Brand Noise

Consumers Crave Real Mobile Empowerment

The Wall Street Journal reports that American Express Co. is discontinuing its "Express Pay" fob that was touted as a convenience for consumers who didn't want to dig into their wallets for a credit card.

Let's face it. It's still a card. And you still have to dig in your wallet for it. And often if your charge is over $25, you still have to sign for it. So truly what changes about the behavior?

By now most early adopters are so past the concept of these fobs, that it's just plain gimmicky. The trouble is what they really need are cohesive mobile payment services, but we're only seeing a glimmer of that in the US. And where we think mobility is sublime, like in Japan, it's actually a rather pricey proposition and not so in step as we'd hope for.

That said, there are some steadfast mobile shopping services bubbling out there. Here are three: GoMobo, ShopText and S'lifter.

Earlier this year, we sent out video journalists in London, NYC and Tokyo to talk with our friends and colleagues who were using some aspect of m-commerce. These interviews appear in a 3-part mCommerce series produced by Tellabs. The series debuted at Mobile World Congress in Barcelona.

Sushi Economics

From the 90's power lunch to new the staple of the kid's lunch box - without a doubt sushi has made an impact on how we see food.  And how we see how we get food.  A new book by Sasha Issenberg, titled The Sushi Economy starts  with a concept—namely, that the growth and evolution of sushi mirrors that of global trade.  The new sushi reality is the reality of how decisions are made in a global economy.  As Issenberg puts it "Fishermen in Gloucester have to study the daily movement of the yen to determine if    they go out and fish that day. Chefs in Tokyo are looking to see if the weather in Gloucester is good that day."  Decisions are more connected than they have ever been. The story of sushi also shows us how tastes have been packaged and repackaged in this new connected world appealing to the high and low in consumption.  From finger food to the highest and rarest in edible fetish. 

Citigroup Brands Beyond the Umbrella with "Citi"

Executives at Citigroup are prepared to rebrand the company “Citi” and to fold up its familiar red umbrella and instead use a logo with a stylized arc above the name.

The brand makeover comes out of the playbook of other big companies. Apple Computer, for example, last week shortened its name to Apple emphasize its broader ambitions for other technologies, like the new iPhone. Several years ago, Morgan Stanley ditched the suffix of Dean Witter, and Federal Express became just FedEx.

The new name and look, which follows a 14-month review of the bank’s brand, will be presented to the Citigroup board this week, according to several executives close to the process. No final decision has been made and it could still undergo some minor changes. Read more (NY Times)

How to Build a People Brand

Jim Buckmaster, the chief executive of Craigslist, caused lots of head-scratching Thursday as he tried to explain to a bunch of Wall Street types why his company is not interested in “monetizing” his ridiculously popular Web operation. Appearing at the UBS global media conference in New York, Mr. Buckmaster took questions from the bemused audience, which apparently could not get its collective mind around the notion that Craigslist exists to help Web users find jobs, cars, apartments and dates — and not so much to make money.

Following the meeting, Ben Schachter, a UBS analyst wrote a research note, flagged by Tech Trader Daily, which suggests that he still doesn’t quite get the concept of serving customers first, and worrying about revenues later, if at all (and nevermind profits). Craigslist, the analyst wrote, “does not fully monetize its traffic or services.”  Read more

Branding the Subway Experience

Brands are weighing in on improving the Subway experience in NYC.  A trial run starts today on a new way to move through the turnstiles using your Citi credit cards and Citibank Debit Mastercard.  If successful this could be a great way to associate the brand with making a core urban touchpoint easier to navigate.  Citibank also sponsors the Bryant Park ice rink in the winter months.  Making people happy in the city is great branding.  Let's hope the new system works.

Build Your Own MINI Card

MINI Financial Services is launching its new MINI Card, which cardholders can design with a patent-pending Web-based Configurator. The configurator features four MINI body styles, 36 wheel choices, 21 exterior body color choices and 24 exterior roof choices. MINI Rewards Points can be redeemed for up to $5,000 off a future MINI purchase, or to reduce the cost of a lease or loan another $5,000.

That First Set of Wheels: Freedom a Long Way Off

For first-time car seekers, wheels, music and money are inseparable.

scenarioDNA just completed a study with 322 young consumers, ages 14 to 30, who are in the market for their first car purchase.

The study was conducted during late April 2006, via a mobile phone survey in collaboration with Mobile Transit Authority. It is the second in a series of monthly “Ignite! pulse” polls.

Ironically, the technically proficient participants gain their knowledge of cars offline via magazines (32%), rather than online (20%) or from friends (16%).

Wal-mart Bank - Road to Pottersville?

Here is a round up of some the top articles covering the latest controversy surrounding Wal-mart's move into the banking business.  From a branding standpoint it appears to be more bad news for the retail giant.  It will be hard to get consumers to extend trust into more complex and sensitive areas of consumer interaction if the fundamental value of the brand is in question.  Target has done similar deals but is not getting the same backlash.  It is all about context.  The question is whether Wal-mart's brand can extend into this arena with more than simple brute force.  They have to build credibility that they are working int he interest of consumers.  Some people just don't believe that.  Target doesn't have the same polarized consumer perception.  This move could make it harder.  Imagine this as a backdrop to any attempts to move into urban locations like New York City. It doesn't look promising.

Wal-Mart's Bank Shot (Time.com)
How a Wal-Mart Bank Will Harm Consumers (Counterpunch)
Wal-Mart Works to Polish Image, but Detractors Gear Up Too (LA Times)
Wal-Mart's bank request shouldn't be stopped (Star Gazette)

Brand Watch: Get Your Fast Food Faster

American Express announced McDonald's USA as the latest national merchant partner to accept ExpressPay from American Express. Cardholders can use ExpressPay at more than 12,000 McDonald's restaurants nationwide. Essentially, it's a fast contactless payment option that consists of a secure computer chip powered by radio frequency technology.

American Express was the first issuer to launch contactless cards nationally with the rollout of Blue from American Express with the ExpressPay feature in June 2005. ExpressPay is also embedded in the Clear from American Express Card and available via a key fob that can be linked to any American Express Card. Users just hold the Card or key fob with ExpressPay next to a special reader near the register to complete a purchase. No signature required.

Gift Card Headaches

Keeping track of all the loose change that gift cards can add -- or not -- to retailer earnings each holiday season has long been an accounting headache, and it could get even more awkward.

Securities regulators have begun grumbling about inconsistent bookkeeping practices for gift cards, and that could mean some chain stores will have to go back and restate past results.

Gift cards are fast becoming the most popular holiday presents, with more than two-thirds of U.S. shoppers expected to buy nearly five cards on average this year, according to a survey of about 17,500 consumers by accounting firm Deloitte & Touche.

The problem is that more than half of those people don't fully redeem merchandise. In the Deloitte study, just 48 percent of respondents had redeemed all of the cards they received last year.  Read more (Reuters)