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Archive for January 2012

At Issue } essential reading

JCPenney Re-Refreshes Brand - Third Time's the Charm?

Mark J. Miller
Jan 27, 2012

Trying to figure out what’s on sale when and then waiting for the next sale to buy particular items can be frustrating to consumers so J.C. Penney Co. — in its first major overhaul of its retail arm since former Apple exec Ron Johnson took over as CEO in November — is attempting to make things much easier. The company this week announced that its stores are doing away with having seven kazillion different items on different sales simultaneously and just “marking down all of its merchandise by at least 40% so shoppers will no longer have to wait for a sale to get the lowest prices in its stores.” The move comes as jcpenney, as the chain rebranded itself at the 2011 Oscars, is re-rebranding with a new logo — following the previous year's rebrand at the 2010 Oscars (check out the logo progression below). What was that about trying to avoid consumer confusion?

Consumer Behavior: From Trading Up To Trading Off

J. Walker Smith
Jan 27, 2012

The opposite of trading up is not trading down. In fact, there is no opposite of trading up; shopping behavior is more nuanced than that. When shopping hit the skids after the financial crisis, there was a lot of talk about a new normal of frugality, as if the only thing possible after a decade-plus of trading up was a generation to come of nothing but trading down. It’s clear now that those prognostications were flawed, not to mention overly pessimistic.

A Tale of Two Brands: How Land Rover Makes 14 MPG Sexy

Rebecca Lindland
Jan 26, 2012

The brand new Land Rover Range Rover Evoque started 2012 off right – with a prestigious North American Truck of the Year win at the North American International Auto Show in Detroit, Michigan. This topped off a terrific 2011 for the Tata Motors-owned brand, with Land Rover sales up an impressive 19.6% to 38,099 in a new car market that grew by 10.6%. The success of this off-road brand is in stark contrast to its former competitor, GM’s Hummer, which logged no new sales last year and like so many Hollywood marriages, failed to survive to the 10-year anniversary it would have celebrated this year. As you may recall, on February 24, 2010, eight months into its post-bankruptcy life, and nearly eight years after debuting the H2, GM officially announced they would begin the wind-down process for the Hummer brand. The last Hummer rolled off the Shreveport production line in 2010. So how did these two brands with arguably analogous products end up with such different fortunes?

The Mobile Marketing Value Exchange

Scott Forshay
Jan 26, 2012

Establishing consumer relationships through mobile marketing, as with any successful, productive relationship, inherently requires a mutual exchange of value. Whether consumers are opting-in for brand communications via SMS or engaging with the brand in a single instance through scanning a QR code, the onus is on the brand to deliver value in return for customers’ valuable time and information. Without the perception that value has been exchanged for value, the relationship becomes essentially one-sided and unrequited attempts at interaction on the part of the consumer will spell the end of the relationship – perhaps permanently.

J.C. Penney Chief Thinks Different

Dana Mattioli
Jan 26, 2012

Shortly after taking the top job at J.C. Penney Co. last fall, Chief Executive Ron Johnson signed up for the company's email alerts. He was shocked by what landed in his inbox. The former Apple Inc. retail executive was deluged by sales announcements, sometimes two a day. He and his team counted 590 separate sales last year. They didn't bring in shoppers—Mr. Johnson's team found the average customer purchased only four times a year—but they did crush prices. Alarmingly, he learned nearly three-quarters of Penney's products sold at discounts of 50% or more. Three months into the job, J.C. Penney Chief Executive Ron Johnson is planning a far-reaching but risky overhaul of the department store format.

Privacy Debate: Google Cannot Opt Out of New Brand Damage

Abe Sauer
Jan 25, 2012

It was a move many saw coming, eventually. Turns out, eventually was Tuesday. That's the day Google amended its user privacy policy to begin sharing data collected from users across all of its services, including Gmail, Google+, YouTube and even Android. The changes start March 1. There is no opt-out for users. There is also no opt-out of the PR nightmare Google's brand is about to weather.

Hasbro Is No Has-Been: Board Games Surge In The Digital Age

Kevin Ohannessian
Jan 25, 2012

Risk has come to Facebook. Scrabble is one of the top iPhone apps. And several board games are enjoying a long life on game consoles. In the digital age, you better be ready to Hasbro-down. A long time ago, in a galaxy far, far away families had a game night--once a week they'd pull out a stack of boxes from a closet and everyone would flex their knowledge of trivia (Trivial Pursuit), vocabulary (Scrabble), or even their real-estate management skills (Monopoly, natch).

Three Ways to Pull Your Senior Team Together

Jan 25, 2012

Senior management teams set the course for their organizations and are often the leaders who first recognize when big change is needed. These teams are also often made up of people with drastically different styles, personalities, and visions. Bringing these voices into alignment around key goals and opportunities is the essential first step toward accelerating strategic results for the organization.

Carnival Is Failing Spectacularly In The Handling Of Its Costa Concordia Crisis Read more: http://w

Kim Bhasin
Jan 24, 2012

Carnival has a massive PR crisis on its hands, and its handling of it is making things even worse for the cruise line. The Costa Concordia disaster has left at least 16 people dead, with 17 still missing. But it's not so much the circumstances of the crash ruining the brand, it's the company's terrible management of the crisis.

A.G. Lafley vs. Steve Jobs

Scott Anthony
Jan 24, 2012

Usually the question comes right after I tell an audience that I put former Procter & Gamble CEO A.G. Lafley on my "Innovation Mount Rushmore" as a reminder of the importance of investing time and energy to understand the target market.

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