Behold the Power of the Boycott - Part 2

I read recently that boycotts don't work because people forget about them fairly quickly and revert back to their original behavior before too long.  Since Myers-Briggs tells us that 70% of people live in the moment that makes sense.

But those of us old enough to remember the civil rights movement and the Montgomery bus boycott know that sometimes boycotts do work.  It just depends on how passionate their supporters are. 

Grab your wallet is a case in point.  As I noted last summer, thanks in part to its over 2 million followers, 22 companies have dropped the Trump brand, the Manufacturing Council disbanded and Mar-a-Lago and other Trump properties experienced multiple event cancellations. (Kramer, Paletta & McGregor, Dangremond, 2017)

Now it's time for a fall update.

In November, Trump Soho became the second hotel to drop the Trump name, after first closing its restaurant and then dropping room rates.  Government records show that losses have more than doubled at the two Trump golf courses in Scotland, and business is down at the courses in Los Angeles and NYC.  (Associated Press, 2017)

Last week, Nike - Trump's biggest and most lucrative tenant, announced that they were breaking their lease on their flagship Niketown store and moving to a new location down the block.  (Green, 2017)  Perhaps their decision was influenced by the 72,000 people who signed a petition from Courage Campaign asking them to do so. (Dua, 2017),  

And today, CityRealty released a report showing that the average price for Trump-branded condos is $2.6 million, below the Manhattan wide average of $3.1 million, for the first time. (Trangle, 2017)

Clearly some boycotts do work.  And brands need to take note.

Here's a link to the previous blog...

http://pjlehrer.blogspot.com/2017/08/behold-power-of-boycott.html

Kramer, M. (2017, June 4) Grab your wallet, boycott Trump and participate in “A sprawling landscape of resistance” salon.com  Retrieved August 19, 2017, from http://www.salon.com/2017/06/04/boycott-trump_partner/

Paletta, D. & McGregor, J. (2017, August 16)  Trump’s business advisory councils disband as CEOs abandon president over Charlottesville views. washingtonpost.com  Retrieved August 19, 2017, from

https://www.washingtonpost.com/news/on-leadership/wp/2017/08/16/after-wave-of-ceo-departures-trump-ends-business-and-manufacturing-councils/?utm_term=.5a27053930d9

Dangremond, S. (2017, August 18)  Eight Charities Have Canceled Their Mar-a-Lago Galas This Week.  townandcountry.com.  Retrieved August 19, 2017, from http://www.townandcountrymag.com/society/politics/a12033310/mar-a-lago-charity-fundraisers-canceled/

Associated Press. (2017, November 22)  Trump SoHo hotel to drop 'Trump' name amid reports of slow business.  foxnews.com.  Retrieved December 13, 2017, from

http://www.foxnews.com/travel/2017/11/22/trump-soho-hotel-to-drop-trump-name-amid-reports-slow-business.html

Green, D. (2017, December 7)  Nike is leaving its iconic Niketown property — and the fact that Trump owns it is reportedly a factor. scmp.com.  Retrieved December 13, 2017, from

http://www.scmp.com/business/companies/article/2123308/nike-leaving-its-iconic-niketown-property-and-fact-trump-owns-it

Dua, T. (2017, August 17)  Nike is under fire for 'supporting' Trump.  businessinsider.com.  Retrieved December 13, 2017, from

http://www.businessinsider.com/an-online-petition-is-calling-for-nike-to-stop-supporting-trump-2017-8

Trangle, S. (2017, December 13)  'Trump effect' on condo prices?  amNewYork. p A5.

Instagram Rules

Instagram usage has doubled in the last two years, and it now reaches an average audience of 500 million people on a daily basis, more than double that of Snapchat or Twitter.  75% of users are outside the U.S.  90% of users are under 35.

So what accounts for its growing popularity?  It's nice.  According to the company, "they are striving to create a safe, happy environment.  One that people say is super positive and optimistic." (Rosenbaum, 2017)

Works for me.  Although I suspect not having to read has something to do with it as well.

In her "Tips for Taming Your Wild Facebook Feed," Katherine Bindley points out that if prioritization, hiding posts, and updating your likes, doesn't create an environment where you can go back to just the happy stuff - i.e. birthdays, brides, and babies (she forgot cats) then you can always switch to Instagram.  (Bindley, 2017)

Apparently more and more people are doing just that.

Rosenbaum, S. (2017, December 4)  Instagram's Dreamscape Winning Fans. mediapost.com.  Retrieved December 5, 2017, from

https://www.mediapost.com/publications/article/311055/instagrams-dreamscape-winning-fans.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=106413&hashid=c4hmrOYncfZiBl7GlC72xy3E6dw

Bindley, K. (2017, November 8)  Tips for Taming Your Wild Facebook Feed. wsj.com.  Retrieved December 5, 2017, from

https://www.wsj.com/articles/how-to-live-with-facebook-and-still-live-with-yourself-1510160931

Has Office Depot found a way to turn "elf yourself" into lemonade?

There's an old saying - when life gives you lemons, make lemonade. 

In 2006, Office Max launched their "elf yourself" holiday campaign.  As I noted at the time, while engagement with the dancing elves was high, most people who forwarded the email could not name the company that sponsored it.  Worse yet, the company reported a decline of $7 million in sales while the promotion was running.  So it was a good example of how high engagement can be meaningless when it comes to generating sales.

But the promotion exceeded engagement goals with 36 million visits in 5 weeks, so Office Max turned the promotion into a yearly event.  Not surprisingly they also continued to see revenue declines.  A merger with Office Depot has not helped, so this October they announced a pivot, and a deal with CompuCom that will move them from a traditional business products retailer to a business services company.

So imagine my surprise when I saw that they were continuing the Elf Yourself promotion. To what end?  Will it increase sales?  Or will it just be another toy for people to play with?

It appears that Office Max believes the latter, so they are attempting to monetize the app.   The new mobile version allows people to elf themselves by adding faces of 5 friends, who will then dance together to a variety of tunes.  But, only one song is free.  The rest require an in-app payment of 99 cents for each song, there are a total of 19, so that's $6.

With over 1billion customized elves since the campaign began they might be on to something. (Martin, 2017)

So what do you think?  Have you elfed yourself in the past?  Did you buy stuff from Office Max/Office Depot after you did?  Will you elf yourself this year?  Will you pay for additional songs?  How much money are you spending on online apps?  What types of apps are you buying?  And most importantly, will you buy something from Office Depot this holiday season?

http://news.officedepot.com/press-release/corporatefinancial-news/office-depot-takes-first-step-strategic-transformation-become-

Martin, C. (2017, November 23)  ElfYourself Back For The Holidays, Now With Augmented Reality.  mediapost.com.  Retrieved November 29, 2017, from

https://www.mediapost.com/publications/article/310627/elfyourself-back-for-the-holidays-now-with-augmen.html

Would you like some mascara with your coffee?

In an attempt to capitalize on their foot traffic, 7-Eleven is rolling out an exclusive line of cosmetics called Simply Me Beauty.  

Cosmetics are a $46 billion industry so it makes sense that they want a piece of it. 

But what will consumers think?   

The company notes that consumers often buy makeup products on impulse.  And that private labels and exclusive lines are growing faster than traditional brands. (Brookman, 2017)

Jet.com is of course another company jumping on the private label band wagon with their Uniquely J for Millennials.  They are counting on bright packaging, BPA-free plastic and product names like "Badass Espresso" to win over their hearts and minds.  And of course it doesn't hurt that the WalMart name is nowhere near the products, except maybe when they arrive. (Vena, 2017)

So, based on what we have learned this term about consumer behavior, what do you think?  Why do you think private label products are on a roll?  What kinds of items do you buy on impulse?  How will consumer perceptions of 7-Eleven impact the likelihood of people buying cosmetics there?  What about Uniquely J?  How important is packaging in decision-making?  Has it influenced your purchases?

Brookman, F. (2017, November 21)  7-Eleven Hopes Women Want Cosmetics With Their Coffee.  wwd.com.  Retrieved November 22, 2017, from

http://wwd.com/beauty-industry-news/color-cosmetics/7-eleven-hopes-women-want-cosmetics-11054772/

Vena, D. (2017, October 23)  Jet.com Launches Uniquely J to Target Millennials.  fool.com.  Retrieved November 22, 2017, from

https://www.fool.com/investing/2017/10/23/jetcom-launches-uniquely-j-to-target-millennials.aspx