Mark Kolier’s Blog

Archive for August, 2010

I don’t watch a lot of network television (or television in general) and even less in the summer. When I do watch it is to relax and aside from a couple of favorite shows on cable, I primarily watch sports on networks and local and national cable channels. I do read a few national magazines and am an inveterate reader of newspapers (yes I know SO old school).

Over the weekend when I was flipping through the channels before heading out I saw the network baseball game and golf tournament. For some reason my thoughts drifted to fast food and realized that I had not seen an ad on television for McDonald’s, Burger King, or Wendy’s for a long time. Thinking more about it I don’t recall seeing them on page in magazines either or even hearing any of them on the radio. And by the way I watched a good amount of the Primetime Emmy’s last night and did not see one ad for any of them.

The last I recall hearing about any of them was the cheeky McDonald’s ad about the dollar that is hungry and what you can do with it. That might have been earlier this month so it’s likely that I just have not been listening to radio all that much lately.

I asked around to a couple of people if they were familiar with any ad campaigns for any of the big three burger leaders (actually McDonald’s is way far out in here so putting them in the same conversation would thrill Burger King and Wendy’s). Nobody I talked to could name any campaign.

Could the targeting be THAT good? Are the big three running ads in places of which I am not aware? I’m not one to eat in fast food restaurants any more than a handful of times a year. And I understand that I am far from the target audience in age or demographics. But I cannot remember any time where I had no idea of any of the campaigns run by the fast food outlets. Maybe they scale back campaigns in a big way in the summer time and are readying a deluge for the fall? With football season around the corner I could see that.

But what gives here? Am I missing the boat entirely? Are you aware of current ad campaigns run by McDonald’s, Burger King or Wendy’s? Oh and I don’t miss Jared at all thank you very much….

I’ve been a fan of the HBO show ‘Entourage’ since it debuted more than 5 years ago. It’s a half hour fun respite which offers a view into how things might be in Hollywood. There are thirteen episodes per year and next year is the last season and there apparently will only be 6 episodes made or so. It’s gotten so popular that it is being moved to syndication although I have trouble seeing how that will work since the language and content both appear to be not ready for broadcast television.

This season one of the story lines has Turtle helping his now girlfriend Alex promote her Uncle’s tequila brand made in Mexico called Tequila Avion www.tequilaavion.com . A good and interesting story line that branches out into nearly all the characters (not the Ari Gold character brilliantly played by Jeremy Piven, but I’d love to see Ari getting blotto on Avion).

What I did not realize until this week is that Tequila Avion is an actual product sold in stores. I saw a billboard promoting the brand and my jaw kind of dropped. A story in the New York Post this month http://bit.ly/bQ2tnb offered background on the founders of Avion and how they did not pay a penny for all the ‘priceless publicity’ for the new brand.

I had noticed that ‘Entourage’ does promote a number of brands at various times during the show. Johnnie Walker Blue, Belvedere Vodka, Skyy Vodka, (lots of alcohol), Bluetooth, Victoria’s Secret to name just a few all have been featured.

What makes it work so well is that the placements are seamlessly integrated into the story and they feel appropriate and right such that I really don’t notice that this is an obvious marketing tactic during the context of the show itself.

This is a trend that is growing and will continue to grow. Nobody likes a cheesy come-on but Tequila Avion is one of the first brands I can recall to be introduced within the context of a television program. I have no problem with it when it is done right as it is in the case of Tequila Avion

What do you think – is this a good trend? Bad trend? Does it offend you?

I started and have piloted CGSM Inc. for more than 14 years. The changes we’ve undergone over those years are both necessary and remarkable. The changes are continuing (exciting and fun!) and I know that won’t ever stop.

My management style is not a yelling one. Maybe a couple of times over the fourteen years I have raised my voice – not to team members. I remember one particular occasion as if it was yesterday but it actually was more than 11 years ago. A merchant with whom we were about to purchase a substantial amount of paper was asking about credit. We had run the business very successfully for several years and took discounts on all of our paper bills (you could look it up as the saying goes).

A then-young representative was giving me a bad time about issuing credit for several hundred thousand dollars worth of paper. At the time we had 5 employees 5 desks and 5 computers on those desks in a small office. After a back and forth discussion he offered ‘Hey, no offense but really you’re just a guy with a desk and a phone’.

I leapt at him through the phone line. I went ballistic. There was, shall we say some colorful language used and I’m not terribly proud to admit that. Over the ensuing years I’ve thought about why it bothered me so much. I took it as a huge insult. I still feel that way to a degree but wonder if what really was bothering me was that he was right! After all, what was I really but a guy with some ideas, some employees, and an approach to doing business that was successful (at least I thought it was).

I’m older now and with a little luck a bit wiser. And I would not react the same way today if I were to be in the same situation (we’ve been meeting with lenders lately so that’s what brought these thoughts to mind).

Today, our team is bigger, consequently the responsibilities to those people is even greater, as is the risk. Correspondingly our responsibilities to our clients are also bigger and wider. But at the root of it all nothing has changed. I am still a guy with a desk and a phone -and a computer, and a PDA and a laptop and a bunch of other things to aid in being more productive. We’re all about new and better ideas and procedures and that is our greatest asset – and I am truly proud of that more than anything else.

Epilogue – a couple of years later the same young representative called me to tell me that he was starting a paper brokerage with an associate. I tried to hold back but just could not do it. ‘Hey Charlie – I guess that means you’re just a guy with a desk and a phone’. Good moment for me.

Sometimes what goes around comes around.

Are you just a guy (or gal) with a desk and a phone?

Facebook launched its new location based service ‘Places’ last week. Like many things with new Facebook products invasion of privacy was an issue. In the case of Facebook places it allows your friends to broadcast where you are and they can do this even if you are not there.

This can be dangerous if you are having a spat with a friend and he or she ‘broadcasts’ that you are playing hooky or golf bar during the work day (when you were not there) and your boss finds out. The default settings allow this intrusion and you have to go into the application to change this in order to stop it from happening.

Meanwhile the folks at Foursquare whose location based service allows you to check in and send that update to Facebook are trying to figure out if FB is out to have their lunch. Since Foursquare has no revenue model, it would be a light lunch at best. I’ve been checking in and using Foursquare for almost six months thinking that they would figure something out but it’s taking far too long. The message I am getting from most of my friends on my check-ins is – why?

So in my view neither Facebook nor Foursquare accomplished much last week. But couponing site Groupon (www.groupon.com) had a GREAT week (see the article in Forbes) http://tcrn.ch/bLhcxt . Groupon launched its first nationwide deal – at $ 25.00 off discount on a $ 50.00 purchase at Gap. It became so popular so fast that it actually crashed Groupon’s servers for a time. In total it looks like more than 400,000 coupons will be sold (Figure more than $ 11,000,000 in total). Groupon won’t disclose the specifics of the deal regarding profit margins. Since Gap offered such a steep discount I’m not completely certain what they accomplished besides some pretty expensive brand buzz.

Groupon’s ‘deal of the day’ is gaining momentum and the company is actually making money (yes they have a revenue model – how about that?!). From Wikipedia – The company offers one “Groupon” per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint’s platform: if a certain number of people sign up for the offer, then the deal becomes available to all, if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools. Groupon makes money by getting a cut of the deal from the retailers. There are certain businesses that Groupon will not offer its services to, including shooting ranges, abortion clinics, plastic surgeons and strip clubs.

There are other couponing sites – Thrillist, Woot, Living Social, MyCityDeal, but Groupon is the current first round leader.

So while Facebook frets about the new movie (Social Network,)coming out that has less than flattering portrayals of Marc Zuckerberg and the team that got it started, Foursquare continues to try to figure out how it could actually make some money, Groupon is coming on strong and I think they may have one of the strongest new revenue models out there.

Are you going to give Groupon a try?

With our daughter a rising high school senior (when exactly did that expression become so popular?), our family is deep into college consideration. Having been through this with our son four years ago we have a little experience. But like everything else this is going to be different.

We took a trip this week to visit two more universities – two large public institutions – our daughter wants the whole college experience complete with big time athletics (to attend not to play), academic programs and diversity in the student body, and of course a vibrant social life.

The seemingly endless amount of college rating books offer a fun and interesting read. But I came to realize that the marketing of those colleges only begins with those books. Should a student show interest (and even if they don’t) the never-ending parade of literature sent via the USPS (it may be keeping the USPS in business – at least for now) is truly impressive.

Colleges and universities have definitive brand identities. And yet the marketing of these institutions displays the very essence of direct marketing. What could be a more personal and one-to-one decision than deciding where to spend 4 years (or 5 or 6 as it is these days) of one’s life. Not to mention as much as $ 200,000 at the top end for those that can afford it!

Statistics offered by colleges and universities play a big role. SAT/ACT scores, GPA, % of incoming freshman accepted vs. total applications, – this creates cachet and excitement, as well as angst and heartache. Our daughter now has her heart set on a school that might be considered a reach – she claims she will be mortified if she does not get in. The performance of athletic teams, as well as top line artists coming to perform at the school creates buzz and excitement – all adding to its brand identity.

The experience of visiting the school, taking the tour and experiencing the campus is invigorating and always makes me (and my wife) wish we could go back to those carefree days of college (which somehow did not seem so carefree when we were there). Like my Dad still says – ‘education is often wasted on the young’.

Years after graduation the alumni are encouraged to remain a part of the family (and donate a building if you can please – or whatever you can) and thus the brand relationship continues. Word of mouth marketing comes into play aiding the brand positioning with alumni waxing poetically about their days on campus and all the great things that were experienced.

How often do you reminisce about those college days? Are you helping advance your alma mater’s brand?