Online marketing to gain relevance

The New Year is here and I would like to share with you my thoughts of the likely changes that I see taking place in the Latino marketing arena in 2010. I will be posting twice a week. Stay tuned as I will be posting more next week.

Recent studies show a ten percent increase in internet usage among Latinos from 2006 to 2008. Although the Latino population’s use of the internet lags behind other groups, Latinos are catching up fast. U.S.-born Latinos have higher internet access rates, but foreign-born Latinos’ internet access provides the biggest opportunity for growth. This year will mark an increase in the expansion of these opportunities. Univision.com, the largest Spanish-language portal in the U.S., has seen increased partnerships with sponsors. General Mills is the exclusive sponsor of the portal’s “Cocina” widget allowing Web site visitors to browse by meal, country or ingredient. Also in the "Cocina" lineup are video and cooking tips from celebrity chefs' appearances on the Univision network shows. Other companies such as Flock, State Farm, Toyota and Ford have teamed up with Univision.com to launch online marketing campaigns. The Univision portal also launched its first virtual online novela last year, which could only be viewed online. And since You Tube signed a deal with Univision last year, You Tube’s Hispanic audience has grown by 80 percent. With the increasing number of Latinos online, those of us who work in marketing and PR will have to incorporate more online components into our campaigns.

Taking Brand PR on the Road

I didn’t realize it at the time but looking back on my childhood, my love affair with automobiles started with my first Matchbox Car.

My father was all too proud to see that I shared his passion for cars, especially the classics. When I was a kid, he used to take me to a classic car showroom in Gladstone N.J., which housed an impressive collection of rare, vintage sports and race cars. Every imaginable European marque was represented in the collection, and whenever my father asked me if I wanted to go back, I didn’t hesitate. When I was old enough to drive I would make trips on my own, taking care to learn as much as I could about each model from the specific history and ownership of the car, to the designer, all the way down to the original factory equipment. My fascination grew with each trip, and when I went off to college and found myself in need of a job, it was the first place I thought to look. I didn’t actually think I would get the job, but I soldiered on and went anyway. I met with the owner and let him know I would be willing to do just about anything, so long as I could work around these beautiful works of art. He took my number down and said he would call if there was an opening. I never expected a call back.

Lo and behold, a few months later the call came. The owner told me he needed someone to help run errands, detail cars, take care of DMV paperwork and, most importantly, to shuttle cars back and forth between showrooms, repair and restoration shops, dealerships throughout the Tri-state area and long distance road trips to deliver cars to their new homes. Life was complete.

During the time I worked at the showroom I developed a particular fascination with Italian and British sports cars, particularly Jaguar and Ferrari. I drove just about every model Jaguar and Ferrari from the ‘60s through the early ‘90s and became quite familiar with the history behind each example. The Ferrari Dino and Jaguar D-Type were my favorites - just for the record. I listened closely to the way in which my boss would communicate with prospective buyers, spending as much time as necessary to educate them about the subtle nuances of each example. This was no ordinary sell. Emotions play an important role in the purchase of such exquisite automobiles, especially when you’re paying $250K or more for a car. History is everything when buying a classic car and telling the story behind each car was an art in itself. Most would say, however, that these cars literally sell themselves. Although there is some truth in that sentiment, there is a much more powerful element at work here. Brand PR.

Automotive companies like Jaguar and Ferrari have a long history of nurturing emotional connections between the consumer and their brand by promoting a feeling of trust, loyalty and lasting value. Consumers know they are not only purchasing a special car with a long and illustrious history on the racetrack and on the roadways but a commitment to continue to produce the finest cars in the world. Take one drive in either of these particular brands and you will know.

One particular brand that I have been following with great enthusiasm is Tesla Motors. Here is a brand that is breaking away from the proverbial pack and really differentiating itself in the marketplace. No other car company in recent years has tapped into the imaginations of consumers in the same way as Tesla Motors has. The company’s 2010 Roadster has a range of 244 miles, goes from 0-60 mph in less than 4 seconds and has a sleek design that offers “performance with a conscience,” according to Tesla. I couldn’t agree more. Tesla’s Model S will debut in 2011 for those looking for a high-performance 4-door sedan with an ever longer 300 mile range. In fact, Tesla recently showed off its all-electric Roadster sports car at the 2010 North American International Auto Show. Lee Hawkins from the Wall Street Journal covered Tesla’s appearance at the show and the company’s "Roadster Road Trip" to get there. Definitely worth the read.

This is a great example of a forward-thinking car company that is tapping into ever-increasing consumer demand for the next generation of high performance automobiles. I can think of many ways that Brand PR would benefit Tesla Motors as they tap into this growing market and will have more thoughts on Tesla as they are certainly one to watch.

The paywall problem and how Brand PR can help

The Economist declared 2010 “the year of the paywall.” As newspapers continue to adjust their business models, many outlets are considering using a paywall and charging for content. The Wall Street Journal has successfully used a partial paywall model for years. According to The Economist, The Wall Street Journal expects to generate more sales from content than from advertising this year.

It is rumored The New York Times is about to make the move towards a paywall model soon. For an outlet that has been providing free content for years, such a move presents a dilemma. How can you convince millions of readers to start paying for something that used to be available for free? And how do you convince them to stay when so many other news outlets and bloggers are offering news coverage without a paywall?

That’s where the strength of an organization’s brand identity comes in.

Readers pay for The Wall Street Journal because they believe it has something unique to offer. Whether it’s journalistic style, format, specific journalists, subscribers believe The Journal brand offers something of value and so they’re willing to pay.

Smaller outlets that have been forced to rely heavily on syndicated content in light of severe staff cuts will face a tougher time justifying a paywall. However, a paywall isn’t the only possible solution. Other outlets are experimenting with different business models. For example, The Seattle P-I converted to an online-only format last year. A similar model is leveraged to great success by outlets like The Huffington Post and Slate.

As the news landscape grows more competitive, it becomes more important for outlets to differentiate themselves from the crowd.

PR Strategy – No “Spitting Wars”

It’s a fairly common strategy to call out your competitor’s flaws (perceived and/or actual) in a public forum (e.g. Progresso/Campbell’s Soup Wars, AT& T/Verizon’s map dispute, I’m a Mac/PC). Though this strategy often leads to highly publicized, drawn out and costly litigation, it has also yielded improved sales for some companies.

There’s an alternative to the “spitting war” strategy. Here‘s the case study.

Most consumers don’t realize that “fresh, natural” chicken can include products that have been injected or plumped with sodium phosphate, cane juice, corn syrup and other “enhancers.” Our client, Foster Farms, the leading poultry producer on the West Coast, had always differentiated itself as producing truly 100 percent, natural, fresh poultry without any added ingredients. The other guys were injecting their fresh and natural-labeled chicken with salt water, ostensibly for better flavor but in fact adding weight and thus the total cost – and sodium content -- to consumers. With labeling loopholes, though, most consumers didn’t know the difference.

Foster Farms had enough, but how do you out your competitors’ deceptive labeling practices and market that without painting yourself defensive and y whiny in the process? The answer – with humor, with award-winning TV advertising and, not least, with effective public relations working on all fronts.

Our job was to help consumers understand what they were getting – or not getting – when they bought fresh chicken. We informed them about an issue they should be concerned about without scare tactics or shock value. Our approach was credible, reasonable and caring rather than pointed or aggressive

The upshot – Consumers remained loyal to the premium Foster Farms brand even in a tough economy. And the campaign, as lauded in an L.A. Times editorial (and reprinted in the Sacramento Bee and other dailies), won praise for its integrity.

“Foster Farms, which developed an entire marketing campaign around the fact that it does not plump its chicken, is calling on the U.S. Department of Agriculture to withhold the “all natural” label from enhanced chicken.

“Although we hate to take sides in corporate competition, we think Foster Farms is right. If anything, its campaign is too tame. It's tempting to imagine a label that identifies heavily enhanced chicken as "chicken-like product, with X% real chicken." At the very least, enhanced meats should be conspicuously labeled as such, and the list of added ingredients should appear in larger type. Shoppers should know at a glance what they're really getting.”

Celebrity Chefs Become “Brands”, Heat Up Cookbook Sales

The last time I perused my collection of cookbooks, I realized that 90 percent of them were written by Food Network chefs. What is it about the network and the chefs that make me purchase their cookbooks over those authored by lesser-known, yet more qualified, chefs?

The Food Network chefs have friendly and cheerful demeanors and they make me feel like I can master any recipe. I know that some of them never went to culinary school, but that just makes them less intimidating. Most importantly, because I’m familiar with the chefs, I know that I can trust them. For example, I own the entire Barefoot Contessa cookbook series by Ina Garten, my favorite host. Since I watch all of her shows, I know that I love the dishes she prepares and that she simplifies each step as much as possible. Ina Garten’s show on the network has made her into a beloved “brand” to whom millions of home chefs have an emotional connection. Her show provides a venue to constantly promote her products, unlike most cookbook authors. I trust the Ina Garten, Bobby Flay, Giada de Laurentiis brands because I know more about their products than some author I’ve never heard of. Plus, if a particular step is confusing, I can go to the Food Network Web site to replay an episode, rather than risk ruining a meal.

Even though some criticize the concept of televised cooking shows, saying that they’re intimidating and unrealistic, I always learn new cooking techniques and feel inspired to try a variety of recipes. I’m just one of the millions of Food Network fans who share this sentiment; the network “commands more viewers than any of the cable news channels“. The allure of celebrity chefs was noted in The San Francisco Chronicle, which listed “celebrity chefs” 6th among the 10 top trends in dining from the last decade, saying that chefs are “increasingly defined by their television appearances”. So, much like trusting a well-known brand in my supermarket, I rely on the Food Network brand of chefs to ensure my meals come off without a hitch.