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BUT WAIT, THERE'S MORE! NOW HOW MUCH WOULD YOU PAY?

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Setanta
 
Reply Mon 2 Jun, 2003 07:27 am
In the June issue of Fortune Small Business, there is a fascinating article (the cover article) on celebrity promotion. The cover photo is of George Foreman, and the article takes off from a description of the wildly successful marketing campaign by Salton, which makes the George Foreman Lean, Mean Fat-Reducing Grilling Machine:

"Yet in at least one case the success of a celebrity campaign is clear, and it didn't come from the annals of Nike or Coke but a little-known appliance manufacturer called Salton, which eight years ago partnered with then-heavyweight champ George Foreman and turned a strange-looking indoor grill into one of the bestselling household appliances of all time. More than 40 million George Foreman Lean, Mean, Fat-Reducing Grilling Machines have been sold since the mid-1990s, with sales going from $5 million in 1996 to $400 million in 2002. The overall housewares industry expands an average of 7% annually, while Salton has grown more than 46% a year since 1995, increasing its revenue 12-fold. For his part, Foreman awoke his inner salesman and made more money from the venture than he did in his entire boxing career, an estimated $150 million. After a long, successful run, though, sales have finally begun to plateau, leaving Salton and its executives working hard to regain momentum. But the company is, everyone can agree, destined for hall-of-fame status. What other small business can say it dreamed up and executed--with a healthy dash of good luck, of course--one of the greatest celebrity campaigns ever?"

Fortune Small Business article here[/b]

So what is your take on this phenom? The article says that no hard research has ever been done on the effectiveness of such campaigns, although the George Foreman story probably leads many marketers to dream of hitting the home run. Do you think this is a valid marketing technique, or are companies just enriching those who already make the big bucks, without helping their bottom lines?
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fishin
 
  1  
Reply Mon 2 Jun, 2003 07:41 am
Even with a celeb indorsement I think the product still has to work. I've heard few Foreman grill owners talk about them and it's almost cult-like. People swear that these things are the greatest thing ever. I guess the product quality and priciung make it a eal. Most of the other items being hawked on TV end up being way over-priced junk so I don't think the indorsements would help them in the long run. Plenty of other celebs have endorsed products over the years but most just seem to fizzle..
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patiodog
 
  1  
Reply Mon 2 Jun, 2003 04:13 pm
Yep, the thing rocks. Throw some chicken or a couple of burgers on it, flop the lid down, and come back in ten minutes. Burgs can't be too thick, though.

Not sure why the campaign worked so well. Probably word of mouth was the biggest thing, after the initial visibility boost (Foreman touted the grill on his talk-show rounds)...
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Setanta
 
  1  
Reply Mon 2 Jun, 2003 04:16 pm
Foreman did hour long "infomercials" . . . and he displayed a natural flair, was articulate and good humored . . . thank god George doesn't sell used cars, we'd all be drivin' around in beaters . . . this came to mind because Lovey and i were discussing the purchase of such a device (currently, she just cooks the chops in a waffle iron), and then when the June issue of FSB showed up with George on the cover, i almost fell out . . .
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Dartagnan
 
  1  
Reply Mon 2 Jun, 2003 04:23 pm
I'd wondered about the efficacy of the grill myself, figuring it has to be pretty decent for the campaign to have gone on so long. Since patiodog speaks highly of it, I know it must be good.

I also suspect the Foreman's overall affability must have helped. He's just a likable guy!
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Setanta
 
  1  
Reply Mon 2 Jun, 2003 04:25 pm
According to the article, 40,000,000 have been sold so far, and George has earned in the neighborhood of $150,000,000 for his part--more than he earned in pugilism.

But the article is about more than George, and i had hoped people would read it, and put an oar in about the entire concept.
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patiodog
 
  1  
Reply Mon 2 Jun, 2003 04:26 pm
D'artagnan wrote:
Since patiodog speaks highly of it, I know it must be good.


In that case, I've got a Daihatsu I'm looking to sell. Great car.
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patiodog
 
  1  
Reply Mon 2 Jun, 2003 04:41 pm
Setanta wrote:
According to the article, 40,000,000 have been sold so far, and George has earned in the neighborhood of $150,000,000 for his part--more than he earned in pugilism.

But the article is about more than George, and i had hoped people would read it, and put an oar in about the entire concept.


Seems to me the trick in this particular instance was that they actually had a worthwhile product to sell and a genuinely interested person to sell it. They can use Kobe Bryant to sell McDonalds all they want, but who actually believes he eats it? (Unless they're using him to prey on children, but such a venerable company wouldn't do such a thing, would they?)
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sozobe
 
  1  
Reply Mon 2 Jun, 2003 04:56 pm
Kobe's smiling mug is on Nutella, too -- "Kobe's Favorite!" -- and for some reason I believe that one.

I totally agree though that the celebrity endorsement part is almost incidental here -- George Foreman Grills are a phenomenon less because of George Foreman than because of the Grills.
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Dartagnan
 
  1  
Reply Mon 2 Jun, 2003 05:21 pm
It's a good thing they chose George to flog those grills, rather than, say Mike Tyson...

Thanks for car offer, patiodog, but my '86 Tercel still runs like a top...
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fishin
 
  1  
Reply Mon 2 Jun, 2003 05:25 pm
George has been doing the ads for Mienke mufflers for years and they don't seem to be going anywhere. It's gotta be more than just him.
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patiodog
 
  1  
Reply Mon 2 Jun, 2003 05:25 pm
D'artagnan wrote:
Thanks for car offer, patiodog, but my '86 Tercel still runs like a top...


It spins in one place for a few seconds and then falls over?


(Sorry, 'tanta, I'll get off the off-topic.)
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Setanta
 
  1  
Reply Mon 2 Jun, 2003 05:27 pm
patiodog wrote:
(Unless they're using him to prey on children, but such a venerable company wouldn't do such a thing, would they?)


Oh no, Patio, perish the thought . . . you need to chill . . . here, have a Happy Meal . . .
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Setanta
 
  1  
Reply Mon 2 Jun, 2003 05:29 pm
patiodog wrote:
(Sorry, 'tanta, I'll get off the off-topic.)


Yeah, yeah . . . like i'm the "on-topic" crusader . . . Rolling Eyes
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Dartagnan
 
  1  
Reply Tue 3 Jun, 2003 08:59 am
patiodog wrote:

It spins in one place for a few seconds and then falls over?


Nah, it's really reliable. Which is sort of a drag, because it's such a dorky looking car. I have absolutely no excuse for junking it...
0 Replies
 
 

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