Business Casual

Twenty eight years ago, McDonald’s partnered with Michael Jordan to brand, market, and sell their meals. The fast-food chain has not attempted a celebrity branded partnership since...until now. On September 8, Variety reported the brand collaboration between McDonald’s and Travis Scott. Fans of Travis' psychedelic hip-hop can now order his signature McDonald's meal: a fully loaded quarter pounder, with fries, BBQ sauce, and a Sprite. The publicity drop coincides with the release of Scott’s collaborative merchandise and clothing line flashing a vintage McDonald’s look.

In this Business Casual snippet, hosts Daniel Litwin and Tyler Kern consider McDonald’s high profile attempt at influencer marketing. Will the product, a decked out burger, be enough to get target customers in the drive through? Litwin and Kern break down takeaways of this brand partnership and what marketers can take away from the collaboration.

Gyms were hit particularly hard by the pandemic, but are beginning to see tentative traffic as business opens back up. Targeting these cautious gym-goers, Peloton creates new, more affordable products aimed at those still wanting to work out from home. After Peloton’s Tuesday announcement, NBC News reported consumer doubts that the company’s marketing tactic would stick ( https://www.nbcnews.com/business/business-news/peloton-cutting-its-prices-will-people-ever-go-back-gym-n1239533 ). Meanwhile, Peloton’s shares spiked 9%.

In this Business Casual ( https://marketscale.com/industries/podcast-network/business-casual/ ) snippet, hosts Daniel Litwin and Tyler Kern consider Peloton’s investment in gym-shy budget consumers. Peloton’s move signals the company’s bet that the gym experience may never fully recover. If their bet pays off, the fitness apparatus company could reap big profits. If they’re wrong, and consumers return to the gym in search of community and motivation, Peloton will have missed the mark.

Department store retailer, Kohls, recently got booted from the S&P 500 index, losing its spot to online artisan market, Etsy. In a bold new move, Kohl’s decides to rework its customer reward system, dropping points and going all in on its signature Kohl's Cash. According to USA today, Kohl’s chief marketing officer said the change is meant to streamline rewards ( https://www.usatoday.com/story/money/2020/09/08/kohls-rewards-new-loyalty-program-holiday-shopping/5702300002/ ) , "So that will make it much easier for customers to understand what they're earning, what they have available and how to redeem it."

In this Business Casual ( https://marketscale.com/industries/podcast-network/business-casual/ ) snippet, hosts Daniel Litwin and Tyler Kern explore the landscape of loyalty rewards programs in the retail space. In a post-COVID, retail-shy marketplace, what is the value of loyalty reward programs? Kohl's shareholders are optimistic the customer focused move will help the department store stay competitive.

Twenty eight years ago, McDonald’s partnered with Michael Jordan to brand, market, and sell their meals. The fast-food chain has not attempted a celebrity branded partnership since...until now. On September 8, Variety reported the brand collaboration between McDonald’s and Travis Scott ( https://variety.com/2020/music/news/travis-scott-mcdonalds-meal-michael-jordan-1234763132/ ). Fans of Travis' psychedelic hip-hop can now order his signature McDonald's meal: a fully loaded quarter pounder, with fries, BBQ sauce, and a Sprite. The publicity drop coincides with the release of Scott’s collaborative merchandise and clothing line flashing a vintage McDonald’s look.

In this Business Casual ( https://marketscale.com/industries/podcast-network/business-casual/ ) snippet, hosts Daniel Litwin and Tyler Kern consider McDonald’s high profile attempt at influencer marketing. Will the product, a decked out burger, be enough to get target customers in the drive through? Litwin and Kern break down takeaways of this brand partnership and what marketers can take away from the collaboration.

Clinking cold pints on a hot day with friends is a familiar sound of summer. But 2020 has a different summer in store for craft breweries. In Minneapolis, CBS Minnesota reports the Surly Beer Hall will “close indefinitely in November.” ( https://minnesota.cbslocal.com/2020/09/02/surly-beer-halls-closing-may-be-sign-of-things-to-come-for-minnesotas-craft-breweries/ ) This particular beer hall paved the way for other Minnesota craft breweries to serve beer on site. As an industry leader and icon of the city, the loss stings for locals. With revenue down 82%, Surly simply couldn’t make it through the slow winter months, explained owner Omar Ansari. The announcement foreshadows a potentially ominous trend among craft breweries in the coming months.

On this Business Casual ( https://marketscale.com/industries/podcast-network/business-casual/ ) snippet, hosts Daniel Litwin and Tyler Kern consider the craft brewery business model. Will people return to their favorite “public living room,” to have a beer with friends and keep these businesses alive? Kern attests that hospitality isn’t going anywhere and that experience of the local brewpub is too well-loved to disappear. But as the weather cools and outdoor seating becomes difficult, will craft breweries manage to survive the winter?

KEY POINTS:

* Production breweries are doing well, but taprooms and brewpubs are struggling.

* The Brewers Association estimates a 10 to 20 percent decline in sales for small and independently owned craft breweries in 2020.

* What is the fate of smaller breweries that have difficulty creating social distance in their beer halls?

Few industries have been hit as hard by the global pandemic as the airline industry. Even as the U.S. State Department lifts its “Do not travel,” advisory, travel is merely trickling back. With business travelers still not booking, and perhaps never fully coming back, airlines turn to serve leisure travel customers. According to CNN Business, United Airlines led the change ( https://www.cnn.com/2020/08/31/business/airline-industry-change-fees/index.html ) as the first to drop change fees. Just a day later, Hawaiian Airlines, Alaska Airlines, American Airlines, and Delta Air Lines also pulled change fees to some degree. The industry-wide move shows that customers have the upper hand.

On this Business Casual ( https://marketscale.com/industries/podcast-network/business-casual/ ) snippet hosts Daniel Litwin and Tyler Kern ponder how far airlines will go to earn the dollars of travelers. As travel begins to pick up, what role do airlines play in curbing the spread of COVID while trying to stay in business?

KEY TAKEAWAYS:

* Airlines’ customer service has never been better as they vie for traveler’s business.

* Will other industries hard hit by the pandemic also make sweeping changes?

* Despite COVID outbreaks, travel to Las Vegas, Orlando, and Denver are up.

* Is bolstering leisure travel potentially disastrous?

With the pandemic drastically changing the landscape of retail, America’s largest chains have had to pivot on a dime. So who has emerged as the leader? Judging by profits alone, Target far outperformed its competitors. According to The Motley Fool, Target reported a 9.6% operating margin in the second quarter, compared to the respective 5.5% and 3.9% of Walmart and Amazon.

On this Business Casual snippet, hosts Daniel Litwin and Tyler Kern consider whether Target got lucky, or whether the company strategically set itself up for success.

Target's success leads to two key metrics: convenience and custom products. By rolling out a same-day curbside pickup service, Target saw massive gains amid the pandemic as customers chose a fast and convenient method of shopping in order to stay out of stores. Target also retains customers with it’s unique in-store brands like Good & Gather and Archer Farms. By being a seamless, stress-free one-stop-shop, it seems Target has set itself apart from its competitors.