Under the Influence with Terry O'Reilly - S4E13 - The Marketing Innovations Episode

Episode Date: March 29, 2015

This episode takes a look at the most recent - and interesting - marketing innovations from around the world. From an edible pizza box, to a glove that will play music and take pictures, to rentable office desks, to personal climate controls for airplane seats, to rain that actually smells like brands - the latest marketing innovations are simply unbelievable. Hosted on Acast. See acast.com/privacy for more information.

Hi, it's Terry O'Reilly. As you may know, we've been producing a lot of bonus episodes while under the influences on hiatus. They're called the Beatleology Interviews, where I talk to people who knew the Beatles, work with them, love them, and the authors who write about them. Well, the Beatleology Interviews have become a hit, so we are spinning it out to be a standalone podcast series. You've already heard conversations with people like actors Mark Hamill, Malcolm McDowell, and Beatles confidant Astrid Kershaw. But coming up, I talk to May Pang, who dated John Lennon in the mid-70s. I talk to double fantasy guitarist Earl Slick, Apple Records creative director John Kosh. I'll be talking to Jan Hayworth,

who designed the Sgt. Pepper album cover. Very cool. And I'll talk to singer Dion, who is one of only five people still alive who were on the Sgt. Pepper cover. And two of those people were Beatles. The stories they tell are amazing. So thank you for making this series such a success. And please, do me a favor, follow the Beatleology interviews on your podcast app. You don't even have to be a huge Beatles fan, you just have to love storytelling.

Subscribe now, and don't miss a single beat. From the Under the Influence digital box set, this episode is from Season 4, 2015. You're so king in it. Scores of it in an instant. Your teeth look whiter than noon, noon, noon. You're not you when you're hungry.

You're a good hand with all the teeth. You're under the influence with Terry O'Reilly. One of the most profitable categories in the world of marketing is pets. The pet supply market is huge and growing every day. The number of dogs in the U.S., for example, exceeds the human population of the U.K. There are over 80 million dogs and close to 100 million cats in North America. And those numbers don't include the 126 million pet rabbits, hamsters, birds, and tropical fish. Money spent on pet supplies has gone from $17 billion in 1994 to over $58 billion in 2014. That includes everything from pet food, toys and medication

to grooming merchandise. With that kind of growth comes innovation. There are now many premium pet foods, organic pet foods and gluten-free pet foods to choose from. There are pet sports nutrition products and products for pets with special dietary needs, allergies, and even sexual issues.

Yes, there is a Viagra-type pill for pets. If your hamster isn't looking particularly happy in that special way, there's a pill for that. Apparently hamsters, guinea pigs, and even rabbits sometimes get the blues when they

can't perform in the bedroom, so to speak. Some small animal experts say hamsters, in particular, can be neglected by their mates. Maybe they feel unattractive and sexually frustrated. The new pills, marketed under the brand name Pheromone, promise to straighten out that problem. Owners are instructed to simply grind the pills up and sprinkle them into the pet's food. Then, let the romance begin.

Welcome to an episode about marketing innovations. Every day, new products and services are developed and marketed to the world. Some of them are kooky, some seem way ahead of their time, and still others are so smart you wonder why someone hasn't thought of them already. From wearable technology to fashion to food to pets, the innovations are simply unbelievable. You're under the influence. One of the big trends arriving in our lives these days is wearable technology. Apple, for example, has recently developed a watch that performs many of the functions of your computer or smartphone.

And now Toshiba has released Digit, its first wearable glove technology. The gloves contain multiple features, not unlike a smartphone. But instead of reaching for your phone, you simply make gestures with your fingers. Want to talk on the phone? Just hold your hand up to your head

with your thumb at your ear and your little finger at your mouth, once the universal hand sign for a telephone, and make a call. Using voice recognition, you can now ask your glove to call home. Want to listen to music? Just put your fingers in your ears and tell the gloves what song you want to hear. Want to take a photo? Just hold your forefinger in front of you, smile,

and squeeze your other fingers quickly to your palm. A commercial from Toshiba began with the line, quote, He who has technology at his fingertips holds the world in his hands. Write the past, Write the future. Grasp, and the future is now. Digits that capture. Digits that captivate. One to ten.

Ten to one. Together they are one. Grasp, and the future is now. Point and you will see. A gesture, and it will be. These hands are to me. Point and you will see. A gesture and it will be. These hands are to me. An evolution, I decree. A revolution it shall be.

Just when we thought smartphones were the future, gestures and fingers are the new new. Introducing Digit by Toshiba. Grasp and the future is now. Digit. But wearable technology isn't just about hands. Twitter has just announced its latest entry into the category. It's called a Twitter Helmet.

Made with an impact-resistant oleophobic treated glass, the Twitter Helmet is a high-resolution wearable device. It lets users tweet with a simple pecking head motion while leaving their hands free. This custom aviary interface will be available later this year at a cost of

$139.99 retail. The world of fashion has given us several innovative products and marketing campaigns recently. American Eagle Outfitters, the clothing retailer that operates over 1,000 stores around the world, has introduced a new division. American Eagle has opened American Beagle, clothing for dogs. We can take this to a whole new level, create individual, cool style for dogs that match back to our brand DNA. To achieve this line,

American Eagle had to recalibrate its thinking. This is an amazing challenge. We had to adjust ourselves massively to think thinking. This is an amazing challenge. We had to adjust ourselves massively to think dog. This is the first line ever that has been specifically designed for you and your dog. The American Beagle dog clothes match the owner's American Eagle clothes. We ended up coming up with about 10 to 15 looks

for the dog line. Pattern, texture, beach meets street. Crop tops, high rises, it's next level. Pattern puff jackets, plaid collars, and colorful leashes. American Beagle Outfitters, puffers for you and your pup. In stores and at AE.com. Contemporary fashions for dogs that match their owners. Who knew? The world of fashion often surprises me. I'll see a new trend that I can't believe exists, yet there always seems to be a market for it. I remember being in New York with one of my daughters once, and she spotted a woman with a bizarre purse that looked like it was made completely of ostrich feathers.

We both shook our heads and kept shopping. A little while later, we walked into a store of a designer my daughter loves, and there on the shelf was the feather purse. My daughter's eyes bounced open. She said she had no idea the purse was created by one of her favorite fashion designers. Then she looked at me and said, Dad, now I want it. The power of a brand. Two minutes before, we both laughed at the purse. Two minutes later, my daughter wants to buy it. Well, I saw a fashion innovation recently that made me shake my head again.

It was from Hunter Boots. One of their classic designs are tall, calf-high rubber boots. The most popular style comes in Hunter Green. And they have an almost equestrian look to them, like a very expensive riding boot. They're mostly worn by women who have never been near a horse. It's just a cool country style worn by women who live in the city. But the hunter boot I was looking at had a new feature. It was open-toed. Yes, an open-toed pair of tall rubber boots. I can't imagine anyone wanting to own a pair.

And my only fear is that my daughter will see it. There are always new products in the food and beverage category. Over the pond in the UK, Domino's Pizza came up with a new idea. Edible pizza boxes. Called the Edibox, it looks just like a regular pizza box complete with a Domino's logo on it, except it's made of dough. So when you're finished eating the pizza, you can nibble on the box. As Domino's said, it's a world-first in snacking innovation.

Research told the company that the crust is the favorite part of a pizza, and the majority of Domino's devotees crave extra crust once they've finished their pizza. The Enabox wasn't easy to develop, as pizza dough is tricky to handle. But the team at Domino's UK figured out a solution. And you can see a photo of it on our website. As Domino's says, it's not only tasty,

it's an eco-friendly, waste-free dining experience. And we'll be right back. If you're looking for flexible workouts, Peloton's got you covered. Summer runs or playoff season meditations, whatever your vibe, If you're looking for flexible workouts, Peloton's got you covered. Summer runs or playoff season meditations, whatever your vibe, Peloton has thousands of classes built to push you.

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with iGaming Ontario. If you're enjoying this episode, why not dip into our archives? Available wherever you download your pods. Go to terryoreilly.ca for a master episode list. Sometimes it's an underserved part of the market. Other times, it's an opportunity that can generate sizable returns. Rosetta Stone is a language learning software system. Students can learn any of 30-plus languages in the comfort of their own homes at their own speed. Recently, Rosetta Stone came out with an unexpected language.

Klingon. Aimed at die-hard Star Trek fans, the software teaches students conversational Klingon, explains Klingon nuances like inflected prefixes and situational suffixes. The software gives feedback via speech recognition technology and offers live conversation sessions with fluent Klingon speakers. Rosetta Stone even hired actor Michael Dorn, who played the Klingon Starfleet Lieutenant Commander Worf, to star in their commercial. So, you wanted to learn a new language but something keeps getting in the way?

Nook-nack. I'm Michael Dorn. I think it's time you discovered Rosetta Stone. Available in over 30 languages, and now for the first time, Klingon. Let's see what Klingon can do for you. If you've ever been to or seen Star Trek conventions, you know how rabid the fans are. And Rosetta Stone found a niche they could own. Today is a good day to learn Klingon. Succeed, or or your money back. Order now. Kapla.

A few weeks ago, we talked about the impact of the sharing economy on the world of marketing. And one of the top sharing sites around the world today is Airbnb. It began as a couch and spare room sharing site and has grown to include homes, castles, and even tree houses. And the online company now has an estimated market value of $10 billion. But now Airbnb has expanded again to include the rental of office desks. The new service is called AirBRB, which stands for Air Be Right Back. If you have an office desk and you know you won't be at it

for short periods of time, you can now rent that desk out to people who only need a desk for short periods of time. Here's how AirBRB explains it in their video. This desk isn't mine, but I'll be sitting here for the next two hours. I booked it on AirBRB. Unlike other Airbnb locations that rent by the night on AirBRB. Unlike other Airbnb locations

that rent by the night, AirBRB rents by the hour. You pay by the hour, so it's more affordable than buying a desk. The owner of this desk will be right back. When looking for a desk to rent,

you simply tap your AirBRB app, look for available desks in your area, and enter your request. Then I enter how long I need the desk. Click on the icon and I'm done. It's as simple as that. Once you've found an available desk, you go to the company, check in at reception,

then just sit at the AirBRB desk and do your work, even though that desk is in the middle of a busy company. If your allotted time runs out and the owner comes back, you can quickly go to the app, find another desk in the area, and do it all over again. You might even make a few new friends along the way.

Simple, easy, and as close as your smartphone. When my friends ask me, is AirBRB really that easy? I just tell them I'll be right back. And yet another aspect of the world falls to the sharing economy. Virgin One of the most innovative companies in the world is Virgin, headed by the charismatic Richard Branson.

Virgin has disrupted many different industries and has at various times branched out to cinemas, colas, radio stations, record labels, record stores, rail transportation, space travel, and of course, airlines. Recently, Virgin America announced a partnership with Nest. Nest is a home automation company. Started by Tony Fadell, an ex-Apple team leader who helped develop the iPod and iPhone, Fadell's new company creates beautiful technology to control a home, like thermostats that learn your routines, smoke and CO alarms that send you alerts when you're away, and discrete home cameras that stream HD video of your home to your computer, phone, or tablet.

Recently, Virgin CEO Branson teamed up with Nest CEO Fidel to unveil a new feature for Virgin America, the total temperature control. Well, I'm a little biased, but I really do believe that Virgin America has reinvented every aspect of flying. Every day, the airline is looking for new ways to give travelers much more control over their experience whilst they're in the air. And today, I'm excited to help announce our newest breakthrough, a partnership with the wonderful company Nest that allows guests to control their own personal climates at 35,000 feet.

Now passengers on Virgin America flights will be able to control their own climate at their own seat with new Nest thermostats. There are a wide range of preset climates to choose from. And it just seems like a no-brainer that each seat should be able to have its own temperature controls. Say you want to feel like you're sitting in a tropical paradise, even though you're probably flying to Newark, New Jersey in December. You could just select Cancun Afternoon on the thermostat

and a ray of sunshine emits from your in-seat TV screen while you're enveloped in tropical warmth. Using highly accurate sensors and a digitally confined climate radius, the temperature changes don't affect your seatmates. Or if you run a little hot, for example, you could just select Chicago Polar Vortex and enjoy a cool breeze through your hair. If you had hair.

Hey, hey. It's a whole new world at 35,000 feet. Total Temperature Control. A partnership between Virgin America and Nest. The digital world accelerates at speeds that are mind-boggling. And the ingenuity is remarkable. The Nest thermostats we just mentioned light up when you approach them. They learn your daily routine so it knows when you usually get up and turns the temperature up. It knows when you usually go to bed, automatically turning the temp down. Or, take Wi-Fi. In this day and age, we expect to be able to go anywhere and upload photos or download videos. But mobile signals don't always live up to our demands.

There are large swaths of geography that still have no internet availability. I was reading recently that companies are considering using drones. Instead of building expensive infrastructure, drones can stay in the air for days and beam Wi-Fi down to the ground at very minimal cost. But listen to this idea. Samsung is developing a next-generation micro-router.

Incredibly small and feather-light, it's remarkably powerful for its tiny size. With this micro-router, Samsung is experimenting with building an astounding innovative network. It's called Fly-Fi.

What many of the world's cities and towns have in common are huge populations of pigeons. So Samsung has developed a way to harness the presence of the birds by attaching a micro-router to their bodies. Samsung's pigeon-powered universal Wi-Fi. If you think about that, it makes perfect sense. They're everywhere. Hooking them up to super-fast Wi-Fi is a logical step. Because the micro-routers are so tiny, the pigeons hardly know they're there.

The micro-router is attached with a small pack, so it causes no discomfort. So as the pigeons fly, super-fast Wi-Fi, or Fly-Fi, is delivered effortlessly to people who had no previous access. But here's the amazing part. Pigeons are natural conductors of electricity because they have hollow bones, so they can recharge the routers when they sit on wires. And when pigeons congregate, as they often do, they offer another benefit. We have learned that if you can get pigeons to congregate,

you get really strong Wi-Fi, like the equivalent of 19 or 20 G-signal. If the pilot project is successful, Samsung says it could go a long way to solving the problem of Internet accessibility everywhere. Samsung Fly-Fi. Possibly coming to a pigeon near you. One of the most innovative techniques in marketing these days

has to do with the sense of smell. As we've discussed before, your sense of smell is different from other senses. It is processed first by the limbic system, the part of the brain responsible for perceptions, memories, and emotions, unlike the other senses, which are filtered by the

analytical parts of the brain. Advertising Age magazine recently stated that customers will spend 40% more time in a retail space scented with a fragrance than they will in an odor-free area. As we mentioned before in our Sense of Persuasion episode, shoppers were willing to pay over $10 more for a pair of shoes that were presented in a lightly scented room than they were in an odor-free room. That's why many retail companies have developed their own scents to enhance a mood, trigger desire, or relax their customers so they'll linger. When you walk into an Abercrombie & Fitch store, for example,

you walk into an energy-filled environment with an exciting scent in the air. If you've ever been to the Wynn Hotel in Las Vegas, you'll notice a subtle yet pleasing flower-like scent. That's because slot machine receipts have increased by as much as 53% in scented areas of casinos. Some grocery stores have the smell of freshly cut grass gently wafting around their dairy coolers

because it makes you think of green pastures and happy cows. So, it shouldn't surprise you to hear that corporations are experimenting with a much broader use of scent. Enter Brand Drops. Developed in Seattle via a partnership between a multinational advertising agency and the scientific community, Brand Drops is being called the world's first branded aromatic rain. First, rain clouds are tracked on weather radar.

Then, planes are dispatched to seed the clouds with a patented aromatic agent, using a chemical process to inject customized scents into water molecules. And when that rain starts to fall in that particular area, pedestrians are immersed in that brand's unique scent, reminding them of a brand, triggering positive associations, and maybe influencing them to seek out the store to shop. The creators of brand drops call the resulting effect, quote, cognitive scent consumption. By distilling the scent of a product into liquid form

and then seeding that into ordinary clouds, we can turn a rainy day into a multi-sensory brand experience. This is truly the next step in biotechnological marketing. The CEO of BrandDrop says the process is environmentally safe and the applications are endless. We can make the rain smell like anything. If you're a fast food company, well we can make the rain smell like anything. If you're a fast food company, well, we can make the rain smell like french fries. If you're a car company, we can give the rain that new car smell.

And if you're a lawnmower company, well, we can make the rain smell like freshly cut grass. And here's the big pitch. By combining elements of atmospheric science, eco-friendly initiatives, and experiential marketing, we can make it rain profits for your company. As the company's marketing video says, they're not just raindrops, they're brand drops. Rain as marketing. It's unbelievable.

Because none of them really exist. They were all April Fool's Day ads. Yep, every year at this time, many brands create elaborate April Fool's ads as part of their annual marketing strategy. It's feel-good advertising, designed to surprise and delight. Every advertiser wants to connect with their customers, make them smile, and hopefully people will transfer those feelings to the brand. And maybe the ads will get a little press along the way. Some of the fake ads are ingenious, like the Toshiba wearable glove technology

or the edible Domino's pizza box. Others seem so plausible, like the climate control button on Virgin Planes and the open-toed Hunter boots. Then there are the so-crazy-it-must-be-true marketing ideas, like brand drops, Wi-Fi pigeons, and even Rosetta Stone Klingon. Oh, and I said that none of these really exist, right? That's not completely true.

When American Eagle created American Beagle as an April Fool's ad, the response was so positive that American Beagle now exists. You can walk down the street sporting the same American Eagle puffer jacket as your dog. But that's the power of marketing.

There might even be profit lurking in an April Fool's Day ad when you're under the influence. I'm Terry O'Reilly. There might even be profit lurking in an April Fool's Day ad. When you're under the influence. I'm Terry O'Reilly. Hey, Terry. Hey Terry, while I was listening to your show today, I ordered a pizza from Domino's. Then I discovered at the end of the show that the box wasn't really edible. That it was all just an April Fool's joke. I don't feel so good.

Under the Influence was recorded at Pirate Toronto. Series producer, Debbie O'Reilly. Sound engineer, Keith Ullman. Theme music by Ari Posner and Ian Lefevre. Um, do you wear clothes when you listen to our show? If so, have we got a t-shirt for you. Go to terryoreilly.ca slash shop. See you next week.