Mrs. Robinson, can you spare me a dime?

The female icons of today are women close to or in their fifties.
Entertainer Madonna, actresses Susan Sarandon, Goldie Hawn and Joanna Lumley, and talk show host Oprah Winfrey are just a few.

The baby boomer women are 50+ and a powerful marketing force- worldwide. Europe and Japan already have significant advanced aged populations, with the US, China, Chile and Australia expected to join this category in the next decade.

What makes them unique is:

1. Their appearance. These women are healthy, work out, dress fashionable and are confident.
   
2. They are decision makers: whether married or single, they decide on major purchases such as travel, cars, real estate, financial services, home improvement, sports & hobbies, education and technology.
   
3. They are well informed and have money to spend.
   
4. They account for 19% of the adult population and 15% of the total population in the US alone; the number in Europe and Japan is even higher.
   
5. They will be around for the next few decades and percentage-wise, their number is growing. On average, women live longer than their male partners, and the current female baby boomers will easily reach 90.

It’s the task of marketers to be on top of changes in society, culture and economy, since they result in demographic changes.
The main focus today is still on young, male audiences. They are still seen as the main purchasing power. Marketers have to take note of the demographic landslide that is taking place.
How should marketers approach these power women?

• Tap into their minds. These women look forwards, not backwards. Nostalgia will not work on them – new technologies and concepts will.
  
• Don’t lecture or underestimate. They have money and decide if, when, how and on what to spend it. They have been purchase decision makers at work and at home their whole adult life.
  
• Tap into their lifestyles. They have active lifestyles and invest in their health, fitness and wellness. They want to feel good and be healthy – they are not striving for the supermodel-look.
  
• Don’t mass market. They see themselves as unique and valuable individuals, not as part of a certain group or as half of a couple.
  
• They know how to network, nationally and internationally.
  
• Go for a holistic approach. They strive to combine body and mind and will go for products and services that add value to both. A good example is Dove's "campaign for real beauty" that combines physical benefits with mental well-being.
  
• Adjust communications. They are excellent communicators and respond to marketing campaigns that tell a story.
  

Royal Warrants as a Marketing Tool

Royal warrants have existed for a few hundred years in several European countries.
Originally, it was a “formal recognition” for tradesmen who supplied goods and services to a royal household.
It has developed into an effective marketing tool – a special version of endorsement.
Companies such as Steinway and Harrods successfully use the royal warrant as a unique selling point.
Unlike traditional celebrity endorsements, brands that are warrant holders are associated less with the royalty to which the crest belongs, and more to the traditional way of life and luxury in that particular country.
Royal warrants are predominantly issued by royalty in the United Kingdom, Denmark and the Netherlands to local and foreign companies.

How does it work?
A warrant links a product to a royal household.
Since advertising the warrant in any way is forbidden, it cannot be actively promoted.
Its power lies in the fact that the small crest “speaks for itself.”
It is perceived as a “quality guaranteed” label, with the added cachet that goes with a royal family.

How effective is it?
A small ad hoc survey of British customers confirmed the image of quality and prestige the warrants add to brands.
British customers perceived a royal warrant as a quality assurance sign.
Especially luxury items showing a royal warrant are perceived as reassuringly British, of fine quality and traditional.
The price tag can be higher than the price of similar goods.

In order to apply for a royal warrant, a company must take the following into consideration.

1. Does it fit the target audience? Are potential customers interested in the attributes royal warranty products stand for? Do potential customers like heritage and tradition?
   
2. Does royalty work as a unique selling point? How are the royals perceived by the target audience? Do they only like their own royalty or also foreign royalty?
   
3. Will the royal warrant work for the brand? Will it help the brand to develop?
   Will it create brand recognition and loyalty in both domestic and foreign markets?
   
4. Does the company meet the criteria for the royal warrant?
   In general, a company must show that it has existed for some time (in the Netherlands, over 100 years), have an impeccable reputation, and follow a stringent procedure in order to qualify. The process is most of the time difficult, inflexible, and sensitive.
   
5. Is the company willing to invest time and part of its PR budget into this unquantifiable endorsement?

There is one group for which royal warrants work very well:
the “business royals.”

Queen Margaret of Denmark sells 150,000 bottles of her own vintage wine yearly to french restaurants.
Britain's Prince Charles is manager of organic products food brand Duchy Originals, which makes US$ 77M. in annual sales.
King Carl XVI Gustaf of Sweden and his wife are marketing their fragrance Solliden worldwide, hoping to sell one million bottles per year.
The success of these brands lies in production and promotion of good-quality high-end products that match the royal’s own stature.

Displaying a royal warrant can be a powerful marketing and PR tool.

But companies must be aware of the following.Compared to other celebrity endorsements, it’s much harder for royal brands to attract consumers than “common” brands.

1. Celebrities gain their attributes through achievement and behavior and thus tap into the target audience. Royalty exists purely through position.
   
2. Customers seek brands that they can identify with. Celebrities can match the aspirations of the target audience.
   
3. Achieving royalty endorsement is harder to get than celebrity endorsement.
   
4. Royal warrants have a limited lifespan. In some countries, there is a renewal procedure every 5 years. In all cases, a royal warrant expires once the royal is deceased.
   
5. Royal warrants cannot be actively promoted.

Self promotion – is it healthy for PR agencies?

When choosing a PR agency, a company chooses one that is professional and knows how to generate PR.
Therefore, PR agencies must indulge in self promotion.
But how far can they go without loosing credibility?
Let’s look at two blatant self-promotors that are doing well.

The first is the mid-sized PR agency 5W.
Its founder and CEO Torossian loves to promote himself and his company.
One way he does that is by using his slogan "5WPR, the fastest growing public relations firm in the US", a trick often used in viral marketing.
He is also a master at hammering out press releases, including client wins, growth and employment opportunities.
Torossian even put out press releases voicing his opinion.
In one, he called Lizzie Grubman, another excellent selfpromotor, "an embarrassment to the PR industry".
In another, he described Howard Rubenstein, president of Rubenstein Associates, and the eminence gris of the PR industry, as "old and tired" urging his clients to defect to 5W.
This kind of tactics don’t always go down well with Mr. T’s existing clients -Manhattan attorney Ben Brafman left the agency as a result.
Funny enough, Torossian is so successful at generating media attention that he is being mentioned in the same breath as Lizzie Grubman.

Lizzie Grubman is the founder and owner of Lizzie Grubman PR.
Until her much-publicized car accident in 2001 (when she slammed a SUV backward into a crowd of people at the Hamptons club Conscience Point (one of her clients), injuring sixteen), she was known as a plugged-in publicist who interacted with Jay-Z, Sean "Puffy" Combs, Paris Hilton, Tara Reid and Britney Spears.
The accident made her loose clients such as Chanel, and her partnership with PR guru Peggy Siegal, dissolved.
After serving jail time, she carefully and successfully rebuilt her business.
She was able to keep clients such as Combs and Conscience Point.
She also does work for HBO, DreamWorks, and the MGM Grand and started a new partnership with fellow celebrity publicist Jonathan Cheban.
What could backfire is her starring in MTV’s reality show Power Girls.

So when does self-promotion become unprofessional?
When it leaves the marketing field and enters into the realm of meaningless hype.
Being on page 6 of the New York Post might work well for socialites like Paris Hilton et al, but could backfire on PR professionals.
To quote MWW CEO Michael Kempner:
"When business ethics and values take a back seat to growing a business at all costs, self promoters become a major accident waiting to happen."
Jerry Schwartz, president of the prestigious PR agency G.S. Schwartz and Co remarked:
"I personally am not a believer in getting more press for ourselves than our clients.
We don't cross over into the line of treating ourselves like we're clients."

How should a founder/owner of an agency self promote?
The best method is to carefully select media opportunities that fit into the agency’s business plan and strategy.
A good example is a strategic appearance on The O’Reilly Factor as a PR expert commenting on a current situation.
Mike Paul of MGP & Associates is a perfect example.
By being selective, he established himself as an expert on reputation management on TV and in numerous newspaper articles.

Generating publicity for the PR agency by self-promotion builds client confidence.
But self-promotion should never overshadow the publicity efforts for the clients.
Ironically, being too successful at self-promotion can lead to the demise of the agency…

Rock around the block

On 9/17, the Hard Rock Cafe launched its latest outlet at Times Square, NYC no less.

The Hard Rock chain was highly successful until 2000, with a highly recognizable brand and over-the-top grand openings and special events.
After 2000, the group followed an aggressive growth strategy, leading to opening Hard Rock outlets in areas that weren't appropriate.
Needless to say, not only the bottom line, but also media exposure suffered.
As a result, the company decided to close down several smaller locations and went back to its core business: high-impact locations that were launched with grand openings.

When the company moved its Hard Rock Cafe NYC from 57th Street moved to Times Square, it decided to allocate half of its total PR budged for thisNYC re-launch.
Hard Rock’s CMO, Sean Dee, formulated and implemented the following campaign.

1. Hard Rock started with the creation and launch of a new, dedicated website: RockTimesSquare.com. The look and feel of the website is very Big City edgy.
   The homepage features a spray painted wall – the graffiti text keeps changing when visitors clicked around. The audio background has Big City traffic noises.
   
2. Hard Rock developed a special logo for Hard Rock NYC – a fuse between the "I Love NY" logo and a gray rock.
   (The rock replaced the heart symbol – thus spelling “I Rock New York.)
   
3. Hard Rock developed a special PR kit, including a pre-launch sweepstake.
   Anyone living in a country that boasts a Hard Rock Cafe could enter the sweepstakes.
   The prize: 300 lucky winners in total worldwide would win a trip to NYC for the launch party.
   Each Hard Rock location received a kit including information and FAQ about the sweepstake.
   The kit also included promotional material - from posters, coasters, pins for the staff, lanyards with company messaging, inserts for the menus, video ad and to guidelines how to work the local media.
   
4. One of Hard Rock’s main gimmicks is the smashing of a guitar on during the launch.
   In this case, Hard Rock announced "The World's Largest Guitar Smash" that took place in August, one month before the Grand Opening. During this event, 100 guitars were smashed by the likes of Steven Van Zandt and Brian Wilson. Hard Rock made a point of donating one new guitar to the Peace Games for every guitar smashed during the Guitar Smash.
   
5. The apotheosis of the campaign was the Grand Opening that took place on Saturday, September 17.
   It included a benefit concert featuring Velvet Revolver, Reverend Run (of Run DMC fame) and the music of New York DJ Mark Ronson.

What were the results of the Hard Rock NYC re-launch campaign?

• Traffic to Hard Rock sites dramatically increased.
• E-commerce sales of the online “Rock Shop” went up significantly.
• PR exposure was far more than expected - the Guitar Smash made headlines and was featured on Good Morning America and ESPN.
• The two major events (the guitar smash and the grand opening) were competing with each other.
  As a result, the grand opening got less coverage than “The World's Largest Guitar Smash"
• Having theGrand Opening on Saturday turned out to be problematic. Hard Rock relaized that events during weekdays have a higher change of being covered by morning shows and other mainstream media outlets than those that take place during the weekend.
• Hard Rock assumed that each outlet worldwide will embrace the PR campaign equally. In reality, Hard Rock’s European partners outperformed their US counterparts.
  They were better at both in-store and local PR, leading to a high number of sweepstake entries.

What are the lessons we can derive for our own companies?

1. When planning a global campaign, formulate your goals carefully.
   Do you want to drum up local business or do you want the boost the corporate image and global brand?
2. Coordinate carefully with your local partners.
   In the described case study, partying in a Hard Rock Café in NYC is seen in Europe as cool.
3. Allocate a reasonable part of your budget to the PR event.
   Spending half of your global budget for one opening (as Hard Rock did) is risky and might not generate enough ROI.
4. Work towards one grand PR event and make sure to generate media attention and coverage at the main event. Don’t go for two or more PR events; it deludes media attention.
5. Select the time and place of the PR extravaganza carefully.
   Avoid holidays, other major events, and weekends. If the event must generated global exposure, also check holidays etc. in other countries.
   When choosing the location were the event will take place must be easily accessible.
   
   
   
   

Creating Killer Collateral

In the previous blog, I talked about design as part of the marketing strategy.
In this one, I would like to discuss how to create killer collateral.

1. Market research. Yes, there we go again, and this time it must be an external and an internal one.
   The goal of the external research is to map the wants, needs and expectations of the target audience.
   What kind of collateral do they want to receive? Do they like to read white papers with (technical) product info or do they prefer to get a sample of the product to test?
   The internal research takes place within the company.
   Key questions are:
   What image does the company (management and employees alike) want to project?
   How do they see their own company?
   Since budget restrains come into play as well, clear priorities must be listed.
   
2. Agree on the concept and integrate it into the corporate communications plan.
   In this stage, it is not only important to decide which collateral should be produced (brochure, newsletter, demo kit) but also the production deadline and the frequency of updates.
   A common mistake that smaller companies make with their newsletters is the frequency and size. They often start with a 6-pager with the intention to issue a new one every quarter. The second issue it often 4-5 pages and canf water down to a 2-pager. The time span between the newsletters also becomes longer and longer, often resulting in a "silent death".
   In the long run, this does a company more harm than good – the readers feel that the company doesn’t have news or money to issue newsletters and translate that to "they must not be doing so well.”
   
3. Choosing the design. Based on the target audience, the design can be conservative (financial sector, lawyers, government) or funky (consumer products, fashion).
   The design must always be in sync with the written text.
   The collateral must be user-freindly, easy to access (such as downloads from Internet or by email) and must provide the information the customer or client is looking for.
   In case of brochures, contact information must be easy to find.
   
4. Add additional features. Instead of purely focusing on the company or product itself, put educational and useful features in collateral.
   One way of doing that is linking from the corporate website to external (independent) websites.
   Another way is adding leaflets with info from external sources to the hard copy collateral another. In this context, information about a project or social cause that the company is sponsoring or promoting is very powerful.
   Cosmetics company Avon’s crusade against breast cancer is a good example.
   
5. Think freebies and long term. Collateral, samples and give-aways are costs without a tangible return on investment. However, if they are well designed and positioned, they have a lifespan way beyond expectations. It helps building and maintaining brand recognition and loyalty. Pirelli calendars are considered classics and made tires “sexy”.
   
6. Keep it simple. Never forget that the main purpose of collateral is reaching new customers and keeping current ones.
   Overwhelming the customer is a mistake many companies make in their collateral.
   Especially technology companies have the habit of presenting all the features and specs of their products in their brochures.
   People are pressed for time and don’t have a lot of patience, so keep it short, simple and whet their appetite for more.
   
7. Collateral must be handy – easy to download from the Web and easy to file when in hard copy.
   I once received a gorgeous brochure of a graphic design company that was so big that I could only file it between the cupboard and the wall. Needless to say, the second time I saw it was when I moved offices a few years later….
   Hard copy collateral is often sent by mail and must fit in the standard envelopes.
   Make sure that the collateral can easily fit in displays at exhibitions and conferences.
   In general, sticking to the standard A-4 format is a wise precaution.
   (Since American A-4 is different in size than European A-4, international companies should opt for teh following format: Height American A-4, width European A-4)
   
8. Last but not least – be creative. As every marketing and sales professional will tell you, having a (potential) customer even open a brochure takes effort.
   Creativity is the key issue here, but beware of going overboard.
   Never let design and appearance overpower the message. Nothing is worse than customers remembering a great image or design, but not being able to connect it to the company.
   Don’t focus too much on your competitors, but check out forms and formats used in other industries. A nice example is the tile producer H&R Johnson.
   

Design and Marketing

Slowly, slowly, design is being integrated into corporate marketing.
Companies are starting to accept that design can be a powerful tool to create impact.
No matter what the product or service is that a company sells, it all has to do with the perception of its customers or clients.
Marketing strategies must therefore be aimed at the target audience’s perceptions, thoughts, emotions, feelings, and attitudes.
Design must be an integral part of a company’s brand, product design and packaging.

What should a company or professional do?

1. Start with an in-depth market research. Find out what appeals to the potential customers or clients.
   Don’t forget, each purchase decision is an emotional one that must be rationalized.
2. Develop the overall corporate communication strategy.
   If in doubt if the strategy would work - test market.
3. Make sure the company’s collateral, packaging of products and services, the website, sales and promotion materials are in sync.
   Never start with the product/packaging design.
4. Make sure that all offers to customers or clients, including call center interactions, comply with the corporate communications strategy.
   Don't forget, marketing and sales are Siamese Twins.
5. Formulate strict guidelines for all advertising and promotions activities.
   Don't forget to include subsidiaries, agents and representatives.

Nowadays, customers and clients are well informed and critical.
They want more than a sheer purchase, they want a “shopping experience.”
This applies to companies, professionals (doctors, lawyers) and consultants.
Design not only builds the brand of the company, but also creates brand loyalty, which results in brand equity. Companies that successfully applied design are Apple, BMW and Disney.

In short, marketing and PR professionals must integrate the analytical with the creative part of their work and create integrated design solutions.
The pay-off is not only drumming up new business but also creating and maintaining customer/client loyalty built on trust.

Celebrity endorsement and pharmaceutical marketing

Pharmaceutical companies routinely hire celebrities to attract attention to the latest drugs and the diseases that go with them.
Celebrities become integral to a drug marketing strategy.
Supermodel Lauren Hutton was hired to promote Wyeth’s hormone replacement therapy and menopause. GSK contracted Football star Ricky Williams was paid to create awareness of social anxiety disorder, making Paxil (briefly) the world's top-selling antidepressant.
Celebrities don’t come cheaply - according to celebrity brokers, the star's remuneration package may range from $20,000 to $2 million.
This kind of promotion is part of the drug marketing strategy, normally consisting of paid advertising and aggressive public relations campaigns. It often results in the celebrities' media appearances on Oprah,the Today Show or, as in the case of Former Texas Governor Ann Richards who blatantly promoted one of Lilly’s drugs during an interview, on CNN's Larry King Live.

What are the main rules to enlist a celebrity for product endorsement?

1) Research which A-list celebrity goes down well with the target group
2) Hire an A-list celebrity that the target group considers trustworthy
3) Find a news hook to link the celebrity to the product
4) Develop some simple (marketing) messages
5) Ensure that the celebrity delivers them at every appearance

But especially celebrity endorsement of pharmaceutical product has its downside.
One big problem: the public doesn’t always realize that the celebrity is paid for advocating a cause (and its remedy).
A good example is the promotion of irritable bowel syndrome on top-rating TV shows by Kelsey Grammer (of "Frasier" fame) and his wife. Viewers thought that they were speaking on behalf of an independent foundation. However, GSK, producer of Lotronex (a drug with side effects, including possible death) paid the couple for their endorsement.

There is also a legal aspect to it. When producers state benefits of their products, they have to back it up with hard data. Every advertisement must include warnings about side effects and possible dangers.
Celebrities, who are no experts whatsoever, can emphasize the benefits of a certain drug without the need to point out the downside of its use.
Lauren Hutton stated in magazine articles read by millions of readers: “My No. 1 secret is estrogen.” Nor Hutton, nor the magazine is (legally) obliged to mention possible side effects or dangers.

Even well-meaning celebrities, who are not being paid for their efforts, and fight for a worthy cause, have the cloud to influence health issue debates and policies.
Camilla Parker Bowles chose to make an important public statement about the bone condition osteoporosis at an international conference funded by the pharmaceutical company Lilly. For years, Camilla has been a champion for early intervention and greater use of expensive tests and technologies for the primary prevention of osteoporosis.
By appearing on the Lilly-sponsored conference, she unwittingly promoted biochemical solutions to health care problems. By doing so, the overall health care debate about equitable distribution of health care resources, including non-biochemical ones, was ignored.

And last but not least, pharmaceutical marketing using a celebrity has its own pitfalls:

1. The campaign may oversell the celebrity and undersell the product. Using an icon might result in high recognition of the person, but no recollection of the product endorsed.
2. There could be a discrepancy between personality and product. The target audience must believe that the celebrity uses the product for his/her own benefit.
3. The celebrity should not be associated with too many (similar) products. Once a celebrity is promoting too many products or a similar product, the message becomes too cluttered. As a result, the target audience gets confused about the exact product that the celebrity is promoting.
4. The product should be legitimate as a stand-alone. Even without any (celebrity) endorsement, the product should be sound, functional, and fitted for its target audience.
5. The product should meet its expectations. After the media hype, the product should meet all the expectations that the celebrity created.
   

Marketing and the Yoga Mamas

Marketers have identified a new and powerful target group: the Yoga Mamas.
Yoga Mamas are middle- and upper-income mothers who are revolutionizing the baby-products market.
These mothers significantly different from others - for one, they are far more brand-conscious than their parents before them. They are focused on the fitness and well-being of their offspring and are extremely fit themselves, show off their pregnant bodies in “normal” clothes, dodging maternity wear.
They tend to be better educated and have more disposable income to spend on fewer children than past generations. Many start a family later in life, when they are financially secure.
They have established tastes and extend their lifestyle to their babies.
They “strollercize” – power walking with the baby stroller.

What makes the Yoga Mamas so influential?

1. They are trendsetters for other moms including those that don’t have their shopping power.
2. hey are creating demand for and boosting the sales of premium-priced baby creams and lotions, Italian leather toddler shoes, Bugaboo strollers, baby-bling-jewelry, diaper bags, etc.
3. They demand near-constant reinvention of the toys and other products they purchase for their babies.
4. They want a more exclusive and convenient boutique shopping experience.
5. They belong to social and technological networks, and make great advocates for a product or cause.

The US market of infant and preschool products is estimated at $27 billion with a growth rate of over 4% annually – a higher growth rate that the overall toy, apparel, and furniture markets. So how do manufacturers reach the Yoga Mamas?

Yoga Mamas have little leisure time. Shopping, e-mail, and chatting online are often done late in the evening. They are therefore not exposed to the traditional media such as advertisements on TV and radio and newspaper ads.
Their main source of consumer information is networking - other mothers.
Since they are strapped for time, some companies offer a tightly edited product menu of just four or five items per category.

In order to successfully market to the Yoga Mamas, a company must focus on the following:

1. The product must be top quality and meet the health conscience standards of the mother.
2. The product must be upgraded/renewed continuously, making the product lifecycle short.
3. The price is not sensitive – the mothers prefer buying high priced items over bargains.
4. The product must come recommended, preferably from a fellow mother (or Oprah).
5. Purchasing is an emotional experience with lots time restrains. The product offering must therefore be clear, concise and on target in an appealing environment.
6. Advertising and promotion must be innovative – traditional media outlets don’t work.
7. PR campaigns should be “emotional” – taking the self-image of the mothers as well as their vision about their babies’ lifestyle into consideration.