The Street: Why Every Small Business Needs An iPad

The Street (www.thestreet.com) has a great post on why every small business needs an iPad. Why Every Small Business Needs an iPad By Laurie Kulikowski 03/05/12 – 07:45 AM EST1 NEW YORK (MainStreet) — Running a small business through a tablet or smartphone is quickly becoming the norm for savvy business owners. While some may have originally bought the gadgets simply for the “cool factor,” users say the productivity and efficiency from the many apps available has been a welcome surprise. For small-business owners reluctant to use tablets and smartphones for tasks simple and complex, now — with the imminent release of the Apple(AAPL_) iPad 3 — may be the time to get aboard. (Apple is expected to announce the new version Wednesday.) Small-business owners reluctant to use tablets and smartphones and their accompanying apps may find that now may be the time to get aboard. It’s clear the iPad and exploding app marketplace are useful small-business tools, says Mike Pugh, vice president of marketing at j2 Global(JCOM_). The company makes apps for cloud-based communications and storage messaging. We spoke with Pugh about best practices for the adoption of mobile technology as full-time business instruments: Why should business owners embrace mobile technology? Pugh: To be able to do more business. [With instruments such as the iPad] they have the flexibility to do business on their own terms. You can do product demos and take it out onto the retail floor or meet in a conference room and have a very well-designed reference of product data. You can show images, show videos, drill down to find information in real time. It gives the customer confidence that the questions can be answered well and on the spot. One of the benefits is the battery life. Many of us use computers and have been stuck in meetings where our batteries drop off. The iPad was the first nonphone to keep with them all day long knowing it would not drop off on them. And if you’re going to rely upon a business tool it has to be there when you need it in order to be truly mobile. Click here for more:

Custom Beverages On Demand

Fast Company has an interesting article about a start-up with a new approach to beverages at http://www.fastcompany.com/1799674/printout-soft-drinks-uflavor-social-beverages Here’s the  post:

Flavor Saviors uFlavor Refresh The Beverage Business With Billions Of Tastes, On Demand

BY KIT EATONToday
uflavor Picture this: You are sitting in, say, a Bermuda hotel on vacation. Suddenly you are struck by a crazy idea for a new soft drink taste. So you dial up a website, and with the guidance of a simple system you digitally mix the ingredients, adding 1% more cinnamon, a dash of lime, the merest hint of mango and control the carbonation to create a fantasy beverage that’ll explode on the tongue. Then you refine the color of the drink, design a label, and order yourself a bottle or two. Soon enough, they arrive in the mail. Now, since the system is social, a person visiting an associated vending machine in, say, Dayton, Ohio, just moments later could be attracted by your drink’s potential, press a button, and have a liquid delivered that matches your design. And you get a portion of the profits. Incredible, right? And don’t overlook the implications, which could be enormous, especially if you manage to craft a drink that’s more attractive than any of the billion-dollar brands that are out there, and the taste catches on. That’s the ultimate goal of new company uFlavor. By now we’re familiar with the idea of 3-D printing, a tech that’s being applied to everything from small plastic parts to human bone to entire buildings in space. The trick is properly known as rapid prototyping, although advances in the tech mean the output from these machines is fast becoming more product grade than prototype-like. In a way that’s what uFlavor is trying to do for soft beverages, printing out spurts of flavor, water, carbon dioxide, and other ingredients through a drinks print head into a consumable beverage. And its instant drinks manufacturing could be to Coke’s Freestyle flavor-mixing machineswhat chef Heston Blumental (him of snail porridge fame) is to McDonald’s menu selection. If you’re reeling at the thought of a flood of nearly identical drinks, in a market that’s already confusing (have you stolled down the soft drinks aisle in a supermarket and just looked at the array?), then don’t. The team behind the innovation spoke to Fast Company, and assured us that they have a couple of core values front and centre–starting with taste. “We’ve done two and a half years of research,” Michael Cloran, uFlavor’s Chairman, explains. “We worked with a flavor house up in Chicago so that we can make these things work…We came at this as technology geeks and some guys that build robotics and could build this thing. But we’ve been completely fascinated in learning about flavors, and that continues. We took some chefs with us to a meeting at our flavor house, and it was amazing watching guys that have been to cullinary school, that are well-known chefs, and they learn about beverages and are playing with the flavors–where you can see sugars and their different curves and how they fade out in the mouth, and the different acids and how they feel, dry or biting on the different parts of the tongue.” So, far from a pedestrian “raspberry with lime or strawberry with cola” mix, uFlavor has the potential to be hugely sophisticated from a food science point of view: Literally millions of flavors, which will appeal to the palate in a different way. “What will come out of this,” Cloran suggests, “is entirely new flavors that the world has never seen before.” It’s radically different than Coca Cola’s heavily brand-leveraged flavor, he argues: “Even in their Freestyle machine, with 100 different flavors, they have their pre-mixed ones in there. And yes, you can create a ‘suicide’ with 50% of that, 10% of this…but you’re just mixing Coke-flavored syrups.” Cola, the team highlighted to us, only has around 15 main ingredients in it, in precise proportions that result in the famous Pepsi versus Coke tastes. But uFlavor lets you control the ingredients down to percentage points and thus experiment with subtle gradations or bold differences that Coke or Pepsi wouldn’t do. But the really clever part is the social sharing aspect. If you’re familiar with Star Trek, (and if you’re reading this, I’m guessing you are), then you’ll know about food replicators–clever part-teleport machines that can synthesize almost any dish or drink on the spot. Captain Picard famously had a recipe for “tea, Early Grey, hot” that he loved. But the system was presumably smart enough that Lieutenant Worf could equally have asked the machine for “tea the way the Captain has it.” That’s roughly what uFlavor has in mind. As well as designing your own drink, you’ll be able to share it. And if by some magical trick your drink becomes popular and people start talking about it and demanding it from uFlavor vending machines, then you’ll have a hit on your hands–aided by suggestions from uFlavor’s system, which learns users’ profiles and their preferences, and then suggests new drinks you may like. That’s the point at which the Star Trek metaphor breaks down and an iTunes one takes over–because you’ll get a percentage fee for every time someone buys your drink. “It’s like the app store model, right?” Cloran notes, “Developers build an app…Well, imagine the first kid that comes up with some recipe and label that goes crazy–and sells a million bottles. Then he gets a check for $150,000 or $200,000 in the mail. That’ll be fantastic–I can’t wait to see that kick off.” It’s very Apple-like, from a business point of view. Says Cloran: “This indirect marketing, we think that’s the magic of Apple. You have all these developers that’re supporting the ecosystem by trying to sell their apps, which then sells iPhones. Well, imagine all these people that can profit from selling their beverages that they’ve created, driving customers to the platform.” In its first prototype iteration, the company’s flavor printer mixes 42 different ingredients at 300 gradations, and they’ve chosen five example novel drinks to launch with–produced by the machine, but without the design-your-own angle, although you can design the label (perfect for branding, say, a kid’s party). In three months they’ll add more drinks, crowdsourced from community voting, and then in three months they’ll have a full manufacturing run of their complete 100-flavor print-head, which will produce delivery-ready bottled drinks at their factory, and ultimately in vending machines. Is this the future of soft drinks? If you were a betting person, you’d love to know the answer to that given the sheer dollar value of the industry. SodaStream, as a recent example, has pulled off a dramatic pivot that took its simple carbonate-at-home drink production model (one that’s been around for decades) and turned it into a highly successful boutique industry. But uFlavor’s offering is a whole level of novelty and sophistication on top of SodaStream’s: By offering billions of flavors compared to SodaStream’s limited number of syrups, uFlavor has the potential to be more popular many times over. It’s not out of the realm of possibility that uFlavor can become a brand name–without its own product– the size of Pepsi. But even if it doesn’t, it suggests that there is a brave new world of food production about to burst upon us, where the consumer can choose flavor, texture, caffeine or vitamin content, and packaging. It will be interesting to see what the marketing industry makes of this.
           

The New York Time’s Stuart Elliot On Seasonal Food Marketing

The New York Times has a great article today on food marketing.  Their Advertising columnist, Stuart Elliot writes about how brands like Pillsbury are seeking to capitalize on the seasonal holidays. You can find the article here:  http://mobile.nytimes.com/article?a=869696 ADVERTISING A Push to Promote Familiar Brands Online
In one section of the Pillsbury Web site, visitors can upload their own family photographs to create personalized versions of a 60-second commercial.
  In one section of the Pillsbury Web site, visitors can upload their own family photographs to create personalized versions of a 60-second commercial.
By STUART ELLIOTT Published: November 18, 2011
BETWEEN now and New Year’s Eve, food marketers are hoping their products become the soup, frosting, snacks, candy, gravy, cereal and stuffing as dreams are made on. The arrival of the holiday season always brings a flood of campaigns for mainstay packaged-food brands sold by companies like Campbell Soup, ConAgra, Del Monte, Frito-Lay, General Mills, Goya, Hershey, Kellogg, Kraft Foods, Mars, Nestlé, Pinnacle Foods, Reckitt Benckiser, J. M. Smucker and Unilever. The volume of such ads has intensified since the financial crisis of 2008, as more consumers try to save money by cutting back on dining out. The phrase “home for the holidays” is more than the new normal for budget-conscious shoppers; it signals an opportunity for marketers to increase sales of popular brands, revive older brands and bring out new brands. More than half of the respondents to a survey released this week by the SymphonyIRI Group, a research company, said they were eating out less often. That does not necessarily translate into happy days for packaged-food marketers, according to the survey, because consumers said they were pessimistic enough about the economy to also take steps like serving less expensive meals at home and forgoing groceries they deem nonessential. That means marketers must wage a battle to get every box, can, bottle and package they can onto the conveyor belt at the supermarket checkout. “We do know what’s happening in America’s kitchens,” said Mark Addicks, chief marketing officer at General Mills in Golden Valley, Minn., whose brands include Betty Crocker, Big G cereals, Gold Medal, Green Giant, Pillsbury and Yoplait. For instance, to bolster the Betty Crocker brand, General Mills is stepping up its presence online: at bettycrocker.com; in social media like Facebook, Twitter and YouTube; and on mobile devices, with apps and a mobile Web site, at m.bettycrocker.com. “We’re trying to play where these new generations of consumers are,” said Geoff Johnson, director for relationship marketing at General Mills, by moving to “push very aggressively on the digital front.” Betty Crocker has more than 1.4 million fans on facebook.com/bettycrocker, Mr. Johnson said, adding, “We feel awesome about that,” particularly because many “are under age 35.” And there are “hundreds of thousands of interactions a month through devices” like smartphones, he added, which is “blowing away our forecast.” There are also promotional efforts aimed at keeping the brand in the spotlight. They include publicizing the Betty 10, a list of 10 “red hot holiday trends” that include “double desserts” like pumpkin pie cookies; publishing a new edition of “The Betty Crocker Cookbook,” with accompanying apps, e-books and an online presence, at bettycrocker.com/BCcookbook; and promoting the 90th anniversary of the Betty Crocker brand character, introduced in 1921 by a General Mills predecessor, Washburn Crosby. The character and brand remain “highly, highly relevant,” Mr. Addicks said, because they are perceived by consumers as “authentic, relatable and helpful.” To underline that, he pointed to sales of Betty Crocker baking products. In the fiscal first quarter for General Mills, which ran from June through August, those sales increased 5 percent from the same period a year ago. “We’re very excited with what we’re seeing,” Mr. Addicks said. Another General Mills brand, Pillsbury, is also wooing shoppers planning their holiday menus. A campaign carrying the theme “Holiday ideas made easy” is getting under way on television, online and in social media like Facebook, where the Pillsbury fan page, at facebook.com/pillsbury, has more than 1.3 million likes. “Holiday is our biggest time of year,” said Liz Nordlie, vice president for marketing for Pillsbury refrigerated baked goods at General Mills, “whether you’re preparing for the high-stakes Thanksgiving dinner or looking for ideas for parties or even, on that lazy Saturday morning, you want a warm sweet roll to enjoy with your family.” The campaign is an evolution of ads that Pillsbury introduced in 2008, which carried the theme “Home is calling.” It includes commercials, in lengths of 15 and 60 seconds, that present the Pillsbury Doughboy character helping a family prepare a Christmas dinner chockablock with products like Pillsbury Crescent dinner rolls, pie crust and Grands cinnamon rolls. The campaign also includes a section of the Pillsbury Web site, at memoriesmadeeasy.pillsbury.com, where visitors will be able to upload photographs to create personalized versions of the 60-second commercial. “The ‘Home is calling’ campaign did a fabulous job connecting with consumers emotionally,” Ms. Nordlie said. “Our new campaign builds on that, but tries to more directly speak to the products and the benefits of the products,” she added, by “showing how easy it is to make our products and how convenient they can be.” “As a marketer, you can get assumptive,” Ms. Nordlie said. “Sometimes you need to take a step back and get back to basics, the basics of your products.” That is particularly true with younger consumers, she added, for whom “we have to do more to introduce our products and show how they can fit into their lives.” Despite the economic cross-currents, “our business is in a good place,” Ms. Nordlie said. “This is our key time of year, but our products have appeal year-round.”
                           

Marketing: Steve Jobs and Jerry Garcia

  by Bob Heyman   Steve Jobs was a cultural icon who had a massive impact on our society with his contributions at Apple. In honor of Steve’s passing,  I would like to repost an article I wrote for OMMA Magazine: Let’s face it. Marketing mobile apps can be a lot like a gunfight at the O.K. Corral. If you are thinking of developing a mobile application, preparing your marketing before the release can mean the difference between success and failure. Just as in Robert Fulgham’s famous book Everything I Need To Know I learned In Kindergarten, everything you need to know about marketing iPhone Apps (and other mobile apps) you can learn from Apple and the Grateful Dead. So what about marketing your app can you learn from Steve Jobs and Jerry Garcia? First, an obvious one: If at all possible, your mobile app must be insanely great. This is the first “Law of Steve.” Steve Jobs built a following for the Apple brand by putting out products that are just that … insanely great. Take iBird, an app that turns an iPhone into an audio-video portable bird-watching guide. It’s a must for any “birder” (many of whom would describe it as insanely great). Another lesson from Jobs is to be early to market. Not necessarily first, but early. Being first to market with an app in your category is a crucial advantage. iBird, which was first to market in its category, is also an example of an app that follows the Jobsian “law.” Like Jobs, build a “pre-buzz.” The press and consumers covet Apple products even before release. Building a pre-buzz with a press release, blogs and social media will result in having customers who are ready to buy at the time of release. Steve Jobs never forgets to advertise: Apple typically advertises new products heavily. Apple doesn’t talk about megahertz and memory. Apple makes the viewer envision the experience rather than the product. You should, too. From the Grateful Dead we can learn the importance of building a community: The Grateful Dead had a massive following of “Deadheads” who often attended multiple concerts. You can call it an early social media network. Your app should build that community, too. Getting users to talk about your app within the app and online will leverage and expand the buzz. Give away free stuff: The Grateful Dead also helped build their strong following by letting people tape their shows and share the experience. What can you give away? Our app client Riff held a contest and gave away a guitar signed by a rock star. Or give away an entry level of your app that will entice users to upgrade to the paid version. Never underestimate the power of free. The Dead never did. Always provide more than expected. The Grateful Dead gave concertgoers more than their money’s worth, playing long shows that went on for hours. Likewise, provide users with more than their money’s worth. Give plenty of “bang for the buck” in your app so users have a high degree of perceived value. In an insightful recent article, The Economist pointed out the similarities between apps and songs. They noted that it cost about the same amount to record a song and to code an app, and that both forms of media sold (on average) for the same amount, about a dollar. They further noted that the “shelf-life” for both media were relatively short and that increasingly both were serving as free “loss leaders” either to get people to come to live music concerts (songs) or to support brands or premium services (apps). As marketing apps becomes similar to marketing music, is it any surprise that there is much to learn from a rock band? And it’s never a surprise that tech marketers have much to learn from the amazing Steve Jobs.

How to Derive the ROI of a Tweet Using Lifetime Customer Value

Excerpt from the new book, “Marketing by The Numbers” with Digital Automat’s own Bob Heyman. How to Derive the ROI of a Tweet Using Lifetime Customer Value Jim Sterne is current president of the Web Analytics Association and a mastermind of social media measurement through his company, Target Marketing of Santa Barbara, California. Speaking at London’s SES 2010 Conference, Sterne outlined a fairly simple way to calculate the predictive ROI value of a social media message. Using predictive ROI is perfectly fair, and it’s worth a column on your ROI grid, provided you can make a good projection of a positive outcome. In his example he used Lifetime Customer Value for a shampoo product to estimate the value of “social media participant.” A participant might be a blogger, a commenter on Facebook or Twitter, or someone passing on a re-tweet or an RSS blog link. Assuming a new customer could provide $29 in profit for the shampoo company over a certain period in product life (let’s say three years), he posited that if 10,000 participating individuals posted or passed along a message about the shampoo, and if 5 percent of them (500) actually purchased the shampoo, and five percent of those people (25) become repeat purchasers, then the value to the shampoo company of any one of the social engaged participants would be a little over seven cents each:

10,000 x 5%= 500

500 x 5% =25

25 x 29=$725

$725 / 10,000 = $0.0725 per participant = 7.25 cents

If you’re a seasoned marketer, the notion that 10,000 potential customers might yield twenty-five actual customers probably makes sense to you. From a predictive standpoint, paying seven cents each to gain those 10,000 potential customers would cost you $725. That’s perhaps worth justifying hiring someone to blog or tweet on your behalf to try it out. To see any return on your marketing investment of $725, you’d have to gain at least twenty-five lifetime customers to break even on the exercise. You might be able to track it if you added a downloadable coupon or coupon code word. But if there were an alternative way to gain twenty-five (or more) new customers by spending less that $725, you’d have to compare results to see if it’s really worth your time and money.

And let’s face it, this is where the sloppiness begins–the potential for large web audiences that can be as big as national television audiences used to be is something that blinds some marketers to the difficulties in really measuring impact of large-scale CPM campaigns. There are strides being made in social media measurment (see Chapter 3) but there are still pitfalls.

With that in mind, we feel the most useful qualitative measurements for marketing ROI are those that belong to the net revenue portion of the equation. Qualitative analysis of results, or projected results, include the following:

  1. Lifetime customer value.
  2. Customer acquisition cost.
  3. Average purchase per visit (web or store)
  4. Order value.
Let’s look at these elements one at a time:

(Average Sale) X (Average Number of Times Customers Will Reorder) =

Customer Lifetime Value

For more information, or to buy the book, click here: http://www.amazon.com/Marketing-Numbers-Measure-Improve-Campaign/dp/0814416209/ref=sr_1_4?ie=UTF8&qid=1293494102&sr=8-4