Walmart has been paying very close attention to the phenomenon that is Groupon.  Walmart has created a similar digital daily deal service calling it CrowdSaver.  The difference is that CrowdSaver is an app that will be run through Walmart’s Facebook page (unlike Groupon that has a separate site and daily deal for each city) and if the daily offer gets the required about of “likes” by Walmart customers, everyone (not just those who “like” it) gets to enjoy the deal when they check back later in the week.

Walmart is hoping the group mentality translates to their customer base so that if a customer sees a deal they want to happen (i.e. 20% off a plasma TV) they will rally their friends on Facebook to like the deal so that Walmart follows through on the offer.  Groupon has been widely successful with the service boasting 25 million subscribers worldwide, 15 million of which are in North America.

For more information, check out: http://www.brandweek.com/bw/content_display/news-and-features/direct/e3i08bfc050adda5b91a160a308fc7fd4ef

The millennials are quickly becoming the “most affluent and influential shoppers on the planet,” according to a new global study from Edelman.  

There are currently more than 1.7 billion millennials worldwide (those between 15-30; born between 1980 and 1995).  The shear numbers of this demographic, in addition to their influence over their family and friends regarding purchase decisions, make it one that advertisers can’t afford to ignore.

Edelman’s global study reveals four key areas of interest to millennials:

1. Brands as form of self expression – Brand preference is the No. 1 personal identifier that millennials said they are willing to share with the online community.  The demographic also stated that quality, authenticity and integrity are what they look for in staying true to brands.
2. Information is a key to influence – More than 50% of millennials use 4 or more sources of information when making even the most basic of purchasing decisions.
   
3. Action is intrinsic - 8 in 10 millennials, worldwide, have taken action on behalf of a trusted brand, while 82% have joined a brand-sponsored online community.
4. Reverberation rules - This generation are true influencers.  For example, more than one-third of millennials admitted they won’t make a purchase if the majority of their friends don’t approve.
   

In conclusion, marketers need to know that 8 in 10 millennials are “taking action for brands they trust, both on and offline, including sharing brand experiences with others, joining branded online communities and posting brand reviews online.”  The influence this demographic has over their family and friends is unprecedented, which means marketers who connect with the millennials correctly will experience the positive effects, online and in their bottom line.

For more information, check out the full study at: http://www.edelman.com/insights/special/8095/8095whitepaper.pdf

PepsiCo has linked up with Brand Affinity Technologies (BAT) in an experimental advertising system called netBAT.   NetBAT is a system that aims to engage consumers via their favorite athletes and celebrities by  turning photos within an editorial space into a place where you can get additional content on the subject pictured without leaving the photo space.

A typical ad placement consists of a user mousing over a picture, say of  a football player, where they are then provided with buttons featuring YouTube videos, recent quotes, tweets and news.  BAT’s content database has already mapped information on over 40,000 celebrities and athletes.

These ad-enabled photo apps have the ability to reach 50 million users within the Internet publisher databases.  PepsiCo is extremely excited about these units because they believe the units bring added functionality and content to websites without simply putting more and more advertising on the page.

For more information about these ad units, check out: http://www.prnewswire.com/news-releases/pepsico-partners-with-bat-for-celebrity-intel-and-online-consumer-engagement-105334853.html

Starbucks is quickly approaching its 40th anniversary and something big is brewing…and it’s not the coffee.  Starbucks is transforming its store on Olive Way in Seattle’s bustling Capitol Hill area to look more like a cafe, where it will serve Starbucks coffee but will also feature regional wines and beers and an expansive plate of locally made cheeses.

Each new company-owned store will be LEED certified.  For example, the Capitol Hill store features: highly polished concrete floors, chairs salvaged from the University of Washington campus, empty burlap sacks (once used to transport Starbucks coffee beans) hanging from the walls, and an oversized table (designed for customers to share) is made from flooring salvaged from a local high school.

Starbuck’s coffee shops turned “cafes” idea is a response to the heated competition they are getting from McDonald’s and Dunkin’ Donuts growth in the coffee market, as well as a way to hopefully recover from the recession.  The company is hoping to build up their night business too, since research shows 70% of their business occurs before 2pm.

This idea could either prove genius or a total flop, we will all just have to wait and see! If any of our Seattle readers have a chance to visit the new store, please send us your experiences and thoughts!

Check out a video that details the new store’s changes: http://link.brightcove.com/services/player/bcpid42806360001?bctid=637805269001

Read the full USA Today feature article at: http://www.usatoday.com/money/industries/food/2010-10-18-starbucks18_CV_N.htm

The cosmetic industry pulled in about $2.52 billion in sales for the 2009 fiscal year.  Unfortunately 10% of that profit was nullified because the companies had to make up for consumers digging into the makeup packages to try them out before they bought them.  A new firm out of Israel, hopes to have the answer to this problem, EZface “virtual mirror” kiosks.

EZface has come up with a piece of futuristic in-store technology that allows women to try on cosmetics without opening the packages.  The technology allows shoppers to take a photo of themselves, capturing their skin tone, hair and eye colors, and then swipe the barcode on the cosmetic products to virtually test out colors through the mirror to see what best suits them.  The kiosks would also allow for in-store advertising and promotion to drive sales of featured products.

The company also has an intereactive website where you test products by uploading a photo to their site testing products from the comfort of your home.  Finally, EZface’s mobile component allows consumers to deliver pictures from the stores to their mobile phones , where the pictures can then be sent to friends or the printers.

EZFace is currently testing these mirrors in the UK, France, Germany and several markets in the US (specifically in Walmart and Walgreens stores).   EZface believes these virtual kiosks would really benefit national brands like L’Oreal, Maybelline New York, Cover Girl and Revlon.

Click on the link to see a demonstrative video about the product: http://www.ezface.com/EZface/Press.aspx?autostart=true

For more information on this futuristic technology, go to: http://www.ezface.com/EZface/Index.aspx

Also, if any of our Chicago readers have seen these kiosks in their local Walmarts or Walgreens, we want to hear about your experiences with these mirrors!

AdAge presents an incredibly informative White Paper that focuses on Best Practices in a Direct Response-Driven Media.  Download the full White Paper here.

DDB has released a six-country survey exploring the relationship between people who “like” brand’s Facebook pages, with the effect on sales or use of their products.  This six-country “Facebook and Brands” survey, polled more than 1,600 Facebook users in the US, UK, Italy, France, Australia and Chile, who were already actively “liking” brands on the site.

Several highlights from the survey include:

• More than a third of  Facebook users who like a brand’s page on the social networking site use its products regularly or occasionally and, after following the brand on Facebook “want to buy this brand’s product more.”
• 49%  of the respondents saying they would “certainly” feel comfortable recommending the brand to friends and 43%  say they “probably” would.
• Ads are the primary driver to brand pages, followed by invitations from friends and Web searches.
• Fans expect more than downloadable coupons, they want to feel like a VIP who can” access exclusive content, information about new products and promotional offers, before the general public can.”

The survey also reveals why “liking” a brand is appealing to consumers.  People follow brands because they 1) like the promotions, 2) they like the brand and want to know about new products and exclusive information and 3) they like to have a forum to provide their opinions about the brand.

Finally, a key takeaway from the survey is that people are not afraid to “unlike” a brand.  A brand’s Facebook page has to be well managed and has to provide the customer with an experience they cannot get without “liking” this social networking page.  Consumers are becoming more internet savvy and will reject a dull or irrelevant page, as well as one that inundates its consumers with information.

To access your own copy of  the study, go to: https://ddbworldwide-dropboxaliciabrindak2.pbworks.com/f/DDBOpinionwayFacebookenglishshortversion.pdf

It would be easy to look at companies like Old Spice and Pepsi for inspiration regarding social media.  But if you don’t have the “name” and the budget like these companies do, here are 5 less top-of-mind enterprises that are becoming leaders in the social marketing world.

1. The National Wildlife Federation is a US non-profit dedicated to conservation and advocacy.  It has shown a real commitment to raising awareness and building community via its social media page.  Rather than have one overall NWF page where people have to sort through information and facts that may not be relevant or of interest to them, “the non-profit has created individual channels, communities and accounts to update and connect with its unique audiences,” including separate Facebook pages and Twitter lists for the community’s individual interests.  The non-profit also just launched a mobile app.
2. Ann Taylor has gone above and beyond what other clothing and fashion companies have done with social media.  Ann Taylor took the feedback it was receiving, via its social presence, and did a complete overhaul of its marketing and advertising to reflect what their consumers really wanted (including this Facebook complaint).  In addition to its Facebook page and Foursquare promotions, Ann Taylor sets itself apart by really interacting and listening to their customers.
3. The Muppets Studio has really taken YouTube to a whole new level.  The Muppets have their own YouTube channel where they are keeping themselves relevant by making exclusive videos that retain the charm and humor of the old show, but feature social media twists.  The YouTube channel is averaging about 400,000 per video and reinvigorated the brand, which has a mobile app and a feature movie on the horizon.
4. Whole Foods has taken on a lot in the social media world.  Not only does the company prefer it’s individual stores and regional areas to have separate Twitter and Facebook accounts, but the company is extremely active with their Foursquare deals, “a company blog, a dedicated customer feedback site and mobile apps offering utilities like store finders and searchable recipes .”
5. Staples is not recreating the wheel by any means, but what they are doing with Twitter account is what more companies should be focusing on.  They are using it as a source of community feedback and customer support by featuring caricatured head shots of the online support team, who sign their tweets with their initials, so consumers know they are dealing with real people.  The company also encourages customer interaction with its Facebook app, “I Shred U“.  This comedic app allows users to digitally shred or edit pictures of themselves on Facebook.

Although the five companies listed below haven’t created any new must-have technologies, what they are doing is making the best use of their social networks.  The best part is, all of this promotion and interaction isn’t costing the companies millions!

For more information, check out: http://mashable.com/2010/10/05/top-enterprises-social-media/