When you build a business from zero to several billion dollars in sales in a couple of years, quality control is bound to suffer somewhere.
For Groupon, that weak link proved to be Super Bowl advertising development. (I assume you've all seen the ill-conceived ads. Groupon yanked them after a public outcry, but as of Sunday you could see the Tibet creative on this TV station website .)
Instead of adding another critique of the flawed campaign to the chorus, I have some advice for Groupon and anyone else creating cause-related programs:
Build a feedback loop into your work.
It's depressing how rarely solid market research analysis is conducted on cause-related campaigns. Investing in understanding how your campaign will be perceived and later determining what went right and what went wrong can pay huge dividends.
Serious research (described in this MediaPost article) has helped Pepsi make some very smart alterations to this year's version of its crowdsourced Refresh campaign. For example, it's creating more opportunities for smaller groups and cutting down on abuse by substituting a lottery for its first-come, first-served entry system and eliminating $250,000 awards to fund a greater number of smaller awards.
Internal Pepsi research revealed that bottlers and other stakeholders didn't feel the program supported sales. In 2011, cans and bottles will carry promotional messaging and offers such as bottle cap offers for extra votes.
Another example: Since eBay Giving Works launched in 2003, ongoing analysis has transformed it from a nice program to a serious business-building enterprise that keeps growing in terms of sales impact and charitable contributions.
Improvements such as making it easier for consumers to donate to their favorite nonprofits pushed donations from eBay sellers and buyers to a record $54.8-million in 2010, a 7-percent bump.
Lets hope that armed with solid research and planning, Groupon will use its marketing muscle to create future cause campaigns that generate as many accolades as this year's effort yielded brickbats.
(Source: David Hessekial, Cause Marketing Today, 02/22/11)
Monday, February 28, 2011
Friday, February 18, 2011
Most Popular Marketing Tool For Local Biz: Facebook
Engaging local marketers like never before, a striking 70% of small businesses now use Facebook to reach consumers, according to new research from small-business social network MerchantCircle.
Up from 50% a year ago -- and topping the 66% of small businesses that currently use Google search advertising -- Facebook now ranks as the most popular marketing tool among local businesses.
True, adoption doesn't equal effectiveness, but 37% of local merchants now rate Facebook as one of their most effective tools -- just behind the 40% that cite the prime effectiveness of Google search.
Supplementing search and email marketing, time- and cash-strapped business owners are gravitating toward simple, low-cost online marketing methods like Facebook. "Many merchants are working with very small budgets and almost no marketing resources," said Darren Waddell, VP of marketing at MerchantCircle. As result, "the marketing methods we see gaining the most traction are therefore the ones that offer merchants simplicity, low costs and immediate results."
On the other hand, buzzworthy marketing methods like mobile and group buying have yet to win over most local merchants, according to MerchantCircle's quarterly Merchant Confidence Index survey of over 8,500 small and local businesses nationwide.
According to the report, more than half of local merchants are spending less than $2,500 a year on marketing, and the majority -- 60% -- have no plans to raise their budgets this year.
These merchants are also price-sensitive, as one quarter of merchants cite high costs as their chief complaint about online marketing. Merchants are also struggling to manage their existing programs, the research finds, and don't have the time or money to take advantage of new, unproven services. Indeed, 37% cite lack of time and resources as their top online marketing challenge.
Also of note, Facebook Places has soared past Foursquare to reach a 32% current usage rate -- with an additional 12% of small businesses expressing their intention to use Facebook Places in the coming months. By contrast, Foursquare's usage has remained unchanged from the fourth quarter of last year at about 9%.
Twitter has also grown in popularity over the past year, with nearly 40% of local merchants using the microblogging platform to build awareness and community around their products and services -- up from 32% since the fourth quarter of 2009.
Overall, less than 15% of merchants report doing any sort of mobile marketing or advertising, and more than half have no plans to do so in the coming months. Lack of understanding remains a huge barrier to adoption, as 74% of merchants report not having a good idea of how to reach consumers via mobile marketing.
Group buying will also take time to penetrate the local market, according to MerchantCircle, as only 11% of local merchants have offered a "daily deal" using a service like Groupon or LivingSocial, with an additional 20% planning to do so in the coming months. Results of group buying have also been mixed and may be hindering growth, as 50% of businesses that have run a daily deal campaign say they would not do so again
(Source: Online Media Daily, 02/15/11)
Up from 50% a year ago -- and topping the 66% of small businesses that currently use Google search advertising -- Facebook now ranks as the most popular marketing tool among local businesses.
True, adoption doesn't equal effectiveness, but 37% of local merchants now rate Facebook as one of their most effective tools -- just behind the 40% that cite the prime effectiveness of Google search.
Supplementing search and email marketing, time- and cash-strapped business owners are gravitating toward simple, low-cost online marketing methods like Facebook. "Many merchants are working with very small budgets and almost no marketing resources," said Darren Waddell, VP of marketing at MerchantCircle. As result, "the marketing methods we see gaining the most traction are therefore the ones that offer merchants simplicity, low costs and immediate results."
On the other hand, buzzworthy marketing methods like mobile and group buying have yet to win over most local merchants, according to MerchantCircle's quarterly Merchant Confidence Index survey of over 8,500 small and local businesses nationwide.
According to the report, more than half of local merchants are spending less than $2,500 a year on marketing, and the majority -- 60% -- have no plans to raise their budgets this year.
These merchants are also price-sensitive, as one quarter of merchants cite high costs as their chief complaint about online marketing. Merchants are also struggling to manage their existing programs, the research finds, and don't have the time or money to take advantage of new, unproven services. Indeed, 37% cite lack of time and resources as their top online marketing challenge.
Also of note, Facebook Places has soared past Foursquare to reach a 32% current usage rate -- with an additional 12% of small businesses expressing their intention to use Facebook Places in the coming months. By contrast, Foursquare's usage has remained unchanged from the fourth quarter of last year at about 9%.
Twitter has also grown in popularity over the past year, with nearly 40% of local merchants using the microblogging platform to build awareness and community around their products and services -- up from 32% since the fourth quarter of 2009.
Overall, less than 15% of merchants report doing any sort of mobile marketing or advertising, and more than half have no plans to do so in the coming months. Lack of understanding remains a huge barrier to adoption, as 74% of merchants report not having a good idea of how to reach consumers via mobile marketing.
Group buying will also take time to penetrate the local market, according to MerchantCircle, as only 11% of local merchants have offered a "daily deal" using a service like Groupon or LivingSocial, with an additional 20% planning to do so in the coming months. Results of group buying have also been mixed and may be hindering growth, as 50% of businesses that have run a daily deal campaign say they would not do so again
(Source: Online Media Daily, 02/15/11)
Thursday, February 17, 2011
Home Improvement Retailers Trying to Woo Women
To appeal better to women, Home Depot has started offering Martha Stewart curtains in hues of "tilled soil," paint in "cornbread," and rugs in colors like "Wilderstein brook trout."
To make shopping simpler for women, nearly all Martha Stewart Living products carry an icon, such as a moon or a star, to help coordinate and match items to room makeovers. Of course, a more obvious part of the women's push is the Martha Stewart line, which debuted in late 2009 with patio furniture and has since expanded into cabinets, draperies, carpets and paint. Lighting, vanity tables and bathroom décor will be added this spring.
With major renovations and big-ticket items stalled by a slow housing recovery, smaller projects are the big focus for home improvement stores and women are more of the target customer.
"For years, we've always had a bad -- I don't want to say a bad reputation, it's more that people look at our business and think it is male-oriented, dominated," Gordon Erickson, the senior vice president for merchandising and décor at Home Depot, told The New York Times.
"Fifty percent of our customers are female. We need to offer her products that she wants."
Among other chains, Lowe's, which claims to have had a more women's-oriented focus as part of its founding, designs its stores with less steel and more wood tones, and "comfort zones" where customers can review paint samples or remodeling plans.
In another effort, True Value recently opened a corporate-owned store near Chicago touting wider aisles, better lighting and clear signs.
The Times article points to the challenges the DIY channel has creating a comfortable shopping environment for women. Lauren Butler, who grew up helping her parents with home improvement projects, told the Times she was pleased to see that Home Depot had added Martha Stewart items at reasonable prices. But she still often feels unwelcome in the DIY channel.
"Sometimes they seem to feel like you're just a girl, you don't know what you're doing, you need to get your husband in here," said Ms. Butler. "It's intimidating for any female to walk into a home improvement store."
(Source: Retail Wire, 02/07/11)
To make shopping simpler for women, nearly all Martha Stewart Living products carry an icon, such as a moon or a star, to help coordinate and match items to room makeovers. Of course, a more obvious part of the women's push is the Martha Stewart line, which debuted in late 2009 with patio furniture and has since expanded into cabinets, draperies, carpets and paint. Lighting, vanity tables and bathroom décor will be added this spring.
With major renovations and big-ticket items stalled by a slow housing recovery, smaller projects are the big focus for home improvement stores and women are more of the target customer.
"For years, we've always had a bad -- I don't want to say a bad reputation, it's more that people look at our business and think it is male-oriented, dominated," Gordon Erickson, the senior vice president for merchandising and décor at Home Depot, told The New York Times.
"Fifty percent of our customers are female. We need to offer her products that she wants."
Among other chains, Lowe's, which claims to have had a more women's-oriented focus as part of its founding, designs its stores with less steel and more wood tones, and "comfort zones" where customers can review paint samples or remodeling plans.
In another effort, True Value recently opened a corporate-owned store near Chicago touting wider aisles, better lighting and clear signs.
The Times article points to the challenges the DIY channel has creating a comfortable shopping environment for women. Lauren Butler, who grew up helping her parents with home improvement projects, told the Times she was pleased to see that Home Depot had added Martha Stewart items at reasonable prices. But she still often feels unwelcome in the DIY channel.
"Sometimes they seem to feel like you're just a girl, you don't know what you're doing, you need to get your husband in here," said Ms. Butler. "It's intimidating for any female to walk into a home improvement store."
(Source: Retail Wire, 02/07/11)
Friday, February 11, 2011
Mobile Becomes Marketing Discipline for Ad Strategies
Mobile handsets are fast becoming a shopping tool. Near field communication (NFC) technology catapults that movement with the inclusion in devices and service by Google, Nokia, Apple, AT&T, T-Mobile USA and Verizon Wireless.
This year, mobile becomes a marketing discipline or practice in overall ad strategies, rather than an application in a campaign or on a handset or tablet, according to the white paper "Upward Mobility: Developing an Effective Mobile Shopper Marketing Strategy" that Augme released last week.
Sitting on the front line in campaign planning sessions with consumer product goods companies like Johnson & Johnson in 2010 reveals that many strategies were based on applications or QR codes for specific products, according to David Apple, CMO of Augme. That changes this year, he says, as more consumers use mobile devices to advance consumption, knowledge and capabilities about products and services with or without assistance from the brand.
CPG companies have begun making the transition to integrate technologies, such as NFC, into point-of-sale platforms in stores, Apple says. "Many things still must happen, and it will become easier for chips to be integrated into mobile devices, than retailers to rip out lasers and put in imagers," he says, referring to NFC technology. "The big catalyst in the U.S. becomes what companies and carriers get paid in the process."
The U.S. remains far behind other countries around the world when it comes to integrating mobile tools for data transfer and m-commerce. Marketers, however, will be forced to look at mobile devices as an agnostic tool -- a connection to a campaign rather than an application, as slightly more than half -- 51% -- of the U.S. population will have a smartphone by the end of 2011, estimates Augme, citing Nielsen statistics.
Market research firm IHS iSuppli estimates global smartphone unit shipments will rise from 288 million in 2010 to 651 million in 2014.
The white paper draws a conclusion between the reality of the marketplace and the device capabilities in the market, and highlights strategies to reach consumers. "The reality of the market is the U.S. remains a 35% smartphone marketplace, which leaves the remainder of the country in feature phones and messaging phones," Apple says. "The real question becomes, as a marketer, how do I effectively communicate with that population without segmenting anybody based on their technology or device capabilities."
Apple says it's done through the use of consumer-response type technologies and strategies, reaching out to the 65% of consumers who don't carry a Web-enabled phone. They can still respond and receive a coupon through SMS, search or QR campaigns. An SMS campaign initiated on a piece of physical media such as billboard or magazine instantly allows the brand to reach 248 million consumers, he says. "It's not sexy, but that's how you create sales," he adds. "Universal codes like QR are open source, allowing the consumer to engage from the digital to the physical world."
Augme provides services and mobile technology Ad Life to consumer and healthcare brands. The company says it's working with HBO, Johnson & Johnson, Colgate Palmolive, Lionsgate, among others, allowing them to plan, create, test, deploy and track mobile marketing programs.
(Source: Online Media Daily, 02/02/11)
This year, mobile becomes a marketing discipline or practice in overall ad strategies, rather than an application in a campaign or on a handset or tablet, according to the white paper "Upward Mobility: Developing an Effective Mobile Shopper Marketing Strategy" that Augme released last week.
Sitting on the front line in campaign planning sessions with consumer product goods companies like Johnson & Johnson in 2010 reveals that many strategies were based on applications or QR codes for specific products, according to David Apple, CMO of Augme. That changes this year, he says, as more consumers use mobile devices to advance consumption, knowledge and capabilities about products and services with or without assistance from the brand.
CPG companies have begun making the transition to integrate technologies, such as NFC, into point-of-sale platforms in stores, Apple says. "Many things still must happen, and it will become easier for chips to be integrated into mobile devices, than retailers to rip out lasers and put in imagers," he says, referring to NFC technology. "The big catalyst in the U.S. becomes what companies and carriers get paid in the process."
The U.S. remains far behind other countries around the world when it comes to integrating mobile tools for data transfer and m-commerce. Marketers, however, will be forced to look at mobile devices as an agnostic tool -- a connection to a campaign rather than an application, as slightly more than half -- 51% -- of the U.S. population will have a smartphone by the end of 2011, estimates Augme, citing Nielsen statistics.
Market research firm IHS iSuppli estimates global smartphone unit shipments will rise from 288 million in 2010 to 651 million in 2014.
The white paper draws a conclusion between the reality of the marketplace and the device capabilities in the market, and highlights strategies to reach consumers. "The reality of the market is the U.S. remains a 35% smartphone marketplace, which leaves the remainder of the country in feature phones and messaging phones," Apple says. "The real question becomes, as a marketer, how do I effectively communicate with that population without segmenting anybody based on their technology or device capabilities."
Apple says it's done through the use of consumer-response type technologies and strategies, reaching out to the 65% of consumers who don't carry a Web-enabled phone. They can still respond and receive a coupon through SMS, search or QR campaigns. An SMS campaign initiated on a piece of physical media such as billboard or magazine instantly allows the brand to reach 248 million consumers, he says. "It's not sexy, but that's how you create sales," he adds. "Universal codes like QR are open source, allowing the consumer to engage from the digital to the physical world."
Augme provides services and mobile technology Ad Life to consumer and healthcare brands. The company says it's working with HBO, Johnson & Johnson, Colgate Palmolive, Lionsgate, among others, allowing them to plan, create, test, deploy and track mobile marketing programs.
(Source: Online Media Daily, 02/02/11)
Number of Smartphone Users Up 60 Percent Versus Year Ago
This week, comScore reported key trends in the U.S. mobile phone industry during the three-month average period ending December 2010. The report ranked the leading mobile original equipment manufacturers (OEMs) and smartphone operating system (OS) platforms in the U.S. according to their share of current mobile subscribers ages 13 and older, and reviewed the most popular activities and content accessed via the subscriber's primary mobile phone. The December report found Samsung to be the top handset manufacturer overall with 24.8 percent market share, while RIM led among smartphone platforms with 31.6 percent market share.
OEM Market Share
For the three-month average period ending in December, 234 million Americans ages 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 24.8 percent of U.S. mobile subscribers, up 1.3 percentage points from the three-month period ending in September. LG ranked second with 20.9 percent share, followed by Motorola (16.7 percent), RIM (8.5 percent) and Nokia (7.0 percent).
Smartphone Platform Market Share
63.2 million people in the U.S. owned smartphones during the three months ending in December 2010, up 60 percent versus year ago. RIM led the ranking with 31.6 percent market share of smartphones, while Google Android maintained the #2 position with 28.7 percent, up 7.3 percentage points versus September. Apple accounted for 25.0 percent of smartphone subscribers (up 0.7 percentage points), followed by Microsoft with 8.4 percent and Palm with 3.7 percent.
Mobile Content Usage
In December, 68.0 percent of U.S. mobile subscribers used text messaging on their mobile device, up 1.0 percentage points versus the prior three month period, while browsers were used by 36.4 percent of subscribers (up 1.3 percentage points). Subscribers who used downloaded applications comprised 34.4 percent of the mobile audience, representing an increase of 1.3 percentage points. Accessing of social networking sites or blogs increased 1.5 percentage points, representing 24.7 percent of mobile subscribers. Playing games attracted 23.2 percent of the mobile audience, while listening to music attracted 15.7 percent.
(Source: RAB, from comScore release, 02/07/11)
OEM Market Share
For the three-month average period ending in December, 234 million Americans ages 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 24.8 percent of U.S. mobile subscribers, up 1.3 percentage points from the three-month period ending in September. LG ranked second with 20.9 percent share, followed by Motorola (16.7 percent), RIM (8.5 percent) and Nokia (7.0 percent).
Smartphone Platform Market Share
63.2 million people in the U.S. owned smartphones during the three months ending in December 2010, up 60 percent versus year ago. RIM led the ranking with 31.6 percent market share of smartphones, while Google Android maintained the #2 position with 28.7 percent, up 7.3 percentage points versus September. Apple accounted for 25.0 percent of smartphone subscribers (up 0.7 percentage points), followed by Microsoft with 8.4 percent and Palm with 3.7 percent.
Mobile Content Usage
In December, 68.0 percent of U.S. mobile subscribers used text messaging on their mobile device, up 1.0 percentage points versus the prior three month period, while browsers were used by 36.4 percent of subscribers (up 1.3 percentage points). Subscribers who used downloaded applications comprised 34.4 percent of the mobile audience, representing an increase of 1.3 percentage points. Accessing of social networking sites or blogs increased 1.5 percentage points, representing 24.7 percent of mobile subscribers. Playing games attracted 23.2 percent of the mobile audience, while listening to music attracted 15.7 percent.
(Source: RAB, from comScore release, 02/07/11)
Tuesday, February 8, 2011
Study: Women Show Strong Personal Renewal Bent
Women may not be able to control the larger economic scenario, but they can improve how they feel about themselves and their lives.
That's the basic thinking behind a pronounced personal renewal or "me-covery" post-recessionary trend among American women, according to a new national survey conducted by specialist marketing firm Saatchi & Saatchi Wellness and Time Inc.'s Health brand.
The new emphasis on taking control and responsibility for personal well-being and happiness and reevaluating old choices represents a major shift in women's attitudinal and behavioral patterns within a markedly short time frame.
In 2009, a similar national survey of adult (18+) American women by Saatchi & Saatchi Wellness focusing on the economy's influence on wellness issues found that their primary wellness goals were "holding it together" and "surviving the day."
The attitude/behavior shifts have important implications for numerous product/service categories and brands, including food and beverages, restaurants and personal care and beauty, according to the research sponsors.
For one: Women are "re-investing in their health and wellness," points out Health publisher Dave Watt.
While 92% of the 800 women surveyed (representative of U.S. adult females as a whole) still feel negatively affected by the economy and 10% feel more affected than in 2009, 64% say that they are committed to making a positive change and taking better care of themselves by eating right, staying physically fit, "looking good to feel good" and having fun.
Given female consumers' more positive overall attitude and focus on self-empowerment, physical and emotional health and making "real changes" in their lives, "marketers should reexamine the ways that they are talking to and engaging with women," stresses Saatchi & Saatchi Wellness chief strategy officer Johanna Skilling.
The indicators point to longevity for this lifestyle shift among American women, adds Ned Russell, managing director for the marketing firm.
The major take-aways for marketers:
* "Taking responsibility" has made health and wellness women's #1 priority. This includes taking steps to prevent health problems and making a commitment to manageable health/fitness goals.
* "Reevaluating choices" reflects renewed confidence and includes increased emphasis on value-driven purchases. Value is defined as offering benefits worth the money, meaning that price alone is not the dominant purchasing factor.
* "Welcoming the right kind of support" means that women are seeking sources of inspiration and motivation, as well as meaningful rewards that mesh with their new lifestyle priorities.
Specific survey findings confirm upswings in purchases of health-related and beauty products, as well as shifts in the retail formats in which women are purchasing these products:
* 54% of adult female respondents report buying more healthy food overall, and 47% say that they're buying organic foods more often, despite these foods' higher prices.
* 74% of those most affected by the economy report that they are buying less fast food than in 2009 (up from 41% indicating fast-food cutbacks in the 2009 survey).
* 48% report being committed to working out more on their own and gaining inspiration and motivation through online music downloads, workout videos and interactive gaming systems. More than one-third (37%) report working out at the gym more often.
* 86% report engaging in more online health research (up 47 points from 2009) and 79% say that they're now seeing their doctors regularly (up 21 points).
* 64% are buying prescription medication (up 16 points from 2009) and 48% are buying more vitamins (up 27 points). Also, 16% are buying more over-the-counter remedies and 14% are using alternative/homeopathic remedies.
* About half are buying more hair care (47%), skin care (45%) and oral care products (51%), and nearly half say that "value for money" and "product quality" are the key brand characteristics influencing their purchases in these categories.
* 52% say they are "committed to having more fun," 35% report that they are currently considering a vacation, and 24% report using products to enhance their sex lives (up 17 points since 2009).
* 70% now say that they buy skin care/beauty products primarily in drug stores, grocery stores and mass retailers -- up 25 points from 2009. Just 6% report they are buying more luxury/high-end cosmetics than in past years.
(Source: Marketing Daily, 02/02/11)
That's the basic thinking behind a pronounced personal renewal or "me-covery" post-recessionary trend among American women, according to a new national survey conducted by specialist marketing firm Saatchi & Saatchi Wellness and Time Inc.'s Health brand.
The new emphasis on taking control and responsibility for personal well-being and happiness and reevaluating old choices represents a major shift in women's attitudinal and behavioral patterns within a markedly short time frame.
In 2009, a similar national survey of adult (18+) American women by Saatchi & Saatchi Wellness focusing on the economy's influence on wellness issues found that their primary wellness goals were "holding it together" and "surviving the day."
The attitude/behavior shifts have important implications for numerous product/service categories and brands, including food and beverages, restaurants and personal care and beauty, according to the research sponsors.
For one: Women are "re-investing in their health and wellness," points out Health publisher Dave Watt.
While 92% of the 800 women surveyed (representative of U.S. adult females as a whole) still feel negatively affected by the economy and 10% feel more affected than in 2009, 64% say that they are committed to making a positive change and taking better care of themselves by eating right, staying physically fit, "looking good to feel good" and having fun.
Given female consumers' more positive overall attitude and focus on self-empowerment, physical and emotional health and making "real changes" in their lives, "marketers should reexamine the ways that they are talking to and engaging with women," stresses Saatchi & Saatchi Wellness chief strategy officer Johanna Skilling.
The indicators point to longevity for this lifestyle shift among American women, adds Ned Russell, managing director for the marketing firm.
The major take-aways for marketers:
* "Taking responsibility" has made health and wellness women's #1 priority. This includes taking steps to prevent health problems and making a commitment to manageable health/fitness goals.
* "Reevaluating choices" reflects renewed confidence and includes increased emphasis on value-driven purchases. Value is defined as offering benefits worth the money, meaning that price alone is not the dominant purchasing factor.
* "Welcoming the right kind of support" means that women are seeking sources of inspiration and motivation, as well as meaningful rewards that mesh with their new lifestyle priorities.
Specific survey findings confirm upswings in purchases of health-related and beauty products, as well as shifts in the retail formats in which women are purchasing these products:
* 54% of adult female respondents report buying more healthy food overall, and 47% say that they're buying organic foods more often, despite these foods' higher prices.
* 74% of those most affected by the economy report that they are buying less fast food than in 2009 (up from 41% indicating fast-food cutbacks in the 2009 survey).
* 48% report being committed to working out more on their own and gaining inspiration and motivation through online music downloads, workout videos and interactive gaming systems. More than one-third (37%) report working out at the gym more often.
* 86% report engaging in more online health research (up 47 points from 2009) and 79% say that they're now seeing their doctors regularly (up 21 points).
* 64% are buying prescription medication (up 16 points from 2009) and 48% are buying more vitamins (up 27 points). Also, 16% are buying more over-the-counter remedies and 14% are using alternative/homeopathic remedies.
* About half are buying more hair care (47%), skin care (45%) and oral care products (51%), and nearly half say that "value for money" and "product quality" are the key brand characteristics influencing their purchases in these categories.
* 52% say they are "committed to having more fun," 35% report that they are currently considering a vacation, and 24% report using products to enhance their sex lives (up 17 points since 2009).
* 70% now say that they buy skin care/beauty products primarily in drug stores, grocery stores and mass retailers -- up 25 points from 2009. Just 6% report they are buying more luxury/high-end cosmetics than in past years.
(Source: Marketing Daily, 02/02/11)
Retailers Offer Financial Services to 'Unbanked'
Millions of low-income Americans who don't have bank accounts are finding an alternative to check-cashing stores at an unusual place: their local big-box retailer.
Kmart has begun testing check cashing, money transfers and prepaid cards in stores in Illinois, California and Puerto Rico, with plans to roll out the services nationally later this year. Best Buy has installed kiosks in its stores for shoppers to pay utility, cable and phone bills. Wal-Mart has opened roughly 1,500 MoneyCenters that process as many as 5 million transactions each week.
The retailers are mainstreaming a $320 billion industry of alternative financial services that has long operated in the shadow of the formal banking system and under the radar of federal regulators. The new Consumer Financial Protection Bureau was established in part to plug the gaps in oversight, but it remains unclear how much authority it will have over stores. One thing, however, does seem certain: Demand for alternative services is only expected to grow as strict new rules force banks to charge higher fees for checking accounts, placing them out of reach of many financially strapped households.
"We're in a place where large banks are becoming more conservative," said Kimberly Gartner, vice president of market services for the Center for Financial Services Innovation, a think tank. Meanwhile, "consumers are a little disgruntled with banks, so there's a real opportunity here to attract more customers."
According to a recent government survey, nearly 30 million households either do not have a bank account or use one sparingly. Nearly 70 percent of families considered "unbanked" earn less than $30,000 a year and many say they will never do business at a bank.
These households have traditionally relied on a patchwork of services to manage their money, and retailers have begun to realize that those same consumers are shopping in their stores. Wal-Mart, for example, has said that one in five of its customers does not have a checking account.
Many consumers think that they don't make enough money to warrant a bank account, the government survey found. But others simply don't trust banks or come from cash-based cultures. That is part of the impetus for the bill-payment service Best Buy launched last year in a handful of markets. The kiosks, operated by Tio Networks, cater to Hispanic shoppers who are often wary of banks. But many are willing to sign up for complicated cellphone plans at Best Buy, and executives say it was a short step to paying the bills in the store as well.
Kmart began wading into the market when it reintroduced layaway in its stores at the start of the recession. Many shoppers had lost their jobs and were wary of building up credit card debt, making layaway an attractive alternative.
The program was so successful that Kmart began offering it year-round. And Susan Ehrlich, president of financial services for Kmart and parent company Sears, said executives learned another important lesson: Shoppers turned to the store to help them manage their money.
"That sort of drew us up the value chain," Ehrlich said.
Customers were reliant on cash, so check cashing was the next logical extension. That cash could then be loaded on to a prepaid card, used to pay bills or send money to family in another country. The combination of services closely matches those provided by a checking account -- without the hassle of going through a bank.
But consumer groups have criticized the services traditionally available to the unbanked as being riddled with high fees and for not offering clear disclosures. The average fee for cashing a check ranges from 2 to 4 percent of the value, according to consumer groups.
Yet as larger companies enter the field, they are bringing economies of scale to a market that has been dominated by mom-and-pop players. Wal-Mart, for example, lowered its fee to cash a check to $3, and slashed the cost of its prepaid card from nearly $9 to $3.
"Wal-Mart is certainly the (800)-pound gorilla in any market that they choose to serve," said Jamie Fulmer, vice president of public affairs for Advance America, one of the few publicly held companies that offers payday loans and check cashing. "I don't think we'll ever be a competitor to Wal-Mart in terms of sheer volume, (but) we believe there's a big enough market that we can have some share."
Wal-Mart, however, is doing more than just selling to customers. Not only does it account for 64 percent of business for its prepaid-card issuer, Green Dot, it acquired a stake in the company last summer. The blurring of the line between banks and companies that just act like banks has been a challenge for federal regulators.
Under the new consumer protection bureau, financial products and services offered by retailers will have to meet the agency's rules. But the question remains whether it will have the authority to examine the companies' books and business practices, according to consumer groups. The law that established the agency exempts retailers from such oversight, unless they are large players in the market -- a phrase that has yet to be clearly defined.
Meanwhile, retailers are getting a seat at the table: Kmart's Ehrlich was named to the Federal Reserve's Consumer Advisory Council, the precursor to the new agency.
"My belief and expectation is that retail is going to continue to play an increasing and evolving role in the provision of financial services, particularly in underserved communities," she said. "Our having a voice in making sure that there is an awareness of that, and that we set the regulatory framework to accommodate that, is going to be important."
(Source: The Washington Post, 01/31/11)
Kmart has begun testing check cashing, money transfers and prepaid cards in stores in Illinois, California and Puerto Rico, with plans to roll out the services nationally later this year. Best Buy has installed kiosks in its stores for shoppers to pay utility, cable and phone bills. Wal-Mart has opened roughly 1,500 MoneyCenters that process as many as 5 million transactions each week.
The retailers are mainstreaming a $320 billion industry of alternative financial services that has long operated in the shadow of the formal banking system and under the radar of federal regulators. The new Consumer Financial Protection Bureau was established in part to plug the gaps in oversight, but it remains unclear how much authority it will have over stores. One thing, however, does seem certain: Demand for alternative services is only expected to grow as strict new rules force banks to charge higher fees for checking accounts, placing them out of reach of many financially strapped households.
"We're in a place where large banks are becoming more conservative," said Kimberly Gartner, vice president of market services for the Center for Financial Services Innovation, a think tank. Meanwhile, "consumers are a little disgruntled with banks, so there's a real opportunity here to attract more customers."
According to a recent government survey, nearly 30 million households either do not have a bank account or use one sparingly. Nearly 70 percent of families considered "unbanked" earn less than $30,000 a year and many say they will never do business at a bank.
These households have traditionally relied on a patchwork of services to manage their money, and retailers have begun to realize that those same consumers are shopping in their stores. Wal-Mart, for example, has said that one in five of its customers does not have a checking account.
Many consumers think that they don't make enough money to warrant a bank account, the government survey found. But others simply don't trust banks or come from cash-based cultures. That is part of the impetus for the bill-payment service Best Buy launched last year in a handful of markets. The kiosks, operated by Tio Networks, cater to Hispanic shoppers who are often wary of banks. But many are willing to sign up for complicated cellphone plans at Best Buy, and executives say it was a short step to paying the bills in the store as well.
Kmart began wading into the market when it reintroduced layaway in its stores at the start of the recession. Many shoppers had lost their jobs and were wary of building up credit card debt, making layaway an attractive alternative.
The program was so successful that Kmart began offering it year-round. And Susan Ehrlich, president of financial services for Kmart and parent company Sears, said executives learned another important lesson: Shoppers turned to the store to help them manage their money.
"That sort of drew us up the value chain," Ehrlich said.
Customers were reliant on cash, so check cashing was the next logical extension. That cash could then be loaded on to a prepaid card, used to pay bills or send money to family in another country. The combination of services closely matches those provided by a checking account -- without the hassle of going through a bank.
But consumer groups have criticized the services traditionally available to the unbanked as being riddled with high fees and for not offering clear disclosures. The average fee for cashing a check ranges from 2 to 4 percent of the value, according to consumer groups.
Yet as larger companies enter the field, they are bringing economies of scale to a market that has been dominated by mom-and-pop players. Wal-Mart, for example, lowered its fee to cash a check to $3, and slashed the cost of its prepaid card from nearly $9 to $3.
"Wal-Mart is certainly the (800)-pound gorilla in any market that they choose to serve," said Jamie Fulmer, vice president of public affairs for Advance America, one of the few publicly held companies that offers payday loans and check cashing. "I don't think we'll ever be a competitor to Wal-Mart in terms of sheer volume, (but) we believe there's a big enough market that we can have some share."
Wal-Mart, however, is doing more than just selling to customers. Not only does it account for 64 percent of business for its prepaid-card issuer, Green Dot, it acquired a stake in the company last summer. The blurring of the line between banks and companies that just act like banks has been a challenge for federal regulators.
Under the new consumer protection bureau, financial products and services offered by retailers will have to meet the agency's rules. But the question remains whether it will have the authority to examine the companies' books and business practices, according to consumer groups. The law that established the agency exempts retailers from such oversight, unless they are large players in the market -- a phrase that has yet to be clearly defined.
Meanwhile, retailers are getting a seat at the table: Kmart's Ehrlich was named to the Federal Reserve's Consumer Advisory Council, the precursor to the new agency.
"My belief and expectation is that retail is going to continue to play an increasing and evolving role in the provision of financial services, particularly in underserved communities," she said. "Our having a voice in making sure that there is an awareness of that, and that we set the regulatory framework to accommodate that, is going to be important."
(Source: The Washington Post, 01/31/11)
Auto Sales Sizzle, Forecasts Rise
Busy Showrooms, 17 Percent Rise in January Transactions Spark Optimism
So many retail customers are pouring into dealer showrooms that several carmakers and analysts have boosted their 2011 sales forecasts.
TrueCar.com says January's retail SAAR was 10.2 million, up from 8.3 million a year earlier. And that retail burst lifted January's overall selling rate to its highest level since cash for clunkers 18 months ago: a seasonally adjusted 12.6 million units.
"Consumers are driving much of the gain," said Don Johnson, General Motors' U.S. sales boss.
Light-vehicle sales in January jumped 17 percent from a year earlier to 819,938 units.
Among the top seven automakers, according to industry sources, combined fleet sales declined by 12 percent and retail sales rose 28 percent.
"Retail sales were much stronger than fleet," said J.P. Morgan analyst Himanshu Patel in a note to investors. "Fleet sales were down, primarily driven by weaker daily-rental sales."
Light trucks outsold cars for the fourth straight month. And General Motors Co. and Toyota Motor Sales U.S.A. fired the first shots in what some analysts fear could become a new incentives war.
January's overall SAAR of 12.6 million was fractionally higher than December's and above the Bloomberg consensus forecast of 12.4 million. Last year U.S. sales were 11.6 million, up 11 percent over 2009.
The retail gains encouraged automakers and analysts.
"The recovery is being fueled by real, natural demand and by consumers who aren't just buying what they need but also starting to buy because they want to," said TrueCar analyst Jesse Toprak. "The most promising thing is the retail growth."
GM's Johnson credited retail for the automaker's 22 percent January sales increase.
GM and Ford last month each added half a million units to the upper range of their 2011 sales forecasts -- both to 13.3 million units. IHS Automotive boosted its forecast to 13.1 million from 12.8 million.
On Jan. 27, J.D. Power and Associates raised its forecast to 12.9 million from 12.8 million. So far, TrueCar's Toprak has not changed his 12.7 million forecast. But he's reviewing it and said: "There is more upside than downside this year."
Several automakers are sticking with 2011 projections made at the start of the year but say they are leaning toward the upper end of their ranges after January's results.
Except for Mazda's 9 percent decline, all automakers boosted sales in January. Hyundai-Kia Automotive, Chrysler Group and GM outperformed the market. Hyundai-Kia gained 24 percent, Chrysler rose 23 percent, and GM rode an incentive surge to its 22 percent sales increase.
Three groups increased volume but lost market share. Nissan North America's sales rose 15 percent, American Honda Motor Co. was up 13 percent, and Ford Motor Co. rose 9 percent.
Ford-brand sales were up 22 percent, but Ford said its lower overall figure reflected a planned 27 percent decline in sales to daily rental companies, as well as last year's elimination of Mercury and sale of Volvo.
George Pipas, Ford's chief sales analyst, said he expects retail sales to provide more growth than fleet this year, especially in the first half.
At Ford, fleet declined to 30 percent of total January sales, from 37 percent a year earlier. The daily rental mix was down to 12 percent of the total, from 18 percent last January. Pipas expects sales to commercial fleets to increase this year for Ford.
Toyota Motor Sales' 17 percent gain matched the industry's growth. But for Toyota, which has emphasized its retail strength for a year, January's growth was driven by fleet sales. A 7,000-unit Corolla fleet delivery made the small sedan the best-selling car in the country in January, Toyota said, and increased the fleet mix for the Toyota brand.
"Our January fleet was 12.6 percent of the mix, compared to 8.5 percent for (all of) 2010," said Toyota brand General Manager Bob Carter. But he insisted Toyota intends to limit fleet to 2010 levels over the year ahead.
Sales of full-sized pickups sizzled in January -- up 29 percent to 94,320. Every model posted gains of at least 22 percent except the Nissan Titan, which was down 4 percent to 1,431.
Sales of pickups, vans, SUVs and crossovers rose 29 percent to 413,276, and cars gained 7 percent to 406,662. A year ago, cars led light trucks by almost 60,000 units.
Subaru of America, the only brand to increase U.S. volume three straight years starting in 2008, started the New Year with a 21 percent sales gain.
(Source: Automotive News, 02/07/11)
So many retail customers are pouring into dealer showrooms that several carmakers and analysts have boosted their 2011 sales forecasts.
TrueCar.com says January's retail SAAR was 10.2 million, up from 8.3 million a year earlier. And that retail burst lifted January's overall selling rate to its highest level since cash for clunkers 18 months ago: a seasonally adjusted 12.6 million units.
"Consumers are driving much of the gain," said Don Johnson, General Motors' U.S. sales boss.
Light-vehicle sales in January jumped 17 percent from a year earlier to 819,938 units.
Among the top seven automakers, according to industry sources, combined fleet sales declined by 12 percent and retail sales rose 28 percent.
"Retail sales were much stronger than fleet," said J.P. Morgan analyst Himanshu Patel in a note to investors. "Fleet sales were down, primarily driven by weaker daily-rental sales."
Light trucks outsold cars for the fourth straight month. And General Motors Co. and Toyota Motor Sales U.S.A. fired the first shots in what some analysts fear could become a new incentives war.
January's overall SAAR of 12.6 million was fractionally higher than December's and above the Bloomberg consensus forecast of 12.4 million. Last year U.S. sales were 11.6 million, up 11 percent over 2009.
The retail gains encouraged automakers and analysts.
"The recovery is being fueled by real, natural demand and by consumers who aren't just buying what they need but also starting to buy because they want to," said TrueCar analyst Jesse Toprak. "The most promising thing is the retail growth."
GM's Johnson credited retail for the automaker's 22 percent January sales increase.
GM and Ford last month each added half a million units to the upper range of their 2011 sales forecasts -- both to 13.3 million units. IHS Automotive boosted its forecast to 13.1 million from 12.8 million.
On Jan. 27, J.D. Power and Associates raised its forecast to 12.9 million from 12.8 million. So far, TrueCar's Toprak has not changed his 12.7 million forecast. But he's reviewing it and said: "There is more upside than downside this year."
Several automakers are sticking with 2011 projections made at the start of the year but say they are leaning toward the upper end of their ranges after January's results.
Except for Mazda's 9 percent decline, all automakers boosted sales in January. Hyundai-Kia Automotive, Chrysler Group and GM outperformed the market. Hyundai-Kia gained 24 percent, Chrysler rose 23 percent, and GM rode an incentive surge to its 22 percent sales increase.
Three groups increased volume but lost market share. Nissan North America's sales rose 15 percent, American Honda Motor Co. was up 13 percent, and Ford Motor Co. rose 9 percent.
Ford-brand sales were up 22 percent, but Ford said its lower overall figure reflected a planned 27 percent decline in sales to daily rental companies, as well as last year's elimination of Mercury and sale of Volvo.
George Pipas, Ford's chief sales analyst, said he expects retail sales to provide more growth than fleet this year, especially in the first half.
At Ford, fleet declined to 30 percent of total January sales, from 37 percent a year earlier. The daily rental mix was down to 12 percent of the total, from 18 percent last January. Pipas expects sales to commercial fleets to increase this year for Ford.
Toyota Motor Sales' 17 percent gain matched the industry's growth. But for Toyota, which has emphasized its retail strength for a year, January's growth was driven by fleet sales. A 7,000-unit Corolla fleet delivery made the small sedan the best-selling car in the country in January, Toyota said, and increased the fleet mix for the Toyota brand.
"Our January fleet was 12.6 percent of the mix, compared to 8.5 percent for (all of) 2010," said Toyota brand General Manager Bob Carter. But he insisted Toyota intends to limit fleet to 2010 levels over the year ahead.
Sales of full-sized pickups sizzled in January -- up 29 percent to 94,320. Every model posted gains of at least 22 percent except the Nissan Titan, which was down 4 percent to 1,431.
Sales of pickups, vans, SUVs and crossovers rose 29 percent to 413,276, and cars gained 7 percent to 406,662. A year ago, cars led light trucks by almost 60,000 units.
Subaru of America, the only brand to increase U.S. volume three straight years starting in 2008, started the New Year with a 21 percent sales gain.
(Source: Automotive News, 02/07/11)
Friday, February 4, 2011
Sports and Leisure: How Web Savvy Are Super Bowl Fans?
Super Bowl advertisers take note. A new study by The Media Audit reveals that 41.6% of U.S. adults who regularly follow the Super Bowl on TV or radio are also considered heavy Internet users, spending three or more hours in the typical day online. Furthermore, Super Bowl fans are more likely than the general population to surf popular websites and make online purchases.
According to the national study, 71% of those who regularly follow the Super Bowl have made one or more online purchase in the last year, compared to 64.6% for the general population. Furthermore, 47.5% have made five or more purchases within the past year and 26.7% have made at least twelve purchases in the past year.
The same study reveals that Super Bowl fans are more likely to visit the web pages of newspapers, TV stations, and radio stations. Among Super Bowl fans, 41.7% have made a visit in the past month to a TV network website, compared to 36.5% of the general population. As a result, Super Bowl fans are 16% more likely to visit a TV network's website. Super Bowl fans are also 16% more likely to have visited a radio station's website in the past month and 17% more likely to have visited the website of a major daily newspaper.
One in four Super Bowl fans regularly or occasionally visit an automobile website, compared to 21.9% for the general population. Among some of the more popular automotive specific websites visited are Autotrader.com and Craigslist.org. Six percent of Super Bowl fans have visited Autotrader.com in the past month, a figure that is 30% higher when compared to the general population, and 7.9% have visited Craigslist.org for automobiles, a figure that is 10% higher when compared to the general population.
(Source: The Media Audit, 01/31/11)
According to the national study, 71% of those who regularly follow the Super Bowl have made one or more online purchase in the last year, compared to 64.6% for the general population. Furthermore, 47.5% have made five or more purchases within the past year and 26.7% have made at least twelve purchases in the past year.
The same study reveals that Super Bowl fans are more likely to visit the web pages of newspapers, TV stations, and radio stations. Among Super Bowl fans, 41.7% have made a visit in the past month to a TV network website, compared to 36.5% of the general population. As a result, Super Bowl fans are 16% more likely to visit a TV network's website. Super Bowl fans are also 16% more likely to have visited a radio station's website in the past month and 17% more likely to have visited the website of a major daily newspaper.
One in four Super Bowl fans regularly or occasionally visit an automobile website, compared to 21.9% for the general population. Among some of the more popular automotive specific websites visited are Autotrader.com and Craigslist.org. Six percent of Super Bowl fans have visited Autotrader.com in the past month, a figure that is 30% higher when compared to the general population, and 7.9% have visited Craigslist.org for automobiles, a figure that is 10% higher when compared to the general population.
(Source: The Media Audit, 01/31/11)
Tuesday, February 1, 2011
Motorcycle Brands Look for Keys to Youth
Both the products and the news are surprising in the motorcycle business this year, as companies like Honda and Harley try unusual methods for getting younger consumers, or first-time consumers, to swing a leg over a bike.
Take Honda. One of the products that Honda's Torrance, Calif.-based U.S. sales arm is riding into showrooms this year is a 250cc, one-cylinder bike that the company hopes has the chutzpah, looks, and technology to take on Kawasaki's Ninja 250 and maybe bigger motorcycles. By today's standards, where it is perfectly natural for a starter sport bike to have north of 700 cc's under the seat (and even some scooters have larger displacement than that), 250 seems small. A lot of people think a bike should have a lot of power.
But Honda spokesperson Jon Seidel says the new CBR 250R motorcycle, a sleek sport bike, is designed to do pretty much everything that bigger-displacement bikes do. "You can tour with it, ride roads, or highways. And because it's only 359 pounds, it's much less intimidating for first-time riders than larger motorcycles." If so, it's also lighter than the Ninja 250's official curb weight of 375 pounds.
Seidel says the company is also doing something unusual with the bike: He says this is the first motorcycle in this class to have ABS, or anti-lock braking. He said the price, a tad north of $4,000 with ABS, is designed to bring in relatively new riders who aren't ready to plunk down more than $6,000 for a bigger bike.
Harley-Davidson, which is also bringing in new, younger riders with its Dark Custom line, will launch the Blackline FXS Softail this year. The company says the Dark Custom motorcycles have given it the highest share of street-bike owners between 18 and 35 years of age of any brand and any size of bike. Younger riders are critical to the brand's health, as its traditional owner base for big cruisers is primarily in the Baby Boomer demographic.
Mike Lowney, head of market outreach for the Milwaukee, Wisc.-based company, says Harley -- which launched a retro-style motorcycle called 48 last year -- is getting a boost from a cultural shift among some younger riders away from sport bikes and toward an aesthetic epitomized by naked bikes like Harley-Davidson's own retro Forty-Eight, which features a peanut gas tank and tractor-seat type saddle. "There's a move toward the post-WWII-type chopper," he says. "It's minimalist, grassroots, rogue -- not at all contrived."
Lowney says the company has 1.9 million fans on its 18-month-old Facebook page. Half of them are under 35. The company also just launched a Dark Custom microsite. He says the leading Harley-Davidson motorcycles among younger riders include the Iron 883, the Forty-Eight, and the Street Bob.
The company this year will focus on building relevancy among younger riders with targeted campaigns similar to last year's message that financing lets you get onto a Harley-Davidson for $6 a day.
"Attainability is the focus," says Lowney, who adds that the company will also do more experiential marketing this year. That tactic started recently with a party that took place on New York's West Side timed with the International Motorcycle Show in the city's Jacob Javits Center. Harley also hosted a party for influencers at Don Hill's club in the Greenwich Village, where the Blackline was displayed. "They were all over it," he says. The company also has its V-Rod Muscle motorcycle as Kato's other ride in the new "Green Hornet" film.
Last year, the company sponsored the 20-city heavy-metal Mayhem Tour, and had products at SXSW and the giant four-day Bonnaroo festival in Manchester, Tenn. "It's really a 'flashpoint' strategy," he says. "We like to bring Harley-Davidson to one big event, one geographic area over multiple days."
(Source: Marketing Daily, 01/25/11)
Take Honda. One of the products that Honda's Torrance, Calif.-based U.S. sales arm is riding into showrooms this year is a 250cc, one-cylinder bike that the company hopes has the chutzpah, looks, and technology to take on Kawasaki's Ninja 250 and maybe bigger motorcycles. By today's standards, where it is perfectly natural for a starter sport bike to have north of 700 cc's under the seat (and even some scooters have larger displacement than that), 250 seems small. A lot of people think a bike should have a lot of power.
But Honda spokesperson Jon Seidel says the new CBR 250R motorcycle, a sleek sport bike, is designed to do pretty much everything that bigger-displacement bikes do. "You can tour with it, ride roads, or highways. And because it's only 359 pounds, it's much less intimidating for first-time riders than larger motorcycles." If so, it's also lighter than the Ninja 250's official curb weight of 375 pounds.
Seidel says the company is also doing something unusual with the bike: He says this is the first motorcycle in this class to have ABS, or anti-lock braking. He said the price, a tad north of $4,000 with ABS, is designed to bring in relatively new riders who aren't ready to plunk down more than $6,000 for a bigger bike.
Harley-Davidson, which is also bringing in new, younger riders with its Dark Custom line, will launch the Blackline FXS Softail this year. The company says the Dark Custom motorcycles have given it the highest share of street-bike owners between 18 and 35 years of age of any brand and any size of bike. Younger riders are critical to the brand's health, as its traditional owner base for big cruisers is primarily in the Baby Boomer demographic.
Mike Lowney, head of market outreach for the Milwaukee, Wisc.-based company, says Harley -- which launched a retro-style motorcycle called 48 last year -- is getting a boost from a cultural shift among some younger riders away from sport bikes and toward an aesthetic epitomized by naked bikes like Harley-Davidson's own retro Forty-Eight, which features a peanut gas tank and tractor-seat type saddle. "There's a move toward the post-WWII-type chopper," he says. "It's minimalist, grassroots, rogue -- not at all contrived."
Lowney says the company has 1.9 million fans on its 18-month-old Facebook page. Half of them are under 35. The company also just launched a Dark Custom microsite. He says the leading Harley-Davidson motorcycles among younger riders include the Iron 883, the Forty-Eight, and the Street Bob.
The company this year will focus on building relevancy among younger riders with targeted campaigns similar to last year's message that financing lets you get onto a Harley-Davidson for $6 a day.
"Attainability is the focus," says Lowney, who adds that the company will also do more experiential marketing this year. That tactic started recently with a party that took place on New York's West Side timed with the International Motorcycle Show in the city's Jacob Javits Center. Harley also hosted a party for influencers at Don Hill's club in the Greenwich Village, where the Blackline was displayed. "They were all over it," he says. The company also has its V-Rod Muscle motorcycle as Kato's other ride in the new "Green Hornet" film.
Last year, the company sponsored the 20-city heavy-metal Mayhem Tour, and had products at SXSW and the giant four-day Bonnaroo festival in Manchester, Tenn. "It's really a 'flashpoint' strategy," he says. "We like to bring Harley-Davidson to one big event, one geographic area over multiple days."
(Source: Marketing Daily, 01/25/11)
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