Observers can be forgiven if they need a scorecard to keep up with the commotion in the dollar store category: The latest development is that Dollar General intends to persist in its $9 billion pursuit of Family Dollar — despite some antitrust hurdles. Family Dollar, meanwhile, would prefer to take the $8.5 billion offer it has gotten from Dollar Tree. And all that is happening at a time when both Walmart and Target, who also sell plenty of stuff to lower-income shoppers, are struggling with declining traffic and looking for ways to woo strapped shoppers back into their stores. With the economic recovery breathing new life into luxury marketing, it’s easy to overlook the shifting demographics among poorer consumers. “The dollar channel continues to grow because it's so well aligned to the needs of the core, low-income shopper,” says Mike Paglia, director of retail insights for Kantar Media. “These are individuals who are living paycheck to paycheck and have a finite amount of money they can spend on consumables. They're not necessarily looking for a good deal, or the best price per ounce. Instead they want the lowest price on an item, period. The limited assortment in a dollar store means that the low income shopper is less tempted by the vast assortment they might encounter at a big box store.” Dollar stores have also gained in popularity among many better-heeled consumers because they are more convenient. “Dollar stores are a quick trip, taking less than 10 minutes, or about half the time your average trip at a Walmart takes,” he tells Marketing Daily in an email. “Shoppers new to dollar stores are often surprised that they can get the exact same items that a big-box store would carry but at a significantly lower price.” The Food Marketing Institute says dollar stores, along with other nontraditional formats, continue to chew away at conventional grocers, as well as stores like Walmart and Target. It says dollar store sales have climbed from $272 per square foot in 2000 to $337 in 2010. “And since 1995, the dollar channel has built an additional 58 million square feet," it reports. But while the category is still expanding, it’s no slam-dunk, as Dollar General’s results show: Same store sales gained just 2.1% in the recent quarter. “Growth moderated as we moved through June and July,” says CEO Rick Dreiling in its release, “given the competitive environment and a consumer who, although resilient in the face of economic uncertainty, remains cautious with her spending.”
Hyundai is returning for its fourth year as NCAA college football sponsor with an integrated campaign touting the brand’s car lineup. The effort also has a strong regional focus around the 17 college football programs it sponsors through IMG College. The campaign -- comprising TV, print, radio, digital, and social media -- also brings in Santa Monica, Calif.-based YouTube and social food network Tastemade, adding spice to an experiential component at each of the schools it sponsors. The campaign, via Innocean U.S.A, Hyundai's agency of record, includes a national TV spot and a raft of regional ads to air in college markets where Hyundai-sponsored teams are located. The national spot, “Hands,” examines fans’ hand signals representing their teams, with footage of fans in stadiums making the hand signals (like University of Texas' “hook 'em” sign) culminating in the "number one" sign for winners. The spots air during the 18 SEC on CBS national games. At schools like Alabama, Clemson, Florida, Ohio State, Penn State, UCLA, USC and Wisconsin, Hyundai will have a grassroots program comprising some 114 events, via Advantage International. They center on a "Hyundai Fieldhouse" experience at games like Auburn vs. Alabama, Oregon vs. Stanford, Penn State vs. Ohio State, and USC vs. Arizona State. The 2,400-square-foot setup has TVs, lounge seating and appearances by college notables. Hyundai will also have its lineup of cars at the events with a focus on a modified Santa Fe crossover, the 2015 Sonata, and Tucson Fuel Cell car, which will be featured at California games. The regional team-sponsorship arrangement includes Tastemade making a 13-episode “Grill Iron” series on YouTube about each schools' epicurean habits around football. At the grassroots game-venue Hyundai Fieldhouse events at featured games, Tastemade will have local chefs doing cooking demos in a "Tastemade Kitchen." At the end of the regular season, Hyundai will host a cookoff in Los Angeles with the season’s best chef selected by the viewing audience at Tastemade’s studio. Hyundai says it is also continuing sponsorship of the Hyundai Sun Bowl in El Paso, Texas on Dec. 27.
Good luck catching up with Fitbit in the wearable fitness tracker category. According to new research from Parks Associates, Fitbit commands nearly 40% of the digital fitness tracker market, far ahead of competitors such as Samsung (14%), Nike + Sensor (14%) and Nike Fuelband (8%). “Fitbit has been around for the last seven, eight years. It’s not an overnight success,” Harry Wang, director of health and mobile research at Parks, tells Marketing Daily. “The consumer needs to be aware of what’s out there. The timing was right for them.” Indeed, Fitbit’s market lead is so commanding, it’s unlikely any singular-use fitness device could erode it significantly. More likely, the competition will come from outside the fitness category with products such as smart watches, smart jewelry and wireless-enabled patches (that go directly on the skin) that have fitness tracking included as part of their multi-functionality. “Trackers from other categories or smart watches can be another form-factor in challenging the stand-alone fitness trackers,” Wang says. “If you’re looking from a cannibalistic category perspective, [competition is] going to be from a smart watch or other, less-visible product.” The smart watch category is one likely to see intense growth in the coming years. Only 2% of broadband-using households purchased a smart watch last year, though another 4% said they were very likely to purchase one within the next year. The category is due for a shakeup, with numerous reports suggesting Apple will announce its own smart watch in September. According to the firm’s survey of more than 5,000 U.S. broadband households, only about 6% of them have a digital pedometer or fitness tracker. Connected trackers, which can upload information wirelessly, will account for 52% of all digital tracker sales in 2014, and will climb to 81% by 2018.
A new fall Subway campaign is tweaking odd fitness regimes, including attempts to return to our ancestors' lifestyles in pursuit of health and immortality. The integrated campaign, dubbed "Crop Fit," is from creative agency MMB. In the television spot launching on Labor Day, a young man tells his meal partner (they're eating at Subway) that he's currently doing "Crop Fit," a hardcore fitness program "based on 19th Century farming practices." The spot then shows him engaging in exercise like pulling a plow and pushing a huge pumpkin. The messaging points out that Subway's better-for-you meal options are an easy way to help the health-conscious stay on track whatever their physical fitness regimes may be. The integrated campaign, from MMB, will air on broadcast and cable networks for an indefinite period, supported by promotion on Subway's social media channels and inclusion in its fall digital advertising rotation.
Nissan’s Heisman House, a post-collegiate frat house for football standouts, is back. Nissan has launched its fourth consecutive activation against its long-time sponsorship of the Heisman Trust with a new roster of housemates in a raft of new videos vignettes, a new media buy on TV and digital, a new grassroots Heisman House tour, and ESPN once again on board as media partner. Central to the effort, via TBWA\Chiat\Day and ESPN's shop CreativeWorks, are six 45-second videos directed by Erich Joiner of Tool about 11 former Heisman winners living in the fictive house, with humorous setups around age differences and various well-known player proclivities. New to the house are 2012 Heisman winner Johnny "Football" Manziel; John David Crow; George Rogers; Roger Staubach; Billy Sims; Andre Ware and Charles Woodson. They join Marcus Allen, Tony Dorsett, Robert Griffin III and Ricky Williams, who were in last year's campaign. In the kickoff vignette, Staubach arrives at the house in his U.S. naval officer regalia (he was a Naval Academy graduate) for a Navy officer reunion. Unfortunately, his roommate Manziel is having one of his own famous parties at the same time. The Nissan Heisman House Tour, featuring a simulated Heisman House, will once again travel to different college campuses throughout the country leading up to the 2015 College Football Playoff National Championship Game presented by AT&T, per Nissan. The House is a getup made to look like a brick-and-mortar affair — literally — where fans can enter a "living room," take photos with the Trophy, and meet some Heisman Trophy winners. ESPN is also using the setting to do interviews. Digital is centered at NissanHeismanHouse.com, where fans can again vote for this year's Heisman winner. Nissan says it is using the campaign to tout the GT-R, Altima, Titan, Pathfinder, Murano, Rogue and Juke vehicles. The company says some 77% of fans accurately recall the Nissan brand as the sponsor of the Heisman Trophy and that about half feel more favorable toward the brand.
Aflac is kicking off the college football season with a TV spot, an online sweepstakes and a partnership with 1991 Heisman Trophy winner Desmond Howard. The spot, “The Paymaker” debuted on the SEC Network during the No. 21 Texas A&M versus No. 9 South Carolina game, which aired Aug. 28. The spot also ran on ESPN during the Boise State versus No. 18 Ole Miss game, also Aug. 28. Many Americans look forward to football season all year long, said Michael Zuna, executive vice president and chief marketing officer at Aflac. “To reach this captive audience, our new commercial offers an entertaining look at how the Aflac Duck may not be a playmaker on the field, but he’s a ‘paymaker’ when it comes to paying claims fast,” Zuna says in a release. The film room is full of surprises when the Aflac Duck takes control of the practice film and confuses both players and coaches with creative interpretations of the flea flicker, double-wing formation and play action – as well as a few extra “Aflaaacs!” The head coach quickly realizes that the Aflac Duck “doesn’t know much about football.” But when the assistant coach tells the head coach how quickly Aflac paid his claim when he got hurt, the head coach realizes the Aflac Duck might be worth keeping on the team as long as he’s not operating the film. Throughout football season, the Aflac Duck will attempt to share his football knowledge in the film room. Aflac is an official partner of the Heisman Trophy. In addition to the spot, Aflac also is partnering with Howard to launch an integrated marketing campaign, including digital ads, public relations outreach and social activations on the Aflac Duck’s Facebook, Twitter, Instagram and YouTube pages. The Aflac Duck took over the YouTube homepage on Aug. 28 with an interactive football game featured prominently on the popular video site. Beginning that day, consumers could enter for a chance to win the Ultimate College Football Experience sweepstakes on the Aflac Duck’s Facebook page. Three fans will win a one-on-one meet-and-greet with Howard, plus two tickets to the biggest college football game of the weekend, round- trip airfare, hotel accommodations, ground transportation to and from events and $500 prepaid debit card for food and other expenses. One prize package will be awarded for three of the season’s biggest match-ups in November. Game destination will be announced the Sunday prior to the game and the winner will be announced the Tuesday prior to the game. Fans can enter once every 24 hours on Facebook and earn bonus entries once every 24 hours by sharing the sweepstakes on Twitter. Consumers are encouraged to spread the word via the hashtags #GameOn! and #AflacSweeps,
Uh-oh. House of Cards. Masters of Sex. Girls. Game of Thrones. Parks and Recreation. True Detective. Bob’s Burgers. The Good Wife. Veep. Mad Men. The Killing. Broad City. Sherlock. Silicon Valley. Orange is the New Black. Fargo. The Americans. Archer. Portlandia. Sons of Anarchy. The League. The Walking Dead. Louie. Nathan for You. Homeland. The Colbert Report. Verily, we live in a Golden Age of TV -- terrestrial, cable, streaming, telepathic, whatever. And whatever previous TV age you might consider to rank as runner-up, by comparison, is not silver. It is maybe a base metal. Your Show of Shows in the 50s. The Man from U.N.C.L.E. in the 60s. All in the Family in the 70s. M*A*S*H in the 80s. E.R. in the 90s. Relative to the astonishing cornucopia of video greatness we now enjoy, they together hailed from the Zinc Age of TV. How wonderful is that? Unless you are devoted to the major networks, or stuff yourself on so-called reality TV, if you are seeking cultural treasure you’d be hard-pressed to fail. It’s like fishing in a stocked pond. Everybody leaves with a full creel. So much genius, so little time. No gainfully employed American has the time, no matter how many devices he might own, to consume it all. And the foregoing list is just the stuff being produced right now. We have equal access to Arrested Development. The Sopranos, The Wire, Friday Night Lights. Breaking Bad. Twin Peaks. 30 Rock. Dexter. Lost. Seinfeld. The Simpsons. Not to mention I Love freakin’ Lucy. Oh, and every movie ever made. Oh, and the bottomless candy dish that is YouTube. That question about wonderfulness was not rhetorical. We are living amid an unprecedented genius glut, and this is a double-edged sword if ever there was one. For, absent scarcity, content is not king. Attention is king. It is not hard to imagine the future of high-production-value scripted programming. All we need to do is look at the present of independent film…i.e., the ultimate fragmentation nightmare. The digital revolution dramatically lowered cost of production, resulting in an explosion of new titles, on the order of 50,000 per year. And once again, they are cumulative. So if you spend three years developing, financing and producing a film, you will release it into a very, very stocked pond. Sure, all the fishermen go home happy with a creelful, but 99% of the fish are unseen by human eyes. It is an obviously unsustainable ecosystem, and an unsustainable business model. Thousands of masterpieces languish unnoticed, thousands of filmmakers can never return Aunt Myrtle’s gracious investment, and like some sort of Moliere farce, greatness and audience never quite meet. This is not an apocalyptic Chaos Scenario future I’m describing. This is a Chaos Scenario right now. There are some businesses that can prosper in these condition. Netflix, by bundling the long tail of content, is essentially the stocked pond. It makes its money from the fisherman. But for any ad-supported channel, fragmentation is the enemy of revenue. Gluts -- even gluts of genius -- drive down audience and drive down rates. There are no magic beans, there is no alchemy that can change the laws of economics. Accordingly, this magnificent Golden Age of programming is being financed by speculators and the last inhabitants of a dying star…namely, the cable and broadcast infrastructure, which survives increasingly on monthly cable bills the public is decreasingly willing to pay. It’s a supernova, exploding blindingly in its last moments. Enjoy it while it lasts. And take comfort in this: just as there is no alchemy that can turn zinc into gold, the real gold stays gold forever.
Animal Farm was one of my favorite books from high school. Orwell’s allegory was smart — politics and revolution were difficult issues to critique — but a gang of livestock made them more accessible to generations of readers. Over 80 years later, recent buzz surrounding Aflac's newest yoga ad has brought me back to the farm — we love taking financial advice from animals. Like Orwell, financial companies have used, and are still using, animals to make their advertisements more relevant to viewers. Aflac draws on the duck, and Geico has featured a talking gecko and pig. Even when humans are involved, they often lean toward caricatures. Geico has used Pinocchio and cavemen, Flo of Progressive seems like a robot, and Allstate's viral Mayhem videos often feature everyday objects personified (and Dennis Haysbert’s voice is awesome). Orwell writes: “Four legs good, two legs bad.” Maybe the same is true for ads. When it comes to discussing tough, or otherwise boring topics, consumers are intensely attracted to the entertainment that animals proffer. It’s a strange philosophy — none of these animals have the slightest logical connection to the brands that they represent. Why a pig? Who is Flo? Did she study business in college? We don’t know. What is clear, however, is that the link between these random representatives and their massive campaigns has led to dynamic storytelling. The connection has been working for over eighty years, and most likely much longer than that. As featured in Marketing Daily, both brands and consumers love a story. "The data supports the emotion captured within the qualitative work," author Jon Last notes, and it is storytelling that designates campaign success. For Orwell, animals created a story that has sold millions of copies worldwide; for advertisers, animals have made storytelling an option for selling millions of products worldwide. A British gecko saving you money lends the field of car insurance a memorability and entertainment value that it would otherwise lack. Storytelling is not only smart, but necessary. As demonstrated by a 2014 Facebook study, ads designed to convey a continuous story can increase user visitation rate to a site’s landing page by 87%. Adweek also reported that National Geographic has made diligent use of visual storytelling to become the most successful media publisher across social media platforms (their Instagram account has over 6.5 million followers). The goal of advertising is to foster a powerful connection with consumers, and telling a story, whether through human or animal characters, is an advantageous way to do so. Tactful storytelling is arguably one future for successful advertising, and in moving forward, we would be prudent to take guidance from the past.