment for getting live reviews, price quotes and competitive deals. Chains like Best Buy, Walmart and Target are up against it in this regard, according to consumer-electronics shopping and review site Retrevo.com. The site says that while shoppers have installed retailers’ apps, few have actually used it to help them buy something. October data from Retrevo's ongoing Retrevo Pulse Report found that 43% of smartphone owners have installed a retailer's app on their mobile device, but only 14% of them have used that app to help them buy something in the store. Also, 78% of smartphone owners have checked out a product in-store, but then bought it from another online store, benefiting companies like Amazon at the expense of brick-and-mortar operations. The demand is certainly there. When Retrevo.com asked study respondents if they had ever used a mobile device in a store to help them make a purchase, over half of smartphone owners said yes. Forty-two percent of them said they have used a mobile device in-store to check prices, and about 30% said they used the devices to read a review or look up specs while in stores, and a quarter have used a mobile device in-store to get a coupon. Clearly, retailers' apps are a link, but they appear to be the still-missing link. Consumer electronics retailers apparently have the most to lose by not figuring out how to exploit the mobile Web and apps to expedite purchases in their stores versus losing consumers to online sellers or other retailers with lower prices. Retrevo's study found that 58% of smartphone owners have checked out electronics in a store, but then bought elsewhere online. The second-most-transient consumers are looking at shoes, with 41% of smartphone owners who shop footwear opting to buy online (nice work Zappos.) After shoes comes the rest of the apparel arena, with 39% of smartphone owners using stores as clothes hangers and then buying elsewhere online. Then comes appliances, sporting gear and the home and garden category, where 19% of smartphone owners have gone online to close the deal through a Web seller after trudging the home and garden aisles. A hint at what retailers could offer that might stem the tide is implied in the Retrevo.com stat that 53% of consumer electronics shoppers say they have gone into a store to buy electronics, but couldn't decide what to buy. Thirty percent of survey respondents said this happened because they did not have the information they needed (online prices, reviews, specs, etc.), followed by feeling overwhelmed by the number of choices. And they also felt the salesperson was of little help. Said Manish Rathi, Retrevo.com's co-founder and VP of marketing: "In today's market, where many brick-and-mortar retailers are trying to stay competitive, retailers can't afford to merely serve as a showroom for Amazon." The firm says that as more consumers become smartphone owners, retailers will have to figure out how to exploit smartphones. Rathi says retailers have to focus on creating better, more informative mobile apps.
For its second year of offering its boneless pork barbecue sandwich as a national limited-time offer, McDonald’s is touting the product with a new Facebook game, “The Quest for the Golden McRib.” The McRib sandwich has returned nationwide to participating McDonald's restaurants through Nov. 14. Through the game, people can challenge their wits, smarts and love of the McRib sandwich through the company’s Facebook page. The game uses integration with Google Maps to allow customers to “hunt” for one of 10 virtual golden McRibs hidden at McDonald’s restaurants around the world (meeting quirky characters along the way such as barbecue-loving unicorns, emo pilgrims and Viking accountants). People are encouraged to use the social component to share their discoveries and scores with friends and earn virtual badges for their profile pages, explains Rick Wion, McDonald’s director of social media. “McDonald’s has used gaming as part of campaigns for a few years now and we always see lots of positive feedback and strong engagement from our customers,” Wion tells Marketing Daily in response to emailed questions. “Developing a game around a product that already instills a lot of passion seemed a natural step for us.” The McRib has amassed an enthusiastic following as a product with a limited-time availability (like the company’s Shamrock Shake). Last year, the McRib was added to the company’s national menu for the first time since 1994, spurring a 4.8% sales increase for the month of November. “We know that McRib fans are very passionate about their favorite sandwich and part of our strategy for developing the game was to provide them an experience that extends that love and provides more ways to share,” Wion says. In addition to the game, McDonald’s will promote the limited-time availability of the McRib with a number of other traditional advertising, social marketing and public relations, though the company is also counting on its fans’ passions to help spread the word. “We know that fan’s love of the sandwich will also leads to lots of online conversations and our social media team will be on the spot to celebrate the love with our fans,” Wion says.
For a color whose name doesn’t even get top billing on the visible spectrum of light, pink has certainly developed potent staying power. From the Pink Panther to pink Cadillacs, and everything in between, this dainty mixture of red and white has also come to symbolize a less benign issue: the hundreds-of-millions-of-dollars-a-year-fight against breast cancer – the third deadliest cancer in America today and No. 2 killer of women. Are you surprised I didn’t say it was the No. 1 killer of women and the second deadliest cancer in the United States? You can thank the power of marketing for shifting those perceptions. Not only has breast cancer taken more than 240,000 lives since 2005, according to Cancer.org, it has also commandeered an entire month through powerful -- some would even say extreme, marketing influence. For the past 25 years, October’s ghosts and goblins have had to share the stage with the specter of breast cancer and its increasingly corporate-like kissing cousins – Breast Cancer Awareness Month and the inexorably linked Susan G. Komen for the Cure Foundation. While no one can deny the impressive global awareness and funding these organizations have brought to the breast cancer cause – Susan G. Komen alone raised about $420 million in 2010 – am I the only one who thinks that all the merchandising: the pink ribbons, the pink-clad NFL teams, the Bank of America pink checking accounts, the pink armbands, pink lunchboxes, pink Kitchen Aid food processors and whatever else has been Pink'd for October is diluting both the issue at hand and, in reality, siphoning more money toward profits than for research for an actual cure, and skewing public attention away from other serious cancers -- or other causes, period? When was the last time you paid attention to cervical cancer, or colorectal cancer? Why don’t any NLF teams wear ribbons to support Male Breast Cancer – something that kills, on average, 450 men per year? Pinkwashing: Where Does All the Money Go? In 2002, Breast Cancer Action launched a side project called “Think Before You Pink,” whose goal was to raise awareness over the types of companies that chose to go pink, and “encourages consumers to ask critical questions about pink-ribbon promotions.” Doing battle with so-called “pinkwashing,” their motto is “raise a stink.” Here, too, donations go to cancer research. The organization asks consumers to do some research before a pink product is purchased, for example:
In the race to tap into emerging economies for growth, many brands seem to have overlooked an opportunity that’s just as big, if not bigger: Muslims. Long perceived as a marginal subset of the global market, the emerging Islamic identity—centered less on politics and religion and more on a shared purpose and lifestyle—is quickly changing perceptions about Muslim consumers. Considering that over half the population of the “Next 11” countries is Muslim, it’s time for global brands to start paying more attention to this $2 trillion potential market. Moreover, the Arab Spring of 2011 proves that Muslims are willing to stand up for universal aspirations of freedom, individuality, fairness, and equality that religious extremists repress. Muslims are more global in attitude and outlook than we think The majority of Muslims is bound together under a common imaan or Islamic faith that defines not only their lifestyle and beliefs but also their attitude toward consumption. The adherence to and interpretation of imaan spans a wide spectrum across geographies and economies: from conservative and devout to ultra-liberal. Muslim liberals, a fast-growing majority, are often younger and more affluent, broad-minded, independent, assertive, and not very concerned about dated traditions that could keep them from living a cosmopolitan, globally relevant lifestyle. Overall, brands should focus on speaking to and connecting with the moderates and liberals who are poised to greatly influence the future of the global economy. Communicate a higher purpose While many consumers around the world have started to pay attention to substance, purpose, and a sense of greater good in a brand’s promise, this philosophy is part of Islamic teachings, and Muslims have long ascribed to it. The Body Shop, for example, has enjoyed considerable success in the Middle East mainly because of the brand’s ethical business practices that resonate with the teachings of Islam. Interestingly, HSBC Amanah attracts an equal number of Muslims and non-Muslims in Malaysia not just because its products are sharia-compliant (conforming to Islamic law), but because its conservative approach to financial management is supported by Islamic laws and resonates with anyone looking for safe investments. Invest in your brand promiseNestlé hasbecome the biggest halal food manufacturer in the world with $3 billion in sales annually. What’s the key to Nestlé’s success? Nestlé has invested in understanding the\ segment’s unique needs, has become part of local communities and created real operational changes by modifying 85 of its factories for halal certification. Some localization goes a long way In the Middle East and Africa, Nokia introduced phones loaded with a number of pertinent applications, including an Islamic organizer, prayer alarms and Islamic e-books. Sharpen sensibilities Global brands should make a serious effort not to offend any particular consumer segment and be mindful that Muslims not only have great purchasing power but also the power to boycott. Seize the opportunityMuslims form a quarter of the world’s population, are the fastest-growing consumer segment in the world, are becoming more global in nature, and have desires and unmet needs. Brand managers must work to understand Muslims’ beliefs, values, and lifestyle—and they may be pleasantly surprised at the crossover potential for Muslim-directed products and services. A few simple strategies will reap big rewards.