Counterintuitive Marketing Hall of Famer of February

Procter & Gamble

Even before the “economic slowdown” or whatever they’re calling it these days, fewer than 1 in 5 companies were growing organic revenues and profits—that’s growth generated by existing businesses—faster than GNP these days.  That’s a pretty disturbing trend.  Now there are two ways to generate organic growth—one is through better marketing for established products and services; the other through the introduction of successful new products.  Given that 77 percent of respondents in the 2007 Most Memorable New Product Launch Survey failed to name a single new product launched during the year—a year that included the launch of the iPhone for goodness sakes!—as disturbing as it is, the trend is not all that surprising.

“It has become increasingly difficult to launch new products and services that really capture consumers’ attention,” according to Joan Schneider, president of Schneider PR, one of the companies sponsoring the study.  Why is that?  There’s a pretty reliable axiom in marketing that says the bigger the problem you can solve, the bigger the market response.  P&G is one company that gets this.  In explaining P&G’s approach to new product development, A.G. Lafley, the packaged goods giant’s CEO, said early in the process P&G brings together the “early-stage innovation with a consumer and customer and see how important it can be for them.  Can it really improve their life?” 

We’re sure P&G isn’t only on the look out for those enormous problems—there’s probably several a little further down the scale that are large or even more moderate that still might make for successful products that will breakthrough the clutter.  But by pushing all ideas and concepts through a problem magnitude filter, P&G makes it far more likely it will invest in, develop, and launch new products that do what seems so impossible these days—capture consumer attention.

Counterintuitive Marketing Hall of Shamer of February

Abercrombie & Fitch

“Cause efforts become ammo for critics” announced a recent headline in Advertising Age for an article that delved into some of the challenges companies face when they publicize their good works, community contributions, and products that address trying global issues.  According to the article, these days “no good deed goes entirely unpunished; high-profile stances on social causes can have unintended consequences; and the water is getting pretty murky as ‘ethical marketing’ encourages consumers and activists to delve into corporate policies in ever-greater detail.”  

Companies walk a fine line with cause-related marketing and other philanthropic efforts.  While potentially powerful from a branding and helping-the-greater-social-good standpoint, they can easily be construed as self-serving and not-exactly-charitable.  When that happens, it’s detrimental for the company and for the charitable organization or social cause involved.  Such is the case with Abercrombie & Fitch, the Ohio-based clothing retailer targeted to pre-teens and teens that has made a name for itself testing the limits of consumer tolerance.

True to form, the retailer gave $10 million to the local children’s hospital to help build an emergency and trauma center which will bear its name.  Yes, a very noble gesture and the hospital was not wrong to take advantage of the firm’s generosity—we by no means want to belittle the act of giving money to anything. 

But, really, A&F stocks thong underwear with sexually suggestive slogans—and we’re not being prude here, some say “eye candy”—for 8- and 9-year old girls, for goodness sakes!  One of the company’s catalogs went to homes across America with the teaser headline on the cover, "Group sex and more!" Inside, readers found articles that essentially encouraged sexual experimentation sans the mention of the risk of diseases and pregnancy, of course. As Dr. Sharon Lamb, a member of the American Psychological Association’s task force on the sexualization of girls wryly commented, now A&F wants “us to believe they are interested in their [girls'] health”?  Furthermore, from a branding standpoint, the choice of “Abercrombie & Fitch Children’s Emergency & Trauma Center” sounds like a bad joke.

At best it looks like A&F is trying to earn some goodwill by trying to give back to a population it earns a lot of money from.  At worst it looks like a superficial attempt at repairing its image with the parents of their core customers.  From a marketing standpoint, this does nothing for the brand and likely little for the business. If A&F truly wants to help the world and build affinity for the brand, figure out and issue or cause your kid customers care about. 

Send your nominations for Hall of Famer and Hall of Shamer of the Month to info@copernicusmarketing.com.