The "SuperSized" Economy; There is no "value added."

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We're headed for more bad economic times. It's not a question as if we're asking, "Are we headed for more economic hardships?" It's a fact. We are. And here's why.
We're headed for more bad times because there's no way to "add value" to the economy the way marketers "add value" to soft drinks by replacing sugar with cheaper high fructose corn syrup. The economy is chock full of artificial ingredients and the only way to return to solid ground is to subtract the "value added" components of the economy that got us in self-induced trouble in the first place.


For example, General Mills "added value" to Wheaties in the 80s by replacing "whole wheat" with non-descript "whole grain." As consumer pull-through diminished retailers began delisting the brand. General Mills had hoped no one would notice the change the same way no one noticed when Coke replaced sugar with HFCS - consumers just drank more because Coke could sell larger quantities (20 ounce bottles vesus 12) for fractions of a cent more. Supersizing was a great way to get a larger share of stomach. But it didn't work with Wheaties. General Mills never gave consumers more product for just a little more money. That was Steve Sanger's fault as inextricably linked to companies such as ADM and Cargill as he is. By repositioning the brand as "whole wheat" again Wheaties increased distribution 24% and won Advertising Age Magazine's recognition as "The Year's Best Repositioned Brand.

The bottom line here is that we've already "SuperSized" the economy the same way McDonald's "supersized us. We found out it was unhealthy. Food scientists are just wonderful.

McDonald's Leverages Wi-Fi

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In it's best marketing decision since Dick and Maurice McDonald put hamburgers on the menu and the Speedy Service System in place McDonald's has given America Free Wi-Fi at 11,500 of 14,000 locations ... an event equally rivaling America's first lunar landing in terms of being able to Socially Engineer or change consumer habits and practices.

McDonald's has long been the bastion of the very young (moms with kids) or the very old (on fixed incomes). It was all they can afford. Now McDonald's has become the McDonald's for "the rest of us." While the maxim CQCQ means that McDonald's will continue to consistently put out the same products, the same way, no matter where you are; free wi-fi access means it's now OK just to go there and hang out. So will you?

I stopped into a neighboring Starbucks. Six laptops paying for wi-fi access and one woman with a brand new laptop from the Best Buy next door desperately trying to log on (newbie). A gentleman delicately explained that you had to pay for the privledge here with AT&T, but the McDonald's down the street had it for free. So I had to pack up my MacBook and head down the street to see.

Yep. Same old crowd and not a laptop in sight. So I ordered a dollar McDouble, sat down and got to work while starting to observe. Within minutes the manager was out at a table (coincidence) with her charts obviously preparing for a meeting. A few minutes later the franchise owner walked in (guess I was right about the meeting - going over numbers). Beaming at me as he walked by came the question excitedly, "So how's the Wi-Fi working!?" "Excellent," I said wanting to assure the man he'd made a wise decision; or that he was lucky for having been tapped to offer free wi-fi. He proceeded with his meeting while I chilled for the next hour and a half.

Same old crowd. No laptops walked in the door, but hey! Guess I'm an early adapter this time around. Find out if McDonald's offers free wi-fi in your community. Go to McDonald's Wireless Connectivity and check it out. Nice move McDonald's. I'm lovin' it! And by the way, the ad in this post is made entirely of french fries. Courtesy of Leo Burnett?

The Myth of Brand Stories

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Of what importance are brand stories? They don't exist. What brand stories can you, the consumer, recite with the ease of a nursury rhyme? And how does that story - as recited - make the brand relevant to you beyond "I like Coke." Can you tell me the story of Coca-Cola, Marlboro or McDonalds - the world's three most valuable consumer brands? What about Nike, Adidas or Oakley? Can you tell me their brand stories? What about Tide, Crest or Mr. Clean? What is their brand story? Is it that only the people that work in these companies think they have a brand story - or is the brand story just marketing speak? On the fringe of my knowledge is Starbucks. I think Howard Shultz started by purchasing someone else's coffee shop in Seattle - then he gave people the love/hate relationship of "you either like dark roasted coffee or you don't." After that, all of the stores started to look and taste the same way - a la McDonald's." So that's what I know of his story, and I'm in the business! In fact, at one time, during Starbuck's rapid growth phase I owned over 40,000 shares.

Oh, I think some people have a brand story, like the Greenwich Village woman who started a shop selling nothing but french fries and offering 105 different dipping sauces. Yes. She has a brand story that is relevant to her customers that know her on a daily basis. And she earns the appreciative nods of those who read about her success. Good going. She has a brand. It is her and her store. But Betty Crocker? Come on, give me a break.