LOOKOUT
The revised tactics of motivational speakers could be significant to other verbal and visual communicators. Gone are the rah-rah success stories. Enter the plaintive tales of failure. While the basic mission is still to inspire listeners to success, the message these gloomy days permeates best when defeat is in the mix. Among the motivational "ins": How I learned from big mistakes; My darkest hour; Candor; Rebounds; Mea culpa; Rocky Balboa. The "outs"? How I made it big; Bright moments; Unswerving success; Me-me-me-me; Undefeated.
Audio and visual effects on packages are expected to begin this summer, announced licensee International Paper and Power Paper, a small Israeli company. International Paper has licensed the use of an ultrathin flexible battery, developed by Power Paper, that can be rolled off a press like ink onto paper. Claimed to be environmentally friendly, it can be safely thrown out with the package. One potential use among many: flashing a product's logo on a package in multiple colors. By 2003 International Paper plans to produce more than 500 million "e-packages."
The economic slowdown has put management back in control again. As the economy boomed, "the pendulum swung from bosses having all the power to employees having a lot of it," notes executive recruiter Pat Cook. Now the pendulum is swinging back again. Management needn't dish out big raises to retain employees nor provide an employee-friendly work environment. Dress codes are back in. Personal phone calls, out. Many bosses, thinking of the long run, continue to reward and advance valued workers. "If you don't treat your employees right, you can't service your customers," cautioned Barbara Bridger, corporate vp, human resources, at Butler Manufacturing. "You have to do even more in a slower economy."
3D avatars are achieving new popularity on the internet. Improved technology has made avatars more realistic, with easier to control arm and leg movements, providing a more humanlike presence. Coca-Cola recently launched an avatar-populated site. British Telecommunications is test-marketing avatar e-mail and message-speaking software. To keep avatars from becoming just a passing fad, critics say, improvements are a must. The 3D images are not realistic enough. Conversation is carried on in text and slow internet connections try one's patience. Costs can soar, depending on the realism sought. Still, avatar boosters are investing in avatar sites where revenue is generated from advertising, merchandise sales, subscriptions.
The jury is still out. Competitors and corporate clients are waiting for the results of several campaigns launched recently by prominent law firms. One, for San Francisco's 950-lawyer Brobeck, Phleger & Harrison, constitutes a $3.5 million campaign said to be the first nationwide tv advertising by a major corporate law firm. Another has built a print campaign around a "tenacious but approachable" bulldog. Still another features a jungle cat to combat the perception of stodginess. Then there's the surfer making waves about one firm's internet prowess. All in the rich, powerful legal profession await the decision even as the fierce competition magnifies.
A $10 million grant by the Henry Luce Foundation to the Smithsonian American Art Museum in Washington will make possible the exhibiting of 5,500 works now in storage. Included in the retrieval: Impressionist and Gilded Age paintings, African-American and Latino art and New Deal commissions of the 1930s. The new Luce Center — to be housed in the Old Patent Office Building — will double as a research institution when renovations are complete.
The price gap between Priority Mail and private delivery systems has been so marginalized, many mailers are switching back to private delivery services. Priority Mail's steep rate increase means that UPS and FedEx — in some cases — can be more economical. Example: A two-pound Priority Mail package costs $3.95 from New York to Chicago. UPS would charge $3.76, FedEx $3.71 for guaranteed three-day delivery. Both the latter offer sophisticated package-tracking capabilities which the U.S. Postal Service doesn't. Whether the rise from $3.20 to $3.95 was a big mistake, time will tell. Meantime, large catalog and merchandise mailers are saying, "There are a lot of alternatives out there."
"Not giving up on the web," say some bricks-and-mortar merchants. This includes Bloomingdale's and Macy's, who claim to be pushing ahead with their web and catalog operations. Retail consultants have advised clients that customers who shop at both online and offline stores spend more than those who shop at one or the other. A study by McKinsey & Company found that "multichannel" shoppers spend more than twice as much as single-channel shoppers. Despite this counsel, most traditional retailers have slowed their web investments, sighing with relief that the e-tailer-only enemy has been clobbered — at least for now.
"What Women Want" is not just the theme of a Mel Gibson comedy, but of a serious new study by Saatchi & Saatchi Collaborative Marketing titled "What Shopping Means to Women Today." The study's foundation: the store is becoming a medium as important as tv, newspapers, or the internet. President Mel Korn believes that retailers and brands must work together to deliver customers' needs. The four main types of retailers — grocery stores, drugstores, mass merchandisers, and club stores — require different marketing messages. "Those responsible for moving goods through each channel have to understand how to communicate in each environment," Korn concludes.
Merrill Lynch has abruptly switched from targeting the economic masses to the richest classes in its new campaign. Aimed at America's wealthiest — those with $1 million or more to invest — the J. Walter Thompson visuals are packed with images of the rewards of affluence. Upscale magazines, cable and radio in the top economic cities have supplanted network tv advertising. Several years ago, Merrill started calling its brokers "financial consultants." "Wealth management" is how executives describe the firm's business.
Motion-picture advertising projected on the walls of subway tunnels? The possibility exists as several companies compete to develop the techniques. The idea is to use the subway tunnel walls like flip-books — one image on a page, changed slightly on the next. With rapid flipping, the image appears to move. Most interested in the revenue source medium — the London Underground people. But installation problems and safety considerations are holding back the green light.
Heritage tourism — estimated at $30 billion in 2000 — has become one of the fastest growing sectors in the tourism business. The core reason: the desire of travelers to visit sites relevant to their ethnic heritage. Museums devoted to Jewish themes like the Holocaust, for example, have drawn record attendance totals. African-American museums are also posting huge gains, spawning more than a dozen new or major renovated openings this past year.
Better looking people have a competitive edge in the workplace, according to studies by two economists. And, surprisingly, the economic rewards for the above average are greater for men than for women. Below average men made 9% less than the more attractive. However, the economists conclude the earnings difference between bottom and top can be equalized by about a year and a half of extra schooling.
For clients with smaller budgets, WPP — the world's largest agency in terms of billings and revenue — has formed a new agency network. Specializing in creating campaigns for advertisers in the $50 million to $100 million range, this fourth WPP network combines several existing agencies — including Cole & Weber, an Ogilvy unit with offices in Portland, Oregon, and Seattle, Conquest, with 14 offices in Europe, and Batey Advertising in Singapore.
Real estate developers have begun to integrate potential outdoor billboard space in their new building construction plans. The pre-planning is said to make local government approval easier. Mostly, the new 500 to 10,000 square foot wall displays can rent for as high as $60,000 a month. 31 billboards have been included in the huge Sunset Millennium project under construction in West Hollywood. Carefully designed to blend with office buildings, retail stores and a hotel, the advertising revenue was called a "critical component" in assuming the project's viability. But political opponents claim building billboards are a "source of blight" and visual distraction to motorists.
"The internet opportunity is still largely ahead of us," says John Doerr, super-venture capitalist. What's behind this optimism from Doerr and other prominent Silicon Valley investors? First, they believe that the internet's new computing and networking architecture is ripe for exploitation. Second, they see this leading to the start of the "evernet," where an endless array of digital devices will be connected to a high-speed, broadband, multiformatted web. Standing out among these are mobile internet devices, projected to number over a billion by 2005, spearheading the path for a mobile commerce boom.
Emotional impact of p-o-p can now be measured beyond what focus group participants reveal, maintains research developer Sensory Logic. The biofeedback technique places a flexible band around the hand, patches over the eyebrow and cheek. Participants are tested one-on-one using four to ten stimuli during 25-minute sessions. Data obtained combines measurement of involuntary reactions with analysis of conscious responses. Sensory Logic claims it can measure the impact of a portion or of an entire display, comparing the responses with those of alternative designs.
Caffeine — the world's most popular drug — is drawing unusual attention these pressure-filled times. Books and organizations by the score are pouring out the pros and cons of sipping coffee, tea and cola — the world's three most popular drinks. "Wake up to the hidden dangers of America's #1 drug," warns one. Another blames caffeine for aggravating most marital disputes. Coffee-boosters rebut with an old expression born when coffee was seen as replacing beer: "Coffee — from the alcoholic to the workaholic."
The top ten domestic airlines' service rankings have been published by the Department of Transportation. For the 12 months ending October 2000, Northwest was best for "flights arriving on time," followed by TWA, Delta, Continental, Southwest, American, US Airways, Alaska, America West, with United the worst. For "mishandled baggage," the worst was America West, followed by TWA, Southwest, Continental, American, United, US Airways, Northwest, Delta, with Alaska the best.
Job interview questions that shouldn't be answered — headhunters, career counselors, employment agencies advise — include these illegal queries: Are you a United States citizen? How old are you? What is your marital status? To what clubs or social organizations do you belong? How tall are you? Do you have any disabilities? Have you ever been arrested? If you've been in the military, were you honorably discharged?
"Desk rage" warning signals have been unfurled by two experts in the subject: Mitchell Messer, director, Anger Institute, and R. Brayton Bowen, president, Howland Group. To tell if an associate may have reached a breaking point, they point at these possible symptoms: Skipping group lunches; Coming to work late; Calling in sick frequently; Withdrawing from office banter; Obsessing on seemingly insignificant matters.
Videophone sales hit 260,000 units in 2000. With some models selling for less than $100, it is estimated that more than two million new customers a year will be added by 2005. Some analysts question whether videophones will really catch on with home buyers. Right now, not all videophone models talk to one another; there are complaints about the video quality. The need to straighten the room and dress up each time the phone rings is also troublesome. Users today remain mainly business-to-business.
Upscale restaurants, hit by a sudden slowdown, are starting to court diners again. Promotion offers are back in style, serving sizes increased, special menus developed. The Palm chain has expanded a program that rewards diners with everything from free meals to Caribbean trips. New York's Tupelo Grill is sending thank-you e-mails to customers and inviting them to special events. While moderate price restaurants haven't been affected yet, history reveals that they, too, will need aggressive promotion to keep the pots boiling.
To combat employee stress incited by layoffs, takeovers, stock price volatility, a number of companies are adding gyms and meditation centers. Squeezable stress balls are ordered for the afflicted. Silicon Valley interneters are offering employees paid vacations to unwind. Mainly, however, workers have to deal with their anxieties alone. One expert's suggestion: reduce the information overload that instills a loss of control. Cut down on e-mail, voice mail, faxes, snail mail, cell phone use, radio and tv listening, negative conversations. But, these same experts warn not to cut stress out completely. It's what drives progress. Find a happy medium.
Some magazine advertising has held up surprisingly well this first quarter. Conde Nast, publisher of Vogue and other glossies, reports advertising pages up 2% to 3%. Town & Country and Harper's Bazaar, by Hearst, claim a slight uptick. Analysts believe this stability comes from the fact that high fashion and luxury goods advertisers are somewhat immune to economic fluctuations. A few advertisers are boosting budgets to take advantage of wary competitors. Magazines relying on technology advertising sing a different tune. Red Herring and Industry Standard have sliced staffs considerably. Business 2.0 closed a spinoff after one issue. Whether recent rate rises will pass through without discounting depends on the economy. Most worrying media and clients alike: the advent of a doom and gloom consumer attitude that could spiral into self-destruction.
10 diet and health megatrends over the past 30 years are published in the recent Nutrition Action Healthletter. 1. Americans are growing fatter. Close to 60% of men, 50% of women are overweight. 2. Heart attack and stroke death rates have plummeted thanks to healthier diets, lower cholesterol and blood pressure drugs, less smoking, better treatments. 3. Death rates for lung, colon and prostate cancer are falling because men are smoking less and doctors are getting better at detection and treatment. But smoking has soared death rates from lung cancer in women. 4. Serving sizes in restaurants have ballooned, adding unseen calories. 5. Drugs to lower cholesterol and high blood pressure have shot up dramatically. 6. Diet supplements mount; 42% of adults take vitamins daily and 23% use herbal supplements. 7. Food safety precautions have progressed substantially. But there's more to be done. 8. Eating out has doubled. Studies show that people who eat in restaurants more are more likely to be overweight. 9. "TV-couch-car-computer potato" best describes the sedentary American. 10. Food marketing and advertising have leaped dramatically for soft drinks, candy, snacks and restaurants.