November 2012

The holidays are swinging into full gear, what better time to… reminisce?  Every year, it seems there is a new “hot” item on the shelves that our children, family, and friends have on the top of their wish lists to Santa.  I will never forget the Ty® Beanie Babies phenomenon, the holiday season when people of all ages were frantically hunting for Tickle Me Elmos, or those Tamagotchi keychain games that flew off the shelves faster than you could say “Tamagotchi.”

All of these hot-ticket items were wildfire brands – they launched onto market and became overnight hits with consumers.

And though product makers are thrilled with such rapid-fire consumer hits, there are a number of brand protection concerns that they must work to address while the sales ratchet up in order to protect the brand’s increasing value.

The Way I See It

  • I see new and innovative wildfire products and brands continuing to be launched onto the market through a variety of marketing channels, but especially through viral videos and social media marketing.  As in the past, many of these wildfire brands will become a symbol of a generation and instant pop culture hits.
  • When the products begin flying off the shelves, I see brands working to protect their product and intellectually property from counterfeiters, and other potential threats to the brand – those trying to take advantage of the hit item by trying to produce something similar at a lower cost in order to benefit from the brand’s increasing value, or trying to pass off their goods by using similar trade dress or marks.
  • I see marketers working to launch creative ads and campaigns to continue the sales momentum of the initial brand proliferation period, ensuring the product’s long-term sales growth in addition to its short-term sales spike.

The perfect recent example of a wildfire brand is the Snuggie®, which sold over four million units in three months.  Its launch to market was an interesting one, with a single TV ad, launching the Snuggie® to become an instant pop culture phenomenon.

The Way the Industry Sees It

I sat down with Scott Boilen, President of Allstar Marketing Group, the company behind many high-profile consumer brands, to discuss brand proliferation and protection.

You’ve seen wildfire success with a few leading consumer brands.  In your experience, what is the most critical precaution to take before launching a product to market in order to ensure brand protection?

As a company, the single most important thing we can do to protect our brand is to make sure all trademarks are applied for and all materials are copyrighted prior to debuting a product.  We also seek patent protection when feasible.  When launching brands with an aggressive “As seen on TV” campaign we build mass awareness in a very short period of time. If all pre-launch legal items are not buttoned up, we are leaving ourselves open to companies trying to piggyback off our success with similar marks, logos or other materials in an attempt to create brand confusion.  Right after launch, we also begin to monitor the market and aggressively do what we can to stop the marketing of any infringing product as well as halting counterfeits from coming to the United States from overseas.

The Snuggie® was launched in October 2008, right at the height of the economic downturn, yet sold over four million units in three months.  With a brand as popular as Snuggie®, are there particular obstacles and challenges that arise during the initial time period of the few months during which the brand is skyrocketing?

The launch of the Snuggie® blanket created tremendous consumer awareness.  It was critical that we ensured we were using our marks in a way that was consistent and protectable. We had many companies attempting to bring out similar products with marks or logos in an attempt to confuse the consumer.  We were successful in shutting down every violator.  This was made possible as our marks were registered and used in a consistent way as to make them defensible.  Ensuring that our own employees, agents and representatives used the marks correctly was integral to the education we also provided to folks in the media when the brand was discussed.  While there is a fine line between getting as much exposure for the brand as possible and making sure the marks are not diluted when not used properly, we did a great job of maintaining a strong brand along with a great product in the United States and abroad.

Continue Reading Brand Protection Concerns for Wildfire Consumer Sensations

Cash and credit and debit cards are certainly dominant in the payment space today.  Some think change will never happen, but they are dead wrong.  Mobile payment is in its infancy, but the benefits are clear:  simplicity, convenience, relevance, and targeted offers and rewards.  No more wallets with multiple cards, just one device.  And this is only the beginning. 

Consumers and retailers are eager to participate.  Starbucks – a market leader – already offers a popular payment app.  It has now moved further into mobile payments by partnering with Square to allow mobile payment at all of its 7,000 U.S. stores.  Customers may soon even be able to pay with their phones while they’re still in their pockets.  With Square, a cashier can see your photo as you approach the register, and you complete the purchase by stating your name. Continue Reading Are Mobile Payment Apps the Next Big Thing?

We are in a “perfect storm” fueled by big data, technological change, media transformation (especially mobile), and global competition.  The conventional model of linear digestion of media followed by the linear transaction process is disappearing.  With digital media, consumers have multiple sites and screens open at the same time.  This year the number of Internet users in the U.S. will grow to 239 million, nearly 76% of the total population.  We’re not moving to a digital world, we’re there.

Rapid technological change in mobile devices and wireless service (4G and 4G LTE) fundamentally change how advertisers and consumers interact.  Material information is increasingly delivered to consumers not only at the most relevant touch points, but also – through geo-location – at the most relevant places and times.  Think of it as “just-in-time” marketing.

This means real opportunities, with real questions for advertisers, regulators, and lawmakers – just as the hitchhikers are arguing about in this clip.  Marketers are charged with balancing evolving technological capabilities with consumer protection, including privacy and data regulation, and with adhering to regulatory standards and disclosures.     Continue Reading Settling the Argument: Regulation and Disclosure in the Digital World

Increased mobility and access to information with digital media and mobile gives consumers real power to shape the marketplace.  Yet consumers can be fickle and easily distracted, to say the least.

With so many options and constant change, the question for advertisers is:  how do we determine what reasonable consumer behavior and perceptions are when the norm is rapid change?  Let’s look at some examples of what it means to be “reasonable.”

In a recent class action lawsuit, consumers claimed they were deceived into believing Fruit Roll-Ups and Fruit by the Foot snacks are made with real fruit.  Using the word “fruit” in the name, along with images of fruit on the packaging, could be enough for a “reasonable” consumer to believe that there was real fruit.  The court said that the ingredients list could not correct the message that “reasonable” consumers took away from the rest of the packaging.Continue Reading Choices, Choices: Do Consumers Really Know What They Want?

It’s hard to believe it’s already mid-November.  The Presidential election is now behind us and the devastation of Hurricane Sandy is still all too real for many on the East Coast.  This week, many in the marketing and promotion industry are heading to the Windy City for the 34th Annual Promotion Marketing Association Marketing Law Conference.  This year’s conference is titled, “Converging Platforms & Diverging Laws” and I’m honored to be giving a keynote address again this year.  Throughout the PMA Conference this week, I’ll be sharing my thoughts and perspectives with you.

The Promotion Marketing Association is one of the largest and most influential industry trade associations and has been since its inception in 1911.  PMA represents businesses that motivate behavior, activate response and build brands.  These disciplines include promotion, shopper/retailer, digital, sponsorship and experiential marketing.

The Way I See It

  • I see the PMA’s Annual Law Conference helping marketers and agencies understand the implications of new developments, regulatory updates, legislation, and the effect of new technologies shaping the marketing world.
  • I see candid presentations, panels, and conversations on the critical issues facing the industry:  digital and mobile, data and privacy data security, shopper marketing, the role of the regulators – Federal, state and local, self-regulation, consumer direct action, protection of children, and so much more.
  • I see the PMA changing as the industry changes, and I see the influence of PMA increasing as the industry grows and gains even greater influence.

The Way the Industry Sees It

I sat down with Bonnie Carlson, the President of PMA, to give you an inside look at what is planned for this year’s Marketing Law Conference, current issues driving PMA’s work in the industry, and how PMA – and the industry – has changed since its inception just over 100 years ago.

I can’t believe it’s time again for the PMA Annual Marketing Law Conference. Can you give us some insight as to what the title of this year’s conference, “Converging Platforms & Diverging Laws,” means and how the panels and sessions aim to address it?

The title is a reflection of the continuing evolution of traditional media/tactics converging with new technology and the challenges this brings legally, often pioneering new ground and testing principles such as self-regulation, marketing to children and First Amendment rights.  Consumers are influenced by a myriad of media and are connected globally, especially because of the internet and social media, which also challenges the overlap or divergence of international and federal/state laws.

This year’s program really touches upon the key topics and issues brands and marketers face – the rise of social media, the importance of the mobile platform, the new regulations and regulators (like the CFPB), the focus on consumer activation, and the need to succeed in a global economy.  Given the developments during the past few months alone, what do you think will be the main themes driving your industry next year?

The consumer will continue to be in charge, expecting more transparency, authenticity and value from brands.  Marketers and retailers will continue to be pressured to do more with less, to advance new technology, stay competitive with a speed-to-market mentality, and have accountability for results.  On the legal side, the themes will be a focus on privacy rules (dot com guidelines, mobile app, and International data privacy rules), renewed attention to the COPPA rules, health and food claims, and cyber cafes.

Continue Reading Gearing Up for the 34th Annual PMA Marketing Law Conference

Ahh, America’s favorite pastime. Hot dogs, peanuts, jerseys, and Big League Chew. We have all heard the call at the stadium – “Beer here.”  Major League Baseball commands attention, defining summer for sports fans and inflaming longstanding hometown rivalries.  I live in New York City, though I was raised outside Boston.  Talk about a rivalry – the Yankees and Red Sox – though not a good year for the BoSox this year.  Every home run, broken bat and strikeout adds up to the biggest baseball event of the year: the World Series.

The World Series is one of the key tent pole events of the advertising year.  It is important to big brands and advertisers.  Sports is a great way to reach a key male demographic; so for car companies, beer, snack food, soft drink, and other brands, the World Series is one of the championship venues in which they need to play. This is true not only for national advertisers, but local advertisers as well.  So you might see a major automotive company in the national network television spots and local dealer association advertising in the local spots for a market.  If you are thirsty, hungry, need a deodorant, a new shaver, or a new car – watch the World Series.

The Way I See It

  • I see the best of athletic competition bringing new thrills and touching childhood memories.  I see television advertising at its best touching a key advertising demographic.
  • I see the smart use of online, mobile, and social media by MLB to keep consumers in touch who are not in front of the television, giving advertisers multiple platforms to reach their audience.
  • I see athletes competing and I look for the next breakout star shaving, eating cereal or promoting the features of a new car.

The Way the Industry Sees It

To learn more about baseball’s biggest matchup and what it means to the advertising industry, I sat down with Jacqueline Parkes, the first-ever Chief Marketing Officer of Major League Baseball.  She answered some of my biggest questions about the World Series for advertisers.

[Since the World Series is a competition that lasts anywhere from 4 to 7 games, does MLB view this as a competitive advantage in terms of marketing value over some other sports championship competition that may be only be one game?

Every event is different and presents its own unique opportunities.  The World Series has stood the test of time to consistently stand as one of the jewel events of the television calendar.  From an advertising standpoint, our partners at FOX routinely sell out of all inventory.  We all focus primarily on the first four games since we know they will definitely take place – as MLB did this year by dedicating each of the first four games to an important community initiative (Stand Up To Cancer, Welcome Back Veterans, youth charities and Habitat for Humanity) – and then if and when games 5, 6 and 7 take place we all move quickly to activate around them.  We feel it is very important to leverage our largest promotional platform, the World Series, to build awareness for charities that help drive our communities.

How important are historic or geographic rivalries to baseball and the World Series?  Do they factor into marketing the MLB?

Certain matchups between teams with a long history can sometimes help bring in more viewers at the start of a World Series, but it’s been proven time and time again that in the end, the drama on the field will bring in the viewers regardless of who’s playing.  In 2011, the Cardinals and Rangers came into the World Series having never faced each other, and yet the seventh game of that epic World Series was the most-watched baseball game since the Red Sox ended their 86-year drought in 2004.

Continue Reading Take Me Out to the Ball Game, Advertisers