Bud sues Brick over "Lime"

The "King of Beers" has been making a lot of headlines lately. First they scored some media with their response to Coors Light's "cold" billboard, now they're at it again by suing the Brick Brewing Company over the launch of their Red Baron Lime product.

According to the article at Bloomberg.com, the issue is with Red Baron's green label and the use of limes. The beer giant claims that: "Brick’s label will lead people to believe its Red Baron beer is associated with, authorized by or in some way connected with Anheuser". A-B is seeking an undisclosed sum in addition to $500,000 in punitive damages.

Bud Light Lime has been incredibly successful both from an awareness campaign and from Canadian sales. It's no wonder others are trying to cash in on the popular flavour. Even still, flavoured beers - particularly lime - are not new. Mexican beers have been served with a lime wedge since the dawn of time. The ol' "Lime n Lager" has been favoured by many as a refreshing twist on a straight beer.

Some thoughts on this fiasco:

- Bud Light Lime was developed partly with the intention of stealing share from expensive imports like Corona. Red Baron, a value-brand priced around 25% lower than Bud Light Lime, is looking to steal share from the global giant. A-B takes offense to this.

- A-B is suing a tiny brewery with limited capacity and distribution for half a million + the undisclosed amount. How much Red Baron Lime do you think they're actually going to sell?

- This is a classic case of David vs. Goliath that, if anything, will probably help generate sales for Red Baron. Really A-B... choose your battles.

- What's more is that Brick recently settled another lawsuit with Labatt (part of the In-Bev A-B family) over packaging similarities between the Red Baron brand and Labatt's value brand, Brava, which is brewed by the recently acquired Lakeport Breweries.

All this aside, I really hope the courts vote in favour of Brick. This law-suit appears to be a scare tactic more than anything legit and I'm glad Brick has decided to stand their ground this time around. I'm all for defending your IP, trademarks, etc. against legitimate threats or theft, but come on....

...do you really think anyone would be confused by these two packages?

Business Basics.... Research!

This doesn't really fit with my regular Blog topics, but I had to rant a little bit.

Today at lunch, I was browsing through Business Exchange - the free magazine where people offer businesses and related services for sale. Amongst the plethora of cafes, convenience stores and other franchises for sale, one particular business caught my eye.

In Richmond Hill, on Bayview Ave. at High-Tech Rd. (near Hwy 7) there is a small, barely noticeable strip mall on the East side. The North-most unit in the plaza is a restaurant. Over the past 10 years or so, I remember this location being (in order):
- A donut shop / cafe
- An Italian hot-table
- A Persian restaurant (which, for some reason sold Shwarma and Pizza???)
- A casual bistro

Much to nobody's surprise, the current business was listed for sale in the Business Exchange. In fact, I remember asking "Why?!" when I noticed the Bistro opening in place of the failed Persian Pizza place.

I have three words: "Location. Location. Location."

If you're opening a business, you need to do some basic research. First of all - look around you. If your soon-to-be business is situated off the beaten path, hard to see, hard to get to, overshadowed by a larger plaza on the other side of the street with multiple anchors like a huge Loblaws and a Tim Hortons, you probably want to reconsider.

Secondly, you should be able to get some history on your location. If you see that three other restaurants have failed in that location in a 10 year period, a red flag should go up.

Finally - look at the demogrpahics. The next door neighbour to this bistro is a co-operative housing development. That means low-income families. Probably not the type of people that are going to eat at your bistro often, if at all.

There is no guarantee that any business will succeed and every entrepreneur should understand the risk involved. By the same token, there are ways to greatly increase your chance at being successful and one of these is to do your homework.

See you later Honey's Beestro... we never really knew you.

The Dark Side of Twitter

Technology is a double-edged sword. It can help us, entertain us and enhance communication; but with every upside, there is usually a downside, which often comes in the form of people looking to abuse or exploit the technology.

Twitter has become a great way for people to keep in touch. Both individuals and corporations are using this simple blog to engage in conversation with friends, family or consumers. Everything seemed to be going great until earlier this week when Jose Nazario of Arbor Networks discovered a number of Twitter accounts that were using 'tweets' to control a Botnet.

After digging into the Tweets, Jose realized they were actually Base64 encoded commands. It seems the Bot was programmed to receive the RSS feed of the Twitter account (along with other micro-blogging sites) and used these commands to carry out functions.

Further research suggests that the Bot is an info-stealer that has infected a few hundred PCs - mostly in Brazil.

While I certainly don't agree with or support malicious hacking, I have to admit that this is a pretty brilliant concept. I suspect that Twitter et al will be putting filters in place to shut down this type of activity in order to prevent it from going mainstream, but you gotta hand it to the hackers... they're pretty damn creative!

This just goes to show that no matter how harmless a technology may seem, someone will always find a way to exploit it.

Coors Light "Colder Than" Billboard Gets Cool Reception

Yesterday, the Toronto Star ran an article about a Coors Light billboard campaign in BC that played on the friendly battle between Torontonians and West Coasters. Following the "Colder Than" slogans, the billboard featured a frosty can of Coors Light and read:

"Colder than most people from Toronto"

These slogans aren't new and are usually pretty clever. There is also a social campaign where consumers can create their own Coors Light "colder than" slogan for a chance to win prizes.

The catch phrase was meant to be humorous and poke fun at Toronto, which is often labeled the most hated city throughout the rest of Canada. The resentment between the East and the West isn't new and is generally harmless. In fact, it's no different than the age old Canadian tradition of poking fun at our American neighbours (or Aussies vs. Kiwis. Or the Irish vs. the English... you catch my drift).

Yet for some odd reason, this ad generated such an outrage by the sensitive people of Hogtown that Coors decided to pull the billboards and replace them with more generic "Colder Than" slogans.

When it comes to advertising you can play it safe and put out another boring ad that might engage the audience, or you can take a chance and try to be a little edgy. The further off-centre you go, the more people will react to (and remember) your ad. Sure, there's a line that shouldn't be crossed, but in today's supposedly politically correct world, that line seems to be getting shorter.


This ad, which I thought was absolutely brilliant was designed in Toronto by Coors Light's agency DraftFCB. That's right - it was a group of Torontonians who thought up this slogan. While the campaign was only run in BC, it managed to not only get all kinds of press nation-wide, but it also generated 32 PAGES of comments from Toronto Star readers across the country.

Was it edgy? Yes.
Did it capture people's attention? Yes.
Did it cross the line and come across as blatantly offensive? I really don't think so.

I'll leave you with a couple of thoughts:

1) A localized billboard campaign got people are talking about the ad and the brand (good or bad) and scored national coverage.

2) If you were offended by this ad, you really need to lighten up. Honestly... are you REALLY that upset? I suspect that if an ad was run in Toronto poking fun at BC Hippies or Newfies, we'd get a chuckle out of it at their expense.

3) I'm willing to bet that Coors Light sales will jump - not suffer as a result of this ad. Mainly because the people crying bloody murder don't fit into their target demographic anyway.

4) If you haven't already, PLEASE watch the brilliant documentary: Let's All Hate Toronto!

Kudos to DraftFCB for a fun and engaging ad campaign. I'll raise a Cold Certified silver bullet to your team.

I hope to see a billboard over the DVP that reads:

Coors Light: Colder than a Torontonian offended by a billboard about Torontonians

Sampling... does it work?

This post is actually a response to an experience that I had last night at the Rogers Cup with my good friend and fellow marketer Adam...

Sampling is arguably one of the best ways to induce trial of your product. More often than not, people don't know what they're missing if they haven't experienced something new.

There are really only two possible outcomes that can come from sampling:

1) Consumer tries product. Consumer likes product. Consumer continues to buy product.

2) Consumer grabs as much "free stuff" as possible. Consumer tries free stuff. Consumer habits don't change.

Having executed all kinds of sampling in the beer, wine and spirits industry, I can tell you that in order to significantly increase your chance at converting a consumer, there needs to be some kind of experience tied in with the sampling.

Anyone can hand something out free on the street, but if you offer something - anything - that might capture the consumer's attention or leave a lasting impression, there is a significantly higher chance of triggering a response in that consumer that builds enough brand loyalty to hook them.

Let's look at a couple of examples:

Last week I was driving through Yorkville to get to a meeting. At the corner of Yonge and Bloor, I saw a woman holding a bag and handing out samples of (what looked like) laundry detergent. She was not branded. She did not really engage anyone. She simply walked up to people on the sidewalk and handed them a small package if they would take it.

I could write a long spiel about all the things wrong with this, but it seems painfully obvious.

Now let's talk about our experience from last night:

Adam and I are at the Rexall Centre for the Rogers Cup. Prior to the main match, we sit down in the beer garden for a couple of Coronas. A menu board listing the available beverages calls out "Pimm's No 1 Cup" and refers to it as a Tennis Tradition.

I've heard of Pimm's but have never tried it. I'm also not a tennis guy, so thinking that the Pimm's "tradition" might be akin to sipping a mint julep at the Kentucky Derby, I ask the bartender what the drink is all about.

She explains that while she hasn't tried it, it's a cocktail made with Pimm's, lemon-lime soda, fresh mint and cucmber. She then asks if we want to sample a mini version.

Long story short, we enjoyed the cocktail and despite the premium price ($6.85 for a Pimm's cocktail vs. $5.35 for a Corona) we stuck with them the rest of the night. It was so enjoyable that we'll be buying 2 bottles of Pimm's to make these for our friends at the cottage this coming weekend.

Why did this sample convert me? You could argue that I'm a lush... and you would be right. But let's consider the facts.

1) Place - a professional tennis match will probably attract a good chunk of people that enjoy a complex cocktail. A UFC match... not so much.

2) Experience - intentional or not, I got sucked in by the whole "tennis tradition" bit. If this cocktail has a history of being part of tennis, I want to maximize my experience. It's the same as grabbing a beer and a dog at a baseball game.

3) Engagement - the bartender was not there to sample Pimm's. She was not a brand ambassador and admitted to never having tried the drink. But she knew what was in it and the brief conversation we had around the drink engaged me to the point where I became curious.

It doesn't take much to turn a sampling program into an experience. A little thought around where you're sampling, who you're sampling to and how you're going to sample can make all the difference in the world.

The Digital Album - CMX vs. Cocktail

Despite a crazy battle loaded with political drama (among other things), it would appear that digital music has finally come to be accepted and loved. Nothing proved this point greater than Apple's iTunes store being declared the number one music retailer in the world, beating out Wal-Mart in April of 2008.

The one major downfall to digital music from a sales perspective, is that while single tracks continue to sell well, full album sales are down significantly. To help combat this, the "big 4" - EMI, Sony, Univeral and Warner - apparently banded together to propose a digital album format that would include liner notes, lyrics and art work.

The concept was presented to Apple some 18-months ago and allegedly rejected.

Recently, word got out that the Big-4 went ahead to develop their own format, supposedly called CMX. CMX would play independent of iTunes and include everything mentioned above plus video. The news indicates that the format will be soft-launched in November on a trial basis.

Here's where it gets interesting: Despite reports that Apple initially scoffed at the idea of CMX, they recently announced their own digital album format called Cocktail, which is slated to launch in September.

Is this Apple responding to a threat? Can the record labels sell enough music independently to make up for lost revenues on CD sales? Will consumers be receptive to a digital album? (I mean let's face it - everything that made albums worth collecting died along with vinyl).

On one hand, I'm happy to see the labels finally embracing the digital format. On the other, I see two potential issues with this CMX / Cocktail battle:

1) I'm not convinced that consumers who embrace digital music will be receptive to a digital album - particularly CMX if it doesn't play in iTunes.

2) I'm wondering what will happen if Apple and the labels go head-to-head in yet another format war.

You can read more about the two formats in this TIMES ONLINE UK article.

Honesty is the ONLY policy

One of the key elements in social marketing is encouraging open and honest conversation with consumers. Any attempts to secretly fool them or control a message will cause a great deal of harm. Marketers need to understand that consumers who get involved in social media are talkers. Try to pull a fast one on them and they'll be spreading the word like wild-fire, which can ultimately leave you in a worse situation than where you started.

Let's talk about Nissan and their Hypercube contest, developed by Cap C.

The idea behind this campaign was to leverage social media to create buzz around the new Nissan Cube by hosting an online contest that asked participants to use various social media outlets to show their creativity for a chance to win one of 50 Cubes.

You have to hand it to both Nissan and Cap C - they took a huge leap of faith creating this type of campaign when the auto industry was at an all time low and social media still remains a relatively new and misunderstood marketing space.

On the other hand, some scandal in the judging practices landed them in hot water with several contestants who believed the contest was rigged, which ultimately lead to some negative buzz.

Without wanting to go into all the detail, I will say that in my opinion, neither Nissan nor Cap C intended any foul play and have taken reasonable steps to reach out to disenchanted participants.

That said, this is a good lesson in the potential dangers of social media. ALWAYS be honest with consumers. If they're saying something you don't like, the best thing to do is engage them and find out why they're upset and try to fix it. If you brush it off or ignore it, your efforts will backfire on you.

You can read more about the aftermath of this campaign by checking out this article in Marketing mag.

Meaningful Messages

When it comes to getting a key message about your brand out to a consumer, you have about 2 seconds to make an impact.

This leads to a very important question: "What can I say about my brand in 2 seconds, that will captivate my target audience?"

As if that isn't a big enough challenge, consider this: Forrester research shows that in today's world, 74% of consumers don't trust advertising.

What it boils down to is you need a tag line that is going to generate some curiosity. It also has to be honest. Generic claims that suggest the superiority of your product is probably not going to strike a chord with today's skeptical consumers. More importantly, it is super-important that you relate to your demographic.

To put this in perspective, let's look at a couple of good and bad examples:

Brand: Subway Restaurants
Target: Consumers looking for a quick dining experience with healthier options.
Tag line: Eat Fresh
Verdict: GOOD! It's so simple that you can't miss the message. It's food. It's fresh.

Brand: Yoo-Hoo Chocolate Drink
Target: Truthfully, I'm not entirely sure. Mainly because the thought of a chocolate drink (that isn't chocolate milk or a shake) seems really gross.
Tag line: America's favourite chocolate drink
Verdict: BAD! What were they thinking? First of all, what does this tell me about a product that is new in Canada? Secondly, why would I drink something just because it's America's favourite? It's no wonder Yoo-Hoo's presence in Canada came and went so quickly.

Brand: Lakeport
Target: Value conscious beer drinkers
Tag line: Great beer. Fair prices.
Verdict: Good. There is so much competition in the beer market and everyone has a gimmick. Lakeport keeps it real. Their tag line says: "This is who we are. We don't need to lure you in with a wild contest or a bikini-clad girl". While I'm not the buck-a-beer demographic, I appreciate the honesty.

Brand: Volkswagen
Target: Depends on the model.
Tag line: Das Auto
Verdict: BAD! We get it. You're German. It blows my mind how VW went from the formerly awesome "Drivers Wanted" to this! Sure, there was a time when we all believed that German engineering was the be-all and end-all of auto manufacturing but those days are over. Heck, the Hyundai Genesis is getting rave reviews all over the place and 10 years ago nobody who could afford more gave Hyundai a second glance. The auto industry is changing and VW needs to find a better way to engage perspective buyers.

It's not easy, but since you can't constantly re-brand, it is essential that you get your tag line right the first time.

World Wide Why?

In today's world every company needs a website. It doesn't have to be a big, fancy thing. In fact, a quick page or two that tells a potential customer about who you are, what you do and how to reach you can often be enough.

The fact is, most people looking for a product and service will search for it online first. I can't remember the last time I searched through a phone book, mainly because I don't have to. With search engine technology getting better and more websites including meta tags that make them easier to find, there's no reason to spend more than a few minutes trying to find a relevant company to call.

Whether you're a sole proprietor operating out of your home or a huge corporation, there are four general rules that I believe everyone needs to follow when it comes to getting your business online.

1) Choose your domain name wisely. I was recently on a leisurely drive through rural Ontario when I spotted a company that rents and sells mobile storage containers. The company name is COWS (Container on Wheels). Their website: www.cows-usa.com. It costs next to nothing to register a domain name. Why wouldn't they register a Canadian domain for their Canadian business? They don't even need a separate website - just an auto-forward to the main site. This is poor corporate communication at it's best! Your domain name needs to be relevant both to your business and your target consumer.

2) Make sure your e-mail address is relevant to your company. This is another no-brainer. How many times have you seen an ad in the paper or a truck on the road advertising a business where they tell you to contact soandso@hotmail.com? This is an instant loss of credibility. Again, it costs next to nothing to setup a domain name and create an email address @yourdomain.com.

3) Make it somewhat pretty. Some people go all out and post stunning websites with amazing flash, graphics, etc. On the opposite end of the spectrum, you've got companies that designed something using a free web publishing tool that looks like an 8 year old could have designed it (mind you, there are some seriously talented 8 year olds out there these days, but you get my drift). Your website doesn't have to be a work of art. In fact, I prefer functionality over appearance. Your website does, however, need to be clean and easy to navigate. Web design can be done relatively cheaply. Even as a small business, if you don't have the know-how, you should hire someone to build you something simple. When I come across an amateur site, I feel like I'm dealing with an amateur business - again, taking away from your credibility.

This leads me to my final rule:

4) Plan your content ahead. An effective website has all your pertinent information readily available within a click or two. We've become a lazy society and people will spend very little time searching for information on a home page. It is important that you plan your site's content so that a visitor can get to it quickly and easily. If you bury information too deep within your site map, the customer is likely to click away from your site and first impressions can be everything!

Telus Mobility's website used to drive me crazy because I would click on their "contact us" link, then have to click once or twice more to pull up their phone number. They have since corrected that so that their customer service numbers are just one click away from the home page.

Your presence online can say a lot about you and can often be the first impression you give a potential customer. Spend some time, plan smart and invest where you need to. In the end, it will pay off.