Beyonce Puts a Brand On It

In Beyoncé Deal, Pepsi Focuses on Collaboration

By BEN SISARIO

Published: December 9, 2012

       Ben Sisario announced in his New York Times article that Pepsi has joined with Beyonce to create a duel purpose relationship. This relationship unlike many marketing collaborations that people are accustomed is estimated to be a multi-year 50 million dollar project. Where the variance comes in is that Pepsi and Beyonce are in this to help each other, instead of the one-sided promotions that occur often in advertising.

     To explain Sisario stated in his article: "Consumers are seeking a much greater authenticity in marketing from the brands they love,' said Brad Jakeman, president of PepsiCo’s global beverage group. 'It’s caused a shift in the way we think about deals with artists, from a transactional deal to a mutually beneficial collaboration.”

   The company plans to help support Beyonce's future business and creative endeavors. And, the collaboration will peak in response to a marketing blitz surrounding Beyonce's album release and her performance at the upcoming NFL Super Bowl. 

    The hybrid combination will utilize print cutouts, commercials, and even limited edition Pepsi can bottles with Beyonce's face on them. However, the rarer aspects of the deal do not explicitly involve Pepsi Company, rather their purpose is to follow the creative whims of mega superstar Beyonce. 

   A difficult approach, but both Beyonce and the Pepsi Company are hoping that their alliance will benefit both parties.

   I have never heard of anything like this, but I think I like it. It puts Beyonce into more a role as a Brand than a person, which I see as a common theme with celebrities these days. They are not just singers or movie stars, rather now they are entrepreneurs with their own clothing lines, music labels, and restaurants. 

    Further, from the perspective of Pepsi, I do not think they could have picked a better person to market their brand. Beyonce has a great image, a successful career as one of the best in the business, she continues to grow as an artist and business person, her husband has made himself a business mogul, and lastly, she is performing at the biggest sporting event of the year. An event where beverages are engulfed at millions of Super Bowl parties, an event that sets marketing to a new level. If you want to be successful for the first quarter of the year, the Super Bowl is a great place to advertise. 

     It's the most watched sporting event of the year and I think Pepsi just gave themselves a head start to garnering the attention of millions of viewers.

Topics: Advertising, Branding, Strategic Deals
New York Times Article

New Nike Moves

Nike to Sell Cole Haan for $570 Million

Updated November 16, 2012, 1:09 p.m. ET

By JOHN KELL

        According to John Kell in his article "Nike to Sell Cole Hann for $570 Million, the readers of the Wall Street Journal learn about Nike's plan of action to sell off subsidiary business interests. The plan was iniated in May of 2012, with their most recent selling being the release of the company's leather bag and shoe brand Cole Hann.

       The company has agreed to sell Cole Hann, as well as, Umbro for hundreds of millions of dollars because of their decision to focus on key brands within the company's product mix. Some of those key brands are Jordan, Converse, and Hurley.

        "The company got a better return on investment with the sale of Cole Haan, a brand that generated $535 million in sales in the fiscal year ended May 31. Nike bought Cole Haan in 1988 for $80 million, plus the assumption of $15 million in debt. The sale price of Umbro, meanwhile, came at a discount to its $565 million acquisition price in 2008."

     Despite the popularity of these brands they represent such a small portion of Nike's total sales. In the most recent fiscal year of 2011, Nike generated 24.13 billion dollars of total sales. Umbro and Cole Hann only accounted for a 797 million dollars of that.

      Therefore, the moves being made are not as drastic as they first appear, in fact, they are smart if anything. Narrowing their portfolio gives them the ability to focus more time, money, and attention to their new products such as the Nike FuelBand, and it also allows them to work more in depth with their best marketing and designing brand in Jordan.

      Like most of the analysts, I think that selling off Cole Hann and Umbro will be beneficial for the company in the grand scheme of their goals. In my opinion, I do not see how Cole Hann fits in with the rest of their investments. I understand that they have a diverse collection of brands and products, but I think that too much diversity deflects their image. 

      With that being said, I think that Nike's image is the most important thing to the brand, hence, they should focus on athletic wear that follows their mission, brand, and logo. I like and strong agree with their moves. I am especially excited to learn more about their new products and how they develop the fitness and sporting industry. The ability to pioneer new technology that allows athletes to compete harder, train smarter, and get stronger will forever alter the exercise world.

Topics: Brand, Product Mix, Return on Investment

WSJ ARTICLE

Black Friday Deals and Spiels

Black Friday 'Doorbusters' Don't Always Hold Up

Updated November 22, 2012, 5:37 p.m. ET

By DANA MATTIOLI

In Mattoli's Wall Street Journal article "Black Friday 'Doorbusters' Don't Always Hold Up," the discounts of America's biggest shopping day are called into question. Through examples of company's such as Home Depot, Target, and Best Buy, the readers learn that the sales that everyone wakes up at the crack of dawn for are not actually the best sales of the year. In fact, many of these products are listed at lower prices throughout the year. 

"Sears, for example, is advertising a KitchenAid Artisan Series Stand Mixer for $319.99 this Black Friday. Decide found that the retailer offered the same mixer for $296 in March."

According to the article, Black Friday is considered a game to competiting companies. It is one brands advertising and discounts over their competitions. The goal is to get the customers into the store through strategic advertising and then allow the discounts to talk for themselves. 

Typically, the bargins are genuine. However, now, more than ever it is easier to question the companies truth. This can be done by evaluating their online prices and compare.

Ultimately, what can be taken from this article is that Black Friday bargins do not imply that it will be the best time to buy popular gifts. Accessories like watches and jewelry are lowest in October, while technology such as television sets are best bought at the beginning months of the year. 

Truthfully, I am pretty disappointed in the reality of this article. Black Friday is something that I "celebrated" with my mother and sister for the entirety of my life. To find out that the deals are not all that they are cracked up to be makes me feel like I have been cheated for twenty years.

Then again, from the perspective of a marketing student, I think that not giving the lowest prices is smart. The hype surrounding this day comes from the consumers. They do not even need the advertisements to tell them. In reality, they just expect the deals and do not seem to really investigate their standing. Therefore, it makes sense to not throw out the best deals. People are going to buy because it is Black Friday and that is what is expected. I say save the deals for people are not necessarily looking to buy, but they cannot turn down a great deal.

Topics: Black Friday, Holiday Discounts

WSJ Article

The Man of the Household Chores

A Truce in the Chore Wars

December 4, 2012, 6:39 p.m. ET

By ELLEN BYRON

In Ellen Byron's Wall Street Journal Piece named "A Truce in the Chore Wars," the readers learn about a change in the dynamics of a household. Historically, women have been known to have taken the role of keeping the house clean and the chores under control. However, recent statistics show that men, as a result, of being unemployed have taken some of the burden. 

   As a result, brand marketers are recognizing men as a valuable customers more and more. Even companies such as Tide, have refocused and revamped their advertising and promotions to appeal to men and teach them the way of their products.

    Elle Byron exclaimed, "Husbands do laundry in Tide commercials this year—a first in the brand's 66-year history. In one spot, a stay-at-home dad brags, "The clothes look amazing, and Daddy—well, he's a hero."

    The change in pace is intended to reflect a more modern household and rid any past stigmas of men who get involved in cleaning chores.

   At this juncture, the readers see that while the statistics show the change in male's household roles, advertising and marketing managers must appropriate adapt their products to change in consumers.


   I find this article really interesting. Growing up even in a modern time period where people have such strong opinions on gender equality, I saw the change looming for some time. However, now that the margin is closing between men and women's roles, I am kind of taken back.
   I know that personally in my families household, my mother takes control of all household chores like laundry, dishwashing, and etc., so I do not see the change in statistics as a direct reflection of my experiences. With that being said, it makes sense. Women are pushing forward into the workplace more than ever and the unemployment rate has definitely influenced these numbers.
   As the economy is definitely a factor in these circumstances, most specifically, the unemployment rate, I cannot say I see a change coming anytime soon. If anything I think that the gap between males and females role in the household will merge closer together.

Topics: Advertising, Statistics

WSJ Article

Clustered Collaboration

Hype Better Than Sales for Target-Neiman Marcus Tie-Up

• Updated December 4, 2012, 7:54 p.m. ET

By ANN ZIMMERMAN

      In Ann Zimmerman's Wall Street Journal article titled "Hype Better Than Sales for Target-Neiman Marcus Tie-Up," the readers learn about the the two companies attempt to launch a designer collaboration in both stores. The plan is intended to be a collaboration of opposite styled companies merging together to sell a fifty-piece collection of clothing and accessories of big name brands.

    The announcement earlier this year that told the world about this match-up was followed by a lot of hype. Hype that included several big-time advertising stunts, including commercials on primetime television.

    Following these past Saturday's opening, the results seem to be below expectations. Despite, the high-profile publicity Target is failing to see the sales they saw last year with their series of Missoni products.

    The holiday gift project is not living up to the hype and for a several reasons.

   One main problem was addressed by "J.P. Morgan retail analyst Christopher Horvers when said he thought the collection prompted Target customers to shop in other parts of the store, which was one of the program's intentions. But he still said sales were less than expected." 

    Ultimately, neither side will release the details of their sales. Neiman Marcus claims that they are fairly pleased with the outcome, but nothing is actually known. However, based off the reads of analysts the likely hood of success seems incredibly small.

    Personally, I do think this collaboration is a smart one. I think the companies are far to different and represent opposing styles, views, and pricing-techniques that the chance of success seems impossible. Neiman Marcus customers are not likely to shopping at Target, and vice versa. I do not see why they both do not just spend their time and money on things that suit themselves instead of merging.

       Also, I think that the early showing of results is telling of how the rest of this operation will play out. The messy shelves to me serve as a representation of the cluster of collaboration that this plan is. Maybe I am wrong, but in my opinion, it just does not seem like a solid strategic plan.

Topics: Brands, Holiday discounts

wsj article

Starbucks at it Again

Starbucks Plays to Local Chinese Tastes

Updated November 26, 2012, 7:13 p.m. ET

By LAURIE BURKITT

      In the Laurie Burkitt's Wall Street Journal article, the audience learns that Starbucks is planning an expansion and adaption to Chinese culture. With an addition of 800 buildings and 18,000 employees, Starbucks will merge further into China. Their strategy for adaption is to appeal to the local tastes. In order to do so the company is applying cultural insights. This entails large stores and new chinese-inspired flavors among other changes.

      "Starbucks's Ms. Wong said the Seattle-based company understands the complexities of operating in a country where consumers in smaller cities are just getting their first Starbucks and where established big-city coffee drinkers already need upgraded stores.

     The company also noted how crucial the localization will be in order to be successful. A large part of this calls the company to appeal to a family environment. This will help them garner the respect from the adults, which in turn, will allow them to employ a younger demographic. 

      The questions remain on how successful this expansion will be. Can Starbucks quench the thirst of China's population? Will they be able to retain their same tradition? All of these questions must be addressed if the company wants China to be their second biggest market next to the United States.

     I am not sure how I feel about this move. I think it will be difficult and daunting more than anything else. The divergence in preferences from the Seattle-based company and the chinese coffee industry is drastic. Due to these difference in culture and tastes, I do not see this market penetration and product adaptation as smooth transitions. 

    Eight-hundred stores is a lot. The multi-billion dollar investment that will come from that can result in a multitude of things. For starters, I think that the company may bite off more they can chew since this is not the first big expansion that they are taking (A month back I read an article about their expansion in the Nordic Region). Too many projects will be difficult to maintain. Also, it will make it harder to keep their image if they are divulging in various cultures. As a result, I do not think the stockholders will be happy. With so much money going out to a variety of projects, it will be hard for investors to believe in the company's state of business. 

Topics: product adaption, market penetration

WSJ Article

Ranger Rick for Juniors

A New Wildlife Magazine Aimed at the Very Young

By GREGORY SCHMIDT

Published: December 2, 2012

     In the New York Times article, "A New Wildlife Magazine Aimed at the Very Young," Gregory Schmidt announces that National Wildlife Federation is expanded their Ranger Rick Magazines for a younger market. Following the successes of Ranger Rick, NWF has created the Ranger Ricky Jr. Magazine, featuring Ricky Raccoon. 

    The idea branches from a growing interest in ecology. With that trend in stride, the executives at NWF saw an opening to teach young kids who are interested in animals. While providing facts and pictures, the magazine will also have activities for children to try in their own environments.

   Following the suit of the young curious children, NWF has strategically gave Ricky Raccoon a similar attitude. Schmidt explained: Unlike Ranger Rick, who serves as an educator, Ricky is more eager and curious, Ms. Collins said. “Ricky is just as amazed and awed by these animals as our readers are,” she said. 

   The curiosity of Ricky paired with the technologically advanced app available for iPad gives children opportunities to explore the african planes and discover information about a variety of animals.

Originally, I did not think this expansion was a smart idea. I mean a magazine targeted at four through seven year olds seems kind of pointless. However, as I continued to think about it I realized it is kind of brilliant. 

How many times do young kids want to play in their parents or older siblings "toys." These toys such as iPhones, iPads, or laptops rarely provide four to seven year olds with activities that can keep them entertained or intrigued. I feel with this app that will change. Kids love animals and they love to learn. This magazine gives them opportunities to be entertained with both. Therefore, I think that once enough kids find out about Ricky Raccoon it will spread like wildfire to the youthful population.

Topics: Product adaptation, Expansion, Digital Technology

New York Times Article