Social Media & The Old College Try

The New York Times: “As students return to campuses, they’re constantly checking their Instagram, Snapchat and other social media accounts — so companies are turning to many of them to promote products right alongside photos of family, friends and the new puppy. For busy students, it is an easy, low-pressure way to make extra money or get free products. For marketers, it is a simple way to reach young people — a supplement to their other social media efforts, including hiring full-time promoters.”

“Though there are no comprehensive data for how many college students promote brands online, interviews with university officials, marketing consultants, brand representatives and students make it clear that the social media platform is big business on campus. Many of the deals are for Instagram posts, but some brands also have students posting on other services, like Twitter and Facebook.”

“On the Victoria’s Secret website, you can search for the names of its representatives at 100 campuses, in schools from Columbia University to Grand Valley State University. At Virginia Tech, as many as 1,000 of the 30,000 undergrads are being paid to promote products as varied as mascara and storage bins … Under Federal Trade Commission rules, people using their personal social media accounts to advertise products are supposed to disclose on their accounts the brands they represent … But these guidelines are often ignored. In April 2017, the trade commission sent more than 90 letters to influencers and brands reminding them of the guidelines.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Consumers are ‘High’ on Seltzer

The Wall Street Journal: “Sparkling water sales are soaring in the U.S. as consumers … ditch soda for healthier, more natural beverages. And with that explosion has come a wave of variants: caffeinated and alcoholic versions, sparkling coconut water and coffee, even seltzer laced with cannabis. Americans will buy an estimated 821 million gallons of sparkling water this year … That is nearly three times as much as 2008.”

“Jess Faulstich, 36, of Los Angeles is so hooked on flavored sparkling water that she takes one to bed in case she’s thirsty during the night. She loves coffee but drinks caffeinated sparkling water to keep her teeth white. A technology trainer by day and a stand-up comedian by night, she gained several pounds in the past year from drinking alcohol at clubs. Now she drinks hard seltzer, when she can find it, because it’s light on alcohol and on calories. ‘I’m surprised my bloodstream is not carbonated,’ she said.”

“Heineken NV, for its part, has a different type of buzz on tap. The company’s Lagunitas brand in July launched an IPA-inspired sparkling water line infused with cannabinoids. Its name: Hi-Fi Hops.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

FAO Flagship To Return to NYC

The Wall Street Journal: “A dominant presence in Midtown Manhattan for decades before its closure in 2015, FAO Schwarz is coming to life again with a new, 20,000-square-foot Rockefeller Center location, set to open in November. ThreeSixty Group Inc., a California-based firm, acquired the retail brand from Toys ‘R’ Us in October 2016 for an undisclosed price … But in an era when bricks-and-mortar retailers struggle to stay competitive as consumers increasingly go online for their shopping needs, FAO is making its Rockefeller Center location as much about the experience as the buying.”

“That means the store won’t just be staffed with traditional sales clerks, but also product demonstrators, magicians and men and women playing various costumed roles, including toy soldiers … the company is going so far as to hold auditions, rather than just the standard interviews, for retail staff.”

“Ultimately, ThreeSixty Brands may not be looking to make a profit on the Rockefeller Center store so much as use it to promote the FAO name, said Jed Wexler, a retail expert who runs 818 Agency, a New York firm. ‘It feels like an advertising play,’ he said. In any case, the New York store, which will be considered the FAO flagship, is part of a larger push. ThreeSixty Brands is also launching a smaller store at LaGuardia Airport this fall and one in China in 2019.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Applestone ‘Butchers’ The Vending Machine

Quartz: “It’s midnight and you need a steak. What do you do? If you live near Stone Ridge or Accord, New York, you just head to the nearest Applestone Meat Co. 24-hour butcher shop. You won’t find a bleary-eyed staff of overnight shifters working though. A row of vending machines, organized by type of meat—beef, pork, lamb, sausages, and ground meat—stand ready, stocked with steaks, chops, and burgers-to-be.”

“Applestone … envisioned the system as way to reach more customers, and make the shopping process more seamless. It’s more for busy families, less about the ability to get grass-fed burgers in the middle of the night—though that would be an excellent use of them, as well … That said, anyone who wants a smile with their ribeye can purchase meat from a customer service window at the Stone Ridge store from 11am to 6pm daily. Customer service, it turns out, isn’t totally dead.”

“Vending machines are a national obsession in Japan, where they sell pretty much everything imaginable, and ramen dispensers popped up in San Francisco earlier this year. And the French have oyster vending machines.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Online Feels ‘Off’ to Most Shoppers

Supermarket News: “Going by the trends in retail grocery, online ordering of groceries and meal kits likely stand near the top. But by the numbers, the vast majority of Americans are doing neither, a new Gallup poll finds. Of 1,033 U.S. adults surveyed, 84% said they never order groceries online and 89% never order meal kits, according to Gallup, which released the study results this week.”

“The small percentage of consumers that do order groceries or meal kits online don’t do it very often. Just 11% reported they order groceries online for pickup or delivery twice a month or less, and 4% said they do so once a week or more. Meanwhile, 9% of respondents order meal kits for home delivery two times monthly or less, and only 1% do so once weekly or more.”

Lydia Saad of Gallup comments: “Services like PeaPod, Instacart, Shipt and Amazon Fresh that cut out the trip to the grocery store appeal mainly to those short on time: parents with children younger than age 18 and employed adults. Higher-income Americans are also bigger adopters of grocery delivery, either because higher income means they can afford more groceries or they have greater access to mobile technology like smartphones and tablets that make ordering online easier.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Craft Beer Lightens Up

The Wall Street Journal: “While mega breweries flaunt puny carb counts, microbrew fans tend to assume that ‘lite’ means flavorless. Lately, however, craft brewing has been quietly losing weight, squeezing into macro-brew territory with beers as low in alcohol and calories as mass-made lagers—only deceptively, defiantly flavorful. Small-scale breweries have, historically, produced big, bold brews … But a strange thing happened in 2007 when Dogfish Head Brewery released Festina Peche, a slightly sour, peach-infused wheat that barely tipped the scales at 4.5% ABV and 8 IBUs (International Bittering Units): It sold.”

“While Dogfish still sells truckloads of crushers such as 120 Minute IPA, the brewery’s SeaQuench Ale, a 4.9% gose released in 2016, has been the fastest-growing beer in the company’s history … Lagunitas and other breweries like them are retooling accordingly. Yes, Lagunitas, makers of boozy bruisers like aptly named Maximus (8.1% ABV) and Hop Stoopid (8% ABV) is releasing light beer … Tuning down their brews shifted Dogfish Head‘s source of inspiration, too, from American hop fields to the European grain belt.”

For “Dogfish Head’s latest light beer, Grisette About It! (3.5% ABV and under 100 calories) … the brewers chose grisette, an old-timey French wheat-beer style. To emphasize its grainy character without carb-loading, they used a low-sugar, 17th-century oat variety from Columbia, S.C., granary Anson Mills, along with malted wheat and a little honey.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

How Text & Chat Gets Satisfaction

The Washington Post: “The biggest shift in customer service since the 1-800 number is underway. Some 20 million businesses now use Facebook Messenger each month to talk with customers. Apple is leading companies as diverse as Lowe’s, Marriott and Wells Fargo into taking service queries, scheduling deliveries and even paying for purchases over iMessage. And Facebook’s WhatsApp, already used by 3 million businesses, including many outside the United States, is building a business around charging companies to better serve us over chats.”

“Business messaging isn’t the same as chatbots, which are programs that try — and often fail — to provide automatic answers to questions. This is about talking to real people, though some companies blend both automation and humans. Messaging a business can bring new kinds of frustrations. Not every company is prepared for 21st-century customer service; some put the newbie employees on chat duty — others rely too much on robots.”

“LivePerson, a company that makes support software used by 18,000 companies, says when given the option, 70 percent of people chose a “message us” button over a “call us” button on a company website or app. And it says customer satisfaction rates are 25 percent higher for chatting and messaging than for calling.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Study: Inclusion Begets Innovation

The Wall Street Journal: “Companies that welcome ideas from all employees have better growth prospects than those with a less-inclusive approach to innovation, a new study finds … Employees were asked how often they were included in larger, strategic decisions, whether they felt management was interested in their ideas and whether they were encouraged to try new approaches to their work. It found that companies where more people said they felt their ideas were sought out and valued tended to yield more revenue growth and employee productivity.”

“The analysis—which split companies into three tiers based on how many employees said they got opportunities to innovate—found workers at firms in the most inclusive group were 14% more likely to say they want to stay at their company long term than those in the least inclusive group. Those employees were also 32% more likely to describe themselves as willing to put extra effort into work, compared with the least-inclusive group.”

“At Quicken Loans Inc. … employees are given four hours each week of focused “bullet time.” During those hours, they are able to step away from day-to-day responsibilities and explore new skills and parts of the company’s business not directly related to their own work, said Quicken Loans CEO Jay Farner … Wegmans Food Markets Inc., a family-owned regional grocery chain with 48,000 employees, says it has ‘innovation teams’ made up of frontline workers in Wegmans grocery stores and employees in the company’s main office. These teams come up with new programs and improvements that are tested at select stores with the prospect of being applied companywide.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Branching Out: Former Banks = Cool Stores

The New York Times: “Former bank branches have been reincarnated as pizza parlors, fast-food outlets, health care sites, massage chains, credit unions, educational institutions, churches and mobile phone stores. Some serve as locations for Starbucks, CityMD Urgent Care, CVS and other chains.”

“Attributes that were attractive to banks in the first place are now selling points for the converted properties. Many occupy corner locations on busy streets with heavy retail traffic. The buildings are often free-standing and well maintained, with sturdy brick construction. Depending on municipal zoning restrictions, canopied drive-throughs can be converted to other uses, such as fast-food pickup, side entrances or patios.”

“Part of an Apple Bank in Manhattan was converted to condos in 2006, and CVS moved into at least two banks in New York with high ceilings and marble columns … In the small tourist community of Lake Tomahawk, Wis., Tina Rydzik saw a marketing opportunity after she found it impossible to remove the vault from a former bank she took over and converted into a pizza house. She christened the enterprise Pizza Vault, and named nearly all the entrees after famous bank robbers.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Swedish Samosas: Ikea in India

The New York Times: “Ikea’s opening in India — and its subsequent success or failure — is likely to become a case study for other international retailers. India’s retail landscape is complex. With a growing middle class, its 1.3 billion people buy about $30 billion a year of furniture, lighting and household items like bed linens and cookware … But despite the efforts of a few local chains, 95 percent of those goods are sold through small shops that offer custom-built products, usually specializing in one category such as wooden furniture or lamps, and offer free assembly and delivery.”

“Ikea stores are the polar opposite. Part showroom and part warehouse, they are sprawling outlets that are far from city centers with mazes of giant bins and floor-to-ceiling shelves. Ikea’s brand signals affordable, mass-produced and functional, and its design aesthetic is lightweight and lean, in contrast to the heavier, bulkier furniture traditionally favored in Indian households … All of this has forced Ikea to rethink its product lineup and store operations for India. Although the Hyderabad store has the classic Ikea layout, what’s on display is somewhat different.”

“Given India’s lower income levels, the store features hundreds of products — from dolls to spice jars — priced at less than 100 rupees, or $1.45 … Indian families spend a lot of time together, with relatives frequently popping in, so the company added more folding chairs and stools that could serve as flexible seating … Some items popular in the United States, such as untreated pine furniture, do not endure in south India’s hot and humid climate … Even the cafeteria caters to Indian tastes, with biryani, samosas and vegetarian Swedish meatballs on the menu and 1,000 available seats, more than any other Ikea in the world, to accommodate the more leisurely dining style of Indian families.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail