#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!