My coworker keeps a bottle at her desk. My friend’s roommate has a gummy every day. I went shopping and an array of infused lotions were on display at the checkout counter. It seems inescapable these days.
Briogeo’s B. Well CBD + amiga flower skin and scalp oil
CBD oil is a compound found in hemp plants, and does not get you high even though it is cannabis-derived (Grinspoon, 2018) – and despite my tongue-in-cheek headline. Since the legalization of cannabis in most of the United States, the industry has grown immensely; the CBD market is expected to reach a value of just under 2 billion by 2025 (Grant View Research, 2019) and so naturally, has made its way into beauty products, too.
Just this morning, though, mass beauty retailer Sephora announced that they will be setting up criteria for CBD-infused products to ensure it works, with four standards that all must be met in order to qualify. First, inclusion of only full- or broad-spectrum CBD from U.S. grown hemp. Second, the CBD must be tested a minimum of 3 times for quality and purity. Third, a Certificate of Analysis (COA) that verifies the CBD content matches any label claims must be available upon request. Lastly, all products must meet the Clean at Sephora standards, which is a separate set of qualifications that ensures makeup products are free of parabens, sulfates, and other harmful toxins (Hong, 2020).
Herbivore’s CBD Deep Moisture Glow Oil
Vice President of Skincare Merchandising at Sephora, Cindy Deily, stated, “Search for CBD on Sephora.com has increased over 1000 times since 2018, so there’s clearly client interest in these kind of products. As customers are looking to navigate this growing category, we saw the need to provide transparency and quality assurance,” (2020).
This brings up a valid point – the reality is that since the legalization of CBD products, there is an outpouring of merchandise available without any real regulation. CEO of Sephora, Christopher Gavigan, stated, “Brands need retailers to hold them accountable for their CBD and testing methods. There is currently no government regulation to show or prove what are contaminated or efficacious ingredients,” (2020).
By Sephora making a conscious effort to regulate themselves, they are establishing a trust with their consumers, and are setting the standard for other beauty retailers – such as Ulta Beauty, HSN, and even Target – to follow suit. I think it was an excellent way to get at the forefront of an issue in the industry, plus a way for Sephora to get good publicity. I’m suspecting that their retail customer base will also grow now that people can feel trusting of the CBD-based products being sold at Sephora. However, it also makes it harder for certain products to pass, including by brands already in Sephora stores who perhaps now won’t be able to sell specific items. Do you think other retailerswill follow suit with standardization of CBD products, or will corporate selfishness come before CBD regulation?
-Alexis
References
Grinspoon, P. (2019, August 17). Cannabidiol (CBD) – what we know and what we don’t. Harvard Health Publishing. Retrieved from https://www.health.harvard.edu/blog/cannabidiol-cbd-what-we-know-and-what-we-dont-2018082414476.
Grand View Research. (2019, August). CBD skin care market size, share & trends analysis by source (hemp, marijuana), by type (oils, creams & moisturizers, masks & serums, cleaners), by region, and by segment forecasts, 2019 – 2025. Grand View Research. Retrieved from https://www.grandviewresearch.com/industry-analysis/cbd-skin-care-market?utm_source=prnewswire.com&utm_medium=referral&utm_campaign=PRN_Aug29_cbdskincare_CMFE_RD1&utm_content=Content.
Hong, H. (2020, February 26). Sephora announces new CBD standards for all of its products. Real Simple. Retrieved from https://www.realsimple.com/beauty-fashion/skincare/sephora-cbd-standards.
When you think of branding, you don’t think of public education. The problem neither does public schools and their leaders. According to enrollment figures from the California Department of Education, public schools in California have been experiencing declining enrollment since 2014 (California Department of Education, 2017).
Recent surveys by the Public Policy Institute of California (2017) found that most people want to send their students to any school they choose, which were identified as private and charter schools. It isn’t that public schools have less to offer them due to the fact that public schools do not manage their brand and tell their story well (Carr, 2012).
Eric Sheninger and Trish Rubin are trying to change the game for educators. They recently wrote the book BrandED, aimed at educators. The book gives a background on the history of advertising, marketing, and branding, and leads the educator to the realization that it is vitally important for schools to develop their brand and tell their story. Why is it important? Its predominately a financial reason but it also has to deal with the fact that parents are getting savvy and are seeking out the best schools to send their children. Public school districts are at risk of losing students, resources, and teachers when they fail to develop their brand.
In the book, Sheninger and Rubin speak about schools becoming “The StoryTeller-In-Chief” and taking control of their school’s professional brand. Not only does developing a brand help schools engage their stakeholders, create a positive environment and loyalty from students and their families but it also results in more resources and students for schools.
A prime example of this is Detroit Public School’s I’m In Campaign. DPS noticed that they were losing students at a significant rate, while charter school enrollment in Detroit grew. Looking for answers, DPS engaged in brand development and a public relations campaign that resulted in over 1.5 million dollars in free, positive press coverage. They also ended up increasing their enrollment by over 5,000 students.
Branding isn’t just for private corporations anymore. Brand management has grown to individuals, non-profits and other areas. It is about time that schools pay attention to their brand, develop it and grow it. It is only a matter of time before all schools have a Director of Communication position because the engagement of the school brand with the community is something that public schools cannot wait on. Schools need to control their brand, and their story before someone else does.
References:
California Department of Education, (2017). Enrollment by grade comparison.
Carr, N. (2012). Promoting public schools. American School Board Journal, 199(8). 32-33.
Sheninger, E. & Rubin, T. (2017). BrandEd. Jossey-Bass
A wise man named Lil Wayne once said, “Safe sex is great sex,” (I won’t get into the rest) and now Absolut Vodka is saying it, too. ‘Drink responsibly’ is a phrase we have all heard about a million times. You see the phrase on packaging, in commercials, and on posters in bars and liquor stores. But what does drinking responsibly include? Drinking responsibly discourages drunk driving and it discourages over-consumption. Can you think of anything else? Well, Absolut introduced a new phrase that goes hand in hand with ‘Drink Responsibly’ just in time for Valentine’s Day, ‘Sex Responsibly.’
Absolut’s new campaign draws attention to consent and the relationship between drinking and sex. There is no denying that the two, alcohol and sexual misconduct, often have a direct correlation (Williams, 2020). In fact, the #SexResponsibly campaign partners with RAINN, the nation’s largest anti-sexual violence network, to help draw attention to the startling statistics. This campaign is definitely a bold move for Absolut, because the statistics are not good. Let me break it down for you.
Every 73 seconds an American is sexually assaulted (RAINN). 1 out of every 6 American women has been the victim of an attempted or completed rape in her lifetime (RAINN). On top of that, about 3% of American men have experienced an attempted or completed rape in their lifetime (RAINN). In response to these unsettling statistics, Absolut partnered with KRC Research to conduct a survey with 21-30 year olds on the topic of consent (Absolute.com). 61 percent of participants expressed that they feel companies, more specifically companies specializing in alcohol distribution, should be involved in addressing the issue of sexual misconduct (Absolute.com).
Absolut acknowledges these statistics and decided to act. The result of these numbers… the #SexResponsibly campaign. This campaign highlights the importance of consent in safe and healthy sex (Ricard, 2020). The slogans of the ad all cover ways that consent may be misunderstood during an encounter with someone.
In addition to the startling statistics, there was another motivating factor behind this campaign. Ann Mukherjee, the new CEO of Absolut’s parent company, was sexually assaulted by an intoxicated man when she was just four years old (Singer, 2020). Mukherjee jumped at the opportunity of a position with the giant alcoholic beverage company because she saw it as her chance to make a difference in the existing party culture (Singer, 2020).
In addition to fulfilling a social responsibility, the #SexResponsibly campaign also raises funds for RAINN, the Rape, Abuse and Incest National Network. For every post shared using the hashtag #SexResponsibly, Absolut will donate $1 to the RAINN organization (Singer, 2020). Mikherjee is also joining RAINN’s national board, because she is a ROCKSTAR (McAteer, 2020).
Let’s talk about who this campaign is targeting. This is not a campaign for women. Absolut’s goal is not to coach women on how not to be sexually assaulted. Absolut’s goal is to target perpetrators who have some unexplained inability to respect the word ‘No.’
According to statistics, in the time it took you to read up to this point, at least 4 people have been sexually assaulted. Sexual assault is an epidemic that affects American lives every single day. Alcohol consumption is often a contributing factor to this crisis. I applaud Absolut for their dedication to raising awareness on this issue and promoting safe and healthy sex.
It’s sad that consent has to be such a complex request in today’s society. But here’s the thing… I challenge you to uphold the standards addressed within this campaign. I challenge you to educate others and understand that only yes means yes. I challenge you to drink responsibly. And finally, I challenge you to #SexResponsibly.
RAINN is the nation’s largest anti-sexual violence organization. RAINN operates the National Sexual Assault Hotline (800.656.HOPE and online.rainn.org). RAINN also carries out programs to prevent sexual violence, help survivors, and ensure that perpetrators are brought to justice.
If you or someone you know has been affected by sexual violence and need to talk, free and confidential support is available 24/7 via RAINN’s National Sexual Assault Hotline at 800.656.4673 and online.rainn.org.
Have you ever searched for something and that product continues to follow you in either video or banner form across different sites? And does the messages remind you, every day, to “buy” that product? By now you’ve probably noticed that “YES these digital ads have been tracking me”. It’s becoming common knowledge that online ads are following us and we’re, yes – you, are allowing it to happen. There are walled gardens that are monetizing your data.
WHY does this WHITE CLAW ad keep following me?!
The internet seems like a free space with limited restrictions. I’m sure you go online every day and you have your sites that are your go-tos which are easily accessible. A walled garden is a company or an environment that controls access and their own data such as Google, Facebook and Amazon. They will not share this data unless you use their platforms, and they have the power to do so.
I know there are documentaries out there about digital ads, and you’ve might have read in some of my posts that it’s a little part of what I do at my job. But there’s something big happening in the industry that will affect how advertisers target their consumers. That big thing – is elimination of cookies. Cookies will be removed on Google Chrome in 2022. Yes, cookies.
Cookies are little tracking files that leaves “crumbs” on the internet of where you have been. It tracks your behavior, content you’re viewing, language, location and so many more attributes, you get the idea. It’s pretty harmless (it doesn’t collect PII data like your name, CC number, or your personal information) and essential unavoidable if you are reading this right now (using the internet). I’m not going to get into the nitty gritty of cookies you can read more about it online.
What I want to hone in on the importance of cookies for
advertisers. Cookie collection allows advertisers to target consumers who have
purchase intent for their product, have purchased and/or target those who fall
into a look-a-like cookie pool of those previously stated. Cookies create
different identity pools that can be cut into different audience segments for
different types of behavior targeting.
With this information at a very high level, with the elimination
of cookies on Google Chrome (one of the largest search and internet browsers)
it’s going to be very difficult to target consumers based off their online behaviors.
I can’t tell if you’re happy about this…
As an ad tech expert, I’m not sure how I feel about this, but it’s very exciting. The ad world is ever changing and always offering opportunities and new challenges. We’ve lived in a world where viewability, invalid traffic (IVT), mobile ads, omni-channel targeting have all become a “thing” since 2012 and we’ve combat and created new measurability because of these conversations. This industry is booming and becoming smarter so quickly just to protect its consumers. This is such an important topic that has been tabooed for so long. Publishers are talking about pursuing only contextually targeting solutions which is the easy way out, to me.
My only prediction is that these publishers are going to start adopting the subscription (free and paid) model to collect their own 1st party data on their consumers. This will increase cost and make their targeting more valuable as it will be high quality.
But if this happens, will consumers become smarter, and make fake online identities (emails) to protect themselves?
A controversial story continues to unfold in the world of baseball as the cheating scandal of the Houston Astros continues to spark anger. I remember watching the thrilling 2017 World Series but unfortunately, the Dodgers lost. As it turns out, the Astros may have won based on the cheating that occurred during the 2017 season and part of the 2018 season.
Source: Giphy
The investigation of the Houston Astros has revealed that the team’s video room staff were using cameras to steal signs from catchers to notify batters of the planned pitches. Additionally, players and other staffers banged signals to batters on trash cans to reveal the intended pitch (Torres, 2020). Pitchers are given the responsibility to ensure they strike out as many players meanwhile their team tries to score. The purpose of the game is demonstrate your physical and mental skills, without this competitive spirit there is no purpose of a game. Yet alone, to be able to cheat on the most high level competition of baseball and win a championship with no repercussions is disgraceful.
Commissioner Rob Manfred granted the Astros immunity in return for cooperation of the investigation. The decision by Manfred is obviously counterintuitive, there is no point of an investigation if suspects are presumed innocent from the beginning. According to Manfred, he initially was going to strip the 2017 title of the team but hesitated because he thought it would be an impossible task (Passan, 2020).
Source: Wall Street Journal
Four men were forced to resign from jobs two of which are no longer part of the team. Ex-coach Alex Cora and Carlos Beltran were relieved of their managerial positions with the Boston RedSox and the New York Mets. (Feinstein, 2020). Other than that, players and staff members were forced to issue an unapologetic conference ahead of the commencement of their training for the next season.
Many are calling the Astros press conference a PR disaster, which could have been a vital opportunity for the team to gain positive traction out of this situation. Jim Crane owner of the Astro gave a begrudging apology by first sharing his opinion on how the cheating did not impact the World Series game but a couple of seconds later retracting his words (Feinstein, 2020).
The uncanny situation erupted a ripple effect of furious responses by other players and fans alike. Cody Bellinger, the MLB league MVP for 2019, pleaded that is it obvious the Astros stole the championship from the Dodgers in 2017 and that their punishment for cheating was “weak”(Leitch, 2020).
Source: Spectrum Sportsnet
As a proactive measure to deter future retaliation in the upcoming season, Manfred announced “throwing the ball at a batter intentionally will not be tolerated (Dio Giovana, 2020)”. Given the gravity of this situation for the Houston Astros, it is evident, this year is going to be tough. The Houston Astro’s image has been significantly damaged and the future seems unforeseeable for the moment.
If you were part of the organization, how would you market the team for the upcoming season? What would be your strategy to diffuse the controversy and to rebuild the organization’s image?
References:
Di Giovanna. (2020). MLB Commissioner Rob Manfred defends his punishment of the Houston Astros. Retrieved from https://www.latimes.com/sports/dodgers/story/2020-02-16/mlb-commissioner-rob-manfred-houston-astros
Leitch, W. (2020). The Astros Cheating Scandal Has Only Gotten Nuttier. Retrieved from https://nymag.com/intelligencer/2020/02/houston-astros-cheating-scandal.html
McCarriston, S. (2020). How the Astros apology press conference turned into a public relations disaster. Retrieved from https://www.cbssports.com/mlb/news/how-the-astros-apology-press-conference-turned-into-a-public-relations-disaster/
Torres, M. (2020). Mike Trout on Astros’ sign-stealing scandal: ‘I lost some respect for some guys’. (2020, February 17). Retrieved from https://www.latimes.com/sports/story/2020-02-17/mike-trout-on-astros-sign-stealing-scandal
Today, Burger King revealed a global ad campaign to highlight the company’s newfound commitment to dropping artificial preservatives in all food products. While its good to highlight that your brand no longer will use preservatives, the results were rather gross and off-putting. Burger King’s Moldy Whopper shows a transformation of its famous Whopper from day 1 when the burger is assembled, to day 34 when the Whopper is a completely different color. The 45 second video is a time laps through the span of over a month showing the day to day change and color of the burger.
Over the course of the video, Diana Washington’s 1959 hit “What a Difference A Day Makes” is playing in the background. This helps paint a picture of the freshness of foods the company is now committing to. It’s great that more and more restaurants are using fresher foods and foods without preservatives, although, it should’ve been that way from the start.
The campaign launched across the United States and Europe and the no preservative Whopper is now available across 400 of its 7,346 U.S. locations. Burger King aims to use ingredients with no preservatives across all of its restaurants by the end of the year 2020. With that said, the burger company has announced that more than 90% of its food ingredients are free from colors, flavors, and preservatives from artificial sources. MSG and high-fructose corn syrup are also being removed from food products.
Print Ad
This bold move showing an ugly, moldy burger caters to the fact that Millennials also tend to favor foods with fewer to no artificial ingredients.
Of course, the fun has been had on Twitter. Fans and followers show mixed reviews about the campaign. The ad with the tagline, “the beauty of no artificial preservatives” has sparked some praise while others have expressed that their appetites have been lost.
Highlighting the Good
The BadBurger King RespondingSome Are Disgusted
Overall, the campaign has garnered mix reviews but also high praise for finally not using preservatives in the food products. The campaign is only a day old, so it will be interesting to see how it develops over the course of the next few months. I’m interested to hear your thoughts.
Fight on!
References:
Alcorn, C. (2020, February 19). Burger King thinks moldy Whoppers will get you to buy more burgers. Retrieved February 19, 2020, from https://www.cnn.com/2020/02/19/business/burger-king-mold/index.html
Durbin, D.-A. (2020, February 19). Burger King breaks the mold with new advertising campaign. Retrieved February 19, 2020, from https://www.spokesman.com/stories/2020/feb/19/burger-king-breaks-the-mold-with-new-advertising-c/
Griner, D. (2020, February 19). Why Burger King Is Proudly Advertising a Moldy Whopper. Retrieved February 19, 2020, from https://www.adweek.com/creativity/why-burger-king-is-proudly-advertising-a-moldy-disgusting-whopper/
Tyko, K. (2020, February 19). A moldy Whopper? Burger King launches campaign to highlight removal of artificial preservatives. Retrieved February 19, 2020, from https://www.usatoday.com/story/money/food/2020/02/19/burger-king-moldy-whopper-campaign-artificial-preservatives/4798987002/
Long before the iPhone craze and Generation Z grew up, we lived in a time of Blackberry’s and flip phones. Now it seems as though the 2000s are making a comeback with the latest release of Motorola’s Razr and Samsung’s Galaxy Z Flip phone. Some of you may be reminiscing on your hot pink or gray Razr, but a lot has changed since the release of the original Razr, starting with its price. Earlier this month Verizon began selling the Razr at $1500, while Samsung’s Galaxy Z Flip sells for $1380.
So, what’s
so special about these phones? As Joanna Stern, from the Wall Street Journal
puts it, “both are modern takes on the old-school design.” Both phones have
screens that bend and fold without breaking. Unlike its predecessors, when you
flip them open you don’t see a tiny LCD screen on top and a keypad at the bottom,
but a full android screen.
So, what’s their appeal? They’re small and fit perfectly in your pocket, unlike iPhone’s or the Samsung Galaxy. You’re able to end a call by simply closing the phone, never having to worry about dialing someone on accident again. Also, both phones have small touch screens that display the essentials time, date, weather, and notifications.
Source: Wall Street Journal
With all this mind, and the realization that smartphone sales have begun to decrease over that last few years. Are flip phones the next great thing? There is still a lot to consider. For instance, they are a tad bit overpriced, not because they have the greatest picture quality or processor, but because of its foldable screen. Also, they are the first of its kind to hit the market, and we don’t know how durable or how they will hold up over time. Lastly, Samsung has proven its worth with its constant release of high-end quality products over the last decade, being Apple’s greatest competitor in the era of smartphones. Will the Motorola Razr be enough to establish Motorola as the next big competitor in the smartphone industry? Guess we will have to wait and see.
Musical Review of Motorola Razr vs. Samsung Galaxy Z Flip https://www.wsj.com/video/series/joanna-stern-personal-technology/motorola-razr-vs-samsung-galaxy-z-flip-the-musical-review/67FEDC2A-57BA-4826-A245-AD2CDBA3BBAD
Is it just me or is there a new celebrity documentary every week? Beyonce, Travis Scott, The Jonas Brothers, Taylor Swift and Justin Bieber have all released documentaries in the past 18 months. This new genre of celebrity centered documentaries seems to piggyback off of the social media era trend of celebrities being relatable and aims to blur the boundaries between megastars and their fans. But why? Is their intimacy profitable?
For fans, watching these documentaries are just a continuation of a story that is already shared by artists on social media. We’ve already seen how Swift’s drama with Kim Kardashian and Kanye West plays out, because it was already posted on Instagram stories. She shared her mom’s cancer diagnosis on Tumblr in 2015. We also know her political beliefs because there was an entire Instagram post dedicated to explaining them. We know how hardworking, creative and diligent Beyonce is. And we’ve already seen Instagram stories of Travis Scott buying Kylie Jenner a Ferrari.
Courtesy of Netflix
Celebrities don’t owe us anything and we shouldn’t expect them to actually be transparent. Perhaps Taylor Swift wants to change her public perception after being publically deemed callous and calculating. Maybe Justin Bieber wants to promote his new album. Although, I can’t help but wonder what motives are behind releasing a “tell-all” documentary. Both documentaries are intimate but how can we be so sure of their authenticity?
Courtesy of Netflix
What do you think of celebrity documentaries? Are they just a way for celebrities to better integrate their brand?
Bradley and Emily Mason at Disneyland in May 2010. These days, it is nearly impossible to get a shot like this at Sleeping Beauty’s Castle with no one else behind you.
I have been
a Disneyland annual passholder
for 17 years, two of which I actually had the “fancy” Premiere pass
that allowed entry into both Disneyland and Walt Disney World Resorts. I am
also a Disney Vacation Club,
D23, and Disney Movie Club member. I
subscribe to Disney+, the company’s
new streaming service, am a proud Disney
Visa Card holder, and most of my house is decorated with Disney, Pixar,
Star Wars, and Marvel themed items. If you can’t tell already, let me make this
clear: I love Disney.
Am I wealthy?
Heavens no! But my husband and I both appreciate the value of the Disney brand
and what we get from it across its many franchises and businesses. Therefore, the
disposable income we do have is prioritized accordingly. This is no different
than those that set aside money each week to go to bars, restaurants, dancing, or
even the movies.
So, what happens each year when Disney
raises its theme park prices like they did just this past week on February
11? What do people do when they remember paying $349 for a pass back in the day
that is now $1,449? Despite the ranting and raving from many online, like many
others, we pay it of course. Why? Brand loyalty.
🚨 Disneyland Ticket & Annual Pass Increase 🚨
It’s that time again where Disney increases the price of tickets and annual passes. While I wish they didn’t increase their prices, I’ll forever renew 😅 Anyway, here’s a… https://t.co/qlh4nEYMwr
And while this
is a state of mind that most, if not all brands, seek to obtain with customers
through their marketing strategies, can loyalty actually cause issues for some
brands? Have devote Disney fans like myself finally exposed that this state is
not always all it’s cracked up to be?
Why are
Disney fans so loyal?
To
understand Disney fans’ willingness to pay such “outrageous” prices, we must
first understand why they have become such brand loyalists in the first place. While
I could go on and on about my personal experiences that have led me down this
path, there are many journalists and bloggers that have explored this same
topic.
Several
years ago at a conference Tom Boyles, Senior Vice President, Global Customer
Managed Relationships at Disney Parks and Resorts, highlighted the seemingly infinite
number of ways consumers can interact with the Disney brand – 11.2 billion
combinations at Walt Disney World alone (Adamson,
2014). He then went on to emphasize how important it was to make each of those
moments relevant to each individual person. This way, there is always something
for everyone to enjoy. In fact, many of the magical moments experienced by guests
have been made possible because of the effort and resources Disney has put toward
listening to its guests.
Disney’s Magic Bands have brought guests a convenient and customized way to enjoy its parks.
As a former
Disneyland Resort Cast Member, I can tell you that storytelling is an integral
component in every single part of Disney’s business. Interestingly, this has
also been highlighted as a cornerstone to Disney’s success with consumers.
This emphasis
on storytelling allows Disney to connect with its customers and guests on a
much deeper emotional level, again increasing brand loyalty (Poblete,
2019). In fact, when MBLM, a leading brand agency, released their Brand
Intimacy Study in 2019, Disney took the lead as the #1 brand above brands like
Apple and Amazon. In MBLM’s
(2019) press release it states that “Disney continues to dominate through
its associations with nostalgia and the strong bonds it builds with both men
and women and across a variety of age groups” (para. 2). Mario Natarelli, MBLM
managing partner, is also quoted saying, “We know that customers who form
strong emotional bonds with brands are willing to pay more and are less willing
to live without them. Insights from our annual ranking of brands are providing
lessons and new strategies for business leaders and marketers… Our demand for
escapism and our collective need for a distraction from reality is factoring
heavily in the brands that rose in 2019.”
As much as I
hate to admit it, I know for a fact that Disney brand loyalist annual
passholders are, in part, to blame for these price hikes. In fact, over the
years there have been a number of articles that have pointed out that the super
bloom of annual passholders has greatly impacted the Disney park-goer experience
(Frost,
2014; Niles,
2018; Salamon,
2018). Negative impacts cited range from the immense crowds that lead to a
packed Main Street and 6-hour attraction wait times, to the apparent sense of
ownership that some annual passholders give off, leaving some regular guests feeling
almost inferior.
According to
The
Washington Post, in an earnings call last year Disney CEO Bob Iger acknowledged
the need to raise prices. Iger said, “We know that crowding can be an issue and
that when our parks are the most crowded, the guest experience is not what we
would like it to be… So, we’re leveraging the popularity to obviously increase pricing
and to spread demand to get much more strategic about how we’re pricing” (Sampson,
2020, para. 9).
Thousands crowd on Main Street USA at Disneyland in Anaheim. (File photo by Mark Rightmire, Orange County Register/SCNG)
Basically,
this means that Disney needs to try to decrease demand to help maintain the quality
experiences in the park. It needs to make park going less attainable to ensure
it can keep delivering its promise of magical moments to guests (made difficult
by annual passholder crowds), which I can fully appreciate and respect. After
all, people do not expect clothing brands like Armani or Versace to lower their
prices and still provide the same quality as their top-tier products, right?
Other
factors likely contributing to the price hikes are all the new projects across Disney
Resorts, such as newly opened Star Wars: Galaxy’s
Edge and upcoming Marvel
Avengers Campus. After all, Galaxy’s Edge alone cost over $1 billion to
build (Thompson,
2019). Operation costs have also increased due to social and government
pressure for Disney to raise Cast Member wages, which now currently stands at
$15 to start (Meyersohn,
2018).
Concept art for Marvel Avengers Campus, coming to Disney California Adventure 2020.
While there are
many opinions about how Disney “should” handle these issues, clearly they
believe that raising prices can help cover costs and address the crowd issues. And,
considering we are not privy to all the ins and outs of the business, I have to
believe that Disney’s highly experienced leadership knows what they are doing
better than the rest of us.
Lessons
to learn from Disney fans
Disney will
continually deliver quality experiences for its guests that utilize
storytelling to engage them on an emotional and intimate level across various
interactions. Therefore, I have little doubt that truly loyal Disney fans will
be swayed by recent price hikes. While crowds may lighten a bit, annual
passholder will continue to appreciate the quality experiences the brand offers
and so crowds will likely remain a challenge as it has been for a number of
years now (Barro,
2019; Munarriz,
2018).
With this in
mind, while brands everywhere can only hope to create such intensely loyal customers
and fans, they should think through the possible repercussions of such loyalty.
What would happen if only intensely loyal Apple customers always bought out
Apple’s stock of its newest product and it was impossible to keep up with
demand due to some limited resource? What if Nike’s sneakers were never able to
be experienced by new consumers because brand loyalists always beat them to the
punch because of a loyalty program that provided early access?
What
feelings might this create to anyone outside this brand bubble? Does it stop
the brand from expanding its consumer base? If that is the case, does that
matter? As Disney has taught us, these are all important marketing and business
decisions to consider when aiming to create a solid loyal consumer base.
As for me, I’ll
continue to use my disposable income to maintain my Disney brand loyalty and I
am looking forward to my next outing to the park. 😊
Rhianna was titled the world’s richest female musician in 2019, with a fortune of over $600 million, while she is arguably one of the most successful musicians her fortune is not only contingent on her musical talents. She has morphed into a fashion and beauty icon with her fast-growing Fenty Makeup line and Savage X Fenty lingerie brand. Last year she partnered with LVMH, the French luxury goods giant, making her the first black woman in charge of a major luxury fashion house.
Rhianna is praised for promoting inclusivity
and diversity as her makeup brand debut featured an extended collection of shades
and her clothing line features models of many body types.
Savage X Fenty Models
While Rhianna is basking in the success of her makeup line’s joint venture with the parent company of Louis Vuitton, the same could not be said about her lingerie line, Fenty X Savage partnership with e-commerce company TechStyle Inc.
The sizzling lingerie brand, Savage X has come under fire by Truth in Advertising, a nonprofit organization whose mission is to protect consumers against false advertising and deceptive marketing. Fenty X is being accused of deceptive marketing for “secretly” enrolling customers in their Extra VIP membership which entails an annual fee. Several customers have reported being enrolled in the program without their knowledge. One customer says she was surprised when her debit card was charged for several months for a service she never used (New York Times, 2020).
Savage X offers customers an Extra VIP membership program, which is a pretty common loyalty program offered by numerous retailers, however, on Savage X website’s product prices reflects both regular price and Extra VIP Members price regardless if you are enrolled in the program.
Product is listed in regular price and VIP Price
Here is where the proposed deception
occurs:
A customer adds an item in their virtual shopping cart, the price that is listed is defaulted to the Extra VIP price, when its time for check out the cart contains the discounted price as well as the VIP Program subscription, albeit the customer did not add it in their cart. I went online and carried out the steps as if ordering a product and had the same experience.
The Savage X Monthly Membership is added to the cart by default
This is the premise in which Truth Advertising is crying foul on the fashion mogul’s brand claiming costumers are being tricked into purchasing a $49 a month loyalty program. Savage X is not the only e-commerce brand that has received scrutiny for this form of marketing practice. Savage X partner TechStyle Inc has been accused of deceptive marketing before, namely Fabletics one of its partners, a popular online fitness apparel store.
According to consumer law deceptive advertising, also known as false advertising, refers to a manufacturer’s use of confusing, misleading, or blatantly untrue statements when promoting a product. Do you consider this deceptive? Or should consumers be held accountable, since they are responsible for reviewing their cart before making a purchase?
