Center for Brand and Product Management Wisconsin School of Business

2009-08-31T08:49:00.002-05:00

And scene on the summer....

Hard to believe a year ago I was starting my first year of b-school. Today is the last day of summer as 2nd year reorientation and MBAs with a Heart are tomorrow and classes start Wednesday (well I only have the GBA meeting as my Wed. class was cancelled). It has only been a year, which took about six weeks, but feels like I have been here for four. Tough to explain how much different I feel after only one year. I remember talking to a 2nd year during week one last year and he said that the amount of stuff you know after year one is amazing. At the time I couldn't imagine that only one year of school would really do that much, but I stand corrected.

I spent the summer at SC Johnson based in Racine, but lived in Milwaukee. The internship was good, stressful, but good. 12 weeks flew by, but it was a great experience. I made some great friends and got a taste of what brand management really was. The only downside of an internship is that there is no summer, but I guess that is what happens in the real world. It is funny to think that I didn't have "summer" for the six years prior to school, but just assumed since I was back in school I would have it.

Soon enough you will have a new blogger for the year who will bring a different perspective on the life of a CBPMer. Just know that everybody has a different experience, but they are all rich. I haven't talked to a single person that regrets the decision of pursuing an MBA at Wisconsin.

One year down, one to go. Go Badgers!

2009-06-08T20:30:00.003-05:00

What I know now that I wish I knew then…

So reflecting back on my first year, I have put pen to paper or finger to key on a couple of thoughts to make year one a little easier.

Buy a warm jacket…now. Especially if you are in a warm climate where jackets are on sale. It will be your best friend by November. While you are at it, buy gloves and ear muffs (180s are good) too. Better to be safe than cold.

Start reading GMA Smart Brief and other marketing blogs now. I didn’t learn about these until the second week of school and I felt behind. Interview prep will start before you know it and you will be asked for good brand/brand stuff or give me an example of this. Smart Brief is a good, quick snapshot of the happenings of the CPG world.

Don't panic about money. You will blow your budget by October, but that is normal and why they invented banks and credit cards.

Discontinue Tivo for the summer. I love Tivo and DVRs as much as the next person, but it prevents you from watching ads. While ads can be boring, they are also fodder for class. Just watch and remember.

Call your family and friends a lot this summer. Come Fall, you won’t talk to them. Not because you don’t want to, but because you don’t have time. If you have a significant other in another locale, just start apologizing now.

If you see Brian Ward put a magazine back on the table, don’t pick it up.

Hang out with the 2nd years sooner rather than later. I didn’t start hanging out with the 2nd years until we got back from Turkey in February. Before I knew it, they were gone and I regret not getting to spend more time with them.

Buy an iPod or music listening device as you will walk everywhere and good music is essential. Is it a 15 block walk or three really good songs? You pick.

Be a yes man or woman. While saying no might be easier, it is not as fun. Lets try an example: Would you like to go sit on a frozen lake, drink beer, and look at a hole in the ice? Yes, it is called ice fishing and I would love to. Seriously, you are coming to grad school for two years so stretch yourself a little and do a couple of things that you normally wouldn’t do.

Go to TAPS early in the semester. It is a great chance to meet both the 1st and 2nd years. Also, come November you will be slammed with projects and won’t feel like it.

Join a club or three. We tend to get pretty Brand Center focused so joining clubs is a great way to meet other 1st year students.

Eat your vegetables. I guess that is just a general life lesson and something good to do.

Go to a football game. Even if you don’t like football or have never been, Wisconsin games are a whole different experience. Jump around at the end of the third quarter and stay for the fifth quarter. It is worth it.

Go someplace warm for Spring Break. Even pale kids need sun too.

Don’t overdo the Nitty Gritty. I think we went there once a week for the first 10 weeks celebrating birthdays and haven’t been back since.

Finance is going to be tough and you are going to get a low grade on the mid-term, but that is normal. Take pride in your 44, I know I do.

Most importantly…have fun. You are in school for two years. It will go fast and you will work hard, but this is the last time in your life that you get to do this. Go out to the bars. Make some poor decisions. Don’t study on Saturdays. Choose a good conversation over skimming another reading. Make this investment in your life worth it and something you will remember.

2009-05-20T09:59:00.005-05:00

CBPM Class of 2009 Graduation

So it is hard to believe that the semester is over and even more hard to believe that the second years are now officially alumni of the Wisconsin School of Business and the Center for Brand and Product Management. I have to say graduation to me is met with mixed emotions. While the school part can get old, the life of a student is incredible. Even though I still have another year, I know that this time next year I will be ready to be done with classes, but not ready to leave my friends for the real world again.

The CBPM Class of 2009 is the largest graduating class in the history of our program, but that title will be short-lived. They have set the bar high for our class and all future classes and will be missed greatly. I do regret not getting to know them better until this semester. With everything going on first semester I was just trying to keep my head above water, but the trip to Turkey was a great opportunity to get to know them better and it only continued through the spring. I will miss their friendships next semester.

Congrats to the Class of 2009!

2009-05-20T09:52:00.003-05:00

The Role of Touch in Consumer Purchasing

Marketing professor Joann Peck has recently been recognized for her ground-breaking research on the impact on touch in consumer purchasing. Click on the title of this post to read an about her work.

2009-05-15T17:11:00.009-05:00

Mifflin Street Block Party

So Madison has its fair amount of craziness, but the Mifflin Street Block Party was unreal. Four blocks of Mifflin Street west of the Capitol were sealed off and the street turned into Madison's version of Mardi Gras minus the parades and beads. Lucky for us, Shannon and Paul Robinson have a house on Mifflin and decided they were up for throwing a party. It turned into a great time as 1st and 2nd years from all of the different centers showed up and hung out together.

Below are some pictures from the Fiesta.

View from Shannon and Paul's

2009-05-15T16:45:00.005-05:00

GBA Spring Ball '09--Partied like it was 1999

Some called it Prom, others Spring Ball, but either way it was a blast. Everybody got decked out in their finest adult attire and enjoyed a night of drinking and dancing. I would say dining, but I don't really remember eating any food even though I know it was there. Attendance was the highest ever, which made it even more fun as it was one of the few events that 1st years, 2nd years, significant others, faculty, and staff all attended together. While an Indian dance troop performance, speeches by Dean Knetter and Coach K, and MBA Superlatives award ceremony were highlights, the real fun didn't start until we hit the dance floor.

I know it was a good time simply because my legs were incredibly sore the next morning from the dancing. It was fun to see a different side of many of the students because they seem to be so serious in class, but you put on a little Bon Jovi and well, they can't help themselves. Post-Prom took us to Brocach for what was supposed to be a quick drink, but $2 High Lifes and a rousing game of quarters turned into a debauchery. All I know is that a crowd ended up at my apartment for pizza and Old School and didn't leave until 4:00 A.M. Quote of the night--"Greg, did you order the pizza man?"--unnamed prospective student not in the Brand Center.

Here are some pictures (that are usable) from the evening courtesy of Jess Worley.

Brian Ward, his lady friend, Joe, Jon Jones, the Pragers, and Paul Robinson (Shannon's husband).

Sam (Katie's boyfriend), Katie Daggett, the Worleys, and the Digmans (well soon-to-be).

Greg Arseneau and his admirers. Wish we had a picture of his doing the Worm, yes, I said it, the Worm.

2009-05-05T11:08:00.002-05:00

Newsweek business writer does piece on WSOB

Not sure if you saw the article, but this will appear in this week's issue of Newsweek. The writer, Daniel Gross, serves as the Writer-in-Residence for the WSOB this semester in addition to being a featured columnist in Newsweek and the Business Editor. He visited campus last week and actually set in on two of my classes--Macroeconomics and Marketing Communications. Seems like a really nice guy and was very accessible to the students. Really didn't think he was going to write an article on us, but he did. The same article appears on Slate.com, which is a business website/blog.

Great to see the program getting some national attention.

Degrees of Separation
Why life is still good for some business school students.
Daniel Gross

May 3, 2009 Updated: 11:14 a.m. ET May 4, 2009

Living and working in the New York region's financial-media complex in 2009 means daily, compulsory attendance at a gathering of the glum. The economy may be shrinking at a 6 percent annual rate, but finance and media have contracted by about 30 percent. For the past year, the daily routine has meant sitting in a depopulated office (assuming you still have a job); following the latest grim news of magazine closings, buyouts, and layoffs; and commiserating with friends, family, and neighbors. And, of course, the angst extends far beyond directly affected companies. Finance dominates the area's economy to such a degree that everybody—lawyers, accountants, real estate brokers, waiters, retailers, and cab drivers—have all been affected.

Of course, one can try to get away to sunnier, more mellow climes. But the usual havens aren't offering much succor. Florida—like New York, except the catastrophe is real estate. Mexico? Um, not now. But last month, I found an unexpected haven: the Midwest. Each semester, the University of Wisconsin School of Business brings in a journalist-in-residence for a week, usually from New York. The theory: Students and professors benefit from the perspective of someone who is chronicling the workings of the world they are studying remotely.
But the benefit was greater for me than for the students. The four days in Madison functioned as a kind of detox. I left thinking the university should turn the Fluno Center for Executive Education into a sort of clinic. It could do for stressed-out financial and media types what Minneapolis' Hazelden does for the drugged-out: offer a safe, friendly (if chilly) place to escape the toxic influence of New York.

Madison struck me as blessedly detached from the ailing financial sector. Of course, Wisconsin is suffering along with the rest of the nation. Its unemployment rate in March was 8.5 percent. But Madison, with its three-legged economic stool of education, state government, and health care, is faring somewhat better. More significantly, the business school isn't having a dark night of the soul, as so many of its Eastern counterparts are.

Columbia Business School and the University of Pennsylvania's Wharton are basically satellites of Wall Street. Half the students have memorized the partnership roster at the Blackstone Group the way I once knew the lineup of 1970s-era Cincinnati Reds. An MBA from Columbia or Harvard or Wharton is basically a leveraged bet on a student's ability to make it in finance. You pay a ton of money, most of it borrowed, so that you can land a really high-paying job with one of the big investment banks or private-equity firms that visit campus. By their second year, most MBA students at Wharton are already scoping out the Hamptons for the second homes they know they'll be able to buy in a few years. But with the gilded pipeline to Wall Street temporarily shut down, the rising MBAs are suffering the kind of existential crisis more generally associated with comparative literature majors. The New York Times last month ran an article about students at Wharton who were suddenly at sea. Some were considering working for nonprofits!
But in Madison, the vibe is much different. The television in the business school's lobby was set to Headline News, not CNBC. The only mention of toxic assets was an ironic one—on a T-shirt. When I walked into undergraduate finance classes and asked, "How many want to go get a kick-ass job on Wall Street and make a ton of money?" not a single hand was raised. The students are mostly kids from Wisconsin studying the basics—management, accounting, corporate finance. Some plan to stay in-state and find a job with a small business or with one of the big local firms: Kohler, S.C. Johnson, Kohl's, Harley-Davidson. Many head to Minneapolis or Chicago for jobs with consumer products companies. The University of Wisconsin boasts of having as many alumni who are CEOs of big companies as Harvard does. Yes, Chicago has its big options exchanges. But the Wisconsin students don't seem interesting in moving money around. That happens in the East. ("Instead of being the warm center of the world, the Middle West now seemed like the ragged edge of the universe," as Midwest native Nick Carraway put it in The Great Gatsby, "so I decided to go East and learn the bond business.")

The finance graduate students I had lunch with knew about CDOs and hedge funds but mostly as academic subjects. When I met with a small group of undergrads in an entrepreneurship course, they presented interesting ideas about online businesses, not financial engineering. Private-equity magnate Henry Kravis, CNBC anchor Erin Burnett, and JPMorgan Chase CEO Jamie Dimon could probably sit down at State Street Brats and chow down unnoticed and unbothered.

While the faltering economy has dampened job prospects, the meltdown on Wall Street hasn't caused these students—or their faculty—to reconsider the utility of studying accounting or corporate finance. It could be because they haven't been asked to risk as much personally as MBA students back East. At one forum, a student groused about rising tuition, much to the disbelief of the business school Dean Mike Knetter, who knows from expensive education. (He was trained as an economist at Stanford and taught at Dartmouth before returning to Wisconsin.) Knetter, a Wisconsin native, pointed out that even if it was rising, tuition here is still a huge bargain. In-state MBA students pay $11,500 per year, plus living expenses, while undergraduate tuition is about $8,000 per year. (At Wharton, by contrast, tuition for MBAs is $50,000, and total costs are $80,000.)

Compared with the costs of high-end executive detox retreats, like the one run by former Time Warner CEO Jerry Levin, Wisconsin is a bargain.

2009-04-20T23:16:00.002-05:00

My "Day in the Life": Tuesday, April 14, 2009

6:30 A.M.—Seriously? Snooze.
6:45 A.M.—Wake up, hit the shower.
7:00 A.M.—Is it cold and rainy? No, sweet, only have to wear sleeves and a light jacket today, must be getting close to spring.
7:30 A.M.—Ear buds in, iPod on (nice medley of Good Charlotte, George Strait, and the Killers). It is only a 15-20 minute walk to school, which is enough time to eat an apple and peruse the left column of the Wall Street Journal. Reading the left column means that I know enough about the world headlines to be dangerous, but not enough to be useful—story of my life.
7:55 A.M.—Hit the Brand Center to print out the agenda for the GBA (Graduate Business Association) meeting. Leave enough time to swing by the candy jar on Carrie’s desk and get a quick chocolate fix for the first meeting of the day.
8:05 A.M.—Tell the GBA board that we will wait for the President to show up before we get started.
8:06 A.M.—Yep, that wasn’t a nightmare, I am still the GBA President so we will go ahead and get started. Topics to cover—Spring Ball, On Wisconsin Weekend, Habitat for Humanity day, Spring Study Break and the creation of the tailgating committee.
9:10 A.M.—Meeting over, but catch up with Abby Ballain (GBA Secretary) and Courtney Carlovsky (GBA Treasurer) to discuss the specifics for the end of year Town Hall meeting.
9:20 A.M.—Drop my jacket in my locker; run through the econ slides in case I get cold-called; Ask Joe if he read for class, he didn’t, so I feel better since I didn’t either.
9:30 A.M.—Macroeconomics starts; we are apparently discussing the GDP and something concerning apples and bananas. I was told to never compare the two, but Professor Davis has a different philosophy.
10:45 A.M.—Class over; now realize that the apples were simply a metaphor for production, good to know. Head to the Brand Center to check email, socialize, steal Carrie’s candy.
11:15 A.M.—I find myself enthralled in naming the VH-1 Top 100 Songs of the 90s courtesy of Sporcle.com. Amy, Corinne, Greg Rose, Shannon and I are in rare form. We should really video our performance. Who knew that Greg Rose knew all of the words to Marcy Playground’s Sex and Candy.
11:30 A.M.—Let’s get serious, time to read. Have five readings for Tom O’s afternoon class and I have only read one. Luckily, one of the study rooms across from the Brand Center is open.
12:15 P.M.—Dean Knetter and Coach K are holding a end of year session to answer questions about the program. Key here is that there is free food so count me in.
1:00 P.M.—Group meeting time. Sunaina, Katie W., and I are taking care of the Management Change Project for our group. Time to divide and conquer. Apparently there is more work to this than originally thought so we have three more meetings scheduled for the next week and a half—awesome.
2:00 P.M.—Back to the Center to finish reading for my 2:30 class.
2:05 P.M.—Who am I kidding? I can’t pass up a good conversation about reality TV and the merits of fantasy baseball. Going to roll the dice that I won’t get called on.
2:30 P.M.—Brand Strategy starts. We are discussing the theory of brands as entertainment and if TV can really influence the way people perceive the world. No cold-calling today so I will implement the “Jake Abel” strategy.
3:45 P.M.—10-minute break; time to get a soda for the second half of class
3:55 P.M.—Mark, Katie, Al, and Brian are presenting their case write-up on Starbucks. They did a great job with a really tough case. Still hate Starbucks though.
5:15 P.M.—Class over a little early, not going to complain.
5:45 P.M.—Time to head home. Maybe I will see one of the kids from MTV's College Life on my walk home. Need to call the fiancé as she is out-of-town. Definitely going to work out tonight.
6:00 P.M.—Quick change and head to the gym.
6:15 P.M.—Didn’t get to see SportsCenter this morning so I should catch up on that and then I will head to the gym.
7:00 P.M.—Make dinner and watch the beginning of American Idol.
7:30 P.M.—Time to multi-task: four readings for Marketing Communications, the Rangers-Orioles games on GameCast, create a powerpoint presentation for Center Director’s meeting tomorrow, start the Management Simulation, write up my portion of the IMC plan, and prepare for Operations. With two computers, osmosis, and a gift from God, this is all possible. Instead of the gym, I will take a quick jog later.
10:30 P.M.—Well, the Rangers’ pitching imploded again so that means I still have three readings for Communications, the powerpoint to create, and a simulation to start. Maybe I can lift a couple of weights. I think they are in a box somewhere.
11:45 P.M.—So the readings are done, the powerpoint is serviceable, but the simulation will have to wait for another day. Looks like I will be flying by the seat of my pants in Operations, but what is new. I am sure I will be able to work out tomorrow.
12:15 P.M.—Off to bed. I should be asleep in 10 minutes unless I get sucked into one of those classic TBS or TNT movies that you can’t help but watch. Anchorman? Sign me up.

2009-04-07T19:34:00.003-05:00

Twitter responsible for collapse of American economy

While this seems like a headline you would read in The Onion, I believe this is partially true. Last Wednesday, the first year CBPM class participated in the world's first class ever taught through Twitter. (This could be a vast overstatement, but I am sticking with it). We have been learning about social media in Deb Mitchell's Marketing Communications class and Twitter is one of the new, up and coming tools that marketers are using to discuss their brands.

To learn more about its abilities, Deb brought in Wisconsin's own Twitter expert, Melissa Anderson, who is the Director of PR for the Wisconsin School of Business. She asked her followers on Twitter to tune into a live chat during our class and talk about how they use Twitter both personally and professionally. As Melissa talked, we interacted with individuals from all over the country. Many were PR Directors at other schools or businesses, but some were advertising execs or brand managers, heck even a celebrity (Ashton Kutcher) piped in a few times. If you didn't know, Ashton and Demi are huge Twitterers.

Honestly, I don't remember what Melissa said as I was more interested in the Twitter conversation. I was amazed that 50 or so people were active in our conversation during the middle of the day. Most were at work. Granted, Melissa invited some to join, but that was 10 people so 40 people just happened upon our chat.

So I go back to my original statement. I think that productivity all over the country must be at an all-time low if people are trolling around Twitter looking for conversations. Are people actually working? Guess not, but hey, I learned something.

If you want to see the transcript, go to tweetchat.com and type in #bizpitch. Enjoy tweeting.

2009-04-07T18:38:00.005-05:00

Spring Break UW 09 WooHoo!

So remember spring break planning when you were an undergrad..."Do we go to Padre? Or what about Destin/Panama City (Club La Vela maybe Spinnaker don't know if we will have enough time, you know what I am talking about), that was fun last year. Or wait, we could go skiing in Colorado for six days, that would be fun. Or, I know, Mexico. Two words--all inclusive."

Well in grad school, we have very similar conversations regarding spring break..."Chicago, it is drivable, I am sure we can crash on somebody's floor, I think some other people might go as well. Hey, it is St. Patrick's Day so there will be something to do on Saturday." And that is just for the first weekend.

All joking aside, spring break is different than what I remember. It is still fun to not have to go to class, but the craziness that most of us associated with vacations to exotic locales just isn't there. It could be that I am older and it hurts more or it could be that vacationing on $200 doesn't quite cut it anymore. Either way, Annette and I rocked Chicago with the Arseneaus, Worleys, and soon-to-be Digmans for the St. Patrick's Day festival. At least Chicago has a huge party for it and it wasn't like we were doing Omaha for Octoberfest.

Mark's wife Sarah and I are on the left with the Worley's on the right. I am pretty sure that Jess stole the hat I am wearing from somebody at the bar. I ended up with another hat at some point in the evening, but lost it as well.

Joe and Mark...haven't had a drink at all.

As for the actual week of spring break, it was pretty low key. A number of us got together Tuesday for the actual St. Patrick's Day and enjoyed the incredible weather (70 degrees seriously) on Memorial Terrace. Little strange to be wearing shorts and t-shirt overlooking a frozen lake, but welcome to Wisconsin!

That Thursday, we joined all of America and watched the first round of the NCAA tournament at a local sports bar. Haven't been able to watch an entire day of games since college. Apparently Joe, Al, and I thought it would be a good idea to wager on the games. Now only Joe thinks that was a good idea. We did get to revel in the fact that CBPM Bracket Organizer Extraordinaire Amy Maier lost her national champion (Wake Forrest) in the first round.

Now everybody didn't keep it local. Jamel and Mat did actually go to Mexico. They received some incredible deal online and couldn't pass it up. Apparently, they didn't realize that the "deal" was for couples. Needless to say, they received a few puzzling looks from the newlyweds...wonder why.

Probably should have left the shirt on for lunch Mat.

Jessie left incredible Madison weather for even better weather in Florida. Amy showed the Natti what is up (talk about dream spring break locales, what tops Cincinatti in March?). Jake, Amy, and Mariah enjoyed the scenery of Miami Beach.

All I can say is that the local Spring Break this year was so great that the wives have told us that Spring Break next year will involve a beach, umbrella drinks, and sun tan lotion. Guess you win some and you lose some.

Here's to my first post-college, post-Adult Spring Break, Spring Break!

2009-03-26T11:50:00.003-05:00

Update: Tom O Article

So I know I promised Spring Break conversation, but it came to my attention that the link to Tom O's article takes you to a log in page and not the actual article. Then apparently is some crazy scheme to make money and turn a profit, AdAge only lets you read the article if you subscribe (I am set up on their email distribution list so I read the stuff that is free). So I have copied the article here, please don't tell.

With Populism's Rise, Prada's Fall
Smart Brands Will Again Resolve Tensions Brought on by Social Disruption
by Thomas C. O'Guinn <mailto:toguinn@bus.wisc.edu>

From David Letterman to Jon Stewart to Mike Barnacle to the guy in the cube next to you, more Americans are sporting a simmering anger some have termed "vengeful populism." Consumers are angry with bankers, Wall Street and any other cultural elite that has stolen from them lately. Because our pain is not felt equally, class conflict is a near certainty.

While populism comes in many flavors, it is, at its core, anti-elitist, and there are plenty of elites to dislike. Income distribution in the U.S. is approaching an L-curve, with a vanishing (and angry) middle class. Because social standing is in so many ways marked through consumption, brands that are "on the wrong side of history" had better watch out. On the other hand, just as in the Great Depression, smart brands will have an opportunity for greatness.

Uneven Pain
For three decades or so we have gotten used to, even embraced, a hyper-consumer culture. As long as credit was easy and times were relatively good, class conflict was, for most Americans, an anachronism. Now, with a deepening recession spreading pain unevenly throughout the country, the need to rethink some brands' positioning and communication couldn't be stronger. To proponents of cultural marketing, the truly great, iconic brands have become so by resolving tensions brought on by social disruption: Marlboro reassured real manhood for a formerly woman's cigarette with a then unmanly filter in the rigid, gendered 1950s; Pepsi claimed the youth revolution of the 1960s as its own; and Apple introduced the "computer for the rest of us" by rejecting the Orwellian IBM work world in 1984. Perhaps this is another tectonic societal shift.

What of luxury brands? Because so much advertising and brand communication is wrapped in and flavored with promises of social aspiration, how will luxury brands deal with the clearly unequal distribution of pain in the economy? How will the branded markers of the economic elite fare? Wealth is OK with Americans, but arrogant insensitivity is not. When unemployment reaches the homes of one in 10 Americans, will it be OK to carry the $2,500 clutch? Will those trudging off to work and diminished futures -- or, worse yet, those on the streets looking for work -- find it charming to see the wealthy lined up to have tea with their daughters' $100 dolls?

Distinction for Less
A handful of smart brands such as Target have for some time understood the new social order and offered design for the masses, distinction for less. The smart management of American Girl probably knows that in the 1930s some cities actually had toy libraries where children could check out a toy for a few weeks then return it so another child could enjoy it. Hopefully, we will never reach that point, but we may reach the point where class envy strikes such categories.

While some brand managers are just catching on, some just don't seem to have a clue. Appearing in my mailbox recently was a magazine with an ad for prestige watchmaker Patek Philippe. The copy justifying the $75,000 watch said: "You never actually own a Patek Philippe. You merely take care of it for the next generation." Amazing. Don't you just love being reminded of the power of inherited wealth at a time like this?

In my own research, I have started to pick up the sour notes of this angry populism. One of my research subjects is the spouse of a doctor. She now "gets grief" from her co-workers when she "wears anything new." They say, "Is that new? Must be nice." She adds: "Now I just don't wear them. I told my husband to quit buying stuff like that. I can't wear that stuff to work or even out sometimes."

'Democracy of Affliction'
So what's a luxury, big-discretionary-bucks brand to do? In the Great Depression, the smart brands were very clever in the way they used Americans' ambivalence toward wealth. As the late historian Roland Marchand noted, smart advertisers pointed out that "even rich people have the same problems as you." He called this the "democracy of affliction." The smart Great Depression advertisers humanized the wealthy; they made them sympathetic characters with problems to which anyone could relate. They made even expensive brands about something, anything, other than wealth. They made their brands about commonly shared goals, problems, frustrations, values and community, not an I-have-mine-sorry-about-you arrogance. Remember, Americans love rags-to-riches stories. Other advertisers of the 1930s used this popular narrative to create brand stories about "breaking into fine society," making their brand part of your hope to fit in with the social strata above you and actually making it. The idea was inclusion, never exclusion. So, nuanced aspiration appeals are fine, but the sensitivity and humanity has to be there. The sweet spot seems to be sensitive value through things we share.

For every social upheaval there are winners and losers. This angry populism presents a big lever for the right brands. Just like Thomas Frank argued in "The Conquest of Cool," with respect to the 1960s Cultural Revolution, smart advertising and branding could now create middle-class-hero brands. Brands that get it could become the next VW, Pepsi or Apple. Remember: All "revolutions" and significant social moments need staging and costumes. At a deeper level, great brands resolve tension. This angry-populist sentiment is real -- it will most surely be with us for a while -- and you can actually feel its tension. That energy, that urge to strike blows of equality against those who have wronged us -- or show that even though we are much more fortunate than most, we are among the socially sensitive -- can be made part of brand meaning. Brands that facilitate some degree of resolution, expressed through branded consumption, will find power.

ABOUT THE AUTHOR Thomas C. O'Guinn is professor of marketing and executive director of the Center for Brand and Product Management at the University of Wisconsin-Madison's School of Business. He is co-author of "Advertising and Integrated Brand Promotion."

2009-03-26T09:09:00.004-05:00

Tom O'Guinn the Rock Star!

I meant to get this up earlier in the week, but not sure how many of you all (I will refrain from writing ya'll even though that is how it sounds in my head) saw the new guest columnist in AdAge. Our own Executive Director Tom O'Guinn was recently featured for his article "With Populism's Rise, Prada's Fall." (click on the title and it will take you to the article)

The article is a testament to the changing society we live in today. People are rejecting the consumer elitism that has propogated society and essentially rebelling against that norm. Just last week citizens were going to AIG executives' houses and protesting. When was the last time any of us did that? It is great to see both Tom O and the Wisconsin School of Business (more specifically CBPM) getting recognized in AdAge. Currently we have Tom O for Brand Strategy and will have him for another class in the Fall.

For prospective students, if you aren't going to AdAge at least once a week to see what is going on in the marketing world, you should. Hopefully we will see a little more of Tom O in AdAge in the upcoming weeks.

Next Blog Post: Spring Break Excitement!

2009-03-09T00:06:00.003-05:00

GMN Challenge Winners--Brand Domination

And the winners are...(they are above, but names are below, have to keep the suspense)

I know this is old news for most, but a group actually won the GMN Challenge. Yes, the event was held in January and I should have written about this six weeks ago, but alas, I did not. The GMN Challenge is a great event for first year students to get back into the swing of things the first week of school.

8 teams of four were given a marketing case on Thursday afternoon to analyze and were challenged to come up with a solution by Friday morning. This year the case was based on Kingsford Charcoal and the teams had to come up with a way to turn Kingsford around after five consecutive years of declining revenue.

Most of the teams worked through the night and into the wee hours of the morning to put together powerpoint presentations. Teams then made presentations to senior executives from Sears, Lands End, and SC Johnson. Two teams were chosen to make a final presentation in front of all the judges and participants.

Team 1
Amy Maier (Brand)
Jessie Miller (Brand)
Courtney Carlovsky (Finance)
Sunaina Velagaleti (Research)

Team 2
Mark Digman (Brand)
Shannon Robinson (Brand)
Greg Arseneau (Brand)
Justin Hajny (Entrepreneurship)

After great presentations by both teams, Team 2 came away victorious. Team 2's strategy was to develop self-igniting individualized bags of charcoal to drive velocity and profitability, while identifying the key insight that women don't want to get their hands dirty. I participated as well, but did not win as you can tell. It was fun and I enjoyed working with Jon Jones (Brand), Claudia Klug (Research), and Amber Schleitcher (Supply Chain), however we didn't provide enough tactics. Either way, Jon Jones is incredible on PowerPoint, that is what I learned.

On the plus, I am working with Greg, Mark, Amy, and Sunaina on teams this semester and Jessie and I were on the same team first semester so I am surrounded by great people. They might not think the same about me, but that sucks for them. I would highly recommend the GMN Challenge to anybody because when else do you get to pull an all-nighter the first week of schoool, the week before interviews start while you are still jet-lagged from Turkey.

Dinner at the Local--$9.48
65 bags of Welch's fruit snacks--$7.99
18 Diet Cokes--$5.99
Some non-descript giant bag of pretzels that Claudia brought--$.99
Getting two hours of sleep and losing in the first round--Priceless

Awesome.

2009-03-08T23:43:00.003-05:00

1st Semester vs. 2nd Semester Differences

So I have received a lot of questions about the difference between first and second semester. Well, it is really a difference between individual work and group work. Second semester is all about group work. We have group projects in Operations, HR, Economics, Brand Strategy, and Marketing Communications. Some are as easy as simply doing homework problems together, while some are as challenging as developing an IMC (integrated marketing communications, don't worry I didn't know what it meant either until the first day of class) from scratch for a client.

I would say there are fewer exams and only two midterms so that is manageable. However, getting together to meet for the group work is challenging. I spent most of this weekend going from one group meeting to another, but ultimately we are getting the work done. Since the groups are mostly cross functional (at least in the core classes), our schedules aren't always easy to coordinate. Luckily, I have a great group that works very well together and is willing to pick up the slack for each other.

Something that is specific for Brand students is the addition of a Nielsen training course for first years. Over the last three weeks, we have had three classes aimed at teaching us about Nielsen data and how to incorporate it into our internships. It all culminates tomorrow with group presentations. We have been divided into teams of four and challenged to analyze the last three years worth of data for Gold Medal Flour. The goal is to find some key insight that would lead to a marketing change for General Mills. Needless to say, this project is very difficult, but very practical. It will be interesting to see what each team comes up with.

I guess the other big difference between 1st and 2nd semester is the time that extracurricular activities take up. 2nd semester is the time that 1st years take over leadership positions in the various MBA organizations. Brand students are some of the more involved students on campus so our time is stretched particularly thin.

Brand Student Leadership positions:

GBA (Graduate Business Association): President; Vice President; Development Chair; Community Service Chair; 2nd Year Rep
GMN (Graduate Marketing Network): Co-President; Treasurer; Logistics/Communications Chair; GMN Challenge Chair
Net Impact: President; Treasurer; Webmaster; three Action Officers
Consortium Club: President
Out for Business: President

With only one week before spring break, I know that most of our minds are on warmer climates and umbrella drinks. It is only two midterms and a two group projects away.

2009-02-23T21:45:00.011-06:00

Polar Plunge 2009

In previous posts I have discussed the craziness that is Madisonites and their obsession with ice fishing. Saturday however took it to a new level. Standing on ice and fishing is one thing, but actually going into the water is another. You have to have a great reason to jump into a frozen lake. Well, that is exactly what the Special Olympics of Madison was thinking. Saturday was the annual Special Olympics Polar Plunge.

I am proud to announce that the Wisconsin School of Business MBA Program raised over $10,000 and had 44 jumpers placing in the top 5 in the state. Fellow 1st year Brander Greg Arseneau headed up the MBA team as part of his role as the GBA Community Service Chair. Going into it this year, our goal was 30 jumpers and $6000 so we killed that. Not only was it a great cause, but it was a fun time. Now I did not jump, but I cheered on those that did and participated in the after plunge activities.

Below are some pictures from the event:

2009-02-10T20:27:00.005-06:00

MBA or Reality TV?

So I know that many prospective students are trying to determine what to do with their lives right now? Do I give up two years of salary and pursue an MBA? Or do I throw caution to the wind and throw my hat into the reality TV mix?

It is a tough decision I know. One that I myself contemplated. For me it was between The Real World and Road Rules. I know what you are thinking--pick Road Rules so that you get on a better Guantlet or Duel team. Road Rulers are always better at those competitions. However, I have a weak stomach and have no desire to bungee jump so I would have chosen The Real World. While binge drinking, crowded hot tubs, and confessional rooms might be your scene, I ask you to look at the long-term prospects.

Six months following the show, you will be the hottest thing since slice bread. You will be invited to club openings and be doing random web spots on MTV.com. You will probably meet a couple of stars and get your picture in US Weekly or People, but then what? Funny you should ask. Two groups of 2nd year Brand students were visiting a local Trek bicycle store for their product design class and asked the clerk for help. Low and behold if it was not Madison's local reality TV star--Landon Lueck from The Real World Philadelphia.

Landon is third from the left

While we might not have crowded hot tubs (unless you count the ones at Polar Plunge) and crazy club openings, we do offer fantastic full-time employment opportunities in brand management. You can get your picture in the Grainger Squire and you can meet stars of the marketing world like Tom O'Guinn, Jan Heide, and Deb Mitchell.

We just completed the Brand Guantlet (doesn't quite have the same panache as people in swimsuits in Tahiti)--8 companies, 15+ interviews, 5 days. It was a tough five days, but something I wouldn't trade for my last six years of work experience. I still have more second round interviews this week so it is not fully over, but it will be soon enough.

So when you are thinking about what to do with your life, think about where you want to be in three years. Do you want to be a year into a job as a brand manager or greasing a chain at Trek?

2009-02-08T10:10:00.002-06:00

Warm Weather Wackiness

So Madison is suppose to be cold during February and for the first 6 days it held true to form. However, Saturday was an unexpected gift. The temperatures got into the 40s. Now I know that sounds cold and yes, in the majority of the country that constitutes a stay-at-home day, but not in Madison. The sun was out, the snow/ice was melting at an incredible rate, and people hit the streets. It sort of reminds me of a morning train ride into Grand Central in NYC. One moment the train platform in empty and quiet. Suddenly a train pulls up, opens its doors, and mass chaos ensues.

People were in shorts and t-shirts running around like it was 85 degrees. It almost felt like Turkey with the number of dogs I saw running around (side note, these dogs had leashes and owners, which is something Turkey should look into if only for Joe Worley's sake). I was actually excited to walk to the gym, which is something in itself. Downside was that I spent five hours rocking a little Cranberry case for operations, but my group blew it out and we are done.

Saturday night was even nice. A lot of people headed to the Kohl Center for the Rascal Flatts/Jessica Simpson concert. They are pleased to report that Jessica looks healthy, but not too healthy and she has retired the "Mom jeans." If you don't know what I am talking about, go buy an US Weekly or log into TMZ.com. My fiancee and I chose to grill out, yes grill out. The snow is all gone from my porch and I could actually stand out there for more than two minutes at a time.

Mariah Kottke's 21st birthday (aren't all birthdays 21st birthdays from here on out) gave everybody a reason to congregate late night at Madhatters. It was nice to walk outside sans ear muffs or gloves. Great mix of both 1st and 2nd years and specialization centers. One drink turned into two, two into, well you get the idea. Next thing I know, it is 2:30 A.M. and we are standing in line at Ian's Pizza. Been to Ian's a ton of times and never had to wait more than three minutes. This time the line was out the door and all the way to the corner. That is how many people were out and about.

I am proud that I got to see Paul Robinson (Shannon's husband) partake in Ian's for his first time. He is from London and only recently moved to the States. He could not have had a more American experience than standing in line with a whole bunch of inebriated college kids clamoring Mac N Cheese Pizza or Hamburger and fry pizza. I also think we saw Steve Perry from Journey even though he is dead. Didn't realize that long, feathered hand was making a comeback.

This morning (Sunday) it is back to being cold so it looks like yesterday was a mere mirage, but was totally worth it. If it is warm where you are, enjoy it. If it is not, there is always chance it could be tomorrow so be ready.

2009-01-30T10:25:00.002-06:00

Jon Jones videographer extradonaire!

So if this brand management thing doesn't work out, Jon has a job as a videographer. He has put together a great video on YouTube from our trip to Turkey.

http://www.youtube.com/watch?v=QgpHfKItF2E

I know that most of my blogs on the trip were company visit related so you didn't get my straight opinion on the trip. Here it is...I loved it! Never thought I would go to Turkey in my life and it probably wasn't on my top 20 list of places to visit before I die, but the trip was incredible. Turkey truly is a cradle of history from the early Christian settlements in the middle of the country to the city of Ephesus, which was one of the largest trade ports in the Greek empire. We saw the house where Mary ascended to heaven or died depending on your faith and place wishes on the wishing wall. We ate kebabs and we ate kebabs and we ate a whole fish and we ate kebabs.

We dorked it out and went to hypermarket. Only a group of brand management students would be excited to run around a supermarket for two hours. Al came away with numerous bottles of mustard and Laura bought out the Nestle candy section. I bought a loaf of bread.

I don't know where we are going next year (China/Japan is my choice), but count me in. This is why I am here. I don't do a trip like this if I am in still at my last job. I don't run around a foreign country with 24 of my friends for 10 days if I am still trying to find people work. I would approach my internship and future position in brand management different and probably worse off, if I didn't make this trip. Whatever the cost, it is merely a down payment.

Have a great weekend and enjoy Jon's video. Just think, a year from now you too can have your life put to the music of Celine Dion.

Tea Sugar and Dreams!

2009-01-20T11:06:00.002-06:00

First day of class or Obama?

So you would think that the first day of classes would be the topic of conversation amongst the students, but alas, it is not. I am sitting in the Plenary Room with 100 students, faculty members, and administrators watching President Obama give his speech. Have to say that I will remember this afternoon for the rest of my life and could not imagine being in another place than right here with my fellow students sharing in this historical event.

Professor Housch even ended our Economics class a little early so that we could see the Inaugural Address. It is nice to know that our professors realize the impact of this event and gave us the opportunity to see it.

I hope wherever you are you realize what is transpiring. Have a great day. Now I will get Ms. Maier a tissue.

2009-01-17T07:15:00.003-06:00

Day Four: Company Visit Five (Kraft)

Some of us were recovering from our first night out on the town in Istanbul, but everybody made the 8:00 A.M. shuttle to Kraft. Ironically, it is the only company that actually put its name on the outside of the building. Not sure if it is a security risk or what, but I haven't seen an American company put its name on any buildings.

Here is Jessie, Brian, Andi, Joe, and Jon in front of some Kraft advertising. I was disappointed they didn't have Kraft Mac and Cheese for us, but Tang, Patos Critos, and Milka hit the spot.

While we liked the chocolate at Nestle, I think Kraft won us over in the food category, but not in a category you would expect. Kraft doesn't really compete in the U.S. in the salty snack category, but that is the primary driver of Kraft Turkey. They have two products--Patos (essentially Doritos, but Doritos actually competes in Turkey) and Patos Critos (Buggles, which should be much more popular in the U.S.). I think we went through about 10 bags during the morning.

When you think of potato chips in the U.S., you think of eating them for lunch or grabbing them from a gas station on a long drive (Cheetos Corrine?). However, in Turkey, potato chips are typically consumed when watching television in the evenings. Chips are meant to be shared with friends and family. Turks snack, but on fruits and nuts, not chips. So introducing salty snacks is a bit of a challenge. First thing they did was combine both products under the Patos brand name. Seems pretty simple, but when you think of how much you have to change--packaging, advertising, displays, sales material--it is pretty difficult. The other thought was that they could work together as opposed to being competing products. The question though is who will consume the product.

So where did Kraft go? College kids. They created an entire campaign for Patos Critos based on the fun of consuming the 3D chips. They rolled out a significant sampling program at 20 universities across the country. They sponsored concerts and sporting events. The results were phenomenal. They grew market share from 2% to 8% in six months and even grew the Patos brand by 3%.

Kraft also did a good of explaining Turkish advertising to us. While the country is 97% Muslim and more conservative than the U.S., TV advertising is more risque and requires comedy to make an impact. Literally every commercial on TV has some comedic aspect. Here is the current Patos Critos ad running in Turkey. Yes, they did that.

http://www.youtube.com/watch?v=eu4MYyAx1oA

Funny thing is that Kraft corporate initally said no. They thought it would not play well because it was too controversial. However, the ad agency and the Turkey management team petitioned headquarters and were able to run this ad, which was moderately scaled down from its initial cut. This ad even won an award for innovation within Kraft Europe. Here is another new ad for a Patos Critos line extension.

http://www.youtube.com/watch?v=sL-leznbnoE&feature=related

Patos Critos saved Sennai as I don't think he had eaten for three days. Turkish food was not up his alley. Seriously, who doesn't like fish served with its head and tail still on? Jessie?

2009-01-17T06:31:00.005-06:00

Day Three: Two for one (Part 2)

After lunch with J&J, we headed to Nestle's office. Out of all of the companies, we visited, I would say that Nestle had the most American style layout with open concept offices. Nestle took us through two case studies of product launches within Turkey. The first focused on NesCafe. Let me step back for a second. NesCafe is a huge product internationally, but is relatively small in the U.S. as Americans still like roast/ground coffee over instant.

Laura Hufschmidt and the Nestle team

Turkey is a tea drinking culutre. The numbers are pretty stupid. An average Turk will drink between 2000 and 3000 cups oif tea a year. They will drink only 55 cups of coffee a year. Coffee is primarily consumed after meals for celebratory purposes or with a group. Individual consumption is small. With that said, Turks know how to make a cup of tea (how much sugar and cream to add), but were unsure about coffee, which prevented many from even trying it.

To overcome this, NesCafe came up with the 3 in 1 concept, which combined coffee, sugar, and cream in powder form into individual size servings. Essentially, take hot water, add 3 in 1, and boom, you got yourself coffee. This product doesn't exist in the U.S. Closest thing we got to this is hot chocolate. Nestle rolled out three different types--Regular, Mild, and Strong. It took the market by storm and created a whole new category. As with everything in Turkey, the competition immediately copied it and rolled out an almost identical product. The competition took it one step further and started to offer flavored coffees. In the U.S., this would have made complete sense, but Nestle didn't think it would catch on. However, it did and Nestle was suddenly the second mover.

Here is Terry, Katie, and Mark showing the three NesCafe products. Looks like Mark has had about four already and Katie wishes they had given us the coffee an hour ago.

The lesson here is that you can't rest on your laurels. You must continue to innovate and stay ahead of the competition. Creating a category is not enough. Nestle is in the process of introducing a whole new marketing campaign for the 3 in 1 products and their new product--2 in 1 (no sugar). Wish I could find the new ads as there is a crazy moustache on it, but I can't seem to find it.

Something that we didn't talk about at Nestle, but wish we would have is their Maggi Mashed Potato Machine. Here is a picture.

Yep, sitting right next to the coffee machine is this device that dispenses instant mashed potatoes because there is apparently a need for mashed potatoes on the go. Did we try it? You know we did. Verdict--suprisingly good and could easily be tempted to consume mashed potatoes on the go. Now, we never saw this machine in any store, but it is only a matter of time when you are sitting on technology like this.

Yes, I will take a NesCafe 3 in 1 and a cup of mashed potatoes....tea sugar and dreams (inside joke, sorry).

2009-01-17T06:02:00.003-06:00

Day Three: Two for one (Part 1)

If we didn't think we were tired going into day three, we surely knew by the end of the day we were in a foreign country. We were scheduled to meet with not one, but two companies--Johnson & Johnson and Nestle. J&J made a fantastic presentation as half of the presentation was dedicated to the Turkish culture and business philosophy and the other half focussed on their roll out of Johnson Baby's Bedtime product.

Most shocking revelations about the Turkish culture:

Over 70% of the country is under the age of 40

Average Turk brushes their teeth and showers 1.5 times per week

17th largest country by pop., but 67th in GDP per capita

75% of the retail channels are comprised of stores with less than 50 sq. ft.

42% of an average grocery bill is spent on tobacco products--primarily cigarettes

"Dude John...man....you are like totally on it."--KMC

This provides you with some insight into the challenges that companies face when marketing products to the Turkish population. J&J had a similar story to P&G in that brand building was not the primary concern--educating the customer is the primary concern. In the U.S. we take for granted the process of giving a baby a bath. However, Turkish mothers have a process all their own and the use of product is not typically considered--most use a very standard baby shampoo for all cleaning purposes. However, J&J is trying to roll out the Johnson's Bedtime product, which is to be applied after a bath to help the baby have a peaceful night sleep.

The problem was that mothers did not see a use for the product and could not figure out when they were suppose to use it. So instead of focusing its communication on the emotional benefits of the product, they designed a campaign around how and when to use the product. J&J scientists came up with the Bedtime sleep method for helping a baby get a good night's sleep.

1. Give baby a warm bath.

2. Gently massage the baby.

3. Apply Johnson's Bedtime before putting to bed.

Side note...I think some people on the trip tried this method to overcome jet lag. Can't confirm, but the next day everybody seemed to be in a much better mood. Question is who performed step 2? Jury is still out.

I found this interesting as it seems elementary. However, the same process has been used to educate the consumers on dental hygeine--how to brush you teeth is on the packaging of both toothbrushes and toothpaste.

Lesson is that you can't take for granted that your consumer will know how and when to use the product. J&J also designed a huge promotional campaign using the Turkish Oprah (not what you would imagine, think Mexican telenovela style actress). They were also bundling their products together to give mothers an entire bath/bedtime solution.

To top it off, they took us to lunch, which is always appreciated. It seemed like eight courses, but it was great and I would say that most thought it was one of the best meals of the trip. Best part was the brown sugar cake filled with ice cream--unbelievable.

One quick point--J&J in the U.S. talks about their Credo all of the time, but it didn't really sink in until you walk into their office in Turkey and the first thing you see on the wall is the Credo in both English and Turkish.

2009-01-17T05:46:00.004-06:00

Day Two: Procter and Gamble Visit

Day two in Istanbul was a jam-packed day. We did have our first jetlag related casualty—me. The alarm I set on my TV didn’t go off and the wake-up call never came so when we were suppose to meet in the lobby at 8:30 A.M. for departure, I was sound asleep in bed. Thankfully, Carrie had a heart and Jon gave me a call as I was only 10 minutes late. Not my best day.

We hit up the Spice Bizarre in the morning for an hour and a half of negotiating with local vendors for trinkets and such. The 2nd years were able to put their negotiations class skills to good use and Ben Lawnicki came away with a haul in the spice department. The Bizarre (yes, they actually call it a bizarre) was followed by a boat cruise on the Bosphorous River, which runs through Istanbul. If you don’t know, Istanbul is the only city in the world that straddles two continents—Europe and Asia. The Bosphorous is the dividing line so we were literally sailing between two continents. The weather was not the best—cold and rainy—but it was fun nevertheless. The P&G Turkey management team

Visiting P&G took us to Asia for the first time and what looks to be the commercial and financial capital of Istanbul. P&G rolled out the red carpet and we were given access to the General Manager over CEEMEA (Central Eastern Europe Middle East Africa), which runs from Russia to South Africa if you can grasp how big that is and the Director of Marketing, the Director of Finance, and the Director of Customer Business Development for the region. They were able to discuss not only Turkey, but the entire region, which was very interesting. In the U.S., P&G manages a ton (that is for you Amy) of brands, while Turkey has only 10. The majority of the brands are marketed under local names (for example, Crest is Ipana) because they bought local companies.

However, P&G rolled out two new brands to Turkey in the last year under their American names—Head and Shoulders and Olay. In the U.S., shampoo products typically focus on both the emotional and functional benefits of products and primarily for women, it is the color, appearance, feel, texture of the hair. However, in Turkey that is not the main concern, which is why Head and Shoulders, which specializes in dandruff prevention was chosen. Since so many women where head scarves, appearance is not a major concern for consumers, but function is.

I guess the major takeaway for me was that you really must identify your consumers’ needs. It seems like a lot of American companies in Turkey try to use the same messages that are used in Europe, but the consumers are very different.

I know this is long so I will finish up. Dinner that was night an interesting experience. After two consecutive meals of kebobs or kebaps (didn’t realize you spelled it was a p until I got here), we went for seafood, which would be fairly harmless. Except, the fish was served whole—head and tail on, bones in. For the 26 of us, I think this was a new experience for at least 20 including yours truly. But it gets better, a belly dancer (which is questionable, but that is another story) worked, I mean worked, the table. Every male had the pleasure or horror of receiving her undivided attention for 30 seconds. She would not leave until everybody paid her, well except one. She would not except coins so Joe Worley was out of look. She was a cash business. I guess that is a little piece of knowledge you can drop the next time you are in Turkey.

At least Brian didn't ask for change.

Here’s to trashy belly dancers and random ship salesmen….cheers!

2009-01-12T09:22:00.004-06:00

Kimberly Clark Visit to Turkey

The very first thing we did upon arriving in Istanbul was meet with Peter Melville, Marketing Director for Kimberly Clark Turkey. He did a fantastic job of giving us KC’s current situation on the ground in Turkey before taking us through two case studies—1) Huggies and 2) Kotex.
Granted, diapers and feminine hygiene are not the most exciting topics, Peter did a great job of relating the marketing issues each brand focused and how they were able to overcome each. In Huggies case, they faced tremendous competition from U.S. heavyweight P&G (using Prima, which is actually Pampers) and Turkish manufacturer Hyaht. What was most interesting was that KC Turkey is implementing a similar branding strategy as the U.S. focusing on fit and the emotional connection between mother and child. Seems pretty simple, but all of the Turkish diapers adds focus on happy babies doing silly things. It is also very popular for the babies to sing a song in ads. KC is the newest competitor in the market, but has managed to gain a 7% share in two years and is quickly moving towards 10%.

Kotex had a whole different set of problems. First, tampon use in Turkey is extremely small, primarily driven by the strong influence of Islam (97% of the country is Muslim). Apparently, tampon use leads to girls losing their virginity—if only that was the case. Without tampons, Kotex must focus on the maxi pad and liner markets. They are focusing their communications towards comfort and hygiene, which is currently not considered in feminine hygiene purchases. Similar to Huggies, Kotex is incorporating a lot of the U.S. communication strategy focusing on PR, online promotions, and sampling.

Mariah Kottke (2nd year), Peter Melville (KC Turkey Dir. of Marketing) and Ben Lawnicki (2nd year) Both Mariah and Ben interned at KC last summer and will start full-time in July

Now I mentioned in an earlier post about cartoon pop star Kita. I can’t go into too much detail, but what I can say is that we got see her video release with Turkish pop star Keremcem (that is a male if the name didn’t give it away) during our visit with KC. The question I pose is what if a consumer goods company could create its own celebrity? Think about the ramifications of being able to control, Miley Cyrus per se. The results could be amazing. What would the downside be? Fan pushback maybe, or it could fail. Just ponder it because come June we might have an answer.

Here is Kita’s video for your viewing pleasure…(scroll to the bottom of the page and click on the video, it is in Turkish so be prepared).

http://www.vaziyet.net/tag/keremcem-video-izle/

Here is Kotex's website in Turkey. Let me know if you see something familiar...

http://www.kotex.com.tr/

Only marketers would notice this stuff.

2009-01-09T16:28:00.002-06:00

Sorry....

I know that I said I would get something up about our first visit with Kimberly Clark, but when I say we have been busy, that would be the understatement of the century.

Quick thoughts on today and I will try to backfill later:

We are in the Cappadocia region of Turkey...haven't you heard of it. Would not say it is the garden spot of Turkey, but it is very significant historically. The weather is chilly and the buildings are not much warmer. We have been flying through cash at all of the stops we have made. I think Kari Caesar has about 18 pashminas and has managed to come away with something at every stop. Michael Kirtman is already decorating the new house he hasn't bought yet.

I do have to give props to the group for not buying any rugs, but they were tempting. This evening we attended the Turkish Medieval Times--called Turkish Nights. Only thing we didn't have was paper crowns and a raven. Four of our group members--Matt Odigie, Michelle Prager, Kari Caesar, and Jamel Tingman--were invited to learn to belly dance. All did an admirable job, but one person took the cake--Jamel. I would show pictures, but I am not sure they are school appropriate. I will say this, I don't think any of us knew how ripped Jamel really was.

Other observations about the evening:

Greg Rose completely surprised the group with his dancing ability.
Turkish Nights has only one pop song it is allowed to play. Ask Amy Maier for a playback.
The Turks really like their bread.
Our hotel--where the rooms are caves, seriously--is in the middle of nowhere. I am not sure this place is on the map.

Hopefully Sedat (our tour guide) gets some sleep tonight as I think he has a little too much fun at Turkish Nights. I will try to get to the important marketing related stuff as we gathered some fantastic insight and had incredible company visits. The inside jokes and random occurences are just too funny to not write down.

Cheers....very nice!

2009-01-05T11:06:00.003-06:00

Turkey Blog Post #1

So after a three hour bus ride to Chicago, six hours at the Hyatt Rosement near O'Hare, a two hour flight to JFK in New York, a nine hour layover in Terminal 2 at JFK, a 10-hour flight to Turkey, we are finally here. Everybody made the flight, which probably wouldn't have happened if not for a three hour maintenance delay.

We just finished our first company visit with Kimberly Clark (they actually came to us). I will write more about it later, but it was fun. To whet the appetite, it had to do with cartoon pop star Kita and the Turkish version of Justin Timberlake. We are heading out to a kabob restaurant tonight--side note, didn't realize there were restaurants that specialized in kabobs, but as they say, when in Istanbul---and then to bed.

Jet lag is taking its affect on everybody. The 25 of us went through 60 cups of tea during the applied learning. Remember when you were a little kid and you went to the waterpark all day. When you got home that night and laid down, you felt like you were still on the rides. As I type, I can still feel the turbulence, it could be the tea or possibly the chocolate chip macaroons I ate, but I think it is the turbulence.

Tomorrow brings a boat tour of the Bosphorus River and sightseeing, which should mean pictures and crazy Turkish stories for you. Have a great evening, morning, afternoon, whatever time it is where you are.

Cheers!

2009-01-02T14:03:00.002-06:00

Completely random thoughts about the craziness that is Madison, WI.

So I am driving home from Wal-Mart and saw three things that made me laugh out loud.

1. Madison is surrounded by lakes, but I can only remember seeing a couple of people fishing throughout most of first semester. However, there were probably 50-60 people fishing on (literally on) Monona this afternoon. Temperature--18 F. What were they doing--ice fishing. Seriously, the lake was littered with little tents. Unbelievable. I am sure fishing is fun, but it is below freezing, the lake is a solid piece of ice, and do these people have jobs? It is 1:00 P.M. on a Friday.

2. The city of Monona is only about a mile and a half across Lake Monona from Madison, but you typically have to take John Nolen to the Beltline to get there, which is probably 10-15 miles. However, one ambitious sole had another idea--have bike, will travel. Some guy was trying to ride his bike across the lake. I have seen some crazy things, but this was one of the stupidest things I have seen. He probably fell down three times in the 30 seconds I watched him. Stopping is not an option and either is turning for that matter. I was just hoping he would hit one of the ice fishing holes.

3. And finally, Madisonites like to be outside. During the early Fall, you would tons of people running around the city, getting their work out on. Now I just assumed that once the weather turned dicey, the running would stop. However, this afternoon I saw a couple running by the lake. Did I mention it was 18 degrees outside? My lungs started to hurt just watching them. For me to do that, I would have to be bundled up like a 6-year-old playing in the snow for the first time.

These people are crazy. I will be just fine sitting in the house, watching the Cotton Bowl, imagining what ice fishing, ice biking, and running would feel like.

Happy New Year!

2008-12-30T11:32:00.002-06:00

Happy Holidays!

I am embarassed that I looked at the blog and my last post was December 1st. Time has flown by. Finals came and went and I am still alive. While the ICA took a year or two off of my life, we did a great job and I am glad that it is behind us. I took it to the house (Arlington, TX) for Christmas break, but am now back in the glorious Madison weather.

Didn't realize how much I missed warm weather until I wore shorts and a t-shirt on Christmas day. Naturally, there is snow on the ground here and more snow is expected...awesome. However, the weather here has not been undoable. Just put some layers on, get waterproof boots, and earmuffs and you can do it.

I am spending the time off catching up on TV. There is a whole bunch of E True Hollywood Stories that I have not seen, which is disappointing. So far I have enjoyed the Full House story the most, but have high hopes for the ones on Punky Brewster and Angelina Jolie. You can't begin to appreciate life until you see how screwed up some people get.

I did fly to San Diego to see the Poinsettia Bowl, pitting my beloved TCU Horned Frogs against perennial cindarella Boise State. Thankfully, we found some offense at the end of the second quarter and our defense gathered their legs and shut down a potent offense. It was amazing to run into friends from college in a place like San Diego. If it was Fort Worth or Dallas maybe, but not California. What I enjoyed most was seeing the "hot chicks" get fat. I don't care who you are, but that is still fun. Unfortunately, they were probably saying the same thing about me, but I choose to ignore it.

I thought about heading to Florida for the Wisconsin bowl game, but thankfully I did not because it was embarassing. Really thought that the Badgers had a shot, but Florida State ran all over them. Hopefully we find a QB and maybe some speed or next year will be just as bad.

We leave for Turkey in a couple of days so that is what I am thinking about right now. My mom is concerned with the unrest in the Gaza strip as she feels it could spill over into other countries. However, there has never been rest in Gaza so I don't see how what happened two days ago is any different, but I will keep my eyes peeled. I will post more about Turkey prior to and during the trip.

My plan over the next day or two is to catch up with some pictures of the end of the semester. Hope everybody had a merry Christmas and is looking forward to 2009.

Cheers!

2008-12-01T22:09:00.002-06:00

Entering the Home Stretch

I hope that everybody had a great Thanksgiving. I had the opportunity to head back to Atlanta and enjoy a little bit of warm weather. I played golf and wore shorts Friday, which were both big deals considering the current weather in Madison. But with Thanksgiving come and gone, the final hurdles of first semester approach. Over the next 15 days, I have two major projects due and three finals. Couple that with a recruiting trip to St. Louis, the Ugly Christmas Sweater Party, my fiancee's birthday, and the Brand Center Christmas Party and I have a pretty busy schedule.

With that said, first semester has been incredible. It is amazing to look back to August and see how far I have come. I moved to Madison three days before orientation and didn't know a soul. My knowledge of corporate finance consisted of a couple of training sessions at my last job. Accounting was something my sister did and Excel was a tool I used for fantasy football drafts. Now, I can explain the time value of money to my grandmother and understand the pros and cons of offering dividends. Accounting is still something my sister does, but at least I can talk to her about it. And Excel, well that is still a work in progress.

Looking forward, two major milestones still lay ahead. First, the Brand Center is headed to Turkey for our international trip. We leave January 4th and return the 14th. More to come in future blogs about the trip. Second, internship interviews, which is the biggest deal for any first year. We came to school to get a good job and this is step one. We have had a number of mock interview sessions with "friends of the program" (Side note, this sounds like some college football recruiting scandal waiting to happen, if they want to slip me money or give me a car I am game) and still have a mock interview session with Brand Center alums. Come the end of January, the lights come on and it is time to play the game. All of the dinners, the happy hours, the emails, and the applied learnings with prospective companies pay off. I have no doubt that we will be prepared. I interviewed with a company a couple of weeks ago and was amazed about how well I had been prepared. The other interviewees from other schools were nervous and didn't know what to expect. Most hadn't even take a marketing class yet. I had already taken two with two more slated for the spring. The Center definitely gives us an advantage and that is going to pay off with multiple offers for everybody.

I will jump off of the soap box now, but felt that this was important to convey. I guess I am in a reflective mood with only 15 days left and Christmas quickly approaching. Looking back, I don't think I could have made a better decision than coming here. If there is something you want me to address, please shoot me an email or write a note to the blog.

Have a great evening.

2008-11-16T22:51:00.004-06:00

Fall 2008 CBPM Board Dinner

Three weeks ago the CBPM board came to Madison for two days for the annual Board Meeting. Festivities kicked off on Thursday evening with the Board Dinner at Ocean Grille. For the 1st years, it was our first chance to meet many of the board members and get to know them on a personal level. For the 2nd years, it was a great chance to reconnect and share their internship experiences with the interested board members.

I have to say that going in, I was a little nervous. I don't know if you have read through the bios of the board members, but they are very accomplished individuals, who are the leaders of many of the companies that I would love to work at. I went with the impression that I would have to put on my networking hat and work the room, but I was mistaken. When I walked in the restaurant, Tara Khoury, who is the Board Chairman, walked right up to me introduced herself and wanted to learn about my background. That put me at ease and the rest of the evening was easy. It is nice to know that the board members were as interested in me as I was in them.

If you read my quote on the website, I said that I wanted "to gain access to key industry leaders." Well, at dinner I sat next to Signe Ostby and across from Jim Neupert and Colleen Googins. Signe and I even discussed the project I am working on for Consumer Behavior and she gave some much needed advice. During dessert, the board members moved tables and I ended up next to Scott Cook and across from Cheryl Stallworth-Cooper. Scott and I discussed his recent Harvard Business Review article on user contribution and he asked my opinion. Granted, my opinion was drastically influenced by his article, but it was still nice that he asked. Either way, I definitely gained the access that I was looking for and more.

All in all, the food was tasty, the conversation invigorating, and the board members incredibly interesting. Great night.

Pictures below are from the dinner. Good for you that there are no pictures of me.

Adam Needles (2nd year) and Jim Neupert

Becky Bishop (2nd year), Laura Hufschmidt (2nd year), Tara Khoury, and Kirsten Jaeckle (2nd year)

Mark Digman (1st year), Colleen Goggins, John Oros (2nd year)

John Rotheray (2nd year), Andi Lind (1st year), Tim Cofer, Jeffrey Xie (2nd year), Katie Daggett (1st year), Jan Heide (CBPM faculty member)

2008-11-15T08:37:00.010-06:00

Trick-or-Treating with the Big Kids

So if you haven't been to Madison then you wouldn't know that Halloween is a big deal in the city. 8-10 blocks of State Street are blocked off and a huge street party ensues. 7 bands play throughout the evening and O.A.R capped off the evening. To get into the act, the GBA (MBA student council) held its own costume party. Below are a couple of pictures of CBPMers.

Here is Katie Daggett (1st year), Jessie Miller (1st year), Brian Ward (1st year), and Corrine Bennett (1st year). If this MBA thing doesn't work out, Brian should not have a problem finding work in a Mexican restaurant. He already has the hat and coat.

Joe Worley (1st year), Brian Ward, and myself are ready to get the party going. Apparently, everybody was waiting for me to bring my maraca.

Jeff and Michelle Prager (1st year): I easily had Michelle bless me 30-40 times throughout the evening. Ironically, I think Michelle and Jeff really looked the part.

Joe and Jess Worley (she is our own little papparazzi) went as the Spartan Cheerleaders, while my fiancee Annette and I took it south of the border.

Greg Arseneau (1st year) gets the prize for going all out. He went as the Lucky the Leprechaun from the Lucky Charms box. He actually painted his socks green....while they were still on his legs. He spray painted his hat. He also wouldn't walk more than 10 feet with kicking his heels together. I think that had more to do with the paint fumes than anything else.

So the party had a minor detour and was relocated to the Surf Apartments. About 125 parties dressed to the hilt walked 8 blocks. Normally, that kind of crowd would have garnered some interest, but with the entire city dressed up so no one really noticed. I just find it funny that there is a cow in the back of the crowd. Winnie the Pooh also made an appearance, but I couldn't find a picture.

Looks like Mario (Matt Weinman, 1st year Corp. Finance) found his princess(es)--Mariah Kottke (2nd year) and Laura Hufschmidt (2nd year).

Matt Odigie (1st year) and Joe show a little man love.

Meet the Robinsons: Shannon (1st year) and her husband Paul were ready in case a game broke out. Paul was able to participate in his first American halloween as he is from England. Needless to say, it was an experience for him.

2008-11-12T13:33:00.007-06:00

Trick-or-Treat

Halloween is fun for kids of all ages. Below are a couple of pictures of trick-or-treaters within the CBPM family.

Here are the Roses: Greg (1st year), Heidi (Greg's wife, which should be self-explanatory), Jackson (2 1/2 years), and Bennett (4 months). Let me know if you find Greg and Heidi. Jackson was apparently pulled right out of Mary Poppins and Bennett is fitting right in with the Wisconsin culture.

Here is Chrissy and Terry Goins' (2nd year) one-year-old son Adam. Last year he was courteous enough to wait to arrive between the Accounting and Finance midterms. Now, he is climbing walls in Madison, but and will soon be scaling walls all across Racine.

Here are the Teutings: Sarah (C0-Director of CBPM) and her husband Jon (both dressed as cowboys) with their three kids, Kate (3 years old) was a monkey, Sam (1 year old) was a dragon/dinosaur you pick, and Meg (1 year old as well) was a ladybug. Meg took my constume idea. I do have a question about the leopard piping on Sarah's chaps.

Here is another picture of the Teuting kids. I love the expression on Sam's (he's the dinosaur) face. That is the same face I gave to Sarah after she handed me back my resume the first time. It is somewhere between "you have to be kidding me" and "now what do I do."

2008-11-12T13:28:00.004-06:00

Dear Blog,

I am a horrible friend. I have ignored you for the past 10 days as life became a little overwhelming. With an unbelievable Data midterm (dual part let me tell you), a marketing case write up, a finance case write up, and Consumer Behavior Midterm all due over a 10 day period coupled with my first away game (off-site interview in St. Louis) I have not had time to write.

I just emailed in my Consumer midterm and am finishing up a team meeting so daylight (this is theoretical as it is raining currently) is ahead. On the plus side, I didn't have to wear ear muffs to class today and only stepped in one puddle so things are looking up.

So Blog, I promise to write more often and give you the attention you deserve. Well at least until the next wave comes in three weeks. Happy Wednesday!

Kyle

2008-11-01T10:48:00.002-05:00

Happy Babies....Happy Moms

That seemed to be the theme of our Applied Learning on Friday with Kimberly-Clark. Deb Bauer, Huggies Global Director of Brand Development (very serious title, I know), took us through KC's new strategy for Huggies Supreme Natural Fit. This was very interesting when you consider that she runs the Huggies Brand Team that was recently named Brandweek's 2008 Marketers of the Year. She gave us the opportunity to divide up into small teams and debate the same questions to Huggies faced earlier this year.

Five out of six team adpoted the "Happy Babies=Happy Moms" message, but came up with different tactical approaches to delivering the message. KC chose to incorporate humor in their message, which Deb said was a huge break from KC's traditional approach to diaper marketing. Check out the "Brick Baby" spot on Youtube. I also recommend the Inside the Diaper. This was a viral video Huggies put together to uncover the "real story" behind their Geyser ad. Brian Ward almost died he was laughing so hard at the video.

Key takeway: Don't be afraid to challenge convention. The Huggies team took a big risk breaking away from its traditional advertising and 1) putting Moms in the ads and 2) using humor to talk about a sensitive issue. If they had not done this, Pampers would have continued to take share in the Super Premium category.

Changing topics: So I was walking home after the Applied Learning (it was Halloween mind you) and I heard this guy yelling "You will never catch me." Naturally, I turned around as this is not something you hear every day and saw a guy dressed as the Joker (Heath Ledger style) on a scooter coming down the street. I chuckled to myself and kept walking.

Thirty seconds later, I hear a guy yelling "Come back. You will never get away." Another guy was yelling, "Bam. Zah. Crash. Boom." Who was it? The Caped Crusaders. Two guys dressed as Batman and Robin were chasing the Joker on their scooters. Maybe I am the only one that thought this was funny, but it definitely made what was a beautiful Friday that much better. Try to picture it and you will laugh to yourself.

2008-10-30T00:06:00.007-05:00

I figured we should introduce you to our mascot, Bucky the Badger (pictured above). I would say that he is one of the better looking mascots in the NCAA and is much nicer than a real badger. From what Coach K tells me, they are pretty fierce and you wouldn't want to meet one in a dark alley or heavily wooded area. As you will see, CBPMers have had a lot of opportunities to interact with him, which is apparently not common. Everybody I talk to is suprised I have taken a picture with him since he seems to be pretty elusive.

Here is a link to YouTube of Evan Schmidt, CBPM Co-Director Amy Schmidt's seven year old son, doing more than just taking a picture with Bucky. Amy's husband Dan made Evan's halloween costume and they decided to take it for a test drive at the Homecoming Breakfast last weekend. Evan is a huge fan of Bucky (but who isn't really) and they were hoping to just get a picture of him and Bucky for his room. Bucky gave them a little more than that.
Check it out: http://www.youtube.com/watch?v=2NxdrjS4LUM

In this spirit, I have included a couple of more pictures for your viewing pleasure. If you have your own shot with Bucky, either send it to me (kmgore@wisc.edu) or add it to the blog and share it with the world.

Here is a still shot of Evan (Class of 2029, CBPM) dancing with Bucky. I have no doubt that Mom and Dad were so proud. Now if he grows up to be Bucky then we have a story on our hands.

Seriously Corrine (1st year, CBPM), the thumbs up? That was your "go-to" move for the picture?

Tough call as to who looks better. Bucky does a nice job of pulling off wide, vertical stripes as there aren't many people that can do it. Matt Odigie (1st year, CBPM) is rocking the suit and tie, which is always tough to beat.

Here is my ICA (Integrated Company Analysis or 1st Year Group Project) Team minus one member. At this point we knew Bucky about as well as we knew each other. In order, Jessie Miller (CBPM), Ping Zhai (Nielsen), me, Jose Veguilla (Corp. Finance).

This is a picture of our faithful leaders, Amy Schmidt and Sarah Tueting. Sarah looks a little too happy to be taking a picture with Bucky.

Please send in your Bucky sightings!

2008-10-26T23:22:00.007-05:00

"Whoaaaaa.....We're half way there...Ohhhhhh.....Livin on a prayer...Take my hand and we'll make it I swear...Whoaaaaa...Livin on a prayer."

Nobody could sum it up better than Bon Jovi. This past week was the halfway point in the semester, which means: Mid-Terms. And not just your run of the mill exams where you wake up the morning of the exam still hungover and decide to flip through your notebook 20 minutes before class (hopefully I didn't completely give away my undergrad experience).

With Accounting on Monday and Finance on Tuesday most of us were running on fumes. I would say we were running on Dunkin like much of America, but there isn't a Dunkin Donuts in Madison, which is a whole other story for a different time and place. Finance was particularly difficult. That isn't right, Finance was an absolute whip. No other way around it. It was like two hours of playing paintball. You are going to make it through, but you are going to have a few bruises in key places and there is an above average shot that you ran into a tree or four at some point.

Before: This was how most of us felt Tuesday morning before the evening exam.

Remember that scene in Old School when Vince Vaughn looks up from his exam toward the professor, makes eye contact, gives him the thumbs up, and says, "Good test, this is a good test." Sort of had that feeling. I thought about doing that, but then the thought of Coach K taking my exam and telling me to leave the room overwhelmed me. I kept my head down.

When the exam was done, people literally clapped, gave high fives, I think there was even a chest bump or two. Following the exam, everybody headed to a local watering hole and took their frustration out on a pitcher or two. I have to say that has been one of the highlights of the semester to date. People that I haven't seen outside the walls of Grainger were throwing down drinks, having a good time, acting like undergrads again. Six weeks of studying, interviewing, preparing, all seemed to come to a head Tuesday evening. Needless to say, Wednesday was not the most productive day in the history of the Wisconsin School of Business. I know a couple of wounded warriors that were still feeling the effects on Thursday as well.

After: This was Greg Arseneau and Brian Ward coming out of the Finance Exam.

So far, everything has gone pretty well. We have our first set of midterms behind us and a couple of class projects under our belts so things are looking up. I finally feel like I am hitting my stride and getting into a routine, which typically means something is wrong. We have a little break this week, but have two midterms and a paper due next week so the break doesn't last long.

With more time, comes more posts. Have a great Monday!

2008-10-22T21:11:00.001-05:00

While scanning Smartbrief, BrandWeek, WSJ and every other daily RSS feed that litters your inbox, you’ll come across plenty of articles that spotlight good ideas. You’ll read about a few line extensions, some company’s new green initiative, and then you throw in some cause marketing press, and that’s your week in CPG. Rarely will you come across game changing ideas coming from CPG’s.

I must say, however, that the P&G “theessential.com” platform that was profiled in a recent Financial Times article is definitely one of those game changing ideas (whether it’s ultimately successful or not).

P&G web move is challenge to retailers

By Jonathan Birchall in New York

Published: October 19 2008 22:34

http://www.ft.com/cms/s/0/04c83c2c-9e16-11dd-bdde-000077b07658.html?nclick_check=1

Procter & Gamble is testing its ability to use the internet to sell its toothpaste, household cleaners and nappies directly to US households, in a potential long-term strategic challenge to its retail partners.

The company is supporting a website, theEssentials.com, that is exclusively selling its brands, with items such as single tubes of Crest toothpaste and bottles of Mr Clean cleaning fluid, to boxes of its Pampers and Luvs brand nappies and Gillette razors.

The move brings P&G into direct brand competition with its retailers, underlining the extent to which e-commerce is contributing to changes in the way the two sides have traditionally worked with each other.

In an indication of the sensitivities involved, the site is being operated by a third party, which owns the inventory. “We treat them like any other retailer as they buy product directly from us,” said Paul Fox, a company spokesman, of the site, which is still covered by P&G’s legal terms and conditions.

However, as e-commerce expands, manufacturers of electronics, clothing and other goods have shown themselves increasingly ready to overcome traditional concerns over potential conflicts with their retailers.

For consumer packaged goods companies, industry analysts argue that direct online sales are also a way to respond to lower prices from retailers’ private label brands.

In beauty products, P&G’s rivals L’Oréal and Estée Lauder have been selling on the web for some time. Other leading consumer brands, including Kellogg’s, have formed close partnerships with Amazon to drive bulk sales.

In another indication of the flux, Wal-Mart, P&G’s largest customer, is hiring a strategy executive whose tasks include assessing the potential effect of direct-to-consumer sales by its own suppliers.

Copyright The Financial Times Limited 2008

Outside of what’s detailed in the article, I’d like to point out a few other things that may work to P&G’s advantage by leveraging TheEssentials.com:
• They get direct consumer profile information on an engaged consumer.
• They can avoid slotting fees on smaller new product launches, or line extensions on “sustain” product lines.
• With customization becoming an ever-growing area of consumer interest (Check Nike ID, or Xbox Skins), P&G can offer a larger portfolio (colors, features) of Braun, Oral-B, and PUR products than would be available at retail.
• They’ll also have a platform to sell incremental product replacement and enhancement parts for their equipment focused brands. And these tend to be very high margin.

www.theessentials.com

2008-10-22T13:58:00.004-05:00

Scott Cook in the news...

Don't know if you caught the most recent version of AdvertisingAge, but there is an article about Scott Cook's most recent entry into the Harvard Business Review--"The Contribution Revolution: Letting Volunteers Build Your Business".

Here is the link: http://adage.com/digital/article?article_id=131874

Why this is important? Both 1st and 2nd years are reading Scott's HBR article for the upcoming board meeting this week. We actually received the article prior to publishing so that is pretty cool. It will be interesting to go through the principles of this article with the actual author. Most of the time, the case studies we read are facilitated by professors, not authors so this should be interesting. My guess is that there won't be many takers challenging his point of view, but you never know.

2008-10-17T15:43:00.001-05:00

Is it Friday already?

I am sorry for slacking this week on the Blog, but time just seemed to disappear. Studying for midterms has taken its toll, but that shouldn’t be an excuse. Let me bring you up to speed.

Last Friday, S.C. Johnson came for an Applied Learning. David and Gabe gave us two case studies to delve into. First, we looked at the Scrubbing Bubbles Automated Shower Cleaner. I am sure you have heard of this. It was the thing you put in the shower, pushed the button, and it sprayed your shower with Scrubbing Bubbles cleaner—pretty cool concept. David laid out the initial launch of the product including its advertising campaign and challenged us with making improvements in years two and three. I have to say that I was impressed with our groups. Each group seemed to quickly identify the areas for improvement that S.C. Johnson saw and provided a range of solutions that matched up with what was actually implemented. Score one for the CBPM.

Then Gabe took us through a similar process with Off’s Smooth and Dry product. I had no idea that insect repellent could actually dry upon application so he totally won over a new customer today. Our challenge was to come up with the appropriate marketing channels to use in the release this new product. I found it funny that even without budget constraints most groups tended to be cost conscious. We also limited ourselves to only four or five channels, while Off ended up using over 12 so I guess we still have more to learn.

Either way, these events are great because we get to apply what we are learning in class. I sometimes leave class and wonder if I really learned something or not. I am beginning to realize that I am actually retaining what I am learning in class. I think Jan and Deb (our marketing professors this semester) would be proud. It is also nice to feel confident about something class related after struggling through Finance and Data to Decisions. Hey, they grade on a curve, right? Sweet.

Have a great weekend!

2008-10-10T18:06:00.008-05:00

GBA Golf Outing

Since I was unable to make the golf tournament, I asked fellow 1st year Mark Digman to give write up something on the event as it sounded incredible. It should also be noted that 2nd year John Oros put the whole tournament together. It was a daunting task and he did a great job.

A little over two weeks ago the 5th Annual GBA Golf Outing was held and it was a blast! To me, a beautiful day out on the golf course beats a day in the office or in class. What's even more important was that we were paired up with representatives and recruiters from a variety of companies that will be here on campus in a couple months to interview us for internships and full-time positions. The primary companies represented were General Mills, Kimberly Clark, Proctor & Gamble, Grainger, Johnson & Johnson, Raytheon, Best Buy, Robert W. Baird, and SC Johnson. It was an excellent opportunity to get exposure to these companies and their recruiters. It'll really be nice to have already met some of these individuals when interviews come around.

Picture 1: Mark and Doug Sticksel(2nd year CBPM) playing with P&G
Picture 2: Dave Oehler (2nd year CBPM), Erin Wilson (1st year Nielsen Center), Jon Jones (1st year CBPM, Christina Zwicky of General Mills (CBPM '07)

We played at University Ridge Golf Course which was in amazing shape (it's a far nicer course than I deserve to be hacking around on). And actually, it's pretty cheap for students to play. Everyday rates are $26 for students. But in all honesty, there wasn't a ton of talent displayed on the course. I think more people were interested in throwing back a few beers with the recruiters and enjoying the day rather than getting too competitive in the scramble. The day was a great and I'm certainly going to participate again next year.

Kyle here again: From talking to those that played, the contacts they made were incredible. To be able to ride along with Brand Managers and Assistant Brand Managers for five hours and ask them about the industry and their company is invaluable. I am jealous that I didn't get to play, but everybody has been very nice about introducing me to their playing partners when they come on campus.

Have a great weekend and thanks Mark for putting this together.

2008-10-09T14:23:00.009-05:00

Developing Your Leadership Style as a Marketer ...

Last night, the CBPM second years attended a seminar with center board member Dick Antoine, who is the former global head of HR for P&G. The focus of the session was on leadership development for marketing leaders and covered two key topics: understanding effective leadership and developing personal leadership style.

Dick spoke from his experiences at P&G, where for more than 30 years he led talent development at various levels of the organization, including within production facilities and the supply-chain organization. He helped build systems and frameworks within the company to encourage and develop leaders and has had a lasting impact on the company.

I think that is what was most compelling about the session. Whether it is the illustrative examples, or the big-picture frameworks, Dick really had some good perspectives on what it means to be an effective marketing leader. And it was clear that he is passionate about building leadership in the next generation of brand marketers.

One of Dick's key points was to make the case for leadership being about more than just accomplishing tasks. Speaking of his experiences at P&G working with marketers to develop their leadership skills, he commented, "It always frustrated me when we had the leader of a team, and we asked him or her, 'Who are the least effective people on your team?' And I would always follow up with the question, 'what are you doing?'" His point was that leaders have to be engaged with their team and focusing not only on tasks at hand but on the personal and professional development of those whom they lead.

A key question that Dick posted was whether you are born as a leader or whether you can develop these skills. Second-year CBPM student Jake Abel shared his belief that "[t]here is a common misconception that leaders are born and not made. ... I think everyone has the ability to have those characteristics. The key is forging these characteristics." Dick agreed with this point but added, "I think experiences help shape leaders."

Another of Dick's key point was that there can be a diversity of leadership styles within an organization but that it is incumbent upon leaders to understand their own, unique leadership style. He noted that a number of factors impact leadership style, ranging from relgiopn to role models to experiences and education.

I posed to Dick the question of how an organization such as P&G can balance the goals of having a consistent culture while also having diverse leadership styles. He responded, saying,"I think culture is about shared beliefs. What are the values of an organization?." He continued that he believes the two can coexist. On the subject of culture and unity, he added, "I would argue it's also a focus on sustainable business results."

The session also explored different tools for assessing our individual leadership styles, including the Myers-Briggs, DISC Profile, and the concept of Situational Leadership.

Dick ended the session by talking about the 5-E Leadership Model he had helped to develop at P&G, and he talked about how to apply this model as a marketing leader. "Great leaders are in touch with their organization."

His key point was that leadership requires a complete awareness of one's business. "Make you set aside to understand the various parts of your business, not only the part you are responsible for. ... "You are managing a cross-functional team as a brand manager, and marketing and the agency are not the only elements," said Dick. He also argued for being a proactive leader: "Discipline around your schedule -- say to visit the R&D center or a consumer home twice a month. There aren't many people who have the belief and the dicipline."

2008-10-07T16:16:00.008-05:00

Why did I decide to get my MBA? To get a better job. It is as simple as that. Yes, the learning is great and I like my fellow students, but ultimately we are all here because we want to advance our careers.

Internship interviews don’t start until January or February for most companies, but we are already starting to prepare. This is crazy. I haven’t taken a midterm yet and only received my first grade on a project this morning. Since the very first day of orientation, we have been preparing for interviews. Sarah held a meeting (or meetings in my case) with each one of us the first week to go through our resumes and “refine” them. I put refine in quotes because I know a lot of us had to do a lot of work on our resumes, which was painful, but completely worth it. The Center even brought in a specialist to help us with Case Interviews—ex. How many cabs are there in NYC?

During our Managerial Communications class every week, MBA Career Services has been walking us through the different steps of preparing for interviews and getting a job—cover letter writing, resume prep, company research, and basic interview skills.

And now, five second year students—Dave Oehler, Elena Taylor, Heather Holtsberg, Doug Sticksel, and Laura Hufschmidt—will be our Interview Team for the Fall. They spent three hours last night going through interview techniques and STAR story preparation with the 1st year class. We are meeting for three more hours next week to practice these techniques in small groups and have four other sessions scheduled before Thanksgiving. I have already had lunch with my team leader—Doug—to discuss what I need to work on and met with Dave today to learn more about his experience with General Mills specifically and the internship interview process in general. The best part was that Doug and Dave sought me out, not the other way around.

Why do I bring all of this up? Because when I talk to my friends (yes, I have friends) at other schools, they aren’t doing this. When I tell them that we are working on this as a team, they start to laugh. I guess it is much more competitive at other schools than here. A buddy of mine said that he expects to have three interviews at most and this is a supposed Top 10 MBA school. From what I am being told, I can expect to have at least three in one day. I guess our attitude is that there will be enough offers to go around so we need to help each other make the right decision and get better. When Corrine for example does a great job on an interview or at her internship, she will make me or Rishi or whoever look better and that is what matters.

I might be panicked about the Finance midterm (I am by the way), but for some reason, I feel like I am going to get a great job. I think that all of the time I am putting in right now is going to pay off when the real interviews start in January.

Off to study for Finance and Accounting, awesome.

2008-09-30T13:56:00.006-05:00

More on Ethnography at P&G ...

Kyle talked about P&G coming to campus this past week. I wanted to add some more on the session that they did last Friday.

The focus of their presentation was on ethnography and how as brand managers we can use this type of research to develop, grow and evolve brands. They explained the background of ethnographic research and its role in marketing research; discussed 'applied' ethnographic research; and provided tips on best practices for conducting ethnographic research.

Very interesting stuff, with a number of great take-aways, including:

Ethnography is a type of cultural anthropology -- extending traditional demographic and consumer behavioral insights and rounding out the perspective on consumer insights that drive product innovation and marketing.
It is rooted in being an observational marketing-research activity - having the consumer act as (s)he normally does without biasing the results.
One of the keys to good ethnographic research is to capture the consumer 'in his/her words.' Some of the ways brand/research people do this is through video and other ways of recording the consumer's verbatim as it was said.
A critical tool for good ethnographic research is the 'laddering' questioning technique.

As Kyle mentioned, P&G also related ethnographic research to shopper marketing -- discussing implications for the 'first moment of truth' -- i.e., the decision-moment consumers face in store. They also discussed P&G's strategy for evaluating and building in-store marketing strategies -- their 'stop, hold, close' model.

"Knowing what drives initiatives at first moment of truth helps us build a shopper profile," commented CBPM alumna Carrie Rathod.

Finally, we went out in the field and participated in a live business case project for Pantene shampoo -- 'riding along' with consumers recruited by a marketing research company as they shop and discussing with them their purchasing patterns.

For those who attended the session, what did you think about ethnography as a marketing-research tool? Any comments on actually doing this out in the field? Please share your thoughts.

2008-09-29T23:46:00.002-05:00

Colleen Goggins named to Fortune’s 50 Most Powerful Women

Why is the important and why would I reference this link?

1) Colleen is on the Board of Directors for the Center for Brand and Product Management. She is very involved with the Center and has been an instrumental individual in helping grow the Center to where it is today. She brought the Johnson & Johnson/Pfizer integration team to campus and guided us through our first applied learning session.

2) She took me and the first year class to dinner. That should actually be #1. Anybody that wants to take us to dinner should get top billing. It is a little surreal to read an article like the one in Fortune and realize that only two weeks ago, I had a conversation with her about J&J and her plans for helping grow the business further. Needless to say, in my previous job, I wasn’t having dinner with these type of people, let alone coffee, a short elevator ride, or even an innocent glance on the street.

3) And finally, she is just a really nice individual. I was amazed at how down-to-earth and approachable she was. She kindly answered all of our questions and treated each person like he/she was the most important person in the room at that moment.

On Wisconsin!

2008-09-26T18:52:00.002-05:00

So it was apparently P&G (Procter & Gamble) week for the Brand Center with an info session on Wednesday and an applied learning activity on Friday. Info sessions are always good for two reasons:

1) The opportunity to put names with faces of recruiters that will be visiting campus for interviews next year and to learn a little more about each company’s intern program.

2) Free product (yes, in B-school we refer to stuff in very technical terms so stuff or things are not options. We also use words like synergy and anthropological because we can.)

P&G brought no shortage of product. We literally walked out of the info with our hands full of various products. I walked home with a box of Puffs, Bounty paper towels, Dawn soap, travel size Tide (because you never know when you will need that), Covergirl makeup (for the fiancée, not me), Febreeze-scented Mr. Clean wipes (that is what we like to call synergy), and my personal highlight, the new Gillette Fusion Power Phenom razor with Duracell battery. I have to say that the funniest scene though was Jon Jones, Joe Worley, and myself walking home because Joe was carrying not one, but two, packs of Charmin toilet paper. Needless to say, we got a few looks and a number of laughs on that walk. Reminded me of the walk of shame as an undergrad, except Joe was carrying toilet paper.

On Friday, P&G hosted a joint applied learning session for the Brand Center and the A.C. Nielsen Center for Marketing Research. Carrie Rathod (CBPM ’05) returned to campus to help teach the session on ethnographic research. I had absolutely no idea what this was until today. Essentially, we were given the opportunity to follow a consumer through the grocery store while he or she selected hair care products. Carrie works in the consumer hair care category so this was very pertinent to her team. We would ask the consumer questions about their buying behavior or why they picked one product over the next. Our goal was to better understand the buying decisions a consumer goes through when selecting shampoo, conditioner, hair spray, detangler (not my word, but my consumer’s), mousse, and volumenizer (not sure on the spelling).

Typically, I am anti-stalking, but I will admit this was a very cool project. It was amazing how much insight we were able to gain in an hour of conversation with a typical consumer. When we returned, our teams met as a group and put together action plans for P&G to better position various products or adjust in-store marketing campaigns. These are exactly the type of projects that actual Brand Managers and CKMs (Consumer Knowledge Marketers or researchers) do on a regular basis. It is one thing to talk about this stuff in class, but another to actually do it.

All in all, great day and great week despite a killer Data to Decisions project. Time to enjoy the Fall weather before cold temps and snow flurries become the norm. Cheers.

2008-09-22T16:01:00.004-05:00

Teachers take Students to the woodshed....

Intriguing title, right? Flag football started Sunday afternoon and the MBA program has put together two teams. Men’s League had a bye, but Co-Ed got their first taste of action. Two members of our team—Eric and Beth—are actually TAs for a couple of undergrad students on the opposing team so we had a little motivation. Had to be a humbling experience for the younger more agile undergrads to get their tails handed to them by grad students well past their athletic prime.

Our defense pitched a shut out and scoring became irrelevant after our third TD. Hopefully this will bode well for our upcoming season. The biggest difference between the undergrads and our team is that they probably don’t realize they played yesterday, while we feel it in every step. My standard 20 minute walk to class this morning took a little longer than normal and the calf cramp half way there was most unexpected.

Final score: MBA 32 Undergrads 0

We are setting the over/under at 4 wins. Place your bets accordingly and be sure to tip your waitresses.

2008-09-21T21:33:00.004-05:00

Building Bridges ...

A quick report from the front line as a number of first and second-year CBPM students attended the National Black MBA Conference in Washington, DC, this past Thursday and Friday, September 18 and 19 (including me).

The event was a great opportunity to connect with employers that aren't 'regulars' on-campus for the brand center. Although we get a great cross-section of leading CPGs that participate on our board and that come to campus, events such as the Career Fair at this conference are a critical platform for making additional connections in other industries -- especially for full-time marketing/brand opportunities in areas such as automobiles, beverages, entertainment, hospitality and technology.

A number of second-year students interviewed on-site for full-time marketing, brand management and merchandising management positions with companies ranging from 3M to Pepsi to Target. And many more connections were made, meeting with companies directly at their booths.

Below are four CBPM second-years that attended (from left to right): Sennai Atsbeha, Adam Needles (me), Elena Taylor and Rebecca Bishop.

The event was also a great opportunity to 'evangelize' about the brand-focused program at Wisconsin, and Blair Sanford, who directs career services at Wisconsin and who helped to sponsor our DC trip, really partnered with us to help build contacts with recruiters who are really excited to hear more about our program.

As a final comment on the conference, I have to say how impressed I was with what a professional job the organizers have done. I've attended other MBA conferences, and the National Black MBA Association really runs a top-notch diversity conference. I was really excited to participate not only to network with employers and to promote our program, but also to support the diversity initiatives of the organization and for Wisconsin.

On Wisconsin!!

2008-09-19T15:13:00.007-05:00

Fridays are always a mixed bag as some weeks we have company led applied learning sessions or a golf tournament like today. Unfortunately, I was unable to play today, but somebody will post about the event next week. Last night, General Mills visited campus and took many of us to dinner at Magnus to give us their spiel. Three of the presenters were CBPM grads—Ryan Stalker (MBA ’05), Andy Freedman (MBA ’06) and Christina Zwicky (MBA ’07)—so it was nice to meet them and get their perspective on careers in brand management. I have to say the best part of speaking with each of them was their openness and honesty regarding the company and the opportunities. Each has a vested interest in seeing us succeed and were more than happy to answer questions however crazy they might be.

I think we all agreed that there was some risk in coming to Wisconsin for school as the program is still relatively young, but meeting people like Ryan, Andy, and Christina only reaffirmed my decision more. Following dinner, we headed to TAPS, which is essentially MBA Happy Hour every Thursday. The General Mills crowd joined us as well and it turns out that Andy still had a tab running at Genna’s so he was good to go. Wisconsin football has a bye this weekend so everybody was making plans for the weekend. Rumors have it that some fellow MBAers are having a Keg Kickball Tournament this weekend. If that is not a recipe for disaster I don’t know what is.

Off to catch a plane to Phoenix (with a UW bye I have to watch football some place), have a great weekend.

2008-09-17T22:37:00.010-05:00

Welcome to the Fall 2008 Brand and Product Management blog! My name is Kyle Gore and I am a First Year student in the CBPM. My picture is not the best as it looks like I swallowed a ham, but that is neither here nor there. I will serve as the Blogmaster (not my choice of title) for 2008-2009. It will be my job to give you a snapshot into my experience at the Wisconsin School of Business and try to give you an idea of what makes our community so great. Let me start by saying that I won’t be the only blogger, which is good for you. Our goal is to fill the blog with different information from professor interviews and current class discussions to social outings and weekend excursions. Blogs are only effective if they are interactive so please post your comments or feel free to add insight, however poor it might be--just kidding.

To give you an idea about my background, I moved to Madison from Atlanta, GA where I lived for the past four years. My fiancée (we got engaged July 5th in Mexico) moved here with me as well and just recently found a job, which is good as we need the cash flow and she was getting pretty bored. I am originally from Texas, growing up in the DFW area. I graduated from Texas Christian University in 2002 with a degree in Marketing. My first job moved me from Dallas to Phoenix and then to Atlanta so I have been transient since graduating. What do those cities have in common—very hot weather. What does Madison not have—very hot weather. It is only the middle of September and it gets chilly in the evenings. Everybody tells me that it snows in Wisconsin, but I won’t believe it until I see it.

Let me bring you up to speed on where we are. We are in the third week of classes after two weeks of orientation so week five in all. I turned in my first paper of the year this afternoon. Granted, it was not a long paper and I had my fair share of graphs, but it was a paper nonetheless. When you aren’t use to writing papers, this is a big deal. I am big on metaphors so I would describe this time of year like staring out at the ocean as storm clouds gather on the horizon. The weather is nice where you are now, but you better enjoy it as it is going to get nasty pretty soon. That is what I feel like. Two weeks from now, I will be subsisting on Red Bull and prayer as group projects, mid terms, and research papers seem to be due at the same time. As the semester rolls on, I will give more details on classes and projects and my level of sanity, which is questionable to begin with.

Below are pictures from the GBA (Graduate Business Association or MBA Student Council) Welcome Back Party at the conclusion of orientation. The theme was The 80s so we dressed up in our best “Members Only” jackets, neon-colored polos, and mullets. The Brand Center took pride in winning both Best Dressed Male and Female with Brian Ward and Katie Daggett taking home the prize. Have to say that it was pretty fun to bust out the clothes I wore during undergraduate theme parties for this event. Bust is the operative word as I have apparently put on some weight in the past six years, but tight was in in the 80s, wasn’t it?
Tomorrow is a big evening as General Mills is taking the first year Brand students to Restaurant Magnus for dinner. Yep, you heard me. A company that all of us would like to work for is coming to campus and wants to take us to dinner. This is apparently pretty common as this will be the second dinner we have gone to and it is only week three. Magnus is a very nice restaurant so they aren’t doing this on the cheap either. Friday, I will give you a run down from dinner.

Time to hit the books as this has been a nice study break. Normally my entries won’t be this long, but I just wanted to catch everybody up.

2008-04-16T17:47:00.003-05:00

Spring Ball
Saturday gave first and second years a chance to get all dressed up for a night of good times at the Overture Center, where this year's Spring Ball was held. The turnout was great, and with the end to the semester in sight and Spring certain to arrive any day (we hope) it was a great chance to relax and have some fun. Awards were awarded, dances were danced, and drinks were drank - and while Sunday may have gotten off to a slow start for some, I think everyone would agree Saturday night was a great time.

2008-04-07T16:28:00.002-05:00

Oh, The Places We'll Go...
With spring in the air (or at least not bitter-cold winter) it's time to start thinking about summer. For every 1st year student in the Brand Center pursuing an internship, those plans are starting to take shape as all of us have secured a position for the summer.
In a little over a month when the semester ends, we'll be heading in all directions to take internships with Nestle, Nike, Target, SC Johnson, Kraft, Roth Kase USA, Procter & Gamble, Kimberly-Clark, General Mills, Sears, WW Grainger and Johnson & Johnson.
We're excited to get out there, start applying what we've learned, and show the world what kind of MBAs UW-Madison produces.
Of course, before we pack our bags we do need to finish the semester...

2008-03-14T21:38:00.006-05:00

BRAND PULSE … Luxury Brands in Transformation (3 of 4): Luxury Brand Face-off, Winners and Losers

> Adam Needles, 2009 MBA Candidate, Center for Brand and Product Management

The second piece in this series identified the key positioning opportunities and challenges for luxury brand companies in the current market. Now we continue by looking specific brand companies – identifying potential 'winners and losers' and discussing their strategic opportunities and challenges ...

What companies are being impacted by this evolution in the luxury brand market, and what is the scope of this impact?

> Hermes vs. Coach: Perhaps a modern ‘Tale of Two Cities,’ these two brands – both prevalent and well-known in the luxury brand market – could not be more different and more-differently positioned to compete in a changing and ‘bi-furcating’ marketplace where the gap between the Super Luxury and Mass Luxury segments is increasing.

Hermes' vision of its target customer and of its brand value proposition has remained clear for decades. It is high-end; it is expensive; it is handmade; it is high-quality; it is exclusive; and it is targeted at a Super Luxury consumer. This is not the case for Coach; the company literally reinvented itself in 2001 as a fashion-forward manufacturer of mass luxury goods to better compete against stronger luxury brands: “The idea was to reposition the brand as an American alternative to Prada and Louis Vuitton, with prices ranging from $125 to $2,000. They called it 'affordable luxury,” explains Dana Thomas on the Coach business strategy in her recent book, DELUXE - How Luxury Lost Its Luster.

This strategy worked for nearly five years as the purchases of middle-class consumers and mass-affulents drove significant purchase volume within the luxury brand market. Coach customers were lured by its trendy image and accessible price points, and when the economic environment in the US and Japan was stronger, its Mass Luxury customers were willing to shell out for higher-priced items. In fact, this strategy of targeting affordable luxury even helped Coach better penetrate the Super Luxury segment and begin to offer higher-end goods to begin to compete with Louis Vuitton and Prada; however, this remains virgin territory for Coach. And the strategy has proven to be un-sustainable.

The company remains dependent upon spending for its lower-priced items, and unfortunately, the Mass Luxury segment is highly income elastic. So consumer behaviors have adjusted with a falling Dollar, weakening US and Japanese economies and increasing US credit concerns. A recent Financial Times piece captured this adjustment by Coach customers in the recent holiday season: “When they made a purchase they were opting for lower-priced items.” A Wall Street Journal article from the same time period similarly noted: “Coach, which pioneered accessible luxury in the U.S. with its $300 handbags, resorted to deep discounting to lure holiday shoppers into stores.”

Hermes, on the other hand, has maintained its consistent focus on the higher end – remaining unwavering in its brand merchandising approach and expanding its brand franchise very cautiously. This has allowed the brand to remain strong in a challenging market environment. Author Dana Thomas, cited above, notes: "In the world of luxury brand handbags, as in automobiles and clothing, there is a pyramid of quality: made-to-order down to mass-manufactured. The best – the equivalent of a Rolls-Royce or Chanel couture suit – is an Hermes handbag. Made of the finest leather and fabrics, sewed by hand, and with starting prices of more than $6,000 and years-long waiting lists, Hermes handbags are considered by many to be the last true luxury goods … ."

There is also a differential in how the two companies treat service. There is no question that retail service is very attentive at both Hermes and Coach locations; however, it is service with a very different goal. Coach wants its customers to quickly find an off-the-shelf ‘it’ bag, upsell accessories and care products, and then send the customer out the door with her impressive new, logo-emblazoned Coach shopping bag.

The experience at Hermes is very different, though, as Dana Thomas explains in her book:

Buying an Hermes handbag – or saddle, or luggage – on the other hand, is still a true experience in luxury. Hermes boutiques do receive a few bags each season to sell to customers who walk in – a bit like a good restaurant always saving a table for a regular who drops in without a reservation. But generally, if you want to buy an Hermes bag, you have to order it. The bags on display in the store are just that: display models to show you the options. You choose the material: cowhide, reptile, ostrich, or even canvas. You choose the color and the kind of hardware: silver, gold, diamond-encrusted. And for the Kelly, you choose if the seams are on the outside turned in. And then you wait several months while it is made to your specifications. When it arrives in the shop and you are invited to come pick it up, it is your bag. Any other woman may have a navy blue cowhide Kelly with gold hardware and turned-in seams, but that was her idea, just as yours was yours.

Hermes is incredibly-well positioned to weather a tough economic environment by relying on its traditional customer base. Its Super Luxury customers are very resilient and not likely to bolt; moreover, its classic designs, conservatism, discreetness and ability to offer a unique customer experience make it a good match for the new opportunities and challenges facing luxury brands (as noted in a previous blog posting on this site).

Coach, meanwhile, must batten down to weather the storm among its core customers. A recent Forbes piece noted this trend: “There are cracks in Coach’s glam facade. During 2007’s holiday season many skipped the iconic bags for cheaper items like its key chains and fragrances, notes Todd Slater of Lazard Capital Markets. Also, sales increases at Coach’s lower-margin factory outlets are now far higher than at its retail shops.” If Coach wants to remain true to its Mass Luxury customer, it may have to go down market – finding a new product mix and price points and better catering to the needs and capabilities of this customer; otherwise, it may need to shift to new retailing concepts that can better attract the Super Luxury customer … assuming that customer is not turned off by every teenager in America already sporting a Coach bag.

> Armani vs. Burberry: Whereas Hermes vs. Coach was a look at how luxury brands can sometimes aspire to cater to one segment but are in fact dependent on another, Armani vs. Burberry looks at the opportunities and challenges inherent in juggling multiple customer segments at the same time. Burberry has attempted to make the Burberry brand mean something relevant to an increasingly-diverse customer base – rapidly evolving and changing from its historic roots. Armani, by comparison, has always taken a careful brand-segmentation approach that has allowed it to seamlessly operate in multiple customer segments at the same time and with complete brand integrity. The different approaches have yielded wildly-different results.

Burberry executives might argue that the company targets many sub-segments within its larger brand; however, to the outside customer, there is only one Burberry brand, and it represents a confused jumble of associations – from stately, refined businessmen wearing trench coats to trendy women sporting the latest Burberry couture to teenagers wearing Burberry scarves with the signature tartan.

This ‘brand-diversification opportunism’ yielded short-term gain for the company in the early part of the new millennium, but at a sharp toll on the brand's sustainability: “Burberry, in particular, has benefited from consumers looking to trade up. Former chief executive Rose-Marie Bravo repositioned Burberry around 'accessible luxury,' and the results spoke for themselves,” comments Mark Ritson in a recent piece in Marketing. But now the company is off to a rocky start in 2008, reporting mixed financial performance. The company, thus, is trying to address this issue. “Burberry, for example, now places its famous check more discreetly, often on the inside of its high-end designs. It has developed a top-level premium brand, Burberry Prorsum, and uses a higher pricing structure to ensure an added degree of separation from its 'mass' offering,” noted Simon Brooke and Amanda Nottage in another article in Marketing. But is it enough?

Armani, however, has carefully extended the 'Georgio Armani' house brand into several different sub-brands, including flagship Georgio Armani, as well as sub-brand extensions Emporio Armani, Armani Jeans and AX Armani Exchange – with each sub-brand being carefully managed and having its own value propositions and price points for a given targeted customer segment. While the company is privately held, it reported that 2007 was another strong year for the company – proving its long-term strategy and careful approach to sub-brand cultivation.

Armani 'gets' the divide between Super Luxury and Mass Luxury; Burberry hurt its opportunity with Super Luxury by following the Mass Luxury segment and by becoming overly associated with younger, less-affulent customers. “Burberry et al are suffering because they've hitched their wagons to the so-called 'mass affluent' consumer—a demo that's one step below the recession-proof superrich and one, as luxury brands are now learning, far more susceptible to the vagaries of the economy,” comments Eric Newman in a January BRANDWEEK piece.

Armani has also placed a continuing emphasis on service and brand experience. “Has anyone noticed that part of the experience of a luxury brand, such as Armani or Gucci, is great, over-the-top, personalized service?” asks Milton Pedraza, CEO of the Luxury Institute in New York in a BRANDWEEK Q&A. Subtle innovations within the Armani brand have included increasing customization of fit for its customers. And as noted in a previous BRAND PULSE posting on this topic, the company is launching Armani-branded hotels to extend that experience. “Armani Hotels & Resorts will showcase the designer’s trademark minimal, clean aesthetic to create a feel of casual elegance,” comments Trevor Lloyd-Jones on website Business Intelligence Middle East.

Armani is a strong example of one company operating a brand portfolio that effectively captures opportunity with multiple segments – in our context, efficiently straddling both Super Luxury and Mass Luxury with differentiated experiences, quality and price points. Burberry is an example of a company trying to do this without carefully architecting the layers of sub-brands and their value propositions; it is also an example of how luxury brands cannot be changed overnight without doing long-term harm to the brand heritage. To better compete in the luxury brand market and to seize the new opportunities in a transforming luxury environment, Burberry must carefully re-architect its brand portfolio; however, this is not something the company can accomplish overnight, and it must manage its investors’ and customers’ expectations as it goes through this transformation.

> Bulgari vs. Tiffany: This matchup is somewhat similar to the analysis of Hermes vs. Coach; however, in this case, the company with the upper hand has the shorter history – proving that brand heritage can be damaged by schizophrenic marketing strategies. Compared to the iconic Tiffany, Bulgari is best positioned to benefit, given its long-term discipline of executing flawless but minimalist design, focusing on the Super Luxury segment, maintaining a balanced global sales portfolio and avoiding lower-priced, trendy, ‘aspirational’ luxury items.

Tiffany, despite a wealth of brand heritage, has ploughed a rocky row over the last decade. The company got itself into trouble by over-emphasizing inexpensive Tiffany-branded silver ‘baubles’ that brought teenagers into the stores and made traditional, Super Luxury, customers feel marginalized. Some worry the company is poised to repeat this mistake. Also, the company is driving its domestic expansion with a lower-end 'Tiffany Collections' store format – squarely targeted at the Mass Luxury segment at a time when the economy in the US is less than rock solid. Add to this the company's significant exposure in Japan, and what might be considered a high-end, globally-diversified company looks more like a brand needing to redefine its direction and meaning – and with too much exposure to the two industrialized countries experiencing the greatest economic woes – Japan and the US.

A recent MarketWatch piece captured the challenge facing the Tiffany brand: "Although Tiffany is perhaps best known for selling diamond engagement rings – the company claims to have introduced the ring as it is now known – it derives a significant percentage of sales from its silver jewelry collection. This features trademark items such as its $125 heart tag charm bracelet. / What's more, Tiffany recently emphasized the opportunities it sees in that silver jewelry segment, saying it wants to increase store traffic by driving more business at more modest price points." The question is whether a single brand can straddle both consumer constituencies – Mass Luxury AND Super Luxury – with the same brand identity. ‘Collections’ may be intended as a sub-brand, but is it sufficiently differentiated to not dilute the overall brand?

Bulgari has always operated in a different class than Tiffany, despite a shorter history and less brand awareness. First, its target group and product line is more narrow, as is its retail footprint; however, its depth in delivering products and services to this segment is arguably deeper than that of Tiffany. Second, Bulgari has a key focus on the uniqueness and exclusivity of the Bulgari brand experience – integrating both products and (an increasing focus on) services. Whereas Tiffany has focused on delivering an optimal retail environment (and is certainly customer-service-oriented), it remains very product focused. Bulgari on the other hand instills a certain 'mystique' to its brand, which has enabled it to expand the breadth of its offering and to focus on services. Bulgari retail is high touch, and the brand is expanding into new directions from fragrances to hotels – all extending the 'essence' of the Bulgari brand and enabling its Super Luxury target customer to wrap him/her self in a Bulgari lifestyle of poignant products and services. Finally, Tiffany and Bulgari have a strong divergence in their design approach – important to the increasingly-conservative consumer product preferences noted in the last blog post on this topic. Bulgari is clean and minimalist. Tiffany, by comparison, is ‘classic,’ but some of its collections and designs are complex and perhaps a best described as ‘Baroque.’

There is no doubt that Bulgari is better positioned to be successful with the Super Luxury customer. The CEO of Bulgari believes that this is the key to the company’s strength and long-term sustainability: “Bulgari is less exposed than other [luxury-goods companies], because it is high-end. In general, humans are not inclined to change their habits,” he commented in a recent Wall Street Journal article.

Tiffany will struggle serving both Super Luxury and Mass Luxury with a single brand. Perhaps it needs to rethink its brand strategy and, instead, create clearer distinctions between its customer-product lines and invest in sub-brands to better identify with both the customers and products in these lines. Or perhaps it should choose just one segment and optimize its offerings to that target customer’s needs.

And this is a ‘lesson learned’ for all brand marketers. You can’t be all things to all people. That’s just not the way brands work – especially not in luxury.

What is next for the luxury brand market? Our final piece will present some brief final thoughts – possibly add a few more ‘winners and losers’ and tie together the pieces in this series over the last month and a half …

2008-02-27T18:03:00.010-06:00

BRAND PULSE … Reinventing Web Brands (1 of 3)

> John Rotheray, 2009 MBA Candidate, Center for Brand and Product Management

Note: This is the second piece in what is now a regular and evolving serial feature on this blog -- MBA students in the Center for Brand and Product Management at the Wisconsin School of Business presenting timely perspectives on issues facing the brand world.

Crossing the 'brand canyon' on the Web.

Did you know that Google’s audience skews towards a fairly wealthy, older and more educated audience while Yahoo’s audience is younger and slightly female slanted?

A common misconception is that mainstream Web brands are intended to appeal to anyone and everyone, but in fact, every US Website in the top 100 list skews towards a particular demographic.

In an effort to set the record straight, this article will dispute the sustainability of ‘un-positioning’ strategies on the Web in light of competitive trends and increasingly ego-centric consumers. A secondary objective is to dispel the myth that capturing market share on the Web is largely a technical innovation issue.

Managing a Web brand today requires significant knowledge about who its visitors are and what they want. Cutting-edge technologies and innovations can be a great strategy for winning a motley party of early adopters, but once the launch party is over a community takes shape and brand associations form. The marketing challenge for an established Web brand is similar to brands representing physical products like Coke or Audi, with the twist that revenue generation is often from a continuous stream of repeat visits (frequency) and time spent (attention). So that brings us to our first question …

What are the key drivers behind the success of today’s Web brands?

Three powerful trends are requiring successful branding efforts on the Web to go beyond awareness and into developing deep brand associations and personal connections:

> Specialization

A major trend among Web brands is how the exponential growth in Internet content has caused one-size-fits-all strategies to burst at the seams.

As an example from the offline world, we turn to specialization in the take-out coffee industry – which has enabled independent coffee shops to compete in niches that Starbucks under serves. Most people feared Starbucks would kill indies, but Slate Magazine reporter Taylor Clark writes that Starbucks “offers a very limited menu; you'll never see discounts or punch cards at Starbucks, nor will you see unique, localized fare.” As a result “over the five-year period from 2000 to 2005—long after Starbucks supposedly obliterated indie cafes—the number of mom and pops grew 40 percent, from 9,800 to nearly 14,000 coffeehouses.”

While Google and Yahoo are still the kings of broad search, many Web brands are capitalizing on unmet needs in targeted search by provided better search capabilities in niche categories, ‘mashed-up’ with e-commerce, GIS data, reader comments and related capabilities. Specialized search now exist in categories as diverse as movies, jobs, people and homes. Even the job search category has sub-categories for technical jobs and executive positions. Specialization is a lucrative strategy for e-tailors and information providers alike. Specialized need based sites like Netrition that serve the nutritional needs of body builders and Healthyback that serve people with back pains, compete effectively against general e-commerce Web brands like Amazon.com through specialization.

Key Take-Away: As a result of increased content and competition, brands need to focus on building strong associations ... but within well-defined and manageable categories ... versus trying to be all things to all people.

> Service lifestyle

The Internet is now a bastion for instant gratifiers to fulfill their needs for status through technological empowerment. Care to wonder why the iPhone is such a phenomenon? It is because the iPhone works for me, by empowering me to listen to my music, stay in touch with my friends, check my email, and serve an endless variety of my real-life needs by having access to the Web.

Jennifer Steinhauer illustrates in her article, “When the Joneses wear Jeans,” that “the true measure of upper class today is in the personal services indulged in.” Technology has arguably enabled the average person to keep pace with the upper class by supplanting personal services like travel agents with brands like Expedia and social coordinators with sites like eVite, FaceBook and mySpace.

Tapping into the needs of service lifestyles is a key tactic for attracting and keeping attention, which is easily monetized through advertising and other means. Social interaction between community members further serves to amplify attention by pulling members in and increasing visitation through asynchronous interactions.

Key Take-Away: Websites that generate revenues from advertising need to align their brands with the fulfillment of a social need for status. Examples include the needs for fun, success, fashion and love.

> Personalization

Tom O’Guinn, Marketing Professor at the Wisconsin School of Business and Executive Director for the Center for Brand and Product Management, asserts that consumers also desire to carve out a place for themselves in society. “One thing modernity brought with it was all kinds of identities, the ability for people to choose who you want to be, how you want to decorate yourself, what kind of lifestyle you want, and what you consumer cannot be separated from that.”

The Web has created an environment for anyone to achieve the top of Maslow’s hierarchy of needs. Being a highly customizable environment, it is a primary place for self-actualization. Brands that are able to target these needs are able to define a better fit with consumers and form long lasting brand identities.

Key Take-Away: Websites that personalize satisfy the increasing role of Web brands to fulfill personal egos and to define individual identities.

So what should Web brands do to best position themselves given these market trends? Check back here for the next installment, which will examine positioning opportunities for Web brands in an envolving market …

2008-02-14T15:30:00.016-06:00

BRAND PULSE … Luxury Brands in Transformation (2 of 4)

> Adam Needles, 2009 MBA Candidate, Center for Brand and Product Management

The first piece in this series introduced this topic and examined the drivers behind the current evolution – transformation – in the luxury brand market. It argued, in particular, that there are four, key drivers reshaping the current luxury brand environment. So what are the implications for luxury brand companies, and how should they respond? That brings us to our second strategic question …

What are the positioning opportunities and challenges for luxury brand companies in an evolving market?

> Bifurcation of the market category: What was once a singular luxury brand market is rapidly evolving into two, clearly-discernible macro customer segments, with very different demand and marketing characteristics. One is the lower-end and more income-elastic mass luxury segment – targeting the ‘working rich’ (primarily) and the middle class (secondarily) with aspirational and affordable luxury goods. The other is the higher-end, largely recession-proof and less income-elastic super luxury segment – targeting the ‘ultra rich’ and attempting to differentiate itself from anything that might be considered ‘mass market.’ Demand in these two segments is rapidly diverging. “Old luxury brands that depend on small numbers of very high ticket sales will continue to prosper, as they have in the US,” comments Mark Ritson in a recent piece in Marketing. He goes on to say, “When times are good, everybody loves luxury. But when the going gets tough, only the middle-classes get going. [Super luxury] consumers shrug, stick around and keep spending.”

In terms of segmentation, super luxury is also increasingly split – characterized on one hand by an old-world / ‘old-money’ orientation and on the other hand by an orientation toward the international, modernist ‘nouveau riche’ – reflecting the diversity of tastes and experiences in this segment (and the origins of their wealth and values).

In either case, super luxury is growing to new heights – focusing on customers who are not price sensitive in the least bit – meanwhile, mass luxury is finding itself struggling for direction.

> Increasingly-conservative consumer product preferences: There is an ongoing shift from a desire for the ‘exotic’ (and perhaps ostentatious) to that for products and fashions that are ‘classic’ and clean in design and colors. This is related, in part, to a subtle realization by many in the wealthier set that times of economic slowdown are not the time for overly-conspicuous consumption. "The rich are different than we are. But there comes a time that even the rich understand that there's some anxiety in the world," according to Peter Solomon, chairman of retail-focused investment bank Peter J. Solomon Co. in an article in The Wall Street Journal.

There is also a sense that, especially in the fashion arena, many designers are out of touch with the conservative and realistic sensibility of the times – especially in super luxury. Christina Binkly of The Wall Street Journal commented on this season’s business fashions from New York Fashion Week: “[A]ll too often, designers get so carried away with their art – this season it was ostrich, pheasant and peacock feathers in show after show – that they seem to forget the real women out there who want to buy clothes.” She urges simplicity and practicality – synced to an overall trend (noted in the previous post on this topic) that welcomes simplicity in design and that embraces social and environmental sustainability.

It should be noted that embracing classic and clean design and integrating a sense of conservative sustainability will also benefit brands as they grow their footprints in more-traditional parts of the world such as the Middle East.

> Emergence of experience and services as the driving component of what defines and differentiates luxury: The luxury brand market is returning to its roots. Whereas luxury goods retailers were once marked by superior customer experiences, global brand expansion by firms such as Gucci and Louis Vuitton have commoditized signature handbags, sold in unenthusiastic and ‘clinical’ environments. But there are indications that this trend is reversing itself.

Customers – especially those in the super-luxury segment – look to luxury brands for unique, non-replicable and high-quality services and experiences. They embrace retail as theater. (Even Louis Vuitton has responded with its newly-revamped Flagship stores over the past few years.) These customers also embrace new services as part of luxury brand-line extensions – such as luxury hotels by Bulgari and Armani and fractional vacation residences by hotel leaders such as The Ritz-Carlton Company.

The luxury brand of the future will be less about the products conferred and more about the relationship with and experience of the elite customer – in a brand community that compounds exclusive identity and excitement.

“For [today’s wealthy], interesting life experiences and sophisticated service matter more than pride of ownership,” notes Milton Pedraza, CEO of the Luxury Institute in New York in a BRANDWEEK Q&A.

So how have luxury brand companies responded to these positioning opportunities and threats? Who are the winners and losers, and over what horizon? Check back here for the next installment, which will dig into specific companies’ approach to a luxury brand market in transformation …

2008-02-13T23:14:00.008-06:00

India - The Final Chapter
During our time in Delhi, we had an opportunity to visit with Coca-Cola and Motorola. These visits served as two more great opportunities to learn about business in India - both the similarities across these large companies and the differences that provided new insights with each stop.

Before these visits, though, we had a chance to catch an early morning train on our first day to the city of Agra, home to the Taj Mahal. With its imposing size and pale blue sky backdrop set against the white marble, it's safe to say this stop qualified as one of the highlights of the trip. That same day we had an opportunity to visit the Agra Fort, and then it was on the bus for a (lengthy) commute back to the hotel.

With the end in sight, we spent our remaining time in Delhi visiting several other forts and temples, as well as touring the city by bus to the President's quarters and other Parliament buildings. A nearby set of shops and restaurants offered one last chance for souvenirs and food, and after 11 days in India, we headed home.

This would seem a fitting end to the accounts of this trip, but (if only for the sake of including the picture) it's worth mentioning that a medical emergency (not anyone in our group) did require a stop in the chilly Canadian town of Iqaluit. After two weeks in the Indian heat, it was quite a contrast to land in the glacier-filled surroundings of the Arctic Circle.
Eventually, either by plane or by bus, we all made it back to Madison where the start of a new semester awaited us. A heartfelt thank you to everyone who took time out of their days to meet with us - we learned so much, and you were all gracious hosts. At the very least, we've all learned something from this trip that we'll be able to take with us into our future jobs.

2008-02-13T23:00:00.002-06:00

First Years: Our Second Life as Professional Interviewees

The last two weeks have been busy for first-year students looking for summer internships. Between, after (and during) classes we've been polishing our star stories in preparation for a slew of on-campus interviews. Procter & Gamble, General Mills, Kraft, Johnson & Johnson, Nestle, ConAgra, Kimberly-Clark, Intuit, Land O'Lakes, Ecolab and SC Johnson (among others) have all been looking to put us to work for the summer. As the dust starts to settle, we start to learn where we'll be in a few short months. Congratulations to everyone for making it through these last few weeks and thanks to all our professors for understanding our absences - now I suppose it's time to catch up on all those missed classes...

2008-02-06T15:12:00.000-06:00

BRAND PULSE … Luxury Brands in Transformation (1 of 4)

> Adam Needles, 2009 MBA Candidate, Center for Brand and Product Management

Note: This is the first in what will become a regular and evolving serial feature on this blog. MBA students in the Center for Brand and Product Management at the Wisconsin School of Business will present timely perspectives on issues facing the brand world. These topics will be delivered in installments – providing opportunities to comment and provide input into the overall analysis. Our hope is that the resulting discussion threads will advance the brand community’s collective thinking about some of the most important market issues of the day.

Trouble in luxury land has finally hit the front pages.

Recent headlines have included BRANDWEEK proclaiming “‘Mass affluents’ retreat en masse” and The Wall Street Journal editorializing “High-end sales are slowing down as ‘even the rich understand there’s some anxiety in the world.’” But do these headlines over-simplify the issue? Isn’t there more to the story than just a quarterly hiccup in demand?

In fact, the luxury brand market is rapidly evolving – transforming. Key drivers are re-shaping the luxury-brand category. They include a cooling North American economy (and it’s impact on the middle-class consumer), the growing cache of social and environmental awareness, increasing stratification between what will be termed the ‘working rich’ (with incomes between $100K and $1M per year) and the ‘ultra rich’ (with incomes greater than $1M per year) and a unifying, technology-driven ethic of simplicity in design. The end result is increasingly looking very different than today’s luxury environment.

Meanwhile, the concept of affordable luxury – after saturating the market with silver baubles, colorful ‘it’ handbags for every occasion and celebrity-branded fragrances – is losing much of its momentum. Milton Pedraza, CEO of the Luxury Institute in New York, argues in a BRANDWEEK Q&A: “Affordable luxury is a contradiction in terms. Those luxury brands racing to transform themselves into affordable luxury by making deals with mass retailers have forgotten that their business model is not just about stamping out more products.”

It is clear that to continue to be successful in the current and future market environment, luxury brand companies must shift their strategies. But how? And in response to what trends? This brings us to our first question …

What are the major marketplace drivers behind this evolution in the luxury brand market?

While newspapers are trumpeting a fall-off in demand for luxury goods, the recent, below-estimate financial results for luxury brand companies do not tell the whole story. Yes … these companies are struggling to maintain near-term quarterly growth in line with projections; however, something more subtle – but clearly market-shattering – is occurring.

There is a fundamental re-orientation of the luxury brand market that is occurring, and some of the key drivers that are emerging include:

> Cooling North American economy (and it’s impact on the middle-class consumer): Between 1996 and 2006, the luxury market doubled to $234B worldwide, according to Bain & Co. The major driver of this market expansion was the marketing of ‘affordable’ luxury to customers that had never purchased luxury goods before – so-called ‘mass’ luxury. And many of these new customers were in North America and, specifically, in the middle class. The products marketed to them were sold at lower price points, lower margins and lower quality than luxury goods companies had historically done – leading to the cultivation of an entirely new customer-goods segment outside the ‘upper crust’ of traditional wealth.

But nearly 18 months of a shaky economy in the US is strongly affecting demand from this segment. “... [T]he new luxury party is over,” proclaimed Mark Ritson in a recent piece in Marketing. “The middle-class consumer is under financial pressure and the first sacrifices are all the accessible luxury purchases that they made when times were good.” Ritson notes that many luxury goods companies, such as Coach and Tiffany, are experiencing very-different levels of success with their mass luxury customers as compared to traditional luxury customers. “The only bright spot [in its recent earnings announcement] for Coach was a 13% increase in sales of their [$400+] handbags,” noted Ritson. This was further echoed by Tiffany’s CEO, Michael J. Kowalski, in a recent interview with The New York Times, stating “The greatest amount of weakness was in the mid-tier luxury consumer.”

To respond to a cooling North American economy, companies in the luxury market must once again refocus their marketing portfolios on traditional, lower-risk, higher-margin customers, whose patronage has unconditionally funded luxury in both good times and in bad (a segment that will be defined in the next installment of this series as the ‘super luxury’ segment).

> Growing cache of social and environmental awareness: Led by standard bearers such as actor/activist Brad Pitt, entertainment-mogul Oprah Winfrey, Microsoft-founder Bill Gates and U2’s Bono, social and environmental awareness has caught on with luxury-goods customers.

ADWEEK Editor-at-large Mark Dolliver commented on this in a recent piece, titled “Resenting the Rich”:

Conspicuous consumption has been supplemented by conspicuously virtuous consumption, as the rich flaunt their devotion to the planet — say, by spending more on solar panels for a mansion than you spent on your entire house. Along those lines, a study by Scarborough Research "finds that almost half (42 percent) of the households in the U.S. that own or lease at least one hybrid vehicle have an annual income of $100,000 or more." The non-rich could mock the rich for the old style of ostentation. Because it does have real social utility, conspicuously virtuous consumption is harder to criticize — which makes it even more irksome.

> Increasing stratification between the working rich and the ultra rich: Much of the growth in patronage of the luxury market over the past decade is attributable to a segment often referred to as the ‘mass affluents’ or the working rich – sometimes characterized as the ‘upper’ middle class. “That broader audience … defined by having investable assets between $100,000 and $1 million, has emerged as 21st century marketers' demographic darlings,” commented Eric Newman in a recent BRANDWEEK piece. Yet this segment has very different characteristics from that of traditional wealth, a.k.a., the ultra rich. The working rich have often built their own fortunes as artists, entrepreneurs or professionals, and – for that reason – they are much more sensitive to protecting their own capital base; thus, in times of economic downturn, they are much more conscious of their spending habits and much more likely to value price versus quality.

> Unifying, technology-driven ethic of simplicity in design: Less is more – whether it is the home page of Google or the visage of an Apple iPod – and this concept has become infused into the consciousness of a society overwhelmed with media and information. As a result, luxury is increasingly defined by simple, clean lines and uncluttered execution. Nowhere is this more apparent than in the global makeover of The Ritz-Carlton brand, which is renovating nearly all of its properties to ascribe to more modern furnishings and displays.

So what should luxury brand companies do to ‘right’ their strategies? Check back here for the next installment, which will examine positioning opportunities in this evolving luxury brand market …

2008-02-03T11:40:00.000-06:00

"BEST IN MARKETING"

The Financial Times just released MBA rankings, including schools which they deemed to be in "a league of their own" in certain categories. Scrolling down the list reveals a "best in marketing" category where UW-Madison is ranked #7 in the nation, right up there with schools like Kellogg, Kelley, Ross and Wharton - all institutions that seem to be top-of-mind when thinking about marketing.
This is awesome and much-deserved publicity for our program and confirms what all of us who are here already know - that when we leave with our degree, it will be as valuable as any other in the country.

2008-01-31T08:36:00.000-06:00

India, The Trilogy

We got an early start on Thursday, as we boarded our bus to head to Johnson & Johnson where we were able to tour their manufacturing plant. Unfortunately, no pictures were allowed inside but we got to see how baby oil, powder and band-aids are packaged and how they manage their inventory. After a fantastic lunch compliments of J&J it was back to the hotel for one last bit of free time in Mumbai before meeting up for dinner and drinks with the other MBA group that was also touring India. They had come from Delhi (where we were headed) and were just getting to Mumbai (where we had been for a week), so lots of stories were swapped about our experiences to that point. A good time was had by all.

Friday morning we bid adieu to the hotel, but before heading to the airport we made a stop at General Mills. After a short presentation, we went out to see a very "traditional" grocery store (at least traditional in the American sense) and then we visited a small mom & pop storefront that is more typical in India - about 20 square feet containing up to 4,000 SKUs. Finally, we got to sit in on some ethnographic research as we were invited into people's homes for a session General Mills had prepared, which included the preparation of the traditional flatbreat, roti. (Some of us had grown quite fond of both roti and it's close relative, naan.)

After this fantastic experience it was off to the airport where got to hurry up and wait for our flight to Delhi.
Of course, what better place for pause in the blog than during this two-hour flight north, where the second half of our trip anxiously awaits us.

2008-01-29T19:48:00.001-06:00

India, Part Deux
We followed up Monday's visit to P&G with a meeting with Unilever on Tuesday morning. They talked with us about a great program they're running to promote handwashing with soap to improve health.

After our morning meeting, it was off to visit Banganga Tank, where legend says the Hindu god Ram shot an arrow into the ground and created a tributary from the Ganges river.

Other sightseeing stops for the day included the beautifully decorated Jain and Babulnath Temples, and a visit to the Hare Krishna Temple as well, where we had the opportunity to do some chanting.

Wednesday greeted us with a bus ride to Publicis Ambience ad agency, where we got an agency's take on business in India. After several large CPG visits, it was nice to see things through a different lens.
After making the trip back to the city center, we spent the afternoon seeing Mumbai on foot and capped off the day with another great dinner.

With only two days left in Mumbai...we'll save that recap for the next installment.

2008-01-21T09:40:00.000-06:00

India, Part 1
In between semesters 20-some Brand students ventured to the other side of the globe to see how some big companies do business in India. Along the way we all had the opportunity to sample the local culture and do plenty of sightseeing. There's a lot to see and do in two weeks, so for the sake of moderation we'll break the trip into manageable chunks - so check back over the next couple days for more post-trip blogging. Onto the trip...

We arrived in Mumbai bright and early and had the first day to ourselves for some much needed recovery after a long day of travel. Some people hit the ground running while others chose to enjoy the very un-Madison-like weather and lounge by the pool. After dinner at a local hot spot, some called it a night while the more intrepid travelers continued their exploration of the city.

Sunday included a trip to Elephanta Island to explore caves adorned with ancient Hindu carvings, the Hanging Gardens, and Dhobi Ghats - where laundry is done by hand for thousands of residents. Our day concluded with a visit to Ghandi's house, which has since been turned into a museum of sorts.

After a day of sightseeing, Monday brought our first company visit. We were off to P&G where we got our first glimpse into the big-picture landscape of India. A country described as Australia surrounded by Mexico, wrapped up in Africa poses many unique business challenges, and with thousands of new members joining the consuming class daily, we were exposed to a unique way of thinking about marketing. After another fantastic dinner, it was about time to call it a day.

With three days in the books, this seems like a good place to end Part 1. Check back soon for more!

2007-11-18T01:26:00.000-06:00

(The MBA process is so passe...Nowadays 2nd rate rappers are getting brand management gigs)

He's Gone by Puffy, Diddy and Now ... Brand Manager (AdAge, 10/27)

Meet Diddy, brand marketer.

The multimedia mogul and CEO of Bad Boy Entertainment added another position to his resume today with his announcement to take on all brand-management decisions for Diageo’s Ciroc vodka, including marketing, advertising, public relations, product placement and events. The role is “too big for one title,” he told Ad Age, but, he added, “I’ll be taking the lead on all the things traditionally a CMO or a brand manager would do, just doing them my way. Marketing in a way that is truly unique.”

Diddy

Diddy’s goal is to turn Ciroc into the top luxury vodka brand, much in the same way that he has indirectly helped put Courvoisier, Patron and Cristal at the top of their respective categories through mentions in hip-hop songs and product placement in music videos. Part of this strategy: declaring Ciroc the “official” vodka for New Year’s Eve.

“When the ball drops, if you’re not drinking Ciroc vodka, you’re not drinking New Year’s Eve the right way,” he told reporters at a press conference today in New York.

It’s a lofty goal to essentially take a luxury vodka from scratch and build it up to become the top beverage in its category by year’s end, but one worth pursuing for Diddy, given his previous endeavors. His music label, Bad Boy, has issued recent No. 1 Billboard albums for both himself (2006’s “Press Play”) and “Making the Band” contestants Danity Kane, while his clothing line Sean John has surpassed Russell Simmons’ Phat Farm as the top-selling brand in urban clothing. And his dual line of men’s and women’s fragrances for women, Unforgivable, recently outsold other celebrity scents from Jennifer Lopez and Sarah Jessica Parker.

“I’d just like to take a moment to apologize to those ladies and hope they still speak to me on the red carpet,” he joked during the press conference.

Diddy’s announcement represents the latest in rappers trying their hand at brand building in the beverage category. 50 Cent was an early investor in Glaceau’s Vitamin Water before it was acquired by Coca-Cola for $4.1 billion in May, leaving the rapper with as much as $400 million to cash out. Jay-Z, meanwhile, took an even more hands-on approach to spirits marketing as co-brand director of Anheuser-Busch’s Bud Select, helping the brand reach the urban market and endorsing the beer in its ad campaigns. But even his efforts couldn’t help the brand gain market share, as sales fell 20% from 2006 earlier this year.

Diddy and Diageo project Ciroc’s potential value to be worth $100 million for Diddy. But, he was quick to point out to reporters that “you won’t get that for a long, long time. That’s just a figure to get you guys excited.” Shortly after making his announcement, Diddy answered a few questions about his new gig and the challenges he’s been able to overcome in viral marketing.

Ad Age: You just endeared yourself to thousands of marketers today by taking on this unique role in brand marketing with Diageo. How will you define success by today’s current standards of marketing?

Diddy: Everybody has their marketing lingo, but I’m about results. I’m always about having the No. 1 shows, albums, fragrances and clothing lines. I think this is a huge testament to the marketing power we possess [at Bad Boy].

Everybody has dreams. As a recording artist, my dream was to play Madison Square Garden. I’ve always been able to attract the bottom line, so I saw an opportunity to do this as a brand builder.

Ad Age: You already have a special Ciroc mixed drink in your Justin’s restaurants. What was it about the vodka that made you want to take it on from a larger perspective?

Diddy: There’s no vodka out there that spoke my language. It was the same with my records and with Sean John. Nobody was speaking to the fashion community like I was. I didn’t think there was a vodka whose marketing spoke to my lifestyle, that made me feel like I want to feel. I’ve branded myself as the king of celebration, and that’s what this alliance is about. It’s not a glorified endorsement deal, it’s a hands-on, day-to-day investment. Diageo is No. 1 in the world spirits companies, so I look forward to having a lot of fun with them. It’s also significant for them to see things my way and break away from the industry to reach out to African Americans. It’s not an industry filled with color, so it was good for them to diversify themselves.

Ad Age: Last year you spoke with us about your viral video channels on MySpace and YouTube for “Press Play” and partnership with Burger King. And just recently you appeared on “Oprah” with the YouTube guys to talk about your successes in viral marketing. What have you learned about it and the challenges it presents in breaking through the clutter?

Diddy: I have my own formula and learned how to engage people and inform them. People say content is king, but only when it’s content people are interested in. I can’t make 1 million people view nothing unless it’s tagged to something they like. That’s the only way people are going to pay attention to your content.

By Andrew Hampp

2007-11-11T17:09:00.000-06:00

Brand Blog of the Week: Brand Autopsy

The Brand Autopsy blog is the brainchild of John Moore, the former National Director of Marketing for Whole Foods Market, and author of "Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture." The view on branding from Moore's lens is insightful and humorous, and I highly recommend anyone interested in brand strategy to take a peek.

Examples of recent posts (Both of these posts touch on some of the Brand positioning material we've been reviewing in our Brand Strategy class taught by Prof. Tom O'Guinn):

Buckley's: The good Taste of bad taste

The Marketing Courtship Process

Enjoy.................

2007-11-11T16:48:00.000-06:00

Wisconsin School of Business Featured on Businessweek.com

Businessweek.com's "Heard on Campus" article (11/8) this week details the Wisconsin Naming Partnership, and why this approach to naming rights may be mimiced going forward.

Also, 1st year Operations & Technology Management student Sarah Baranowski has a just issued the 1st installment of her Businessweek MBA Journal .

2007-11-08T15:21:00.000-06:00

Road Trip!
Kimberly-Clark graciously agreed to host us for an overnight visit to Neenah, WI last week. We loaded our bus in Madison and, after one Zoolander viewing, arrived at Kimberly-Clark's Innovation Design Studio. We had heard all about this new space, and it certainly lived up to its billing. Configured with virtual reality and a mock-up space that can be converted to mimic stores like Target or Kroger (right down to the in-store Starbucks or Pharmacy), it was quite an impressive tour. After a great dinner we headed back to the hotel and some found the energy after a long day to sample the nightlife.
The next morning, we headed over to K-C and took part in sessions that included "Insights to Product Innovation," "Trip Missions," "Consumer Targeting," "Integrated Marketing" and "Millenial Moms - Huggies Advertising" (not to mention a great lunch in the middle). At the end of the day, it was back on the bus and off to Madison to enjoy our weekends.
Overall, it was a very informative trip - another experience with information we can all take with us and adapt to whatever jobs we take after we're done here. Thanks to K-C for being such great hosts!

2007-11-04T23:08:00.000-06:00

It's Worth 1,000 Words
That is what they say about a picture, so when it comes to CBPM'ers celebrating Halloween, we'll let them do the talking:

2007-11-04T22:43:00.000-06:00

Advisory Board Rolls Into Town

Board members took time out of their busy lives to get together in Madison a couple weeks ago. It was a chance for everyone to get to know the board members a little better, and for second years to present on their summer internship experiences.
We all started the weekend off right with a fantastic cocktail hour and dinner at Ocean Grill, beginning with a get-to-know you "activity" that taught us some interesting facts about everyone in attendance - I learned that first-year Jeffrey delivered groceries to mom and pop shops on his tricycle.

After a great evening, we reconvened the following morning to hear about summer internships at Nestle, General Mills, Miller, Johnson & Johnson, Kraft Foods, SC Johnson, Intuit, Procter and Gamble, Colgate, Kimberly-Clark and Sun...whew.
The feedback from Board members was that the presentations were great as were their summer responsibilities. While these were the first presentations this blogger has seen, it's clear that the bar continues to be raised.

2007-10-30T22:58:00.000-05:00

Class of 2036...?

Terry Goins and his wife Christine welcomed Adam Goins into the world on Thursday, October 18 at 5:45p. He weighed in at 8lbs. 8 oz. and measured all of 21 in.
While he may struggle with a Wisconsin/Marquette college identity crisis (Mom and Dad both completed their undergrad at Marquette), at least he was respectful of Dad's exam schedule, kindly waiting until a night when there wasn't much going on.

2007-10-29T15:22:00.000-05:00

Q:I thought I saw this post further down...what's it doing up here?
A:If the blogger were to, hypothetically, delete an old post then posting it again would move it up here

Let's Recap...
As the golf outing (and the nice weather that came with it) fade into our memories, we keep pushing forward with educational and - dare I say - fun Friday events.
First, all first-years had the opportunity to spend a day with Advisory Board member Tara Khoury from North American Kao Brands and Dick Satterfield, Managing Partner of Satterfield Associates, Inc. With years of experience in marketing and branding, they shared some great insights and walked us through our resumes. I thought it was great that, after already putting my resume through the ringer, they were still able to offer some additional suggestions for improvement. After lunch, we finished our day with some quick mock interviews. I will say it's a little awkward being interviewed in front of your peers, but very beneficial.

We followed this with an engaging presentation last Friday by Johnson & Johnson Senior Vice President of Global Design and Design Strategy, Chris Hacker. Chris focused his presentation on sustainability and it was great to hear what he had to say about the challenges a company like J&J faces, and what they're doing to tackle them.
At the end of the day, just two more examples of the kinds of awesome opportunities afforded all of us in the program here at UW-Madison.

2007-10-29T14:53:00.000-05:00

Wisconsin School of Business Special Announcement

Homecoming and Halloween weren't the only things of note on campus this past weekend. On Saturday Dean Knetter announced before a group of 1000 supporters that 13 donors - including the Center's founders Signe Ostby and Scott Cook - had come together to form the "Wisconsin Naming Partnership." This partnership is backed by $85 million in donations and will preserve the name of the school for the next 20 years. Wisconsin is the first business school in the country to receive a naming gift of this sort, serving to uphold the tradition and greatly enhance the value of the school to students, the campus and the state. To read more about this generous gift click here or visit www.bus.wisc.edu.

2007-10-07T23:10:00.000-05:00

A Great Day for Golf
The fourth annual School of Business Golf Outing gave first and second year students an opportunity to partake in some friendly competition and spend the day on the links. With many excellent companies present and temperatures in the 80s it was clear everyone had a great time. The day ended with a great dinner and some door prizes for the winning team (10 under in case you're measuring up the competition for next year). A huge thanks also goes out to the organizers and sponsors of this event, who helped make possible the $10,000 donation to the Ronald McDonald House in Madison.

2007-10-04T18:58:00.000-05:00

CHECK US OUT!!!!

The Center for Brand & Product Management was featured as one of best places to learn the client/agency business in a recent issue of AdAge's "Talent Works" career guide (http://adage.com/talentworks/careerguide/profiles/details.php?pid=30)

2007-10-01T16:59:00.000-05:00

Intuit's Convince to Buy Session

Intuit Chairman and CBPM founder Scott Cook opened up our applied learning event schedule, by presenting a case study on QuickBooks Premier.

The case study examined how the Quickbooks Premier product management and engineering teams used customer driven feedback in redesigning a product targeted towards accountants. By allowing accounting professionals multiple opportunities to tweak the mechanics of the software offering, Intuit was able to drive substantial growth out of the product.

As a follow-up, CBPMers were given a sample exercise that allowed us to put customer driven design into practice, and we were able to share some our thoughts with Scott after the case.

2007-09-23T23:05:00.000-05:00

Full Swing...

Our two week MBA Experience seems but a distant memory at this point. With classes (and review sessions) becoming the daily routine, first year students are continuing to transition further and further from our 'old lives', as we become more comfortable in our role as students (again). Madison has a lot to offer this time of year - everything from Football to Farmer's Markets - and many of us have learned to appreciate the importance of an oft-updated planner. As classes continue on, many Brand students are looking forward to upcoming visits in the coming weeks from prospective employers, as well as other less-scholarly endeavors (like flag football and other intramural sports). Speaking for myself, I will say it certainly is a good time to be a Badger.

2007-09-14T16:01:00.000-05:00

The Gauntlet Has Been Thrown Down!!

As I was sitting in a workshop at the National Black MBA Association's Annual Conference in Orlando yesterday, I had the chance to brag on brand students from The Wisconsin MBA. I assured my colleagues at the table that my schoolmates would finish strong in P&G's invitation for our students to compete in their 'Buzz for Braun Case Competition'. Who else could better take on a brand management case from P&G than the students within the Center of Brand & Product Management? Needless to say, some of my colleagues from other schools invited to compete in the competition had bouts of delusion and claimed Wisconsin could only place in the top three if the subjects were beer and cheese. One had the guts to say that we were a good regional school in Real Estate, but marketing should be left to "the big dogs". So this is an open letter to the current students in the Center - Allow this to be a public stepping stone to show the marketing world and our counterparts at other schools who we are and what we are made of. I congratulate you now for stepping up to the challenge of this case competition and fully support your efforts. As Jan Heide taught me and my classmates as first years in Marketing Management - "Kick ass and leave a footprint!"

http://money.cnn.com/news/newsfeeds/articles/prnewswire/NYM10910092007-1.htm

Braun Challenges Business School Talent To 'Create A Buzz' - Case study competition offers MBA students face time with P&G executives and the chance to win $40,000

September 10, 2007: 11:14 AM EST

BOSTON, Sept. 10 /PRNewswire/ -- Braun is challenging the country's brightest business school students to create a buzz for the billion dollar brand. Known throughout the world for its superbly designed and engineered electric shavers and household products, Braun is seeking marketing plans for its electric shaver business from students currently enrolled in some of the nation's highest-ranked business schools. The winning marketing plan will be awarded $40,000 - to help toward business school tuition.

The "Create a Buzz for Braun" competition is open to students enrolled in MBA programs at the University of Chicago, University of Pennsylvania, Harvard University, University of Michigan, Stanford University, Massachusetts Institute of Technology, University of California Berkeley, Duke University, Columbia University, Dartmouth College, University of Notre Dame, Cornell University, Indiana University and the University of Wisconsin-Madison. The competition will provide an invaluable opportunity for three finalists to present their marketing plans in person to Jim Stengel, Chief Marketing Officer, Procter & Gamble, Bracken Darrell, Global President, Braun, and a professor of marketing from a non-participating university, at P&G's headquarters in Cincinnati.

"P&G is a big recruiter of MBAs and a big believer in the power of ideas from outside the company and I am personally excited to hear some provocative ideas from this new generation of business leaders," said Bracken Darrell, Global President, Braun. "This challenge will be great for those who choose to participate. It provides a good dose of real world experience and a chance to 'win something'."

Registration information, contest details and official rules and regulations are available on www.buzzforbraun.com.

2007-09-12T12:44:00.000-05:00

Ironwoman

This past weekend first year brand student Laura Hufschmidt competed in Ironman Wisconsin. For those unaware, the Ironman is a grueling 2.4 mile swim, followed by a 112 mile bike ride, and concludes with a full marathon. After six months of training and hundreds of hours in the pool, on the bike, and in her running shoes, Laura's goals were to finish and enjoy herself. With a support team of students from the Center cheering her on throughout the day, Laura finished her race where she started - at the Monona Terrace, 13 1/2 hours after starting her swim. While this was Laura's first Ironman, perhaps the more impressive feat was getting herself to the Accounting review session the following day. Congratulations Laura - job well done!

2007-09-06T22:13:00.000-05:00

The New Complete Marketer

"The New Complete Marketer," an article in Booz Allen Hamilton's Strategy+Business newsletter, profiles the ways in which industry leading CMO's are driving growth within their organizations.

The primary themes include:

Put the consumer at the heart of marketing
Make marketing accountable
Embrace the challenges of new media
Recognize the new organizational imperative
Live a new agency paradigm
Remain adaptable

Enjoy......

http://www.strategy-business.com/media/file/sb48_07308.pdf

2007-09-02T12:24:00.000-05:00

Will She, Won't She?

An insightful article regarding the state of P&G today (with great quotes from our own Dick Antoine)....

http://www.economist.com/business/displaystory.cfm?story_id=9619074

2007-08-26T23:02:00.000-05:00

When CEOs Aren't Leaders

Below is a great article for all future CEOs or any organizational "leader" to read. Let's remember this as we grow in our respective organizations and careers.

http://www.businessweek.com/magazine/content/
07_36/b4048088.htm?chan=search

2007-08-15T00:06:00.001-05:00

Thomas O'Guinn on Brand Building

CBPM Executive Director, Thomas O'Guinn's extensive work on "brand communities" has made him a popular choice for commentary on diverse issues in brand building.

Professor O'Guinn was quoted in a recent USA Today article on the introduction of Virgin America Airlines ( "Branson flies under the radar as Virgin America takes off")

The downside of such a highly personalized approach to promotion and brand-building, says University of Wisconsin marketing expert Thomas O'Guinn, is that it leaves no room for failure, either by the individual or by the companies associated with the individual.

This was proceeded by a recent AdAge article ("Create a Stage that Attracts Your Very Own Brand Posse"), in which Prof. O'Guinn delves into the idea of retail brand communities:

Many retailers think the only thing worth listening to is the sound of ringing cash registers. But as Tom O'Guinn, executive director of the Center for Brand and Product Management at the University of Wisconsin-Madison's School of Business, points out, don't forget the connections consumers have with each other. It's the bonds created between Starbucks drinkers, iPhone owners and Abercrombie shoppers that help create buzz, vibe and community. While ordinary consumers might drop you for something that's cheaper, better styled or just easier to get, they'll think twice if eliminating your product also means losing friends.

2007-06-29T09:49:00.000-05:00

Congratulations to the Brides of Summer 2007!

Cheers to Kirsten and Leo Kowalyk who were married in Detroit Rock City, MI on June 2 2007! The couple will be starting their lives as one in Madison as Kirsten begins her Brand Management career at Oscar Mayer.

Shorty thereafter on June 16th, Erin and Alan McMillan became man and wife at a ceremony in Sun Prairie, WI, followed by a Mad-town reception at the Overture Center. The couple will begin their lives as "east coasters" living in Baltimore, Maryland as Erin begins work with Cover Girl!

2007-06-07T23:46:00.001-05:00

And Done.

The fastest two years I've ever experienced have concluded and now I see my closest friends scattering across the country. It's sad to know that we won't be together everyday, but I am so excited to see what amazing things each of you will accomplish. I see many future covers of BrandWeek looming! Congratulations, Class of 2007.

This proves it. You rock.

Charles Rawls--Bank of America, South Carolina
Jennifer Becker--ConAgra, Minnesota
Will Wait--Target, Minnesota
David Nuelle--GE, Florida
Jennifer Dombkowski--Hartz Mountain Industries, New Jersey
Kurt Kober--Clorox, California
Ali Brewer--General Mills, Minnesota
Todd Tourand--Abbot Laboratories, Ohio
Erin Syth--Proctor & Gamble, Maryland
Kirsten Leppert--Oscar Mayer, Wisconsin
Christina Zwicky--General Mills, Minnesota

2007-05-29T17:05:00.001-05:00

Congrats Class of 2007!

Good luck everyone!

2007-05-03T11:44:00.000-05:00

CBPM first years will be spread throughout the country this summer. Our students were offered internships at a diverse set of companies including Kimberly Clark, Procter & Gamble, Sun Microsystems, and Kraft Foods. From having a hot dog and beer at the ballpark to brushing your teeth and doing your taxes at home, the brand center has an assignment to cover it.

2007-04-09T20:23:00.000-05:00

Product/Brand Management: Money Magazine's 5th Best Job

Money Magazine recently released it's ranking on the 50 best jobs in America, with Brand Managers ranking in the top 5 (and #1 for the "Young and Restless"). Positions such as Investment Specialist, Corporate Recruiter and Marketing Specialist were include in the list.

http://money.cnn.com/galleries/2007/moneymag/0703/gallery.bestjobs_young.moneymag
-----------------------------------------------------------------------
A top 5 pick
Product/Brand Manager
You won't be senior management, but you will have control over developing, managing and marketing an assigned product line. In other words, you get to exercise business savvy and creativity. A sizable salary and launching pad to other high-level marketing jobs are part of the package.
Median Pay: $90,100

Salary
Total compensation(includes bonus)
Most people make:90% in this job make more than:
$63,000
$65,300
Top earners:10% in this job make more than:
$108,600
$119,600

10-year Job Growth: 21%

Growth in Jobs
39,249
Total openings
74,026

Career Description
Manages, develops, and implements product marketing activities to maximize sales of an assigned product line. Familiar with a variety of the field's concepts, practices, and procedures. Relies on extensive experience and judgment to plan and accomplish goals. Performs a variety of tasks. May lead and direct the work of others. A wide degree of creativity and latitude is expected. Typically reports to a senior manager.

Education/Experience
May require a bachelor's degree and at least 4 years of experience in the field.

2007-04-08T21:52:00.000-05:00

BEST SPRING BREAK EVER!!!!
Given that this was my last spring break as a student we went all out and travelled to Hawaii. Amy and I visited 3 islands: Kauai, Big Island (Volcanoes), and Oahu. The weather was perfect, the fruity drinks were delicious, and the scenery was spectacular! I'm going to miss being a student :)

2007-03-25T22:09:00.000-05:00

Spring 2007 Board Meeting Dinner

Spring 2007 Board Meeting Dinner

Well, the Spring 2007 Board Meeting was a success. Pictures within the link above show some of the fun times we had at th Nakoma Country Club for dinner on Thursday. Take a look...

CWR3

2007-03-22T12:28:00.000-05:00

CPBM Visits J. Walter Thompson

The CBPM as well as the A.C. Nielsen Center for Marketing Research spent a day at the Chicago offices of the J. Walter Thompson advertising agency. JWT's client list includes several companies in the CPG arena including Madison's own Kraft Foods (Oscar Mayer Division), as well as Diaego, Unilever, and Kellogg.

At JWT we got to see how the role of the agency is evolving from being spot producers, to offering an integrated medley of value added services. Some of the idea generation on display included - an interactive website for Oscar Mayer kids, a U.S. Marines campaign housed on Myspace.com, and designs behind the right handed ring idea for DeBeers.

2007-03-19T17:49:00.000-05:00

Wisconsin MBAs Attend Cakebread U!

During the week of March 12, eleven Wisconsin MBA students including CBPM students Kirsten Leppert, Katy McMurray, Terry Thomas and Kurt Kober participated in Cakebread University hosted by Jack and Dolores Cakebread in Rutherford, CA (Napa Valley). The three-day crash course encompassed all aspects of the business of wine including; viticulture, sustainability, marketing, supply chain, finance and category dynamics.

Activities included a mini case competition (marketing and creation of a blend), food and wine pairing sessions and networking with leading industry executives. Special thanks to Jack, Dolores and their team! It was an amazing event that Wisconsin MBAs will attend for years to come.

(Jack and Dolores with Wisconsin MBAs at Cakebread U)

2007-03-18T19:05:00.000-05:00

Women's Hockey Repeats!

Ok. So Men's basketball didn't even come close to my bracket expectations today. Fortunately, though, WI redeemed itself as the Badger Women's Hockey team repeated as NCAA champions, winning 4-1 over Minnesota Duluth!
Ali Brewer was invited to Lake Placid to be part of the color commentary for the semi finals and finals. Apparently winning the Patty Kazmaier Award in 2000 puts you in high demand!
Congratulations, Ali, and Go Badgers!

2007-01-30T12:25:00.000-06:00

2007 GMN Challenge Photos

The GMN Marketing Challenge is an annual case competiton where 6 teams give 25 minute presentations to real marketing professionals. This years challenge was judged by representatives from Conagra, Kraft Foods, Guidant Abbott, and Guidant Boston Scientific.

The winning team (pictured above) featured Jen Schultz, Lindsay Klahn, Cyrille Labourel, and Jill Kurzawa.

Take a look at the photo album:
http://picasaweb.google.ru/andreicer/MarketingChallenge2007

2007-01-30T11:25:00.000-06:00

A Blast from the Past (Well, October 2006)

Here we have St. Louis native Moira Adams, and Detroit's own John McMahon entering Busch Stadium for game 3 of the 2006 World Series. As we now know, the underdog Cardinals went on to defeat the Tigers in 5 games. This was the second time that these teams have faced each other in the series ('68) with the Cardinals coming up victorious on both occasions.

This was the 10th World Series victory in the history of the Cardinals franchise, second only to:

The 26 time World Champions and favorites for the 2007 title.

2007-01-30T11:19:00.000-06:00

Badgers on "The Great Wall"

Here's a quick YouTube clip of some of the Brand Center students exploring the Great Wall of China.

Enjoy......

2007-01-27T18:36:00.000-06:00

Chinese Acrobat Show

During our tour we were treated to a dynamic acrobat show in Beijing. Here's a clip of some of the stylings of these incredible athletes. Click on the image in order to view the video, which concludes with my poor attempt at replicating some our their moves.

2007-01-17T01:55:00.000-06:00

The Center for Brand and Product management went on a tour of China from January 4-16, touring the facilities of companies like Abbott, Procter & Gamble, and SC Johnson. Click on the photo to view the full photoset from the trip. Brand students - remember to add your photos to the pool!

2007-01-02T15:59:00.000-06:00

Well, Gang... I am back at it again. I am sitting, patiently waiting to return to Madison, in Columbia Metropolitan Airport (SC). Wow, an airport that offers free internet in the concourses! What a forward looking thought. Too bad many of the airports on the "Road Show" did not offer the same.

Anyhow, I am not here to brag about the airports here in SC, I wanted to update you all on the results of the "Road Show". After visiting 6 cities in two weeks and not sleeping in my overpriced Madison Capitol Square Pad - I finally made a decision. Then as I was about to accept an offer, my gut told me to do a 180 and head for warmer weather. So it is official - I will be an associate at Bank of America in their Charlotte, NC headquarters!!!!!!! So, when you see billboards like the one below, you can know that a Marketing Mastermind like myself is behind it. I am also adding a picture of the Queen City's beautiful skyline with the Bank of America Corporate Complex taking center stage.

So, I will be "Back in the Kackalack" after graduation (It's a Red Bank Thing...) It was such a tough decision. One which I did not take lightly. I won't bore you with the details on the blog here, but if you want to hear about it, just drop me a line.

Thanks everyone for you emails and well wishes. Keep the fan mail coming - it helps my ego.

On Wisconsin!

CWR3

2006-12-21T23:10:00.000-06:00

Happy Holidays everyone...congrats to the 1st years for surviving the "Gauntlet" and congrats to the 2nd years for being 75% done with your MBA! Only 14 days to China...see you all on Jan. 4th!

2006-12-16T11:31:00.000-06:00

MBA KickBall on Lake Monona

The late fall competition was taken by the 1st years........

2006-12-16T11:05:00.000-06:00

Brand Center Students Giving Back

After arranging a successful fundraiser earlier in the month, the trio of Solymar Berrios, Jeremy Dewulf (far left and right) and Jara Kern (Arts Administration) present a check to Sentry Foods for the Second Harvest of Wisconsin's Thanksgiving food drive.

2006-12-12T22:11:00.000-06:00

Somewhere between DCF's and the 4P's...
...We won Intramural Team Tennis!

Congratulations to the Grainger Hall intramural tennis team for winning the championship for the 2nd year in a row. It was tough beating all of those 19 year old kids, but some old person had to do it. (Left to Right: Eugene Yang, Christina Zwicky, Solymar Berrios, Lindsay Klahn, Jim Olson, Patrick Hammes, Dhruv Goyal--missing Todd Wendrick, though).