Corporate Eye

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Susan Gunelius

Susan Gunelius

Do Consumers Care if Kraft Acquires Cadbury?

Just a few years ago Cadbury purchased a number of consumer products from Pfizer after the pharmaceutical behemoth acquired Warner Lambert.  Products like Trident gum, Halls cough drops, and more joined the Cadbury Bunny lineup of confectionery products.  None of the brands seemed to suffer, and Cadbury shares enjoyed a nice boost.

But what’s next for those brands?

Well, if Kraft has anything to do with it, those Cadbury-owned brands will join the Kraft lineup, which already includes Oreo and Philadelphia Cream Cheese, in a hostile takeover of Cadbury by Kraft.

And here is where the branding conundrum begins.  Do consumers truly notice when brands are sold and acquired?  Are they insulated from the activities of the parent company on a consumer level?  That certainly seems to be the case for Trident, Halls, Oreo, and other consumer products that are not closely tied to a parent company brand name.  Naturally, it’s not always the case though.

And does a lack of connection to a parent company brand make a product brand more attractive for hostile or friendly takeover?

I think the argument could certainly be made that allowing product brands to stand on their own can make them more valuable, particularly in today’s climate of rapid news sharing, excessive lawsuits, and shady business practices.  I suppose it’s a cyclical battle that mirrors the historical pattern of corporate centralization to decentralization, back to centralization, then decentralization, and so on.

So I’m playing devil’s advocate and asking what you think?  In today’s world, is it better for product brands to disassociate themselves from their parent company brands or is there still value in tying product and company brands together?

Motorola Droid says iDon’t to Apple’s iPhone

Today is the day!  Verizon Wireless is rolling out the Motorola Droid with the hope of winning back market share from customers who defected to AT&T Wireless and the Apple iPhone.  With the Droid, backed by Google, Verizon Wireless just might have a chance.  Where the Blackberry Storm failed, Google and Droid might succeed.

Verizon Wireless is certainly attacking the iPhone head-on with its new Droid ads.  Check out one of the commercials below.  There is no doubt what the message of this ad is.

Of course, it’s just Day 1, so the verdict is still out, but smartphone consumers have been waiting anxiously for Verizon Wireless, considered to have the best network in the United States, to catch up to AT&T and the iPhone.  Can the Droid on the best network compete with the coolest phone on a substandard network?

Keep in mind, Verizon Wireless had the opportunity to be the “it” wireless carrier.  The company was given the chance to pick up the exclusive iPhone deal with Apple, but the company passed.  The result?  AT&T stole some market share and Verizon Wireless hasn’t been able to recoup those customers yet.  Without its superior network and the continued hold on the business marketplace by RIM’s Blackberry, Verizon Wireless would really be in trouble.

Fortunately, Verizon Wireless realized that the clock was ticking.  The Storm might not have delivered (although rumors of a new version of the Storm leave some consumers hopeful of improvement), but the Droid just might.  Let’s face it.  There seems to be a battle to take over the world in terms of brand dominance.  For the tech-related world, Google and Apple are leading the pack but in very different ways.  Now, they’re poised to battle somewhat directly.  Who will win?  This should be fun to watch!

And that brings me to my question — what smartphone would you get?  The Droid on Verizon Wireless’ network or the iPhone on AT&T’s network?

Would You Buy a Casket from Walmart?

Walmart hopes its low price brand promise can take a bite out of the funeral home business by offering caskets for purchase through the Walmart website, which can be shipped in as few as 48-hours.  Walmart is also offering a layaway plan, so customers can pay off their caskets over a 12-month period.  With price tags ranging from $895 to $2,899 according to the BBC, Walmart is offering its caskets as a beta program to “understand customer response.”

walmart_caskets

What do you think of this extension of Walmart’s product offerings?  The company has grown to offer products to fit just about any stage of a consumer’s life, so perhaps Walmart’s leaders believed that capturing part of the market share of the deceased was the next place to go for continued growth?

There’s something about buying a casket from Walmart that doesn’t sit right with me.  On the other hand, caskets are expensive.  Maybe there is a target consumer who would comfortably turn to Walmart to help them find a final resting place for their loved-ones during their time of mourning.  Or is the correlation of Walmart’s ‘cheap’ brand image in stark contrast to what people are looking for to honor their lost loved-ones?  It’s hard to say.

So far, funeral home owners aren’t overly concerned by the Walmart threat, claiming the human-touch they offer to consumers is far more important than the lower prices Walmart offers.

Would you buy your loved-one a coffin from Walmart’s website (they’re only available for purchase online)?

What Will Google Think of Next? GPS for Smartphones

It’s TomTom and Garmin’s turn to be worried.  Google has rolled out its free navigation service using Google maps available through Motorola’s Droid smartphone (and coming soon to more phones).

It appears Google has done it again.  What do GPS companies have to worry about?  Let’s take a look:

  • Google’s navigation tool is free: Instead of paying for a GPS or a mapping service subscription through cell phone providers, consumers can benefit from Google’s usual model — free.
  • Google provides one-stop-shopping: Yes, this navigation tool is just one more way that Google is on track to rule the world by providing access to every kind of information you could possibly need at your fingertips at anytime and on one device.
  • Google is a brand people know and trust: Like it or not, people know the Google brand and trust it.  That ready-made brand recognition and trust is likely to go a long way in terms of shifting consumers from stand-alone GPS devices and subscription services.

Put it this way — if Google’s new navigation tool for smartphones works well and keeps its free price tag (and becomes available on more smartphones than Motorola’s Droid), there will be little need for anything else.  In other words, the same things that happened with online search, online email, and so on, will happen to GPS.

The question becomes not whether or not Google will be successful in its new venture into GPS, but will any other company be able to challenge Google in that new venture?

According to the New York Times, even the progressive Apple is behind in this area.  Can anyone ever compete with Google?  What do you think?

Microsoft is Late to the Party – Again

Once again, Microsoft is desperately trying to copy their cooler competitor, Apple.  This time, the company is jumping on the brick-and-mortar retail location bandwagon.  Introducing Microsoft Retail Stores!

There is no doubt that the Apple stores have helped Steve Jobs and friends create one of the most powerful relationship brands by surrounding consumers with another branded experience where they can share the brand they love.  The Apple stores employ cool employees, give free training sessions to new owners, and the Genius Bar is always hopping with satisfied customers getting the help they need and further interacting with the brand.  It’s a fun store to hang out in!

Can Microsoft create anything close to what Apple has developed with its retail stores?

Let’s face it.  Microsoft has a lot to live up to in comparison.  I suppose that’s why the first store, which opened in Scottsdale, Arizona, has a modern design that practically duplicates the design of an Apple store.  I guess Microsoft copied Apple’s Mac Guy vs. PC Guy commercials, so why not copy their stores, too?  Check out the similarities in the exterior and interior pictures of the Scottsdale Microsoft store below.  Incredibly similar to an Apple store, wouldn’t you say? [Read more…] about Microsoft is Late to the Party – Again

McDonald’s Hypes Free Coffee Refills with Creative Ambient Media

I love creative ambient media promotions, and Cosette West in Canada got very creative in their outdoor campaign for McDonald’s.

McDonald’s had a simple goal – to spread the word about its free coffee refills.  During a time when McDonald’s is trying to directly compete with established coffee brands such as Starbucks, the campaign needed to really make a splash.

First up … Cosette West went big by transforming a street light into a coffee cup and pot of coffee with a big “Free Refills” message that no one could miss.  Check it out below (click on the ad to see the full-size version on Ads of the World).


McDonalds ambient media street light


Second, Cosette West created an outdoor ad at a bus stop that didn’t remain static like most outdoor advertising does.  Instead, this ad changed everyday as the amount of coffee beans dwindled each day that the free refill promotion neared its end — check it out below (click on the ad to see the full-size version).   It’s easy for ads at locations like bus stops to become invisible to consumers who see them everyday.  By changing the McDonald’s ad a bit everyday, that audience is likely to notice the change and therefore, take notice of the ad again everyday.  It’s a very clever tactic.


mcdonalds ambient media bus stop


It’s this kind of creative thinking that makes consumers stop and take notice.  Does it convert and deliver ROI?  I don’t have an answer to that in the case of McDonald’s and the free coffee refills campaign, but if the primary goal was awareness, the company undoubtedly succeeded.  And isn’t that one of the first rules of advertising success — getting people to stop and notice your ad?  Without awareness, there can be no sales.