Saturday, April 25, 2009

{Electrolyte Wars}

Last week PepsiCo sued Coca-Cola for false claims that the new Powerade ion4 sports drink is more complete than Gatorade. BevNet recently posted this article following the suit. 

This high-profile case has highlighted the importance of ad claim substantiation in competative warfare marketing. A brand's marketing and legal teams must work seamlessly in the planning of such an attack to be able to withstand critical challenge. Once the research process is started, everything is discoverable. If challenged, all research and internal communication that supports the claim has to be shared in its entirety with the networks and competition. 

Between 1999 to 2001 I worked for Papa John's as the VP of Marketing and Operations on the marketing aspect of "The Pizza Wars: Papa John's takes on Pizza Hut." I learned very quickly that this can be a very effective tool for a brand to generate trial.  If you claim to be better than the best or the leader, of course you make a strong case for the consumer to try your brand.

But here is the risk.  When the consumer tries you based on a competitive ad mentioning your key competition, the consumer has a high expectation of your brand.  Repeat business happens only when the consumer's expectations are fulfilled.  If a brand's experience falls below the expectation, the consumer feels that they were mis-guided and the brand falls in "been there, done that, and never falling for it again" category.  It is very tough for a brand to come out of this hole.

Earlier, competitive advertising was restricted to within a category, where an aspiring  brand went after the category leader.  But with the economic pressures impacting the macro aspect of the industry, many a time a brand is going after anywhere and everywhere it can source business from.  Otherwise, how does one explain Dunkin' Donuts going after Starbucks or McDonalds going after Starbucks? 

Wednesday, April 8, 2009

{Existing Customers are Key to Survival}


ZenMango's restaurant focused arm, Restaurant Marketing Group, was featured in Nation's Restaurant News this week for their recently published 2009 Restaurant & Consumer Trends report. Click here to read the article and find out what Julia Roberts in Pretty Woman has to do with overcoming some of 2009's biggest obsticals, like keeping current customers active.

Thursday, April 2, 2009

{Follow Us!}

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Wednesday, April 1, 2009

{Marperations: Marketing and Operations}

The present state of the economy has created an environment in which business strategies will either sink or swim, depending on ability to adapt. As I consult with a variety of companies during these down times, attention is being called back to the core structure of these brands. Marperations is a key piece to this evolving puzzle.

In my corporate days, I held the unique position of VP of Marketing and Operations Services for Papa John’s International. While there, I tested the science of Marperations in this highly competitive environment and proved it robust. It is based on sound principles and has produced great, long-term value for the company. I have to admit that it took years of practice before I even realized the need for a name that connects both.

Marperations is built on five universal truths:

  1. Every customer interaction – which is usually in the exclusive domain of operations – is actually marketing to a significant extent.
  2. Every advertising campaign – which is usually in the exclusive domain of marketing – sets the expectation that governs every sale and is therefore in the operations realm.
  3. Linking marketing and operations is critical to presenting one unified message to the customer. This occurs from the start of the marketing communication to the actual sale of the product or service.
  4. The better a company’s operations run, the easier it is to market its product or service.
  5. The better a company’s marketing runs, the easier it is to perform the business of operations.