August 2007

Brand Strategy's Trends and News for August 2007

Welcome to Brand Strategy's trends and news for August. If you want to keep up-to-date with what's on our radar on a more regular basis, please visit our blog at http://brandstrategy.wordpress.com

Morag Cuddeford Jones, Brand Strategy’s contributing editor recommends:
Nokia's assault on battery
Mobile handset manufacturer Nokia has admitted that it may have to recall and replace nearly 46m batteries for its phones after the discovery that some overheat while recharging.
While no-one has been injured as a result of the fault, nearly 50 of the company's models are affected. As the leading mobile phone manufacturer worldwide, will this recall impact the overall positive view of its brand?
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Water waste
Bottled water producers are coming under attack from US environmentalists over the growing popularity of drinking water from plastic bottles rather than the tap. They cite the growth in refuse from discarded bottles, and the transport costs in terms of pollution of sending water from one part of the country to the other, when the contents of the bottle has no proven nutritional benefit over that delivered by local plumbing. While bottled water manufacturers hit back, claiming their product helps divert the consumer from sugary fizzy drinks when thirsty on the move, others counter that tap water is readily available - and almost always given free - from most restaurants, cafes and bars.
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Enjoy a slice of Lennon in your Apple juice
Having finally ended the wrangling with the record label of the same name, Apple is well on its way to nabbing every Beatle note, both collectively and individually. Shortly after securing the McCartney archive, Apple has moved on by making 16 of John Lennon's album back catalogue available on its iTunes service. The output of Ringo Starr and George Harrison are expected to be available for download shortly.
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Are you clarin me a liar?
Beauty brand, Clarins, has had its expertly manicured fingers rapped by the UK's advertising watchdog for implying in its advertising that one of its products protects the skin from the ageing properties of mobile phone
emissions. Now women will have to add a third element to the eternal
dilemma: Previously, you chose between Face or Bottom - youthful face and fat bottom, or thin bottom and haggard face.
Now the question must be: Face, Bottom or Phone?
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Profits of doom
Hot on the heels of the widespread stocks and shares panic brought about by the US's sub-prime mortgage fiasco, US retailers are warning of widespread economic slowdown as they report a fall in profits over the first half of the year. Wal-Mart, Home Depot and iconic department store, Macy's, have all warned of consumer inertia as the latter witnessed a 4% drop in profits. Optimists are hoping consumer conditions will improve over the second half of the year, including the all-important Christmas period.
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Pork balls
The strained relations between China and its trading partners continues as
the country bans the import of Pork from the US amid concerns the meat does not meet standards for human consumption. It is claimed the meat contains a growth hormone banned in China. This follows the latest announcement that millions more toys manufactured in China are to be recalled over safety fears. Read more about China's safety issues in the September edition of Brand Strategy.
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Maeve Hosea, Brand Strategy’s feature writer recommends:
King of Rock and bank roll
This week, as thousands of Elvis fans flock to Graceland to mourn their king's death 30 years on, his image is carefully managed to financial effect. Brand Elvis is alive and kicking and Elvis Presley Enterprises pulled in 48 million dollars last year, about 13.6 million of which came from licensing.
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Universal music unloads restrictions
Universal Music Group, the world's largest music company has announced it will begin "testing" the sale of restriction-free downloads for its extensive music catalogue. With a roster of leading recording artists including Amy Winehouse, 50 Cent and Prince, Universal’s move is significant.
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Virgin America takes off
UK entrepreneur Richard Branson pushes the frontiers of his operation forward with the launch of Virgin America believing America’s domestic market is ready for his particular brand of irreverence.

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Dutch firm Akzo Nobel clinched a takeover deal of British company ICI. Agreeing to pay £8 billion for the maker of Dulux paints, Akzo's move is the latest takeover of a former bastion of British business. The sale reflects the growth of globalisation and big business’ need for consolidation.
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Art House Cinema Hits The Spot
Television manufacturer Philips Electronics is abandoning the traditional 30 second advertising spot for its high end model Aurea in favour of the short film medium. The brand is using the fashionable allure of Hong Kong director Wong Kar-wai to create a five minute short to advertise its wears in Parisian designer stores.
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Game Off for Second Life bank
One of Second Life's most powerful banks - Gingko Financial - has shut up shop. The biggest bank in the virtual world of Second Life has closed its doors after a run on its deposits and raised questions about the virtual world’s economy. While the game's economy is based on the fictional currency Linden dollars, those dollars have real-world value.
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