Category Archives: Consumerism

When Z Comes Before G: Zuckerberg Trumps Gates

Consumerism, Economy, Tech News, , , , , ,

Online Advertising Analysis

When looking at the world of online advertising, it seems it’s out with the old and in with the new. According to an article in Forbes, it’s Facebook that is now in the lead, rendering Microsoft somewhat a thing of the past. Out of the $31.3bn marketing, a staggering two-thirds is now taken up by: Google, Yahoo, AOL, Facebook and Microsoft, but it is Facebook that’s really in the lead, putting Microsoft on a lower rung of the lander.

Look No Further Than Google

When it comes to website searching, it is clear that Google is the name, enjoying three-quarters of the entire market, and, according to eMarketer research, claiming 40.8 percent “all ad dollars spent in the US.

Facebook Fortune

But of course, when looking at the real big money earners, it’s Facebook again, still increasing its profits, “substantially faster than Microsoft.” Over 600 million people are now using Facebook and while in 2009 it had 2.4 percent share in the market, by the end of this year that figure is set to rise to 7 percent, rendering it “the third largest ad-selling company in the US.”

Microsoft Momentum

But it’s not all doom and gloom for Microsoft which has definitely been responding to market changes, having “revamped its online strategy with Bing and a partnership with Yahoo!” The company now enjoys a good search position too. Its revenue growth has been pretty consistent too, “up 18.3% in 2009, 22.9% in 2010, and expected to surge 38.9% this year and 48% next year.” According to a principal analyst at eMarketer, David Hallerman this is due to Bing’s overall capacity to “deliver relevant results to searchers, as well as the company’s marketing of Bing to encourage more usage.” As well, Hallerman noted that Google is kept “on top” due to the “network effect.” In layman’s terms this means that the more people who use the search engine, the more advertisers it gets “which in turn can attract more users and so on.” Still, despite Google’s continuing success, this should not take away from Microsoft which is “gaining both search query and market share.” Ultimately, the four largest search engines have claimed a staggering 93.6 percent of the entire $14.38bn market.

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

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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

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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.