Tag: Marketing

Marx MasterCards Prove Highly Popular in Germany

Karl Marx MasterCard

The Sparkasse Bank in Chemnitz, in eastern Germany, asked customers to vote on images they would most like to see on their MasterCards, and by far the winner was Karl Marx, the German philosopher who predicted the end of capitalism. More than one third of people voting selected Marx’s image. The bank reports that even people in western Germany were calling and asking to open bank accounts to get a MasterCard with Marx’s image on it. Reuters reports that a survey done in 2008 revealed that 52 percent of citizens living in eastern Germany thought the free market economy was “unsuitable” and 43 percent preferred to go back to a socialist system. NPR’s Planet Money, in a report on the Karl Marx MasterCard, asked people to suggest possible slogans to advertise the card. Some of the responses?  “Che Guevara t-shirt: $15. Annotated copy of the Communist Manifesto: $10. Being able to demonstrate your ideological confusion every time you make a purchase: Priceless.,” “I don’t always seize the means of production from the bourgeoisie, but when I do, I prefer the Marx MasterCard,” “A Mastercard for the master race,” and my personal favorite: “Use it when you’re in the red.”

Main sources: National Public Radio, June 15, 2012 and Reuters, June 15, 2012

RJR’s “Project SCUM” Targeted Gays, the Homeless, Immigrants and Youth

 

Front page of RJR’s “Project Scum” document

This post is part of our ongoing series exploring the millions of previously-secret tobacco industry documents now available on the Internet. – Ed.

“Project SCUM” was R.J. Reynolds’ plan to increase sales of Camel cigarettes in the San Francisco area by marketing them to gay people in the Castro district, “rebellious, Generation X” -ers, people of “international influence” and “street people,” by introducing Camel cigarettes into less-traditional retail outlets like “head shops.” SCUM was an acronym that stood for “Sub-Culture Urban Marketing.” RJR’s rationale for the project was a higher incidence of smoking and drug use in these subcultures.  There are several versions of the “Project SCUM” document, ranging in dates from 1995-97.  Each offers revealing marginalia (handwritten markings on the page). For example, in one document, handwritten in next to a bulleted list of consumer subcultures are the words “Gay/Castro” and “Tenderloin,” referring to gay areas of San Francisco.  Next to a list that discusses the rationale for the program, a line says “higher incidents of smoking in subcultures” and has the phrase “and drugs” handwritten in.  On yet another copy, the phrase “and drugs” is crossed out, revealing RJR’s  ambivalence about their exploitation of the drug culture.  A later copy of the document’s title page has the word “SCUM” crossed out and the word “Sourdough” handwritten in, as though RJR  realized too late the derogatory name they had slapped on their customers. See a copy of RJR’s Project Scum document here.

 

The Average Soda is 6 Times Bigger Than in the 1950s?

The average fast food restaurant meal today is over four times bigger than it was in the 1950s, according to a new website by the U.S. Centers for Disease Control. The site, MakingHealthEasier.org, encourages healthy behaviors to help head off chronic disease. CDC finds that portion creep has resulted in a “new abnormal” for food portions in American society. In the 1950s, the average fountain soda at a fast food restaurant was just 7 ounces. Today it’s 42 ounces. The average hamburger was 3.9 ounces, and today it’s 12 ounces. A portion of french fries in the 1950s was just 2.4 ounces and today it is 6.7 ounces. Since the early 1900s, the average size of a chocolate bar has increased by 1,233 percent. Since the 1960s, the weight of the average American woman has increased by 24.5 pounds and the average weight of a man has increased by 28 pounds. As portions have grown, so have obesity and diabetes, and the problems and medical expense they bring.  In 1958, only about one percent of the country’s population had diabetes. By 2009, that number had risen 22 percent. In 2011, an estimated  25.6 million (11.3%) (pdf) of people age 20 and above were diagnosed with diabetes in the U.S., with an estimated 7 million more undiagnosed. Medical expenses for diabetics are over two times greater than people without diabetes.

Source: U.S. Centers for Disease Control, May 21, 2012

Skip TV Ads, Go to Jail?

The major television networks ABC, CBS, Fox and NBC are arguing that skipping commercials while watching TV shows recorded on a digital video recorder (DVR) is illegal. In a lawsuit against Dish Network, the TV networks are charging that a new feature called “AutoHop” on Dish’s new DVR that allows people to skip TV ads “induces” copyright infringement. The networks claim that skipping ads in effect robs the advertisers who pay good money to the networks with the expectation that viewers will be forced to see them. The problem is that the manufacturer of a technology can’t be held liable for inducing copyright infringement unless customers are actually proven to infringe, so the networks must prove to a court that people who simply record a TV show, watch it at a later time and skip the ads are violating federal copyright law. The networks’ suit mimics a previous lawsuit they filed in 2002 against a company called ReplayTV that made a recording device with an automatic commercial-skip feature. The sheer expense of the lawsuit drove ReplayTV out of business before a court could rule on their theory of copyright infringement. Now the networks are leveling same charges against Dish, but Dish is fighting back. It’s filed its own lawsuit against the networks charging them with attempting to stifle its latest innovation. In its counter-suit, Dish points out that its “Hopper” recorder does not erase or delete any commercials, and they “remain on the recording and can be readily viewed at each customer’s individual option.”

Main source: Electronic Frontier Foundation, May 25, 2012

R.J. Reynolds’ “Salem Black Initiative,” 1989

This 1989 R.J. Reynolds marketing report summarizes a company brainstorming session to find ways to increase sales of Salem cigarettes to African Americans. It exemplifies how marketers view a target audience and try to appeal to them, in this case to market an addictive and deadly product. The report concludes that “the best way to reach minority consumers is through their local communities.” It says,

“…the brand’s support must be seen as being backed by other blacks — not as a big white company’s tactic to sell to blacks. If Salem can become a positive contributing factor to blacks’ economic and personal well-being, it could ultimately be ‘unpatriotic to smoke anything else.”

RJR's 2004 Kool Mixx campaign featured images of rappers, DJs and dancers on cigarette packs and in ads.

The marketers say “Salem should be seen as a friend,” and suggest ways to play up the positive aspects of [young adult] black smokers and their lifestyle, listing words and fashion items from the African American community at the time:

“…fresh” “fade” (kill) “bank” (money) “hooked”(together) “chillin'” “def” (cold, funky, hard, it’s happening) “stylin'” “dis” (disrespectful) – lots of bracelets – 2-3 holes in ear (African influence) – nose studs – fades, parts, braids – thrashed jeans – micro spandex shorts – side snap warm-up suits…”

Skechers Pays $40 Million for Deceptively Advertising “Butt Toning” Shoes

Kim Kardashian helped market Skechers "toning shoes"

Skechers, the maker of those roly-poly  “toning shoes” that were a big craze back in 2010, will shell out $40 million to settle charges that it deceived consumers with phony claims the shoes conferred health benefits like weight loss, muscle strengthening and butt toning.  Back in 2010, fitness footwear companies like Skechers, Nike and Reebok raked in about $1.1 billion from the “toning shoe” market by charging between $100 and $200 a pair for the shoes. Skechers controlled about 60 percent of the market, and Reebok had about a 33 percent share. The companies created demand for the shoes by running ads that falsely claimed they would help wearers “shape up while you walk” or  “get in shape without setting foot in a gym.” The Federal Trade Commission (FTC) alleged that the shoe manufacturers fudged studies and statistics to make claims about the shoes that they could not support. Last  September, Reebok agreed to pay $25 million to settle charges that it deceptively advertised roly-poly shoes with names like TrainTone, RunTone and EasyTone.  The companies are paying the millions of dollars into a fund to which shoe purchasers can apply for a refund. If you bought Reebok toning shoes, you can click here to apply for a refund. People who fell for Skechers “butt toning” shoe ads and bought them can keep an eye on this website to get refunds when the account it set up.

Main source: Advertising Age, May 16, 2012

The Bottled Water Scam

Some beverage companies secretly bottle tap water and then charge 1,900 times more for it

People who buy bottled water pay up to 1,900 times what tap water costs, but get less access to key information about the pricey water than they do for tap water. Big companies that sell bottled water, like Pepsi (Aquafina) and Coke (Crystal Geyser), want you to think their water is special, but refuse to reveal where their water comes from, the methods used to purify it or whether their own testing revealed any contaminants in the water. According to the Environmental Working Group (pdf), the makers of the top ten best-selling brands of bottled water refuse to answer at least one of those questions. Only one — Nestle, maker of Pure Life Purified water — willingly discloses the specific source of its water, treatment method and gives consumers access to a water quality test report. Digging for information reveals that at at least one brand of bottled water, Aquafina, is bottled from a public water source. California passed a law in 2007 ordering bottle water manufacturers to publicly disclose quality information about their bottled water, but as of 2011 only 34 percent of companies were complying with the law. When asked to supply water quality information, the makers of Aquafina claimed it was “proprietary information” that was “not for the public.” Bottled water companies make claims like their water is purely from rainfall, purified by “equatorial winds” (Fiji Water) or can help you live longer, but cannot and do not substantiate these claims. In the mean time, every 27 hours, Americans drink enough bottled water to circle the Earth with plastic bottles stacked end to end. EWG recommends drinking filtered tap water instead of bottled water. Municipalities issue annual tap water quality reports that are always available to the public.

Source: Environmental Working Group report 2011 Bottled Water Scorecard (pdf)

Bizarre Ideas to Sell More Smokes from Philip Morris

This 1987 Philip Morris brainstorming document is full of bizarre ideas for how to make cigarettes more appealing and marketable to consumers, and how to design cigarettes to help counter the social stigma of smoking. Ideas include making cigarettes that deodorize a room, control appetite, alter consciousness, administer an aphrodisiac, mimic certain drugs, emit insect repellant, control cholesterol intake, serve as a laxative, renew energy, and even –amazingly enough — cure cancer (although ironically this last one was one of the very few ideas that was later crossed off the list).

Page 3 contains a brief discussion of how to lure quitters back to smoking: “Someone suggested talking with quitters to discover how we might recover these consumers…” The document also discusses ways to “turn the tables” on the Surgeon General by making a “healthy cigarette,” and ways to make the pack more attractive and useful. Ideas include making the pack into a smoke detector, an alarm clock, a calculator, a “handy mirror,” a “breatholyzer”, or use microchips to make packs that play tunes, or tell smokers how many cigarettes remain in the pack. Another idea was for a “jolt” cigarette that offered extra-high nicotine.  Other ideas included cigarettes that enhance athletic performance and increase lung capacity, or slow formation of wrinkles, a “taco-dorito”- flavored cigarette and a carbonated cigarette that would make the mouth all tingly.

Abbott Labs Pays $1.6 Billion for Illegal Drug Marketing

Abbott Laboratories, the maker of Ensure, PaediaSure, Similac and Vicodin, pled guilty to misbranding and illegally marketing its drug Depakote. Abbott will pay a $1.6 billion fine and undergo five years of probation under an agreement reached with the U.S. Department of Justice in which Abbott admitted that from 1998 to 2006 it kept a separate, specially-trained sales force to market Depakote to nursing homes for the control of aggression and agitation in elderly patients with dementia, even though no credible scientific research existed showing Depakote was effective for that use. Abbott also admitted that from 2001 through 2006 it marketed Depakote for the treatment schizophrenia, in the absence of any proof that the drug was effective for that condition, either. Abbott funded two separate studies on the use of Depakote for schizophrenia, but neither study met its set goals. Abbott took two years to tell its sales force about the failed studies, and in the meantime kept marketing Depakote for schizophrenia. The case against Abbott arose in 2007 when a former Abbott saleswoman filed a lawsuit accusing the company of encouraging  its sales force to illegally promote use of Depakote in nursing homes and publicly-operated mental health centers, where most patients are covered by federal health programs like Medicaid. Whistleblowers also filed suits against Abbott in Virginia, Illinois and the District of Columbia accusing the company of paying illegal kickbacks to doctors and pharmacists to discuss off-label uses of Depakote to increase sales.

Main source: Courthouse News Service, May 7, 2012

Health Insurers Shake Down Subscribers for Prescriptions

Big health insurers have found yet another new way to extort customers — by buying up “pharmacy benefit managers,” (companies that supply medications to people) and then forcing subscribers to buy medications exclusively from the drug distributors they own. People are receiving letters from their health insurance companies telling them they must either buy medications from a specific company they own and get medications through the mail, or patronize a retail drug store of their choice and pay a much higher price. Prices may be lower for insurance companies under this kind of arrangement, but policyholders miss out on face-to-face interaction with pharmacists, who verbally counsel customers on drug dosing instructions and dangerous interactions with other drugs. Herding people towards a single option drug supplier is also taking a toll on neighborhood pharmacies who have been serving the same families for generations. The trend towards consolidation in the drug sales market starkly limits consumer choice. Just three major pharmacy benefit management companies dominate the drug delivery market: Express Scripts Holding, which recently bought Medco for $29 billion, CVS Caremark, and OptumRX, a subsidiary that now belongs to the big health insurance company UnitedHealthcare Group.

Source: Los Angeles Times (consumer advocate David Lazarus), May 4, 2012

NFL Players Promote Adult Diapers

NFL football players endorsing products for money isn’t new, but DeMarcus Ware of the Dallas Cowboys, Wes Welker of the New England Patriots and Clay Matthews of the Green Bay Packers have all agreed to try on “Depend” adult undergarments and promote them by wearing them on the field — and on camera — while running drills.  Kimberly-Clark, the maker of Depends, has a new ad campaign called the “Great American Try On,” in which American celebrities and sports icons wear the underwear in public in exchange for hefty donations to selected charities. Sexy actress Lisa Rinna appears in a new ad in which she announces she is wearing the company’s new “Silhouette” product under a slinky, form-fitting black dress while walking the red carpet with her husband. 

Johnson & Johnson Fined $1.2 Billion for Illegal Drug Marketing

The state of Arkansas has ordered Johnson & Johnson and one of its subsidiaries, Janssen Pharmaceuticals, to pay $1.2 billion in fines for deceptively marketing the antipsychotic drug Risperdal, approved to treat conditions like schizophrenia and bipolar disorder. The companies were accused of failing to provide adequate warning about potential side effects of the drug, which include diabetes, weight gain, neurological problems and increased risk of strokes and death in elderly patients with dementia.   Fletch Trammell, a lawyer in the case who had used Risperdal, said that J&J hid studies that showed Risperdal caused diabetes at a higher rate than a competing drug. The court also found nearly 240,000 instances in which the companies violated the state laws against Medicaid fraud, with each count representing one prescription for Risperdal written to a state Medicaid patient over a 3 1/2 year period. The fine for the Medicaid fraud portion of the case, at $5,000 per prescription, was the state’s minimum.  A 12 person jury deliberated for three hours before finding against J&J. Arkansas is just one of several states suing over Risperdal. South Carolina and Texas have already reached settlements with J&J in their lawsuits. J&J plans to appeal the Arkansas ruling, claiming it did not break the law and that the package insert that comes with the medication was approved by the U.S. Food and Drug Administration.

Main source: New York Times, April 11, 2012

Campaign Urges Hospitals to Evict McDonalds Restaurants

Corporate Accountability International (CAI), a group that challenges corporate abuses, posted an  open letter on its website asking hospitals that house McDonalds restaurants to end their contracts with the fast food chain to “stop fostering a food environment that promotes harm, not health.” The letter points out that the rates at which children suffer from diet-related illnesses like diabetes are “staggering,” and the problem is related in part to the consumption of junk food. Locating McDonalds stores in  hospitals is part of a marketing strategy, CAI says, that is aimed at imparting an aura of healthfulness to the food — a goal that is inconsistent with the goals of a health institution.  “Health professionals are devoted to caring for sick children and adults and to preventing illness. But these efforts cannot compete with the profit-driven mechanisms by which McDonalds and the fast food industry operate their business, and the toll that McDonalds’ practices have had on children’s health,” the letter states. CAI’s petition to get McDonalds out of hospitals is here.

Facebook Shuns Women in Advance of IPO

Facebook's Board of Directors

Fifty-eight percent of Facebook users are women, and women account for over 70 percent of daily fan activity on the site, but when Facebook goes public a few weeks from now, its board of directors will consist of only seven white men, and no women. To address this inequity, the women’s rights group Ultraviolet has started circulating a petition, and a group of women from across the world have started a campaign called “Face It” to pressure Facebook to include women — and expand the diversity — on its board. What’s raising eyebrows even more about the complete absence of women from the board is the extent to which Facebook depends on women, since women are known to be more avid users of Facebook than men and account for about 70 percent of Facebook’s fan activity.  Facebook’s estimated $100 billion public stock offering would not be anywhere as big as it is without massive participation from women — a fact that the demographics of its board fails to reflect.

Vodka Ad Jokes About Sexual Assault, Gets Yanked

Offensive Facebook ad for Belvedere Vodka

The makers of Belvedere Vodka yanked a controversial ad that appeared to joke about rape. The ad showed a horrified woman trying desperately to escape from a leering man who was grabbing her from behind. The tagline read, “Unlike some people, Belvedere always goes down smoothly.” The company tweeted the controversial ad and posted it on their Facebook page, only to get strong and immediate backlash. Belvedere moved quickly to remove the post and apologized several times. Belvedere’s ad agency, Arnell Group, has done ads with strong sexual overtones for the brand before, but the agency denies that it created this particularly controversial ad.

Main Source: Ad Age, March 23, 2012

DirecTV’s Disappearing-Channels Scam

Thinking of subscribing to DirecTV? Think again. DirecTV pulls a fast one on subscribers to push them into more expensive packages after they sign up. Here’s how it works: Like all cable and satellite TV providers, DirecTV offers different levels of programming that include specific channels. New subscribers select the package with the channels they want — or so they think. A few months after you subscribe to their service, DirecTV pulls some of the channels originally included in your package. All of a sudden when you try to watch those channels, you get a “Channel Not Purchased” message on your screen. When you call DirecTV to tell them about the suddenly-missing channels, they say they’ve taken them out of your package and you’ll need to upgrade to a pricier package to get them back. DirecTV makes little effort to notify subscribers in advance of this change. They don’t announce the changes, for example, in any of the regular emails they send customers announcing special deals and “free” weekends of premium channels. They don’t add any more channels to your package to make up for the ones they’ve removed, and they don’t compensate customers financially for the loss by adjusting your bill for the channels you no longer get. On their website, they explain the loss by saying they took the channels away to help “manage rising programming costs.” Their website also says, “At DIRECTV, we strive to bring you the best entertainment experience available.” All you have to do is subscribe, or peruse the comments at CustomerServiceScoreboard.com/DIRECTV to find out that DirecTV pulls this scam with relative frequency. DirecTV also charges you $10.00/month extra to get a high-definition receiver, where most other pay TV services provide HD to all customers as part of the deal.

In-Your-Face Ad Leverages Smoker Frustration to Sell E-Cigarettes

Ad leverages smokers' frustration to sell e-cigarettes

The maker of the “blu” brand of electronic cigarette is hoping smokers will respond to a particularly aggressive ad campaign that exploits their frustration and anger to sell more of their product. The ad’s  headline that says, “Dear Smoking Ban.” Beneath the headline is a photo of an angry older, middle-aged woman flipping her middle finger at the viewer. The ad text links smoking to freedom, a psychological construct long used by the tobacco industry to counteract the understanding that nicotine causes a powerful addiction that robs smokers of control over their tobacco use. The ad text says, “Take back your freedom to smoke anywhere with blu electronic cigarettes. blu produces no smoke and no ash, only vapor, making it the smarter alternative to regular cigarettes. It’s the most satisfying way to tell the smoking bans to kiss off. Okay, maybe the second most satisfying way.”  Electronic cigarettes contain nicotine, but since they don’t actually burn tobacco, they don’t contain as much of the hazardous byproducts of burned tobacco.

Billboard Scans Faces of Passers-By, Shows Ads Only to Women

A digital billboard at a bus stop on London’s busy Oxford Street has a built-in HD camera that scans the faces of people waiting nearby and shows ads only to women. The camera analyzes the facial features of pedestrians, like the shape of the jaw, the distance between the eyes and the width of the nose, to determine which subjects are female. When it determines a female is watching, it shows an ad called “Choices for Girls” that aims to raise awareness of the lack of educational opportunities available to females in developing countries. Men only see a web link to a charity’s official website.

Source: The Tech Herald, February 22, 2011