Category Archives: Consumerism

Coke Is, or Isn’t It?

Consumerism, Economy, ,

Pepsi V Coke: Who’s Winning the Marketing War?

Pepsi may have just missed the marketing boat. On the marketing ladder, it just now dropped to the third run from its previous no. 2 position, having been hoisted out by Coke’s diet version. According to a recent article in AdAge, for the first time in 20 years, “PepsiCo ceded the soft-drink category’s two leading share positions to its legendary rival.”

Pepsi Still Pushing

But Pepsi won’t be taking this defeat lying down. As reported in another AdAge article, the company’s marketing executive picture is being shaken up a bit, with the addition of three positions and a replacement for its CMO-PepsiCo Beverages America position. But the question being asked is, is this the answer? Some suggest this restructuring is going to give Pepsi a more “global approach,” pumping up its worldwide market share. As well, it needs to work on its American market which, while it is there Pepsi has its biggest presence, it has “been losing ground.” Indeed just last year the beverage’s “share of the soft-drink market fell 0.4%, allowing Diet Coke to push past it as the second-biggest soft-drink brand in the U.S. Diet Pepsi saw its share tumble 0.3% last year, according to Beverage Digest.”

Coke and Pepsi: Tale of Two Tastes

This situation – the competition between Coke and PepsiCo – is not new. Both companies are up against the same marketing challenges and it was the former that realized the importance of brand-building as a long-term strategy. According to one executive close to PepsiCo, that company on the other hand, seems to have “gone into a tailspin, trying to reverse its fortunes overnight at any cost.” The consequence of this was the loss of its “best people, continuity, and ultimately, its direction.” Even though Coke has definitely also encountered its fair share of challenges too (in the 1980s it was the New Coke debacle; 1990s, Belgium contamination scare; and 2000s, big time layoffs and CEOs revolving cast), it seems that it’s ultimately Coke Was, Is and Always Will Be, It.

Starbucks Mobilizes

Consumerism, , , , , , , ,

New Way of Paying for Your Joe

It’s official; Starbucks is becoming more mobile. Check it out on YouTube. According to an article in WebOptimiser, the company is using a mobile payment system with its close to 7,000 company-owned stores following a testing of the idea in a few key stores. According to Brady Brewer, Starbucks VP, what this does is provide a much more convenient payment method. So far the iPhone and Blackberry have their apps and Android is on its way. But this is only a short-term method as in future phones won’t be needed as “near field communications” (NFC) technology will be applied.

Proven NFC Technology

In Asia, NFC technology has been used for a while in phones with chips, supported by various retailers. Already for last year, mobile payments reached $100m and by the end of this year, this figure is expected to double, according to Juniper research.

UK Coffee Drinkers Enjoy NFC

Starbucks and Barclaycard (in conjunction with VISA Europe) have signed a deal that has now brought NFC to their coffee houses. Most coffee houses throughout UK and Ireland will be using this technology by Spring 2012. How will this work? According to a recent article, “Orange customers with a Quick Tap-enabled handset will then be able to simply tap their mobile phone on a Starbucks contactless reader to make purchases of £15 and under.” The company’s aim is to make customer service as great as their coffee, according to the company’s EMEA technology services manager, Pete Blower. Since it seems that at coffee shops people just want to get their coffee and go, this is a perfect place for the technology to be in place.

Japan Rethinks Marketing Models

Consumerism, Economy, , , ,

Japan Business Post-Disaster

Since Japan’s disaster a few months ago, while the main aim is for the country to recover as painlessly as possible, on the sidelines it seems there has been a lot of rethinking taking place vis-à-vis marketing directions. It seems like – perhaps in the aftermath and because of the tsunami – people’s perceptions (and thus desires) are changing and so marketing techniques need to adapt to this. In a study entitled ‘Fukkatsu: Japan Rebuilds,’ by the end of last month, 77 percent of Japanese claimed they were “actively seeking out brands they believe are helping recovery of the country and personal stability.” In addition, the study showed how the Japanese are becoming more eco-conscious following the disaster with 75 percent using less electricity; 72 percent making greater attempts at water conservation and 68 percent in general seeking out “greener alternatives to everyday consumption.”

Bigger Japanese Picture

There is generally more contemplation going on it seems. Individuals and the private sector are taking more responsibility for the country’s recovery, as opposed to just relying on a “government that is increasingly seen as not showing leadership.” 93 percent of respondents said that they “just want a more stable life” so it seems that is the motivating factor. There are more bikers now as people become concerned about shortages in gas and price escalations with potential power shortages.

Better Booming Business

On the other hand there has been some good news for businesses following the disaster. Since the Japanese are a big nation of train commuters, businesses are now honing in on this and using the platform for a way to go shopping. Until recently, there were just some eateries around, but it now appears that “post-earthquake, we have seen that all shopping trips are shorter and more directed, and these ‘railway malls’ make that so much easier.”

Brick and Virtual Shopping

This has led to increase in brick and virtual shopping as a way of comparing prices due also to the increased use of mobile phones as shopping aids. The Japanese are also engaging now more in “embarrassment shopping” which is when you check out products to determine their social acceptability levels through mobile services and then decide whether or not to purchase them in the “brick.” Since early March, Japan has seen an increase of around 20 percent of online shopping.

Direct Consumer Involvement

It also seems from the article that in general the Japanese average man on the street wants to be more involved with 60 percent of respondents claiming they want “to be part of a shared process n product and service development.” They are also more aware of “corporate statements and are digging deeper into what goods and services offer.”

‘Hey Good Looking’: Good Marketing Technique

Consumerism, Health Tech, Lifestyle, , ,

Weight Loss Surgery Adverts

It’s genius when you think about it. Everyone wants to look good so why not use that as a marketing technique to promote bariatric surgery? The postcard used in the ad has the faded denim look, subconsciously reminding someone desperately trying to lose weight about the dream-jeans they want to fit into. TriStar Health Systems and Baptist Hospital is “aggressively marketing the weight-loss surgery” in this way. Over 60 percent of America’s female adult population is overweight; for this proportion, surgery may be the answer.

US Admin Pushes Surgery

Even official bodies are now – at least indirectly – pushing this surgery. The US Food and Drug Administration has reduced the acceptable weight for the “most popular and least invasive procedure.” Hospitals however, are looking for patients who want to pay since insurance companies have still not “embraced this lower threshold.”

Pretty Marketing Techniques

It’s been done a million times, but it keeps reaping success; pushing pretty people in marketing techniques. This is exactly what is working for the weight-loss surgery too (not surprisingly). But on the flip side, the reality could be different since there are potential complications and risks from undergoing such surgery (as with any surgery) and it is not “an automatic cure for obesity.” The marketers are claiming something different though, saying that they are just pushing this as “an awareness piece,” since many individuals just don’t know about the bariatric surgery and various other available options. So while it is a great marketing technique since such a substantial proportion of the American population is overweight and even officially obese, looking at pictures of pretty, thin people should not be the determining factor in deciding whether this surgery is right for you. Each individual case needs to be assessed on its own merits.

Groupon Gain

Consumerism, Economy, Lifestyle, , , , ,

Groupon Goes to Church?

Due to the enormous success of Groupon, the company is increasing its employee count to an additional 150 a month, all of whom, are meant to be based at company headquarters. The problem is however, since this is now completely full to over-capacity, Groupon will be moving its training to a church as it has simply run out of room. Groupon is based in Chicago and in just a year and a half has grown in huge proportions. Groupon subscribers now stand at 85 million, from a mere two million less than two years ago.

Deal-a-Day Does Deals

It is not just Groupon however, that is raking in the subscribers. Deal-a-day has much of which to be proud too. It is a similar idea to Groupon and has also been successfully raking in the crowds. Indeed, the company is encountering a similar problem to its Groupon competitor, with major office overcrowding issues.

LivingSocial Living Social?

There can be a thing as getting too much of a good thing however. At LivingSocial, perhaps there’s been a bit too much social living. Workers at the company have been pushed into the corridors after just two months of being there as there is simply no other room for them. The company also has what to be proud of vis-à-vis the growth in its subscribers from 120,000 to 28 million.

Why So Successful?

Why are these companies doing so well, and so many of them? According to Greg Sterling, an analyst from Opus Research, the reason is because they are good for “both merchants and consumers without requiring tech savvy from the former.” Combined, such sites are predicted to generate approximately $2.7b revenue this year which is “more than double” from last year. And, according to VP at BIA/Kelsey Mark Fratrik, this growth is set to continue in the foreseeable future, reaching $4b by 2015. These statistics render this market a faster growth pace than any other e-commerce.

Any Bad News?

It’s not all good news though for the market. Apparently, while things are bad, things are good for the daily deal markets. But as soon as the economy starts to witness a real recovery, it looks like there will be a plummeting of “traffic to daily-deal sites.” Consumers will be less concerned about finding a bargain when they have more money in their pockets. Right now, it doesn’t look like these companies need to start worrying just yet though. According to ComScore, LivingSocial is listed as one of the “10 fastest-growing websites.” Other bad news is that there are some merchants who get burned. To make it a real success, businesses working with a company like Groupon “hopes shoppers will spend more than the coupon’s face amount.” But small businesses are finding it a great way to “hook new customers in the digital age.” It’s a perfect advertising technique with the right price tag. There are always two sides to every story. But overall it seems this market is a very popular one, and it’s here to stay.