OUR EXPERTISE:

America Rising for Breakfast

By Jason Stemm @NYCubsFan

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Breakfast is back! Our mothers always told us it was the most important meal of the day, and it looks like we are finally starting to catch on. Whether it is for weight management, health, energy or alertness, more Americans are eating breakfast. Still, however, less than half of Americans are eating breakfast every day. It is by far the most frequently skipped meal, often due to lack of time or energy to clip_image004prepare anything. This need for convenience has driven many of the trends. For instance, an NPD study found that 43% of morning meals consist only of a beverage. This goes beyond coffee, and relates to several areas where growth has occurred.

Health Kick: A large driver at breakfast has been increased awareness of the risks of skipping meals, particularly for weight management. It is not surprising to see people return to nature’s original on-the-go food, fruit. Grabbing an apple or banana on your way out the door is an easy, way to start the day, without having to give up any sleep time. And finding just a few minutes in the morning to make a smoothie provides the chance to round out your fruit-filled breakfast with dairy and protein all in one glass. Even McDonald’s is realizing this trend moving from pancake breakfast sandwiches and introducing oatmeal and fruit.

Breakfast on the Go: According to a study from Mintel, more than half of all breakfasts consumed away from home are from fast food restaurants. It is no wonder Subway entered this space, and likely that we will see other major players extend hours into the early day part. Food processors and drink makers are clip_image006also jumping in the convenience game. From power bars and waffle breakfast sandwiches to smoothies and fortified energy drinks, the new items entering this space are staggering.

Second Breakfast: It’s not just for hobbits. More people are splitting the morning meal. It may start with coffee and a bowl of cereal at home, followed up by a yogurt or muffin mid-morning to carry us until lunch. It can be a good solution for the time starved to keep their body fueled throughout the morning.

Global Inspiration: Our appetite for ethnic flavors has extended into breakfast. Despite the notion that breakfast is the one meal where people are willing to eat the same thing every day, a more adventurous spirit is driving much of this growth. A menu survey we conducted with Datassentials showed that over half of the top 10 dishes seeing growth on restaurant menus have worldly roots, including tacos, crepes and frittatas. Perhaps it is the universal use of eggs in many cultures that helps provide a familiar and popular base for many ethnic dishes, or just an extension of our cultural discover through food, but even Taco Bell is seizing the breakfast craze.

Morning KISS: Keep It Simple Stupid! Weekday breakfast often don’t allow for much prep time, so finding easy ways to get a healthy start is key, and there is no shortage of groups willing to lend a hand. The International Food Information Council has some great tips. We have embarked on a breakfast initiative with our client, avocados from Mexico, providing solutions as simple as avocado spread over whole wheat toast or a two-ingredient avocado pineapple smoothie. America’s Milk Processors have launched The Breakfast Project and the American Egg Board is leveraging another trend, breakfast all day.

For many years I was a serial breakfast skipper. Despite my mother’s advice, I could go until 1 or 2 PM without eating. It never seemed to bother me, but also never seemed to be a good idea. It just wasn’t important enough for me to make the effort. It was really the birth of my daughter that turned me back onto breakfast. I wouldn’t dream of not making sure she had a complete meal each morning and started to realize that this may be a good idea for me as well. With her early wake-up call, time is usually not an issue, though my energy level in the AM does make me want to keep things easy and cleanup minimal. I often have a stash of bananas and granola bars at my desk to enjoy a mid-morning boost, and keep a variety of items on hand at home for quick assembly such as yogurt, fruit and bread.

What did you have for breakfast today, or more importantly, what will you plan to have tomorrow?

Photo Sources: Avocados From Mexico

The NPD Group/Morning MealScape 2011

The US Highbush Blueberry Council

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To Redesign or Not to Redesign: What’s next for your website?

By April Sciacchitano (@aprilcs)

Many marketing professionals have done it.  They go through the process of website redesign only to start anew within 18 months. The web changes fast, which means it’s important to stay on top of trends between redesigns. And there’s good news for the web-weary: You can limit your “overhauls” by evolving your website on an ongoing basis.

With all the stakeholders who have an interest in your website, from employees to board members to customers, it’s easy to understand why making frequent, smaller updates is tough to do. But ultimately, these will help you avoid the ire of redesign resistors, like the ones Bitly encountered this week, and you will be more agile when it comes to collecting and responding to feedback.  Here are a few things to consider:

  1. Keep a good foundation.  Barring an upheaval related to what your company does, a good site map and content management system (CMS) shouldn’t change. A homepage update is the curb appeal of your house.  Changing your CMS or site map is ripping out the plumbing – those changes are only appropriate when the back-end is difficult to use or problematic for good SEO.  Make important upgrades, and assess the back-end of your site to ensure it’s search engine friendly.
  2. Make your homepage a playground.  Sometimes redesigns happen because your site got boring.  You can try new things without blowing up your template. But isn’t that shiny object syndrome?  It can be.  Be wary of apps that don’t have a use in the long-term or new content formats you can’t maintain.  That doesn’t mean you should write off every suggestion that begins “Wouldn’t it be cool if…”  Set up a quarterly meeting for internal and external people to bring a few ideas to the table to update the homepage. When designers, developers, social media and marketing pros collaborate, they can weed out the shiny objects from really good ideas. 
  3. IN with new content formats.  BlogTalk radio? Tumblr?  Integrate your social functions to keep your homepage fresh.  Keep in mind that your homepage real estate can only accommodate so much – when you cycle in something new, move something else out.  Otherwise your homepage and design will be overwhelmed.
  4. Go through usability testing.  Usability testing takes the guesswork about what you should do next with your website. Can you stakeholders find a specific product?  Does it take them too long to find an email address?  The answers to these questions will help you build a site that is useful and meaningful to customers, instead of a replica of your internal organizational structure.

Finally, redesigns are a normal part of every website’s lifecycle, so recognize when it is in order. If your content management system isn’t user-friendly or if your homepage is static, a fresh start is be what you need – but in the process, make sure the site is one you can grow for a few years.

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R U RTD? 3 Marketing Lessons for the Ready-to-Drink Market

THE BOOZE BIN

By Laura Petrosky (@aushunmon)

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During a recent trip to New Orleans, I stopped by the famous Hotel Monteleone and its Carousel Bar, a worshipped destination amongst cocktail enthusiasts. After browsing through a dozen pages of delicious cocktail concoctions, I ordered a Ramos Gin Fizz and watched the bartender as he beat an egg white, squeezed a lemon and a lime, combined gin, simple syrup, orange flower water, vanilla and half and half, before shaking everything vigorously and topping it off with club soda. It was A-M-A-Z-I-N-G.

 

Back home, I visited my local liquor store to pick up a bottle of vodka when my gaze fell on a big bottle of Bacardi “Classic Cocktails Hand Shaken Daiquiri,” a ready-to-serve bottled cocktail on sale. Curious, I browsed the store for other pre-made cocktails, and found plenty: Pre-bottled Mai Thais, Hurricanes, Zombies and Pina Coladas from Bacardi, Mojitos from Parrot Bay and Smirnoff, Margaritas from TGI Friday’s and Jose Cuervo, and Sangrias and White Cranberry Cosmos from Skinny Girl. Did I miss a memo that mixing your own drinks is over? Apparently, I did. 

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Bottled cocktails represent a market of approximately 50 million cases per year, according to Beverage Dynamics. There are two distinctive types of products in this market. “Ready to drink” products represent 43 million cases and are single-serve, malt-based brands such as Smirnoff Ice and Mike’s Hard Lemonade. “Ready to serve” products are spirits-based and packaged for multiple-servings, such as Bacardi Classic Cocktails or TGI Friday’s Margaritas, and make up 6.5 million cases per year. The Margarita is by the far the best-selling bottled cocktail in the U.S., followed by the Cosmopolitan. The average consumer is female and between 25 and 40 years old.

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 The slogan for Margaritaville cocktails, “Make Friends, Not Drinks,” neatly sums up the appeal of pre-made cocktails: Convenience. This is particularly helpful for anyone to prepare at home difficult cocktails like Margaritas, Daiquiris or Long Island Ice Teas that require a lot of ingredients. The reasons why beverage brands love bottled cocktails are easy to guess: Not only does it give them an opportunity to showcase the versatility and mixability of a certain spirit, but it also ensures the integrity and quality of the cocktail. With a premade product, you don’t have to worry about the skills or costly ingredients of a bartender.

 Cocktail party

 Looking into the “ready to serve” product industry, I made some notes on how brands were making their product successful. Here are three marketing tips for the “drinks on the go” market:

  • Premium is King: Sales show that consumers are seeking out bottled cocktails from higher-end brands with higher-end ingredients. While their cocktails are not made-to-order, they still expect products that come close to “live cocktails.” Emphasize high-quality ingredients in your marketing materials. If you are an on-premise business, explore making your own small-batch bottled cocktails or experiment with cocktails on tap to ensure consistent quality of your business’ signature cocktails.

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  • Year-round Appeal: Invest in a cocktail that doesn’t hold its only appeal during the summer months or winter holiday season, but will stay interesting for consumers during the “off-months.” Make sure you follow a holistic marketing approach. If you are launching a bottled Cosmopolitan product, don’t forget to invest in an on-premise push for the same cocktail.
  • Innovate, innovate, innovate: According to industry experts, one of the defining characteristics of the prepared-cocktail market is that new products are always introduced. Innovation and newness are vital for success in this market, so watch out for sustainable trends. Whether it’s a new flavor (remember the sweet tea trend?), packaging innovation (quick-chill squeezable pouches are the latest craze) or completely new product entry, marketers in the bottled cocktails business have to constantly be on their toes for new trends that promise to last for at least another season. On the heels of Skinny Girl, Bacardi just introduced its first low-calorie line.

I am not sure who has the time to make a Ramos Gin Fizz on a daily basis, so I’m willing to consider a bottled cocktail every once in a while. But as an amateur bartender, I am not quite ready to retire my cocktail shaker for good. I’ll go for a happy medium of hand-shaken and pre-bottled! What about you?

 Photo credits: Men’s Health, Food & Wine, Tahoe Bowl, Dello Stritto.

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Brands That Are Great by Choice

Measured Innovation, Productive Paranoia and the Twenty Mile March

by Lisa Kersey

Great by Choice Book Cover

At the recent Forum for Healthcare Strategists conference in Orlando, I had the opportunity to hear from Morten Hansen, co-author of Great by Choice. He described the key attributes of leaders who were able to lead companies in some of our country’s most volatile industries to succeed when others failed. It’s no surprise that healthcare was one of those industries.

However, most of the company examples he shared came from outside the health sector –including Southwest Airlines, Microsoft and Progressive. As hospitals and health systems continue to dig deep for new business models and practices to position themselves to succeed in this unprecedented season of reform, they would do well to continue looking outside their industry when it comes to best practices. The following are just a few of the “great by choice” attributes as I would apply them to healthcare and how these attributes can provide passage from volatility to prosperity.

Collins & Hansen found that great organizations include innovation as part of their recipe for success, but that too much innovation is actually detrimental. While healthcare providers must embrace communication changes such as social media and other tools outside of their healthcare comfort zones, a Facebook campaign or creation of a blog is not the answer to every problem. Truly great companies evolve their strategy by revising selected elements, while keeping most of their practices intact. For healthcare, that suggests there is still value in an appropriate application of more traditional forms of marketing and public relations, such as press releases, grassroots advocacy and media relations. The key is not to replace every tactic. Instead, selectively test new applications, then proactively align and integrate successful innovative elements with your tried and true tactics. This approach results in measured innovation that will yield success in uncertain times.

Another mark of great leaders is a practice Collins & Hansen call “productive paranoia.”  PR and marketing professionals need to keep one step ahead when it comes to changes in the industry and being market competitive – but don’t think you have to carry that weight alone. Become bridge builders within your organizations. Whether it’s being aware of increased transparency with cost and quality data; employee unrest and union legislation; physician dissatisfaction with access to care for their patients; service lines offering new technology, services, and unique procedures; or, understanding how demographic and economic factors might impact your service area – make sure you are in the relationship business. This will lead to productive paranoia versus reactive paranoia, which results in a waste of talent, time and money.

According to the research, Hansen explained that great organizations placed an upper boundary on their growth goals –even when the market suggested that the “world was their oyster.” Similarly, they demanded achievement of the lower boundary growth goals, regardless of market dynamics. As healthcare marketers, we are often asked to be all things to all people – to promote a program that doesn’t have adequate capacity to meet expectations; to promote every service line equally, diluting results for all services; to reactively market a particular procedure or program because your biggest competitor just advertised theirs. I have three words for you: Don’t do it! Building brand is not a sprint but a marathon; or what Collins and Hansen would refer to as the Twenty Mile March.

Sure, sometimes you will have to grease the squeaky wheel, but 95 percent of the time, stick to your strategy. Put your strategy in writing and share it with your executive team on a regular basis.  Share your successes and milestones achieved to help limit reactivity and what I call “Jackson Pollock marketing.” The more purposeful you can be about your strategy and activities, the more poised you are to choose greatness for your organization. Are you ready to lead your organization through the Twenty Mile March of healthcare reform? 

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Schmoozin and Boozin: Summer Food Festivals

By Cassandra Bianco (@cnbianco)

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Last weekend I noshed my way through The Great Googa Mooga. I was looking forward to it all week. I was mostly giddy about seeing Hall & Oates perform (for free)… and knew the weather was going to be glorious.

There has been much discussion of how Googa’s great vision was poorly executed. But as Lauren Bloomberg from The Village Voice points out, if everyone just expected this going in, because it was a first effort, then there wouldn’t be a letdown. Being an event producer, I have a few words to say.

The wine pavilion was pretty dandy. Googa’s great lineup of booze vendors was maybe even comparable to the seamlessly run FOOD & WINE in Aspen. Since participating in Aspen last summer for our Vibrant Rioja client, I will continue to put F&W’s event on a pedestal, until charmed by one that’s better. Is that possible? Probably not. F&W has perfected the run of show and goin’ strong for 30 years.

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In addition to flawless organization and securing the industry’s chief talent, there a few other factors as to why F&W’s Aspen Classic is spectacular:

FOOD & WINE Aspen Classic’s Top 5 Aspirational Factors for Food Festival Producers:

· Seriously amazing scenery. It is breathtaking. For real. You look up at mountains from the valley, and you lose breath. For a few years I lived in Provence during my childhood, and Aspen reminded me that when your surroundings are incredible, you can’t help but be happy all-day-long. And in Aspen, you have awesome dreams at night, probably due to lack of oxygen.

· Exclusivity. This is the town’s event of the year, so everyone is (beyond) psyched for it. But, would you pay $1200 a head + travel + hotel? This consumer audience involves a wealthier demographic, that doesn’t frequent F&B industry events on a regular basis.

· Enthusiastic volunteers: they are crazy fit and fun. I have never seen so many healthy, happy people by the hundreds. Oh my lord. And that intense energy is wonderfully infectious.

· Terrific timing: Ski slopes stay open until mid June, and this event marks Aspen’s start of summer. It’s that “last day of class” just can’t wait for it feeling in mass.

· Drinking responsibly is priority. The grand tasting pavilion is not an exhausting 9am-5pm gig for sponsors, but instead two time slots per day. This allows sponsors to recharge and attendees to sober up in between tasting sessions.

In the spirit of Googa-goers not wanting to wait in line for food, I leave you with Hall & Oates “I Can’t Go for That.”

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What can we learn from General Motors pulling $10M ad spend from Facebook?

By Priya Ramesh (@newpr)

facebook-unlike-button1-w400h2691A week before the big Facebook IPO, General Motors (GM) announced that the company was going to pull off its $10M display ad budget from Facebook. GM marketing chief Joel Ewanick told the Wall Street Journal that GM “is definitely reassessing our advertising on Facebook, although the content is effective and important.” GM will continue marketing on Facebook, but its display ads will go away.

Of course this announcement threw all big to small brands in a quandary in terms of re-assessing their Facebook marketing strategy, especially Facebook ads. So I started investigating the “real” reasons why General Motors is unfriending Facebook while its arch rival, Ford Motors claims to be more than happy with their ROI from Facebook ads.

Ford claims to have seen a 104% jump in sales of the Ford Explorer when they switched their Explorer advertising from Super Bowl to Facebook according to Bruce Goldman, Richmond Advertising Network. “Their Fiesta Movement Facebook campaign produced tons of qualified leads for test-drives at dealerships, and the test drives produced an amazingly high conversion rate.”

According to a Forbes report, Ford combined paid advertising and content on Facebook in a “customizer” app for the Mustang, which included sponsored ad of a video on the Facebook logout page. Ford got ONE MILLION views in one day from this display Facebook ad.

So why hasn’t GM reaped similar results? Why is it that Facebook ad strategy works for Ford and not for GM? Is Facebook more focused on user experience than keeping its advertisers happy? GM spends $40 M in total for Facebook marketing and one-fourth of it $10M was being allocated to Facebook ads. That’s a sizeable income for Facebook NOT to make it a priority to meet GM’s advertising needs. But it doesn’t look like Mark Zuckerberg is too alarmed by the GM announcement and will be making any big changes to better serve Facebook advertisers.  So if you are currently invested in Facebook marketing/advertising, here are some key things to keep in mind especially in light of the GM announcement:

  • Facebook ads don’t perform as well as the Google Display Network: As soon as the GM news hit online, Larry Kim, founder of WordStream released a comparative analysis of Facebook ads versus Google ads network. According to WordStream, Facebook has a substantially lower average click through rate (CTR) than Google — 0.051% vs. 0.4%. Why is this? It might have something to do with Facebook’s relatively limited ad formats and targeting options which are key to driving ad relevancy as compared to Google.
  • Facebook’s advertising growth hasn’t kept up with the exponential growth in its user base: While 86% of Facebook’s revenue comes from advertising, brands are yet to see more tangible ROI from Facebook advertising. Part of the problem is the lack of detailed analytics and metrics reporting from Facebook ads. This is another area where Google clearly outweighs Facebook with its industry standard analytics tools to help advertisers measure ad performance against KPI’s and make informed decisions on future ad spend.
  •  Facebook doesn’t offer mobile advertising:  Yeah this is probably what keeps Zuckerberg awake at night. Facebook ads currently don’t show up on smart phones on tablets and as admitted by King of Social Network, Mobile Advertising is a HUGE gap for Facebook right now. With more and more consumers seeking information at the palm of their hands, advertisers need to be able to retarget their messaging based on key-word based searches made via smart phones and tablets. It’s ironic to me that while one of the top engagements via smart phones is to log-in to Facebook, the social network hasn’t re-aligned its product roadmap to help its advertisers target the mobile audience. 
     
  • Facebook’s ad formats are limited compared to Google’s display ad options: Facebook has just two options: the standard Facebook ad (text plus an image) and a relatively new, sponsored stories. This is paltry compared to Google’s display network ad format options: text ads, image ads, flash-based image ads, in-video ads, as well as ads for mobile web and mobile games.
  •  Facebook advertising MINUS creative content strategy:  According to sources at Ford, part of GM not realizing any ROI out of their $10M ad budget is the fact they failed to combine their advertising with a creative content strategy. The Ford and GM automotive wars are somewhat similar to the ongoing Coke-Pepsi, A&T-Verizon brand wars but I do think Ford has a valid point in that GM’s campaigns lack creativity and smart engagement tactics which has become the hallmark of Ford’s social media campaigns. Must read the Business Insider srticle on Ford: GM’s Facebook Ads Don’t Work because GM Sucks – Ours Work Fine.  
     
  •  Too many cooks in the Facebook kitchen can result to no returns: During the speculations and analysis posts that followed GM’s Facebook ad announcement, GM did admit to letting too many vendors share the Facebook sandbox. While its common to partner with multiple agencies when you are servicing a global brand, let’s be honest, when did we ever get anything accomplished when there are too many agencies and vendors whit conflicting philosophies trying to make sense of an emerging ad platform like Facebook? Yeah, I can see your eyebrows rise up. Dear Mr. Client, please do us a favor, pick one or a few agencies that have actually demonstrated results with Facebook advertising and let them lead the charge and hold them accountable for your Facebook ad spend instead of letting too many amounting to too little with your budget.

Now, I wouldn’t let the GM announcement throw you off the Facebook path, remember, it is still a growing network connecting 901 million active users (defined as people logging in at least once a day) across the globe BUT yes definitely re-think your ad strategy with Facebook especially if you are seeing good results from the Google Display Network.

Here are some additional reads on how to best invest in Facebook marketing efforts:

http://www.huffingtonpost.com/2012/05/16/facebook-advertising_n_1522849.html?ref=facebook

http://www.crttbuzzbin.com/2012/03/12/new-changes-with-facebook-timeline-for-brands/

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Why Number One Rankings in Google are Essential

By Jason Poulos (@TheSaganaki)

Answer: Sites Ranked 1-4 in Google have the highest probability of getting clicked

The top 4 organic rankings in Google garner almost 2/3’s of all clicks.

#1 Result in Google = 36.4% Click through Rate
#2 Result in Google = 12.5% Click through Rate
#3 Result in Google = 9.5% Click through Rate
#4 Result in Google = 7.9% Click through Rate

Why do the top 4 spots get all the clicks?

Users look towards the top of the page.

This eye tracking study performed on a Google search results page shows that most eye movement is concentrated towards the top of the page. The most relevant search results are ranked highest on the search results page therefore these results contain the most bolded terms. When a user see’s these bolded terms they act as a signal of relevancy and their eye moves towards the top of the page.

Top rankings are “above the fold.”

Essentially you don’t have to scroll to see the top 4 rankings. With these rankings right in your face on just about every laptop, desktop or tablet it’s no surprise that they have the highest click through rate. However, as we think about search results on a mobile phone it’s even more important to have strong rankings as only 2 results are shown due to the smaller screen.

Auto complete keeps you up top.

With the ability to modify a search query in real time some Google users are relying on Google’s auto complete functionality to find what they are looking for. Using the auto complete functionality to find content keeps users at the top of the page which in turn limits their visible results to the top 5 or so.

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The Truth about the Cost of Eating Healthy

By Jason Stemm @NYCubsFan

clip_image002Two studies released this week examining the cost of healthy foods show the gap between perception and reality. ShopSmart magazine conducted a national poll of women about eating healthy. What they found is that 88% make excuses for not eating healthful foods, with cost (57%) topping the list. Then just yesterday, the USDA released a study that “found that most fruits, vegetables and other healthy foods cost less than foods high in fat, sugar and salt.”

I’ve discussed the importance of nutrition and health cost to the U.S. economy before, but what struck me with these two studies is the chasm between perception and reality. Sometimes it is a matter of how we frame that reality, which provides health communicators with a teaching moment. Doctors, RD’s, nutritionists and marketers all have an opportunity to explain not only the immediate economics of eating healthful foods, but also the long term impact on health costs, happiness and overall wellness. Further, healthy people are more productive, leading more companies to invest in wellness programs. Despite all these efforts, the number of obese adult Americans is expected to increase 20% by 2030 to a whopping 42% of the nation.

Framing the conversation not around total calories (which most of us get too many of anyway) but rather portion size, weight and nutrients changes the equation. No longer is the donut a better value than an apple, or the soda a better deal than milk. Margo Wootan of the Center for Science in the Public Interest summed it up:

"If they buy a bag of chips for $2, they think it’s a good deal, but if they buy a bag of apples for $2, they think it’s a lot. We need to do more to help people understand that fruits and vegetables are not as expensive as they think they are."

Representing a variety of clients with strong nutrition messages and having two RD’s on staff, we are regularly working with health communicators to empower them with information and resources to help educate consumers. When I started here 13 years ago, we were developing primers to help dietitians talk about these new things called antioxidants and helping them explain what a carotenoid is and why it is important. Today we’re sharing exciting new clinical research on health benefits of avocados and the importance of MUFA’s (monounsaturated fatty acids). It has required a lot of effort and consistent communication at multiple levels, but our clients have seen consumption more than double in the past 10 years.

Others are doing amazing things to help educate people on both the importance of eating healthy, and how to do it. Share our Strength has a great program, Shopping Matters, which helps low income families navigate the store to find healthy, affordable foods. You can be a volunteer and get involved. It is easy and rewarding.

clip_image004Jamie Oliver has been passionate about getting people to eat more healthful and real foods, and this Saturday is holding the first ever Food Revolution Day. His work in schools has been highly visible, showing them that they can serve affordable, healthy meals, but May 19, there will be 500 events taking place in over 300 cities spread over 33 countries. It underscores that this is a global issue, with worldwide obesity more than doubling since 1980. Find an event near you and check it out.

The truth is healthy eating is a choice we make each day that impacts the rest of our lives and those around us. My mother used to say, you only have one body so take care of it. In today’s consumer world where we get a new car every few years or a new jacket each spring, the idea of taking care of something for a lifetime of use is lost. It is much easier to buy some IKEA furniture and leave it when you move rather than taking a second generation oak chest that has a few nicks from decades of use. So eat a banana and brush your teeth. Your future self will thank you for it later.

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Tax-Exempt Status Under Attack for Hospitals – How to Protect Yourself

Knight

By Kim Blake (@kimkblake)

President John F. Kennedy once said, “For of those to whom much is given, much is required.”  With increased scrutiny on their community benefit provided, not-for-profit hospitals are well aware of this expectation. 

The IRS has required since 1969 that not-for-profit hospitals demonstrate that they provide a community benefit.  This may include charity care, health education, screenings and activities that benefit the greater good.  But there’s a catch: community benefit is a subjective term in the 36 states that do not have community benefit requirements in statutes or regulations.   When a not-for-profit hospital’s tax-exempt status is challenged, the burden of proof is on the hospital, not the local authority.

Hospitals know what’s at stake. The Joint Committee on Taxation estimated that in 2002, the value of exemption for not-for-profit hospitals and their supporting organizations totaled $2.5 billion in federal income tax, $500 million in state corporate income tax, $2.8 billion in state and local sales taxes, and $3.1 billion in local property tax. (Congressional Budget Office, Nonprofit Hospitals and Tax Arbitrage. Washington, D.C.: December 2006).  

Hospitals have been on high alert since 2008, when Iowa Senator Chuck Grassley launched an investigation of the value of not-for-profit hospital community benefit.  Even more recently, hospitals in states without community benefit requirements such as Georgia and North Carolina have been affected.    

Battle for your mindWhat can hospitals do when tax-exemption status is often subjective? It’s all about the battle for your mind.  What single, unique, ownable thought is associated with a hospital?  Is it a “corporate monster” or a “community partner”?  The community is far more likely to defend the latter than the former. 

That’s when a strong brand protects you. Not unlike a bank account, hospitals must build up community goodwill in the event that they have to deplete that “bank of goodwill” during a crisis such as the challenge of their tax-exempt status.

There are direct and indirect approaches to building a brand that speak to your community commitment.  Some just come out and say it – for instance, Norfolk, Va.-based Sentara Healthcare describes itself as “Your community, not-for-profit health partner.”  Alternatively, Valley Health, a six-hospital health system based in Winchester, Va., articulated its brand through a video aimed at educating internal audiences about how the community and Valley Health are, in fact, “Healthier, together.”  No matter the approach, the goal is to forge deep relationships with the communities they serve and clearly demonstrate their value before it is called into question.

What steps should a hospital take to develop and communicate a brand that is relevant to its community? 

  1. Gauge perceptions internally and externally to see where you have permission to go.  Corporate MonsterAre you the “corporate monster,” the “community partner,” or something in-between?  Conduct interviews with a representative sample of stakeholders, from physicians to clinical staff to board members and community leaders, and find out.  These interviews are best conducted by a third party to ensure honest feedback.  
  2. Get all the facts straight.  Most rural hospitals are the largest employers in their communities, providing a substantial benefit.  An economic impact study can help reveal the broader impact that a hospital has on the community it serves. 
  3. Utilize findings to develop a relevant brand.  If you are the “corporate monster,” how can you believably own “community partner”?  Identify how to bridge the gap between where you currently stand and where you want to be.  Look at proof points from community benefit reporting and interviews to determine how you can articulate your hospital’s value in a way that is relevant to the community.   
  4. Own an issue.  As of March 2012, non-profit hospitals are required to conduct a community health needs assessment every three years.  Turn this mandatory exercise into a program that strengthens your brand.  If lung health is a particular need in your community, create a program that communicates the need, what your hospital is doing to address it and report on results annually. 
  5. Engage brand ambassadors and solicit feedback to create buy-in from “ringleaders.”  Identify internal and external brand ambassadors, from service line directors to city council members and educate and inform them as brand ambassadors.  Communicate regularly to reinforce the three to five key messages that uphold your brand.

The issue of tax exemption is one that is not going away.  While communities want to have excellent care close to home, they see forfeited property taxes as lifeblood for cash-strapped cities, school districts, parks and libraries.  Hospitals can protect themselves by establishing brands that demonstrate their value to the community and communicate that value both early and often.

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The Best of Booze Memes – LOLz!

THE BOOZE BIN

By, Rosalie Morton (@rosaliemo)

Meme 101

You might not think you know exactly what a meme (pron. MEEM) is… but if you’re reading this blog you do, promise. I think memes are best described through examples. So consider a few of my recent favorites:

-         Angelina Jolie’s leg from the Oscar’s

-         What my friends think I do (the PR one is priceless)

-         And of course, Tebowing

If you still want to get formal, according to Wikipedia, a meme is:

- An idea that is propagated through the World Wide Web. The idea may take the form of a hyperlink, video, picture, website, hashtag or just a word or phrase. The meme may spread from person to person via social networks, blogs, direct email, news sources, or other web-based services. An Internet meme may stay the same or may evolve over time, by chance or through commentary, imitations, parody, or by incorporating news accounts about itself.

A good meme is any marketer’s dream. It means your product or campaign goes viral (win!) and tons of people are not only looking at it, but they are:

1)    Interacting with your brand

2)    Making your brand their own

3)    And then… the clincher: they are sharing your brand with their friends.

(A bad meme could mean a crisis… but that’s a different post for another day.)

It’s textbook social media engagement, and it’s precisely why social media is more powerful than traditional media. As your customers interact with your brand, it becomes branded into their minds far deeper than it would through a TV commercial or a billboard.

Memes Behind the Bar

One thing is sure, people love their liquor, so it should come as no surprise that beverage brands and their supporters have had a LOT of fun with memes.

Here are two of my favorites:

The Most Interesting Man in the World – This is a marketer’s dream come true. The Dos Equis team created “The Most Interesting Man in the World” and not only did people love the commercial, it became a meme and went viral on its own. Kudos, Dos Equis. Kudos to you, indeed.

Most interesting man smartphoneMost interesting man G6

Bros Icing Bros - In my opinion, this is the best beverage meme to date. The game is simple. Hide a Smirnoff Ice BROS-ICING-BROS-SMIRNOFF-ICEsomewhere for your friend to stumble upon – his sock drawer or say, the shower. When he finds it, he has to get on one knee and drink it, unless he is already in possession of a Smirnoff Ice. A website developed, bros posted pictures of their best ices. The game became a meme.

Like many memes, the mystery remains… was this a PR ploy by Smirnoff, or just 23-year old Joe’s mode of procrastination. According to a Huffington Post article, Smirnoff denies everything. Support a reckless under-aged drinking game? Of course not! Regardless of their involvement, the urban legend lives on… although brosicingbros.com sadly has been taken down.

The old Smirnoff in a Burrito. Classic!

The old Smirnoff in a Burrito. Classic!

And so, this morning I leave you with the famous Hitler Meme, hijacked by winos, The Downfall of a Cult California Winery

Share your favorite beverage memes, below!

Photos from: http://knowyourmeme.com/

BrosIcingBros.com

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