Brown Delivers Through Social Media But Forgets to Ship Directions

Over the years, UPS transformed itself from a shipping service provider to a business solutions provider that offers shipping — adding value for customers. The transformation began with the “What can brown do for you?” commercials followed by the famous Whiteboard campaign. UPS continues to deliver value in its online engagement strategy—something many companies forget to do.

UPS’s strategy is to provide content that is relevant and useful to its B2B customers. At the center is a branded Popurls site. Here UPS is serving as a content curator for business news and tips. UPS also created a Populr Brown Edition YouTube channel. The channel features a series of short informational videos on business topics such as social networking and communication. Industry notables from Mashable, TechDirt, Small Business Trends, and VentureBeat provide the video lessons. Additionally, consumers can receive news stories by following @popurlsbrown on Twitter.

So, what’s the problem? Well, have you watched one of the videos, heard about the brown Popurl site, or followed @popurlsbrown? UPS is an international brand, yet the YouTube channel has just over 600 views and @popurlsbrown has 69 followers. While UPS is running banner ads on sites like VentureBeat, neither UPS.com nor the Whiteboard microsite have links to the popurl site, YouTube channel, or Twitter account. Additionally, the YouTube channel doesn’t link to the Twitter account or UPS.com. UPS is delivering value for its B2B customers by providing useful information in an accessible and easily digestible format. However, the full potential will not be realized unless UPS offers directions to and from these sites and does a better job integrating these elements into its overall marketing efforts.

-- Marina Molenda

From Neanderthals to IMC

There's a tectonic shift happening in the marketing world. Next week, Forrester will release a report that recommends doing away with "brand manager" and changing the title to "brand advocate". This recommendation signifies a larger shift in acceptance of the changes the digital era has brought as we see more and more companies embracing the customer-centric IMC approach. This Ad Age article is a must read for any IMC thinker and has some great insights by Denuo CEO Rishad Tobaccowala, who shared similar remarks to us last week during the Medill Marketing Conference. Let us know your thoughts below. What will branding mean in the next few years? How do you see the digital era changing the marketing world?

--Stacy Cohen

MISSING: Brand Identity. Reward If Found.

Can a brand declare victory once its name is used in everyday vocabulary? Not in today's world. With consumers more price conscious and private labels creeping in to grab market share, brands need to work extra hard to communicate value to consumers.

Kleenex is well aware of this and is running banner ads to help protect "brand identity theft". We're all guilty of this crime. Everyone uses facial tissues, but not necessarily of the Kleenex brand. Most people will still use the word Kleenex when referring to facial tissues when Kleenex itself is not benefiting at all. This is also true with Band-Aid, Q-Tip, Xerox and Jello to name a few.

Marketers cannot forget about the equity in a brand name and need to work hard to solidify the brand's positioning. This is a key linkage to building strong relationships with consumers and needs to represent what the brand stands for. Keeping the brand relevant for today's consumers is also important to keep in mind.

Balancing relevancy and equity is not always an easy task. Take Radio Shack for example. In trying to modernize a dwindling company, they re-branded themselves as "The Shack" and threw most of their equity out the window. Yes, the "radio" part of the name is not really relevant today, but that's how consumers know of the brand. "The Shack" immediately brings to mind cheap images and a basketball player -- nothing remotely related to electronics. Radio Shack should have capitalized on the equity built into the origins of its name: “The phrase originally referred to the cabins aboard ships where the Marconi wireless was kept, and it had a built-in nostalgia for millions of servicemen after World War II, who would have known field communications centers as "radio shacks".

And what about Gatorade's new name,G? Why change something that's not broken? Gatorade's popularity and widespread consumption has given it vocabulary elite status like Kleenex. The name is derived from its origins - a quenching beverage for University of Florida athletes (Gators). By shortening it to G, the brand loses all the equity it had built up over the years.

Marketers need to make sure to leverage the equity of their brands, or they may end up on a MISSING poster themselves.

-- Stacy Cohen

5 Costs of Social Media to Consider

Are you a marketer considering trying social media to connect with customers and stretch your marketing budget? Are you intrigued by the low entry and exit costs and the potential to become a viral sensation or social media darling? Before you take the social media plunge there are 5 costs you should be aware of:

Design Costs. From your blog to Facebook to Twitter, your social media presence should be consistent with your brand. You can save money by repurposing current assets. However, you’ll still need resources for reformatting and/or creating new artwork, uploading art, and programming and designing pages.

Paid Model. Just because something is free today doesn’t mean it will be tomorrow. In March of 2009, Twitter co-founders announced they will probably move to a paid model and just need to figure out when. So if you’ve gained a big following on a free service, what is your plan if the service moves to a paid model? Find some room in the budget and pay up? Dump your customers? Try to migrate them to another free service? If you’re investing in a tool, be sure to consider what you’d do if it moves to a pay model.

Maintenance Costs. So you’ve got your account set up, your page is looking fabulous, and you’ve added some content. Great! Now you need to continuously engage with customers by posting content, replying to comments and questions, and monitoring chatter about your brand. The setup costs for social media are relatively low compared to other forms of advertising, but the high commitment level is unique to the medium. Do you have a budget for the hours needed to maintain your social media presence? Do you have someone in your organization with the time and skills to handle this responsibility or do you need to hire someone? Will you monitor chatter yourself, or pay for a service such as Sysomos or Radian6.

Costs of Doing it Wrong. Diving into social media and then abandoning it is a waste of time and money. But even worse is making a social media blunder that could damage your brand.

Costs of Not Doing it at All. You’ve heard it once, you’ve heard it twice, but in case you forgot: Your customers are out there talking about you already. They are in control and are increasingly expecting engagement and quick responses from companies they do business with. Consider some the consequences of not engaging with customers and listening to what they are saying: missed selling opportunities, lost consumer insights, angry or disengaged customers, misinformation spread about your brand, and fleeing customers. Recently Delta Airlines learned the hard way by not having a good strategy in place.

--Marina Molenda

Doritos and Denny’s Take on Rock

Longtime munchies staple Doritos recently unveiled its new “Late Night” products that include the flavors Tacos at Midnight and Last Call Jalepeno Popper. The names, accompanied by a commercial, evoke a new, edgy vibe—a definite departure from Doritos’ picnic-friendly competitors. The transformation doesn’t stop there: the brand is teaming up with artists that include blink-182 and Big Boi, who are part of the line up for the Doritos Late Night virtual concert. To access the concert, fans must point a special symbol (located on the back of all Doritos Late Night bags) at their web cam. When approved, fans can personalize their experience by holding, moving and shaking the bag.

This isn’t the first time music has made an appearance in nighttime staples. Last year Denny’s, recognizing its role as a late-night hangout, created the “Rockstar Menu,” as part of the Denny’s Allnighter program. Menu selections are available from 10 pm to 5 am and are created by bands, including Joel and Benji Madden of Good Charlotte (“Band of Burritos”) and Rascal Flatts (“Unstoppable Breakfast”). The Allnighter program is topped off by Adopt-a-Band, which offers free meals to artists on the rise and invites bands to use Denny’s as a meet-and-greet location for artists and their fans post concert.

Both Doritos and Denny’s recognize the value of their younger, hipper audiences, but which one is doing it better? Doritos certainly has the advantage of technology, a powerful lure for Generation Y. Its virtual concert provides incentives for snackers to log on to Doritos’ web site, but the relative newness of the campaign—it was unveiled this past April—means that results are still pending. Doritos may have the upper hand on the web, but Denny’s has the advantage of being located on the physical plane. By providing young hipsters with a late night hang out s that features rock-themed dishes, Denny’s isn’t just creating a campaign; it’s creating a persona.

Denny’s understanding of their consumers is allowing them to forge a real connection, one that Doritos is trying to mimic. But will this virtual reality drive sales in the real world? Their technology may be cutting-edge (the US Postal Service is using it to show consumers what size box they’ll need), but will rock concerts be valuable enough to earn the loyalty of consumers? Or will this virtual reality provide only temporary gains in sales until the “hipness” factor recedes?

--Guest Contributor: Megan Baker, Medill Undergraduate Student

Sharpie Hits the Mark

Who hasn’t used a Sharpie marker? Whether labeling something in black permanent marker or decorating something special in a rainbow of colors, Sharpie is everything from super useful to wonderfully creative.

The consumer marketing strategy behind Sharpie’s new interactive website, www.SharpieUncapped.com, takes the use of Sharpie markers to a whole new level.

From showcasing creativity on office nameplates to Surfboards to even a BMW, consumer engagement is taken to the next level with a celebration of the product and brand. With links to content on Flickr and YouTube, a Facebook Fanpage, @SharpieSusan on Twitter, and a corporate Blog, there are plenty of ways for consumers to showcase their creations and be reminded just how awesome Sharpies are.

Have you seen the new Stainless Steel Permanent Marker? Authors have been using them at book signings and celebrities have been using them to sign autographs. Who knew you could show some bling with a Sharpie for the low price of 5.99?

Consumer-driven marketing is always going to win. Sharpie has taken a seemingly simple, unglamorous product and turned the perception around to create an innovative, creative product line. It’s a brand that people are not just talking about; Sharpie enthusiasts are now engaged in a community revolving around creativity, inspiration and innovation.

--Brandi Heinz

Branding Blunders: Is Pepsi Maxed Out?

The Pepsi family is striking out left and right with its marketing efforts this year. From the widely panned logo redesign and "Refresh Everything" campaign that doesn't make a whole lot of sense, comes a repositioning of the Diet Pepsi Max product. During the 2008 Superbowl, the product was introduced with a call to "Wake Up People!" During the 2009 Superbowl, the new repositioning that targets "manly men" ages 25-39 was introduced with the "I'm Good" commercial.

What makes the product different from Diet Pepsi is added ginseng and more caffeine. And according to the product description on Pepsi's website: It’s a crisp, refreshingly delicious zero-calorie cola that helps wake up your mind and body! And now, the product comes in black packaging that looks like a carbon copy of Coke Zero. The Pepsi Max team is popping up at summer festivals, nightclubs, and car shows with the "Fantasy World" trailer, hoping that vampy women dancing in a see through cage, free poker games, and free samples will increase sales.

*taken at Chicago Summerfest June 20, 2009

There is no online component to the campaign (which is surprising given the target consumers' active engagement with social media), and the link to www.dietpepsimax.com just takes you to the main Refresh Everything page that isn't even fully functioning!

This new effort is confusing and disjointed. What really doesn't make sense is why Pepsi decided to change its targeting a year later--why take women out of the equation? Can they not handle they extra oomph in Pepsi Max? Will they not respond to the black package? In this day and age, are men really that afraid of being caught drinking a "diet" drink?

--Stacy Cohen

From the freezer to Facebook: Klondike’s new marketing strategy

Last week, Facebook developers unveiled their new Application Directory--the latest of a string of new organizational developments. The directory centralizes all of Facebook’s “apps,” noting those that have been approved by the site. This means consumers can expect a more user-friendly Facebook, but can the upgrade also be marketer-friendly? 

Unilever should hope so. The company’s Klondike brand recently introduced a new line of ice cream bars that boast 25 percent more coating, and according to a recent Brand Week article, interactive media will play a large role in marketing the product. Current plans include a Facebook app (to be released next month) that allows users to test the thickness of their friends’ “shells” through tough questions. 

The use of social networking sites like Facebook isn’t new to the marketing world. Although success has yet to be proven, Facebook’s step toward organization looks promising for brands like Klondike, which before risked being lost among a slew of other applications. Now, with new categories that include a Business & Finance section, Facebook seems to be opening itself to more marketing possibilities. In addition to the “fan page,” many brands may pursue applications as a new form of interactive marketing. 

The centralization of Facebook’s apps could allow for a more organized marketing platform, but time will only tell whether Klondike’s campaign--which also includes a new, interactive web site--will benefit the sales of its new line. Unilever’s reliance on interactive media and social networking sites makes consumers responsible for marketing the brand through their interactions with each other. This multi-level communication may prove helpful for Klondike’s sales--word of mouth is a powerful tool indeed--but it may mean a slow start for the ice cream brand. 

How do you think the new Application Directory will affect brands like Klondike? Is this new format useful for businesses, or will the Facebook marketing well run dry? 

--Guest Contributor: Megan Baker, Medill Undergraduate Student

Coffee Wars Development: Battle of the Blitz

McDonald's launched a marketing blitz today aimed at taking market share away from Starbucks through its line of McCafe drinks. The multi-channel campaign features TV and print spots with online components of a microsite and Twitter feed.  

Starbucks prepared for this battle by rolling out full page ads in this past Sunday's New York Times. The ads aim to reinforce the premium quality of Starbucks coffee and move consumer perceptions away from coffee as a commodity.

Price is McDonald's weapon which will be hard for Starbucks to overcome. They can really only hope that haven't permanently damaged their brand by introducing Via instant coffee in weak attempt to get down to their competitors levels - earnings tumbled 77% in the fiscal second quarter. This move might have proven to be its Achilles heel - McDonald's is entering the battle just as its opponent is slightly wounded.

Do you think the McBlitz will work? Will McDonald's emerge as the winner of this battle? Is Starbucks' brand tainted too much to ever regain market dominance?

--Stacy Cohen

Mickey Mouse Adds English Teacher To His Resume

It appears Mickey Mouse has a new job in China – teaching English to Chinese children in Shanghai at schools owned by Walt Disney Co. The company says the initiative is primarily about teaching language skills to children, not a marketing push or about extending its brand in the worlds’ most populous nation, but what do you think? 

According to a recent Walls Street Journal article, a child enrolled at one of the Disney schools in China will encounter a Mickey Mouse sculpture in the foyer, receive diction lessons with Lilo and Stich, take classes in rooms named after Disney movies, complete exercises introducing Disney books, TV shows and movies, and receive magic tokens as reward gifts that can be exchanged for Disney products which are available at the store on site.  

Given Disney’s current presence in China, which is limited by the Chinese government’s constraints on foreign media; the Disney English schools seem like an innovative way for the company to expand the global reach of its brand while also entering the booming niche industry of English language instruction. From an IMC perspective, clearly Disney discovered a consumer need that the company is fulfilling in a relevant, original and impactful manner. Let’s just hope these kids don’t develop Mickey Mouse or Donald Duck accents!  

So weigh in below - do you think Disney is overstepping the line or being innovative in China?

--Guest Contributor: Divya Chopra, IMC Graduate Student

The Evolution of Marketing

David Armano created this fantastic visual explaining how changing consumption habits have changed the way marketers need to think.The visual nicely sums up the key points of a recent Economist article discussing how the recession will change the way people shop. In this new post-consumer era marketers need to really understand the needs of their customers, a key tenet of the IMC approach.

How do you think the recession will change marketing? What are you thoughts on this visual representation?

-- Stacy Cohen

Enter The Snuggie

Did someone say the economy isn’t doing so well?  Despite non-stop news coverage, it is easy to play pretend and assume the economy is just fine.  To the perpetual optimist, it might seem like an anomaly in an otherwise stable system. A sign appeared recently – an undeniable atom bomb to any marketer who was holding on to naivety.  That sign was no less than the Snuggie – the blanket with sleeves.

When the Snuggie showed up with the above 60 second infomercial on high-rated prime-time programming, jaws dropped.  It was the ultimate sign of an economic crisis in the U.S. In relation to how marketing is all connected, this signified a dramatic change in marketing behavior. IMC seeks to understand how marketing works together and is affected by changes in consumer and market behaviors. The following chain of indicators reflects a nationwide crisis on a very significant level.

Last June during the beginning of the 2008-2009 upfront, everything was business as usual.  Television CPM’s were up – and advertisers were shelling out hefty budgets.  A few media companies were even going so far as to hold back some of their upfront inventory in hopes for even higher scatter prices later in the year.  It was a bold move, but why worry?  By the time the upfront closed in August, advertising budgets for most networks met or exceeded expectations.  It wasn’t long before that decision to hold back inventory came back to bite the media companies in a hard way.  The network’s projections of lofty increases in the scatter marketplace turned to begging.  Couldn’t anyone buy up some of that unsold inventory?  Enter the Snuggie.

What about the rest of the advertisers out there – why aren’t they buying?  In February 2009, P&G decided to take nearly all of their available upfront options, despite promises days earlier that budget cuts would not occur.  This pulled millions from the market and started what MediaWeek would call “The Start of the Stampede.” Combine unsold inventory with increased budget cuts, and you have a very nice buyers market.  Enter the Snuggie.

What is really concerning about the Snuggie on primetime was the fact that it was an infomercial.  Previously, major networks like CBS and FOX would have scoffed at the idea of cheapening their image with QVC-type advertisers.  But considering the issues discussed, beggars can’t be choosers.  Desperation leads to difficult decisions – and desperation doesn’t come from a mild economic downturn.  It implies a full blown crisis at hand, something the Snuggie has helped all marketers come to terms with. 

--Guest Contributor: Jeffrey Mulcock, IMC Graduate Student

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.