"Brandless" may succeed, but brands are here to stay.

Last month a new online retailer named "Brandless" was launched.  Its concept is similar to that of the Dollar Shave Club.  Everything on the site is $3.00.  Kind of like the Dollar Stores, but 3x as much.  Still a significant savings over the prices that people typically pay for branded items. (Gilbertsen, 2017)

So the question is - why do people pay more for brand names?

The answer is that all decisions are emotional.  And we bond with brands the same way that we bond with people.  So we are willing to pay a bit more for the detergent that our moms used because the scent brings back good memories of our childhood. (Murray, 2013)

On the other hand, private label product sales increased 24.6% from 2009- 2014 (Blair, 2016), and many Millennials are strapped for cash.  They have also shown a propensity for buying everything online, so "Brandless" may be their cup of tea.  But I don't see them giving up all their brand names - just look at their love for Apple.

Gilbertsen, C. (2017, August 3)  Is The Future Brandless?  mediapost.com.  Retrieved August 4, 2017, from

https://www.mediapost.com/publications/article/305242/is-the-future-brandless.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=104498&hashid=qPjrjs2d4CzuoIyymSYheeVOsxs

Murray, P. (2013, February 26)  How Emotions Influence What We Buy.  psychologytoday.com.  Retrieved August 4, 2017, from

https://www.psychologytoday.com/blog/inside-the-consumer-mind/201302/how-emotions-influence-what-we-buy

Blair, W. (2016, December 8) Private Label Growth Trends Drive Increased M&A Interest.  williamblair.com.  Retrieved August 4, 2017, from

https://www.williamblair.com/News-Items/2016/December/08/Private-Label-Growth-Trends-Drive-Increased-MA-Interest.aspx

Google is Skynet -- or maybe Amazon is.

I caught up with Terminator Genisys this weekend, just in time for Google's announcement of Google Home this week.

Google Home is your new virtual assistant, just like Echo (Amazon) or Siri (Apple).  It will control a variety of devices in your home and bring you music and entertainment.  And it will do a Google search for you.  (Forbes, 2016)

I wonder how that's going to work.  Sometimes I search for hours to find the information I am looking for.  Meanwhile Google is gathering data about me.  Data that it recently sold to someone who served me an ad for a medical problem that I don't have.  It freaked me out.  It's so much more personal than just trying to sell me shoes.

And maybe it's just me, but I don't particularly want a surveillance device in my home listening to everything I say.  And what happens when it goes down and I can't turn on a light or lock a door?  I shudder to think of the possibilities.  (Oremus, 2016)

Forbes, T. (2016, May 19)  Google's Coming Home, Among Other Developments.  mediapost.com.  Retrieved May 19, 2016, from http://www.mediapost.com/publications/article/276207/googles-coming-home-among-other-developments.html

Oremus, W. (2016, May 18) The Google Home Is Like the Amazon Echo, Only Smarter.  And Maybe Creepier.  slate.com.  Retrieved May 19, 2016, from http://www.slate.com/blogs/future_tense/2016/05/18/google_home_is_a_smart_speaker_that_s_smarter_than_the_amazon_echo_creepier.html

Would you buy Dove Chocolate from Martha Stewart?

11/5/09

We’ve discussed the fact that one of the problems with using celebrities in advertising is that they often lack believability. And sometimes they’re actually silly enough to get caught using a competitive product. After his brief flirtation with Microsoft, Seinfeld is now back to using Macs. Did he ever believe in PCs? Or was he just paid well to pretend that he did? (Tang, 2009).

Ms. Stewart’s association with Dove runs far deeper. Special-edition bags of “Promises” chocolate will carry 200 different holiday tips from Martha, in a “fortune cookie” like format. During the show she’ll discuss Dove’s commitment to cocoa sustainability and holiday craft segments will include the candies.

Perhaps the entire campaign would be more believable if it hadn’t be announced last week that she will also be partnering with Hain to launch Stewart-branded poultry, baked goods and pastas. Is she becoming the next Kate Moss? What do the Martha fans think? Will her endorsement be persuasive? Or is she officially over-exposed? (Lukovitz, 2009).



Tang, S. (2009, October 29). Seinfeld Back With the Mac in Latest Curb Episode. tuaw.com. Retrived November 4, 2009, from
http://www.tuaw.com/2009/10/29/seinfeld-back-with-the-mac-in-latest-curb-episode/

Lukovitz, K. (2009, October 30). Martha Stewart Promos Mars’ Dove Chocolate. mediapost.com. Retrived November 4, 2009, from
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=116363

Does this ad make you want to buy a PC?

7/23/09

Perhaps you have noticed that Microsoft has been running a series of commercials with the key message that PCs are a better value than Macs.

Here’s the URL for one on YouTube: http://www.youtube.com/watch?v=EqvRi2akZMA

We’ve already discussed the fact that many companies have switched to a value strategy because of the economy, and this is yet another example. So what do you think? Is it compelling? If you were considering buying a Mac would this change your perspective?

Apparently the folks at Apple are concerned; so much so that they contacted Microsoft to ask that they stop running the ads because Apple has lowered their prices. (Parekh, 2009)

And according to yesterday’s Wall Street Journal, revenue on the Mac business fell 8% last quarter due to price cutting. Kane, 2009)


Parekh, R. (2009, July 16). Microsoft Undeterred by Alleged Legal Threat From Apple. adage.com. Retrived, July 22, 2009 from
http://adage.com/article?article_id=137989

Kane, Y. (2009, July 22, 2009). Apple Net Up 15% on iPhone Surge. Wall Street Journal, p.B1.