So I bought a new car last week, and after years of not having a functioning cigarette lighter to utilize an adaptor for a mobile phone I’m now ready to buy one. Now there’s some general rules I typically follow to make sure I don’t spend too much on this sort of thing, first of which is don’t ever buy from a branded carrier’s store (pro tip they make money from the accessories), and second the best possible place to buy is typically Radioshack®.
Buying Experience
Radioshack is cheaper one because they sell an incredible assortment of stuff including AA batteries that have high margins, and because they typically run an entire store with only two people during the busiest times of the day. So the advantage is I’m getting a cheap charger, but now the problem is there’s no one there to help me get the right charger.
It’s at this point I discover the genius of “PointMobl™” packaging on the chargers in a bright white iPod like section of the store. I pick up a couple of these weird over-sized plastic canister type containers and flip it over to read up specs on the back. Somehow I missed the “Flip it To Fit it!” messaging on the front, but still managed to do exactly what the designers wanted me to. This was some of the most intuitive packaging I have ever seen, as it left the end of the charger that fits into the phone in a small accessible hole in the back. Yes, I didn’t even need a sales associate as I could plug in the charger and know it fit, so simple so easy, its the low hanging fruit of product accessories which everyone else has ignored.
The Purchase Decision
I only had to pick up two packages until I found the product I knew would work with my phone. At that point I had 100% confidence that I had the appropriate product. Its at this point I was so happy with my ability to select the product, make the decision myself that I never even bothered to see if there was a competitive branded product available as well. I never even bothered to check the price (although its because I assumed correctly a $25-30 price window that I knew to be typical for this type of product. This was one of the more rewarding buying experiences I’ve had, and for something as simple and every day as a device charger.
PointMobl™?
Good thing you TM’d that name its a rock-star. OK, all joking aside I just bought a product with a company that has zero brand credibility; this is something of a miracle given my normal purchasing habits. Not only was this product packaging super effective in my purchase decision it actually built considerable brand equity for me. I’m not even kidding when I say I paid more attention to the packagings’ features than the Power Adapters.
So I’m thinking that these PointMobl folks really know this business, its at that point I then discover its not an accessory company but a branded mobile store that is at the very least partnered (and I’m guessing owned) by Radioshack. I must say I’m a bit confused to see the brand over-extending the branded storefronts but maybe this will make rolling out these stores a bit easier. Would love to be sitting in on their brand strategy sessions.
Conclusion
I like my introduction to PointMobil, I think its smart on Radioshack’s part to make use of a branded experience that better aligns with what customers normally associate with purchasing mobile products. I’m also blown away by the thoughtfulness they’ve injected into their offer, it really helps build credibility in an already crowded space.
There’s really a thin line between acknowledging a segmented group that you do business with dignity, and obliterating your trust within that segment.
365 Black
I ran across this McDonalds sponsored website on a satire site that was poking fun of fast food salads and people who think they’re somehow healthy at you. The site 365Black.com pushes a complete appreciation of the Black community, from its business owners/partners, to its customers, to the culture of the community.
I had noticed the targeting about 9 months ago when I was watching ads it really seemed like I never could spot a white person in commercials (I’ve seen a few since) anecdotal evidence isn’t really sufficient for me to be basing any blog posts on. Having seen this site though I can say it does appear that targeting this demographic is part of the agenda for McDonalds.
Impact on Primary segment
Unfortunately, McDonalds doesn’t really have the same wholesome health conscious image that maybe Subway (still not sure this is remotely healthy) has been able to portray. The fact they’ve been targeting a specific segment then comes under fire due to considerations about why they’re targeting this market.
Seeing articles like this show me that the marketplace has noticed and may not be that happy about it:
http://www.associatedcontent.com/article/375154/how_mcdonalds_targets_the_urban_market.html
http://www.qaadironline.com/apps/forums/topics/show/1882219-why-does-mc-donalds-target-black-people-
http://www.aachac.org/healthfactsheets/diabetes.html
Given the problems facing the community such as heart disease and diabetes and the fact that fastfood is considered to be a risk factor/causal agent by many, this segmentation and outreach program may be missing its intended mark and damaging McDonald’s credibility within the community.
Impact on Other Segments
Its always understandable when you leave a customer segment behind, a product just can’t be all things to all people. Unfortunately this can create friction with other segments who feel they’re being ignored. There’s no Asian 365 or White 365 etc. how does this make people feel who are a part of those demographics who also are valued customers for McDonalds? Does it send the message that maybe this establishment doesn’t cater to or respect their needs?
Conclusion
I’m always a bit alarmed by race in advertising. I think that the focus should be brought back to the individual and not so much emphasis should be made on what someone is. McDonald’s could have just kept the “Im lovin’ it” jingle, the celebrity endorsements like Michael Jordan, and left race out of it. The interesting thing is that approach worked for so many years, why change it now?
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Typical M&A
We’ve all heard this story before big juggernaut company buys smaller yet substantial competitor. Proceeds to re-brand the hell out of all of their locations. This translates into a lot of very unhappy customers who immediately swear off the big Goliath that decimated their beloved champion of whatever trade.
Starbucks Acquisition of SBC
I love the simplicity and intelligence behind the branding decisions of how Starbucks has used SBC to date. The best part of it is many of the people who swear they will never enjoy a Starbucks beverage, have no clue what the SBC beverage in their hand is.
SBC as a brand shield
Starbucks had plenty of opportunities to branch out and partner up with various other chains. The dilemma: how can you partner with McDonalds without ruining the premium name associated with Starbucks? Solution: you buy SBC and proudly serve SBC at every McDonalds. Instead of turning a company into a direct competitor or eroding the key brand, they’ve now got a licensee and additional revenue stream.
Separate, Different, Still Cash-flow
A proper segmentation strategy doesn’t cannibalize your business it offers a new channel and source of customers that your traditional business doesn’t align with. Its obvious the strength in Starbucks is the brand, after all in some markets there can be 3-5 coffee stands on 1 street corner. It stands to reason that SBC’s presence will do little to impact this.
Incubation Market
Having a secondary business unit enables Starbucks to create, test, and market new ideas without harm to the main unit if they prove unpopular. This can also be a way of testing out perception or where/why the Starbucks brand is failing or floundering.
The Viral Video
The point of a good viral is the shock value. Taking a team of SBC coffee slamming employees doing a late night urban branding warfare campaign at the Starbucks headquarters is an instant classic. It has that gorilla marketing feel, and if you’re not in on the dirty joke (that SBC is owned by Starbucks) it has quite a lot of shock value. For those people who are “Anything But Starbucks” it could resonate with them. Fun Stuff.
Conclusion
Branding is a powerful tool, especially in a high margin, high service industry like the specialty coffee business. Starbucks the king of the mountain isn’t beyond reproach and recognized this by aiming to build a successful also-ran brand in SBC.
It seemed like everyone was high on the blog as a business model in the mid 2000′s; and why not with adwords from Google providing a rich source of income, low startup cost, and the rapid growth of online viewership it seemed the perfect business to jump into. That being said, blogging isn’t an easy activity nor a lucrative one unless you really come forward with something.
Keys to Success
First mover advantage – This is usually good for any business but especially necessary for the blog. Attracting a loyal crowd in an area where no one provided a like product (or one that was easily found) is huge.
A captivating idea – It’s not enough to build it up. It needs to be something that the masses want. I’ve gone forward with 2 ideas now MGMTNOW (branding/product marketing advice) and ZunedOut (Music blog focused on Zune). Unfortunately, both the areas I’ve selected don’t have a large enough following to really ramp earnings with.
Amazing Marketing – Marketing is a little different on the internet, its all about being linked to, getting the right search results, and utilizing Web 2.0. My experiences with Google really turned me off to Adwords for a blog. I think the costs especially given some of Google’s methodologies in their business model don’t align well with a product that is ad funded. This is not saying that a good organic result isn’t necessary. My experience was that the easiest way to push business was through Web 2.0 sites with rabid users.
Stumbling Blocks
Yada Yada Yada – You talk but everyone just hears you flapping your mouth. While readers demand content they only care about it if it’s meaningful. Writing a post just for the sake of getting something out there is a detriment.
M.I.A. – My biggest problem here. When you don’t want to fall into the “I say a lot but I don’t say anything trap” you can just as easily fall into the silent treatment and erode your base. I know after being laid off I was a lot more focused on other activities, and went 3 weeks between posts. General rule of thumb is if you don’t post once a week and you haven’t built a solid following they will likely leave.
Overly invasive monetization – The thing that gets you paid, is also the thing that your users appreciate the least about your site. Finding the right balance is key.
Conclusion
With the downturn in spending on advertising, its not as easy as it once may have been to watch those AdSense checks roll in. With the right focus on your offering, and a consistent approach of holding your viewers interests and being respectful of the presentation of the product offering there is still an opportunity for large return. Just remember for every website that claims they can give you the secret sauce your real secret to success is understanding a customer base and tackling their interests in a meaningful way.
It’s been a while since I saw something that really needed to be covered, and been immensely busy.
I came across this genius piece of technology and advertising this morning and just had to share.
So before you get to watch the video you have to watch an ad, nothing ground breaking there. What is a terrific idea is giving customers the choice of selecting which ad they do get served. I think this is terrific as a consumer who targets the ad they will be watching is likely going to be more receptive to the ad.
I’m sure this idea has been around for a while but seeing it on a mainstream site like MSNBC is great. It shows that media execs are starting to try and unlock a solid revenue stream online, something that will be necessary if we’re ever to transition media to the web.