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Category: Business (Page 21 of 24)

C’mon, Someone Thought This Was a Good Idea?

(Note: Correspondent Garrett Galbreath contributed to this article)

This actually made me add a new category to the blogroll, one for "Dumb Ideas."

In an apparent attempt at global expansion no matter how little common sense the idea involves, Taco Bell will be entering Mexico.  However, the company must change some of its marketing.

First, they will not be selling Mexican food.   In fact, an ad reads, "It is a new fast-food alternative that does not pretend to be Mexican food."  Instead their brand will be, ""Taco Bell is something else."  Hmm, it’s lunch time, I feel like ordering "something else."  

Second, there will be some unusual items, with a menu that projects a more "American" fast-food image by adding French fries — some topped with cheese, cream, ground meat and tomatoes.  So basically, nachos, but using fries instead of chips.

And third, no tacos – the hard-shelled items sold as "tacos" in the U.S. have been renamed "tacostadas."

Why all the changes?  Let’s ask the executive in charge.   "Taco Bell wants to take advantage of the perception that if something comes from the United States, it tastes better, that a country that has been Americanized is willing to Americanize food that is central to its cuisine," Monsiváis said. "It is an absurd idea, and given that it’s so absurd, it may just be successful in upper-class areas."

In case you are wondering, YUM shares are struggling.  Perhaps it’s because people are walking into the CEO’s office, announcing they have an "absurd idea" and having that idea greenlighted. 

Now you might be saying, "Andy, you’re being way too hard on these guys.  Why not try something, and if it doesn’t work, put it in the scrap heap and forget it ever happened, just don’t do it again."  Well, I agree.  So for a kicker – "Taco Bell failed with a highly publicized launch in Mexico City in 1992, when it opened a few outlets next to KFC restaurants."

 

Do You Need Cable Anymore?

So, like everyone lese in the blogosphere, I wanted to make sure I passed along the news that Joost had finally come out of hiding and was in a public beta.  If you don’t know, Joost is the new venture from the guys who built Kazaa and Skype.  It’s a real attempt at "TV on the Internet."   But, I wanted a different angle, so I’ve been waiting a few days as I figured it out.

Well, after scratching my brain a while, I believe Joost may be the straw that allows me to ask this question. "Do you need cable TV anymore?" 

Let’s think about what I would watch on my Cable TV:

1) News: Realistically, I can read online everything I need to know.  And every story that matters generally has a local or national feed I can watch.

2) Live Sports: I may not be typical, but I rarely watch sports by myself.  If I care enough about it, it’s generally a social event.  So, it sucks that I can’t host a party for the Seahawks game, but I certainly can find a place to watch it.

3) SportsCenter:  So far, this is not replicable online.  Score one for Cable TV.

4) Movies: $4 for a DVD.

5) Prime Time Shows: Many are now available online the week they air (or the week after). Since my TV Drama and SitCom watching has already shifted from "Live" to "Tivo," waiting a week isn’t a big deal.  

So now let’s do a dollar for dollar comparison.  For my $70 per month to Comcast, I would probably let the news run about 40 hours in the background, catch 2 or 3 movies, watch about 4-8 hours of Tivo’d material and catch a few episodes of Sportscenter.   Without Cable, I lose out on the background news, am forced to the Video store for movies, have to go to a bar to watch the MLB playoffs, and have my selection of sitcoms and dramas cut down by some percentage, unless I want to buy them from iTunes.  It really probably comes out a wash.

So is Cable dead? No, of course not.  It’s a wash, not a landslide.  And I’m probably atypical.  But the fact that it’s a wash should be somewhat scary to Cable companies.  Which is why this whole Net Neutrality thing becomes an important issue for us to keep an eye on.  The Cable guys aren’t dumb, and they aren’t going to just let $70/month from 100 million households walk out the door.  But that’s a different topic.

Targeting the Young (and Single?) Voter

Young crowds, a charasmatic performer, a lot of hype, affluent people – it has all the makings of an event or concert designed to drive single people to a bar or show. 

But this is not a bar promotion, it’s a polical event.

If you believe the New York Daily News, there are more than a few undertones from the Barack Obama campaign team that Obama rallies have become the new *it* scene for young single people tired of the bar scene, office romance or match.com.

According to the article, "Like-minded city singles are looking to tonight’s Barack Obama fund-raiser as more than just a politically charged soiree: It’ll be a raging pickup scene."

With a web site featuring social networking (complete with photos), events that seem to purposely weed out the old and stodgy, and a candidate that can almost be described as "hip and cool," it’s hard to think this is an accident.  It seems like the campaign team developed a smart strategy of, "Smart single people don’t have a great outlet for meeting other smart single people.  Let’s have our campaign be their meeting place." 

If it works, it won’t be the first time someone used sex to sell a product, but it might be the first time it was done for a political campaign.

The Battle of Shareholder Value vs Environmental Concern

So back in the 90’s, it started becoming en vogue for Corporations to donate profits to charitable organizations.  This started a very interesting debate about whether companies should simply deliver value to their shareholders, or be responsible for bettering the communities in which they belong.

An easy argument was to drop the charitable giving money into the overall Marketing budget and call it "Community Relations."  If a giant bank sponsors runs for Leukemia and Breast Cancer research, then one could argue the CPM was worth the donation.  It’s a pretty compelling argument that you can get a lot of community goodwill on your side, which then helps with non-tangibles such as recruiting, brand management and corporate morale.

Fast forward to 2007, and the magic bullet is in going "Green." Companies are denting their bottom line to use recycled paper, advanced heating and cooling systems, subsidizing public transportation for employees and other efforts.  And shareholders seem to be ok with that.

But what about Google’s latest announcement.   According to a Google release, "Google.org is committed to finding innovative transportation solutions to reduce greenhouse gas emissions that cause global warming…As part of this initiative, we are issuing a $10 million request for investment proposals (RFP). We plan to invest amounts ranging from $500,000 to $2,000,000 in selected for-profit companies whose innovative approach, team and technologies will enable widespread commercialization of plug-in hybrid electric vehicles, electric vehicles and/or vehicle-to-grid solutions."

Now, you can look at this 3 ways:

1) Google makes $10 million in an hour, so it’s irrelevant to shareholders.  Great PR move.

2) This is a completely for profit effort for Google, stemming from their M+A group, and Google Shareholders should benefit down the road.

3) This $10 Million is nice, but why is an online search and media company investing in Transportation, something they could not possible know anything about?  Shareholders should be annoyed.

On a lighter note, what happens if Google ends up building the killer transportation app?  Will everyone be commuting to the Microsoft campus on the Google Mobile?

 

Do Protesters Need Image Consultants

So President Bush visited Seattle, or more accurately, Bellevue, this afternoon for a fundraiser for Congressman Dave Reichert.  I happened to be driving by the hotel a few hours before the President’s appearance, and was surprised by the hundreds of protesters gathered on street corners around the hotel.

As I drove through this collection of people, I was struck with a thought. Just based on their appearance, I don’t know if I could ever agree with them.  They were ragged, dirty and unkempt.  I found myself wanting to disagree with whatever their signs said, just so I couldn’t be classified with them.

It made me wonder whether protesters could be more effective if they spent a little more time tuning their message to the mainstream, rather than preaching to the fringe.  How many worthy causes are derailed by failing to observe basic tenets of marketing and public relations?  Furthermore, if a protester’s goal is to sway and persuade, and their actions instead make me sympathetic to the cause they are protesting, shouldn’t the protester stop attending events?  Isn’t in the protester’s best interest to evaluate the effectiveness of his campaign?

I wonder if the power of Freedom of Speech is diluted by zealots and  loonies who use it to push people away.  From a marketing perspective, how do you control your zealots, and make them unharmful to your cause?  If you were the Prius Marketing Manager, and someone started a blog campaign asking people to send in pictures of where they get stoned in their car, how would you react?  In today’s internet where everyone can be heard, how do you control your fans that can do harm to your ability to market to the mainstream?

 

Ripple TV, and the Emergence of Localized Advertising

So I have to admit being very intrigued by a company called Ripple TV.  You may have seen Ripple at a neighborhood Tully’s.  The concept is pretty straightforward – a typical High Def TV, displaying canned news and sports information from CBS and ESPN.  But the catch is, the screens are designed to run locally targeted ads that small business can create and upload themselves.

Or to put it another way, the two major pains about advertising are the creative costs and the inability to target effectively.  Ripple TV solves both these problems.  I get to choose which Tully’s my ad runs, and they provide me the tools to create the ad on the fly and upload it.

"Ripple has partnered with many of the World’s leading retail brands to provide a powerful in-store digital media experience that keeps their customers engaged, entertained and informed. Ripple’s user experience is customized specifically for each distribution partner, providing a truly custom experience that perfectly supports the brand, demographic, geographic and user experience requirements of each partner. Ripple keeps your customers engaged with the very latest news, financial information, sports, weather, traffic, local information and entertainment programming from the World’s leading content brands." 

So, the only initial limitation, which I’m sure will be solved soon, is that they have relatively few major partners (Tully’s), and so the audience is not very diverse.  But, that’s hardly a criticism.  Instead, I applaud Ripple for landing such a great anchor partner.  That really is quite a coup.

I don’t this affects agencies at all, because if anything the Ripple system grows the advertising pie, catering to small business owners that agencies didn’t really care about anyway. And the small business owner only needs a rudimentary sense of style and analytical skills to run a test ad for $75 in a neighborhood, so the cost to get started is minimal.

Fascinating concept, and I hope it does well. 

 

Politics 2.0

So, Hillary Clinton received much press and fanfare for allowing her supporters to nominate what should be her campaign song.  The theme of that seemed to be, "Hillary really connects with her supporters."

So then what do you say about Mike Gravel, a much smaller budgeted candidate who is really using User Generated Content as a way to get his marketing materials produced.  From his MySpace blast:

Please send your Gravel 2008 Flyers, Banners, and Graphics to submissions@gravel2008.us. We will be posting the best ones on the main website for others to use. Please feel free to be as creative as you’d like. Thanks to all of you for your support!

Maybe the Internet can equal the playing field a little.
 

Launch of MyElectionChoices.com

MyElectionChoices.com%20logo.gifAfter a few weeks of tinkering, we’ve launched the 1.0 version of MyElectionChoices.com.  The site will continue to evolve, but in its current form, visitors get to choose topics they care about in regards to the 2008 Presidential Election, then select positions they agree with from various candidates. 

At the end of answering a few topics, visitors then find out which Presidential Candidates they share political views with.  Since we have statements from 17 candidates, there’s bound to be a couple people that you’ve never heard of.

There are still plenty of improvements to be made, but give it a whirl and let me know what you think.  There’s a Groups option at the end to make it easy to invite others and compare how certain groups compare aggregately to National Averages.  And there’s a survey at the end as well that will help us shape the constant revisions.

Inspiration from an Unlikely Millionaire

If you had an Internet connection at work in 2000 or 2001, one of your colleagues forwarded you a link to HotorNot.com.  You played with it for somewhere between 5 minutes and 8 hours, helplessly clicking on the neverending stream of pictures of people who wanted you to judge how good looking they were.

About 1% of this crowd probably wondered if the founders were making any money, or if they simply launched the site for fun.  Well it turns out they were making GOBS of money.  Giant trucks were backing up and dumping bars of platinum into their backyard.  In a nutshell, it proved that a simple idea, at the right time, with the right people, was infinitely more powerful, satisfying and worthwile than simply attending weekly staff meetings.

Well, if you read techCrunch you probably already wandered over to this blog post from the CEO of HotorNot. If you have ever considered running off and starting your own idea, here are some wise words to help get you moving in that direction.

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