Innovative marketing - lawyer-style

One of the best innovative marketing strategies I recently came across, is the brainchild of the Cueto Law Group. This Miami, Florida-based law firm allows its clients to pay up to 20 percent of their legal fees with carbon credits. (Click here for the press release)

Carbon credit trade works as follows: a fixed, high penalty rate is applied to emissions that exceed a set target and firms are free to buy qualifying credits on the open market to bring their balance below the target level. The price of carbon on the open market will vary from scheme to scheme but is guaranteed to be lower than the penalty rate. Hence an upper bound is set for the price of carbon and classical market efficiencies force the real price of carbon emissions as low as possible. Carbon credits thus represent permits to emit climate-warming greenhouse gases. One carbon credit unit is commonly equal to one ton of carbon dioxide emissions.

Under the law firm’s program called “CO Too,” its clients can pay with carbon credits which the company can then trade in the international carbon markets.
"Our CO Too program is a way to help the environment, while at the same time providing an alternative way for clients to pay for professional services. We are proud to be leading the legal industry in this initiative,” said Cueto.

Mr. Cueto went on to say that he is optimistic that other industries will follow his company's lead. He stressed that carbon credits have gained significance as a legitimate currency with which to transact business.

"The current economic climate is a golden opportunity for the professional services industry to develop new ways to tackle global emissions.” He went on to say that credits represent a “paradigm shift” in the way business is transacted.

The global carbon credit market was valued at $126 billion in 2008. The World Bank estimates that the market could grow up to $150 billion by the end of 2009.

The Cueto Law Group consists of Santiago A. Cueto and his associate in Lima, Peru. Established in June, 2009 they are largely doing litigation for international clients with U.S. problems.

Cueto obviously knows a thing or two about marketing – his website is a textbook example of the latest trend in corporate website design, including news feeds, blog, etc. His timing is also impeccable – he launched his “CO Too” program during the Copenhagen Climate Change Conference 2009.

Although no clients took Cueto up on his offer yet, the media impact was a marketer's dream come true.
Prominent WSJ blogger Ashby Jones interviewed Cueto and quite a few eco magazines and blogs picked up the story, including Ecoseed and Mother Nature Network.

It shows how a clever marketing idea announced in a press release distributed via PR Newswire can put a small law firm firmly on the map.

(illustraton courtesy of www.toothpastefordinner.com)

Article Marketing

One of the best ways to promote a company or product is through opinion articles. Many magazines (online and print) welcome well-written articles. These articles should not be biased though – nobody wants to read a (blatant) sales pitch. As marketing professions will tell you – educating your target audience/potential customers is an effective marketing strategy.

Before starting to write, you need to identify the target audience. Who are the readers of the magazine you want to send the article to? What are their interests? Do you have a direct connection to the editor, or only via a PR company? Does the magazine allow hyperlinks? Do they also want original illustrations? In short – you need to do your homework.

Many marketing and copywriters ghostwrite – they write the opinion articles for a company’s CEO, CMO or CTO, and when published, it will be under the executive's name.

Following are some points of attention when writing an opinion piece:

1. It must be informative. The reader should learn something from reading the article.
   
2. It must be interesting. The text should flow and keep the reader interested to go on reading.
   
3. It must be based on facts, and not assumptions. References to recent events that were covered in the global media are a good hook, as are reports of leading analysts such as Gartner and Forrester.
   
4. It must be neutral. As mentioned before, nobody wants to read a sales pitch. A neutral article covering new or future trends, or “how to…” articles are popular. At the end of the year, articles about predictions for the coming year are in demand.
   
5. It should have hyperlinks (if allowed by the newspaper), footnotes and references. It makes the article trustworthy and increases the chance for publication.
   
6. Most magazines will ask for illustrations. Try to have original images in high resolution. No matter what industry you are in, the chance that your competitors use the same stock photos is high. Diagrams are always popular in tech pieces, as are product photos. Make sure to send different photos to various magazines – don’t forget, they all want to have original content!
   
7. Custom write your story, tailored to each magazine. Sending the same article to several tech mags is professional suicide, especially in today’s viral media
   
8. Make sure to put a short bio with contact details at the bottom of the article.
   
9. Follow up. Once you see that your article in published, drop a thank-you note to the magazine (or journalist). Blog and tweet about it, and make sure to include the URL of the publication.

For an example of an opinion piece, click here

Google’s real-time search – a search engine marketing dream come true?

Google announced the roll-out of its new real-time search function. Search results will incorporate real-time content from Twitter feeds, blog posts, online news content, Facebook status updates, and content from MySpace, FriendFeed, and Jaiku.

According to Google, the latest results and the new search options are also designed for iPhone and Android devices for info-on-the-go.

With this move, Google also tries to stay ahead of its main competitor - Microsoft's Bing that already has a real-time search function.

With its real-time search, Google will change SEO forever.

1. More and more companies will be "forced" to use social media to get exposure and to stay ahead of their competitors.
2. SEO and marketing experts will have a plethora of new opportunities for search engine optimization and marketing. Keyword and search terms will be embedded and searched in real-time news content, tweets, etc.
3. Companies need to be aware of what content and news they publish, since it will be exposed instantly to searches. There is no lead time for rectifications. This is especially important for companies that need to comply with regulatory rules and regulations (e.g., SOX and HIPAA).
4. Users of social media must be even more careful than before what content they post of their Facebook page or what they tweet about.
5. Facebook users need to be aware that if they flagged their profile as public, posted info can be displayed in search results.

It's too soon to predict what the impact on SEO and marketing will be, but it looks like a search engine marketing dream come true......

The Jia Junpeng phenomenon – clever viral marketing

“Jia Junpeng, your mom is calling you to eat at home” became one of the hottest catch phrases on Internet, getting cult status. It is also a testimonial of the power of viral marketing.

In July 2009, an anonymous user posted the sentence “Jia Junpeng, your mom is calling you to eat at home” on a World of Warcraft forum. Within 24 hours, it was viewed 1.5 million times, got over 200,000 comments and was reposted and quoted on at least 7,000 webpages. It quickly developed into a media tsunami inside and outside China.

The brain behind the phenomenon is Ao Chunhua, CEO of a small website marketing company based out in Chonqing. He hired over 800 people to register over 20,000 online IDs to flood the forums and create 100,000 replies / postings to drive traffic to World of Warcraft.

Why did it become such a success?

1. China’s youth are the driving force behind online growth. They love to social network and reach out and connect online.
   
2. The sentence “mom calling you home to eat” triggers an instant emotional response. The Chinese fondly recall childhood memories of playing outside and being called by their mother to come home to eat once dinner was ready.
   
3. The Internet is a breeding ground for creativity, ideas, and testing out of marketing strategies.
   
4. Viral marketing or word-of-mouth (WOM) marketing is a highly effective way to reach out and communicate with Chinese consumers. Chinese consumers shy away from traditional media and puts emphasis on guanxi (personal relationship). A recent survey found that nearly 40% of Chinese men aged 18-34 ranked word-of-mouth marketing as their top influence for electronic purchases.
   
5. Viral marketing is also a cost-effective way of reaching target groups and building brands. As everywhere in the world, traditional advertising on television, radio, or in print is expensive.

Café marketing – did Lcafe start a new marketing trend?

Sample Lab opened its Lcafe in Tokyo to reach Japanese women with information about new products.

It works as follows: Lcafe, customers register via mobile phone by providing their personal information (age, birthday, marital status). To become a member, they do not need to give their real name or exact address.

Once registered, the customers get tokens based on the amount of food or drink they ordered. They take their tokens to a brightly lit "sample bar" were they use them to get samples.
Registered members also get a barcode that shows up on their mobile phone. This serves as a membership ID, but also helps Sample Lab track who got what sample.

Sample Lab later sends out questions to see how a member liked a particular item. Those who answer the electronic survey get extra tokens for more samples.

Within the first two months, the café has more than 2,000 registered members. Offered samples were Refresh Time, a vitamin-infused drink by House Wellness Foods Corp.; pretzel sticks with flavors such as cheese, apple or tomato; and assorted skincare products.

This new trend was triggered by the economic turndown. Japanese advertisers are looking at new options to make their advertising more effective. They are turning away from mass promotion such as television ads and glossy magazine spreads that are very expensive. Targeted promotions like samples as more far more affordable and reach the correct customer group.

Yuhi Hori, of the event promotion division of Japan's largest advertising agency Dentsu Inc., agrees. "There is a fresh interest in distributing samples, as technologies using the Internet and mobile phones, which were not available in the past, allow companies to see the impact of sample promotion."

Lcafe reaches its target group perfectly – affluent Japanese women in their 20s and 30s. The café, which serves liquor, is open from 10 a.m. until 4:30 a.m. and clearly caters to women. Men are not allowed after midnight during the "Cinderella Time." The ratio of female to male customers is 9 to 1, according to Lcafe.

According to Kouhei Nishida, a manager of business development at Sample Lab, this group was chosen since "women take an initiative in shopping, they spark a trend. These young women can serve as influencers." More importantly, customers like Lcafe. Misako Minami, a 22-year-old college senior said: "It's simple [to register]. I feel value for money because I can get samples of new products while having a meal."

However, Lcafe also has its critics. Hideyuki Suehiro, of Hakuhodo, a major Japanese ad agency, claims that Lcafe lacks a system to encourage customers to spread their café experience through word of mouth (WOM) on the Internet. According to Lcafe, this is easily solved once it expands into other major Japanese cities (Yokohama, Nagoya and Osaka) and eventually overseas.

Time will tell if Lcafe remains a local phenomenon, or is starting a global marketing trend….

Games maker EA is at it again – another PR stunt gone wrong

This, time Electronic Arts (NASDAQ:ERTS) unleashed a media storm over its Dante’s Inferno.

At San Diego Comic-Con event, EA came up with a promotion that went sadly wrong. It consisted of a contest, where show visitors were invited to "commit acts of lust" with models working at the convention –no matter in which booth. They had to submit proof by posting photos on various social networks, such as Twitter and Facebook.

The idea was to create a viral media storm. The winner (or ultimate sinner?) would enjoy "dinner and a sinful night with two hot girls, a limo service, paparazzi and a chest full of booty." The consolation prize for the five runners- up consisted of a copy of the game, a $240 gift card and assorted game merchandise.

In the disclaimer, EA stated on the official rules page that "...judges reserve the right, in their sole and absolute discretion, to disqualify any Submissions that are inappropriate for any reason, including without limitation, for depicting or mentioning sex, violence, drugs, alcohol and/or inappropriate language." In other words, keep your "acts of lust" clean!

The gaming community was not a bit charmed, to say the least. Th campaign was labeled as tasteless, immature and sexist. The company tried to explain (or to justify) by pointing out that lust is one of the nine sins/Circles of Hell and that participants were invited to take pictures with costumed reps.

"'Commit acts of lust' is simply a tongue-in-cheek way to say take pictures with costumed reps," EA’s danteteam tweets. "Also, a ‘Night of Lust’ means only that the winner will receive a chaperoned VIP night on the town with the Dante's Inferno reps, all expenses paid, as well as other prizes."

The game community was not impressed and tweeting back with viral force.
addtwist tweeted on July 27, 2009: "You should've just gone with Gluttony. Take a picture of the fattest ass at Comicon and get a prize. Or is that too easy?"

It's not the first time a marketing stunt of EA goes awry.

In April 2009, the company was criticized for sending a number of media outlets a Godfather II press kit that included a very real set of brass knuckles, to promote their game based on The Godfather II. The snag: it’s illegal to own brass knuckles in a number of states.

At the E3 trade show in June 2009, EA angered Christian groups and confused journalists covering the event with the use of fake Christian protesters for promotion of its Dante's Inferno.

What are the main marketing mistakes EA made this time?

1. They only targeted male gamers
   
2. They made the incorrect assumption that everyone would understand the “tongue in cheek” and “good fun” spirit of the promotion
   
3. They did not properly addressing criticism from their fan base
   
4. They did not learn from past mistakes

It seems that EA is writing its own La Divina Commedia - Dante Alighieri would have been amused…..

How Freddo, an 80-year old frog, broke the mold - twice

On July 6, Cadbury launched its Freddo campaign, featuring Freddo’s first adventure: The Secret of the Golden Keys.

Freddo is the brainchild of Harry Melbourne, a chocolate mold maker at MacRobertson Chocolates, who told his boss in 1930 that frog-shaped chocolate would sell better than those shaped like mouse (the original concept). After making a sample and send to management, the marketing manager declared it a winner and history in the shape of Freddo, was born.

Eighty years later, more than 100 million Freddo chocolate frogs in a variety of flavors are produced in Australia each year.

On its 80th birthday, Freddo is hopping into cyberspace with a series of interactive stories and games designed to stimulate and educate children to mark the occasion.

Cadbury (who acquired the Freddo rights in 1965), stated: "We designed The Adventures of Freddo as a free website which aims to educate and entertain children in the digital environment, a medium this generation is so familiar and comfortable with, using a more modern version of the cheeky, loveable frog that their parents and grandparents grew up with."

But not everybody is charmed by Freddo. Activists against junk food advertising claim that it exploits loopholes in the self-regulation system to market chocolate to children.
There are currently three codes regulating the advertising of unhealthy foods to children in Australia:

• the Children's Television Standards that are part of broadcasting legislation;
• the Australian Association of National Advertiser's codes on advertising foods, beverages and on marketing to children;
• RCMI, which food companies started in January 2009

Cadbury (NYSE: CBY) admits that Freddo chocolates are part of its "pre-teen" product range, but says that the campaign itself does not feature any chocolate, is educational, and encourages an active lifestyle. Cadbury’s marketing motives are clear, and include launching Freddo internationally if he breaks sales records at home in Australia and New Zealand.

Cadbury obviously has a very good legal team on board. Since the Freddo character is a Cadbury trademark and there are no chocolate products showing in the animated films, the company does not appear to be breaching any rules in the various codes. Cadbury cleverly doesn’t actively market to children aged 12 (and under) and thus abides by its own action plan registered under the RCMI (Responsible Children’s Marketing Initiative).

Kate Watson, Cadbury’s spokesperson claims: "We're marketing to parents. Parents are the gatekeepers. Kids can't go on the website without parents registering the kids.”

Cadbury (and its legal team) must have been pleased when the Australian Senate voted down a bill down that would have banned junk food advertising to children.

Our 80-year old amphibian friend broke the mold trice, and for sure will keep on enticing the next generation of Australian kids - with the help of its parent Cadbury.

Marketing to the Twitterati - companies that tweet

It seems that global warming doesn’t endanger a new breed of animals: the Twitterati.

These are frequent Twitter users, whose life seems to consist of sending as much tweets and retweets as possible. When running out of tweet content (“still stuck in traffic”, “cannot find my left contact lens”), they retweet other people’s tweets. The “me” factor is so high on Twitter, that Sprint Nextel included a flock of blue twitter birds in one of its cell phone commercials (see illustration).

For those of you, who are not familiar with Twitter, think of a micro-blog. Instead of ample space to write your story (peppered with links and images) you have on Twitter.com a limited character length of 140. As one of my friends puts it: “it’s like writing text messages on your phone, only this time online in a blog."

Companies have also fallen in love with Twitter – big time. Just check out some corporate websites, and you will find “follow us on Twitter” at the bottom of the webpage. Companies embrace Web 2.0 with a passion, also since it makes them look good. But what exactly is Web 2.0?

Web 1.0 was a one-way communication from a company to the www-surfers using a static website. Web 2.0 is bi-directional; website visitors can send info to the company. At first mainly Web 2.0 websites were mainly online shopping sites. The next 2.0 wave consisted of web forms and blogs, followed by social networking communities. LinkedIn is one of the oldest, followed by MySpace and Facebook.

Enter Twitter, where you can express your feelings (or frustrations) in 140 characters or less. Is it a Good Thing for companies, or should Twitterati stick to “who-murdered-Michael-Jackson?”
Individuals can "Me!"-tweet about “going on vacation” or “don’t like my new sweater”. Companies however need to provide value. That’s the crux of the matter - any serious company must tweet about a product proposition. Many are too lazy and just put shortened URLs to their press releases in their tweets. If you are too much “Me!” as a company, you will be ignored by the Twitterati and not be retweeted.

What excites Twitterati and makes them to read a corporate tweet?

1. Lead for new jobs


2. Cool (free!) downloads


3. Hot news about the company linked to a current event


4. Great articles about an industry or area of interest (target your Twitterati!)


5. Links to interesting newsletters or magazine articles


6. Information about network/media events


7. Links to funny cartoons or clips


8. Links to great blog postings

To leverage Twitter, companies must be smart. They need to define their target group, offer tailored tweet content with a value proposition, and keep up the effort to maintain a Twitter presence.

A grasshopper’s marketing leap

Grasshopper, an 800 phone number provider for small businesses in the US, rebranded itself.

To advertise the new name (they were previously known as GotVMail) and brand, they grafted a clever marketing strategy.

They started with compiling a list of the 5,000 most influential people in the US. It included influential bloggers, journalists, celebrities, TV anchors, and CEOs (Pete Cashmore, Adam Ostrow, and Tamar Weinberg).

Then they created a package to be sent by snail mail consisting of real chocolate covered grasshoppers ( a wink to their new name) with a simple message and video URL. The URL linked to an inspirational YouTube video about how entrepreneurs can change the world.

The packages were shipped out by FedEx last May. Some of the recipients (Josh Lohensohn of CNET) posted videos online of themselves eating the grasshopper. The campaign created a lot of buzz, especially on blogs and Twitter.

Some data (source: mashable.com):

• 4,911% traffic increase from April to May 2009
• 144,843 video views with 162 comments
• 1,500 tweets
• 120 blog posts in one month
• Tweets from Guy Kawasaki, Kevin Rose, and Jason Calacanis
• 7 national TV mentions, including FOX

What are the success factors?

A sound concept
This was not just a renaming/rebranding, but a repositioning of the company. Needham-based GotVMail Communications LLC is a maker of communication systems for small businesses. They wanted to relaunch their company targeting entrepreneurship – a shift from being a telecommunications company to a company that helped entrepreneurs.

A theme that makes sense
The company chose the grasshopper to communicate the idea of jumping forward. Since grasshoppers can jump 20 times their own size, they nicely symbolize small businesses (their potential customers) that want to leap forward.

Flawless execution
The grasshoppers were farm-raised insects and dipped in chocolate. They were very professional packaged and clearly stated what was inside.

The front of the envelope said:
“Yes, these are real grasshoppers. Approved by the FDA of Thailand”.

On the back was written:
“You’re a risk-taker, a dream-realizer. What’s left to do that you haven’t already done? Eat a grasshopper. They’re farm raised, covered in chocolate and rich in protein. So, not only will you be breaking boundaries, but you’ll be eating healthy, too.”

The call to action was on the attached tag:
Entrepreneurs can change the world.Join the movement now!http://grasshopper.com/idea
Perfect marketing mix
This campaign combines a snail mail FedEx package with word of mouth (WOM) and social media. The landing page of the video URL made it easy for postings on Facebook, Twitter, YouTube and other sites using an AddThis widget.

Attainable goals
The Grasshopper campaign was able to achieve its main goals with a small budget:

• To get attention
• To hold interest
• To get people talking
• To be considered as a supplier

No word if PETA was among the 5,000…..

Corporate website 3.0 – Skittles brave jump into the marketing future

Skittles went where no candy maker has gone before – and launched a corporate 3.0 website.

Skittles are candy products, produced by Mars, Inc., and part of the Wrigley product line.

Mars spokesman Ryan Bowling told the Wall Street Journal, that the site was redesigned to better connect with its core teenage audience, which spends a lot of time using social media.

"The teen audience relies heavily on their peers for advice on products. This is a unique, unexpected way to engage and to be a part of the conversation."

How does this site work? The “homepage” of Skittles is a small banner that fixes itself on the top left of your screen. No matter which tab you click, the URLs remain www.skittles.com/xxx,
The tabs link to customer-generated content (Wikipedia, YouTube, Facebook and Twitter)

1. “Home” and “Products” link to the Wikipedia page with the product description

2. “Media” has two components: “Videos” that links to YouTube and “Pics” that links to Flickr

3. “Chatter” brings you to the Twitter page

4. “Friends” links you to a Facebook page

5. “Contact” is the only tab that connects to a standard corporate website – the contact form on the Wrigley website

6. “Other Gobbledygook” will take you to the copyright notice and legal disclaimer

7. The middle part is a dynamic banner. Once you click for more information, a new window opens with a dedicated website ( e.g., http://www.havemorefunds.com/)

It is the first time that I came across such a website 3.0 of a reigning consumer brand. Instead of Skittles reaching out to its customers, it allows them to communicate directly and in a highly visible way. There are some possible pitfalls and dangers though......

Does the website reach the target demographics?
To enter the site, you must first confirm that you are over 18. (Before able to login, you get the message: “Hold your horses. Before you can check out Skittles.com, you’ve gotta tell us your age. So spill it”. Aren’t most Skittles-consumers younger?

Is Twitter a good choice?
According to Peter Corbett, CEO of iStrategyLabs, there are no children on Twitter - the majority of application-users are between the ages of 18-49 years of age. Is Mars aiming for the parents of their child consumers or for a whole new demographic?

How are negative comments handled?
Is there a staff that monitors content and communications and that can handle damage control?

How does Skittles/Mars protect themselves and their customers from malware and Web 2.0 threats?
It is quite easy for cybercrooks to inject malicious code in any of the pages. (Michael Gray provides some great advise on his SEO blog)

What about SEO?
The site consists of an iframe with almost no independent content. Technically, Facebook, Twitter or Wikipedia are not visited, but the Skittles’ website pulls the content for you into an iframe.

How will it affect the overall Mars brand?
Did the the flood of obscene, racist, and otherwise tasteless tweets have an impact?

The website was launched in March 2009 and designed by agency.com.
According to agency’s executive director Chad Stoller: “It is a very bold campaign in the sense that they are letting consumers speak on behalf of the brand."

My personal take: I love the fact that Skittles embraced Web 3.0 and is brave enough to relinquish control. But it might too much unchartered territory with unpredictable and even uncontrollable results. I hope that Skittles will tell us how they fared – up till now, there have been no announcements or reactions from Mars or the agency. No matter what, I predict that this one will make it many MBA course materials and marketing handbooks.

In the mean time, all I can say is: chapeau!

Chinese Web Marketing – A case study from Money Cat

Money Cat Consulting is and Australian multi-lingual marketing company.
It provides innovative marketing solutions for corporations wishing to reach Chinese communities in Australia and abroad.

They launched a Chinese-language financial & investment website (http://www.moneycat.com.au), to reach Chinese investors.

To reach out and acquire members, they used various marketing & PR tools – with different levels of success.

When reaching for the Chinese market, these are the lessons that we can learn from Money Cat.

• Using newspapers is very expensive with a very low response rate. Especially advertisements have little effect, but some advertorials can generate a good level of interest depending on the specific product.
  
• Web banners can work sometimes, but they usually have a limited exposure period. It can be a good tool for branding, but Chinese web users do not click a lot on web banners anymore.
  
• Google Adword-campaign is not effective for reaching the Chinese market – the favorite search engine is Baidu. Google Adword and Yahoo keywords do work in Taiwan and Hong Kong, where English is is predominant Web language.
  
• Taiwanese websites are effective as a marketing channel, since many Chinese web users also look at Taiwanese websites for information. Especially articles on consumer goods and finance are popular.
  
• Blogs are highly effective, it generates consistent traffic. Chinese web users love to read and write blogs. Money Cat sent an article to 200+ blogs across Asia (and Australia), and saw their traffic grown tenfold in a month. However, it is important to target the right blogs for the right topics.
  
• Videos and Audios can be effective, but bandwidth is still a problem. Broadband infrastructure is not yet fully established across China, and quality is often distorted. Money Cat opted to upload video clips on Taiwanese and Hong Kong websites that can also be accessed by Chinese viewers.

Mayo de Cinco Marketing Mania

Cinco de Mayo is the celebration of the victory of the Mexican people over the French army in the La Batalla de Puebla on May 5th, at Puebla, Mexico.
(Puebla is 100 miles east of Mexico City). It should not be confused with Mexico’s Independence Day.

The reason why Cinco de Mayo became such a national celebration in the US is a nice lesson in marketing.

It started in 1966, when Coors Brewing Co. was facing a crisis. Chicano activists began protesting against the employment discrimination against Latinos working at Coors breweries and called for a boycott of Coors beer. Not exactly the corporate image you want for your company.

Coors did some brilliant crisis marketing – they started sponsoring Cinco de Mayo. It served multiple purposes: it kept them on the good side of their ethnic workforce; they kept their Latino customer base, and they bumped up their May beer sales to college students.

That’s the reason why Cinco de Mayo celebrations mainly take place across the U.S. and only locally in Mexico. The US-based Hispanic advertising community uses it as great promotional opportunity for their clients – promoting a wide range of products, including alcohol. Since Cinco de Mayo has been warmly embraced by the US population as a whole, there are now marketing campaigns galore.

A small selection:
1) The Food Network tells its consumers how to get ready for Cinco de Mayo – with a Rachel Ray fajita pan and a corn zipper
2) The Fine Living Network sends their customers 10 margarita recipes
3) Maxim magazine invites its readers to pick their favorite Mexican hottie

This year, Cinco de Mayo marketing activities got a setback. Many Cinco de Mayo festivals got canceled across the U.S. because of swine flu. Unfortunately, anti-Mexican sentiment also reared its ugly head in some places.

Similar to St. Patrick’s Day, Cinco de Mayo has become a marketing tool for many companies – especially alcohol companies.

Rest me to wish you all a fun Cinco de Mayo, but please be responsible - don’t drink and drive!
(illustration by courtesy of TMN).

How do you promote a tourist destination in time of recession? By linking it to a global job hunt!

To promote their Great Barrier Reef, Tourism Queensland launched in January 2009 a highly successful marketing campaign to get media exposure. They announced that they were looking for a caretaker for the Great Barrier Reef. Job applicants were cordially invited to apply for their Barrier Reef “dream job”.

According to the especially created website www.islandreefjob.com, the “best job in the world” is Island Caretaker, living on the Hamilton Island. The job is for 6 months, with a salary of Euro 10,000. The real work is to create weekly blogs, keep a photo diary, make video updates and conduct ongoing media interviews to promote “the wondrous Islands of the Great Barrier Reef”.

With wonderful tongue-in-cheek humor, additional duties are listed as: feed the fish (since there are over 1,500 species living there, they pretty much feed each other), clean the pool (an automatic filter is in place) and collect the mail (by joining the aerial postal service).Applicants were invited to apply by sending video – close to 35,000 respondents from 200 countries followed up. To make sure that the videos were not boring, the advertising agency (CumminsNitro in Brisbane responsible for the campaign) posted a (fake) video showing “Tegan” (one of their employees) getting a tattoo of the Great Barrier Reef to show her devotion to the tourist destination.

The focus will now turn to short-listing the Top 50, which will be announced on the Island Dream Job website on Tuesday, March 3. The Top 50 will be narrowed down to a final 11. In a clever marketing gimmick, 10 candidates will be short listed by Tourism Queensland, while an 11th 'wild card' applicant will be chosen by popular vote, thus guaranteeing ongoing media coverage. These eleven applicants will be flying to Hamilton Island in early May 2009 to take part in the final selection process. The final selection will be announced on May 6.

The applicants neatly represent the targeted tourist population. The highest number of applicants came from the United States, followed by Canada, Great Britain and Australia. Applicants are all ages, nationalities and come from all walks of life – including writers, tour guides, marine biologists, environmentalists, students, bloggers, mums and dads and retirees and celebrities such as an Amazing Race winner, a New Zealand travel show host and a former Young Australian of the Year.The main question remains if the costs justify the results.

One this is already clear – it put Hamilton Island firmly on the (media) world map

Legal oversight, marketing blunder or a stroke of marketing genius?

On Election Day last November, Starbucks launched a one day marketing campaign. It offered a free 12 oz. drip coffee to anyone who voted. However, this is illegal in the US. Federal law prohibits payment of money, goods or services in return for voting. Starbucks advertised the voter promotion on television during the comedy sketch show Saturday Night Live (for a brilliant spoof of the coffee chain click here).

Starbucks did some quick crisis management issued the following statement:
“To ensure we are in compliance with election law, we are extending our offer to all customers who request a tall brewed coffee."

As a result the wires buzzed with, "Did you hear about Starbucks?" which went hand in hand with: "Do you think Obama will win? "

Theis kind of viral buzz is a marketer's dream. Starbucks profited big time from their freebie:

• Many that came in for the free coffee left with purchased sandwiches, cookies or muffins.


• Others opted to upgrade their free plain coffee for a fancy grande mocha frappuccino latte or espresso.


• The Starbucks brand was plastered all over the media

The question remains if Starbucks made an honest mistake (in which case they should fire their legal advisor) or if it was a clever marketing ploy (in which case they should promote that marketing professional to a senior management position).

Quite likely, it was a case of an eager marketing beaver running off with a campaign without clearing it with legal first. If that is so, Starbucks presented us with a wonderful example of effective crisis management.

Although it turned out great for Starbucks in the end, I strongly advise all companies (regardless of industry or location) to run all planned marketing, sales or PR campaigns via their legal department or advisor before launch. This is even more critical if the company operates internationally.

PETA’s rebranding of fish – will its Sea Kitten marketing campaign work?

PETA is known for its often provocative and controversial campaigns, such as comparing factory farming to the Holocaust.
In its latest campaign, it tries to convince the public that fish are capable of showing physical affection, of feeling pain and of grieving when their companions die. They are in PETA’s opinion not different from pets such as dogs and cats.

Since fish are not furry and cuddly, PETA tries to change the public image of fish from slithery and slimy to cute. Similar to happy Disney characters, it launched a website featuring “Finding Nemo”- like Sea Kittens. Aimed at small children, the website allows its visitors to create and name their own Sea Kittens. There is also a section on the website with (rather scary) bedtime stories trying to get the PETA point across. One of the stories read: “Tony the Trout is the smartest Sea Kitten in his school. Already litter-trained at 2 months old, Tommy went on to double-major in neuroscience and environmental studies at Clamford University, eventually graduating with honors. When Tony is caught and fed to a precocious young child who, having eaten one mercury-filled sea kitten too many, falls to the bottom of his class, the irony is not lost on him.”

A spokeswoman of PETA explained, that "If everyone started calling fish 'Sea Kittens,' they'd be a lot less likely to violently kill them for food, painfully hook them for 'sport,' or cruelly confine them to aquariums. When your name can also be used as a verb that means driving a hook through your head, it’s time for a serious image makeover.”

PETA kicked off its marketing campaign at the beginning of October 2008 at a school in Fayetteville, NC. As a gimmick, a huge Sea Kitten welcomed the children, explaining that Sea Kittens are just like puppies and kittens and should not be eaten. As part of the marketing campaign, PETA launched a petition calling for the US Fish and Wildlife Service to abandon its backing for fishing (or Sea Kitten hunting in PETA’s language).

Will the campaign work? Doubtful…….

How I see it, the main “mistake” of the campaign is its target group. PETA wants to stop fishing, which per definition is an activity not conducted by totlers. The best what PETA will achieve is changing the eating habits of the little ones, which will disrupt a balanced diet. It is doubtful that school cafeterias serve fish as a whole, including heads and fins. It’s hard to make the connection between a fish finger and a real fish/Sea Kitten. Fish is also a main food source for many communities, and is a great source of omega-3 fatty-acid which helps reducing the risk of breast cancer.

Furthermore, no matter how you look at it, fish are just not cute! Even the biggest dog or lion has a high hugging factor: nice fur and two eyes looking straight at you. Fish have pointy heads with two large eyes on each side, staring unblinkingly at you (whether dead or alive – as we all know from eating trout in restaurants). They are scaly and cold-blooded, which makes it not exactly appealing to touch. Being cold-blooded and living in water it can hardly strive to become our favorite pet. It is also difficult to relate to the mood of fish – how do they show that they are unhappy? They don't growl, purr or bark... (OK, they do show anger, if I rememberJaws or Moby Dick correctly) And there is the “fish-eats-fish” angle; big fish eat shoals of little ones, which don’t score high on the cuteness scale.

The main result of the current campaign is its high entertainment value. Apart from creating our own silly Sea Kitten (see illustration), many of us are making relentlessly fun of PETA’s Sea Kitten in articles and on blogs. It downgrades the campaign to a Jessica Simpson-like gaffe level, similar to her "Is this chicken or is this tuna?" question while looking at a can of Chicken of the Sea tuna on her reality show. As Michael Pearce of the Wichita Eagle pointed out in his hilarious article, calling fish “Sea Kitten” needs some serious rewriting. He pointed out that according to the New Testament; Christ fed the 5,000 with five loaves of bread and “Sea Kittens”; not to mention the fact that several of his disciples were Sea Kitten hunters. Oy!

Marketing during economic turbulence

In times of an economic recession (and especially during a depression) marketing is the business area that is normally hit hard. When companies want to cut cost or downsize, it’s to the marketing budget, expenses and department they look first.

However, this is a strategic mistake. To adapt to the new economic reality, companies need their marketing professionals to analyze their current market position and to find out what their best strategy to survive will be. Marketing is uniquely positioned to analyze the changes in customer behaviour and advice on the optimal way to reach them.

To give an example, luxury research firm Unity Marketing interviewed 1,200 affluent consumers (average income $209,500) at the top 20 percent of U.S. household during October 3-8, 2008 about their mindset since the bail-out of Wall Street. The result shows that the respondents are overall spending less on luxury items. However, they do splurge on those items that they really want, even increasing their spending for those targeted luxuries. The way they shop has changed as well – to resist temptation, they avoid stores. Luxury store owners have to come up with new marketing and sales techniques to lure these customers back, such as cash-back gift card sales as Bergdorf Goodman is conducting.

Analyze your company image and overall performance
Any crisis, especially one of the current magnitude that is riddled with insecurities, forces companies to take a long, hard look at themselves. They need to evaluate their corporate vision and mission – are they still the same ones that are in the annual reports and the corporate website? Are they still in sync with the current times and new reality or is it time to refresh or reposition? Many high-tech companies launched a technology that they wanted to bring to the average company or consumer. Many of those technologies and products never took off. Computerworld published an overview of the 21 biggest technology flops, among them ebooks.

Even when a company is doing all right now, what are its survival chances? Will its customers allocate more, less or the same budget for items such as Internet security?It might be time to kill some scared cows, even (or especially) if they are the brainchild of the owners. Apart from using your in-house marketing experts, the best option is involving an external strategist to get a clear view.

London-based Financial Times is building steam, especially in the US. Any crisis is always good for the media, since the public is information-hungry. FT did well by the latest “if it bleeds, it leads” - its September newsstand sales rose with 30% in the US and 20% in Europe and Asia. Registered users of www.ft.com rose in one year from 30,000 to 750,000. FT also advises media companies to bring out their newspaper in several formats, push equally to enlist hard copy customers and online subscribers, using tools such as RSS. FT is also in favour of video, based on more than 1 million views a month.

Build new marketing strategies, be creative
One the main drives of survival is creativity – the ability to adapt to new circumstances. Based on the analysis mentioned before, it might be time for the company to reexamine the current offerings and adjust the current suite of products or services. There might be “sleepers” among them – a product of service that is now less-promoted, but is more affordable and consistent with the overall brand.

Based on the advice of the in-house marketing experts, it might be time to make a bold move and sell your product in new markets. Based on the reshuffling of the economic landscape, there will be emerging market niches and customer groups and demands not identified before. Clever companies grab these opportunities – being an early market entrant always pays off.

A recent example is the Australian Tourist NT which is concentrating on local visitors, since the number of international visitors is dropping. "Certainly we would anticipate we might have some softening in international arrivals, so our focus will be to further strengthen our domestic market. Tourist NT stated that it will “certainly continue investing in our marketing activities with partners to ensure that we have a sustained presence in the market to do what we can to ensure we get people visiting."

Communicate with your employees
During economic turmoil, employees are worried about their jobs. They want to know (and have to right to know!) how healthy their company is and if there are any plans in pipeline for cutting costs. Employees are the most valuable asset a company has, so it is foolish not to leverage this main asset!

A new research released today by global public relations firm Weber Shandwick shows that 86% of the respondents see their senior executives or management as "believable" and "trustworthy" sources on the topic. Sadly enough, more than half didn’t hear anything at all from the company leaders.

Don’t cut your marketing budget
The first thing that most companies do when times get tough is cut their marketing budgets. The recent Bellwether survey, published by the IPA, found that Q3 annual marketing budgets have been cut at a record rate as the economic crisis weakens business confidence. Key budgets hit are main media advertising, PR, events sponsorship and market research.It is a strategic mistake to ignore your customers when your competitors are still out there approaching them, as Post found out. In 1929, Kellogg’s and Post were in a neck-and-neck race for the breakfast cereal market. Unlike its rival, Kellogg's continued to advertise through the Great Depression, gaining a position of market dominance that the company still enjoys today.

Instead of cutting your marketing budget, look at your marketing mix and communication channels to your customers and readjust. Instead of going to a tradeshow, you might opt for more SEO and PPC, conduct more online campaigns, or increase the frequency of your corporate newsletter.

Avoid cutting your prices
In a time when customers become more conservative in their spending, it is a lower price that will sway them to purchase, but their need for the product or service. Impulse buying is replaced by ROI buying. Slashing prices for consumer goods can lead to cheapening your brand, which will result in long-term brand image damage.

Again, marketing professionals are uniquely placed to analyze how the current mixture of price and product/service is perceived by the customers. Adjustment to the overall marketing strategy might be needed. If a company is focusing too much on one small market niche with customers most hit by the crisis, it might want to branch out.

Before adjusting prices, analyze all of the elements of the marketing mix and make sure to fully understand what drives current and future customers.

Pamper your customers
As outlined above, customers will be driven by quality and service, and less by the actual purchase price. Customers have to feel good with the product or service itself, but also with the company that provides it. Giving customers extra attention pays off big time. In tough times self-esteem suffers, and companies that care about their customers will maintain existing customers more easily as well as build long-term brand loyalty.

A recent example is investment firm T. Rowe Price that began running a new ad campaign in the last two weeks, with the headline “Confidence.” The campaign ran in the Financial Times, The New York Times and The Wall Street Journal, communicating that “ultimately, there's one thing that will see our investors through these unsettling times ... confidence.”

Is the SEC killing the press release – not likely!

On July, 30 the Securities and Exchange Commission (SEC) published its recommendations for public companies in their efforts to comply with the securities laws “while developing their Web sites to serve as an effective means for disseminating important information to investors”.

It sparked a hot debate among IR and financial PR professionals, who are trying to figure out what the impact is. Many IR/PR agencies make good money writing and distributing press releases on behalf of public companies. Since a public company must announce any change in ownership and significant deals as well as notifications, earnings, profit warnings etc. to the public at large, the financial press release was the only way to go.

By opening the possibility of posting all of the above on a corporate blog, it could mean the “death of the press release” as one PR professional put it. IR and PR circles were abuzz with speculations how the major new distribution agencies such as PR Newswire would take it.

Public companies have been weary of using the Internet as a public space for the dissemination of material information, not in the least since they need to comply with Regulation Fair Disclosure (Reg-FD) and Sarbanes-Oxley (SOX) rules. The SEC is now opening the possible for companies to adhere to regulatory policies without using some of the more traditional methods such as financial press releases. If public companies would opt en masse to use the Web for information distribution, particularly for earnings disclosure, it would have a huge impact on IR and financial PR agencies as well as the newswires.

Thus far, most companies have been leery of using websites to provide investors and other audiences with regulated information, such as earnings.
Beth Harbin, director of PR for Southwest Airlines, is hesitant about changing its current system with PRN, though she acknowledges the positive benefits, which have helped carve out a place for earnings on the airline's website.
"Since we started our... site, we've always had a vision of making it extremely robust," she said. "We currently have earnings up on our website, as part of a system developed through [PRN]," she said. "It also puts that release right in the hands of the reporters who need it."

It is at this moment not clear what the full impact will be. The SEC document seems to indicate that the SEC wants to open the use of public companies’ websites as part of the whole process of disclosing information in accordance with the Regulation FD.

The SEC stated that it “believes that company disclosure should be more readily available to investors in a variety of locations and formats to facilitate investor access to that information. Investors are turning increasingly to electronic media and to company and third-party websites as sources of information to aid in their investment decisions."

It seems that the SEC does recognize a company website as a channel of distribution. The information must be disseminated in such a way, that it is available to the securities marketplace in general.

How can a public company guarantee that? By taking more affirmative steps so that investors and others know that information is or has been posted on the company's website.
Trying to avoid the costs of issuing a financial press release (of which many companies complain), would not only incur alternative costs (e.g., mailing list and distribution + follow up, SEO, administration, legal & accounting department) but could also jeopardize compliance with SOX.
What would therefore be the best option for public companies to ensure the availability of their information to the investor and securities communities? Correct, by sending out their announcement as a press release!

Using (only) their website for announcements will be risky. Companies will need to consider whether the postings on their websites are “reasonably designed to provide broad, non-exclusionary distribution of the information to the public.” This would entail serious organic SEO or in-house website management with tracking and reporting capabilities.

Another issue is the requirement that the website's capability must meet the “simultaneous or prompt timing requirements for public disclosure once a selective disclosure has been made." This puts a strain on a company’s resources. For practical reasons alone, sending a financial press release via the newswire remains the preferred option, since it will be pushed to Yahoo Finance, MarketWatch, MSN, CNNMoney, CNBC, Factiva, Forbes, Fox Business News, Lexis/Nexis, sites operated by major financial institutions and trading firms, blogs etc.

It relieves the public company from the burden to determine whether its website qualifies as a "recognized channel of distribution" and whether web posting achieves simultaneous disclosure. If you are the IR Officer, CFO, CEO or Legal Advisor of such a public company, you would have your work cut out for you, and the SEC doesn’t supply comprehensive guidelines or instructions to that effect.

The SEC's Advisory Committee on Improvements to Financial Reporting states in its final report: "Of course, the increased use of corporate websites is not intended to affect the valuable role that newswires and other news vehicles play in disseminating important company information to investors and the public."

Despite the fear of many IR and PR professionals – the SEC is not killing the press release, it just hands us another IR & PR tool.

Branding Rutland – a lesson in branding a small town

Branding is an art – it tries to capture the heart and soul of a product, service or organization, making it highly recognizable if not unforgettable. Brand loyalty is the key to successful companies such as Proctor & Gamble, Unilever, Coca-Cola, and General Motors (to name just a few).

Countries and cities are entities trying to brand themselves: “I love NY” and “What goes on in Las Vegas, stays in Las Vegas” are two slogans that made the cities they are connected to memorable.

Smaller cities and towns have a harder time to make an impact. That makes Rutland, in the US state Vermont, such an interesting branding case.

Rutland’s city officials, regional development officials and the local business community want to put the city (and region) on the tourism map. They are looking for a slogan that sums up the finest qualities of the city, its economic potential and the tourist attractions. It wants to emphasize that it is within easy driving distance (e.g., from the Tri-State area). However, the slogan must be short enough to fit on a bumper sticker.

Not so successful past attempts included:

• “The Crossroads” (which sounds like a rehab center to me)
• "The heart of the "Marble Valley" (which doesn’t make sense if one doesn’t know where Marble Valley is located)
• "City for Weddings" (isn’t that Las Vegas?)
• "Rut Vegas" (which doesn’t have a nice ring to it)

It’s tough to brand a city or town. When it comes to branding, being small and relatively unknown doesn’t help. Lack of substantial marketing and advertising budgets is another restraint.

To brand properly, we must first look at Rutland’s strong points:

• Downtown shopping, dining and theatrical opportunities
• Pastoral settings of the rural communities just beyond Rutland's borders
• Lakes, trails, rivers, ponds, ski slopes and other recreational fun within easy driving distance from the big cities
• Part of the highly popular Vermont

The branding guru taking on the Rutland branding challenge is Peggy Bendel, senior vice president of Development Counselors International, who worked on the massive "I love New York" ad campaign, pointed out that branding a small city like Rutland takes a different approach. She recommends that Rutland adopts a catchy slogan and logo that sums up Rutland's best qualities and is easy to remember. The idea is for the city is to change the way visitors – and residents – perceive the community.

She makes an interesting point by stating that small town branding only works if everyone from the Chamber of Commerce and municipal officials down to small business owners and the average Rutland citizen can identify themselves with the slogan and logo.

Branding comes with a hefty price tag - consulting fees, marketing expenses and advertising are roughly $100,000. Rutland can apply for a state grant to be reimbursed for the consulting costs. Needless to say, research into attitudes, impressions and associations with the community are essential for branding success.

Rutland organized a preliminary meeting between a consultant company and about 20 regional and city commerce and development officials, city officials, representatives from recreational nonprofit groups, business leaders and residents. No suggestions for a new slogan or logo were brought up, but the qualities of the community were discussed extensively along with some of the challenges it faces including concerns about overcoming what some perceived as the main public perception problem: the name of the city and county, Rutland, is perceived as unflattering. However, on the upside – it’s easy to remember and spell, which is in our current Internet/Google age a must!

Two regions to the north and south of Rutland have successfully launched rebranding campaigns.

Burlington reintroduced their 1980s slogan "The West Coast of New England." It resulted in a high volume of downloads of the rebranding toolkit, complete with logo, slogan and other materials, coupled with T-shirt and sweatshirt sales bearing the rebranded imagery. The positive feedback from the public is also a sign that the rebranding is successful. The Chamber of Commerce stated that it only paid $30,000 for the consulting fee and left the advertising left to grassroots efforts.

The Green Mountain Regional Program (in the south of Bennington County) successfully concluded it grassroots efforts by introducing its "The Shires of Vermont” brand. According to the group's regional marketing coordinator, the slogan comes from Bennington County's unique designation as the only county with two shires that served as judicial districts in colonial times.

It will be interesting to see how the rebranding of Rutland will unfold.Until then, I would like to finish with a great quote from Bill Baker:“A brand is a promise - whatever you project, you must deliver on it and you can't have variations with everyone doing their own thing. The message has to be the same."

How will the current recession impact Public Relations?

Whether the current recession is real or perceived (depending who you listen to), the PR industry is looking at the impact it is going to have.

Possible trends to watch:

When media professionals will be laid off or move into other areas, PR professionals (both in house and at the agency-side) will lose established relationships – one of their core strengths.
Especially agencies will be hurt by contacts at leading magazines and news outlets that will have no more business value, and need to be replaced.
This requires heavy investments in time and effort.

The media organizations that are sizing down (also due to less advertising income) will have to figure out who will be cover their different market niches.
They might opt for merging some of topic areas (e.g. lifestyle and health) or cutting some areas in an effort to go back to their core business.
PR professionals might find that they cannot pitch their stories anymore, since that specific technology or topic is not covered by that specific media organization anymore.

Both media organizations and PR agencies might start cutting down on their high-level, high-salary employees and replace them with junior or entry-level people who will learn on the fly. This will come at a price – lower quality and less focus.
If this trend leads to fewer people and more newbies, readers might punish a media organization by canceling subscriptions. Some media outlets will close down, which will give PR agencies and professionals less opportunities to pitch their stories.

The competition for placement in the remaining media outlets will increase, and PR agencies will have a tough job explaining to their clients why they cannot be covered by certain news media.
In this highly competitive market, the strongest and most creative PR agencies and professionals will survive.
The media will be looking for quality to keep a competitive edge and to compensate for the loss of in-house resources. Receiving ready-to-print top-notch articles will help the news media to compensate for the lack of experience of newbies.

So is it all bad news? No, not really.
It could benefit experienced copywriters, editors, journalists working as freelancers. It could also make it easier for seasoned PR professionals to enter the market as an in-house PR person or at a PR agency.
In the US, being fluent in Spanish as well will become a major asset. It will extend the reach of a company or PR agency significantly.
For Europe, being multi-lingual is the key. Since most of the wealth in Western Europe is concentrated in the Germanic countries, German is the additional language to go for.
Fluency in French not only secures coverage in the French media, but also in all francophone countries.
Don’t forget: no matter how fluent journalists might be in English, they still have to write their articles in their native language……..

The invention of niche marketing - breaking down boundaries in the process

We all take it for granted – niche marketing.
But do you know when it started? And with which market segment?
Niche marketing is the result of the Coca – Pepsi consumer war. The so-called “cola wars” between Pepsi and Coke began in the late 1930s when Pepsi started making gains in the market at the expense of Coca-Cola. In 1940, Pepsi-Cola Co. was in fierce competition with Coca-Cola Co.
In that year, President Walter S. Mack of underdog Pepsi decided that it was time for an innovative marketing strategy and go for the Afro-American dollar.
He decided to target black consumers with a black sales force – hence the concept of niche marketing was born.
A smart move indeed - the market segment was worth an estimated $8 billion at that time.

Between 1940 and 1952, a team of 12 black salesmen (sorry, no saleswomen yet…..) worked as Pepsi’s “special markets” sales team.
When Pepsi hired its first black salesman, Herman T. Smith, is was so groundbreaking that the New York Times mentioned it in their issue of March 18, 1940.
The sales team got a lot of media coverage from black newspaper such as the Chicago Defender. They had (correctly so) celebrity status. They were perceived for what they were: fashionably dressed and confident sales professionals.

Unfortunately, WW II and the related sugar shortage (no Diet Pepsi in those times) negatively impacted Pepsi’s business operations, including the sales team.
After the war, the charismatic Edward F. Boyd (1914-2007) took charge of the sales force. Multi-talented Boyd was a U.C.L.A. graduate, a trained singer and dancer, and actor.
Before joining Pepsi, he worked for the Screen Actors Guild, government housing programs, and the National Urban League in New York.
He became one of the first black executives in corporate America, developing a marketing strategy seeking brand loyalty among African-Americans.
His special-markets campaign featured some of the first black professional models, including a young Ronald H. Brown (1941-1996) who is shown in the foreground of the image.
(Mr. Brown later became the U.S. Secretary of Commerce, serving three years during the first Clinton Administration).
For the first time in marketing history, African-Americans were portrayed in advertising as stylish, fun-loving, middle-class consumers living the American Dream – in sharp contrast with the stereotypes normally used (such as Aunt Jemima, Uncle Ben).

Boyd’s marketing success is especially astounding considering the many obstacles he encountered. In the segregated South, his salesmen could not stay in hotels, so Mr. Boyd had them use Pullman sleeping cars on trains. This also allowed them to eat in their compartments and not in segregated dining areas.
Although his sales team was better qualified, it was paid less than their white counterparts at Pepsi.
Within Pepsi, even self-identified liberal Northerners (including Mack) used egregious slurs.
In 1949, Mr. Mack told 500 bottlers at the Waldorf-Astoria Hotel that he no longer wanted Pepsi to be known as a *black* drink. Pepsi also continued to run racist advertisements.

Despite all the odds, the salesmen succeeded in boosting Pepsi sales in every area they marketed in. For example, they forged a 13% increase among accounts called in Louisville, KY.
Unfortunately, corporate support for this special sales team faded after Mack left Pepsi in 1950.

With the creation of the special sales team, Pepsi and Boyd not only invented niche marketing, but also broke the color barrier in the US business world.
It opened the way for Indian-born Indra Nooyi to become CEO & chairwoman of Pepsi.