by AMP Insights, IPR, and Interactive Teams
1. What are your reasons for being there – what are your goals and objectives?
Before entering any communications medium, brands must outline appropriate and realistic objectives. Determine your reasons for entering this space (i.e., to enter into a dialogue with your current consumers, to connect with and show value to a new audience, etc.) and begin with modest goals that suit your brand and make sense for the platform itself.
Implication: Be realistic about how your efforts in this space can deliver against your objectives. For instance, social networks are two-way communication channels that foster connection and self-expression. They are ineffective as a one-way marketing channel for disseminating brand messages.
2. Do you understand how your audience is using this space?
First and foremost, social networks are communication platforms for members of that community. This space is hallowed ground and its users are selective about who they allow to enter this world. Social networks are a highly personal space used for self-expression, connection, and creativity.
Implication: Very few brands have had success with campaigns on social networks because the community is self-sustaining and self-regulating. Sudden appearances by brands that do not add value to or have purpose in this space can be viewed as irrelevant and annoying interruption.
3. Are you able to offer something of meaning and value to the community?
Brands that make an appearance in this space must have something compelling to offer in exchange for users’ time and attention. Brands have a better chance of being invited into their social spheres when they enter in the spirit of generosity (rather than self-promotion or self-interest).
Implication: Users need an incentive to interact with your brand. Arrive bearing tools, applications and other content that adds to the users’ social experience in entertaining, innovative or useful ways. Facilitate easier connections within their existing groups and provide them with ways to share and exchange content with one another.
4. Are you prepared to accept and react to negative comments?
Not everyone likes your brand and not everyone will be thrilled with your presence there. While it is scary to think about potential negative comments that may be posted, detractors are a reality here.
Implication: Be prepared to address their comments and concerns head on. Having direct access to your detractors can help you gauge the health of your brand, identify areas of improvement, and foster better (and more transparent) relationships with your target consumers.
5. Do you have the resources to manage and maintain a long-term commitment?
Social networks are fueled by dynamic and ongoing exchanges. Any brand presence must be updated, maintained and refreshed on a regular basis.
Implication: Don’t show up unless you’re willing to commit the appropriate time and resources to sustaining an active and ongoing dialogue. Inactivity in this space will be met with indifference.
Read more!
Tuesday, March 31, 2009
Friday, March 27, 2009
Ready, Set… Text!
By Tamara Grindrod, Account Manager
People do everything fast these days. We walk fast, we eat fast we talk fast. The fastest way to “talk” is through technology: e-mail, instant message and text message. Our ability to do things quickly has become a source of pride because it translates into productivity and skill.
Like anything that requires skill, you have to practice. Now that text messaging has become a completely acceptable form of communication with friends, family and even clients, we are getting more practice than ever. Text messaging has become second nature to most children, teens and young adults. In fact, 42% of teens aged 13-19 can text blindfolded, report trade group CTIA-The Wireless Association and Harris Interactive. Even adults have found that you can, in fact, teach an old dog new tricks when it means you are satisfying a business need or your kids will actually respond to you.
Now that the whole world has been texting for a few years, the real all-stars are starting to stand out. In 2006, 16-year-old Ang Chuang Yang of Singapore typed a standard text message (SMS – short message service)of 160 characters and 26 words in 41.52 seconds.
Inspired by the need for speed and the desire to find our own Ang Chuang Yang, AMP Agency worked with client, U.S. Cellular®, to develop the 2009 Speed Text Tournament. At participating U.S. Cellular® events, consumers can play the Speed Text game using provided QWERTY handsets and can register their time for the tournament. With 10 rounds of decreasing time limits and time bonuses, participants must text in 26 character phrases without making any mistakes. The 10 fastest times will receive valuable prizes at the end of the tournament, including a $10,000 Grand Prize, just for texting.
By incorporating an everyday skill with U.S. Cellular products and services in an interactive way, the Speed Text Tournament will provide a memorable event experience for all ages. Furthermore, by allowing consumers to enter as many times as they like, it encourages them to attend more U.S. Cellular events, to spend more time on site and to spread the word to their friends in an attempt to win the Grand Prize.
Think you have the fastest fingers? Check our http://www.ursoconnected.com/ to find out more information on U.S. Cellular event locations and Speed Text Tournament details. Read more!
People do everything fast these days. We walk fast, we eat fast we talk fast. The fastest way to “talk” is through technology: e-mail, instant message and text message. Our ability to do things quickly has become a source of pride because it translates into productivity and skill.
Like anything that requires skill, you have to practice. Now that text messaging has become a completely acceptable form of communication with friends, family and even clients, we are getting more practice than ever. Text messaging has become second nature to most children, teens and young adults. In fact, 42% of teens aged 13-19 can text blindfolded, report trade group CTIA-The Wireless Association and Harris Interactive. Even adults have found that you can, in fact, teach an old dog new tricks when it means you are satisfying a business need or your kids will actually respond to you.
Now that the whole world has been texting for a few years, the real all-stars are starting to stand out. In 2006, 16-year-old Ang Chuang Yang of Singapore typed a standard text message (SMS – short message service)of 160 characters and 26 words in 41.52 seconds.
Inspired by the need for speed and the desire to find our own Ang Chuang Yang, AMP Agency worked with client, U.S. Cellular®, to develop the 2009 Speed Text Tournament. At participating U.S. Cellular® events, consumers can play the Speed Text game using provided QWERTY handsets and can register their time for the tournament. With 10 rounds of decreasing time limits and time bonuses, participants must text in 26 character phrases without making any mistakes. The 10 fastest times will receive valuable prizes at the end of the tournament, including a $10,000 Grand Prize, just for texting.
By incorporating an everyday skill with U.S. Cellular products and services in an interactive way, the Speed Text Tournament will provide a memorable event experience for all ages. Furthermore, by allowing consumers to enter as many times as they like, it encourages them to attend more U.S. Cellular events, to spend more time on site and to spread the word to their friends in an attempt to win the Grand Prize.
Think you have the fastest fingers? Check our http://www.ursoconnected.com/ to find out more information on U.S. Cellular event locations and Speed Text Tournament details. Read more!
Wednesday, March 25, 2009
The Art of The Brainstorm
by Matt Rainone, Account Manager
When most people hear the word “brainstorm”, images of a wild, free-for-all meeting that may or may not include a game of ping pong often spring to mind. And while “free-for-all” may not be too far off, maybe “controlled chaos” is more accurate, it is still a meeting and an effective brainstorm must have some semblance of order. Brainstorms can be a highly effective tactic for coming up with stellar ideas; however they can be a complete waste of time if they are not done right.
Effective and Efficient
A common stumbling point surrounding brainstorms is that although they are usually held in a casual atmosphere, they are still meetings. And mind-blowing creative ideas aside, if you step into any meeting without a plan and an objective, you’re about to waste everyone’s time. Ideally, everyone who has been invited to the brainstorm should be briefed on the particular ask for two reasons. The first is that it gives everyone a chance to put some thoughts down on paper, especially those that may not be as quick on their feet as others. Second, you’re most likely going to cut the meeting introduction down to a two-minute refresher rather than a 10 minute overview.
The Brainstorm Tactics
So now everyone’s ready to brainstorm. There’s this one rule that always seems to get thrown around during a brainstorm and it’s that “no idea is a bad idea”. Okay, let’s pretend that this is true, which we all know it isn’t because we have all been in a brainstorm where some famously terrible ideas have come up (ironically, it’s those really bad ones that seem to resurface at just about every brainstorm as an ongoing joke). But for the sake of argument, let’s say it’s true.
Over a year ago, AMP found itself in a brainstorm for Garnier Fructis, one of our long-time clients. Now, the chances of AMP working with NASA to create a spaceship in the shape of a Garnier Fructis bottle that exhausted green fire may have been somewhat out of the ordinary, possibly illegal, and most likely not permissible by the known laws of physics. However that didn’t stop us from throwing the idea out there. Where did we land? Well, it wasn’t in Cape Canaveral. Instead we were able to develop a program that combined a college invasion, bathroom takeovers, Garnier Fructis’ Official Hair Care Sponsorship of American Idol and a shower stall equipped with a karaoke system. Not too different, right? The Garnier Fructis Sing in the Shower Contest (http://www.garnier.com/idol) was born. And 12 college campuses, hundreds of participants showing everyone how they rock their style, and a number of made-over bathrooms later, the idea was a reality. How did we get there? Well, we can’t quite give that away, but let’s just say it involved a sound strategy, an awesome brainstorm and solid development.
Oh yea, and magic.
Read more!
When most people hear the word “brainstorm”, images of a wild, free-for-all meeting that may or may not include a game of ping pong often spring to mind. And while “free-for-all” may not be too far off, maybe “controlled chaos” is more accurate, it is still a meeting and an effective brainstorm must have some semblance of order. Brainstorms can be a highly effective tactic for coming up with stellar ideas; however they can be a complete waste of time if they are not done right.
Effective and Efficient
A common stumbling point surrounding brainstorms is that although they are usually held in a casual atmosphere, they are still meetings. And mind-blowing creative ideas aside, if you step into any meeting without a plan and an objective, you’re about to waste everyone’s time. Ideally, everyone who has been invited to the brainstorm should be briefed on the particular ask for two reasons. The first is that it gives everyone a chance to put some thoughts down on paper, especially those that may not be as quick on their feet as others. Second, you’re most likely going to cut the meeting introduction down to a two-minute refresher rather than a 10 minute overview.
The Brainstorm Tactics
So now everyone’s ready to brainstorm. There’s this one rule that always seems to get thrown around during a brainstorm and it’s that “no idea is a bad idea”. Okay, let’s pretend that this is true, which we all know it isn’t because we have all been in a brainstorm where some famously terrible ideas have come up (ironically, it’s those really bad ones that seem to resurface at just about every brainstorm as an ongoing joke). But for the sake of argument, let’s say it’s true.
Now what? Can you just say “go” and expect the next big idea? Sure, why not, we’re all creative. Sometimes however, it takes a little extra help. Here are three sample brainstorming activities that we employ at AMP to get those creative juices percolating:
- The Word Association and the Mind Map: First determine what characteristics or brand attributes are important to the challenge. These act as your inspiration for the big idea. It can start as a word as simple as “fun”. From there, much like a web, these words begin to come together to form something bigger. All of a sudden, 2 words that may have nothing in common come together to create a great concept.
- Divide and Conquer: This brainstorming tactic is less of a “storm” and more of a slow-moving hurricane. Divide and Conquer most often starts with a word association or some other activity to get some ideas flowing. Then, the larger group is broken up into smaller groups who spend the next few days blowing out their respective ideas. At the end of the breakout period, each of the groups come together to present their ideas. This particularly useful when you don’t have a great deal of time to come up with a few solid concepts.
- The Worst Idea Ever: This one is particularly fun. Rather than asking “what is the best thing that we could ever do?” you do the opposite. You ask “what is the absolute worst idea that is so off strategy and bizarre that it could never work?” Once you identify that, it’s as simple as working backwards. It’s a good way to get outside of your comfort zone, and more often than not, your crazy idea is only a few steps away from a genius idea.
Over a year ago, AMP found itself in a brainstorm for Garnier Fructis, one of our long-time clients. Now, the chances of AMP working with NASA to create a spaceship in the shape of a Garnier Fructis bottle that exhausted green fire may have been somewhat out of the ordinary, possibly illegal, and most likely not permissible by the known laws of physics. However that didn’t stop us from throwing the idea out there. Where did we land? Well, it wasn’t in Cape Canaveral. Instead we were able to develop a program that combined a college invasion, bathroom takeovers, Garnier Fructis’ Official Hair Care Sponsorship of American Idol and a shower stall equipped with a karaoke system. Not too different, right? The Garnier Fructis Sing in the Shower Contest (http://www.garnier.com/idol) was born. And 12 college campuses, hundreds of participants showing everyone how they rock their style, and a number of made-over bathrooms later, the idea was a reality. How did we get there? Well, we can’t quite give that away, but let’s just say it involved a sound strategy, an awesome brainstorm and solid development.
Oh yea, and magic.
Thursday, March 19, 2009
Conversations with Consumers
We recently interviewed 14 consumers between the ages of 20 and 60 years old. Our conversations ranged from a discussion on their latest purchases to whether or not the recession has impacted their loyal to certain brands to whether or not they are still buying green. Here is what we heard.
Gone are the days of spontaneous purchases and brand loyalty is starting to wavier
We wanted to know what consumers where buying, so we asked them about the most recent purchases and whether or not that purchase was planned or spontaneous. Purchases are planned – here is what consumers are buying:
“Two vintage jackets at a swap meet in Pasadena for $10 each and a pair of sunglasses that were planned for about $200.” Aaron, 24, Allston, MA.
“I just bought 2 new pet gates, and it was very planned. The purchase was delayed until funds were available. Cost = $150. The third item was a book, and it was planned also. Cost = $7.” Lisa, 44, Rochester, NY.
“The last three things I purchased were a monitor for work, a car and an aquarium.” Joe, 27, Allston, MA.
“I bought some dress shirts, Nike dunk sneakers and Freedom Trail tour tickets for my friends who are coming to visit. All were planned purchases. I spent ~$30 a piece on the dress shirts, $68 on sneakers and $27 for the 3 tickets.” Jacob, 25, Sharon, MA
All consumers we spoke to admit that brand loyalty is most certainly wavering and most are actively choosing price over brand name when making purchases. We asked consumers if what factored into their purchase decisions and whether or not they were still buying their favorite brands or if price was playing a greater role in their purchase decisions?
“I guess most of my purchasing is in the way of groceries! Not very exciting, however, that’s what my answers will be based upon…. I tend to shop for the best bargain. I’m finding that the quality of most items isn’t that different from the name brand and the cost is significantly less.” Kathy, 54, Rochester, NY.
“Brand loyalty is still important however judging by the higher than expected earnings of Wal-Mart and similar "bargain" companies we can assume at least a temporary shift in priority to cost based purchases.” Justin, 24, Boston, MA
“Brand loyalty is definitely wavering. Most people I know, including myself are no longer loyal to our favorite brands because price has become the most important purchasing influence.” Iona, 32, Rochester, NY
Going Green
Consumers are a little bit mixed about buy green (i.e. organic or all natural). Some consumers believe that buying green is just too expensive while others believe that it is worth the added cost.
“Organic is usually way too expensive…. If it’s on sale, I’ll buy it, but normally the price is way out of line. Also, how do I really know if it is ‘organic’ or ‘green’, maybe it’s just a meaningless label….I’m way too skeptical….” Kathy, 54, Brockport, NY.
“Strictly cost. If it is cost effective and green, GREAT! If the price is a little more, I will not pay the extra.” Holly, 37, San Francisco, CA
“Natural/green products are important to me because they are just better for you and the environment overall. I try to buy organic food when it is available…I am willing to pay a little bit more for organic food and cleaning products because I think it is my little way of doing my part.” Christina, 20, Boston, MA
“Price is still winning vs organic, but not by as much as brand loyalty. If the prices were not too different, I would pick organic.” Lisa, 44, Rochester, NY Read more!
Gone are the days of spontaneous purchases and brand loyalty is starting to wavier
We wanted to know what consumers where buying, so we asked them about the most recent purchases and whether or not that purchase was planned or spontaneous. Purchases are planned – here is what consumers are buying:
“Two vintage jackets at a swap meet in Pasadena for $10 each and a pair of sunglasses that were planned for about $200.” Aaron, 24, Allston, MA.
“I just bought 2 new pet gates, and it was very planned. The purchase was delayed until funds were available. Cost = $150. The third item was a book, and it was planned also. Cost = $7.” Lisa, 44, Rochester, NY.
“The last three things I purchased were a monitor for work, a car and an aquarium.” Joe, 27, Allston, MA.
“I bought some dress shirts, Nike dunk sneakers and Freedom Trail tour tickets for my friends who are coming to visit. All were planned purchases. I spent ~$30 a piece on the dress shirts, $68 on sneakers and $27 for the 3 tickets.” Jacob, 25, Sharon, MA
All consumers we spoke to admit that brand loyalty is most certainly wavering and most are actively choosing price over brand name when making purchases. We asked consumers if what factored into their purchase decisions and whether or not they were still buying their favorite brands or if price was playing a greater role in their purchase decisions?
“I guess most of my purchasing is in the way of groceries! Not very exciting, however, that’s what my answers will be based upon…. I tend to shop for the best bargain. I’m finding that the quality of most items isn’t that different from the name brand and the cost is significantly less.” Kathy, 54, Rochester, NY.
“Brand loyalty is still important however judging by the higher than expected earnings of Wal-Mart and similar "bargain" companies we can assume at least a temporary shift in priority to cost based purchases.” Justin, 24, Boston, MA
“Brand loyalty is definitely wavering. Most people I know, including myself are no longer loyal to our favorite brands because price has become the most important purchasing influence.” Iona, 32, Rochester, NY
Going Green
Consumers are a little bit mixed about buy green (i.e. organic or all natural). Some consumers believe that buying green is just too expensive while others believe that it is worth the added cost.
“Organic is usually way too expensive…. If it’s on sale, I’ll buy it, but normally the price is way out of line. Also, how do I really know if it is ‘organic’ or ‘green’, maybe it’s just a meaningless label….I’m way too skeptical….” Kathy, 54, Brockport, NY.
“Strictly cost. If it is cost effective and green, GREAT! If the price is a little more, I will not pay the extra.” Holly, 37, San Francisco, CA
“Natural/green products are important to me because they are just better for you and the environment overall. I try to buy organic food when it is available…I am willing to pay a little bit more for organic food and cleaning products because I think it is my little way of doing my part.” Christina, 20, Boston, MA
“Price is still winning vs organic, but not by as much as brand loyalty. If the prices were not too different, I would pick organic.” Lisa, 44, Rochester, NY Read more!
Wednesday, March 18, 2009
Fun Facts
We tapped into our Pulse Network to get a better understanding of what causes Millennials are supporting and to get a better understanding of where they get information on different brands. Here are the results from our survey of approximately 100 Millennials between the ages of 16 and 22 years old.
For a Good Cause or Just Because?
As a group, Millennials are pro-social. They do give back and this month's Pulse Survey re-confirmed our belief that they do volunteer on a regular basis. In fact,
For a Good Cause or Just Because?
As a group, Millennials are pro-social. They do give back and this month's Pulse Survey re-confirmed our belief that they do volunteer on a regular basis. In fact,
- Only 10% stated that they never volunteer
- 18% stated that they don't volunteer often
- 51% stated they volunteer sometimes
- 21% stated they volunteer all the time
We were impressed with these numbers but we really wanted to understand why they were volunteering - was it a passion for a particular cause that drove them to donate their time? Or were they just passionate about doing good. The survey results tell us the answer lies somewhere in the middle. We asked respondents, how involved are you in supporting a cause?
- 14% stated I am not at all involved in supporting a causes
- 49% stated I support causes but I'm not too involved
- 26% stated I'm somewhat involved in supporting causes
- 12% stated I am extremely involved in supporting causes
Causes that respondents are the most passionate about include the following:
- The environment
- Education
- Hunger
- Homelessness
- Teen Suicide
- Human Rights
Online Resources for Product Information
Millennials seem to be really well informed. As digital natives, this group are experts at finding information and finding it quickly. We wanted to learn what some of their favorite online resources were for information on brands. We asked them to select which websites they have used to help them research products and brands. Here is what they told us
- 38% I don't research products or companies online
- 37% Consumer Reports
- 27% Facebook
- 24% CNET
- 18% Other (i.e. Amazon, Google, Wikipedia, Company Website)
- 11% MySpace
- 3% Twitter
We will be reaching out to our Pulse Network again next month. If you have any questions you would like us to ask, please let us know at frequency@ampagency.com.
Thursday, March 12, 2009
Social Media Personality
By Ellen Rienzi, Associate Planner
Last week, it seemed like every website whether blog, newssite, or gossip column was talking about Twitter. While the service has been on everyone’s radar for quite some time, the sudden popularity explosion has everyone talking. The last numbers I saw say 11% of Americans are tweeting and that number was growing rapidly. Oh, and “tweet” was one of Time Magazine’s top 10 buzz words of 2008.
Some brands like Zappos and Best Buy have jumped right in using the site to connect with customers and extend their customer service operations. In fact, Zappos CEO has become somewhat of a Twitter celebrity with over 200,000 followers. Proctor & Gamble saw the potential of the site last night as their “Digital Hack Night’ in which digital media executives and P&G marketers sold Tide t-shirts for charity through social media networks reached Twitter’s top 10 trending topics.
Like Facebook, many brands see Twitter as this goldmine of everyone they could possibly want to talk to. But like more traditional media, it’s becoming increasingly important to understand who is using these sites. As social media continues to proliferate beyond Facebook vs. MySpace, we will see distinct personalities emerge. It will not be just tweeting vs. poking (do people even poke anymore?). To compete with the big names, new social media ventures will have to demonstrate a distinct personality that users can truly relate to.
Understanding the differences between these sites, and more importantly their audiences, is key to navigating the world of social media. Like other media, evaluating which sites fit with your brand’s personality will help you communications remain genuine and consistent. Read more!
Last week, it seemed like every website whether blog, newssite, or gossip column was talking about Twitter. While the service has been on everyone’s radar for quite some time, the sudden popularity explosion has everyone talking. The last numbers I saw say 11% of Americans are tweeting and that number was growing rapidly. Oh, and “tweet” was one of Time Magazine’s top 10 buzz words of 2008.
Some brands like Zappos and Best Buy have jumped right in using the site to connect with customers and extend their customer service operations. In fact, Zappos CEO has become somewhat of a Twitter celebrity with over 200,000 followers. Proctor & Gamble saw the potential of the site last night as their “Digital Hack Night’ in which digital media executives and P&G marketers sold Tide t-shirts for charity through social media networks reached Twitter’s top 10 trending topics.
Like Facebook, many brands see Twitter as this goldmine of everyone they could possibly want to talk to. But like more traditional media, it’s becoming increasingly important to understand who is using these sites. As social media continues to proliferate beyond Facebook vs. MySpace, we will see distinct personalities emerge. It will not be just tweeting vs. poking (do people even poke anymore?). To compete with the big names, new social media ventures will have to demonstrate a distinct personality that users can truly relate to.
Understanding the differences between these sites, and more importantly their audiences, is key to navigating the world of social media. Like other media, evaluating which sites fit with your brand’s personality will help you communications remain genuine and consistent. Read more!
Friday, March 6, 2009
Staying in Touch with Consumers
By Katie Dennis, Senior Planner, Consumer Insights
I've been thinking lately about what it takes for a brand to really know their consumers. Yes, facilitating and sustaining an ongoing dialogue with them is an important commitment to make, but there are also relatively small things brands can do to ensure they are keeping in touch with their customers.
I noticed one of these small gestures happen a few months ago when shopping with my fiancé at a Camper store in Boston (for those not familiar, Camper is a European shoe brand known for contemporary, well-designed leather footwear)
After deciding which pair to buy, the sales associate asked to take a photo of him holding his newly-acquired footwear. He said that the company's marketing people like to get a look at their customers' personal style alongside their selected pair of shoes.
As a marketer, I thought - what a smart, low-effort way to (literally) get a snapshot of your customer. With this one small act at the register - and at no extra cost to Camper - the brand is able to capture a revealing slideshow of their customer base.
Whether used to match shoe model with customer style personas, or for inspiration from how consumers incorporate the brand into their look, this undoubtedly keeps Camper one step closer to their customer base.
photo source: www.camper.com Read more!
I've been thinking lately about what it takes for a brand to really know their consumers. Yes, facilitating and sustaining an ongoing dialogue with them is an important commitment to make, but there are also relatively small things brands can do to ensure they are keeping in touch with their customers.
I noticed one of these small gestures happen a few months ago when shopping with my fiancé at a Camper store in Boston (for those not familiar, Camper is a European shoe brand known for contemporary, well-designed leather footwear)
After deciding which pair to buy, the sales associate asked to take a photo of him holding his newly-acquired footwear. He said that the company's marketing people like to get a look at their customers' personal style alongside their selected pair of shoes.
As a marketer, I thought - what a smart, low-effort way to (literally) get a snapshot of your customer. With this one small act at the register - and at no extra cost to Camper - the brand is able to capture a revealing slideshow of their customer base.
Whether used to match shoe model with customer style personas, or for inspiration from how consumers incorporate the brand into their look, this undoubtedly keeps Camper one step closer to their customer base.
photo source: www.camper.com Read more!
Tuesday, March 3, 2009
Death of an optimistic generation?
By Katie Dennis, Senior Planner, Consumer Insights
We've had many discussions with clients and colleagues about how consumer attitudes are shifting in today's economic climate, and whether or not these changes will endure.
Many of our clients' offerings are geared toward Millennials (those born between 1979-2001), so we have been keeping an especially close eye on the changes emerging within this audience.
Millennials are categorized as a confident, optimistic and entitled generation; but, can they remain positive in the face of adversity, uncertainty and forced frugality?
An omnibus survey conducted in December by StrategyOne on behalf of Pepsi - a company that recently overhauled its branding to reveal a newly optimistic identity - found that even though 95% of Millennials say it's important to maintain a positive outlook on life, 56% feel anxious about their lives now.
As Millennials are faced with the harsh realities of a weakened economy, can a generation not used to being told "no" learn to live without? Will older Millennials have a harder time adjusting than their younger counterparts? Can their optimism prevail?
Anxiety and uncertainty are very real (and very new) feelings for these consumers. Brands must strike the right balance between offering Millennials transparency while still offering them hope. Messages that speak to resilience and support during difficult times rather than doom and gloom will play well with this once unshakably optimistic audience.
Watching how Millennials are impacted and shaped by these difficult times can give us a glimpse into our future. As the economy worsens in the months ahead, as many experts are predicting, we here at AMP will continue to explore the changes taking place in the hearts and minds of Millennials, as well as the implications these changes have on our culture and on our clients. Read more!
We've had many discussions with clients and colleagues about how consumer attitudes are shifting in today's economic climate, and whether or not these changes will endure.
Many of our clients' offerings are geared toward Millennials (those born between 1979-2001), so we have been keeping an especially close eye on the changes emerging within this audience.
Millennials are categorized as a confident, optimistic and entitled generation; but, can they remain positive in the face of adversity, uncertainty and forced frugality?
An omnibus survey conducted in December by StrategyOne on behalf of Pepsi - a company that recently overhauled its branding to reveal a newly optimistic identity - found that even though 95% of Millennials say it's important to maintain a positive outlook on life, 56% feel anxious about their lives now.
As Millennials are faced with the harsh realities of a weakened economy, can a generation not used to being told "no" learn to live without? Will older Millennials have a harder time adjusting than their younger counterparts? Can their optimism prevail?
Anxiety and uncertainty are very real (and very new) feelings for these consumers. Brands must strike the right balance between offering Millennials transparency while still offering them hope. Messages that speak to resilience and support during difficult times rather than doom and gloom will play well with this once unshakably optimistic audience.
Watching how Millennials are impacted and shaped by these difficult times can give us a glimpse into our future. As the economy worsens in the months ahead, as many experts are predicting, we here at AMP will continue to explore the changes taking place in the hearts and minds of Millennials, as well as the implications these changes have on our culture and on our clients. Read more!
Monday, March 2, 2009
Getting Hammered by Pricing
by Steve McCall, Vice President of Strategic Marketing
I was at an airport bar recently, drinking a pint that cost roughly the amount of money I have remaining in my 401k. While I would normally never pay $11.50 for a beer that didn’t promise additional flavor, a new life, or at least come with a burger, or SOMETHING, and I mean anything as an added benefit, a few things led me to this decision. First, I had just learned that I would be spending the next 4 hours in the airport, so I had some unplanned extra time on my hands. Next, the reason provided for my additional 4 hour wait was “mechanical issues” of the plane I was to later board, a detail I wish I had not been privy to. Lastly, in addition to being a rather large fan of beer, I had enough money in my wallet to pay for said beer.
In addition to this perfect storm of suds which had brewed up for me personally, there was something larger at play behind this lager pricing. It was either the beer speaking to me directly, or it was a flashback to a marketing class somewhere preaching about the economic theory of supply and demand. Of course they will charge $11.50 for the beer, because they know that air travel these days drives people to drink, and there are limited options at that moment in time when you find out that you will be spending the next 4 hours of your life in an airport waiting to board a plane, that may or may not get you to your final destination. While this is a relatively elementary example of the theory and the airlines have been operating on a pricing model built on up to the minute market factors for years, there have been some really interesting recent examples of product pricing on a micro level. Products priced strictly on a consumer generated cost, a number of specific market criteria at a moment in time, or via an escalating value scale for the consumer with an escalating price point. Worth checking out if you, you know, find yourself waiting for a plane some day:
Radiohead – Pay What You Want
In November 2007, Radiohead launched the album “In Rainbows” in digital format, with the offer to consumers to “pay what you want”. A groundbreaking model at the time, giving consumers full control of the price they wanted to pay for the album. From a sales perspective, there’s some interesting comScore data that suggests approximately 40 – 50% of consumers who downloaded the album paid some level of value for it beyond free. Since not much is known about the profits, it’s hard to tell how Radiohead fared with this model, which cut out the middle man/record label in the process.
Josh Frees – Former Nine Inch Nails Drummer
In all candidness, I had never heard of this guy before, but that is partially the beauty to the approach he’s taking to launch his new album, “Since 1972” via digital download. For the base price of $7, consumers get the digital download of the album and 3 videos. For $5,000 you get the album, a private tour of Disneyland, and to get drunk with Josh. For $75,000 you get the album, and Josh in your band for a month. There’s a lot of other rather funny pricing options, and while it’s not entirely clear if this is a real offer, or just designed to get publicity, it’s a very interesting concept.
San Francisco Giants – Dynamic Ticket Pricing
Based on a number of factors ranging from weather, to opposing team, day of the week, to starting pitchers, the San Francisco Giants this year will offer on demand pricing for 2,000 of their hardest to sell tickets at a cost anywhere from $5 to $50. I wonder if the beer price will fluctuate based on the score of the game?
So, particularly in a down economy, what types of things are you doing to ensure your product or services are priced appropriately? Are you conducting research to understand the consumer demand for your product? Brainstorming with creative people to generate new price-based promotional models? Developing the most cost efficient media plan? We’re always open to discussing and brainstorming new ideas, regardless of your category or industry. And the beer is always on us. Read more!
I was at an airport bar recently, drinking a pint that cost roughly the amount of money I have remaining in my 401k. While I would normally never pay $11.50 for a beer that didn’t promise additional flavor, a new life, or at least come with a burger, or SOMETHING, and I mean anything as an added benefit, a few things led me to this decision. First, I had just learned that I would be spending the next 4 hours in the airport, so I had some unplanned extra time on my hands. Next, the reason provided for my additional 4 hour wait was “mechanical issues” of the plane I was to later board, a detail I wish I had not been privy to. Lastly, in addition to being a rather large fan of beer, I had enough money in my wallet to pay for said beer.
In addition to this perfect storm of suds which had brewed up for me personally, there was something larger at play behind this lager pricing. It was either the beer speaking to me directly, or it was a flashback to a marketing class somewhere preaching about the economic theory of supply and demand. Of course they will charge $11.50 for the beer, because they know that air travel these days drives people to drink, and there are limited options at that moment in time when you find out that you will be spending the next 4 hours of your life in an airport waiting to board a plane, that may or may not get you to your final destination. While this is a relatively elementary example of the theory and the airlines have been operating on a pricing model built on up to the minute market factors for years, there have been some really interesting recent examples of product pricing on a micro level. Products priced strictly on a consumer generated cost, a number of specific market criteria at a moment in time, or via an escalating value scale for the consumer with an escalating price point. Worth checking out if you, you know, find yourself waiting for a plane some day:
Radiohead – Pay What You Want
In November 2007, Radiohead launched the album “In Rainbows” in digital format, with the offer to consumers to “pay what you want”. A groundbreaking model at the time, giving consumers full control of the price they wanted to pay for the album. From a sales perspective, there’s some interesting comScore data that suggests approximately 40 – 50% of consumers who downloaded the album paid some level of value for it beyond free. Since not much is known about the profits, it’s hard to tell how Radiohead fared with this model, which cut out the middle man/record label in the process.
Josh Frees – Former Nine Inch Nails Drummer
In all candidness, I had never heard of this guy before, but that is partially the beauty to the approach he’s taking to launch his new album, “Since 1972” via digital download. For the base price of $7, consumers get the digital download of the album and 3 videos. For $5,000 you get the album, a private tour of Disneyland, and to get drunk with Josh. For $75,000 you get the album, and Josh in your band for a month. There’s a lot of other rather funny pricing options, and while it’s not entirely clear if this is a real offer, or just designed to get publicity, it’s a very interesting concept.
San Francisco Giants – Dynamic Ticket Pricing
Based on a number of factors ranging from weather, to opposing team, day of the week, to starting pitchers, the San Francisco Giants this year will offer on demand pricing for 2,000 of their hardest to sell tickets at a cost anywhere from $5 to $50. I wonder if the beer price will fluctuate based on the score of the game?
So, particularly in a down economy, what types of things are you doing to ensure your product or services are priced appropriately? Are you conducting research to understand the consumer demand for your product? Brainstorming with creative people to generate new price-based promotional models? Developing the most cost efficient media plan? We’re always open to discussing and brainstorming new ideas, regardless of your category or industry. And the beer is always on us. Read more!
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