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Brand News: Tiger Woods, Jones Soda, Borders, Barnes & Noble, Dress Barn, AOL, Tide

December 1, 2009 by anne

Three  of Tiger Woods’ sponsors, Nike (NKE), Gatorade and Gillette, have expressed their support in the aftermath of his automobile accident and rumored affair. CNN 11/30/09  

The founder and former president and CEO of Jones Soda has founded BoxB, a company that will create nonalcoholic private label beverages for distributors. Owning their own brand eliminates the risk associated with building non-owned brands and then losing the distribution when they become a hit. Brandweek 11/28/09 
 
With Christmas less than five weeks away, Borders (BGP) and Barnes & Noble (BKS) are concerned that the weak economy will depress sales, despite best sellers from Dan Brown, Stephen King and Sarah Palin. wsj.com 11/25/09 May require subscription.
 
Dress Barn (DBRN) has completed its merger of Tween Brands, owner of the Justice brand that caters to children from the ages of 7 to 14. It will operate as a subsidiary of Dress Barn. Chainstoreage.com 11/25/09  
 
AOL is adopting a new brand identity next month when it spins off from Time Warner (TWX). The triangle is gone, and the uppercase “AOL” is now upper & lower case, punctuated with a period: “Aol.” NYTimes.com 11/22/09 via Media Bistro
 
Tide has introduced “Stain Brain,” an iPhone app that offers simple solutions on the spot and allows people to share cleaning tips. The move coincided with the launch of Tide’s Stain Release in-wash booster, designed to be added into the regular laundry load to remove a host of stubborn stains. CMDGlobal.com  
 
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Brand News: Mother's Cookies, Macy's, Subway, SnapNames, AT&T, Verizon

November 9, 2009 by anne

Kellogg (K)  is using social media to take regional brand, Mother's Cookies, national. The campaign seeks to “link the cookies in consumers’ minds to “moments of joy,” via tactics including a Facebook “cookie personality” quiz, scavenger hunt and a collage-like mix of videos and photos on MothersCookies.com. Brandweek 11/7/09  

 The beloved brand was born 1914 when the owner of a San Francisco newspaper stand begain selling home-baked cookies. The company closed its doors in 2008 and was relaunched by Kellogg in 2009. Image credit: MothersCookies.com 
  
 Macy’s is reprising its “Believe” campaign this month, which recounts the famous, “Yes, Virginia, there is a Santa Claus,” editorial from the New York Sun. The campaign incorporates numerous elements including a 30-minute, animated special on CBS, a 25-city Santa tour a commercial featuring Grammy Award-winning singer Queen Latifah and a “Telll Us Why You Believe” contest that enables people to share their thoughts about what they believe in and why they believe.” Brandweek 11/7/09
 
Subway has added Seattle’s Best to its breakfast menu. Seattle’s Best is owned by Starbucks Corp. (STBX) Brandweek 11/6/09
 
Sears (SHLD) will add a new line of Jenn-Air kitchen appliances to its lineup this month,  the only national retail chain to sell the high-end appliances. Sears market share in appliances has dropped from 40% to 31% over the last decade. Chicago Tribune 11/5/09
 
Borders (BGP) will close 200 Waldenbooks and Borders Express stores and cut 1,500 jobs in January so that it can focus on its more profitable superstores. Miami Herald 11/5/09
 
SnapNames, the largest the largest reseller of Web site names, has admitted that an employee was shill bidding on auctions to enrich himself and drive up the cost of names sold by the company. SnapNames says just 5 percent of total auctions between 2005 and 2007 were affected, about one percent of the company’s auction revenue during that same time. Washington Post 11/4/09, TechCrunch 11/4/09
 
For more on this topic:
SnapNames: Apologies Shouldn’t Be Conditional, Especially When You Steal From Customers
  
AT&T (ATT) is suing Verizon (VZ) over Verizon’s “There’s a map for that” ad. The ad plays on Apple’s “there’s an App for That” slogan---but that’s not the problem. At issue is a map in the ad (see map graphic, video below) that shows that Verizon has 5 times more 3G coverage than AT&T, but doesn't show that the gaps in AT&T 3G coverage might be covered by AT&T's 2G network.
 
AT&T accuses Verizon of “misleading consumers into believing that AT&T doesn't offer ANY wireless service in the vast majority of the country.” Engadget 11/3/09 Image Credit: Techflash

 

 

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Trends: Recession Eating, Secondhand Purchases, Return Fraud, Holiday Shopping Projections

November 3, 2009 by anne

The recession has caused more U.S. consumers continue to turn to cheaper fare, such as fast food, canned, and frozen processed foods are higher in fat and calories and are made with refined grains and sugars. The result: obesity, diabetes and other illnesses are increasing. Wall Street Journal 11/1/09

 Consumers say they would consider buying secondhand items; during the last 12 months, 29% said they have been buying more secondhand goods and fewer new items. 15% said they only started buying secondhand goods within the last year. Brandweek 10/31/09
 
The retail industry will lose an estimated $2.7 billion in return fraud this holiday season and an estimated $9.6 billion this year according to the National Retail Federation’s annual Return Fraud Survey. Chain Store Age 10/30/09
 
Deloitte’s 24th Annual Holiday Survey of retail spending and trends reports that two-thirds (66 percent) of consumers are planning to shop differently due to concerns about the economy. Despite expectations for economic improvement, consumers continue to reduce their spending on gifts. The average number of gifts people plan to purchase declined to 18.2 from 21.5 last year and 23.1 in 2007. The amount consumers plan to spend on gifts is down as well, to $452 compared with $532 in 2008, and $569 in 2007. Deloitte 10/28/2009
 
According to the National Retail Federation’s 2009 Holiday Consumer Intentions and Actions Survey, U.S. consumers plan to spend an average of $682.74 on holiday-related shopping, a 3.2 percent drop from last year’s $705.01. Two-thirds of Americans (65.3%) say the economy will affect their holiday plans this year, with the majority of these consumers saying they’re adjusting by simply spending less (84.2%). National Retail Federation 10/20/09
 
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Trends: Pharmaceutical Advertising, Shop Online/Buy Offline, Girls & Makeup, Christmas Retail Prognostications

October 27, 2009 by anne

When drug companies are cited by the FDA for deceptive marketing, they lose 1% of market value on average, according to new research by Diana C. Robertson of Wharton and two colleagues. Harvard Business Publishing 10/22/09
 
 Consumers are using the internet to find the best deals at retail outlets, toy stores and more “So what happens online, doesn’t always stay online in the new economy where deal hunting is driving buzz.” Nielsen Wire 10/23/09
 
30% of 10 year-old girls spent their own money on make-up last year. (2008 MRI MediaMark Research, American Kids). Yes, that’s 10 year-olds.
  
Buzz about Christmas and holiday shopping on social media sites is down 3% year-over-year. This activity is in line with other research at Nielsen relative to retail expectations and consumers’ personal finances that indicate modest spending from a cautious consumer base. Nielsen Wire 10/23/09
 
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Brand News: Abercrombie & Fitch, Target, Nissan, Apple

August 19, 2009 by anne

“Teen apparel chain Abercrombie & Fitch has suffered after refusing to cut prices, yet it resists big discounts. The retailer hopes to win back customers by emphasizing edgier fashions.” LATimes 8/15/09

 Target, which had outsourced much of its e-commerce technology and fulfillment services to Seattle-based Amazon.com (NASDAQ: AMZN), will launch and manage its own Target.com platform beginning with the holiday season in 2011. Atlanta Business Chronicle 8/7/09
 
Nissan Motor Co.'s environmentally friendly electric automobile, the Leaf, will go on sale in Japan, the U.S. and Europe next year. Designed to avoid a “stereotypical futuristic design,” the blue hatchback has a sporty design and a recharging opening in the front. Huffingtonpost.com 8/3/09
 
Apple reportedly offered a refund to the family of a child whose iPod music player exploded after being dropped, only if they would sign an agreement that threatened legal action if they ever disclosed what had happened.  The Times 8/3/09
 
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Brand News: Amazon, Zappos, Taco Bell, Delta Air Lines, Krystal, Candy.com

July 23, 2009 by anne

Amazon.com Inc. (AMZN) has reached an agreement to acquire Zappos.com Inc., one of the largest online sellers of apparel and footwear. Atlanta Business Chronicle 7/23/09

Gidget, the 15-year-old dog best known for her Taco Bell ad campaign, died of a stroke Tuesday in Los Angeles. Uttering the words "Yo Quiero Taco Bell," Gidget, a female dog, played a male dog in the commercials. CNN 7/23/09
 
Delta Air Lines Inc. (DAL) Chief Financial Officer Hank Halter sent a memo to the carrier’s employees on Wednesday, noting the airline no longer expects to be profitable in 2009, the recession has cost the airline $3 billion in revenue so far this year and it may have to make more job cuts.” Atlanta Business Chronicle 7/22/09
 
Fast-food chain The Krystal Co. has launched its own energy drink -- Krystal Blitz -- to go with its famous burgers. The “Lemon Berry” flavored drink has a blend of natural ingredients and enhancements including taurine, guarana, green tea extract and caffeine, and is combined with Sprite. Atlanta Business Chronicle 7/20/09
 
Candy.com is now a shiny new, online store for all sorts of sweets after the domain name was sold for a whopping $3 million back in June. The fairly old-school website offers a range of lollipops, jelly beans, gum, candy bars and dispensers which it ships all across the United States.” Techcrunch, 7/20/09
 
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Deloitte Survey: Back-to-School Shoppers Will Focus on Basics

July 20, 2009 by anne

Fewer consumers expect to reduce their spending on back-to-school items compared to last year, although economic concerns will continue to weigh on their shopping plans, according to a survey by Deloitte.

Among those surveyed, 64 percent said they plan to spend less on back-to-school items, compared with 71 percent in 2008. Four in 10 (43 percent) say they will cut back their spending by more than $100, down from nearly five out of 10 (48 percent) last year.Read more

Brand News – H-P, Sears, Hyundai, Toys R Us, Eddie Bauer, Crocs, Blockbuster, Wal-Mart

July 20, 2009 by anne

Hewlett-Packard (HPQ), Sears (SHLD), and Hyundai are among a growing number of brands offering ‘insurance’ if consumers don’t achieve a certain level of cost savings as a result of purchase, or lose their jobs. Brandweek 7/18/09 

 Two hot-selling new beverages, Joose and Four Loko, have come under scrutiny by state attorneys general concerned that the drinks' alcohol-and-caffeine content is a dangerous mix and may be designed to appeal to underage drinkers. Wall Street Journal 7/17/2009
 
Toys R Us relaunched the internet domain Toys.com with a goal of building its online brand portfolio in the search market for toy and baby products. The site provides the retailer with a new way to redirect users to the company's family of e-commerce sites including Toysrus.com, Babiesrus.com, eToys.com and babyuniverse.com. ” Brandweek 7/17/09
 
Eddie Bauer Holdings announced Friday the final results of its bankruptcy sale process. Under the terms of the deal, Golden Gate Capital will maintain a substantial majority of Eddie Bauer's stores and employees in a newly formed going concern company. Chain Store Age 7/17/09
 
“Who needs a second pair of Crocs (CROX) in a recession, particularly when the first pair is holding up just fine?” The future of Crocs is in doubt as the manufacturer struggles with millions of dollars of debt and a surplus inventory of shoes. Washington Post 7/16/09
 
Blockbuster Inc. (BBI) has moved deeper into consumer electronic sales by partnering with portable media manufacturer Archos to sell the Archos 10 netbook, a mini-laptop that will allow users to conveniently play movies and other entertainment.” Atlanta Business Chronicle 7/17/09
 
Wal-Mart (WMT) is asking its suppliers to provide environmental information on all products carried in its stores. The company will use that information to label each item with an eco rating, designed to measure its environmental friendliness. CNET 7/16/09
 
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Brand News: Twitter, Microsoft, Starbucks, Mercedes Benz, Delta Air Lines

July 17, 2009 by anne

An anonymous hacker broke into the personal accounts of some Twitter employees and was able to obtain confidential information on Twitter. The hacker distributed the information to sources including tech blog TechCrunch, who published portions of the information.  

In a blog post, Twitter cofounder Biz Stone reassured Twitter users that the theft resulted in stolen documents, not compromised accounts. He added, “We are in touch with our legal counsel about what this theft means for Twitter, the hacker, and anyone who accepts and subsequently shares or publishes these stolen documents." Twitter, 7/15/2009

 At the Microsoft WorldWide Partner Conference, Microsoft COO Kevin Turner commented that Microsoft (MSFT) knew the Laptop Hunters ad campaign was successful when the Apple (AAPL) legal department called and told Microsoft to stop running the ads because Apple had lowered their prices. PC World 7/16/09
 
Also at the conference, Turner announced that Microsoft will open their own retail stores “right next door to Apple this fall.” Apple’s success in the retail channel has helped them to gain significant mindshare. Gizmodo 7/15/09.
 
Starbucks (SBUX) is testing community-inspired names for its stores in the Seattle area to reflect the neighborhood’s personality. For example, one store will be renamed 15th Avenue Coffee and Tea and will serve wine and beer, host live music and poetry readings, and sell espresso from a manual machine versus the automated machines seen in most stores. Seattle Times 7/16/09 via Huffington Post.
 
A man who allegedly set off a small bomb on Memorial Day at a New York City Upper East Side Starbucks was arrested after he bragged about it to friends. The suspect is reportedly a fan of the 1999 movie "Fight Club” which includes a scene where a Starbucks is destroyed. CNN 7/15/09
 
Mercedes Benz has released a statement explaining that a malfunctioning warning light mistakenly appeared in a television spot for their E Class vehicle and “is in no way a reflection on the quality or durability of the E-Class.” It was an embarrassing error for a vehicle touted as the “most advanced” automobile on the market. The spot appeared briefly on YouTube before being yanked by Mercedes Benz. Autoblog 07/13/09 via mediabistro.com.
 
Andy Azula, the actor in the UPS (UPS) Whiteboard commercials, and the creative director at the Martin Agency, posted on his blog about a delayed Delta Air Lines (DAL) flight that kept him and his family waiting at the airport for 13 hours. Azula’s original post was removed but can be viewed here.    
Advertising Age 7/16/09
 
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Discovering WOW - A Study of Great Retail Shopping Experiences in North America

July 15, 2009 by anne

The Verde Group, the Jay Baker Retailing Initiative at the Wharton School of Business and the Retail Council of Canada conducted a survey of 1,000+ North American shoppers to explore what constitutes a “WOW” shopping experience.

 A WOW shopping experience is defined as retail interactions that are particularly great, that surprise and delight the customer, and that build long term loyalty to a retailer. Download Executive Summary.

Wharton Working Knowledge 7/8/09

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