Volkswagon Beetle? Nope! A Volkswagon Tiguan!

When I entered the Volkswagen I was greatly attracted to their initial layout. They had the information that all consumers desire to know upfront (pricing, APR, where to find a dealer) as well as a picture of their featured vehicle. They identify that the customer wants a low price purchase as well as an efficient and marketable vehicle. The website offers links at the bottom of their page to view their carefree maintenance details, their new 2011 vehicle (the Touareg Hybrid) as well as options for upgraded audio systems. One thing that stood out to me was the ‘blog’ link that the website offered. For each model of vehicle VW set up a blog so consumers can post their opinions and feedback from a vehicle allowing prospective consumers to hear from real people who have had experience with the vehicle. Overall, the Volkswagen website was appealing to me.

I have recently seen an increase in the Volkswagens on the road. I saw the Tiguan earlier this year and I had taken an interest in it, so when this MEAN was assigned I decided I would build my own Tiguan. I started by clicking on the “Build and Price” link. I was redirected to site where it asked me what model I want to continue with (see below) and I clicked on the Tiguan. I decided to go with the SE model and the color black. The company definitely catered to my desire to have options. I was able to choose from six different colors for the Tiguan, four different kinds of wheels, two types of interior (leather or cloth), the choice to have a trailer hitch and also gave me the option to add a sunroof. Volkswagen gave me many options to design my vehicle and gave me a detailed summary of what I had just created. When I was finished creating my custom Tiguan I clicked on “Summary” and it gave me full details of what I had just created. It started with the name and model (Tiguan SE) and went into what type of engine (200 hp, 6 speed automatic) and gave me the drive terrain (all wheel drive). The summary also included the base price, how much my added selections were, my destination charge and the overall price. The final detail asked me if I wanted to talk to a dealer and request a test drive of my custom Tiguan.

 The website gave me numerous options for different areas of the vehicle. It gave me nine different models to choose from at the start.

When I was finished creating my custom Tinguan I was given a detailed summary of what I had just created. The summary included the price of all the additional ammenities as well as the final price.

I thought the website appealed to my desires for custom features in my vehicle. I liked that it gave you numerous options for every aspect of the vehicle (color, interior, sunroof, etc.) and gave me a detailed summary of what I had created which included the choice to contact a dealer. Overall, the website was greatly appealing and if I could afford a $30,000+ dollar vehicle I would have purchased what I created.

You can build your own Volkswagen at www.VW.com!

Blessings,

Tiffany

A Savvy Shopper or an Episode of Hoarding? Extreme Couponing on TLC.

If you see a woman (or man) with three shopping carts filled to the top, whatever you do, I advise that you DO NOT get in the checkout line behind this person.

These hard-core couponing professionals are in it to win it - for free, and if there is a way to get free .. they will. TLC has taken the faulty economy and the need for consumers to save money to exploit the high-level couponing society. TLC aired its new series pilot, Extreme Couponing, on December 29, 2010 and over 2.1 million viewers tuned in (TLC). The show follows “savvy” shoppers as they plan, organize and plot their way to remarkable discounts. Extreme Couponers plan their shocking execution, showcase their insane stockpiles and demonstrate their dramatic (and time consuming) coupon clipping skills. You can see purchases from 1,000 tubes of toothpaste to 190 boxes of diapers for someone who doesn’t have children. Basically, I find that these couponers could be classified as hoarders.. or nuts. The happiest day in one of the couponer’s life was when her husband purchased her a binder for her birthday that could keep her coupons organized by grocery-store aisle.

These “Extreme Couponers” plot their grocery shopping trips like it was a plan of attack against foreign forces and, in the shoppers’ eyes, the enemy is the dollar bill. These couponers will gather their shopping posse and fill three to four shopping carts at the same time. Then they test the patience and amiability of the cashiers by having them ring up hundreds (I mean HUNDREDS) of coupons to ring in their discounts. These couponers receive hundreds to thousands of dollars worth of merchandise for as little as $3, $5 or $10 and these discounts are often followed by applause from the onlookers of normal grocery shoppers who wishes they had all those coupons. The shoppers start with a budget, often far below what we think is humanly possible, and vow that they WILL NOT exceed that budget, and when the total rings up, after all coupons are calculated, below their budget like planned their body flows with surges of adrenaline which can be felt throughout the television world.

Extreme Couponing is not just a mom or dad task but has been turned into a family affair. The coupon clippers will bribe their children into helping them clip the coupons and pay them as much as a dollar per coupon. Doesn’t that defeat the purpose of savings? The show is - as said to be - EXTREME. These enthusiastic couponers that are featured on the show end up having to rearrange their homes, children’s rooms, garages, vehicles and entire lives to make room for their mounds of toothpaste, shampoo, peanut butter, canned soup and toilet paper that they are stockpiling.. or hoarding. I mean, what will one family that has 4 boys and 1 female do with 10,000 rolls of Charmin toilet paper??! With the economy in its declining state we have all adapted to the fact that we can save money buying in bulk, but this kind of “bulk buying” is like shopping in anticipation of the world’s end.

One of the shoppers on the show, Tiffany Ivansky, said that she often feels like her home’s walls are caving in because the stockpiles have taken up so much of her living space. Her stockpiles have consumed all of the home’s bedrooms, bathrooms and the basement. Her stockpiles even branch as far as under her children’s beds. Tiffany says that couponing is a great part-time job (2-3 hours a week) and she saves close to $1,000 a month on toiletries and groceries thanks to her extreme coupon clipping measures (Coffey). Is this part-time job clipping coupons, paying your child $1 per coupon clipped and hoarding stockpiles that consume the entire house a money saving effort or apocalypse preparation?

While watching this show I wonder what these women (and few males) are thinking as they continue to add to their stockpiles. I mean, what will someone do with 1,000 tubes of toothpaste weighing close to 400 pounds? Well, as the couponers have explained, their thinking goes like this: you only want to buy an item when it is on sale; you combine the sale of the item with a coupon so it can be doubled in value AND use the manufacturer coupon so the store actually ends up owing you money by the time the transaction is over. Take all four carts of groceries home, unpack them and begin clipping coupons all over. Shoppers have also expressed how social media has changed their shopping ways. Companies are trying to convert to paperless coupons which allow consumers to reap the benefits of Facebook, internet blogs as well as numerous deals online. It is not just paper these shoppers are clipping but they are expanding the social network of the coupon world.

In marketing we have learned that coupons are a sales promotion for companies to get consumers to purchase their product. I wonder if this show has led manufacturers and retails to think twice about how many coupons they want to offer consumers. Could Extreme Couponing lead to end of coupons for eternity? Probably not, but I think it will be a new trend for all those viewers watching. Bring on the Sunday ads!

Below is a clip of the show. See for yourself how serious these shoppers take their coupons!

I think I might go clip some coupons! Happy Shopping!

Tiffany

Source: TLC/ExtremeCouponing

Celebrity Endorsements: Product Promotion and Elite Status

Celebrity endorsements have become profitable and plentiful in our growing media society and it seems like all companies, even random ones, want to get in on the action.

Some of these promotional ad deals are obvious fits, like a woman for a MAC commercial (Nicki Minaj) and Joe Mauer for Kemps (strong bones for a MVP) but others leave us confused and questioning the marketing tactics that these companies are trying to use.

Some of these endorsement deals feature happy reality stars that are gawking at the featured product. They are getting a chance to make a quick million bucks but the borrowing of their famous names comes with ridicule depending on the product.

When I think of Jamie Lee Curtis I automatically think about digestive regularity. Activia has provided Curtis with a financial boost to the career which had been lagging in certain spots but also gives the consumers an image of a woman who can go to the bathroom regularly thanks to her yogurt. See Below.

I Can’t Believe It’s Not Butter.. Something you put on your toast or something to get down disco-style in the refrigerator aisle? Well, Megan Mullally finds it best used as a dance partner compared to a toast condiment. Her greatest role was playing Karen Walker on ‘Will and Grace’ but she was signed on to get down with the butter with a goal of increasing sales. Dancing and butter? Maybe the company is trying to promote exercise after consuming fat. See Megan’s commercial below.

One celebrity endorsement that found me questioning my desire to purchase celebrity endorsed products was Claire Danes for Latisse. Claire Danes is serious about her acting career, but now she is serious about long eyelashes. She is a multiple Golden Globe winner and teen actress who is now the face of Latisse. I used to want to purchase this product when “normal” people were endorsing it because I trusted in their proven results and credible references, but after a big-time celebrity who can get fake eyelashes with the call of her make-up artist started the endorsement I realized that maybe this product is not as legit as I thought. See Claire’s video for Latisse below.

Do I think celebrity endorsements change consumer behavior? Absolutely. Consumers see the rich and famous endorse a product and don’t think twice about the millions of dollars these celebrities were paid to pretend to use the product (some may but in reality celebrities don’t eat carbs or butter). When you see a product on a commercial or in an ad you automatically want to be like the people representing the product. So, what do you do? You go to the store or research it online, follow the reviews and then purchase it. If it wasn’t for the celebrity catching your attention you would have most likely changed the channel or have not added it to your list of things to purchase. As much as we dislike it, as much as we want to tell ourselves that celebrities don’t make the different, the reality is they do. We want to live lives like the rich and famous, be regular like Jamie Lee Curtis or have amazing, long lashes like Claire Dunes. By using these celebrities as a form of “product placement” they are able to make the viewers feel as if they too can be part of the fabulous celebrity life. Just think companies like Kemps are even signing endorsement deals for celebrities’ moms. Joe Mauer’s mom, Theresa, is currently the face of Kemps (along with her son). By using celebrity endorsements consumers are made to feel less adequate about themselves while watching these commercials. Consumers then have the thought that by purchasing and using the product like these celebrities are advocating they will feel better about themselves. Celebrity endorsements are a marketing campaign for thousands of companies across the world and as the growing demand for elite status and self worth increase so will the celebrity endorsements.

If you take the time to look at old celebrity commercials you will find them extremely amusing. Below are two commercials, one endorsement by Johnny Cash for Taco Bell and the second is a McDonald’s commercial endorsed by Michael Jackson. See how much commercials and celebrity involvement has changed.

 

Blessings,

Tiffany

Legality of Slotting Allowances: Why and Who Does It Hurt?

MEAN4b:  Research Slotting Allowances and Failure fees using Google Scholar and Google.  Create a discussion of the ethics/legality of this practice.  Why does it exist?  Whom does it hurt?            

When this MEAN was assigned I wasn’t really sure what slotting allowances were, but the fact that the question was on ethics and legality sparked my attention. I find the most interesting topics in business to involve ethics and legal practices. Well, with some research and Google Scholar my findings showed that slotting allowances are “lump-sum advance payments made by manufacturers to retailers for stocking their new products” (Sullivan) Slotting allowances are a semi-new concept since they did not exist prior to 1984, but are currently an important component in agreements on pricing and promotions between a manufacturer and retailer. They have been the topic of much discussion because some say that they are illegal and leading us to a monopolistic market-structure.

Slotting allowances can be traced back to the 1980’s. The grocer industry first started giving retail grocers more power to control their suppliers while manufacturers had overwhelmed their grocers with new products. This is when grocers had required some of their manufactures to make cash payments if they wanted access to the stores shelf space to display their new product. It was in 1987 that the estimated trade promotion budget of grocery manufacturers was $6-9 billion. (Cannon) According to the FTC report (2003), the average amount of slotting allowances per item per retailer and per metropolitan area range from $2,313 to $21,768 depending on the retailer and the area. As far back as 1987, Advertising Age claimed that some large retail chains charge “upward of $100,000 for each product stocked.” I thought we lived in an oligopoly? Obviously businesses have the authority to begin the stages of converting our oligopoly to a monopoly.

Looking at the power that slotting allowance has on retailers and manufacturers, these private negations create barriers for small manufacturers compared to larger ones. It has been discussed that these negations between retailers and large manufacturers make it more difficult for smaller manufacturers to obtain shelf space because they are unable to pay slotting allowances. The retailers can then exclude the smaller manufacturers which only end up monopolizing the overall market. Not only can slotting allowances lead to monopolization of the market but it can create a more distinguished outline of price discrimination, which would favor the large and dominant buyers over smaller ones. Slotting allowances gives large grocery chains the ability to take the funds they have obtained from the large manufacturers and finance competitive behavior that could ultimately kill small retailers. If these things were to take place because of slotting allowances the consumers would end up suffering the most. Grocery prices would increase or the inventory of goods within each store would greatly diminish.

Even though slotting allowances create a fear that these negations will lead to a monopolistic economy, they do however create positive aspects for retailers. Slotting allowances help to locate and fill scarce shelf space, balance the risk of product failure between the retailer and manufacturer, allow the manufacturer to gain private information about the impending success of their new product and help to expand a manufacturer’s retail distribution by alleviating any retail competition. All of these aspects, which have been inspected by the Federate Trade Commission, were considered in the FTC’s decision on whether or not to completely ban slotting allowances. Much to my surprise slotting allowances are being used in numerous categories; including, dry groceries, household maintenance products, snacks and beverages while deli, product and fresh meats and fish are only using “light” slotting allowances. This is shocking when the entire industry is comprised of these few categories. We think about a retail environment that encompasses one to two manufacturers that produce a single product each and one to two retailers that may carry one, both or neither or these products. The desire to be the most shopped at retailer and most bought out manufacturer create a great need by retailers, and manufacturers to participate in slotting allowances.

After reading the background and legality of this practice, I had found that this system is almost “black market” type. There is a little systematic data that can be found on Slotting Allowances because these transactions between manufacturer and retailer are negotiated privately and the firm involved does not report these transactions. I don’t find this system to be legal in anyway. Retailers can require large payments by manufacturers for shelf space, large manufacturers can out-buy small manufacturers for shelf space, small retailers diminish because they can’t compete with the slotting allowances by large retailers and the consumers’ are the ones who end up suffering. If we want to continue to live in an oligopoly market structure then sooner or later we must regulate slotting allowances.

The question that one might ask about these agreements taking place is do they violate the antitrust laws? The answer is no. Since the FTC has semi-regulated the negations which, by law, makes slotting allowances legal. From an outsider's view I find that slotting allowances needs to be reexamined as to if it truly does not violate antitrust laws before our market has gone monopolistic. The people and decisions that make up a successful economy are the consumers and smart business practices. If the retailers and manufacturers are not participating in ethical business practices (charging one manufacturer for shelf spaced based on their size compared to charging another manufacturer a different price based on size) then the consumers end up being able to purchase these retailers good ultimately causing the economy to suffer. Next time you are at a grocery store and you pick up an item off the shelf think about how much a manufacturer just paid to have their product sitting on that shelf.

If you are looking for a great article on the controversy of slottign allowances I attached one below.
http://www.ftc.gov/bc/slotting/comments/009christopherjmacavoy.pdf

Happy Shopping!
Tiffany

Sources:

Kuksov, Dmitri, Pazgal, Amit. "The Effects of Costs and Competition on Slotting Allowances" Washington University in St. Louis. July 2005.

Are Slotting Allowances Legal under the Antitrust Laws?

Joseph P. Cannon and Paul N. Bloom. Journal of Public Policy & Marketing
Vol. 10, No. 1 (Spring, 1991), pp. 167-186

Can You Really Find a Deal Through Online Reservations?

MEAN3b:  Find the very best ticket price you can for Rome Italy or  Hong Kong for the week after school gets out.  Compare the online reservations systems. Once you have found your best price, find an article on “yield management” in the airline industry and explain why a seat on the same airline might range from $150 to $2000 depending on when you bought your ticket. Explain this to a skeptic in one clear and cogent paragraph.  Finally, using “yield management,” how would you change the way the typical movie theater prices movie tickets?

I have always wanted to travel to Italy so I was rather interested to search for the cheapest ticket, little did I know how many travel websites there truly were. You often hear of Expedia and Priceline but what about EuroFlights or Destination360? I had never heard of those before this assignment and was shocked at the differences in prices between the numerous travel websites I explored. I searched approximately travel websites and ended up finding the best deal (if you can call it a deal) at CheapAir.com with my ticket price (for 2 stops) being $1,293.00 on United Airlines and the most expensive ticket through Priceline.com with the ticket  cost at $3,058.00 on Air France. These prices were flabergasting compared to when I first examined prices to Rome at the beginning of March because tickets were significantly less. I hadn’t created my MEAN assignment yet but I could have gotten a ticket to Rome for under $1,000. Just a few weeks later ticket prices have gone up almost $400.00. These differences in ticket prices are due to the desire of the airline to maximize its revenues or profits. This is referred to as revenue management, or more often yield management.

Yield Management works like this: an airline sells the right seat to the desired right customer, at the right time and for the right location. The key for each airline is to find a tradeoff between the selling of the ticket at discount price in order to completely fill up the place and selling the ticket at the full fare price and only filling up a portion of the plane. This process requires the airline to involve consumer behavior as well as gathering past data analysis. This process overall becomes extremely difficult to follow. Using yield management airlines are able to segment its market into different passenger categories. With this said, we must acknowledge that the airlines are seeking to find a balance between the business person who needs a ticket now verses the price-sensitive consumer who waits for the best deal. One customer is willing to pay a higher fare in exchange for the flexibility of the ticket (schedule change, cancellation option, etc.) whereas the other will give up some flexibility if they are able to get the cheaper ticket. Since airline seats are perishable items (once a flight takes off the unfilled seats will never be filled causing those seats to be lost revenue. These strategies allow airlines to fill seats that may in a different case be empty.  Yield management also gives an airline the opportunity to operate a large variety of different fares which can enhance the attractiveness that an airline can have on its consumer.

The movie theatre industry adopted revenue management (yield management) as a primary business practice. Revenue management has been successfully adapted into numerous business in recent years including the movie theatre industry with its perishable product, limited capacity and time-sensitive business. Movie theaters have reduced prices before 6 pm and have done so to stimulate the demand during the lower demand times. In all the years it has been a discount price before 6 pm I am almost positive I have never seen a movie earlier than that. I understand the movie theaters are trying to segment their market but they are also loosing revenue. With the price of movies consumers have often stopped going or choose tow ait until it comes out in Red Box. To maximize profits and continue consumer loyalty, the movie industry should cut prices on older movies still in theatres and continue with current prices of new features. By lowering prices of older movies the consumer is ultimately saving money making them feel like their needs are being met. This gives the consumer more incentive to see new features and pay full price. The movie industry could develop multiple ticket market segments complement the usual approach by normal consumers.

By creating multiple price segments, discount and full price, the movie theatre industry revenue is met as well as the consumer demand. Movie theatres can offer full price tickets until show time and once the show has started offer a discounted rate. If there are empty seats in the movie, the theatre should want to fill them with discounted tickets since no one will be able to buy the same ticket at full price once the movie is over. I would also offer discounts on group rates such as double date, group dates, movie weekend, etc. which allow the movie industry to utilize revenue management and target the individually priced consumer market.

The ways to change current movie prices are endless. One theatre offers “old” feature movie tickets for $2.50 when a theatre just blocks away offers their cheapest ticket for $10.00. After reading different articles on yield management I have come to respect how businesses utilize this business tool to maximize profits. Movie theatres want to sell a ticket to the right customer, at the rice price at the right time and this is no different for the airline industry. It is a competitive market and large amounts of profits are awarded to those who get the customers first, even if that means increasing we have to donate our leg to buy a movie ticket.

Now, go see a movie! :o)
Tiffany

Sources: Voneche, Frederic. "Yield Management in the Airline Industry" Pg. 1-6. Google Scholar
Oberwetter, Robert. "Building Blockbuster Business" June 2001.

Getting Miss Minnesota to Join the Social Media Circuit

I have worked closely with the Miss Minnesota Organization for numerous years but never took the time to see if they had migrated over to certain types of social media. The social media that did exist for the Miss Minnesota Organization was a website, however; it was very low-key and was not maintained regularly. As I went back and viewed their old website, I noticed that they had not been on Facebook, did not have a Twitter account and had hardly completed any maintenance on their website in months. I was extremely surprised at this since this organization targeted age group is college-aged women and most information obtained in this day is via the internet. Below you can see two small clips of the organizations old website. It was bland and unappealing and a new design was greatly needed.

Here is a little background of the Miss Minnesota Organization. Miss Minnesota is part of the Miss America Organization. The Miss America organization is a scholarship program that offers over 45 million dollars in scholarships to women between the ages of 18-24.

Just by seeing that the targeted age group is 18-24 it is obvious that the best market to advertise to this age group is social media. The majority (if not all of the contestants) that are competing are in college and use the internet and social media as their primary means of communication.

As I interacted with this site I had noticed a sign telling viewers their website was under maintenance. I decided that I would take it upon myself to email to developer to see if the organization had migrated yet, and since it was under construction that it would be a great time to give them an idea to migrate if they have not already done so.

After a few emails with the developer it was discovered that the Miss Minnesota Organization does use Blogger as one of their social media outlets. Each Miss Minnesota is expected to write her blog weekly and to update all of the contestants and volunteers on her latest appearances, outings and community events she has done. I asked the developer if the organization used Twitter or Facebook to get their name and advertising out to the social media world. The developer, Nicole, explained that they had just recently started a Facebook page and already had 703 “Likes” and the numbers were rapidly increasing. She said that is where they ask all local titleholders, volunteers, directors and any members of the communities around Minnesota that see a titleholder at an appearance or event to update the page or tag them in the photos and/or posts.

After talking with Nicole I went to the Facebook page myself. The minute you click on the page it catches your eye. I was eagerly surprised to find how interesting the page was. There are people from all over the state that post pictures, blogs, current schedules, event schedules and anything having to do with their title on the page. It is not just a page about Miss Minnesota but a collaboration of all the local titleholders across the state. I found all their tabs on the page (info, photos, notes, events, appearance request and calendar) were all updated regularly. Their “photo” section was updated almost daily with new pictures of Miss Minnesota, includes a picture of each local titleholder that will be competing in Miss Minnesota in June, as well as Miss America pictures and community events that have happened across the state. Overall, I was extremely impressed with the first impression, look, the layout and how informative their page was. It definitely was much more appealing then the organizations website.

In my emails with Nicole I had suggested that the organization creates a Twitter. I had explained the idea of getting the Twitter link on their Facebook page would increase exposure even more. Even if Miss Minnesota does not Tweet daily, it is still there for her followers to view on a regular basis. After a few emails back and forth Nicole had said the state board decided it was a good idea to create one and that the link would be included in their new website. Below you can see the Miss Minnesota Organization's new website. It is exciting and extremely appealing. It makes me want to venture each link of the website and find out more information about the program. Their new, eye-appealing website makes more people want to view and increases their overall exposure!

I had never taken the time to really investigate whether organizations and companies I am a follower of have social media until the MEAN notebook had been assigned. I never realized how crucial social media is in today’s society. For every business that runs their ads on paper or via billboards there is five more businesses in the same industry running their advertising and networking on social media. Since the basic way of communication in society is electronic and via the internet it is in a company’s best interest to develop their business advertising over social networking.

I found a great quote by Jay Baer that, in my opinion, sums up the outlook on social networking. She states, “Social media changes the relationship between companies and customers form master and servant, to peer to peer.” (www.convinceandconvert.com) Businesses are able to use social media to make their consumers and followers feel that they are not only a part of the business, but that they matter enough to be informed on new updates regularly.

What businesses have you come across that are lacking in the social media category? Keep this is mind next time you explore businesses. See if you can make suggestions to help them better their interaction with social media.

Blessings,

Tiffany

Are You Paying Colleges Too Much?

MEAN2b:  Do a break-even analysis on a college class.  The typical college professor teaches seven classes and we’ll pay the “mythical professor” $50,000/yr or $60,000 or $80,000/yr [do all three scenarios].  Based on your tuition and average credits, develop a spread sheet that calculates break-evens at various size-levels.  Assume there is no other fixed cost than the professor’s salary [even though there is in the real world].  Then assess the findings of your model.  How do colleges “make money?”

After figuring out how many students were required to break even for a professor’s salary I was surprised at the little number of students it took. I don’t think that this research validated an accurate break even analysis. The above chart shows that the university is making a great deal of money off tuition when, in reality, a university has daily costs they must consider. The university has many other costs besides a professors salary that they have to budget. The more students in a class allow the university to make more money but the primary source of revenue is most commonly not tuition. Private schools don’t have the luxury of getting state funding like public schools which required private schools to rely on private funding and break even for professors’ salaries with the cost of tuition. By adding more students to a class the professor would, in reality, be making far beyond what the break even anaylsis suggests. Bethel relies primary of alumni and outside sources for their main source of revenue which also alters the estimated numbers. This MEAN assignment helped me to realize why private school tuition is much more costly then public school tuition and how, when I am rich and powerful, should donate lots of millions of dollars to Bethel.

For students who read this in 2032, you will be carrying on a conversation in the Tiffany Grounds that was named after me when I donated multi-millions to the expansion of Royal Grounds.    


Blessings,
Tiffany

Burn Energy by the Coca-Cola Company: Available in Mexico..and Globally!

Over Spring Break I had the opportunity to travel to Cancun, Mexico. While I was there I had kept my eyes posted for an energy drink that could encompass Mexican advertising as well as brand marketing. I wanted to find an energy drink that would compete with Professor Johnson’s energy drink collection. I was traveling through Cancun convenience shops and spotted “Burn” by Coca-Cola.

I found the drink in a local pizza shop. It was 128 Pesos ($11.00 in American money) and, even though it was expensive, I knew I had to get it. I bought the drink, before realizing it was from Coca-Cola, and found out when I got back to the United States it was offered here also. Being a bit naïve, I didn’t realize Coca-Cola was completely global. By purchasing this drink in Cancun I actually learned that Coca-Cola offers this drink in Africa, North and South America, Europe, Asia, Eurasia (Russia and Turkey) and Oceania (Australia, New Zealand). (Wikipedia)

Coca-Cola launched its partnership with snowboarding, skiing and skateboarding and to promote the energy drink has sponsored events across the world, but mostly in Europe. Burn Energy also has numerous snowboarding teams that branch throughout Europe.

Along with sponsoring numerous sports teams, you can also find other versions of Burn Energy as well as sizes and shapes. These include: Buzz (Japan), Burn Day, Burned Juiced Energy (Burn mixed with tropical juice), Burned Juice Berry, Burn Mocha Energy (coffee-flavored, non-carbonated) and Burn Citrus. (Wikipedia)

By purchasing a single energy drink, in an effort to add to Professor Johnson’s collection, I have learned that most beverage companies expand their brands to include numerous names, brands, and flavors of the same product. These companies have used global marketing in an attempt to monopolize the competition. If Monster’s prices increase and the consumers become unable to pay that price for the drink, they are going to switch to a cheaper brand like Burn or Rockstar. I realized, more than ever, on my trip to Cancun that marketing is EVERYWHERE you go. It is the price you pay for your plane ticket, the hotel you stay in, the type of bathing suit you pick, the food and drinks you buy, the type of shoes you are wearing and virtually everywhere.

Principles of Marketing has made me fascinated with how much marketing controls a consumers life. I never realized the extent that businesses and organizations go to gain the loyalty and attention of the regular consumer. Marketing is everyday life.

Now, go buy an energy drink and stimulate the economy.

Energized Daily!
Tiffany

Has Sketcher's Crossed the Line? Sex Appeal Gone Too Far...

For anyone that watched the Super Bowl (and continued watching after the horrible version of the National Anthem by the Black Eyed Peas) then you most likely saw the commercials. If you got a chance to glue your eyes to the television during what some say is the time where televisions greatest commercials are aired, then you surely saw Kim Kardashian’s commercial for Sketchers Shape Ups. She is signed by Sketchers to be the “face” of their latest athletic shoe, Shape-Ups, and upholds her sex appeal so well. During this commercial Kim Kardashain took the sex-appeal aspect of marketing to an entirely new level.

After watching the commercial I actually forgot what it was about. I would have to say that the advertisement did not live up to its purpose as an ad for a product; it instead seemed more like something I would find on the late night version of Cinemax through Comcast. I was rather intrigued as to the extent that Sketchers went in terms of sex appeal vs. product placement. The entire Shape-Ups commercial is 31 seconds long, but the actual product being sold does not appear until 22 seconds into the 31 second clip; the rest of the commercial is filled with Kardashian’s sweaty body and sexual innuendos. You can view the commercial below. 

After watching the commercial (and shutting your dropped open mouth with your hand) you realize that 2/3+ of the commercial do not feature the product, but instead have the viewer seeing innuendos and “hot” messages that have nothing to do with the Sketcher’s product. After the opening scenes make you double check that you are not watching the Spice Channel, Kardashian goes as far as to break up with her trainer saying, “I don’t know how to say this … you’re amazing, the best I’ve ever had, but things aren’t working out  ... it’s not someone else, it’s something else.” Camera shots then proceed to follow her body up and down and not until second 26 that she says, “Bye-bye trainer, hello Shape-Ups.” 

This commercial is a blatant example of “sex sells” and, with nothing else to this ad except for the shoes and Kardashian’s sweaty body; it becomes questionable if it is even a subliminal message. I did not see where Sketchers tastefully used sex appeal to compliment their product and I found it was rather tacky. The company included the name and picture of their product only once and it was with 4 seconds left in the entire commercial. The shoe company, usually known for their fun and wholesome commercials, had targeted an entirely new market with their latest Super Bowl commercial. The shoe is targeted towards women and men (mostly women) who have a desire to get fit, but I think they lost the approval by many parents, and possible buyers, after the company aired this commercial suitable for the Spice Channel.

Below is an old Sketchers commercial which included wholesome, fun marketing of their products.

Does subliminal advertising have an effect on us as consumers? I believe so but I think companies have taken it a bit too far. In Sketcher’s case they used sex appeal as their foremost form of advertising and, as interesting as it was to watch, it was actually awkward for the viewers who saw it. The company definitely sparked attention since the phrase “Sketchers” typed in on YouTube brings up only the Kim Kardashian commercials, but I don’t think it was the attention that the company desired. Parents always viewed Sketchers as a family-friendly brand with wholesome products but their newest commercial showed different. I think in the end it will end up hurting their brand even if it was just a Super Bowl commercial.

Here is a key note for any company who uses sex appeal as their primary source of product marketing - if it makes me feel awkward watching it with my dad who is sitting on the other side of the room .. I am not going to buy your product and you should not be airing this commercial.

Blessings,
Tiffany

Facebook... The Future in Advertising?

MEAN1b:  Research Facebook advertising.  How are newsfeeds being used to communicate advertising messages?  How do you feel about the viability of FB as a new advertising medium?  Will it replace most of the traditional media? 

Since 2004, with the creation of Facebook, social networking and advertising has rapidly peaked faster then I think we could have ever explained. It has become a resource for not only friends to connect with friends or family to connect with family whom they may not see often, but it has become a tool for organizations and businesses to promote new products, latest news and is now a way to send an RSVP to an upcoming event. Facebook has been used reach an entirely new demographic and promote products and/or businesses more than ever before. I decided I would find someone who uses Facebook as a promotions tool and get the scoop on how Facebook has offered their organization a new branch of advertisement.

When I was deciding on who I would interview a name popped into my head right away. I decided I would interview my mom, Diane, whom utilizes Facebook for everything it has to offer. Diane is involved in numerous organizations in the City of Coon Rapids, five to be exact, and I know she has used Facebook since its creation to promote each one of these organizations separately. Her use of Facebook for a promotions tool is a great example for how Facebook and social media are becoming more then a communication tool but rather a big electronic informative brochure.


Below you will find the interview for how Diane has utilized Facebook and all its advantages to advertise each organization as well as how Facebook has created more visibility for the organizations she is involved in.

Diane, you are involved in numerous organizations throughout the city and are an avid Facebooker. How have you used your love of Facebook to promote these organizations, if any way at all?

I can reach hundreds of my "friends" on FB and those "friends" can in turn reach all of their "friends" and so I end up being able to market my organizations to many, many more indivdiuals than I could ever have done using the traditional methods such as newspaper, etc.

Do the organizations you are involved with have Facebook pages and, if so, do you use Facebook to promote events that take place in each of these organizations?

Most of the organizations I'm involved with have their own "page" to advertise our group and more importantly, it's very easy to do an "event" notice on FB which contains all of the information and that notice can be sent to all those same "friends" that I mention above.

 

Do you think that advertising these promotions and events through Facebook have helped the events with increasing participation?

I do believe our participation in events has increased - the one big difference between FB and traditional methods of notification is that because the "friending" on FB is very selective you can target specific indiviudals, groups or organizations to promote the event.

 

Do you think that Facebook is going to replace traditional media like paper flyers and brochures, especially for the organizations for which you are involved with?

No, FB will never replace traditional media because although the FB usage is very high, there are still many, many individuals who are not on FB that we want to reach out to as well - in our case, the very young and the seniors are very important to our success and most of those individuals would not have a FB account.

 

By using Facebook to promote these events and create "Fan Pages" do you think it has helped the visibility of each of these organizations? Is so, how?

I certainly believe that using FB has added to the visibility of my organizations and we have reached a much broader and diverse base of individuals, although still being selective if we choose to do so, than we normally do with traditional media.

 

Seeing how much Facebook has grown since the creation of my own page in 2009 and how the social networking tool has become a new, FREE, way for businesses to promote and advertise more than ever before allows me to make an assumption that Facebook will become one of the primary ways business utilize online marketing. Business can take this free resource and expand their advertising more than ever before. From one Facebook page can be a link to websites, Twitter accounts, blogs, coupon sites, subsidiary links and the list goes on. By using Facebook businesses are opening new doors to greater successes then I believe were ever deemed possible. Newsfeeds have become a way to spread the word faster than ever before and, instead of reading a piece of paper, newsfeed advertisements allow a Facebook user to click on the Facebook page of the business/organization and be redirected to multiple links with information pertaining to the promotion being advertised through Facebook newsfeeds. For example, Lifetime Fitness is beginning their second “90-Day Challenge.” Coon Rapids Lifetime Fitness is participating in this event and Alana Burns, Department Head of Personal Training, utilizes the newsfeeds to get messages and promotions about the 90-Day Challenge to anyone who is fans of the Facebook page or friends with her. Below you can see how the newsfeeds have been utilized to promote the event for Lifetime Fitness members.

Millions of companies throughout the world have created a Facebook page and have started conducting business through it. By companies creating these pages they make their consumers feel as if they were a part of their business rather than a consumer outside of it. By these businesses making their consumers feel as if they are on a peer-to-peer level it allows the consumer to feel at ease when making purchases or conducting business with these companies.

Facebook advertisements have allowed consumers to keep in touch with businesses latest coupons, deals, promotions, hours, contact info and hot topics through Facebook alone. Even the TLC show, “Extreme Couponing” features a woman who scopes Facebook daily for the latest coupons to her favorite businesses. Even small, family-run businesses have created Facebook pages because they know it is the easiest, and fastest, form of advertisement. If you are looking for information on a company you can usually go to the search bar, type in the name and within a matter of minutes have more information then you were looking for. Consumers can “Like” their pages and instantly start getting newsfeed advertisement and updates from these businesses.

Facebook newsfeeds and advertisements are going to begin replacing traditional media. I don’t think that paper will ever be non-existent but for a society who focuses on “cheap and fast” the media advertising world will continue to flourish. Businesses can get free advertisements to one and spread to millions through Facebook. Companies are able to advertise more than ever before with a cost cheaper than ever before. As Jay Baer said, “The goal of social media is to turn customers into a volunteer marketing army.”


Happy Facebooking!
Tiffany

Twitter: Can You Really TWEET Celebs?

For MEAN 5 I was unsure what exactly to do. I had emailed Professor Johnson and he had told me that MEAN 5 had no substance because I was suppose to brainstorm an idea and then add the substance the question was lacking. As I pondered on exactly what to do my simple infatuation with Justin Bieber posed a question I have been often wondering – if you Tweet celebs, are they going to tweet you back?

Twitter was created so that its users can send (and read) messages what are known as Tweets. These messages are publicly visible and can be viewed by the user’s followers or the general public. If one Twitter account holder wants to send a message to another Twitter account holder via the messaging system all they need to do is include the “@” symbol followed by the username of who they are sending the message to and an instant Tweet is received. This form of social networking bridged the gap between celebrities and their fans. Fans that had Twitter accounts could now Tweet their favorite celebrities, sports players and famous icons and feel as if the celebrity would Tweet them back. Basically it was a way for the fans to feel as if they were best friends with their fellow Tweeter. Tweeter became a way to bridge the gap between fans and/or stalkers and mega-famous celebrities and icons.

It wasn’t until my obsession with Justin Bieber started that I really had the desire or knowledge to follow Twitter. I was sitting at my computer working on homework and, as usual, was sidetracked by the ever growing internet. I was listening to Bieber’s hit songs when an idea to scope out his Twitter came to mind. Well, I should have refrained by exploring the account because I became one of his most loyal followers. I was in shock when I noticed that fans had been Tweeting Justin and he had been replying. I had to stop what I was doing and focus on this new technology that could possibly allow me to talk to my favorite celebrities! This couldn’t be real. There is no way that celebrities would have time, or care, to Tweet back fans that send useless messages like, “I LOVE YOU” and “YOU ARE MY IDOL.” Like these celebs don’t already have enough to do that they would have time to Tweet a million messages across the world. This simple thought led to me to start doing research of the validity of these Tweet-backs. If these Tweets were in fact real this gave fans the idea that they were “talking” to these celebrities. I knew that I had to figure out the basis of these Tweets and found humor in the fact that fans would in fact say that they were having a conversation with these celebrities and would act as if they were friends.

Now, while I am researching the validity of these Tweets, keep in mind that I was debating creating a Twitter account for the mere reason of Tweeting Justin Bieber, but once I realized that I am almost 22 years old and he is a almost a 17 year old boy I thought twice about my decision. As the research for whether or not these celebrities truly Tweet their fans back was scarce I had no choice but to create a Twitter page. I tweeted a few big celebrities like Justin Bieber and Jennifer Lopez and then tried a few less famous celebs like Chelsea Lately but, with no surprise, I was not Tweeted back. I continued to stalk Justin Bieber’s page and see that he did actually Tweet back a few fans. Even though he did pick and choose I will give him the credit that he sent a few back. I can assume mostly girls in the rage of 15-17 but in any case the Tweet-backs did get sent.

As for me and my Twitter account, let me just say I didn’t find success. I created it with the intention of Tweeting Justin Bieber all night and starting a meaningful relationship (just kidding) but much to my surprise he wasn’t interested. I debated leaving my Twitter account open with the intention of finding a celebrity that would Tweet me back but once I figured out Joe Mauer didn’t have a Twitter I realized Tweeting a 16 year old boy and stalking celebrity Twitter account would not be some of my finer moments.

Basically, in conclusion, the mystery of whether celebrities Tweet-backs are valid is still open for discussion. For me the stalking of Twitter accounts and receiving no positive feedback proved that it is very rare you will receive anything back. It looks like I will stick to my ordinary life of listening to my Justin Bieber playlist and following his tour dates while one day dreaming that I will own a lock of the famous Justin Bieber hair.

As I think about all of the Twitter research I have done I just have one thing for you to keep in mind if you ever Tweet a celeb – Even though YOU have tweeted them it does NOT mean that you talked to or carried on a conversation with them. Even though you have awkwardly sent them, “Hey Kate Hudson. I love you and am one of your biggest fans. TWEET BACK” this does not mean you are now running in their inner circle. I am sorry to crush your hopes and aspirations of one day having coffee with these big time Hollywood names but often they have no idea who has just tweeted them (you could be their stalker for all they know) or it is their team of people updating their account. Well, I guess I could just say go get em’ and never give up.. maybe one day you will get that special Tweet you were waiting for.  

Note: If I am ever famous enough to have a Twitter account, you can feel free to Tweet me and I will make sure I Tweet you back!

Happy Tweetering,

Tiffany

Music Video Product Placement - Genius!

For anyone that has seen Britney Spears’s new video for “Hold It Against Me” you can understand that it summarizes the growing ideology of using music videos for palpable product placement. Her video spares no view on the placement for dating websites and big technological brands.

When Spears’s new video was premiered it was everything you would assume you could find in a Britney video. She was dancing in an underwear-like garment with semi-naked men dancers surrounding her. With the usual Britney effects it did however include a few new ideas for cashing in big buck – product placement. In one scene Britney is being lifted upward through a giant cylinder tunnel looking room that is filled from top to bottom with Sony TVs and monitors.

The more you watch the video the more you realize that you cannot avoid the fact that the Sony brand is blatantly displayed throughout the entire video. From the Sony TVs and the Sony logo being flashed numerous times throughout the entire video to the PlentyOfFish dating website that Britney explores and finds a man on make it extremely hard not to make notice of the subliminal advertising that is not so subliminal. If you watch the video below and scroll to 1:34 and 2:40 you will see the obvious placement of both these companies. It was estimated that Spears made over $500,000 alone on the placement of these advertisements in her video.  

We know that music video product placement is becoming a growing trend, not only from Spears’s video but Lady Gaga’s as well. In her “Telephone” music video, the diva also featured the free-to-use dating site PlentyOfFish, Diet Coke and Virgin Mobile. I think that product placement in videos is going to become one of the best ways to sell a product.

After doing some research on the advertisements in Spears’s video, according to PopEater (www.PopEater.com), “Plenty Of Fish has reported a 20 percent increase in traffic to their site since Spears debuted her video last week.” It was not until I was eating dinner at a family friend’s house that I realized how genius music video product placement was. I was sitting at the table and my friend Tina had been telling me about this new dating website she had heard of and how her co-worker had found success on this new dating website which happened to be PlentyOfFish (Tina had never seen Britney or Gaga’s video and didn’t know the product had been placed in either of them). She then proceeded to tell me that since her co-worker found success her boss had followed her and explored the site as well. Tina explained how both women had gone on numerous dates with the men they found on the website and were currently still seeing them. When I got home from dinner I was online networking and it was by a fluke that I came across Spears’s video. I decided to watch it and my mouth dropped when I saw the PlentyOfFish website placed in the video. It was then I knew where these co-workers had found the video and how impactful these product placements are which led me to this blog.

I find it mere genius that celebrities would charge for product placement in their videos and/or television shows. If one celebrity is not using this form of profit, another will. It leads us to the question why we are using it – it is because it works!

Truly,

Tiffany

Born From YouTube to World Sensation - Justin Bieber

It was just four years ago that a young Justin entered a local singing competition at just 12 years of age and took second place. He had never taken voice lessons or had a coach but still wowed the audience. He and his mom wanted to share his victory with friends and family far away so they began uploading Justin’s videos on YouTube. This is where the history begins. It was not only Justin’s friends and family that enjoyed his videos but the general public overall loved them just as much. Justin ranked in over 10,000,000 views simply from word or mouth. He sang his own versions of everything from Ne-Yo to Stevie Wonder. Below is Justin's video from his singing competition.

It was not more than seven short months after these videos had been uploaded to YouTube that former So Def Jam marketing executive, Scooter Braun, came across Justin’s videos while randomly searching for videos of new artists. He immediately got in contact with the boy and flew him and his mother out to GA to meet with his team of professionals. Scooter drove Justin and his mom to the studio and they happened to see Usher in the parking lot. It was only a short time later that Usher realized he was in the presence of a soon-to-be superstar. Justin signed with Raymond Braun Media Group (RBMG) which led to a recording contract with Island Records. This is where Justin’s certified platinum album in the US and twice platinum in Canada and UK, My World, was created.

It hasn’t been more than four years since the debut of Justin Bieber and already he has been awarded and nominated for numerous prestigious awards over these past years. He was awarded Artist of the Year at the 2010 American Music Awards and was nominated for Best New Artist and Best Pop Vocal Album at the Grammy Awards this year. When his single, My World 2.0 was released it debuted at number one on the Billboard 200 charts making Justin the youngest solo male act to top the charts since Stevie Wonder had done it in the year 1963. Justin’s hit movie, Never Say Never 3D, grossed over 12 million dollars on its first day and a total of $30.3 million for its opening weekend. It came in number two (the first was Miley Cyrus’s film, Hannah Montana and Miley Cyrus: Best of Both Worlds Concert) in the top selling music-documentary films.

With the hit success of Justin Bieber on YouTube it gives a true testament to just how powerful these social media sites are. He was 12 years old when his mom simply uploaded a video for family and friends to see and Justin Bieber is now one of the most successful solo male artists to come around and he has yet to hit puberty. I can proudly admit I am a dedicated fan to the “Bieber Fever” I watch his videos numerous times per day on YouTube, I waited in line at the midnight premiere for his movie, Never Say Never 3D and I proudly wear a shirt with his face on it to the gym. To think that this young kid who entered a singing competition one day and a short seven months later he was creating double platinum selling albums is ludicrous. This is a prime example of how social media is going to take over the world. If it was not for YouTube and a simple search engine hundreds of millions of girls around the world would not have “Bieber Fever” and would thus have to find someone else to be smitten over. Justin’s success is just a prime example for how social networking sites such as Facebook, YouTube and Twitter could eventually be the basis for how we run our new, innovative society. He can barely drive a car legally, but the boy can sell out Madison Square Garden in 22 minutes. Is YouTube to thank for his success? Obviously. Without YouTube Justin Beiber would still live in Stratford, Ontario and be singing in local competitions and I wouldn’t have a young, teeny-bopper to idolize. The makings of YouTube and Facebook are going to change our society in ways we cannot explain over the next five years.

Below is one of my favorite Justin videos – enjoy!!

Happy Bieberfying!

Tiffany

(Source: Information on Justin's childhood and what led his his success was obtained through http://www.justinbieberbiography.net/)