Hiding More Than A Big Belly

Recently, a woman named Janet Vertesi tried to hide the fact that she was pregnant - from the Internet.

Vertesi, an associate professor of Sociology at Princeton University, decided to conduct a personal study into how to hide her pregnancy from companies looking to reach her and her spending money.

Pregnant women are very valuable to marketers. They not only need many items when the baby is in the womb, but also long term care, including diapers, swing sets, cribs, clothing, and more. According to her, the average person's marketing data is worth 10 cents. A pregnant woman's marketing data is worth $1.50. That's a pretty significant difference!!

Her story is one of challenges as well as insight into how much companies truly do track your consumption behavior. She has been able to take away what it takes to avoid being collected and tracked from big data companies.

She first made sure there was no news of the event on social media - a crucial step as many companies use this tool first and foremost. She personally called or emailed the news to friends and family. She even went as far as using only cash when buying baby items, so there was no paper trail on her credit cards.

One of the biggest things she can take away from this was that her activity of dodging advertising and tracking did tend to raise some red flags. Her husband tried to buy $500 worth of Amazon giftcards with cash in order to buy a stroller and the clerk at the Rite Aid pharmacy said that the company had a legal obligation to report excessive transactions to the authorities. Seriously?!

This may lead to a conclusion that we have moved into a time that hiding personal information from companies to avoid targeted advertisements may not be possible anymore. Companies are striving to know more and more about consumers to influence their decision making. While many do not mind targeted or personalized ads, some do, and they may not be comfortable with the amount that big companies know about them.

Mentos Rolls out Hilarious Monty Python Commercial Parody

Recently, the lesser-known gum brand Mentos is rolling out a new advertising campaign much like a parody to the movie “Monty Python and the Holy Grail”. In this TV spot, a medieval knight refuses to fall down because his gum is still fresh.

This campaign is for promotion of their pellet-type of gum, Mentos Pure Fresh Gum, which launched about 5 years ago in the U.S.

This is an estimated $10 Million dollar campaign, mostly running on television spots during comedy shows. This company has been struggling, mostly after their failed introduction of UP2U, which was launched in 2010. UP2U was a pack of gum that allowed consumers to pick from two different gum choices in one pack of gum. The line was discontinued last year because of lack of demand.

The company has tough competition from larger sugarless gum brands such as Wrigley’s Orbit and Mondelez International's Trident. They did have a larger market share before their discontinuance of UP2U, which started out well, but eventually sales fell.

This campaign focuses on getting “back to the basics” of gum, touting freshness and long-lasting taste.

I think this is a great campaign; not only because it makes me want one of those delicious little gum pellets, but because of the hilarious parody they portrayed. Many people know and love Monty Python and the Holy Grail, and seeing a commercial like this can stick in their mind next time they are at the grocery store looking for gum.

What do you think of the commercial or the campaign? Do you think consumers will remember to buy Mentos gum next time they purchase a pack? Or do you think that consumers will simply laugh at the commercial, and forget about it afterwards? Comment below! 

#TheBusinessofHashtags

I didn't like hashtags when I first heard about them. I thought, “Why would anyone do that?!” and ragged on my best friend for using them on Instagram.

Fast forward a few years later and I love them. Especially after the hilarious skit on Jimmy Fallon’s new late night show (the first one with Justin Timberlake was funnier – if you have not seen this, stop reading and go look it up on Youtube. That is an order.). Sometimes the hashtag is the only way to describe a situation.

So what are hashtags good for? How can businesses use hashtags to their advantage?

Since its start in 2007, hashtags have spread from Twitter to all social media platforms such as Facebook, Instagram, Google Plus, and Vine. Hashtags can have several purposes. For starters, hashtags can help with search ability. Users are presented with a vast amount of information on social platforms, so searching for a particular hashtag can help correspond to their desires and needs.

Hashtags can also be used to tap into user-generated content. Advocates of a brand or trend can even start a hashtag that may promote your business. Firms can join conversations around these hashtags, and help steer the conversation back to their site.  

Hashtags are also a great way for companies to start a conversation with their users and receive feedback. Many businesses will start the conversation around a hashtag, like #TVJustforme, (a real hashtag from Cox Communications) and have users pass the hashtag around, sometimes for an incentive, sometimes just for exposure. Users many times have an incentive to pass the hashtag around for chances to win prizes, discounts, or just the chance for their 15 minutes of fame interacting with a cool brand.

Finally, hashtags are a great way to add humor to any dull moment. Although companies have to be very careful in their humor, many times hashtags serve as a punch line, and can receive positive word of mouth from these efforts.  This can also help with a more boring or not-as-exciting brand, like an electric company.

Even though hashtags are a great business tool, businesses must be cautious not to overuse them. Users get tired of the constant hashtagging and also get tired of businesses pushing their hashtags in consumer’s faces. Hashtags are a great marketing tool, but brands must have a strong plan surrounding a hashtag they are introducing, and be consistent with their promotion.

What do you think about hashtags? Do you like them or use them? Do you think it’s a good idea for businesses to use them? Comment below! 

McDonald’s 3 Tactics to Boost Sales in 2014

As a broke college student, especially now that Spring Break has come and gone, I have eaten my fair share of McDonalds.

But until last week, I had not eaten at the chain in several years. Over the week long break, I visited those Golden Arches once or twice (maybe three times if we’re being honest) J

McDonald’s, back in 2012, hit a deceleration in sales, stemming from several factors such as a more educated bracket of consumers, and  a push from their target market for more organic, healthier food choices.

Since that time, the company has worked to improve their image to the swaying market, and boost revenue by using three tactics: improving marketing, emphasizing core products, and stepping up their digital and e-commerce footprint.

First, the company wants to revamp the marketing strategies from marketing organized by product to marketing organized by consumer groups such as millennials, families, and adults.  They also just hired a new chief marketing officer, Deborah Wahl.

They are also taking a step back and focusing on their core products – burgers and chicken. Last year the company rolled out 4 new products too quickly – the blueberry pomegranate smoothies, Egg White McMuffins, McWraps, and a new line of Quarter Pounders. This year, according to Peter Bensen, McDonald’s Chief Financial Officer, the company will concentrate on its core products. They just recently introduced the Bacon Clubhouse burger, one of the company’s essential products.

Finally, the chain is moving more toward a digital space. The company just hired its first chief digital officer, Atif Rafiq. It plans on trying out mobile payments and ordering, digital ordering in various markets, and maybe even a loyalty program specific to McDonald’s. This move would be very different for the company, who has not done this in the past. Mr. Bensen acknowledged that this would be new exciting move for McDonald’s, and although it would not be 100% perfect, if they didn’t seize the opportunity and waited until everything was perfect, they would miss their chance for new customer loyalty and increased sales.

What do you think of McDonald’s 3 new marketing tactics? Do you think they will have a positive or neutral effect on sales? I think if the company is willing to make changes and adjust their marketing plans, they have a good chance of their risk being paid off. Do you think after McDonald’s rolls out some new changes like their loyalty program or more core-focused products you will have a better impression of the company?

Comment below! 

Maxim Magazine Bought by Biglari Holdings, a Restaurant Holding Company

Biglari Holdings, a restaurant holding company that owns chains like Western Sizzlin’, has bought the racy magazine from Alpha Media Group on Thursday, February 27, 2014.

The restaurant holding company plans on keeping the current management team intact and headquartered in New York.  Exact terms were not disclosed to the public.

Chairman and CEO of Biglari Holdings, Sardar Biglari, said that this was a long term investment. He announced that the inclusion of the magazine in the company’s other holdings, such as Steak and Shake, will benefit the company’s overall financial strength. They have plans to build up the magazine and energize more readers and viewers.

The magazine seems to have been slowly declining over the past year. In this previous year, 2013, the company was almost bought by Darden Media Group, which planned on taking the magazine to television and radio. The deal fell through when Darden could not make up the funds in order to purchase the magazine.

According to recent statistics from the Publishers Information Bureau, print ad pages fell 17% at Maxim. In the overall industry, the decline was a much lower, 4.1%. The decline has put pressure on Alpha Media Group to sell off the magazine and salvage the value the magazine still obtains.

What do you think of this recent acquisition? Do you think a restaurant holding company has what it takes to turn the declination of the magazine around? What do you think needs to be done so that the magazine can restore earnings?  I think it seems a little out-of-place that a restaurant holding company is buying a men's entertainment magazine, but it will seem interesting what Biglari Holdings will do with the magazine. 

Comment below!

Facebook buys yet another social software: the WhatsApp App for up to $19 B

Facebook announced Wednesday, February 19, that they have plans to buy the mobile messaging site WhatsApp. The company plans on buying the app for up to $19 Billion. It is paying $12 Billion in Facebook stock, and $4 Billion in cash for the messaging application. Finally, the app’s staff will receive $4 Billion in restricted stock that will mature over the next four years.

Here’s the kicker: it is the largest acquisition by a long shot. Facebook only paid about $715.3 Million to buy out Instagram, as opposed to the possible $19 Billion WhatsApp gets.

Facebook said they are keeping the app separate from the other social networking sites, as it did with Instagram.

The recent buyout must have been largely due to the increased amount of users WhatsApp has. WhatsApp has been bounding in users and message counts since August 2012 and growing every month. The App currently has around 450 Million monthly active users. 

Facebook CEO and founder Mark Zuckerberg believes this messaging app will continue to grow to a Billion users.

It will be interesting to see if/what will change now that the buyout has taken place. In some ways Facebook seems to be taking over social. Not that anybody seems to mind though. It doesn't seem like much has changed, yet we have to ask – what is going to happen to our privacy when almost all of the social platforms are owned by the same company? Does it matter?

Comment below!

Chick-fil-a making moves to switch to antibiotic-free chicken...but in 5 years

Chickfila announced this week that they are moving toward switching their traditional chicken breasts to antibiotic-free chicken.  This move, however, could take up to 5 years to integrate throughout the franchises.

                                                                                 

A spokesperson from Chickfila said that a shift this significant will take longer than expected because it requires a change in every step of the supply chain. The company knows that this move will take them a while because of the amount of demand the franchise requires. Any supplier willing to take them on will have to know this up-front.

The FDA, just few months prior to Chickfila’s decision, released an update to consumers about phasing out particular antibiotic usage in farm animals. The antibiotics are added to animals feed or water to help the animals gain weight on a faster scale.

Each year, more than 2 million Americans are infected by what researchers call “Superbugs” or bacteria that grow and spread by the overuse of antibiotics. According to the CDC, some 23,000 people have died from these “superbugs”.

Chickfila says that their decision was not stemmed from the FDA’s report, but rather by listening to their customers’ needs and responding to what they ultimately want. Their customers stressed having antibiotic-free chicken, and the company responded.

According to Jean Halloran, director of Food Policy for Consumer’s Union, Chickfila’s 5 year plan is better than never. Jean said that ultimately Chickfila deserves credit for taking an important step to protect public health.

Chickfila, in 5 years, will be among Chipotle and Panera Bread who have also pledged to serve meat that is free of antibiotics.

What do you think? Do you think Chickfila is just responding to the FDA’s report, or are they genuinely listening to their customer’s suggestions? Leave your comments below!