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| Apr 11, 2009 by Mark MaierSharing with you the focus on the recession that Ad Age has recently presented includes some great case studies in success and failure through the article "Five Brands Doing It Right, Wrong", among the highlights of those doing it right....
"HYUNDAI MOTOR AMERICA Thanks to its unique Assurance program and aggressive, high-profile ad buys, Hyundai is bucking auto-industry trends. After the automaker came out with a big push behind Hyundai Assurance, sales rose 5% in January and February, as much of the auto industry suffered drastic sales declines. While it's not clear how many people will take advantage of Hyundai's offer to return the vehicle if they lose their job, the offer itself has differentiated the brand from competition. And, more importantly, it's eliminated a major barrier to making a big-ticket purchase: fear.
MILLER HIGH LIFE Cheep beer is a recession winner, and Miller High Life has capitalized on that. The MillerCoors brand's tone and positioning are perfect for these tight times. And actor Windell Middlebrooks, the lovable beer-truck driver who rails against all things pricey, is a character ready-made for this economy. Most recently, he made an appearance during Miller High Life's one-second Super Bowl ads, which mocked excessive spending, taking a dig at rival and Super Bowl sponsor Anheuser-Busch. Pre-game hype led to a sales increase of nearly 5%, followed by a 9% increase the week after the game.
Getting it Wrong
DE BEERS Last holiday season, De Beers doubled its U.S. marketing budget in the face of gloomy news reports. The diamond purveyor believed -- incorrectly, as it turned out -- that diamond sales would be robust as consumers looked for gifts with enduring value. Worldwide demand for diamonds has softened, however, and parent company LVMH saw profits decline 16% in its watches-and-jewelry division last year. Even more telling, only 1% of 434 retailers surveyed by National Jeweler said De Beers' marketing efforts helped boost sales.
EBAY Though the recession should arguably be eBay's time to shine, sales slipped 7% in the fourth quarter. Rival Amazon, meanwhile, has emerged as a recession bright spot. EBay has alienated third-party sellers and been unable to create a unified shopping experience, which has led to an overall decline in visitors. It must be aggressive if it hopes to turn things around. First-quarter expectations are for sales to decline 6% to 18%.
GENERAL MOTORS CORP. The auto giant all but killed sales of Saturn, Hummer and Saab when it announced the brands were under review in December. Since then, GM has let the news define it. Marketing has been limited to retail-oriented messages intended to drive new-vehicle sales, rather than brand-oriented messages that could change consumers' perceptions of the company. Dealers are clamoring for the latter, given that the former seems to be doing little: Sales across GM's eight brands declined 53% in February from a year ago.
STEIN MART Stein Mart offers department-store merchandise 20% to 60% cheaper, which should be attracting plenty of customers. But in February, same-store sales fell 12%, while rivals TJX Cos. and Ross Stores reported sales were flat to up single digits. Now, Stein Mart has launched a campaign touting "More for less" and "Value is the new fashion chic." The messaging is appropriate, but a dime a dozen in this tough retail environment.
WENDY'S The fast-food category has grown in the past year, but Wendy's has continued to lose share. It has done little to differentiate itself from the competition, which has only become fiercer as the economy has sputtered. Its more-traditional creative, featuring plenty of product shots and an emphasis on women, has failed to boost sales. And though a recent value push -- three sandwiches each for 99 cents -- may be goosing sales, it also does little to set the chain apart from value-minded rivals that already own that space.
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