Is Kraft's bid not sweet enough for Cadbury?

It may come as news to some of you chocolate lovers that British based “Cadbury PLC” is currently being bid at, by American company Kraft Foods Inc.

In September 2009, the initial bid by Kraft was rejected by Cadbury. Recently though, on November 9th Kraft once again released another bid for the popular chocolate business, with an offer of US$16.4 billion.

Todd Stitzer, Cadbury chief executive indicates that they turned down the offer because “a link-up with Kraft made no strategic sense.” He also believes that Cadbury on its own “has a strong future as an independent candy maker."

Perhaps Kraft’s valuation of the company is in fact low, making Cadbury worth a lot more than they think it is. Cadbury is known as the world’s second largest chocolate confectionary business, while Kraft is No.5 within the same category.

Although the result of acquisitions may limit costs and decrease competition in the marketplace, the effects on either company will require a long transition process. At this point, it seems like Kraft is the one that needs the acquisition to go through more so, than Cadbury.

The truth of the matter remains, that the bidding process has become an increasingly hostile and tense situation for the bidder. Cadbury is not willing to be bought out at such a low price, while Kraft is finding difficulty increasing their bid, due to their own internal financial challenges.

By February 2010, Kraft will have its final chance to make a new bid for Cadbury -- and that is when we’ll see if one of the world’s most popular and much-loved chocolate brands will be like so many other businesses that go down in the history of mergers and acquisitions. In my personal opinion, I agree with Stitzer's view and greatly value the Cadbury brand as an empire on its own -- I also think it has the potential to continue its independent stream of success.

Any thoughts or predictions on how this will play out?


-Nikita

TED: Technology, Entertainment, Design

These days the amount of literature and words that I read on the internet is beyond me. I like to think of all the blogs I read, as my everyday dosage of inspiration. Being in marketing, constantly deciphering the news of the business world is a basic for us to take on -and doing so helps us jive out our inspiration and triggers our inner thought-seeking selves.

So where does one get inspiration from? Having the cyber world as the epicentre for communication of all kinds has people expressing themselves through literature and text of all types. Online forums, communities and blogs have all created an intimate connection with someone out there. One blogger’s words are another’s source of inspiration!

Within the experiences, comments and stories that everyday people out there share, we find an indescribable connection with the online world, and that is where the real inspiration for creative and strategic thinkers lies. Being able to exchange thoughts and give in your two cents about a stimulating topic brings a whole new meaning to the word collaboration.

One organizational forum that has done a magnificent job at emerging is TED, otherwise acronym-ed as Technology, Entertainment, Design. Indicated in its tag line “ideas worth spreading,” this website holds a series of virtual video presentations performed by prolific speakers (authors, directors, CEOs, worldly icons etc).

I currently finished reading the book “Eat, Pray, Love” and I just so happened to find the author Elizabeth Gilbert online doing a TED presentation.

Watching her speak brought the idea of relate-ability to whole a new level. As I had already established that “writer to reader” connection with her, I began to relate to her in more ways upon watching her on TED. Visually seeing her present and remembering all the takeaways from the book really helped solidify her not only as a writer, but a genuine person whose writing I connected with. She was personable throughout her presentation, which left me inspired and wanting to learn more about her.

Gilbert’s book kept me gripped all throughout and her presentation absorbed me in even more. Similarly in marketing, adding that personal, real and authentic touch to our ideas and processes will leave consumers actually wanting to learn more about a brand or a product, in turn strengthening the “marketer to consumer” connection.

Now I know it’s easy to see digital media footage on anyone these days, but the “TED talks” are definitely worth watching. So I encourage you to spend some time on TED.com and see what’s out there to discover. In an age where online media and the “blogosphere” are turning a high point, organizations like TED are valuable and insightful for us business folk.

-Nikita

Escape With Us

Escapism --a word that provokes excitement, indulgence and mere bliss has seemed to take over my mind since the start of my long awaited summer break. After the ending of a school year, I for one am looking for ways to escape into things that simply make me happy.

For instance, splurging on unique material goods, dining out at a nice restaurant, or a simple movie night out are escapist ways in which many of us have rewarded ourselves after a year of economic turmoil and school stress.

The growing trend of consumer escapism has been at an all time high this year thanks to the recession. Even with the woes and worries of consumer spending and survival, there is still a huge chunk of us that are indeed spending on product purchases and experiential services. For instance, Canadian based Cineplex Entertainment LP has managed to benefit from the rise in consumer escapist trends, by outperforming past year revenue rankings. Net revenue for Cineplex rose from $189.8 million in May of last year, to a total $211 million in May 2009.

This presents an opportunity for many service businesses, as consumers are spending their money on things that give them emotional satisfactions rather than physical utilities. Businesses that fall under the entertainment industry are able to create a sense of trust, connection and empathy with consumers who are willing to spend on engagements of happiness. Everything from movie theatres, sporting events, concerts to even sensory restaurant dining are all positioned to rank in revenues for their businesses. As long as their brand positioning offers an intangible positive experience to consumers, these are the businesses that will gain success during such times. It’s about adapting to what the consumer wants, and then guiding them with the right level of care to lead them to their escapist satisfaction, while gaining your own business triumph.

Cineplex has factored the idea of escapism into their own branded catch phrase of “escape with us” through delivering their offering to the average movie-goer. Speaking for myself, I have been and always will be a movie junkie who gets enthused every time I go to a theatre. There’s just something about watching a large screen and being taken away into a world of moving stories and images, that leaves me gratified and in wonder.

Let’s face it; you are never too old for a movie outing at your local theatre. Cineplex’s success just goes to show that the basic movie watching experience will always remain universal and intimate to the consumer; which is one of the best ways to escape to contentment!

-Nikita

If Jeans Could Talk: BlueNotes Fall '08 Ad Campaign

...if my jeans could talk they would probably tell a story that is filled with anguish, heartbreak, laughter and unforgettable memories.

If my jeans could talk they would probably tell a story that would make me completely flustered. But that's the truth..I've lived and loved in my jeans, I've made memories that I won't forget.

My heart twinged with nostalgia when I first saw BlueNotes 30-second television spot. The black-and-white ad plays almost like a diary, revealing the secrets of its jean wearers. It's sincere and genuine. It's heartfelt and just a bit emotional.

It forced me to reflect upon all the memories' I've had in my favourite Rock & Republic jeans...

I'm usually not intrigued by ads, most of the ads I see slip into my subconscious (where undoubtedly they create their own havoc) but this one stuck with me and left me filled with longing.

I adore the spot. I think it's beautifully done and does convey a genuine tone. The angle works well and hits the right keys with BlueNotes target market: the young and wholesome yet flirty and fun guy or gal.

Now did it honestly make me want to invest in a pair of BlueNotes jeans? No, I don't think so. Despite the ad, I'm familiar with the brand (their style and quality) and I'm not convinced. Yet, if I were a younger consumer still shaping my truths concerning my style and attitude, I would be hopelessly captivated by the ad.

Regardless of its effects on me, the spot helped me appreciate all that jeans do for us and their significance in the whirlwind adventures of our youth.

(I tried to find the ad for you guys online to no avail, If I do I'll upload the video..it's definitely worth a watch)

According to Scientific Study: Maserati's Increase Sexual Arousal in Women

I’m wondering whether I have everyone’s attention yet?

Mine was surely grabbed after I read this article in BusinessWeek. The article states that Hiscox, a British luxury-car insurer, studied the reaction of consumers to various exhaust engine sounds.

Their conclusion: 100% (is this even believable?) of women had higher testosterone levels after listening to Maserati’s V-8 engine.

Maserati is even letting men download the sound in the form of a ringtone... I guess pick-up lines are a thing of the past ....

Really this sounds like a lot of bull (excuse me) and a marketing ploy to rev up sales in a weakening economic market.

I wonder just how many single, lonely and desperate men this will attract.....

McDonald's Goes 'Unbranded' in Japan

While McDonald’s Quarter Pounder hamburgers have been a successful North American menu item since the 1970’s, they are relatively unknown in Japan with only one McDonald’s restaurant in Kumamoto featuring the Quarter Pounder.

In early November though, officials of McDonald’s Japan unveiled two ‘Quarter Pounder’ restaurants in Tokyo’s hip Shibuya and Omotesando shopping areas. Devoid of their trademark golden arches and tacky red & yellow interior, the restaurant had not one mention of the McDonald’s brand. Instead, within the simplistic black and red interior, you were confronted by dim lighting and a 2 item menu: a double Quarter Pounder meal for $6 or a single for $5.

According to reports, officials had the marketing stunt planned for weeks and even refused to speak with media officials during the launch, vying to keep the restaurant's brand identity a secret from Japanese burger buyers. Relying on viral marketing, through word of mouth and subway /Internet ads, to promote the restaurant, MacDonald’s increased their November sales by 60%.

The restaurants were only open until November 27th at which time McDonald’s unveiled its identity and rolled out the Quarter Pounder nationally.

The whole stunt has been deceptively clever, yet if McDonald’s relies on this momentum for prolonged success, I think they better re-evaluate their game plan.
I wonder though, why all the secrecy was needed? I get the “mystery” part: its luring, the intrigue behind a masked brand but would their Quarter Pounder have not fared well coupled with their McDonald’s brand?
I commend them for taking this risk though and trying to capture a new market of burger buyers/fast-food lovers (at least that’s what I believe their motive was)-for the consumers who never thought they would eat at McDonald’s probably indulged in a McDonald’s burger unknowingly.

Starbucks Promised FREE coffee to all American Voters!

American coffee drinkers were promised a FREE, tall Starbucks coffee, on Tuesday, for VOTING in the US Election!! Starbucks launched a 60-second what-if? spot to get the word out to and to help encourage Americans to vote in what was called a "historic US election".

While, I think that it was awesome to see a corporation sacrificing their bottom line for the bigger picture, Starbucks was informed that offering renumeration was phobited by election rules.

I personally think it was a great idea and could have been very influential in the promotion of Starbucks and in getting people behind's to the polls!

Enjoy the clip below,