28.7.08

Paper Facing Worst Year For Ad Revenue

For newspapers, the news has swiftly gone from bad to worse. This year is taking shape as their worst on record, with a double-digit drop in advertising revenue, raising serious questions about the survival of some papers and the solvency of their parent companies.

Ad revenue, the primary source of newspaper income, began sliding two years ago, and as hiring freezes turned to buyouts and then to layoffs, the decline has only accelerated.

On top of long-term changes in the industry, the weak economy is also hurting ad sales, especially in Florida and California, where the severe contraction of the housing markets has cut deeply into real estate ads. Executives at the Hearst Corporation say that one of their biggest papers, The San Francisco Chronicle, is losing $1 million a week.

Over all, ad revenue fell almost 8 percent last year. This year, it is running about 12 percent below that dismal performance, and company reports issued last week suggested a 14 percent to 15 percent decline in May.

“Never in my most bearish dreams six months ago did I think we’d be talking about negative 15 percent numbers against weak comps,” said Peter S. Appert, an analyst at Goldman Sachs. “I think the probability is very high that there will be a number of examples of individual newspapers and newspaper companies that fall into a loss position. And I think it’s inevitable that there will be closures in this industry, and maybe bankruptcies.”

Analysts and newspaper executives find themselves revising their forecasts downward every few months, unable to gain a stable footing on a sinking floor. Papers have cut costs by shedding thousands of workers, eliminating some distribution routes and printing fewer, smaller pages, but profit margins continue to shrink.

Since the fall, when Media General, the owner of a major newspaper chain in the South, set its 2008 budget, “We have pulled our thinking down twice with respect to revenue,” said Marshall N. Morton, the chief executive.

Over the next few years, he predicted, “There’s got to be some assimilation,” with some major American newspapers going out of business or merging. At the corporate level, he said, “I would guess that rather than bankruptcies, you’d see combinations.”

Analysts have issued warnings about several companies’ abilities to meet their debt obligations, though the companies insist that they are at no risk of default.

Most of those companies are privately held, like the Tribune Company, owner of The Chicago Tribune, The Los Angeles Times and many other papers; MediaNews Group, whose papers include The Denver Post and The San Jose Mercury News; and Philadelphia Media Holdings, which publishes The Inquirer and The Daily News in that city.

Some analysts also see a lesser risk in a major publicly traded chain, the McClatchy Company, owner of The Miami Herald, The Kansas City Star, The Sacramento Bee and others, which said last week that its ad revenue was down 15.4 percent through the first five months of the year.

The company announced plans to eliminate about 1,400 jobs, leaving it with 21 percent fewer employees than it had a year and a half ago. Some other newspaper chains had already made comparable cuts.

“It’s going a lot worse than anybody predicted, and if we have double-digit ad declines for two years, some newspapers will be in real financial jeopardy,” said Edward Atorino, an analyst at the Benchmark Company. Even with less severe losses, “You’re going to see structural changes: papers could drop a day or two per week, they could outsource printing.”

He said that he expected the decline in ad sales to slow, with 2008 producing a 10 percent drop for the year, but he cautioned that, like other analysts, he had not been pessimistic enough so far.

The primary long-term threat to newspapers is the Internet’s siphoning away of ad revenue, a trend that has been under way for more than a decade, but one that has picked up speed in the last year. Advertisers have vastly more choices online than on paper, so newspaper Web sites win only a fraction of the advertising that goes digital, and it pays much less than advertising in print.

At the same time, the Internet has drawn millions of new readers to papers, and the major ones reach far more readers than ever before.

“As long as we’ve got content, we’ve got something nobody else has,” said Mr. Morton, of Media General. The industry’s challenge, he said, is to keep expanding that audience, “proving to the advertiser that we, in fact, are the right link so that he can have his conversation with the customer through us.”

Online ad revenue for newspapers grew 20 percent to 30 percent annually for most of this decade. Most analysts think the industry will return to that growth rate when the economy picks up again, but for now, it is closer to 15 percent. The Internet still accounts for less than 10 percent of newspaper ad revenue.

Declining sales of printed papers and rising newsprint prices have also hurt the business.

The industry will not bottom out for another three or four years, analysts predict. The question, Mr. Appert of Goldman Sachs said, “is how far things will fall before then.”



Source - New York Times

1.7.08

Blast From The Past

These links are guaranteed to trigger warm rushes of novel nostalgia. Remember the "Dancing Baby"? How about the "Ding Dong Song"? Revisit all of your favorite internet sensations from past to present and check out how Weezer too the idea one step futher. The timeline is built on peer input so feel free to add any missing events.

Timeline - Click here.

Weezer Video - Click here.

Tranny Power

Opposites tend to attract but can the same be said for advertising? A recent Phillips Razor campaign has proven that the marketing dart can be thrown in the opposite direction and still hit the target. The campaign uses a male transvestite to market the desire for smooth, hair-free skin to female consumers. A smart, breakthrough idea or simply an advertising stunt? Check out the "Meet James" section.

Source - Phillips

Playing In The Clouds

A tag cloud or word cloud is a visual depiction of tags or words that appear within a website or text document. It's an example of illustrating data in a visual format. (Yes your marketing plan can be transformed into a thing of beauty). Tag clouds are typically listed alphabetically with the importance and relative popularity of individual tags expressed with font size or colour. Here's a widget that allows you to make your own tag clouds with any text document or website -simply copy and paste the text in and the website does all the work.

Source - Wordle

You've Gotta Kiss A Few Frogs

Marketing can be a lot like dating - getting to know the respective person, comparisons to past partners, wondering if the third date is too early (or too late) and how often you should call. The following article provides an interesting perspective on this relationship by highlighting these similarities.

At the HOW Design Conference last month, I was lucky enough to meet Marcus Hewitt, CCO of Dragon Rouge USA. (Ok, so perhaps I stalked him via email for a few weeks beforehand… but it was all for good reason.) Marcus was kind enough to share his presentation with me so that I could, in turn, share it with you.

Marcus actually delivered 2 presentations rolled up into one. The first was called “branding is like dating.” The second, “bonus” presentation, was all about the macro trends Dragon Rouge compiles each year through their international offices. I’ll share the first bit with you today.

As you will see, branding really is like dating. It requires a work, truth, self-confidence, and growth. Here are the 7 steps that Marcus outlined for “successful packaging design.”

Step 1: Love Yourself
The brand should be confident in itself and stand proud.

Example: Perrier. Even in the redesign, Perrier stays true to its essence and is not trying to be anything else.

Step 2: Dare to be Different
Let your personality shine through. Be unique. Don’t try to be like everyone else.

Example: Soupline laundry detergent (France). Why does laundry detergent have to come in a box or a jug? It doesn’t.

Step 3: Get to Know People
Take the time to know your audience, their aspirations and desires. Be it your client or the consumer – find out what makes them tick.

Example: Martell packaging – Dragon Rouge created numerous mood boards and pulled inspiration from classic Japanese imagery, modern Sake bottles, gorgeous craftsmanship, and technology. You can see these influences in the final design.

Step 4: Don’t Overwhelm
Everyone needs a little space. There is such a thing as too much information.

Example: Rituals bath and spa products. The design of the line is simple, and the product information is easy to find and identify.

Step 5: Keep them Engaged

Don’t let the relationship get stale. Keep them on their toes with new products or visuals.

Example: Perrier limited edition bottles.

Step 6: Stay in Shape

Brand relationships are hard work. They require discipline. Don’t get out of shape or lazy when your relationship is going well. Your consumer is in high demand and can always leave you for a more attractive, more responsive brand.

Example: HP Steak Sauce was updated and modernized for the times, but also remained faithful to its English roots. They also created a limited edition bottle by the popular British clothing designer Paul Smith.

Step 7: Think About Tomorrow
Consumers will grow and evolve. Anticipate their needs and have a solution before they even realize they have a problem. This requires and active effort to follow and utilize macro trends. The most prevalent example lately is global consciousness. We have an influx of eco products and most major companies are now trying to leverage this in their portfolio of brands.

Example: Clorox Green Works


Source - TheDieLine

21 Common Viral Marketing Mistakes

Too often, marketers are guilty of rushing to communicate through new media channels because they feel they have to be there only to get lackluster results. Although their enthusiasm should be applauded - it comes at a cost. A recent example is Facebook, which witnessed brands desperately building profiles that ultimately failed because they didn't understand a brand's roll in the medium. The following will give you some strategic pointers when venturing into another strange new world: viral.

Having delivered around 50 viral campaigns over the last five years, we've seen (and made) a fair few marketing mistakes along the way. Commissioning a viral campaign isn’t an easy process. To save you the headache, we’ve put together this handy guide to show you 21 mistakes commonly made when commissioning viral campaigns, and to explain how we can help you through them.

1) Being scared of viral, and not using it: if you’re scared of using viral then you probably don’t fully understand the medium or have heard brand horror stories of suicide bomber Polo’s and cat-chomping Ka’s . Read on . . .

2) Thinking viral is about tits, ass and the “ick” factor: viral marketing can be more sophisticated than just pure shock. Sure, it’s easy to exceed expectation by shocking the audience, however there are more sophisticated and intelligent ways of making a campaign work.

3) Not knowing why you want a viral: don’t simply do a viral because it is fashionable, or because your competitors are doing it. Ensure viral fits in well with your wider marketing strategy.

4) Not knowing what a viral can and can’t do for you: viral campaigns can be used to achieve a variety of different marketing objectives. These include:

Buzz: to launch a product, act as part of an ignition campaign or to create brand awareness
PR: to form the central “event” around which you can sell PR stories into offline / online press.

Data-capture: to increase your email database, or find out something about the audience by integrating a polling function.

Direct sales: to drive traffic through to an e-commerce site and generate direct sales.

Pure advertainment: to use the viral simply to entertain the audience, while constantly reminding them of your brand.

Brand participation: to use the interactive nature of the viral to get people interacting with your brand.

5) Misunderstanding the viral campaign process: viral campaigns can be boiled down to 4 core activities:

Strategy: identify objectives, how viral fits in with the wider brand activity and how to achieve goals within budget.

Creative: development of creative ideas across different media formats (e.g. game / film / application).

Production: turning ideas into reality. The different media take differing amounts of time to produce, and incur differing costs.

Seeding and tracking: launching a campaign, seeding it into the relevant influencer networks and tracking its success.

Most campaigns take between 4 - 8 weeks to launch from a standing start. Game-based virals are generally lower cost than film-based virals.

6) Choosing to use viral at the last minute: you will only get the most out of a viral if it’s planned early on as part of the wider campaign.

7) Not using specialist viral web hosting: sure, you can get some good PR out of ‘the project was so successful the server crashed’, but wouldn’t you rather people saw the creative that your budget has been spent on? Viral projects need robust web hosting to cope with traffic.

8) Thinking viral is just about the internet: when planning your campaign you should think about other media viral can reach out into: e.g. mobile (through Bluetooth) and offline press / TV. The best viral concepts should be capable of creating a cross-media buzz.

9) Thinking viral is global and not local: we’re not talking “glocal” here, what we are talking about is the ability of viral to work on both a global and local basis. Localized virality is much more difficult to achieve (i.e. creating a Welsh or Leeds-based campaign); however it is possible with the right strategy and creative.

10) Average creative: virals stand or fall according to their creative. When assessing a creative, you need to think “why would someone pass that on to friends?” Simply creating a “splat” or “platform” game involving your brand mascot will not go viral. Remember a viral marketing campaign needs to be a talking point and to lead to a “water cooler moment”.

11) Using a TV ad: unless your TV ad is outstanding (e.g. the Budweiser “Whassup” advert or the Apple “1984” campaign), a re-purposed TV ad isn’t going to go viral. Importantly, the content of a viral needs to be special in some way. Another way you could create mileage out of your TV ad is to do a special pre-release, including out takes or special bonus features. Or, if you want to court controversy, get the ASA to ban your ad on TV and release it for “internet only” amidst a flourish of PR.

12) Commission a campaign by saying “I want a game” or “I want a film”: the execution and creative should be determined by the campaign objectives and, realistically, by your budget.

13) Trying to do too much within a single campaign: make sure your objectives at the beginning of the process are realistic. There will always be a compromise to be made in the campaign between objectives like the levels of brand control and data-capture, against levels of awareness generated through strong unconstrained creative.

14) Not thinking long term: it’s important to consider the fact that virals are not just for Christmas. Whereas traditional advertising media (e.g. TV / print) are largely limited by media space cost, once you have launched a viral campaign it can work for you in an ongoing way. Based around this premise, you could develop a whole advertainment micro-site containing your different viral executions.

15) Ignoring simplicity: viral marketing doesn’t have to be overly complicated. Think about using simple marketing mechanics like competitions.

16) Referring to the word “viral” in your creative: most people don’t know what a “viral” is, and using the term can actually lead to people rejecting your campaign.

17) Numbers - getting your ROI metrics wrong: successful viral campaigns are not just about attracting millions of users, as often you’ll find that 95% of these users will be spotty Russian teenagers and not your target market. Be clear about what you’re looking to achieve at the start of the campaign, and judge a campaign’s success against these metrics.

18) Under-budgeting: commissioners need to ensure they budget for all stages of a viral campaign, from initial strategy development to the seeding and tracking of a campaign. Seeding is an area that is often overlooked, with campaigns relying on the good-will of the agency to seed the campaign and get it seen. Just as you wouldn’t commission a TV ad without buying media space, you shouldn’t commission a viral without considering the cost of seeding.

19) Understanding how seeding works: seeding is about placing your viral content in front of key influencers within your target networks. If the creative is positioned correctly, your viral will then be passed between people within these networks. The more influential networks often now charge for you to post your campaign on their site, however there are 1000’s of other sites that don’t charge. One important thing to consider in your seeding strategy is the Russian teenage factor mentioned in point 17, as many of the most popular seeding sites are a haven for pre-pubescent geeks and not much else.

20) Buying a mailing list: viral is not the same as a direct email campaign. A viral campaign is designed to work through word-of-mouth / peer-to-peer self referral mechanics. Mailing lists can be effective in as part of the seeding mix, but should always be clearly justified (i.e. in terms of specific targeting).

21) Not working with a specialist agency: viral marketing is an art, requiring a whole set of specialist knowledge. Yup, you could get your full-service agency to rustle you up a game or film and then expect it to go viral. However, even if they are a digital agency it is likely the budgets won’t be big enough for them to merit much interest in the viral, compared to the budgets of a TV campaign or a website build. It is also worth considering getting a viral agency to collaborate with your full-service agency.

Source - Viral Manager

Zombie Brands

In the world of marketing communications, old brands never really die - they wither and fade away into the far corners of our memories generating the occasional warmhearted smile when we recall them. In this article, a handful of marketers have challenged themselves to reincarnate long gone brands, bringing them back from brand limbo and reigniting the equity they once held in the hearts and minds of consumers.

The coffee brand? Perhaps you recall its advertising slogan: “Fill it to the rim — with Brim!” Those ads haven’t been shown in years, and Brim itself has been off retail shelves since the 1990s. Yet depending on how old you are, there’s a fair chance that there’s some echo of the Brim brand in your brain. That’s no surprise, given that from 1961 to around 1995, General Foods spent tens, if not hundreds, of millions of dollars to get it there. But General Foods disappeared into the conglomerate now known as Altria, which also acquired Kraft, maker of Maxwell House. With much smaller sales than that megabrand, Brim soon disappeared — except, perhaps, for a vague idea of Brim that lingered, and lingers even now, in the minds of millions of consumers.

What’s that worth? A small company in Chicago, called River West Brands, figures that it’s definitely worth something, and possibly quite a lot. The firm did its own research a year or so ago and claims that among people over the age of 25, Brim had 92 percent “aided national awareness.” What this means is that if you ask people anywhere in America if they have ever heard of Brim, about 9 out of 10 will say yes. If true, that’s potentially a big deal. Building that level of recognition for a new brand of coffee — or anything else — from scratch would involve an astronomical amount of money, a great deal of time, or both.

Marketers like to talk about something called brand “equity,” a combination of familiarity and positive associations that clearly has some sort of value, even if it’s impossible to measure in a convincing empirical way. Exploiting the equity of dead or dying brands — sometimes called ghost brands, orphan brands or zombie brands — is a topic many consumer-products firms, large and small, have wrestled with for years. River West’s approach is interesting for two reasons.

One is that for the most part the equity — the idea — is the only thing the company is interested in owning. River West acquires brands when the products themselves are dead, not merely ailing. Aside from Brim, the brands it acquired in the last few years include Underalls, Salon Selectives, Nuprin and the game maker Coleco, among others. “In most cases we’re dealing with a brand that only exists as intellectual property,” says Paul Earle, River West’s founder. “There’s no retail presence, no product, no distribution, no trucks, no plants. Nothing. All that exists is memory. We’re taking consumers’ memories and starting entire businesses.”

The other interesting thing is that when Earle talks about consumer memory, he is factoring in something curious: the faultiness of consumer memory. There is opportunity, he says, not just in what we remember but also in what we misremember.

River West is a young company, and few of its ideas have been directly tested in the marketplace. The revival of Brim, for instance, has yet to crystallize into a plan with real manufacturing and distribution partners. But River West is starting to bring some familiar names back into the consumer realm. It is thanks to River West that you can buy Nuprin again at CVS. The firm has also played a role in the return of Eagle Snacks to some grocery-store aisles. In late January, Drugstore.com began accepting orders for Salon Selectives, which is also making its way into 10,000 stores, including every Rite Aid in America and grocery chains like Winn-Dixie and Pathmark. And by way of a deal with River West, Phantom, a Canadian hosiery manufacturer, is pushing a new version of Underalls to department-store and boutique clients in the U.S.

Whether these brand-reanimation efforts pan out as a successful business strategy or not, they offer an unusual perspective on the relationship between brands and the brain. By and large, examinations of successful branding tend to focus on names like Harley-Davidson, Apple or Converse, which have developed “cult” followings. Such cases are misleading, though, because they are not typical of most of what we buy. A great deal of what happens in the consumer marketplace does not involve brands with zealous loyalists. What determines whether a brand lives or dies (or can even come back to life) is usually a quieter process that has more to do with mental shortcuts and assumptions and memories — and all the imperfections that come along with each of those things.

River West’s offices, on the 36th floor of the Chicago Board of Trade Building, are sprinkled with the bric-a-brac of obscure products: a Quisp cereal box, Ipana toothpaste packages, Duz detergent bottles. On a wall of Paul Earle’s office is a framed, five-foot-by-three-foot sheet of uncut “Wacky Packages” stickers — those 1970s trading-card-size brand-parody images that rendered the word Crust in the style of the Crest logo, for example. Earle has a Midwestern everyman quality about him: he’s compact, with a big and friendly let’s-get-along voice and a penchant for deadpan jokes. Only his designer-eyeglass frames deviate from his overall demeanor.

Earle loves brands. They are not mere commercial trademarks to him, but pieces of Americana. He seems not just nostalgic but almost hurt about the fate of the “castoff brands” of the world. “If commerce is part of the American fabric, then brands are part of the American fabric,” he said to me on one occasion. “When a brand goes away, a piece of Americana goes away.”

Earle’s professional entanglement with branding began at Saatchi & Saatchi, where he was a cog in a gigantic ad agency working for gigantic clients, like General Mills and Johnson & Johnson. That was in the mid-1990s, and he saw what happened as conglomerates merged: brands that didn’t have the potential for global scale got squeezed to the bottom shelf, or out of existence. He was attracted to the idea of working with “noncore” brands, but when he figured out that big-agency economics made it impractical, he left Saatchi and went to the Kellogg School of Management at Northwestern University, and then took a brand-management job at Kraft.

At Kraft he observed the same mergers-and-consolidation process from a different angle, and he seems to have found it equally frustrating. “These are American icons with loyal consumers,” he says. “It’s not their fault a $40 billion company doesn’t like them anymore. Consumers like them.” He sees reviving brands as “a civic mission” of sorts. “If it weren’t my job,” he said, “it would be my hobby.” He says this in a way that sounds not just plausible but hard to doubt.

Even so, he has set out to make this particular civic mission turn a profit. While he recognizes that a given brand might not be able to survive in the portfolio of a multinational, different sorts of business models might work to sustain it. As surely as the ownership of brands has consolidated through one megamerger after another, the consumer market seems to be moving in the opposite direction, with an individualism-fueled demand for almost unlimited variety. Earle’s theory is that such demand means room for brands like the ones River West owns, and his idea is facing its most significant test to date, by way of the reanimation of Salon Selectives.

Helene Curtis began selling this line of shampoos in 1987, and sales shot past the $100 million mark within a year or so. It was, one Wall Street enthusiast claimed at the time, “probably the most successful hair-care launch in the history of the universe.” Heavily advertised, the brand was a pioneer of the sales pitch, now routine, of a “salon” product available for home use. Unilever bought Helene Curtis in 1996, acquiring a new batch of cosmetic, shampoo and deodorant brands that had to be integrated into those the conglomerate already offered.

It’s often hard to pin down the exact moment a brand disappears, because a product can linger on retail shelves for quite a while before it’s sold down or otherwise liquidated. But by the early 2000s, Salon Selectives had become a casualty of brand-portfolio consolidation. A few years later, River West acquired what was left of it: intellectual property like the trademarks and the original formulas.

River West’s partner in the Salon Selectives effort is called SSB, which has five full-time employees coordinating the efforts of various subcontractors (manufacturers, package-makers) out of River West’s offices. Selective Beauty is run by Gene Zeffren, a former top executive at Helene Curtis with a Ph.D. in chemistry. Earle and Zeffren are partly motivated by the belief that there is a core of Salon Selectives fans out there who miss their product and are eager to buy it again. You would think, then, that the goal would be to give those consumers their old brand back, just as it once was. And sure enough, when I visited Anne West, the chief marketing officer of the new Salon Selectives, there was an array of pink plastic bottle samples in her office, part of an attempt to match the old color as closely as possible. She showed me a video in which a surprising number of randomly confronted Chicagoans, asked if they remembered Salon Selectives, responded by singing the jingle.

Then she showed me storyboards for new Salon Selectives ads, which were not much like the original ones at all. She went on to explain that while the bottle color would be the same, its shape would be different. The reintroduced line also includes a number of new products, and the products are now more aggressively marketed as “customizable” (by hair length, thickness, texture, etc.) than they were in the earlier incarnation. Then there’s the apple scent. West said fans of the brand in its heyday frequently cited that signature smell as one of the things they missed most about the shampoos. So the new version will have an apple scent — but even that was being tweaked and “updated.” The bottom line is that Salon Selectives isn’t coming back just as it used to be, but sort of as it used to be.

West figures that fans of the brand who are nostalgic for their long-lost product just need to know that it’s back. But the real point now is to attract younger customers who probably never used the stuff. The name “Salon Selectives” might sound familiar to them, so the strategy must balance that familiarity with something that makes the product seem fresh and novel. Later West sent me the new Salon Selectives ads, now running on VH1, Lifetime and other cable networks. The spots do not announce the return of a favorite old brand, or even allude to the fact that Salon Selectives was ever gone. In one, a woman escapes from prison and immediately washes her hair. The cop who confronts her admits that she doesn’t look like an escaped con but (punch line) as if she “just stepped out of a salon.” This is followed by glimpses of the (pink) bottles and a quick “mix and match” pitch and then, at the very last second, a snippet of the familiar old jingle, rerecorded. West calls this snippet a “button,” and it clearly aims to function as the slightest mental nudge: this is something you know about.

Among River West’s various projects, this is actually one of the more conservative in testing the boundary between the positive associations of a familiar memory and the attractions of novelty. There’s less room to test that boundary because Salon Selectives hasn’t been “dormant” all that long: At least some fans of the old apple scent are going to have opinions about the “updated” version. Much will depend on specific associations with a product — which is not the same thing as a brand. Brands aren’t quite so tangible, so quantifiable. That’s what’s interesting about them.

One of Paul Earle’s professors at Kellogg was John F. Sherry Jr. (now at Notre Dame), who has devoted some study to “retromarketing” and “the revival of brand meaning.” In 2003 he wrote an article (with Stephen Brown of the University of Ulster and Robert V. Kozinets of Kellogg) on the subject for The Journal of Customer Behavior. “Retromarketing is not merely a matter of reviving dormant brands and foisting them on softhearted, dewy-eyed, nostalgia-stricken consumers,” they asserted. “It involves working with consumers to co-create an oasis of authenticity for tired and thirsty travelers through the desert of mass-produced marketing dreck.”

I wasn’t entirely sure what that meant, but Sherry turned out to be more straightforward in conversation. “There’s no real reason that a brand needs to die,” he told me, unless it is attached to a product that “functionally doesn’t work.” That is, as long as a given product can change to meet contemporary performance standards, “your success is really dependent on how skillful you are in managing the brand’s story so that it resonates with meaning that consumers like.”

The holy grail example of brand reanimation is the Volkswagen Beetle, which a few years ago rose from dormancy and became a hit all over again in an updated form that was both nostalgic and contemporary. The reintroduced Beetle layered “nostalgic reassurance” over modern functionality. “It’s a brand that’s memorable for a lot of different reasons,” Sherry said. “But largely because it evokes this past that never was — that was morally superior or simpler, an era of better craftsmanship. That kind of thing.”

Such abstract notions are much on display at the Licensing International Expo, an annual event at which the owners of cultural properties — TV shows, movies, cartoon characters — meet with makers of things and try to negotiate deals granting them a paid license to use the properties to add meaning and market value to whatever things they make. It is a good place to contemplate the business potential of “the brand” in free-floating form, unmoored to any product or company that may have actually created it. A surprising number of the symbols represented at the expo held last summer in New York were simply brand logos. Spam, for instance, had its own booth. IMC Licensing was there on behalf of its clients Oreo, Altoids, Dole and Oscar Mayer. At one point I encountered a person dressed up as a can of Lysol, which is represented by the Licensing Company.

Another firm that represents a number of consumer brands is the Beanstalk Group, which staked out a rather large chunk of floor space at the expo, complete with a coffee bar and about 20 tables. Owned by Omnicom Group, Beanstalk is the licensing firm for a wide range of cultural properties, from Harley-Davidson to Andy Warhol to the United States Army. None of these are dead brands, of course, but Beanstalk’s track record with converting brand meaning into revenue is the reason Paul Earle was at the licensing expo. Beanstalk was exploring strategies to revive the Coleco and Brim brands as, essentially, licensing fodder.

Michael Stone, the president and chief executive of Beanstalk, has a refined sense of the licensing business, and how consumer brands fit into it. He knows what many people think the business boils down to: I make plastic lunchboxes and you own the rights to reproduce images of Spider-Man. How about a Spider-Man lunchbox? Stone cheerfully explained to me that this is merely a “decorative” form of licensing, and that’s not his game. As a point of contrast, he told me about Beanstalk’s involvement with Stanley Works, the venerable maker of hand tools.

Stanley hired Beanstalk about nine years ago. Stanley conducted “consumer permission research” to try to determine where the Stanley brand could go. “I remember looking through the focus-group tests, and there was a guy who absolutely swore that he had a Stanley ladder in his garage.” Stone paused. “Stanley never made ladders.” This is an excellent example of what “brand equity” really means in the marketplace.

In contrast to the fanatical-devotion theory, part of the point of most branding is very specifically to circumvent conscious thought. Psychologists use the word “heuristics” to refer to the mental shortcuts and rules of thumb that allow us to resolve the various routine problems of everyday life without having to make a spreadsheet for every trivial decision. Brand owners want a way into your purchase heuristics. Often it is not so much a matter of, say, a Stanley Works fanatic seeking out all products bearing that trademark; it’s a matter of looking for a product and choosing one with a particular trademark that, for whatever reason, we find acceptable. This is not brand loyalty. It’s brand acquiescence.

We’ve all seen the Stanley name, for instance. And by and large, we trust it. We have a general idea of Stanley that fits into our hardware-store purchase heuristics. But there is a great deal of imperfection and vagueness in these thought processes, and that is good news for a licensor. It suggests that there’s potential — or “permission” — for the Stanley name to migrate onto new products.

What Beanstalk did not do when it took on Stanley as a client was recommend investing in a ladder-production facility and hiring a bunch of workers, plus a sales force to blitz potential retail channels. Stanley Works, as a company, has actually been moving in the opposite direction, closing factories and outsourcing its manufacturing since the 1980s. Instead, Beanstalk worked out a licensing deal with Werner, which was already the biggest maker and distributor of ladders in the country. “They needed another brand because they couldn’t expand the Werner brand anymore,” Stone said. So Werner started making and selling ladders with the Stanley name on them. This gave Werner a way to get more shelf space, reach more consumers and make more sales. What it gave Stanley was its name on a new product and a licensing fee. Beanstalk has worked out many such deals, hooking up the Stanley brand with manufacturers of work gloves and boots, power generators and a variety of other things that Stanley never made (and does not make now).

Too many such deals, or the wrong kinds, can boomerang: this happens with some regularity in the fashion world, when a famous designer name gets spread over so many products, with so little regard to quality, that the entire image of the brand sinks. Still, if you see a ladder made by Stanley, you may well think, Well, there’s a name I can trust. What you’re trusting, though, isn’t Stanley workers in Stanley factories upholding Stanley traditions and values under the watchful eye of Stanley managers. What you’re trusting is Stanley’s recognition that a badly made ladder with the Stanley name on it could be highly damaging to the Stanley brand. You are trusting Stanley’s recognition of the value of its brand and its competence in defending that value.

We circled back around to Beanstalk’s ideas for River West’s brands, particularly Brim. Stone mentioned White Cloud. White Cloud is a brand of toilet paper once owned by Procter & Gamble. P.& G. also owned the Charmin franchise, so eventually it let the trademarks on White Cloud expire. These were then acquired by an entrepreneur, who worked out a licensing deal with Wal-Mart to make White Cloud an exclusive Wal-Mart product. It became, essentially, a store brand, but infused with equity of mass-market familiarity. It’s very doubtful that the typical White Cloud buyer is aware that the product is available only at Wal-Mart. It’s also very doubtful that P.& G. (which would surely prefer that its Charmin didn’t have to compete against a brand that P.& G. itself created) will let anything like that happen again if it can possibly help it.

This is essentially the situation that River West brokered with the Nuprin brand, which was a dead line of ibuprofen painkillers (once upon a time backed by the widely known “Nupe it” ad campaign). Its trademarks were acquired by River West and sold to CVS, where it is back on the shelves as a stealth store brand. (And presumably enjoying better margins than it would if, like a traditional store brand, it competed solely on low price, not trustworthy-brand familiarity.) My read was that this is what Stone thought should happen to Brim — and that Earle had mixed feelings, believing, perhaps, that Brim could come back as something bigger. Even Stone seemed at least somewhat intrigued with the possibilities of licensing a brand that was familiar but dead. “With Stanley we have to be careful — this is a famous brand; we have to do everything right and mitigate all the risks,” he says. “But with Brim, the risks. . . .” He paused. “There really are no risks.”

This brings us to Earle’s ideas about the potential upside of faulty consumer memory. Maybe, for instance, you’re among those who remember Brim. But do you also remember that it was a decaf-only brand? That’s actually why you could “fill it to the rim.” River West’s research found that many who recall the Brim brand have forgotten the decaf detail.

The relationship between brands and memory (faulty or no) is a specialty of Kathy LaTour, an associate professor at the University of Nevada, Las Vegas. In one of her most interesting studies, she worked with Elizabeth Loftus, a memory specialist and now a professor at the University of California, Irvine, and a third researcher, Rhiannon Ellis, to take the issue to its logical extreme: What if, for example, an advertising campaign “implanted memories into consumers of things that never happened?”

The researchers found that subjects presented with a fake Disney World ad inviting them to “remember the characters of your youth: Mickey, Goofy . . . ” were significantly more likely to say they recalled that as children they had met “a favorite TV character at a theme resort” than those who didn’t see the ad. The fascinating thing was what happened when they repeated the experiment, tweaking the ads to include Bugs Bunny, who, of course, is not a Disney character at all. About 16 percent of subjects subsequently claimed that, as children, they shook hands with Bugs Bunny at a Disney theme park. Repeated fake-ad exposure apparently led to higher false-memory rates. In a separate study, Loftus asked subjects with Bugs in their memories what, exactly, they recalled about this incident; of these, 62 percent recounted shaking Bugs’s hand, and more than a quarter specifically recalled him saying, “What’s up, Doc?”

Earle says that this imperfection of memory can be used to enhance whatever new Brim he comes up with. This is “a benefit of dormancy,” he says. The brand equity has value on its own, but it can be grafted onto something newer and, perhaps, more innovative. “Consumers remember the kind of high-level essence of the brand,” he says. “They tend to forget the product specifics.” This, he figures, creates an opening: it gives the reintroduced version “permission” to forget that decaf-only limitation as well and morph into a full line of coffee varieties. “ ‘Fill it to the rim with Brim’ stands for full-flavored coffee,” Earle says, with a chuckle. “Fill it to the rim — it’s great stuff!”

Finding the deceased brands that consumers are likely to remember — sort of — is a process that can begin, of all places, in the library. Earle spent hours going through old issues of People, Time, Glamour and other magazines, “looking for brand names that sounded familiar but that I hadn’t seen lately.” This results in many, many possibilities that don’t work out for one reason or another. But every so often the process yields an Underalls.

Earle was intrigued with Underalls. Produced by Hanes from about 1975 to the mid-1990s, Underalls was once a prominent brand, advertised aggressively. (“O.K. America — show us your Underalls!”) It spawned “flanker” brands like Summeralls, Winteralls and Slenderalls. It was unique and memorable: a good brand. “You see the memorabilia on eBay,” Earle says. “That’s usually a good indicator.”

By way of MarketTools, a research company, River West asked 1,000 women ages 25 to 54 to answer an online survey about hosiery brands. About 850 did so, and among these, 72 percent had heard of Underalls. Among those who recognized the brand, about three-quarters remembered the “Show us your Underalls” tagline. Promising. But River West needed a partner to actually manufacture and distribute whatever the new version of Underalls might be.

It found that partner in Phantom, a hosiery maker based in Toronto. Phantom’s main product line is called Silks, the dominant hosiery brand in Canada. The company also manufactures a number of store brands. Phantom wanted to get into the crowded U.S. hosiery market, says Svetlana Sturgeon, vice president of sales and marketing for Phantom, and it made a certain amount of sense to leverage a name far more familiar to American consumers than Silks would be. Sturgeon jokes that, at first, she did not want to admit at meetings that she remembered the brand (“I’m much too young for that!”). But she did.

The point of the original Underalls was that they combined panties and stockings into one undergarment. (“They were the pioneers in the whole idea of eliminating panty lines,” is how Sturgeon puts this.) In early brainstorming sessions, Phantom and River West tried to come up with “the most expansive but credible definition” of the brand, Earle says. In this case that turned out to be “intimate-apparel solutions,” which means anything you wear under something else that’s “functional and fashion-forward,” Sturgeon says. This includes camisoles and bras and other things the original Underalls never sold. The San Francisco design firm Thinc came up with a new graphic identity and packaging ideas that referenced classic elements of the old ads, but radically updated them. New slogan: “Lovely underneath it all.” With the prototypes complete, Sturgeon has begun the process of meeting with boutique and department-store buyers, in the hope of getting products into stores, at least on a test level, in the fall.

Brand familiarity alone guarantees nothing. Sears owns several well-known brand names — Kenmore, Craftsman, DieHard, the Sears name itself — and is viewed by Wall Street as a basket case. Multinationals routinely go through cycles of acquiring and creating brands and then paring back when, inevitably, some underperform. A tiny number of hard-core loyalists not only doesn’t mean a whole lot when reviving a brand, it might be a problem because those people do remember. A number of the more cultish devotees of the VW Beetle, in fact, forthrightly rejected its reanimated version as a fraud. In that case, those consumers were marginalized by a far wider buying public who weren’t such sticklers.

And really, something like the Beetle is actually a special case: it wasn’t just a well-known product, it was a cultural icon on a level that very few products or brands ever achieve. River West is trying to reanimate brands that are sort of familiar but don’t have anything like a VW level of built-in cultural capital to draw on. If there is a cult of Brim out there somewhere, it’s pretty small and very quiet.

What River West really wants is to bring back these brands in a way that not only builds on their former popularity but also manages, via the skillful management of what we do remember and what we don’t, to transcend it. This would be quite a trick. A few months after he returned from the licensing expo, Earle more or less dropped the strategy of turning Brim into a glorified store brand. These days he’s talking about finding a “really innovative” coffee-manufacturing partner who could make the Brim brand an umbrella for groundbreaking (but unspecified) coffee advances that would work in the general market, not just one chain. He sounded almost protective of the Brim idea, and possibly a bit frustrated that he hadn’t hit on the way to bring it back. “Brim is, within our company, one of our best-known brands,” he said to me at one point. “In fact it’s our absolutely best-known brand. So expectations are high.”

Later he added: “The strength of a dormant brand is we can remake this however we want. The challenge is we can remake this however we want.”

Eventually, Earle introduced me at his office to Scott Lazar, chief executive of another River West partner, Reserve Brands, which is overseeing the revivification of Eagle Snacks. I’d never heard of the brand, but I was assured that plenty of Midwesterners knew it. Eagle had once been owned by Anheuser-Busch and was the beer maker’s way into the salty-snack market dominated by Frito-Lay. Its most well known product, it seems, was the honey-roasted peanut, particularly in tiny bags given out as snacks on airlines. Anheuser-Busch eventually pulled the plug, selling its equipment to Frito-Lay and the trademarks to Procter & Gamble in the mid-1990s. Lazar said that while the new Eagle has acquired those trademarks, the new and expanded product line consists largely of snacks that the old Eagle never made, with names like “Poppers!” and “Bursts!” These are rolling out in a variety of grocery stores across the country. Lazar tried to give me about six large bags of samples, but I demurred on account of limited luggage space.

I ended up with two bags, which Earle and I took downstairs to the bar at the Ceres Cafe. It was crowded and loud, filled with big Chicago men who in some cases had spent the day screaming on the Chicago Board of Trade floor and who in all cases were not shy. We found a place to sit, plopping the Eagle snacks in front of us. And one man after another leaned into our space and pointed at the bags and boomed, “Eagle!” Big hands reached toward the bags to get a scoop of snacks that the old Eagle had never made, and at the time were not in stores, and big voices declared, “I remember those!”

Source - New York Times

Creatures of Habit

A recent study randomly tracked (using cell phone base station data) 100,000 mobile phone users. Despite the evil "big brother" potential of this technology, the studies were intended to reveal insights into human behaviour. Well it seems that humans are more creatures of habit than valiant explorers. And one day, this information could help us place media exactly where our consumers frequent.

The whereabouts of more than 100,000 mobile phone users have been tracked in an attempt to build a comprehensive picture of human movements.

The study concludes that humans are creatures of habit, mostly visiting the same few spots time and time again.

Most people also move less than 10km on a regular basis, according to the study published in the journal Nature.

The results could be used to help prevent outbreaks of disease or forecast traffic, the scientists said.

"It would be wonderful if every [mobile] carrier could give universities access to their data because it's so rich," said Dr Marta Gonzalez of Northeastern University, Boston, US, and one of the authors of the paper.

Dr William Webb, head of research and development at the UK telecoms regulator, Ofcom, agreed that mobile phone data was still underexploited.

"This is just the tip of the iceberg," he told BBC News.

Money search

Researchers have previously attempted to map human activity using GPS or surveys, but it is expensive.

One innovative approach tracked the movement of dollar bills in an attempt to reconstruct human movements.

The study used data from the website wheresgeorge.com, which allows anyone to track a dollar bill as it circulates through the economy. The site has so far tracked nearly 130 million notes.

Studies such as this suggested that humans wander in an apparently random fashion, similar to a so-called "Levy flight" pattern displayed by many foraging animals.

However, Dr Gonzalez and her team do not believe this approach gives a complete picture of people's movements.

"The bills pass from one person to another so they can't measure individual behaviour," she explained.

The new work tracked 100,000 individuals selected randomly from a sample of more than six million phone users in a European country.

Each time a participant made or received a call or text message, the location of the mobile base station relaying the data was recorded.

The researchers said they were "not at liberty" to disclose where the information had been collected and said steps had been taken to guarantee the participants' anonymity.

For example, individual phone numbers were disguised as 26 digit security codes.

"Furthermore, we only know the coordinates of the tower routing the communication, hence a user's location is not known within a tower's service area," they wrote.

Each tower serves an area of approximately 3 sq km.

Information was collected for six months. But, according to the researchers, a person's pattern of movement could be seen in just three.

Model behaviour

"The vast majority of people move around over a very short distance - around five to 10km," explained Professor Albert-Laszlo Barabasi, another member of the team.

"Then there were a few that moved a couple of hundred kilometres on a regular basis."

The results showed that most people's movements follow a precise mathematical relationship - known as a power law.

"That was the first surprise," he told BBC News.

The second surprise, he said, was that the patterns of people's movements, over short and long distances, were very similar: people tend to return to the same few places over and over again.

"Why is this good news?" he asked. "If I were to build a model of how everyone moves in society and they were not similar then it would require six billion different models - each person would require a different description."

Now, modellers had a basic rule book to follow, he said.

"This intrinsic similarity between individuals is very exciting and it has practical applications," said Professor Barabasi.

For example, Professor John Cleland of the London School of Hygiene and Tropical Disease (LSHTM) said the study could be of use to people monitoring the spread of contagious diseases.

"Avian flu is the obvious one," he told BBC News. "When an outbreak of mammalian infectious airborne disease hits us, the movement of people is of critical concern."

Dr Gonzalez said that traffic planners had also expressed an interest in the study.

Sensor overload

Although the scale of the latest study is unprecedented, it is not the first time that mobile phone technology has been used to track people's movements.

Scientists at MIT have used mobile phones to help construct a real-time model of traffic in Rome, whilst Microsoft researchers working on Project Lachesis are examining the possibility of mining mobile data to help commuters pick the optimum route to work, for example.

Location data is increasingly used by forensic scientists to identify the movements of criminal suspects.

For example, the technique was used by Italian police to capture Hussain Osman, one of four men jailed for the failed suicide bombings in London on 21 July.

Commercial products also exist, allowing parents to track children or for friends to receive alerts when they are in a similar location.

These types of services and projects will continue to grow, Dr Webb believes, as researchers and businesses find new ways to use the mobile phone networks.

"There are so many sensors that you could conceivably attach to a phone that you could do all kinds of monitoring activities with," he said.

For example, Nokia have put forward an idea to attach sensors to phones that could report back on air quality. The project would allow a large location-specific database to be built very quickly.

Ofcom is also planning to use mobiles to collect data about the quality of wi-fi connections around the UK.

"I am sure there will be tens if not hundreds of these ideas emerging over the next few years," said Dr Webb.

Source - BBC