Wednesday, November 30, 2016

New Coke: One Of The Biggest Marketing Failures Of All Time




In April 1985, The Coca-Cola company took a huge business risk by changing the 99 year-old formula, turning the beloved Coca-Cola into New Coke. Met with fierce opposition, New Coke has been deemed one of the biggest marketing blunders in history.


As a result of New Coke, consumers began purchases large amounts of the original formula and hoarding it for later consumption. Consumers were afraid that their beloved cola soft drink was gone forever and that they needed to ration what was left. New Coke was also met with protests by thousands across the country. The Coca-Cola customer call center was flooded with more than 1,500 New Coke complaints a day. The Coca-Cola company clearly misunderstood how consumers would receive the reformulated coke.




After a few short months, Coca-Cola restored Coca-Cola Classic in July 1985. Coca-Cola Classic was sold alongside New Coke. Consumers rejoiced at the reappearance of their original coke, and rallied behind the new Coca-Cola Classic Red, White, and You Campaign. New Coke eventually was renamed Coke II and then was discontinued.

All the research and data Coca-Cola collected indicated that New Coke would be a success and was something consumers wanted. The new formula was preferred in taste tests of more than 200,000 consumers. The company had also been losing its lead over its competitors for the past 15 years. And the cola category itself was becoming lethargic. Coca-Cola saw New Coke as a way to re-energize the brand and the entire cola category of soft drinks for modern consumers. How could Coca-Cola not seen this disaster coming?

Data doesn't tell the full story. Coca-Cola's marketing blunder is due to a lack of user empathy. Coca-Cola failed to conduct research to understand the consumer's affinity and loyalty toward the classic brand.  The company's research focused on consumer's reactions to product features instead of the concept. The research also didn't consider the power brand loyalty can play in new product adoption. Companies need to understand the whole consumer in order to create valuable products.

The reappearance of classic Coke helped Coca-Cola reconnect with consumers and shift the company's focus on understanding its users. To prove that it learned its lesson, The Coca-Cola Company described this blunder as an example of the companies commitment to creating value for its consumers even though it's idea was wrong. Truthfully this sounds like the company is just trying to say they didn't completely fail, when in fact they did.

This event clearly was a wake up call to Coca-Cola. The company has kept its original formula and has turned itself into a global brand, whose lifestyle and values is easily communicated across cultures. There is value in understanding the consumers perspective. It just might save a company from becoming one of the biggest marketing failures of all time.

Why Wait For Coffee?

Today I walked into the campus library at 10 am. While I searched for a spot to study, I noticed that the coffee line was particularly long this morning. Then two hours later I realized the coffee line hadn't changed except for the people in the line. Maybe its the cold weather outside, sleep deprivation, or a desire to treat one self, but students today are all needing coffee.

This experience got me thinking about how long people wait in lines for coffee and why they are willing to wait. A New York Times article stated, "Americans spend roughly 37 billion hours each year waiting in line." Based on what I've seen today, I wouldn't be surprised if a large portion of that time was spent in coffee lines. Fifty-percent of Americans drink coffee everyday, which is equivalent to 150 million daily drinkers. The average American drinks 3.2 cups of coffee a day. This statistic implies that Americans are addicted to coffee. The United States as a whole consumes 400 million cups of coffee a day, making it the leading consumer of coffee in the world. Getting coffee has now become a daily ritual.

The longest coffee lines that I've encountered are at Starbucks. I recently had to wait roughly 15 minutes to order my chai tea latte, then another 7 minutes for my drink to be made. Starbucks is well loved by consumers and often has a line because of this. According to a New York Times article, the experience of waiting in line is only partly defined by the actual time in line. People overestimate their wait time by 36%. So when I said I waited in a Starbucks line for 15 minutes, it was probably actually only 10 minutes. The consumers conception of wait time is influenced by the amount of occupied time and the amount of unoccupied time. Occupied time feels shorter than unoccupied time. If consumers are entertainment or distracted while waiting in the line, the whole experience feels shorter. Since consumers dislike waiting in lines, they will seek ways to occupy themselves such as participating in impulse buying. Starbucks lines its stores with decorated mugs, bags of coffee beans, small snacks, and other knick knacks to entice consumers to occupy their time waiting by selecting impulse buy items. I know I like to look at all the different mugs Starbucks strategically places next to the line.

As I finish this blog post the coffee line in the library has yet to shorten. Students are stilled packed like cattle into the roped off coffee section of the library. Luckily they have a whole display of sweet treats to occupy their thoughts before they reach the counter.






Tuesday, November 29, 2016

Black Friday: The Controversy Of The Biggest Shopping Day Of The Year




Black Friday is the most anticipated shopping day of the year. What once was a fun tradition has now become a stressful event that sparks bouts of violence. Three shootings occurred in different shopping areas across the country during Black Friday 2016. Of these shootings one man died and several others were injured. At least one of the shootings was caused by a parking spot dispute. Gun violence over a single parking spot seems a bit extreme for an event that is supposed to be fun. The following quote reflects the concerns of one shopper that was present at the shooting in New Jersey this year.
"It's sad. We've been doing this, me and the girls, for probably about 10 years, just for the fun of going out -- a girls' night and trying to get some special sales and it's getting scary now."



As of 2006 there have been 8 deaths and 98 injuries throughout the US on Black Friday. Black Friday shoppers are becoming increasingly stressed and violent when things do not go their way. Fights over discounted products and parking spaces have become a part of the Black Friday Tradition. In 2008, 2,000 shoppers were so focused on fulfilling their own material desires that they trampled a 34 year-old Walmart employee in New York. Shoppers showed zero concern for the injured man and ignored the police's attempt to assist him. The level of selfishness that is displayed on Black Friday exemplifies consumers' desire to receive discounts above all else. Incidents involving handguns, knives, and pepper spray are now the norm for Black Friday. Personally, this animalistic behavior makes me very disappointed in consumers, especially since this behavior occurs the day after Thanksgiving. In less than 24 hours, Black Friday shoppers have forgotten all the things they said they were thankful for the night before.

Another controversy surrounding Black Friday is focused on the treatment of the employees that work Black Friday. Black Friday staff have to comply with unreasonable demands, work long shifts, risk their health and safety to manage crowds, and sell products that were specifically made for Black Friday that have lower quality specifications. Many employees dread working Black Friday because of the long hours and crowds. Is it really fair to make these employees endure terrible work conditions just so companies can receive a spike in revenue this one day of the year?

There are some companies that refuse to participate in the stressful Black Friday sales. Instead these companies prefer to protect its employees and customers from mindless consumerism. REI for example is closed on Black Friday, giving its employees a paid day off. This act shows that REI is a company that doesn't value profits more than its employees. I greatly admire REI for its Black Friday strategy. Just the act of closing its does may cause some shoppers to stop and think about the reasons why a store isn't open on Black Friday. Maybe this is our glimmer of hope. It's up to companies like REI to help consumers remember what's important in life and break their Black Friday addictions.


Black Friday: Why Consumers Go Coo Coo For Discounts


The Friday after Thanksgiving is the day of the consumer or Black Friday. On this day discount craving consumers wait in lines as early as 3:00 am and pack themselves into malls like cattle. This mass day of consumerism has been a tradition since 1932. Originally, Black Friday would start at 6:00 am, but larger stores such as Best Buy, Kohl's, and Macy's have started earlier and earlier each year. Now some Black Friday deals even start at 5:00 pm on Thanksgiving day, challenging the essence of Black Friday. 

In 2015 74.2 million United States consumers participated in Black Friday, spending $625.1 billion. Thanksgiving is a holiday that encourages people to reflect on what they are thankful for in life. You would think this self reflection would inspire gratitude and content with one's life. Instead of feeling content the day after Thanksgiving, millions of Americans storm shopping centers consuming more and more products. What is it about Black Friday that turns Americans into enthusiast shoppers this one day a year? 

dealnews.com offers eight explanations for why consumers go crazy for shopping on this one day a year.

1. Getting a Deal Feels Good. Discounts feel like a reward for all the planning, waiting, and patience needed to shop on Black Friday. There is a sense of satisfaction when receiving a discount. Consumers crave this satisfaction often on Black Friday.
2. Limited Time Sales Create A Sense of Urgency
Limited quantities and limited time encourages consumers to act fast if they want the satisfaction the discount provides. It's this sense of urgency that pulls many Americans out of bed at 3:00 am to get in line outside their favorite retailer. 
3. Doorbusters & Limited Items Make One Feel Superior
Receiving a doorbuster or limited item that only a few shoppers receive makes one feel special and that their efforts are validated. Consumers who receive the doorbuster also feel superior to other shoppers who showed up to late. It's a prize for being the most dedicated and sleep deprived. 
4. Buying Something Justifies The Time Commitment
For many Americans, Black Friday is a full day event. So much time goes into planning and waiting that consumers feel like they have to buy something no matter what. By purchasing an item, consumers feel that the time they invested into this endeavor is not validated. Its also this feeling of validation that encourages consumers to purchase more than they originally set out to buy. 
5. Deal Teasers and Previews Build Anticipation
Black Friday deals are advertised weeks before the actual day. The hype around Black Friday turns this weekday into an event that is highly anticipated each year.
6. Black Friday Is A Tradition
This day of consumerism marks the beginning of the Christmas shopping season and has become a tradition for many families. Families turn Black Friday into a memorable family activity, rather than a free for all shopping day. 
7. Planning Ahead Increases Expectations
The shoppers who put the most time into planning their shopping strategy tend to have high expectations for the day. High expectations bring shoppers out on Black Friday, but the ones who have invested the most time into planning tend be the most stressed out and sensitive when things get in the way of their shopping plan.
8. Good Deals Even Appeal To Shopping Humbugs 
The discounts, anticipation, and sense of urgency around Black Friday even bring out those individuals who dislike shopping in general. This contributes to the large amount of people who participate in Black Friday.

Black Friday is a day that celebrates consumerism. Americans love a good deal and are willing to put up with early hours, long lines, and crowds of people to get them. Black Friday is more than one big shopping day, it's a day full of tradition, satisfaction, and validating oneself. 

Saturday, November 12, 2016

The Problem With Nutrition Labels


Why does it feel like you need a Ph.D to be able to understand today's nutrition labels?

In a previous blogpost entitled, Candy Corn: Please Consume Responsibly, I discussed who was responsible for the health of society. On one side the consumer is responsible for their own health because they have free will to choose what they put into their bodies. And on the other side, food manufacturing companies have an obligation to create food that will increase consumers' well-being or at least effectively communicate what is in its products. Here lies the issue with nutrition labels. Food companies use nutrition labels to communicate product ingredients, so consumers can make a seemingly educated decision to consume a product or not. Unfortunately nutrition labels are confusing to the average consumer. Complex names and measurements hide the truth behind the product's ingredients and nutritional content.

There are several elements to nutrition labels that lead to confusion, most notably the number of calories, serving size, and ingredients. Many nutrition labels list the number of calories in a serving, as well as, list the calories from fat. Aren't all calories the same? Does this imply that fat calories are worse for you?  What does this really mean for my health? A measurement like this leads consumers to question its meaning. The nutrition label does a poor job of describing why fat calories are separate from total calories. Another issue in understanding the calories measurement, is knowing if it is considered small, average, or large. Most nutrition labels indicate that calories are based on a 2,000 calorie diet. Since many people have different caloric needs it is difficult to define if the number of calories in a product is acceptable for one's dietary needs.

Serving size is also a misleading component of nutrition labels. Often times the serving size is measured in such a way that the consumer can't even conceptualize what it means in terms of how much to eat of a product, especially since products come in bigger quantities than they are supposed to consume. I found four food products in my house that all have misleading serving sizes. Let's take a look at each one and determine how it is misleading.

1. Spaghetti Noodles
Spaghetti noodles come uncooked and in a relatively small box. What I have always found confusing about spaghetti noodles is that when you cook a small amount of dried noodles and it turns into a massive helping of cooked noodles. The serving size on the package is 2 ounces. Let me just pull out the scale I keep in the kitchen to measure that out. Oh wait! I don't have a scale to measure food. How am I supposed to know what 2 ounces of dried noodles is supposed to look like? Let's say I make spaghetti to feed my whole household. How am I going to know what 2 ounces of dried noodles look like when they are fully cooked? The real issue here is that the serving size for spaghetti is presented in weight of dried noodles. People don't eat uncooked spaghetti or typically have scales to weigh out food in their kitchens.


2. Doritos Nacho Cheese Chips
I believe that very few people actually read the nutrition labels on chip bags. When people consume chips they will eat handful after handful until they are satisfied. The serving size for Doritos is only 11 chips. That seems like too few if Doritos are supposed to be one's afternoon snack. The good thing about this serving size is that it is measured in chips not ounces, so it is easier for the consumer to conceptualize. The issue is that it is so small that very few people will only eat 11 chips when they have access to the whole bag. Would it be better for consumers if snack size Dorito chip bags that only contain 11 chips were sold?




3. Popcorn
You would think one serving of popcorn would be the whole pre-measured bag that it is microwaved in. Wrong, the serving size of popcorn is 3 tablespoons of uncooked kernels. This is especially difficult for consumers to conceptualize because they never see the uncooked kernels because they are hidden in the microwaveable bag. How is the consumer supposed to know how much 3 tablespoons of uncooked kernels looks like when cooked? Again, consumers cannot actually gauge what healthy consumption of popcorn is.



4. Poptarts
Poptarts are my own personal weakness. The worst part is that I know they are pretty bad for me, but that doesn't stop me from enjoying a strawberry Poptart from time to time. The serving size for Poptarts is 1 pastry. Since Poptarts are consumed as whole pastries this serving size is pretty easy to understand. The main issue with this serving size is that Poptarts are wrapped in packages of 2. Is a consumer really supposed to open a package and only eat one while the other becomes stale from sitting in an open package? If Kellogg really wanted to help consumers they would package each Poptart individually, eliminating the temptation to eat both in one sitting.

How are people supposed to make educated food product decisions when they don't understand what the calories measurements or serving sizes mean for their health? Misleading calorie measurements and serving sizes often lead to over consumption of products, thereby damaging the health of consumers.

Another big source of confusion for consumers is product ingredients. Using hard to pronounce and obscure names for ingredients, food companies have been able to hide what is in products from unknowing consumers. Here is the ingredient list for my beloved strawberry Poptarts. Words such as enriched flour, niacin, riboflavin, folic acid, soy lecithin, and Red 40 provide me with no real insight into what makes up a Poptart. These ingredients are also common in other food products. Let's take a look at what they really are.


Enriched flour is confusing because the consumer might not understand why flour needs to be enriched and what exactly it has been enriched with. A quick Google search revealed that companies enrich flour to restore it with nutrients that were lost while it was processed. Flour is often enriched with iron and B vitamins. Three B vitamins that flour is enriched with are niacin, riboflavin, and folic acid. These 3 B vitamins have intimidating names that make them sound like they are harmful to consumer health. In reality, these B vitamins promote good health in consumers by aiding in the creation of new cells within the body.

Soy lecithin is liquid extracted from cottonseed, marine sources, milk, rapeseed, soybeans, and sunflower to help mix oils within food products.  Though approved by the FDA, soy lecithin has been known to cause side effects such as bloating, diarrhea, mild skin rashes, nausea, and stomach pain. That doesn't sound like an ingredient that I want hidden in food products.

Red 40 is the most common artificial food coloring used today. Its actual name is Allura Red, making it sound almost seductive. This FDA certified food coloring comes from petroleum distillates or coal tar. According to the Center for Science in the Public Interest, Red 40 can cause allergic reactions, hyperactivity in children, and immune system tumors in mice. Red 40 also contains p-Cresidine, which is reasonably anticipated to be a human carcinogen. This seems like a pretty nasty chemical to be putting into our food.

Consumers need to be educated on what they are putting into their bodies. Nutrition labels are a great first step toward informing consumers, yet there is room for improvement. All nutrition measurements and ingredients need to be easier for consumers to understand. If we want consumers to be more responsible for their own health, then food companies need to be transparent about what is in the food product offerings.



Sunday, November 6, 2016

A Little Nudge Never Hurt


American's pride themselves on their freedom to choose. In society, there is a false assumption that people will choose what is best for them. In reality people are fickle and need nudging in order to make the best choice. In Nudge by economists Richard Thaler and Cass Sunstein, a nudge is defined as an aspect of choice that alter's a person's behavior in a particular way without changing the choice at all. This approach to influencing decisions is considered Libertarian Paternalism, which means nudging the user to make the best choice for his/her well being without restricting freedom of choice. This can occur through choice architecture, where the designer incorporates nudges into the decision making process.

The following picture is an example of a nudge built into choice architecture. The choice architecture is the order of the food available and the nudge is making the fresh fruit available to the consumer before the donuts. This helps the consumer make a choice that will be better for his well-being without limiting his freedom to choose.

Nudges are everywhere; some are intentional and some are unintentional. After recently reading Nudge, I have started to notice the nudges designed into Montana State University's (MSU) campus and student involvement. The two that particularly come to mind are sidewalks and Champ Change.

1. Sidewalks
Montana State University has a complex spider web of sidewalks that lead students and faculty across campus. The sidewalks are a nudge to encourage students to walk on the concrete instead of the grass. Sidewalks can be thought as a social norm type of nudge. People tend to use sidewalks whenever they are walking to a destination in a town or city.

Though this may seem like a great nudge it isn't always effective. Students in particular don't always care about walking on sidewalks. We tend to look for the quickest path and take it, even if it means walking across the grass. As you can see in the photo most students are following the nudge of the sidewalks, but some in the far right of the photo are cutting across the grass.

Montana State University may have needed more thoughtfulness when designing its sidewalks. Students wouldn't need to cut across the grass if sidewalks that followed the most direct path to common buildings were established from the start. What Montana State University did do well, was line certain sidewalks with tall shrubbery to discourage students from cutting across the grass in certain areas. I know one day I was planning on taking my usual route to Jabs Hall that cuts across the grass only to have found a large bush (another nudge) planted in my way. Now, I have to use the sidewalk just like everyone else.


1. Champ Change
Champ Change is a nudge used by Montana State University to encourage student involvement. A student can receive Champ Change (points) by going to the library, going to the gym, attending MSU sponsored events, etc. Then the students my use their Champ Change in an online auction to win prizes. Champ Change is an incentive type nudge for it motivates students to discover many different aspects of Montana State University for the chance to redeem points for prizes.

Champ Change is a moderately effective nudge. Not very many students participate in the program because they forget to swipe their Cat Card to get the points or they simply can't find the card scanner. The incentive of prizes is particularly attractive to Freshman, who want to explore the MSU campus and now receive a reward for doing so. Champ Change is great for new students because it gives them a reason to get in the habit of attending social events, studying, and exercising while at MSU. Champ Change is a nudge that enhances the well-being of students and the college experience.


Nudges are everywhere and many often go unnoticed. Without limiting options, nudges encourage better health, wealth, and well-being of consumers. I believe nudges are an excellent way to motivate change without strict rules or mandates. A little nudge here and there wouldn't hurt.


Sunday, October 30, 2016

It's All In The Title

We are exposed to over 5,000 advertisements each day. It has become increasingly difficult for companies to break through the clutter and reach consumers. Companies are now creating value conscious content that people are compelled to consume on social media. With consumers becoming more and more indifferent to content on social media, posting has become a science of intrigue and value. The challenge for businesses is to create attention grabbing material that rewards the consumer with something of value. Let's take a look at postings on my Facebook feed and determine how companies are trying to get the attention of consumers.

The key to content creation is having an enticing title that stimulates an individual's curiosity. The first posting is from Magnifier Magazine.   It's first title is "Netflix Has No Heart: November 2016 Edition". People love Netflix, so a title saying that Netflix isn't the greatest thing since sliced bread will cause a moment of pause. Now this first title wasn't enough for me to click into the article, but it was enticing enough that I wanted to read the caption of the photo. This reaction is probably similar to other consumers.

The caption reads, "Don't Look Now, But Netflix Just Got Rid of These Fan Favorites". If you want a phrase that peeks a persons curiosity, "Don't Look Now", would be it. Starting with this phrase drives people to want to click maybe for the simple sake of being a little rebellious. The rest of the caption tells the reader that Netflix is getting rid of some of its shows, but not just any shows, "Fan Favorite Shows". Any Netflix lover would be compelled to read the rest of this article to find out if one of their beloved shows was on the out list. And if it was, what a nice warning you have so you can watch the remaining episodes in your series.

This article captures the principle of attract attention then drive action. The value to consumers is knowing which shows are about to leave Netflix. This allows the consumers to know if they should quickly finish their current series, marathon one on their "Watch List", or warn a friend about the disappearance.

Since Netflix is a part of many consumers' lives, this article has great potential for user interaction through comments and shares. This posting by Magnifier Magazine not only captures the attention of Facebook users, it adds values to their lives.

The next posting is by Forbes. The title "10 Habits To Develop By The Time You Are 30" is great at capturing the attention of individuals younger than 30 and individuals older than 30. This article seeks to create value and capture value. People younger than 30 are likely to click on this article to discover the "10 habits" they should be developing. This provides an opportunity for them to learn how close they are to really being good at "adulting". The value people under 30 gain from this article is awareness of what they should be working on in their personal and professional lives in order to be successful later in life.

People older than 30 may be intrigued by this article as well. They may click on this article because they are curious what the ten habits are and how many they currently possess. These consumers gain the value of reassurance that they meet Forbes' "10 Habits" or learn something new from this article.

Since this article appeals to people of all ages it has great share potential, whether that be between a parent and a young adult, a teacher and his/her students, or among friends.  Individuals who also like this article may be compelled to like Forbes' Facebook page or subscribe to the magazine. In this situation Forbes has successfully created value for consumers and captured value from its readers.

The third posting by Everday Life, is titled, "What Happens When Rihanna Tries To Go To The Beach? I'm Speechless". This title plays with the consumers curiosity. It makes the consumer wonder what would happen if Rihanna went to a public beach and what did happen must have been pretty shocking since the writer is "Speechless" and there is an arrow pointing at something that of course we can't see. You must click on the article to get an explanation of what happened and to view the image that the arrow is pointing at. Like many of Every Life's postings, this one failed to deliver. The arrow was merely pointing at a person with a camera taking a picture of Rihanna at the beach. To be honest that isn't very surprising. It's not out of place for people to take picture of celebrities when they are out in public places.

This article promised an interesting event, but failed to deliver such news. This failure makes the consumer doubt the credibility of Everyday Life postings and feel like they did not gain any value from the experience. This can lead to consumers simply ignoring future postings from Everday Life. I know that I do. 

To break through the clutter on social media today, companies need to add value to consumers' lives. People are curious animals who want to discover interesting content on their social media feeds. Companies that respect the consumer's curiosity and deliver on its promises, will experience the benefit of reciprocity. Creating valuable content is a long term investment that will better the awareness and perception of a brand.



Sunday, October 23, 2016

Candy Corn: Please Consume Responsibly



With Halloween only a week away, I find myself falling into the nostalgia of past Halloweens. Growing up, Halloween was about creative costumes that I spent hours making and candy corn. The sickly sweet triangles of delight have always been my favorite Halloween candy. My own love for this candy has encouraged me to write this blog post on candy corn consumption in The United States.

This year, candy companies will produce nearly 35 million pounds of candy corn. That is approximately 9 billion individual candy corn kernels. Candy corn is a classic Halloween treat that many people have a strong opinion about. People tend to either love it or hate it. A study that 23% of Americans hate candy corn and 77% of Americans love it.

While some Americans can't stand its over powering sweetness, other crave it. 19 pieces of candy corn contain 140 calories and 32 grams of sugar. That is about the same amount of sugar in a 12 oz can of Coca-Cola. If you need a reason to not feel guilty about eating the sugary kernels, candy corn is fat free! Woohoo. The fact that Americans consume this obviously unhealthy treat reminds me of Jared J's blog post about the addictive properties of sugar. In his post, Jared discussed how the last time the American people actively consumed and supported the advertising of a product that was so unhealthy was cigarettes. He also describes a Harvard Study that found that sugar is more addictive than cocaine. Candy corn is pure sugar, no wonder it is an addictive Halloween treat.

Thinking about Jared's post, made me wonder how sugar is effecting society in terms of health and products available. The New York Times article, The Extraordinary Science of Additive Junk Food, discusses this topic in great detail. Obesity is a national epidemic with 1 in 3 kids and teens being obese. Major food corporations such as Kraft, Nestle, and General Mills contribute to this epidemic by purposely adding sugar to their products. For example a half cup of Prego spaghetti sauce contains 2 teaspoons of sugar, which is the same amount of sugar in two Oreo cookies. Adding sugar is an effort used by large food corporations to get people hooked on foods that are convenient and inexpensive. These companies are searching for the "Bliss Point", or the point where consumers develop a craving for the product.

When it comes to the health of society, how much responsibility should be place on food companies and how much responsibility should be place on consumers? 

Major food companies often feel that consumers are fickle and vary in what they care about. One day they might care about sugar; the next they might care about fat content. Food companies often justify the adding of sugar, sodium, and fat to their products because it's "what the consumer wants". Consumers like the taste of sugar and buy products that have better taste. When asked about adding unhealthy additives to foods, a major food company replied, "that's what consumers want and we're not putting a gun to their heads to eat it. That's what they want. If we given them less, they'll buy less, and the competition will get our market. So we're trapped". From this point of view, food companies are simply making the products consumers want and it's the consumers fault if they purchase them. Many brands have product lines that cater to the health preferences of individuals. Take yogurt for example, there are regular, fat free, zero calorie, and zero sugar options available to consumers. It's up to the consumer to pick which one they eat.

On the other hand, we cannot absolve food companies of all of the blame. Many people are unaware of the added sugar, sodium, and fat in their foods and the health risks that come with it. Knowing the potential risks of consuming too much sugar, sodium, and fat, food companies need to look out for the consumers. Major food corporations are "keen to give people more of what they want, yet simultaneously inflict collateral damage on their lives". The last time companies willingly gave consumers what they wanted and disregarded the health risks, were cigarettes.

Finding the balance between giving what consumers want and looking out for the consumers health is a major challenge for food companies. In this situation, consumers can be considered teenagers and the food companies their  wise mothers. There's a reason mom always said, "You'll thank me later." Food companies need to adopt this level of care for consumers, while still knowing that if consumers want to risk their health they will find other products to consume. In the end we must all take responsibility for the general health of society.




Thursday, October 13, 2016

Help! Ads Are Following Me...


Living in a house with four other girls means that there are plenty of magazines lying around for leisurely reading. Over the past month I have flipped through the pages of three different magazines, read articles and skimmed through advertisements. Last week I was reading the third of these magazines when I came across an advertisement for Maybelline's new Color Sensational lipstick. There was something very familiar about this particular advertisement. It finally dawned on me that this lipstick advertisement had been present in all three magazines.


Integrated Advertising, Promotion, and Marketing Communications provides insights into why marketers use several forms of the same channel for reaching audiences and use variations of an advertisement. Herbert Krugman's Three Exposures Theory relates that a consumer only has to be exposed to an advertisement three times for it to capture his/her attention. Once this attention has been captured the advertisement is considered effective. This theory is based on intrusion value, or the ability of an advertisement to capture the attention of the viewer without his/her voluntary effort. The Three Exposure Theory explains my reaction to the lipstick ad. It wasn't until the third time I viewed the ad that I fully recalled it from my memory. I am not particularly interested in lipstick, so I would say I involuntarily paid attention to the advertisement after my third exposure to it. 

Marketers rely on impressions, or the the total number of exposures of the audience to an advertisement, to reach their target market. Magazines reach specific audiences, so magazines are a great tool for reaching target markets. I came across this Maybelline Ad in Shape, Cosmopolitan, and HGTV Magazine. The magazines have the following circulations: Cosmopolitan 3.0 million, Shape 2.5 million, and HGTV 1.3 million. Therefore, this advertisement has made 6.8 million impressions  by using these three magazines. In other words this advertisement has reached at least 6.8 million individuals. The 6.8 million impression doesn't take into account the additional number of viewers who see a magazine in communal settings such as patients in a doctor's waiting room. The more an individual times an individual views an advertisement the higher the brand recall will be or that individual.

The size and placement of advertisements also influences effectiveness. The Mabelline Ad is the same size in each magazine, but it was found on page 13 in HGTV, page 23 in Shape, and page 79 in Cosmopolitan. In addition to placement, consumer brand recognition requires an emphasis on the visual presentation of the product. The Mabelline Ad uses bold colors to catch the readers eye and represent the bold colors of its new line of lipstick. Each model in the advertisement is touching her lips to draw the consumers attention to her mouth displaying the new lipstick product. It's interesting that each advertisement has a different model. Varying models help make it interesting and keeps the consumer engaged. Using the same advertisement may lead to the consumer quickly ignoring it. The different women in these advertisements caught my attention, making me remember all my previous experiences with the advertisement. 





Thursday, October 6, 2016

The World's Top Brands: What It Takes To Be a Strong Brand



A brand is more than a name and a logo; it's a company's image. A brand can embody a company's values, mission, history, leadership, competitive advantages, and much more. CEO of Starbucks, Howard Schultz said, "the most powerful and enduring brands are built from the heart". Strong brands contain vital elements that set them a part from competitors. Let's take a look at 3 brands that Forbes has deemed the World's Most Valuable Brands and determine what makes each a strong brand.

Ranked #1 Apple


It's no surprise that Apple is the top global brand. As of May 2016, sales for the last fiscal year were $233.27 billion. Apple is considered a strong brand for several reasons. First, the Apple logo is recognized anywhere in the world. The company's name doesn't even need to accompany the logo for consumers to know what company it represents. Second, the Apple brand reflects the company's values of creativity and innovation. Its products are the epitome of these concepts. Consumers mentally tie Apple with innovation. Third, Apple is authentic. Apple has followed its original mission to create valuable user experiences through innovation and creativity. Apple has stayed true to why it does what it does and consumers value that commitment. Finally, Apple's product packaging creates a unique and memorable experience with the consumer. When a customer opens an Apple product for the first time he/she is met with a sophisticated white box that sparks anticipation and imagination. Apple is a global power house, whose brand successfully embodies its mission and values.

Ranked #4 Coca-Cola


Generating sales of $43.49 billion as of May 2016 for the previous fiscal year, Coca-cola truly is an international brand. Coca-Cola is a strong brand because it is highly recognizable. It is so recognizable that consumers who only see the shape of a Coca-Cola Bottle are able to determine the brand.
Now that's a powerful brand image. Coca-cola is also a strong brand because it is consistent. Coca-Cola has delivered the same level of high quality in its soft drinks for over 100 years. It doesn't matter if you are in The United States or in Italy, Coca-Cola will deliver a consistent refreshing beverage. The brand is also considered strong because it is authentic. Founded in 1892, Coca-Cola has maintained its original logo and color palette. Though Coca-Cola's tagline has changed throughout the years, its key messages of unity, happiness, and social consciousness have remained the same. The Coca-Cola brand is strong for it embodies the company's history, values, and global presence.

Ranked #8 Disney 


Disney is a strong international brand, making $53.9 billion in sales as of May 2016 for the previous fiscal year. Disney has a global presence with theme parks in The United States, China, France, and Japan. Disney is a strong brand because its brand character embodies a youthful spirit that consumers of all ages identify with. To go with brand character, Disney's brand voice is fun, imaginative, and ageless. Disney believes that everyone has a youthful heart. Disney is also a strong brand because it has excellent distribution. Disney movies and television shows are viewed in theaters and on channels abroad. The company even has store fronts internationally. For example, there is a Disney store in Venice, Italy that receives a lot of traffic from the plethora of international tourists. Disney is a strong brand because consumers relate to its character and voice. 












Thursday, September 29, 2016

How a Maximizer Can Become a Satisficer

After reading The Paradox of Choice by Barry Schwartz, I couldn't help but feel depressed. The Paradox of Choice explores how the plethora of available choices and the freedom to choose contribute to unhappiness and a loss of valuable time. And if this finding wasn't sad enough there is one group of people who suffer the most from decision making, Maximizers.

According to Schwartz, there are three kinds of people: Maximizers, Satisficers, and Perfectionists. Maximizers turn decisions into major projects, looking for the absolute best solution. It doesn't matter if a Maximizer is buying a car or buying a new set of headphones, each requires an exhaustive effort. On the other end of the spectrum are the "happy" ones, Satisficers. Satificers make decisions quickly and decisively, settling for good enough. Once a solution that satisfies his/her needs is found, a Satisficer feels no desire to continue searching for the very best. When comparing the two groups, Maximizers exert a greater effort toward decision making than Satisficers. Maximizers will spend more time on product comparisons and the purchasing decision, while experiencing more regret and negative feelings toward their decision than Satisficers.

You may be thinking a Maximizer sounds a lot like a Perfectionist. A Perfectionist sets high standards for him/herself, but does not expect to meet them. On the other hand, Maximizers set similar high standards, but expect to fully meet them. According to Schwartz, high standards and the search for the best contributes to dissatisfaction with life. Schwartz developed a test to calculate an individuals Maximization score. If you are interested in determining how much of a Maximizer you are I encourage you to take Maximization Test below.

Schwartz concluded that, "high Maximization scores experience less satisfaction with life, were less happy, were less optimistic, and were more depressed than people with low maximization score (Satisficers)". If you found you had a high Maximization score like me, you might agree that Schwartz's conclusion  about Maximizers is just depressing. The outlook seems pretty bleak for Maximizers based on his research.

In the last chapter of The Paradox of Choice, Schwartz recommends several ways to combat the trap of too many choices. One of his solutions is, "be a Satisficer rather than a Maximizer". Wow, that's great advice! Of course Maximizers would rather be Satisficers if it meant less dissatisfaction and post decision regret. The only issue is that Schwartz offered no actions steps for becoming a Satisficer. So as a Maximizer, I have thought of three ways one can bring more satisficing into his/her daily life.

1. Set A Time Limit
Sometimes it feels like there is a never ending list of choices. Truthfully it's nice to have options, but Maximizers have a strong desire to explore them all so they can be certain they have made the best choice. One would think that limiting the number of choices considered when making a decision would solve the Maximizer's unhappinass dilemma. But this doesn't work for Maximizers who want the very best. Instead, setting a time limit allows a Maximizer to evaluate as many options as he/she can within that time frame. With this solution, a Maximizer can conduct his/her research thoroughly and then feel like he/she has made a well informed decision. The time allotted for decision making should be based on the importance of the decision being made and the level of involvement required. For example, buying a new car may require 3 weeks and selecting a Netflix movie may require 10 minutes. Selecting a time limit is subjective, but the key to success is holding yourself to it.

2. Practice Decision MakingIt will be less time consuming for Maximizers to make big decisions, if they get used to making smaller decisions. Making quick decisions will teach Maximizers the "good enough" lifestyle. Maximizers should begin by making "good enough" decisions on a small scale. For example, going to a coffee shop and ordering a drink is a great place to start. This act is seemingly insignificant and one would have to really screw up their order to not achieve some level of satisfaction. Ordering a drink at a coffee shop, requires Maximizers to make several decisions in a relatively short time frame. Satisficers are great at being decisive. By practicing the art of quick decision making, Maximizers can develop the Satisficer's indifferent attitude toward abundant choices.

3. Choose Decisions Worthy Of Your Time
Spending less time on the small stuff will help Maximizers prioritize their decisions and learn what decisions are actually worthy of their diligent effort. Perspective is key here. The amount of effort that goes into buying a home should not be the same effort that goes into buying a new pair of shoes. Maximizers are rational just like Satisficers, but they differ in their dedication to meeting high standards. Maximizers should sit down and rationally sort life's decisions into two groups: important and unimportant. The important decisions are worthy of the Maximizer's dedication to research. One could think of the daily decisions make as small and seemingly unimportant in the grand scheme of things. Buying a house, moving to a new city, and deciding to get married should be considered important decisions that Maximizers should feel no guilt in looking for the very best.

Transitioning from a Maximizer into a Satisficer is a huge mental undertaking and my not be feasible. There is nothing wrong with being a Maximizer, if one is happy with their lifestyle. But since I am personally prone to over thinking decisions, I see the benefit in adopting Satisficer tendencies; I want more free time and less buyers remorse. By following these three simple techniques I believe me and my fellow Maximizers can learn to make smarter and more satisfying decisions.

Tuesday, September 27, 2016

Pinterest: How Ideas Turn Into Sales



My favorite social media outlet is Pinterest. Pinterest is an idea sharing social media platform that attracts more than 74 million users. 80% of users are females aged 25-44. With its huge consumer base, Pinterest is the most successful social media platform for driving product sales with an average order of $50.00. Let's explore why this platform is so successful for targeting consumers.

The first attribute of Pinterest that encourages purchases is that its interface matches the way consumers shop. It allows users to quickly save product ideas to boards, creating a lasting wishlist they use to visit product sources at anytime. 70% of online customers use Pinterest to get inspiration for future purchases. Pinterest boards allow consumers to revisit their saved ideas over and over again. It's the ability to look back at saved ideas that leads to 50% of all orders through Pinterest occurring 3.5 months after the ideas are saved. Once a product is saved to a board it has the potential to be purchased for as long as it is saved.



Pinterest's unique sharing community reinforces the purchase decision made by consumers. Users can follow a company on Pinterest and interact with other followers. Each day 2 million Pinterest users save product pins. Users can see when a pin they saved is repinned by another user.. Seeing others repin a pin she saved validates the value of the product and encourages purchase of that product. Repinning can spark a band wagon effect, if other pin this product then it must be good.

80% of Pinterest users use their mobile phones to interact with the site. Pinterest users follow retailers to seek information on deals, seek product information, read comments about products, and seek information about events. With its mobile presence, Pinterest is empowering online shopping from anywhere at anytime. Pinterest is the gateway that drives consumers to business websites when consumers are away from their computers.

Pinterest is inspiring its users to find product ideas and make them a reality. It's amazing to see how one social media platform can drive sales and brand loyalty through captivating visuals.

Thursday, September 22, 2016

Magazine Ads: How Products Are Presented to Female Consumers

It's no secret that magazines contain an overwhelming amount of advertisements. Advertisements in women's magazines are known for creating a unique image for a brand through vivid imagery and enticing copy. Let's take a look at three advertisements from the women's fitness magazine Shape and determine how each is driving female consumer behavior and brand perception.

Using its cream colored bottle and wheat graphic, Aveeno has created a brand image centered around being natural.With its slogan, "Naturally Beautiful Results", Aveeno is a brand targeted toward the health conscious consumer. Featured in a glass case for preservation, the gentle scent lotion is portrayed as pure and fragile.This metaphor tells consumers that their skin is fragile and must be protected from everyday damaging environments. This glass case seems familiar.... where have I seen this before?
Oh wait I have.It looks like the glass case that preserved the rose in Beauty and the Beast. This mental image only reinforces my understanding of protecting something precious. It's memories like this that help consumers understand the messages of advertisements.

Another enticement for females to purchase this lotion was given Oprah Magazine's Spring Beauty Award. Well if Oprah, the queen of television, thinks this is a great product, then it must be. Seals of approval and awards alleviate some of the potential doubt consumers may have about a product.

And if consumers need more affirmation that this is a great product, then they can just read the paragraph below the image. Luckily, if one doesn't feel like reading the whole paragraph then its easy to spot the product benefits already enlarged and in bold. "Gentle Scent Body Washes for 2X the nourishment"....WOW. Individuals reading this ad may put this advertisement to their cognitive map for this brand, eventually resulting in a potential purchase.


Fiji water has always portrayed itself as a status symbol. It costs more than the average bottled water and has a recognizable square shape. In this advertisement, Fiji uses a blue tint to represent being underwater and a female in a yoga pose to represent health and serenity. The Fiji bottle is integrated into the yoga pose, suggesting Fiji fits into finding life's balance.The essence of this image reminds me of one of my favorite Zoolander movies quotes, "Wetness is the essence of beauty".

The copy of this advertisement uses rhyming words to convince female that this water can also be consumed in a gym setting. Though the copy points females toward consuming Fiji at the gym, it mainly addresses the issue of the square bottle. This advertisement seeks to bring awareness that the square bottle can fit in life's cup holders. Therefore, there should be no reason to not have Fiji water with you at all times. The water itself is imported from Fiji, giving female consumers a sense of adventure and extravagance. Consumers of this $2 water, not only gain hydration, but an elevated status.



Who knew life could be so exciting with tampons! This advertisement uses a girl riding a moped to portray the sense of adventure that is prevalent in the millennial audience. The copy challenges females to live life to the fullest even during their period. What's interesting about this ad is that it is using tampons as an empowerment tool. It is almost comical to think of tampons as confidence boosters. But this ad may resonate with females who feel confined and burdened during their period. Females who want to explore and be care free like this ad, will be inclined to purchase.

The picture of the Tampax box is displayed, so consumers will recognize it on their next walk down the feminine hygiene aisle. The advertisement also seeks to describe the products most important benefit, "the best protection". Not only is the advertisement's image and adventurous message appealing to female consumers, it also addresses the common concern of leakage.