Category Archives: Consumerism

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.

Frankie Goes to Wellywood?

Consumerism, , , , ,

Wellywood Criticized for Marketing Jaunt

The truth is, a marketing gimmick like that can really only be done once. And that time it was done right. One cannot possibly try to duplicate the famous – or even infamous – Hollywood sign. And that may just be one reason why there has been so much controversy surrounding the Wellywood sign. It has been said that it is “tacky, try-hard and unoriginal.” Rob Aitken, marketing lecturer at Otago University, however, claimed, “there’s always a risk of being tacky. There's a difference between a brand and others that are just a representation.” He believes the sign is “an example of a strong brand.”

In addition, there’s always the idea that even bad publicity is good publicity. Just because people are making fun of it, does not render it tacky. More likely, Aitken believes, the jokey side “says something about Wellington’s sense of humor.” Nonetheless, Hutt South MP Mr. Mallard criticized it for being “try-had and stupid.” The MP was shocked that it had gotten approval “after so much controversy.” Wellywood isn’t even the city’s real name; it is a nickname for Wellington, a city situated in New Zealand.

On the other hand, in some areas the sign has been welcomed. One “marketing expert is claiming giant signs and gimmicky icons can help a town's reputation.” According to Aitken, it serves a “functional purpose,” just like logos are meant to. If that’s the case, then what is the function? They “make people feel good about where they live, like they belong.” Rather than listen to conflicting opinions, check it out yourself and make your own decision.

Wellington Tourism and Marketing

According to Justin Watson, GM for Marketing at Tourism New Zealand, such an “identifiable landmark” as this, could actually be very helpful in the city’s marketing. He claimed that, “for many regions in New Zealand, innovative icons such as buildings, sculptures, signs and natural features help showcase what is unique about the town or city to international visitors.” There are many different marketing methods and these have to be analyzed and incorporated correctly if one wants to “attract people to particular regions.” Sometimes, it’s an “identifiable landmark” as part of a marketing technique, that can really do the trick.

Perfect Crop Has a Cherry on Top

Consumerism, Economy, , , , ,

Cherry Industry Sells its Sweetness

There is some good news for the cherry industry. Apparently, with just a little bit of tweaking in the industry’s marketing direction in the North American region, cherries could be quite the profiteers. Indeed, if you just take a look at what’s been going on in Tasmania with the fruit that makes ice-cream oh so much tastier, you’ll see just how popular it is, boasting a staggering $70m per annum, which is way higher than apples and other stone fruits put together! According to Fruit Growers Tasmania Lucy Gregg, the edge the Tasmanian cherry market has could also be due to the region’s climate and limited fruit fly. She added, “we would like further financial commitment to quarantine and biosecurity that’s very important because it can potentially threaten future investment because it is seen as one of our major advantages.”

Better Selling Techniques

This is why there has been a move to encourage cherry farmers to up their marketing techniques. For example, David Green, a cherry farmer from Canada, pointed out how he made some recent changes with the packaging of his fruit. He also put the orchard’s name on the label as he believes this is “what North American retailers and consumers want.”

By doing this, the cherry farm is able to “brand [their] product,” while putting their name out there. By doing this, the hope is that the buyer will “remember the brand” and keep coming back for the same one. In addition, this will encourage people to purchase goods locally as it makes things easier. At the end of the day, a lot of people really would prefer to buy locally. They like to connect their eating to their country so if you market a cherry that comes from where the person lives, there is a greater chance that they will connect to it, and then buy it. On the other hand, if it is not obvious from where the cherry hails, then the consumer won’t feel the tug of loyalty to purchase the same one again. That’s why Green’s point makes sense, that packaging the cherry with its location makes clever marketing sense.

Gaga Goes Gaga?

Consumerism, Economy, ,

Lady Gaga’s Marketing Means 

Lady Gaga is doing something different. Again. This time with regards to how she is marketing her songs. Instead of just selling them through the normal channels, Lady Gaga is offering music from her latest album through the online game FarmVille. As yet, only three singles have been released from the album.

So how exactly will it work? Well, to even get to hear the new song before the May 23 release date, fans of Lady Gaga will need to complete tasks that she sets, as created by Zynga. It is a great social networking campaign and to catch it you need to be online from May 17-19 and hook up to Gagaville, a neighboring Farmville farm.

It’s not a bad idea since as it is, on a monthly basis, approximately 46 million individuals are enjoying Farmville from all around the world.

Gaga’s Other Tricks 

In another way of getting herself out there, Lady Gaga’s face will be seen on a new card game from Loto-Quebec. Apparently this game isn’t so popular though amongst critics who attack it for encouraging those gamblers who already have a problem. But it’s big money. Indeed, in the 41 years Loto-Quebec has been in business, this marks it’s “highest royalty fee” at $300,000. Lotto Poker’s commercial was first aired on Tuesday, featuring the dance song. It’s Lady Gaga’s Poker Face song that features as background music for the commercial.

The aim from the company is to attract the younger generation, individuals in their 20s and 30s. But this has also received criticism for cajoling in the youngsters. It’s true that the underage fans will be banned from playing Lotto Poker but still, the young adults who are anyway somewhat vulnerable are being put in a tough spot.

2011 Mothers Get Spoiled

Consumerism, Economy,

Big Business of Mother’s Day

Yesterday was Mother’s Day in America. It’s meant to be the day when mothers are spoiled and it’s become a huge financial business. Indeed figures for last year reached a staggering $14bn in America. Most popular items were flowers and candy. It is expected that figures for yesterday are to be even higher.

These predictions can be made according to general consumer spending. This has to spell good news for the global economic recovery as surely we wouldn’t be spending so much money if we just didn’t have it. So let’s take a look at the predictions.

Mother’s Day Spending Stats

So let’s take a look at the statistics over the years as worked out by the National Retail Foundation. In 2007, the average spending was $139.14; a large drop was felt in 2009 when the figure was $123.89. This went up a little the following year but this year the prediction is the highest, at $140.73. And who will be getting these gifts? Mostly to moms (or stepmoms) coming in at 60 percent; smallest figure to a friend at 7 percent. The wife doesn’t do badly too, getting an average 39 percent of the gifts given.

What are we Getting?

So if there is all this money spent, what can the woman hope for on Mother’s Day? The most money spent was on a special outing (coming in at $26.73); the least on a book ($4.08). Other gifts in between included: jewelry, clothing, massage, housewares, flowers.

So if you feel you got a bit diddled yesterday and no-one made a fuss of you, perhaps it’s time you made a bit of a fuss yourself and ask your kids (or husband if your children are too little) for a nice gift or some time off.