New CEO To Transform Yahoo! With IMC Strategy

This week Carol Bartz, the new CEO of Yahoo!, announced major changes at the ailing company. While most reports of the restructuring noted Bartz’s shift to a more “top-down” managerial approach and paring down excessive layers of management, we here at Medill IMC think some aspects of the restructuring signal a promising shift toward a more customer-focused organization.

They certainly need it. Aside from narrowly escaping a takeover bid from Microsoft last year, Yahoo! has been losing market share in search to Google for years. Its diverse products– from Flickr to Delicious to Yahoo! Finance - lack consistency. And what’s with the name, anyway? Something about yodeling?

It helps that they’re creating a CMO position, which they’ve apparently never had. But the changes go deeper. In Bartz’s words from the Yahoo! blog:

“We’ll be able to make speedier decisions, the notorious silos are gone, and we have a renewed focus on the customer.”

Clearly, integration is a core goal at the new Yahoo!, along with a renewed focus on the customer with the creation of a new Customer Advocacy group:

“After getting a lot of angry calls at my office from frustrated customers, I realized we could do a better job of listening to and supporting you. Our Customer Care team does an incredible job with the amazing number of people who come to them, but they need better resources. So we’re investing in that. After all, you deserve the very best.

We’re also leaning on this team to make sure we’re all hearing the voice of our customers (consumers and advertisers). I’m singularly focused on providing you with awesome products. Period. The kind that get you so excited, you have to tell someone about them. Whether on your desktop, your mobile device, or even your TV.

And that takes a real understanding of what you want/need/love/hate, how you’re using our products, and what you find simple, intuitive, easy and fun. Who wants innovation for innovation’s sake if it doesn’t make your life easier, more efficient, more productive? So expect us to hear you better and take better care of you.”

Time will tell if Yahoo! can channel these noble intentions of integration into actually being able to serve its customers' needs. But they've taken the first step in realizing that not being customer focused is, for them, no longer an option. For us who live and breathe IMC every day, this will be a company to watch.

Or, as Bartz says, “Look for this company’s brand to kick ass again.”

-- Colleen Maley

Tropicana Needs Some Vitamin IMC

There's been a backsplash in the orange juice world. Today NPR and the New York Times reported on the consumer outrage against the new packaging for Tropicana. It appears that Tropicana overlooked the strong emotional connection their core consumers (those who are passionate about and loyal to the brand) had to the original packaging. 

As marketers, we think the re-

design brings a fresh, modern look to the packaging. As consumers, we understand the backlash because in this economy, consumers are seeking the comfort of their favorite brands. When times are uncertain, consumers look for stability and familiarity, not radical changes. 

As IMC students, we understand the necessity of consumer-centricity when developing brand strategy. Brandweek's report of the survey Being Consumer-Centric: A Retailer and Manufacturer Update says that "most retailers (75 percent) and consumer products manufacturers (58 percent) rank consumer centricity as a top-three success factor." The report also says that "the limited availability of team resources is the largest impediment to consumer-centric success for both retailers (37 percent) and manufacturers (43 percent)." To solve the problem of limited resources, retailers and manufactures need to turn to integrated marketing communications experts in order to develop effective campaigns and maximize ROI.

Clearly Tropicana is consumer-centric because they re-desinged the packaging based on consumer research, and are now swtiching back to the original design based on consumer feedback. In Tropicana's case, it appears the issue arose from not putting enough weight on the opinions of its most passionate consumers. Even though they represent a small fraction of their consumer base, Tropicana understood the importance of keeping them happy because these are the people who will be talking about the brand the most. Tropicana can teach marketers a lesson on the importance of understanding how your consumers feel about your products. Marketers need to monitor what is being said about their brand while also bringing their core consumers into the conversation to develop effective campaigns.

Give us your fresh squeezed thoughts on this issue by taking our poll and leaving your comments below. 

--Marina Molenda and Stacy Cohen

UPDATE: Tropicana received a second hit from its rebranding blunder. Sales from January to February dropped 20%. Read more details at AdAge.

Wonderful World of Widgets

Widgets. No, we're not talking about those fictional products that you use to read about in story problems for math class. We're talking about those little applications that countdown to your wedding, add a cyber pet to your blog, or help you find a restaurant on your iPhone.

Many widgets are created by developers as a hobby, however, widgets are now being created by marketers and nonprofits as a way to share information about their organizations. When implemented properly, widgets can be a great tool because they allow for the benefits of word of mouth. If the message or product featured in the widget is something that people are passionate about, they will want to talk about it. A widget is like a digital bumper sticker that allows the audience to show their support by sticking it on their Web site, blog, Facebook page, etc with the added benefit of being a convenient and interesting way to share the message (and it won't ruin your car!).

One example is the Deadly in Pink widget from the Campaign for Tobacco-Free Kids. Advertising from tobacco companies is a topic many people are passionate about and the widget is a way to show their stance on the issue, spread the word, and obtain additional information. 

Just think, maybe in the future "My kid is an honor roll student" bumper stickers will be replaced by widgets displayed on proud parent's blogs and, of course, shared with all their family and friends. 

Ready to test out some widgets or create your own? Check out these sites, and let us know what you think: Zembly,iWidgets, Sprout, Widgetbox

--Stacy Cohen and Marina Molenda

Don't Be A Patsy

I was reading Sunday’s edition of the New York Times when I came across the following ad:


The first line reads, “You may have heard about Patsy and her anti-drug campaign. Her homemade videos posted on various popular websites seem to be gaining quite a following.” The ad goes on to say that although Patsy might have good intentions, parents should seek out more thorough and tested advice through the Partnership for a Drug-Free America’s Web site.
Further investigation revealed a multitude of Pasty’s videos on sites such as YouTube and hundreds of personal blogs. The videos show Patsy, a seemingly typical suburban mom, employing extremely atypical methods of testing her children for drug use: frisking her children, using drug sniffing dogs and taking all labels off pill bottles in the medicine cabinet to prevent prescription drug abuse.

While the original New York Times ad paints Patsy as a renegade video blogger who is disseminating bad advice to keep kids off drugs, the videos are actually created by the Partnership for a Drug-Free America. All videos end with the line, “Don’t be a Patsy” and a link to the Partnership’s Web site, where parents can find advice on preventing youth drug use.

The most interesting element about the Partnership’s campaign is its deliberate creation of this conflict as a platform to engage consumer interest. The last line of the Times ad reads, “And to Patsy herself, we would like to say one thing: maybe it’s time to put down the video camera.” By writing about a “renegade” blogger, the Partnership is acknowledging the blogosphere’s influence, but also using this influence as a strategy to forward its own agenda.

Check out some of Patsy’s videos and let us know what you think.

--Guest Contributor: Matt McLeod, IMC Graduate Student

Twestival: Meet and Tweet For a Cause

Last night communities of Tweeters met in over 175 cities around the world to raise money and awareness for charity:water, an innovative non-profit dedicated to providing clean water to developing communities in desperate need. What started as a small gathering to benefit a local charity in London last year has evolved into a global fund raising event that is 100% volunteer organized. Early reports are predicting $1million was raised. Vitamin IMC attended the Chicago Twestival at Catalyst Ranch, a cool and funky converted loft that oozed creativity from every corner. 

Meeting other twitter users face to face was a great opportunity to network, share ideas and discuss the endless capabilities of Twitter. We'll explore these capabilities ourselves and how Twitter can be used as a marketing tool in an upcoming post. 

Referred to as the Live Aid of the tech world , Twestival's success highlights the power of social media. Not only does it allow you to share and connect with other users, but it can also be used to mobilize its users to effect social change. Social media is an important aspect of developing an IMC strategy, and as shown by Twestival, when used properly can yield great returns. We expect to see more events like Twestival in the future as the true value of social media is realized by more people.

So tell us, did you attend Twestival? What do you think about the power of social media?

--Stacy Cohen

If I Made a Commercial for Trader Joe's

A fan of the niche grocery chain Trader Joe's surreptitiously filmed the following "commercial" for the store:



I find this video fascinating. Not only does it show the control that consumers wield over brands, but it portrays Trader Joe's "flaws" in a honest yet affectionate manner, in a way that the company likely never would.

When I posted the link on my personal blog, a friend of mine -- and daily TJ's customer -- wrote me a lengthy email about how much she loved this "ad":

All of my favorite things are always GONE, never to be seen again. Oh how I miss you, "Middle East Feast" and that turkey rollup sandwich, whose clever name now escapes me.

For niche brands like Trader Joe's, customers love them, warts and all, and this video playfully pokes fun at everyone involved.

I haven't read an official response to the ad from TJ's, although I noticed that the Trader Joe's Twitter account encourages watching the video by linking to it directly. Their implicit endorsement and 53,000+ views of the video make this a highly intriguing "campaign."

Now if only we could get a Trader Joe's in Evanston...

-- Colleen Maley

Breakfast of Champions: Beer vs Cereal

With commoditized products how does a marketer develop a message that creates a sustainable relationship and a competitive advantage? The answer lies in a hot topic we've discussed this quarter: developing an authentic message that resonates with core customers. Authenticity isn't a new concept, but is gaining attention and importance in marketing. Joseph Pine from Ted.com explains it like this: "Authenticity is becoming the new consumer sensibility. The buying criteria for consumers to decide who they're going to buy from."

To illustrate this, let's see beer and cereal go head-to-head. What do these challengers have in common besides being the 'breakfast of champions?' Both face the challenge of differentiating themselves in very crowded markets. In the fight for consumer attention and loyalty, who will win the authenticity title?

Budweiser has connected with consumers through several knock-out (KO) campaigns such as the Budweiser Frogs and "Waasuup!" Its current campaign for Bud Light attempts to use a single word, Drinkability, to represent the essence of the brand and differentiate it from other light beer. Do consumers, especially Bud's core consumers, feel the same way? A one-word slogan can be a powerful move if it is the essence of your brand and your core competency. However, if it's something that can be copied by competitors or is a feature inherent in all products in your category, then the power is diluted. Compounding the problem is an unclear message that leaves consumers confused instead of connected. Saying your beverage has Drinkability is like saying this brand of cars is driveable or that brand of pizza is edible. Additionally, while Drinkability is featured prominently on the landing page for Budlight.com, once inside the site there is an array of different messages. In terms of authenticity, Pine would probably call Bud's new campaign a "real fake."

Kellogg's new campaign for Rice Krispies uses real families and shows how the product is part of everyday moments and childhood memories. While a commercial is a created/simulated experience, the authenticity comes from consumers internalizing the message by relating to the experience and drawing on their own personal memories with Rice Krispies. RiceKrispies.com continues to reinforce the message. Visitors can read about memories from other people and share their own and download recipes that can be used to create new memories. Additionally, the site has games to play with children and tips on cooking with children. The campaign hits hard with a clear, authentic, and consistent message reinforced by a Web site that provides relevant, value-add features that help consumers connect with and experience the brand. KO!

And the authenticity title goes to: cereal!

--Marina Molenda

Want Word of Mouth? Bring the LUV

This weekend I flew to Washington, D.C. for a friend’s wedding. Since I hate missing out on any fun, especially with this group of gals, I booked the last Southwest Airlines flight leaving Dulles on Super Bowl Sunday. Despite the fun, I found myself getting to the airport earlier than expected. While Dulles is a pretty nice airport, the idea of watching the Arizona Cardinals take on the Pittsburgh Steelers from a barstool with my suitcase at my feet was not ideal.

So I walked to the ticket counter and asked if I could fly standby on an earlier flight. Like many airlines, Southwest charges a fee for this type of change on a full-restricted ticket*. (What can I say? I’m a poor grad school student.) Unfortunately the $112 change fee does not really work for my student loan budget. It was looking like I was on my way to watching the big game with fellow travelers at Harry’s Tap Room on Concourse B.

That is until the ticketing agent played around on the computer for a couple of minutes and proudly displayed what I would consider the equivalent of Willy Wonka’s Golden Ticket – a boarding pass for the next flight. According to this agent (whose name I didn’t get, but whose face I will always remember) the price for an earlier departure was not $112, but for me to tell all of my friends and family about Southwest Airlines. Fortunately for Southwest, look who’s a blogger!

For full disclosure, I’ve been a member of their frequent flyer program, Rapid Rewards, since 1999. So as a knowledgeable customer, I am honestly not surprised that Southwest would come through in this way. Heck, I get birthday cards from them every year! But as a student of integrated marketing communications I believe that Southwest really considers itself customer-centric not only because it structures its business and operating procedures on its core customers’ wants and needs, but also because it understands that when its customers receive good service they look forward to sharing it with others.

According to the Word of Mouth Marketing Association, word of mouth marketing is the act of consumers providing information to other consumers. The association says “good WOMM strategies involve finding ways to support satisfied customers and making it easier for them to talk to their friends.” In this age of social networking, blogs and free information widely dispersed on the internet, it is easy for customers to share information.

But, companies also need to remember that ANY touch point with the customer is a possible WOMM tool, not just Facebook applications and messages posted on Twitter. For Southwest it is also the personal relationships forged between the employee and customer that make up the integrated marketing communications mix. It’s the great customer service at the ticketing counter and the singing flight attendants that become part of the stories travelers tell their loved ones when describing their trips.

For me, Southwest will always be the first place I go to when booking a flight. All they need to do to get more of my business is to start flying in and out of Newark Liberty International Airport. It’s so much closer for my Jersey-based parents than LaGuardia or Islip.

--Lauren McCabe


*Author’s Note: Although Southwest’s advertising campaign touts its “No-Hidden Fees Zone” they clearly state on their materials that fees may be incurred on restricted tickets. (Just want to make sure I’m giving kudos on the full disclosure.)

AmEx's Data Mining Techniques Spook Its Customers

One distinguishing feature of IMC is its strong emphasis on data analytics. Now more than ever, quantitative insight and analytical skills are essential tools for gleaning meaningful consumer insights from the overwhelming surfeit of consumer data that most large corporations possess.

As both a marketer and a consumer, I find these treasure troves of data both exciting and somewhat terrifying. Last week at Davos, Richard Edelman bemoaned the general erosion of trust in corporate entities, and to be sure, this is a critical issue for IMC as well. Analytical skills are important, but being able to build relationships with consumers based on mutual trust is what ultimately builds shareholder value over the long term.

In this volatile economic climate, then, consider this New York Times article from January 30 that revealed American Express’ targeted rate increases for cardholders who used their Amex cards at specific establishments:

The question, then, is how much of the data they can use before spooking their customers. Kevin D. Johnson, a 29-year-old Atlanta resident who runs a marketing and communications firm, received a letter from American Express last October saying that his credit limit was being lowered. One reason was that other customers who had used their cards at places where he had shopped were late in paying their bills.

Read the full article at the New York Times.

UPDATE: After Good Morning America picked up this story, American Express clearly felt the sting of the bad P.R. of this data mining technique, and announced that it would stop the practice.

Does this practice take regression too far? Is there a line between “choosing your best customers” and outright discrimination? Would this policy incite you to choose a different credit card company?

We'll keep an eye out for future stories about issues in marketing ethics. And send us your suggestions!

-- Colleen Maley