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What’s Really Behind the Popular Old Spice Ad?

Posted by Paul Christ July 15, 2010

Old Spice Argues That Real Men Smell Good (New York Times)

The current Old Spice television advertising campaign has received considerable customer and media attention.  This old-time Procter & Gamble brand has found renewed interest for its unique production and fun approach to selling men’s body wash.  The ad, produced by one of the top U.S. advertising agencies Wieden + Kennedy, remarkably is not primarily produced using video graphics.  (How it was done is also a fascinating story and anyone interested in the technical side of creating this ad should see this YouTube video which offers excellent insight into the creative side of this ad.)

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The Fruity Designs of Kleenex Packaging

Posted by Paul Christ July 12, 2010

A Sharp Focus on Design When the Package Is Part of the Product (New York Times)

In the Product Decisions tutorial we discuss how most consumer products are categorizes as either convenience, shopping or specialty products.  Of these product categories, convenience goods tend to be the most competitive with consumers often seeing little difference between competing brands.  Consequently, pricing is often considered the key marketing decision for convenience goods.  Such pricing is almost always relatively low with marketers obtaining extremely small margins on each product sold.

Some marketers feel the only way to effectively compete in the convenience good market is to be the low-price leader.  But, can you effectively compete if you do not want to be the low-price leader? Yes, you can.  One approach is to study consumers closely and see whether there are any other factors that influence purchase decisions besides price.  By engaging in such research, marketers may discover consumers are drawn to other product or company attributes and not just price.

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Just How Big is Wal-Mart? Darn Big

Posted by Paul Christ July 06, 2010

Top 100 Retailers (Stores Magazine)

Almost everyone knows Wal-Mart is the largest retailer in the United States but few have a clear idea of just how big they are.  This annual report from Stores Magazine shows Wal-Mart is a massive operation with sales exceeding $300 billion in 2009.  To add some perspective to this number, Wal-Mart’s sales are four times larger than the second-place retailer, Kroger.  Even more, if you combine the sales of the retailers rated two through six (Kroger, Target, Walgreen, The Home Depot and Costco) this total only barely exceeds Wal-Mart’s total sales ($305 billion for Wal-Mart vs. $319 billion for the group).  And, if that is not enough, Wal-Mart’s operating income of $21 billion exceeds the individual sales figures of all but 16 retailers.

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Marketers See Reason for Hope or Dismay in Supreme Court Patent Ruling

Posted by Paul Christ June 29, 2010

Supreme Court Hedges on Business Method Patents (CNET News)

Our recent post covering the value of patents as a form of intellectual property protection only scratches the surface of this complicated area.  While most marketers view these issues with a glazed look on their faces, the implications of intellectual property are significant.  For instance, another intellectual property area receiving considerable media coverage, and one marketers should be well versed, is a specific type of patent - the business method patent. Many marketers have been awarded these patents including Amazon for its “1-click purchase” process, Yahoo for delivering advertisements based on keyword searching, and Priceline for its “name your own price” bidding method.

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The Struggling Trade Show Industry

Posted by Paul Christ June 27, 2010

State of the Industry (Exhibitor Magazine)

In November 2009, we noted how the business-to-business trade show industry is suffering during this tough economy.  In the latest issue of Exhibitor Magazine, the evidence is even stronger.  Their annual report on the state of the trade show industry for 2009, which is based on research undertaken by the Center for Exhibition Industry Research (CEIR), presents the industry in a highly depressed state.

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Apple’s iPad Drives Competitors to the Maturity Stage of the PLC

Posted by Paul Christ June 23, 2010

Amazon.com, Barnes & Noble Cut E-Book Reader Prices (BusinessWeek)

Amazon’s quick response to Barnes & Noble’s price cut for its electronic book reader seems to conflict with what many believe should happen to products in a growth market.  As discussed in the Planning with the Product Life Cycle tutorial, marketing strategy suggests that, in a growing market, early entrants should be able to charge higher prices as long as strong demand exists for a product.

E-book readers moved from the Introduction stage to the Growth stage of the PLC with the release of the Amazon Kindle in 2007.  This product category has expanded rapidly and continues to grow.  If a company in this market follows the strict teachings of the PLC, they are likely not to compete on price but rather focus on building brand awareness through promotion.  So why the price war between Amazon and Barnes & Noble?

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