Alleblog

By: Bennett Andelman, Allebach Communications

We think so. And, I am not talking about weight loss or smaller cell phones. We’re talking agencies. Not Ogilvy, not Y&R…boutique agencies.

As the economy falls into what some call more uncertainty, and others call recession #2, marketers continue to look for new and innovative ways to showcase their brands without showcasing their spend. While most agencies worth their salt can develop a strategic marketing plan that offers brands, regardless of size, unique, creative, and “social” advertising programs that expose brands and drive lead flow (at a cost-effective media buy), the attached price for agency intelligence tends to rise like the rent on the floors they occupy in Manhattan.

Now, that may be worth the investment if you were gathering intelligence from top brass, or even a team of agency executives that specializes in your market…but chances are, depending on your size (under a $3 million investment), your marketing program is in the hands of YOUNG agency generalists that have limited experience launching and sustaining brand equity for an individual market category (e.g., food and beverage).

While the address is not as sexy, the boutique agency comes with centered market intelligence, solely focused on a category, learning everything they can about target, trade, research, success and failures within each discipline, and more before you even meet. And when you do, there is no bait and switch. Boutique agencies are generally structured whereby senior management (the guys that wear the fancy neck ties, and depending on where they are located, the nicest sandals),invest themselves in your account (whether project or program) from pitch to launch, analysis to networking. Oh, and the best part, the boutique agency’s address and lean focus allows them to live in a world with less overhead - transferring those savings towards client fees.

So is small the new big? Just ask Kraft, Frito Lay, L’Oréal Professionnel, Olympus and several other giant brands that have entrusted their identities to boutique agencies. Yes, small is the new big.

Are you a food brand and looking for focus? Stop shopping in the premium aisle. We have something organic that may taste a lot sweeter. Visit our site at http://www.allebach.com for a fresh perspective on your marketing program.

by Jamie Allebach

What makes for the “perfect storm” in the food business? How about when the industry is squeezed so tight it becomes more and more difficult to make a profit, and consumers are no longer loyal to your brand?

Transformation is happening in the food industry. Intense margin pressure, erosion of brand equity, declining demand, and manufacturing and transportation costs are rapidly changing the landscape for food companies.

Consumers are transforming and changing, as well—what they buy, where they shop and how they eat. Economic conditions, stagnant or declining income, the cost of living, and food costs have radically changed consumer meal rituals. These factors result in eating out less, purchasing more private label and store brands, doing more with less, and sacrificing some of the convenient and indulgent products that they love.

Four years ago, convenience was king. Now, price has become a more important consideration.

These industry factors and consumer transformation are causing the “perfect storm” for food brands. So, you can either succumb to current conditions or develop new strategies that will help you compete and thrive in this transforming economy.

Here are some solutions:

Brands need to remind consumers that they have a unique value proposition that makes them an essential part of their consumer experiences. Your brand needs to be an integral part of your consumer’s lifestyle—quality, taste, value, or uniqueness that they are not willing to compromise.

New product innovation that fits with the “new” consumer lifestyle is key. Products that complement in-home meal solutions and enhance the in-home dining experiences are being firmly embraced by consumers who are dining out less often.

Shift advertising dollars from mass media to shopper marketing initiatives. “Awareness” and pure “brand” advertising are out. Go direct to the shoppers. Go in-store, where 75% of purchase decisions are made. Invest dollars in account specific marketing.

Embrace social media. “I can’t afford to have my marketing team spending time on social networks.” “We don’t know anything about social media.” “How can we track the ROI.” Get over it! Social media is here to stay. It’s transforming how brands are built and products are marketed. Social media is a revolutionary way to reach consumers. If you can’t manage it internally, outsource it.

There are some who believe that these are not simply swings in industry and consumer behavior, and things will return to “normal.” Others believe that this is the “new normal.” I can’t predict the future. But I can tell you this; if companies and brand don’t change and adapt, they will not survive in this new market. Don’t ask yourself “what can I do to survive.” Find out what consumers want and meet the demand.

In the current economic “Perfect Storm”, you can go one of three ways with your brand; survive, die, or THRIVE.

Is broadcast television back on the rise? Maybe not indefinitely, but at least until the end of February when we all bid farewell to this year’s Winter Olympic Games.

According to an article published by MediaWeek on February 16, 2010, telecasts for this year’s Olympics on NBC have averaged 28.6 million viewers in prime time. To give you a rough idea of what this means, American Idol, one of the highest rated shows on broadcast television will pull approximately 28.8 million viewers during a season finale. Nielson has indicated that this year’s opening was the best since the Lillehammer Games in 1994. We all remember that year now don’t we? I’ll give you a hint…Nancy Kerrigan and Tonya Harding.

Advertisers for this year’s Olympic Games are not only seeing an increase in viewership, but are also seeing a spike in consumer on-line search queries. According to MediaWeek, Google has indicated that brands featured during the opening ceremonies have had significant search spikes. In today’s advertising world, this is the ideal situation for any brand. Advertisers want their traditional broadcast buy to spark interest, and in return, drive consumers to the website for education. For this reason, quality and creativity are equally as important for both your commercial and your website. You must keep the consumer engaged on all aspects.

As a personal “Media Buyer” opinion, I do not necessarily believe that traditional media is dead. However, I do believe that it needs its hand held every once in a while as our industry is evolving.

Let’s go USA!

Posted by Lindsay Reasner, Media Director

by Nancy Landis, Account Coordinator

You heard the sayings, “You had to be there” and “If you only knew…”. There are the times when you wish you could be “there” or have other people understand what you are experiencing. This was my heart was this past week as my daughter, along with a team of 27, was on a missions trip in Haiti.

Within minutes of the news hitting the airwaves, there were three cell phones ringing in the room. We got on the computer and checked out the latest information. Within the next hour, a whole church community and their connections all over the world were made aware of the events. From that moment on, every time someone at home got a message from Haiti, it was immediately spread to the families and community, and from there to all the connections each of us had on Facebook, through Twitter, texting, email and cell phone. At a time as life-changing as this, the Haiti team was not alone.

The team had the concerns and prayers of thousands, many of whom did not know them personally, all through the power of social media. They received messages of support. Messages of love. Messages of hope. All through Facebook or Twitter. Having the resources of a huge community and not just a circle of a few, made all the difference in their options for getting home. They were a team of 27 going to serve, but their efforts were multiplied by thousands. Through such an unsettling week, social media made all the difference.

This is my story. However, it can be heard again and again. In Advertising Age, an article titled “The Earthquake in Haiti, Social Media and Me: A Personal Reflection”, speaks about the positive effects social media had on the families of Haiti.

http://adage.com/digitalnext/post?article_id=141497

By Jamie Allebach

As if things aren’t tough enough in our current economy, the government is tightening the noose around the necks of food and beverage companies and restaurants with yet more scrutiny and REGULATION.

What does this mean to you? Here are a few highlights: If you are making any type of “claims” in your advertising, packaging, or menus be prepared to have the government rear it’s ugly head on your doorstep.

It’s no longer going to be acceptable to have an accurate Nutrition Facts Panel on the backside of food products. Now, you will be penalized if you state or even imply “better for you” claims on your product packaging or advertising. For instance, if you claim NO TRANSFAT, but don’t point out the fact (more than simply stating it on the Nutrition Facts Panel) that there is SATURATED FAT in your product, you will be in violation of new regulations.

The beverage industry is under assault, with sugary drinks being blamed for obesity among youth (although I can remember drinking more than my fair share of Coke and Dr. Pepper as a kid, without being “obese”). Government tactics include targeted taxes on sugar beverages and PSA’s and advertising warning of the “danger” of drinking soda. Seem a bit tyrannical?

We’ve all been hearing in the news how the restaurant industry is being mandated to post calorie and other nutritional information on menus and in facilities. Look, when I’m out to eat at a nice restaurant…I don’t want to know how many calories are in the meal I’m about to eat! And, neither do most people. That’s why it’s called indulgence!

The government is continuing to scrutinize and over-regulate the food and beverage industry, making it more and more difficult to run a profitable business. Don’t take it lying down! Join your industry trade groups, help fund organizations and lobbyists who are on your side and the side of freedom. Don’t forget, this is still America

Crate & Barrel 11/30/09
Subject Line: Today only. Save 15% and Free Online Shipping.

I have to admit that when I see a subject line as exciting as this one, my heart skips a beat. I’ll immediately pull up my perfectly formatted Excel Christmas list to figure out just who in my family needs a new Wusthof 10-piece knife set this year. Once the purchase has been made and all promo codes have successfully been entered, I say a quick “thank you Crate and Barrel for this extraordinary gift of savings you have delivered to my inbox.”

Retailers are becoming smarter each year as this on-line world is evolving. This 2009 Holiday Season I have received more retail e-mails than ever before. Just to name a few, Victoria’s Secret, Old Navy, The Gap, The Children’s Place, Gymboree, Target, Crate and Barrel, Bath and Body Works, Eddie Bauer, Nordstrom, and Proflowers. A simple call to action like “save now,” has the ability to capture the attention of every consumer with Internet access.

Like many others out there, the thought of having to battle a mall after a long work day completely overwhelms me. Especially around the time of the holidays when shopping is supposed to be a cheerful experience. Nothing sounds worse than walking a mile from your parking space in the freezing cold, trying to keep your toddler safe from crazy mall drivers, all while wearing your work heels. Whew! Luckily, retailers understand and support these thoughts that many of us share.

In order to make an e-newsletter stand out, everything from subject line to the time of day you blast has to be strategic. Most of the newsletters that I receive come between the hours of 1 a.m. and 5 a.m. This ensures retailers that their message is the first thing that pops up when a consumer begins their morning routine of checking e-mails. Personalization is also a great way to make each recipient feel special. While part of me knows that I am not the only one receiving The Children’s Place’s “Give Cozy! Glacier Fleece Separates Start at $8” e-newsletter, seeing just my name does make me feel like a valued customer.

E-newsletters are a great way to promote your business and products NOW! Sending messages when you have something important to say and giving readers the opportunity to react will make for a successful blast. Use the savings now, or you lose it.

Happy Holidays Ya’ll!

Posted by Lindsay Reasner - Media Director

By Kevin Schluth

When it comes to launching a new food product, today more than ever, getting people to try your new product is the first, and most important step, in a new product launch.

Even the most popular products in the world were complete mysteries at one point. While there are many different ways to launch a new product, all new product success starts with trial. There is no ‘word of mouth’ marketing if you can’t get people to try your product in the first place.

In a world of tweeting, blogging, smartphones and all other forms of instant messaging technology, there is something to be said about a good old-fashioned Free Standing Insert…or FSI. A tangible and visually appealing piece of paper that tells consumers: ‘give us a try and we’ll take a couple bucks off.’

While print media in general, and newspapers in particular, are struggling to maintain profitability, people still use coupons they receive in the paper or in the snail…I mean mail.

Compared to the first half of 2008, CPG marketers continue to allocate the largest share of coupon distribution to FSI’s than any other media. In the first half of 2009 86.2% of coupons were distributed via FSI’s, compared to 13.8% via ALL other media.*

Refrigerated foods increased the amount of coupons by 16.8% and frozen foods increased the amount of coupons by 41.5% in the first half of 2009.*

Also, coupon usage is no longer dominated by women. Current stats show that men are closing the gap by  accounting for 45.3% of coupons used with 54.7% for women.*

FSI’s are a cost-effective way to introduce your new product to the buying public. By including a high-value coupon, you are creating a low-risk situation for consumers to try your product, and positioning your brand as one that understands the economic hardships of Mr. & Mrs. Consumer.

FSI’s are a great tactic to drive trial and raise awareness, but they cannot sustain your new product launch alone. They should be used as part of an overall collection of tactics used to market your new product. Integrated marketing approaches using multiple forms of media are always the best plan to launch a new product, but FSI’s can assist in one of the most important parts of a launch…getting potential customers to try the product.

*Source: Valassis