Archive for the ‘Case Studies’ Category

The BlackBand viral marketing campaign

Saturday, April 17th, 2010

Case study: Blackband project

Owner: Camacho Cigars, Authors: Dylan Austin, Gianni D’Alerta

Background/Introduction:

Before we started this project we planned and built the following two sites for Camacho cigars – www.camachocigars.com and www.socialcigar.com (at first we did not reveal that Camacho was behind this site). Through the two sites we built a subscriber list of 4,500 people in less than one year. Since then we have also built www.room101cigars.com, and we are currently working on a new revolutionary social networking platform and corporate site for Camacho Cigars/Davidorff.

Kickoff of the BlackBand project:

To start off, here is an excerpt from the press release, post project:

“The campaign objectives for Camacho included the creation of an engaging, opt-in viral marketing campaign, a successful permission-marketing opportunity as an outlet to sample yet to be released products. A four-part web-series was created without mention of Camacho until the final “reveal” episode. The viewers followed the satirical Independent Cigar Review Bureau, a fictional agency, whose sole purpose was to educate the world about cigar selection, as they used humorous, guerilla-style tactics to enlighten three characters that represented the most common cigar misconceptions”

Process:

  1. We launched the site with this page: http://www.blackbandproject.com/home-temp/
  2. We blasted Camacho’s mailing list of 1000 and the social network we created while I was at Propeller of 3500 people, not as Camacho but as the fictional company. The amazing thing was that the idea was so interesting that we had a very low spam report.  We also ran rich media banner ads that actually played a trailer of the project on the websites the banners resided.
  3. Once the person signed up they would get one episode a week that would build upon the myths and misconceptions of cigar smoking. The Buzz just keep mounting… people passing the links to their friends… it was huge… in the online cigar world.
  4. After they registered they immediately received their first “mission” http://www.blackbandproject.com/d57s-1/
  5. A week after that http://www.blackbandproject.com/6ku6-2/
  6. A week later http://www.blackbandproject.com/hr4s-3/
  7. And then the conclusion http://www.blackbandproject.com/b7x3-conclusion/

Results:

  1. We gained 15,500 new subscribers! With that permission to market to them anything in the future. They are already expecting more from Camacho, and we won’t disappoint them.
  2. Every cigar website was buzzing about the project, we even got more hits on our Black Band Project site in one month that Cigar Aficionado.
  3. After the last video was sent… a month later people got 3 cigars in the mail. So for a whole month, every week… the conversations where about the black band project. Then when the cigars shipped, another huge buzz.

Another Excerpt:

From day one, the campaign captivated the cigar industry and generated sweeping buzz across the country, with thousands of cigar enthusiasts discussing who was behind “The Black Band Project” on social media outlets, including Twitter, Facebook, and cigar-industry message boards and blogs.

End results:

  1. 15,000 leads
  2. 4,000 people got the cigars (people who watched all the videos)
  3. 15% overall sales increase after the launch of the new product.

Marketing in 2010: How and why Amazon (and everybody else) plans to be your new best friend

Friday, April 9th, 2010

You’re up and running, you have clients returning your calls, customers coming in the door or adding product to their shopping carts on your site, and you look around at the economic landscape and are at least momentarily relieved to be able to say “I am doing OK.”

Where do you go from here?  What more can you learn?  Although your products are ingenious and your marketing efforts stellar, hard as it may be to believe you haven’t already conceived of every Great Idea.  We all need to routinely challenge our thinking so that we continue to leap forward, we need to break out of the borders and assumptions we’ve always held about our company and our industry.  So occasionally this year, Kompani Group is going to talk about things we can learn from the most successful companies in other, completely unrelated industries.  Marketers in online retail have much, much more in common with traditional retailers than the few issues of format that set them apart.  And as for size, your revenues and budgets may have many more (or many fewer) zeros at the end than ours, but the fundamentals are identical:  getting our clearly defined message in front of customers and then delivering satisfaction.

There are brick-and-mortar retailers with broadly acknowledged reputations for superior service – been to Nordstrom or an Apple store lately?  Is there any reason why a retailer serving the online world can’t develop the same kind of reputation?

The question occurred to me this morning because I received another e-mail message from barnesandnoble.com.  “Chris,” it began, “you bought the last book written by so-and-so.  His newest novel will be released next month and we’d be happy to hold a copy for you.”  How cool is that?  (And equally important, how simple for them!) Although we know it’s just data manipulation, it FEELS incredibly personal.  “Somebody” at Barnes and Noble knows and uses my name, remembers what I’ve bought there before, and figures out what my previous purchases can tell them about my tastes and interests.  They’re my friend.

The principle is the same (though not quite as proactively executed) at many of the large, successful sites:  Netflix recommends movies to me based on what I’ve watched and rated before, and the behemoth Amazon suggests both new items that fit my profile and companion products that other customers like me have bought.

Is this difficult?  Absolutely not.  Every one of us has the same data base of customer descriptives and purchase history.  Not very many of us use it to anywhere near its optimal marketing capacity.

Let’s look for a few minutes at a retail success story that has been widely studied:  Starbucks.  In its off-line business, what does Starbucks sell?  And how in the world can they expect us to pay six or eight times as much for a cup of their coffee as we would pay down the street – and be happy about it?  Other coffee retailers have successfully moved coffee from a commodity to a differentiated product; only Starbucks has made coffee an experience.  In fact, Starbucks has made its name synonymous with the coffee experience.  They may have been in the headlines lately as they adapt to changes in the economy and in their marketplace – but isn’t that the point?  In the best of times and in the challenging times, they are the ICON – they define the coffee experience.

Is there any reason why a customer’s interaction with your offer, the process of selecting and buying whatever your product or service is, can’t be an experience?

That was a trick question, I’ll admit, because interacting with you  already is an experience.  There’s nothing you can do about that.  Every customer who buys from you (or chooses not to) is going to have an experience with you whether you like it or not.  The only question is what kind of experience are they going to find.

To explore how we can consistently make each consumer experience with us an excellent one, we’re going to look at some of the things Starbucks has done to become the clear leader in their field – such a dominant figure that there isn’t even a close second.

Before anything else, Starbucks had both a vision and a clear plan, which they’ve executed to perfection. Absolutely everything the company does is designed to give the customer a positive, perhaps uplifting, experience while purchasing a quality product.  Notice that “experience” comes before “product” in the sentence.  Because this is the goal, Starbucks is as much about people as it is about coffee – customers who respond to the experience, employees and managers who live the principles and values of the company.  These values – expressed as five principles and five “ways of being,” are published in The Green Apron Book, which every employee carries in the little front pocket of their apron.

In effect, this is Starbucks’ management marketing its concept to its own employees. None of the simple, common-sense ideas has anything to do with coffee – just as none of them has anything to do with secondary towing or cigars or Caribbean resorts (or whatever your own business may be.)  They have everything to do with how to personalize relationships, how to elevate customer interactions, how to preserve the intimacy of a small company even while working hard to become huge.

Starbucks’ store personnel are trained to remember your name and your favorite beverage (and that’s without a built-in data base.)  They understand the old Dale Carnegie saying that “a person’s name is to that person the sweetest and most important sound in any language.” This not only says you remember them, it says they matter to you.  Starbucks’ customers, exactly like yours, are not looking for new best friends.  They just want a positive human-feeling connection and they want their needs to matter.

Retail is detail.  Starbucks’ Chairman Howard Schultz is fond of saying that.  The truth is that ALL business is detail, and the most successful businesses are intensely focused on the execution of details at every level.  The Starbucks’ training programs teach employees to zero in on the minute details that matter greatly to their customers; every aspect of the business that touches the coffee must reflect the highest standards possible.  The goal – which is really more a compilation of small things than it is one or two big, dramatic things – is a “felt sense” among their customers, a global emotional reaction to myriad tiny details that lurk below our conscious awareness.  The name “Starbucks” automatically triggers in us a feeling that has been created over time by the specific details of our experiences there. Researchers in brain activity have found that as much as 95% of what influences our conscious choices resides below awareness.  This is true about our interactions with anyone selling anything – some we feel happy about returning to, others we stress out about just at the sound of their name.

We have to work hard at getting the details right every time.  What percentage of unhappy customers do you think take the time to bring their complaints to management?  They just go elsewhere with a single click or with their feet.

Here’s a key thing that produces delight in customers, that keeps them feeling warm and fuzzy about you:  predictability.  Since consistency (in quality as well as in the customer experience) is a rare and valued thing, companies that master delivering it will ultimately thrive.  Even when something goes wrong (which happens), if the customer knows the problem will be addressed quickly, efficiently and with good humor – we win. Sometimes this contributes even more to a positive “felt sense” than if it had all gone perfectly in the first place.

The Experience is not the same as the Brand – and we all need to focus on building both.  Using Kompani Group as the example, here’s the critical difference:  if you are considering how you feel about Kompani Group, you are thinking about our brand.  If you are thinking about how you yourself feel as a result of your involvement with Kompani Group, then you are thinking about the Experience.  The latter begins by identifying emotions we want customers to feel as a result of their experience with us, and then working back to what the organization has to do to make that happen.  When our clients prefer the experience of working with Kompani Group, they will become committed to it. They will return to us with new projects, they will recommend us to their friends and colleagues (although probably not to their competitors.)

Finally, it’s important to note that the high visibility of Starbucks has engendered a fair share of criticism through the years.  Howard Schultz says he thinks that his “ability to act positively on any criticism is (his) most crucial leadership skill.”  Given and received in a wholesome spirit, there is much to be learned from criticism and much growth to be inspired.  But the world is full of people who have told Starbucks that they would fail, and why.  It’s still happening on some business pages today, just as there are those who wonder how you and your industry can effectively respond to a challenging economy or a changing competitive environment.  The key – for Starbucks and for smart business operators in every segment – is to choose to engage with the future, to reject the idea that the sky is falling, to believe (to know instead) that the sky is the limit.

Signed/Chris Barr

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Launching a Driver sub-brand

Saturday, February 20th, 2010

The economic strains are causing your end-users to trade down, resulting in that the mid-tier and premium brands are losing share to low-price rivals. You face a classic strategic conundrum: Do you tackle the threat head-on by reducing prices, knowing that will destroy profits in the short term and brand equity in the long term? Or do you hold the line, hope for better times to return, and in the meantime lose customers who might never come back? Given how unpalatable both of those alternatives are, you now must make a decision of how to combat manufacturers and distributors of lower priced and inferior products, to avoid losing additional market share and eroding margins.

There are four ways to battle your competition. 1) Launching a true fighter brand, 2) Launching an endorsed sub-brand, 3) Launching a co-driver sub-brand or, 4) Launching a driver sub-brand

Driver sub-brand

Definition:

  • The parent brand retains its primary influence as a driver, and the sub-brand can act as a descriptor-a word or phrase that tells end-users that the company is offering a slight variation on the same product or service they have come to know.

Note: Of the three types of relationships, a driver brand with a descriptor sub-brand is the most risky. The parent brand is vulnerable to cannibalization because very little distinguishes one brand from the other. The risk of cannibalization is greatest when a descriptor signifies merely a lower-quality offering. The risk is minimized when the descriptor signals a different application.

Examples:

  • Mercedes provides a good illustration of a driver brand that has successfully accessed a downscale market with a descriptor sub-brand. In the early 1980s, Mercedes introduced that is now it’s C Class, a small car to compete with the BMW 3 series, as well as with Acura and Lexus.
  • Now priced around $30,000, the line sells nearly 30,000 cars annually in the United States (around one-third of all Mercedes sales in the United States).
  • How could a brand that has historically been identified with prestige and that offers a car selling for more than $100,000 pull off this kind of downscale move?
  • First, Mercedes delivered a quality product.
  • Second, the C Class introduction was accompanied by an intensive effort to reposition the core brand’s message from prestige to performance.
  • Third, marketing for the C class aggressively targeted young buyers. The C Class name creates a distinction that allows the sub-brand to attract a slightly different consumer, but it does not drive that consumer’s decision to buy the car. The Mercedes brand retains that power.

Celeron – B to B (Intel) 1997

  • To combat AMD’s $260.00 K6 processor chip, and to avoid having to lower prices on its Pentium processor, Intel launched a sub-brand dubbed Celeron.
  • Despite a couple of early pricing mistakes and mishaps in expectations management, Intel succeed in combating and keeping AMD from creating a strong foothold in the low-end market. With a share of 80% of the overall processor market and their ability to roll out new processors frequently, Intel proved to be a testament to both the power of fighter brands to open up lower-tier market opportunities and their unequaled ability to keep competitors at bay.
  • Note: The EU have recently been successful in winning a ruling against Intel regarding antitrust issues and pricing manipulation resulting in a fine of $1.5 billion dollars. We wonder whether the costs of the now 5 year old lawsuit brought by AMD, the fine and the distractions for Intel’s senior management team, would justify the launch of another Celeron value sub-brand when you already have more than 80 percent of the total market share.

Launching a Co-driver sub brand

Sunday, February 14th, 2010

The economic strains are causing your end-users to trade down, resulting in that the mid-tier and premium brands are losing share to low-price rivals. You face a classic strategic conundrum: Do you tackle the threat head-on by reducing prices, knowing that will destroy profits in the short term and brand equity in the long term? Or do you hold the line, hope for better times to return, and in the meantime lose customers who might never come back? Given how unpalatable both of those alternatives are, you now must make a decision of how to combat manufacturers and distributors of lower priced and inferior products, to avoid losing additional market share and eroding margins.

There are four ways to battle your competition. 1) Launching a true fighter brand, 2) Launching an endorsed sub-brand, 3) Launching a co-driver sub-brand or, 4) Launching a driver sub-brand

Co-driver

Definition:

  • The parent brand and the sub-brand act as co-drivers with roughly equal influence on consumers.

Examples:

United Express (United Airlines)

The United Airlines brand provides United Express, a commuter line, with the convenience of connections to United flights and a reputation for safety. There is no cannibalization because the flights do not compete. United Express is differentiated from its parent brand by its lower level of on-board service, its use of smaller planes, and its less formal personality.

Good News (Gillette)

Gillette Good News also illustrates a successful co-driver relationship. Gillette Good News disposable razors are a definite cut below ‘the best a man can get” that is the Gillette legacy in shaving. But disposable razors are qualitatively different from the upscale razors such as Sensor and Atra with which Gillette has long held a technological edge. Gillette could provide a rationale for a disposable brand by being the best in the disposable category. But the Good News user’s personality – younger and more carefree than the traditionally masculine and sophisticated Gillette persona – plays a key role in distinguishing the disposable brand from the rest of the line. Both brand names – Gillette and Good News – influence the customer’s decision to buy the product.

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Case Study: Occidental Hotels & and Resorts

Tuesday, June 23rd, 2009

An international hotelier wanted to revamp its own brand as well as those for each of its sub-brands, without causing internal competition between properties. Principals from Kompani Group narrowed in on the key experience each family of resorts delivered and then tied it into the parent company’s new brand image that redefines all-inclusive travel… The Infinite Experience or Infinite Luxury.

Allegro

Allegro

Where bright, sunny days are only revealed by the cheerful nature of staff and guests, Allegro is a resort experience built around delivering Infinite Joy. Always in motion, and constantly creating vivid colorful memories, every stay is an adventure guests won’t soon forget.

Grand

Occidental Grand

Few places on Earth deliver the kind of exotic sophistication found at Occidental Grand resorts. An Infinite Escape awaits travelers in every way imaginable – whether it’s breathtaking beaches, ancient ruins, or artistic cultural experiences, these resorts are a departure from all expectations.

Royal Hideaway

Royal Hideaway

Like something out of a dream, where the whole world bends to every guest’s whim, the Infinite Luxury of Royal Hideaway resort is the crown jewel of the Occidental Hotels & Resorts family. It is elite vacationing at its absolute finest.

Occidental Hotels & and Resorts is based in Spain, Madrid and is a consortium consisting of 4 hotel brands, Allegro, Occidental Grand, Royal Hideaway and Occidental Hotels. The group owns and controls a total of 62 hotels and resorts in Europe and Latin America.

www.OccidentalHotels.comROYAL HIDEAWAYOCCIDENTAL GRANDALLEGRO OCCIDENTAL HOTELS

Brand Communication Strategies:

With the new positioning approved the next part of this project included consolidation of 7 pieces of marketing collateral into 2 brochures, refinement of the identity for each of the four Occidental Properties, development of new content, photography, retouching, printing and planning and design of all 4 individual web properties and www.OccidentalHotels.com . The consolidation of the multiple brochures in just two pieces have resulted in easier distribution logistics and significant cost savings.

Services: Strategic Marketing / Advertising Planning, Branding Positioning, Creative Concepts, Media Planning Services, Photography and Video

Interactive Strategies:

Occidental Website

The majority of bookings at Occidental resorts have always been, and will continue to be booked by Occidental’s loyal following of travel agents and tour operators. But as the expansion-and continued acquisitions strategy would significantly add capacity to Royal Hideaway it became apparent that Occidental would have to build a more effective online presence to help offset the increase in rooms with more online bookings.  The brand alignment strategy allowed us to build one consolidated online booking web property for the four individual brands, which in return allowed Occidental to focus all e-marketing budgets on driving traffic directly to the main site or through product specific micro sites.

Result: Total direct online bookings increased fivefold in the 6 months following the launch of the new Occidental Hotels web site.

Services: Interactive Strategies, Online Marketing, SEO, SEM