Daily Buzz 3-21-11
- On a recent morning at Zuma’s Coffee Shop, an independently owned joint in the affluent Detroit suburb of Birmingham, a man in his mid 40s wearing jeans and a casual shirt sits in a windowless alcove hunched over his iPad, a BlackBerry on the table and a briefcase at his side. It’s about 38 degrees, warm enough to melt the stubborn March snow cleaving to the roadsides — sweater weather at worst for a native Michigander. Yet the man is clad in a down coat even inside the café.
- It’s Joel Ewanick, GM’s global marketing chief, on the job in Detroit for 10 months and no Michigan native, having left the more seasonable climes of Southern California at Hyundai, with a brief stop at Nissan in Nashville, Tenn., before accepting a move to Detroit that he had previously resisted.
- Mr. Ewanick comes to this often empty alcove at Zuma’s “to get some work done and to think,” he said, before making the 25-mile trek from his home in Bloomfield Hills south to General Motors’ glass and steel edifice on the Detroit River. Mr. Ewanick, who went from having only marketing responsibility for GM’s North American operation to the whole world two months ago, said he often tries to stay outside the office — known as “the tubes” around Detroit because of the multiple-cylinders configuration of the building — and has to ration his meetings “or the important work is not going to get done.” (www.adage.com)
How Pepsi Blinked, Fell Behind Diet Coke
- It’s debatable whether the brand was defeated or unwittingly surrendered by abandoning tried-and-true advertising for generation-next marketing tactics, and it’s also unclear whether it will stay down for long.
- But this much seems certain: Pepsi blinked. Its flagship, the perennial No. 2 to brand Coke, dropped to the No. 3 slot as it was surpassed by Diet Coke. As a result, for the first time in two decades, PepsiCo ceded the soft-drink category’s two leading share positions to its legendary rival.
- The shift was historic if not sudden, as it capped a long downward spiral marked by management changes, a complete overhaul of the brand’s marketing and logo, the close of a storied agency-client relationship and an exodus of marketing talent.
- As war stories go, this one is epic. “It’s a tale of two companies, both in the same category, both facing the same market dynamics,” said one executive close to Pepsi, referring to that brand’s rivalry with Coke. “One of them stayed the course and recognized that brand building is a long-term proposition. It built on its heritage, protected its brand and invested in its brand and its people. The other went into a tailspin, trying to reverse its fortunes overnight at any cost. It lost its best people, lost its continuity and, ultimately, lost its direction.” (www.adage.com)
Walmart Moves Back to Core Pricing Message
- As Walmart increasingly returns to strategies that made it Earth’s biggest retailer — everyday low prices, broad selections, cluttered aisles and shelves piled high with discount merchandise — some critics and early data suggest that what once worked may not anymore.
- Walmart-style big boxes may be giving way to a return of smaller stores as a variety of smaller formats thrive. And while Walmart is highlighting low prices for everyone, it seems to be becoming more and more clear that it can’t please everyone in every income bracket.
- In ads breaking next month, Walmart will highlight its decades-old everyday low pricing by poking fun at the high-low strategies of competitors offering discounts on select products. The chain will also highlight its policy of matching competitors’ advertised prices, a guarantee it’s always had but hasn’t talked about much in recent years. (www.adage.com)
Struggling ReelzChannel Hopes a Hot Potato Becomes Hot Ticket
- For one struggling cable channel, the controversial miniseries “The Kennedys” is a high-stakes bet to put itself on the map—a playbook that’s increasingly common among fledging cable networks.
- In February, the low-rated network ReelzChannel bought the U.S. broadcasting rights to the series about President John F. Kennedy and his family for about $7 million. The family-owned channel picked up the $25 million show after it was dumped by the History Channel and shunned by other networks amid an uproar over its portrayal of the Kennedys. (www.wsj.com)
Cause-Tied Marketing Requires Care
- From a Lady Gaga prayer bracelet to special sushi rolls at restaurants, the disaster in Japan has led to a rash of relief efforts.
- But as consumers become increasingly skeptical of cause-related marketing, celebrities, organizations and major marketers have to walk a fine line, trying to help without appearing to exploit the tragedy for profits.
- “Companies have an opportunity in this crisis to show that they care. Customers want that,” says Dean Crutchfield, an independent branding consultant. “But to take something as sensitive as a crisis and combine it with a brand message is a volatile situation that easily could explode.” (www.wsj.com)
Loaded Words in EPSN’s ‘Fab Five’ Reverberate Through Sports Press
- ESPN drew a record audience for “The Fab Five,” a documentary about the famed quintet of basketball stars at the University of Michigan in the early 1990s. The film, which aired last Sunday night, drew a 2.1 rating, according to the Nielsen Co.
- But the documentary has taken on a life of its own in the last week because of comments in the film about Duke University, the school that beat Michigan in the 1992 NCAA tournament final.
- Jalen Rose, a member of the Fab Five and an executive producer of the documentary, said he believed as a teenager that Duke only courted black players he considered “Uncle Toms” and that Duke “didn’t recruit players like me.”
- A player on Duke’s 1992 team, Grant Hill, responded to Mr. Rose’s comments in the New York Times last week. “I caution my fabulous five friends to avoid stereotyping me and others they do not know in much the same way so many people stereotyped them back then for their appearance and swagger,” he wrote. (www.wsj.com)
Mets’ SNY Partners Likely to Balk at Deal
- Executives at Time Warner Cable Inc. and Comcast Corp. would be unlikely to allow the owners of the New York Mets to sell part of their stake in the jointly owned regional cable channel Sportsnet New York, according to people familiar with the executives’ thinking.
- The stance could complicate the team owners’ efforts to sell a minority stake in the franchise to raise cash. The team owners want to complete a sale by the end of June to ensure they have enough money to cover their costs for the next two seasons, a person familiar with the sale process says. (www.wsj.com)
From a Food Giant, a Broad Effort to Feed Hungry Children
- CONAGRA FOODS, whose social cause is ending child hunger, is taking a new approach to raise the issue’s visibility. The company is starting its largest campaign ever, including a television special, to spur more grass-roots involvement to make sure no child goes hungry.
- The Omaha-based ConAgra financed a 30-minute program, hosted by Al Roker of the “Today” show on NBC, to tell the stories of American families who, each day, face the question of whether they will have enough to eat. One 8-year-old boy says, “I eat less so my sisters can have another meal.”
- “Child hunger is not a problem, it’s a crisis,” Mr. Roker said in an interview, referring to the 17.2 million children the Agriculture Department estimates are at risk of lacking food. In the special, Mr. Roker, along with an NBC correspondent, Natalie Morales, highlights the effects of hunger on children’s ability to learn and complete their education.
- To amplify its campaign, called “Child Hunger Ends Here,” ConAgra also is incorporating social media, including bloggers, digital placement and paid advertising to spread information about the increasing prevalence of child hunger and provide consumers with practical suggestions on how to help their communities. (www.nytimes.com)
Bridgestone recommits as MotoGP season starts
- Bridgestone will continue to be the official tyre supplier of MotoGP until at least the end of 2014. The extension to the Japanese manufacturer’s deal was announced by Dorna Sports, the series’ commercial arm, at the Qatar Grand Prix, the opening round of this year’s championship.
- Bridgestone will continue to supply tyres to every team in MotoGP as it has done since 2009. The company has been a tyre supplier in motorcycling’s top class since 2002. Casey Stoner, making his debut for the Repsol Honda team, won Bridgestone’s 71st Grand Prix under the lights at the Losail circuit on Sunday.
- MotoGP is now the most prestigious motorsport series Bridgestone is involved in, having exited Formula One at the end of the 2010 season. Financial terms of the deal were immediately unavailable, although pre-season speculation suggested that the company was seeking payment for tyres from teams for the first time. (www.sportspromedia.com)
Oakley continue 21 year association with Rusty Wallace
- Rusty Wallace Racing (RWR) has announced that Oakley will be the primary sponsor of the #62 Toyota Camry for the Royal Purple 300 at Auto Club Speedway in Fontana, California.
- Oakley will serve as the Nascar Nationwide Series team’s primary outfitter, supplying them with sunglasses, firesuits, footwear and uniforms to RWR’s #62 and #66 teams. Typically, primary sponsorships of teams in the Nascar Nationwide Series range from US$150,000 to US$250,000, with this deal believed to be worth the latter amount.
- Sports and lifestyle brand Oakley’s relationship with team owner Rusty Wallace is one of the longest-running deal is Nascar, dating back the start of the 1990 season when Wallace was the reigning Sprint Cup series champion. (www.sportspromedia.com)
Lauder Launches Idealist With Multi-Ethnic Models
- Estée Lauder is launching a new skincare line called Idealist, and to emphasize how well the products work on all types of skin, the company is making a multicultural splash with the marketing campaign. Both TV and print ads will feature models Joan Smalls, Liu Wen and Constance Jablonski, with an “Every Woman Can Be Beautiful” theme.
- The line includes Even Skintone Illuminator, which works on all ethnicities and promises results in two weeks, powered by such ingredients as rice bran extract, Vitamin E, licorice and gentian.
- And its Cooling Eye Illuminator — which also contains magnolia extract, caffeine, and sea algae — is using what the company says is the industry’s first contoured ceramic tip applicator, providing a cooling sensation. Both products are $58, and available at Estee Lauder counters nationwide in June. (The eye product is also scheduled for exclusive distribution at Bloomingdale’s beginning in April.)
- Ads supporting the new line are scheduled to break in June, and according to a report in Women’s Wear Daily, the campaign will get $35 million in North America ad spending; the launch could generate as much as $200 million in sales in the first year, with $85 million in the U.S. Sampling is also expected to play a major role in the campaign. (www.mediapost.com)
Jim Beam Presents ‘Live Music Series’
- Jim Beam is launching “Live Music Series” which includes a 10-market concert tour, each featuring a different headline artist, and exclusive downloads of live concerts.
- Artists performing as part of the “Jim Beam Live Music Series” include Kid Rock, Bob Schneider, Cold War Kids, Derek Trucks and Susan Tedeschi Band, The Fray, Grace Potter and The Nocturnals, The Hold Steady, Manchester Orchestra, O.A.R. and Richard Ashcroft. Cities on the tour are Boston; Cleveland; Atlanta; Philadelphia; San Francisco; Chicago; Orlando, Fla.; Flint, Mich., and Holmdel, N.J.
- A video message from Kid Rock is included on the microsite promoting the tour at http://www.jimbeam.com/live-music-series. The site also includes interviews with each of the artists under the headline “Profiles in Bold.” The Deerfield, Ill.-based brand also is promoting the music series and giveaways on its Facebook page and on Twitter.
- Beginning in May, special boxes of Jim Beam and Red Stag by Jim Beam will be marked with offer details and instructions on how to download a total of five “Live Music Series” tracks from the 10 artists on JimBeam.com. Jim Beam will also be streaming portions of each Live Music Series concert and exclusive interviews with each artist on JimBeam.com and Pandora. (www.mediapost.com)
Tecate Expands Marketing To All Hispanic Males
- Heineken USA’s Tecate beer brand, which until now has focused its U.S. marketing on Mexican male immigrants, is expanding its target audience to all male Hispanics for its new 2011 “Celebration” campaign.
- As part of this broader strategy, Tecate will for the first time test English-language TV spots in select markets, as well as incorporate Tecate Light into its creative.
- The brand’s previous campaign, “Anthem,” focused strictly on recognizing the perseverance and character of Mexican male immigrants in the U.S., with a serious tone that portrayed the struggles and hard-working lives of men laboring in blue-collar jobs to support their families.
- The TV spots and other elements of the “Celebration” campaign continue the “Con Carácter” (”with character”) theme, but have a partying theme, focusing on the “gregariousness and festivity” and other key elements of the overall Hispanic culture and Hispanic men. (www.mediapost.com)
Coca-Cola Is Raising Funds for RAIN through Music
- ‘Music for charity’—this idea is behind a range of Coca-Cola’s social initiatives, launched in recent years. Now, in collaboration with musicians Solange Knowles, Chris Taylor and Twin Shadow, the soft drink giant has released a digital-only charity single, ‘Kenya,’ which is helping raise money the Replenish Africa Initiative (RAIN) by Coca-Cola.
- “Backed by a six-year, $30 million dollar commitment from The Company, in partnership with other donors, RAIN’s goal is to provide over 2 million people in Africa with access to drinking water by 2015. RAIN will launch over 100 water access programs across Africa, including sanitation and hygiene education programs,” states the description to the program. People, who donate money (the amount of their choice) to fund one of the projects listed on the www.musicforrain.net micro-site, can then download the track (they receive a confirmation email with a link to the track after the donation is accepted). Through the new initiative, the company is going to collect $10,000, and is promising to show how the money is spent. So far, about $780 has been generated. (www.popsop.com)

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