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When Hype Gets in the Way

                        

At Retail’s Big Show 2010, presented by the National Retail Federation in New York City earlier this week, one booth that drew attention belonged to a company called Swagg. Swagg, owned by Qualcomm, wasn’t trying to attract people with its offerings, solutions, or technology. It drew them with an open bar and lounge. What the company actually does remained a mystery. Something with mobile?

One of Swagg’s booth attendants told us they were “trying to get the name out.” Presumably, the idea is to pique people’s interest in the brand before revealing a much-anticipated product or service.  

On its website, the company’s entire “About” story says: “Swagg is brilliant, ingenious, revolutionary, and awesome. It lives on your phone and acts like your best friend. Trade gift cards, share points and get hooked-up everywhere you go.” That’s it. The only tangible takeaway is that somehow it helps you trade gift cards and share (loyalty) points. 

Some companies hesitate to say what it is they do in a clear way. They fear that if they do, they will box themselves in and lose potential customers. In actuality, a company loses potential customers when its offerings are not clear. If customers don’t know how you can help them, they won’t ask you for help.

Today, people are more discerning with how and where they spend their money. Most customers are not going to spend on sheer hype. People are distrustful of advertising, no matter how much a product “acts like your best friend.”

As a new company, Swagg is presented with an opportunity. The brand has a lot of energy and drive. But, it is easier starting with a clearly defined idea, rather than reverse-engineering one further down the road.

The risk of not defining yourself is that someone else might provide a definition for you.

According to The San Diego Union-Tribune: “Qualcomm’s Swagg is a software application. It allows the bar code for a gift card to pop up on a cell phone screen so it can be scanned by retailers.” Maybe Swagg doesn’t think that’s “brilliant, ingenious, revolutionary, and awesome” enough.

Trading TV Commercials for Cause Marketing

The Super Bowl is the biggest television marketing event of the year. This year, for the first time since 1987, Pepsi will not be airing any commercials during the big game. Instead, the beverage giant is investing millions in a cause marketing program called the Pepsi Refresh Project.

The Pepsi Refresh ProjectThe Pepsi Refresh Project is a grant program that will fund people’s ideas to improve their local communities. The purpose is to align Pepsi’s brand with social responsibility and build brand equity.

Starting January 13th, individuals and organizations can pitch their project ideas on Pepsi’s site, RefreshEverything.com. Based on the pitch and supporting media, site visitors vote on which ideas they’d like to see funded. The projects that receive the most votes will be awarded Refresh Grants, ranging from $5,000 to $250,000.

Each month in 2010, Pepsi will donate a total of $1.3 million to as many as 32 projects. Projects can fit into a wide variety of categories, such as Education, Health, and Arts & Culture. Want to start a local film festival or build modular homes? Get enough votes, and Pepsi will help you make it happen.

“The Super Bowl broadcast can be an amazing stage for advertisers if it aligns with their brand strategy; however, brands should not blindly anchor themselves to history,” said Frank Cooper, a senior VP of PepsiCo Americas Beverages, in a statement. “In 2010, each of our beverage brands has a strategy and marketing platform that will be less about a singular event, less about a moment, more about a movement.‪”

Thirty seconds of Super Bowl air time costs advertisers $3-million. Once the spot runs, it’s over. The impressions stop. The Refresh Project, on the other hand, will reach people on a longer term. Throughout the year, there will be new projects pitched, new grants awarded, and new Pepsi-backed community improvements affecting people across the country.

Turning a Product Discontinuation into a Celebration

Teary-Eyed Fans of the A1 Thick & Hearty Burger.

Teary-Eyed Fans say goodbye to the A1 Thick & Hearty Burger.

Pop-up stores get attention through urgency. They’re open a few days or weeks, and if customers don’t act, they miss out on a unique experience. Pop-ups, however, aren’t the only way companies are building urgency these days. Whataburger, a Texas-based fast food chain, got attention for the way it dealt with one of its menu offerings: the A1 Thick & Hearty Burger.

 

The A1 was discontinued in December. Rather than just cutting it from the menu, Whataburger held the burger’s funeral. The headline on the eatery’s website, www.a1supportgroup.com: “Need help coping? You’re in the right place. Let the healing begin.”

 

On the site, fans shared their grief in a number of ways:

 

They uploaded photos and videos, wrote notes on a digital “Going Away Card,” and recorded audio goodbyes by calling 1-877-A1-Support.

 

A funeral for a burger is clearly meant to be funny. The site let customers in on the joke and gave them ways to create their own content and interact with the brand and each other.