TribalWorks

Amazon is releasing version 2.0 of its Kindle electronic book reading device.

Amazon.com’s new version of the Kindle, an electronic book-reading device, is being released in the weak U.S. economy where it will compete with other mobile devices as well as traditional books.

The wireless device will cost US$359, the same price as the original Kindle.

The new Kindle can store 1,500 books, compared with 200 on the previous version, and users will also have access to newspapers and blogs. The size of a paperback book, the new device is lighter and slimmer than the previous version, and users can read with it for up to two weeks without recharging it, said Amazon.

According to some however, this is not the right time to launch it.

“This is probably the worst time in history to be introducing a device at that cost factor, that for most people they are not convinced that they need it just yet,” said digital commentator Carmi Levy of Toronto-based AR Communications Inc. “They can still go to the library and get their books for free.”

IDC Canada analyst Kevin Restivo said the Kindle 2 is currently a niche product at best.

“This is probably a product that will be adopted or used by a very small portion of the population right now because it’s a device dedicated to one thing right now, and that’s reading books,” said Restivo.

However, one important thing not to underestimate is the power of the tribe.  More specifically in this case, the power of the Oprah tribe.  Oprah has named the Kindle her “new favorite, favorite thing in the world.”  The Oprah Effect as it is known, has lifted brands and products from obscurity to prominence.  The question is, will this effect be enough to lift sales of Kindle 2?

I came across an interview with Seth Godin on Wired.  One of the key points in the article he makes is:

Wired: How do you put your tribe ahead of others in a land of too many choices and too many other things vying for attention?

SG: The leadership today is about 10 people bringing you 100 and 100 bringing you 1,000. When you have 1,000 true fans, as Kevin Kelly talks about, then they’re the people who are going to turn it into a movement. Not you. Your job is to take care of and feed and nurture those 1,000 people, and those people need to go to their network of people who know them and trust them, who eat dinner with them, and bring them in. It’s not for you to somehow beam your message to strangers and convert them, because you can’t convert strangers anymore. Not one major new consumer brand built in the last five years was built on the back of advertising. Google and Facebook, etc. are built because one person brought another one by the hand, not because someone bought ads on the Super Bowl.

As I mentioned in an earlier post, Seth has the right idea that tribes form with or without us.  The key is to support the tribe and enable them to work for you.

One company that I think has done a great job of this is Campbell’s with their MVC program.  David Allard and his team has done a great job bringing the tools to the tribe to make this campaign successful.

Chapters Indigo recently launched the Indigo MBA - a 12-month self directed program.

The free, 12-month, self-directed program features a 21-book reading list that includes new and bestselling business titles and online “discussion modules.”

“It’s sort of a natural extension for us because our brand has always been about enriching people’s lives and providing inspiration and continuous learning,” said Deirdre Horgan, chief marketing officer, Indigo Books & Music Inc. “Those are the cornerstones of our brand.”

“During a time of economic uncertainty, we thought it would be an innovative way to provide valuable and meaningful support for our customers to sharpen their skills in the business arena,” she added.

To join, consumers simply need an e-mail address and password to engage in the monthly scheduled discussions.

On the surface, the campaign design itself is quite innovative.  Many people during tough economic times leave the workforce and head back to school to sharpen their skills.  Indigo understand this and assembled a self-directed course.  The payoff for Indigo is that they should see an uptick in sales of the recommended titles.

However, if we examine this issue more deeply, we can see that Indigo has the potential to radically change what an MBA is and its value proposition. 

Looking back at my MBA experience (almost 5 years ago), I would say the biggest value I got for the over $50K spent was not the knowledge I received, but the network I am a part of.  I still keep in touch with the people I met during the program, whether it be classmates, people in senior/junior classes, professors or alumni.  Undoubtedly this network has led us to build Accelteon.  Thus, the money I spent on the MBA wasn’t so much for the knowledge, but to have access to some of the best business people in Canada. 

It seems now that Indigo has made the knowledge piece of the program very affordable (I recognize many of the recommended books as those that I either read or should have read).  The question is, can Indigo build a true community around its MBA program?  They currently have a forum where students can have discussions online, but perhaps adding frequent ‘class’ get togethers and events with the authors of these books would be a starting point to build that valuable network.

For the second year in a row, Labatt USA will host a pond hockey tournament in Buffalo.  The demand to participate in the tournament increased to the point where they quadrupled the number of teams from 16 last year to 64 this year.

Labatt USA worked in conjunction with the City of Buffalo and Erie County to expand this event, making it a regional draw. Scheduled to be held on eight rinks, the tournament will span nearly 136,000 square feet on the frozen lake. Competitive, entertaining and nostalgic, the event will also carry the benefit of turning eyes on Buffalo in terms of outdoor winter entertainment.

“We want to create an authentic hockey experience that takes people back to hockey’s roots,” said Peter Bodenham, director of marketing, for Labatt USA. “Our tournament is played on Lake Erie and the choppy, dull surface delivers hockey in its purest form. Players maintain the ice with shovel and buckets of water, much like you would during a pick-up game on a neighborhood pond.”

This tournament has the effect of not only bringing multiple tribes (teams) together, but also solidifying the connections between members of the same tribe (team).

The lesson for other brands:  Build an event that helps bring together people to share their common interest.

Marketers are constantly looking for the magic bullet that gets consumers hooked onto their product or brand.  Every so often a company hits the nail on the head.  EA Sports has launched a promotion that is probably the purest and simplest way to not only connect with the Tribe but to truly support it.

The NCAA Football development team is asking interested fans to submit their last name to be included in the commentary for NCAA Football 2010.  Chosen names will be given to Brad Nessler (play-by-play announcer for ESPN’s College Football as well as the videogame) for him to record.  Thus, enabling members of the tribe to create a player model of themselves and hear their name being called out while they play. 

Fans can now truly be a part of the product they love.

The Mercedes-Benz Club of America (MBCA) has decided to extend its Loyalty Reward Program. 

The 2009 Membership Loyalty Reward Program offers MBCA members a $1,500 reward gift card for purchasing or leasing a new Mercedes-Benz vehicle through Dec. 31, 2009. The $1,500 reward gift applies to all new 2008, 2009, and 2010 models, excluding AMG models. MBCAmembers who purchase a Mercedes-Benz Certified Pre-Owned vehicle in 2009 including AMG models are eligible to receive a $750 reward gift card. There is also a $250 card available for members that purchase a pre-owned Mercedes-Benz from a licensed independent U.S. dealership. The reward gift cards are redeemable toward parts, service, personal accessories and vehicle accessories at any authorized U.S. Mercedes-Benz dealership.

The key question I have is why does MBCA feel the need to have a loyalty program?

In my opinion, the $45 annual fee for MBCA already provides plenty of benefits (not too different than what Harley Owners Group would provide).

Member benefits include select dealer discounts, a magazine subscription to The Star, and events such as organized race track classes, social gatherings and travel opportunities.

What would have been the consequences of of discontinuing this program?  Would people drop off?  Would program profitability decline?

I am not sure if these questions were asked or what type of analysis was done to arrive at their decision.  Regardless of their intent, MBCA is supporting the tribe by providing them an added benefit.  Perhaps a much welcomed benefit in these tougher economic times.

Burger King recently launched its Angry Burger along with a promo website, Angry-Gram.com.  The front page of the site states:

An Angry-Gram is the perfect way to let someone know they annoy the hell outta you.  Tell us who they are and what they do that drives you up the wall.  We’ll send over a screaming Angry WHOPPER® Sandwich that’ll really let them have it.  Angry-Grams are intended to be humorous and should not be used with an intent to harass.

Interestingly, the UK version has a different wording and doesn’t have the last line talking about not intending to harass.

As you move on to send one, you are presented with this template:

Dear ___________.

I’ve had it up to here with you.

Your_____________ does my head in.

And I’m so fed up with your ______________.

How about when you ____________? What a loser.

I wish you’d crawl back under your rock and never come out.

Yours angrily,

___________________

Is it just me, or can anyone else see a 20/20 Special on how one of these Angry-Grams caused someone to go too far.  Or Burger King getting sued for enabling cyber-bullying. 

Don’t get me wrong, I do like clever marketing and have a good sense of humor.  That’s why I think Burger King’s Whopper Sacrifice Facebook app(where users kick off 10 friends from their Facebook Friends list and get a free Whopper) is a great promotion.  However, the Angry-Gram goes too far in my opinion.

 I came across this sign outside the County Line BBQ in Austin (On The Lake), Texas.  This is just another example of how deeply connected some members of the tribe are to Harley-Davidson.  Furthermore, this illustrates the organic nature of this connection (i.e. this is something someone did on their own, rather than the intervention of H-D).

As Canada won its 5th straight Gold Medal at the IIHF World Junior Hockey Championships, Samsung Canada supported the local hockey tribe with its “Hockey Country Experience”.

From Dec. 26 to Jan. 4, hockey fans can participate in interactive games, a Hockey Hall of Fame exhibit, giveaways and live TSN feeds at Samsung’s FanFest at the Aberdeen Pavilion in Lansdowne Park.

“We are thrilled to participate in the IIHF World Junior Championship,” said Benjamin Lee, president of Samsung Electronics Canada, in a release. “Our sponsorship of the SamsungHockey Country Experience is a natural fit with Samsung’s Get Together for the Game campaign, designed to connect hockey fans and communities across the country and further ignite their passion for the game.”

Also at the Aberdeen Pavilion, visitors can test their hockey videogame skills in the Samsung Hockey Challenge, which runs from Dec. 26 to Jan. 3. Contestants who earn the daily top scores will receive a free copy of EA Sports’NHL 09 video game for the Xbox 360. The overall top scorer will receive two tickets to the gold medal game, while the runner-up will receive two tickets to the bronze medal game.

Samsungwill also host a used hockey equipment drive at the Aberdeen Pavilion on Jan. 2, with the equipment being donated to the Ottawa District Hockey Association and its existing equipment donation programs, which raise funds for children throughout the Ottawa Valley.

The Samsung Hockey Country Experience also includes the Hockey Canada House, a food and entertainment tent at Scotiabank Place, the home arena for the NHL’s Ottawa Senators; Samsung New Year’s Eve Celebration on the RideauCanal with a screening of the Canada versus U.S.A. game, fireworks display and a live performance by Finger Eleven; as well events on the Rideau Canal Skateway.

I did not see how these elements were executed, but it is good to see Samsung Canada found creative ways to support die-hard hockey fans through Real Space interaction.

Yahoo has announced that it will be rolling out its new social media features.

With the additions announced Monday, Yahoo’s roughly 275 million e-mail users will have the option of setting up their accounts so they can highlight communications from other people with whom they have formed an online connection.

The concept mirrors a premise that has turned privately held Facebook and News Corp.’s MySpace into two of the web’s hot spots for socializing over the past three years—a period that has coincided with a wrenching downturn at Yahoo.

Yahoo also is copying Facebook and MySpace by opening its e-mail service to applications created by outside programmers. In a test that started Monday among a small number of e-mail users, Yahoo began offering applications developed for finding photos stored in their mailboxes, transferring information to blogs, and sharing tips about movies.

The changes will turn Yahoo’s e-mail service into a “scrapbook for your life,” said John Kremer, a company vice-president. “We hope opening up Yahoo mail will have a game-changing influence on the industry.”

Yahoo has declined from a leader to a follower in the online services space.  They have been beaten by competitors, most notably Google, in almost all areas of their business.

It is still too early to say whether or not this new feature will pay off for shareholders.  But as discussed in our post on Social Media Sites - Should I Build or Rent? there are a few criteria which one can use to determine the likelihood of success.

In this case I think it made sense for OS to go ahead and build their own since they have become a key online rallying point for the sports gaming tribe:

• Operation Sports has been around for about 10 years and they have built up a substantial member base (There are almost 800 member online at this moment)
• OS focuses on a specific interest, thus they quickly became the number one destination for enthusiasts.
• The existing site already had very active discussion forums thus enabling them to more safely take this risk

 The key questions Yahoo should be asking are:

• Is the market too saturated with players such as Facebook, MySpace and boutique social networking sites for us to profitably get to critical mass?
• What is Yahoo’s proposition?  What can we do that no other site can do?
• Can Yahoo make it easy for people to find their tribes on our site and make it easy for them to interact?