Dierolf's Diary

[its-spinderella-blog]

Hovering out of style.

Are you one of the 3 million people who has seen this video on YouTube? 

If you aren’t, you have now... and I bet you thought about buying one of those light up, rolling things now. They’re called hoverboards and are brand new to the market.

According to an article by CNET, “Riding a hoverboard almost feels like an extension of yourself, and it doesn't require any manual motion, like a skateboard or kick scooter. You can pick up a lot of speed, making them faster than walking. Though they can be expensive, they're smaller and cheaper than a Segway (which costs upward of $5,000), so they're much more accessible to buy, store and use.” Although the hoverboards in the video above were not rode by Justin Bieber himself, the celebrity has been seen riding one in addition to pop stars John Legend and Wiz Khalifa. The item is something that everyone wants these days... but is this “form of transportation” just a fad? I think so - kind of.

According to this 2015 report, there have been many customer complaints of hoverboards combusting or exploding due to faulty batteries. “Hoverboards are powered by large lithium ion batteries that can overheat and explode under rare circumstances (CNET).” The Consumer Product Safety Commission is investigating the safety of all hoverboards across all brands and are trying to understand why these fires continue to occur. 

In addition to explosion hazards, many consumers are being sold counterfeit hoverboards through third party distributors on eBay and Amazon (for example). Consumers are having to purchase the boards directly from the manufacturer(s) to minimize the risk of receiving a fake product.

On top of all of these things, according to a January 2016 report from WSBTV Atlanta, “Doctors in metro Atlanta say they’re treating a number of kids and teens with injuries related to riding hoverboards. These injuries are being treated in emergency rooms and include fractures, strains, sprains, contusions, lacerations, and head injury.”

What’s interesting about this product is that no one knows whether or not it’s popularity will continue for the long-term or if it’s simply a fad. When you compare it to a product innovation failure such as Google Glass, it does not share the same characteristics. Google’s glasses were too expensive, had privacy concerns, and were not fashionable. None of which are shared by the new hoverboard product. Even when you circle back to Justin Bieber and compare the product to an actual human being who rose to fame and failed in the public eye by getting arrested and drinking underage, Bieber rose back from it all and continued his success. 

In my opinion, hoverboards will not share either the Google Glass or Justin Bieber stories, but they will continue their success for the long-term. I do not believe that they will be successful from a transportation perspective but will be utilized as a toy and manufacturers will continue to improve their kinks. Similar to Justin Bieber, I think hoverboards have the “fame” and popularity to continue. Regardless of their negative reputation for being hazardous, consumers continue to buy them. 

It will be interesting to see what is in store for hoverboards. Will consumers hover out of style eventually, or will they continue to hover for the long-term future? I will leave you with words from the future from George Jetson himself: 

George Jetson: Everything, EVERYTHING you bought goes back to the store. Jane Jetson: But George, you said our ship has come in. George Jetson: It sunk. 

[its-spinderella-blog]

Hershey is spreading their success.

It certainly took a long time, but Hershey has done it again. Many years after the creation of their chocolate bar, Hershey’s R&D department has decided to give Nutella a run for their money and make a change as simple as reducing the form of their product down to a spreadable mouthful of glory.

According to a report from PR Newswire, “The Hershey Company (NYSE: HSY) announced it is launching Hershey's Spreads, a new line of chocolate spreads. Inspired by Hershey's pure chocolate flavor, the creamy, rich spreads will be available in three varieties: Chocolate, Chocolate with Almond and Chocolate with Hazelnut.” Per this same article, the company plans on continuing their legacy of bringing their chocolate experience through the introduction of this new product line and guarantees that it will deliver the genuine Hershey’s chocolate flavor to “any food, anytime, anywhere.” In my opinion, this new to firm innovation will be successful for several reasons.

One, Hershey’s is not only the leading chocolate manufacturer in the world, but the company also owns the rights to the 94th most valuable brand name worldwide (Forbes). According to a 2013 article from Businesswire, “The Hershey Company has been a leader in making a positive difference in the communities where its employees live, work and do business. Corporate Social Responsibility is an integral part of the company’s global business strategy, which includes goals and priorities focused on fair and ethical business dealings, environmental stewardship, fostering a desirable workplace for employees, and positively impacting society and local communities.” Over the last 100 years, these attributes are what has made consumer awareness of the Hershey brand rise above and beyond the standard food manufacturer and why consumers will gravitate toward their logo (versus their competitors) on grocery store shelves. Brand awareness will also allow Hershey to offer their product at a higher price than their competitors since their loyalists are willing to pay for the premium quality product that comes with the Hershey name.

Two, Hershey has made their product different than their competitors, such as Nutella, by offering a unique set of flavor options. While Hershey offers three flavors within their spreadable line, Nutella only offers one. In my opinion, if Nutella wants to keep up in the spreadable chocolate market, they will need to consider adding variety flavors onto their chocolate hazelnut jars. Per a 5-star review on Amazon, “Lots of people are nutty for Nutella. No wonder Hershey decided it was time to get in the game. Hershey makes a chocolate hazelnut spread, which would be a more head-to-head competition with Nutella, but I've heard that the spread with almond flavor is the best of Hershey's three new chocolate spreads.” Sounds like Nutella better get their flavor on soon!

Lastly, this product line will allow Hershey to start branching into the snack food industry. Per PR Newswire, "The average American snacks more than two times a day and what better way to transform everyday snacks into delicious treats, than with the genuine chocolate flavor that only Hershey can deliver." American millennial consumers are also starting to focus on healthier food options. Hershey has done a phenomenal job marketing their snack product as a snack enhancer and perfect pair with “traditional selections such as graham crackers, strawberries or bananas, or more adventurous pairings like celery, pineapple or pickles.” Oh the art of perception!

All in all, we should start rounding the applause for Hershey as the company continues to “spread” its success across the world, one mouthful of chocolate at a time.

[its-spinderella-blog]

Bluesmart: “Smart” Luggage

In December 2015, Bluesmart launched it’s first smart suitcase, which allows travelers to know where their suticase is at all times, instantly calculate their luggage weight, view itinerary information, charge their smartphone up to six times and even deactiviate its connectivity features automatically when in flight so it does not interfere with aircraft operations. On top of ALL that, according to the J. Walter Thompson Intelligence website, the US Transportation Security Administration has approved it. 

Aside from all of these awesome benefits that Bluesmart’s luggage introduces, the new product is also offered at a competitive price that frequent travelers are willing to pay for. For example, Macy’s online store currently has carry-on suitcases ranging from $69.99 to nearly $800. Bluesmart’s $399 price, which includes tons of additional smart features now looks very appealing to the carry-on luggage buyer. Additionally, according to a Harvard Business Review article on consumer behavior, consumers will pay more for a single expensive item, such as a piece of luggage, than they will for multiple items that cost less. In my opinion, Bluesmart has not only come up with a spectacular product idea, but they also have positioned themselves properly within their market and have a unique value proposition to offer consumers.

Another Bluesmart bonus is that the brand partners with Uber, one of the biggest ride-sharing companies in the world, to help travelers recover their lost luggage. According to the company’s website, “The partnership will provide lost luggage recovery as a concierge service and allow the companies to pursue their complementary visions of making travel a more seamless process.” An online statistic states that in the United States alone, an average of 1 in 150 people have their checked baggage misdirected or left behind each year. With the purchase of a Bluesmart bag, Uber is there to deliver your delayed baggage right to your front door. This reminds me of the old storybook tale of a stork delivering a precious baby to your doorstep! 

The only outstanding question that I have to ask Bluesmart is when will they be offering a wider variety of this product?! Don’t get me wrong, I think the brand was very smart (no pun intended) for launching a carry-on bag first (manufacturers are limited to size limits for a carry-on), but I think that the brand has a lot of opportunity here to grow their product line. They better act quick though because I am sure competition is right behind them! 

#EndApplause4Bluesmart

[its-spinderella-blog]

Cicret: The Smartphone Display... on your SKIN.

According to a recent article by Entrepreneur, inventors have created a bracelet that connects to your smartphone and functions just like it. What separates this gadget from other bluetooth-enabled wristbands is not only it’s super cool, high-tech projection screen that lights up and functions like your smartphone, but also the fact that it’s waterproof. As an avid smartphone user, I need to share a few concerns that I have from a consumer perspective with the new “Cicret” bracelet (should the company find the funds to release it publicly). 

One of my initial concerns with this product is how reliant it’s waterproof technology is. Per a recent article from TechRadar, “33% of broken smartphones are accidentally damaged by water.” Additionally, the world just witnessed Sony, one of the world’s leading manufacturers of electronic products, make a hugely controversial change to it’s Xperia “waterproof” device as the company now says that this product should not be used underwater (xperia blog 2015). Some brands, however, have been very successful with their waterproof technology releases such as Samsung. In 2014, Samsung released their Galaxy S5 mobile device that WOWed buyers with how much the product actually resisted any type of water damage. Although the Cicret bracelet is not considered a smartphone, in the mind of an electronic consumer, it still operates like one. Do you think the inventors of this product have considered all avenues in their waterproof design, or do you think it could end up like another Sony failure? I’m sure that “techies” are not confident that the product will stand up to it’s fully waterproof design, especially given the fact that they have not yet established any kind of brand recognition to date. Sony is one of the most well-known and preferred electronics brands in the world, and they still could not deliver a waterproof design successfully. What makes Cicret any different?

Another concern that I have with the Cicret bracelet is its style and design. Although the bracelet is offered in 10 unique colors, it is not very fashionable for the every day user. In fact, the bracelets very much resemble that of the Jawbone UP band, which quickly changed its style to fit a more fashion-focused buyer (Jawbone UP3 depicted below). When purchasing a Cicret bracelet, the buyer will be forced to pick from 10 bold colors that will draw attention to the person’s wrist, no matter what outfit they are wearing. I don’t know about you, but I’d rather have people notice other things such as how well my outfit matches, my new shoes or even how fabulous my makeup looks, not the block on my wrist.

Jawbone UP3:

Cicret:

Lastly, according to the article, the price of the Cicret is still unknown. Its inventors will need to be strategic about the price tag that they place on this new product if they expect consumers to buy it. They have already introduced exactly how the product is built by placing emphasis on all of its technical specifications. Are these parts cheap enough for the manufacturer that the company will be able to offer the Cicret bracelet at a competitive price? From a consumer perspective, it seems like an extraordinary build that would come with an extraordinary price. 

Although I’m skeptical of the new Cicret bracelet innovation, I’m excited to see if the creators raise enough money for the product to hit production, and if it does, how consumers will react to it. It’s certainly different than other smartphone accessories that we are used to but will it hold up to the value it advertises? We will see!

[its-spinderella-blog]

Guinness is going vegan.

The New York Times recently announced that Guinness, an Irish stoudt beer that prides itself on innovating in a true pioneering style, is going vegan. It seems unfathomable for the historical brand (dating back to 1725) to change their product that is loved by millions of consumers across the world at all let alone announce that they will be removing a full ingredient - fish bladder - but boy do I think it’s a genius innovation upgrade!

Last year, The Vegetarian Times reported that about 6% of the U.S. population alone were considered vegan consumers and approximately 83% of those individuals are between the ages of 18 and 54, who are demanding healthier and cleaner foods and also happen to be the largest demographic to drink alcohol. As a comparison, the percent of vegans increased about 5% from 2014 to 2015 and analysts predict that number to continue growing year after year. According to a 2015 report, “Guinness knows that their customers are typically the “Older, Wiser, Classier” group.” Therefore, what better way to reset as a brand and appeal to the younger, millennial generation than to offer a vegan solution?

For a brand that has highlighted their product with the slogan, “Good things come to those who wait,” they are certainly doing a great job at maintaining that promise through the current worldwide vegan trend. A full year in advance, Guinness has intrigued us with their announcement of their end of 2016 vegan beer development. The brand is literally making their consumers wait 12 months for the Irish gold at the end of the rainbow. Talk about patience...

In my opinion, this release will be a huge win for the Guinness brand. According to a recent Eater article, “Plenty of big brands are making moves to cater to the vegan demographic lately: Hippie-leaning ice cream purveyor Ben & Jerry's is planning to launch a vegan ice cream in 2016, and even Swedish furniture emporium Ikea has begun selling a vegan version of its famed Swedish meatballs (they're made with kale). Last year Chipotle started serving sofritas, a vegan protein option made from braised, shredded tofu, and it's now available in all of the burrito chain's American stores.” Although Guinness will not be the first beer brand on the market to move to a vegan solution, they are moving in the right direction from a consumer perspective.  

Going vegan is not for everyone, drinking beer is not for everyone, but a vegan Guinness beer is the four-leaf clover that consumers today are looking for. 

https://youtu.be/rx0MRawkrj4

[its-spinderella-blog]

Starbucks: New Latte Macchiato

According to a recent Business Insider article, Starbucks is adding a new beverage to their menu - the Latte Macchiato. This new drink will be added to the company’s core coffee line-up only one year after their release of the Flat White (released January 2015). Per the article, the Latte Macchiato will follow the Flat White’s “model of success” and will offer a similar “minimalist take on coffee from a chain selling a number of over-the-top, super-sweet Frappuccinos and lattes.” As a former Starbucks partner, I have a few thoughts on this model that Starbucks is continuing to take.

First, Starbucks loyalists expect a consistent premium experience and a high-quality product. According to the company’s website, Starbucks is fully committed to the highest quality coffee in the world. If the brand continues to take a “minimalist” approach to new products, will dedicated and therefore valuable coffee drinkers continue to support the brand’s new developments? If you ask me, the answer is no. If you are a powerhouse brand like Starbucks, why are you caving to the lower level coffee drinker and not standing by what consumers know you deliver: “the top most quality coffee in the world.” 

Second, I’m not really sure what the value proposition is that Starbucks is trying to make with the Latte Macchiato. This opinion seems to be supported by Bon Appetit in which their article stated, “...third wave baristas we spoke to don’t really even know what it is or why you would want that drink in the first place.” As a frequent Starbucks customer and somewhat of a coffee “expert,” the launch of this new beverage just comes across like the organization is reaching for new ideas without having to take on additional product costs. 

Lastly, it is well-known that Starbucks is focusing on their strategy of targeting kids and teens this year and growing revenues for consumers under the age of 18 (NBC News). Although I am not a big fan of what this strategy could bring from a new product development standpoint, do you think that the brand is using the Flat White and Latte Macchiato launches as a transition to target this segment of consumers? In fact, a Latte Macchiato is known as being a real Italian drink that is traditionally enjoyed by kids whose parents want to give them coffee but are hesitant to whether or not they can stomach it. Could this new targeting strategy only add to the less than premium expectation that customers are accustomed to? I will leave you with that thought...

Regardless of my thoughts above, it’s interesting to think about how many other Starbucks “regulars” are not pleased with the new launch. The brand should consider their loyal consumers and iterate on the well-known drinks that they are used to instead of creating below quality renditions of beverages that are already loved.