Daily Buzz 6-1-12
Walmart.com to Launch Subscription-Sampling Program
Walmart.com’s march to catch Amazon in e-commerce and integrate online and offline offerings is entering some new fronts and generating sometimes surprising results as the company prepares to launch the latest in a spate of new initiatives — Goodies, a subscription mail-order-sampling program.
Goodies, set to roll out within about a month, will initially focus on artisan and other food products but could expand to other product categories, said Neil Ashe, CEO of global e-commerce for Walmart, in a press briefing in Rogers, Ark. The briefing was part of the retailer’s “Shareholders Week” events prior to Friday’s annual shareholder meeting.
The monthly subscription price has yet to be determined, he said, adding, “think of it as cheap.” Initially, Walmart.com will choose the products to include in the box, then monitor how popular they are based on reorder activity. Mr. Ashe likened Goodies to the Birchbox program for cosmetics, and if it gains traction, he said marketers may be willing to pay to include their products.
Mr. Ashe, who took the top Walmart e-commerce job in January after running CBS Interactive, noted that he didn’t have much retail experience coming in, but joked that he had worked in his father’s small retail store in Knoxville, Tenn., when he was growing up. And in one of his first public appearances since taking the high-profile e-commerce role, Mr. Ashe laid out his vision for Walmart, which includes making considerable use of having the world’s biggest combination of online and offline retail assets. (www.adage.com)
Test Driving BMW’s First Concept Store in Paris
If BMW carries through with its plan to revolutionize the car-shopping experience, 10 years from now many of its dealerships won’t remotely resemble the kind U.S. consumers are used to seeing along the sides of highways.
Last week, the carmaker unveiled its first “concept store,” meant to serve as the model for BMW retail locations for years to come. It chose to launch it in Paris, and since I happened to be in town, I decided to go check it out. Despite some good directions, however, it was a tad difficult to find: Unlike many dealerships in the U.S., this one wasn’t bedecked with big colorful flags, giant signs or the otherwise loud calls for attention that people often associate with venues selling cars.
BMW’s Paris showroom, in contrast, feels like entering a really posh department store. The sleek, high-ceilinged space is mostly white and equipped with all manner of digital technology, including giant flat-screen panels. It was designed by retail architect Eric Carlson, whose portfolio includes spaces for brands like Tag Heuer, Longchamp and Tiffany & Co. The carmaker intentionally situated it in ones of Paris’ hippest shopping locales, a stone’s throw away from big luxury brands such as Cartier, Louis Vuitton, Bvlgari and Hermes. This is what those stores would look like — if they sold cars.
In inaugurating the BMW concept store last week, Ian Robertson, head of sales and marketing for BMW, said in a statement: “The world of retail has changed significantly — customer behavior, needs and expectations have changed, as well as communication technology.” He added that BMW’s new retail approach, which it’s dubbing “Future Retail” will “entail a whole range of initiatives and tools designed to enhance the customer experience and to set new standards for retail in the automotive industry and beyond.” (www.adage.com)
GM Trades Super Bowl for Soccer, Sponsors Manchester United
After ditching costly Super Bowl ads, General Motors is betting a five-year sponsorship of the Manchester United soccer club will bolster its Chevrolet line in the first test of the brand’s new global marketing strategy.
Manchester United, the 19-time English champion football team, has a worldwide reach that fits with the automaker’s desire to make Chevrolet a global icon, Paul Edwards, GM executive director of global marketing strategy, said in an interview prior to the announcement.
“It’s clear that global football presented us with a significant opportunity to spread Chevrolet around the world,” he said. “We recognized that it’s not only the world’s biggest sport but also the world’s most engaged fans.”
The agreement follows GM’s decision this month to halt paid advertising on Facebook and forgo next year’s Super Bowl championship game of the National Football League in the U.S. The decision to sponsor Manchester United isn’t related to GM’s move to stop Super Bowl advertising, Mr. Edwards said. Still, the numbers are compelling. (www.adage.com)
Pick-n-Pull Becomes Title Sponsor Of NASCAR Pro Series West Race In Sonoma
Infineon Raceway and Pick-n-Pull have entered into an agreement that will make the Rancho Cordova (Calif.)-based company the title sponsor of the NASCAR K&N Pro Series West race in Sonoma.
The race is part of the Toyota/Save Mart 350 NASCAR Sprint Cup Series weekend, June 22-24. The Pick-n-Pull Racing to Stop Hunger 200 will take the green flag at Infineon Raceway on Saturday, June 23. Pick-n-Pull was the title sponsor of NASCAR pole day in 2011 at Infineon Raceway.
“We are very excited about renewing our sponsorship with the raceway,” said Tom Klauer, president of Pick-n-Pull. “This year, as the title sponsor of the NASCAR K&N Pro Series West race, Pick-n-Pull Racing to Stop Hunger 200, we truly feel that our goals are aligned with regard to raising the awareness of hunger issues in the country and providing needed dollars to support the local food banks in the communities where we live and work.”
Pick-n-Pull is one of the largest recyclers of vehicles in the industry. With 52 facilities in the United States and Canada, they offer a selection of recycled parts for cars and light trucks at affordable prices. Seventeen of their locations are based in Northern California (picknpull.com). (www.sponsorship.com)
Last Friday night in St. Louis, Little Dragon prepared to perform for nearly 14,000 fans who weren’t theirs. It was the Swedish electro-pop band’s first night on tour with the veteran Red Hot Chili Peppers. With the audience still trickling into the sold-out arena, Chili Peppers singer Anthony Kiedis rolled up on a scooter behind the stage to thank Little Dragon for joining the tour.
Sensing some nerves, he said, “Don’t be daunted,” then relayed advice that his own band got “when we were kids” from funk legend George Clinton. Pointing to the rear of the darkened arena, Mr. Kiedis said, “Play to the last row. Everyone else in between will get it.” Then he high-fived the band and scooted off stage left, where he nodded along to the beat as Little Dragon launched into its first song, “Looking Glass.”
It is one of music’s most enduring rites of passage: warming up an indifferent (and potentially hostile) audience for the headline act. The pay is generally modest and the promotional benefits are unpredictable. But in recent years “support acts,” as they’re called in the industry, are enjoying new status.
This summer, as you debate skipping the band with the 8 p.m. set time in favor of more tailgating, consider that it’s more likely than ever that the opener was handpicked by the act you paid to see. Against the backdrop of weak music sales and vanished tour funding from record labels, artists and their managers are taking control of every aspect of their concert business. Promoters, booking agents and labels are still involved in the search for strong support acts, but there are fewer arranged marriages. That’s especially true when the headliner is a strong draw that doesn’t need to pick a hot opener to goose ticket sales. Plus, it almost always makes for a better show. (www.wsj.com)
Pizza Hut Tries the Sandwich Market Again
“WHEN the moon hits your eye like a big pizza pie,” the song goes, “that’s amore.” But there is little love lost when a big maker of pizza pie gets hit in the eye with the success of sandwiches.
Pizza Hut, the nation’s biggest pizza chain, will challenge sandwich shops — particularly those bearing the name of the category leader, Subway — with a new item, backed by a large campaign that is to begin on Sunday. The product, called a P’Zolo, is shaped like a sandwich, comes in sandwich varieties like Buffalo chicken and “meat trio” and is priced like a sandwich, at $3 apiece or two for $5.
The $5 price is no random number, as it echoes what Subway charges for its popular foot-long sub sandwiches. The campaign to introduce the P’Zolo, by the Martin Agency in Richmond, Va., is replete with references to Subway, including lines like “Say so long to the footlong” and “More bang for your 5 bucks.”
For those who find those jabs too subtle, Pizza Hut will take over a subway line in Chicago on Monday, wrapping trains with ads that read, “See ya subs. This is the P’Zolo.” Pizza Hut will give out free sandwiches to passengers at certain Red Line stops next Thursday.
Herbalife extends World Football Challenge support
Herbalife has announced it will continue as the title sponsor and official nutrition company of the World Football Challenge for a second consecutive year.
Under the terms of the deal, Herbalife will continue to activate the sponsorship through promotional activities at venues hosting the exhibition soccer tournament, which takes place across several North American cities between 18th July and 11th August. The company will also provide its Herbalife24 line of performance nutrition products to all participating teams.
So far 11 teams have confirmed they will compete, including high-profile names such as Uefa Champions League champions Chelsea, Serie A winners Juventus, La Liga title holders Real Madrid, Scottish Premier League (SPL) champions Celtic, European powerhouses Liverpool, AC Milan, and Paris Saint-Germain (PSG), and MLS sides LA Galaxy, DC United, Seattle Sounders, and Toronto FC. (www.sportspromedia.com)
Acura Launches ILX With Gen Y Flavor
The new catchphrase in the luxury auto category is “gateway vehicle.” It’s all about having a car that can bring Gens X and Y into the luxury market at a level they can handle. BMW has one with the 1-Series; Lexus has the CS 200h; Mercedes will introduce the A-Class; Cadillac will have the ATX vehicle that comes in below the CTS and Infiniti is bringing its own entrant to market.
Acura’s offering is the ILX, which starts at $25,900. The Torrance, Calif., luxury sibling of Honda is launching the vehicle with a new campaign from its U.S. agency of record, rp&. The campaign, which is also its biggest digital effort to date, uses music from The Ting Tings and Nick Waterhouse.
Susie Rossick, manager of Acura advertising, tells Marketing Daily that the digital buy will hone in on sites popular with 25-to-34 year olds. “We have upped our percentage of digital spend higher than we have ever done for Acura, because this group spends much more time online than Baby Boomers,” she says. “So we’re doing things on Pitchfork, Bleacher Report, and Mashable, for example. We are doing homepage takeovers on MSN and Yahoo.” The automaker is advertising on Xbox Live, Pandora and Good, and showing creative on YouTube, as well.
The two TV and in-theater ads use a split-screen motif to show upwardly mobile Gen Y people building their careers and social lives simultaneously. On one side, you see them in airports, and corporate offices. On the other, they’re at upscale resorts and nightclubs. In each ad, the character ends the journey in the driver’s seat of an ILX. “Life should be equal parts responsibility and fun,” says the voice-over. “Introducing the new Acura ILX. Move up. Without settling down.” (www.mediapost.com)
(RED) Gets Into Gaming For Good
Project (Red) has been on everything from T-shirts to greeting cards over its six-year history. Now, it’s putting its name on a video game tournament.
As part of the organization’s (Red)Rush to Zero campaign (aimed at creating an AIDS-free generation by 2015), the group is hosting Red(Rush) Games, giving average players the chance to play against and alongside celebrities such as Kate Upton, Kris Allen and Michelle Rodriguez.
The tournament, which is set to coincide with the E3 conference that covers video games and other forms of entertainment, is being powered by STiKS Gaming. Other gaming brands, such as Xbox360, PlayStation, EA and 2K are also supporting the effort.
“Gaming is a passion for millions of people, and (RED) is going to tap into that passion to get people focused and engaged in our efforts to help deliver an AIDS Free Generation by 2015,” said Deborah Dugan, CEO of (RED), in a statement. “We’re giving gamers an incredibly fun way to compete in a world-class tournament while doing good at the same time.” (www.mediapost.com)

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