Posted by: Paul.Christ
on Nov 10, 2009
The Accidental Hero (BusinessWeek)
The Subway $5 Footlong is a wildly successful promotion. With the help of a sizable advertising campaign the promotion is one of the most successful sales promotions currently being offered by any retailer and has generated sales of nearly $4 billion in one year.
But the back-story on how Subway came up with this idea may be even more interesting than the success of the program. As this story discusses, a single franchisee operating two small stores in Florida had the original idea. To Subway’s credit they listen to their franchisees, which not all franchises seem to do, and it has paid off nicely.
Frankel's $5 footlong idea illustrates how a huge company can wake up and eventually seize on a good idea that's not generated at headquarters. Frankel, along with two other local managers in economically ravaged South Florida, ceaselessly championed the idea to Subway's corporate leadership amid widespread skepticism.
How much of the success of this sales promotion is tied to a down economy and what is the likelihood Subway will continue the promotion once the economy begins to recover?
Posted by: Paul.Christ
on Nov 07, 2009
Kellogg Pulls Immunity Claim From Rice Krispies (USA Today)
Breakfast cereal maker Kellogg had what it thought was a good idea for promoting cereals as being healthy for children since these contain several vitamins that may be good for kids. They liked the idea to the point of adding a large area to their packaging aimed at parents that said the cereal “Supports Your Child’s Immunity.”
Unfortunately what was thought to be a good idea quickly turned to being a problem. The wording not only has critics in an uproar, given that many feel these cereals are not only not nutritious but may be unhealthy (see our post Research Report Has Cereal Marketers Playing Defense), but to make things worse the packaging is hitting store shelves at a time when there is worldwide concern for the H1N1 flu. (Although it is hard to believe some may think eating more Rice Krispies will help prevent a child from contracting the virus!)
Kellogg is far from the only high-profile company saying their products help the “immune system” (see Tropicana’s Orange Juice and Nestle’s Juicy Juice). So expect more reaction to this type of labeling.
With the swine flu virus of paramount concern to parents and children, there is increased sensitivity to any marketing claims that even touch on the topic. At the same time, the nation's foodmakers are being increasingly held accountable by federal regulators for claims.
What would happen if critics not only go after the manufacturers but also take their case to the retailers?
Posted by: Paul.Christ
on Nov 04, 2009
AT&T to Verizon: There’s a Lawsuit For That (MSNBC)
What do you do when a competitor produces a comparative advertisement that really hammers you hard? Well, one thing you may be able to do is take the problem to court. And that is what AT&T is doing because they are not very happy with new television ads being run by Verizon (see ad at YouTube). The ads claim to compare the 3G coverage (i.e., primarily high-speed data access) in the U.S. for both providers by showing a side-by-side comparison in the form of nationwide coverage maps. It really doesn’t matter that a very, very large percentage of the U.S. population is covered by both services. What does matter is that the visual suggests more are covered by Verizon and a voice-over suggests AT&T may leave customers without access.
While the voice-over is what AT&T is mostly complaining about (AT&T says customers will still be covered but maybe not by 3G in mostly remote areas), what makes this an interesting story are the maps. More than likely this ad campaign would not be much of a problem if the comparison was limited to just words in a print ad. Instead, this is a case where the visual (i.e., maps) probably caught AT&T’s attention as well as the attention of millions of television viewers. And AT&T is crying foul.
AT&T filed the suit in U.S. District Court for the Northern District of Georgia and is asking for a temporary restraining order and a permanent injunction to stop the ads. The company requests an immediate hearing and said AT&T has "suffered and continues to suffer irreparable harm" as a result of the commercials.
Do the colors used to represent each company’s coverage – red for Verizon and blue for AT&T – also suggest something to viewers?