The 411 on GROUPON: Part I

Most of us are familiar with Groupon, many of us have used it, and quite a few of us are even subscribed to receive the “Groupon of The Day.”  So how does it work?  Who benefits from it?

According to the Groupon their website, the site strives to “[make you] feel comfortable venturing out and trying something new-just because it’s featured on Groupon.”  The company partners with businesses to bring about great deals on both services and products.  

Of course consumers benefit through the purchase of a great Groupon (half off a manicure, no way!), but do the local businesses who offer them?  Well Groupon obviously takes a cut of the proceeds made from each sale.  No websites that I ventured gave any actual figures, however http://www.grouponworks.com said that Groupon only makes money if the advertised business makes money.  Therefore no out of pocket payment is required to be featured on the website. 

In addition, http://www.grouponworks.com listed four main reasons for any business to try Groupon:

1. Valuable new customers, guaranteed

2. Efficient, measurable marketing

3. Become the talk of the town

4. Big exposure, bigger word of mouth

Apparently, there isn’t much actual research on Groupon and how it benefits and/or hurts businesses both large and small.  I will do my digging, and hopefully within the next month have new information on the Groupon premise.  Stay tuned!

Product Placement is Key

In ADPR 1400, a group of classmates and I did a brand analysis on Levi Jeans.  One of the main concerns that we had for the label was the physical placement in stores.  For men, shopping is an in and out event.   They don’t go to the store or mall to roam around, trying on lots of different items and browsing at different styles.  No, they grab what they like and checkout- often not even trying anything on.

Therefore, it is critical for a brand- such as Levi- to make sure that their men’s product is front and center.  That their jeans are the first ones the men see, that their jeans are the ones they pick up and walk to the register with.

On a recent trip to Kohl’s Department Store, the physical approach that Levi jeans took was very different in the males section as compared to the females.  In the men’s section, there was an immaculate display that screamed “Levi’s!” complete with jeans both hanging up and lying flat.  Many different washes and styles existed on the display so that shoppers could walk right to the jeans section and see their beloved Levi’s.  However in the junior’s section, a Levi’s display was practically nonexistent.  The jeans simply hung on a rack mixed in with all the other brands. 

Men's Levi's Display in Kohl's Department Store

Yes, women are more prone to looking thoroughly through the department to find their perfect fit, style, and brand.   But is it beneficial to just rely on that? I firmly believe that if Levi didn’t take such a laid back approach to selling jeans to the female audience, many more women would actually own them.   Men do make up a much larger share of the product audience, and it is extremely evident why that is by simply taking a look at the in-store product displays. 

The More You Know: Economics & Marketing

During an offseason for any company, revenues can decrease dramatically.  Yes, the recession is somewhat to blame for the bottom line being low but there’s a lot more that has to do with it too.

How many people in Wisconsin can say they plan on buying a pool for their backyard in January?  How many people want a Christmas tree in the middle of summer?  The answer: very few.  Therefore these businesses must be well informed of the industry they are getting themselves into.  A Halloween store must know that almost no one is going to buy a costume any other month besides October when they decide to get into the costume selling business.

What happens very often in the off season is what we call a temporary shutdown.  In economics you learn that sometimes it is better for a certain amount of time to just incur the fixed costs, such as rent, and stop production all together (and stop all variable costs).  Instead of remaining open and paying the heating, water, and electricity costs, some businesses will close for a fixed amount of time to avoid losing more money than if they were to stay open and not sell anything. 

An example of this is a store that I came across in Bay View Wisconsin.  Babes ice cream shop had a sign on the door saying “Frozen for the Season. Reopening February 23.”  Some walking by may think that this meant Babes was going out of business, however the principals of economics tells us that this instead was just the smart thing to do.  The ice cream shop owners know that the winter months are not a popular time for cold treats, and therefore closed their store until the demand for their product increases. 

Learning to make sound business choices and understanding decisions that other businesses make is a key part in marketing.  Since supply and demand create the market, we must learn to take advantage of all they have to offer.  And so, we learn that economics is the basis for everything in the advertising and marketing industries.

She's Back!

Most of us are familiar with the infamous Crazy Target Lady. She only comes out at this time of the year, during the two month span of November and December. She's the lady who does warm ups pushing shopping carts in stilettos and a red jumpsuit. She's the one who makes her own glitter and is spotting crying hysterically reading the newspaper sale ads. She's the face of the Target-after Thanksgiving Sale and if you don't know who this is, you are clearly missing out.

The woman behind the glitz is Maria Bamford, a comedian and actress from Minnesota.  Target first introduced this over the top character during the holiday season of 2009, and the campaign seems to be a pretty big hit.  This is the first year where stores have begun to open up as early as 10 pm at night (Wal-Mart) instead of the usual 4 or 5am. The Crazy Target Lady has been a successful way to showcase the excitement of post-Thanksgiving holiday shopping and get even more customers involved in the now late night shopping. 

As for me, seeing the yearly holiday commercials has become some sort of a staple in the shopping season.  Although most shoppers are not as excited as she, the Crazy Target Lady does embrace the spirit of the Christmas season.  It is not all about the material things… well maybe just a little bit.

The Power of a Catchy Jingle

While lying on the couch the other night, a familiar song rung through the house. It wasn't one that would be on the Billboard Top 100 list; rather it was from a commercial that I had seen many times before. The song aired during a commercial on AM radio for Lowe's, the home improvement store. Before the narrator even spoke, I knew what it was for and immediately envisioned the commercial of a happy lady dancing around her apartment, sequentially showing her throughout her life.

The power of a simple song brought me to thinking about the company and enabled me to relate to a radio advertisement without words. Bravo, Lowe's!

Anything-But-Traditional Advertising

Traditional advertising has gone as far as billboards, television, radio, and most recently, the internet. The new race however, is to think outside of the box. More and more companies are marketing their product through unusual campaigns that are anything but conventional.

The most recent that I had noticed was in my menu at The Cheesecake Factory. When given the menu, I noticed how big and heavy it was... My first response, "They have a TON of food here!" proved to be not completely accurate. 

The Cheesecake Factory has become part of a growing number of businesses renting out space for advertising.  Their menu, held together by a thick spiral, contained three different advertisements throughout its pages of pastas, entrées, soups, and desserts.  The ads varied in their message, but remained on the same placement throughout the menus. Guests would theoretically come in, sit down, and be inclined to buy a certain product from an outside source while deciding on their food order. 

Whether or not this tactic has been profiable, I am unsure.  I do know however, that our table found the strange placement of ads somewhat comical.  We all had been out running around (like most other guests who had come from the mall) and just wanted something to eat; Not perfume. 

I found the advertisements to be a waste of time for the companies who purchased the space and thought they concurrently helped The Cheesecake Factory lose a bit of its class.

Breast Cancer Awareness Month

As you probably already know, October represents not only Halloween but the quest to find a cure for breast cancer.  Years ago the initiative was not nearly as great, but today everyone does their part- even the unexpected businesses.   It seems that the pink ribbon has become a way to sell a product, after all sometimes only 1% (or less) can go to support the cause. 

The large popcorn bucket, the biggest
seller at the movie theatre, has gone PINK!

Marcus theatres embraced pink large popcorn containers for the month with some unknown percentage going toward finding a cure.

Kohl's has also been known to be a major supporter of the cause.  They play a huge role in the Susan G. Komen Race for a Cure each year, and have several product lines dedicated to raising money.  This year, they even went as far as changing the color of their sign pink.  A statue in the entranceway explains the initiative.

And now for the quirky, a billboard posted along the Marquette Interchange says that Silk Exotic, a Milwaukee Gentlemans club, will donate 10% of their cover charge during the month of October to breast cancer research.  The irony in the billboard is  is proof enough that everyone is trying to get in on the action!

It seems that the breast cancer initiative has turned into a giant FOR profit business.  Companies are stamping a pink ribbon onto a product and in turn donating only a few pennies off the dollar.  While more and more money is being raised, so too are the questions as to the ethical nature in which the money is being raked in.  How much does a consumer think they are donating when they purchase a product or service? 

And if they knew, would they still buy it? 

New Perspective on Levi Jeans

After choosing Levi's Jeans for a large "Brand Dissection" project in my Advertising Prinicples class, I suddenly began to notice the brand-- everywhere.  When we had our first group discussion about it, all of the girls realized that we didn't own anything by Levi.  However the boys in the group had each owned something; be it jeans or even shoes.  This brought me to a fundamental question: what was the brand missing when it comes to women?

I hadn't ever given much thought to buying the original denim brand.  I always chose jeans that were a. cute, b. fit well, and c. inexpensive.  And somewhere along the line Levi jeans just didn't cut it. 

Spending more than an hour at the mall made me realize, Levi jeans were advertising everywhere! There were sold everywhere!  And yet, I never had owned any.  Kohl's, Boston Store, and JC Penny were some of the retailers that I had found who sold Levi's.  All had them marked at reasonable prices, were attractively displayed, and located in the center of the jean area.  So what could be the reason that so many females around college and high school age do not buy this brand?

One thing I had noticed were the styles.  Levi lacked a lot of the very popular "Skinny" jean styles.  Instead, they had a much larger proportion of flair and boot cut denim.  The "Skinny" rack was demolished- with only a couple pairs (in sizes 00 and 16).  In addition, the wash of the jeans were not "BeDazzled" with any distress or gems...something very popular. Rather, Levi had way too many boring washes, fits, and styles. 

Over the course of the brand analysis I hope to discover a lot more about Levi Strauss Jeans including how to improve the number of female customers.  Stay tuned!

Grilled Cheese VS. Toasted Cheese

While at the local Target store this weekend I walked passed a sign in the food section.  The sign help a giant picture of a grilled cheese sandwich and above, said the words "MMM.  Toasted Cheese." Immediately, I grabbed my friend and pointed out the sign, wondering what the heck toasted cheese was.  Here, it is grilled not toasted. 

The sign brought me to an important understanding.. Lingo.  If you posted a sign in a Flordia Target that direct customers to the "bubbler," few shoppers, if any, would know what that meant.  Similary, in Milwaukee, a sign with a giant grilled cheese sandwich better hold the words "Grilled Cheese." 

Keeping in mind the regional dialect is always very important because if advertisers use the wrong words, they may turn off their consumers.  Forget about making the sale.

Buffalo Wild Wings Blackout

Each year Buffalo Wild Wings seems to come out with a new commecial about bringing sports fans together.  Usually airing on the typical Sunday afternoon, these ads are aimed at your typical sports loving man.  While I love football, the BW3's commercials do not encourage me to go to the bar/grill and eat because I am out of the target audience.  Nonetheless, I find the ads highly entertaining and laugh almost every time.

It's a clever idea, that Buffalo Wild Wings has insiders at every sporting event who are able to change the outcome of the game.  The absurdity of it is even more comical, as to how the NFL would react if something of the sort were ever to actually occur during a game. 

I think that the ads are effective at getting people to go to BW3's.  They create a sense of community throughout the sports world, thus enticing people to go watch a game with their fellow fans. 

"I mustache you a question"

As an employee of the Marquette Bookmarq, I see a lot of advertising targeted at students my age.  Over the past year, the campaign has changed quite a bit. 

 One year ago, renting textbooks was the center of the marketing ploy.  The "Rent-A-Text" program was aimed at students who didn't want to pay full price for textbooks, which often totaled upwards of $700 per semester.  Since the program had only started, posters were everywhere explaining what it was and how it worked.
 
 After one year of textbook rentals, a large number of Marquette students are now in the rental program..  The Rent-A-Text posters are still displayed, however are much more sparse than in the past.

Today, the signage in the Bookmarq takes a much different tone.  Instead of coming right out and saying something, all of the posters have a humorous and almost an indirect tone.  Even the associates were given t-shirts saying, "I mustache you a question." 

Upon my arrival at the end of Summer, I was unsure of what to think.  Quite honestly, I didn't even understand half of it, much less comprehend what the company was trying to say.  In addition to the shirts, customers were given sticker sheets of mustaches! (Which I do still see time to time on the sides of random buildings and bus shelters).

To this day I still cannot figure the marketing campaign out and feel as if my coworkers have little understanding either.  There too are other signs  around the store that are a bit less strange, but not by much.

They are interesting to look at, however I don't believe that the campaign is hitting its target audience. The signage seems to be better suited for a younger age group, perhaps middle school students. Many Marquette students are going to the bookstore to purchase their Organic Chemistry or Analytical Engineering Systems textbooks. For them, the signs are not amusing and appear to be immature.

NFL Sunday

The Fall season can be characterized by many things: crisp leaves, briskness in the air, and of course, football.  Spending Sunday's vegged out in front of the tv with family and friends is such a natural part of this time of year. 

Today, being a normal Sunday I spent my early afternoon watching Packer football.  However, instead of muting the commercials I paid attention to them and came across something interesting.

Nearly every advertisement was for one of three things: Food/Beer, Cars, or Movies.  All directed toward men.  Food commercials were all unhealthy foods like Pizza Hut and Doritos.  An ad for say, Yoplait Yogurt would never be seen during this time slot because the target audience would be completely missed. 

All of the commercials, especially those for beer, focus largely on manliness and masculinity.  It's all about "being a man."  The campaigns are all neglecting women and are assuming that men watch more football than woman.  My personal favorite was by Miller Lite.

The tactic must work because companies have been doing the same thing for years and years.  Commercials aimed at men appear on sports networks and on game day while those aimed at women most likely occur on The Cooking Channel or on networks like Lifetime.  Apparently the content of the ad is only as important as who the ad is targeted to.

Presentation Props

I spent the weekend in Madison and had a nice Saturday afternoon shopping at the small boutiques on State Street.  One display that caught my eye was a store named Shoo (yes, there is also one in downtown Milwaukee).  The shop sold a wide variety of unknown label, expensive shoes in addition to trendy and socially responsible Toms.

The part that got my attention was a large, old-fashioned bike in the front store window.  The store sold "Shoos" and yet attracted college students by having a model of their main method of transportation- bikes.  The same store in Milwaukee has a much different display- simply shoes.  Only because everyone at Marquette, the nearest campus, walks to class.

The advertising technique was interesting because it worked and I did go in and shop.  Since nearly every block in Madison had a bike store, this was their way to stand out by blending in.
 

Kenneth Cole & the Abortion Debate

Flipping through my Marie Claire I spotted an advertisement that caught my eye..

Kenneth Cole, a well-known label, had a new marketing plan with an interesting twist.
"Should it be a woman's right to choose if she's the one carrying it?" span across the entire page. A link to Where Do You Stand . Com sits underneath.  One can only assume this is meant to say, "CAN A WOMAN CHOOSE TO HAVE AN ABORTION?"

Ironically, the website link then directs you to either a) Take part in a provocative debate or b) Go shopping. Hmmm.. 

I don't know how to feel about this one.  They create a play on words as the woman is actually carrying, granted she's carrying a purse.   Sure, it is a hot topic, however can they really get away with comparing having an unwanted baby to holding a bag in your hand?

The advertisement has caught me off guard and Kenneth Cole has effectively made me uncomfortable. And not in the fashionable, sexy light that most designers go for.  It's bizarre to see the fashion world mixing with such a touchy subject, and to do it so openly, to make money?  The more I contemplate, the more I realize I am not a fan. 

What do you think?

I Am: A Hilfiger

Oh to be a part of the Tommy Hilfiger clan.

Every advertisement by the famous designer is bursting with layers, scarves, and giant family get togethers-- Only to be completed by the occasional TH Station Wagon.  Never less than three people are squeezed into a single square inch of the page... It's just a big cozy party.

Take Fall 2011's line for example. The image depicts a giant, happy family getting together- in an almost dysfunctional way- to snap a photo.

The feeling I got from seeing this made me want to cuddle up next to a warm fire and enjoy some deep conversation.

Tommy Hilfiger is known for its signature preppy style and layering- regardless of the season.  It has always been a brand that I associated myself with because, quite frankly, I like to be warm. Wisconsin winters are brutal by definition and require vests on top of turtlenecks on top of cashmere scarves and wool jackets... Something TH has perfected to a "T". 

Another thing about Tommy is that the label is not big into sex appeal.  Other brands, like Guess, have always focused on sex.  Why is this now the only way to market a product? If your goal is to SELL clothes why do you want people to take them OFF?  Tommy Hilfiger instead stands for being with people who you care about, be it your famous Uncle Tommy or your shy cousin Bertha. 

I have found this brand very relatable because of the family that I enjoy surrounding myself with.  We can have a good time doing simple things like playing a board game, whereas some families need booze (among other things) to be happy. 

The way to best describe Tommy Hilfiger would be casual yet dressy, layered yet comfortable, and fashionable yet refined.   Not too much different from myself.. I have always been true to who I really am, I grew up being very mature for my age, and I do like to have a lot of fun!  Just like the label, everything just works together in the end.

Tommy Hilfiger is indeed my brand of choice because of all that it represents to me.  I love that it remains a conservative label although the fashion industry has certainly changed. I love that it is functional and comfortable, and I love that I can relate to the image it represents. 

In order to look great and classy any season of the year, I trust my old friend,TH.