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November 2008, Week 4 Marketing Archives

Friday, November 28, 2008

Stocks Rise but Sears Website Stalls on Black Friday

sears.com down

Bargain Hunters hit the stores with cash in hand today, as the annual doorbuster sales blowout known as Black Friday commenced. Stocks for major retailers haven't drastically fluctuate up or down,and the Dow was up 102 points as of 1:45 p.m.

Sears' (NASDAQ:SHLD)investors and executives must have cringed at when sears.com stalled due to high traffic volume. (High traffic is obviously a great sign-but imagine all the potential revenue lost when those online shoppers went to a competitors's site, such as Wal-Mart or Target).
Highlights for Sear's sale include Panasonic's Viera model 40-inch HD flatscreen,and the website issue couldn't have come at a worse time for Panasonic (NYSE:PC). This morning, the electronics manufacturer announced a 40% change to its profit forecast for 2008. As of 1:45 p.m., almost 2 hours after Sears' doorbuster sale ended, Panasonic was down -2.71 points (-18.50%).
According to CNBC's team of on-site reporters at Best Buy(NYSE:BBY), many customers were buying the bulk of the gifts on their list and many were paying in cash-which could indicate a shorter-span to the holiday shopping season.If many shoppers plan one-stop shopping today, the rest of the sales season could be painfully slow for retailers.

Posted By Matt O'Hern at 01:45 PM
Permanent Link: Stocks Rise but Sears Website Stalls on Black Friday | Comments (2)

Will Blu-Ray Eventually Knockout Movie Theaters?

movie theater closing

Blu-Ray Players are one of the hottest items for Christmas this year, and as more Americans upgrade their home theater, movie theaters are searching for profit solutions.
Despite the fact that Blu-Ray sales fell short of sales projections for this quarter, Sony's head of electronics Stan Glasgow, believes that figure can be credited to the slouching  economy as a whole. He told Reuters:

It's not that far off of it/Maybe 10 percent off of what we had thought. It's truly one of the items that has performed well during this economic mess.

Compared to the steep decline in movie theater revenue, Blu-Ray appears to be in much stronger condition than your local box office. For example, AMC Entertainment Inc., (NYSE:AC) said it earned $3.7 million in the quarter ending Oct. 2, compared with $36.9 million a year ago.theaters in South America.Revenue fell 10 percent from $701.4 million to $630.5 million.Carmike Cinemas,  the fourth largest theatre company in the United States, lost $25 million in 200. Since 2004, its stock price dropped from 39.00 per share to 3.09 today.In that same span, Regal Cinemas has fallen from $20.86 to $9.07.

Distinct advantages movie theaters once boasted, such as superior picture quality and surround sound,have been eliminated by the latest innovations in home theater technology.Of course, one appeal  the movie theater will always have is the lure of simply "Getting out", but I wonder if that still has the same appeal to modern families.

Short-term, opting for the theater is obviously much cheaper than throwing down $400 for a new home entertainment system, but with ticket prices averaging $8-$10 and concession stand menus with outrageous prices, parents of large families can appreciate the value behind a home theater. Blu-Ray movie are a bit pricier than DVDs,for now, but they're not unreasonable.Iron Man, one of the biggest box-office hits in 2008, sold for $22 Blu-Ray format it hit Target's shelves.Disney signed an exclusive deal to release  Netflix has added Blu-Ray to its subscription plans.
I think movie theaters will always have a place in American society, but as they lose their technological and economic edge, I wouldn't be surprised if many of those big screens fade to black, permanently.
 

Posted By Matt O'Hern at 11:35 AM
Permanent Link: Will Blu-Ray Eventually Knockout Movie Theaters? | Comments (4)

Wednesday, November 26, 2008

China Mobile Limited to Provide 3G by March 2009

 China Mobile Limited (NYSE:CHL) has bounced back from its drop on Wall Street,yesterday. CML, the world's largest mobile phone provider, gained 3 points (7%). Positive momentum followed CML's annoncement at  the 9th China Mobility International Summit in Beijing, where it claimed that users in the core 10 cities with TD-SCDMA networks will be able to use both 2G and 3G networks by March '09,without the need for a replacement SIM card.


 By that point, CML's customer base of 415 million is projected to be around 575 million. Long-term investors should consider this interesting apsect of CML's potential market: The approximate population of the United States is just over 305 million, and there are still 700 million remaining Chinese residents who are potential subscribers.

Posted By Matt O'Hern at 02:43 PM
Permanent Link: China Mobile Limited to Provide 3G by March 2009 | Comments (0)

Technorati Layoffs- A Warning Sign for Blogs & Tech?

the end of tech

I don't want to sound like Chicken Little, but the latest report of layoffs at Technorati, the cost-cutting moves at Cisco, and the sagging status of many stocks make me wonder if the sky is falling on the tech industry-including blogs and online news.

Just take a look at the Layoff Tracker at TechCrunch if you think I'm an alarmist. According to TechCrunch's stats,231 companies have laid of a total of 79,147 employees since August 2008.

Companies with plentiful pink slips include:
BT Group-cut 9,999
Dell-cut 8,900
Sun Microsystems-cut 5,000
Virgin Media-cut 2,200
Motorola- cut 3,000
Gannett-cut 3,000
Freescale-cut 2,400
Yahoo-cut 1,500
Nortel-cut 1,200
Circuit City-cut 800 (more expected)

fat lady singsIt's not over till the fat lady ( A second Great Depression) sings, but these figures make me wonder if we're on the brink of disaster. For the record, I'm an advocate of free markets, but I don't see any positive signs for our short-term economic future. Personally, I think downturns like this are inevitable and cyclical around every 100 years or so. Without an industry to fall back on, I can't help but wonder where these jobs will be filled.

Posted By Matt O'Hern at 09:57 AM
Permanent Link: Technorati Layoffs- A Warning Sign for Blogs & Tech? | Comments (2)

Tuesday, November 25, 2008

Report of Instability at Cisco Prompts Investors to Sell

cisco stock

Evidently, Cisco's (NASDAQ:CSCO) alliance with IBM (NYSE:IBM) and  demo at the UBS' Global Technology & Services Conference last week didn't generate the positive momentum neccesary to reverse its slumping stock. Cisco dropped 0.98, to 15.42 per share, (-5.8%).

Bloomberg.com reports that Cisco, the biggest producer of network gear is suffering from businesses that don't have the usual amount of cash to upgrade their network communication systems. As smaller business contract, rather than expand their networks,  Cisco is feeling the brunt of the impact and compensating for the difference by closing its doors for five consecutive days- Dec. 29-Jan. 2-to save $1 billion in costs.

The report came from Nikos Theodosopoulos , an analyst for  UBS, is giving Cisco a neutral rating. He said:

 

It is prudent for Cisco’s management team to plan for cushion in the event of weaker than expected revenues.The move will help Cisco cut payroll and facility expenses

 

Other notable losers today were Microsoft (NASAQ:MSFT), - 3.38% and China Mobile Limited(NYSE:CHL), -4.02%

Posted By Matt O'Hern at 04:47 PM
Permanent Link: Report of Instability at Cisco Prompts Investors to Sell | Comments (0)

Black Friday Could be a Boom or a Bust for Retailers

dawn of the dead retail

An unprecedented culmination of economic factors are clouding the forecast for Black Friday sales. Virtually every American has taken a hit from the slow economy, but within the past few weeks, a few positive shifts, such as cheaper gas and stronger consumer confidence, could change the entire picture.
A post on today's Wall Street Journal blog cited some interesting stats from the  International Council of Shopping Centers (ICSC). Retail Chain Store Sales Index declined 0.9% in the week to Nov. 22 from its level a week before, on a seasonally-adjusted, comparable store basis. and a 0.8% decline compared the same week in 200Michael P. Niemera,ICSC's chief economist suggested that slumping sales in early November could be an indication that more shoppers are holding their cash in anticipation of the upcoming bargains.

 

Ahead of Black Friday shopping, consumers are seemingly holding back waiting for those big discounts in the days following Thanksgiving, which means that a lot is riding on Black Friday shopping

 

Retailers are left wondering: Will Americans spend some of that newfound cash they used to spend gas, or will they continue to curtail their spending into 2009, or will they storm Best Buy and Macy's like an invading force? Obviously, the ultimate answer will come from all of us. With that in mind, we wonder if you plan to participate in shopping stampede at your local mall or retail outlet. Tell us on our poll.

Posted By Matt O'Hern at 03:31 PM
Permanent Link: Black Friday Could be a Boom or a Bust for Retailers | Comments (0)

New iPhone Apps Ensure You Won't Lose Your Marbles

peg and marbles game

If you family is as big as mine,you could use a short break from the chaos that ensues during the midst of Thanksgiving Day and other highlights of the holiday season.

I found a few new games from the App Store to help lower your stress and kill some time between turkey and dessert. and at $.99 cents, they're all a bargain .

Lose your Marbles, developed by FitzHatTrick Games, is a solitaire marble game based on the peg solitaire game from the 1600's. You'll probably recognize the format from the Peg Game at Cracker Barrell. One of the nicest features about this game is the fact that you can still listen to your iTunes while the game is running- a function that's not available on most of the other games I've played. Developer Mark Fitzpatrick told me part of the story behind the game's inspiration.

 

 I was in my living room playing a solitaire board game that I had put away when the kids were little, and I just brought it out of the closet again.  As I was playing, I thought that it would make a great game to play on the go when you have a few minutes to spare. The game makes you think.I especially like the fact that you can 'master' the game when you get to the point that only one marble is remaining and it is in the goal position on the board.  

 

Also, you can sharpen your skills through the Playback option, which replays your last game to help you learn from your mistakes. Hopefully I can master this and wow my friends and family with a perfect game the next time we're waiting for the meal at Cracker Barrel.
Cracker Barrel has their own online version, but it doesn't work for the iPhone.

Another game that caught my eye was Ocarina,from Smule.This revolutionary app for the iPhone is one you can share with the kids. Your microphone functions as the mouthpiece to an instrument. You blow into your microphone  to generate the sound and you can tap different buttons and tilt the phone to alter the tone and pitch . The best part is- anybody can learn the tones, even if you can't read music.  Over 500 songs are posted on ocarina.smule.com. You can also listen to other tunes created by users around the world. Before you know it, you'll be whistling dixie.

My personal favorite is Flick Fishing from Freeverse Inc. With a simple "flick" of the wrist, you cast your line and wait for the big bite.flick fishing You can use nine different types of tackle and six different environments are offered,including a freshwater pond and offshore deep sea for big game fish. Dozens of species are available. Ironically, my fishing luck from real life translated into the video game, and my best catch to date is a record-breaking Catfish- (The most dreaded of all species, just above the blowfish.)

If you need a few minutes for a mental vacation, give one of these three aforementioned games a try. I promise, it will be one of the best dollars you've ever spent (Besides McDonald's double-cheeseburger.)

Posted By Matt O'Hern at 11:11 AM
Permanent Link: New iPhone Apps Ensure You Won't Lose Your Marbles | Comments (0)

Universal Music Group / Meebo Launch New Music Video Interface

meebo-umg

 

Millions of music fans will now enjoy socially interactive music videos, thanks to the fusion of Meebo- an in-browser program which supports multiple IM clients (Google Talk,Yahoo Chat,AIM,MSN chat)-and Universal Music Group- the world's largest music publishing business in the world. 

In addition to featuring new, hit videos of Kanye West, Ludacris and The Killers on meebo.com, UMG will utilize Meebo Rooms to enable real-time social interaction for fans visiting UMG artists' official web properties. Past experiments by Meebo include online listening parties for Kanye West's hit album "Graduation" a live chat with LL Cool J.

Since Meebo's debut in 2007, over 300 musicians have used its rooms in similar capacities, either by giving fans direct access to the artist, or providing a forum where fans can interact via chat while visiting an artist's official website or social networking profile.

Larry Baach, the Senior Vice President, Global Digital Initiatives, Universal Music Group, believes this new format will prove to be a dramatic enhancement for the 40 million Meebo users.

 

UMG's Video Syndication Program allows for music fans to access videos
in fun and easy ways at affiliate websites. Meebo, our latest affiliate, has a unique inter-operative IM feature that has captured the interest of a young, extremely loyal, and very active user base. UMG is always working toward better consumer experiences of our artist's videos and we look forward to Meebo's continued and inventive focus on music video.

Posted By Matt O'Hern at 12:00 AM
Permanent Link: Universal Music Group / Meebo Launch New Music Video Interface | Comments (0)

Monday, November 24, 2008

Campbells Sells More Cans but Projects Slower Sales in '09

campbells soup nazi

 

Bad news for the American economy usually translates to good news for Campbells soup (NYSE: CPB), because when times are tough, one of the easiest ways to cut personal cost is to trim the fat out of your food bugdet.

You may recall my post about Campbells' solid performance from late July to October. Campbells claims its sales rose 3 percent to $2.25 billion for the quarter, but despite the spike, the popular soupmaker warns that a stronger dollar could slow its growth by as much as 5% in 2009.

Campbells shares fall 7.1%, in this morning's trading.Forbes credited additional factors such as as investors' concerns about international sales growth. Approximately 25.0% to 30.0% of the company's sales stem from international markets. While the stronger dollar may sound "mmm mmm good" to american consumers, it doesn't sound too appetizing to Campbells investors. Today was a pretty rough day for Camden, NJ- (home of Campbells headquarters). The latest list of america's most dangerous cities ranked Camden as No.2 in the U.S.

Posted By Matt O'Hern at 03:38 PM
Permanent Link: Campbells Sells More Cans but Projects Slower Sales in '09 | Comments (0)

Motrin Babycarrier Ad: A lesson in Online Reputation Management

motrin ad

One of Motrin's recent ads in its "We Feel Your Pain" campaign became an overnight controversy to moms with babycarriers. According to Compete Pro Search Analytics, motrin.com had a 10X increase in its daily reach on the web, jumping from .002% to .02% in one day, but it may have been much ado about nothing, because those numbers faded quickly.

Here's an excerpt of the text from the commercial:

 

Wearing your baby seems to be in fashion. In theory it's a great idea...These things put a ton of strain on your back, your neck, your shoulders... I'll put up with the pain, because it's a good kind of pain.... because it's good for my kid...plus it totally makes me look like an official mom. And so, if I look tired and crazy, people will understand why.
 

Feedback from angry moms on Youtube and Twitter, pressured Johnson-Johnson to remove the ad from its website.Kathy Widmer,Vice President of Marketing for J&J's company- McNeil Consumer Healthcare,sent an apology to Forbes, and claimed that the ad "intended to demonstrate genuine sympathy and appreciation for all that parents do for their babies."

On the company's corporate blog and Motrin's site, Widmer emphasized the fact that they were learning from their mistake.

 

We are listening to you, and we know that’s the best place to start as we move ahead. More to come on that.In the end, we have been reminded of age-old lessons that are tried and true:When you make a mistake - own up to it, and say you’re sorry.Learn from that mistake.That’s all..for now.

 

Personally, I think the moms vs. versus Motrin battle offers a valuable lesson for online reputation management-.While I admire Widmer's willingness to tackle the issue directly by posting a response on the corporate blog, I think J&J  may have actually drawn more negative attention to an issue that wasn't as damaging as it initially appeared. If they had monitored the negative press with more scrutiny, they probably would have seen the entire situation through a new scope. Of course, in the world of instant communication, it's tricky to see the big picture in the midst of chaos, but a closer look at the numbers reveals valuable insight that puts the negative feedback into perspective.

For example, look at the data Tom Martin from Adage, found. He believes J&J overreacted to a vocal minority.  From Nov. 14-16, he found about 300 to 400 blog posts on the subject (depending on keyword string) and 3,000 posts if you track through to Nov. 18. But the vast majority of it was after the issue surfaced and bloggers (including males) around the world simply commented on a hot topic. His poll of 150 heavy internet-using moms showed that 145 of them are unaware of the campaign or backlash. And of the five that were, not one was planning to boycott or complain to Motrin.

Peter Kafka, another contributor to Adage, made a great point about the online buzz. He said:

"Even if the outrage is widespread, it’s going to be hard make a connection between online chatter and real-world results. Otherwise Ron Paul would be the 44th President of the United States."

The bottom line: Analyze as much vital as data as quickly and efficiently as you can, before you throw in the towel on a costly marketing campaign.Otherwise, you may just dig yourself a deeper hole.

Posted By Matt O'Hern at 12:43 PM
Permanent Link: Motrin Babycarrier Ad: A lesson in Online Reputation Management | Comments (1)

The Great Soda Rivalry-Coke vs. Pepsi: Who's No. 1?

coke vs. pepsi

 

Whether it's in sports, politics or competing corporations, most rivalries are defined by a storied history that features two teams of similar strength

In politics, it's the Bush's vs. the Clinton's, in fast food, it's McDonalds vs. Burger King, the NFL has the Redskins vs. the Cowboys, college football has Auburn vs. Alabama, college basketball has Duke vs. UNC, the NBA has the Lakers vs. Celtics and in pro baseball, we all know about the hate between the Red Sox and the Yankees. 

All of those sports rivalries are measured by classic games,memorable moments, and star players, so how do we measure the rivalry between the two soft drink kings? We could compare annual revenue,market shares and profits, but that's too bland. Instead, I think we should compare and contrast  celebrity spokespersons and notable gaffes in the long history of each drink.

Pepsi's slogan for 2008 is pretty simple: "Pepsi is #1."
In the spirit of college football season, let's take a look at the lineups of each team.
For starters, I have to challenge Pepsi's #1 claim, because the 2008 spokesperson is Luke Rosin. I don't know who Luke Rosin is, and apparently Google doesn't either.

Coke and Pepsi have rolled out many celebrities during the past 20 years, and comedian Dave Chapelle promoted both drinks during the same year. (When he was asked about his personal preference, Chapelle said he preferred Pepsi, because they were the last one to pay him.)

Pepsi.
Cuba Gooding Jr.
Tina Turner
Ray Charles
Spice Girls
Britney Spears
Jennifer Lopez and Beyonce Knowles
Justin Timberlake and Luke Rosin
Van Halen


Coke
Selena
Jerry Mathers and Ken Osmond (Wally, Beaver and Eddie Haskell, respectively, on “Leave It to Beaver”)
David Liesure (seen as “Joe Izuzu” in car ads)
Ray Parker, Jr.
Telly Savalas
“Wierd Al” Yankovic
Courteney Cox Arquette
David Arquette
Penelope Cruz

In my opinion, it's a toss-up, because for every major celebrity, there's a c-list name on there who should be on the next episode of the surreal life.

Some rivalries are known for memorable gaffes. Just say "wide right" to any  FSU football fan and they'll immediately think of the five different occasions when the Seminoles  lost to the Miami Hurricanes due to a missed field goal. As for Coke and Pepsi, they're both guilty of embarrassing moments. In 1985, Coke unveiled "New" Coke, composed with a different sweetener, but the public's reaction was so negative, Coke executives announced the return of the original formula on less than three months after New Coke's introduction. Crystal Pepsi, a clear version of the drink, was introduced via a Van Halen Super Bowl ad.

The verdict- New Coke left a negative stigma that overshadowed the Crystal Pepsi blunder. An old urban legend claims that from 1891 to 1903, Coke's original formula was made with traces of Cocaine , so maybe some new rumors about crystal-meth ingredients for Crystal Pepsi could balance the scales.

Posted By Matt O'Hern at 08:40 AM
Permanent Link: The Great Soda Rivalry-Coke vs. Pepsi: Who's No. 1? | Comments (7)

« November 2008 Week 3 November 2008 Week 5 »

  • Week 1 (14 entries) November 1-8
  • Week 2 (15 entries) November 9-15
  • Week 3 (16 entries) November 16-22
  • Week 4 (11 entries) November 23-29
  • Week 5 (0 entries) November 30-30

The Great Soda Rivalry-Coke vs. Pepsi: Who's No. 1?
Coke because it dosent taste like it was mixed wit...
by DaBen
The Great Soda Rivalry-Coke vs. Pepsi: Who's No. 1?
i like pepsi because it has a good taste to it i c...
by no name
The Great Soda Rivalry-Coke vs. Pepsi: Who's No. 1?
well reneeee ur wrong coke is better then pepsi an...
by rachel
The Great Soda Rivalry-Coke vs. Pepsi: Who's No. 1?
homo fag...
by fag
The Great Soda Rivalry-Coke vs. Pepsi: Who's No. 1?
you know rachael, i dont agree i like pepsi way be...
by reneeeee

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