Brand Experience

Wine pairings. Beer pairings. Soft drink pairings?

Have a look at this picture captured at a Burger King soft drink dispenser.

Bk_2

In an age of wine pairings, beer pairings, and even coffee pairings, do we really think this soft-drink pairing chart will persuade many customers which soft drink to pair with their 1200-calorie sandwich? Do we think the King really spent hours trying to figure out which soda fully complemented your paper-lined, vinyl tray dining experience?

Probably not, but this sticker got a reaction from me, and in a world where the consumer has been conditioned to ignore thousands of marketing messages a day, that’s a good thing.

What's more, this pairing chart brought the irrelevant tone and spirit of the advertising into the store in a natural way. A more obvious approach, to instead say Coke® is Refreshing with a Whopper®, would appear corporate and patronizing. We hand it to Burger King for small details that make a difference.

- Contributed by Tony Fuller

 

Starbucks caffeinates sales with a shot of CRM

After two quarters of declining  sales and  executive-level scrutiny on brand health following reports that the company is straying too far from their brand roots, Starbucks is introducing five new initiatives to realign the company with their true identity. Interestingly, the most attention is being placed on CRM (customer relationship management) approaches to reward their most loyal customers and better understand their needs and desires. One of these initiatives is a standard customer loyalty-rewards program at retail, and another is a new style of website for customers and employees to share thoughts with the people who run the company.

Starbuckslogos

It appears Starbucks is practicing these concentrated CRM tactics to reclaim their position of being the customer's "Third Place" with home and work being number one and two. Third places are social environments generally revolving around beverages. Starbucks is fulfilling on this mission as having become a nationally accepted "Third Place" where consumers spend lots of money, time and collaboration. With their now declining sales, Starbucks recognizes that they must take consumer interaction and entertainment  to  a more subtle but effective level without being too obvious. Who wants a "Third Place" that feels uncomfortable, forced or inauthentic? But that doesn't mean you have to be home-grown and primitive in your communication or approach.

Consumers will soon be seeing something new in Starbucks retail environment with a loyalty-rewards program starting in mid-April. These "on the house" perks are for anyone who buys a Starbucks card and registers the card online, because Starbucks knows they can convert them to loyal users once they get to know them better. Participants will get free refills on coffee, a free cup of coffee when they buy a bag of whole bean coffee, hours of free Wi-Fi a day and "on the house" upgrades including syrups, soy milk, and extra whipped cream on all lattes. The in-person experience will also integrate online through monitoring and MyStarbucksIdea.com.

MyStarbucksIdea.com will initially include about a dozen categories. People can post, discuss and vote for ideas in categories such as coffee, atmosphere, food, music and social responsibility. Forty-eight Starbucks employees will respond to the posts then channel suggestions back to management. "Their job is to show up every day and engage with customers about their ideas," says CTO Chris Bruzzo.

We see two important aspects of CRM at work.

Better understanding core customers. Starbucks is embracing a highly streamlined approach in communicating to and understanding their customer with this online initiative maximizing on a CRM tool which is a smart way to "get to know" your customer, communicate directly with the customer, increase their purchases and monitor and enhance their overall brand experience (Starbucks is using Salesforce which is a top CRM/Sales tool with over 800 applications like these.)

Creating a customer-feedback protocol. Starbucks is getting great ideas directly from their customers creating a sense of involvement in the experience and overall ownership and participation by the customer. They actually show when the consumer's suggestions are "under review" or "coming soon". Each suggestion is acted on; people can view results by participating in this forum. While the suggestions are a form of user-generated content that others enjoy to read, vote on and celebrate successes when Starbucks adopts the new ideas, these comments are also indicative of Starbuck's general business model. The comments imply that Starbucks moves fast and get things done.

Other companies like Dell have joined Starbucks in implementing these innovative tools. Visit www.dellideastorm.com to see the Dell CRPM application taking hold.

We suggest more brands step outside of the comfort zone and taste-test CRM and digital technologies to understand how simple and straightforward they can be. Cost-effective technology is at your fingertips where consumers literally "tell you" what they want, and the tools allow easy customization of direct communication to niche audiences. These techniques could make a venti difference in your sales.

- Contributed by Tracy Kollker

Making the most of a Super Bowl promotion

The Super Bowl is a tremendous opportunity for anyone in the retail business to capture momentum in sales volume early in the year.  Though cash-strapped from the holidays, consumers spend an estimated $11.7 billion on Super Bowl parties, a month after the traditional holiday season is over.  The event is bigger than the game, as we all head to Super Bowl parties to sample part of the $5 billion worth of goods the hosts bought, or the $6.7 billion worth of goods the rest of us guests threw in nationwide.   Sales data shows us that its not just chips ($33.4 million), meat ($16.6 million), soda ($18.6 million), and beer ($20.7 million), being purchased incrementally, but nearly 4 million HD TVs (65 % bought at Wal-Mart or Best Buy) and 1.8 million pieces of furniture outfitting living rooms. This, and the fact that it is consistently the highest rated TV program of the year, makes the Super Bowl a boon for all the brands that stand to benefit from the occasion.

02_05kelloggsuper_2 Brands market at retail for the Super Bowl in a variety of ways. Brands like Coors Light, Pepsi, Doritos and others pay the NFL for official sponsorship and rights to the marks for the Super Bowl. Non-sponsors like Coke, Miller Lite, and Kellogg’s use generic terms like the “Big Game” to try to capture the essence of the big game. The biggest retailers “took back” the Super Bowl by creating their own programming themes. But promotional programs that most brands execute offer fewer, bigger prizes, don’t interact with the shopper beyond their experience at the shelf. Despite their efforts, most promotions seem generic because everyone is doing the same thing. Brands with the greatest connection to football parties – especially food and beverage brands – tout the “Ultimate Party” but don’t give us a compelling reason to believe them.

It’s as if most Super Bowl brands are talking to themselves and not their audience – the fans. And the fans can tell the difference.

02_01wmgampallet_2 We the fans want to have the best experience possible.  And, unless you are a one of the few fans that has connections, your chance of getting tickets to the game is nil. The biggest fans, the most loyal ones, are watching at home because they simply can’t go to the live event.  So the game becomes a reason to get together with friends, consume copious amounts of stuff and enjoy a pop-culture event with no equal. Outside of the host stadium, the Super Bowl is 28 million parties with 154 million viewers, who are there for the game, the advertising, and to be with friends, in that order. The host's success is measured on putting out a great spread, showing off the home theater, or placing a friendly bet on which quarterback will throw the first interception.

So, what can brands do more to enhance our experience before, during and after the pinnacle moment of kickoff?  How can brands connect with the shopper at retail when there is so much clutter and noise in the context of a shopper wants to get in, get out and get to where they are going?  At a time when everyone is sponsoring everything, how can a brand be authentic to an increasingly skeptical audience? 

When there is so much opportunity to make a great impression for the Super Bowl, brands need to create programming that breaks through the clutter at retail and communicates a relevant message for the shopper. Brands must connect with the consumer in a meaningful way, understanding the insights of what the Super Bowl occasion is about. And perhaps most importantly, brands need to connect to their audience in a way that is authentic to the brand, while most of all remaining true to the fans.

- Contributed by Eric Anhold

Source: ACNielsen: average weekly sales for two weeks ending Feb. 10 2007; BigResearch: CIA survey, Jan 2007

Image credits: In-Store Marketer

Paper or Plastic?

If you've ever felt alone and without a friend, like nobody understands you and the world is out to get you, remind yourself: things could be worse. You could be a plastic bag.

Plastic bags suffer disdain rarely known outside dog catchers and tax collectors. Global consumption of non-degradable plastic bags is estimated between four and five trillion each year. The vast majority are never recycled and wind up in landfill, sewer systems, oceans, lakes and rivers. They are known jokingly as the National Flower of South Africa their ubiquitous discarded presence. The clog waterways, choke marine animals, and take 1,000 years to decompose. What's more, the thoughtless use of plastic bags deepens our reliance on foreign oil: to produce the global supply requires 17 billion gallons of oil annually. (Source: San Francisco Chronicle; Worldwatch Institute)

Targetbag The problem is, plastic bags are such a common part of our lives that individuals have a hard time conceiving the ruinous effect on the environment. Using plastic bags is one of the few things nearly every human on earth has in common, young and old, rich and poor. Severe, large-scale cultural change seems to be the only way to reverse the trend of plastic bag abuse.

Several countries, including South Africa, Rwanda, Bhutan and Bangladesh have banned non-recyclable plastic bags outright. Individual cities like Paris, Mumbai and San Francisco have recently initiated bans. Progressive countries like Australia, Taiwan and Singapore are considering drastic bag reduction programs.

One of the most successful plastic bag reduction initiatives comes from Ireland, where in 2002 the government legislated a tax on plastic bags at the register. Within weeks, plastic bag use dropped by 94 percent, and people began adopting reusable cloth bags. But then something unexpected happened: carrying a plastic bag became a stigma akin to wearing a fur coat. Irish people became generally more mindful of the role of the individual in creating global change. England is considering a similar tax. (Source: New York Times)

In the United States there are no broad measures in the works, though individual cities have taken their own initiatives. Los Angeles, Boston and Phoenix are considering bag reduction proposals. New York City may soon require stores that distribute bags to recycle them, although this is a pale compromise to an outright ban. A national bag ban would be an excellent statement of environmental leadership but in our legislative system is almost certain to never see the light of day.

Unfortunately, paper bags aren't an environmentally friendly alternative: their production generates 70% more air pollutants and 50 times more water pollutants than plastic bags, and take up nine times as much landfill space. (Source: USA Today, Environmental Protection Agency)

What, then, are environmentally conscious Americans to do?

Bags_2 For Retailers, the options are many. Some are adopting biodegradable bags made from corn starch or other organic components, but these are relatively expensive and unreliable: a cardboard box corner can create a small tear that will cause the bag to fail and groceries to fall. Many stores offer a credit to customers who bring their own bags; Whole Foods is planning to raise the credit from 5 to 10 cents per bag and plans to stop distributing plastic bags completely by year's end, instead offering 99-cent reusable cloth bags at checkout. Other retailers offer heavy-duty plastic bags that shoppers are encouraged to reuse; still others promote recycling programs that transforms used bags into heavy-duty wood plank replacements for commercial decking and park benches.

For the Shopper, the best option is to choose neither paper nor plastic, but to bring your own bag, box or backpack to shop. Many retailers now offer durable, inexpensive reusable bags; in some places, these bags are even fashionable. Even the best of us will occasionally forget to bring our bags, and in such cases, use as few bags as necessary and make a promise to recycle the bags you bring home. Encourage your favorite retailers to make plastic recycling available. Above all, follow the green mantra: Reduce, Reuse, Recycle.

(reusable bag images, clockwise from left: King Soopers polyurethane bag; Lunds/Byerly's compact cloth sack; reusable plastic bag from The Coop Advantage, open and compacted)

In-store brand experiences

A great piece from Springwise about a Florida based extreme sports store called Adrenalina that has put a wave riding machine in their store so you can try out surfing products right there in the mall. Very cool idea.

Adrenalina_2

A system called FlowRider creates an artificial wave with high pressure water jets on to which you can launch yourself and see how different boards perform (it's the same system you see in cruise liner ads).  No matter your level of competence you get to put on a small show for other shoppers who get to watch your capabilities through the glass walls.  I guess that would be extremely entertaining!

The equipment, the first installation of its kind in a retail environment, also allows the store to create a community with surfers by holding events and giving them an environment in which to hang out and try product, thus cementing longer-term relationships while giving new people the chance to taste the surfing lifestyle.

This type of brand experience and retail theatre is a great way to engage both those in a brand or lifestyle community, and those outside.  What will be the next sporting area to provide the chance in-store o experience that activity now that this exists, Dick's Sporting Goods have their climbing walls and every self-respecting golf store has a virtual driving range?  The transference of this idea into other categories and retail formats is also something we expect to be seeing more of in the not-too-distant future. 

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