Happy Thanksgiving to the World

Thanksgiving is a typically American holiday. The lavish meal has come to symbolize abundant consumption: the result – and reward – of American hard work and production.

And, while this Thursday our country will collectively celebrate a great feeling of contentment, there are millions of people who go hungry every day. Another great feeling we can celebrate is the knowledge that we as individuals can make a difference and that ending hunger is a goal that is literally at our fingertips.

Go to www.freerice.com. Answer some relatively simple questions. For each correct answer, FreeRice donates 20 grains of rice through the United Nations World Food Program. Twenty grains of rice may seem a small amount compared to your planned Thanksgiving feast, but it’s important to remember that while you’re playing the game so are thousands of other people at the same time. It’s everyone together that makes the difference.

FreeRice has generated enough rice to feed more than two million people in the past year. And this simple act can offer you and your family and friends the chance to both celebrate the holiday and share generously with others.

The members of the Brand Keys family hope that the beauty and blessings of Thanksgiving bring warmth to your home, peace to your hearts, and a real sense of Thanksgiving contentment.

The Citi Never Sleeps

Citibank started its generally meaningless “Live Richly” advertising campaign in 2001. The campaign strategy was to urge customers to not work hard, not consider money to be all that important, and to find meaning and value in their lives through relationships with loved ones, rather than through conspicuous consumption. A few years later that campaign was largely superceded by a new “flavor of the month” campaign revolving around identity theft. Remember Identify theft? When that didn’t work they resorted to things like online bill-pay “instant Win” games.

In April 2007, after months of research, the bank settled on the “Let’s Get It Done,” theme, a strategy which it was hoped would get customers to use more of Citi’s services to get “it” done and a rallying cry for employees to get behind the bank’s apparent turnaround. After a 2-month $30 million advertising flight, the strategy did not, in fact, get “it” done for the bank.

And so, after nearly three decades in mothballs, and more than $451 million in brand advertising in 2007, Citigroup is resurrecting the theme, “The Citi Never Sleeps,” the campaign that was used to usher in the original A.T.M. and 24-hour banking.

But as anyone who watches the news or reads the papers knows, Citigroup’s troubles are somewhat larger than their ill-conceived advertising strategies. According to the most recent Customer Loyalty Engagement Index, Citi ranks last among some formidable competitors. Ranking are as follows:

1. Bank of America
2. JP Morgan Chase
3. Wachovia
4. PNC/Bank of NY
5. Wells Fargo
6. Washington Mutual
7. Citi

In addition to a general lack of meaning or differentiation among consumers, and loan problems contributing to about $20 billion in losses, the bank apparently has problems in integrating the many pieces of the company that were sutured together over the last couple of decades. And with investors battering Citibank’s shares (close to $2 last week), the government stepped in Sunday night with a plan to rescue what was once the nation’s most powerful bank.

Financial experts have suggested that it would not be surprising to see a public backlash emerge over the rescue plan, specifically in requiring neither a change in top management nor the sale of parts of the bank and for privatizing profits made from the bank’s high-risk bets, but placing losses on the taxpayers’ shoulders. All of which will require real and actionable engagement with the brand – something beyond an expensive new advertising campaign.

Yes, “the Citi never sleeps.” And now you know what’s keeping it up at night.

Economic Pins and Needles

With the credit crunch threatening to trim holiday sales, vendors seem to be on pins and needles about Christmas trees. The combination of layoffs and the economic downturn have tree vendors in major cities worried that consumers will cut back on purchasing the traditional holiday evergreens.

In New York City, vendors have already cut the dollar amount of their orders by 25% this year and are trying to get through the forest of economic woes by buying less-expensive trees. But some providers are relying on the fact that in bad economic times people buy trees and cut back on gifts. They may be going out on a limb taking that viewpoint this year, because recent surveys show that the average holiday spend is predicted to be 5-10% lower than last year already.

Between home grown and imported trees, vendors are reminding consumers that the range of species available will be wide and there are always varying sizes, which means there should be a tree suitable for every budget. Fourteen-foot premium Balsams are said to be going for around $300, although there’s always the $10 “Charlie Brown” tree for those with really, really tight budgets.

For those of you who bemoan the threatened disappearance of a beloved holiday tradition, it may provide some solace to remember the admonition that no matter what the economy is like, if Christmas isn't found in your heart, you won't find it under the tree.

Giving Brands the Benefit of the Doubt

As part of a new ad push by the Metropolitan Transit Authority in New York City, Google Maps "wrapped" three cars of the Times Square Shuttle with advertising declaring Google the only way to find your way around the city. It was all very attention-getting, but the problem was inside the train where Google apparently forgot to ask a New Yorker for correct directions.

Ads on the walls of the train cars showed riders directions saying that to get to Madison Square Garden from Grand Central, you take the 1, 2 and 3 downtown to 33rd St. and walk a block. The problem is that the Google forgot the part about having to take the cross-town shuttle from Grand Central to Times Square first.

Well, OK, Google is from California so they’re out-of-towners, but does this gaffe hurt the brand? To answer that you need to keep in mind that loyalty to Google is very high. The current rankings in our Customer Loyalty Engagement Index look like this:

1. Google
2. Yahoo
3. AOL
4. MSN
5. ASK
6. Netscape
7. Altavista

And that’s a good thing for Google because of the Rule of Six. That’s where loyal customers are six times more likely to do lots of positive things (buy your products, buy more of your products, recommend you to friends, invest in your company, and rebuff competitive offers). But one of the most overlooked parts of the Rule of Six is that loyal customers will give your brand the benefit of the doubt when you make a mistake.

And, apparently, New Yorkers weren’t too put off. They are, after all, a tough breed and most felt very forgiving of the California company’s error. Still, it’s a hard world out there and there’s another rule that goes never interrupt your competitor when he is making a mistake.

Bankrupting the Brand

Questions have been raised this week regarding a rescue package for General Motors. The choice seems to be a government bailout or a bankruptcy sale. But not everyone thinks that a Chapter 11 filing would be a bad thing.

While painful for GM, it may be preferable to another government bailout, which might further weaken the company. A bailout might also result in higher levels of consumer anger toward GM brands. Consumers aren’t exactly happy with the proposed use of their tax dollars now, and a bailout package just might sink the GM brand.

Companies in other industries have shown that bankruptcy can offer a fresh start with a more competitive cost structure and edge, but few have been so poorly rated vis a vis engagement and customer loyalty as General Motors. In this year’s Customer Loyalty Engagement Index, auto brands ranked as follows:

1. Toyota
2. BMW/Mercedes
3. Honda
4. Nissan
5. Saab/Subaru
6. Chevrolet
7. Jeep
8. Volkswagen
9. Hyundai
10. Chrysler/Volvo
11. Ford
12. Kia
13. General Motors

Experts have noted that while a bankruptcy might create a stronger company in the long run, consumers could easily see it as a sign that the cars they bought might not retain their value, and seek other options. And given the current economy it might be worth remembering the prophecy made by Will Rogers: “We are the first nation in the history of the world to go to the poorhouse in an automobile.”

Pack up Your Troubles

In the face of a deteriorating network, DHL announced it was ceding the US express mail market – about 1.1 million shipments a day – to the big three: UPS, FedEx, and the US Postal Service.

DHL’s taking on the U.S. market in 2003 with the purchase of low-cost carrier Airborne was always a risky venture given the intense competition from UPS and FedEx, and the general ubiquity of the brand. There may have been a degree of brand differentiation between UPS and FedEx, but DHL was, well, just DHL. And as technology and process improved, there weren’t many differences in the rational services offered by any of the providers.

According to the 2008 Brand Keys Customer Loyalty Engagement Index, drivers for the category were identified as: Shipping and Price Options, Convenience, Reliability, and Customer Support. And when customers rated the brands, here’s how they delivered against expectations:

1. UPS
2. FedEx
3. DHL
4. US Postal Service

In the spirit of full disclosure, DHL would have ranked 4^th had it not been for the abysmal ratings the USPS gets on the Customer Service driver.

DHL has cut 5,400 jobs this year and will discontinue its domestic-only air and ground services in January and is reorganizing to focus entirely on its more lucrative international offerings where DHL still is a fierce competitor and possesses more brand meaning.

Still, in the US, DHL has never resonated with the kind of brand values that can truly engage customers, keep them loyal, and can keep a brand profitable. And, as naturalist William Henry Hudson noted, “You cannot fly like an eagle with the wings of a wren.” And apparently not without a brand, either.

Waiting for the Dough

Wal-Mart, the world’s largest retailer, said today that because of its low-price focus October sales were up by 2.4%. This was well ahead of expectations, which is exceptionally good news as it flies in the face of predicted holiday sales.

According to our annual Holiday Survey, it seems that any holiday jingle most retailers will hear this season is more likely to be sleigh bells than money spent by consumers. As part of its arsenal of leading-indicator measurement tools, Brand Keys interviewed 16,000 consumers in the 9 US census regions in regard to their holiday spending. They discovered that the average spend for holiday cheer will actually be slightly depressed from 2007. A combination of a depressed economy and equally depressed consumer has conspired to actually diminish planned holiday spending for 2008 by 5%.

Wal-Mart’s same-store sales rose 2.2% at Wal-Mart stores and 3.6% at the Sam’s Club warehouse stores. We find these figures gratifying because they reflect the loyalty assessments in our Customer Loyalty Engagement Index, which are predictive as to how consumers will behave toward various brands. Rankings for Discount Retailers were as follows:

1. Wal-Mart
2. Target
3. Costco
4. Kohl's
5. Kmart

Total October sales for Wal-Mart rose to $28.57 billion. At Sam’s Club, sales were driven by sales of groceries, baby and pet products. Weaker categories were electronics and jewelry, but no surprise there. Our Holiday Survey revealed a decrease in the electronics- technology category, down 13% from last year.

Consumers are anticipating discounts in the electronics-technology area, as those kinds of offers tend to generate store traffic, and Wal-Mart said it would be cutting prices on thousands of items over the next 7 weeks. But the reality of the new 21^st century marketplace is that consumers are on to the sales, and promotions, and the deals. Nearly half of the 16,000 consumers (48%) interviewed indicated that they were waiting for year-end sales before they spent any of their hard-earned dough.

Electing to Jump on the Brandwagon

It’s Election Day and no matter which political party prevails, it’s a win-win for all Americans.

Why? Well first, they win as voters because they get to exercise their rights as citizens. And second, they win as consumers because many brands – capitalizing upon the unprecedented, 2-year buzz leading up to this election – have found it practicable to align themselves with the patriotic act of casting votes.

Call it opportunistic, or call it encouraging good citizenship (more likely it’s a combination of the two), but your "I voted" sticker can – depending upon where you live – net you free food, free drinks, free rides, and even free phone calls.

Charlottesville Transit Service, for example, is offering free bus rides to voters. Cast your vote and you can get a free red, white and blue star-shaped doughnut at Krispy Kreme. And you can combine that with a free cup of coffee at Starbucks or at Eat ‘n Park restaurants. Shane’s Rib Shack is offering up free chicken tenders, fries, and a beverage to all patriotic – and hungry – citizens! Feel you deserve just desserts for doing your civic duty? Ben and Jerry’s is offering up free ice cream. And if you want to urge friends and family to vote, Credo Mobile is making all outgoing, domestic calls free while the polls are open.

Most businesses jump on the political bandwagon because it's a relatively easy tactic and almost certainly generates good will. Even if you voted early, you can still get all the freebies. Just take your "I voted" sticker to any of the participating companies.

With so many national and regional brands participating today, it gives new meaning to the observation about promotions like these being the very best example of brands “doing well while doing good.”

And Al Capone’s Election Day advice, “Vote early and often”!