End of an era: Sex no longer sells for Abercrombie & Fitch

The winds of change are blowing through the department stores of the clothing company Abercrombie & Fitch. Established in 1892 in New York by David T. Abercrombie and Ezra Fitch, the brand was originally a purveyor of sporting goods as well as shotguns, fishing rods and camping equipment. After filing for bankruptcy, A&F was revived in 1978 as a mail order company specialising in hunting clothing. By the early 90’s the company’s direction changed once again, this time by focusing on the youth market and targeting aspirational “casual luxury” buyers. 

Sexualised advertising has become synonymous with the retailer Abercrombie & Fitch and its offshoot brands, Hollister and Gilly Hicks. Shirtless models adore the shop front for each new store opening. Inside the store attractive All-American looking staff make the brand come alive by serving customers with shopping bags featuring the latest fashion pin ups. For almost a quarter of a century, the provocative use of advertising has helped to establish A&F as a leading fashion brand. The problem is, this tactic is no longer working.

Abercrombie & Fitch share price is in free-fall and dropped 39% in the last 12 months alone. Its merchandise appears to have lost its uniqueness and has been labelled as stale and unappealing by the millennial generation they are targeting. The company has also been criticised heavily in the media after comments made by the CEO that the brand is only for "the good-looking, cool kids".

Source: cblltd.co.uk

As part of a major rebranding, the executives at Abercrombie & Fitch are looking to reposition the company and the way they interact with customers. Last week they announced that they would no longer hire employees based on their body type and physical attractiveness. Rather than be known as models, the in store staff will now become “brand representatives”. By the end of July, all sexualised images will be replaced with new advertising designed to portray a more wholesome image.

So where did it all go wrong?

As with so many other successful companies that fell on hard times, A&F simply failed to adapt to a changing marketplace. You could say they fell asleep at the wheel of a billion dollar multinational company and hoped that their reputation alone would sustain their success. They didn’t follow consumer trends or insight gained from market research until it was almost too late. It will be interesting to see if this radical change in direction can help to transformation the fortunes of their flagship stores.

Abercrombie & Fitch has already had several major changes in direction since its creation; this may be just the latest one. To be successful again they must listen to their audience and redefine the brand's image without loosing its history and legacy. If they want to continue selling to a younger audience, they must understand what is “cool” to this segment and find ways to connect to them with effective marketing. Building a better picture of their audience through gaining meaningful insights and foresights is essential in defining the brands image going forward.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

The Forefront of Co-Creation

How can we as marketers work with consumers to co-create brand innovation ideas?

Based on the S&P 500 index of leading US Companies, Professor Richard Foster from Yale University is of the understanding that the average lifespan of a company in today’s contemporary society has decreased more than 50 years in the past century. As a comparative, companies in the 1920’s saw a healthy average lifespan of 67+ years, opposed to today’s companies averaging on 15 years.

What we as marketers need to understand is that as consumers move more rapidly, businesses must become more agile to compete, or they will die. With this being said, businesses are now taking a conscious effort to understand just how important innovation is in order to survive in the marketplace.

Founder of Melbourne based company, Brandhook, Pip Stocks, is of the belief that innovation is the key to drive growth. With that being said, innovation itself needs to be anchored in the undiscovered needs or “pain points” of consumers, and the corresponding solutions need to then be rigorously tested. As barriers fall away between brands and consumers, Brandhook encourages their clients to commit to a co-creation program.

So how can businesses quickly gather insight in a cost effective way and still have the rigor needed to build confidence in the ideas generated?

Brandhook promotes the idea of spending time with your consumers in an “online community”, where you can “hang-out” with a good representation of people who buy your product or service. Over a period of time, you gain an understanding of your consumers' lives, their needs and their attitudes and perceptions to various brands and experiences. Through observing, probing and getting your consumers to undergo a variety of tasks, Pip believes you can quickly and cost effectively gain insight that will kick-off the innovation process.

Head of Category and Insights at H.J. Heinz Company says “ Understanding our Consumers helps us to ensure big innovation is successful, which provides a key platform to deliver sustainable category growth”.

As part of the Masters of Marketing program, the Contemporary Consumer Insights class has the pleasure of listening to the inspiring Managing Director of “House of Brands”, Bryony Ranford. A concept that was discussed was the importance of research in provoking information that will generate innovative ideas. Due to the influx of technology, engagement these days has become highly fragmented and saturated, so the ability to adapt is always paramount. A key factor that resonated with me was that good consumer insights was attained by having the ability to find touch points where someone is receptive to the message you are trying to convey. It is not so much as to the “what” in marketing anymore, but the “how” and “when”.

There is a menu of different approaches we can take to build consumer knowledge, however it’s the innovation, rigour and context we need in ensuring future success.

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

The importance of personal branding

Chances are, if you don’t cultivate your own brand these days you won’t be noticed. Worse still, failure to manage your own brand could result in someone else determining it for you!

Branding has come a long way from its initial meaning as a mark of ownership, such as the branding mark you would find on cattle. It later became a guarantee of quality, as people would burn branding marks into boxes of wine. In the 1870’s trademark registration first came to prominence in America. As brands started to be trademarked, they began to signify quality and other functional benefits which could demand higher prices. 

With the invent of the mass media in the 1920’s, brand became more familiar with what we see today by giving products desirability and emotional attachment to build brand loyalty. In the 1980’s, the world began the process of globalisation that ushered in a new era of brand as a sense of identity. Everything can be branded, from companies to countries and even people.

Source: http://www.ibeamconsulting.com

Personal branding is so important in the modern world as it can help to build credibility and showcase your skills. Building a strong personal brand is also a useful way to connect with your target audience and leave your mark. It can help to distinguish yourself from your competition and focus your energy to help understand what you do best.

To build a personal brand, you might begin by considering what you are passionate about: what are you good at and what does the world need. By defining your brands purpose you can use it to focus your career and life and help it to become alive in the minds of others. Brands are so powerful because they exist in all of our minds, but they can change and evolve over time.

Once you have defined your brand purpose, you need to make it come alive. This could be visually through the clothes you wear or your physical appearance. How you present yourself online is incredibly important in the modern world in which we all live. However, even your choice of ringtone can influence what people think of you and your brand. So think carefully about how you want your brand to be represented and who you would like your brand to speak too.

The Amazon founder, Jeff Bezos, believes “your brand is what people say about you when you’re not in the room”. If a gap exists between the perception of your personal brand and the image you want to represent, you may have to consider rebranding yourself to reach your desired audience. But remember, in life you never get a second chance to make a good first impression, so make sure your brand says the right things about you.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

The “Special” Anzac Centenary Issue – Will this be the end for Zoo Weekly?

Blonde cover model, Erin Pash is featured on the cover of ZOO Weekly’s most recent issue marking the centenary of Gallipoli. Bauer Media publication released the issue on the Monday ahead of the Anzac Day weekend, which included a 10-page feature, an interview with Ms. Pash and a list of “100 things every Aussie should know about Gallipoli”.

In the interview, Ms. Pash was asked if she likes a man in uniform. “Yes, I do like guys in uniform. They’re bad arses, they have guns and they’re really fit and well built”, the model said. The cover, along with its inside features, have been met with criticism from both Facebook and Twitter users describing the magazines marketing as “disgusting”. It was further labeled by Mumbrella as the most unlikely tribute to the Anzac Legend in the media this week.

The Department of Veteran Affairs said ZOO weekly did not seek consent to use the word “Anzac”, which is protected by regulations that date back as far as 1921, for a “commemorative issue” of their magazine. Misuse of the term can incur penalties including imprisonment and fines of up to $51,000. According to Crikey, the department had called and emailed the men’s magazine to request that the advertising be removed.

ZOO’s controversial cover comes after Woolworths was forced to pull its online “Fresh in our Memories Anzac Day Campaign”. Target was also forced to pull three Anzac-branded products after the Department of Veteran Affairs deemed them “inappropriate”. 

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

Pret A Manger CEO reveals truth behind free coffee

Something interesting is happening in the stores of the coffee retailer Pret A Manger. Customers are being given drinks for free. Yes, you heard correctly, FREE coffee for customers!

Shoppers have been left puzzled by the apparent generosity of the fastest growing coffee chain in the UK. After placing an order, some customers have been able to walk away without payment for no apparent reason. On the face of it this sounds like all business sense has gone out the window. But in the ultra competitive world of retail coffee, Pret’s CEO Clive Schlee believes this is a great way to gain customer loyalty.

Image Source: http://www.bluewater.co.uk/en/Stores/Pret-a-Manger

"We looked at loyalty cards, but we didn’t want to spend all that money building up some complicated Clubcard-style analysis," said Schlee. Instead, Schlee has given permission to staff in all 288 outlets to give away free food and drinks to the customers they like the most. The curious freebies have been puzzling Pret A Manger customers for some time. It turns out that 28% of people who have purchased a coffee in their outlets have been given a free item.

This random act of kindness has caused quite a buzz on social media with much speculation as to what criteria you need to get a free drink. Schlee clarified that Pret staff can decide, "I like the person on the bicycle" or "I like the guy in that tie" or "I fancy that girl or that boy". So far the publicity has mostly been positive, but you can’t help but wonder how a paying customer might now feel after seeing another customer get their coffee for free because "they look hot".

By not adopting a traditional loyalty system, Pret A Manger would certainly be less able to collect valuable data about their customers and their spending habits. Analysis of this data can help to devise new strategies for increased profitability for the company. Breaking from the traditional mould has helped Pret to be seen as special and unique. However, they run the risk of not necessarily rewarding all of their customers equally for their loyalty.

While this certainly isn’t a traditional approach to gaining customer loyalty, it will be interesting to see if it is successful and if other companies follow this rather bold approach.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School 

Marketing the biggest fight of the century

When Floyd Mayweather and Manny Pacquiao face off on the 2nd of May, it will go down as the biggest fight of the century. Not since the legendary “Rumble in the Jungle” where Mohammad Ali beat George Forman has a fight been more anticipated.

The on-off saga between the two fighters has lasted over five years, but finally we are about to see a boxing spectacle between two of the undisputed all time greats. This fight will likely go down as the highest grossing boxing event in history.

What makes this super fight so special is that it almost never happened. Major issues have arisen in the negotiations between the two camps for drug testing, the venue for the bout and the fighter’s split of purse. But one of the biggest stumbling blocks has been the marketing of this blockbuster event.

Source: HBOboxing Twitter

While Mayweather was signed to an exclusive multi million dollar PPV deal with TV broadcaster Showtime, his opponent Pacquiao held an exclusive deal with cable rivals HBO. After lengthy negotiations, the two parties were able to reach an agreement to finally make the fight happen. With two networks promoting the fight, it will be interesting to see how the marketing differs for the two boxers who are backed by the different parent companies, CBS and Time Warner. 

Not only is the self-professed promoter Floyd Mayweather the pound-for-pound best fighter in the world, but he is also a marketing genius. His flamboyant spending and egotistical personality have helped to define his brand, “The Money Team”. Through his outlandish behaviour, he has become one of the best self-marketers not just in boxing, but also in all of sport. No wonder last year he was named the highest paid athlete in the world.

In contrast, Manny Pacquiao couldn’t be more different to his ultra-cocky opponent. From his humble upbringing in the Philippines, he has developed a reputation as being a generous philanthropist and ambassador for his home country. In 2010, Pacquiao was even elected to a congress position in the Philippine House of Representatives. No slouch, himself the PacMan comes in at number 11 on the Forbes list of highest paid athletes.

In the world of boxing branding is big business. This goes beyond simply name recognition of a fighter, but what they stand for in the eyes of their fans and critics. I think both men promise an all-action big time event that will be unlike anything we have ever seen before.

I, for one, can’t wait for this fight. But what I am most looking forward to is seeing how the two fighters position themselves with the support of their cable network backers.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

McDonalds Australia transforms fast-food experience

Would you like a brioche bun, caramelized onion and fried in a wire basket with that?

The idea of inventing an inspiring a creative dish leads itself back to the food programs that have taken Australia by storm. With shows such as Masterchef and My Kitchen Rules, society is increasingly becoming more experimental with “gourmet” foods and starting to be more health conscious about what ingredients are going into the food they are eating.

Fast food giant McDonalds has recognised the changing needs amongst their consumers and have developed their own build-your-own gourmet burger service, delivered by “McWaiters” on wooden boards. Lovers of the infamous burger are now able to select their “ideal” meal from a large digital screen featuring more than 20 ingredients. With an introduction of gourmet buns, multiple cheeses and extra toppings, consumers have the opportunity to create flavor combinations that suit their palate.

At a starting price of $8.95, the burgers eat more of your budget than a basic Big Mac or Grand Angus. This innovative concept by McDonalds is the beginning of transforming the fast-food experience in Australia. On top of this, McDonalds is introducing table service, allowing customers to relax with a drink while they wait for their customised burger to be freshly cooked and brought to their table.

Will this idea prove to be successful? Who knows- we will just have to wait and find out!

(Image: Herldsun)

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

Living in a world of Consumption

Today's contemporary society lives in a culture full of consumtion where one must consume in order to survive. However, if you love fashion and consuming carbohydrates, you will love this article!

New York designer Chloe Wise exhibits her artistic interests in her new collection “ Pissing, Shmoozing and Looking away”, of sculptures that look good enough to eat! Through the duality of the word consumption - defined as both an indulgence of food and a surplus of spending - Wise has created a number of sculptures based on the notions of luxury and consumptuon by recreating some of the fashion industry's most notorious merchadise with a diverse range of breads.

Wise states that she “wanted to show the parallels between the idolatry for luxury items in fashion with the equivalent importance of the commodity in the art world”.  Reimagined in pancake, toast, bagels and pastries, Wise recontextualises the pricey products as art objects intstead of purchasable goods, where food and fashion are rid of their value and become soely symbolic of the frivolity of excess.

(Source: Artnet)

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

Mergers & Acquisitions – Brand Building 101

In the past month or so there’s been a lot of talk about different brands in the fashion industry being taken over, or merging with other companies. Although it’s not an unfamiliar occurrence in any industry, two big names have come up in the conversation so far; the first of which is Karmaloop (an online retailer specialising in street wear), and the second is Net-a-Porter (an online retailer stocking luxury womenswear).

Having recently filed for bankruptcy, many different investors have shown their interest in purchasing the cult street wear retailer Karmaloop, but it’s Kanye West’s name which has attracted the most press. Those of you who have been paying attention in the fashion-sphere will know that West has recently been collaborating with super-brand Adidas, as part of what seems to be an on-going clothing, footwear and accessories collection. The Adidas x Kanye West Season 1 show was the most viewed fashion collection of the Fall/Winter 2015 season (beating out Chanel for the first time), and was a line that was positioned at the lower end of the ready to wear market (with Yeezy Boosts only setting you back $350).

Kanye West x Adidas Collection (Source: HIphopdx)

Although the purchase of Karmaloop by Kanye West and business partner Damon Dash has yet to be confirmed, it seems like a match made in heaven as West has previously declared that he’s looking to make his brand of fashion available to the masses, and having his own shop seems like a step in the right direction.

Despite the fact that controversy follows West wherever he goes, he has an undeniable passion for fashion, and a respect for branding that may turn Karmaloop around in a short span of time. When it comes to re-branding, the options are varied, but most of the time it involves stripping all the old associations away from the brand, and building it anew. For West, this could involve bringing in his Adidas for Kanye West line as an exclusive, and then curating the stock-list to support up and coming designers, as well as a complementary list of well-known street-wear brands.

Natalie Massenet – Founder of Net-a-Porter (Source: The Australian)

Putting the sale of Karmaloop aside, Net-a-Porter has also confirmed that it’s merging with rival online retailer Yoox, which has a unisex product offering, but a slightly less ‘luxury’ positioning in the market. Given the combined sales of these two online retailers (US $1.4 billion), the merger makes great business sense, as it aims to bring about greater efficiency in the online luxury sector by grouping resources and leveraging each brand’s strengths and assets. Yoox has been known for its logistical prowess, whereas Net-a-Porter has strong industry ties, and an unmatched stock-list of the most luxury of luxury brands. As mentioned by Net-a-Porter founder, Natalie Massenet, the merger results in the formation of “the world's biggest luxury fashion store…a store that never closes, a store without geographical borders.”

It’s going to be an interesting few months ahead for the online retailing sector in the fashion industry, so for now we’ll have to issue a ‘watch this space.’

Salil Kumar
Current student in the Master of Marketing program at the University of Sydney Business School

Apple’s great leap in to wearable technology

The much-anticipated Apple watch has almost arrived with pre-orders being accepted online this week. Smart watches are no longer a new phenomenon, with rivals such as the Samsung Gear and the Pebble already hitting the shelves over a year ago.

However, this week marks a significant milestone for Apple in to the world of wearable technology. Following the success of both the iPhone and iPad is no small challenge for a company who has a history of innovating and changing the way customers interact with their products.

With more power on your wrist than the NASA computers that propelled man to the moon, wearable tech could be a game changer for marketers to promote their products and services. Some of these changes can already be seen in the tactics used by companies through relatively new platforms such as smartphones and tablets.

Source: http://cdn2.knowyourmobile.com/sites/knowyourmobilecom/files/Array/apple-watch-6_1.jpg

Wearing a device on your wrist is an even more intimate experience for the user, as it quite literally connects them physically to their technology. This brings a whole host of potential opportunities and possible pitfalls for companies looking to reach out to customers. The challenge for aspiring marketers is to take advantage of this new platform by creating new ways to connect using the small but ever present screen. The most effective communications will be short, concise and easy to consume while on the go. Marketing communications that fail to adhere to this criteria could be seen as intrusive and a disruption to the user.

The new Apple watch is able to collect a whole host of data on everything from the user's heart rate to even how many steps they have taken in a day. The wealth of data available to marketers offers a fantastic insight in to consumer habits.  This new platform could give rise to a whole new ecosystem of apps for monitoring health and fitness.

The limitations of such a small screen with no keyboard poses problems of how to best utilise smart watches for marketing purposes. Companies who simply try to port their existing apps to such a small device will likely be unsuccessful. It might be better to think of wearable tech as an extension or companion of existing smartphones and tablets rather than a stand-alone device.

While companies like Apple may find it more difficult to convince us we need a smart watch on our wrist than a computer in our pocket, I am in no doubt that wearable tech is here to stay. Apple has a fantastic track record of success and this launch could be the rocket fuel needed to launch wearable devices to the mainstream. The question is, are we ready for the vast amounts of data that users are willing to share with us?

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Sub-Competition

If only Australia knew what Publix was….the best and freshest supermarket ever! I will admit that Woolworths provides a close rivalry, both in design and services, but for some reason, Publix just makes me want to buy food, and here’s why:

Publix is host to fresh, New York style deli's, even though the chain is typically operational in the South and Midwest of the US. Additionally, these deli’s offer many services, from cold cuts to freshly made sandwiches. When living in the Orlando, Florida area, I began to time my shopping trips around meals, so that I could easily grab a fresh and customised lunch while I ran my errands: completely effortless. Less driving around, more efficiency. I’m sure some marketers spent a great deal of time studying shopping behaviour in that area to find how much people hated driving in the crowded city.

(Source: The305)

Seen above is the outcome of a typical deli order. You can create a meal including a sub, a drink and chips. Sounds familiar right? Well, rumour has it, Publix is about to create stand alone deli services to rival Subway. Talk about a disruption and expansion strategy! Lucky for Subway, previously there were minimal fast food chains pitching health food items, or at least, healthier options. Whereas McDonalds offers a crispy chicken wrap and calls it healthy, Subway always let people customise their wraps to their own taste and health level, such as Whole Grain bread options, or Spinach Wraps, etc.

But now, since us Floridians have been buying our lunch and dinner deli items at Publix anyway, we can plan food stops separately from our normal shopping and spend some more time enjoying it, since Publix Products are made in front of you, instead of coming out of the freezer or fridge, clearly visable.

Interestingly enough, Publix plans to do the majority of its testing with this chain in Florida. But Publix plans on implementing the concept on a more global basis, given that Subway has the most locations of any fast food store (in league with McDonald’s here), and it will be hard to compete on convenience. This is a beautifully tailored disruption strategy, offering a premium fast food option, and the exclusivity should even aid them even more in this instance. I just hope they can come to Australia and everyone here can start loving deli sandwiches - No more Pies!

This semester, our newest cohorts of Master of Marketing students are enrolled in a course known as Marketing in the Global Economy. There, they will learn how to break through such boarders/barriers with products of their own choosing. Strategising and implementing local information will be able to aid them in truly finding a need for their product in certain markets. In this instance, Australians may really not like deli sandwiches, or alternatively, there could be the capacity for the idea to take hold - just make sure you all do your homework before making the jump!

Christine Drpich
Current student in the Master of Marketing program at the University of Sydney Business School

MetaData

Apparently, everyone is up in arms about a new law in Australia being passed which will allow Telcom companies within Australia access to tracking-type information produced by mobile devices and internet usages for personal users.

MetaData is typically known to give up information, such a specific location, particular views, searches, phone calls, text messages and more. The reason why everyone is so up in arms about it is because people want to keep their private life, private. Australians wonder why their government needs to read their text messages in order to provide safety? Additionally, they wonder why they have to pay taxes to the government which will possibly fund the Telcom companies to produce and monitor this data.

The following video explains, in a very funny, yet serious, way, how this very small matter has been made very big, and exactly how it could impact you:

At first, I was listening along, and getting into it. I was feeling kind of angry. Why do they need to know who I call and potentially read my messages in order to keep me safe while temporarily residing in Australia? It was a valid question, until the news cast continued to explain the similar, if not more aggressive, pathways the USA has already implemented for a very long time to elicit the same data from people residing on its soil. Basically, we’re left between a rock and a hard place: Its understandable purely to help keep us safe and pin point people who are not using certain technological resources with ethical/moral intent. But on the other hand, if the Telcom companies are responsible for it, they could simply sell out our information to the highest bidder.

Enter marketing firms, advertising agencies and big businesses who want new moves. This is the exciting stuff. Personally, I even love data mining. It’s way better than reading a story. It’s like reading a story about a bunch of people who are completely real and who can lead you to an incredible amount of new ideas to help make you and your company a whole lot of money! As hypocritical as that all sounds, marketers aren’t the bad guys here. Marketers will simply just want to use the data, should it exist, but also have other means of capturing relevant information about their consumers for the time being.

So what do you think? Should metadata be for sale? Should it be collected in general? And, where do you draw the line between private information and relinquished rights under terms of usage? If you don’t do anything questionable, don’t trigger any red flags, then what do you have to hide anyways? Honestly, there are probably bigger things to worry about then some company checking your search history to identify child pornographers or terrorists who pose potential threat to the greater community.

Christine Drpich
Current student in the Master of Marketing program at the University of Sydney Business School

#Foodporn re-defined

Ok, I admit it. I am a self-confessed foodie! If you have a passion, infatuation or yearning for all things food like I do, and have a secret obsession with Instagram, you would have definitely heard of the notorious hashtag #foodporn. For those that have not, Food Porn is an image or video of irresistible looking food that is created to make you desire what you’re seeing. San Francisco based Lingerie Company, “Naja”, has come up with a new juicy lingerie line that puts the “porn” in “Foodporn” – a cheeky, naughty collection of panties with prints of hamburgers, fries and milkshakes, as well as sushi and sake at the front. If you want the all in one package, your wish is their command. Naja has called their pantie package “the Happiest Meal” for $50! Pretty clever I say.

Source: Naja

What is even better is that a portion of each pair that is sold will go towards the Golondrinas foundation that aims to educate single mothers in Colombia. So not only will you be satisfying your cravings for those meals that are “so bad they’re good”, but you will also be helping a great cause! A win, win I say.

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

Big Bands & Branding – What lies ahead for One Direction?

From left to right: Liam Payne, Niall Horan, Louis Tomlinson, Zayn Malik & Harry Styles (Source: Sugarscape)

In news that had teenagers all over the world gasping for air, Zayn Malik announced his departure from One Direction after spending five years as part of the chart-topping British boy band. As a low-key fan of the group (and dedicated marketer), what I was most concerned about was the impact Zayn’s departure would have on the One Direction brand going forward - especially considering it was up until now one of the most lucrative musical acts to have ever existed.

In 2013 Business Insider estimated the worth of One Direction as close to US$1 billion, with earning sources ranging from concert ticket to record sales, movie tickets, DVD sales, and a wide range of memorabilia and merchandise (including an official fragrance). Forbes also estimated that the group earned $75 million in 2014, and listed them as the 7th most powerful celebrities on social media, 17th in terms of earnings, and 44th in terms of overall press coverage.

So given all these stats, I was left wondering how the departure of one member of this group would impact the overall longevity of ‘One Direction’. If history were any indication, I would predict that like many other bands before it (Spice Girls, Take That, Boyzone etc.), One Direction are headed towards an eventual disbanding, perhaps with one last album and tour under their belts.

Part of the charm of a boy (or girl) band is the togetherness and chemistry between the members, and so to loose a vital player leaves an unforgettable void, and one that will always be referred to with scrutiny and comparison. They’ll never be just One Direction anymore – it’ll always be One Direction before/after Zayn – and this is perhaps the crux of the problem, as although the band isn’t just one person, the balance in personalities is what lies behind their success, and so it’ll be incredibly difficult to fill this void and to carry on without fans feeling like something (or someone in this case) is missing.

Aside from the overall branding concerns, the process of removing one band member from the picture may prove to be an extremely costly exercise – and one that the band may not want to repeat if another member leaves. Not only will all official merchandise need to be updated without Zayn’s signature or face on it, so will the external licensing deals that have proved to be cash cow’s for the band, and will now need to either be renewed, or changed to account for Zayn’s departure.

I would compare this whole situation to someone losing an arm or leg (as graphic as that comparison is), because at the end of the day you can still function to some degree, but your movements will always be limited, and that’s something One Direction will no doubt experience in the years (or months) to come.

Salil Kumar
Current student in the Master of Marketing program at the University of Sydney Business School

Something’s Wrong with this Picture…

I commute to work every day, and I’ve noticed a bunch of interesting advertisements placed in the bus stand media window. First, it was for the old computer game known as “The Sims”, where you build a little life and a house for your virtual character. It was super fun, but even more fun when you figured out the cheat code to make yourself more money and build a bigger house! It was cool to see this company trying to make a comeback for the game. But then, I saw the below ad:

(Photo by Christine Drpich - Waterloo)

Please excuse the sideways and poorly taken photo, however, I think the point is still captured. There are definitely professional athletic Australian women on TV and featured on sports channels! At first glance, I thought the ad and promotion was only featuring men's sports, which would be even worse. But after reading the small print at the bottom, I’ve come to realise it’s actually for multiple sports channels, which go unlisted, but I’m still assuming they highlight women’s sports as well. So why aren’t women featured on the ad?

Your first thought might be, well women’s sports may not have as many followers, and therefore not evoke the kind of revenue that allows them to be televised or afford that publicity. But if they aren’t on TV, then they’ll definitely never be able to achieve a widespread following like the men’s sports. It’s kind of like the question, which comes first, the chicken or the egg? Do you need to be publicised to create the following, or do you need the following to earn you the publicity? Regardless, women work just as hard as men, and often at the same exact sports that the men play. Why aren’t they featured here?

Another thought may be, well, there aren’t as many professional women’s teams, or there aren’t as many games played to be televised. Again, another faulty logic. If that’s the case, all of the teams, individuals, games, matches, etc. that there are, should be extremely well highlighted. Out of all the countries in the world, Australia is one of the most progressive in gender equality, so the least they could have done was highlight some of their female professional athletes who are just as lean and mean as the male rugby players here. I tried to reason through the ad with my little knowledge of Australian sports, and wondered if maybe every male featured on this ad was truly from a different sport. I counted: NRL rugby team member, Union rugby team member, Formula One racer, two soccer players, an AFL footy team member, and then another two rugby duplicates. Those spots easily could have been given to women in those respective sports. Or even women in different fields such as tennis. Australia has incredible tennis players, and tennis is probably featured on at least one out of the billion sports channels you get in this Foxtel package.

It’s kind of sad to see yet another ad missing the women’s perspective. I wonder if this ad was created by a male? To be honest, I didn’t really look for or even acknowledge these small inequalities in ads or publicity, until I attended the International Women’s Day Breakfast as a guest of the Business School about two weeks ago. I was typically of the belief that acknowledging these little inequalities was petty, and only further perpetuated the inequality and the thought there of. However, I would like to see Foxtel redo the ad and incorporate some of Australia’s professional athletic women. They work just as hard, compete just as much, and love their sport and their fans, just as much.

Christine Drpich
Current student in the Master of Marketing program at the University of Sydney Business School

Snickers Cashes in on Clarkson Controversy

The controversial television presenter Jeremy Clarkson has once again created a storm within the senior management of the BBC. Last week the popular yet polarising presenter was suspended after a ‘fracas’ with the highly successful show's producer. The alleged incident occurred after a long day spent filming an upcoming episode which has since been put on hold. The angry presenter launched a tirade of abuse at the producer after catering were only able to provide him with a cold meal for his dinner. The news sent shockwaves through the media in the UK as they began speculating if fists where raised as well as tempers. 

In a clever publicity stunt, the Snickers Brand, owned by Mars, Inc, tweeted a picture of a box of its chocolate bars addressed to the BBC Top Gear studios. The tagline for the brand, “You’re not yourself when you’re hungry”, was posted on the box with the following message: "@JeremyClarkson you may want to have some of these on set next time you are #hungry…" As of writing this has been retweeted more than 5,000 times on Twitter and gained exposure in several main stream media outlets.

Source: Twitter

The challenge for Mars was that people simply weren't thinking about buying Snickers when out and about. So they needed to remind people why, and most importantly when, they could enjoy a Snickers bar. Their TV advertising campaigns were centered on the celebrity diva Joan Collins, who is notoriously highly strung. After enjoying a Snickers bar she transforms into a level headed footballer who has cured her hunger cravings. You're not you when you're hungry moments happen when people were in the vicinity of a chocolate bar and needed the instant fix of a Snickers. Over the 12 weeks of the launch campaign, Mars saw an increase of 705,000 units of Snickers bars sold in the UK.  

The narrative of Clarkson’s latest blunder fit perfectly with the provocative branding used by Snickers. They were able to successfully piggy back off the topical story and gain positive publicity with their core audience of followers. Many companies would not have wanted to associate themselves with the presenter who has previously been in hot water after a string of misdemeanours and allegations of racism. In cheeky fashion, Snickers took the initiative and made the most of the free social media marketing. The hilarious tweet was well received by the media and public, although whether or not Jeremy Clarkson saw the funny side of the publicity stunt remains to be seen. 

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Dolce & Gabbana and The PR Disaster

The last week in the fashion industry has definitely been an interesting one, but what topped the conversation was an interview given by Domenico Dolce and Stefano Gabbana (obviously of Dolce & Gabbana), where they questioned non-traditional family sets, and were quoted saying the following: "I call children of chemistry ‘synthetic children.’"

Although this article fell fairly under the radar at first, it wasn’t until it came into Elton John’s notice that their words began to be picked apart, especially by John himself who posted a very passionate response to the interview on Instagram, defending both his children (who were born of IVF) and family values.

What I wanted to really focus on in this post was how D&G responded to John’s call for people to #boycottdolcegabbana, and whether it was the smartest move given the size and mass-market awareness of the Dolce & Gabbana brand. I personally would have thought the designer duo would have kept quiet, and then issued one statement in which they laid the issue to rest (similar to what Beyonce’s PR team did following elevator gate last year). Instead, what they’ve done is essentially add fuel to the fire by reposting messages of support, or the thoughts and conversation of those who have been marred by their words, on their personal social media accounts (Fashionista.com counted almost 50 instagram posts addressing the topic on their respective pages).

Although I’m no PR expert, from a branding perspective taking a very defensive approach, and drawing out the issue seems very counterproductive. Once the damage was done, they should have just reached out to John and apologised for the misunderstanding (they later regretted their choice words, and clarified their acceptance of all family sets). What they’ve instead done is made people question the values of their brand, and potentially alienated key customer sets who are from or support non-traditional families, or have had children via IVF.

It’ll be interesting to see how this whole debacle affects D&G sales over the next 6 months, but D&G definitely have their work cut out for them in resolving the dissent their words have caused, and re-building positive associations surrounding their brand.

Salil Kumar
Current student in the Master of Marketing program at the University of Sydney Business School

Uber: Breaking through both cities and generations

I was surprised to hear last week some interesting reviews from my friend's parents about how much they loved Uber X. To be honest, I was kind of surprised - could our parents really understand and utilise an app and service that works so fast I almost can’t even keep up? Well of course they can! They’re competent, and intelligent, and most of all, still young at heart - and that’s why I think they really love Uber X.

Uber, the alternative and customised taxi-like car service, has tailored a unique car-pooling service to young college students or part-time available car owners. These car owners can work a few hours a day, with their own personal car (model has to be newer than 2006) and make some money picking up fellow stranded city-goers. Not only does this create jobs that are flexible to people with pre-scheduled activities, but it opens up safer transportation to people who would potentially not have enough money to pay for an official taxi service, or who would drive their own car otherwise and not necessarily be capable of doing so safely.

(Source: uber.com/cities/sydney)

Speaking of affordability, above you can see the base rates and continuing rates for Uber X. In this case, you’re meeting a potential new friend and saving some money! No wonder all of the parents love it. It’s quick, cheap, and has many “on demand” options to fit their needs best. Additionally, our parents have been our long time supporters and budgeters, so they definitely know how to pick a deal when they see one. After all, having an app that stores your credit card information securely, removes the hassle of payment at the end of your ride, customises your ride to your needs, and can pick you up at your exact pin point location, hasn’t really forgotten anything.

Following the type of company Uber runs and the services they provide, you begin to wonder how they even create all of these masterfully solved city “puzzles.” Well, check out their company culture throughout this video.

Company culture is not only an aspect of crucial internal marketing, but it is also the fundamental core of doing business and being adaptable. Companies like Uber that have now gone multi-national, have truly mastered an understanding of people, functionality, and even law in the cities/countries in which they are involved. Additionally, capturing the business and consumer market needs and wants is only half of the business. Again, you have to remember they’ve already solved two core problems in the market that has helped bring to life new jobs: making travel cheaper, and making it more accessible. Some taxi companies may fight the disruptive tactics being utilised by Uber, however, disruption just makes for more creative solutions in the future, so I suggest we sit back and relax.

So maybe I should get back on my Uber X game, as I have only ever utilised Uber Taxi. Additionally, I would encourage my car-owning counterparts at uni to get in on this flexible and accommodating job. You may end up with our Uber X-loving parents in your car, but we kind of owe them some driving around after the many years they’ve done it for us.

Christine Drpich
Current student in the Master of Marketing program at the University of Sydney Business School

The Whole Truth – Personal Brand Building 101

As of the last week, social media has been abuzz following claims that Belle Gibson, founder of The Whole Pantry health and well-being app, may have lied about suffering from a terminal cancer. The context of these allegations is that she’s essentially built a brand out of her personal health journey, and documenting her battle with this illness.

I don’t want to focus on the validity of these claims – that’s Belle’s story to tell, and it’s not productive to speculate on what is essentially a rumour at this point in time. I do however want to draw upon the undeniable power of personal story telling, and how it can both build and completely ruin a brand.

Perhaps the best example of this scenario is that of Lance Armstrong – a cancer survivor and seven time Tour De France title holder who was found out to have been using performance engaging drugs during the span of his cycling career. Lance’s battle with cancer and eventual comeback was a heroic tale of sheer determination and a fight against all odds. This story became the backbone of his brand, and later formed the basis of his sponsorship deals with Nike, Michelob, Trek Bicycles, Easton-Bell Giro Helmets, Honey Stinger and Lance Armstrong branded 24-Hour Fitness gyms. These brands bought into the athleticism of Lance Armstrong, so when it emerged that drugs may have aided his success, his brand story fell through and so did his various sponsorship deals.

Cyclist Lance Armstrong (Source: Esquire)

Where Armstrong’s situation differs from a fellow sportsman such as Tiger Woods (who faced a highly publicised cheating scandal back in 2009), is that Wood’s sportsmanship never came into question – he may have cheated on his wife, but he didn’t cheat in the game, which is why key sponsors such as Nike stood by him throughout the scandal.

So when it comes to personal branding, the key takeaway from these situations is that your brand story (and values) are essentially what consumers/followers/admirers are buying into. When any part of this story starts to fall through, so does the trust people instil in your brand; so always tell the whole truth!

Salil Kumar
Current student in the Master of Marketing program at the University of Sydney Business School