New Persuasion

Missionaries Can Teach Communicators a Few Things

If communicators want to learn some lessons on reaching new audiences, they could study what modern day missionaries are up to.  Not to say I completely agree with their mission - to me, it seems disrespectful of local religions to come in and say that you've got the best one yet.  But I do admire their persistence and their wide use of communication tools, both old and new.

From the Washington Post article:

Using technological devices ranging from simple cassette tapes to solar-powered audio players and an iPod-like gadget called the Bible Stick, Christian groups are spending hundreds of millions of dollars a year to make one of the world's oldest books accessible in remote corners of the planet...Complete versions of the Bible can now be downloaded onto cellphones in parts of Africa. To reach those who can't read -- nearly one-fifth of the world's population, according to the United Nations -- Christian groups are rapidly increasing production of audio and video versions.

Jill Fallon, over at Business of Life, writes about the movie that's been seen by 5 billion people.  Star Wars?  E.T.?  Titanic?  Nope.  The Jesus Film - no, it's not Mel Gibson's The Passion of the Christ - it's the 1979 version, filmed on location in the Holy Land, starring a no-name cast.  It's also, according to The Washington Post, been translated into more than 1,000 languages.  Where did this movie come from?  The BBC says:

"[It's] the work of an American evangelical organisation, Campus Crusade. Funded by its supporters and well-wishers, it sends teams around the world, even where they are not particularly welcome. There they record new translations of the film, organise screenings to inquisitive crowds in improvised cinemas, and distribute copies to whoever they can."

Because of their zeal, missionaries leave no stone unturned in their effort to bring their message to everyone in the world - communicators should pay attention.

Filter for Good

While doing some research this morning I came across a website representing a campaign called "Filter for Good."  According to the website,

Brita and Nalgene have partnered to present FilterForGood. Take the pledge to make a small change in your life that could be part of a big change nationwide.

If you're ready, take the pledge. Still not convinced? Learn the facts about why reducing bottled water waste is so important.

And, if you purchase a FilterForGood refillable bottle, you'll also be supporting the Blue Planet Run Foundation, a nonprofit organization working to provide safe drinking water to 200 million people for the rest of their lives by 2027. For every FilterForGood refillable bottle purchased between August 10th and December 31st, 2007, a donation of $4, up to a maximum of $25,000, will be made to the Blue Planet Run Foundation.

This site offers some really great statistics about why bottled water waste is a concern and what we can do as individuals to help the big picture.  This shows that our society is aware of the environmental issues gaining media attention as well as ways in which we can make a difference.  I think that emphasis on the environment is only going to become more and more important over the upcoming decades-- especially because of the continuous coverage of the impact humans have on global warming.  It is good to know that companies are teaming up to give us options as consumers without taking away the convenience element that we love.

Creative Ideas for Advertising

Gareth Kay over at Brand New pointed me to this article from Campaign magazine about how today's advertising folk are missing the point on new ideas:

As Mother's Dylan Williams puts it: "Most of the stuff that inhabits popular culture starts from audience response and works back to an idea. We in advertising tend to start with our message and work outward. We are spending too much time on what we want to say, rather than what people want to hear. Maybe we should flip the traditional planning process. From message-out planning to audience-back strategy. Dispense with propositions and focus on more thoroughly understanding what people are into. Spielberg said he wanted to make everyone in a cinema feel joy. Then worked back to ET. What would we make if our development process worked this way around?"

The Chairman of Fallon London, Laurence Green, wrote the article.  He thinks that even when advertising is not for the Internet, it should be conceived as if it were:

And even when there is no strategic or executional online element to our
campaigns, we can still benefit from "thinking digital". Most simply by
asking: how can the consumer - or other parties - interact with, engage
with, or use our idea? Have we invited participation somehow, even if
our invite goes unanswered?

Advertising should start with the customer - not the product. 

Is She a Barbie Girl?

There are some things that we as Americans love, and there are some things we just seem uninterested in.  It's normal for product popularity to fluctuate over time.  We change our minds often and love when products are created just for us.  It's interesting to compare the way people in other countries spend their money with the trends in America and the types of things we like to buy.

One thing we know for sure is that parents are spending a lot of money on their children these days.  According to an estimate by the U.S. Department of Agriculture, the average cost of raising a child from infancy to college entrance ranges from $143,790 to $289,380-- depending, of course, on outside factors like family income and lifestyle.  Along with educational spending and the cost of things like food and clothing, every child enjoys getting a new toy-- families are buying them up often all around the world.

An article from The Wall Street Journal that focuses on the rise and fall of toy maker Mattel Inc.'s products was pointed out to me today-- and I think there is a larger meaning behind the changing numbers.  According to the article, Mattel's second quarter profit rose 15% because of the huge international interest in Fisher-Price and Hot Wheels toys.  According to the article, "International sales jumped 18%, helped by foreign-currency translations and gains in Brazil and other Latin American market."  Toy sales in the United States actually were down 3% this year.

Sales of Barbie rose 6% internationally, but fell by 5% in America.  Apparently the Bratz dolls by MGA Entertainment Inc. have been in competition with Barbie's fans.  Mattel is trying to fight back with things like www.thebarbiegirls.com, an interactive online site which allows girls to create a virtual character, play games, chat, and shop online. 

With the rise in technology and the new types of activities young girls are interested in today, it's not surprising to me that Barbie isn't as popular today as it was when I was a little girl.  Now there are so many options of how a young girl can occupy her free time, so sitting and playing with a doll may not seem as appealing as watching a DVD or playing a game online.  Interactive entertainment has become a trend of today and it's very interesting to note that Mattel Inc. is doing all it can to break into the online market and target these groups of new technology-savvy kids.

Loyalty, Nascar style

Nascar racing fans are a breed like no other, especially when it comes to supporting the sponsors of their favorite drivers.  Nascar drivers are much more dependent and loyal to their sponsors than other athletes are to their sponsors.

If Tiger Woods were to lose a sponsor, his golf game probably wouldn't be affected very much.  However, if a NASCAR driver loses his sponsor, there is the very real possibility he won’t be racing until a new sponsor steps in.

After a big victory, a Nascar driver will immediately thank his sponsor, whereas Tiger would probably thank friends and family first.

And because fans feel so connected to their favorite drivers, they want to support what he supports.

A recent article states:

Fans feel they owe the sponsor something for providing them with the sport they love.  "It's the same mechanism as if someone buys you a  beer at the bar.  There's also the impulse, you're going to buy one back."
There are sponsors emblazoned on every car, jersey and piece of equipment. Everything from the gasoline the drivers put into their tanks to the memorabilia sold in the stores has a sponsor's branding.Corporate sponsorship in NASCAR will reach $2.9 billion this year, a 5.5 percent increase over 2005, according to the Associated Press. Companies continue to see value in the sport, largely because fans keep flocking to the sponsors.

Outside the races, the companies cross-promote with other NASCAR sponsors in order to increase fan appeal. Home Depot teamed with fellow NASCAR sponsor Coca-Cola to create an orange Powerade flavor in honor of Stewart.

Another study showed that:

89% of NASCAR fans believe, “When I see a NASCAR logo on something, I know it will be a quality product.”  And fans are three times as likely to try and purchase NASCAR sponsors’ products and services than a non-fan.

Sponsors of other sports would love to have this fan base and this much support.  Even though athletes are paid millions of dollars in endorsements, very few seem to create the buzz that Nascar sponsors do.  Why do you think that is?

Did you Drink you Nutrients Today?

I don't think the American public will ever get sick of hearing about anything health-related.  We spend hours worrying about dying of cancer and getting mercury poisoning, and we often buy things that we hope will make us live longer and look younger.  Sometimes our priorities are completely off-kilter.

I was really interested when I saw that The Wall Street Journal had an article about getting your daily vitamins through drinking liquids like Propel Fitness Water, Vitaminwater or the new Coke Plus soda.  I feel that we as a nation are always interested in stuffing vitamins anywhere we can, and don't even flinch when we hear that consumers are willing to pay about $2.00 for a drink that may not even be as good for you as it wants you to think it is.

The article points out, "For example, each 8-ounce serving of passion-fruit-and-citrus-flavored SoBe Life Water has 10% of four types of B vitamins, considered essential to helping cells make and use energy.  But a bowl of breakfast cereal or a couple of slices of bread typically offer even more than that amount."

Drinks containing nutrients have more than tripled in volume growth in the United States-- compared with a growth rate of only 5% for the entire beverage industry.  It is important to note also that popular drinks like Life Water and Vitaminwater have about 125 calories per bottle, whereas sodas generally have over 150 calories per can or bottle.  Obviously drinking something with some nutritional value (instead of having a regular soda) is likely better for you, but so is taking a multivitamin with a tall glass of water.

The relief people get from doing something that makes them feel better about their choices is likely to be a driving force behind the popularity of vitamin drinks.  People know about healthy choices and could just as easily make small diet adjustments, but enjoy feeling trendy and doing something that is new and "healthy" without having to change their lifestyle.  I can see why parents would prefer to buy nutrient-fortified products for their children in lieu of soda or other sugary drinks, but I can't see why anyone (like CC Brunk-- mentioned in The Wall Street Journal article) would want to spend money to drink three bottles of Vitaminwater per day. 

I think this trend tells us that we are interested in taking care of ourselves and in being healthy.  It's definitely on our minds-- but obesity rates are definitely up.  We have good intentions, but, unfortunately, good health benefits usually don't come without a little bit more effort.  A part of me believes that if products like these had hit the shelves in the 70s or 80s, very few people would have considered spending money on them.  I guess timing is the key.

Straight from the Tap

We are bombarded with advertisements every single day.  We see ads when we walk around outside, when we read the newspaper, and when we watch TV.  It's a challenge now for advertisers to create ad campaigns we really notice that stand out in the crowd of thousands we are exposed to on a daily basis.

One ad campaign I found out about in Brandweek really surprised me: the new "Get your fill" campaign-- gloriously paid for by the taxpayers of New York City-- promotes tap water to residents and tourists.  Apparently, New York is one of only five U.S. cities that has a federal filtering waiver, yet, many children and adults have the preconceived notion that the city's water is not drinkable.  This may be partially due to the overexposure of people walking around with bottled water (which is still proving to be a very profitable business).  No matter what the cause, Mayor Bloomberg has taken notice and is doing all he can to change viewpoints.

The campaign will spend $700,000 and will post ads throughout the subway system, check-cashing stations and bus kiosks in hopes that use of city water will increase along with awareness. 

I know I have blogged a lot about water (especially bottled water or negative effects on the environment) and I most likely will continue to post articles or information in the future because water is so important.  Water is something that we as a nation often waste and take for granted, and I think the ad campaigns are a little obvious, yet, interesting.  I'm not sure that all taxpayers would agree that this is a good use of $700,000-- but the long-term effects could be worth it.  I think the fact Mayor Bloomberg even feels it's important to advertise tap water shows the way our societal viewpoint is shifting.  We are taking notice of the types of things we should focus more on as unit and are trying to come up with ways to get the word out.  We have realized that togetherness can pay off and that our environment is something that should be on the top of our priority list.

Sign Spinners - Advertising as Spectacle

From New Persuasion Intern Megan Cifrino:

ABC World News ran a piece this week on a new kind of advertising that is catching on in cities across the nation.  People as young as high school age have combined street sign promotions with freestyle spinning and twirling.

They say that traditional advertising gets boring and eventually people become disinterested in the average billboard. However “sign spinners” as they call themselves are always pulling out new tricks and keeps their audience and customers engaged.

Aarrow Advertising runs boot camps which train employees’ new tricks and keep them in shape. They also patent new moves.  The more tricks that you learn and the more experience you have can raise your income. The starting salary is $10 an hours and they can make up to about ($30,000 to) $40, 000 a year.  Sign instructors can make about $40,000 to $70,000.   Tell me again where can I sign up!? 

Sign Spinning  is an odd mix of dance, cheerleading, juggling, martial arts and advertising.  It's actually a professional sport.  Another example that traditional advertising isn't getting through.  How long before there are spinning competitions? 

Look out for the sign spinners in a city near you. Arrow Advertising hits cities including San Diego; Los Angeles; Washington, D.C.; Las Vegas; Sacramento, Calif.; Phoenix; Raleigh and Durham, N.C.; and South Florida.  Just remember to keep your eyes on the road as well. Some cites feel they are so eye catching they’re hazardous to drivers and are banning these new age human promotions.

This YouTube video, Spinergy, will give you an idea of what the sign spinning world is all about:

Water Skin?

I found a really great post on Springwise.com about a new type of bottled that could serve as an alternative to traditional plastic bottles used today.

Pitched as a water skin, a new bottle created by French packaging manufacturer Sidel provides a lighter alternative to traditional PET bottles. A regular plastic half-litre water bottle weighs 13 – 16 grams. Sidel's "NoBottle" weighs just 9.9 grams. According to Sidel, "Water is the largest beverage market by volume with 160 billion litres consumed in 2006. It also represents the highest growth sector and is expected to expand by 5.7 percent annually between now and 2010." On that scale, waste reduction of 20-30% adds up.

The innovation was made possible by using a highly flexible type of plastic with shape-memory, which lets the bottle bounce back into shape after being gripped or otherwise compressed. While calling a plastic water bottle eco-friendly smacks of greenwashing, Sidel's NoBottle is definitely is eco-friendlier. The potential waste reduction is significant and offering a lighter bottle — and its story — could boost sales for beverage makers marketing to green-aware consumers. NoBottle will be officially introduced at K 2007, an international trade fair in October.

I know that awareness is increasing across the globe and that we are starting to understand our environmental impact.  While this is a good idea for sure, we need to keep in mind that we should avoid one-time-use bottles when we have other alternatives.  The fact that companies are developing other means to continue making products that we demand on a daily basis shows that we hate to make changes that we feel could be inconvenient.  Hopefully we will find a way to keep everyone happy and healthy.

Small Changes Can Make a Big Difference

Everyone knows that kids are easily persuaded.  It doesn't take a rocket scientist to figure this out, and people that may or may not be parents already know this.  It seems like the last people to realize this are companies which market to kids.  Actually, it makes more sense to say that companies know everything there is to know about the young consumer market.  They just use what they know in a different way than many nutritionists and parents would probably agree with. 

I think that in America we are always skeptical.  We always think that there is a catch and that we are going to be taken advantage of.  We question what we read and what we hear and what we see.  We are always wanting to do our own research and ask people we know for advice instead of trusting a salesperson with their own agenda.  Basically, we have huge trust issues.  I think this is semi-depressing-- but in the end, I'm okay with this because the only person that will always be around to look out for me is...me. 

The New York Times did a great piece on companies marketing food ads to children.  The article focuses specifically on Kellogg's because of the organization's announcement that "it would phase out advertising to children under age 12 unless the foods meet specific nutrition guidelines for calories, sugar, fat and sodium."  Apparently, "Kellogg also announced that it would stop using licensed characters or branded toys to promote foods unless the products meet the nutrition guidelines."  These changes are going to take place over the next year and a half and will apply to approximately half of the products Kellogg markets to kids around the globe (this includes some of my personal favorites: Apple Jacks, Froot Loops, and the ever-tasty Pop-Tarts).

What are these standards? 

Well, for Kellogg's they are food products with:

• No more than 200 calories
• No trans fat
• No more than 2 grams of saturated fat
• No more than 230 milligrams of sodium
• No more than 12 grams of sugar

This is a great thing, but lets keep in mind this was all decided AFTER "threats of a lawsuit by two advocacy groups for children."  Funny how suddenly everyone scrambles to do the right thing when the bottom line is put in jeopardy. 

One thing I'm glad to hear about is that Kellogg isn't the only food company trying to changes its ways.  The New York Times article makes mention of Disney only allowing its characters to be used in food advertising if the products "complied with nutritional standards," as well as Kraft Foods halting advertising to products "to children under 12 that don't meet nutrition guidelines." 

I think that this is just the tip of the iceberg in terms of the future of food advertising to children.  I feel that America as a nation is starting to understand the reasons behind our unhealthiness and we are beginning to realize the steps we need to take to start healthier habits.  One thing that we are really finding out is that good habits are established early-- and we need to teach our children about the proper ways to take care of themselves while they are very young.  This move by food companies shows that our expectations are changing.  We want the products we buy to work with us-- not against us. 

The typical consumer-company relationship that once existed is now morphing into something that many of us are more comfortable with.  I can't wait to see what is defined as "healthy" 20 years from now, and I feel that we will look back on these small decisions and see them as big turning points for the consumer.

Shop Happy

I rarely pay much attention to commercials on TV.  I have Tivo and skip through most of them or just flip the channels if watching TV live.  However, I keep seeing commercials for Bloom grocery stores and I am intrigued.  I have never been to one of their stores, only  because the closest one to my house is 15 miles away, but I really want to.   The commercial has a catchy jingle and their tag line is "Bloom, a different kind of grocery store.” 

Most people would probably list more things they dislike about going to the grocery store than things they like.   They're crowded, lines are long, selection is bad, produce isn't fresh, etc.  Bloom claims to be a grocery store designed by grocery shoppers for grocery shoppers.  What a novel idea.   Convenience and technology are the driving forces of how Bloom differentiates itself from other grocery stores.  A recent article explains:

Bloom emphasizes placing items logically so they're easy to find. For example, all breakfast items such as eggs, bacon and cereal are in one aisle. Non-food items such as dog food, paper products and cleaning supplies are on one side of the store. Food items are displayed together.  Frozen items are closer to the checkout section, so items won't melt before they're taken out of the store.  Bloom's shelves are lower than in the average supermarket, with the goal of ensuring products are easy to reach.  The guest services area at the front of the store offers a variety of convenient services for customers, including bill payment, copying and faxing, gift cards, money orders, hunting and fishing licenses, shipping of packages and Western Union services.

One of the biggest technology assets are the personal scanners that allow customers to scan items as they put items in their cart, thus alleviating long check out lines.

Key technologies include personal scanners and information kiosks. The personal, handheld scanners are located in a rack at the front of the store.  "You scan your card when you come into the store, then one of the scanners lights up," she said. "You take [the scanner], and you can scan and bag your groceries as you go through the store. Then when you check out, you simply hit "end of trip," scan your card, and it's automatically totaled. You just pay and go."  A random check may occur periodically to help ensure items are scanned in properly.  She emphasized that Bloom is "all about options" and customers can always go through the traditional checkout process with a cashier handling the transaction.  Customers can also prepare their shopping lists online at www.shopbloom.com, download them at the kiosk and print the lists by aisle location order.

I like that their logo is "shop happy."  It shows that they realize grocery shopping can be a pain and they are trying to make it a fun (or at least more fun) experience.  They are appealing to our emotions and realize our time is just as important as our money.   Customer service is emphasized, as are shopping options.  Has anyone been? I'd love to hear some first hand stories.

When Customers Find New Uses for a Product

I have a nephew in the Marines.  He's in Iraq and he recently sent the family a list of things that guys in his unit would like to get.  High on the list was baby wipes.  Baby wipes?  Turns out soldiers use them for personal hygiene and cleaning their equipment and lots of other things. 

Now Matthew at Childs Playx2 says baby wipes are the new duct tape. (Thanks to Sarah at Strollerderby for the link.)  Besides wiping various parts of the body, he also uses wipes for:

• Cleaning the bannister
• Removing crayon from the coffee table
• Polishing your shoes
• Wiping snot off your computer screen
• Cleaning grout on kitchen tile
• Wiping dried oatmeal from the floor
• Cleaning high chair trays
• Cleaning the blades on your windshield wipers
• Wiping dirt from the top of a soda can
• Doing a quick wipe down of the toilet rim before visitors arrive

I love when people find new uses for a product.  A man I used to work with, who had no children at the time, always carried a bag of disposable diapers in his car.  He used them to suck up spills on the car seats or floors.  You can't believe how well they work.  He used them at home for the same thing.  So I did it too - and continue to do it.

I always wonder why the manufacturers of these products don't make use of the ingenuity of their customers.  If baby diapers can clean a carpet spill better than anything else, why not market them for that purpose?  I wrote about it awhile ago, but there is one company that does this - P&G has a fresh ideas section on its website for the laundry freshener Bounce.  Turns out you can use it for lots of different things and they encourage their customers to share their uses with each other. 

Flickr photo by Tom-Tom

Fun AND Sun

I know a huge trend right now is self-care.  We are starting to realize more and more that certain things are important and can extend our lives.  We are understanding more about certain types of cancers, foods to eat and to avoid, and ways to keep ourselves healthy that we didn't necessarily know about even just 20 years ago.

One topic that I have read so much about and seen so much media coverage on is skin cancer and skincare.  I have seen multiple news and magazine articles about the dangers of tanning beds, the proper amount and SPF of suntan lotion to apply daily, foods that can trigger sun sensitivity, times of day to avoid the sun, heredity issues, etc...  The list is endless. 

I was surprised to see an article in the Financial Times that ties in to this trend.  The article mentions that Speedo's Endurance + synthetic bathing suit fabric lasts 20 longer in chlorine and sunlight than regular nylon and has an SPF of over 50.  Other companies such as Mitty James have products like the "Towellling Top" that "has an UV/SPF rating of 45 [on the palest garment] and goes up to 100 on the darker pieces."

According to the Financial Times article, swimwear with SPF 'started in Australian market but is becoming more popular here'." 

Here are some websites to check out for more SPF swimwear products:

www.carvico.com

www.speedo.com

www.mittyjames.com

www.figleaves.com

www.sunseekersswimwear.com

www.laperla.com

The fact that so many products are making their way into the American market really says a lot about the way we value our health now.  We are starting to realize that negative effects of the sun and the ways that we can take action against aging and preventable health problems.  I think that this is going to continue to be a huge area of growth as more and more research emerges about the dangers of the sun.  It is a good thing that we are looking for ways to enjoy the outdoors while protecting ourselves.  We love to live our lives and we won't let much stop us from doing this the way we want to do it, but a few things that can make this easier for us is greatly appreciated.

Made-to-Order Online

What can be easier than buying things online?  As a country, we love the internet.  As consumers, we especially love the perks of cyberspace.

Now it's possible to order clothing that used to require alterations and measurements with the click of a button. 

TrendHunter posted a description of a website, www.asuitthatfits.com which says:

"Too busy to go for a suit? A change in the times for busy people. Now you can have a suit made to measure online. You send all your requirements: colour, material, measurements etc and they do the rest. There is a comprehensive step by step guide to assist you in getting that perfect suit, without moving. Look Natty, asuitthatfits.com."

I wonder how popular this type of thing is going to become.  We are always trying to save time.  I guess I understand that people feel they are not willing to compromise time if the product they are ending up with is basically the same.  If we have the choice of getting true-to-price quality in clothing right to our doorstep or going to the mall and getting measured, we pick the online option. 

Is "Innovation" Meaningless?

Innovation is used so much anymore, it's lost all meaning.  A recent Business Week article pointed out that there seems to be...

"...A backlash against 'innovation' (and 'design') is now under way. The constant incantation of the I-word in advertising, marketing, and conferences threatens to undermine a key business movement..."

And this from Popular Science Editor Mark Jannot:

"...but I certainly think that creating something entirely new (invention) deserves at least as much respect as improving on something that already exists (innovation).  But somehow innovation is flashy, cutting edge, new millennium, while invention appears fusty and old-school - Alexander Graham Bell to innovation's Steve Jobs..."

A few months ago, here at McGinn MS&L, we looked at 408 print (newspapers and magazine) ads with the words "innovation" or "innovative" - because we noticed that it was being over-used to the point of becoming meaningless.  Turns out we were right.  Here are some quick findings:

• There were 102 different company advertisements that claim their company is innovative.  These ads were not for a product, but for the company itself.
• There were 14 watch ads that were "innovative."
• There are 9 cities and states that consider themselves innovative.
• Ten clothing companies used innovation - including Eddie Bauer, JoS. A. Bank and J.Crew.
• The top three phrases used were:

1. "Tradition of Innovation" - Firestone, Riedel, Serta, Movado, Blackpain Boutique
2. "Innovative Technology" - Ford, Goodyear, Casio, Pure Vision, Norilsk Nickel, Con-Air, Dell
3. "Innovative Design" - Ultra Vision, Samsung, Dell Toshiba, LG

This was by no means a scientific survey - everyone in the office was told to pull anything they saw for about two weeks.  But it is telling - trying to distinguish yourself by being "innovative" really is not going to work.  Everyone's innovative - which means no one is. 

Some examples:

Special thanks to Christina Scripps in our office for the numbers and findings.

How do you tell time?

What time is it? Believe it or not, how you find the answer to that question says something about your age.   Did you look at your watch? Or perhaps you looked at your ipod or blackberry?  A recent study by NPD Group found that 25% of people under age 25 no longer wear watches while at least 25% have never worn watches.   According to Simmons Research:

In 2000, watch sales among 18- to 24-year-olds reached nearly $1 billion in the USA; by 2005, sales had dropped 34%. Even among 35- to 49-year-olds, who spend the most on watches, sales decreased 28% over five years, from $2.4 billion to $1.7 billion.

As a result of all this, watch makers are having to market watches more as accessories and jewelry than actual timepieces.  They are having to adapt to today's society and update their products accordingly.   If they don't, sales of watches will only continue to decline.

Trends in Affordable Luxury

"Consumers have more disposable income and are demanding and expecting to be able to afford luxuries…and more people out there with money to spend who think  'I can, I deserve it, and I want to treat myself'."
Marc Cohen, Director of research agency Ledbury,
Media & Marketing Europe, 9/28/06

Lots of folks write about luxury, but I haven't seen too much about affordable luxury.   So here are some things we've found that point the way to trends in this area:

• Daily consumption of premium coffee rose to 16% in 2006 from 12% in 2003...“A gourmet version of coffee is the new standard…Everybody’s expectations for coffee have gone up.”
  Lucian James, president of Agenda, a branding agency in San Francisco,
  NY Times, 8.22.06
• The number of magazines targeting affluent consumers increased fivefold in the last ten years. From a starting base of 90 titles in 1997, the field grew to 456 by the beginning of 2007. MediaPost’s Media Daily News, 1.23.07
• Boutique is going frugal and going everywhere…At $150 or so per night, you'll soon enjoy cool design, cutting-edge technology and hip social scenarios from Boise, Idaho, to Boston.   Los Angeles Times, 12/26/06
• Women purchase about 65% of luxury goods. International Herald Tribune, 1/19/07
• In 2005 luxury consumers of the GenX generation, born 1965 to 1976, spent 6.3% more buying luxuries than their affluent Baby Boomer counterparts.
  Unity Marketing 4/24/06
• A new niche that marketers say is growing has been called “The Gold-Collar Generation,” the blue-collar glitzy counterpart, 18-25 year olds that live at home, earn a modest salary in service jobs, but buy luxury items such as $325 sunglasses...Roughly 7 million of the adult working class (18-25 population) has been dubbed “gold collar.”   Seattle Times 9/14/05
• Costco attracts the most affluent customers in discount retailing -- with an average income of $74,000.   ABC News 20/20, 8/2/06
• Compared with those of other discounters, Target's customers, referred to as ‘guests,’ are on average younger, better educated, and more affluent. The company has successfully associated its name with a younger, hipper, edgier, and more fun image than its competitors. Harvard Business School, Working Knowledge, 8/16/04
• Bluefly: "Over 350 Designers. Up to 65% Off."  Bluefly Customers:Eighty percent are women,Household income of  $100,000,
  Nearly 65 percent are single, average age is 35
• Bag, Borrow or Steal is a new company that allows members to pay $10 a month to use handbags from companies like Coach and Gucci, which they keep until they’re ready for another item. The firm has customers in all 50 states – mostly professional women who enjoy rotating in and out of the latest styles. Newsweek, 10.2.06
• Celebrity Designers abound in the area of affordable luxury:  Madonna/H&M; Proenza+Schouler/Target; Roland Mouret/Gap; Viktor & Rolf /Wedding line for H&M; Elie Tahari/Macy's; Stella McCartney/Target.

So what does all this tell us about affordable luxury trends? (Note that these are our interpretations - I'm sure there are lots more conclusions others can come to):

1.  Affordable Luxury is not a trend.  It is a mainstream customer expectation.

2.  Good/Great design is one aspect of how consumers define luxury.

3.  The ability to “treat myself” to even the smallest of luxuries is increasingly important to consumers – and borders on necessity – we don’t just want it, we need it.

4.  Every industry can and should have a “boutique” aspect to it now – meaning small, exclusive, niche and customized.

5.  Women make the spending decisions – cater to women.

6.  To taste the affluent lifestyle, we will assume “temporary ownership” of a product or service.

7.  Gen X and Gen Y want luxury in their lives.

8.  Affordable luxury is fun, hip and cool.

9.  Celebrity design is one way for affordable luxury products to stand out in an increasingly crowded field.

Let me know what is missing or just plain wrong. 

Second Life gets Playboy

From Susan Getgood over at Marketing Roadmaps comes the news that Playboy is taking up residence in Second Life:

Playboy will figure out how to make real dollars from Second Life. Folks who are interested in the potential value of virtual worlds as marketing spaces should pay attention to what they do. We may lag by a number of years in terms of our audiences being in Second Life and other worlds, but by the time my [7-year-old] son is a potential (legal) visitor to Playboy's virtual mansion, I'm pretty certain just about everybody will be. Start paying attention now.

In an earlier post, Susan pointed out that the porn industry has led the way in so many technologies - first to video, first to the Web, and now the first major porn player in a virtual world.  She's right - pay attention to this.

Free stuff from Rachael Ray

The most bizarre thing happened to me this weekend and I'm still trying to figure it out.  If anyone has any insights, I'd love to hear them.

A mysterious package arrived on my doorstep Saturday afternoon.  It was addressed to me and the return address was "Everyday with Rachael Ray", Rachael Ray's relatively new magazine.  (I am a subscriber for those wondering how they got my name and address.)  I proceeded to open it and inside was a full size bag of Wheat Thins, hot tea bags, a Rachael Ray tote bag, body wash, a bunch of recipe cards and probably some other things I'm forgetting.  There was a note buried at the bottom saying it was from the magazine but no explanation as to why the box was sent.  Now, I'm not complaining and just like everyone else, I love getting free stuff, but I still can't figure it out.   Did they send these to every subscriber as a Thank You gift?  I don't think so as a colleague is also a subscriber and didn't receive a box.   

As a consumer, I'm loving it.  Free stuff delivered directly to my doorstep-- what's not to love? This makes me like Rachael Ray even more.  I subscribe to plenty of magazines and not once has anything like this ever happened.  Is this a new marketing gimmick?  Are the companies whose products were in the box hoping I'll sample their products and become a new customer?  I have no idea.  But, I like free stuff. And I'm talking about this mysterious box that appeared on my doorstep so I'm spreading the word about Rachael Ray.   As we've said before, society today is inundated with advertising and other information and it's hard to sort everything out, but this one definitely broke through the clutter and I took notice.

Buy my broken ipod

Society today has been more inundated with "stuff" than ever before.  We live in a disposable society.  We buy a computer only to have a new model come out a few months later.  We buy the latest digital camera and then upgrade the next year.  My ipod broke last year and instead of trying to get it fixed, I went out and bought a new one.  The old one has been sitting in my drawer collecting dust. I don't feel right just throwing it away but what else am I supposed to do with it?

Well, a new start-up will buy it from me!  Buymybrokenipod.com will buy old ipods, regardless of the state they are in.

The young start-up offers consumers a very simple way to sell their broken or unused iPods: after indicating which model they'd like to sell and what condition it's in, the website gives an instant price-quote. Send it in, and payment is transferred via PayPal within 24 hours after the iPod has been received.

The iPods are usually sold in bulk to small businesses who fix them for a living, replacing cracked screens, expired batteries and dead hard-drives, and reselling them to consumers. Generally, iPods received by buymybrokenipod.com are in good condition.

I went to the website and found out that I could get $16 for my old ipod.  Not a ton of money but it is something.  And I don't have to feel guilty about it ending up in a landfill somewhere or adding to the clutter in my house.  What a great idea-- now if only I could find someone to buy my old TVs and laptops.

Hairstyles of the Rich and Famous and Everyone Else

I watch the Bravo TV reality series Shear Genius.  When I first saw promos for this show , I laughed and said what are the challenges going to be?  Week 1 - cut hair, week 2, cut hair?  I vowed never to watch it. 

And yet.  My 12 year old daughter and I sit and watch it week after week.  Who knew that hairstylists actually had their own idols? 

It's more the personalities on this show than the actual hair that I love.  But I've recently discovered that people like hair - and they like to see hairstyles.

At Target last week, I was looking at the magazine rack, and lo and behold, there were 11 magazine about hair.  Eleven.  I was stunned.  Here they are:

   

I realize that not all these are regular publications, but I do think that Target used up a lot of their limited magazine display case on these titles.  What is going on here.  I'd say it was another sign of preoccupation with self and the desire to look like celebrities.  I know there's more going on here, but I'm not sure what it is.

Boomers Defined

Baby boomers have always redefined every life stage they've gone through.  Marketers have constantly tried to keep up with them and figure out the best way to reach them.  However, though they are all in the same generation, boomers cover every spectrum of the rainbow in terms of lifestyle, hobbies, spending habits, family and household situation, financial stability and so on.   Trying to reach them as a consumer has been quite a challenge.

I came across a fascinating post at The Boomer Blog that does a good job of explaining what boomers actually have in common and key points that marketers should pay attention to as this generation reaches retirement and redefines "old age."

So here, paraphrased, are seven qualities Intel has found that all aging individuals want to have in their lives. These make intuitive sense—but may be so much the water we boomer marketers swim in—we forget that they can be named. Individuals aging around the world want:

1. To be physically safe
2. To be able to choose the environment in which to live (i.e. “aging-in-place”)
3. To be connected to others
4. To be useful in some way—to have meaning in their lives
5. To be able to get the help and care they need
6. To have healthcare in the home environment, whenever possible
7. To get the support they need to partake in physical activities

Basically, as they age and head into retirement, boomers want to maintain the same lifestyle that they have now.  They don't want to be restricted as to where they live, what activities they participate in, who they spend their time with, or how they receive healthcare.  They want to maintain autonomy.  Marketers that realize this and create products that enable boomers to continue their current lifestyle will come out ahead.

create your own ringtone

And to follow up on Nellie's post from earlier today, you can now create and sell your own ringtones for your own cell phone company (or any cell phone for that matter.)  A company called Xingtone now lets you create your own ringtones. 

Downloadable at xingtone.com, the software is easy to use, too. Select a song or other audio file and use editing tools to clip out the part you want. Click "send," and the software sends a text message to your phone containing a link to download the ringtone (you'll need Web access from your carrier). Included: a feature to send pictures and voice-recorded ringtones to friends' phones.

After you have created your ringtone(s) you can then set up an online store to sell your ringtones.  It all seems pretty easy and here is one success story from an up and coming band:

Key Promotional Tactics:
1. link to ringtones in web site navigation
2. prominent link to tones on Myspace page
3. word-of-mouth promotion at gigs

In Travis' words: "I basically promote our ringtones through our website, Myspace, and word of mouth when playing clubs, festivals, etc. In our area and genre of music, we are basically the "Hot band" for the style of music we do in Louisiana. We are also the only band locally that features ringtones to our fans. Cajun/Zydeco is not a huge market like country, rock, etc., but there are musicians that play around the world for a living doing that kind of music!

Even if you are not in a band but just love music, you can create ringtones and sell them. This is all just one more example of personalization and a product created by the consumers for the consumers.