Monthly Archives: July 2021

by | Wednesday, July 28, 2021 · 7:51 am

Mac & Cheese Ice Cream

The location of a product on the product life cycle is an important indicator of how the product should be marketed. After all, there is no reason for a Super Bowl ad for a product in the declining stage. But how do marketers bring new life and positioning to mature products. Well, Kraft has done a good job with this summer’s new ice cream flavor.

It’s the time of year when the demand for ice cream is at a peak. Favorite flavors include, chocolate, vanilla, strawberry, rocky road, mac and cheese, chocolate chip… Wait, what? Mac & Cheese flavored ice cream?

Yes, you read that correctly. In a new food mashup that takes advantage of its reputation as a traditional comfort food, Kraft Mac & Cheese Ice Cream was (briefly) available to help quench our summer desire for cool treats. Kraft worked with Brooklyn-based Van Leeuwen ice cream for a co-branded product that looks suspiciously yellow and supposedly tastes like mac and cheese.

The new flavor was only available online and at 23 Van Leeuwen shops in New York, Los Angeles, and Houston. Unfortunately for fans, the gluten-free ice cream quickly sold out.

This isn’t Kraft’s only mashup. Last year Kraft teamed with Cheetos for Cheetos Mac & Cheese in three spicy flavors: Bold & Cheesy, Flamin’ Hot, and Cheesy Jalapeno. These types of food combinations – mashups – bring renewed interest to old, familiar foods and flavors. It’s also a perfect blend for social media postings to involve old and new consumers.

What else could use a mashup?

Group Activities and Discussion Questions:

  1. Poll students: What are their favorite ice cream flavors? Has anyone had a uniquely produced ice cream?
  2. Discuss the marketing appeal of unusual product mashups.
  3. Show the ice cream Website: https://vanleeuwenicecream.com/product/kraft-mac-and-cheese/
  4. Show video about the product: https://youtu.be/x12V_AyLA2w
  5. Where is ice cream on the product life cycle? How about Mac & Cheese?
  6. Where is the new product on the PLC? What is the expected length of the cycle?
  7. Divide students into teams. Have each team choose two brands for a mashup product.
  8. How should these new products be marketed?
  9. What are the potential results?

Source:  Ad Week; NPR; other news sources

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by | Monday, July 26, 2021 · 7:49 am

Peloton Recalls Treadmills

Peloton has been riding high for the past year as gyms closed and people took their fitness routines into their homes. Peloton stock and sales are at an all-time high. To be clear though, high sales volume has given the company problems with supply chain and manufacturing during this time period. It even has a recall due to problems with broken pedals on its bikes which caused injuries.

However, a more recent and critical problem for Peloton has been a number of cases of injury to adults, children, or pets being pulled underneath the rear of the treadmill. According to the U.S. Consumer Product Safety Commission (CPSC), there have been at least 72 reports of adults, children, and pets being pulled under the treadmill, including 29 reports of injuries to children and one death of a six-year-old child. Serious issues indeed.

The recall notice was issued by Peloton, but only after an urgent warning from the CPSC that forced the company to change its initial stance about the problems. Peloton is now offering a full refund for owners of the treadmill.

What should companies due about hazards to consumers?

Group Activities and Discussion Questions:

  1. Discuss the components of public relations and crisis communications.
  2. Show video about the problem: https://youtu.be/RiAjg4RXLMQ
  3. View Peloton’s statement on its website: https://www.onepeloton.com/press/articles/tread-and-tread-recall
  4. Show the U.S. Consumer Product Safety Commission recall notice for Peloton: https://www.cpsc.gov/Recalls/2021/peloton-recalls-tread-plus-treadmills-after-one-child-died-and-more-than-70-incidents
  5. Show additional recall notice for a separate Peloton recall: https://www.cpsc.gov/Recalls/2021/peloton-recalls-tread-treadmills-due-to-risk-of-injury
  6. What are the basic components and steps to handle crisis communications?
  7. How did Peloton initially handle the problems? What did they later do?
  8. Divide students into teams and have each team select a company/product. Then, have teams determine the steps to take during a crisis for that company.

Source: CBS; CNBC; New York Times; other news sources

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by | Tuesday, July 20, 2021 · 7:37 am

Netflix Launches Netflix.shop

Movies have long generated revenue from sales of merchandise related to the shows (think Disney). According to trade group Licensing International, sales of licensed products tied to shows was roughly $49 billion in the U.S. in 2019, and $128 billion globally. That’s a big number and one that has attracted Netflix to enter the market with its own merchandise line and shop.

Not content to have us all streaming entertainment constantly, Netflix now wants us to shop on its platform, too. Netflix has launched an online store with items that are highlighted in its shows. While Netflix holds a dominant lead in streaming, it also needs to have new sources of revenue in order to expand. Competitors such as Hulu and HBO Max charge streaming fees, but they also show commercials to generate additional revenue. Netflix does not have that revenue stream.

The new online store will sell apparel, merchandise, and collectibles from favorite shows such as “Stranger Things,” “Lupin,” and other shows. Limited edition street wear and action figures based on “Yasuke” and “Eden” (anime series) are now available. Lupin merchandise includes baseball caps, shirts, hoodies, throw pillow, and even a side table. All of the Lupin products were designed and produced in cooperation with the Louvre Museum. Future products will be based on popular series including “The Witcher” and “Stranger Things” along with Netflix logo apparel.

This isn’t Netflix’s first foray off screen. It has previously created video games based on popular shows and has agreements with department stores to sell products as well.

What will you buy?

Group Activities and Discussion Questions:

  1. Poll students: What movies and shows can they list that have licensed products for sale?
  2. Have they purchased items related to these shows?
  3. Show Netflix’s new store: https://www.netflix.shop/
  4. Discuss the various promotional tactics that can be used for marketing a product. Have students come up with tactics and list all the tactics on the white board (ex: billboards, print, direct mail, etc.).
  5. Divide students into teams. Have each team outline a marketing plan for Netflix.shop and have each team select three different tactics. For each tactic, explain why it was selected and how it will be used.
  6. How can this plan be expanded to new geographies outside the U.S.?

Source:  New York Times; Reuters; other news sources

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