Retailers and packaged goods makers are responding to a shift in consumer shopping behavior. According to a study by ESPN (yes the sports channel, which may have a vested interest here), 31% of men nationwide are the primary grocery shopper — up from just 14% in 1985. So how have retailers better appeal to this new grocery shopping man? Some are creating “man aisles” that put all that “man stuff” in one aisle instead of having is spread across several aisles. Read more examples and details in ”More men taking reins of the cart” (Chicago Tribune, December 27, 2011).
Internet marketing research firm, comScore, has just published a new white paper, “It’s a Social World: Top 10 Need-to-Knows About Social Networking and Where It’s Headed” (December 21, 2011). The report is a free download, although you need to surrender some personal data (name and contact info) to get access. The research cited in the report really shows how prominent social networking has become in the online experience — all across the globe: “Social networking is the most popular online activity worldwide accounting for nearly 1 in every 5 minutes spent online in October 2011, and reaches 82 percent of the world’s Internet population, representing 1.2 billion users around the globe.”
I have copied a couple of charts from the report below. The first shows that usage is high (basically 80-85%) across all age groups — and growing. The second chart shows the average number of hours per month per visitor. Download the report for more information.
The title of this article from Adweek says it all “The 10 Most Watched Ads of 2011 on YouTube” (December 21, 2011). We featured several of these on Teach the 4 Ps. This might give you something entertaining to watch over break. I am sure you will find something new and interesting to entertain your class next semester. Also posted at Learn the 4 Ps.
This article, “Using Google’s Data to Reach Consumers” (New York Times, December 22, 2011) describes a clever campaign Vicks used for its new Behind Ear Thermometer. To identify a target market Vicks’ marketing managers first looked to smartphone users who were more likely to buy the $40 thermometer. They ran ads on popular apps like Pandora, which also allowed them to target demographic characteristics, including gender and whether a user was a parent. Next, it turned to Google Flu Trends an online database that shows which parts of the country have greater flu activity. Vicks targeted parents in high flu incidence areas who received banner ads stating: “Flu levels in your area are high, be prepared with Vicks revolutionary Behind Ear Thermometer.” If they tapped the ad, location services told them of the nearest retailer carrying the thermometer.
This case study is one of the best examples of digital advertising I have read lately. A nice example of using analytics to identify a target market and a great use of mobile advertising.
Wow, I guess this is suddenly the hot topic. Yesterday I posted a couple of stories on retail analytics. I wasn’t sure I wanted to tell you about a third, but Holly Finn’s story, “Spying on Your Buying” (Wall Street Journal, December 17, 2011, non-subscribers may need to click here and click “view original” in upper right corner if a white screen shows up) and interview in the Wall Street Journal, but she provides a more optimistic view of these analytics with much less fear of the privacy implications. Plus the video might add some visual effects that might help in the classroom.
Lego is the world’s most admired toy company. It hasn’t always been that way — back in 2004, the company teetered on the brink of bankruptcy as it lost a million dollars a day. In Basic Marketing we have a great chapter opening case scenario that uses Lego. This was one of my favorite openers to write. Bloomberg Businessweek‘s cover story “Lego is for Girls” (December 14, 2011) provides the latest chapter in this story. The article provides some insights on the development of the latest marketing strategy for Lego. This one targets girls. The article includes a bit of history – showing some of the toymaker’s previous failed attempts to appeal to girls.
The article provides some good examples for market segmentation (boys v. girls, differences in play across international markets), market research (researchers “embedded” with families to observe how Lego kids live and play), and product strategy (product design to appeal to girls). The result is the Lego Friends line of toys. Lego has put $40 million behind its global marketing effort. Still it might be a while before we know if this will work. Lego decided to wait until after the holidays to launch the new line. Given the importance of Christmas to toy sales, it might be a year or two before we know if Lego has finally cracked the code for the other 50% of the toy market.
A couple of interesting stories about how retailers utilize high-tech analytics to better understand customer shopping behavior. I heard “The secret life of discounts” (Marketplace radio, December 16, 2011, link to listen or read the transcript) as I drove to the airport last night to pick up my daughter who was coming home from college. There are some examples about how stores use analytics to try to remain profitable with consumers conditioned to buy only at a steep discount.
In “Big Brother is Watching You Shop” (Bloomberg Businessweek, December 15, 2011), you can read about retailers using in-store video cameras and tracking your cell phone to better understand how you move through a retail store. Analyzing video from a Miami store allowed Montblanc managers to more strategically locate merchandising, signage, and salespeople. The result — a 20% bump in sales. Other retailers follow customers’ cell phone signals to track and map movement through stores. This of course is raising privacy concerns.
These two stories can be useful examples for marketing research (where we cover dashboards and marketing models), retailing, and in discussions of privacy. Also posted at Learn the 4 Ps.
Cheating is wrong in so many ways. This continues to be a challenge for teachers at all levels. Now students are using high tech methods to cheat even more. I am one of the naive instructors who don’t think it is happening — but perhaps I need to do more than have two versions of the exam. I have always wondered about putting more severe restrictions and controls just to deal with the remaining 3-5% who might be finding other ways to cheat. Maybe I am underestimating the number cheating in my classes. You can read more in this USA Today article, “eCheating: Students find high-tech ways to deceive teachers” (December 15, 2011).
71% of P&G’s advertising spending was outside the U.S. — up from 22% in 2011.
Nuclear families account for just on fifth of all U.S. households, but 34% of the spending.
Discretionary spending — just over half have less than $10,000 per year to spend on non-essential goods. A lot of firms chasing less discretionary dollars.
We cover a lot of demographic information in chapter 5 in Basic Marketing, so you might find some of this useful to supplement that chapter. Of course the advertising spend data works with any advertising chapter.
This article, “Philly Cream Cheese’s Spreading Appeal” (Bloomberg Businessweek, December 12, 2011) is a great example that has many classroom uses. Sometimes I like to describe an extended case study — to help students integrate the marketing strategy planning process — this article is that type of example. Sales of Philadephia brand cream cheese were pretty much flat (mature or decline stage of the product life cycle) for most of the last decade. Then Kraft researchers (market research) noticed that heavy users of the product were using cream cheese as an ingredient in their cooking — not simply as a spread for bagels. Starting in Europe back in 2008, Kraft’s brand managers tapped into social media and the Internet to gather and share recipes using Philadephia brand cream cheese, they promoted it on cooking shows and with contests (Promotion). In the U.K. the share of customers using cream cheese as an ingredient (effective repositioning) has almost doubled to 37% — and sales are up 20% in Europe (data – it is nice to show case studies in class with real results). All of this in a mature product category. What a great example of how to revitalize a brand. Check out the article for more details on the strategy. Also posted at Learn the 4 Ps.
Retailers and packaged goods makers are responding to a shift in consumer shopping behavior. According to a study by ESPN (yes the sports channel, which may have a vested interest here), 31% of men nationwide are the primary grocery shopper — up from just 14% in 1985. So how have retailers better appeal to this new grocery shopping man? Some are creating “man aisles” that put all that “man stuff” in one aisle instead of having is spread across several aisles. Read more examples and details in ”More men taking reins of the cart” (Chicago Tribune, December 27, 2011).
