While it’s still far too soon to count the cost of Hurricane Sandy, retailers didn’t even wait for the winds to die down before offering help. Retailers have come to regard themselves as a sort of unofficial Red Cross, and this storm was no exception, whether it’s Walmart offering behind-the-scenes help to state agencies, or Sears shipping portable generators and flashlights to East Coast locations. “Our associates are already helping local communities and other associates who have been impacted by the storm,” a spokesperson for the Home Depot emails Marketing Daily. “We are helping local disaster relief agencies, including the Red Cross, as they assess damage and determine the clean-up and rebuilding efforts that will be needed. As these needs are determined, Team Depot, our associate-led volunteer force, will be deployed to assist.” Prior to the storm, she says, “we pre-positioned loads of product outside the strike zone with recovery supplies. Those trucks have already starting rolling this morning to our stores, filling essential products, such as generators, cleaning supplies, chainsaws, tarps, batteries, flashlights, pumps, and shop vacs.” It has already activated Homer Fund, a nonprofit charity funded by Home Depot associates for Home Depot associates, is ready and standing by to help associates with their needs. Target, too, says its stores are already making donations in communities. “These donations are in response to local needs and have included basic items such as pillows and cribs,” a spokesperson says, via email. And Walgreens, which says a number of its facilities and stores were without power and that it is re-opening stores by the hour, is “in contact with the American Red Cross to offer assistance to first responders and to local communities impacted by the storm. Walgreens also anticipates requests in the coming days from relief agencies, charitable organizations and emergency management services.” Before the storm hit, it deployed 180 electric generators and supplies of dry ice to keep medications cold. But stores that don’t sell storm essentials are still trying to sort out the mess and get back to business. Macy’s, for example, was able to begin reopening stores in affected areas as early as 10 a.m. on Tuesday. But “it is impossible to estimate lost sales until we know how many will be open/closed and the timing of reopenings,” a Macy’s spokesperson tells Marketing Daily, also via email. “The longer the power is out, the more retailers and their stores will be impacted,” a spokesperson for the National Retail Federation tells Marketing Daily by email. “Some companies will see increased traffic with people looking for shovels, generators, blankets and other essential items, but others who have had to shut stores or who are based in towns where people cannot leave their homes will certainly see a difference in their October and even early November sales.” Meanwhile, “store losses for the eastern U.S. from Atlanta to Boston are probably $350 million a day, but could be as high as $500 million a day,” Walter Loeb of Loeb Associates, tells Women’s Wear Daily, with lost retail sales at New York City stores that could exceed $30 million a day.
Losses incurred by the entertainment industry from Hurricane Sandy could reach into the multimillions dollars when all is said and done, though it’s still way too early to put an exact number on things. As Hurricane Sandy bore down on New York City Sunday night, producers and venues began shutting down shows on Broadway and special events throughout the city for Monday and Tuesday. (Television and film production was also mostly halted though David Letterman and Jimmy Fallon opted to tape shows on Monday night without audiences.) Published reports indicated Wednesday shows might still come off, but power and transportation issues could mean more cancellations. “With no power, there’s no show,” Paul Bassman, president of Doodson Insurance Brokerage in Dallas (which provides insurance for live shows and festivals), tells Marketing Daily. “Typically, the Broadway performances contain some sort of business interruption insurance. If [cancellations] drag on, they could be making some claims.” Bassman declined to estimate a dollar figure on the losses that could be incurred. Though he noted that no major festivals were called off due to the storm (and that many live performance venues are dark on Monday nights, when the brunt of the storm hit), the wide swath of area affected by the storm could make the losses significant. “It could get really big, especially with Broadway,” he says. “There’s a lot of people affected by this.” Elsewhere in the city, other organizers were looking at how (or whether) to keep their events on track. As of Monday evening, organizers were still hoping to have the ING New York Marathon come off as scheduled on Sunday. They were regrouping in the aftermath of the storm, however, and a determination is expected later this afternoon. The National Basketball Association, meanwhile, was also evaluating whether to postpone the New York Knicks/Brooklyn Nets game, scheduled as opening night for the latter team in the new Barclays Center in Brooklyn, according to USA Today. Even though it's going to be tough to get to the Brooklyn Academy of music Tuesday evening, "Jimmy Kimmel Live!," which was cancelled Monday night, will be happening. The event, sponsored by Hyundai to promote its Santa Fe crossover, as part of an effort to make parents cool again, will be happening come hell or high water. Doug Deluca, co-executive producer of "Jimmy Kimmel Live," says as much, per Chris Hamer, an integrated marketing executive who has worked with both Hyundai and Kimmel. Outside of New York, entertainment events were more sporadic. With Atlantic City’s boardwalk reportedly destroyed in the wake of the hurricane, it’s unknown when the casinos and entertainment venues that are the city’s lifeblood will return to operation. While published reports said the casinos had only suffered minor damage and could re-open quickly, concerns about infrastructure around the city remained. The shutdown costs the city $5 million in lost revenue every day, according to the Associated Press. --With Karl Greenberg
Toys R Us is taking the wraps off its massive holiday marketing campaign, featuring Channel TRU’s fictional newsroom and a handful of grade-school reporters. The effort, which involves some 70 different videos for broadcast and digital use, always comes back to a single question: “Why Shop Anywhere Else for Toys? Why?” Cameras cut away to different reporters, and true to TRU’s “all the toys, all the time” tagline, give details on the retailer’s new price-match and lay-away programs, as well as highlighting specific toys. Ads for the chain are always a little tricky, Peter Reiner, the chain’s SVP/marketing, explains to Marketing Daily, “because while it may be the kid who decides what toy is really important at the holidays, it’s the parents who decide where to shop. What we think is so special about this campaign is that it hits all the chords, talking to adults in a kid-centric way. These ads find that balance between adults and children.” The campaign, created by The Escape Pod, in Chicago, positions Toys R Us as “the toy authority.” TV will continue to air on all major networks, cable stations and such syndicated shows as “Live! With Kelly and Michael,” “Rachael Ray,” “The Ellen DeGeneres Show” and “Dr. Oz” throughout the holiday season, reinforced with radio, print, in-store elements and social media. What’s missing, at least this year, is Geoffrey, the chain’s animated giraffe mascot. “We use Geoffrey where he makes sense. But this approach, which is more integrated and highlights what makes us different from our competition, makes the most sense for us right now.” The Toys R Us jingle is also part of the campaign, he says, and will become more prominent throughout the season, especially in its social media efforts, as the campaign moves on. While most of their parents could probably sing the old tune, “it turns out that none of the kids we were casting knew it,” Vinny Warren, creative director at the Escape Pod, tells Marketing Daily. “So we even created a sing-along music video to teach kids the words.” Adds Warren: “I love the way the campaign it looks and feels. It’s interruptive, but not in an annoying way. It’s got a nice vibe.”
Italian-based licensed memorabilia company Panini has extended, through its Dallas-based Panini America division, its four-year-old a partnership with the NBA. The new deal puts Kobe Bryant in the spotlight around a collectible card platform that includes a special Kobe Bryant Anthology collection of cards. Mark Warsop, CEO of Panini America, said Bryant will be spokesperson for Panini and that the anthology collection will be included in all of Panini cards throughout the year. He says that there's still huge value in old-school cards, adding that digital media haven't killed them. "You can't take away that tangible feeling of opening a packet -- you can't get that in the digital format," he said. "Kobe is a key component of that. When you open the packet and see Bryant's card, that can't be replicated in any other format. You see kids playing on video games more and more often, but you see their imagination taking off in real collectible figures and cards." He added that Panini has 5,000 player contracts across eight major sports organizations including the NFL, NFL Players Association, the NHL, the MLB Players Association, and FIFA World Cup. The deal supports the NBA's global strategy as the organization works to extend its presence in BRIC markets, since the merchandise company is in 40 countries. "What they have have demonstrated to us is that the card business is global. They have multiple points distribution worldwide," said Sal LaRocca, EVP of Global Merchandising Group, NBA. "One primary business goal of the NBA is to take merchandising business as far as we can. They demonstrated the capacity to do that." The global business for sports merchandise and memorabilia is huge, notes Ken Ungar, president of Indianapolis-based U/S Sports Advisors and former first chief of staff at the Indianapolis Motor Speedway, concurs. "It's a billion-dollar industry in the U.S. and $4 to $5 billion worldwide,” he says, adding that his own son just bought a $40 box of football cards. "I see in other kids the same thing: it transcends generations. Yes, kids are voracious consumers of digital media, but you can't own fantasy football picks. Digital is access but not ownership." Panini has expanded heavily in the Far East with traditional U.S. trading cards, but also market-specific products with a unique in-language SKU for China. Online elements include a Panini-curated blog that gets over 400,000 per month, per Walsop, and that cards have virtual links as well. "We have put individual codes on cards that when inputed into our online platform allows you a virtual version of physical collection, so we try to use social to enhance the experience. There are also "Twittergraph" athletes can card and put their Twitter handle on it as well. "It's been fun to be a part of bringing Panini to the U.S. market," said Kobe Bryant in a conference call yesterday. "I like being part of that: thinking out side the box and doing something new and different. It's great for the globalization of the NBA brand since Panini is global. I doubt we will ever catch soccer, but we want to make it a formidable challenge."
The new EA game "Need For Speed Most Wanted" is out, and Ford’s Focus ST has a big part. The automaker has a new TV broadcast trailer featuring Focus ST that touts the game. The Ford Focus ST which is, in fact, the most prominent vehicle in the game, also had a role in in Forza 4, as part of a licensing effort with Microsoft and in Forza Horizons this year. “Having our vehicles in games gives consumers the first chance to drive and experience our vehicles before they go off to a dealership,” said Brian McClary, Ford Social & Emerging Media Analyst. McClary says the idea is to give people a chance to virtually drive the vehicle and then check it out in real life. He adds that the ROI is strong. "Most recently, for our EA integration, we saw a 36% increase in brand rating, and a 28% increase in purchase intent," he says. "But it has been a much more upper-funnel activity, especially in ST world. We want to put it back on people’s radar to compete with VW and Subaru." McClary says also that the value of game placement exceeds the perceptual limitations of a platform that appeals to kids and doesn't do justice to the product. "People of all ages are spending more time in alternative channels, not just TV, radio and print. On Xbox, for example, 60% of the time people are consuming content." Ford recently did a similar program for Mustang, called the Mustang Customizer, which has also just launched on Xbox, that lets people create the ideal Mustang using Kinect and voice command. McClary says that will be the original portion of the program "We have had over 1.4 million vehicles customized." Essentially, programs like Ford's Focus ST integration on the EA driving game involves both the marketing and licensing divisions at Ford, with licensing smoothing the way for a marketing structure around product integration. What made it easy is Ford's long relationship with EA starting in the late 1990's around "Need for Speed." The new TV spot touting both the game and Focus ST is enjoying a sizeable media buy on platforms like Monday Night Football, with a two-minute version online. "The new 'Need for Speed' game is out today, but we have had discussions since February or March, so there's a long lead time. The reviews are positive so far."
Gluten-free (GF) foods and beverages saw annual compound growth of 28% between 2008 and 2012 in the U.S., and will reach an estimated $4.2 billion this year, according to a new report on GF foods and beverages from research publisher Packaged Facts. The 2012 estimate has been revised upward from last year’s, which projected sales at $3.9 billion, reflecting faster-than-expected growth. Looking ahead, GF products’ growth will slow somewhat, but still enjoy a CAGR of 8.3% over the next five years (including 15% growth next year), to reach $6.6 billion by 2017, the report projects. Packaged Facts defines GF foods as those that are clearly marketed as GF, excluding those that couldn’t contain gluten in the first place. In August 2012, 18% of adult consumers surveyed by Packaged Facts reported having bought or consumed products tagged GF within the past 30 days, up from 15% in October 2010. In addition to the skyrocketing growth of GF purchases by those with celiac disease or sensitivity to gluten (nearly 90% of these consumers now report buying such products), the share of overall shoppers who are buying more GF products has about doubled, to 17%. In fact, the #1 reason cited by consumers for buying GF products is that they believe these products are generally healthier, points out Packaged Facts research director David Sprinkle. GF products have a “halo” for a number of reasons. One is that many of the companies that produce them tend to in general produce all-natural and organic foods free of pesticides, preservatives and genetically-modified organisms (GMOs) -- and that “free-from” designation of course implies that these foods are healthier than the alternatives. Moreover, more than a third (38%) of consumers surveyed this year indicated that some foods that they buy primarily for other reasons (organic, vegetarian, GMO-free, allergy-friendly, etc.) are also flagged as GF. This “trial” factor, combined with growing awareness of celiac disease, food allergies and related disorders among the public and medical community, plus rapidly expanding availability of consumer-friendly GF foods (including expanding assortments in mass-market food retailers) are among the factors that will continue to drive GF growth, according to the report. The most popular categories of GF foods in food/drug/mass retailers include snacks/granola bars, frozen dinners/entrées/pizza, and crackers/salty snacks, according to Packaged Facts’ analysis of SymphonyIRI sales data. Smart Balance, which now owns the Glutino and Udi’s brands, is by far the leader among specialty producers of GF products, according to the report. Interviews by Packaged Facts also confirm that GF consumers are exceptionally reliant on word-of-mouth (fellow GF consumers’ assessments of GF products), and that GF consumers are extremely brand-loyal.
Trick or treat! It’s Halloween, when ghostly-ghoulish clients arise from their resting places to drive fear into the hearts of earnest PR practitioners. I don’t mean the walking dead or the blood-sucking undead -- rather, I refer to those clients who sometimes resemble our worst nightmares. Here are a few creatures to watch for as you begin to budget for the coming PR season. The Invisible Man/Woman What an exciting new client, what a great product/service, how timely, how promising, you think as you enthusiastically prepare the PR content kit and tender it for client approval. And then… radio silence… where’s the client who once answered emails in seconds and always took your calls? No one seems to know -- but you can’t reach him and your liaison seems out of the loop as well. Tip: Copy everyone in the client group. Reconfirm deadlines, calls and meeting dates days ahead. Try color-coding messages from green to the red zone -- leave no room for their excuses. The Vampire Garlic and crosses won’t slow down the vampire client, who will suck your creative lifeblood -- and your budget -- dry with constant demands for more and faster service, unexpected requests and surprise dictates. If you think sundown brings an end to the workday, the vampire client proves that’s when the action begins. Tip: In addition to buying a sharp stake, try to keep your distance. Be sure that all approved activities are confirmed/approved in writing, along with budget and billable hours. Turn your cell phone to stun by 9:00 p.m., unless you are involved in time-sensitive activities. The Zombie Sitting at the conference table staring off into space, one wonders if he/she is alive or dead. Don’t expect the zombie client to partner up and contribute much beyond a groan or two. They can’t keep up with your pace, but look around and the zombie is shambling along, teeth snapping, ready to bite you in the neck if there’s nothing else to eat. Tip: Keep feeding them scraps (of information) since they are unable to process complete reports. Use lots of short, to the point emails and reinforce every success before their appetite becomes intolerable. The Werewolf He’s the perfect gentleman for 28 days of the month, but as the moon glides into full phase something horrific occurs as the werewolf client transforms. Keep those silver bullets at hand, as this client will jump you without the slightest provocation or warning. The werewolf client is completely insatiable -- never satisfied -- and moreover, doesn’t remember his monstrous ways the next day. Tip: Keep smiling, but carry a big stick in the form of reports. Don’t let the werewolf forget you are busting your butt on his behalf and don’t wait for the full moon to tell him so. Stay buttoned up as you memo/report/analyze his account to death. The Witch She’s cute, sexy -- so unpredictably dangerous. The season of the witch typically arrives just as you are about to deliver that status report you are so proud of. She’s still smiling -- but watch out for that spell from nowhere, when she realizes she didn’t get the cover of that magazine, or learned that her story was only published online. Tip: Cast a spell on her. One must appease the witch but explain how your every action is bringing her closer to her goal. Mix your spell well, with a variety of ingredients from releases, newsletters, podcasts, interviews, etc., that demonstrate she is the apple, rather than the crabapple, of the media’s eye. The Frankenclient He’s the strong, silent, nearly incoherent type that you don’t want anywhere near a TV camera. This high-energy bull in a china shop can’t get out of his own way as he stumbles through interviews, forgetting copy points and lapsing off message -- then threatens to tear the journalist limb from limb for trying to steer the conversation back on track. Tip: Keep out of reach at fear of professional dismemberment. The Frankenclient is too strong to deal with, too locked into his ways to educate and too unpredictable to manage. A high-voltage approach will only charge him up, so you better flee.
In the hours leading up to Hurricane Sandy, I get a lovely email from USAA, which sells me homeowner insurance. It tells me how to best equip my smartphone for the coming storm (set up a texting-tree) and offers advice on ’cane-proofing my casa. Less than an hour later, my domestic precautions are interrupted by a robo-call from Comcast, my cable provider, alerting me to the storm’s approach and warning me that I might lose service. So why does one company’s storm message seem comforting and genuine, and another’s rude? “Cognitively, we experience brands as people,” Craig Bida, EVP of cause branding for Cone Communications, tells Marketing Daily. “One company was offering you help, and people can sniff out authenticity in these messages. Whether you’re a local business, or a multinational corporation, you want to be seen as a good neighbor, and not as exploiting the tragedy. The wrong message breeds resentment and criticism.” The key thing is keeping relief efforts, however informal, in keeping with the brand, adds David Hessekiel, president of the Cause Marketing Forum and co-author of Good Works! He says he is impressed, for example, by tweets, Facebook posts and email from Barteca, which owns a small chain of restaurants in the Westchester and Connecticut area. “I got a personalized email, saying its restaurants would open at noon, and that 'we will have working bathrooms, outlets available for charging, and free Wi-Fi for internet. Come on down if you need us.’” “I have no idea if I’ll head down to the restaurant or not,” says Hessekiel, who is still without power. “But it certainly reinforces my view of that brand as an excellent neighborhood business.” The key, he says, is that it clearly wasn’t exploitive. Ria Rueda, the chain’s director of marketing, says the email went out to roughly 1,000, as well as via Facebook and Twitter. “It was important to us that people know we didn’t expect them to buy food. We invited people to bring their own food, if they wanted.”) Bida says, when possible, brands should look for tie-ins that are uniquely suited to their products and personality. For example, Procter & Gamble, where he used to work, routinely brings Duracell batteries and flashlights into disaster zones; its Tide brand uses mobile laundry services to help. And within hours of Sandy, United Airlines had offered matching donations, which customers could also make in the form of miles. Both Bida and Hessekiel expect that while corporations will act quickly to raise funds for Sandy’s victims, the timing of the storm means those efforts will soon give way to holiday-related charitable efforts, which have been planned for months now. “We’ll likely see an immediate burst of very authentic calls to action,” says Hessekiel. “But while this storm is awful, it’s not on the scale of a Hurricane Katrina or a tsunami. The cleanup will likely be much shorter term.” And much of the effort will be local, adds Bida, pointing out that much of the social media chatter is already aimed at smaller efforts. “There’s a limit to how interested people in California will be in this,” he says. “But since Sandy’s worst deadly effects were in Haiti, fundraising will also have global reach. So there’s a chance for marketing touch points to be both very broad and very local.”