Airline marketing

Six Steps to Building a Swashbuckling Airline Brand
http://www.brandchannel.com/images/papers/428_Airline_Branding.pdf
Abstract: The airline industry is unique—it is cyclical in nature, incurs high-fixed costs, there are uncertainties due to heavy dependency on other fluctuating factors like oil prices and has a length of engagement with the customer that is not common in other industries.

An ideal branding model for the airlines would take into account both the realities of business and the nature of the industry. The 6X branding model helps guide an airline's branding approach by focusing on six key levers: Brand Xpectation, Brand Xperience, Brand Xpression, Brand Xternalities, Brand Xtensibility and Brand X-Factor.

Credit card marketing

ANZ/Visa card loses contact
http://www.east.com.au/bankingnews.asp?id=2420
(23 July 2008 – Australia) ANZ and Visa have launched the first reloadable, prepaid contactless card in Australia.The card uses new technology developed to take away the need for signature or pin verification on low value transactions.

The ANZ Visa card allows customers to make payments for transactions under the value of $35 without the need for a PIN or signature, by holding their card within five centimetres of a contactless reader.

The new ANZ Stadium Visa payWave card is so named because of its launch at the first Bledisloe Cup rugby union match of 2008 at ANZ Stadium in Sydney. Credit of $25 will be provided for 2000 cards at the launch to pay for food and beverages.

Visa’s general manager for Australia and New Zealand, Chris Clark said that the new card is designed to improve the customer experience at major events by reducing transaction times.Clark also said that an average transaction with the new card can be completed in four to six seconds, less than half the time of a cash transaction which averages 12 to 14 seconds.The new technology is part of Visa’s long term strategy in Australia.

The cards carry an antenna and computer chip embedded in the card which securely transmits payment instructions to and from a specially adapted card terminal. The cardholder keeps control of the card throughout the transaction to reduce the risk of fraud.The card can be reloaded with funds using BPAY via internet or phone banking and has a magnetic stripe so it can be used as a Visa prepaid card for merchant outlets outside of ANZ Stadium.

Australians don’t like carrying cash
http://www.smartcompany.com.au/Free-Articles/Trends/20080715-Australians-dont-like-carrying-cash.html?source=cmailer
Australians feel more uncomfortable carrying large amounts of cash around in their wallet or purse than any other people in the world, a new global survey of more than 7000 people shows.
According to the survey, by credit card company Mastercard, 88% of Australians don’t like carrying a lot of money around, ahead of New Zealand (87%) and Singapore (58%).

People from those three countries were also most likely to say they carry less cash around today than they did five years ago.

A majority (60%) of Australian respondents to the survey said they usually carry the equivalent of $US50 or less in their wallet, while people in Italy were the most likely to have a big wad of cash with them. Consumers in Singapore and China were the most likely to carry less than $US50 in cash at a time.

Pre-paid cards lock in gas prices
http://springwise.com/weekly/2008-07-09.htm#mygallons
Today's high gas prices are already forcing changes in the way many consumers live, but it's a pretty safe bet they won't look so bad in a year or two. A new service from MyGallons.com lets consumers prepurchase gas and lock in today's gas prices for the future.

Consumers who sign up for a MyGallons Card begin by paying an annual membership fee of USD 29.95. Up to three cards can be linked to one account, and the membership fee is backed by a 100 percent money-back guarantee if the consumer doesn't save money on at least one redemption during the year. Members can then monitor their current MyGallons price—a fluctuating quote that's good for purchase of unleaded gas at a particular point in time, including estimated local taxes—and prepurchase gas when they deem the price worth locking in. Purchasing gas is simply a matter of visiting a participating gas station, where the MyGallons Card is accepted much like a debit card, complete with four-digit PIN. The number of gallons pumped is deducted from the consumer's MyGallons account balance, with adjustments automatically made for more expensive grades or types of fuel and price differences caused by tax discrepancies or other local variations. If the consumer pumps fuel from a filling station for less than the lower end of the MyGallons range on that day, he or she will receive a credit, in gallons, to his or her account.

More than 80 percent of the prepurchase money consumers spend through MyGallons is placed in an escrow account and invested in money markets and US government-backed notes; the remainder is used for financial transactions to accommodate gasoline price changes, MyGallons says. There are no time limits on using the prepurchased gas, so consumers can save it for as long as they want, provided they maintain their MyGallons membership.

After a pilot program beginning in April, MyGallons.com just recently underwent a public launch. Due to an unexpected, last-minute pull-out by US Bank, it is in the process of negotiating with other payment networks to allow the MyGallons Card to be accepted at most stations in the US that already accept credit cards. Nevertheless, the service promises to be a taste of what's to come.

Website: http://www.mygallons.com/

High Interest in Branding Credit Cards
http://www.brandchannel.com/start1.asp?fa_id=428
Extracts: The “Big Four”—Visa, MasterCard, American Express, and Discover Card—have individual brand messages, but Visa is the clear winner in market share: According to a recent Nilson Report, Visa claimed 44 percent of the US credit card market, while MasterCard nailed 31 percent, Amex grabbed 22 percent, and Discover came in at five percent.

American Express is probably the easiest to parse in terms of brand identity. Often considered the gold (or platinum) standard of payment possibilities, Amex represents the elite spender with extensive buying power who can manage to pay that hefty bill in full every month. Trust, customer loyalty, and ease of use are also hallmarks of the Amex brand. In an independent research study conducted by the Ponemon Institute and TRUSTe, Amex has ranked in the top 25 most-trusted companies for the past two years.

If you’ve been a Discover member from the beginning, you’re likely a loyal one: The brand’s cardmembers hold their accounts for an average of 8.6 years, versus 6.2 for the industry, according to a study cited in Brandweek. And for the 11th year in a row, Discover Card has ranked number one among leading credit-card brands, according to the 2008 Brand Keys Customer Loyalty Engagement Index. “Discover is a leader in cash rewards—some of the key advantages include our CashbackBonus rewards program. Cardmembers also have the ability to increase, even double, their rewards when they redeem for gift certificates from our over 100 participating retailers. ShopDiscover, our online shopping portal, allows cardmembers to earn 5–20 percent CBB."

Visa and MasterCard are the two brands that have not been so easy to separate. Their omnipresence is one reason they’ve become so closely aligned over the years: They’re both accepted in a staggering number of countries worldwide (MC claims 210 countries, Visa at least 170).

Births, deaths and marriages marketing

Movie poster birth announcements
http://www.springwise.com/style_design/movie_poster_birth_announcemen/
Consumers are never too young for a little gravanity, particularly when proud parents are buying it for them. Enter 5starbaby.com, which offers personalized birth announcements fashioned after movie advertisement posters.

Each movie poster birth announcement from 5starbaby is tailor-made for the new arrival, complete with all the critical “stats” about the baby’s birth and the names of loved ones as "supporting cast." Parents are listed as "producers," the doctor is named as "director" and the hospital is listed as the "filmed in" setting, for example. "Critics' quotes" can also be included, as can "catering" by the mother and options for virtually any other special people or ideas the parents want listed. "Ratings" given are "B" for boy, "G" for girl or "T" for twins.

Movie poster birth announcements are 5-by-8-inch mini posters; pricing begins at USD 2.50 each with envelopes included. 5starbaby.com also offers large poster formats ranging from USD 25 to USD 120 each, and gift certificates are available for baby showers or other occasions.
Buffalo, NY-based 5starbaby.com will ship orders anywhere in the world, but localized versions in other languages are a natural next step. One to bring to proud parents and gift-givers around the globe! (Related: Gravanity books for kids.)

Website: www.5starbaby.com Contact: pete@5starbaby.com

Business decision processes

Word of Mouth the #1 Influence on Business Buying Decisions
http://kellerfay.com/?page_id=52
Extracts: Word of mouth — one person sharing marketing-relevant information with another person — is far more influential for business executives than other communication channels. Fifty percent of business executives report they are highly likely to buy a product or service based on word of mouth; 49% pass on what they’ve heard to others. Executives report that word of mouth has more than twice the influence of advertising, direct mail or press coverage on purchase decisions.

Business decision-makers most value communication channels that provide two-way dialogue. Top influences on their business purchases are: recommendations from a colleague or friend, interaction with a salesperson, interaction at in-person marketing events, conferences and tradeshows and the Internet.

The vast majority of executive word of mouth occurs “offline,” with over 75% happening in-person. Online and digital media account for only a small portion of executive word of mouth, with email comprising three percent, and IM/text messaging and blogs/online chat accounting for about one percent each. Face-to-face interaction predominates both at the office and at home — and defies conventional wisdom that word of mouth is largely electronic.

Survey: Better Data, Measurement Abilities, and ROI Metrics Boost Marketing Performance
http://www.marketingprofs.com/8/better-data-measurement-roi-metrics-boost-marketing-performance-lenskold.asp?adref=znnpbsc378
Want to take your performance to that ideal level of highly effective and efficient marketing?
It takes better access to detailed data and ROI discipline, but it also comes along with greater growth and better levels of budgets, according to the recently released Lenskold Group/Kneebone 2008 Marketing ROI and Measurements Study.

The study, conducted with 834 MarketingProfs members in April, found that most marketers (75%) are making progress in diverse areas of marketing ROI and measurement capabilities, but many continue to struggle with some basic measurements required for managing and improve marketing's contribution to business objectives.

Overall, more marketers rated their measurement abilities as negative than positive. The ability to measure the incremental impact of marketing and to diagnose performance gaps are particularly important to provide critical insight that can guide performance improvements.

Marketers who described their marketing as highly effective and efficient (just 9% of all marketers surveyed), showed better measurement and ROI practices, indicating that they are making marketing decisions with better insight. These high performers are...

• Much stronger in their measurement abilities
• Gaining access to critical data for analysis
• Much more likely to use ROI and profitability metrics to assess their marketing performance

These characteristics are helping companies to secure the right level of marketing budget to achieve their goals and to outgrow their competitors.

Measurement Abilities
Companies with highly effective and efficient marketing show much greater levels of measurement abilities, with roughly half to three-quarters providing positive ratings on their abilities—which is two to three times the levels reported from the overall base of marketers.

How companies respond to competitors: A McKinsey Global Survey
http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/How_companies_respond_to_competitors_2146
Abstract: When a competitor strikes—introducing an innovative new product, for example, or slashing prices—management theory suggests that companies should immediately dive into complex analyses of their possible moves and countermoves across the whole competitive landscape, assess these potential responses with sophisticated financial metrics such as net present value (NPV), and promptly mount a response.

The real world is much simpler, according to a McKinsey survey of executives from around the world and from a variety of sectors, including financial services, manufacturing, and high tech.1 On the whole, as companies determine how to respond to a competitor’s moves, they generally assess three or fewer options and don’t look forward more than two years. About half don’t examine more than one round of countermoves by any competitor. A significant number rely on intuition to determine a response. And companies most frequently respond with whatever counteraction is most obvious in the moment—answering a price cut, for example, with a cut of their own, which often doesn’t hit the market until at least one or two sales cycles after the competitor’s move.

Even so, most respondents to the survey say they were able to counteract at least some of the reduction in earnings they expected when they found themselves facing a competitor’s price change or innovation. Overall, they say they expected earnings to fall by an average of 7 percent, and only 22 percent of respondents felt they could offset at most 25 percent of the expected decline.2 In addition, a majority would conduct their analysis the same way—or even less exhaustively—if they faced the same situation again.

Knowing that responses to competitive moves are generally straightforward and relatively slow—and that companies are unlikely to change in this respect—gives managers new ways to think about how they might gain competitive advantage from their own moves.

How chief strategy officers think about their role: A roundtable
http://www.mckinseyquarterly.com/Strategy/Strategy_in_Practice/How_chief_strategy_officers_think_about_their_role_A_roundtable_2143 Summary: Good variety of viewpoints on the role and function of the CSO in large businesses.

Malcolm Sparrow on Controlling Risk
http://www.hks.harvard.edu/news-events/publications/insight/management/malcolm-sparrow
Extracts: Harvard Kennedy School professor Malcolm Sparrow’s research focuses on how regulators can mitigate risk, but his survey of current thinking in this area has broad ramifications for corporate and nonprofit execs as well.

His research advises risk managers to take small but determined interventions at early stages of a developing harm. The process begins by narrowing broad generalities of risk into well-defined, addressable problems.

Some highlights:

Undoing the Knot. Risk can be assessed by picking it apart, like an adult undoes a knot, Sparrow says. A child tries to untangle a knot by diving right in, randomly pulling strands and often making the problem worse. An adult begins by looking at the knot, trying to understand its structure.

“First they hold it carefully, turn it this way and that, looking at the knot from each side, until they understand the structure of the thing itself. Then a plan begins to form: ‘if I loosen this strand, it will release that one, and then I’ll be able to pass this through that loop,’ and so on. If they’ve understood the structure correctly, and formed the plan based on that understanding, then the knot falls apart, and is no more.”

Think Like a Saboteur. Focusing on specific bad things such as concentrations of risk or downward trends offers the opportunity to think and act like a saboteur, says Sparrow. Find a vulnerability in the harm itself and remove it, or produce a scarcity which the opposing forces cannot cure.

“If it’s true that there is in fact an art to the destruction of bad things, which is different from the construction of good things, then it is surely an art that we really all ought to understand.”

Thinking About Catastrophic Risk. How do you mitigate against the extremely rare catastrophic event? Sparrow says pay close attention to near misses and other “precursor events”, much like the FAA studies planes that almost crash, but don’t.

“Dealing with catastrophic risks demands this type of systematic debriefing of near misses, precursor events, as well as disasters that might have happened elsewhere. It also demands the deliberate use of imagination, to figure out all the ways in which events, or near-events, could have been much worse., which has very few plane crashes from which to draw data.”

Companies and agencies that effectively deal with long-term risk spot tell-tale patterns of behavior early on and quickly deal with emerging problems, he says.

Pet related marketing

Pets: Part of the Brand Family
http://www.brandchannel.com/start1.asp?fa_id=429
Extracts: Mars’ 2007 introduction of The Goodlife Recipe Brand was its largest pet food brand launch at the time, trading on consumer interest in “all natural” ingredients as a means to market cat and dog food. In 2008, Mars created an even bolder breakthrough brand unique in the dog food category—WholeMeals.

Traditionally, dog food brands have been packaged in bags, boxes, or cans. WholeMeals breaks convention because it is a meal packaged in the form of a bone. Working with dog behaviorists and veterinarians, Mars created what it believes is a revolutionary method of feeding dogs their food. The company says the WholeMeals brand provides “premium nutrition” as well as “advanced oral care” and results in “natural feeding enjoyment.”

WholeMeals is one example of how companies differentiate their brands in the cat and dog food marketplace. Recent trends show this brand category moving ever more closely toward food that looks almost fit for human consumption. Mars’ Cesar brand dog food offers the “Original Paté” menu or the “Gourmet Fillets in Sauce” menu for small dogs. Both lines are packaged in special self-contained feeding trays.

Second only to Mars in worldwide cat and dog food sales is Nestlé Purina PetCare. Purina’s Fancy Feast brand for cats goes even further than Mars’ Cesar brand with the recently introduced “Elegant Medleys: Restaurant Inspired Food for Cats.” Supported by a television ad that shows a meal prepared by a chef and then being fed to a cat by its owner, Elegant Medleys are “inspired by the traditional tastes of Tuscany,” featuring “old world flavors balanced with modern sophistication,” according to Purina.

Pet lovers create business boom
http://www.smartcompany.com.au/Free-Articles/Trends/20080617-Pet-lovers-create-business-boom.html?source=cmailer
Wednesday, 18 June 2008: Australians spend thousands of dollars each year on presents, clothing and jewellery for their pets, a new Sensis Consumer Report says.

According to the report, Australians spend an average of $1083 a year taking care of their pets, with 20% spending more than $1000, and 1% spending over $5000.

With half of all Australian households owning a pet, that means businesses such as specialist pet-goods stores, grooming services, exercise programs and in-home pet minding are booming.
Sensis says families with children are much more likely to keep their pet inside, while only 25% of pet owners keep their animals outside all the time.

The report also finds Australians are increasingly treating their pets like a member of the family, with 40% of owners buying their pets presents at Christmas or for birthdays.

Powerful presentations

Data visualisation - modern approaches
http://www.smashingmagazine.com/2007/08/02/data-visualization-modern-approaches/
Abstract: Data presentation can be beautiful, elegant and descriptive. There is a variety of conventional ways to visualize data - tables, histograms, pie charts and bar graphs are being used every day, in every project and on every possible occasion. However, to convey a message to your readers effectively, sometimes you need more than just a simple pie chart of your results. In fact, there are much better, profound, creative and absolutely fascinating ways to visualize data. Many of them might become ubiquitous in the next few years.

So what can we expect? Which innovative ideas are already being used? And what are the most creative approaches to present data in ways we’ve never thought before?

Let’s take a look at the most interesting modern approaches to data visualization as well as related articles, resources and tools.

Secrets of a Winning Presentation Useful Commute Podcast (audio presentation)
http://blogs.bnet.com/intercom/?p=1795&tag=nl.rSINGLE
Extracts: Design your content and presentation around the context of the audience before and after the presentation - what background has led them to invest in this presentation, and what will they be hoping to do better after the presentation.

Interaction is what makes people remember a presentation as it embeds the information deeply in their thinking. At the simplest level, this means asking questions of individuals in the audience and then responding directly to their answers. More sophisticated technological solutions are also available, however, focus on the audience rather than the technology.

PowerPoint is only a tool - it is a platform for displaying content. You should not use PowerPoint to organise your content, do that separately and get it right first. Then consider how best to display that content. This will lead you to prepare more interesting presentations that appropriately utilise images and key points, rather than overloading the audience with written content.

Corporate Social Responsibility (CSR)

Attaining Sustainable Growth through Corporate Social Responsibility
http://www-935.ibm.com/services/us/index.wss/ibvstudy/gbs/a1029293?cntxt=a1000074
Businesses are rapidly moving beyond the idea of Corporate Social Responsibility (CSR) as simply a necessary cost of doing business. Behind this new development is the unique role of the Internet in influencing buying behavior by providing ubiquitous, in-depth information about companies, their global supply chain partners, and their impact on society and the environment.

To gauge how deeply CSR has penetrated the core of the corporation — it's strategies and operations, IBM surveyed more than 250 business leaders globally and found that two-thirds of them are focusing on CSR activities to create new revenue streams. Yet fewer than one-quarter believe they understand their customers' CSR expectations well, a potentially alarming finding at a time when new customer expectations - and clout - are rapidly growing. Our analyses uncovered three dynamics for companies to understand and act upon in dealing with the threats and opportunities of CSR:

• Impact - from cost to growth
• Information - from visibility to transparency
• Relationships - from containment to engagement

Professional association marketing

Slow growth for professional associations (in 'Lobbying for growth')
http://www.smartcompany.com.au/Premium-Articles/Industry-Trends/20080520-Lobbying-for-growth.html
Extract: IBISWorld estimates that the sector grew at an average annual rate of 1.2% over the five year period to 2006-2007. Revenue growth was recorded for every year of the period except for 2002-2003, when reduced government spending, the demise of GST information gathering-related firms, and gnawing unemployment were factors.

But while the average industry growth was low, it is believed that some of the sector’s larger players enjoyed stronger growth. For example, professional industry associations such as those of the law and accountancy bodies, which may provide members with bulk buying power and research and data rather than representation alone.

Additional factors affecting growth may include globalisation, technology revolution, the proliferation of free trade agreements, the re-election of a pro-business government, the use of professional associations for social networking and improved self regulation.

Healthy offices

Smart Office Audit
http://www.care2.com/greenliving/smart-office-audit.html

Before you start a campaign to make your workplace healthier, you should conduct a smart office audit. This audit is a systematic way to determine the good and bad aspects of your work environment. A complete, smart office audit looks at a variety of things, including:

Air Quality

• Ventilation. (How often air is exchanged/hour, fresh air sources, e.g. loading dock.)
• Toxins. (Paints, carpets, glues, resins, plastics, pesticides used, manufacturing processes.)

Ergonomics

• Keyboards.
• Chairs.
• Desk arrangements.

Heating/Cooling

• Cost.
• Method.
• Efficiency.

Lighting

• Efficiency.
• Quality (glare, color).
• Degree of manual or automated control.

Materials Used

• Virgin vs. recycled.
• Toxic vs. non-toxic.

Production Processes

• Indoor toxins.
• Open loop manufacturing processes (characterized by unnecessary waste).
• Direct mail/publications (recycled/recylable papers, soy-based inks).

Check with your local utility to find out if it offers free or inexpensive energy audits. In addition to knowing what to look for in your lighting, heating and cooling, your utility may help to pay for the changes it recommends.

Eco-assessment for homes and businesses (Sydney based)
http://springwise.com/eco_sustainability/eco_assessment_for_homes_busin/
Sydney-based Todae offers businesses practical advice for cutting down energy and water usage and reducing their environmental impact.

For AUD$399, a Todae consultant will come to an office or store and check everything from recycling to heating and cooling systems. The business is then provided with a detailed report that explains how to cut costs and go green. Todae's service is geared to small to medium businesses looking to save money, be less harmful to the environment and create a "strong environmental brand ethos" amongst customers and staff.

It's an excellent concept, and Springwise believes many consumers would also be interested in environmental assessments. Plenty of people would like to diminish their negative impact on the earth, but aren't sure exactly what to do about it. Or are too lazy or busy or both ;-) Having an environmental expert come to the door and give a home a full check-up would definitely help. Besides compiling a checklist of very specific issues to improve, 'home greeners' could of course offer to implement the necessary changes, too. So, set it up, brand it well (how about eco badges for homes?), and start knocking on doors. Before you know it, you'll be running your own franchise.

P.S. Todae also sells a wide variety of eco products for homes and businesses, both through their website and from a recently opened shop in Sydney's Glebe district.

Website: http://www.todae.com.au/Contact: info@todae.com.au

Green concierge reduces home's carbon footprint (domestic version)
http://www.springwise.com/eco_sustainability/green_concierge_reduces_homes/
Last April when we wrote about an Australian firm called Todae that helps companies monitor their energy usage, we noted that many homeowners would likely use a similar service. Sure enough, one of our spotters found a London start-up called Green Homes Concierge which does just that.

For GBP 199, Green Homes Concierge inspectors will come to a customer’s home, toting heat-detecting cameras and other devices to help them evaluate its leaks, wall insulation and appliances. Afterwards, the inspectors will recommend ways the home’s owner can reduce CO2 emissions, and hopefully save some money in the process. Significantly, GHC’s services don’t end there. For a full year the firm will act as a helpful concierge. Should customers wish to make the inspection’s recommended improvements, GHC will help them locate contractors and suppliers able to do the work or tell them where to buy low-energy light bulbs and other environmentally friendly items. That kind of handholding can be a big help, as anyone who has tried to negotiate with contractors can attest.

GHC gets financial help from the London Development Agency, according to an article in the Guardian. The agency wants to reduce the city’s CO2 emissions by 500,000 tons by the decade’s end. And it has targeted homes for good reason. Collectively, the city’s homes produce 40 percent of London’s CO2 emissions. Without the city subsidy, GHC’s concierge services might cost several thousand pounds.

GHC’s service could easily find a home in any reasonably affluent community. True, competing public and private services exist. In the US and elsewhere, for example, energy companies, with an eye on their own bottom lines, have long encouraged homeowners to reduce utility bills by offering counseling and rebates on fuel-efficient appliances. Also common are government tax breaks to encourage homeowners to invest in energy efficiency. But, sorting through the paperwork to qualify for rebates and tax breaks can be a major chore for homeowners. So who wouldn’t want an affordable concierge to handle the paperwork? And while start-ups modeled on GHC’s services might not benefit from the municipal subsidies available in London, the companies’ real income could come from commissions earned through contractor referrals as well as project management fees.

Website: http://www.greenhomesconcierge.co.uk/
Contact: www.greenhomesconcierge.co.uk/contact

Growth predictions for environmental services industry (in The multi-billion dollar industries of the future)
http://www.smartcompany.com.au/Premium-Articles/Industry-Trends/20080604-The-multi-billion-dollar-industries-of-the-future.html
Extract: Outsourcing of environmental services could also be a growth area for Australian SMEs. For example, companies are already looking at ways to outsource functions such as the measurement of carbon usage and energy management.

Superannuation industry

Outsourcing in the superannuation industry (in The multi-billion dollar industries of the future)
http://www.smartcompany.com.au/Premium-Articles/Industry-Trends/20080604-The-multi-billion-dollar-industries-of-the-future.html
Extract: The continued swelling of Australia’s $1 trillion superannuation is already changing the face of the Australian economy and will continue to do so for the foreseeable future. It is also creating numerous opportunities through the outsourcing of transaction and investment services.

Some of the sub-industries that will grow in the coming years from outsourcing by the superannuation sector include investment managers, industry analysts, product creators, relationship management experts, financial planners, IT suppliers and asset managers. The relatively mature nature of the Australian retirement savings industry gives local companies the chance to export their services to markets where retirement savings systems are still under development. Big investment banks such as Macquarie have already helped established Australia’s reputation in the global financial services sector – it’s up to SMEs to leverage this advantage.

IBISWorld forecasts that this industry will grow at an average annual rate of 4.8% during the five year period to 2012-13. The biggest driver to industry revenue will continue to be the local superannuation funds industry, which will continue to exhibit an increase in assets largely due to compulsory superannuation contributions.

The anticipated rise in individuals' retirement at age 60 and above resulting from the removal of the tax at the end benefit stage is expected to further strengthen the demand for superannuation products and provide incentive to increase voluntary contributions in the five years to 2012-13.

External influences will also affect this sector, with the sup-prime crisis increasing the wholesale cost of funding. With increased globalisation in the finance industry, institutions are able to source funds from domestic and international sources. As such, the increased cost of wholesale funds in addition to a tightening bias towards interest rates by the RBA is likely to see variable loan repayments increase.

Outsourcing

Outsourcing in the superannuation industry (in The multi-billion dollar industries of the future)
http://www.smartcompany.com.au/Premium-Articles/Industry-Trends/20080604-The-multi-billion-dollar-industries-of-the-future.html
Extract: The continued swelling of Australia’s $1 trillion superannuation is already changing the face of the Australian economy and will continue to do so for the foreseeable future. It is also creating numerous opportunities through the outsourcing of transaction and investment services.

Some of the sub-industries that will grow in the coming years from outsourcing by the superannuation sector include investment managers, industry analysts, product creators, relationship management experts, financial planners, IT suppliers and asset managers. The relatively mature nature of the Australian retirement savings industry gives local companies the chance to export their services to markets where retirement savings systems are still under development. Big investment banks such as Macquarie have already helped established Australia’s reputation in the global financial services sector – it’s up to SMEs to leverage this advantage.

IBISWorld forecasts that this industry will grow at an average annual rate of 4.8% during the five year period to 2012-13. The biggest driver to industry revenue will continue to be the local superannuation funds industry, which will continue to exhibit an increase in assets largely due to compulsory superannuation contributions.

The anticipated rise in individuals' retirement at age 60 and above resulting from the removal of the tax at the end benefit stage is expected to further strengthen the demand for superannuation products and provide incentive to increase voluntary contributions in the five years to 2012-13.

External influences will also affect this sector, with the sup-prime crisis increasing the wholesale cost of funding. With increased globalisation in the finance industry, institutions are able to source funds from domestic and international sources. As such, the increased cost of wholesale funds in addition to a tightening bias towards interest rates by the RBA is likely to see variable loan repayments increase.

Managing multiple outsourcing relationships
http://www.accenture.com/NR/rdonlyres/C3A10D3D-6B07-4AC8-8310-3C5EA93EAB0E/0/MultipleOutsourcingRelationshipsFinal.pdf
As companies purchasing outsourcing services increasingly adopt information technology outsourcing (ITO) and business process outsourcing (BPO), they become more mature in their understanding of outsourcing and focus on optimizing their sourcing efforts. In addition to ensuring that their existing suppliers perform successfully, two other optimization levers are becoming important:

• Adopting an "enterprise" governance model
• Developing a supplier portfolio strategy
  

Companies choosing to utilize outsourcing on a broad basis have an increased need to implement enterprise governance and supplier portfolio strategies. As the scope of outsourcing increases, the complexity of managing the outsourcing efforts and their impact upon each other also increases.

• Benefits of limiting the complexity across outsourcing efforts include:
• Higher-performing and more sustainable outsourcing solutions
• Reduced confusion and wasted time
• Better mitigation of risk
  

To achieve these benefits, it is essential to carefully govern the overall outsourcing landscape and strategically space the portfolio of suppliers.

On-line payment systems and trends

No faith in mobile phone security: poll
http://news.ninemsn.com.au/article.aspx?id=597301
An overwhelming majority of Australians would not trust a mobile phone or personal digital assistant (PDA) for online transactions such as banking and shopping, research by computer firm Unisys has found.

The data revealed 78 per cent of Australian adults say they will not use a mobile phone or PDA to pay a bill, shop or bank online.

Unisys Asia-Pacific spokeswoman Jane Evans said the results showed Australians wanted greater assurance that mobile transactions were secure.

"This is not surprising in light of the increasing concern about financial security expressed in the May 2008 Unisys Security Index," Ms Evans said.

The index examines the attitudes of Australians toward mobile devices and the means by which they can be used for payments 'on the run'.

"The survey figures released show that there is a high degree of caution held by Australians in regard to mobile transactions," Ms Evans said.

"Like all new or emerging technologies, there is bound to be a settling-in period during which people become more familiar and, consequently, more confident in the transaction's security and convenience."

One in two Australians said that the transactions on mobile devices were either not very or not at all secure, the survey found.

Only seven per cent of those surveyed use a mobile phone to pay bills, shop or bank online and 12 per cent would consider it.

In terms of the types of transactions that might be made on a mobile device, Australians believe banks but not online retailers, provided the best security.

Unisys mobile payments expert Leon Oelofse said Australians were lagging the rest of the world with their uptake of the extra services provided by mobile phones.

He said that despite this payments made from mobile phone would account for between five and seven per cent of revenue for Australian banks over the next three years.

"(Overall) payments constitute 35 to 45 per cent of total bank revenues and 30 to 40 percent of operating profits," Mr Oelofse said.

"Banks must therefore respond to customer expectations for more convenient payment services or risk losing customers and revenue."

About 1,200 consumers were surveyed on behalf of Unisys.

Online Payments
http://weblogs.hitwise.com/sandra-hanchard/2008/07/putting_the_dominance_of_ebay.html The crunch of the ACCC's proposal however was not about the dominance of eBay; it was about the competitiveness of online payment systems in Australia. In a Hitwise custom category of 20 alternative payment services, that excludes major financial institutions, PayPal is by far the dominant player accounting for 82.24% share of visits week ending 28 June 2008. Google Checkout and Paymate Australia accounted for 1.85% and 0.88% share of visits respectively.

Online banking just got easier
http://www.smartcompany.com.au/Free-Articles/Trends/20080604-Online-banking-just-got-easier.html?source=cmailer
Wednesday, 4 June 2008

Online banking has taken off in recent years, but until now an inconvenient off-line feature has impeded its growth – consumers still had to lodge a signed paper application by post or fax. That impediment now looks set to become a thing of the past. A firm called FCS Online has developed an electronic identity verification process that replaces the humble signature with checks on personal information ranging from birth date to passport and visa details.

The process has already been adopted by one bank with an online focus, ING Direct, in the hope of cutting back on the number of customers who express interest in an account but don’t meet the paper requirements, which reportedly could be as high as 40%.

The shift to online verification has partly been made possible by legislative changes that were introduced late last year that changed the security focus away from the traditional 100-point paper check to electronic verification.

Impact of on-line payment (in Credit cards most vulnerable to fraud)
http://www.smartcompany.com.au/Free-Articles/Trends/20080604-Credit-cards-most-vulnerable-to-fraud.html?source=cmailer
Wednesday, 4 June 2008
The total amount of payment fraud committed in Australia dropped over the past year, but credit cards remain by far the form of payments most commonly exploited by fraudsters.
According to the Australian Payments Clearing Association, the proportion of all transactions by cheque, debit card and credit card lost to fraud in 2007 fell from 6.3c to 6.2c per $1000 in 2007.
Cheques were the least defrauded payment option, with fraud falling from 1.9c to 0.8c per every $1000 worth of cheques written. The rate of debit card fraud also fell, from 7.7c per $1000 to 7.2c.

The only payment option to experience a worsening level of fraud was the credit card, with the rate of fraud increasing from 36.9c to 44.5c for every $1000.According to the Australian Bankers’ Association, the poorer credit card fraud result reflects the trend towards using credit cards for online transactions, particularly where purchases are made overseas. “Banks tell us that customers are increasingly shopping online with retailers located overseas, and unfortunately some of these outlets may not have strong customer protections in place,” ABA chief executive David Bell says. “It is very important for businesses and individuals to know with whom they are dealing before transferring or sending any money.”

SME business improvement strategies

Telstra to sell Microsoft products
http://www.smartcompany.com.au/Free-Articles/The-Briefing/20081105-Telstra-to-sell-Microsoft-products.html?source=cmailer
Telstra and Microsoft today announced a strategic alliance that will bring together the companies’ business software applications, mobile services and devices and integrated computer and telephone services over Telstra’s Next IP and Next G networks.

Telstra group managing director of product management, Holly Kramer, says the alliance will combine telephony, email, mobility, conferencing, collaboration and tools, and the first products will be introduced into the market by mid 2009.

“Our customers are seeing convergence between networks and applications and between fixed and mobile services. We are turning this convergence into meaningful products,” she says.
The alliance also intends to provide small and medium businesses with access to products and services that were formerly only available to larger companies, says Tracey Fellows, Microsoft Australia’s managing director.

Fellows says the alliance will also benefit thousands of Australian IT businesses, consultants and partners who resell or distribute Microsoft and Telstra products.

It is proposed that services under the alliance will include:

• Hosted business applications: Through Telstra’s T Suite portal, businesses would be able to access Microsoft business software hosted by Microsoft in the cloud and delivered as a subscription service.
• Mobile services and devices: An all-in-one mobile email, calendar, contacts, web browser, business software and phone solution including security features, automatic software upgrades, support and data plan.
• Unified communications: Integrating Telstra’s hosted IP telephony service (TIPT) with Microsoft Office applications.

SmartCompany blogger and PC Rescue principal Paul Wallbank says the alliance may encounter some problems. He points out that the market share of Windows mobile has been in decline since the launch of the popular iPhone. “There is no iPhone support and apparently they have no intention of providing any as there is only support for phones running on Windows mobile,” he says.

Another weakness is there is no support for office applications such as PowerPoint or Excel, which puts it as a major disadvantage to Google Apps.

While Microsoft dominates the SME marketplace in software, it is looking at Telstra to reach the many SMEs that it does not deal with directly.

But Wallbank predicts that Telstra will have trouble selling these web applications through the Telstra network and shops. “Mobile phone people don’t care or understand about web services. It is a different selling model,” he says.

New Google Australia executive plans push into SME market
http://www.smartcompany.com.au/Free-Articles/The-Briefing/20081030-New-Google-Australia-executive-plans-push-into-SME-market.html?source=cmailer
Google Australia’s new head of online, Julian Persaud, is planning a big push into the SME sector, despite fears that online advertising is set to fall.

Persaud says Google is confident of convincing small businesses to advertise through Google, pointing to figures that show 40% of small businesses owners have websites and a further 20% are building a site.

“We’re in a shift towards people going online. The consumers are there, and we’re seeing an increasing number of businesses wanting to be there as well. We’re focusing on small business as a big growing area for the industry. It creates a level playing field,” he says.

But Persaud dismisses claims that online advertising growth rates will plunge as a result of the economic slowdown. “It’s not going to be on the decline; most studies show that it will grow very strongly… online businesses are growing, it’s the fastest growing area in advertising.”

But IT and technology consultant and SmartCompany blogger Paul Wallbank says some SMEs are hesitant to enter online marketing because of its complexity.

“It’s a difficult field – it’s so complex; you’ve got to get the right words, etc. There’s all manner of components to it,” he says.

Wallbank also emphasises the fact Google AdWords, a staple of the group’s advertising offerings, is extremely competitive.

“For a lot of smaller businesses, particularly when you’ve got common AdWords such as ‘computer services’, there’d be a zillion businesses bidding for those search terms. They’re very complex for the typical small business.”

But another SmartCompany contributor, online advertising and revenue consultant Denise Shrivell, says online marketing is definitely growing strongly. She argues while display banner advertising will fall, SMEs need to tap into performance and pay-per-click advertising.

“If you look at the total pie of online advertising, that is display advertisements versus search advertisements like AdWords, display advertisements have a small part, and are declining.
“The next 12 months will be difficult for display advertisements, as advertisers use the internet more for advertisements like Google and Facebook are able to offer. That level of targeting… is pretty irresistible in a tough market.”

Google Apps for SMEs (in Learn to Use Google Apps with ‘The Missing Manual’)http://blogs.bnet.com/businesstips/?p=1584&tag=nl.e713
From Gmail to Calendar to Google Docs, Google Apps offers small businesses a wealth of communication and productivity tools. But figuring out how to use them all can be tricky, especially if you’re more accustomed to traditional software. Enter O’Reilly’s Google Apps: The Missing Manual, a new book that teaches you the service from top to bottom.The tome covers not only the individual apps (including GTalk and Google Sites), but also topics like managing users and domains and leveraging the Marketplace. You can get a content preview of each section of each chapter by clicking the above link.

How to increase net profit by 50%
http://www.insideretailing.com.au/articles-page.aspx?articleType=ArticleView&articleId=2961Extracts: The formula is: 2 – 1 – 2 = 50. Let me explain.I am workshopping with some of the top newsagents all over the state at the moment, and the structure of our discussion is: how to create a compelling retail proposition. In the first instance, we have to get the ‘offer’ right. Everybody defines offer differently, but for the sake of simplicity, I define offer as: Product + Price. We then workshop pricing (as many of them have traditionally operated under a fixed margin model) and discuss the mechanics and the strategies. These workshops have reinforced that the SME retailers are often far too reactive and effectively allow suppliers to run their business.

• Increase revenue by 2% (follow the pricing strategies)
• Reduce COS by 1% (negotiate prices)
• Reduce Expenses by 2%(manage opex)

The links in this post provide more detail on each of the points made.

Consumer trends

Ten Trends For The Near Future - Porter Novelli
http://blogs.bnet.com/pr/images/pn10trends.pdf

Email marketing

Email marketing gains ground
http://www.insideretailing.com.au/articles-page.aspx?articleType=ArticleView&articleId=3084&h=Email-marketing-gains-ground-
Email-based marketing is fast becoming a key tool for reaching consumers in the Asia Pacific region, according to a survey conducted by Epsilon International and Return Path.

In one of the most significant findings, nearly one in three respondents (32%) said that they would "always" respond to targeted, promotional e-mails.

The survey, which was carried out in February throughout the region, surveyed 1169 participants and sought to discover consumer email habits and attitudes to permission email marketing and spam. "Through client campaigns across Asia Pacific, we know that consumer interaction and responses to targeted permission based communications are high, and drive significant returns for our clients," said Dominic Powers of Epsilon International. "This survey further supports the fact that consumers respond to email marketing if it is directed to the right person, at the right time, and with the right message."

Another survey finding pointed to the increasing acceptance of electronic marketing when used in a controlled and targeted manner, with 76% of respondents in Australia replying that they would use e-mail coupons to buy products online or offline.

"E-mail marketing is rapidly becoming the preferred method for consumers to be reached by marketers," Powers said. "Aside from the obvious environmental angles, consumers are now savvy enough to realise that targeted campaigns can offer them deals or savings above the typical promotional offers they find in their letterbox at home."

Other key findings in the survey:

• Promotional emails increases brand loyalty 45% of respondents in Australia said that promotional emails increased their brand loyalty; while one-third (34%) said they had made more purchases after receiving promotional emails.
• Customers interact on relevancy. Half of those surveyed in Australia (51%) are willing to share personal information if they believe it drives relevant and more targeted offers.
• Australian respondents have the lowest uptake (6%) of using mobile devices for email. China reported the highest at 34%, followed by Hong Kong at 29% and Japan at 27%.

Email Analytics Reveal Sweet Spots In Subject-Line Length
http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=83385
Extract: Research culled from 250 million messages sent over the past two years, with 660 different subject lines, has led him to believe that a 50-character subject line touting a "powerful" offer is appealing (30% off Spring Getaway flights to Florida on Delta).

And a longer 80-character-plus line describing a newsletter in enticing fashion works (Find out Secrets to Spice up your Barbecue this weekend and all Summer Long and enter to win a New Weber Grill.) Somehow, in the 60- to-70-character middle, he says, the subject line is either too long or not long enough.

Web behaviour

Are Short Videos Best for the Web?
http://www.emarketer.com/Article.aspx?id=1006454&src=article1_newsltr
Online video viewers are, for the most part, still watching as much TV and seeing as many movies on DVD and in theaters as ever.

Only 11% of online video viewers ages 12 to 64 surveyed in March and April by Frank N. Magid Associates said they had cut back on their TV time as a result of their Internet watching. One in 10 respondents said they went to movie theaters less as a result of online video, and only 7% said their DVD viewing had declined.

That may have something to do with the availability of full-length TV programs and movies online.

"The bulk of video consumed online today is typically short-form entertainment, rather than full TV episodes or full-length movies," said David Hallerman, senior analyst at eMarketer.
Last year, about one-half or more of US online video viewers surveyed regularly watched short news pieces, humor clips, movie trailers and music videos. Only about one in four viewers watched full-length TV shows, and only 14% viewed full-length movies.

But full-length TV shows were ranked as the most highly desired type of TV content by US and Western European adult Internet users surveyed in Q1 2008 by Opinion Research Corporation for Accenture.

In addition, more than one-half of online video viewers in the US polled by Harris Interactive last November said they would watch more full-length TV shows if they were available online, and nearly one-half felt the same way about full-length movies.

So online video viewers are anxious to watch longer content on the Web. Even if they start watching less TV and going to theaters less as a result of doing so, content publishers do not necessarily worry about their total revenue pool drying up.

Most Internet users seem aware that the money for longer programming has to come from somewhere. More than three-quarters of respondents to a February 2008 Ipsos MediaCT survey said that watching advertising was a reasonable tradeoff for full-length movies online. A full 82% said ads in full-length TV programs would be acceptable. In fact, respondents were far less tolerant of the idea of ad exposure in exchange for short-form content.

Altruism Drives Online Reviewers
http://kellerfay.com/?page_id=71
Extract: The joint study surveyed over 1,300 online reviewers to discover what moved them to share their opinions. Overwhelmingly, the survey found, reviewers are motivated by goodwill and positive sentiment. Fully 90% write reviews in order to help others make better buying decisions and more than 70% want to help companies improve the products they build and carry. The study also found that 79% write reviews in order to reward a company, and 87% of the reviews are generally positive in tone.

Maximize Your Search Potential Through Blended Search
http://www.marketingprofs.com/8/maximize-potential-blended-search-brown.asp?sp=1
Blended search, also known as universal search, is starting to change the way searchers see search results—and consequently, the way search marketers and Web site owners approach search marketing.

Much of the search strategy has revolved around textual content and keywords on Web sites and getting links to sites.

Not only has content expanded to include video and audio, but the content format itself has also evolved—personal Web sites, basic brochure-ware company sites, and simple ecommerce have been joined by forums, blogs, review sites, social media, and more.

Over time, the search engines began developing specialty search spiders that focused on various subsets of the online world to handle this additional content and formats.

Searching for and indexing specific content could be fine-tuned to account for the challenges and nuances of the medium, as well as allow searchers to locate this content easier. Searches for news, blogs, products, images, videos, or other content could be handled differently, and hopefully better than, through regular searches.

Though the search engines built special vertical searches, not many searchers came, at least not in the overall scheme of things. Regardless of what people were searching for, the majority of searchers continued to perform searches through the "standard" web search interfaces.
In fact, most searchers, even today, are probably fairly oblivious to the various specialty, or vertical, search indexes. In part, this helps explain some of the rationale that lead to blended search.

So what is blended search? Blended search involves blending different content from the engine's various vertical indexes into the traditional, standard search results. Search results may include special news results, images, videos, maps, blog posts, product listings, patent information, or financial details alongside the usual search results.

Some of this content may have shown up before; but unlike the traditional listings, results from a vertical index used in blended search may be called out and labeled based on the type of content it is.

All of the major search engines have now integrated blended search into their standard search results. How noticeable this is varies from engine to engine and often by specific search query. The impact may still be very subtle as the engines slowly and carefully roll out this change.
This isn't too surprising, considering that this is one of the biggest changes affecting the type of search results that people have grown accustomed to. Obviously the engines don't want to overwhelm searchers with too much change.

What blended search clearly means, however, is that search marketing strategy is taking on an even greater focus than ever before... and there's a need to diversify, diversify, diversify your content.

Most search result pages deliver 10 organic (or natural) results along with some paid-search results. Search engines are implementing blended search in different ways. In some cases, these blended results are being added in addition to the traditional search results, but in other cases some of the blended results actually replace the traditional results.

That last method is especially important, as it means that although only 10 results are still being delivered, their makeup has changed.

What does this mean for you and your site, now and in the near future? If you aren't diversifying your content and targeting these other vertical search areas, you are missing out on additional opportunities to rank, and may even be losing positioning—which could happen if the addition of blended results bumps your listing off page one.

And don't think that you only have to worry about being bumped if you are in the number-10 position. The search engines may simply bump all listings down, or the spot where the blended search result is inserted may be the one that gets bumped off page one.

Diversifying your content strategy is not only a defensive move but also an offensive one: The more content you have that may fit into the different search verticals, the more you increase your chances for ranking.

How to specifically target blended search as an opportunity varies for everyone, every site, and every industry.

The first step, though, is to get a feel for how blended search is affecting searches within your industry today:

• Perform searches in Google, Yahoo, MSN and Ask that relate to your industry, or searches that you would like to be found for, and look over the results.
• Also perform searches for popular, general phrases in case your specific searches don't yet demonstrate blended search results.
• Make notes about the blended results you see, such as when videos show up, news posts, maps and local listings, etc.

Blended search is being introduced so subtly that you may not even notice without making a conscious effort. It's going to continue to evolve, so recognizing it today, getting an understanding of what it means for your industry.

Refining your content-diversification strategy today will put you in good stead for the future.

Groceries to overtake gadgets as the biggest seller on the web
http://www.smartcompany.com.au/Free-Articles/Trends/20080612-Groceries-to-overtake-gadgets-as-the-biggest-seller-on-the-web.html?source=cmailer
Research from Britain suggests sales of groceries will overtake electrical goods as the leading online product within five years. “Food and groceries are on course to leapfrog electricals into the top spot, accounting for 29% of all online sales in 2012, compared to 22% for electricals,” the report from retail research group Verdict Research says.

Malcolm Pinkerton, senior retail analyst and author of the report, says: “The internet is widely perceived as a cheaper and easier way of finding lower prices and bargains in most sectors.”
Although Coles and Woolworths dominate 75% of the grocery sector, their online services are only available in Sydney and Melbourne, with Woolworths also offering services in Canberra.
But given the habits of Australian consumers, Coles and Woolworths are unlikely to rush to expand their services. Steven Ogden-Barnes, from the Australian Centre for Retail Studies, told the Sydney Morning Herald that competition for the Australian online marketplace would be an uphill battle, arguing consumers are undisciplined and purchase too infrequently.

Web users 'getting more ruthless'
http://news.bbc.co.uk/1/hi/technology/7417496.stm
Extract: In 2004, about 40% of people visited a homepage and then drilled down to where they wanted to go and 60% use a deep link that took them directly to a page or destination inside a site. In 2008, said Dr Nielsen, only 25% of people travel via a homepage. The rest search and get straight there. "Basically search engines rule the web," he said.

Ranking Web Sites with Real User Traffic
http://cxnets.googlepages.com/p65.pdf
Extract: First, much more of the traffic than anticipated (more than half of human requests) is generated not from clicking on links, but from bookmarks, default pages, or direct typing of Web addresses.

Second, search engines direct a surprisingly small fraction of traffic (less than 5% of human requests). However, they lead to a larger fraction of the sites visited.

Third, the temporal traffic patterns are more predictable than we expected; much less surprising are the very strong cyclic regularities exhibited on daily and weekly bases. The latter findings may have implications for the design of improved proxy and browser caching techniques.

Automotive marketing

The Pressure Point of Fuel Prices
http://weblogs.hitwise.com/alan-long/2008/08/the_pressure_point_of_fuel_pri.html
Extract: The increasing price of fuel to run our vehicles puts continued pressure on the household budget and while I begrudge paying high prices at the pump, just how far can the price go before we start to look at alternate fuels and hybrid vehicles as a serious option?
According to CommSec equities economist Savanth Sebastian the average family is now paying $223.30 a month for petrol, well that makes me about average – but with only one car. The good news is that he is predicting that the cost of petrol is about to decrease to a national average of $1.40 per litre, and in the past week we have already seen some relief with prices sub $1.50.
So I started thinking of conspiracy theories about petrol retailers pushing the prices up to a pressure point where users are aggrieved and are close to taking action, and then lowering prices to take pressure off, all the while desensitizing the consumer to longer term increased fuel costs. I am not a conspiracy theorist, so I am just interested in what the online behaviour tells about users' reactions to fuel prices based on searches for auto-related hybrid searches.

To make this comparison we took the median average of monthly Metropolitan ULP prices (Source: www.fueltrac.com.au) and compared it against the 4 week rolling average of a custom search portfolio that contains 974 hybrid / alternate fuel auto related terms. (Click on image to enlarge).

The chart highlights a correlation between petrol prices and online searches for auto related hybrid /alternate fuel searches. The trend lines rise and fall in sequence until the price moves through the pressure point of $1.40, then the volume of searches surges as households are put under increasing pressure. If the price drops below $1.40 will the interest in alternate fuel decrease or does the demand now have a momentum of its own?

Porsche, Luxury Rivals Push Used Cars
http://industry.bnet.com/auto/2008/05/29/porsche-luxury-rivals-push-used-cars/
For a couple of reasons, used cars are a growing priority for luxury-brand automakers like Porsche. First, many people who buy high-end, expensive cars tend to graduate from a used car to a new one. Second, used cars are an important profit center for dealers, especially when new-car sales are slow. Finally, as leasing has become common, it’s important for car companies to protect used-car values.

In leasing, the customer effectively borrows the difference between the upfront cost of a vehicle and what it’s projected to be worth at the end of the lease. The more a used car is worth at the end of a lease, the less the leasing customer has to borrow, which in turn lowers monthly payments.

Luxury auto brands are also promoting the sale of off-lease cars and trade-ins as “certified pre-owned” cars, or CPO for short. Unlike most used cars, CPO cars are inspected and refurbished by the dealer, and come with a warranty. That can add $1,500 or more to the price of a luxury car, but many customers feel the additional comfort level is worth it.

In all, the luxury brands are trying to get their new-car dealers to sell more used, off-lease vehicles. That keeps them out of the hands of independent used-car dealers who can give the brand a bad name, and away from wholesale auctions where prices are rock-bottom. If the actual market price of a vehicle coming off lease is lower than the automaker and its finance company expected, the automaker can incur a loss.

But what would Dad say? How automotive brands are targeting twenty-somethings and their parents
http://www.warc.com/Tracking/ArticleLink.asp?ID=88073&M=WARC-Free-May08
Extracts: In markets such as the US or UK, Generation Y-ers who were born in the eighties and early 1990s are seen as less financially and temperamentally autonomous than their predecessors when it comes to expensive purchases. They are also notably less amenable to traditional big budget branding techniques. In response, some auto brands have increasingly been aiming their messages at both parents and their offspring in a bid to capture influencers at different points in the family spectrum.

Nagley also argues that with the right media channel choices auto brands can appeal both to the all-important first car market and purchasers of second car ‘run-arounds’. He says: “At a time when society is reassessing its whole view of age and ageing, it is perfectly acceptable for older people to buy into young peoples’ technology or fashion brands. But if a major purchase such as a car is seen as too overtly middle-aged, many twenty-somethings won’t want to touch it.

“The trick is to emphasise qualities such as safety and styling that appeal so heavily to both ages, while carefully choosing media to reflect the chief differences (between generations). Perhaps Radio Times and What Car? (the UK magazines) for the fifty-somethings and YouTube for their adult kids.”

Indian consumers

Ringing the changes: how Vodafone rebranded its business in the world’s second biggest mobile market
http://www.warc.com/Tracking/ArticleLink.asp?ID=88183&M=WARC-Free-June08
Extracts: It was probably India’s largest ever rebranding, and arguably one of the biggest in any country. After completing its $10.9 billion cash acquisition of Hutchison Essar - then India’s fourth biggest mobile operator by connections - in May 2007, Vodafone moved quickly to bring its brand to one of the world’s fastest growing mobile markets. This encompassed changes to marketing at thousands of consumer-facing retail points, communications with staff, dealers and other partners, and across the media. The programme was executed rapidly but escaped the criticisms such high-profile corporate makeovers often attract.

How did Vodafone tackle the exercise, and what have been the results?

The scale of the challenge should not be underestimated. India has overtaken the US as the world’s second largest mobile market by connections, with only China representing a bigger volume market. By 2010, mobile is expected to account for almost two-thirds of total telecommunications revenue in India.

In March 2008, Vodafone estimated it was adding more than 1.5 million Indian customers a month, and in the company’s 2007/08 financial year, Vodafone’s Indian operations grew by 50% more than three times the average 14% growth rate across the group. As a percentage, Indian mobile penetration in mid-2008 is however still low by major economy standards at 23% of the population, compared to an estimated 80% mobile penetration in the US or 104% in Germany.

India ARPU (average revenue per user) is also low. On a proforma basis, which measured performance as if Vodafone had owned Hutch for a full year, Vodafone estimated its Indian ARPU was $9.3 a month in the first quarter of its 2007/08 financial year. By contrast in the UK, Vodafone typically has ARPU of about £23 ($43) a month and Verizon, the US operator part-owned by Vodafone, has ARPU of about $61 (£32) a month.

With 44 million Indian users out of the group’s total base of 260 million consumers, almost one in five of Vodafone’s customers today is from the sub-continent. Notwithstanding the logistics involved, therefore, the reality was that the group was unlikely to keep its core brand image and messaging out of the Indian market for very long.

Speaking in September 2007, Vodafone’s Marketing and New Business Director, Harit Nagpal,: “It (the rebranding) is even larger than our own previous brand transitions as it touches over 35 million customers, across 400,000 shops and thousands of our own and our business associates' employees."

Tracking the growth of India’s middle class
http://www.mckinseyquarterly.com/Retail_Consumer_Goods/Tracking_the_growth_of_Indias_middle_class_2032
Extract: India’s rapid economic growth has set the stage for fundamental change among the country’s consumers. The same energy that has lifted hundreds of millions of Indians out of desperate poverty is creating a massive middle class centered in the cities. A new study by the McKinsey Global Institute (MGI) suggests that if India continues its recent growth, average household incomes will triple over the next two decades and it will become the world’s 5th-largest consumer economy by 2025, up from 12th now. (The full report, The ‘Bird of Gold’: The Rise of India’s Consumer Market, is available free of charge online.) Along the way, spending patterns will shift significantly as discretionary purchases capture a majority of consumer spending. India’s potential should make it a high priority for most consumer goods businesses, but to succeed in this complex market they must overcome major challenges.

Private consumption has already played a much larger role in India’s growth than it has in that of other developing countries. In 2005 private spending reached about 17 trillion Indian rupees1 ($372 billion), accounting for more than 60 percent of India’s GDP, so in this respect the country is closer to developed economies such as Japan and the United States than are China and other fast-growing emerging markets in Asia (Exhibit 1). Our study shows that aggregate consumer spending could more than quadruple in coming years, reaching 70 trillion rupees by 2025. Higher private incomes and, to a lesser extent, population growth will encourage this rise in consumption. Changes in savings behavior will play only a minor role.

One Billion into One Won't Always Go - How Regional and National Brands Vie for India's FMCG Shoppers
http://www.warc.com/Tracking/ArticleLink.asp?ID=87969&M=WARC-Free-May08
Abstract: When India first emerged as one of the test grounds for globalization of consumer markets, Fast Moving Consumer Goods (FMCG) executives tended to focus on a "one size fits all" strategy and believed pan-Indian brands would quickly come to rule the roost. Few anticipated how India's regional brands would hit back with innovation on cost and sharper targeting. In a nation with 62 socio-cultural regions, 23 languages and a diverse geography, the realization that pan-Indian brands alone cannot cater to 1.1bn Indians has dawned on national and multinational groups. This has profound implications for investment in new product development, marketing strategy and choice of media across India. If ignored or tackled badly, these issues can cause serious repercussions for the businesses in question. Indeed, in the closely-related sector of retail, the pan-national ambitions of Indian groups such as Reliance or overseas investors including Wal-Mart and Carrefour have sparked public suspicion and even riots.

Green marketing

Building An Effective Green Marketing Strategy
http://www.forrester.com/Research/Document/Excerpt/0,7211,45966,00.html
Abstract: Organizations are under pressure from consumers, shareholders, and government bodies to develop green strategies. However, many marketers are jumping on the green bandwagon and committing common green marketing mistakes.

To avoid these mistakes and build effective green strategies, marketers should focus on seven key actions:

1) assessing current impact and attitudes toward green;
2) listening to consumers about their wants, needs, and ideas for better sustainability;
3) aligning the green strategy with the organization, brand, and consumer values;
4) committing to environmental goals and making significant changes;
5) partnering with outside organizations for credibility, expertise, and joint solutions;
6) educating stakeholders on the issues and benefits of green products; and
7) engaging stakeholders in open dialogue and activities to facilitate behavior change.

One-Quarter of Consumers Say ‘Screw The Environment’
http://industry.bnet.com/retail/2008/07/14/one-quarter-of-consumers-say-screw-the-environment/
Two new studies say 10-26 percent of shoppers are “Never Greens,” whose reactions to environmental claims ranges from apathy to outright anger.

Mintel International in Chicago coined the term “Never Green” to describe 10 percent of the shopper universe. A second study by The Shelton Group of Knoxville, Tenn., found that 26 percent of respondents were “hardcore skeptics,” mostly upper middle-class, conservative, middle-aged men.

Brandweek reporter Jim Edwards profiles William Coverley, a retired investment banker from Ohio, who just bought his 10th vehicle, a 2008 GMC Yukon XL that gets 14 miles per gallon.
“I don’t care about the environmental reasons and I’ll tell you why,” Coverley said. “All this stuff about carbon emissions, no one really knows about the output of the sun and yet it’s the single most important input behind global warming . . . Are the Chinese going to be environmentalists? Are the Indians going to be environmentalists? Are the Russians? I don’t think so.”

Edwards suggests studying your market carefully before launching green marketing, because emphasizing environmental claims may cost you the business of people like Coverley or Washington accountant Sally Herigstad. She bought organic produce by mistake at Fred Meyer and was dismayed to discover a recently deceased two-inch caterpillar in her steamed broccoli.
Shelton Group CEO Suzanne Shelton found that 46 percent of respondents felt “guilty, skeptical, irritated or unaffected by green issues,” and the same percentage put their comfort ahead of convenience and environmental concerns. The study was commissioned by Shelton Group client BP Solar.

Connected to Green: Consumers and Employees Reward Green Companies
http://www.accenture.com/Microsites/Accenture_Customer_Innovation_Network/acin_connected_companies.htm
Extract: Companies should be aware that the “green” consumer or the “green” worker can appear in any place they may be doing business. It is clear that buying products from environmentally responsible organizations is already important to consumers worldwide.

In a survey conducted in 2007 across 15 markets and more than 16,000 consumers and workers, TANDBERG found that more than half of all respondents would be more likely to purchase products and services from a company with a good environmental reputation.
This figure was particularly high in China, with 67 percent of respondents concurring. If extrapolated out, the 53 percent who would be more likely to purchase products and services from a company with a good environmental reputation, represents more than one billion people just in the 15 countries covered.

This focus on the environment is also evident in prospective employees. Across all the countries surveyed, 80 percent of workers said they would prefer working for an organization with a good reputation for environmental responsibility.

More than one fifth of respondents (21 percent) find that travel reduction policies are the most effective means of reducing their company’s carbon footprint, and a further 18 percent believe work-from-home programs to be a good environmental initiative for their workplace. These options were particularly popular in Australia, Canada, China, Japan and the United States.
Reducing business travel and working from home are both popular and viable options for organizations looking to become more environmentally responsible. These initiatives reduce carbon emissions as well as raise productivity and cut costs. The challenge for the businesses considering these options is how to maintain the personal interaction among their employees and with their customers. Technologies that allow face-to-face interaction can raise the success rate of these programs.

A Pulse on the Customer: Consumers are Coming Up to Speed Fast on Sustainability and Driving the Need for Market Response
http://www.accenture.com/Microsites/Accenture_Customer_Innovation_Network/acin_pulse_response.htm
Learning About the Issues and Their Individual Impact
Whether they tap insights from bestselling books or watch video clips on YouTube, consumers are quickly becoming aware of news, trends and ideas from across the globe. They are looking for detailed information on the origin and impact of the products they purchase. Global consumer research conducted by Accenture from 2006 to 2008, showed that more than 86 percent have already taken concrete action to reduce their impact on the environment.

Sharing Information on How to be Green
There are now 40 million so-called "green boomers" in the United States. These consumers are recognizing that being green can be easy. They are also using social networking sites such as IAMGREEN to engage in discussions around this topic. Accenture found that 85 percent of shoppers are “concerned” about the environment.

Expressing New values in Words and Actions
Perhaps most compelling for consumer-facing companies is how these attitudes and practices translate in the marketplace. Nine out of 10 consumers around the world say they are ready to switch to energy providers offering products and services that help reduce carbon emissions—and two-thirds are willing to pay on average 11 percent more for the privilege.

More eco-friendly bedding
http://springwise.com/weekly/2008-06-05.htm#ecobedding
Sleep Limited's line of eco sleep products features pure, unbleached cotton and 100 percent recycled polyester fiberfill made largely from recycled drink bottles. Included in the line is the Eco Duvet, priced from GBP 30.80; an Eco Mattress Topper, priced from GBP 25.40; and Eco Pillows priced at GBP 22 per pair. All are soft, hypo-allergenic and machine washable, and all come packaged in an unbleached cotton bag emblazoned with an image of the Earth. Shipping is available only within the UK, and is free of charge for orders of GBP 65 or over, GBP 5.95 otherwise.

In today's eco-iconic world, in which out-greening your competitors is increasingly the name of the game, we can't help but notice that Sleep Limited's products are made from cotton that's merely unbleached, not organic. Nevertheless, with a growing number of consumers eager to be green—and especially to show the world that they are—there's room for many shades of the colour. Make it easy for consumers to be green—or at least, feel green—and they'll reward you with some cold, hard green of their own!

Website: http://www.ecobedding.co.uk/

Is Green a Grey Area? How the Advertising Standards Authority Rules on Environmental Marketing Claims
http://www.warc.com/LandingPages/FeaturedContent/EnvironmentalClaims/ASAEnvironmentalClaims.pdf
Extract: Complaints to the ASA about misleading environmental claims in UK advertising last year reached a record 561 complaints about 410 ads. In 2006 the ASA received just 117 complaints about 83 ads. Consumer concern about this issue has clearly grown significantly.

In response, the ASA is making environmental claims a key policy area for 2008 in order to protect consumers but also to satisfy law-makers that self-regulation has this issue covered.
The dramatic increase in complaints is reflected in the growing number of high-profile rulings the ASA has made against advertisers seeking to promote their green credentials.

Consumers are increasingly questioning whether advertisers are operating in a climate of truth.
But if the UK industry's Advertising Codes do not prohibit environmental claims why have
advertisers been falling foul of them? What kinds of claims are proving problematic? Which sectors are generating the most complaints and why has the public begun to scrutinize such advertising more closely?