Target Markets

An Ingenius Approach to a Ceramic Dilemna

The standard method for decorating just about any promotional item has been the traditional silk screen.  Silk screen involves the use of a screen or mesh that is placed over an item to be decorated.  Ink is then poured on the mesh and a straight edge is run over it to squeeze the ink through and the logo is applied.  This has always worked well for flat items but has been more expensive and slower to accomplish on odd shapes.  Even more difficult are non-porous items like ceramic where the ink has to dry on the surface.   During the summer this can lead to a smudged logo during periods of high humidity.

Along came MB Works with a unique solution to what has been an industry wide problem.  Instead of decorating on the actual ceramic mug they deboss a simulated leather wrap.  The Alta Ceramic Tumbler uses a full length leather type grip which insulates the hand but also lays flat for simply debossing.  They are then stitched together and are put in place around the tumbler.  This allows the manufacturer to stock a single item while carrying multiple colors for the wrap.  Extending this particular style even further MB Works has released a larger tumbler with even more colors that has a spill resistant lid.  The To-Go Ceramic Tumbler combines a black lid with a colored leatherette wrap that is debossed with the client logo.  Again unlike so many other manufacturers MB is not suffering from stock issues because the wraps are easy to produce and they are therefore able to concentrate their budgets on the single color ceramic tumbler. 

With the current economic situation so dire organizations need to come up with creative ideas for saving money.  The principle of stocking a single base item while providing multiple color options via the use of wraps is brilliant.  Even in a crisis they could afford to air freight in the wraps for a small fraction of what it would cost to fly in tumblers.  Yesterday we presented some ideas for using a blanket to boost client relations which was a direct attempt to mention that with marketing money so tight it is important to come up with ideas that serve many purposes.  Corporate mugs are the same in the sense that they serve a purpose other than promoting a brand.  Especially with ceramic mugs which can be refilled at many coffee shops you are potentially saving the end user recipient money while also fulfilling the primary goal of spreading a marketing message.

 

The Real Failure at Toyota Was Not Mechanical

As the news broke last winter of the massive recall at Toyota focus immediately shifted to the mechanical failures that plagued drivers.  However the real failure was a corporate structure so rigid and so enamored with the success of the past decade that they lost touch with the customer base.  In many ways Toyota rivaled the failures of General Motors during the previous decade.

When Toyota first announced the recall there was widespread panic.  Later information on the Toyota recall site clarified the situation.  In total millions of vehicles were recalled and in the subsequent months it has become clear that the problems had existed for years but had either been ignored, missed or swept under the rug by management.  Much like the failures at Ford, General Motors and Dodge during the later part of the last century there was an inability on the part of top level management to recognize the simple fact that customers would eventually revolt if product quality dropped in a significant way.  The car business is not a field of dreams if you build it they may come to you one time but will quickly jump to other brands if quality is poor.  Toyota will find out in the coming months and years that the cost of fixing the problem whether real or imaginary several years ago will be dwarfed by the costs of fixing the damage to their reputation both among customers and of course dealers.

Car sales rose by a significant amount in March largely supported by immense incentives.  The costs of these incentives are known only to the manufacturers but it will likely far exceed the costs of repairing the problem years ago.  As the economy grows the question will be whether or not customers continue to choose Toyota when the incentives diminish and even more whether Toyota is now relegated to steep incentives that it never had to give previously.