Thursday, September 04, 2008

New Target Commercial

As is definitely expected, I pay a lot of attention to marketing from Target Corp.

This week they released a commercial that strays from their "normal" routine of advertising. A commercial first broadcast on Sunday uses price points in the advertisement. This is the first time Target has done that in quite some time.

Here is the commercial.



When I first heard this commercial would be coming out, and that Target would be using price points, I was a little worried. I am under the strong conviction that marketing on price alone is a bad idea. Seth Godin is a big believer in this, and it is one of the biggest lessons my Dad has given me over the years. The idea is that people will buy your product or service if it is the cheapest, however, theoretically someone will always be able to go cheaper, so there is little point in trying to market on that angle.

My first thoughts as to what this price point commercial advertising might entail looked something like this. I thought the commercial would be something where price would be the focus and they would be stepping away from the really artsy, fun commercials with good music we are used to.

Fortunately when I actually saw the commercial, I was pleasantly surprised. The commercials are quite similar to what they've been in the recent past, with scenes focusing on a certain product or two, the biggest difference is the specific price points for the items.

What is your take on this new commercial and new direction from Target?

Thursday, August 28, 2008

Fresno Co-Housing

Check out this development in North Fresno called La Querencia. It is a 28 unit sustainable neighborhood with common areas, pools, vegetable gardens, and solar panels. It looks pretty neat, and if I were in any position to be buying a house right now, this would be something I might consider. These are the kind of things of which Fresno should try and get a lot more.

Via Fresno Famous

Airline Stupidity Follow-up

I want to write a follow up post on my blog posts about United Airlines and the airline industry in general.

My Dad shared with me this Harvard Business Review podcast on the same topic, and it got me thinking more about the airline industry pricing and service.

I want to first share with you a flight I was on in Europe, from Brussels to Dublin a few years ago. I flew on Ryanair and my flight cost a total of about $16 USD after taxes and fees. The flight itself was 0.01€ (about a penny). This flight had no reserved seating, so it was almost a mad rush to get on the plane so you could sit where you wanted. There were absolutely no "frills" and if you wanted anything you would need to pay a premium (including checked luggage, beverages, etc.) These flights also came with a lot of advertising from posters, flight attendants, and I think even the pilots. I loved this flight, first and foremost because it was cheap and I was trying to travel through Europe with spending as little money as possible. But also because I got exactly what I paid for on the flight. I think this is a perfectly acceptable way to do business as an airline, or any other business and I think a company can do well at it. Ryanair may even be coming to the US.

The other way to operate an airline is to go all out, and provide all those frills for your customers. Obviously, you have to charge for those services, but they are all bundled in the price. This will also work, because people that don't want to worry about securing all the little frills will pay the premium to have them all included. This is evident in first and business class. People in first class arrive at the gate with the plane at the exact same time those in economy do. The reason people pay 3-7 times more for a first class ticket is exactly for those little frills. Being on a plane is almost exclusively for one reason and that is for travel/transportation.

My biggest issue is when these airlines are in the middle of cost increases and decide to go ahead with frill decreases. I think it is very dangerous to try to be in the middle somewhere, because that is where companies will get lost.

Here is my idea.
  • An airline should have a bare bones fee structure for the flight.
  • They could have different classes/cabins that would offer more leg room. Further back in the plane the less leg room the cheaper the flight.
  • Booking online can be utilized in a way that allows someone to choose all the frills they want for the flight. This could include beverages, snacks, light meals, blankets, pillows, checked luggage, magazine, newspaper, etc. The list could go on.
  • Each frill chosen would be an extra cost, and added onto the total cost of the flight.
  • Kiosks (digital or real people) could be accessed throughout the airport incase you wanted to add any of these frills to your flight, and of course when you check into your flight any of these frills can be added on.
  • I would remind customers to add any of the frills before boarding the plane. This way the airlines would not have to worry about bringing aboard extra magazines/food/etc. that are not going to be consumed. This will help alleviate fuel costs for extra weight.
  • For this kind of bare bones airline, advertising would be a great addition, but as always should be done tastefully and as unobtrusively as possible.
  • There could be other variable pay structures implemented as well. I've heard ideas before such as pay per weight, so that a passenger would have to not only pay more for heavier luggage, but their own body weight as well. The more weight the more it costs the airline in fuel.
What do you think of this airline structure? Would you fly on this airline?

Tuesday, August 26, 2008

All Foam and No Beer

Watch this video of a guy who looks like he is trying to win the fight before it even gets started by showing off and intimidation. It doesn't work.



http://www.youtube.com/watch?v=dMZfdCkYPig

I think this has marketing implications too. You can have the best marketing program around, but if your product or service can't live up to the marketing, the fight is going to be over very quickly.

Via Dallas Stars Blog

Geek Clock

If you enjoy math you will probably enjoy this clock. Instead of your regular 1-12 numbers on the front, it features the unit circle with radians and degrees.

It is also fairly inexpensive at $15.99 from Cafe Press.




Via UberReview

Prankster

Watch this video of pranks played by a magician dressed up as an old man on a subway train and an amusement park. It is sure to put a smile on your face.


http://www.youtube.com/watch?v=AnUOQvQFFMU

Via BoingBoing

Everything That Happens

If you haven't heard about David Byrne and Brian Eno's new album yet, Everything That Happens Will Happen Today, you should definitely check it out.

You can listen to the entire album online for free at the website, as well as buy/download DRM-free digital copies, buy the physical album, or even the collector's edition.

The music is pretty good, and some of the songs are great on the first listen to.

More United Airlines Stupidity

I've written before about a stupid decision made by United Airlines to try and save money. It appears they are at it again with announcements that United Airlines will no longer offer complimentary snacks to economy class fliers across North America. After this, they will no longer offer free meals in domestic business class flights, and eventually end all complimentary meal service in economy class on select European flights. On top of this they will be raising prices of food you can buy on board.

On my recent trip to New Orleans I flew on two different airlines, and was very disappointed to find out that on US Airways they no longer offer complimentary drinks, not even water! American Airlines still offer complimentary water/juice/soda/coffee, but no longer complimentary snacks. This causes me to compare these recent flights to airlines such as Horizon, which not only offer complimentary beverages and snacks, but even have an offering of complimentary beer and wine. It is these little things that often attract me to these airlines.

With a lot of these airlines taking away complimentary snacks and even complimentary beverages, I think it would have been much smarter for United Airlines to keep their offerings intact. At least for me, it is very easy to spend 5-7 dollars extra on an airplane ticket and get a complimentary snack/beverage when I am already paying 300-400 dollars on the ticket itself. When I get onto an airplane I would much rather not be bothered with things like worrying about bringing enough singles to give the flight attendant exact change for the "jumbo" cookie that looks semi-appetizing. Let me pay for things in as few transactions possible, it just feels like I'm paying more if I have to pay a few different times.

Via FastCompany

Thursday, August 21, 2008

He's Just That Good

Check out this video recently blogged by Luke Mundy, it's really great.

I think I especially like it because of all the balls I lost in the water on Saturday when I went golfing. This little skill would have come in very useful.

Tuesday, August 19, 2008

My Trip to New Orleans

As I talked a little bit about before, I took a trip to New Orleans earlier this month. I went with my Dad, who was attending the Global Shaklee Conference and along with attending the events and learning about some of the VERY exciting product announcements, we got to see some of the city of New Orleans, LA. We had a few opportunities to walk the historic French Quarter and it was interesting how many places in the downtown corridor I remember from video of the city after Hurricane Katrina.

I'm going to share with you some of the photos I took while in New Orleans.

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A big jester in a food court in the Riverwalk Mall

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A large fountain with the Mississippi in the background.

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Cemeteries are a lot different than what I'm used to seeing. It appears that all graves are above ground. (Possibly due to New Orleans being below sea level?)

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A view of the stage at the conference.

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My Dad blinged out with all the awards him and my Mom earned over the past year.

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The city has amazing color on the buildings, especially in the French Quarter.

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Tile street signs on the walls of buildings.

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A view of St. Louis cathedral.

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There is a lot of wrought iron through New Orleans.

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A balcony overlooking Bourbon Street. And yes, those are giant beads.

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More color.

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Walked down Bourbon street.

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More wrought iron.

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I was able to try some amazing food while in Louisiana. On this plate is blackened catfish topped with lemon pepper shrimp and crayfish, with a cajun baked potato as a side.

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A view of Bourbon street by night. It is a very bustling place.

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Dad and I exploring Bourbon Street in the evening.

If I were to describe New Orleans in a phrase, it would be a tropical european city. The architecture (especially in the French Quarter) is very European, but as you walk down the street it is commonplace to see palm trees. The city definitely has a lot of personality, but there are some areas that are boarded up and neglected.

It was a great trip, especially since I got to spend time with my Dad. Living in different parts of the country does not allow a lot of opportunities to see my parents, so it is nice when I get the chance.