Last year’s most successful food/beverage and non-foods product launches were led by P.F. Chang’s Home Menu line ($101.6 million in year-one sales) and Pampers Cruisers/Swaddlers with Dry Max ($296 million in year-one sales), according to SymphonyIRI Group’s 2011 New Products Pacesetters report. Other top-10 food/beverage launches (in $ millions) included Thomas’ Bagel Thins ($73.6); Oscar Mayer Selects ($69.2); Folgers Gourmet Selections K-Cups ($58.4); M&M’s Pretzel ($58.4); Sun Drop carbonated beverages ($55.8); Kellogg’s Special K Cracker Chips ($50.6); Lean Cuisine Market Creations ($48.6); Gold Peak Chilled Tea ($44.3); and Bailey’s Coffee Creamer ($44.2). Other top-10 non-foods launches (in $ millions) included Gillette Fusion ProGlide ($169.4); U by Kotex ($74.6); Schick Hydro ($64.9); Maybelline Volum’ Express Falsies eye cosmetics ($46.5); Nicorette Lozenge ($45.2); Sally Hansen Salon Effects ($41.8); Tide Plus Febreze Freshness ($37.9); Ensure with Revigor ($37.5); and Maybelline Fit Me facial cosmetics ($36.2). The overall number of launches (not just the high-performing Pacesetters) was down 3% in 2011 versus 2010 (and down 13% versus 2008). That was due to non-foods launches, which declined to 896 versus 957 in 2010. Food/beverage launches rose a bit, to 665 versus 2010’s 647. Launch numbers have been slowly recovering since the onset of the recession (they dropped by 10% between 2008 and 2009), Susan Viamari, editor, Times & Trends for SymphonyIRI, tells Marketing Daily. Although new brands historically outperform brand extensions in first-year sales, 92% of food/beverage and 91% of non-foods launches last year were brand extensions. New food/beverage products yielded average sales of $35.4 million last year, versus $21.6 million for brand extensions. However, non-foods extensions outperformed new brands in 2011, with average sales of $22.9 million to new brands’ $14 million. The vast majority of new products fail to garner more than $7.5 million in year one (the minimum to make the Pacesetters lists). Last year, 77% of new food/beverage and 84% of new non-foods products yielded less than $7.5 million. At the other extreme, only 2% of food/beverages and 0.2% of non-foods products achieved sales of $50 million to $100 million in 2011, and just three launches over both categories reached more than $100 million. Over the past 10 years, fewer than 2% of all launches have reached $100 million-plus. “One lesson for manufacturers is, be realistic about your goals,” says Viamari. But Viamari also stresses that the trend to lower overall first-year sales levels reflects the new core driver of success for both food/beverage and non-foods launches: heightened targeting. While the top-10 lists are dominated by major CPGs, small as well as large companies are launching winners by listening to and anticipating evolving consumer needs and preferences, and focusing on highly targeted products. “Big or little, CPG manufacturers with a laser-like focus on true marketplace needs, at an increasingly granular level, will be the ones to enjoy new product success in the years to come,” says Viamari, adding that social media has also helped level the playing field. Food/Beverage Drivers In the food/beverage arena, recent targeted winners from smaller companies have included Udi’s line of gluten-free foods across meal occasions (2011) and Chobani, the Greek yogurt that was 2010’s top-selling food launch. 2011’s food/beverage launch hits also very much reflected consumer demand for convenient, yet out-of-the-ordinary products. With 55% of consumers eating out less frequently now than when the recession began (per SymphonyIRI’s Q1 2012 MarketPulse survey), it’s not surprising that 23% of last year’s food/beverage Pacesetters were complete dinner solutions (up from an average 18% over the 2002-2011 period). It also makes sense that that a substantial 12% of those were products that offered restaurant-quality ingredients/recipes and novel textures and flavor combinations -- products that lend variety and “pizzazz” to at-home meals. Indeed, the top benefit of 84% of food/beverage Pacesetters was variety in flavors/recipes, followed by new/unique recipes (64%), distinctive/new flavors (62%) and convenience/ready-to-serve (37%). Other categories showing high rates of innovation included candy and gum (accounting for 19% of all food Pacesetter dollars, through products addressing snacking trends including satiation, healthy eating, indulgence and on-the-go consumption); and meal makers/light meals/appetizers (18% of Pacesetter food dollars). Within beverages, coffee and teas saw an innovation surge driven by brands’ single-serve offerings, particularly for Keurig machines. Nine coffee and tea innovations achieved Pacesetter status (representing 49% of total Pacesetter beverage dollars), versus an average of four per year between 2002 and 2011 (averaging 10% of total Pacesetter beverage dollars). Carbonated, sports and energy drinks were 2011’s second-most active beverages launch category (accounting for 23% of Pacesetter beverage dollars), but that was significantly down from an average of 45% for 2002 through 2011. Natural/organic was the dominant health/wellness benefit (23% of food/beverage Pacesetters made this claim, versus 19% in 2010). Reduced-calorie was second, at 20%, down from 23% in 2010. High fiber/whole grain is on the rise (23%, versus 20% in 2010). Added vitamins/nutrition declined from 25% of Pacesetters in 2010 to 19% last year. Lower fat/fat-free claims were unchanged (15% of Pacesetters made them in both 2010 and 2011). On a projected basis, top “rising star” food/beverage brands include Dannon Oikos, Dr Pepper TEN, Healthy Choice Top Chef Café Steamers, Kraft MiO, Magnum Fz Novelties, Nabisco Newtons Fruit Thins, Skinny Cow Chocolate Candy, Sparkling ICE bottled water, Starbucks K-Cups and TruMoo milk. Non-Foods Drivers In the non-foods sector, tech advancements and product performance drove new-product success, reflecting consumers’ desire to save money (but realize professional-quality results) through DYI activities, says Viamari. Seventy-six percent of non-foods Pacesetters offered a “new technology” benefit, and 75% offered an “expanded/improved effectiveness” benefit (tied with “variety,” also at 75%). As examples of tech benefits, Viamari cites the Gillette Fusion ProGlide (positioned as achieving close shaves with greater comfort through its thinner, coated blade and accompanying moisturizing/lubricating cream); Pampers Cruisers/Swaddlers with Dry Max (20% thinner but two times more absorbent); and cosmetic foundations that make it easy to pick the right shade for one’s skin tone. Within health/wellness benefits, “enhanced moisturizing” led (21% of non-foods Pacesetters made this claim). “Added nutrients” and “more natural/organic” followed, accounting for 16% each of non-foods Pacesetter launches’ dominant claims. Personal/hygiene-care launches accounted for 29% of non-foods Pacesetter launches dollars in 2011 (down 1% versus 2010). Beauty-care launches grew significantly (40 launches representing 24% of non-foods Pacesetter dollars, versus 20% in 2010), reflecting manufacturers’ response to the demand for professional-results at-home beauty treatments. “Other” products’ share of Pacesetter non-foods dollars jumped to 21% (from 17% in 2010). Those products included a 15% share for baby-care products, and 4% and 3% shares for paper/plastics/foils and air fresheners/candles, respectively. Home-care detergents and cleaners’ share of Pacesetter non-foods dollars declined to 7%, from 11% in 2010. The big winners not only made cleaning easier, but had “tie-breaker plusses” like fragrances, extended effectiveness and “green” benefits claims, according to the report. Healthcare products’ share of non-foods Pacesetter dollars also declined a bit (to 14%, from 16% in 2010). Enhanced benefits and patentable advances drove success. Pet care products’ share of non-foods Pacesetters dollars declined slightly (to 6%, from 5% in 2010). In this category, benefits relating to enhancing the quality of life and longevity of pets drove success. Projected “rising stars” among non-foods Pacesetters include Allegra, Clairol Nice ‘N Easy Color Blend Foam, Colgate Optic White, Downy Unstopables, Huggies Little Movers Slip-Ons, John Frieda Precision Foam Color, Kibbles ‘n Bits Bistro Meals, Milo’s Kitchen dog food, Olay Body Collections, and Sally Hansen Crackle Overcoat.
BMW North America is preparing its largest-ever national retail and advertising push aligned with its sponsorship of Team USA. The campaigns will include national and local television ads; digital advertising; and a new version of a retail program launched last year to get people to test drive BMW vehicles, a program that also raises money for Olympians. There will also be promotional elements dangling trips to the games. At retail, BMW is running its second "BMW Drive for Team USA," which invites consumers to go to BMW dealers to test drive the new 3 Series. For each test drive BMW North America will donate $10 to Team USA, for a maximum donation of $200,000. The automaker did this program last year as well, but Stacy Morris, who handles marketing and culture communications for the Woodcliff Lake, N.J.-based BMW North America, says this time around the program expands from 277 test drive events last year to over 300 events. The events will include appearances by U.S. Olympic and Paralympic hopefuls, former athletes, and other Olympics personages. The automaker's Mini USA division will run a separate program called "Mini Takes the States," a series of events for Mini enthusiasts benefitting the Paralympic Team. Morris tells Marketing Daily that BMW North America's Summer Olympics ad buy on NBC will be the biggest single media buy ever for the company. She explains that the BMW Group corporation is handling worldwide efforts around the games, while BMW North America sponsors Team USA. "The marketing campaign is a significant buy with NBC, as we are the foreign automotive advertiser for the London Games, exclusively." Morris says the test-drive program will be supported this year by CRM and direct-marketing efforts to owners and prospects -- not TV ads, as was the case last year. Dan Creed, VP of marketing for BMW of North America, said in a statement that last year the automaker had 20,000 customers participate in the "BMW Drive for Team USA" events, with dealers getting a 23% conversion rate, "yielding the most-ever purchases following a marketing event,” he said. BMW North America is supporting 11 Olympic and Paralympic athletes and hopefuls, collectively the "BMW Performance Team U.S." In London this summer, the automaker will have a pavilion above the Waterworks River near the Olympic Stadium and the Aquatics Center. BMW will also have something like 4,000 vehicles including low-emission diesel, hybrid and electric cars, motorcycles and even BMW bicycles at the behest of the London Organizing Committee of the Olympic and Paralympic Games.
With just 100 days left until the Summer Olympics in London, marketers are bringing their Gold Rings game, with Procter & Gamble, McDonald’s and Oakley all unleashing big campaigns. Procter & Gamble, which is expanding its attention-getting “Thank You Mom” campaign to make it the biggest in the 174-year-old company’s history, has released its “Best Job” video on YouTube and Facebook, a short tearjerker that celebrates the role that moms play in raising Olympians, directed by Alejandro González Iñárritu. The film, the basis of the TV spots that P&G will run leading up to the games, was shot in London, Rio de Janeiro, Los Angeles and Beijing. The campaign will run online, in social media, TV and print, as well as with in-store promotions, through August. Overall, P&G has committed to raising $5 million to support local youth sports programs around the world via this effort, through a portion of sales and donations from such brands as Pampers, Tide, Gillette and Pantene. McDonald's is tipping its hat to the 100-day mark with its Champions of Play program, developed for kids ages 6-14. The effort includes bringing 200 lucky kids, many of them acting as young journalists, to behind-the-scenes experiences in London, and a microsite devoted to its Olympic Games Challenge, featuring nine Olympians. The company says the effort will be the largest in its Olympic history. Kids can try their hand at the Champions of Play program, previewing now and officially launching in early June, which combines imaginary events (running round the world and pole vaulting to the moon, for example) with real life activities. In an artsier vein, sunglass marketer Oakley unveiled its “Beyond Reason” effort, starting with a specially commissioned art installation by New York artist Natalie Frank, leveraging its relationship with U.S. Gold Medal Decathlete Bryan Clay. During the next 100 days, the company will continue to partner its family of athletes with artists from around the world, including U.S. sprinter Lolo Jones, U.S. beach volleyball player Kerri Walsh, British cyclist Mark Cavendish, South African sprinter Oscar Pistorius, Australian cyclist Cadel Evans and Spanish triathlete Javier Gomez. The art pieces inspired by each athlete’s “Beyond Reason” vision are scheduled to be displayed together at the London Design Museum on July 26, the night before the opening ceremonies. Oakley, a subsidiary of Luxottica Group, says the effort is timed to help support its new RadarLock performance sunglass.
Regardless of how technologically advanced a neurosurgical suite, or how talented the surgeons working the room, if the patient isn't on the table within the "golden hour" after having been stricken with such catastrophic cerebral events as aneurism or stroke, all bets are off. And until recently, the odds would have been for the house in the southern part of the Garden State -- an area that includes Burlington, Ocean, Camden, Gloucester, Salem Cumberland and Cape May counties. Until now, the only comprehensive stroke and neurosurgical facility was at Atlantic Care, which is in Atlantic City, and close to nothing but water and slot machines. But the new Kennedy Neuroscience Center of Southern New Jersey, part of the Jefferson Neuroscience Network, has changed that map for people south of I-195. And a new ad campaign, via Philadelphia-based LevLane, targeting women 25 to 54, includes a 30-second TV spot talking about how the $5.7 million, 1,098-square-foot Interventional Neurosurgery Suite means faster response times, top doctors and cutting-edge technology. The TV spot shows a helicopter setting down at the Kennedy Hospital in Washington Township with a stroke victim who is wheeled into a state-of-the-art neurosurgical suite. There, we see the neuro team doing contrast dye MRI series on the hybrid surgical/diagnostic table using the über futuristic Phillips Allura Xper Bi-Plane 3-D intervention radiology imaging machine. The commercial closes with the message: “This is a life-saver for our community,”and the tag “When moments matter, we’re ready.” The spot will run during prime time on ABC, CBS, Fox, and NBC on shows like "Biggest Loser," "The Voice," "The Bachelor," and sports programming including the Summer Olympics. On cable the ad will run on A&E, Family, Food Channel, HGTV, Lifetime, TLC, TNT and USA. The campaign will also have full-page ads and fractionals in local newspapers and magazines, and outdoor billboards at interstate and primary thoroughfare locations. The hospital says Gloucester County -- home to one Kennedy Health System facility -- and neighboring Salem County have the state’s highest stroke death rates. Previously, over 400 neurosurgery cases a year had to be transferred out of the Kennedy Health System, primarily to Philadelphia hospitals.
Financial services company BBVA Compass and the National Basketball Association are teaming up again for a mobile grassroots basketball tour called BBVA Compass NBA Team. The tour will stop in six markets over two months. Scheduled stops include San Antonio, Scottsdale, Ariz., Birmingham, Ala., Addison, Texas, Denver and Houston. The family-friendly mobile tour features a variety of activities that provide an immersive basketball experience for fans and festival attendees. New this year, the Larry O'Brien Trophy, awarded each year to the NBA Champions, will be at each tour stop, with the opportunity for fans to take a photo with it. "Team. Works. on Tour" will feature a full-size basketball court where fans can showcase their skills and participate in a variety of shooting contests and skills challenges such as the Direct Deposit 3-Point Contest, Free Throw Frenzy and Build My Savings Dance-Off. Fans also can compare their hand size, foot size, height and reach to those of NBA players at the Get-A-Grip, Walk of Fame, Tall and Short, and Arm Span interactive displays. NBA players, legends and coaches will interact with fans, sign autographs and offer basketball tips to future and current NBA hopefuls. “We’re pleased to be bringing the BBVA Compass NBA Team. Works. on Tour back for a second year,” said Manolo Sánchez, BBVA U.S. country manager and BBVA Compass president and CEO, in a release.“Not only are the activities fun for NBA fans of all ages, they also promote our values of teamwork, effort and fair play.” NBA Cares and BBVA Compass are also conducting the “Team. Works. In Schools.” Initiative, which aims to revitalize schools throughout the BBVA Compass Sunbelt footprint. Revitalizations are taking place at schools in Houston, Phoenix, Dallas, San Antonio, Denver and Birmingham, Ala.
Who says the Internet isn’t a branding medium? Every day, more and more brands are creating compelling, original content, and the medium of choice for these initiatives is Web video. The latest example is Ford Motor Company’s collaboration with eco-focused media company SHFT.com, “The Big SHFT: 10 Innovators Changing Our World”, a documentary series profiling industry professionals who are trying to transform their industries with eco-friendly sustainability solutions. The series, which is directed by Gilly Barnes, will run on several platforms -- notably AOL and its Huffington Post property, as well as SHFT.com, Ford’s own media properties, and U.S. Virgin Airlines' in-flight entertainment. It will be comprised of short films profiling 10 innovators whose eco efforts are affecting industries such as food, fashion, urbanization, technology and design. According to a Ford spokesperson, the future of mobility and transportation will be the topic of one of the films, and hybrid and electric vehicles will play a role in that. However, there will be no advertising to promote the series. "Sustainability is the biggest issue facing business in the 21st century, and the problem will not be solved by one person or group," Bill Ford, executive chairman of Ford Motor Company, said in a statement. "How we answer the challenge of the future of mobility will have a lasting impact on generations to come.” Ford developed the series along with SHFT.com co-founders Adrian Grenier and Peter Glatzer; Grenier is an actor and filmmaker who most recently starred in the HBO series “Entourage,” while Glatzer is a Hollywood producer. The documentary collaboration is part of a broader push into green initiatives by Ford, which is aiming to position itself as a thought leader in sustainability by encouraging consumers to take a more eco-friendly approach to their lives. This includes a nationwide electric vehicle education program in partnership with Green Festival, where the automaker will award $5,000 grants to green initiatives in major U.S. cities. Ford will also donate an electric charging station to more than 25 communities at locations voted on by local residents.
It's no secret that we live in the Era of Relevance. Consumers are in control -- they want relevant offers online, on the go and at the store. In today’s digital world, 50 to 500 milliseconds may be all the time there is to say something interesting to consumers and secure their intent to purchase before they click away, never to come back. They reward relevance, but punish irrelevance, by disengaging -- and worse, showing their dissatisfaction through social media. The right experience for the right consumer at the right time Achieving the R Factor is delivering consumer relevance at scale. It is the ability to consistently unleash relevant experiences across all channels, consumer intent segments and geographies. Google, Amazon, Apple and Facebook have built their reputations and business models with a singular focus on shaping and relevantly serving their consumers’ intents at scale. These masters of consumer relevance deliver the right experience to the right people at the right time consistently, across all channels. For example, Google’s Quality Score algorithm measures consumer relevance and directly affects how much advertisers pay for an ad. Amazon built its business model on consumer relevance, offering consumers automated recommendations for individual purchase ntents. With this model, Amazon morphed from an online bookseller to the number one retail brand, disrupting notable brands from Borders to Best Buy. Amazon’s year-over-year growth for the first quarter of 2011 was more than 38 percent -- three times the growth of the rest of the e-commerce market. Apple's iTunes has changed the way people listen to music and interact with digital content. Having the R Factor does not mean creating more campaigns and Web sites with associated costs to appeal to each consumer segment. It is about using the efficiency and flexibility of today’s technology and analytics to make relevance affordable and effective at every moment of truth -- every time. It means that less is often more -- smartly putting daa and technology to work to ensure that each campaign precisely targets the right consumers and each experience is directly relevant to each target’s intent. More and more, marketing is about improving and sustaining business performance while controlling costs. It is about remaining present and relevant to prospects at multiple moments of truth while justifying budgets and demonstrating quantifiable return on spending. From relevance to relationships Primary benchmarking research has recently been conducted across industries to better understand how relevant companies are to consumers and how trends differ across industries. The research assessed attributes such as intent coverage and messaging relevance at various moments of truth -– from ads to Web sites. In every industry, there were leaders and laggards. Retail and travel industry players were among the highest performers, likely backed by technology platforms that enable scale and an immediate understanding of the do-or-die imperative of relevance. The study also revealed a direct link between a company’s relevant interactions and consumer regard for the brand. The greater the number of relevant interactions, the stronger a consumer’s relationship with the brand, and the more likely a person is to shop and make purchases. Moving forward, companies must measure brand value in terms of cumulative consumer relevance -- or they will be left behind. Transforming marketing - and business While the benefits of the R Factor are clear, most companies are not yet positioned to fully realize them. Whether a company takes a transformational or phased approach to reinventing performance, the pursuit of the R Factor begins with several essential and connected building blocks: Mend organizational seams Delivering integrated consumer experiences across every channel requires unifying consumer strategies within marketing, across to sales and service, and in collaboration with IT Connect and decipher big data Integrate isolated data from functional and technical silos to glean proprietary consumer insights that inform how to precisely flex experiences based on your consumers’ contexts and intents. Balance butterflies and bytes There is no single perfect and persistent experience for all of your consumers across all of their intents. Combine cutting-edge creativity with cutting-edge analytics in a rapid loop to continuously optimize your consumers’ experiences. Drive agility and innovation Both the culture and strategy must aggressively promote rapid trialing, integration and scaling of the latest creative, technology and analytical innovations while diligently measuring performance along the way.