“Maybe we created a persona that dismissed the customer.” ~ Bob Fornaro, CEO, Spirit Airlines, which advertises low fares but then adds fees for everything from seat assignments to water, quoted by The Wall Street Journal.
Huffington Post: SC Johnson is “the first major player in the household chemicals industry to list 100 percent of the ingredients used to create fragrance in one of its lines of scented products, the Glade Fresh Citrus Blossoms collection of wax melts and air fresheners. That includes the chemicals ordinarily glossed over with catch-all phrases like natural ingredients or essential oil.”
“Its goal, in part, is to create a new standard of transparency that would challenge upstart competitors, who sell themselves as greener alternatives, to disclose every single component in their fragrances.”
“It’s important to lay it all out there for the scrutiny of the world what goes into our products if consumers are going to trust us,” says Herbert Fisk Johnson III, the company’s chairman and chief executive. “In the absence of information, people tend to think the worst.”
Elon Musk cancelled an order for a new Tesla after the buyer criticized the Tesla CEO’s handling of “an event designed for customers.” The customer was venture capitalist Stewart Alsop, who complained that he “felt ignored” because he had spent two hours at a Musk-hosted event but never got to see the Tesla Model X he had on order and had been invited to see. “I suppose you think that I left too early at 9:00pm and should have stuck around longer if I really wanted to see the car,” Alsop wrote after being banned.
About Musk banning him as a customer: “I am mostly sorry not to be able to participate in the automobile revolution that Tesla started,” Alsop wrote. “You have created a car company when everybody decided decades ago that it was not possible. You have challenged the hateful and intimidating distribution system that forces people to be subjected to the hard sell even if they just want to buy a car they know they want. You have innovated on user experience, battery technology, autonomous operation, and virtually every other aspect of the automobile experience today. And you designed and produced a really beautiful and amazing car along the way!”
Noting that Tesla “does not have a marketing department,” Alsop suggested “it might be time for the company to take on such a function. At the very least, it might mean that your events start on time and they are designed for the people who are invited to attend.”
Bottles of Wild Turkey bourbon and rye whiskey now feature an older, prouder bird, reports The Wall Street Journal. The newly redesigned labels cap a $100 million expansion and modernization of the Wild Turkey distillery, following its acquisition by Gruppo Campari.
Campari marketing vice president Melanie Batchelor says the previous turkey looked “a little sad … not proud.” Consumer research also found that the turkey looked too young, which “conflicted with the idea that the bourbon is aged.” The new illustration is “more of a close-up image, with prominent eyes and fluffy feathers.”
“Wild Turkey also wanted to better highlight its master distillers, Jimmy Russell and his son, Eddie,” whose “signatures are now larger and on the fronts of the bottles, rather than the necks … Bottles also include the words ‘Crafted With Conviction’ … They wanted to avoid using ‘handcrafted,’ a phrase Ms. Batchelor feels has become so common in the spirits industry that it sounds generic.
“For many companies, competing both online and at the mall can mean trading fat profit margins for more customers—at least for now,” reports The Wall Street Journal. “Fashion retailer DSW Inc. has given shoppers the option of placing online orders for out-of-stock items without leaving its stores. And, the chain is both fulfilling online orders and accepting returns at its growing number of locations.”
“The company is betting those efforts will pay off by increasing customer loyalty even though they aren’t adding to profits in the near term, said Roger Rawlins, who oversaw DSW’s omnichannel strategy before recently becoming CEO. He said customers who buy DSW products through multiple channels spend two or three times as much as those who shop exclusively in its stores or online only.”
“The strategy ‘ultimately allows you to grab additional market share, and then as we learn through using all these capabilities, we hopefully should be tweaking to be able to generate incremental profitability,’ Mr. Rawlins said.”
“Known for its beverages, Pepsi is now moving into the restaurant business,” The New York Times reports. “The 5,000-square-foot space — on the same block as Milk Studios in Chelsea … will become Kola House, a restaurant-bar-event space that the company hopes will be both social hub and testing ground for new products.”
Kola House “will not be plastered with the Pepsi logo or filled with Pepsi products. Everything at Kola House will be centered on the kola nut, a bitter fruit that contains caffeine and gives cola beverages their name. Essentially, Pepsi is trying to market its product without marketing its product.”
Pepsi design chief Mauro Porcini: “Consumers will love your brand because your brand enables you to have the experience, but they don’t want to have the brand in their face. It needs to be very subtle, elegant, sophisticated.”
Pepsi marketing chief Seth Kaufman: “We are in a time where we have to transform how we connect with and engage consumers. If brands don’t do that today, they will be irrelevant tomorrow, whatever tomorrow is.”
The Wall Street Journal: “In some ways, the soda industry is returning to its early 20th century roots, when bottles were typically about 6 ounces and pop was a treat saved for a special occasion. It wasn’t until 1976 that 7-Eleven Inc. launched the 32-ounce Big Gulp at its convenience stores.”
“Now, once again, American soda drinkers ‘want to consume less but they still enjoy their favorite brands,’ said Marty Ellen, Dr Pepper’s chief financial officer. Dr Pepper is rolling out 7.5-ounce cans nationally this year, replacing 8-ounce cans it launched as an alternative to 12-ounce cans. Each 7.5-ounce can holds about 95 calories, compared with 150 calories for a 12-ounce can.”
This works out well for soda companies, which have stemmed losses by charging more for less: “At a Publix supermarket in Atlanta recently, a 12-pack of 12-ounce Coke cans was priced at $5.29, or 3.67 cents per ounce. An 8-pack of 7.5-ounce cans was priced at $3.99, or 6.65 cents per ounce.”
Mr. Ellen says the higher cost per-ounce aligns with consumer behavior because soda is still a “cheap treat.”
Those who are slower to adopt new products or services tend to be more loyal to their choices, reports The Wall Street Journal.
Typically, a late adopter is “a person who buys a product or service after half of a population has done so. Late adopters tend to share certain characteristics: They are skeptical of marketing and tend to point out differences between advertised claims and the actual product. They often value a product’s core attributes, ignoring the bells and whistles intended to upsell the latest model. They may not try something new until weeks, months or even years after the crowd has moved on.”
“It takes a long time to change late adopters, but once they’ve done all that research, and once they are convinced about a product, they are going to stay for a long time,” says Sara Jahanmir of the Nova School of Business and Economics in Lisbon.
Late adopters are also believed to have “important things to tell companies about the role new products should play. Because they tend to be highly critical, late adopters can be useful to companies perfecting their wares … By listening to late adopters of the old version of a product, developers can create a new version that is quicker to be adopted.”