Don’t Forget the Boys!


They are certainly not an endangered species, but definitely quite a peculiar one! The young boys and men of today cannot be reached efficiently via the 30-second commercial anymore, instead they need to be engaged via the gaming route

“Highly unrestrained use of expletives, dark, and very funny” that was how one could describe the new animated satire “South Park” that debuted on VH1 in May. It’s totally different from what TV audiences in India have been used to.

Let’s take a look at some of the popular shows on TV. It used to be the “saas-bahu” ones, which have now given way to the sob-sagas of little girls and their sad tales. Kyunki Saas Bhi Kabhi Bahu Thi ensured that most women were stuck to their TV sets during the time it was aired. Most of them are still there, this time teary-eyed for the girl in “Balika Vadhu” and other serials like it. The point is, look around on TV and mostly those are women who are being targeted and marketed to.

However, there is a segment that, for a long time, has been the most elusive to catch and market to. It’s the young boys & men. Where do we look for them? If statistics are to be believed, then this segment is the most elusive and hence the most desired. Young men are tuning out broadcast TV as they turn to games and the internet. About 22% of them watch TV, while more and more of them are spending their time on the internet. For years, NBC’s “The Tonight Show” was the biggest money maker on television – considering it had a huge fan following. Today, the ratings of the show have declined, albeit slightly – among the younger viewers – since lesser young men are watching it.

With lifestyles changing, people staying up late, TV channels are realizing that there is a market that has gone untapped for a long time and a lot of them are creating programs to suit this group – the young males. However, these are few and far in between. Today, almost every sitcom is female oriented. Male oriented programming is almost squeezed out of prime-time, save a few like the recently premiered “South Park”. Traditionally, big mass-advertisers have targeted women, because the sales of most are driven by women - who still do most of the household buying. However, the 18-34 year old male is today making his choices, forming brand loyalties, and cannot therefore be overlooked.

Life beyond 30
Many would vouch for the fact that life begins at 30. It’s time marketers took a cue from this one. You need to look beyond the 30-second-long TV commercials if you really want to reach out. TV used to be the coveted media, but the remote control changed it all. Then came the internet & fragmented the audience. Today, TV no longer caters to the mass audience and some companies have sensed it. Back in 2003, Coca Cola cut its TV ad spending by 10 percent and pumped the money into a totally new and unexpected new media – the video game! Advertising has followed consumers; so when the young viewers switched from TV to games like The Matrix Reloaded and Enter the Matrix – so did Coca Cola. Soon P&G and GM, the biggest advertisers of US, shifted too. They had found a way to catch the target audience – a way different from the 30-second TV commercial way!

It reached the white house boy
The elusive 18-34 year old male is touted as the “most intensely targeted subset of humans today”. He’s unique – doesn’t read much, doesn’t watch much TV either – but spends hours (15 hours every week) on playing games. Today, all brands big & small are rushing to showcase their goodies on video games, just to catch the attention of this elusive species! As per Microsoft, its Xbox live – a subscription service that allows consumers to download games, and a whole lot of other stuff – reaches more men aged 18-34 than The New York Times, ESPN. com or Men’s Health. Try to beat that!

Electronics Art (EA) recalls a time years ago when it used to pay companies to reproduce their logos on its games. Today big brands like Honda and McDonald’s are paying EA; not just that, hoards of them are on the wait list – to be included in the new games being developed and launched. Recently, Microsoft has entered into a deal with EA to provide live-in game advertising within games developed by EA that can be played with an Xbox 360 or a PC. One of the first to spot the trend, Microsoft didn’t waste time, and a few years back, it acquired Massive Incorporated for $200 or $300 million. It could smell a lot of advertising money coming its way. Google, for the first time, got left behind, but it woke up & soon made plans to acquire another upcoming gaming company – Adscape Media Ltd.

A gamer, on an average, is about 18 years old. This is the age when he influences a family’s purchases, is young, has lots of interests, is a bachelor bread winner with lots of disposable incomeand the thought of him makes marketers salivate in anticipation. Not surprisingly, even Barack Obama couldn’t resist reaching this category. He created history by becoming the first presidential candidate to run campaign ads in online video games. So what if they didn’t watch TV or read, they played & he played too – not one or two but 18 games. Banners proclaiming “Early voting has began” appeared in 18 games via Microsoft Xbox live Service. The games included Guitar Hero 3, The Incredible Hulk, NBA 08 & many more.

In 2005, US $56 million got invested on in-game advertising, a figure that is expected to rise up to US $1.8 billion by 2010. In-game advertising (IGA) is today one of the fastest growing forms of advertising media. According to PricewaterhouseCoopers, the CAGR of games sales is expected to hit 11% annually by 2010, which is double the growth rate for movies and television.

It’s the new Phenomena

Today, not only are brands being placed in video games, but are being woven into story lines too. Lacoste featured in a game “Law & Order: Justice is served”– the murder victim here was about to sign a contract with Lacoste. Big luxury brands like TAG Heuer and Bang & Olufsen, too, are seen touting their products in games. Games once considered the sole territory of awkward teenagers have today become the playgrounds of the “Twentysomethings” male – a demographic with a lot of buying power.

What’s interesting to note is that brands are not just being placed within games, but are becoming an integral part of the game – and the viewers are loving it. They normally resent an ad when it comes in-between their favorite TV serials, but research has shown that viewers like product placements, because they make the games increasingly realistic. Not just this, according to NeoEdge Networks, in-game advertising is found to be more effective than TV marketing, delivering an unbelievable 500% increase in consumer brand awareness. 30% of in-game adverts were recalled in the short term and 15% recalled after five months – something unheard of in advertising.

Video games, as compared to any other media, are highly immersive, interactive and visually dynamic. The viewer is more involved here than in any other media. There was a kid who had a mirror on top of his computer screen, so he could watch TV without turning around. Talk of multitasking! When it comes to video games – that’s not possible – so involvement is higher and if the product is placed intelligently, then recall is higher too.

Advergaming way to go
Advertising in video games – or advergaming is the future. And you need to see who all are here. Brands big and small, exclusive or mundane, cheap or luxurious, are out there. Brands now have special games developed to promote themselves. When you play the Red Bull Flugtag Baltimore games, as you launch your airplane down the runway you cannot miss the Red Bull banners flapping all around. When all advertisement failed, it was the videogame “America’s Army” that turned out to be the most effective marketingtool and helped it recruit thousands of young men. It’s been downloaded more than 16 million times, and gives the authentic military experience – just the way potential recruits want. United Nations World Food Programme uses video games to educate the world about its mission to combat hunger. Dunkin’ Donuts used the classic story of tortoise & rabbit as the backdrop for its video game to promote its new Turb- Ice coffee drink. It used a TV campaign to promote the game. The campaign may have long ended, but the game is still on! Johnson & Johnson has a game where you are supposed to bathe as many toddlers as you can using all J&J products online. The winner gets a discount coupon, which he can use to buy a J&J product. How cool is that!

Today there is hardly any movie launch in Hollywood or Bollywood without a game too. From Chandni Chowk to China, which has three levels – chopping vegetables, training, and fighting the bad guy, to Ghajini, where you can look like Aamir, follow clues & solve the mystery, to Lord of the Rings, Da Vinci Code & zillions more. Video games are actually increasing the life span of a movie, apart from earning precious revenues.

Banks around the world may be crumbling, but “Entropia Universe” is an online video game, where players can exchange real money for Entropia Dollars, which, if you want, can once again be converted into real currency (the exchange rate is fixed at 10 to 1 to the US dollar). Its publisher Mind Ark now even has a license from the Swedish government to operate as a real bank! Last year, the economic activity in “Entropia Universe” was worth $420 million – about the same as the economic activity of the Kiribati island in the Pacific!! This is one bank, at least, which is “virtually” safe.

Games are doing it all
Thanks to technology today, video games have came a long way. They are interactive, interesting & rewarding. They are becoming an important tool in every marketer’s kitty. Games are being given as incentives and games are increasing brand recall like never before. Scotland is using games to educate youngsters on traffic rules. People are even being educated about the swine flu and its infectious nature with the help of a game “Stop Swine Flu”. They are even helping the British Intelligence Agency to recruit their spies! Games have made advertising more dynamic. Think about it – A TV commercial is forgotten in 30 seconds, while a game engages the viewer minimum for a few minutes and if you are good, then for hours; so which is more effective – you decide.

The next time you draw up your marketing plans – play around too. All work and no play make an incomplete marketing plan. Remember, it works and not just that, it takes you straight to that elusive target audience of 18-34 year olds. When you are planning to increase your market share – don’t forget the boys.

Power PACKED


A great product may just get turned into a hopeless also ran in the market place if it is not packaged right. Surely that’s reason enough to consider this aspect of your marketing program very seriously

This year, PepsiCo has found a mantra to breathe new life into its beverage category. The buzz word is “Refresh Everything.” With this focus, the company plans to reinvent the brand and fill it with the spirit and optimism of youth. Massimo d’ Amore, CEO, PepsiCo North America Beverages, said, “Today, people want beverages to refresh more than their taste buds... this is what our brand reinvention strategy is all about and we’re introducing new identities, new packing and holistic marketing campaigns designed to inspire people of all generations,” as according to them, their beverages have always been at the centre of popular culture, where they have energized new generations for years. The 60-second “Pepsi Pass” video on You Tube takes the winning mantra forward by claiming “Every generation refreshes the world… now it’s your turn.”

With a series of new advertisements & new packaging, the company marched ahead on this exciting plan, in the beginning of this year. It refreshed (read: modified) a lot of things; like refreshed the Pepsi logo, the Mountain Dew font and the packaging of its premium category orange juice Tropicana, among other things. The company invested $35 million to roll out this new look of Tropicana. Now, instead of its trademark “orange-with-the-straw” image, the Tropicana carton featured a glass full of an orange juice, while the cap was designed to look like an orange. The result – after the launch of the packaging on January 1, 2009, the sales of Tropicana had plummeted by 20% by the end of February.

It couldn’t get more shocking. A brand that was nurtured and grown for 30 years lost one-fifth of its customers in fewer than 60 days. To make matters worse, not just did Tropicana’s market share drop, but that of its competitors increased; i.e. Coca Cola, Minute Maid and various other brands, including private-label products, posted a double digit unit sales increase during this period! So what went wrong? In its bid to reinvigorate the brand and make new emotional connections, the company lost sight of the most important factor – customer experience. That is, the shopping experience of the customer. The new package design, though classy, actually confused the customer. The new design lacked the distinctive personality of the “Orange-with-the straw” image. Maybe it was not classy, maybe a lot of people didn’t care much about it, yet the “Orange-with-the-straw” made the carton stand out on the shelves of supermarkets and made it easier for the customer to grab the juice of their choice. The new design could not stand out and made the brand look generic. No one in their wildest dreams could predict that a change in packaging could cause such a steep and unthinkable fall in sales. The company, of course, has immediately discontinued the new packaging & brought back the original, but this big goof-up definitely gets one thinking.

The silent salesman
Very often, “packaging” is referred to as the silent salesman – speaking volumes, without saying a word! Packaging conveys a very strong marketing message. It’s packaging that a lot of seasoned marketers are turning to, during these times to boost sales. Frito-Lay’s new Smart Food popcorn is now coming in a smaller pack – as research revealed, women (who are its target customers) preferred smaller, portioned packaging for their snacks. Pepsi is bringing back its retro-style packing for Pepsi Cola and Mountain Dew – reminiscent of the 60’s & 70’s. Starbucks is planning to roll its ice-cream into grocery stores this summer and its packaging for the new super premium flavors emulates the company’s iconic white cup – so that loyal customers can recognize it in a glance. Mango Frooti is going in for innovative packaging to help increase sales this summer. It’s now offering a Frooti devil pack and a Frooti cupid pack – to make it look more contemporary and appealing to the youth and to enhance its image. Sprite also comes in a smaller version called Sprite Xpress now – in sync with the on-the-move lifestyle of the youth. Women’s Horlicks was the best ever launch for GlaxoSmithKline last year – primarily due to the unique design of the bottle, which was shaped like a woman’s form – and woman loved it! Old brands need to change with the times to remain relevant to the new generation & a new packaging helps in doing just that. Old brand Sunsilk became youthful & trendy last year with its new packaging.

Earlier considered as a protective cover, packaging today has become the key differentiator of brands. A new packaging always manages to draw back the attention of the customers towards itself. If it’s good, they always pause & give the brand a second look. Now you know why, after a break–up, your girlfriend suddenly changed her hair colour & cut – for that second look! Always repackage – to appear more attractive to the user! It’s no surprise then that while seven years ago, organizations were spending approximately 5-8% of R&D budget on packaging – today the number has risen to 15-20%. Even our political parties are getting all dolled up for the coming elections – each one dressing up their candidates & plastering their images all over the city. Each one is trying their best to package their party with smiling images of their politicians.

Packaging fights
We may not realize it, but a lot of marketing wars are fought by packaging. It fights competitors. Sony has been the undisputed leader in the electronics market, but LG & Samsung managed to turn the tide in their favour through innovative design. Nokia felt the heat when Motorola dressed up its mobile phone in a trendy Moto Razr avataar. Horlicks got more visibility and higher shelf appeal with its new & trendy packaging & kept competitors at bay. Cobra Beer now knows that to win market share, it too needs to pack its beer in cans – for that’s how consumers prefer it & United Breweries (its competitor) is already doing it – and consumers are also picking it up faster than Cobra.

It fights controversy. Known for destroying the environment wherever it goes, Coca Cola decided to wear its commitment to the environment on its sleeves – literally. Most of its packaging is 100% recyclable and it now also has a “Recycle Now” featured prominently on all its products – to emphasis that its packaging is recyclable.

McDonald’s wants to remove its “bad food” tag and show its consumers its healthy side and who else to help it – but packaging. Through an initiative it has launched in 2008, the brand will ensure that its packaging features the brand’s food quality story – another way of reinforcing its quality. Pret–a– manger of UK has been doing this for years now. The packaging of its sandwiches, juices, cakes, salads, all feature short sensitive stories, bringing out Pret’s commitment towards quality and freshly made food as compared to others. A lot of people started preferring Pret to McDonald’s after this. Now Mc- Donald’s is probably trying to woo them back and make them say, “I’m loving it” – even more loudly. After worms were found in chocolate bars of Cadbury Dairy Milk, the company decided to start a campaign called “Project Vishwas” and the first thing it did was to change its packaging. The old packaging would remind consumers of the worms, so it needed a new look.

It fights branding wars. Almost all comparative advertisements use the packaging of competitors to prove their point. Be it the Surf-Ariel wars, or the Pepsi-Coke ones. This time too, Coke’s brand Powerade is using its competitor Gatorades’ packaging to fight the war. To prove that Gatorade provides half the benefits of Powerade, hoardings across US feature half the bottle of Gatorade labeled as the “incomplete sports drink.” The iconic packaging of Gatorade is instantly recognizable. With 75% market share, a very loyal following & a packaging loved by all, Gatorade might just win this battle too.

Packaging should reflect the culture and the times. Today, it’s more grab-&- go. No wonder that restaurants are becoming more automobile friendly and automobiles, more drive-in-eat-in-car friendly. McDonald’s & Burger King now package their take-away food in cups that can fit car cup holders. Dashboard dining, i.e. sales at the drivethrough window now account for at least half of all the fast food restaurant’s sales. The power of packaging cannot be denied.

The Package is the product
You may work hard on the quality, the price, the distribution of your brand, but don’t ignore packaging. It’s a powerful tool. There is no better proof than “bottled water.” It is the ultimate when it comes to a commodity product and with more than 400 brands fighting for shelf space, the only attribute that separates them is packaging.

Packaging influences everyone – when children were given milk & carrots in packets with a McDonald’s logo on it, they found it more tasty!

A product is no good today till it’s packaged well. So if you really want the consumer to grab your brands – make sure it’s power-packed.

Thoughts About Twitter

Two observations from today's class discussion in Competing With Social Networks seemed especially important for understanding Twitter's future:
  1. The service has an exceptionally high abandonment rate.
  2. Twitter's network is comprised of asymmetrical ties, i.e., those followed need not reciprocate.
The question is: To what extent does #2 explain #1?

Before tackling that question, it's worth noting that high abandonment rates are common with buzz-fueled, fast-growing social networking services. CSN Prof. Misiek Piskorski pointed out in class that 40% of Facebook profiles are barren. In Second Life, 90% of new users abandon their avatars after just a few hours. Second Life faces two barriers to retaining users: fiendishly complex and crash-prone software that takes weeks to master, plus a big "what's this for?" problem. By comparison, Twitter is very easy to use, yet its abandonment rate is still very high. In Managing Networked Businesses this week, a class guest suggested that Twitter's abandonment rate may be as high as 98%!

In CSN, the class advanced a hypothesis that Twitter's low engagement levels might be explained by:
  1. A "howling at the moon" problem. There's little incentive to produce content if no-one is listening. Twitter's asymmetric tie structure exacerbates this problem. Some users are happy to produce with no audience, but most fail to see the point, so they quickly abandon their account.
  2. Twitter's lean, text-only format. Expressing yourself in 140 characters, without photos, etc. was held to be intimidating or at least in some way unsatisfying for many users.
I don't buy the second point. The mass market is very comfortable with IM and SMS, which typically display only short text messages.

With respect to the first point, is a new user's difficulty finding followers: a) a temporary problem that will fade as the service grows and improves friend search tools? or b) a permanent problem endemic to a service with asymmetric ties? I favor the first hypothesis. Twitter will soon have a few million loyal users comprised of the digerati/social media elite/SXSW crowd; self-anointed prophets without followers who like to howl at the moon; and celebrity fans. After it reaches a threshold scale, mass market users should be able to sign up and find some real world friends/colleagues/acquaintances who'll follow them.

If my hypothesis is correct, there are still questions about how Twitter will manage the conflicts it is likely to encounter as the service evolves:
  1. Can two fundamentally different modes of use — one-way broadcast by celebrities/gurus vs. one- and two-way communications between real world friends — continue to coexist on the same site? Technically, yes: you can follow Ashton and Oprah and Leo Laporte, and never post; I can post frequently for friends and fill my feed with @replies; others may use Twitter in both ways. But will the service ever have a coherent brand identity if it continues to accommodate both usage modes? That's a very tricky marketing problem. If I had to bet, communication between friends will gradually overwhelm celebrity micro-blogging.
  2. How will Twitter handle the inevitable tension between early and late adopters? Newbies always cause friction in social networking services because they do not understand community norms. In addressing this conflict, the asymmetry of network ties should be a benefit for Twitter: Ms. SXWS need never follow Mr. Hoi Polloi, although she may need to contend with some annoying @replies that he generates. On the other hand, Twitter will be unusually vulnerable to spam problems due to asymmetric ties and the ease with which bots can auto-search and @reply to public conversations.
  3. How will Twitter handle the blurring of social context that occurs when users co-mingle personal and professional relationships? Misiek suggested that Twitter might offer a very effective way for co-workers to coordinate and communication. This rings true, but mixing social and business relationships with a single account is a high maintenance task, as we are learning from Facebook. Users could maintain two accounts, or Twitter could support filtering for groups, but this takes more work on the part of the user.
  4. How will monetization strategies impact value perceived by the community? Daniel Palestrant, founder/CEO of Sermo, an online professional network for physicians, contends that almost online communities eventually 'arc,' that is, grow rapidly then decline, often because they introduce a revenue model in conflict with the community's preferences. Example: Facebook cluttering the site with distracting, low-CPM ads or using profile/behavioral data to target ads in creepy ways. How will Twitter handle this challenge?