I have to say that I was struck by LVMH’s new ad campaign portraying artisans lovingly creating Louis Vuitton products by hand.  I’ve seen three: one of a (from the ad copy) ”young woman and the tiny folds” of wallet leather, another of a “’seamstress with linen thread” hand-stitching  the handle of a handbag and the last – the one that particularly struck me – showing a man painting the bottom of a shoe by hand.

The sole-painting made me pause. I did not feel compelled to run out the door for LV shoes, though… it was more a gentle “Really? They hand-paint the bottoms of all their shoes?” 

Now I know how much Vuitton products cost.  They’re expensive – but probably not as expensive as they’d need to be for LVMH to clear a hefty profit after painting the soles of every pair of new Vuitton shoes.

So I took note when the UK’s Advertising Standards Authority banned the wallet and handbag ads, claiming they could “mislead” consumers into believing that Louis Vuitton products are handmade, when in fact machines are involved in the manufacturing process.  From the agency’s ruling: “We considered that consumers would interpret the image of a woman using a needle and thread to stitch the handle of a bag … to mean that Louis Vuitton bags were hand stitched.”  O&M Paris must pull the two offending print ads immediately. The ad of the man painting the shoe bottom did not draw objections. 

Interesting.

I guess part of my question is, Which consumers?  I’m curious, for example, whether a “reasonable person” in such an instance would be absolutely anyone seeing the ad in a doctor’s waiting room, or whether it would need to be someone for whom the ad would alter beliefs in a way that could misguidedly motivate a purchase.  Would the latter be more likely to be knowledgeable and savvy (and less gullible), or does it not matter?  Vuitton has never been secretive about the fact that it has factories in the U.S., France and elsewhere that some believe are the very representation of modern luxury good production, but I guess the ASA has made its call.

There are a number of fashion/culture tongues wagging online about the fact that the ASA had nothing to say about LVMH photoshopping Madonna until she looked like a 17-year-old.  Perhaps, but it’s probably a good bet that there were no ruling bodies that thought anyone might buy a piece of luggage thinking it would make her look like Madonna (at any age).

There’s a real reputation-meets-revenue battle happening between online.

Today, any advertiser with a Google AdWords account can buy virtually any keyword to advertise its own goods, regardless of whether said advertiser has the rights to use the word.  This is particularly troublesome for brands that have spent decades burnishing a brand and consider the associated brand names to be reputational assets of great value.  If you go to Google right now and type in “LVMH” (the owner of numerous brands including Louis Vuitton and Hennessy), one of the sponsored ads shouts “Designer Handbags 70% off,” with a URL that includes the Louis Vuitton name. That has LVMH steamed and the company sued Google in Europe for trademark infringement.

Well the ruling is in… and it’s a split decision, advantage: Google. Upon Google’s appeal of earlier rulings (that didn’t go its way) the highest court in the EU has determined that - on its face – the mere fact that an LVMH-protected word is available for sale by Google does not mean that Google is in violation of LVMH’s trademark protection. 

Specifically, the court has said that the search company is not violating trademarks if (a) its automatic ad system is judged to be “merely technical, automatic and passive” in its operation, and if (b) the company is not aware and cannot be expected to fully police all the words that advertisers purchase.

Since computers are programmed by humans – and those folks at Google are pretty darn smart – this is fishy to me, but ok.  It was not a flat-out win for Google, however, as the court also ruled that Google must remove said ads if the brand owner formally complains about an advertiser infringing on its marks.  If Google fails to do this, the court says it won’t be so helpful in protecting Google’s revenue stream the next time around.

The court also reinforced that Google could be held liable for selling keywords that openly encourage or facilitate counterfeiting, which – in luxury categories – is a win (or at least a booster shot) for the brand owners.  And lastly, the court also clarified the responsibilities of advertisers who mustn’t be found “using such keywords arrange for Google to display ads which do not allow Internet users to easily establish from which undertaking the goods or services covered by the ad in question originate.”

I don’t know about you, but if I’m an advertiser that gets into hot water for legally buying a word that Google sold to me – and I’m not trying to sell knock-offs – I’m naming Google in my legal response.

LVMH has been on the attack re. this issue for a long time, which is understandable. eBay has also been in the conglomerate’s in the past. This is a worldwide, high-stakes game such a company must play in all sales channels: right here in New York, LVMH was front and center in the effective elimination of a thriving Louis Vuitton counterfeit trade on Canal Street. The company will flood Google “Don’t Be Evil” Inc. with complaints until the search company will at least have to question what (and how much) it is defending by taking on massive legal expense (and bad PR) in order to make money from advertisers leeching off others’ trademarks.

And speaking of buying Louis Vuitton knock-offs on the street, a LVMH board member point of view has been (quote) “Under trademark law anywhere in the world, brand owners have the right to stop third parties from using their names. “Why make an exception for the digital world?”

 As the division between online and offline “worlds” continue to disappear, why indeed?

Here’s a priceless and hilarious example of how overexposed, over-hyped, over-celebritized and Paris Hilton-addled our society has truly become.

You may have read about the massive insider trading case against Galleon Group.  A former consultant, Danielle Chiesi, was a participant in and beneficiary of the conspiracy.  Her criminal trial begins later this year.

Is she scared? Perhaps, but there seem to be more pressing concerns at the moment.

HERE is Danielle Chiesi last October, on the day the FBI led her away in handcuffs:

And HERE is Danielle Chiesi now (February 2010):

These two photos were taken about four months apart. In between, Chiesi began to morph a la Michael Jackson.  Two months in, The New York Post noted the disappearance of Chiesi’s “bloated face and dumpy sweater” (see first photo) in favor of a ”slim new look” that looked like it was ”straight out of central casting for a prison flick.” 

I love it. 

Next stop: Dancing with the Stars, or perhaps her own makeover show.  Assuming, of course, she doesn’t spend the next 10 years in prison.

And I would definitely believe, by the way, that Ms. Chiesi is terrified of prison…. because it’s going to be very – very – hard to keep up her new plasticized look behind bars.

New Balance has created an online/social media campaign and (offline) line of shoes that marries both worlds in the most elegant way.

The 574 men’s and women’s collection is made entirely of left-over scraps of cloth in the company’s Lawrence, MA factory and, as a result, each pair is just a bit different – each has its own personality, you might say.  A very special, limited line deserves equally powerful promotion, and the company’s ad agency, Mother, knew it.

When you buy a 574 pair from one of ten boutiques in the U.S., there’s a special Polaroid photograph in the box.  The owner can then go to 574Clips.com, and match the Polaroid to a special mini-film about the shoe.  Once the film has played, the happy shoe wearer can add his/her name at the end of the film.  The film for 106Red appears to show a man dipping a carrot into the shoe (for dip, or course), while 115Green has a lovable furry muppet (with green nose to match) admiring a pair of shoes.  Each is very short and fun – check out one or two for yourself, and see if it doesn’t make you want to buy the shoes.

574Clips.com also features links to Facebook, MySpace, De.li.ci.ous and Tumblr, so buyers of these unique shoes can tell (and show) all their friends.  The campaign is also tied to sneaker culture blogs like High Snobiety and Nice Kicks.

Anyone who watches Entourage (Episode 3, Season 6) knows how culturally important “sneakerheads” are – the (mostly) men who must have the hottest, most limited sneaker available tend to be heavy influencers and leading indicators of pop culture trends and information.  It’s a valuable and – in their own milieu – sophisticated crowd, and Mother has delivered an equally sophisticated communications plan.  The blending of manufacturing, blogs, web, community, video and product is exceptional.

And now I must sign off – I’m on my way to Reed Space: the only shop in NYC to carry the $75 shoes with the special Polaroid inside…

P&G’s Charmin brand has found a fun sponsorship opportunity with SitorSquat.com.

A woman in New York, Danika Landers, started the site as a blog in 2007, and it uses Google Maps to help you find the nearest public bathrooms anywhere you may find yourself in need of one.  It purports to be the largest (only?) “toilet database and locating service” in the world.  It is essentially a wiki that is easily accessible via mobile devices including the iPhone and Blackberry.  Both the site and the downloadable apps are free to use.

Danika describes the impetus for creating the site as a personal realization that “that the act of relieving oneself is somewhat an artform” that becomes suddenly complicated “when our personal space is not our personal space.”  Anyone traveling with an infant or parent – or on any highway road trip in America – can attest to the veracity of such a conclusion. 

Danika has a little extra fun with the site by allowing users to submit a rating for the public restrooms in question; a rating of a 2.5 or over will be characterized as a “sit,” while a toilet with a lower rating will be a “squat.”  As such a rating might change with every use (ick!), I would suggest that a user make his or her own judgment in the moment:  this is truly a case where past performance may not indicate future results. P&G jumped on the opportunity to sponsor the site and its sensibility as a great fit with the brand’s overall efforts to support grassroots activities that make the bathroom experience a positive one. The company has set up mobile bathrooms at events like state fairs in the past, has had Charmin Restrooms in NYC’s Times Square for three years running (see dramatic video here!) and – my favorite – toured the U.S. from 2003 to 2005 with a bathroom mobile nicknamed ”Potty Palooza.”

“Our goal is to connect Charmin with innovative conversations and solutions as a brand that understands the importance of bringing the best bathroom experience to consumers, even when they’re away from home,” says Jacques Hagopian, brand manager for Charmin.

This blog has commented on companies sponsoring public bathrooms before – remember Visa’s sponsorship of porta-potties at a music festival last year?  While consumers may always appreciate this benefit, SitorSquat.com is likely to get bigger results for Charmin* based on brand fit and is the only site of its kind with which the brand has associated itself.   1,600 users have downloaded the mobile app thus far and the site has over 500,000 UVs since launch.  Nice find!

* Lysol just announced that it’s taking over the women’s restrooms at 9 NASCAR races this year. This also sounds like a decent brand fit, obviously.  Assuming Charmin’s sponsorship wasn’t too expensive, though, the remote/mobile aspect of SitorSquat makes it a winner as it puts the Charmin brand in the home and on the phone of thousands of users every day.

Well, this is pretty amusing.  Dick Fuld and his wife are flying JetBlue, and their fumbling at a self-serve kiosk in Florida last month has triggered some timely and clever work from the airline and its agency, JWT Partners.

“Welcome Bigwigs” not only invites former masters of the universe to “jet” with JetBlue anytime, it also offers some handy advice about how to fly – SHUDDER – commercial.  Click on the image to the left to see one of the ads.

Next up in the campaign:  instructional videos for confused titans who must learn to share armrests, eat teeny tiny bags of peanuts and stand in line for the most skeevy restroom experience of their lives. 

“Executives haven’t thought of JetBlue as viable for businesses and that’s wrong, because you can watch CNBC and CNN all the way to the destination,” says JWT’s Kristen Lenz.  Is that tongue in cheek?  If not, the ads serve up a hearty helping of satire and mock sympathy, cooing “Nobody will blame you if you just want to watch kittens on Animal Planet.”

This extension of JetBlue’s “Happy Jetting” theme does a nice job tapping into the current public zeitgeist, without going overboard one way or the other.  It’ll be interesting to follow the campaign and see how it performs.
JetBlue Dick_Fuld Welcome_Bigwigs JWT_Partners Lehman_Brothers

“Cheap is cool.” Thus was MediaPost’s conclusion upon naming Wal-Mart retail marketer of the year.  Like ‘em or not, I have to agree with the choice.

And anyone reading this blog regularly will probably guess my choice for worst marketer of the year (a caffeinated drumroll please)… Yes, Starbucks.  A painful example of the fact that (a) brands that don’t change with the times get into trouble and (b) having your founder return in a Michael Dell-like manner does not always work.

But I digress.

The “cheap is cool” mantra will hold through 2009.  It’s not that you can’t have fun, or a treat once in awhile, but in-bred ostentatiousness is so 2007 (and 2006 and 2005….).  Consider how your product or service can reflect the changing times and mood – even if you only make a customer feel better about all the money he’s spending.

Case in point:  slum tourism, the phenomenon of people spending a lot of money to visit the poorest slums of the world.  Are they helping matters?  Questionable.  Do they have a more soulful story for their friends (formerly known as Lehman Brothers masters of the universe) when they come home than they did after last year’s trip to St. Bart?  Absolutely.

slum tourism    Wal-Mart    Starbucks

Technomic recently announced the top 5 restaurant trends for 2009.  I didn’t think the list held too many foodie-oriented surprises, declaring “ethnic flavors will continue to star” and “experimentation with flower.”

While Technomic’s press release acknowledged that the coming year will be even more of a “buyer’s market” than 2008, I was surprised to see that none of the trends reflected the fact that what is not flowering is consumers’ wallets.  There is no mention of how restaurateurs are going to try to drive traffic in the worst economy since the ’30s.  One of the trends, in fact – “kids menus will be up-scaled and expanded” – could imply an up-scaled price, as well.

This is odd, given that Technomic itself issued the results of a survey in October indicating that restaurants will be hit hard by the weakened economy.  74% of consumers plan on visit QSRs and full-service establishments less often next year and 50% - including 70% of higher income diners – plan to spend less when they do dine out.

At least from a consumer point of view, there seems to be an odd disconnect between the trend list and reality.

Well, I said it a couple days ago – the onslaught of enormous discounts would soon desensitize consumers to sales (10% off!  $25 off of $100!  25% off from 2- 4am!) – and there it is in the Wall Street Journal today.  Christina Binkley, who covers fashion and other categories for WSJ, writes in a big article about shopping for bargains that she’s “turning up [her] nose these days at most fashion discounts of less than 50%.”  50%!

This is not a good sign for clothing retailers and will soon spread to other categories.  And higher and higher discounts are not the answer:  like some foods, the more you eat the more you need to feel satisfied… until your status becomes untenable.  Discounts are simply going to a create a new – lower – floor for prices overall.

So it’s vitally important that retailers of all shapes and sizes look for ways to stay present in the minds of important customers and prospects.  Take Saks, which is suffering some awful results as well as huge discounts:  do exclusive store events.  Consider refer-a-friend vehicles where a customer can get something special for getting a friend to stop by.  Increase your email volume and, where you have past shopping behavior information, try to customize the content.  For the woman who has even looked at Bottega Veneta bag on your website (let alone bought one), see if one of the designers at Bottega would be willing to contribute monthly advice about how to purchase and maintain quality leather products.

It’s not always about how much money you spend on a customer – and the sad fact is that all the discounts in the world may not create sales right now.  But you want to keep a customer warm for the someday when he/she is willing to spend money again.  Keep in touch.  Demonstrate value.  Do things like the Bottega example above that don’t appear to be a sales pitch and allow the recipient to feel special.

The small ideas on the fringe about being “nice” to customers may be worth far more than that for some time to come.

 Bottega Veneta    Saks    Saks Fifth Avenue    direct marketing    email marketing

One of my favorite newsletters has labeled the trend toward brands offering special perks as “perkonomics.”

Trendwatching.com points out that while the credit card, travel and hospitality industries have relied on rewarding good customers with cashless privileges (seat and room upgrades, etc.), most other businesses and brands have not seized the same opportunity.

I think there are many many reasons why perkonomics is going to become increasingly important:  (a) I haven’t heard anyone talk about this, but I believe that consumers are going to become desensitized to discounts.  As we dive into this recession, everyone is offering dollars or % off in big numbers and – over time – this will lose its power.  The prevalence of discounts will simply serve to lower overall price expectations.  It’ll  take more to jumpstart a consumer’s loyalty.  (b) Have you noticed that it’s harder just to navigate the world lately?  Companies under pressure tend to cut services and benefits.  Those who can offer experiences that cost them little to nothing will see appreciation that far outweighs their actions. (c) Competition means that it’s too easy for a consumer to dump you and move on.  The little things are what will keep them. (d) There are still segments with cash and market power who – at least for awhile – may wish to be less ostentatious with their purchases.  Brands need to stay fresh and memorable (and appreciated) during the downturn.

I’ve been thinking about this since a friend told me that Visa Signature offered exclusive lavatories to cardholders attending a big music and arts festival.  Would you expect a special potty from your credit card?  No.  Will you always remember the huge lines for the regular icky bathrooms while you were treated to a better experience?  You bet.

Whether it’s a dedicated line at club, a special reservations phone number at a restaurant or a free bottle of water in a hotel room – these are the things that consumers will remember and that cannot be “bought.”

Trendwatching.com

September is the big month for fashion magazines.  The cover of this month’s Bazaar shouts “1207 New Looks!” and Vogue is 798 pages long.  Every year I get out a wheelbarrow and tote them home.  It can take a month to get through them, but it’s a fun tradition.

Much of the entertainment value comes from the advertisers, who sometimes try to seem a little sexier, a little whackier, a little more avant-garde in these annual issues.

So I guess that’s what Perrier was going for with its “Riskier” ad, but is demonstrating the use of electrical products in the bathtub all they could muster?? 

It certainly does give a whole new meaning to the dangers of bottled water…

Bazaar  Vogue  Perrier  fashion 

Westin’s current ad campaign promotes its hotels as veritable oases of renewal and inspiration.  On everything from TV to print to outdoor, the ads beacon with beautiful imagery and the line “This is how it should feel.”

Since I stayed at a Westin recently – and the bathroom was dirty – the only thing I’m feeling is slightly annoyed and a little skeevy.

The latest execution I noticed is a print execution in Fortune.  It’s a full-color ad showing nothing but rows of what looks like lettuce, growing in ripe, red soil, bathed in sunlight.  Tell me again why my hotel stay is supposed to feel like rows of lettuce? 

ChiefMarketer chose “Breathe” as the best 15-second TV promo because (the site was trying to be nice and) it’s the only one that comes anywhere close to presenting a consumer benefit.  A soft-focus swirl transforms into the word “Breathe” on-screen, after which a text line informs the viewer that Westin is the first major hotel chain to go smoke-free.  That is a long, long way from the way harangued travelers actually want to ”feel” which, for many, would be closer to hoping that the batteries in the TV remote work, the wireless Internet access is easy to use and the bedspread has been washed since the last Presidential election.

Part of my overall philosophy is that a brand must do what it is supposed to do, and do it well, before a consumer can give it emotional permission to venture into untested waters.  If ”core” doesn’t come before ”quirky,” the latter will be met with indifference, at best, and frustration or even disgust, at worst.

Prior to the “This is how it should feel” mantra, Westin focused on the Heavenly Bed - remember that?  It is actually a pretty great bed and – unlike lettuce - this message delivered on one of the core expectations of every hotel guest:  a good night’s sleep.
WestinStarwoodHeavenly Bed

Lifebooker.com is a pretty nice idea.  The site says it’s my “personal online concierge” to real-time discounted spa appointments. 

Every woman knows that getting a last-minute spa appointment (let alone finding a good deal) is essentially impossible.  But on Saturday around noon, the site informed me that I could get my eyebrows shaped at 4:30 at Rita Hazan at 15% off, and my guy could get a 50% off man’s mani-pedi at Sunpoint on the same day. 

Great site, especially for us hurried ladies in the big city.  I would add the ability to sort not only be service and time, but also by specific salon or spa.
LifebookerRita Hazan

Select Soho House clubs and hotels in NY and the UK are now offering emergency same-day wardrobe service in partnership with NetAPorter.com.  Designer shoes, accessories, dresses… forget – or ruin – something while traveling?  These two premium brands have you covered.

Swing tags in every room will promote “emergency wardrobe” service.

This is so very clever and useful.  Beyond the service’s usefulness, though, I think women will take advantage of it for the fun and the splurge of it, too:  a new dress chosen with your significant other – for a special dinner that same evening in a chic hotel in a chic city – will add to the experience for many.
Soho Housenetaporter.com