"Buy the Way…" Insights on Integrated Marketing Communication

Just when marketers thought they had a grasp on how Millennials talk, shop, and what their social habits are (Instagram/Snpachat/Periscope), Generation Z has officially arrived (defined as born during the mid to late 1990s-present) and they are making the job of marketers harder than ever. Marketers and brands alike are trying out non-traditional tactics to speak Gen Z’s language in a fun, unique way – through apps, pop-up shops, and immersive store experiences.

Brand such as Taco Bell, Target and DreamWorks Animations’s AwesomenessTV are already ahead of the game and conducting market research to understand this new generation of consumers. In their findings, they have discovered key factors that motivate this generation, their interest in implementing new technologies into how they connect with both friends and the brands they like, and lastly, their differentiating values from previous generations.

Gen Z is considered to be practical and value conscious. They are also fond of new technology, such as the new live video streaming app called Periscope, which Taco Bell used to reach this demographic to announce its new product, the Biscuit Taco. Gen Z has more information available to them than any previous generation before them, they use that information to make smart purchases, and they are brand loyal once they’ve connected with a brand that they relate to.

Lastly, in my own experience in the advertising world, a lot of the new technologies that this generation embraces are drastically different than the ones that I use in my own personal life. I use Facebook and Instagram, but do not use or understand the importance of Snapchat — especially from a brand’s perspective of storytelling. Also, a new form of entertainment that is currently gaining a lot of traction, especially as a way to create a unique user experience, and could be a great example as a component piece in an integrated marketing plan, is VR (virtual reality) 360 video. For example, our Samsung team at 72andSunny did a innovative and unique VR brand extension piece that lets the user truly feel like they are a character in the new Avengers film, Age of Ultron.

References:

http://adage.com/article/behind-the-work/marvel-samsung-s-vr-experience-throws-a-mighty-avengers-battle/298330/

Rodriguez, A. (2015, May 15). Stung by Millennial Misses, Brands Retool for Gen Z. Retrieved May 26, 2015, from http://adage.com/article/cmo-strategy/informed-millennial-misses-brands-retool-gen-z/298641/

https://www.youtube.com/watch?v=HkZYbOH0ujw

In many ways, the movie “It Follows” should have failed: It was an indie horror film made by an unknown director, released with a weak advertising budget to only 4 theaters its 1^st week by Bob and Harvey Weinstein’s boutique film label Radius-TWC, and scheduled to be released to VOD (Video on Demand) beginning week 2 – often a tell-tale sign that the movie is not expected to do well in theaters (League, 2015). Although Radius-TWC set the initial sales threshold at only $2 million, the movie brought in more than $55 thousand per theater its first week and more than $14 million through May 21, 2015 (Box Office Mojo, 2015; League, 2015). These numbers may not seem like much when compared to, say, a blockbuster hit, but they are a mark of success for the Indie film industry – an industry that all too often takes a backseat to their mainstream counterparts.

The film’s success, of course, was not earned purely by accident. After posting impressive week 1 figures, Radius-TWC made the rare strategic decision to widen the film’s theatrical release and postpone the VOD release, much to the chagrin of VOD providers (League, 2015). Radius-TWC effectively challenged long-held notions that indie films are not commercially viable, and it offered indie distributors new strategies for marketing based on actual performance rather than just projected performance.

Distributors have no choice but to build marketing strategies around projected data if the film has not yet been released because no performance data yet exists. But even the best marketing strategy loses effect if it no longer aligns to the data it was created for. So why not be flexible enough to re-strategize later based on actual performance, especially if doing so is likely to yield more favorable results?

“It Follows” certainly earned its reputation on its own, but its success in theaters was the result of a dynamic, adaptable strategy. Indie distributors would be wise to take a page from Radius-TWC’s book.

Box Office Mojo. (2015). It Follows [data set]. Retrieved from: http://www.boxofficemojo.com/movies/?page=weekly&id=itfollows.htm

League, T. (2015, April 1). Tim League: It Follows is not a flop. Birth. Death. Movies. Retrieved from: http://birthmoviesdeath.com/2015/04/01/tim-league-it-follows-is-not-a-flop

Taking the advantage of being international student with the experience in external relations function in the countries with very strict religious and local traditions I have decided to write about the issue which was intriguing me since the beginning of my career at Procter & Gamble when I was responsible for clearing ads and any other communication for the subject of local traditions. In other words, I was answering to the question: “Whether this particular ad will offend local audience’s feeling or not?” Actually I was responsible for the same later in beer company and now in art organization. And all the time it is big discussion with colleagues. I would like to give some examples which could be very surprising for the people who will be reading this posting.

Always advertisement. Azerbaijan is a country with dominated local traditions featured with Islamic norms and that is why many topics are not discussed publicly. This also applies to woman hygienic pads. For very long period of time Always advertisement were missing Demo parts and never demonstrated how the product works. But at some point P&G marketing decided to break the rules and go with aggressive advertisement to change consumer habits and perception. There were many objections but I was advocating for the aggressive campaign and it actually worked in the end. Now consumption increased significantly and people more openly discuss these topics still avoiding buying pads from drugstores with man-sellers. I am sharing one of the more open and aggressive copies we used.

https://www.youtube.com/watch?v=ughsxg56YFA

Febreze Azerbaijan Wrestlers campaign. There was a VERY BIG discussion around this project. P&G HQ was insisting on this campaign where Azerbaijani wrestlers (Olympic champions mainly) were going through the experiment with Febreze. Majority of top management in Olympic Committee of Azerbaijan decided that the ad is very offensive as there is nothing funny to joke with national pride as they considered champions. Actually this ad was very controversial  even during internal discussion within P&G. Even some people from Cincinnati were against. But I and our GM decided to take the risk and demonstrate this ad to the President of Azerbaijan who was at the same time the head of National Olympic Committee. And we managed to do that during London Olympics in 2012. We were lucky as he loved the ad and from the Government side we were safe at least. But still many people in Azerbaijan disliked the ad.  It had many positive and negative comments locally but was positively accepted internationally according to the reports. I personally think that it is not offensive and there is no need to complicate things. This kind of jokes do not offend any champions and having fun is better than some boring standard ad.

https://www.youtube.com/watch?v=pUN9ser3BZM

And one of the latest examples. This ad was placed by me to social media and some outdoor screens just a week ago and this time I was the only one who decided to take the risk. This is the ad for the Future Shorts (Short movies festival) with some cuts from the movies which will be demonstrated in our center. And there are some scenes of kisses. To my surprise even people working in progressive art organization were hesitating to advertise it. For this one I do not have a feedback and consumer reaction yet! But I decided still to share.

So, what should marketers do? Develop the target audience by removing local mental blocks or play game by local rules? Where is the balance? I personally think that removing barriers is better and one day globalization will come to each and every corner of the world through the marketing and international brands but many of my colleagues in the countries I worked (Azerbaijan, Georgia, Turkey) disagree. Fam and Waller (2003) in their research on controversial advertising in Asia pacific region imply that countries with storng local traditions should be taken into consideration by international brands and the advertisement should be adapted. But being from the country with similar culture and having this inside view I do not agree with such strict approach. Of course such approach keeps everyone on the safe side but remaining 100% safe does not mean that the companies will progress and change the market situation. I think taking risk at some point is important!

Which approach is better? What do you think?

Reference:

Fam, K. S., & Waller, D. S. (2003). Advertising controversial products in the asia pacific: What makes them offensive? Journal of Business Ethics, 48(3), 237-250. doi:10.1023/B:BUSI.0000005785.29778.83

Being the “126 Million Dollar” ticket isn’t always an easy thing to own. Players contracts are always glorified on sporting news websites and TV shows, highlighting the large dollar figure but rarely breaking down how the money is distributed. You hear trigger words such as “guaranteed money” and “x amount per year.” However, this can all be very deceiving. How this is communicated to the public is very vague and sometimes inaccurate. Take for instance San Francisco QB Colin Kaepernick. As Cork Gaines of Business Insider put it, “after Kaepernick’s nightmare season we are already seeing that the contract is not nearly as big as everybody made it out to be, and he could receive as little as $25.9 million” (Gaines, Business Insider).

This a far cry from what was labeled as an amount over 100 million dollars more. Why the hazy explanation on what Kap is and will eventually be making? Much has to do with getting fans excited about the “franchise” QB. The stamp of approval from the organization on such a large “committed” contract allows for season ticket holders to get excited about a potential dynasty in the future. However, as we saw this past Sunday in Seattle and all season, the Kap is in much trouble, with his head coach on the brink of termination, and the organization left wounded and looking for answers. The issue with such a large contract is not in the figure itself, it’s in what is actually committed to the player. As is the reality of the Kap’s “record” deal, the 49ers played this perfectly. If they win consecutive seasons and make the playoffs, Super Bowl with a successful Kap at the helm, he would be rewarded accordingly.

However, they had a contingency plan from the beginning, and that was if things go south, which they did, they can bail out any time. Whether or not Kap knew this when he signed the dotted line is another story, but the fact is, $126 million over 6 years is not what is binding in reality, but a superfluous number that may never be actually seen by Kaepernick and his agent. When it comes to guarantees, the only one is that no teams want to feel married for too long, since the more they commit, the more they may be setting themselves back for years.

http://www.businessinsider.com/colin-kaepernick-contract-2014-12#ixzz3M85mD4K9

An employee’s positive attitude and behavior are key in cultivating consumer advocacy. When employees of an organization conduct themselves in a positive manner, consumers are more receptive to becoming an advocate of that brand (Azzarello, Debruyne, & Mottura, 2012). A survey conducted by top management consulting firm Bain & Company proves that the overall experience of dealing with a company (i.e. interactions with employees) often matters more to customers than a price or brand. As if often seen, happiness is contagious and the same is true for the enthusiasm of engaged employees onto other employees and customers.

But what is so great about engaged employees and why is this important? In a study that encompassed 7 years, Bain & Company found that companies with highly engaged workers grew revenues two and a half times as much as those with low engagement levels (Assarello et al., 2012). Engaged employees direct their energy toward the right tasks and outcomes, convey a strong sense of purpose, and create a sense of affiliation (Azzarello et al., 2012). When dealing with customers, engaged employees convey a sense of job satisfaction: they are happy working for the organization, they are treated well, and it’s a brand they trust. In turn, happier employees provide a more enriching customer experience.

Companies that succeed at engaging employees do a good job of communicating and explaining the “why.” This “why” helps promote a sense of purpose to employees in any organization. Positive feedback goes a long way. One common thread is that people think feedback should always be negative. However, positive feedback is a “powerful reinforcement of desired behaviors and reminder of the employee’s purpose” (Azzarello et al., 2012, p. 5). This report by Bain & Company highlights that performance metrics need to be tailored to each company to promote customer advocacy. In addition, gaining feedback from call centers, for example, for departments that typically don’t directly interact with customers, such as marketing or engineering, can have a direct impact on the customer experience and create cross-functional collaboration.

References:

Azzarello, D., Debruyne, F., and Mottura, L. (2012).  The chemistry of enthusiasm. Bain & Company. Retrieved from http://www.bain.com/publications/articles/the-chemistry-of-enthusiasm.aspx

It’s that time of year….Holiday Ad Time. We are being bombarded with ads for great deals and things we need to give to each other to warm their heart. It’s really about STUFF instead of people.  I recently came across this ad by UPS that is part of their UPS “Your Wishes Delivered” campaign. This campaign aims at doing good for others during this consumer driven time. For every wish shared on the UPS social media channels, UPS will donate $1 to one of three charities. Below is the powerful ad that UPS launched about the cutest little boy and his wish.

https://www.youtube.com/watch?v=0IsL5AMqLMY

UPS has successfully integrated their media for this campaign and I look forward to following it as it progresses during the Holiday season.

Check out the UPS Wishes Delivered website here: https://wishesdelivered.ups.com/?WT.mc_id=VAN701354#all-wishes

How do people feel about this ad focused on people instead of stuff during the Holiday Season? The timing is perfect in my opinion.

Corporate partnerships have been a mainstay of American business practices since J.P. Morgan and the Vanderbilt family helped lay the groundwork for what we now know as the Edison Electric Light Co. From entertainment empires like AEG (Anschutz Entertainment Group) to sports powerhouses like the NFL, the detail involved in partnering with these mega organizations is equal parts simple yet meticulous. After all, becoming a preferred vendor or partner can mean millions of dollars in revenue and exposure, which explains why the “beverage wars” for placement and partnerships are among some of the most competitive in the business. With CocaCola outpacing it’s #1 competitor Pepsi at 2-1 margin it’s also clear why contractual product placement has become a standard component in most deals.

So what happens when one party “forgets” their part of the deal? While no two cases are the same, one would safely guess that it involves a lot of legalese, a little finger pointing and at the very least a sternly worded memorandum. In the case of Arby’s and Pepsi however, it resulted in a self-deprecating yet perfectly orchestrated mea culpa.

It all started with Arby’s new tagline “we have the meats”. As the creative focus moved toward the core menu items, it shifted away from the complimentary counterparts (like beverages) and the perfectly orchestrated deal points that traditionally accompany them. According to Rob Lynch, Chief Marketing Officer and Brand President for Arby’s, “the contract with Pepsi simply slipped everybody’s minds”.  When Pepsi politely informed Arby’s that they were still “one commercial short of their contractual obligation”, it appeared to be a recipe for disaster. Especially when coupled with the fact that Arby’s final spot had been approved and completed some six months earlier. “To go in [to the agency] after we shot them and shoehorn something in is like the worst client move you could ever make,” Mr. Lynch said.

Prepared for the worst but hoping for the best however, he handed complete creative control to the agency and empowered them to come up with a viable solution. The result? A perfect balance of humor, authenticity and regret, genuine enough to achieve the directive yet, “sticky” enough to become one of the most celebrated spots of the year. A “big idea” that hits every facet of the S.U.C.C.E.S.s model by exploiting the very elements it embraces. Roberto Rios, chief marketing officer for PepsiCo’s food service division agreed, “we applaud Arby’s unconventional approach to marketing and when they came to us with this idea, we thought it would be a fun, creative way to highlight our partnership”.

In addition to highlighting the competitive advantage trust builds between organizations, the spot also capitalizes on the transparency and reciprocity valued by today’s consumers. You be the judge…will you accept the apology?

http://youtu.be/Jv5StAv77Dg

References:

Historic Collaborations
http://images.businessweek.com/ss/08/11/1121_famous_partnerships/2.htm

See Which Major Restaurants Serve Coca-Cola Vs. Pepsi
http://www.businessinsider.com/restaurants-that-serve-coke-vs-pepsi-2013-12#ixzz3LAoMqKRL

Arby’s Forgets Advertising Deal With Pepsi, Makes Apology Ad Entirely About Pepsi
http://blogs.wsj.com/cmo/2014/12/01/arbys-pepsi-advertisement/

The Only Lasting Competitive Advantage Is Extreme Trust
http://www.fastcompany.com/1809038/only-lasting-competitive-advantage-extreme-trust