2010: "LUXURY SHAME" AND TAKING SOME OF THE GUILT OUT OF SHOPPING

Claudia D'Arpizio, luxury goods expert and author of Bain's 'Luxury Goods Worldwide Market' study, identifies there are five major shifts in luxury shopper behavior moving into 2010:

1. Reaching lower. Consumers who are newly entering the luxury market, called 'accessible luxury' consumers, are purchasing items at the lower end of brands' product lines,
2. Seeking intrinsic value. The most affluent, or 'absolute,' luxury shoppers have begun to focus on the intrinsic quality of materials and the durability of luxury items instead of fashion content,
3. Buying the experience. Experiences are in. Consumers who value the dream offered by luxury brands, called 'aspirational' consumers, are increasingly motivated by service and in-store events as much as by merchandise,
4. Spending discreetly. Ostentation is out. Consumers are gravitating to more discreet products, preferring understatement in what they buy and how they shop in luxury stores to high visibility items,
5. Fleeing to value. Many shoppers across all luxury segments now wait for deeper discounts at the end of the season, or seek out discounts at department stores and outlets.

In order to address this reality, marketers are employing “guilt” in ways we’ve never seen before.   In fact, 2010 is shaping up to be dominated by guilt. Guilt for spending money in the midst of a debilitating global recession, guilt for further polluting the world, guilt for moving farther away from those traditional values that were previously the exclusive domain of the family.


Brands that are able to elicit guilt - or even better, remove guilt - will be the winners. For example, some luxury brands are emphasizing marketing tactics that they hope will push away the guilt and reboot consumers' desire to spend. That can mean touting a special justification for splurging - profits are channeled to a charity, for instance - or offering novel shopping experiences that can make people forget their guilt.

Some brands are trying to catch consumer’s off-guard with new outlets for selling. Ittierre, for example, is considering having some fashion brands open pop-up stores - boutiques that exist for a few weeks or months - in unexpected parts of European and U.S. cities that aren't traditional luxury shopping districts. The idea is that pop-ups may not activate the psychological barriers that prevent shoppers from entering traditional stores.

Other brands are encouraging Internet shopping to help break old shopping habits. "Luxury shame" - epitomized by the showy act of walking out of a fancy store with a big shopping bag – is one of the main reasons for the estimated 20% jump in online luxury sales this year, Bain & Co.

Another tactic for taking some of the guilt out of shopping - offering a charitable-giving component - is gaining traction as well, especially ahead of the holiday shopping season when people tend to feel the most pressure to donate. Shoe brand Cole Haan recently sponsored a typical promotion: Get a 15% discount on a new pair of shoes when you donate an old pair to a designated charity. Such incentives could help with the argument shoppers have with themselves.

One of the hottest new stores in Paris this year, Merci, fuses fashion with philanthropy. The store's light, loft-like space is as trendy as that of other concept stores, selling apparel from brands such as Stella McCartney, flowers and used books. The difference is that ALL of the profits, after operating costs are paid, go to children's charities. Last month, Merci - which was founded by Marie-France Cohen as a way of giving back after she sold luxury children's-clothing label Bonpoint - opened a temporary one-month shop in New York with help from the Gap.  The charitable argument may give consumers another reason to visit the store as a consumer who is tempted by an item goes back to being just a consumer.

Other companies are putting more emphasis on the "guilt-free shopping" that is said to come with buying environmentally safe products. Stores are even offering to ameliorate the global problems of waste and - interestingly - overconsumption. Last year, upscale Swedish clothing brand Filippa K opened a secondhand store in Stockholm that sells used of its own brand for at least 50% off.  Even with a discount store offering items at 50% off, the boutique has boosted sales of the current collections as their customers see them as “a part of the solution” and “taking more action”. While a socially redeemable activity, this is, is of course just another tactic for taking some of the guilt out of shopping.

What is your brand doing today and over the next twelve months to lessen the guilt of those purchasing your brands products or services?  

NFL PLAYERS ASSOCIATION (NFLPA) EXPANDS SMS MICROBLOGGING PLATFORM

The NFL Players Association has agreed to expand the number of National Football League players featured on MogoTXT Inc.’s text-messaging platform.

The deal is designed to position NFL stars to benefit from the emergence of social networking and mobile media. Marques Colston, Percy Harvin, Pierre Thomas, Erik Coleman, Chris Cooley, Jay Feely, Lance Moore, Steve Slaton and Ian Johnson have joined Terrell Owens, Santonio Holmes and other NFL personalities on the MogoTXT platform.  Representing more than 1,800 active and many retired NFL players, the NFL Players Association markets players as personalities, as well as professional athletes.

Through an exclusive sponsorship agreement between the organization and the NFL, players are integrated into NFL sponsor activation programs. In addition, under an exclusive agreement between the NFLPA and the NFL, NFLplayers.com, the company’s official Web site, is part of the part of the NFL Internet Network.

Each year NFLPA negotiates and facilitates marketing opportunities for players.  NFLPA activities include retail licensing, corporate sponsorships and promotions, special events, radio and television projects, publishing and the Internet. 

MogoTXT is a mobile messaging company focused on delivering immersive and entertaining mobile experiences for its users.

In addition to offering its mobile and online services in the United States and China, MogoTXT provides a platform for sports stars and other celebrities send a single text message to automatically update all of their fans on MogoTXT, Twitter, Facebook, MySpace and other Web sites.

By enabling athletes and celebrities to connect with their fans regardless of where they are, MogoTXT helps aggregate dispersed fans into larger audiences for marketing and other monetization purposes.

Under the new partnership, MogoTXT, the NFL Players Association and participating NFL stars will share revenues generated from content created by the SMS microblogging platform.

MogoTXT, the NFL Players Association and participating stars will also donate a significant portion of the revenues to selected charities, including charitable initiatives sponsored or supported by the NFL Players Association and participating NFL stars.

The new partnership has enabled the following NFL players to join MogoTXT’s growing roster of NFL and NBA sports personalities:
Erik Coleman, safety, Atlanta Falcons
Marques Colston, wide receiver, New Orleans Saints
Lance Moore, wide receiver, New Orleans Saints
Pierre Thomas, running back, New Orleans Saints
Chris Cooley, tight end, Washington Redskins 
Jay Feely, placekicker, New York Jets
Percy Harvin, wide receiver, Minnesota Vikings
Ian Johnson, running back, Minnesota Vikings
Steve Slaton, running back, Houston Texans

MogoTXT has also added a new group-texting channel to its service that enables fans to see the back-and-forth text-message conversations among Marques Colston, Lance Moore and Pierre Thomas as New Orleans enjoys an undefeated season and proceeds to the NFL playoffs.  Sports fans in the U.S. can join any or all of MogoTXT’s public texting groups for free by signing up at http://www.mogotxt.com.

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GOODBUZZ™ JOINS Society of Digital Agencies (SODA)

‘JERSEY BOYS’ LEVERAGE MOBILE + SOCIAL MEDIA

Jersey Boys is a documentary-style musical based on the lives of one of the most successful 1960s rock‘n’roll groups, the Four Seasons.  The musical opened on Broadway in 2005 and won four 2006 Tony Awards. The show has had a North American National tour, along with productions in various U.S. cities including Las Vegas, the West End in London and Melbourne, Australia.

Jersey Boys marketing activities targeted visitors to Las Vegas, Nevada—specifically people who were in Las Vegas, but had a home town outside of the Las Vegas area. They were given a special offer to encourage them to buy tickets to the show. Redemption rates for the promotion exceeded two percent.

“Jersey Boys wanted to target visitors to Las Vegas to invite them to watch the show,” Mr. Linner said. “The campaign ran across SMS, mobile Web and in-app ad units.

“The campaign was focused on delivering real-world interactions, rather than interactions on the mobile handset,” he said.

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CHEVY GETS SOCIAL

Chevrolet, also known as Chevy, is a brand of automobile produced by General Motors Co. It is also General Motors' highest-selling brand. In North America, the Chevrolet brand offers a full range of automobiles, from subcompact cars to medium-duty commercial trucks.

Chevrolet targeted ads to people within three miles of a dealership on Saturday or Sunday afternoons. Chevrolet saw response rates between one percent and two percent based on the number of people who visited the dealership.

“Chevrolet wanted to drive people into its dealerships,” Mr. Linner said. “We have run different campaigns offering various incentives—free oil changes, a $25 gift card when you take a test drive, etcetera.

“The Campaign ran across mobile Web, SMS and in-app,” he said. “Each campaign was geotargeted to dealerships and time targeted to the most relevant day-parts.”

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JACK-IN-THE-BOX DRIVES CUSTOMER INTERACTIONS VIA SOCIAL NETWORK

Jack in the Box is an American fast-food restaurant headquartered in San Diego, CA. In total, the chain has 2,100 locations, primarily serving the West Coast of the United States.  Most of the outlets are in California (900), followed by Texas (560), Arizona (165) and Washington (132). The company also operates the Qdoba Mexican Grill chain.

Jack in the Box targeted ads to people within two miles of restaurants in the week following the launch of smoothies in each restaurant.  The smoothies launched in different places at different times, so the campaign staggered the ad campaign location by location. The campaign offered users an SMS coupon for a free smoothie.

“Jack in the Box was launching different menu items at different restaurants over a rolling time period,” Mr. Linner said. “As each restaurant launched the new menu items, we ran geotargeted campaigns to invite people into the restaurants. “The campaign used both SMS and mobile Web,” he said.

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NEWS UPDATE: GOODBUZZ™ EXPANDS SERVICES

Building a Participatory Brand that transcends Commerce

The Client Ask

At the beginning of (almost) every client engagement (for the past fifteen years) when we ask clients (high-level) what they’re hoping to accomplish—the response is always akin to wanting something “breakthrough”, “compelling”, and “game-changing”.   We’ve also heard “Cool”, “Apple-esque” and a slew of other descriptors.

We get it.  Everyone wants to be the next big thing.  Brands like Apple have established deep, lasting bonds with their customers and are archetypal emotional brands.  It's not just intimate with its customers; it is loved.  Who doesn’t want this?  It’s important to note that it wasn’t always like this for Apple.  Apple took a financial tailspin during the mid-1990s.   Its products were lackluster, it’s branding a mess, and the company looked in danger of going out of business.

What did Apple do?  They decided to rebrand.  Apple abandoned the old rainbow-hued Apple logo in favor of a minimalist monochrome one, gave its sleek computers a funky, colorful look, and streamlined the messages in its advertising.  They architected a brand that transcends commerce and evokes an emotional response.

Building an iconic brand

How did they do this?  A few ways.  Apple has a simple and unique visual (and verbal) vocabulary, expressed consistently across all product design and advertising.  Apple also projects a humanistic corporate culture (and a strong corporate ethic), characterized by support of good causes (and involvement in the community). Its founding mission was “power to the people through technology”, and has also established an emotional connection with its cult-like customers.

Apple's brand is one big tribe, and purchasing an Apple product makes you a member. Building this tribe takes several forms, from building trust to establishing a community around a product or service. Apple capitalizes upon the fact that people want and cherish a "human touch" and to feel like they're a part of something bigger (as it gives a sense of security and grounding).

BUT, all that aside—the one single thing that has allowed Apple (and some notable others like Nike and Harley-Davidson) to achieve what they have from a brand-equity standpoint is that they are no longer selling products. They are selling brands, which evoke a subtle mix of people's hopes, dreams and aspirations. Benetton used images of racial harmony to sell clothes, while Apple used great leaders -- Cesar Chavez, Gandhi and the Dalai Lama -- to persuade people that a Macintosh might also allow them to "Think Different."  People are drawn to these brands simply because they are selling their own ideas back to them, they are selling the most powerful ideas that we have in our culture such as transcendence and community -- even democracy itself.  Apple today is an ideology, a value set, and a symbol of counterculture -- rebellious, free thinking and creative.

IT’S ALL ABOUT THE brand

What we have learned from all of this is simply that brands are more important than products. Products have limited life cycles, but brands -- if managed well -- last forever.  Ryan Bigge, writing in Adbusters, said: "Our dreams and desires for a better world are no longer articulated by JFK’s, nor generated through personal epiphanies -- they are now the intellectual currency of Pepsi, American Apparel, and Diesel. We used to have movements for change -- now we have products. Brands befriend us, console us and inspire us”.

Apple’s Secret Sauce

So, you want brand equity like Apple has?  Here’s the secret.  Make the purchasing of your product and/or service the equivalent of belonging to an elite club. Hip, righteous “outsiderism” with an ample dose of rebellion against injustice. 

If you’re looking for additional information on building an emotional, transcendent brand like Apple, read http://mygoodbuzz.blogspot.com/2009/10/branding-taking-page-from-organized.html

A Brave New World: Social Media and the Economy of Trust

If Facebook were a country, it would have the sixth largest population in the world.  It's hard to imagine, but what's clear is that the Internet (and Social media communications specifically) are changing the way we do business, primarily by extending a platform for real dialogue with our consumers. Traditional “Push” marketing is also being replaced with collaborative, conversational and content-driven communications that effectively put consumers back in the driver’s seat---effectively making “trust” the most valuable online currency.

Social media has changed the marketing game forever. Online word of mouth and the powerful influence of peer groups have already made many traditional business strategies obsolete.  Why? Simply because advertising is less effective at influencing consumers than are the opinions of their peers, making direct-to-consumer marketing messages less valuable each day.  The bottom line is that you must stop pushing your message out and start pulling your customers in. 

Traditional "outbound" marketing methods like cold-calling, email blasts, advertising, and direct mail are increasingly less effective because people are getting better at blocking these interruptions out using Caller ID, spam protection, TiVo, etc. People are now increasingly turning to Google, social media, and blogs to find products, services, and direction. If you're a marketer or business owner, the big question is whether you'll keep up with those changes?   

Need some help navigating this Brave New World?  We’re here to help.  Visit www.Goodbuzz.ca.

Social Media | Q&A

What are the most common mistakes brands make when it comes to social media?

Many Marketers suffer from the "me too" syndrome. If a competitor is doing something special, they feel the pressure to do the same -- even if it is out of sync with their brand or their customers. This pressure comes from the marketer's bosses, the social media specialists, the analysts, the advertising agencies and the media.  It is therefore extremely important to recognize that as a brand, you can only participate successfully when you have permission to do so with your customers (or have a way to create that permission). Along those lines, it's important to start with strategy and do something that makes sense for your brand, is in alignment with your business objectives and resonates with your customers.

What's the key difference between Social Media marketing online and via mobile?

Social media marketing can take place on any digital platform or device.   Digital is digital.  However, mobile as a specific platform has the added benefit of increasingly being location-aware.  This allows information to be served to the user with more relevance and context.  On the flip side, mobile platforms don't allow for experiences as rich as others, but it doesn't mean they still can't be immersive and incredibly social avenues.

 Bottom line is that you’ll need to start with a social strategy and then examine how it translates to different platforms and devices -- whether that be your company Web site, a platform like Facebook, or a device like an iPhone or Blackberry. 

Are Facebook and Twitter the only properties that really matter for social media marketing?

Absolutely not! Facebook and Twitter are both certainly the tip of the spear, but I've seen many companies have significant success with the other social platforms, their own community sites and even mobile-specific social solutions. It all depends on your specific business objectives, what your competitors are doing, where your customers are spending their time and how you want to differentiate yourself with what ideas. The blogosphere, for example, cannot be ignored. Bottom line though is that you’ll need to evaluate the various social platforms and select based upon those best positioned to help you achieve your business and marketing objectives.

Is "earned" media more important than paid media in the social realm?

Building authentic relationships that provide meaningful value exchanges with customers, (and especially those customers that influence others), is most important. That can happen in a variety of ways, whether through paid or earned media, or with those efforts working collaboratively. In the social realm, there's nothing better than true engagement between customers and brands.  That said, earned media is more important, although it is hard to always earn the attention, (and that's where paid and even owned media help jump start any engagement.)

Goodbuzz™ encourages you to submit all of your questions.