Dell designs an "outside the box" move to boost holiday sales
Computer-maker Dell Inc. kicks off its $2.5 million holiday campaign by enlisting six celebrities to help customers raise money to buy products for themselves or others.
The computer giant has launched a new website—www.YoursIsHere.com—where users can create a virtual piggy bank, requesting their friends and relatives to donate money for holiday gifts, including Dell products. They can also publish their fundraising request on Facebook and MySpace pages. Visitors must be 18 years or older and must have a PayPal account to receive the money. Here's the process: the site visitors will first be asked to select the celebrity of their choice. After selection, they will choose a sales pitch and list out recipients who should receive their fundraising request. The six celebrities—Brooke Burke, Burt Reynolds, Chuck Liddell, Estelle Harris, Ice T, and Vivica Fox—will use a selling style that would exaggerate their persona. This marketing campaign is created by Mother, New York, and the website YoursIsHere.com is made by Poke.
Apparently, there is no way to ensure that the money is actually spent on Dell products, admitted David Clifton, the marketing and communication director of Dell's consumer business. This celebrity-networked sales pitch is Dell's attempt to surpass Hewlett-Packard Co.'s sales for PCs in the U.S. and worldwide. Dell spent $457 million last year on advertising, and $211 million this year through August.
Word of Mouth (WoM) marketing dishing out big bucks
According to a new forecast by PQ Media, Stamford, CT, the word-of-mouth marketing has increased from $76 million in 2001 to $981 million in 2006. In 2006 alone, the spending grew a whopping 35.9 % which is expected to top $1 billion by the end of this year, and reach nearly $3.7 billion by 2011. The report was issued at the Word-of-Mouth Marketing Summit in Las Vegas on Friday. The full forecast from PQ Media is available at the company's website for $995.
What can be the plausible reasons for this staggering growth? Establishment of social networking sites like Facebook and MySpace, continued consumer shift to alternative media outlet, and the marketers' need for increased brand recognition and return on investment (ROI) have all contributed to this change. In this $254 billion marketing sector of the media industry, WoM marketing is the fastest-growing segment and includes mediums like branded entertainment, direct marketing, and public relations, among others.
Porter Gale is Virgin America's new VP, Marketing
California-based airline, Virgin America, has appointed Porter Gale as the company's new Vice President of Marketing. Gale will work part-time through 2007 and begin full-time in January 2008. She will play a lead role in establishing the Virgin America brand as it launches into new markets across the nation.
Porter Gale has gained recognition in marketing, brand development, and advertising in both the East and West coasts. She joins the airlines after heading the Porter Gale Group, her own marketing and communications firm. At her firm, she worked with clients like Blue Shield of California, Delta Dental, and Country Music Television. She also held the position of Managing Partner and General Manager at Kirshenbaum Bond & Partners, San Francisco, where she directed new business efforts for the firm.
Virgin America is renowned for its interactive in-flight entertainment systems, such as plugs for portable electronic devices, the ability to order food or chat with other guests from their own video touch-screen, and others.
McDonald's enters the specialty coffee market to increase sales
In an attempt to spark more customer visits and increase sales, McDonald's Corp. is all set to move into the specialty coffee market by adding mochas and cappuccinos to its U.S. menu. This will likely attract more customers, especially in the times of relatively low sales volume. The fast food joint will also begin selling smoothies, frappes, and ice tea as a part of its venture into the specialty beverage market, reports the Chicago Tribune. The premium coffee drinks have been tested by the company in about 800 stores, and is expected to affect McDonald's sales nationally by mid-2009. The total investment comes up to $100,000, which includes about $25,000 in equipment and $75,000 in remodeling the house specialty coffee operations. McDonald's entry into the premium coffee beverage market in early 2006 was a runaway success.
