MediaPost had an interesting post today about the importance of couponing especially in today’s economy. Digital couponing has risen dramatically in the last 12 months because consumers are more concerned with saving money than they were in recent years.
According to one study that was cited recently in MediaPost and published by ICOM, one out of three consumers report using more coupons than just one year ago. About half of males 18- to 34-years-old reported comparison shopping, with as much as 38% actively searching for coupons.
The big question that surrounds coupons in general, is whether the use of them cannibalizes an existing consumer base by driving them to buy your product at a lower price when they were going to buy it in the first place or whether they attract new consumers to your brand and increase market share.
According to a study from Coupons.com that was published in Q3 2009, online coupons do indeed drive new incremental sales, with as much as 40% of redemptions coming from new or lapsed buyers.
That sounds pretty good, but the other side is 60% are using the coupon when they probably would have bought the product anyway. I don’t think brands can’t sweat that too much though especially with where brand loyalty is at these days. 59% of consumers say will sacrifice brand names for a generic brand. Just think of the 60% as a continuing investment in brand loyalty in a tough economy. Marketers need to continue to follow this trend in regards to their own brand. If the data begins to trend that consumers will not buy a product without a coupon the brand is definitely seen better days.
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Nearly 18 hours after Michael Vick’s agent told a crowd at a sports sponsorship symposium that the ex-con quarterback had a new deal with Nike, the sports apparel behemoth is finally talking.
In a statement, a Nike spokesman said Mr. Vick did not have a Nike contract but would be receiving Nike products as many pro athletes do.
“Nike does not have a contractual relationship with Michael Vick,” the statement said. “We have agreed to supply product to Michael Vick as we do a number of athletes who are not under contract with Nike.”
The spokesman said that Nike has “no further comment beyond the statement at this time.”
So by providing Vick with free apparel every time the camera gets a close-up of Vick consumers will see Vick wearing a Nike logo. In other words: free advertising for Nike. Nike and Vick get to maintain their relationship over the next few years through this “non-agreement,” and when the time is right and the world has mostly forgotten Vick will be under contract pitching Nike again. Just like Kobe Bryant is pitching Nike after a few year hiatus from his Eagle, Colorado hotel escapade.
Through this association can the Nike brand association help redeem the Vick brand? Is the Nike brand that prolific? Will consumers see the Nike logo on Vick and subconsciously say, “if Nike likes Vick he must be a good enough guy.”
The Nike brand does help legitimize the Vick brand. I think it will take a couple more years, and it is still undetermined whether Vick will return to his previous playing glory, but if he does, I do expect to see Vick in Nike commercials. If they are using an accused rapist and cheating husband in their ads, why not a dog abuser too.
You haven’t been able to open a marketing publication lately and not read about how Mommy Bloggers are taking over the internet. Quite frankly, I’ve found this somewhat annoying. Sure women control nearly 85% of all household purchases, they are more likely to make online purchases more often, and their numbers are growing faster than men.
But let’s hear it for the man consumer out there. They are doing more and more of the household shopping lately, still entail a powerful consumer block when it comes to electronics, sporting goods, and health products, and are pioneering some of the online trends that the female consumer is adopting.
Here are some facts to remember before you write-off the men demographic in your next marketing plan:
- Although men make up a minority of the U.S. population, they are responsible for generating most of the income of American consumers. In 2006 men had an aggregate income of $4.8 trillion, or 62% of total personal income.
- Compared to older men, 18- to 34-year-old men are more likely to say they enjoy shopping even when they don’t buy something. They also are more likely to visit a number of stores when they go on a shopping trip and to browse inside stores rather than get what they need and leave. Younger men are also more likely to use the Internet to plan their shopping trips.
- According to Mintel, men tend to have more online social networking profiles than women
- They use and are more receptive to online videos, banner ads, and online content than women.
- According to Packaged Facts data the men’s market is projected to increase from $5.4 trillion in 2004 to $6.7 trillion in 2009. This represents cumulative growth of 24.6%.
- Men tend to be more loyal to brands and look for brands they know compared to women.
Last week, Sony started a three-month campaign with daddy bloggers. It will lend a few of them Sony products, like Blu-ray players and Handycam camcorders. Sony is asking the bloggers to use the products to do projects, like recording conversations with their parents or videotaping a family outing, and write about the experience.
“In general, dads have always gotten the short shrift when it comes to parenting, but in recent times, it’s been different,” said Jeffrey Sass, who is a single parent of a daughter and two sons, ages 17 to 21, and blogs at Dad-O-Matic. Advertisers have focused on mommy bloggers “because everyone believes the mother makes many of the buying decisions in the home, but in product categories like consumer electronics, it makes sense to go after dads,” he said.
For more than a year, the U.S. consumer hit by the recession has changed the way he or she shops: a focus on value for money has led to some dramatic shifts in behavior, which I think will last far beyond the current economic environment. With 80 percent of Americans saying they were stressed due to the economy, savvy marketers have shifted their marketing to appeal to consumers watching their money more closely.
But have those ads been successful? Nielsen IAG examined 67 such ads from 11 national advertisers and found in short, value-message and recession-themed ads did not break through TV ad clutter at higher than ordinary rates. In fact, ad recall of the 67 ads evaluated was at rates lower than historical averages for the 11 advertisers. Packaged goods manufacturers saw no decline, while retailers registered minor declines. Financial service, insurance, auto and telecom advertisers posted significant declines.
However, being first with a high-impact break-through message did play an important role in making a difference with consumers. Case-in-point: Hyundai. Hyundai was first to address the anxieties of potential car buyers head-on by delivering a unique, innovative and timely buyer protection offer, allowing the owner to return the car without damaging his/her credit score in the event of job loss. Proving that getting a jump on competitors with a unique value message pays off, the Asian carmaker returned far better sales results than its domestic competitors. Its sales were down just 1.5% in March 2009 vs. 50% for the American rivals in the same month. Yes, in a deep recession, success may be measured in terms of minimizing revenue losses. But the Asian carmaker continues to see U.S. market share gains.
Although, aesthetics, visual creativity and design of ads are important, it can easily be topped and it does not always make the impact advertisers want. Get the message right and be first and you’ll have a lot more opportunity to gain market share in this economy.
[youtube]http://www.youtube.com/watch?v=S9nB-peH1jo[/youtube]
Nike is pushing more and more into the extreme/lifestyle sports scene with their SB (skateboard) line. They are also sponsoring the production of a BMX video and various riders in the BMX scene. They are up against stiff competition from brands like Vans, DC, and 5.10, and when they don’t have Tony Hawk on board they’ve really got to pull out all the stops to attract young males that really haven’t been interested in Nike’s squeaky clean brand image. Can Nike really be alternative hip? Based on their past success when breaking into new categories I believe they will.
Here’s the latest from Nike SB.
Sales in the casual dining segment were hurting before the recession and now their sales are in a complete free-fall.
Darden Restaurants (DRI), however, reported on June 23 that its fiscal fourth-quarter sales were up 8.2%, to $1.98 billion. The company’s two main brands are Red Lobster and Olive Garden.
Darden did see same-restaurant sales at Olive Garden and Red Lobster slide 0.6% last quarter. But, according to the Knapp-Track measure, which monitors restaurant sales and traffic trends nationwide, U.S. same-restaurant sales for other similar chains fell 6.7% in the same time period.
Chris Armbruster, a senior research analyst at Al Frank Asset Management, attributes Darden’s success to good management that has changed its menu with the times, while keeping up advertising. Darden’s chains have pulled customers from more expensive rivals, while holding on to the company’s “core customers,” says Armburster, whose firm owns shares.
Darden restaurants have positioned themselves as good value for the price. All-you-can-eat bread sticks and salad creates a perception of lots of value for the money even though many menu items reach the $15 mark. While chains like Red Robin have pulled all their advertising in the recession, Darden has increased advertising and is now reaping the benefits. Furthermore, Darden’s creative has tapped into the current consumer mindset of “connecting” and coming together as a families and communities. Not only are they talking “value” in their advertising their also talking about bring families together and connecting more deeply, which is resonating with consumer even more right now. No wonder their sales are up and market share is growing.
[youtube]http://www.youtube.com/watch?v=VgNEpbfkqzo&NR=1[/youtube]
From a recent Nielsen Study.
As the “great recession” continues and consumers hear conflicting messaging about when the U.S. economy will improve, shoppers from all income levels are increasingly seeking out and taking advantage of deals at the grocery store. Whether in the form of store promotion or deal or manufacturers coupon, deal rates are up more than 8% from a year ago for households earning more than $70K, a faster rise than the 6% uptick for middle-income households ($30K-$69.9K) and 5% gain for the lower income households earning less than $30K per year.
Affluent households are also driving faster trip growth in value retail channels like supercenters, warehouse clubs and dollar stores, but their overall importance to the sales in each channel ranges from a low of 19% for dollar stores to a high of 57% for warehouse clubs. “We see opportunity to use different assortment, pricing and promotional programs targeted to the ’shopper income’ draw of a particular store. And while value messaging needs to be prominent in these tough times, it can’t all be about low prices,” says Todd Hale, Senior Vice President, Consumer and Shopper Insight.
Well said Todd. Look for ways to give shoppers more value not necessarily discounts all the time or they’ll come to expect them when the recession is over. The big question is whether America’s new found thriftiness will carry on after the recession. I think we’re seeing a major shift in consumerism over the next 20 years due to the emotional impact the recession is having on a majority of American families.
There’s no question that the innovation happening in the mobile marketing world is having a profound change on how marketers think about allocating their non-traditional marketing budget. The problem with a lot of mobile marketing programs is that they have been hard to measure, prone to fraud, and customer lethargy. Let’s face it getting mobile ads constantly on your mobile device can get annoying.
Enter RFID chips. With RFID technology, marketers can track their messages and cut down on counterfeiting. Tetherball a Carmal, Ind.-based mobile marketing company launched a new radio frequency identification (RFID) loyalty platform. Customers who want to receive special offers opt for an RFID chip, which is affixed to their phone like a sticker. Weekly specials are then sent out via text message. Then to redeem the coupon, customers’ RFID chips are scanned at a terminal at the POS. While no name or personal information is shared with the companies, a member’s buying behavior is tracked through an ID number assigned to each phone, so future customer offers can be tailored to specific menu items, time of visit or other purchase data. This allows the marketer to use the customer’s behavior as a way to customize messages and offers. The customer gets more relevant content reducing the chance they will opt-out of the program in the future.
Dairy Queen is testing the technology in some of its locations in the Mid-West and so far redemption results are positive.
From the producer of the Wall Street Meltdown video. A little diddy about Madison Avenue set to the famous Don Mclean song.
[youtube]http://www.youtube.com/watch?v=6CqRcCHk_Pc[/youtube]
There’s a Real Estate firm located here in the Denver/Boulder area that shows homes by bicycle. They are called Peddle To Properties (http://www.p2prealtor.com/). They cater more to the urban buyer that desires to live in a more pedestrian friendly neighborhood. Realtors show homes on cruiser bicycles, giving buyers an opportunity to truly navigate, feel and experience neighborhoods on a more personal level. Their business is growing by leaps in bounds in this economy and they are expanding to more markets across the U.S later this year. They offer a completely unique buyer experience. Not to mention they are tapping into a growing urbanization/Transit Oriented Development consumer trend.
This got me thinking about homebuilder sales centers. Why not have a fleet of bicycles stored at the sales center for prospects to use to tour the community? Typically there is an empty garage where the bicycles could be stored, plus you could purchase a few cruiser bikes for less than $1000. This would give prospects the opportunity to more intimately experience your community instead of driving through by car. It would be a differentiated purchase experience that they would be hard-pressed to forget. If your community is in a Master Planned Development it is even a better way for a prospect to see how their home will connect to parks, schools and stores. Not to mention it gives the sales associate the opportunity to burn a few extra calories through the day.
