The Coke vs. Pepsi Cola Wars continue both on store shelves and in court rooms. On Monday, Pepsi sued Coca-Cola, claiming that Coke is running ads for Powerade ION4 sports drinks that misrepresent the effectiveness of Gatorade, a PepsiCo product.

According to the Wall Street Journal, the ads are currently running in print, on billboards, in-store displays and on a relaunched website. They say that Gatorade is missing two key electrolytes — calcium and magnesium. A Pepsi spokesperson was quoted in the Journal as saying, “The truth is, scientists say there is no evidence that Powerade ION4 is a more complete sports drink than Gatorade.”

Pepsi asked that the ads stop immediately, especially as “the biggest selling season for sports drinks is beginning.”

According to the Wall Street Journal, Pepsi and Coke have routinely challenged each other in court. In 2006, Pepsi sued Coke over its televsion ads for Powerade Option, a low-calorie sports drink. Coke settled out of court. In 2007, a federal judge dismissed a Coke lawsuit that charged Pepsi with patent infringement on a collapsible bag that dispenses syrup for fountain sodas.

One of the things we frequently discuss in our blog is that the best marketers get inside the minds of their prospects when they develop their campaigns. Traditionally, we used the four P’s (Price, Product, Place, Promotion) to develop our marketing approaches. But today, the savvy marketer is taking a more holistic approach to getting their message across.

This chart helps highlight the point. In it, we’ve outlined the different ways marketers should look at their customer prospects. But we’ve also included the different ways your customers look at you. This is especially important in the Web 2.0/Social Media world we live in.

So, how are you looking at your customer prospects? Are you taking a holistic view? Or are you taking a more limited approach? More importantly, are you creating a dialogue with them that uses each tool to the best of its ability? For example, are you taking a more casual approach on Facebook than you do on LinkedIn (which would be the proper approach)? Are you embracing the fact that your YouTube videos are in an environment that can be like the Wild West?

These are the questions you’ll need to ask yourself as you develop your marketing plans for the upcoming year. And don’t forget to re-visit this chart in order to get a more complete, more holistic view of your customers and prospects.

Let’s own up to something right off the bat: GoDaddy’s TV commercials are an offense to the sensibilities of most Americans. They got off on the wrong foot when an old co-worker of mine at Shine Advertising convinced them to take the low road in their advertising. Doing ads that break through the clutter is one thing, but doing ads that offend people is another.

Fortunately, GoDaddy has overcome the bad advice they’ve gotten from ad agencies over the years by doing an A++ job with their customer service. Their customer service team is so well-trained, they address every basic question you have about the interactive world as though it’s the first time they’ve heard it.

On that note, I was surfing around the GoDaddy website and came across their founder’s blog. Bob Parsons has 16 Rules for Business that are worth sharing.

(Hey, Bob — No doubt you’ve been hugely successful in the material world. Now that you’ve done that, how about changing your tune, cleaning up your commercials and being an inspiration for good living? Wouldn’t that be much more fulfilling than what you’re doing now?)

With all that said, here are some of Bob’s rules, which are pretty decent, no matter what you might think of GoDaddy’s commercials.

Get and stay out of your comfort zone.
I believe that not much happens of any significance when we’re in our comfort zone. I hear people say, “But I’m concerned about security.” My response to that is simple: “Security is for cadavers.”

When you’re ready to quit, you’re closer than you think.
There’s an old Chinese saying that I just love, and I believe it is so true. It goes like this: “The temptation to quit will be greatest just before you are about to succeed.”

With regard to whatever worries you, not only accept the worst thing that could happen, but make it a point to quantify what the worst thing could be.
Very seldom will the worst consequence be anywhere near as bad as a cloud of “undefined consequences.” My father would tell me early on, when I was struggling and losing my shirt trying to get Parsons Technology going, “Well, Robert, if it doesn’t work, they can’t eat you.”

Focus on what you want to have happen.
Remember that old saying, “As you think, so shall you be.”

Always be moving forward.
Never stop investing. Never stop improving. Never stop doing something new. The moment you stop improving your organization, it starts to die. Make it your goal to be better each and every day, in some small way. Remember the Japanese concept of Kaizen. Small daily improvements eventually result in huge advantages.

Be quick to decide.
Remember what General George S. Patton said: “A good plan violently executed today is far and away better than a perfect plan tomorrow.”

Measure everything of significance.
I swear this is true. Anything that is measured and watched, improves.

Never expect life to be fair.
Life isn’t fair. You make your own breaks. You’ll be doing good if the only meaning fair has to you, is something that you pay when you get on a bus (i.e., fare).

Solve your own problems.
You’ll find that by coming up with your own solutions, you’ll develop a competitive edge. Masura Ibuka, the co-founder of SONY, said it best: “You never succeed in technology, business, or anything by following the others.” There’s also an old Asian saying that I remind myself of frequently. It goes like this: “A wise man keeps his own counsel.”

Don’t take yourself too seriously.
Lighten up. Often, at least half of what we accomplish is due to luck. None of us are in control as much as we like to think we are.

There’s always a reason to smile.
Find it. After all, you’re really lucky just to be alive. Life is short. More and more, I agree with my little brother. He always reminds me: “We’re not here for a long time, we’re here for a good time!”

Bob Parsons’ 16 Rules for Business Copyright © 2005-2007 Bob Parsons. All rights reserved.

Doctors George and Michael Belch have recently released the eight edition of their classic textbook “Advertising and Promotion: An Integrated Marketing Communications Perspective.” One of the topics they discuss is how Heinz reinvented packaging as a communications medium. Here’s what they have to say on the topic:

“For years, consumer marketers thought of packaging as containers for shipping products, focusing on size, cost, and protection.  While some attention was paid to the ability of the package to differentiate the brand, develop new market opportunities, and catch attention on the store shelf, the advertising aspects of the packages themselves were not a priority.  Well, all that has changed.

Consider that Pepsi, which had changed the look of its bottles and cans only 10 times in a hundred years, now will switch designs every few weeks. Kleenex tissues, which has been sold in a rectangular box for over 40 years, will now be available in an oval package, and Suave Shampoo has made its first packaging change in 25 years.  Luvs diapers has redesigned its package to revitalize the brand by making it more attractive and providing more “shopability” – including more information on the package to help speed up the purchasing process.  Pepsi is also considering putting scents in their soda cans, so that when they are opened they give off the smell of the drink (e.g., cherry soda).

What’s underlying the new emphasis on packaging?  A number of factors including increased competition, changing consumer lifestyles and attitudes, creative marketing approaches (Orbit Gum now comes in a bottle that will fit into a car’s cup holder), and technology itself.  Add to this a fragmented media market and lower attention spans among youth, and better communication becomes a necessity.  Packages are reinforcing ads as a means of presenting the company’s selling propositions.
Consider the new Coors Light can.  As a result of advanced technology, the label contains thermochromatic ink that changes the color of the mountains on the label as the temperature of the can changes.  The message?  You know when the beer is at the right temperature to drink.  Or, consider Huggies’ Henry the Hippo hand soap bottles that include a light that flashes for 20 seconds so that children know how long to wash their hands (while at the same time offering the brand a competitive advantage!).  Mountain Dew is test-marketing an aluminum bottle that will change in design 12 times from May to October.  Marketers and designers say these changes are necessary to attract attention and communicate in a media-saturated environment where television commercials are deemed less effective.

Not all packaging designers and marketers agree with these constantly changing messages, however.  They cite the success of brands that have seemingly been around forever, and that may be noted by their packaging as much as by any other thing they may have done.  They consider these package designs to be icons that have endured through the ages.

Two of the most iconic packages they refer to are those of Coke and Heinz – perhaps two of the most recognizable package designs in history.  It has been estimated that over 90 percent of the world’s population recognizes the Coke bottle, according to Rod Tabert, group director of packaging for the Coca Cola Company. Heinz’s major change was to a twist-off cap decades ago.  The plastic bottle still looks like the original glass one, and the label is the same as it’s always been.  While it is conceded that the product inside these packages is also of very high quality, their advantages accrue from the fact that the packages are different, use bold, yet basic colors, are simple, and have endured from the beginning with only slight modifications over decades.

These clearly recognizable packages communicate all that is necessary about the brand and its contents, they argue.  Opponents of constantly changing package designs say that they will never lead to iconic status or evoke feelings of nostalgia that can only be built over time.
So, the question is, “Who is right?”  Is the consumer of today different enough from those in the past that they require ever-constant stimulation and novelty?  Or, does a package design and label that endures lead to more loyalty, trust, and credibility?  I guess only time will tell!

Source: Louise Story, “The Latest Grocery Ads: The Packages Themselves,” San Diego Union Tribune, August 10, 2007, pp. A1, A6; Stacey King Gordon, “Isn’t it Iconic? Brandpackaging, September 2007, pp. 1-4; Jennifer Acevedo, “Revitalized Packaging Emphasizes Quality, Value, and Fun,” Brandpackaging, September 2007, p. 1.

The Caroline Kennedy saga is a terrific example of the power of a brand name. You could argue that the Kennedy brand name is right up there with Coca-Cola, Apple, Starbucks and other powerful brand names.

But didn’t we learn a thing or two about political brand names over the past 8 years? Didn’t we learn from the very likable, but over-his-head George Bush, Jr. that just because you’re the offspring of a former president doesn’t mean you’re qualified to be president?

Caroline Kennedy has essentially watched from the sidelines over the past several decades as other, more engaged politicians called the shots and executed the game plan. She’s not qualified to walk into the job as Senator just because she comes from a famous family.

This, from the New York Daily News:

“Records show Kennedy did not pull the lever for any of her fellow Democrats in city primary races for mayor in 1989, 1993 and 1997 and 2005, which Republicans went on to win three out of four times in the general election.

She was also AWOL for the primary and general elections in 1994, when Sen. Daniel Moynihan was running for reelection to the seat Kennedy hopes to hold.

Aides to Kennedy – who Thursday said she was running in part because this is no time to “sit out” – conceded Thursday night that at times the daughter of former President John F. Kennedy has done just that.

Most of the time, she voted, aides said. A review by The News found that of the 38 contested elections since 1988, Kennedy skipped about half, almost all of them primaries.”

As a marketer, you can learn a few things from this. First, if you have any political aspirations, be sure to vote. But more importantly, if you’re a marketer, you’ll realize the incredible power a brand name has, whether it’s Coca-Cola, Apple or Kennedy.

Not long ago, the 60 Second Marketer published an article on the value that Interbrand, Inc. places on the Coca-Cola brand vs. the Pepsi brand. It was an interesting article that generated a good amount of dialogue, so we thought we’d share it with everyone here.

Here’s the article in its entirety:

“Every year, Interbrand releases its annual report on the most valuable brands from around the globe. The brands that make the list are all from the world’s most successful organizations — Microsoft, GE, IBM, Pepsi, Starbucks, Apple.

You get the idea.

Over the past several years, the brand at the top of the list has been Coca-Cola. That’s not surprising, given the amount of effort and money they put into creating that brand.

What is surprising, though, is where Pepsi comes in.

They’re not #2. They’re not #5. They’re not even in the top 10. Heck, they’re not even in the top 20.

Pepsi comes in as the 26th most valuable brand in the world. Which is really surprising given that they spend just about as much money on branding as Coke and sell just about as much product, too.

But there’s a key difference and it all has to do with each brand’s essence.

Here’s a test — what are the words the come to mind when you think about Coca-Cola?

How about these:

• America
• Santa Clause
• Polar Bears
• World War II
• History
• Family
• “I’d like to teach the world to sing”
• Mean Joe Green

In other words, the brand essence for Coca-Cola has to do with things Americans hold close to their hearts. Coca-Cola has a brand appeal that taps into some of our most deeply-rooted emotions.

Now, do the same for Pepsi. What words do you come up with?

• Britney Spears
• Michael Jackson
• Youth
• The Choice of a New Generation
• Madonna
• Cool
• Fun
• Energy

As you can see, the Pepsi brand essence isn’t as deeply-rooted as Coca-Cola’s. It’s based on what’s new, what’s hot and what’s trendy.

Why did this happen? Several decades ago, Pepsi decided that adults’ brand loyalty for Coca-Cola was too well-entrenched to change their preferences. So they decided to focus on the youth market. The idea was to spend their time, money and energy appealing to a younger market who, eventually, would replace the more mature Coke drinkers.

To be honest, it was a brilliant strategy. If you can’t win the game that’s being played, change the rules. And that’s what Pepsi did.

The problem was that by focusing on youth, Coca-Cola got to keep the brand values it already had. And those brand values are things that are deeply ingrained in the American psyche.

I mean, c’mon. Coca-Cola owns “Santa Clause” and “America.” How much better could it get?

All this isn’t to say that Pepsi’s strategy is wrong or is a lost cause. On the contrary — Pepsi has won plenty of battles and has been keeping The Coca-Cola Company on it’s toes for decades. Just check out what Pepsi did with Gatorade, Aquafina and the non-carbonated beverage category. Great work.

But when you ask yourself “Why is Coke a more valuable brand than Pepsi?” all you have to do is look at the deeply-rooted brand essence of Coca-Cola to find the answer.”

The conventional wisdom in marketing and media is that if you can add a splash of sex appeal to a marketing campaign, you’ll bump your sales up in the process. But in an article from the 60 Second Marketer, Charles Boyer, V.P. of Operations at Media Analyzer points out that too much sex in an ad can actually decrease it’s effectiveness.

Here’s Charles’ article from the 60 Second Marketer website:

Although advertising industry professionals are often under intense pressure from clients to produce highly-creative print ads, clients and agencies often overlook the primary functions of an ad (brand retention and call to action) in the creative process.  One of the best ways to ensure your campaigns are effective is to periodically revisit these 7 Golden Rules for print advertising.

Rule #1: Have a strong key visual to break through the noise

Advertising has to compete with a lot of other stimuli to get people’s attention. People are so overwhelmed by an ever-growing amount of information and images that it is hard to break through the clutter to reach them in a meaningful and often personal way.

Rule #2: Don’t over-do Rule #1 — The key visual must be strong, but not too strong

A key visual must be strong enough to get attention, yet not so strong that the respondents’ attention is ceded to other parts of the ad that are supposed to communicate its message.

Rule #3: Don’t use sex as key visual, especially if you’re targeting men

Sex is a great attention-grabber – and it is disastrous for ad effectiveness.

Men and women alike are strongly attracted by sex in ads. However, men are so engrossed by the sexual imagery that it diverts their attention. The end result is a less effective ad.

Rule #4: The ad must keep tight control over the readers’ line of sight and scan path

You must keep tight control over readers’ scan paths. Your ad has a story to tell, and for that it uses certain elements – you need readers to see what they are supposed to see, and in the right sequence, too.

Rule #5: Make sure the logo is prominent

Your logo sells. Make sure readers see it by integrating it into their scan path. Place it where people look, which is usually the bottom center or the bottom right of the ad.

Rule #6: Avoid multiple key visuals

Research shows that it’s usually not a good idea to include two eye catching visuals because, in this case, two is weaker than one. Research indicates that they compete with each other for the attention of the consumer. An attractive visual element outside the ad might be strong enough to catch the attention and thereby draw it away from the advertisement.

Rule #7: Make them read the copy text – or make do without

Most people don’t read ads anymore – they look at ads as they would at images.

Try to communicate your message without heavy copy – or with easily readable copy text:

• Use as few words as possible to communicate your message

• Make it salient

• Structure it (with bullet points)

• Use as LARGE a font size as possible