J.C. Penney’s Predictable Stumble
Retail giant J.C. Penney reported some fairly grim results today. Fiscal first-quarter sales fell a remarkable 20%, the company lost $163 million and it suspended its dividend. The news apparently caught many investors by surprise; the stock dropped more than 10%. But if you’ve been following J.C. Penney the results are quite predictable. There is nothing […]
Lipitor, Pfizer and Pharma’s Branding Problem
The Wall Street Journal reported this week that Pfizer is giving up on Lipitor, dramatically cutting back on marketing support. This isn’t surprising. Lipitor, Pfizer’s multi-billion dollar cholesterol lowering medication, lost patent protection at the end of 2011. A number of generic medications will soon enter the market, so Lipitor won’t be able to maintain […]
Best Buy and the Great Amazon Tax Subsidy
Best Buy is certainly struggling. The company’s stock was above $50 per share back in 2007. Today it is trading at about $20. The company is closing stores and analysts are skeptical about the future. The company has a number of issues to address but I suspect the most important issue is what I call the […]
Marketing Strategy Review: Nespresso
Earlier this week Nespresso announced that it was investing in its first national television campaign in the United States. This is big news. Nespresso, of course, is Nestle’s remarkable growth engine, a highly profitable business with 2011 sales of over $3 billion, growing about 20 percent per year. The national television advertising is a big […]
Some Marketing Insight from Kellaway
Lucy Kellaway, columnist at the Financial Times, had a terrific column in yesterday’s paper. The article has some important insights about marketing and influencing. It is also highly entertaining. I recommend you read the article. Here is the link: https://www.ft.com/intl/cms/s/0/ab3795b8-8ef3-11e1-ab32-00144feab49a.html#axzz1terwY5fM ***** I’ve heard from a number of people that they’d like me to do more frequent blog updates, so I’m now planning […]
The Amazing Lululemon
Every once in a while a remarkable brand appears on the scene, one that stands out in the cluttered world we live in. Lululemon is one of those brands. Chip Wilson founded Lululemon in Vancouver, Canada in 1998. Apparently Chip tried yoga and loved the experience but he couldn’t find good yoga apparel. So he […]
Sony’s Branding Problem
Today’s New York Times has a fascinating article about the decline of Sony. It really is shocking how far the company has fallen. Sony hasn’t made a profit since 2008. According to the article, the company is now worth one ninth of Samsung and one thirtieth of Apple. You can read the article here: https://www.nytimes.com/2012/04/15/technology/how-sony-fell-behind-in-the-tech-parade.html?_r=1&ref=business […]
Corning’s Gorilla Glass Campaign: Good Thought, Weak Execution
Corning is running a rather striking campaign for Gorilla Glass, its high-tech materials for mobile devices and televisions. The latest ad features a large gorilla and a big number two. Does it work? Well, the thought is right. Corning is trying building a brand around its unique glass. This makes a lot of sense. […]
Pepsi’s Upbeat Spin
What do you say in your annual letter when you’re running a company that has delivered disappointing returns for investors and is getting clobbered by competitors? If you are Indra Nooyi, CEO of PepsiCo, you talk about all the positives. According to her just published annual letter, things are going quite well at Pepsi. She […]
Apple and the Power of Differentiation
You can learn a lot about marketing strategy by studying Apple. Perhaps the most important point is this: be different. The folks at Apple clearly understand the power of differentiation. They are masters at both creating it and destroying it. Apple does a phenomenal job creating products and services that are unique and special. The […]
The Mondelez Challenge
Kraft today announced that it will call its new snacks company Mondelez International. Later this year Kraft Foods will split into two companies, a grocery business and a snacks business. The grocery business will retain the Kraft brand name, which makes perfect sense because many of the grocery products actually use the Kraft name: Kraft salad dressing, […]
Coors Light Iced Tea
This week the Chicago Tribune reported that Molson Coors will be introducing a number of new products including Coors Light Iced Tea. You can read the article here: https://www.chicagotribune.com/business/breaking/chi-molson-coors-launching-new-beers-to-boost-share-20120306,0,3634860.story The goal is to build sales through innovation so that the company doesn’t have to rely so heavily on cost reduction projects to drive profit growth. […]