Making their (Accent) Mark: McCafé

 

Percolating what some experts are calling the “coffee wars,” McDonald’s is taking on Dunkin’ Donuts and Starbucks with its new line of coffee beverages that includes customizable lattes, cappuccinos and mochas.

Introduced in May, 2009 with a reported combined media spend of $100 million, McDonald’s found ways to ‘McCafé your day’ by turning your morning commute into a commuté and your cubicle into a cubiclé. In the world of McCafé something ordinary takes on a whole new caché just by adding an “é.” McDonald’s chief creative officer told Ad Age that the accent shows that there is “a wit and charm to the brand, and to the products and to McDonald’s.”

On launch day, McCafé took over YouTube’s homepage, and their first foray on this medium was so successful it helped legitimize YouTube as a premium ad space. The company also advertised heavily across TV, print, outdoor, radio, Internet, and events.

As an extra incentive for consumers, McDonalds ran a promotional contest to win a $50,000 Visa gift card and a $500 McDonald’s Arch Card, asking contestants to submit a story and photo about how McCafé improved their day. On McCafé’s own micro-site, visitors engaged in ice skating, attending the theater and making coffee art.

While Beverages make up about 5% of McDonald’s business, McCafé poses a real threat to competitors at 79 cents less than the cost of a same-sized cup of Starbucks. The sales figures back it up, with an overall 2.2% rise in August 2009 (attributed to McCafé and other new products like the Angus Burger). McDonald’s successfully capitalized on a trend in cost-conscious behavior among consumers. But long term success hinges on one question: Does a McDonald’s McCafé make your day?

Beatles: Rock Band: Experience the Music from the Inside Out

The interactive gaming world changed forever on 09/09/09 when MTV Games and Harmonix introduced Beatles: Rock Band, the first of its kind in retro rocker gaming experiences. Beatles Rock Band takes gamers on an interactive journey through the Beatles’ career from “Please Please Me” to “Abbey Road.”   Gamers can play-along on Beatles replica hardware to any of the 45 songs in the extensive catalog. “The project is a fun idea which broadens the appeal of the Beatles,” according to former Beatles member, Paul McCartney. “I like people having the opportunity to get to know the music from the inside out.”

To promote the product, Beatles: Rock Band was released simultaneously with the re-mastered Beatles catalog. Viacom spent a whopping $10 million in payouts for the rights to Beatles songs, taking a yellow submarine-sized gamble in the down economy. The marketing efforts were massive and included expensive TV spots, a co-promotion with Pepsi as well as a major cross-promotion on all of Viacom’s cable networks at 9am and 9pm on 09/09/09. Other efforts included the sale of Beatles memorabilia at a broad range of retailers, from 7-11 to Whole Foods.

Since its September release, the game has sold 595,000 copies. Revenues in the music video games category have increased 72% in the past year due to the success of both Beatles: Rock Band and Guitar Hero 5. Sales were also driven by the new replica hardware. Gamers can purchase the Rickenbacker 325 guitar, Gretsch Duo Jet guitar, Höfner Bass and Rock Band Ludwig drums, which cost around $100 each.

Viacom CEO Philip Dauman reported, “The sales have exceeded our internal expectations…In the first week we’ve sold about 25% of our inventory, and we’ve had tremendous excitement around this game.” Sales numbers and excitement of that kind are enough to give anyone “kaleidoscope eyes.”

Second Chance to Make First Impression: Microsoft Launches Windows 7

Windows Vista’s first impression with customers was simply terrible, leaving consumers begging for the older XP. So it’s an understatement to say that Microsoft had its work cut out when developing Vista’s successor. Three years later, we have Window’s 7.

Using customer feedback and “borrowing” popular features from Apple (including Mac OS X dock and touch technology), Microsoft is seeking some much needed redemption. A team of 3,000 employees have developed an array of improvements including better versions of Internet Explorer and System Restore.

For marketing, Microsoft launched a TV ad campaign six weeks ago, and did something unique: they asked consumers to host Windows 7 launch parties. Party hosts had the opportunity to explore the software weeks before it was released, and were encouraged to post blog, video and picture updates.

To promote this global event, Microsoft released a video advertisement explaining the concept of a Windows 7 launch party. Although the commercial received over one million views on YouTube, critics and bloggers wondered if the effort was intentionally awful or just poorly put together. Search Engine Watch commented, “If you create something so bad that it goes viral, is it a public relations disaster or a video marketing triumph?”

Despite the dicey launch party marketing, Windows 7 received very positive press with businesses and general consumers who expressed intent to buy. In addition, 5,000 launch party packages for Windows 7 were mailed to hosts. First impressions (Vista) and horrible marketing aside; can unique launch parties and a great product turn the tide of negativity?

What’s the best way to cope with the recession? Eat Giant Cheetos.

Major snack brands, like Frito-Lay are discovering creative ways to help consumers cope with the sagging economy. “People are looking for anything to break the negativity,” states Ann Mukherjee, marketing chief at Frito-Lay. And that is exactly what Frito-Lay did when they created the BIGGEST innovation to come out of the snack industry – Giant Cheetos.

Launched April 1, 2009 and roughly the size and shape of a golf ball, this cheesy sensation comes in both regular cheese and Flamin’ Hot flavors.  What was originally percieved as an April Fool’s Day prank was far from it. Frito-Lay hired cultural anthropologists to observe what restless workers fiddle with at their desks. The most popular object was the stress ball…and hence Giant Cheetos were born.

A company that typically markets to America’s youth, Frito-Lay shifted its focus and spent $13 million in the first 11 months of last year to bring cheesiness to working adults, compared  to the mere $8 million in 2007. Hoping to lighten up “recession-obsessed” consumers, Frito-Lay ran significant amounts of print and television advertising including creating a virtual online playground encouraging adults to take a break from the everyday and have more fun at work. The website has everything from interactive video games to a custom created “Office Pinata” that can be formed in the shape of an enemy. In addition to declaring April National Humor Month, Frito-Lay offered tips on how to enjoy Giant Cheetos while unleashing the fun side. Frito-Lay offered ideas such as; “Use plastic wrap to close off a co-worker’s cubicle.  Then, fill the cubicle up with Giant Cheetos for the cheesiest of ball pits.”

“A historic day, indeed,” muses Chester the Cheetah in the new Giant Cheetos commercial. Will snack foods be the cure to recession woes? Probably not, but at least Giant Cheetos have provided some much needed fun and entertainment.

A Liquid to Grow Lashes

In the quest for eternal beauty, many women do whatever it takes.  Whether it’s Botox, chemical peels or the latest face cream, some consumers just can’t put a price on beauty. Soon, Latisse may be  the next-best, must-have product.

The first of its kind, Latisse is approved by the FDA for the treatment of eyelash hypotrichosis, the condition which causes inadequate eyelashes. Available by prescription only, Latisse is shown to increase the length, thickness and darkness of eyelashes after applying the liquid to lashes regularly.  This product eliminated the hassle of using messy mascara (yes, you heard right, a pharmaceutical solution to eyelash envy).

Allergan has been promoting and selling Latisse for only a few months, but early projections indicate the product could pull in more than $500 million annually. Allergan, Inc. has been marketing this new product by targeting dermatologists, optometrists and plastic surgeons as well as buying ads in medical journals to establish the brand in the medical community. The company is also using public relations and advertising to educate consumers. Television commercials feature spokesperson Brooke Shields, and the Web site even features pictures of Brooke’s eyelash progression while using Latisse.  In her video diary, Shields says “Everyone” has noticed the difference in her lashes and that her expectations were exceeded.

Brooke is also involved with LATISSE^® Wishes, a charity campaign whose goal is to raise $1 million to support the Make-A-Wish foundation, which grants the wishes of children with life-threatening medical conditions. LATISSE^® Wishes kicked off with a star-studded launch party in March.

By launching Latisse with such a strong marketing campaign, Allergan is presumably hoping that women will give the product a chance and spread the word. For now, we’ll wait to see if Latisse gains approval from this demanding demographic, making it a staple in their beauty regimen. What do you think – perfect product or scary science?

Samsung Launches New LED Technology in Ultraslim TV

TV junkies, techies, gamers and film buffs everywhere are drooling over Samsung’s new line of high definition LED TVs. The TVs, introduced earlier this year, are expected to sell 10 million units by 2010. Samsung will spend more than $25 million for a US promotion deal with the NFL.

Samsung has been promoting the launch heavily, spending three times what they have on marketing in the past. This summer, they ran an international ad featuring a hummingbird, lit by glowing diodes, flying from flower to flower. The zoom out revealed the shimmering LEDs. A recent Sears ad played off quarterback Brett Favre’s infamous indecisiveness (the quarterback has retired and un-retired twice, with both decisions a lengthy saga in the press). As the store closes for the evening, Favre feigns agony while deciding which Samsung LED to buy.

Samsung is also behind a hugely successful and exceptionally creative viral campaign known as ‘extreme sheep LED art.’ They contracted with a British TV studio to make a short film involving live sheep decorated with LED lights that are herded along a hillside to create different images. One version on YouTube has almost 10,000,000 views.

Marketing aside, the big question is: what’s all the hype about? Well, LEDs (or light emitting diodes), as opposed to commonly used CCFLs (cold cathode fluorescent lamps), produce ultra-high contrast ratios (5,000,000 to 1 ratio in the best model). They also generate colored light without the use of filters for advanced color processing and brighter, truer shades, while allowing for slimmer designs. Finally, LEDs contain no mercury and create more light per watt, so they’re not only cooler, they’re greener – to the tune of 40% less power than conventional LCDs.

Extra goodies include a slim 1.2-inch design that hangs like a picture frame (with a special mounting rack), USB 2.0 and HDMI ports and wireless capability that allows users to watch content from their PC with no cables (higher end models). Pre-loaded content includes picture galleries, games, recipes – even yoga classes. Plus, Samsung is teaming with Blockbuster to allow owners access to Blockbuster’s library of digital entertainment from their living room sofa.

It’s hard to refute that Samsung is defining the leading edge with the slim design and features of the LEDs. The question for consumers is whether the extra features and picture quality are worth the price, which contrasts with LCDs by as much as $1,000. Choreographed sheep art, slim design and crazy-good picture quality are enough to stoke excitement – but are they enough to put you out an extra $1,000? Let us know what you think.

The Palm Pre vs. The iPhone 3GS

The first week in June was huge for techies and Smartphone lovers, as two of the most highly anticipated launches promised both fierce competition and delight for users. On Saturday, June 6th, Sprint users lined up for the Palm Pre Smartphone. In the 1990s, Palm led the way with handheld computers and made headlines with the Palm Treo, but recently Palm has been overshadowed by Apple’s iPhone and Research In Motion’s (RIM) Blackberry. Palm hopes the launch of the Pre will help reestablish brand relevance. Just two days after the release of the Pre, Apple unveiled the iPhone 3GS, which becomes available June 19. Palm and Apple are both sure to advertise heavily, but are embarking upon two different strategies.

BREAKDOWN: Palm Pre vs. Apple iPhone 3GS

Palm Pre and the iPhone 3GS have been trending topics on Twitter for the several weeks. Palm was quick to use social media in its marketing campaign, launching the Pre on Facebook. The visually stimulating, 60-second ad, shot in China with a Zen-like theme, plays on viewer emotions and demonstrates how the phone can manage the user’s life with ease using the breezy, glide-touch screen.

Ad executives unofficially estimated that Palm spent $50 to $75 million on its ad campaign, but are also relying on the buzz created on social media networks, such as Facebook and Twitter, to amplify the chatter about the product. Sprint (Pre’s carrier) has even plugged Twitter into their “Now Network” campaign, hoping to appeal to early adopters on social media sites.

Apple, already a dominant presence, holds 20% of the U.S. Smartphone market, second only to Research In Motion (RIM) which holds 55%. In 2008, Apple spent $486 million on advertising, and it’s safe to assume with the rise of the iPhone 3GS, 2009 will follow that trend. Apple hired movie director, David Fincher (The Curious Case of Benjamin Button) to direct the advertising for the 3GS, which takes center stage in the commercial, unlike the Pre in Palm’s spot. Currently, Apple does not maintain a presence on Twitter and its advertising far outshines their Facebook Page.

With society becoming more active in social media, but still engaged by traditional PR and advertising tactics, which launch to do you think will be more successful? Is it the campaign or the product that will win the day?

Pantene Goes Natural with Nature Fusion Line

Over the past few years, some of the largest consumer trends have focused on green, natural, and organic products. Proctor & Gamble is following this trend with its new natural hair-care line: Pantene Nature Fusion.

Appearing in stores this month, the line comes in two varieties of shampoos and conditioners, Moisture Balance and Smooth Vitality. The ingredients in Moisture Balance include cassia, ginger, and aloe vera extracts, while the ingredients in smooth vitality include bamboo and grape seed extracts.

At $3.99 per bottle, consumers get the benefit of natural ingredients, without having to pay salon prices. Although, the current economic situation may discourage some consumers from splurging on beauty products, Pantene’s products are affordable. According to John Faucher, a JPMorgan analyst who was quoted in a recent Adweek article, “Even in a recession, consumers are still willing to pay more for green products.”

P&G hopes to improve Pantene’s slumping sales figures and is promoting the new hair-care line through a commercial that includes the host of Top Chef, Padma Lakshmi.

Will Pantene’s Nature Fusion’s benefits outweigh it’s slightly more expensive price tag?

Febreze Launches Destinations Collection

From Staycation to Vacation

Last summer, many people opted for a “staycation” during their vacation time because of high gas prices. If the economy doesn’t turn around by this summer, the trend will most likely continue. Febreze attempts to capitalize on this trend with their new Destinations collection, which launched on February 4th.

The collection comes in three different scents, Hawaiian Aloha, Brazilian Carnival, and Moroccan Bazaar, and promises to provide a “scent getaway” at home. The products come in sprays, candles, and plug-ins, and are sold for between $2.99 and $7.99, much cheaper than a real getaway.

Before the launch, the three scents were extensively tested at Proctor & Gamble’s Consumer Village research facilities. According to a recent Wall Street Journal article, there have been many scent trends and fads over the past few decades, and P&G is hoping to inspire a new trend or fad with the new collection.

The launch is being promoted through an online sweepstakes, titled “From Staycation to Vacation Sweepstakes.” The grand prize winner will receive a trip to four to one of the three destinations, as well as $1000 cash to spend. In addition, the ten first prize winners will receive a $1000 home makeover, and over 1500 people will win Febreze coupons.

Will the new Febreze collection create enough vacation ambiance in homes to become a most memorable product for 2009?

Starbucks Plans to Launch Instant Coffee

In a time of job cuts and home foreclosures, a $4.00 latte is one indulgence that some Americans are willing to forgo. Although Starbucks’ premium lattes are what made the coffee shop famous, the premium prices are now hurting its profits.

Competition with places that sell cheaper coffee, such as Dunkin Donuts and McDonalds, has pushed Starbucks in the direction of more affordable beverages.

Starbucks plans to launch its new line of instant coffee, Starbucks Via, next week. Although the launch was supposed to be kept secret until February 17, executives leaked the story to Advertising Age, and now it’s appearing everywhere, from blogs to Fortune magazine, to the Wall Street Journal.

According to Fortune, stores will begin selling Starbucks Via, which is powdered coffee that just needs hot water, as early as next month. The product will be sold in packets that come in packages of three for $2.95 or 12 for $9.95. As a result, consumers will be able to have a cup of Starbucks coffee for under $1.00.

If the taste is the same as regular Starbucks coffee, Starbucks may have created one of the most memorable products of 2009. If the taste isn’t comparable to its original brew, the product will disappear.

Unfortunately, many people have negative biases against instant coffee that may discourage them from trying Via. A Wall Street Journal article explains, to counter the problem, Starbucks went through hundreds of versions to replicate its signature brewed coffee taste and plans to heavily push samples to consumers. In addition to sampling, it will be interesting to see how Starbucks positions and promotes this new product launch.

Will an inexpensive, instant version of America’s favorite luxury coffee sell? Or will people continue to indulge on their more expensive favorites? Does this campaign require re-educating consumers about the great taste of instant coffee?