Category: trends
An increasing number of Japanese workers in their 20’s and 30’s are eschewing promotions and raises in favor of jobs with minimal responsibilities says the Wall Street Journal. Employment experts say the phenomenon, referred to as hodo-hodo zoku, the "so-so folks," is a result of rebellion against loss of personal time and cynicism driven by the job and pay cuts faced by previous generations. The growing trends has some companies facing reduced productivity and others investigating if workers can be fired for refusing a promotion.
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State Farm, “second-biggest ad spender among insurance marketers, no. 3 if Geico is included” is the ‘integrated’ sponsor of A&E’s new Thursday night reality series, “Jacked: Auto Theft Task Force” says AdAge. A State Farm agent will provide auto theft-prevention tips during “integrated” commercials that “seamlessly blend into the show.”
QSRWeb reports the release of the annual BusinessWeek and Interbrand list of Best Global Brands 2008. World-wide beverage giant, Coca-Cola, perches atop the list at number 1, Microsoft ranks at #3, and its nemesis, Google is at #10. Also in the top ten: McDonald’s (8) and Disney (9).
Folgers is unveiling a new roasting method the company calls “the biggest innovation since the launch of decaf,” says the New York Times. To tout the improved flavor and “cup-to-cup consistency,” the company will launch the most expensive ad campaign in the history of the brand to win customers among those who brew coffee at home.
Even a tough economy can’t keep a good truck down; according to the Free Press, Ford has announced that their industry leading (for 31 years) F-Series trucks will offer an optional SFE (superior fuel economy package "while still providing 7,500 pounds of towing capability.” Meanwhile, Chevrolet announced they would offer a similar package on their Silverado XFE truck last month, 7,000 pounds of towing capacity. Let the SFE truck wars begin.
The eighty-year old Springmaid brand has been rejuvenated with a new logo, brand positioning, designs and packaging. Parent and home furnishings supplier Springs Global US, Inc., says the relaunched brand delivers on the brand promise that “consumers will experience Surprise and Delight™ throughout their brand experience in impactful retail presentation, smart solutions that simplify her life and designs that enhance her desire to decorate.”
Brand Debuts
In October, Sears will launch the All American Army Brand’s First Infantry Division collection, inspired by the oldest and “most illustrious” division of the U.S. Army, the First Infantry Division. It is the first time the U.S. Army has officially licensed the use of its marks and insignias. The collection will be sold in Sears stores and at Sears.com. Source: Sears, Roebuck and Co.
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Do you know how consumer attitudes toward the economy can potentially impact the effectiveness of your marketing tactics?
Is the US in the midst of a recession? Maybe, maybe not, according to whom you believe. What’s more important for marketers to know is that US consumers, including those earning more than $100K per year, are cutting their spending based on mounting inflation fears and concerns about housing, says a recent comScore study.
Understand what’s on the mind of your consumers and ensure that your pricing strategy and value proposition are still relevant and competitive. The comScore study and others have identified the increased likelihood of consumers to research products online but make the actual purchase offline. Now is the time to for you to consider what measures you need to take to ensure consumers find your brand when they’re researching your category. Be sure talk to your consumers and keep track of ROI to make sure your tactics are keeping your brand competitive and enabling you to reach your objectives.
For more info on current consumer attitudes about the economy take a look at the information from comScore below; it provides some datapoints to think about as you plan your marketing for the remainder of 2008 and the beginning of 2009.
comScore Study Reveals All Consumer Income Segments Cutting Back as Inflation Fears and Housing Concerns Intensify
Majority of U.S. Consumers Using the Internet to Find Better Pricing Information for Purchases
RESTON, Va., Sept. 2 /PRNewswire-FirstCall/ -- comScore, Inc. (Nasdaq:SCOR), a leader in measuring the digital world, today released the results of a study examining recent changes in consumer attitudes and perceptions about the state of the U.S. economy. The study showed that consumers in all income segments are cutting back on spending due to concerns about the economy, and that they were doing so to an even greater extent in July 2008 than in April 2008. While spending cutbacks are being reported by a greater
percentage of people in the lower income brackets, concern is also catching up with the highest income bracket -- which showed the greatest increase in cutback over the time period analyzed.
Percent of Consumers Cutting Back Spending by Income Segment
|
|
Percent of Respondents
|
Household Income
|
April 2008
|
July 2008
|
Change
|
$100K+
|
66%
|
72%
|
+6
|
$50K - $99,9999
|
77%
|
81%
|
+4
|
<$50K
|
84%
|
86%
|
+2
|
"These findings illustrate how this economic downturn has eroded consumer confidence among all consumer income groups," said comScore chairman Gian Fulgoni. "Even those consumers with the highest income are
increasingly feeling the negative impact of economic factors and are changing their buying behavior accordingly."
Inflation More Concerning to Middle- and Lower-Income Households
Study findings also showed that while inflation continues to be the top economic concern for the majority of Americans, it is becoming an ever-increasing concern among middle- and lower-income households. The percentage of respondents indicating that inflation was their biggest concern increased by 5 points to 67 percent among households earning
between $50,000 and $99,999 and to 70 percent among households earning less than $50,000 per year.
While the percentage of households earning $100,000 or more who indicated that inflation was their biggest concern actually declined 11 points during the same time period, it appears that their inflation concerns have been displaced to some degree by increasing concerns about real estate and home values, which more than doubled from April to July.
Top Economic Concern by Household Income Segment
|
|
Percent of Respondents
|
Household Income Rising Prices
|
April 2008
|
July 2008
|
Change
|
Total
|
64%
|
67%
|
+3
|
$100K+
|
67%
|
56%
|
-11
|
$50K - $99,9999
|
62%
|
67%
|
+5
|
<$50K
|
65%
|
70%
|
+5
|
|
|
Percent of Respondents
|
Real Estate/Home Value
|
April 2008
|
July 2008
|
Change
|
Total
|
6%
|
5%
|
-1
|
$100K+
|
6%
|
14%
|
+8
|
$50K - $99,9999
|
10%
|
7%
|
-3
|
<$50K
|
4%
|
2%
|
-2
|
"While all U.S. consumer income segments have been showing strain from rising prices for some time, it's particularly troubling that the upper-income segment, which represents fully 30 percent of all consumer
spending, is now also showing a rapidly increasing concern about the downturned housing market," added Mr. Fulgoni. "This raises the specter that this important group will further cut back their discretionary spending and cause overall consumer spending growth rates to slow even further."
Consumers Say the Internet is Helpful in Finding Pricing Information in Tight Economy
With consumers increasingly cost conscious, many are turning to the Internet for pricing information. The survey findings revealed that nearly three out of four consumers believe the Internet has made it 'a lot easier' or 'somewhat easier' to find better, more useful pricing information.
Question: To what extent has the Internet allowed you to find better, more useful pricing information?
Response
|
% Respondents
|
Internet has made it a lot easier
|
35%
|
Internet has made it somewhat easier
|
39%
|
Internet has not made it easier nor has it made it harder
|
24%
|
Internet has made it a somewhat harder
|
1%
|
Internet has made it a lot harder
|
1%
|
Additionally, 75 percent of respondents said they believe the Internet will become an even more important channel for pricing information, with 41 percent of respondents saying it will be 'a lot more important' and 34
percent of respondents saying it will be 'somewhat more important' in the future.
Question: How important do you think the Internet will become for
providing information about pricing?
Response
|
% Respondents
|
A lot more important
|
41%
|
Somewhat more important
|
34%
|
About the same
|
24%
|
Somewhat less important
|
<1%
|
A lot less important
|
<1%
|
Source: comScore Survey on the State of the Current U.S. Retail Economy, July 2008
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Here's something for healthcare brands to think about:
The increasing cost of medical care, growing numbers of uninsured or underinsured Americans, the global outsourcing of record-keeping and x-rays, the recruitment of doctors and nurses from other countries, and the increasing quality of hospitals in other countries is paving the way for the growth of medical tourism says The Economist. They report that Americans can save as much as 85% by 'shopping around’ for medical care and that the number of Americans traveling for care will grow from 1 million in 2007 to 10 million in 2012, costing American hospitals $160 billion in annual business.
Intercontinental Hotels Group (IHG), has teamed up with the Medical Tourism Association, an international, non-profit association made up of the top international hospitals, insurance companies, healchcare companies, medical tourism companies, etc., to launch an initiative to offer medical-related travel into Latin America. Expect more of these partnerships as costs mount in the US and interest grows in cost effective alternatives.
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More women who are “well educated and trained for career tracks” have opted to stay home, according to a recent CNN article. More than 10 percent of SAHWs who were interviewed in one recent study were also childless. And with the rising cost of gas, food, and other living expenses, stay-at-home wives may be the latest “status symbol,” says Daniel Buccino, a Johns Hopkins University School of Medicine clinical social worker and psychotherapist.
But SAHWs are not home eating bon bons all day; many regard homemaking as an important responsibility that frees the husband from ‘honey do’ lists and allows the couple to have more quality time together. They also devote time to volunteer work, and pursue hobbies.
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According to the New York Times, consumers used to buy small cars because the were cheap, eschewing air conditioning, power windows, compact players, etc., to keep the price low. But as the cost of gas rises, consumers of all income levels are buying small cars to save fuel costs but adding hundreds or thousands of dollars on options. Hot sellers? The Toyota Prius hybrid and the Honda Civic.
Source: Car Buyers Downsize, but Spend Big on Options, New York Times, 7/17/08
Photo: Toyota.com
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Downsized staffs paired with increased workloads may be causing a rise in stress levels around the workplace. According to a CareerBuilder.com survey of more than 7,600 workers nationwide, (78%) reported feeling burned out at work.
Forty-six percent of workers said their workload has increased over the last six months and approximately the same percentage (45%) describe their current workload as heavy or too heavy. Close to a quarter (23%) of workers report they are dissatisfied with their current work/life balance.
More than half (54%) of workers said their companies offer some sort of flexible work arrangements to help manage stress levels and work/life balance and two-thirds indicated that they take advantage of at least one of the programs offered. When asked which benefits they take part in the most, workers said:
1. Alternative schedules (72%)
2. Compressed work weeks (24%)
3. Telecommuting (15%)
4. Summer hours (14%)
5. Job sharing (6%)
"Unmanageable stress levels in the workplace can seriously impact an employee's productivity and home-life," said Rosemary Haefner, Vice President of Human Resources at CareerBuilder.com. "Employers today are being much more proactive in offering a variety of programs that promote a healthy work/life balance, and companies and workers alike are reaping the benefits. Sixty-one percent of workers said taking advantage of flexible work arrangements has made them more productive and 21% said it actually improved their career progress."
Source: CareerBuilder.com/PRNewswire
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Are you an “Omnivore,”, “Connector,” or “Mobile Centric”? Where do you fit in the ten typologies of information and communication technology users developed by the Pew Internet Project? Click here to take this quick quiz and find out. Also provides an overview of the ten technology typologies and key characteristics of each.
Two trends that illustrate how consumers are trying to cope with higher gas prices.
Hypermiling
The notion of “Hypermiling” isn’t new; but it’s a term you’re likely to hear a lot more of these days. Hypermiling describes “drivers of both hybrid cars and regular vehicles, who go to extraordinary lengths to get as much as they can from each gallon of gasoline, trying to surpass the EPA’s estimated fuel economy ratings,’ says hypermiling.com. The site credits the online communities of Clean MPG, a site devoted to raising fuel economy and lowering emissions, with originating the term.
Changes in Driving Patterns
US drivers have cut their mileage for a sixth consecutive month says US Transportation Secretary Mary E. Peters. That’s 1.4 billion fewer highway miles in April 2008 than in April 2007.
Just this year vehicle miles traveled on all public roads has declined nearly 20 billion. “We’re burning less fuel as energy costs change driving patterns, steer people toward more fuel efficient vehicles and encourage more to use transit,” the secretary says. Past trends indicate that high gas prices won’t keep Americans from driving; they’ll just drive more fuel efficient vehicles.
So---Are Changes in Driving Patterns Permanent?
Peters says that past trends indicate that high gas prices won’t keep Americans from driving; they’ll just drive more fuel efficient vehicles. But an energy consulting firm quoted by WSJ is predicting that fuel consumption patterns could become permanent because consumers believe high gas prices are here to stay. Cambridge Energy Research Associates, an energy-consulting group says “2007 probably will represent the peak year of gasoline consumption in the
U.S. ”
What Marketers Should Do
Americans have a love affair with their cars unsurpassed by any other nation. If what the Department of Transportation and energy consultants say is true, long-term changes in fuel consumption patterns will impact everything from decisions about where to live, what job to take, shopping and recreation habits as well as discretionary spending.
As marketers, now is the time to do some brainstorming about how these trends could potentially affect your brand and help you plan for long-term changes in consumer attitudes and spending.
Midsize SUV sales were down a whopping 38% in May 2008 over May 2007, while car sales rose from less than 50% to 57% says the US Department of Transportation.
That’s bad news for big car brands GM, Chrysler and Ford. GM’s Hummer is experiencing a 36% national decline in sales and the automaker is shelving redesigns for its full-size pickup trucks and large SUVs including the Chevrolet Silverado, Cadillac Escalade and GMC Yukon. Ford has just pushed back the debut of their redesigned 2009 Ford F-150. The company is also cutting production of 90,000 vehicles, mostly trucks and SUVs. Source: AutoObserver.com.
A survey by Autodata confirms that higher gas prices are affecting all income levels. Sales of $40,000K+ vehicles are falling faster than the rest of the market: a 14 percent decline in 2008 ytd versus the same period in 2007. Monthly sales of the Mercedes S Class and Acura RL are dropping more quickly than lower-priced, similarly-sized vehicles such as the Chevy Impala.
So how are automakers coping? Chrysler is offering three years of subsidized gas to purchasers of new Chrysler jeep or Dodge vehicles. The program guarantees that customers won’t pay more than $2.99 per gallon for the first 12,000 miles they drive each year for three years.
The deal applies to most, but not all, of the company's vehicles and ends July 7. Whether the promotion is successful remains to be seen. Sales in May, the promotion's first month, were 25 percent lower than in May 2007.
