Perrier’s Immersive Marketing Campaign

By Savannah McClelland

Perrier has demonstrated the confident marketing strategy that they have developed a reputation for with its latest campaign, Perrier Secret Place. The campaign is a game within a game; the goal of playing Secret Place is to find a required hidden item, which allows participants to enter for a chance at attending a real party.

Secret Place immerses you fully in the world of an insane party, moving from room to room—and from the perspective of one character to another—to find clues to locating the secret Perrier bottle. In total, almost an hour and a half of film footage went into the development of the site; while the experience can be a bit overwhelming at times, it is intriguing enough that it is easy to forget that you’re looking for a particular Perrier bottle. This is apparently at least somewhat by design; Perrier says that only the most experienced gamers will be able to find it, and it encourages players to come back over and over again to hone their skills.

The game is fascinating; it starts with a quick video where you go through a Parisian Laundromat, revealing a club in the back. By clicking any of the 60 guests at the party, the player is able to see everything from that guest’s perspective. Activities going on include a game of checkers with macarons replacing the pieces, a high stakes poker game, and a variety of other happenings. Each scenario, each character, provides a clue to finding the secret Perrier bottle.

If you do find the secret bottle, you can enter for a chance to go to a real life crazy party; destinations include a party in St. Tropez, New Year’s Eve in Sydney, Australia, Art Basel in Miami, Carnival in Rio de Janiero, and the closing of Ibiza season.

Perrier’s marketing has long focused on giving consumers an experience, rather than just providing content.  Secret Place took Ogilvy Paris approximately 18 months to write and produce. In addition to the multitude of scenarios, the site features infographics summarizing how many lives you’ve lived of all of the possibilities. Gauthier Gay, Perrier’s group marketing manager, explained the thought process behind the campaign, saying, “The Perrier target consumer is young, edgy, highly digital, and loves to socialize –- and these are exactly the people who will be attracted to Secret Place, and with digital and social playing an increasing role in these consumers’ lives, we’re maximizing these assets with Secret Place to enhance the experience.”

You can check out the unique and fully immersive experience here.

 

Volkswagen Targets China in Hopes of Being The #1 Automaker

Volkswagen has hopes of being the world’s number one automaker by 2018 and they believe China will be the key to that goal.

One of their major targets in China is on the western part in the city of Lanzhou. It is the capital and the biggest city in the Gansu province, which is just off of the Gobi Desert. There is a population of 3.6 million and the GDP per capita is $4,100. Lanzhou currently has 11 Volkswagen dealerships, including its family brands, Audi and Skoda. Volkswagen’s goal is to establish themselves in the smaller cities of China and go beyond the bigger cities.

Volkswagen’s Vice President in China believes that small cities in China are the car brand’s “bread and butter.” Volkswagen, Audi and Skoda are a fifth of China’s passenger vehicle deliveries, which is way ahead of General Motors, at 9.9%.

The question is, out of all the places in the world, why is China the main target for a German automotive company. For one, China is the world’s largest auto market. Volkswagen wants to outrun expansion plans of other automotive companies to capture the loyalty of first time buyers because most first time buyers have little brand loyalty.

“Chinese consumers are notoriously disloyal,” said Bill Russo, president of Synergistics Ltd., a market researcher in Beijing. “Volkswagen’s challenge is continuing to build customer relationship management, and be geographically in the high-growth regions.”

China’s less populated cities will make up 60% of new car deliveries by the end of the decade. This because car sales in smaller cities like Lanzhou is projected to grow 10% annually until 2020, compared to the 4% of big cities like Shanghai and Beijing.

Volkswagen has partners with SAIC Motor Corp and China FAW Group Corp., they have plans to create 11 factories in China with a production of four million vehicles a year by 2018. Volkswagen also owns high end brands like Bentley and Lamborghini, which won’t be too popular in sales with first time buyers in China. Other Volkswagen brands like Skoda already have been showing progress with a rise of 7% in the first two quarters of this year. They sold over 181,900 units and China has been their biggest market since 2010.

Almost 2.7 million Volkswagen vehicles will be sold in China by the end of this year. That is 30% of their total global sales, which is almost half of their total sales combined.  They only sell about one million Volkswagen vehicles per year in Germany, the brand’s home country.

Localize in the Global Market This Holiday Season

A lot of retailers have hopes of having a global outreach because it will obviously create more traffic on the web and increase sales. However, it is important to understand that not all places on the globe are the same, so brands must establish a good strategy to localize themselves in the global market. The holiday season is creeping up quickly and it is expected to be the busiest online holiday shopping season ever, which makes it a priority for the adaptation of online strategies for different cultures .

Content localization is an essential tool when retailers enter new markets. For example, brands must adapt to local habits, trends, preferences and traditions in different markets. Retailers can connect with local experts, so they can create an online experience that is personal to create shoppers to buyers.

UK retailer, Debenhams, has over 171 in the UK and has expanded to other countries because of their successful launching of an online store in Germany. They chose Germany because it was one of their top markets online and they are also the second largest e-commerce market in Europe. Their sales have now increased in Germany with the localization of the UK department store.

They not only localized a department store, but localized the whole brand. Over 58,000 product descriptions were changed from English to German. They enabled complete transactions in Euros and in September, Debenhams reported a 40 percent increase in online sales. Visits to the website were up by more than 50 percent, which was also attributed by their mobile success.

For retailers and brands, here are some tips to gain success like Debenhams did this past year:

  • Localize your message. The holiday season is different for different cultures and it is important that retailers understand this situation. Therefore, it is important to adapt to locations with websites, social media, mobile and advertising campaigns. For example, Three Kings Day is gift-giving celebration for Hispanic community and has a tradition that is described as the exchange of o-seibo gifts.
  • Translation is not localization. Translations that come straight from Google or a textbook are not always the best solution to adapt product descriptions. Consumers in different countries will most likely search for products in their local words or phrases. Getting to know local languages will increases the chances of ranking higher on search engines. A jumper for instance, is a skirt with shoulder straps in America. However, in the UK, it is a sweater.
  • Images are an important part of a retailer’s site. Images are important for any type of business. People want to see what they get. Localization experts can help choose images that accurately reflect the brand’s image or message in a specific target market.
  • Regularly update your content. For SEO purposes, it is important to update continually or ranking will be a failure.

Localizing in different markets can increase conversion rates by 40 percent according to consumer behavior studies. It is all about culture awareness, putting local knowledge into action and turning shoppers to buyers.

Chinese Brands Are Booming in The U.S.

President Obama and Mitt Romney don’t like the fact that U.S. consumers are relying on China for some trending products, but consumers love it. Big China brands, such as Lenovo computers, Li-Ning sneakers and Haier appliances are all consistently making their mark in the American marketplace with their products in the midst of Nike, Apple and General Electric.

According to David Hartman, China practice director at Blue Canyon Partners, the rising brands from China will end up being the most difficult challengers of the future for many American brands. He complemented on the fact that they have caught the attention of many “early bird” investors, which will lead to a more wide-spread introduction of these brands. There could be huge brand building in the near future for China.

In early October, Beijing-based sneaker company, Li-Ning signed Miami Heat guard Dwayne Wade as an endorser and a minority owner. He joins other NBA players like Evan Turner of the Philadelphia 76ers, Baron Davis of the New York Knicks, Jose Calderon of the Toronto Raptors and Shaquille O’Neal stomped his size 22 Li-Ning sneakers before he retired from the NBA.

Since Dwayne Wade has joined the sneaker brand, Li-Ning’s social media reputation has boosted with 372,000 Facebook friends and 24,300 followers on Twitter. According to Ray Grady, Digital Li-Ning USA General Manager, they have also received an outstanding amount of direct traffic to the brand’s website.

Lenovo, which bought IBM’s ThinkPad in 2005, was sixth place in market share in the U.S. two years ago and recently moved up to fourth place.  About a year ago, they released a marketing campaign called “For Those Who Do,” which was a series of videos and other advertising letting people know that their technology appeals to everyone, including the most intelligent. Since then, Lenovo’s purchase-consideration rate has soared 272 percent. Sales have benefitted and rose 10 percent to $1.36 million units sold in the last quarter.

China appliance brand Haier, is actually the leading home appliance brand in the world. They first got their reputation by selling affordable and reliable appliance in big retail stores. In the past five years, Haier America has improved the quality of their websites, participated in the social media marketing game, reeled out family-oriented digital promotions and even found time to support the National Parks Conservation Association. As Chinese brands and consumers are well affiliated with the National Basketball Association, Haier landed a marketing partnership with them.

No matter how bad U.S. politicians talk about Chinese brands, at the end of the day, if the U.S. can’t beat them, it could be smart to join them. China has for many years imitated the lifestyle and culture of America. There could be a blur of this in the near future.

Holiday Shoppers Won’t Spend It All In One Place

As we come closer to the holiday shopping season, retailers are strategizing to bring in sales from multiple channels. This means another spot, such as online markets, where people won’t have to stand in long lines or camp outside just to beat the crowd for the best prices.

It is predicted that the online and in-store shopping experience will be almost identical with pricing, functionality, and promotions. Google calls it the first “nonline” holiday season. Google has found that 80% of consumers will research online before buying a product this season.  About 51% of shoppers will research online and then make purchases in stores, whereas only 17% will look in stores then make a purchase online. 32% will search online, go to that retail store to view the product and go back online to buy the product.

Since a lot of smartphone users also have tablets and such, shoppers will use various devices to make purchases. With the help of mobile devices, shoppers can compare prices, find a nearby store and look for special offers. 85% of people will search for a gift on one device and make the purchase on another. Last year, 62% of shoppers used a smartphone to research products while shopping in stores. When it is said and done, with all the devices being in use this holiday season, the majority will end up making purchases on a computer.

Many retailers like Wal-Mart, Target and Best Buy are strategizing to prevent shoppers from going back online to make a purchase by matching prices with select online retailers. Target guarantees they will match the prices of Amazon.com, Walmart.com, Best Buy.com, Toysrus.com, Babiesrus.com and even the online prices of their own site.

This unification between online and in-store shopping will actually allow for higher consumer spending this holiday season. Last year, the holiday shoppers spent an average of $854 and this year shoppers are predicted to spend an average of $900 on holiday shopping. This increase will also be due to the fact that 46% of consumers plan to spend more time shopping around for gifts.

Consumers have been starting their holiday shopping earlier every year. This trend is starting to catch on with retailers and Google has discovered that mobile searches in its shopping category has reached a tipping point on Thanksgiving and shows low numbers after Black Friday. Wal-Mart is already planning to lower the price of the top 20 toys by then end of this month.

Some older folks are probably asking themselves whatever happened to those coupons you pick up in the middle of isles. Researching about products back in the day was going to stores and asking associates about it. Now we have YouTube videos, interactive advertising and special offers online that allows us to be so attracted to several digital channels. We can thank our technology for $54.5 billion that consumers are predicted to spend online this holiday, which is a quarter of all U.S. retail ecommerce sales this year.

Marketers Who Overlook Halloween Will Miss Out

By Casey Kurlander

A survey by the National Retail Federation (NRF) shows that Halloween is expected to be big this year- an $8 billion holiday to be exact.  According to the survey, seven in 10 Americans plan to celebrate Halloween this year, the most in the survey’s 10-year history.  Total spending on the holiday is expected to reach $8 billion, with each person spending about $80 on costumes, decoration and sweet treats.

Part of the appeal of Halloween is that it is the first holiday of the fall.  Some consider it the kick-off to the holiday season, and it gets people excited and puts them in the spirit for the months that follow.  Another reason that Halloween is popular with consumers is that it’s a relatively inexpensive holiday to partake in.  When compared to Christmas, Hanukkah, Valentine’s Day and even New Year’s, which often involve gifts and elaborate meals, Halloween is not that expensive.

This year, more people plan to dress up, throw or attend a party and hand out candy to trick-or-treaters.  Of the consumers spending this Halloween, their biggest expense is costumes.  The average person is expected to shell out $43.60 on costumes, up from $40.81 a year ago.  They will spend $32.35 on decorations, up from $28.54 and $24.25 on candy, up from $22.05 last year.

The steady growth in Halloween spending could prove to be an excellent opportunity for both retailers and marketers if they promote it more heavily, yet the holiday is overlooked by many.  This is largely due to the fact that Halloween falls in between back-to-school and Christmas, two of the largest retail campaigns of the year.  Both of these events attract much more spending than Halloween, and during the months of September and October (when most Halloween purchases are made), retailers are already mainly focusing on Christmas.  Many retailers officially kick off holiday campaigns at the end of October or early November, but holiday merchandise can be found in stores as early as September.  My local Costco in Delray Beach has had their holiday aisle set up for at least two weeks now.

“People are standing in line with a pumpkin looking at Christmas ornaments,” said Mike Gatti, a senior VP at the NRF. “Everyone complains about Christmas creep but people are in there buying it.”

Mainstream retailers that are caught trying to balance both Halloween and Christmas may be missing the opportunity that lies in the growth in Halloween spending. They look at it as just a smaller spending holiday that is squeezed between back-to-school and Christmas and do not consider it a significant part of the advertising and promotions calendar.  Those who do focus on heavily promoting Halloween are often costume retailers and those who set up pop-up shops, but they are usually not the ones who advertise like crazy.

Mr. Gatti explains, “Everyone from home centers to pet stores is taking advantage of the growth in Halloween.  So it could be a missed opportunity [to include it as part of] the ad calendar.”

With more consumers than ever planning to celebrate Halloween this year, it would be wise for retailers and marketers to take advantage of the opportunity. Those who promote the holiday with ads will likely catch the attention of the 70% of consumers who are planning to spend their hard-earned dollars on products that help them get into the Halloween spirit.

Top Email Promotion Ideas

 

The type of promotions email marketers deploy will ultimately determine how high the click-through rate is.  How can one be creative with their deals and drive clicks into revenue?    Usually someone is subscribed to an email lists because they want insider deals such as percentage off or buy one get one type promotions.

 

-Creating a sense of urgency through limited supply promotions are great ways to heighten click through rates.  Using an inventory ticker is also a great way to install a sense of urgency.  Usually a promotion of this type works the best with first time buyers who making infrequent purchases.

-Giving away expertise for free is also a great strategy to increase leads.  This type of promotion works best with higher priced or longer sale cycle items.    Offering free consultations, assessments, diagnostics, reports, tutorials, or any type of free service will drive higher quality leads.

-Thank your current subscribers for sharing by offering them some sort of incentive.  By offering this type of referral incentive, it helps more potential customers become engaged and coming back for more purchases.

-Offering some sort of instant percentage off or rebate to incentivize the subscriber into completing a desired action.  Offers promoting instant money off will encourage the prospective customer to return to your site.

-Price change notification promotions are great ways to create senses of urgency.  Notifying the subscriber of price increases but offering them a discounted price before the price changes on an effect date is a create way figure who’s really serious about making a purchase.

-Another creative way to capture the attention of your subscriber is by using newsjacking principles.  Leveraging events or popular news is a great way to grab someone’s attention.  Large companies do a very good job in leveraging certain holidays into their promotions.  For example, one could offer discounts on flowers for Mother’s Day.

-Offering other inside deals from partnered companies can also increase your credibility.  Offering your VIP promotions through your partnered email database is a great way to promote yourself.

Coming up with creative ways in order to make people think they are getting something of worth from your promotions is a great way to increase revenue.

Online Marketing Videos Are Getting Better Than Ever

By Casey Kurlander

It’s no secret that people usually don’t love commercials.  They spend their precious time watching a TV show or movie, and it’s interrupted with pesky ads trying to sell them a service or product.

It has been long-believed that viewers don’t like commercials because they have a short attention span.  A 2010 study by Visible Measures found that 33% of viewers click away from a video after the first 30 seconds, and 44% will leave after the first 60 seconds.  Given these facts, experts have advised those producing online videos for marketing to keep them short.  By keeping videos under a minute, they figured that the content will capture the viewers’ attention without completely losing their attention.

Recently online marketing videos have made a significant shift from traditional advertising and are squashing the myth that viewers have a short attention span.  The trend suggests that it isn’t their attention span, but rather the fact that video advertisements were too promotional and boring to be watched for longer than 60 seconds.  Instead of bombarding viewers with product-oriented messages, companies are creating new videos that are informative, entertaining, and proving to hold their attention for three, five, or even ten minutes.

The power lies in the compelling content of these high-quality videos.  Instead of revolving around a particular product or service, these videos are about something much bigger.  The videos convey the message of what the brand stands for and is all about, without screaming “buy this product.”  More like mini-movies than sales pitches, the audience’s attention is captured through storytelling.  Product placement is subtle, if there’s any at all, and sometimes the company is not mentioned until the end of the video.  The ad is no longer just something to take up space between TV shows and movies because its content is what people actually want to watch.  And when the content is something that viewers actually care about, they will stick around for longer than a minute.

Here are some examples of how some companies have used video storytelling for marketing:

Pepsi Max’s “Uncle Drew”

In this five-minute promotional video for Pepsi MAX, NBA Rookie-of-the-Year Kyrie Irving was transformed into “Uncle Drew,” an old man who joins a pick-up basketball game of unsuspecting street players in New Jersey.

He starts off by sloppily throwing an air-ball and then missing two bank-shots and a pass.  The audience begins to shake their heads and doubt “Uncle Drew,” and then all hell breaks loose.  He steals the ball, and all of Irving’s NBA moves come out.  It’s one slam dunk, turnover and three-point shot after another.  The crowd goes nuts.

The company created “Uncle Drew” as a way to promote its tagline for Pepsi MAX: “a zero-calorie cola in disguise.”  The brand is not mentioned or shown until the end of the video.  It currently has over 6.5 million views on YouTube.

Quiksilver’s “Dynamite Surfing”

In this 80-second video, a young boy throws a stick of dynamite into a river, creating a wave that his friend surfs on.  The video was a viral hit, with over 10 million views on YouTube.  It prompted a fierce debate about whether it was real or fake, drawing more attention to the brand (it was later admitted that it was fake).

This ad isn’t about making a sales pitch.  It’s about something much larger- representing a culture- that Quiksilver is proud to be a part of.   Product placement is subtle in this video, and once again the brand is not mentioned until the end.

Trackability of Email Marketing

Email marketing is a great choice for your marketing campaign. It is cost effective and trackable. You can actually monitor how many people open the email, how many people click the links in the email messages, how many people direct themselves to your website from the email, and so on.

Tracking conversion rates is a powerful tool to see exactly which aspects of your campaign worked and what did not work. For example, if a low number of people opened the email, then you should probably change up your subject line. If a high number of people clicked on your email, but did not click on any links in the email, then you should probably work on your creative. If a high number of people opened the email and linked to your website, but did not follow through with a purchase, then you may need to work on your website, pricing, product, or a variety of other elements.

3 Recent Trends in Direct Mail Marketing

  1. Direct postal mail marketing is making a comeback! Research shows that people are very likely to read something that is physically in their hands as opposed to on a screen or billboard. Many people flip through their mail daily in search of coupons, promotions, or other offers from companies.
  2. Personalization is another trend in direct mail marketing. Whether it be through postal, email, or SMS, personalization is essential to grab the attention of your target audience. People pay attention when they see their name on a piece of paper or on a screen.
  3. Of course, personalization will reach its fullest potential if and only if your lists are targeted. It is absolutely vital to segment the market and narrow down your target audience as much as possible. Sending these messages to a targeted list will save time, effort, expenses, and the rewards will be great!