I was in meeting recently, reviewing competitive intelligence for a very cluttered category.  Among the findings was the abundance of features the different competitors offered consumers.  And having pored through so many competitors with so many choices, I found myself in the shoes of their shopper, completely overwhelmed and uncertain which I would personally choose.

Immediately, I thought: “jam!”  Not as in “brain jammed by too many options,” but rather, strawberry, grape, and other flavors.  Specifically, a study I recalled that was conducted by a Columbia University professor, a California gourmet market, and a premium jam maker.

In the study, a sampling booth set up in a gourmet market enabled consumers to try different types of one brand of jam.  Every few hours the assortment was changed between a larger set of flavors and a smaller set: twenty-four different flavors, to just six.

On average, consumers tasted at least two kinds of jam, and everyone received a dollar off coupon to purchase.  But what ultimately drove sales stemmed from the number of choices the consumers were presented.  Sixty percent of the shoppers were drawn to the large assortment, while only 40 percent stopped by the small one. But when it came to actually making a purchase, all those choices actually paralyzed the consumers.  Thirty percent of the people who had sampled from the small assortment decided to buy jam, while only 3 percent of those consumers who had to choose from the two dozen different jams purchased a jar.

Similar studies have been done around chocolate, 401k plans, and speed dating, all with similar results.  A large assortment of choices may attract attention, but when it comes to actually making a choice and buying, it’s distracting.  Additional research also concluded that ultimately, when a consumer does make a choice from among many, he or she is more likely to feel less satisfied, less happy with the choice and even insecure, asking “did I make the right selection?”  In other words, walking away with a negative experience.

So often we see brands, clients and even agency people thinking that more is more.  Give them choices, give them options, and let them choose!  But in the end, providing a focused, more streamlined offering leads to “happiness” and ultimately, a sale – whether it’s features and functions, or product benefits, or even creative choices.

(Source:  New York Times, “Too Many Choices: A Problem That Can Paralyze,” Alina Tungend, February 26, 2010)

This is important because it gives us an uber-snapshot of today’s consumer profile. When faced with a must-spend occasion, we know what they’re thinking and doing.

Today’s consumer is:

1.  Showing optimism

-  Expected to spend $688.87 on the holidays this year, up a tiny bit from last year ($681.83), but nowhere near years past (e.g., 2007 = $755.13).

-  Translating that feel-good into looking good with jewelry!  Asking for jewelry has made a 10% jump up from last year—demonstrating a higher comfort level in discretionary spending.

2.  Armed with coupons and hunting for sales

-  54.1% of consumers will shop with sales, while 30.9% will go online to comparison shop.

-  Don’t overlook FSIs and retailer flyers, as 28.1% will have newspapers and circulars as their resources for best deals.

-  Social spaces (Facebook, Twitter) will also be used to find special offers, in-store event information, and promotions.

-  And clip, clip (or copy, paste)…40.6% of consumers will be using coupons.

3.  Going online to buy, buy, buy

-  According to eMarketer, eCommerce is expected to grow 13.7% this year as consumers seek shopping convenience, selection, and better deals on the Web.

4.  Expecting the best of everything

-  Although price ranks highest in most motivating purchasing factors, quality and customer service are two areas that have grown in consumers’ priorities over the past year.

5.  Giving gift cards

-  Consumers want convenience and flexibility with gift cards as the most requested gift item.  But true to tradition, clothing and books rank second and third.

6.  Using smart phones for smart shopping

-  26.8% of adults plan on using their phones to either research or make holiday purchases this season.

7.  Not being shy about “a gift for you…a gift for me…”

-  57.1% of consumers will take advantage of the season to make purchases for themselves.

-  On average, today’s consumers will spend $107.50 on themselves!  Happy holidays to ME!

So for brands that still have time to squeeze in a last-minute, extra holiday push, or even for brands that have already planned out 2010, what does all this mean?

It paints a picture of a consumer willing to spend a little more than in years past.  Indeed, wallets are opening.  But your shopper is expecting good offers.  Seeking impeccable customer service.  Looking for convenience—in product choices and in how they find these selections.  And shoppers are fulfilling a need to please themselves. With an ever-present “what’s in it for me,” to give them permission to indulge a little.  Also, don’t overlook the power of mobile.  This year is just the beginning of smart-phone-armed, app-using, barcode-scanning consumer purchase behavior.

It’s not too soon to make that list and check it twice.  A new year and a new budget will be here sooner than you think!

In August this year it hit the 1 million subscriber mark for its YouTube channel, with individual videos receiving view tallies well over 20 million each.

It made the current Bloomberg Business Week “Popularity Issue” as the Top Web Series. And it was recently discovered by my family during our annual beach vacation. Ugh! Why the ugh? It’s the Annoying Orange.

And it’s exactly that. Annoying Orange is the wisecracking, purposely irritating punster who stars in his own YouTube web series.

The videos feature a real orange with superimposed human eyes and lips.  The plot line for each video is simple: Annoying Orange meets his episode’s co-star(s): another fruit, vegetable, object, or even other YouTube “celebs.”  Annoying Orange tells jokes, laughs a lot, makes fun of and annoys the co-star, who ends up being eliminated, whether it’s by knife (the demise of most fruits and veggies), or by some other physical comedy.

Having had to listen to and/or watch the videos again and again during my vacation, and looking to make lemons out of lemonade (or orange juice out of oranges), the videos got me thinking about what’s making this series so amazingly popular, and what marketers can learn from it in attracting an audience.

It’s simple, basic, and consistently updated – Seriously, no big budgets here.  It’s just a talking orange with a little bit of editing magic and other household props.  The plot lines are mindless, easy for anyone of any age to get, and pure shtick.  And the videos are refreshed every Friday – a good reason to subscribe and/or return to the site.

It’s quick – The videos are less than three minutes each.  No attention span needed.  A great video “snack” for anyone surfing through YouTube. It’s appropriate for the channel – According to eMarketer, videos shot by consumers and uploaded to YouTube (i.e., user generated) are the most frequently watched type of online video.  (May 2010 stat)

It leverages partners – A few of the videos feature other YouTube “celebs” as the targets of Annoying Orange’s antics.  At the end, you can click and go to these stars’ specific YouTube channels.  It’s an interesting means of cross-selling these “brands” within the YouTube community.

It has lots of engagement opportunities – The Annoying Orange YouTube channel features, and each of the videos end with, lots and lots of engagement opportunities.  Calls to action include: follow on Twitter, Facebook, answer a question relevant to the video in the comments section, buy a shirt, download a ringtone, subscribe to the channel, or just click to watch another episode.  Annoying Orange truly is its own brand looking for ongoing loyalty.

Now, I’m not suggesting that marketers use third-grade boy level jokes, bodily function noises, nor any type of produce in their creative approaches in order to achieve success.  Rather, Annoying Orange is an interesting case in how to deliver content and sell a brand, without letting a consumer know that you’re really selling a brand.  It’s the right content, in the proper amount, delivered in the perfect channel, and given support, ongoing attention, and engagement opportunities that make it work.

Interesting to note that despite its popularity, very little has been written about the Annoying Orange.  CNN.com – one of the few press sites that has picked it up – said that the current Nabisco Cheez-Its “Mature Cheese” is probably the closest creative rip-off of the series.

Hey…hey reader.  Hey reader.  Orange you glad I shared these insights?  *rimshot*  Ugh.

A great example of the contradictions in behavior is with food.  Look at the landscape in recent, food headlines and news bytes (no pun intended).  And then take a peek at what’s tantalizing our pallets as trends and recent intros.  The juxtaposition not only demonstrates consumers’ contradictions in choices, but at its core, it reveals consumers’ desire to be surprised, delighted, and to just walk away feeling happy. Check out this “salty and sweet mash-up” of sorts…

Headline: “Food Safety Leaders:  Kraft, Subway, Starbucks to Cut Salt.” Both restaurants and packaged food companies are signing up for the challenge of reducing sodium in their products by 20% over the next five years.

But then there’s:  Bacon cupcakes.  Bacon lip balm.  Bacon marmalade. Bacon vodka. Bacon ice cream.  Bacon bacon.  It’s one of the top food and flavor trends cited for 2010 and if you don’t believe us, just check how two ‘Bacontrepreneurs’ from Bacon Salt grew an enterprise in three years with a $5,000 loan from a 3-year old.

Headline: “For Corn Syrup, the Sweet Talk Gets Harder.”
What started as a narrow movement by proponents of natural and organic foods has morphed into a swell of mainstream opposition.

But then there’s:  The recently revealed, million-dollar winning recipe in this year’s Pillsbury bakeoff:  the Mini Ice-Cream Cookie Cup, which included pre-made refrigerated sugar cookie dough, ice cream, melted chocolate, and raspberry jam.  It won because it was simple and it just tasted good.

Headline:  “Santa Clara Bans Happy Meal Toys.” This proposal is believed to be the first of this type, and would ban the inclusion of a toy in any kids meal with more than 485 calories, 600 mg of salt, or high amounts of sugar or fat.

But then there’s:  KFC’s new Double Down Sandwich.  Two fried chicken filets, two kinds of cheese, and (yes) bacon.  (Apparently, adult consent = OK)

All rational reasons that are making headlines—yet consumers’ emotional sides being fulfilled in trends and new food choices.

As marketers of food and non-food brands we realize that the new normal in spending is driven by careful consideration and prioritization:
•    88% of consumers have taken steps in 2010 to reduce spending overall
•    93% say that their spending has become more strategic

But at the same time, 90% of consumers are seeking small treats for themselves, as well as others, in what they buy.   Why?  Because small treats feel good.  And it’s that “small treats” insight that points us to the emotional connections a brand can bring to the table.  Whether it’s added value, or undeniable proof that only your product can do the job, or a free sample, or stellar customer service, or just a great online experience.   Delivering small treats that satisfy is like a consumer magnet!

Turkey bacon.  I think that’s a good way to visualize the happy medium tempering the rational needs with the emotional wants.  It’ll be our ongoing challenge to find a turkey bacon like balance in every marketing recommendation.

(Source: Coming of Age in the Great Recession: A Grounded Consumer Followup, Carton Donofrio Partners, Context-Based Research Group)

So what’s grabbing consumers’ attention and share of wallet?

•    Known Equities – Line extensions and slight variations in products made consumers feel comfortable with their choices, for example, Campbell’s Select Harvest was #1, selling $201.8 million in better-for-you soup.

•    Feeling Good – Self care is on the rise, as consumers seek product solutions that help them avoid doctors and other professionals. And really, just stay happy!  Feel good new products helped meet this need, through healthy, functional foods such as Green Giant Valley Fresh Steamers frozen veggies or Kellogg’s FiberPlus – which are granola bars with high fiber, multiple vitamins, and antioxidants.  Or just feel-good-fun from products like Dreyer’s/Edy’s Fun Flavors ice creams and sorbets like Double Fudge Brownie, Butter Pecan, and Cookie Dough…(yum!) or Bud Light Lime.

•    Better, Easier, Convenient, More Effective brought to you through Technology – Particularly among non-food, top performers, if a consumer could get and do more thanks to technology, they bought it.  From three-ply toilet paper (Quilted Northern Ultra Plush at #1 in non-foods, $134.8 million) to multi-tasking laundry detergent  (Tide TotalCare) to deodorant that releases as you move (Secret Flawless).

•    Value & Brand Experience – A common theme we’ve all heard again and again is how today’s consumers are seeking best values.  Not just in pricing, but as a total picture of what they’re getting for their money.  Successful new products delivered more than just a solution – they offered extras like recyclable packaging, professional grade formulas, in-home sensory experiences, and highly targeted benefits.

IRI’s entire white paper report is free to download and a worthwhile few minutes of your time.   It shares the lists of pacesetters mentioned and others, as well as rising star products, and trends to watch in 2010.

Whether you’re lucky enough to have a brand new product launch, or just need to infuse a little news into your existing brand, tapping into consumers’ hot buttons and what’s grabbing their basket rings are good places for a brief to begin!

The reality is that things never go as planned. But when you think about it, is that a bad thing? Those shaping the world make a difference by going beyond the expected. They figure out ways to capitalize on the unexpected twists and turns that come their way. They relish in the opportunities that are presented when unexpected things happen and as a result make great strides in the economy, environment, society, etc.

Business owners and entrepreneurs…the best bubble up when they expect the unexpected. They plan for the unexpected. They know that nothing should be taken at face value. And even further, it’s their ability to capitalize on unexpected opportunities that really makes them superstars. Even world-class athletes qualify here. Think about the NFL player who intercepts a pass in midfield–do you think he wasn’t already prepared for what to do should he unexpectedly catch that pass? Maybe the sports analogy isn’t the best when it comes to thoroughly modern intellect, but at least it says the same thing: moving forward by leaps and bounds is about seizing unexpected opportunities and doing something with them.

But beyond expecting the unexpected, what about doing the unexpected? There is real power there. From a very positive and uplifting point of view, you can make someone’s day by doing something unexpected. You can get someone to laugh by telling an unexpected story. You can surprise someone by giving them something they didn’t know they were getting. You have the power to make someone’s day by unexpectedly telling them you “like that dress” or “you have a nice smile” or “you did a great job.”

Why all this deep thought around the unexpected? We recently launched a fun consumer campaign for our partners at Famous Footwear called Make Today Unexpected. And while the punchline for the campaign is really about elation and how women feel about shoes, it’s the twist and the unexpected way we tell that story that I think makes it sing.

The power of the unexpected.

Find an unexpected way to make someone’s day. Expect the unexpected or you won’t find it.

Recently comScore reported that in April 09, U.S. Internet users viewed 16.8 billion online videos.  Nearly 152 million folks watched an average of 111 videos, and an average online viewer watched 6.4 hours of video.  The age of online video viewers trends slightly younger, however, viewership by Generation X and older boomers are at no small scale.

That’s a lot of folks watching videos online.  And every minute there’s around 20 hours of new videos being uploaded to YouTube.  However, videos that generate millions of views overnight are few and far between—especially those uploaded to support a marketing agenda (e.g., commercials or promotional videos created by companies to promote their brands).

Here are some basic, yet essential, guidelines for online video success that we use to provide results for our clients.

1. Take a Long-Term Perspective:  While it is true that some online videos became an overnight sensation (e.g., Susan Boyle), the reality for most is that building an audience takes time—weeks, months and perhaps even years.  Keep in mind that unlike running a TV commercial where your ad/message disappears after your schedule runs out, online video has a potential to be active for years, accumulating viewers all along the way.  Therefore, creating content that has long-term relevance is key, which brings us to our second point.
2. Content is King:  Don’t just put a TV ad online (unless you have an incredible, one-of-kind commercial).  Create a short, entertaining message through a good story (e.g., humor, heartfelt tales, did you know, can you believe this, etc.).  People love to be surprised and everyone enjoys a good laugh.  Just as laughter works, so do tears, joy, compassion and a poignant moment.  The key is offering the viewer some quick entertainment that will engage them to respond, further investigate and/or share with their network.
3. Plan Your Work and Work Your Plan:  Just like you would with a TV commercial, incorporate a strategic plan behind your online video. Don’t just count on people stumbling onto it.  Remember that your new video has a shelf life of 48 hours before it’s moved from the Daily Most Viewed list to the Weekly Most Viewed list on most video sharing sites, so it’s important to share and spread the video quickly.  Some basic tactics that should be included into the online video launch include sharing and posting on social networking sites (e.g., Facebook, Twitter, MySpace), reaching out to bloggers and sending out email invites to your circle of contacts.
4. Engage with Your Viewers: Some of the most successful videos are those that are able to solicit comments and start discussions with their viewers.  According to Tim Street, creator of French Maid TV, in order to get your video to a higher plane, “It needs to interact with the viewer, and allow the viewer to interact with the characters or the creators.” Comments are a great way to hear feedback and receive ideas for future initiatives.  Keep in mind that comments may not always be positive, but they present the opportunity to connect with your audience one-on-one.  Therefore, make sure to properly monitor the social web sphere across all chatters on your video and brand.

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The grim destiny of brands/companies we know so well is unavoidable, as their downfall has stemmed from a variety of areas (lack of innovation and reluctance to change applying to many of them).  But while many will fail, many more will survive and come out even stronger.  It all depends on what we do along the way — including some key strategies for surviving and thriving in today’s business.  Starting this week, we will highlight each one.

Part 1:  Adapt to the Changes.
Know your current and emerging customers — their needs may have changed because of the downturn. Your service offerings, messaging and brand experience may also need to change in order to properly connect with them.

A fine example of adapting to change is Home Depot’s current focus on catering more to the everyday homebody/do-it-yourselfer to offset the decrease in the stream of builders and contractors. Here’s a selected list of marketing/sales efforts they are implementing to energize their business, as covered by Mercury News.

1. Power Hours between 10 a.m. and 2 p.m., Monday through Friday, when sales associates are placed at the end of each aisle to assist customers who shop during their lunch hour.
2. Ladies Night Out classes geared to women with a common interest. At the store located at The Plant in San Jose, for example, female customers buying expensive tile wanted lessons on installing it themselves.
3. Free Weekend Clinics for Kids on how to build age-appropriate toolboxes, planters, derby cars and other projects, materials included.
4. Do-It-Yourself Workshops where homeowners are taught how to repair screens, paint, install plumbing and other tasks usually done by pros.
5. A Garden Club customers can join for access to master gardeners, project ideas, coupons and a buying guide for anything related to gardening.

So, what are you doing to adapt to the changes?  Share them with us.

I’m a firm believer that challenges open doors to opportunities, and opportunities bring innovation with possibilities to further advance and emerge as a leader – as many brands did during the Great Depression.

As eMarketer CEO/co-founder Geoff Ramsey puts it, “Consumers are still consuming.” They are still out there, looking for deals and recommendations to make product choices. They are relying on all available resources to find what is right for them. For marketers, the good news is there are more options than ever to make a connection with customers.

Below is a compendium to Geoff Ramsey’s presentation at the Fuel for Thought event in November. It’s based on his recent whitepaper Digital Marketing Now: Seven Strategies for Surviving the Downturn that is available for free at eMarketer.

That’s it for today.   I hope we sparked some new ideas and look forward to seeing your test programs in market.