Tag Archives: promotion

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

Leave a comment

Filed under Classroom Activities

Food Trucks and the Pandemic

There is no doubt that the pandemic severely impacted restaurants and the food industry. Many restaurants shuttered their doors and thousands of employees were out of work. While some restaurants were able to pivot to providing take-out food rather than in-store dining, food trucks seemed designed to handle the pandemic.

Food trucks are rolling restaurants that can go where the demand is at and meet consumers where they live, work, and shop. They can follow the customers and move to a new location when demand at one location falls off. Food trucks are flexible, can be innovative with menus, and quickly became a sought after option for diners who missed restaurant food!

According to IBISWorld, there are 26,228 food truck businesses in the U.S. as of 2021. There has been a 6.8% growth in the number of trucks and 7.5% increase in business growth from 2016 to 2021. While food trucks are labor intensive, they are also flexible in operations and products, as well as cheaper to start than a fixed restaurant location. The food truck market size is now more than $1.2 billion in revenue annually.

However, even food trucks need promotion. Many trucks launched social media advertising campaigns, as well as added credit/debit card payment options. Uber Eats and Grub Hub also became delivery options for food truck diners. Trucks have also relocated from city centers and large festivals, to suburban locations and local street fairs. As food trucks move to better integrate social media and work to connect with customers, online menus and orders have become necessary.

Yum. Are you ready to order?

Group Activities and Discussion Questions:

  1. Discuss the various promotional tactics that can be used for promoting food trucks.
  2. There are videos available on YouTube about food trucks: https://youtu.be/gZgmmzw3-30
  3. As an example, show various websites for food trucks:
    1. Tacos el Jery: https://www.tacoseljerrywatsonville.com/
    1. Blue Sparrow: https://www.bluesparrowpgh.com/
    1. Shiso Crispy: https://www.shisocrispy.com/ 
  4. Show website a national listing of food trucks booking and ordering ahead – Best Food Trucks: https://www.bestfoodtrucks.com/
  5. Have students come up with tactics and list all the tactics on the white board (ex: billboards, print, direct mail, etc.).
  6. Divide students into groups to work on this exercise.
  7. For a food truck (their choice of food and geography), have each team select three different tactics. For each tactic, explain why it was selected and how it will be used.

Source:  IBISWorld; New York Times; other news sources

Leave a comment

Filed under Classroom Activities

2021: Super Bowl 55 Advertisements

Winter is cold, but the Super Bowl always pumps up the heat! The Super Bowl has become one of the premier venues for marketers. The thrills, the chills, the excitement and surprises – and that’s just the advertisements! At a cost of $5.6 million for 30 seconds of air time, the Super Bowl is also the most expensive advertising placement of any event or show. Add to the air time the costs of designing and producing ads, plus the integration into other marketing tactics, and a company can easily spend upwards of $6 million on a single day.

Love them or hate them, Super Bowl advertisements have become a talking point before, during, and after the game. It’s a big stage, and can also be a big risk. This year, a Jeep advertisement featuring Bruce Springsteen backfired when news surfaced that Springsteen had received a DWI citation in November. Other criticism was about the lack of inclusion and diversity. Of the 67 public figures who appeared in the ads, only 18 were Black, 14 were women, one was Indian American, one was Asian American, and five were of multiple ethnicities.

This year an audience of 92 million adults in the U.S. tuned in to watch the Tampa Bay Buccaneers dominate the Kansas City Chiefs. The game had a 38.2 U.S. household rating and was viewed in an average of 46.2 million homes, far lower than previous years. Roughly 68% of U.S. homes in use were tuned to the Super Bowl.

The average amount spent per person was $74.55, a decrease from last year’s $88.65. Most is spent on food and drinks at 77%. As to who watches the big game, only 35% of Gen Z watch, compared to 54% of Millennials, 51% of Gen X, and 52% of Baby Boomers.

Which ad is your favorite?

Group Activities and Discussion Questions:

  1. Show the Nielsen data: https://www.nielsen.com/us/en/press-releases/2021/super-bowl-lv-draws-nearly-92-million-tv-viewers/?utm_campaign=Corporate%20Marketing&utm_medium=Email&utm_source=SFMC&utm_content=Newswire%20Newsletter&utm_id=02_10_2021
  2. Bring up one of the Web sites that have all the Super Bowl ads: https://www.ispot.tv/events/2021-super-bowl-commercials
  3. Divide students into teams. Have each team select a Super Bowl ad to analyze and present in class.
  4. What is the target market, key message, and offer from the ad?
  5. How does the ad integrate with a company’s other advertisements?
  6. Are the messages integrated with a company’s Web site and social media?
  7. As a class, after each commercial have students assign one to five stars for the advertisements. Which advertisement won the class vote?

Source:  Ad Week; CBS; iSpot.tv; Nielsen Research; other news sources

 

Leave a comment

Filed under Classroom Activities