Great Tsotchkes (aka Swag) I Have Known

In keeping with the theme of the last few postings on sales promotion, dealer loaders and assorted point of sale issues, I thought I would continue that theme particularly in light of the holiday season. The Advertising and Promotion Awards in the Nov/Dec issue of Beverage Dynamics also prompted me to address this subject.

First, for the uninformed, the Urban Dictionary defines Tsotchke as “free goods given by companies to consumers, buyers, trade-show participants or other target audiences to promote brand recognition or customer loyalty.”

So, here are some points of view on the subject including some picks and pans from yours truly…

The most consistent and impactful POS has to go to the Absolut folks, particularly their multi-case floor displays. In fact, Beverage Dynamics gave it 1st place for 2010. No wonder, since Carol Giaconelli at Pernod Ricard (and a Seagram alumnae) is among the most imaginative sales promotion people I know. Even after working on Absolut for many years and for different regimes, Carol maintains her creative edge.

While I’m on the subject, I suppose the Hall of Fame for floor displays with loader items has to be the Captain Morgan mirror. According to Sam Ellias, the CM guru back in the day, that promotion was a prominent reason for the brand’s early success. Apparently, all a sales person had to do was to show the mirror in order to get the question, “how many cases do I need to buy?”

I managed to find a photo online. Despite it’s popularity at the time, you can still get one on eBay for under $25.

Now to the pans…

There are lots of awards in Beverage Dynamics for co-packs, gift packs and cartons/tins. The so-called value added packaging. Sorry, but I still don’t get it. In this environment manufacturers expect to entice consumers with Tsotchkes? If you want to measure effectiveness go to a flea market or eBay after the holidays and you’ll find glasses, shakers and pitchers galore. I wouldn’t be surprised if most of them came from retailers.

The Hall of Shame best/worst sales promotion item of all time came under my watch on behalf of Coyote Tequila. Don’t get me wrong the promotion item was great. It was a back bar pedestal with a howling Coyote as the centerpiece with a bottle on the base. Each time the bartender picked up the bottle a button was triggered and the sound of a howling Coyote was heard. Very cool. Very effective.

Just one small problem — Coyote Tequila tasted like crap. As the saying goes, “I wouldn’t drink it with your mouth.”

And now, dear reader, I have two questions for you.

Care to share your nominees for the best and worst promotions you’ve seen now or in the past? Either hit the comment button or send me an email.

Also, as I went through the 40 advertising and promotion awards by Beverage Dynamics, there were lots of first, second or third place winners from many major suppliers — Brown Forman, Heaven Hill, Skyy/Campari, Pernod, Bacardi and others. None were from Diageo. I wonder why? It could be that their market position and brand shares allows them to spend in other ways. That would explain the dearth of POS recognition. But no ads, traditional or digital, made it either. Huh.

As we used to say in Brooklyn, wait ‘til next year.

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Product Placements

Think about E.T. and Reese’s Pieces. Smirnoff and James Bond. “You’ve Got Mail” and Starbuck’s.

Product placements in film and TV, depending on whom you talk to, are considered a critical brand building or reinforcement tool. There are some, however, who see it as low impact — it’s ok if you don’t have to pay for it.

In doing a little research on the subject lately, I’ve come across some interesting information.

First, consider this from a study on the subject: (Link)

“…the type of product-placement an advertiser opts for should depend on their marketing goals. If you want to build awareness … it’s probably best to opt for a placement that plays a role in the story itself. But if you just want to reinforce preferences for a well-known brand (say, “Coke” versus “Pepsi”), it’s probably not necessary to go to that expense. Just having your brand in the movie works just as well.

Second, I spoke to Joel Henrie who runs Motion Picture Placement, a leader in the field and an old friend who informs me that the upcoming Wall Street: Money Never Sleeps (the sequel) had adult beverage companies tripping over themselves to pay for placement. We’re talking big bucks here.

My first exposure to product placement (albeit from a distance) was shortly after I joined Seagram. It was on behalf of Herradura Tequila.

Based on film industry connections, the company had an opportunity (which I believe turned into a mandate) to place the brand in a film called Tequila Sunrise. Aside from the title as a perfect fit, the placement involved brand exposure galore — verbal mentions, bottle exposure on the bar and consumed by the actors, signage, even a bus passing by with a Herradura ad on the side. So, there was a role for the brand in the story, not a central role, but the title alone made the brand a key element.

Even more, Tequila Sunrise was star studded and sure to have target audience appeal. Mel Gibson, Michelle Pfeiffer and Kurt Russell starred; Robert Towne wrote and directed the movie. A sure thing, right?

The movie sucked and never lived up to its promise. A Variety review summed it up nicely: “There’s not much kick in this cocktail, despite its mix of quality ingredients.” Roger Ebert wrote, “It’s hard to surrender yourself to a film that seems to be toying with you.”

The small number of people who saw the film agreed.

I’ve always been a proponent of product placement and integration. To me, it makes good sense as a brand-building tool. But, I’ve learned the following:

  • Positive impact on a brand is not a foregone conclusion. No matter how well the product is shown and integrated, sometimes, the only winner is the TV or film producer. But, that’s true for all media.
  • For adult beverages, how the product is portrayed is as important as the portrayal itself. Enough said.
  • If the story doesn’t click with audiences, the brand becomes “collateral damage.” Unfortunately, there’s no real way to predict it, but worth the shot.

Have you noticed what E.T. did for Reese’s Pieces? As I’ve been told, it was first offered to Mars on behalf of M&Ms and they turned it down. Hershey said yes.

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Charity Follow Up

A very close and dear friend from the Seagram days told me the following story about another charitable dinner event that I’d like to share…

One of the Seagram companies in the past was Four Roses and they had a metro New York manager named Nick Cotter. Nick was not only an ex-cop in NYC but he had been shot five times in a police action/raid. He nearly died and in fact was taken for dead if not for the persistence of an emergency medic.

After months and months of recovery and rehabilitation Nick was on his feet and decided on a new line of work. Four Roses hired him. Nick turned out to be very important to Seagram inasmuch as he became a conduit to the police and fire departments when things needed to get done. (More about this at another time.)

Well, as the story goes, shortly after joining the company he was at a charity dinner. But, in those days there were no pre-meeting to announce your “gift” – you were expected to announce it publicly in a ballroom with 500+ people.

As they were going down the list, someone from Schenley was called and announced, “Schenley Distillers is proud to donate one million dollars.”

Nick Carter, who didn’t know what to expect or make of this event in the first place, was called next. His colleagues were hysterical thinking that they put one over on him.

He stood up, was very calm and announced, “I donate one million and twenty-five dollars from Schenley and Nick Cotter.”

The room erupted in laughter.

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