NCR to Install Blockbuster Express Kiosks in RaceTrac Stores

The Wall Street Journal
March 31, 2011
By MELISSA KORN

NCR Corp. will begin placing more Blockbuster movie rental kiosks in its RaceTrac convenience store throughout the Southeast.  With already 200 installed, another 8,000 will be up by June.  The company also has some located at Walgreen's and Sheetz.  It's rival, Coinstar Inc.'s Redbox has over 30,000 kiosks.  NCR has recently begun a campaign to vend certain movies the same day they're released for sale.  This could be a big advantage to the growing company.  The idea of renting and selling DVDs and Blu-Ray discs from a kiosk is a good example of place utility.  Customers are more likely to rent a movie if they can grab it quickly and easily has they exit a supermarket, rather than make an extra trip to the video store or wait two days for it to arrive in the mail. 

Networks, Advertisers Call New Plays Amid NFL Strife

The Wall Street Journal
March 28, 2011
By LAUREN A. E. SCHUKER

The recent NFL players lock-out has caused networks to begin preparing alternate programming in the event that games are cancelled come September.  Advertisers, who spend around $3 billion a year on football, have already bought commercial spots on new networks.  Golf, college football, and prime-time dramas are attracting extra attention from advertisers planning ahead.  Networks that rely heavily on football, such as Fox, NBC, and CBS, will have to get creative.  Spike, whose target market is 18-49 year old males, is looking to take advantage of cancelled games.  They are considering Sunday night boxing matches and a football comedy show to get some of the fresh market share.  In my opinion, a business must always look for opportunities.  Spike conducted a SWOT analysis and decided that advertisers might have to move their spending and Spike would be a good place invest.

Metro AG Cautions That Japan, Middle East May Hurt 2011 Sales

The Wall Street Journal
March 22, 2011
By HILDE MESSER

More on Japan today: global retail powerhouse Metro AG cautions that the devastation in Japan may weaken the economy.  Analysts are still waiting to see what the effects will be, but they know the situation is beyond anyone's control.  The current turmoil in the Middle East just makes thing worse.  Metro has benefited from strong global positioning.  Last year they entered new countries and opened up 100 stores.  More than 60% of their sales come from abroad.  Not the direct effects, but the indirect effects of these current events may pose problems for Metro.

In Tokyo, Responses Vary in Tony Shops

The Wall Street Journal
March 21, 2011
By MARIKO SANCHANTA And CHRISTINA PASSARIELLO

Tokyo's fanciest retail sections were open for business this past weekend, with streets less crowded as usual after the March 11 earthquake and tsunami.  Many European shops were closed.  These luxury shops are in trouble in the short-term aftermath of the destruction.  Actually, over the past few years luxury items in Japan have been on the decline as the people who once cited high prices with good quality are more concerned with value.  before the earthquake many thought the worst was over for luxury shops, but now that appears to be wrong.

Struggling ReelzChannel Hopes a Hot Potato Becomes Hot Ticket

The Wall Street Journal
March 21, 2011
By LAUREN A. E. SCHUKER

Little known cable network ReelzChannel has a big opportunity to put itself on the map with its new miniseries "The Kennedy's."  They picked up the show after it was let go by the History Channel and unwanted by other networks.  This is an expensive gamble that may pay off and be a transformation.  They have doubled viewers since acquiring the show, though one analysts makes the case that one miniseries alone, even as controversial as this one, isn't enough to build a powerful network.  Also, while the show has lured viewers, it has yet to lure any big advertisers.

Lincoln to Sponsor New York Times Readers

The Wall Street Journal
March 22, 2011
By NAT WORDEN And JON KAMP

More on the New York Times charging readers!  They will be getting some help from Ford's Lincoln brand.  Lincoln has targeted 200,000 heavy readers and will offer to sponsor their digital subscription costs.  Details of the arrangement are still to come, and by sponsoring it is most likely going to increase advertising with the more readers.  The help comes in providing early consumers for the newspaper.  New York Times will be charging $15 per month for online readers who read more than twenty articles.  Personally I believe this will be key; readers who are on the fence about paying will give it a try.  The marketing communication manager for Lincoln said she hopes to appeal to younger thought leaders.  We see who their main target market is here.

Web Shows Get Ambitious

The Wall Street Journal
March 21, 2011
By SAM SCHECHNER

Media companies are starting to create internet video hits closer to the scale of traditional television.  Netflix will be producing a drama starring Kevin Spacey, while companies such as Yahoo, AOL, and Hulu are investing more dollars into their original internet productions.  Hulu will be creating a five - seven minute action thriller starring Kiefer Sutherland, similar to "24."  This is surprising to me considering the spotty track record of the industry, but I will be interested in the outcome.

New York Times to Launch Pay Wall March 28

The Wall Street Journal
March 18, 2011
By Russell Adams


One theme of this blog seems to be the decline of the newspaper industry.  Following up on some previous posts, the New York Times will finally be charging consumers to pay for digital news later this month.  Subscribers to the print edition will get full online access.  They have been reluctant to charge in fear that they will lose their customer base completely to other free sources, but it now appears they have no other choice.  Research has shown the readers are willing to pay.  Among print media companies, the New York Times does indeed have the largest market share.  They will also be working collaboratively with Apple and their products.

Jack in the Box Joins Food-Truck Craze

The Wall Street Journal
March 18, 2011
By John Kell


Keeping with what seems to be today's theme of fast-food burger chains, Jack-in-the-Box is going mobile.  They are now selling burgers, tacos, and fries out of food trucks in Southern California.  They will be rolling out especially large trucks, 12 feet bigger than the usual.  This is an example of place utility, as we have learned.  Their new mobility allows them to serve customers in more places.

Burger King Parts Ways With Ad Agency

The Wall Street Journal
March 18, 2011
By EMILY STEEL

After seven years, Burger King and its ad agency Crispin Porter + Bogusky have mutually decided to part ways.  Burger King hopes to have a new agency in place in three months.  This separation is part of a broader shake-up in their marketing department, which will have emphasis on global business.  Burger King has reduced its ad spending in recent years, spending $302 million in the U.S. last year.  Burger King was among the largest clients of Crispin.

Pepsi Thirsty for a Comeback

The Wall Street Journal
March 18, 2011
By MIKE ESTERL

After losing ground to Coca-Cola in the past year, Pepsi is looking to make a new push in the U.S. soda business.  The plan is to spend 30% more in television ads.  Revamps and other tweaks to its packaging are also on the way.  What I found more interesting here is one technique Pepsi will be using soon.  Just like Coke does with product placement on American Idol, Pepsi will be doing on the television show X-Factor.  It seems to have been a huge success for Coke.  I am actually wondering what took Pepsi so long to do the same?  The CEO of Pepsi says they need television to make the big, bold statement. 

Nike Plans to Raise Prices

The Wall Street Journal
March 18, 2011
By MAXWELL MURPHY And JOAN E. SOLSMAN

Trying to combat rising costs, Nike will be raising prices and a variety of products.  The costs include oil, air freight, cotton, and labor.  Before Nike had been picking their spots to raise prices, but now it will be across the board.  The consumer is under pressure because of high unemployment and rising inflation.  Positive currency changes have help Nike in China and Japan. They expect the disaster in Japan to hurt profits there.  In North America, Nike's largest market, sales were up - possibly a sign of the recent economic recovery.

Pay TV Reverses Decline

The Wall Street Journal
March 14, 2011
By SAM SCHECHNER

U.S. television subscriptions crept up in the fourth quarter of 2010, a switch from the decline of the previous quarter.  Nobody is sure what the future holds for the television subscription business, especially now with shows viewable on the internet.  Many executives say there is little room for expansion in the U.S.  A major concern is also that younger people may never pay to a television service.  There has been a drop in subscriptions of college towns, proving that the younger generation is comfortable with using other sources.

Google to Help Broker Video Ads

The Wall Street Journal
March 11, 2011
By Amir Efrati

Google will soon set up a marketplace for website publishers to match with advertisers.  This is good news for the future of video for publishers.  Most ads are still purchased ahead of time through negotiations, but what this new marketplace could mean is the bidding for real-time advertisements.  The importance of online advertising is undeniable and growing - last year reaching $1.5 billion in revenue.

Air Canada Threatens to Pull NHL Sponsorship Over Violence

The Wall Street Journal
March 11, 2011
By Stuart Weinberg

A recent vicious hit on a Montreal Canadian by a member of the Boston Bruins has sparked Air Canada, sponser of the NHL and the stadium in which the Canadians play, to threaten to withdraw their sponsership if the NHL doesn't crack down on violent on-ice incidents.  They say they will withdrawl unless the NHL takes immediate action, including suspensions.  The commishioner of the league doesn't seem to be scared, claiming that he is satisfied with the action the league has taken.  The commishioner seems to have called the bluff of Air Canada, who might need the NHL more than the NHL needs it.

Video Site Hulu Plans to Shrink Its Board

The Wall Street Journal

March 11, 2011

By SAM SCHECHNER and JESSICA E. VASCELLARO

In an effort to streamline decision making, Hulu will get rid of some board seats.  Now a 12 member board, it remains unclear exactly how small it will shrink.  Key questions for the board are how long videos should remain for viewing on the website, and what videos should be part of Hulu-plus, which requires a paid subscription of $7.99 a month.  Management is also concerned with charting a course away from its competitor Netflix.  This article gives a good inside look at what goes on in upper management.

The Journal Adds 200,000 Mobile-Device Subscribers

The Wall Street Journal

March 11, 2011

By Aparajita Saha-Bubna

The Wall Street Journal will be reaching more consumers now that they have accumulated 200,000 mobile-device subscribers via Apple's iPad and Amazon's Kindle.  Subscribers pay $4 per week to read on their mobile device.  This is another example of a newspaper trying to expand digitally since there has been a decline in print advertising revenue, which is traditionally its largest source of revenue.  Meanwhile the New York Times is in its final testing phase of their online subscriptions.  First offering content for free, I will be interested to see how consumers react.  Will they pay for something that used to be free?

Apparel Retailers' Pricing Power Gets Tested

The Wall Street Journal
March 8, 2011
By Kelly Evans

Clothing retailers are trying not to let their prices go up, though rising costs in cotton and transportaion are making this very difficult.  Strong brands that have pricing power are best-positioned, but not immune however.  Teen retailers, which compete on price, are worse off.  Many chains have been turning in down fourth quarter profits, and much more to come can be expected.

New York Times Ad Sales Slip

The Wall Street Journal
March 2, 2011
By Tess Stynes

The latest in the continuing blows to the newspaper print industry is a decline in print advertising sales.  The company has been trying several new strategies, such as trying to create a pay system for the online version on the paper.  They expect to test this shortly.  Because of higher promotional costs, print, print prices, and pension expenses the company also expects to see a %1-2 rise in operating costs.  Their print advertising losses more than offset their growing online business.

Warner 'Likes' Facebook Rentals

The Wall Street Journal
March 9, 2011
By Michelle Kung and Geoffery A. Fowler

Trying to find a fresh source of revenue, Warner Bros. Entertainment will begin renting movies via Facebook.  Facebook has become an increasingly popular site for uploading and streaming videos, but hasn't made any indications it is planning to launch a paid video service of its own - it is happy to take a cut of the sales from another party for now.  The cost to rent a movie is $3, and the first movie to be offered will be "The Dark Knight."  This shows that studios cannot count solely on DVD sales anymore and are movie towards social media distribution.  For now, it seems Facebook will not be a short term threat to Netflix, but the long term is yet to be determined.

 

Skype to Roll Out Ads

The Wall Street Journal
March 8, 2011
By Scott Morrison

Internet telephony service Skype will be displaying ads to consumers this week in an effort to generate new revenue, but some investors are still worried in its ability to do so.  The ads, the will first appear in the U.S, U.K., and Germany will feature such advertisers as Viza, Groupon, and Universal Pictures.  The ads may conatin audio and video.  Users will be able to close ads, they will not interrupt conversations, nor will they appear as pop-ups or banner ads.  The more I read about new ways to reach consumers the more I find that marketers realise it is important not to annoy the target.

Febreze Joins P&G's $1 Billion Club

The Wall Street Journal
March 9, 2011
By Ellen Byron

In a follow up to a previous post, it appears that Proctor & Gambol's new strategy of not treating their products as their own company might not be entirely necessary for Fabreeze.  The product is on the rise, recently becoming P&G's 24th product to cross the $1 billion line in annual sales.  Fabreeze is definitely a bright spot for the company, considering the economic slump made consumers purchase cheaper detergents and shampoo products.  However, the recession may have helped Fabreeze in a way; since people are eating out less they have become more home-centered.  Fabreeze has widened its products too.  Globally, air freshener sales have been rising too.

JCDecaux Eyes CBS Outdoor

The Wall Street Journal

March 9, 2011

By Thomas Varela

JCDecaux, the world's largest seller of outdoor advertising, is considering purchasing competitor CBS Outdoor.  The CEO of CBS Corp. says that outdoor advertising is no longer a key component of the business.  JCDecaux made it clear that they will not overpay for the aquisition.  Once out of reach, the price now seems to be more reasonable, but the two sides are not in talks just yet.  JCdecaux is the sector's biggest player by revenue, but as of now they only 10% of that revenue comes from the United States.

Television's Senior Moment

The Wall Street Journal
March 9, 2011
By Amy Chozick

As televison audiences are getting older the characters are too.  Traditionally operating on a currency of youth, the television industry seems to be giving more lead role to actors in their 60s.  Networks want to charge advertisers more to reach the baby-boomer generation through retooling boomer classics such as Hawaii Five-0.  Personally, I believe boomers watch much more television than the younger generation.  Still, most marketers prefer young consumers, whose buying prefernces can make a product catch on with older consumers.

Writers Get Close on Web

The Wall Street Journal
March 7, 2011
By Jeffery A. Trachtenberg

Since fewer authors are going on extended tour and fewer bookstores around the country are hosting signing events, Simon & Schuster are hoping to build better reader-author relationships through web interviews in which readers submit questions via email.  This in turn, they hope, will lead to higher sales.  Readers who like a particular book are often very passionate about the author.  This format will be more intimate than a text Q&A.  Authors might also appreciate that video interviews don't take much time, and the ones that can build successful relationships are certainly helping out their sales.  

Tina Brown's Newsweek Relaunch Hits Newsstands Monday

The Wall Street Journal
March 7, 2011
By Russell Adams

A new look for Newsweek Magazine will be launched Monday.  It will have thicker pages, a new font, more graphics, and articles that cover topics of a wider range than before.  They are rebuilding a brand that has been struggling greatly for a few years.  Reporting will play a big role in the refashioned magazine.  New editor Tina Brown has been praised in the past for her mastery of the high-low in journalism - mixing serious and light topics.

U.K. Broadcasters Try Product Placement

The Wall Street Journal
March 7, 2011
By Adrian Kerr and Lilly Vitorovich

Nestle's SA Dolce Gusto coffee maker appear on a British cooking magazine TV show, marking the country's first example of product placement.  This technique may not take off fast, but it does mark a change to whether product placement should be allowed at all.  The practice in already common in the United States.  In the U.K., strict restrictions have been placed on the practice, including children's, religious, and news programs.  Also no product related to alcohol, tabacco, gambling, or medicine is allowed.  It will be key for marketers not to annoy viewers by doing this.  It is not clear yet what impact product placement will have on TV ad revenue.

Starbucks to Sell Instant-Coffee Packets in China

The Wall Street Journal
March 8, 2011
By Laurie Burkitt

Starbucks sees a big opportunity in packaged goods in China.  The company is introducing single-serve coffe packets in 800 stores in China.  Starbucks has big plans to expand in China, even saying that China may be its biggest market by 2015.  They will also focus on creating tea-products for China, since tea in king there.  Consumers in China might need more time to develop a taste for coffee.  Sales are rising fast, though, and small cities in China are beginning to demand their products.

Unusual Store Locations Fuel Subway's Growth .

The Wall Street Journal
March 8, 2011
By Julie Jargon

Subway has overtaken McDonald's as the world's largest restaurant chain.  At the end of last year, Subway had 33,749 units compaired to McDonald's 32,737.  Subway has recntly experinced great growth.  Opening restaurants in unusual places certainly contributes to thier rapid growth.  Some odd locations for a restaurant that Subway has been a part of include military bases, colleges, an automobile showroom, and a church - just to name a few.  My two sense is that the trend to eat healthier is catching up with McDonalds.  Not that they are in any trouble, but Subway, who prides themselves on being the healthier choice, has proven to be more than just a contender globally.