[Note to daily readers – during our summer hiatus we’ll be posting once a week to keep Google from knocking us off its search results…]
Another Bubble To Keep A “Social” Eye On
Since we outlined just two short months ago why social media for business is a canard, two major acquisitions in the “Enterprise Social Networking” space took place.
In late May, Oracle bought Vitrue, a company few have heard of, for $300 million…more than three times REVENUE. A rounding error for Oracle, but an error is still an error.
Not to be outdone, Salesforce.com purchased Buddy Media for $689 million. Forget that this deal was done at roughly SEVEN times REVENUE. Focus on the fact that Buddy Media’s wagon is tied entirely to Facebook. See Zynga and its stock chart for reference.
[ *UPDATE *] F&CK! We forgot always-late-to-every-game-in-business Microsoft, who bought ESN Yammer on Monday for FIFTY, yes FIFTY, times REVENUE. Fire. Ballmer. Now.
More Soup For You !!!
Loyal Lairig Marketing readers know we have pounded endlessly on the soup that Campbell’s cooked for itself over the past several years. A number of solutions (no pun intended) have been announced by the company.
Yet, in the just-closed earnings period, Campbell’s announced its eighth consecutive quarterly decline in U.S. soup sales, this time 3%. Stunning.
So, the next proposed solution (pun intended)? The company announced recently a plan to launch 30 new soup products, including the likes of “Jammin’ Jerk Chicken.”
Jammin’ jerks, indeed.
NRF = National Recycle Forecast
We have repeatedly brought to your attention the bullsh&t cheerleading forecasts, most recently here, produced by the National Retail Federation.
Over the past five months of one of the most sluggish economic periods ever, here is what the NRF has predicted:
- Valentine’s Day Gift Sales – up 8.5%
- Easter Day Gift Sales – up 11.0%
- Mother’s Day Gift Sales – up 8.4%
- Father’s Day Gift Sales – up 10.0%
See the pattern? Again we’ll remind you absolutely no one tracks the actual spending.
Like a broken clock, the NRF will eventually get one of these holiday forecasts right.
They’ll Have To Shrink The Carts Soon
Lest you thought the trend toward smaller retail stores we brought to your attention over a year ago was fleeting, here is more proof this one might become the “new normal” for a while.
“Price Chopper has introduced Price Chopper Limited, a first-of-its-kind concept store in Saratoga Springs, N.Y., that provides a smaller, full-service grocery…with tailored assortments in a compact 19,000-square-foot footprint.”
Wegman’s and Spartan are other chains who have ventured forth (or back?) in the past six months. This will lead to another big story at the end of the year – how CPG companies will be struggling to launch new products due to a lack of shelf space. You read it here first.
Our Ongoing “Stuart, Stuart, Dear Stuart” Series
Our favorite advertising “guru,” The New York Times columnist Stuart Elliott continues to fill our coffers with his inane first-paragraph references to days gone way, way by.
In a recent story about the groundbreaking campaign (* sarcasm *) from Pizza Hut for its new sandwiches, Elliott opens with this:
“When the moon hits your eye like a big pizza pie,” the song goes, that’s amore. But there is little love lost when a big maker of pizza pie gets hit in the eye with the success of sandwiches.”
Forget what a f&cking lame stretch the metaphor is. Realize that the song Elliott cites, That’s Amore, was first introduced in…