The IMC link to entrepreneurship around the globe

By Susan Monahan

Every year, many students relocate from China to Evanston to attend the Medill IMC graduate program. They are in a unique position to apply their foundations in this emerging market culture to the IMC approach. One student has already shared this perspective with the world and received much-deserved notoriety.

Xiaojun Ni, IMC class of 2010, was honored at the 40^th Annual St. Gallen Symposium in Switzerland this May. It is publicized as “the world’s leading platform for dialogue on key issues in management, the entrepreneurial environment and the interfaces between business, politics and civil society.” Xiaojun was recognized for a white paper she submitted for the event.

VIMC: Xiaojun, please tell us about the white paper that gained you access to the stage.

It’s titled “Free Entrepreneurship in China.” I cast my attention to small and medium enterprises (SMEs) in China, who epitomize entrepreneurship and are the pillar of the Chinese economy. But their development is hindered by lack of capital, rigid regulation, an ambiguous legal system and cultural and social stereotypes. So I propose to facilitate the growth of SMEs through financial, political and managerial measures.

VIMC: What inspired you to write about entrepreneurship in China?

Entrepreneurship is vital to the Chinese economy. SMEs in China (most of which are in the private sector) compose 99% all the businesses. They contribute 60% of the GDP, absorb 75% of the suburban workforce and 90% of the migrant rural workers, and create 70% of the new jobs each year. It's like Chris Anderson's "Long Tail" theory: the vast sea of small beats the large. However, entrepreneurs face challenges in China, and I want to explore solutions to help them.

VIMC: Can you share with us some solutions you offer?

Yes! In short, I talked about introducing multiple and flexible financial channels, reforming policies and removing legal barriers, managing with innovation, shifting to high value-added industries, enhancing education and technology, and provoking a pro-entrepreneurship culture in society.

VIMC: What knowledge from your classes at IMC did you apply to your analysis?

When I made suggestions on "managing with innovation," I used examples of IMC in practice. One involved a Chinese girl, who posts make-up tutorial videos on Tudou.com (like China's YouTube). She became very popular. Gradually she discovered women had trouble choosing make-up brushes – they were either too expensive or low quality. So she found a manufacturer in Guangdong and launched her own brand of brushes. This is a typical "outside-in“ approach - discovering market opportunities and catering to unmet needs of consumers.

VIMC: You were honored at a reception with students of economics and business from around the globe. How did their marketing philosophies differ from the core principles of IMC?

Although the symposium focused on entrepreneurship, new companies, and brilliant ideas -- they revolve around a unifying theme: they are customer-focused and data-driven!

Christian von Koenigsegg, founder of Swedish car brand Koenigsegg, shared with me that he focuses on a niche market and only makes less than 20 cars a year. Each car is tailored to the customer's specific requirements.

Rakuten, a Japanese e-commerce company (similar to Ebay), flourished with a sellers- to-buyers model, but took its business a step beyond by analyzing the Rakuten “super database:" segmenting users and cross-selling Rakuten e-banking, mobile, etc. It has the largest market share in Japan across all these sectors.

No matter the size or industry, companies are always finding a way to understand consumers first and then act, if it's a one-on-one relationship (that's easier) or mass market (that requires statistical and computing science).

VIMC: what are your plans for the future?

I’m open to going anywhere, and to positions other than (traditional) marketing, to gain broader business exposure. In the future, I might start my own business after being inspired by the forum.

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Susan Monahan is a blogger at Vitamin IMC and a student in the Integrated Marketing Communications graduate program at Northwestern University's Medill School. She can be reached at SusanMonahan2010@u.northwestern.edu.

How honest is Chicago? Honest Tea uses marketing campaign to find out

By Susan Monahan

More than a decade ago, Honest Tea was a pioneer for organic bottled teas with no artificial sweeteners. It was a small player in a new category. Back then, it was easy to stay true to its self-proclaimed “quirky independent streak.”

Today, Honest Tea has plenty of competition. Its differentiators, organic ingredients, aren't so different anymore. And, it’s under pressure to appeal to a larger consumer base, as Coca-Cola recently acquired a stake in Honest Tea.

Last week, at locations like the Chicago Board of Trade, Honest Tea left unmanned carts of its drinks with signs requesting that people drop $1 into a jar in exchange for a bottle -- “on the honor code.” Chicago-area news media are buzzing about the results. Only 78% of the takers paid up.

NBC Chicago.com

This twist on sampling began in New York City last April, at the height of the political crackdown on financial corporations. Ad agency SS+K led the Honesty Store street campaign with signs reading, “Yes Mr. President, let’s bring Honest Tea to Wall Street.” In that city, 89% of passers-by paid for their bottles. Bloggers and the social media landscape generated countless more impressions from the debates it sparked. An integrated campaign was born from the ground up.

But, how are these one-off tests working as a customer acquisition strategy?

Where many sampling campaigns rely on sponsorship of sporting events or concerts that draw the product’s target consumers, Honest Tea worked alone to capitalize on a mass-culture opportunity. This allowed potential customers to first taste the tea while connecting with its unique brand DNA.

It’s more than word play. Moving beyond the common pure ingredients, Honest Tea’s message seems to be about trust. Drinkers may carry the bottle with a sense of integrity. (Especially if they actually paid for it!) This creates an experience more powerful than a TV ad or a testimonial.

The street effort may be sublime, but have Honest Tea in-store sales gone up?

“We’re still waiting on results,” said Alex Mailman at SS+K. “But safe to say that the Honest Store has stirred a real conversation around the country, about honest behavior and about each city's self image. And despite some disappointment in a couple of cities about not being first, customers appreciate the trust that Honest Tea has shown in them.”

What do you think about the impact of sampling events and the possibility of mass appeal?

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Susan Monahan is a blogger at Vitamin IMC and a student in the Masters in Integrated Marketing Communications at Northwestern University's Medill School. She regrets that the Honesty Store never made it up to Northwestern. Susan can be reached at SusanMonahan2010@u.northwestern.edu

MillerCoors experimenting with technology to promote beer

By Susan Monahan

It’s the perfect Saturday afternoon, and you’ve stopped to pick up some beer on your way to a barbecue. There in the store, you decide you’ll show up with something different, fresh and cool.

But what to choose?

MillerCoors hopes you’ll grab Colorado Native, a new craft-style beer that it’s trying to break through the clutter with. Which you might, if: you’d tried it previously; taken a picture of the SnapTag on the bottle with your camera phone; answered a few questions over a text message survey; then received local, brew-related tips and messages from Colorado Native.

“The SnapTag technology allows us to have thousands of individual, one-on-one conversations with our consumers and provide them with information that’s relevant to them and share that information with other natives,” said Glenn Knippenberg, president of Colorado Native’s brewing company, AC Golden. “Ultimately, they’ll define the brand for us.”

MillerCoors is testing the new beer only in Colorado, for now. It could capitalize on the attraction to trying new products. As Americans’ palates have developed, microbrews’ sales have increased. Even the macrobreweries like MillerCoors have grass-roots hits, such as Blue Moon. After a slow launch in 1995, Blue Moon sales recently picked up, rising 14% in 2009. Attribute that to the power of word-of-mouth for the self-proclaimed “artfully crafted” beer.

But, can MillerCoors quicken the catching-on of Colorado Native with SnapTags?

Traditionally, marketing efforts for craft brews have taken off at events like beer tasting festivals or in print media recommendations, such as Maxim’s Top Beers list.

Social marketing begs a time investment from consumers. However, consumers benefit from messages on topics they like, if they’re willing to join in conversation with the brand. MillerCoors is hoping to stimulate “discovery” of Colorado Native instead of using the heavy-handed, commercial approach.

Would you take a picture of Colorado Native’s SnapTag before your first sip?

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Susan Monahan is a graduate student in Integrated Marketing Communications at Northwestern and a VitaminIMC blogger. Though Colorado is great, she still thinks Portland, Oregon, is the #1 brewing town. Contact her at susanmonahan2010@u.northwestern.edu.

Mobilizing to donate after the Haiti quake

Text “Haiti” to 90999 to Donate $10 to The Red Cross. This message proliferated the internet and television within hours of the Jan. 12 catastrophic earthquake in Haiti.

Since then The Red Cross’ text-to-donate campaign collected a staggering $21 million, dwarfing the $4 million total of all charitable ‘text’ drives in 2009. Most notable was the first 48 hours – people gave The Red Cross more money faster than in the wake of Hurricane Katrina, the Asian tsunami, or any disaster to date.

The operation is backed by Mobile Accord’s mGive Foundation, the first company to offer mobile donation services to non-profit organizations back in 2005. Donors’ pledges are added to their cell phone billing statements.

From a cause marketing standpoint, $10 increments paired with mobile accessibility is a winning combination. Simply cutting out the need for Americans to give an intermediary their credit card information enabled a mass reaction.

The text-to-donate message was not seamless. False word spread on Twitter that AT&T was not participating in the campaign as customers slammed the carrier for preventing them from helping victims. But AT&T spokesman Steven Schwadron quickly clarified that was a rumor: it was on board with The Red Cross and messaging rates would not apply to donation texts. AT&T customers contributed half of the first $9 million collected via text message. However, The Wall Street Journal did its part to warn the public to do research before texting away money, citing up to 90 days’ lag time before the phone company pays the charity.

Natural disasters bring together great minds and able bodies to help those affected. The difference with today’s tragedy in Haiti is newfound strength in mobile technology.

Charitable reaction to the Haiti quake glimpsed the symbiotic IMC process. Americans immediately saw footage of earthquake victims on television, online and in print news, and were driven to help however they could.

Will this tragedy instill confidence on a greater level for mobile charity? For mobile commerce?

We can’t deny its power. Companies are truly mobilizing for the future; take Apple’s recent purchase of mobile ad company Quattro Wireless. The technology exists and millions just adopted it.

Today we move forward, to repair and to improve.

--Susan Monahan

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Susan Monahan is a Blogger at Vitamin IMC and a graduate student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. She was deeply moved by the global community's quick response to the victims of the earthquake in Haiti. Susan can be reached at susanmonahan2010@u.northwestern.edu.

Cable Networks Vying for Shelf Space

Search For the Amazon Headshrinkers? When Crocs Ate Dinosaurs?

The National Geographic Channel really worked it to get your attention with the Expedition Week line-up, which aired November 15-21, its answer to Discovery Channel’s annual hit, Shark Week. Now calling itself simply Nat Geo, the network underwent a major makeover. Last month, it debuted a new call-to-action tagline: “live curious.”

Targeting 25-to-54-year-olds, Nat Geo has been able to grow ratings for the past six years. With countless more tune-in choices to compete with every day, how does the network do it?

The answer can be found in the snack food aisle. Steve Schiffman, the National Geographic Channel’s General Manager and EVP, recently spoke at the Cable Mavericks Lecture Series at Northwestern. He drew parallels between consumer packaged goods marketing and entertainment marketing.

For instance, Nat Geo benefited from the cross-promotion of two seasoned labels – its #1 show The Dog Whisperer and PETCO, the retailer of show host Cesar Millan’s products.

In true brand-follower form, Nat Geo imitates Discovery, hence “reactivating” its image to keep up. But Nat Geo must be careful not to discard its historic pedigree, its true differentiator.

Today’s cable distribution model, much like a supermarket, allows a multitude of networks the chance to draw in consumers. The downside is both carry the threat of the private label. What’s the Safeway Select of cable? Look to the potential merger of Comcast and NBC Universal for a whole new type of station with a more efficient subscription-to-advertising revenue model.

What can Nat Geo learn from CPGs in this case to maintain its market share? Better, more nourishing ingredients. The Discovery Channel has infused its brand with its show hosts, characters who viewers can’t get enough of.

How will Nat Geo combat this threat?

--Susan Monahan