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May 28, 2009

Marketing in Aisle 5: The Blog

You've read the "Marketing in Aisle 5" story in Marketing News. You've listened to the "Marketing in Aisle 5" podcast on Marketing Power. And now presenting, the "Marketing in Aisle 5" blog.

Of course if you haven't seen those other materials, no worries. This is as good as any place to start.

At Marketing News, we're starting to approach our major stories through a variety of mediums, including podcasts and blogs. So is the case with "Marketing in Aisle 5," a feature story that tackles a red hot issue right now - consumer packaged goods marketing. Grocery retailers and food companies, for the most part, are reporting strong earnings, unlike many businesses now. The latter benefits from more consumers who say they are eating out less - approximately 69%, according to a study released in May by the Food Marketing Institute. Retailers also benefit because of this, in addition to getting a growing sales boost from their prettied-up private labels; 24% of all food and beverages in homes last year were store brands, according to an NPD Group Inc. report issued in April, because they're primarily less expensive than branded products.

The war for consumers wages on, with buzz-building efforts developing since the "Marketing in Aisle 5" deadline. Food Lion for instance just launched its "Private Brand Super Sale," lasting through June 23rd, where you can save $1 when you buy four products, and up to $10 if you buy 40 products. And Kraft Foods seems to actually be challenging private labels on price, one of the few companies to do so in this recession, with its online exclusive "Budget Wi$e: Delicious Summer Savings" deal. Registered users at kraftfoods.com are eligible to print $1 off coupons for loads of products, including Philadelphia cream cheese, Planters nuts, Kraft Miracle Whip and DiGiorno pizza, evening the battle field with private labels in terms of price.

There is much more insight to be found in the "Marketing in Aisle 5" feature, appearing in the May 30th issue of Marketing News. A trio of great sources from the piece also participated in a special podcast; Jennifer MacLeod and Doug Palmer, marketing leaders at Great Atlantic and Pacific Tea Company, talked about their new private label brands, while Campbell spokesman John Faulkner delved into that company's value messaging. You can listen to the podcast yourself by clicking here.

Happy reading, listening and shopping!

May 13, 2009

Two Interesting Projects from Us & Our Sponsor

We’ve begun a new project here at Marketing News and the AMA that we hope will bring you more of the information and insights you need to become better marketers.

We’ve started a series of AMA podcasts sponsored by Marketing News and featuring myself and other MN staffers interviewing a variety of marketing movers and shakers. You can hear my recent interview with author Hugh MacLeod, for example. Coming soon will be a podcast focusing on the supermarket aisle during which MN staffer Piet Levy will be interviewing both brand and retailer marketers to discuss what they’re doing to attract consumers in today’s cost-conscious environment.

We also plan a podcast that expands on the information we’ll be bringing you in our annual ranking of the Top 50 marketing research firms in the United States. And there’ll be more podcasts that expand on stories you read in Marketing News. So I’d encourage you to sign up for the RSS feed of the podcasts so you can always hear the latest.

On another front designed to help, AMA is putting on an education session with GfK Custom Research North America, called See the Future, Be the Future: Finding and Filling Tomorrow’s Opportunity Space on May 20th and there are still open spots. It’s an educational seminar designed to provide marketers with an in-depth perspective on unlocking the secrets of predicting future innovation space. Could be just the thing in this economy.

Yes those were two small commercials for things going on here, but hopefully ones that have some value for you, let me know.

May 6, 2009

Hispanic Consumers Like The Sounds of Brand Band

It's a standard marketing tactic to hire an accomplished musician to sing a brand's praises. But a brand creating a band is a whole different tune.

That's what State Farm essentially did for a marketing campaign aimed at primarily first-generation Mexican immigrants. The campaign is featured in the May 15th Marketing News feature, "La Musica To Their Ears."

State Farm has traditionally lagged behind Allstate in Hispanic advertising spend, until last year, when State Farm spent $84 million on TV, print and radio, a $45 million increase from 2007, according to Nielsen. One small ingredient of that campaign was a TV spot featuring a fabricated musical group, Los Felinos de la Noche, struggling with high gas prices on the road to stardom.

State Farm was itching for a campaign that reached consumers beyond their TV screens. And so its Hispanic agency, Alma DDB, partnered with its sister agency, Fire Advertainment, transformed the made-for-TV band into an actual band, complete with its own songs, TV and radio appearances and tour.

So how would a group of little known musicians help with State Farm's identity? And why would an audience bother listening to a marketing-made musical group?

The answer to both questions ties back to the audience State Farm wanted to reach. By launching this band, State Farm was crafting its own rags to riches story for the struggling musicians that made up the group; a couple of the guys worked in construction and landscaping before they took to the airwaves. As Fire's creative director Christian Reslen says, "Latinos can reflect themselves in the lives of these guys."

As for audience reception, the teams made sure the songs weren't straight-up commercial jingles - State Farm isn't mentioned in the lyrics - and that they were set to an up-tempo Mexican cumbia beat with a broad appeal. Even though some Hispanic consumers know State Farm's marketing agenda with the band, it is a demographic that doesn't seem to mind, says Felipe Korzenny, director of the Center for Hispanic Marketing Communications at Florida State University, and one of the orchestrators for the AMA's Hispanic Marketing Hot Topic Series in Los Angeles and Chicago this month and next.

"In this case, [State Farm is] actually helping Hispanics succeed," Korzenny says. "For Hispanics living in the United States, the main goal is to make a good life and be successful. When they see examples of that, they tend to really like it."

Find out more about this campaign in the May 15th edition of Marketing News. And to hear Los Felinos' sonic stylings, watch their first music video, posted below.

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