June 2006
Brand Strategy's Trends and News for June
Welcome to the fifth of our monthly newsletters.
Ruth Mortimer, editor (ruth.mortimer@centaur.co.uk) recommends…..
CHINESE WHISPERS?
Are Western firms starting to rethink their future in China? After an initial scramble to enter the more accessible economy, Google’s Sergey Brin has said that the search engine is reconsidering if it can feasibly keep its “do no evil” principles by operating in the Chinese market. Meanwhile, Rupert Murdoch’s News Corp is to sell more than half its shares in Hong-Kong-based Phoenix Satellite TV to China Mobile.
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DO IT YOURSELF
Consumer-generated ideas are one of the hottest trends of the last few years. Now FMGC giant Kraft is tapping up customers after seeing the success of a similar programme at Procter & Gamble. Is it corporate laziness or loyalty in action?
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DIVERSIFYING DISNEY
So you thought Disney was an entertainment brand? After pulling out of its 10-year association with McDonald’s to provide merchandise for Happy Meals, the brand has agreed to license its brand to European supermarkets to use with healthy items such as fresh fruit and vegetables. Meanwhile in the US, the company is producing pet food.
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HOTEL HAPPENING
Branded hotels are all the rage in the US, Asia and Europe as documented by Brand Strategy last spring. Following on the heels of denim brand Diesel’s Miami boutique hotel, Miss Sixty has created its own hotel in Italy. What’s next? McDonald’s hotels - oh no, that has already happened…
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Morag Cuddeford Jones, contributing editor, (morag.cuddeford@centaur.co.uk) recommends….
BANG’S BLOGGING
A blogger was surprised when a tailored corporate reply popped up in answer to his heartfelt post about speaking to his father for the first time in 30 years. Despite extensive apologies from everyone connected with the brand (they deny being involved), this story is a warning about the dangers of corporate blogging - whether your brand is really involved or it is just a fan or even a competitor using your name.
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BANKING ON RELIGION
UK banking chain Lloyd's TSB is to extend its Sharia bank accounts across its 2,000 branches nationwide, following interest from non-Muslim investors. Other religious groups such as Quakers have expressed a desire to use Sharia accounts instead of mainstream banking, because of Sharia's strict adherence to ethical investing.
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TECH THIS, ASIA
Technology companies are finding an answer to market saturation in western markets by capitalising on the consumer technology boom in Asia. Yahoo is seeking to consolidate its position in Asia with the acquisition of shopping portal Gmarket in South Korea. Motorola is also investing in the east with a $100m cash injection for India as it builds a manufacturing plant there. Both brands are number two globally and playing catch-up to the number ones, Google and Nokia, who are already establishing strong footholds in the territories.
Yahoo:
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BURST OF PUBLICITY
Here's a marketing coup that has exploded all over the internet. The humble
Mentos sweet has been found to have spectacular properties if mixed with
Diet Coke. Popping the sweet into a Diet Coke bottle causes a reaction that
results in a 20ft geyser shooting into the air. Mentos has found about 800
videos of the soda fountains all over the internet and estimates the free
publicity to be worth $10m.
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Kate Walsh, feature writer, (kate.walsh@centaur.co.uk) recommends...
GASSING ON TV
Pepsi, Frito-Lay and US Tobacco are some of the brands advertising on Gas Station TV – a digital television network that motorists can watch as they fill up on gas.
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FUR’S OUT FOR THE SUMMER
Ralph Lauren has become the second major fashion house to eliminate fur from its collections – Calvin Klein did so in the mid-90s.
More...Iin the same week the fashion brand also announced plans to shut down its Polo Jeans label in the US. Is the great brand diffusion race over?
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VANITY PUBLISHING
American watchdog group Commercial Alert is calling on book reviewers to boycott a new teen novel because it includes a product placement for Procter & Gamble’s cosmetics brand Cover Girl.
More...In 2001, popular female novelist Fay Weldon was commissioned by Bulgari to write a book which contained at least a dozen references to its products.
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THE KFC LIBEL
It doesn’t have the same ring as the McLibel but Kentucky Fried Chicken is facing a lawsuit by a consumer group for selling foods that are “startingly” high in trans fats. For round one see:
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Claudine Baker, feature writer, (Claudine.baker@centaur.co.uk) recommends…
EMPLOY THIS
McDonald’s, meanwhile, is trying to improve its reputation as an employer brand. The UK arm launched its ‘Not Bad for a McJob’ ad campaign this month, backed by research from Professor Adrian Furnham which claims that 90% of workers were engaged with the brand and 85% believed the job was better than initially expected.
More...RESEARCH LINK:
The reaction three years ago to ‘McJob’:
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EUROPA’S BULL IN A CHINA SHOP
Is your brand appealing to China’s middle class? Find out here with a report from McKinsey:
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WORLD CUP OR WORLD CLASS WASTE?
Does the World Cup really make more consumers buy your products? The debate raging over this issue is almost as fierce as the tournament itself.
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Also from Brand Strategy magazine this month…
Joe Clift, VP of brand management at Visa Europe, explains why he is safe hands for the financial services brand:
More...How does your pricing strategy affect your brand value?
More...It’s just Lush; the organic cosmetic retailer is soaping to hit the big time
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