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Marketing Lessons from Chicago's Failed Olympic Effort

October 6, 2009

Flat Pitch to IOC | www.chicagotribune.com

In hindsight it appears Chicago faced much greater odds in its pursuit of the 2016 Summer Games than previously thought. It also faced a formidable competitor who demonstrated a grasp of some very basic marketing principles and employed them effectively. Rio de Janeiro knew its audience well, stressed a compelling benefit for them, and presented it with an enthusiastic pitch team that was the equal of Oprah, the First Lady and the President.

It's Possible Berkshire Hathaway Could Help Kraft Acquire Cadbury

September 10, 2009

Kraft in Talks to Finance $8 Billion for Cadbury Bid | www.bloomberg.com

With word spreading that Kraft is working to secure financing for its bid to buy Cadbury, there is a possible source outside of the traditional banking arena: Berkshire Hathaway.Warren Buffett might be interested for several reasons:He knows the players. He knows the category. He has the cash. He has made similar investments.

Brown Forman Has Survived Past Economic Downturns and Should Once Again

September 3, 2009

Brown-Forman Profit Increase Beats Analysts’ Estimates | www.bloomberg.com

While Brown Forman's focus on the premium end of the beverage alcohol market can produce great earnings growth as it did prior to the current recession, it heightens exposure to consumer defection to lower priced substitutes when unemployment climbs and wages stagnate. As in the past, BFBC is taking advantage of economic downturn to make fundamental changes to their business that should enable them to continue to compete effectively. But cutting marketing probably shouldn't be one of them.

Social Media Still A Learning Experience For Everyone

September 2, 2009

More marketers use social networking to reach customers | bit.ly

Everyone who is attempting to exploit emerging social media is learning lessons. Those creating social media platforms are finding out that commercializing a community can be tricky. Those trying to reach customers through social media are finding out that Friends and Followers don't necessarily equal paying customers. And those consumers trying to chronicle every event in their lives in 140 characters or less are finding that "autobiography by snippet" can grow tiresome.

Sears Cannot Save Its Way Out of Mounting Problems

August 20, 2009

Sears shares plunge on surprise 2Q loss | finance.yahoo.com

The second quarter "surprise" loss by Sears may now become the order of the day. Opportunities continue to be squandered as this once greater retailer looks more and more like a rudderless ship. Continuing efforts to cut costs and reduce inventories do nothing to bring customers into the stores. Without new customers and customers who keep coming back, Sears is headed toward an unfortunate and untimely end.

Sears Christmas Lane Execution Raises More Questions

July 31, 2009

'Twas 147 Shopping Days Before Christmas | online.wsj.com

While this article chronicled the positive and negative reactions by consumers to the July "launch" of the Christmas selling season by many retailers, buried within it were a few sentences that would make one believe that Sears still has a long way to go. Whether it is budget constraints or simply impatience, Sears appears to be in a chronic test mode where ideas, good or bad, are trotted out into a handful of stores or on line and then left to twist in the wind.

Alice.com Faces a Difficult Delivery Route

July 28, 2009

Household Staples the Domain of Alice.com | www.chicagotribune.com

The launch of Alice.com begs the question: Is this the business model that allows CPG companies to sell paper towels and toothpaste on the Web or is it just a second failed attempt at an internet grocery store? The first attempts during the internet bubble of the 1990's saw companies like Webvan sucked up cash and sell nothing other than stock. If Alice.com has it right, this will be the first time it has worked for everyone involved: the producer, the distribution channel, and the consumer.

Starbucks Not Out Of The Woods Yet

July 22, 2009

Starbucks Climbs as Profit Beats Estimates on Cost Reductions | www.bloomberg.com

While the word that Starbucks beat third quarter profit expectations was greeted joyfully by many, there are still indications that tough sledding may continue for sometime. As Howard Schultz has said,"No company can save themselves to prosperity." The continued decline in revenue, same store sales and number of transactions could indicate that recession-weary consumers are visiting less often or seeking lower priced alternatives.

Private Labels Are Brands To Someone

July 21, 2009

Private Label Programs Take Off | www.brandweek.com

Consumers buy private label products for a variety of reasons. They do it to save money and may have switched from a name brand product. In many cases they buy private label goods unaware that they are private label. For many consumers in many categories the store brand is their preferred brand. The private label designation is often more of a preoccupation for manufacturers and retailers than it is of the consumer.

GM's G8 Flip Flop Indicates Troubles Far From Over

July 17, 2009

GM's Lutz Makes Another U-Turn | online.wsj.com

The sudden reversal on keeping the G8 as a Chevy Caprice would indicate that other forces may be at work at GM. It may also indicate that Bob Lutz may not have the latitude in his sales and marketing role that many had hoped. This is still a deeply distressed company. While relieved of substantial debt, the biggest trouble ahead may be the competing agendas of various stakeholders.

Tim Hortons Has Potential To Pressure Starbucks

July 14, 2009

The Morning Doughnut? The Choices Are Getting Complicated | www.nytimes.com

Tim Hortons has the potential to take significant business not just from Dunkin Donuts but from Starbucks. Their authenticity, reputation for a good product, and mystique may be the motivation that pushes consumers to abandon $4 lattes for good $2 cups of coffee. Being able to brag about the new Tim Hortons that finally opened in your town can completely disguise the fact that you have traded down in price in the midst of a recession.

GM Faces Big Marketing Challenge

July 13, 2009

GM Takes New Direction | online.wsj.com

Now that the new GM has emerged from bankruptcy, it faces its biggest challenges. While it has shed debt and transformed itself into a leaner company, it has yet to prove itself more customer focused. If it cannot attract customers, sell them more, and sell them products on which GM makes a decent profit, the entire bailout and bankruptcy process may have only postponed the ultimate failure of the company. The retention of Bob Lutz to head sales and marketing would indicate that the company understands the monumental nature of the challenge it faces.

Sears Christmas Lane Annoucement Raises Many Questions

July 12, 2009

Christmas in July? | www.retail-merchandiser.com

The July 12 annoucement of the Sears early launch of the Christmas selling season raises a number of questions including: 1) the lay away plan details, 2) the impact on store inventories, and 3) whether this is merely an attempt to prop up monthly sales in anticipation of a poor back-to-school season.  

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