The Halo Effect

What the Hell is...Mashups?

2008-09-29T15:27:26Z

A mashup is the melding of two sources of material or data that when combined create a new utility or something completely different.

The concept of a mashup dovetails with the rise of social networking as websites like Digg or Reddit, acting as aggregators, pull together news or feeds from multiple sources. That platform is then often designed to be interactive, allowing users to share opinions, reviews, or update information in a fashion similar to Wikipedia.

The idea of creating web-based applications is also a popular choice for mashups as developers have used mapping software, such as Google Maps, to create everything from restaurant guides to real estate comparison sites. Mashups have also been popular in music as artists sample parts of another song to remix an entirely new song.

The mashup is indicative of the way we now consume media as traditional sources are intermingled with online campaigns in an attempt to discover what appeals to consumers.

Origin:

Mashups are considered a part of Web 2.0. The term was first used to describe a web application that pulls together content from a variety of sources to perform a specific function, whether it is comparing airfare rates or finding new restaurants.

What the Hell is...Fansumers?

2008-09-19T13:15:17Z

A fansumer is a consumer online, who is a promoting a brand through word-of-mouth marketing. It is a direct reference to Facebook's "fan" designation, wherein a user can be a fan of a given product or celebrity and establish a connection on the social network. A fansumer identifies with a brand's values and promotes it as a trusted voice to those within his or her online community.

Accordingly, the ways in which products are being marketed have shifted online. As brands accumulate information about consumers' preferences, they can place advertisements in front of customers who are more likely to champion their message. Companies are now becoming personalities on Facebook, with brands like Seventeen encouraging people to become fans online and promising insider access.

Corporations seek out fansumers to act as brand loyalists, translating the virtues of a product or service online into the new world of social media.

Origin:

Forrester Research introduced the concept of the fansumer in order to describe the evolution of the consumer online as they interact with targeted advertising on social networking sites.

What the Hell is...Uncanny Valley?

2008-09-12T21:42:57Z

The uncanny valley is a theory that suggests there is a tipping point where people will reject digital or technological representations that appear too similar to human beings. By making artificial movement or speech appear too natural, a robotics or model designer will inadvertently trigger feelings of revulsion. The concept of the uncanny valley initially only referred to robotics, but as computer graphics have evolved, the same phenomenon has been observed in the world of film and video animation.

The movie "Polar Express" was panned, with critics contending that the motion capture process created animated characters that were more disturbing than cuddly. And video gamers have remarked in recent years that digital characters are becoming unsettling.

The idea of the uncanny valley has even been extended to photo retouching, as consumers have difficulty reconciling digitally altered photos with their expectations of a subject's appearance. A recent advancement in photorealistic characters from design firm Image Metrics may have provided an answer by analyzing specific movements and timing gestures.

Origin:

Japanese robotics inventor Masahiro Mori defined the concept in 1970. He was looking to explain why people suddenly rejected his creations as they became more evolved. ~~Mori based his theories on the philosophies of Ernst Jentsch and Sigmund Freud,~~ in which both men expounded on the idea that something can be familiar and unknown at the same time.

Correction: One of our eagle-eyed readers noted that the connection between Mori's theory and the work of Freud and Jentsch was made after his postulate was released. Mori's work was not based on their philosophies, it is just a correlation that has been drawn by subsequent researchers.

Brilliant... or Not: The Olympic Edition

2008-09-12T21:31:45Z

The 2008 Summer Olympics was one of the most marketing and branding-dense spectacles the world has ever seen. Not only did brands from all over the world and from many different segments strut their stuff in Beijing, but the world also witnessed a large scale branding effort on the part of an entire country - China.

So now that the torch has been passed onto London for 2012, and we've had a few weeks to digest our victories (go USA!), we can really look back and see which brands struck gold and, well, those that did not.

]]> And it's Speedo LZR Touching the Wall First...
With Michael Phelps and the rest of the US swimming team raking in the hardware, Speedo, the pre-eminent brand in swimming, had everyone saying their name and talking about their LZR swimsuit. Sure, just about 99.99% of the population has absolutely no need for an exoskeleton swimsuit made of alien (they exist) material, but if anyone asked you to name one brand associated with swimming, I'd bet Speedo would be one of the first brands to roll off your tongue.

Puma celebrates before crossing the finish line ahead of Nike and Adidas...
Nike and Adidas put (spent?) a lot of moola with (on?) major Olympic campaigns and came away relatively even on their respective investments. Nike's major star, Chinese hurdler, Liu Xiang, had to pull out last minute due to injury as did Adidas' Tyson Gay. Sure, their logos are probably ranked one and two among athletes in the Olympic village, but no one accounted for Usain Bolt being the fastest, most electric man alive. And he happened to also wear shiny Gold Puma's, which Puma did a nice marketing program around. It seems as though brands focusing efforts on one star or one athletic area did very well (registration required); now just choose the right sports and the right athletes.

Polo Ralph Lauren's Opening Ceremony Outfit for USA looked Good
...but that doesn't mean they were well made and tailored correctly. Apparently some people genuinely cared about what the athletes wore at the Opening Ceremony and cried foul because Polo had adorned the outfits with their huge "man on horse" logo (but Adidas' three stripes and Nike's swoosh weren't at all overwhelming). Anyhoo, the choice of Polo to be the outfitter for Team USA seemed to be a pretty good one, considering it is one of the preeminent American fashion brands. In the end, the Americans looked good from afar, while on TV... which is all that matters right.... right?!? Ironically, the athletes' outfits were hastily made in China and better quality replicas are on sale to the public through Polo.com... and when you think about it, what could be more American than that?

Ten years from now, everyone will remember how great the Beijing Olympics were...
This was China's Cotillion and no one, I mean NO ONE, was going to stop her from looking amazing and being known for throwing great parties. China's handling of the Olympics could go down as one of the greatest rebranding efforts to date - but it definitely didn't come easy, as many eyebrows were raised at some of the host country's actions. While they broke many branding rules Western brands adhere to, they also excelled in other areas. In the end, China has come away from the games proudly taking their seat at the Superpower table.

Among the good are:
The Chinese People
Genuine enthusiasm, not just nationalism, shown by the people of China, who came out to support all athletes. Yes, sure, in a socialist country this should be expected - whether it was a mandate or not - but by all accounts the real hosts, those on the ground working, volunteering and being fans, were gracious and welcoming.

Chinese Athletes (other than 14-year-old Gymnasts... maybe)
Boy did those Chinese athletes show up to play? They took home the most gold medals, made great strides in sports that they had never really competed in before (beach volleyball anyone?), and did so displaying world-class sportsmanship.

...and now the bad:
Censorship
Leaving room for absolutely no transparency and suppressing opposing points of view is never a good thing. The ramp up to the games with the often violent pro-Tibet protests, the censoring of specific websites and media (like iTunes), the revocation of Joey Cheek's (of Team Darfur) visa, and the so-called "protest sites" that no one could get a permit to doesn't help China improve its standing in its weakest area -- human rights. In many ways, denying or ignoring opposing voices brings more attention and only legitimizes those opinions further.

Putting on a Semi-Fake Show
Ok, ok, so with or without simulated fireworks and adorable little girls (lip)singing - you were both equally cute! - the Opening Ceremony was absolutely spectacular, setting the bar impossibly high. But it would have been just as good without any of that BS. These were small, forgettable details that turned into global news (albeit using the term "news" broadly) pieces.

Ineligible Athletes
Regardless of what you think about the actual age rule for gymnasts at the Olympics, a rule is a rule. Call us sore losers - but if those girls aren't 16 in 2008 they should not be allowed to compete. And when just a passport is an accepted form of identification and you have a Chinese government that wants Gold medals, no one is stopping them from changing a few dates. For crying out loud, last time I went to get my driver's license I needed four forms of identification (the passport only counted for four points!). It's a little disheartening to know that NYS DMV has more stringent policies than the Olympic Gymnastics Federation or whatever it's called.

What Smog? What Pollution?... oh you mean that huge cloud of black smoke?
China's record with human rights is only rivaled by its abysmal record with pollution. But Beijing's mythical smog and the efforts to control it and/or avoid it made quite the story line. One of the more embarrassing incidents were the American cyclists stepping off the plane wearing Star Wars-esque masks. Sure, this is like the pot calling the kettle black (America is only slightly better in the war against pollution) but, heck, was it me or was every day gray and gloomy in LA Beijing?

In the end, China took a big gamble and hoped that after pulling all these antics, the main card would come up ace... and for the most part, it's been true... most people won't remember anything other than the names Michael Phelps and Usain Bolt and the fact that the Beijing Olympics were... well, pretty damn good.

What the Hell is...Contextual Marketing?

2008-08-29T21:33:51Z

Contextual marketing is online advertising placed and appearing according to how relevant it is to the content the consumer is viewing in response to a search. It is targeted advertising that looks to align with the interests of a web surfer.

Google AdSense is the most popular form of contextual marketing. A search engine bot, known as Mediabot, indexes the material on a website and determines which advertisements submitted to Google are a match. Search engines, including Yahoo! and Microsoft, display advertisements on search results pages. Those advertisements are selected based on the key words that a person enters into the search engine.

The idea of contextual marketing has been controversial because critics claim it represents an invasion of privacy. In 1999, when the search marketing company DoubleClick (now owned by Google) attempted to use the information it had collected online about consumers to create targeted promotions offline, the corporation was taken to court over its privacy policies. Public reaction led online marketers to focus on delivering marketing messages that drive responses without being intrusive.

Origin

Contextual marketing is based on the idea of personal profiling, where information about web surfers is collected via cookies. In 1995, permanent cookie technology was invented, which allowed servers to send packets of information to web browsers, and vice versa, in order to track the websites visited by the person at the computer.

What the Hell is...Participatory Advertising?

2008-08-08T14:08:03Z

Participatory advertising is the idea of co-creation, where a marketer introduces a concept to the public and then asks consumers to use their creativity to expand upon that idea.

Corporations reach out to brand evangelists to ask them to create commercials or new brand messages for products they love. The user-generated content is then uploaded to brand-specific websites or video-sharing sites like YouTube. By yielding brand control, companies like MasterCard and Converse have managed to engage customers in promotion across social networks.

Participatory advertising also involves the changing manner in which people consume marketing. Instead, customers are now interacting with brand campaigns, as the Internet has moved marketers away from traditional, static methods of advertising. Under this methodology, consumers are no longer willing to passively digest product information, but instead want to form a connection with a brand. In a recent successful example, Dove leveraged this approach with the Campaign for Real Beauty, which asks consumers to help change stereotypical ideals of beauty.

Origin:

The first examples of participatory advertising were seen in the early 1990's as Nike parlayed a series of advertisements with Michael Jordan and Bugs Bunny into the creation of a feature-length cartoon, "Space Jam." Advertising evolved into a participatory model with the introduction of the Internet and a corresponding change in consumer culture.

Brilliant... or Not: Week of July 21, 2008

2008-07-21T15:32:04Z

Apparently this summer, America has been put up for sale (mostly good deals), privacy has become a hot button issue and that huge French cycling thing got started again.

]]> InBev buys Anheuser-Busch for a cool $52 billion... in cash.
While everyone's fixated on China and the Middle East, the Dutch have been quietly putting euros in their piggy bank waiting for the right deal to come along. And boy did they find one in Anheuser-Busch! It's such a good deal... it's almost too good. If I were a head honcho in the Federal Reserve, I'd make sure that this whole sub-prime thing wasn't caused by some crafty people in the Netherlands (just kidding Holland).

Let's give St. Louis-ians (sp?) ? some time to mourn... ok, moving on. Listen, Budweiser is the #1 beer in the world. It will still be brewed by the same people in the same breweries. It will still be available anywhere in the world where beer is sold (if not more places) and it will still be judged mediocre by beer aficionados. Think of it this way, there are far more important things to be worried about, like oil prices and the new President.

The Abu Dhabi Chrysler Building?
The Chrysler Building holds a special place in our heart as a beautiful example of Art Deco. Now, it's just a beautiful example of Art Deco architecture that belongs to someone else...

While Abu Dhabi Investment Council now owns 90% of the building (for $800 million), German-owned Tishman Speyer owns the remaining 10% of the space AND the land that the building is built upon. So before anyone goes crazy about the UAE owning an American icon, remember that it's really just the Europeans who own it. We like to think of it more as an art investment (and a good one at that), than a takeover.

Google loves you, will keep you anonymous... so keep posting videos on YouTube.
Posting copyright protected videos online is illegal, ok? And to help weed out those lawbreakers, Google will be providing names. But fear not all you do-gooders - they've figured out a way to keep it anonymous. Unless of course you are a lawbreaker, which means you're screwed.

Google's ingenuity never ever really ceases to amaze. Just when you think, "Oh man, that's gonna leave a mark," they duck right out of the way like an expertly trained ninja and turn it right back on you. Google's promise to users and advertisers alike is to provide relevant applications and content that utilizes the personal information they provide, making privacy a critical issue for Google. So, it comes as no surprise they were quick to remedy the situation.

EBay not responsible for letting other people scam you.
It's not your fault for buying fakes (but it kinda is). In a landmark ruling, venerable online marketplace eBay was not to be held liable for counterfeit goods (in this case it was Tiffany's) being sold, just as long as they aren't knowingly doing so...and, well, why would they know?

It most certainly is an interesting case, and one that will be tried over and over again (an EU court ruled against eBay in a similar case involving Louis Vuitton....but that's the French). For now, though, eBay is in the clear and is seeking ways to stay ahead of the curve by focusing on a more recession-proof business model.

The Tour de France Just. Can't. Catch. A. Break.
After falling from the brand's high point during the Lance Armstrong years to its low point the past two years with high-profile riders testing positive and many notable brands pulling their sponsorships, the cycling world seemed to be getting back on track. Unfortunately, three riders and one team have already been banned or pulled from this year's Tour due to doping.

Le Tour has taken a beating the past few years and interest in it is waning. While the Tour has made valiant efforts to fix its problems, many riders are still trying to find ways to cheat. They won't have anything to ride in if they keep undermining the value of professional cycling's brand and its sponsors continue to drop out. The bright spot is Team Slipstream (aka Garmin-Chipotle), an American team whose mission is to restore the luster of cycling through true accountability, transparency and commitment.

What the Hell is...Murketing?

2008-07-11T21:18:12Z

Murketing is a combination of the terms murky and marketing. It is a deliberate choice by a corporation to create a brand image that is mysterious or not well-defined in order to inspire curiosity in the consumer. With technology changes and new approaches to viral and word-of-mouth advertising, it isn't immediately clear that a brand is behind a new video or message -- be it mobile phones that pop popcorn or a giant LEGO boulder chasing Indiana Jones.

A successful murketing campaign is intriguing enough that potential customers will seek to discover exactly what is being sold or who is the one selling to them. The consumer then ascribes values to the brand and is the one to proactively establish a relationship. Critics are split on whether the murketing of viral videos, like BMW's "Rampenfest" ads, will ultimately damage or save brand reputations.

Origin: New York Times columnist Rob Walker coined the term "murketing" in an article for Outside magazine when he was seeking to describe the deliberately obsequious marketing of Red Bull. He regularly explores the relationship between consumers and marketers on his blog, Murketing.com and in his new book, "Buying In."

Bringing the University to Market

2008-07-09T22:29:48Z

The University President: The New CMO

Why would a prospective student, faculty, donor or alumni want to live your brand? Why are you the first choice for some students? What gets your faculty up every morning? What keeps alumni connected emotionally and financially? It is the desire to be part of a unique community that shares a vision. It is participating in a differentiated experience that springs from the very soul of the institution. It is the university brand.

Administrators, faculty, and students all contribute, shape and help build a brand. Traditionally, the university president's responsibilities have been focused on institutional planning, balancing the budget and exceeding university fundraising and endowment goals. Over time, the president has become responsible for student recruitment and retention and improving the overall student experience.

Who is the custodian of the soul of a university? Now, it has become a university president's responsibility.

]]> Voice of the Customer

In other industries it is the CMO, or Chief Marketing Officer, who is responsible for ensuring that a company remains focused on the customer. The CMO manages a company's communications and actions to deliver a clearly defined customer experience.

"Many colleges and universities are failing to develop their marketing potentials because their presidents are mistaking insular admissions, promotion or development activities for total marketing activities," writes Dr. Eugene Fram .

Higher education institutions historically do not have a centralized customer marketing organization. As a result, college marketing efforts are often disjointed, occasionally overlap, and lack a university-wide focus. Many institutions have let the market define who they are. Today, to be successful, a university brand needs a champion at the top to lead that process and provide focus to the university's message.

Evangelist for the Brand

And no one is better positioned to be that champion than the president. He serves as the public face of the university, and acts as an advocate for his or her faculty, administration and students to the Board of Directors. As such, the president has the unique perspective to create a shared vision for a university, one that can align internal stakeholders and more effectively utilize resources and actions. The president's commitment to marketing and communicating a university brand sends an important signal to the institution. But how do you deliver on student expectations and ensure student retention without first defining those expectations?

Translating and expressing the brand is the first step. By working with an agency or brand consultancy that specializes in education marketing, the university president can develop a plan for approaching university stakeholders in order to help them understand the brand's values. Once you've established the basis for a unique experience, the key is to roll out the new identity from within.

Catalyst for Collaboration

Successful university marketing begins with internal constituents, especially faculty. Stereotypically, faculty is resistant to marketing efforts because they have not been involved in the choices that led to resource allocation. This can be avoided, simply, by including faculty in the formative stages of the brand decision-making process. You can build trust and buy-in by demonstrating how a new brand vision will not only benefit the students, but also the faculty and university as a whole.

Then, when the president reaches out to all constituents to bring them together to find common ground, he or she is acting as a powerful instrument for collaboration and change.

Champion of Resources

The president is also responsible for institutional planning and budget allocation, a political hotbed, yet an important strategic component in brand building. When budgetary resources are prioritized and allocated to deliver on a promise of a quality student experience, all constituents are working toward the same goal. Discussions can begin by simply asking: "How does this decision strengthen our brand, our student experience? Are there other priorities?" Soon all funding discussions of any institutional initiatives, be they faculty recruitment or meeting student enrollment goals, have a singular focus.

Another area that needs to be aligned is the disparate communication resources spread across the university. By tradition, education budgets are fragmented under different departments, reporting structures and promotional goals. The approach and strategies for individual schools and programs are frequently inconsistent with overall university messages. Often there isn't a singular communication plan that focuses all of the university's resources on established goals.

Without a definitive message, you can't expect students, faculty and donors to come to the same conclusion about what you stand for. The president must integrate all communication efforts, from advertising, public relations, website development, search engine marketing, brochures and newsletters to student retention efforts, under a specific reporting and management structure in order to easily direct university-wide communications. Establishing a consistent brand message for the university allows you to use resources more effectively and increase the impact of outreach initiatives.

Magnet for Support

According to the Council for Aid to Education, declines in government funding are requiring colleges to actively solicit private donations ($29.75 billion in 2007 ) and rely more heavily on fundraising. Being a worthy cause just isn't enough anymore. There are many institutions vying for project funding. Donors want to invest in institutions and programs that share their values, have a clear focus and can make an impact. Fundraising can be more effective when you have specific student goals in mind because it helps donors understand where the university is headed and how contributions will help achieve that goal. The more powerfully you can make your brand's purpose come to life, the more effective you will be at generating support for achieving its goals.

The Brand Starts Here

When a president starts thinking like a CMO, all of those seemingly disparate duties become unified under a clear objective: building the university brand.

The university president must be ready to provide the inspired leadership that will define what a school stands for and where it is going. By actively defining the values and marketing position of the university brand, the president can galvanize resources to gain university endowments and exceed performance goals. The brand vision must start here.

The customer or student can get lost without a champion at the top. The time has come for the president to take responsibility for defining and executing the university brand. He, or she, is the difference engine who will shape the future through a well-articulated higher education marketing initiative that involves all aspects and participants in the university life.

Download this white paper

What the Hell is...Piggybacking?

2008-07-03T17:00:35Z

Piggybacking is where smaller brands use well-known brand names, trademarked terms, or slogans in their online search advertisements to draw traffic to their websites. It is a growing issue for search engine marketers and Fortune 500 companies as advertising dollars shift online where brand abuse is rampant. Google's trademark policy is hands-off and encourages advertisers to resolve trademark disputes directly with a company that they believe is violating their trademark rights.

Marriott International and American Airlines contend that this practice is potentially driving up costs and confusing potential customers. American Airlines filed suit against Google last year, arguing that unchecked piggybacking was a case of trademark infringement.

Origin
Piggybacking was initially a business term that referred to reducing costs by adding a new project to an existing one. It was extended to the online arena with wireless networks to refer to computer users hopping on an unprotected wireless connection.

What the Hell is... Digital Immigrant?

2008-06-09T13:18:24Z

A digital immigrant is a generational term, used to refer to people who were born before a given piece of digital technology was invented. It is a generation of baby boomers and consumers of a certain age (even Rupert Murdoch), who are approaching technology as if it were a foreign language.

As such, digital immigrants experience the same difficulties when they come into contact with digital technology as adults. Their learning curve is steeper and they may be reluctant to adapt to new systems.

The process of assimilation is always easier for those that learned the language of our digital world while growing up. Digital immigrants are often juxtaposed with digital natives, the younger generation that is accustomed to using the wealth of digital technology. The Digital Natives project, a collaboration between Harvard University and the University of St. Gallen, is looking to understand how different generations understand and apply information.

Origin: The term digital native is attributed to writer and consultant Marc Prensky. He coined the term in a 2005 piece for Educational Leadership, while explaining what teachers have to do to reach students based on how they currently receive and process information.

One Message Under Blogs

2008-05-29T21:02:24Z

Dallas Mavericks owner Mark Cuban, who has never been shy about speaking his mind, recently made the decision to ban all bloggers - major and minor -- from the locker room. In a post on Blog Maverick, justifying his decision as a move toward equality, Cuban argued that he didn't feel that a blogger from the mainstream media should have more access to his players than a person who blogs as a hobby.

His assertion that this was an effort to ensure equality was met with heavy criticism from writers, both on and off the Internet. It was seen as a heavy-handed attempt at censorship and the backlash was immediate and overwhelming. In light of Cuban's well-developed persona, the ban seemed particularly out of character. He's opened himself up to criticism for eight years as the most connected owner in sports. By listening to customers about how to improve the fan experience, Cuban has built a brand based on accessibility.

]]> So, when he shut off blogger access to his players, it was seen as petulant. Cuban was taking his basketball and going home. Popular sports blog Deadspin and Dallas Morning News reporter Tim MacMahon opined the ban to be a possible reaction to negative coverage. Even worse, it made Cuban's previous openness appear to be an artifice. Suddenly, a CEO who shared his opinions on his blog seemed to be trying to prevent others from forming opinions of their own.

After the NBA informed Cuban that he was unable to ban media bloggers from the locker room, he reversed course and opened the locker room to any and all comers from the blogosphere.

In his defense, Cuban is not the only member of the sports world struggling to deal with new media. A constant barrage of rumors and an endless dissection of business and game decisions are creating a news cycle that mirrors the world of the stalkerazzi and celebrity journalism.

If any owner appeared to be ready to handle the new media environment, it was going to be Cuban. His media and technology savvy suggested that he would be able to find an innovative way to grant access to his players and staff, despite a proliferation of bloggers. But instead of opening the locker rooms, as he had done with his entire franchise, he shut the doors. And the idea that this was about equality or access ended with that ban. Instead, this appeared to be a policy that was borne of his personal belief that newspapers are a dying industry. It appeared that he was punishing the mainstream media, whether that was his intention or not.

Nobody can control the blogosphere. Our world of new media means that news is instantaneous and that a brand's reputation is an organic, changing concept. In establishing your policy on interviews and media relations, you need to assess the image of your corporate brand. For Cuban, his brand was built on a commitment to engaging his consumers in an open discourse. He claims transparency and authenticity as core values. The first step you need to take in crafting a policy for working with blogs is to define the core brand values of your organization. If you value efficiency, than you need to deal with issues and developments in an expedient manner. If it's customer service you value, your corporation should respond to all complaints in a human and decent manner. The key is to provide an unchanging message that is in line with your core brand values, because then you're the same company whether you're dealing with The New York Times or a personal blog with a limited readership.

You don't have to open up your corporate boardroom to anyone with a pen or laptop, but you do need to be consistent in your response.

Viral ad was Jean-ius

2008-05-21T20:57:41Z

If you ever need a blueprint for viral video success (or even a new media approach), it's sitting on YouTube's most viewed list right now: Guys backflip into jeans.

The viral spot created for Levi Strauss by the advertising agency Cutwater has rocketed past 2 million views in just a little over a week's time. The premise is simple - a group of performers do a series of increasingly complicated tricks to step into their jeans.

]]> Levi Strauss followed two critically important steps in the creation and promotion of their video: they didn't oversell their product and they immediately took credit as soon as they were questioned about the advertisement.

In viewing this ad as a public relations effort or publicity stunt, Levi correctly focused on creating a buzz worthy idea and not a product-heavy press release. They didn't try to sell anything or overtly brand their product. The closest they came to discussing the actual product of button-fly jeans was to have one of the performers point out that "at least there's no zipper," off camera.

Moreover, as opposed to a viral video that was the result of consumer-generated content, Levi maintained control over how their product was used. That helps to limit any potential backlash wherein a disgruntled consumer can subvert an open campaign or complain about the selection process, leading to criticism online. It also allows the company to use media professionals to craft a video in which they would be proud to feature their company's products.

Perhaps the biggest reason this video has found success and has been a public relations bonanza for Levi is how the company dealt with media requests after Gawker's Nick Denton suggested the video spot might be a stealth advertisement campaign. Corporate representatives immediately admitted the spot was created for Levi and added a sense of authenticity to the clever spot.

In many ways, Levi has created a methodology that can be replicated in an arena that has been characterized by its constantly shifting value system. What is successful on the Internet today is fleeting tomorrow. Friendster begat MySpace which begat Facebook. So part of any online media strategy has to include efforts to build spikes in website traffic or renew interest in a product.

If you're considering a viral video, remember it's okay to have a bit of fun with your brand and figure out a completely impractical use for your product. Who knew Diet Coke and Mentos could have such an effect on the American populace? But the critical element is in the weeks following the launch of a new campaign. When you admit that you're not only in on the joke, but enjoying it as much as everyone else- your consumers won't feel betrayed by the stealth launch of a viral advertising campaign. And that means the conversation will continue with you and your brand right smack in the middle.

Brilliant... or Not: The Airline Edition

2008-05-16T19:52:43Z

Big headlines about the airline industry have graced the front pages of newspapers, magazines and websites recently. After two years or so of profitability and the looming threat of a US recession and rising oil prices, airlines are struggling once again. Rather than raise ticket prices, airlines have been creating new fees and will soon be asking passengers to pay for a second checked bag. The key to surviving trying times is keeping your eye on your brand, and it seems as though only a few airlines are keeping that in mind.

]]> The Watch Out...Airline Safety Section
And in other news...Southwest Airlines flies planes not approved for air travel
Wait, what? Not cool. In a stunning revelation, Southwest Airlines admitted to flying just a few planes that weren't cleared by the FAA to fly. Come on people, like you haven't driven your car past registration before...what's the big deal? Ok ok, maybe not a great comparison and since we wrote about this in a very recent post... no need to rehash it.

Southwest has built a lot of brand equity over the years and has earned a reputation for being one of the best airlines. It'll be interesting to see how it plays out... surely time will tell.

American Airlines cancels thousands of flights
In the wake of Southwest Airlines' news, American Airlines grounded all of its MD-80 planes to check for malfunctions, resulting in thousands of flight cancellations over the course of four days in early April. Highlighting a squeeze on margins across the industry, many airlines outsource maintenance work on their airplanes, leaving the Federal Aviation Administration and their contractors to be held responsible...in theory.

Still in the end, it's American Airlines' (or insert airline name here) whose brand is on the line. While others may be at fault, AA will have to pay the bill which will be passed along to you in 22A and the snoring guy next to you in 22B.

The "Uh Oh"... Bankruptcy Section
Frontier Airlines, ATA Airlines... file for bankruptcy protection
Rising oil prices and credit woes coupled with the inability to raise prices (and still fill their planes) have forced both Frontier Airlines and ATA Airlines to seek out bankruptcy protection.

While Frontier is determined to continue flying, ATA has decided to stop all operations immediately. This led to more than a few bad headlines about stranding all types of flyers including and not limited to: members of the US Armed Services going on leave, Boy Scout troops and school field trips. In summary, not good.

Eos Airlines: Apparently taking "business class" doesn't really pay off....
No, this is not just another reason why getting an MBA might be overrated. Eos Airlines, the transatlantic "business class only" carrier, has filed bankruptcy and (like ATA) immediately ceased operations.

It is certainly a bit alarming with all these low-fare airlines or alternative airlines going under, even though their business model seemed to be sound. It only paves the way for larger airlines to seek out mergers or partnerships to help deal with rising costs... speaking of which...

The "hey, let's get the band back together"... Merger Section
Delta and Northwest Merger?
Ah ha! Just as everyone pretty much said a merger was definitely, most probably, will be, certainly happening between Delta and Northwest to create America's largest airline, there is still no word on when exactly it will be completed.

Ultimately, Delta-Northwest could be good for both airlines and consumers. Hopefully, the merger fits well with all the extensive brand work Delta has invested in, because no one wants "change," as their current campaign puts it, when it means you're getting lost in the transition.

Continental "it's not you, it's me"... and it helps that American Airlines is cute.
After the Delta-Northwest announcement, everyone assumed a Continental-United Airlines merger was bound to happen. Although it appeared that Continental was genuinely interested in United, ultimately a merger just wasn't meant to be. They didn't see a future in each other; yet another high-profile breakup like Russell and Kimora, Brad and Jennifer, Reese and Ryan... heck if they can't make it, no one can.

In other news, Continental (seemingly on the rebound, yet always keeping its options open) has decided instead to pursue a polygamous partnership with American Airlines and British Airways.

For Continental, a partnership is more palatable than a merger, because each partner can maintain their brand more efficiently. For a very strong brand like Continental's, having avoided any negativity and consistently maintaining the top position when it comes to customer satisfaction, THAT is a great thing.

The "light at the end of the tunnel"... Not Everything's SO Bad Section
Virgin Airways flys the first flight powered by biofuels
Say what you want to say about biofuels and the fact that only one engine was fueled by it. Whether or not it ultimately becomes the next generation of fuel, the fact that a few major corporations are searching for better alternatives in light of increased consumption of fuel and increased emissions should be promising.

There will no doubt be bumps in the road as we fully realize the 360° effect of developing new fuels. But when air travel is one of the largest contributors to global warming, it is good to see Virgin Airways taking the initiative and staying proactive, something ever so important when times are tough.

Delta's new seats for Coach, only 7 years in the making.
Delta has just announced a new innovative design and configuration of seats for the coach class aimed at providing more space and comfort... While we (not us personally) have seen improvements in the first class and business class seating arrangements, this is the first true modern upgrade to the back end of the plane.

Some smart people might point out that this new design - with staggered seating and a unique cocoon shape - doesn't quite allow for classic passenger improvisation such as taking up a whole aisle on an empty flight or snuggling with loved one. But when you are on those extremely packed sardine-can flights (which these days happen more often than not), these new seats would definitely improve the comfort of all air travelers.

Paper, Plastic or Penicillin?

2008-05-08T19:58:47Z

On the heels of its successful generic prescription drug plan, Wal-Mart announced in 2007 that it planned to open several hundred medical clinics within its retail stores. Wal-Mart CEO Lee Scott believes the number could grow as high as 2,000 by 2014.

The model was simple. Doctors or nurse practitioners provide routine medical care - testing for strep throat or giving flu shots at a fixed rate. CVS, Walgreens, and Rite Aid were quick to follow suit, saying that they were considering similar measures.

It's a classic example of Blue Ocean Strategy. Faced with slowing revenue gains, Wal-Mart decided to curb its expansion plans and focus on deriving more income from its existing stores. Rather than battle Target or CVS and accept diminishing returns, the company set out to get ahead of the curve and launch a retail, healthcare operation.

]]> The clinics were meant to provide a source of rent and also offer a marketing benefit with the possibility of increasing foot-traffic. Wal-Mart made a practical decision to lease space and outsource the operation of the clinics. But CheckUps, the start-up company that staffed and ran 23 of the 72 clinics currently in operation, shuttered its doors in January because of apparent payroll difficulties.

Empty space and a struggling vendor are headaches that a store built on efficient distribution doesn't need. Wal-Mart reacted by announcing it would launch its own brand of stores, "The Clinic at Wal-Mart," and would partner with local hospitals.

Wal-Mart is essentially entering a new industry. Running a health care operation is a very different business model than outsourcing a clinic within a retail store. There is the issue of added liability. And, though the Wal-Mart demographic has patronized the hair and nail salons and McDonald's that have been in the stores for over a decade, the demand for retail clinics is unknown.

In addition, while people want affordable access to health care, they don't want the services to appear "cheap." Wal-Mart is seen as a discount brand, and cheap products are a double-edged sword.
That is why we see this as a problematic brand extension for Wal-Mart.

Aim low, head higher

The success of the clinics will ultimately be determined by how well the concept is integrated into the core brand of Wal-Mart, which has been centered in the idea of relentlessly low prices since Sam Walton opened the first store in 1962. A recent Economist piece noted that Wal-Mart is finding success as America teeters on the verge of a recession because the retailer always seeks the lowest price on items, or at least conveys that message to consumers.

It seems antithetical to expect that an unproven healthcare model could transform a company that is the archetype of the cost-benefit analysis. But Wal-Mart might respond that low prices seemed like a radical idea in 1962 and that 44 million people without health insurance represent just another untapped market.

Wal-Mart's experience has valuable lessons for any corporation considering a brand extension. When bringing in new partners, it's critical that you understand both the risks and current fiscal health of the company on the other side of the negotiation table. The importance of the vetting process is compounded when your partner will be operating in an arena where you have no expertise because you are suddenly beholden to their metrics and ability to convert prospects into customers.

The further you get from your core brand, the more stringent the evaluation you require because there is a heightened danger that you will alienate your customer base or fail to properly integrate a new initiative because it differs so greatly from your business strategy to date. It helps if you can find corporations that have been equally successful in their arena and are at the same point of expansion. This increases the likelihood that your partners will share your goals and exhibit hunger to make sure a new venture is successful.

CEO takeaway? Maybe research your partners better?