Ad-ology Research recently updated their Industry Marketing Insights report for Spas. The following are the predicted Top 5 Opportunities/Challenges from the report for this industry for the upcoming 12 months:

• The men’s market is growing, and many spas are offering services such as hot towel treatments and men’s facials.
• Due to the weak economy, spas report that demand is increasing for shorter treatments.
• Spas are incorporating technology such as Wi-Fi in relaxation rooms and cyber-treatments that combine biofeedback technology with guidance from wellness professionals.
• The weak economy may cause consumers to give up perks such as spa treatments.
• Spas must compete with beauty salons and gyms, which are increasing their spa offerings.

The Industry Marketing Insights report for Spas is available on Ad-ology.com (Research Store) for $195 USD with local market data for any U.S. market.

[Source: Ad-ology Research. February 16, 2010.]

Is there a way to get consumers excited about what the industry calls a “ low-interest category”?  Stuart Elliott considers this question in his recent New York Times post about laundry detergent. According to Elliott, Procter & Gamble assumed control of the industry long ago after their brand powerhouses, Tide and Cheer, dominated sales.

But P&G can’t rest easy because competitors keep popping up with new ideas. Seventh Generation has long promoted its environmentally-friendly formula. Marketers have been introducing smaller packages to hold concentrated products. And Method, a new player, is introducing a pump bottle.

As is often the case, a new product or feature must be marketed in a way to appeal to sufficiently to consumers who have long been accustomed to reaching for the old standby.  According to a P&G study, the average household does 600 loads of laundry a year. The market for laundry products is 76% female.  Eric Ryan at Method  says, “Laundry habits are ingrained early in life and people think of themselves as closed off to change.”

But Ryan hoping to invoke change by employing humor. His “pun-filled ads comparing laundry habits to drug habits are intended to be ‘provocative enough’ to be noticed.. but not to generate complaints.” The hope is that Method’s marketing will allow the company to grow without prompting Procter & Gamble to introduce a directly competing product packaged in a small pump bottle.

The question is whether humor, as employed by Method will be enough to get people change. By positioning themselves as a small company with a unique product and a unique philosophy – the replacement of large laundry jugs with small pump bottles, they may succeed.  Ben and Jerry’s deftly employed a similar strategy – appealing to consumers with humor, a quality product and emphasis on social/environmental causes  - nearly two decades ago during its battle to get placed on grocers’ shelves alongside industry goliaths.

Regardless of how the individual players end up in this battle, consumers can expect to see more ads for laundry detergent both in print publications and online in 2010.

[Sources: Elliott, Stuart, A Clean Break with Staid Detergent Ads, New York Times, 2.2.10; Byron, Ellen. The Great American Soap Overdose, Wall Street Journal, 1.25.10]

Late last year, an Aberdeen Research report noted that the average CMO stays on the job for a little less than 2 years. These short tenures leave the CMO with  limited time to make a big impact with his or her marketing ideas and to become a key member of the C-suite team. Now a report on Brandweek points to an even more unsettling trend – the temporary CMO.

The use of temporary CMOs is increasing and seems especially noticeable in firms with annual revenues ranging from $250 to $500 million, considered small to mid-sized. The Brandweek report highlights a couple of statistics that may be leading to this trend. First, employment at traditional advertising agencies  fell significantly during the recession. This shift in employment has left talented marketing and advertising professional available to take whatever position comes along. To cut costs, firms are not yet looking for permanent employees. Instead, they are seeking lower-cost employment arrangements and one of these has been temporary work, which grew quickly in 2009.

Companies are hiring temps because these workers don’t qualify for benefits. In addition, they may cost less than traditional consultants according to Bob Van Rossum, president of MarketPro, an Atlanta  executive staffing firm. Rather than using a consultant to take care of all marketing needs, companies are bringing in temporary marketing executives to oversee a product launch.

The upside for companies that engage temporaries is that these workers may focus on the task at hand without worrying about corporate politics. Sharon Slade, who has worked in a number of temporary positions says, “ you can take more risks, be more aggressive and provide more solutions. You can also focus on accelerating what needs to be done.” The downside to this hiring strategy may be that the best candidates will not be available once the economy fully recovers.

For now though, it looks as though the temporary CMO is part of the playbook for many marketers.

[Source: Wong, Elaine. Temporary CMOs Are Here to Stay, Brandweek, 2.7.10]

After surging in 2008, prices on many consumer packaged goods (CPG) fell in 2009. And when prices didn’t fall enough on brand-name products, consumers turned to private label alternatives.  As the outlook for economic recovery remains somewhat murky, especially with the continued high rate of unemployment, newly published studies suggest that the temporary price reductions (TPRs)  manufacturers put in place last year will continue, along with promotional marketing.

Consumers indicate that their product selection continues to be driven by price, according to their responses to an IRI Food Safety report and survey. Here’s why consumers say they are making purchases:

• Price of the item 87%
• It’s on sale 80%

And consumers are using the following shopping behaviors according to the same survey:

• Bring along coupons 82%
• Stock up on sale items 75%
• Look at store flyer 71%
• Choose store because of lower prices 68%
• Buy different brands because they’re on sale 50%

To attract shoppers, manufacturers are ramping up merchandising efforts as follows:

• Feature ads 43%
• Feature ads/display 55%
• Display 58%
• Price only 58%

Manufacturers are increasingly working with grocery store accounts to turn around what  Standard & Poor’s called a challenging picture “ as they navigate the downward pressure on prices.” The seriousness of the situation was echoed by Supervalu Inc. Chief Executive Craig Herkert who said, “In my 30-plus years in retail, I’ve never witnessed the intense level of price reductions and promotional activity now occurring,”

Look for increased advertising both online and in traditional media as well as in-store as CPG marketers work with grocers and other retailers to improve the profit picture in 2010.

[Sources: Vigna, Paul and Shipman, John. Weak Prices Hit Food Makers, Sellers, Wall Street Journal, 2.4.10; Times & Trends, GMA Online, 2009]