Product Placement

Nestlé could receive more than £500,000 media value, against its £100,000 investment, for its product placement of the Dolce Gusto coffee machine during ITV1's 'This Morning', according to research. This was the first example of “open” product placement to UK and Irish viewers since the regulatory change with regard to product placement. Many people will see product placement as an unnecessary evil and claim to be exploited by marketers. But let’s be realistic here.   Nobody complains when they see they’re favourite brands in movies because in that case it ads authenticity. Is it really going to matter whether they are drinking their water out of branded Pepsi cups on the XFactor next year? (A potential move to counter Pop Idol and Coca-Cola) I don’t think so. I have no doubt product placement works, I personally don’t mind it in movies or TV shows as I hate unbranded product in TV shows for the reasons I outlined earlier. I just don’t think that now days the Irish and UK viewer is going to be shocked at the prospect of product placement. We have been exposed to it for years and besides the modern consumer is so aware of marketing nowadays that only very few will be unaware of the subtlety which product placement brings to advertising.

Sean Wiemann

Robinsons no longer just a Cordial...

I was recently looking over some of the advertising and sponsorship used at sports events for a project and came across an interesting new brand extension; that of Robinsons squash, the cordial drink brand owned by Britvic who sponsor the Wimbledon Tennis, which has now entered into the confectionary market with the launch of "Robinsons Classic Fruits". It's an interesting move by the company and makes a lot of sense as the sweets will come in the flavours children and adults know well from the cordial drinks they already enjoy. The new product will be based around using natural fruit juice something which is clearly aiming the product at mothers. Although the move will see the company competing in a new market segment, I don't think it will require much in terms of change with regard to the way Robinsons currently advertise the brand; mainly because the target audience will remain exactly the same. The products will be available from June of this year and as Robinsons is a Sponsor of the Wimbledon tennis tournament, a big promotional campaign will be launched at this year’s tournament. I am sure Nadal and Federer will be sharing Robinson Classic Fruits at this year’s final!

Goal Line Technology One Step Closer?

http://www.bbc.co.uk/news/business-12670063

I am the device which now decides in or out at Wimbledon, I was invented by Paul Hawkins and can affect the outcome of sporting events. Any idea who I am?

Hawk-eye of course! I recently read an article which detailed the sale of the Hawk-eye system to electronics giant Sony and wondered would this see the advent of goal line technology in football now that a company with significant resources and “pull” will be applying the pressure on FIFA. Furthermore, I wonder whether this particular market opportunity was on the minds of senior-level management at Sony when signing off on this acquisition. Hawk-eye posted relatively small profits of £1.1 million. But if they were to enter into the global real of football thee profits would increase significantly, my feeling is Sony recognise this are determined to attain first-mover advantage and more importantly recognise they have the weight and leverage to persuade FIFA into a move.

Sean Wiemann

The new Lexus campaign with Kylie, nobody really cares how silent their car is!

Usually car manufacturers emphasize power, speed and style in their cars. BMW will always be "the Ultimate Driving Machine". Technological advances in these areas will always be emphasised in advertising; Audi will continue to proclaim "Vorsprung durch technik". But now something new is moving to forefront of the consumers’ mindset; well let’s just say a segment of the consumer market. The environment; fuel efficiency and environmentally friendly practices have become more important to a segment of the market. Gas guzzlers are frowned upon and in recessionary times fuel efficiency has become more of a concern. You may be asking, what has all this to do with Lexus and their new ad campaign? Well their new ad campaign features their new brand ambassador. It’s not Eminem, who now fronts a Chrysler and it’s not James Bond who has supported BMW in the past; two "luxury" car rivals. It’s Kyle Minogue. The emphasis is not on the powerful engine, the style and performance traditionally emphasised with luxury cars it’s about the fuel efficiency of Hybrid cars and more importantly unlike the sound many men desire in a car, that monstrous rev of an engine, it emphasises silence and being almost unheard. To me the ad is too directed at women but that seems to be the target market for Hybrid vehicles. I just think the ad while certainly portraying environmentally sound values could emphasize the performance element more. I think this would entice a wider market segment. This ad is too targeted at the female consumer, it’s a decent car but by no means luxury, and let’s face it, we all want performance from our cars and anyone who knows cars knows that while they may be silent and kind to the environment Hybrids, including this Lexus, don’t offer the performance one would expect for the price they command. I think by going with Kyle Minogue, Lexus have pretty much said to the market were going after women who don’t really care about performance but care about the environment and driving the most “noise pollution” friendly car available, as if anyone cares that their car doesn’t make a sound, in fact I want my car to be heard revving through the streets as I listening to Kyle on my itrip, afterall I just spent over €15,000 on it!

Stella Artois' New Cider a serious risk to Bulmers/ Magners?

Stella Artois has decided to try and combat the growing number of beer drinkers lost to the over-ice cider segment in the UK by moving into the category with a new product extension; Stella Artois Cidre. This will be the first time a major lager brand has extended into this segment and the drink will be primarily aimed at affluent consumers aged between 20 and 30. The move is going to be backed by a new advertising campaigns s well as point of sale promotions in the coming months. Whether the brand can challenge Heineken owned Bulmers and Magners within the market is questionable however due to a distinct lack of consumer association between the brand name and cider. It will be interesting to follow the development of this link by the Stella in the coming months. I for one see this as a dangerous move as it will be extremely costly to penetrate this market place and the Bulmers brand itself has already found this market difficult enough to command in terms of profitability, particularly outside of the UK. I guess only time will tell how popular a high end cider labelled with a lager brand will be. I dont think Bulmers/ Magners position is under threat just yet!

Sean Wiemann

Irish Mail on Sunday, Sunday prank or completly unethical

Readers of the Irish Mail on Sunday might have noticed a slight change in the format of this morning’s edition, as the paper decided to take a swipe at almost down and out rival Sunday Tribune. It follows on from my previous post whereby the former has announced it will cease publication until the company has been sold and a new owner is put in place. I think that for the Irish Mail on Sunday while it may be a good media stunt it certainly screams out trashy, tabloid lacking in morals and character to me. I believe any serious newspaper relies on the standing and legitimacy of its writers and the articles they produce while this kind of stunt is left to the lesser tabloids who don’t sell on the basis of legitimacy but on gossip, rumour and sensationalism. To me this stunt is unnecessary, lacking in class and a clear kick to the side, from one editor to a struggling rival lying on the floor. I certainly wouldn’t buy a paper lacking in basic decency and integrity, which the Irish Mail on Sunday clearly does.

Sean Wiemann

http://businessetc.thejournal.ie/irish-mail-on-sunday-uses-tribune-masthead-for-readers-of-the-sunday-tribune-2011-02/#slide-slideshow1

The beginning of the end for traditional Newspapers? Sunday Tribune ceases publication for 4 weeks.

Following on from my post regarding the Kindle and the possible beginning of the end for the traditional hardbook in the U.S RTE reported yesterday that the Sunday Tribune, owned in part  by Independent News and Media empire, would cease publication for the next four weeks. This follows a continuous decline in readership and more significantly massive debt accumulation. INM has invested up €40 million to date in the publication which continues to make losses. For me the most significant contribution to this decline is not only that people are buying less newspapers with the advent of free online news publications, which is true;. But it must also be considered that considering the global economic downturn advertising, a major source of income for the industry, is down. Social media which costs next to nothing to develop is proving far more cost efficient than traditional broadsheet advertising; particular when you consider that a majority of target audiences are now getting their news online. So just as intimated with the kindle is this the beginning of the end for a number of staple publications within the Irish market? Will more and more newspapers simply abandon print, and restructure to purely online publications? I personally hope not. For me reading the news on your iphone, laptop or blackberry (if your lucky enough to have one or all three) simply isn’t the same as the feel of a good newspaper. I guess the only ones happy about such a development would be the opticians!

http://www.rte.ie/news/2011/0202/sundaytribune.html