Aug 09 2008
The Week That Was In Marketing
As the Chinese proverb goes, “May you live in interesting times.” Well, these are some interesting times we are in right now, especially for those of us in marketing. Herewith are some random observations and insights (and the occasional rant) on the world of marketing in the past several days:
- JetBlue Blows Years of Good Will With Blanket Charge– What were they thinking?! The recent news that JetBlue has resorted to charging $7 for blankies on its flights really demonstrates the marketing definition of “penny-wise and pound-foolish.” We all know jet fuel is killing airline profits and making money is tougher than ever for these carriers, but this just looks like an act of desperation — clearly an act of stupidity. Making matters EVEN worse (is that possible?), JetBlue tried to justify its blanket charge first by offering a $5 coupon from Bed Bath & Beyond with the $7 cost, and then positioning the move as environmentally friendly!! Yes, the blankets are biodegradable and green, etc. Pigs with lipstick look much better than that lame excuse. JetBlue should have just increased their prices another $7 and called it a fuel charge. That is less than the cost of two gallons of gas for consumers, who would probably not have blinked an eye at the the surcharge. As it is now, JetBlue has earned the ire of travelers nationwide who once admired the company and its brand for offering real value — and even personality — for the money. Today, JetBlue looks like just another money grubbing corporation trying to gain advantage on the backs of cash strapped consumers.
- Apple Stumbles With “I Am Rich” Application– To its credit, Apple pulled the new iPhone application “I Am Rich” (created by one of the company’s celebrated independent developers) after just a day or so. The $999.99 application provided a little red light for your iPhone screen. Yes, a little red light for a cool grand. Talk about conspicuous consumption. Apparently, six of the applications were sold before Apple eliminated “I Am Rich” from its iPhone app online store. Which just proves again that a sucker is born every minute, or the rich really are different from you and me. This application controversy sparked a lot of chatter in the blogosphere, with sentiments running roughly 50/50 between those who thought Apple made a horrendous mistake by offering this do-nothing application, and those who thought it was a great, cheeky goof on rampant consumerism. I kind of agree with both camps on this one. But, “I Am Rich” is clearly a blemish on Steve Job’s meticulously crafted brand, which has always been known for innovative performance and, yes, a kind of high quality value.
- “Whole Paycheck” (Foods) Tries To Sell Value Meals – You had to laugh at the recent articles that Whole Foods, the uber Yuppie emporium of organic, gourmet, high priced foods, was desperately trying to tell people that they are actually quite a value in the grocery business. Why was Whole Foods trying to make this new image fly (good luck!)? Because in an economically challenged environment, people are cutting way back on luxuries (even heretofore “affordable, everyday luxuries), and “Whole Paycheck’s” revenues are suffering badly because of it. Starbucks is going through the same problem, as are even some of the luxury car brands like BMW and Mercedes, whose sales are down because of high gas costs and economic uncertainty. I love it when brands try to have it both ways. If, like Whole Foods, you have built a strong brand around the best and most exotic selection of foods and organic specialties – price be damned — it is hard to become Costco or Safeway all of a sudden. The reaction to the Whole Foods strategy was met pretty much with snickers from consumers who know better. High priced, prestige brands that try to downshift do so at their peril. Gucci and Tiffany both attempted this value shift in past recessions, with disastrous results. The two luxury brands were able to come back by reemphasizing their heritage, unique designs and prestige. Mercedes tried the same lower price move a few years ago, with predictably negative results. Indeed, the company tried to market a low end hatchback, which quickly tanked in the marketplace, sullying the storied Mercedes brand. Note to Whole Foods and Starbucks: Forget the mass market aspirations (especially Starbucks). Focus your brand on high quality, authenticity, unique and fresh products, health (especially Whole Foods), and a total experience. Leave the mass marketing to Safeway and Dunkin Donuts.
- The Beijing Olympics Opening Ceremony– Yes, it was a phenomenal spectacle. Yes, there has never been another opening ceremony even remotely like it. Yes, it was awe inspiring. It was also way over the top — the thousands of drummers looked a bit too much like robots. It was funny that the Beijing Olympics officials apparently instructed the drummers to “smile” more, lest they look like Stepford musicians. Well, they definitely were in full Stepford mode last evening. To me, the opening ceremony was too much flash and spectacle and not enough soul and humanity. I have long since stopped hoping that any Olympics — no less one taking place in the world’s largest totalitarian state — could be free of nationalistic jingoism, propaganda and certainly not commercialism. And, the Olympic Games have definitely not been about “purity of sporting competition” for many, many years (notwithstanding the protestations every year by the IOCC officials, who try to keep the purity fiction alive). The Olympics in recent years have come to resemble one big over-produced commercial. And that is not a good thing. The Chinese are just doing it bigger, and more grandiose, than anyone has ever even contemplated. Good for them, I guess. But, what about those NBC announcers! I literally almost lost it last evening with the breathless commentary by the NBC robots masquerading as TV hosts. It was what I would have expected from the Today show spokesrobot Matt Lauer (whose main claim to fame recently is making the best dressed list in Vanity Fair), but Bob Costas usually is able to muster more intelligence and Independence in his commentary. Even Costas sounded like a QVC announcer, breathlessly describing the fabulous attributes of yet another cubic zirconium bracelet for a mere $139.99. The worst was the “China expert” commentator (Ramo something), whose job was to advise Matt and Bob on the deep cultural ”meaning” of the ceremony’s drummers, and world’s biggest LED scrolls, and world’s greatest fireworks, and myriad Chinese historical references. Fighting back the gag reflex because of this mockumentary commentary, I switched the channel to ”Blades of Glory” on HBO. What brilliant counter-programming on HBO’s part! The fake Olympic Games in that movie, the Winter Sports Games in Montreal, was announced with the same breathless wonder and sincerity by the real sports talking head Jim Lampley, who hysterically turned to his expert skater co-host and said, “Scott, I just peed in my pants.” Sorry to say that the mock extravaganza of “Blades of Glory” was fresher and more entertaining than the over-produced real thing in Beijing — and especially NBC’s coverage.


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Patrick,
I think you can write a similar post at the end of each week. The public relations/marketing/advertising business will continue to energetically implement bad ideas as long as execs still think they can get by with a nod and a wink.
No bigger story of a bad idea than the one John Edwards had when he thought the story of his affair would remain a secret.
We are all human — short-sighted, ego-driven, error-prone and deeply apologetic — but that doesn’t reduce the public penalty for being dumb.
There is as much a business in helping companies and candidates avoiding such pitfalls as there is in promoting their products, services and ideas. The problem is it is hard to say “no” when fees are more liberally linked to “yes.”
Cheers and continued success with your blog.
John Berard
Carl Byoir (class of ‘78)
John, could not agree with you more! I am constantly amazed by the bad marketing and PR moves by companies, organizations and, yes, politicians (wow, did John Edwards fall off a high perch there?!). And, as you articulate so well, the PR and marketing agencies and consultants that supposedly advise these clients on avoiding the pitfalls and bone-head moves are not doing their jobs. You’d think there would be a good business helping them see the light, but no one wants to hear the bad news. So the agencies are major enablers in a giant 12-step process of bad marketing (probably got my metaphors wrong there!).
Patrick Di Chiro
Carl Byoir & Associates, Class of 1981
So much fodder to comment on John … Thanks for the opportunity to read and respond to the inefficient manner in which large companies seem to test our resolve and intelligence.
Also, I must congratulate you on the transformation of Factiva (have used in the past to great satisfaction … more so than Hoovers). The videos are a great idea and I love how you made Factiva push the envelope. Most of all … It seems honest in its humor, and the honesty is what stands out (unlike your descriptions of the ABC robots, Whole Foods, Starbucks, and JetBlue).
Here is a question though: Does it matter that these big PR/marketing agencies enable and make horrendous decisions? Look at what works … Make a mistake … Get caught … Apologize … Become bigger and better then you were before. It’s Hollywood, Politics, and Corporate. We have accepted this as normal, as unfortunate as that is.
Thanks for the blog … I cannot put my finger on it, but something about your site, language, voice, and message, seems different. To stay on my current soap-box … You seem honest … I am sure that will pay off!
Keith Lewis
No Carl Byoir Class, just words …
I meant to write … “so much fodder to comment on Patrick,” … my apologies Patrick.