Wednesday, April 25, 2007

Marketing To A New Generation: Summary

All in all this blogging adventure through numerous marketing strategies has given me insight as to how consumers of today like to be reached. As the world becomes more wired, consumers are spending even less time watching television, listening to radio, reading magazines, and other traditional media that is just not reaching the buyers in many markets. Consumers in this country have so much buying power and so many choices as to where to spend their money. Companies are competing to win over customers because new brands are forming all the time. As the number of companies grow in each market clutter becomes harder to break through. Consumers see thousands of ads a day. It is impossible for each one to make an impression. To make an impression, ads must be personally relevant, unique, and in places where consumers allow companies to reach them. This is the world of alternative marketing.

Alternative marketing is on the rise because of its ability to break through to people who will be effected by it. Many times it is shocking, fun, or even ridiculous, but its main function is to be remembered. I'll start by mentioning the use of interactive websites. These sites are many times about products, but companies present them in a way that is fun. Websites such as cavemanscrib.com and u-starvin.com are two websites that allow consumers to tour fictional worlds and have a laugh. Cavemanscrib.com is Geico's site about the apartment where the character from their commercial lives. Visitors can browse his i-pod, listen to his answering machine, and even dress the caveman. This website does not even have anything to do with the brand, but it associates the brand with positive feelings and a reason to thing about the brand. U-starvin.com is another interactive website that has a lot to do with its product, which is Easy Mac. Its target is mainly college students and this is where the site takes place. They set up a fictional university with videos of students making ridiculous attempts to satisfy their hunger and finally reach a solution with Easy Mac. Interactive websites such as this make the brand more fun. It shows that the companies care about more than just selling their products, they also like to entertain their customers.

Another form of alternative marketing is done by simply finding places where the target audience allows companies to reach them. Scion had a campaign this year where they allowed people to take free test drives, had giveaways, and had people on site where consumers could talk to them. They set up outside of places where their young target is usually found such as music stores in major cities. This strategy took the pressure off the consumer as they usually find at the dealership. There was no signing up, no obligation, it was just people talking to representatives and testing the product with no strings attached. Companies are doing much of the same thing in the virtual world. They are finding places where their target is and advertising there. Sites such as facebook, youtube, and myspace are among the most popular for reaching the teen and young adult market that are the least responsive to traditional advertising.

Another form of virtual advertising that has taken off has been the use of Second Life. Companies now recognize the number of people who are members of this virtual world and the huge reach that they have advertising there. Companies such as Nissan allow avatars to take test drives of their virtual cars. This is a fun way to market. It is marketing, but the consumers feel like it is a video game. Nissan is finding people in an environment where they allow companies to reach them and then make marketing fun for consumers. Second Life has also been a place to place billboards. Avatars will see many billboard advertisements as they travel through the virtual world. As you can see in my previous post, Coke has created a contest where consumers can design a virtual Coke machine for SL. This gives Coke a lot of exposure in SL and also makes the consumer feel connected to the brand.

The Postal Service was also involved in some consumer driven marketing. They had Star Wars fans vote for their favorite Star Wars stamp that was to be used in the mail system. There was also a contest tie-in that made people feel connected. Allowing consumers to enter contests, design content, and vote for things they like make them feel like they are part of the company. Their word is heard and important to the company. This company-consumer interaction is what people are looking for.

Many companies are taking full advantage of viral marketing. Chipotle is a great example of a company who uses limited advertising dollars and still gets its message out. Their strategy is giving out many free samples and using the samplers as spokespeople. Consumers get a free sample, enjoy it, and share their experience with friends. The message is passed on and sales increase. Word of mouth is the best form of marketing. People trust it more because it comes from peers. There is no pressure and people are able to share common experiences this way.

To sum up, alternative marketing should focus on a way to get the customer to feel connected. This is done through interactive websites, contests, and allowing customers to feel like they have a say in the company. Companies must find their target audience in places where they like to be reached whether that be in the real or virtual world.

Friday, April 20, 2007

Virtual Thirst


Coke is working on expanding its brand awareness through the internet. They are primarily using the virtual world Second Life. Coke has an online campaign which includes a contest called Virtual Thurst. The concept of the contest is for consumers to design a new Coke machine to be used in Second Life. Coke knows that Second Life is big and is getting bigger. They want to be a big part of this phenomenon. New brands are appearing on Second Life by the day because it reaches so many people. The audience reach is huge and companies are willing to spend advertising dollars on this strategy.


The contest is being promoted on some of the most popular site on the Web including MySpace and YouTube. These sites have also been integrated into the contest because they too have a huge audience reach. People who enter the contest must visit these two sites. Coke has set up pages off these sites for the contest. This strategy constructs a "socially integrated marketing strategy." People who belong to these sites belong to a community. They share interaction, experiences, and interests while logged onto these sites.


With respect to the contest, Coke encourages people who enter to be as creative as possible and not limit their ideas to their technological abilities. They want to generate as many ideas as possible. This works out well for Coke. They get tons of ideas for their virtual Coke machine, they get consumers involved, they create buzz about the brand, and they are understanding their consumers better. There is no better way to give consumers what they want than by letting them design it themselves. The main goal of the contest is to create a Coke machine that will generate brand awareness in Second Life. However, the contest is already creating brand awareness from the buzz alone. They are reaching a much larger audience using the contest than by simply placing a company designed machine in Second Life.



Friday, April 13, 2007

Monster Marketing

Monster energy drink has been everywhere in the past year. They have been promoting like crazy and have been marketing geniuses. I saw the host of the MTV show "The Inferno" wearing a hat with the Monster logo on it. They have found a target market and hit it hard. They have been sponsors of major events such as the X-games, surfing competitions, and other extreme sporting competitions.



They recently became the sponsor of 15-year competitive motorcyclist veteran Ricky Carmichael. Carmichael is a 15-time American Motorcyclist Association national chamption and holds the record with 147 wins. He is a star in the motocross and supercross worlds. These sports draw a very specific audience; the very target that monster is seeking. They are sponsoring Carmichel because he is everywhere and now Monster will be as well. Monster is an energy drink for those who are hardcore and extreme. They reach their target audience very well at these events where they can put up huge banners with the logo, give out samples, and get personal with the people who are interested in their product.


Ricky Carmichael is slowly exiting the motorcycle world and is trying to get into stock cars. This sport also draw much of the same audience as the cycling world. However, stock cars have an even larger following. Ricky Carmichael will be mentored by one of the best in the sport, Mark Martin. These two will work together as Carmichael is scheduled for 15 races in 2007.


Monster continues to grow with the extreme sports affiliation. They are everywhere you turn in these alternative sporting events as sponsors. This gives them great audience reach, a chance for the consumers to get the know the company a little better, and the chance for newcomers to try the product.

Wednesday, April 11, 2007

Burt's "Buzz"


Burt's Bees, a skin-care company, has designed a marketing campaign that will reach their customers on a very personal level. Their campaign, called "Burt's Bees Be-utify Your World Tour," will travel to 15 cities in the US to meet face to face with prospective consumers. The campaign's main attraction is an enormous mobile hive that will attract people to come check out the company's products.


The mobile hive is bound to spark onlookers' interest. People who approach the hive to see what it is all about will have the opportunity to check out a variety of the company products. Burt's employees will be giving hand massages using the skin products as well as skin-care consultations.


One major attraction to the brand is that their products are all natural. They are very environmentally concious and want to pass on information to their customers. For this reason, the hive will also have a "What Do You Do For The Environment?" chalkboard where visitors to the hive will put down their answers. The top 50 responses from each city will recieve a sapling tree. The hope is that winners will plan the trees to combat carbon emissions.


Once customers approach the hive, representatives from Burt's want to educate them about all their products. They have over 100 products that many consumers are unaware of. These representatives have the opportunity to educate consumers as to the uses of all the products and the benefits of using all natural products.


The hive is like a giant moving billboard that will be seen by a huge audience. It gives the company so much exposure as they tour the country. It also creates curiosity as people want to know more about this mobile hive.

Saturday, April 7, 2007

St. Arvin

Kraft has a new website about their Easy Mac bowls that had me cracking up. U-starvin.com markets their product to the group most people associate with the product: college students. The site starts off as a fictional college called St. Arvin University (a little hunger pun) where students will do just about anything to feed themselves.

Yes, college students are on a tight budget in their four years of higher learning, but this site takes this notion to an extreme. There are many interactive links with videos and activities to play around with. There is one link that shows many thing you should not microwave and what happens when you do. A football, gummy worms, marshmallows, and glue are among the items that are shown microwaved. The site warns viewers not to attempt this themselves and use the microwave for your Easy Mac bowls. One video shows two college students who find a half eaten piece of pizza. They proclaim they are both "very hungary" and the only way to solve this dilemma is a hall joust. The video cuts to the two students in the dorm hall all padded up and jousting with brooms while riding their bikes. An onlooker hands them both an Easy Mac bowl and suggests this is a better solution.


These hilarious videos and interactive activities show that Easy Mac is a simple way to satisfy any hunger while at college. It is fast, simple, tasty, and most importantly its cheap. They are reaching the perfect market with this site and are communicating their message in a way that college students can relate to it. While it is a bit over the top college students do understand many of the positions these students at St. Arvin are in. Sometimes it is hard to find food without burning a hole in your wallet. This site shows all the benefits of the product in an environment where it is used most. The site is worth checking out for a laugh. Watch some of the St. Arvin students in their ridiculous attemps to feed themselves.

Friday, April 6, 2007

Giveaways Create Spokespeople


Since its start in 1993, Chipotle Mexican Grill Inc. has kept its distance from traditional marketing. They have had no need to spend expensive advertising dollars because they have had great success with word of mouth marketing. In fact, Chipotle spends less in a year on advertising than McDonald's does in 48 hours.


Chipotle relies on its customers to spread the word about the restaurant. It does not use fancy commercials or gimmicks to lure people into the stores. They use their quality food that keeps customers coming back for more. Their continued growth is thanks to their loyal customers. Same-store sales increased 13.7% in 2006, which is the ninth year in a row with a double digit increase for this category. The consistent increases show that Chipotle is doing something right.


The main way they get the message out about their restaurant is letting people try the food for themselves. They began this trend in 1997 in Denver. It was Timothy McVeigh's trial for the Oklahoma City bombings. Chipotle regularly sent free burritos to the courthouse. From there, they began to explode and have not looked back. Burrito giveaways are now part of Chipotle's strategy. One of their latest stunts was last year in Midtown when Chipotle gave away some 6,000 burritos. Some people waited for hours on line to get a taste. This word of mouth marketing technique cost Chipotle about $35,000. The price was well worth gaining the 6,000 spokespeople who spread the word for all to hear.


People are exposed to up to 6,000 advertisements a day. The best way for someone to remember a brand is through word of mouth. Something that their friend or even a stranger tells them will have more impact than any traditional media they see throughout the day.


Chipotle uses some traditional media to get a more wide exposure. Their two channels of choice are billboards and radio. However, they spend less than 1 percent of their annual revenue advertising. Word of mouth marketing increases Chipotle's profits tremendously by reaching so many people and saving lots of money on advertising.