Monthly Archives: February 2014

Ice Trucking in an Entirely New Way

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Not every product can easily show how it is different from competing products. Some products just seem to have utilitarian purposes and are less than exciting to market. For example, how does a tire company illustrate why its product is superior to another tire? Or in this case – how does a car battery stand apart from other batteries and prove that it can withstand freezing cold temperatures in the polar vortext season?

Canadian Tire, located in Ottawa, faced this issue head-on when it created an exciting, innovative marketing campaign featuring the coldest vehicle possible – a 15,000 pound truck made of ice! The company, Canada’s leading retailer of automotive goods, struggled to clearly show how its batteries excelled and to make the product exciting to consumers. The key selling point was to test, and prove, that the battery could reliably start a car in temperatures as low as minus 40 degrees Celsius.  Starting with a 2005 GMC Sierra chassis, the truck frame was reinforced and welded (ice doesn’t bend); extra fans and cooling were added so that the engine wouldn’t melt the ice. The battery did indeed start and drive the car – even gaining a Guinness World record in the process. The advertisement was a resounded success, but alas, the truck eventually melted.

Group Activities and Discussion Questions:

  1. Show the Web site and videos: http://www.canadiantire.ca/icetruck
  2. Discuss the importance of developing a clear, concise message for marketing programs.
  3. Use a pyramid model to build the key messages: Top of pyramid – most important message that the customer wants to hear. Middle of pyramid – how the product achieves its value for the customer. Bottom of pyramid – proof points used to validate claims.
  4. Divide students into teams. Have each team develop a key message pyramid for the battery product.
  5. When debriefing the exercise, make sure to emphasize to students the difference between what a company wants to tell the market, and what a customer wants to hear about the product.

Source:  New York Times, other news sources, 1/20/14

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Competition for Online Razor Business

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Dollar Shave Club has carved out a nice market niche with its funny videos, low cost products, and strong brand recognition. The company has done quite well, building from zero to a multi-million dollar company. In one year, it has gone from advertising only via viral videos to an estimated $10 million brand advertising campaign on ESPN’s Rose Bowl. But Dollar Shave Club is no longer the only game in town online for razor sales.

Enter a new upstart: 800Razors. The company has an exclusive e-commerce deal for razors featuring Schick blades and projects it can capture 10% of the market in the next 10 years. While its current revenue is estimated at $1 million, there is definitely a market worth fighting for: annual sales are more than $1.8 billion in offline sales of razor cartridges. (Gillette controls 81% of the U.S. razor cartridge business; Schick has 17%.)

Which shave do you prefer? Compare the two companies and decide which approach and product line will win.

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Review 800razors products and Web site (www.800razors.com).  Compare this with Dollar Shave Club (www.dollarshaveclub.com).
  3. What other products and companies are competitors? Place those on the positioning map.
  4. Divide students into teams and have each team develop a positioning map for this product.
  5. Have each team draw their map on the board.
  6. Debrief exercise.

Source:  Ad Age Daily, 1/6/14

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