Execute BrandIndex's ownership of BP's consumer perception story

Experts: BP Will Get Past Crisis

How the company's oil spill is testing the limits of branding

May 10, 2010 [EXCERPT]

Just as BP promotes itself as “Beyond Petroleum,” the company’s ever-widening oil slick in the Gulf of Mexico is now beyond branding -- and well into the realm of tragedy. All the same, BP has become a kind of marketing test case, and industry experts are watching the company closely to find out where the limits of brand reimaging lie.

The spill, which could potentially eclipse the 1989 Exxon Valdez’s in terms of its ecological impact, is at the moment providing an ironic commentary to BP’s green-tinged advertising. The question is: When the present catastrophe is finally over, will BP still be able to claim it’s beyond petroleum, or will the accident mark the end of such positioning in the category and put other would-be green advertisers on notice?

Critics and branding gurus say something that drastic is unlikely, but they’re split on the amount of damage BP is likely to incur. One school of thought is that by declaring itself a thought leader on eco issues, BP raised the stakes with environmentalists and consumers and thus had no further to fall. But some argue that BP’s advertising built up enough brand equity and goodwill to ensure it will win back the public’s trust -- assuming it handles the crisis well. (Reps from BP could not be reached for comment on this story.)

But Ted Marzilli, svp and global managing director for YouGov’s BrandIndex, which polls 5,000 consumers daily about their brand preferences, doesn’t believe BP will suffer at the pump. “I’m not sure somebody drives past a BP station to fill up at Exxon or Shell because they’re angry,” Marzilli said. BrandIndex’s data shows that consumers’ general impression of BP is still positive, even though they’re hearing more bad news about the company.

++++

Dealbook Column

June 14, 2010

One Crowd Still Loyal to Goldman Sachs

By ANDREW ROSS SORKIN [EXCERPT]

Lots of people are talking about what is happening at Goldman Sachs. This is a column about what is not happening at Goldman.

Despite all the bad headlines — the accusations of fraud, the talk of a big settlement, the risk, however remote, of criminal charges — there’s an inconvenient truth that’s been largely ignored: Most of Goldman’s big customers are not bolting.

To the contrary, nearly all of the

m are standing by Goldman, despite come-hither looks from Goldman’s rivals.

What gives? To many people, Goldman has become America’s most reviled engine of capitalism. Even now, as thousands of barrels of oil gush into the Gulf of Mexico every day, people think less of Goldman than they do of BP, according to the BrandIndex daily survey of consumer perceptions conducted by YouGov.

++++

BP: Now more evil than Goldman Sachs

Jun 23, 2010 16:55 EDT

banking | branding

There will be rejoicing in the corridors of Goldman Sachs tonight: BP has finally overtaken it in the most-loathed company stakes! Yes, Goldman is still plumbing depths rarely seen in the modern era. But BP, even after putting aside $20 billion and grovelling to the president, continues to implode: it’s now hit a level of -47.6 in the latest BrandIndex poll. That’s not far from Toyota’s low point, which was -52.7 at the end of March, but it’s going to be a much harder fight back for BP than it was for Toyota.

It’s amusing to remember that earlier this year BrandZ put out a piece of glossy research saying that the BP brand was the 34th most valuable brand in the world, worth $17.283 billion. (Love the specificity there.) Is it possible for a brand to have negative value? If so, BP has probably achieved that distinction at this point.

Meanwhile, for those of you keeping count, BrandZ put the value of the Toyota brand at $21.769 billion, post-recall, while the Goldman Sachs brand was worth $9.283 billion, up a whopping 25% from 2009. How quickly these things can change.

++++

BP drilling new depths of unpopularity

Another landmark for BP.

By Jonathan Russell, City Diary Editor
Published: 6:30PM BST 24 Jun 2010

Not how many days the oil leak has been going on – we’re still some way off the century – or how many barrels of oil have been spilt – the estimates are so vague, at anything from 325,000 to 3.2m, it’s hard to pin that one down. No, it’s the race between BP and Goldman Sachs to the bottom of the popularity pile. According to the YouGov’s BrandIndex, BP now has a score of -42.1. Of course I have no idea what that means except that it’s low – and for the first time it’s less than Goldman’s score of -40.3. In fact, it’s so bad that just about the only company that has done worse was Toyota (-52.7) back in the dark days of its car recalls in March. Tsk, that’s just 10 points away from where BP is now and there’s a lot of oil left in that well. It shouldn’t take the company long

Both Mediapost's Marketing Daily and Ad Age do AARP Media Sales/Denny's story

Denny's AARP Pact Is Generating Results

by Karlene Lukovitz, Wednesday, June 16, 2010, 4:58 PM

While it's still early in the game, Denny's is seeing "excellent" results thus far from its new program offering exclusive discounts to AARP members, according to John Dillon, VP, marketing and product development for Denny's Corp.

Denny's implemented its AARP discount program in late March, with two special member offers effective through 2010. Members who show their AARP cards at participating Denny's locations nationwide on any day of the week between 4 and 10 p.m. are eligible to receive 20% off the total check amount for themselves and their guests. In addition, the card entitles AARP members and their guests, on a 24/7 basis, to a standing price of $1 for a cup of coffee.

The move made Denny's the first restaurant chain to offer the association's nearly 40 million members dining discounts on an on-premises, show-your-card basis. Subsequently, on June 1, Denny's signed a three-year agreement with AARP committing to offering AARP members exclusive dining benefits through the agreement's term, although it is not yet determined whether the current discount offers will be continued or whether other deals will be offered starting next January.

Denny's elected to promote the launch of the initial deal offers with a full-page, four-color ad in the May/June issue of AARP The Magazine -- which was received by readers about the same time the deals became effective -- to reach the magazine's 23.5 million subscriber circulation rate base (the largest magazine circulation in the U.S.). While Dillon declines to discuss the cost, the publication's rate card lists a full circulation run, four-color full page at $532,600.

That's no small out-of-the-box marketing investment in and of itself, but the prominent, direct exposure to the association's membership was key in generating what are so far proving to be "very encouraging" results, Dillon confirms. The offers "are clearly resonating with AARP's membership," he says. "We're seeing redemptions increase week by week in these initial stages, and we've gotten great feedback from the members."

Denny's had been considering a partnership with AARP for some time, notes Dillon. The restaurant brand has long had a "strong relationship" with diners in the 50+ demographic, who are already an important part of its customer base, and the rapid growth of this population segment represents opportunities to build on this dynamic, he points out.

"We want to ensure that we are paying attention to and meeting the needs of this valuable customer base," Dillon sums up. "The AARP partnership provides a clear opportunity to foster loyalty and repeat business."

Clearly Denny's, along with many other restaurant chains, also has an eye on attracting first-time 50+ diners who can be won over as regulars.

While Denny's is still finalizing its overall marketing plans for the AARP discount program, Dillon says that efforts will definitely include "more communications to the AARP membership," as well as on-premises awareness-building activities such as highly visible register-toppers promoting the deals.

Many types of companies -- financial/insurance, travel, car rental, retailers and others -- offer exclusive product/services deals to AARP members through the association's two commercial services subsidiaries, AARP Services Inc. and AARP Financial Inc.

However, up to this point, restaurants have made their offers only through an online Restaurant Discount Center on AARP's site, where members can locate participating restaurants (from among about 15,000 nationwide) by geographic area and buy dining certificates at a discount of 70% or more.

These third-party companies are responsible for their own marketing plans/media costs for AARP offers -- meaning their product/services relationships with AARP do not include or require buying ad space in AARP The Magazine or its other publications (AARP Bulletin and Spanish/English-language magazine AARP Viva), according to Jim Fishman, SVP, media sales for AARP.

In line with restrictions on nonprofit entities, AARP limits mentions of commercial partners to the organization's online member benefits listings area and squibs highlighting a few third-party services companies that run occasionally in its print publications, Fishman says.

++++

Denny's Embraces AARP Audience to Combat Sales Slump

Once Known as 20-Something Late-Night Hangout, Chain Faces Increased Competition Across Dayparts

By Emily Bryson York
Published: June 18, 2010

CHICAGO (AdAge.com) -- Denny's, the All-American 24-hour-dining chain, is casting about for an identity. And while a decade ago it was the late-night safe-haven for 20-somethings, it's now making a bet on the AARP crowd.

Starting this month, Denny's will offer $1 coffee to AARP members and 20% off their meals between 4 p.m. and 10 p.m. Bill Ruby, Denny's VP-media and field marketing, said the strategy is simply to reach out to consumers more than 50 years of age who have loved the brand their whole lives. He noted that Denny's itself is 57 years old.

"We're embracing -- because we're open 24 hours -- [that] different dayparts lend themselves to different segments," Mr. Ruby said. "If you look at AARP offers, they're primarily during the week." Weekend late-nights, meanwhile, are intended for young partiers.

Jim Fishman, senior VP and group publisher-AARP Media Sales, in a statement said, "AARP's boomer-plus membership is more likely to visit casual-dining restaurants on a weekly basis than the general population. It makes total sense for AARP members to build a strong relationship with one of the biggest restaurant chains in America, since everybody benefits."

Late-night competition
Only two years ago, Denny's launched a "All Nighter" menu, with items like "potachoes" and dessert nachos, for middle-of-the-night diners with the munchies. But same-store sales have suffered at Denny's, disproportionately to peers, during the recession. This year, the chain is battling shareholders over its spending, in particular its recent Super Bowl advertising promotions. The chain in the past two years has promoted free Grand Slam breakfasts following the game. Denny's is also searching for a new CEO in response to investor unrest.

The chain seems to have slipped with younger consumers in recent years, as fast-food chains have promoted late-night hours and menu items, and brands such as Buffalo Wild Wings have expanded. The wing chain, for instance, offers a full bar, dozens of TVs for any imaginable sporting show and even gaming.

Darren Tristano, exec VP at Technomic, noted that the chain also faces increased competition from upstart breakfast-and-lunch chains such as Egg Harbor Cafe and Five Guys Burgers and Fries, now one of the fastest-growing chains in the restaurant industry.

Sales suffering
Last year, Denny's same-store sales fell 4% at company stores and 5% at franchised stores. During the first quarter of 2010, company-run and franchised restaurants both declined 6%. Although it was the worst year for the restaurant category in a generation, the loss might be particularly troubling to Denny's because the brand launched what was expected to be a brand reinvention around the Super Bowl, with then-new agency Goodby Silverstein & Partners. But despite a strong increase in overall brand buzz, the chain's same-store sales continued to decline.

Moving forward, Mr. Ruby said, Denny's will need to craft promotions and communications that are "laser focused." After all, he said, Denny's doesn't have to be "everything to everyone all of the time."

Mr. Tristano of Technomic described Denny's as a brand "without a clear understanding of what direction they're heading." He noted that Denny's, like other chains, has focused on operations and cost-cutting measures, "but in terms of marketing in order to get more customers in their doors ... it's a difficult time to do that."

Edit and place AARP Media Sales op-ed in Mediapost

Marketers And Boomers, BFFs Once Again?
by Mark Bradbury, Tuesday, June 8, 2010, 7:45 AM

Some things are destined to be together. No matter how often they part ways, they find their way back. Carrie and Big. The Lakers and Celtics. Sandra Bullock and... well, Carrie and Big.

Now, thanks to the recession, you can add mainstream marketers and baby boomers to that list. And the implications of this reunion go far beyond growing corporate bottom lines.

After nearly 50 years as marketers' darlings, boomers lost favor over the last decade, slipping through the cracks of target demos as they hit age 50. Call it oversight. Call it the 50 year itch. But call it old news.

Companies have felt the pinch of decreased consumer spending, and smart ones are realizing that, while America's wealthiest generation may have hit AARP's magic number, they have not stopped spending or exploring new brands. Consequently, market leaders are once again targeting the boomer generation-comprising 76 million people, 59 million of whom are already age 50+.

Examples of this trend can be seen far and wide. Stouffers' "Let's Fix Dinner" campaign targets empty nesters. Jeep has honed in on "cool" grandparents. General Mills and Yahoo are partnering to reach boomers through their health-focused digital "Vitality" campaign. Proctor & Gamble has teamed up with NBC Digital to develop a network of boomer Web sites under the banner "Life Goes Strong."

As the ultimate industry sign of renewal, Tuesday night, the Effie Awards will present its new Boomer+ Award for the second year in a row, honoring marketing effectiveness to the 50+ demographic.

It's important not to overstate reality. Younger consumers still rule in most marketers' minds. The boomer-plus demographic may never be the primary interest of mainstream marketers, but they are increasingly finding their place alongside younger generations as advertisers seek to maximize the ROI of their consumer communications.

Though motivated by a desire for increased bottom lines, the renewed relationship with boomers has broader societal implications.

For starters, boomers are being portrayed in a more positive and realistic light in advertisements, which could shift how society views the 50+ population. The vibrant, active image of Jeep's "cool grandma" can replace traditional stereotypes and reshape our cultural perception of what it means to be in the second half of life.

Additionally, advertisers are learning that they have an opportunity to develop new products and services to meet the specific needs of the 50+ population. This will lead to a wider variety of products and services aimed at improving the lives of people 50+, benefiting not only the boomers, but each successive generation, who will reap the rewards as they move past middle age.

Break out BrandIndex's research on Apple "losing its cool" in Fast Company, TechRepublic

It's Official: Apple Has Become the Man
BY Addy DugdaleFri May 7, 2010

Steve Jobs Big Brother

When the subject of cool, innovative brands comes up, it's a dead cert Apple gets a mention in the first five minutes. It's iconic, makes beautiful products, and has a wow factor that most tech companies would give their eye teeth for. In short, it sets a benchmark. Granted, it's been slated a bit recently for its draconian measures after one of its employees lost something in a bar, but it is almost solely responsible for tech becoming a sexy, must-have item. Each week, a new report shows that market share is up, or that its latest product is going to hit $1 billion in sales in record time--in short, that, one day soon, the world is going to wake up and there's going to be an apple leaf poking out of the top of the North Pole. But is it?

YouGov's BrandIndex shows that among 18- to 34-year-olds, the shine is beginning to come off the Apple brand. Since March 18, when it hit a high of 80.2 on the thumbs-upiness-ometer, it's been slowly falling and is currently hovering around the 66% mark. The survey, which garners the opinions of 5,000 people per day (blimey, what a job that must be) asked respondents the question: "If you've heard anything about the brand in the past two weeks, was it a positive or a negative?"

No prizes for guessing how these young iguys would rate Apple. But then, those guys aren't like everyone.

It's very hard to slam Apple on its hardware and software--both the iPod and iPhone--and iPad--were (and are) way ahead of their time. They had flaws--as does the first-gen version of its tablet computer--but they are incredible devices that have made Apple a household name. Five years ago, an Apple product launch would not have made the the front pages of either the online or dead-tree media. These days, every single news organization knows that anything to do with Cupertino gets page views. Even sites such as Mail Online (the Internet version of a crappy UK newspaper that asks questions such as: Should Women Really Have the Vote? We Gave them Trousers, and Now they Want too Much) is desperate for Apple bites. See?

But what's getting people is their increasingly belligerent attitude to just about anything and everything that doesn't toe the party line. I'll get back to that in a bit. First of all, since it's Friday, I'd like you to settle down while I tell you a fairytale.

Once upon a time there was a company called the Apple Computer Co. It was small, perfectly formed, and it brought out what could only be called the first truly user-friendly personal computer--that is to say, a computer that your mum could operate. It still does that, only this time, it's kids, grannies, and even online dating sites getting in on the act. But it still stayed niche, thanks to a rocky period in the '90s, and Microsoft's dominance of the home computer market. Apple's great marketing technique was to show that it was the plucky outsider with personality, battling against its Orwellian competitors.

Although more of a household name in the 21st century, Apple could never claim to have gone mass market--probably something that Steve Jobs has been itching for since the '70s, but its cooler-than-thou niche never hurt its market share. Although the driving force behind the move from physical music--tapes, CDs, vinyl--to digital, thanks to Jon Ive's baby, the iPod, it became a household name about three years ago, when it offered up the iPhone. And then something a bit weird happened. It still had the Mac-vs.-PC ads, portraying itself as the cute, normal, non-cubicle jockey one--a geek who could get the girl, if you like--but it also had this.

An iPhone ad that showed the phone, guarded by a pair of brawny security guys, traveling down endless corridors, tracked on CCTV cameras by another shaven-headed goon. Was this the moment Apple became The Man, but we were just too dumb to realize?

Media and tech insiders have known for a long time now that Apple guards its image jealously. While Steve Jobs may know that imitation is a form of flattery, he's damned if he's going to let other tech companies muscle in on what he probably now sees as Apple's, and Apple's alone, market. Hence the lawsuit against HTC, a pissy take-down of Adobe Flash, and the small matter of the iPhone 4 leak. (Are we worried about our ingenuous take on it? No--but we did have our lawyers go through it before we published.) Even a minor news item about a German tablet firm changing its name gets the anti-Apple alarm bells ringing. Even Jon Stewart has been at it, with an anti-Apple diatribe on his show last week.

"Apple--you guys were the rebels, man, the underdogs. People believed in you. But now, are you becoming The Man? ... It wasn't supposed to be this way--Microsoft was supposed to be the evil one! But you guys are busting down doors in Palo Alto while Commandant Gates is ridding the world of mosquitoes. What the fuck is going on?!"

What the fuck indeed?

Since it's Friday, I'm going to part the curtains and let a little light in on what we do here in our Virtual Office at Fast Company. Kit Eaton and I spend quiet periods playing a word association game that's like a geeky version of Rock Paper Scissors. Entitled "Google Microsoft Apple Facebook Amazon," we shout out a word (example: Friends! Music! Pants! Ladies! Zoroastrianism!) and then make a gesture that corresponds with one of the five tech companies. Whichever of the five tech monsters has the strongest showing in relation to each word--Facebook for friends, Apple for music, Amazon for pants, Craigslist for--oh, hang on a minute--anyway, you sort of get my drift.

Anyway, what used to happen was that any word with connotations of coolness or greatness in a real or ironic way--Serafinowicz! Marina Abramovic! Kitsune! Brooklyn Hipsters!--basically was a call for Apple. Recently, however, the game has changed. Over-litigious? Apple. Paranoid? Apple. Dictatorial? Apple. Increasingly joyless? Apple.

The new Scientology? Apple.

Break BrandIndex's June brand movers in CNET's "The Social"

July 2, 2010 1:33 PM PDT

Study: Facebook's tarnished brand has bounced back

YouGov's BrandIndex rankings for June 2010

(Credit: YouGov)

Polling firm YouGov, which said in May that Facebook had experienced a notable drop in consumer confidence right around the time of all that negative press about its changing privacy policies, now says that public attitude toward Facebook has taken a turn for the positive. In fact, the social network is YouGov's top "improving brand" for its BrandIndex numbers in the month of June among U.S. adults age 18 and over.

Facebook climbed from a YouGov rating of 2 in the weeks of June 1-15, to 17.5 in June 60-30. To put things into perspective, YouGov's ratings span from -100 (completely negative) to 100 (completely positive). Is it going to be 100 percent accurate? No. But it does fall into line with what's been pretty evident on an anecdotal level--that Facebook has weathered yet another momentary PR fiasco.

In April, Facebook held the third edition of its F8 developer conference, and in turn unveiled its Open Graph API--which dramatically expanded the number of ways in which Facebook member profiles can interact with third-party partner sites. Privacy advocates freaked out, some prominent figures in the tech industry announced that they were deleting their profiles altogether, and negative headlines about Facebook dominated the tech press for some time. But the majority of Facebook's nearly 500 million members simply didn't seem to care, and Facebook does not appear to have suffered any loss of traffic or membership.

It's worth noting that in second place is Toyota, which is also in image repair mode as it recovers from an embarrassing series of car recalls. And in tenth place is Mike's Hard Lemonade, a brand of malt liquor beverage that has historically been thought of as a "girly drink" but which has put forth a male-centric "Lemonade for Grown-Ups" marketing campaign of late.

Ice that, bro.

Bleacher Report's deal with Philly.com appears in Mediaweek

Bleacher Report Inks Deal With Philly.com

July 1, 2010

-By Mike Shields

Bleacher Report, the fast-growing, fan-centric sports Web site has inked a content distribution deal with Philly.com.

The two companies will partner on a co-branded local Philadelphia edition of Bleacher Report, which is known for its mix of serious, hard core sports coverage and irreverent fare—such as The 20 Most Boobtastic Athletes of All Time. The company’s contributors include both established bloggers and self-described fan journalists. As part of the arrangement, Philadelphia-focused columns from Bleacher Report’s collection of local contributors will be showcased on Philly.com/sports.

The Philly.com deal marks the latest effort by Bleacher Report to extend its brand onto top local newspaper sites. Previously, the company has partnered with the Los Angeles Times, the San Francisco Chronicle's SFGate.com, the Houston Chronicle's Chron.com, San Antonio Express-News' MySanAntonio.com and SeattlePI.com. Bleacher Report also syndicates content to national sports sites like CBSSports.com and USAToday.com.