Integrated New Marketing

Case Study: Winners & Losers at New Marketing

The best marketers in the world are still unclear about the rules and dynamics of all this “new” marketing. So it may be most instructive to look at what is working and what is not to determine the key winners and losers. In that regard, a couple of examples:

Winners

Axe Spray Deodorant
It would not be at all surprising if many readers have either never heard of this brand, or have done so only in passing. However, in the four years since Unilever launched this product, it has taken the number one brand position in the $2.4 billion U.S. deodorant market and has done so without the use of prime broadcast TV or any sports affiliation.

Rather, Axe Spray Deodorant has exploited (1) a provocative, unique positioning: “unleash your inner animal magnetism”; (2) a very targeted approach to content integration with placement in shows on such cable channels as MTV and Spike TV; (3) brand focused web sites such as “Gamekillers” and “Order of the Serpentine” that have drawn as many as 150 million unique visitors per month; and (4) a favorite “Myspace” spokesperson named “Forbidden” to drive this very young male oriented brand to market leadership.

Hershey "Wrapper Cash" Promotion
While it is just getting underway in late May 2006, early indications and MCAworks judgment indicates that the new “Wrapper Cash” promotion being implemented by Hershey—across its full line of single portion products—is bound to be a notable success.

Anticipated success recognizes that the promotion takes advantage of the newest and most exciting aspects of latest communications technologies: Text Messaging and Web Auctions on EBay—to add “Buzz”, immediacy, constant refresh-ability, and an ability to add heightened perceived value to the promotion.

The promotion prints unique codes inside the wrappers of hundreds of millions of Hershey candy packages. Upon opening, the buyer text messages the code to determine its value. Hershey offers buyers the ability to submit wrapper bids for money and prizes (up to and including automobiles) in daily auctions over 200 consecutive days.

These two programs will drive lots of wrapper purchases and continued and extended participation by many of Hershey’s best customers. In all likelihood, the auction dynamic will generate word of mouth and some interesting bidding dynamics. Advertising/promotion for the program has not even begun, and Hershey already had over 90,000 participants submit bids in the promotion.

Stay tuned.

Loser

Vonage Voice over IP Telephony
Despite the extraordinary success of IP-based telephony in Company and Enterprise oriented markets, and uniform predictions that VoIP is likely to totally eclipse traditional technologies in consumer telephony, Vonage has failed to leverage the extraordinary opportunity in the U.S. consumer market. Vonage’s failure traces to its inability to explain the inherent advantages versus traditional phones, and thus justify consumer switching. Rather than drive home the reality that this new technology can help bring to home phones the kinds of communications functionality and performance advantages—like directories and SMS messaging—that consumers have seen and made popular on their PC’s and wireless phones, Vonage has focused single-mindedly (and stupidly) on price, with brain numbing advertising citing the stupid things that other people do.

It is no surprise that the recent Vonage IPO is considered the worst in the last several years. Investors seem to recognize a pig ready for market when they see one.

Contact John Hawkins for more information.