Brands Out Of Control

A Foodie Friday that begins a long weekend here in the US. Today, however, we’re doing Foodie Friday Fails, and actually they’re kind of fun because of their inherent stupidity. Our fist bit of joy comes to us courtesy of the folks at Nutella.

Deutsch: Ein Glas Nutella-Nussnougatcreme

(Photo credit: Wikipedia)

A big fan of the hazelnut and chocolate concoction decided to celebrate the product by creating a “World Nutella Day” celebration and used social media and the web to promote it. Want to guess what happened next?

Sarah Rosso, the principal organizer of World Nutella Day, says she received a letter from Ferrero demanding that she stop using the Nutella name and logo. Since it’s a little hard to celebrate Nutella without using the word “Nutella,” that essentially spells death for any sort of World Day. Rosso, who described the letter as “a bit of a surprise and a disappointment,” will have to shut down her Facebook page, Twitter, and website — or, I guess, make them into blind items. “World Day to Celebrate An Unnamed Hazelnut Spread” doesn’t have as much of a ring, but at least it’s not actionable.

That’s right:  in a time when hundreds of brands are spending millions of dollars to create social virality, the geniuses at Ferrero shut down something that does nothing but celebrate their product in a positive way.  They’ve since recanted and are now supporting the effort, blaming their lawyers who reacted reflexively to use of a trademark.  Right.  In an event, the damage has been done but the lesson is worth repeating.  We no longer “own” our brands.  Our customers do and we need to support nearly everything they do unless it’s hurtful or illegal.

Then there are the folks at  TGI Fridays in the great state of New Jersey.  13 of their outlets were caught filling premium liquor bottles with cheap booze and charging top shelf prices for it.   Obviously, the brand takes a hit as a bar, but it also has to make customers wonder what’s going on in the kitchen if the bar is so out of control.  One bad apple and you can write it off to a rogue bar manager.   13 outlets and clearly no one is minding the store (or bar) by watching inventory and sales reports.  Maybe they’re not watching what’s being served or how it’s being cooked.

While the Nutella case shows someone paying too much attention, Friday’s shows the opposite   Managing is often a balancing act and here we have two food brands that have fallen off the wire.   Thoughts?

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Off The Social Rails

One of the things I made a note to rant about was some data that came out of the 2013 Doremus Decision Dynamics study.  This is an annual survey of senior marketing executives and one of the things it found is that these folks aren’t that enthusiastic about social media marketing.  In fact, 51% of respondents feel that advertising in social media is more intrusive than advertising in a magazine or newspaper, while only one-third believe that a social media presence enhances a company’s reputation.  I find  a certain amount of irony in those results since the respondents are, in most cases, the people responsible for their company’s efforts in social.  If those efforts are lacking, maybe we ought to think about it for a second before we shoot the messenger?

My thinking is that marketers don’t like any medium they can’t really control.  Social media is a mirror and I suspect that a certain portion of the negativity about social is the result of some poor effort on the brand‘s part which is just being reflected.  As we used to say in TV, “due to circumstances beyond our control” Facebook pages get hijacked, Twitter feeds get overwhelmed, and other channels are filled with comments from consumers that may not be on brand message (to say the least).  Yes, ads in social are more intrusive but unlike those other media they’re not viewed as welcome because they’re not easily avoidable.  Which is entirely the point.

Social media evolved as ways for people to connect with one another.  Smart brands spotted that and began to use the various social channels to interact.   They listened and replied when appropriate with useful  helpful information.  In other words, brands became humanized and engaged in conversation.  At some point, it went off the rails and social became just another place to fire up the ad megaphone.  This is the equivalent of using a shoe to drive a nail.  It might work but it’s clearly not as effective as using the right tool in the right way.

I’m not surprised most marketers don’t think social is helpful.  It’s resource intensive, it’s out of their control to a large extent, and most are using it badly.  Would you agree?

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Butterflies Or Blips?

A report came out yesterday afternoon which got me to think again about the changing television business. Coupled with a few other things going on, I wonder if they’re the harbingers of some sort of butterfly effect in the media business or if they’re just aberrations. Let’s see what you think.

Cable tv

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The report is from the Leichtman Research Group (LRG) and it showed that video subscriber gains in the first quarter of 2013 by top U.S. service providers were not enough to avoid a first-ever net subscriber loss in the category over a four-quarter period.  In other words, fewer people signed up for pay TV – which is pretty much any kind of cable or other video service – than cut one off.  As Multichannel News reported:

Leichtman attributed the downward trend to a combination of a saturated market, an increased focus by service providers on acquiring higher-value subs, and seeing some consumers opt for a “lower-cost mixture of over-the-air TV, Netflix and other over-the-top viewing options.”

So that’s one thing – cord cutting.  Is it overemphasized by many at this point?  Probably, but when you see something happen for the first time ever, you need to pay attention.  Then there is the bill submitted by Senator McCain to use regulatory incentives to encourage programmers and distributors to unbundle their channels and offer a la carte programming.  This means that if you don’t watch a channel you wouldn’t have to buy it as part of a bundle.  So if you’re effectively paying $5 for ESPN as part of a basic cable package and don’t watch it or want it available, you might get a price break.  Then again, those of us who do watch it might be paying substantially more each month as the user base diminishes.  Do I think the bill will pass?  Probably not since the idea has been around for years.  However, it might just be another butterfly flapping its wings, especially given that there are many more options for video (see point 1!).

Finally, ESPN cut staff yesterday despite record profits.  One would assume they know what their projected P/L looks like and they have committed a lot of money to rights over the next few years.  Making cuts now ahead of the new rights kicking in can help maintain that profitability   Again, another butterfly but pair it with the potential for ala carte cable and fewer pay TV buyers, and then ask if these are butterflies or just blips?  What do you think?

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