Marketing Idea No. 289: Why Labels like “Young Adult” is stopping Young People from Becoming Adult

Human being has a tendency to label and re-label everything. That’s why when you hear things like “Blue is the new Black” and “40 is the new 30”, you have to be wary of the hidden implications.

Its universally accepted these days that the rampant materialism that western society has exposed themselves has resulted into sort of a soul searching crisis. Defining what role we are supposed to play in this one life, who we really are and what is our passion has become the mantra of the decade. Investment bankers are walking away from six figure salaries to start off garage based start ups. Lawyers are quitting their job to take a yearlong sabbatical to embark on a journey to find themselves. Middle aged men are getting divorced to relocate to Thailand where the beer-soaked Tuk Tuk ride with a couple of Thai women eager to serve in the beaches of Jomtien, brings him back to the good old youth.

All over the world, people are reclaiming what they supposedly lost. That is the good part. All over the world people are shedding their responsibilities. That is not so good. And one of the worst sub-trends, of this “Seize the Day and Reclaim your life” mantra is young people are refusing to grow up and take responsibilities.

There is a new category in popular entertainment that has exploded in recent times, which is called “Young Adult”. This “Young Adult” or “Kidulthood” is nothing but a clever marketing ploy by savvy organizations to tap into this trend of people trying to prolong their youthful party filled days. Young Adult books or movies are not meant to be for teen agers. They are meant to be for the grown ups who refuse to grow up. And as an act of rebellion to hold on to his supposedly lost youth, she indulges on to “The Hunger Games”, “Twilight”, “The Maze Runner”, “Divergent” and countless more.

What the popularity of TV shows like “Friends”, “Sex and The City”, “Happy Ending”, “The Big Bang Theory” and “How I met your mother” teaches us that its so much fun to just hang, have a good time and not to worry about a thing in the world. Getting married means settling down. Settling down means boredom and the end of seeing your friends. Getting a job means responsibilities and the end of party.

These are the patterns that people in the 20s are avoiding like plague. A lot of young people in their 20s are delaying entering job or getting married or for that matter taking any life altering decisions. As a society we lose out because the most productive source of economic growth is giving away 2 to 5 years of their productive life to delay the inevitable and find out “Who they are”. Not only that, as an individual we lose out because

  • 80 percent of life’s most defining moments take place by age 35.
  • The first 10 years of your career has an exponential impact on how much you’ll earn.
  • Over half of people around the world will choose their future partner by 30.
  • The brain has its second and last growth spurt in your 20s.

If you give people the option to find out who they are, often they misuse that power to delay taking decisions. So stop figuring your life out and start living it. Go get a job. Start actively looking for a partner to settle down. Because as per clinical psychologist Dr. Meg Jay,

“The best time to work on your marriage is before you have one”

Marketing Idea No. 288 – Un-labelling: How brand packaging is embracing extreme minimalism

Packaging was always the last ditch effort to communicate brand cues, category cues, product benefits and unique selling proposition. But a growing trend around the world is showing brands moving packaging beyond the purely visual into the primary touch-point of an emotionally resonant experience that creates trust, loyalty, differentiation and desire. And the way they are doing it is by simplifying everything and embracing extreme minimalism.

When Nutella and Vaseline removes everything from their packaging and label except their brand logo in Word mark, it speaks of a micro trend. But when industry heavyweights and classic brand like Pepsi and Coke removes everything from their can except the Brand name and logo, it speaks of a global megatrend. Star bucks followed suit in 2011 when they removed the brand name from the label and kept the Mermaid symbol only. Nike probably pioneered this trend years ago when they took away the brand name to keep the simple “Swoosh”, which eventually became the most noticeable brand identity mark in the world.

All this simplifying is marketers attempt to go back to basics and build a relationship that is based on core issues like trust. But some brands are pushing the envelope further than the others.

Heinz’s “Get Well” campaign from 2011 and 2012, had a place in Ad Age’s list of the ten best social-media campaigns of the year and had it for a reason. The campaign cleverly combined digital marketing with distinctive packaging. The campaign allowed Facebook users to send personalized “Get well” soup cans to their friends when they are sick. Through this campaign Heinz gained 75,000 new Facebook fans, 650% increase in Facebook page interaction. To cap it off, more than 4,000 cans of “Get Well” soup were sent.

Marketing Idea No. 287: Is your body image holding you back?

A 2004 study by Cornell University Associate Professor John Cawley found that when the average white woman puts on an additional 64 pounds, her wages drop 9%. Obviously for non-white women this drop tends to be much starker. In another study, Charles Baum, of Middle Tennessee State University, also reported in the journal Health Economics that obesity could lower a woman’s annual earnings by as much as 6.2% and a man’s by as much as 2.3%.

A more obvious place to look for discrimination would be the recruitment interview itself. Almost all recruitment decisions are made based on a shallow first impression. People who are not comfortable with their body type usually project less confidence in interviews. Moreover there is scarcity of really fashionable plus size clothing. All these factors taken together creates a hurdle that is too big for some people to overcome and the breeding ground of discrimination against body type.

A similar trait to body type discrimination would be the necessity to look young and good looking. It was previously believed that the obsession for anti-aging drugs and cosmetics was limited to the bored housewives who have the money and pretty much nothing to do except spend it on themselves. But during a pan Asian research, this commonly held perception was challenged as it turns out Asian women think that to land a good job, you need to look young; preferably not over 30. In that same research 64% Chinese women said that looking young is important to land a good job.

It’s a startlingly odd but true realization. The glass ceiling might be not just made of glass, but perception towards your body image.

Marketing Idea No. 286: What paying high price actually means

Its often said that price war is the last resort of stupid marketers. However when it comes to over pricing, such beliefs are less commonly held. Unless of course you are the unlucky middle class consumer who is caught between two irrepressible forces: savvy marketers and rich consumers A lot of products can justify their high price of course.

When you pay that extra $500 dollar for a trip in Singapore Airlines, you know that you are paying extra for the legendary “Singapore Girl” service, the exemplary attention to details of the food and the comfort of the chair that is designed in collaboration with BMW.

Not every pricing-quality paradigm is as straight forward though. The price of a luxury car maybe 10 times more than a Mini van for soccer moms, but maybe costs only two times more to make. In that case, the illusive “Quality” gain that the buyer is getting by paying higher is not as great as the clearly significant profit that the seller is getting.

Liquor is a category which is notorious for over pricing by using clever marketing gimmicks, even when the cost increase and quality/value addition is not all that high. Thanks to the rich demand from the rich people, particularly in China and Russia, a Bordeux vineyard wine can charge exorbitantly higher price simply because it has high demand. Then comes the me-too brands. They charge high not because their cost base is high or their product is superior or they have brought innovation. They do it because someone established that high price already and by copying that price, they just want to signal the consumers that this product is worth the same high value. Cloudy Bay, a straightforward New Zealand Sauvignon Blanc whose price; without any apparent change in the production method; rose from about $15 per bottle to about $30 per bottle after LVMH acquired the brand in 2003 and began marketing Cloudy Bay as a luxury product.

And then there is the effect of marketing cost. The world’s biggest Luxury house LVMH has a cluster of super premium brands like TAG Heuer watches, De Beers diamonds, Guerlain perfume, Louis Vuitton handbags, Chateau d’Yquem, Krug, and Dom Pérignon. All of these brand are over priced because such a large portion of their cost base is spent on marketing, not to increase their quality.

Please keep in mind in all of these cases, price doesn’t reflect the quality. It reflects irrational buying behavior. That’s why when a products high price is not because of its high production cost; but mainly due to marketing gimmick, marketing cost, shortage of demand or any sort of irrational buying behavior; that’s when it can safely be said…… you are paying too much.

Marketing Idea No. 285: Why Transient strategy is the excuse you need to not debate over Long term vs Short Term strategy

One of the ancient contradictions of management is long term thinking vs short term thinking. Usually during the yearly strategy plan meetings, all managers magically become long term thinkers, at least on the PowerPoint slides. Then comes the quarterly reviews and the only thing they care about is short term results. Budgets are approved based on long term planning. Budgets are cut based on short term focus. How can we be seasonal short term executioner with the soul of a long term planner, both at the same time? Why do all of us admire Warren Buffet’s long term thinking but follow our boss’s short term directions?

More importantly, is there a way out?

In a world where change is the only constant, both embracing traditional long term thinking or completely abandoning it, are both outdated and dangerous. Check out Fast Moving Consumer Goods or Consumer Electronics, where industry standards change every quarter. Check out the competition between TV category and Telecommunications category, who traditionally should not be competitors. Holding a constant long term strategy might be a luxury that the marketers in these category will never have. That’s why the new buzz word in strategy is called “Transient” strategy.

At its core, “Transient” strategy assumes that no single strategy is a source of sustainable competitive advantage because the landscape, the rules and the players keep on changing so fast. Instead, companies need to be agile: shifting strategies as fast as possible, when necessary, and even adapting strategies that are in the process of implementation to the new environment the company finds itself in.

A curious case study in question is Research in Motion. Only 4 years ago they were the giants at smart phones with their ubiquitous Blackberry everywhere. Their long terms strategy was holding on to their competitive advantage on QWERTY based phones, fast e-mail service and unparalleled security. While they went on to make the safest, fastest, most sophisticated phones; the whole industry moved on to the sexy and bling bling Touch screen phones. Beauty became the new standard, eco system and apps the new buzz word. Fast forward 4 years and the long term source of competitive advantage became the source of long and slow death for RIM.

Friedrich Nietzsche probably had something similar in mind when he said “the snake which cannot cast its skin has to die. As well the minds which are prevented from changing their opinions; they cease to be mind.”

Marketing Idea No. 284: How NOT to choose your profession

Police detectives have lousy jobs. There is no fixed work hours. The pay is low. You spend time looking at graphic scenes all the time. And not to mention you spend most of your working hours with the biggest scums on planet earth.

Considering this, why should people choose police work as a profession? What kind of people really should choose police work because clearly it’s not for everyone?

Police work makes sense probably for people who feel they can play an active role in making society a better place. If you have a penchant for helping people but your overall personality is pleasant rather than aggressive, maybe not police work; but nursing is your thing. If you have a sunny, extroverted disposition and you genuinely like talking to people, you should work in sales or customer service.

Now imagine a situation where someone meant for police work ends up in sales and someone meant for sales ends up in a job in funeral parlor. It may sound implausible and impractical, but that’s happening all over the world every day. Every time when someone chooses a job for pay alone or for family pressure, they end up making these wrong choices. Then society as a whole suffers from getting corrupt policeman and grumpy customer service executives.

Not only psychology, but sometimes you have to read your physiological strengths to understand what you can be good for. If there is person who is over 7 feet tall in America, there is a 17% chance he is in NBA right now. If you belong to Kalenjin tribe in Kenya there is a high chance you will be a world class Marathon runner because of the unique and thin leg structure that those people have.

This is how society can help people become happier. By understanding what they are good at and helping them choose profession accordingly.

Marketing Idea No. 283: The Internet of Things

Coming soon to a future near you, your shoe will interact with your refrigerator indicating what kind of mood you are in and depending on that, the refrigerator will suggest dinner in collaboration with the Japansese microwave sitting beside. Just after that, your ever changing bedroom lights will create the perfect ambience to sooth your flailing nerves.

Use of internet connected smart appliances or popularly known as “Internet of Things” is no longer in the fiefdom of science fiction only. As per Business Insider Intelligence report, 1.9 billion devices today, and 9 billion by 2018 will be connected to Internet which is roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined. It will drive trillions in economic value as it permeates consumer and business life.

Imagine the possibilities this will open up for advertising. Your refrigerator will become your next media space for advertising. Why put the advertising for your “Mint-Goji Berry Chocolate Yoghurt” in TV when it makes much more proximity and relevance sense to put it on refrigerator?

The transformation of media is neither easy nor quick though. For years of talking about the death of TV and radio, both are still very much alive and probably still driving the majority of ad spending. Newspapers have not gone out of business due to digital subscriptions. For all its hype, Twitter is still in red ink and don’t know how to monetize from a Tweet. And the whole world is still trying to figure out how to make money from mobile advertising without annoying people.

But the immense world of opportunity in “Internet of Things” is out there and inevitable. We just have to crack open the way to ride this wave better.