Taking a Stake in Coldwater

It's time. I'm ready to fiscally kick-off 2007 with a new position in a company that promises multiple upsides. Last year was kind to me, as I banked a 55% profit off my portfolio of three major holdings. But instead of continually adding to my existing positions, I want to develop a little more "diversity" with a stock like women's retailer Coldwater Creek (CWTR). Given the natural volatility of this stock over past months, I've been waiting prudently for a solid entry point. Now that the stock is approximately 25% off its 52 week high, I relish over the opportunity of buying an undervalued growth stock. While the company has been around for nearly 25 years, I wasn't until recent years that Coldwater reinvigorated it's vision of rapid growth. After supremely establishing its catalog and On-line business, Coldwater is greatly optimistic over the expansion of its retail stores. Over the course of the next year, Coldwater looks to double its retail locations across the U.S. Coldwater's intrinsic value, however, is projected in its total leverage over the female baby boomer generation. Coldwater certainly does a nice job at directly appealing to the 50+ market, through it fashionable apparel as well as its strong customer service. It should also be noted that Coldwater was the first real company to offer clothing in sizes that weren't labeled as 13+, but rather 1x, 2x,3x, etc. Additionally, Coldwater has begun to campaign for 100% energy efficency in all its operating stores. So, clearly Coldwater is a socially responsible company that understands its niche well. Earnings are estimated to grow at 30% this year, while revenues are seen to improve 19%. Like all of my holdings, I am playing this one long-term (3-5 years). CWTR will account for 1/4 of my portfolio. Limit orders only. Long term = multiple bagger.
-AK

Apple Co.mmunications?

Say you’ve just downloaded Good Will Hunting from your iTunes. Instead of huddling around your computer to watch it, you walk into the kitchen, make some popcorn, walk into your tv room, sink into your recliner, turn on the TV, and use your Apple Remote to play the movie that was, just a few minutes ago, in your iTunes library. While you were preparing your popcorn, your new movie had wirelessly synced to your Apple TV and readied itself to be viewed. As the people at Apple would say, "Give yourself a hand: You've just changed the way you watch digital media."

Apple wants to create new consumer possibilities through digital media. With a rekindled focus towards entertainment, Apple has extended its product offering with the latest announcement of the iPhone at the MacWorld conference. This "revolutionary" device integrates the technologies of a mobile phone, a touchscreen iPod, and an Internet communications device. Yet, by the looks of it, it remains puzzling as to whom the phone directly appeals to. Some have asserted it to be more of a "lifestyle" phone that offers cell phone capabilities with enhanced iPod features. Moreover, critics claim that the phone lacks the scalability of a Blackberry or Palm, in that its vibrant touchscreen doesn't scale up to Qwerty keyboards of its competitors. Also, at $499, the iPhone runs a pretty penny considering that it values at the same price as the MacMini. But like the iPod, this phone should take time to grow on consumers. It's important, however, that Apple establishes itself in the communications business before it becomes possibly "too late."

According to Wall Street, investors like Apple's products developments considering that the stock skyrocketed 7.10 points, a gain of 8.31%. What truly adds benefit to Apple value, is the wide-ranging possibilities that Apple can exploit to attract other companies to buy into its entertainment business. TIVO realizes the advantage of a joint partnership with Apple, in which it just agreed to offer TIVO capabilities via iTunes. Similar moves like this should bring Apple big business, and with continual product advancements, Apple looks to be virtually "untouchable."
-KH

Raw Marketing

Want an inside peek at future of brand marketing? Look no further than Fahrenheit 212. This New York firm was just started in November by former Saatchi & Saatchi executives, Mark Payne and Geoff Vuleta. Both gurus wanted to spinoff their own agency in hopes of working more intimately with clients by establishing more creative control. Within months, Fahrenheit 212 has attracted clients from the likes of Starbucks, Coca-Cola, Hershey, Samsung, and Proctor & Gamble. Why such the immediate success? Because Fahrenheit has develop a unusual business model that ensures clients a completed project within five months. Focused on product development, Fahrenheit serves the combined role of being a management consultant, advertising agent, and design house. Thus, Fahrenheit is known to acquire a deep understanding of the overall operations of each business before proposing big ideas. Also termed, as the "idea company," Fahrenheit has developed a system called "the hive," in which eight people with specifically sharp marketing skills convene to tackle clients' marketing problems. As a mode of conceiving radical ideas, Fahrenheit stresses "multiple intelligence theory," a philosophy rooted in the belief that all forms of marketing should stimulate the eight discrete forms of human intelligence:
-Verbal, Mathematical, Visual, Spatial, Physical, Worldly, Emotional, & Musical

Among it latest projects, Fahrenheit worked with the largest global liquor company, Diageo. Contracted to work on its depleted Smirnoff brand, Fahrenheit totally revamped its current product line-up to include a refreshingly new beverage called Smirnoff Raw Tea. As example of the boldness and initiative of Fahrenheit, the firm took the trouble of going to a bartender/mixologist to concoct the new drink. Moreover, Fahrenheit over-achieved by creating the actual bottle design and advertising campaign called "Tea Partay." While its tactics may seem provocative, its effect on the brand has been tremendous. Considered one of "the most memorable ads of 2006," by Contagious Magazine (check earlier post), Fahrenheit has shocked audiences with its humor and whimsical sense of prestige.




So, don't tell me... I know what your initial reaction is. Mind you, this spot is really a clear example of smart, innovative marketing. You've just got to draw the inferences. Clearly, Fahrenheit wasn't afraid of stepping "out of bounds." Remember, this took Fahrenheit only five months with eight executives on board. As a result, Fahrenheit is receiving myriad of product request companies who have received positive reference from global investment banks.
-AK

Brands That I Love

Kevin Roberts, CEO Worldwide of Saatchi & Saatchi, has recently published the sequel to his bestselling business book, Lovemarks, titled The Lovemarks Effect: Winning in the Consumer Revolution. In inspiring fashion, Robert asserts that companies no longer want their brands to be solely "respected," but want to be both respected and "loved." When brands have achieved such acclaim, they are to be termed as being "lovemarked". Moreover, Roberts's contention is that companies must use insight and foresight to best promote powerful, emotional connections. Below, I have made a personal list of lovemarked brands, all of which resonate with me on an "emotional level of engagement."

My List of 30 Irresistible and Irreplaceable Brands

J.Crew
Vineyard Vines
Trader Joe's
Whole Foods
Apple
Google
Netflix
TIVO
Barnes & Noble
Facebook.com
Toyota
BMW
Gillette
Cliff Bar
Fiji Water
Hennes & Mauritz
IKEA
Research in Motion (aka Blackberry)
U2 (Yes, Bono deserves his own brand title)
Trek Bicycles
Burton Snowboards
Suunto Watches
Four Seasons Hotels
Starbucks
IllyEspresso
Birkenstocks
Patagonia
Life is Good(R)
SouthWest Airlines
The New York Times

I would love to hear feedback and comments on your own list of favorite brands. Are there any of my mentioned brands that you agree or disagree with. I'd really like to open up discussion on this topic. As I continue reading The Lovemarks Effect, I will try to keep you updated on my overall impressions of the book. I will also post some original thoughts and insights as to how Robert's principles hold certain relevance.
-AK

Google: In a Class of It's Own

Over the past week now, I have become greatly intrigued by the steps and methods Google is employing to ensure future corporate success. In a Sunday Times article, I came to discover the pure eccentricity surronding the Google culture. While the Mountain View, CA office is prominent for its distinctive employee benefits, it appears that Google is expanding upon the Silicon microcosm, to include the same luxuries in New York. Yes, Google is growing a satellite campus in downtown Manhattan. To accommodate the chaotic daily life of its average employee, Google is offering unique services like daily yoga, sushi and espresso bars, Thursday night socials, and much more.

This development coincides with the recent announcement that Google is searching for sales executives to help turn a profit on the newly acquired, YouTube business. Google is looking to grow office divisions in Detroit, New York, and Boston.

I also discovered this morning that Google is developing a new admissions system to better manage job applications. Sounds strange, doesn't? But in order to continue attracting the elite caliber of talent necessary, Google has established a extensive "biological" survey which includes an index score meant to detect how well a person will fit in. Google believes this new, objective approach will allow its business to distinguish aspiring leaders. Prior to this advancement, Google relied solely on onslaughts of personal interviews, some of which amounted to 10-12 visits before confirmation.

So... Have you ever:
-Turned a profit at your own non-tech side business (dog walker, catering, tutoring, etc.)
-Started your own non-profit?
-Started a club or recreational group?
-Set a regional, state, national, or world-record?

Next... Please indicate your working style preference on a scale of 1 to 5.
1 = Work Alone (A personal espresso machine and a box of Toblerone and I'm ready to go!)
5 = Work in a Team (Ten voices at once, egos colliding... ah, the challenge of getting work in edgewise)

When your employees rate has doubled, and thousands of jobs are up for grabs, new actions must to be taken. Yet, with the intention of continually creating a "better place to work," employee demand remains incredibly high. Figuratively speaking then, Google bleeds the "Ivy League" of job prerequisite, and the "utopia" of cultural dynamic. (Yahoo, beware!)
-AK

Second Life: A New Era of Advertising

Many claim that Second Life will revolutionize advertising by providing its users with a completely interactive service in which users can visit an ever-growing amount of businesses via their avatar (simulated game character). Users in Second Life can purchase LindeX -the official currency of Second Life- with US dollars in order to pay for the virtual items and do business in this virtual world. Although the LindeX is relatively invaluable, it has its own exchange rate, comparable to the US dollar. Companies such as Adidas and American Apparel have already taken advantage of this virtual economy by displaying their products in 3D virtual stores which display their current products. At these stores users can outfit their avatars in the latest styles or peruse the store's products for items that they may want to purchase in reality. Other stores are using websites like amazon.com to insert yet another aspect into this virtual marketplace; that of being able to purchase item from stores and have them delivered to your house in real life.

Another feature of Second Life which I found to be quite interesting was the ability for companies to showcase concept items in order to see if the concept product would be worth it based upon Second Life user response. One such company that has utilized this facet of Second Life is Adidas.

Austin and I were fortunate enough to have attended an informational and interactive presentation on Second Life at the Ann Arbor IT Zone. Believe it or not, there is a Harvard class which is experimenting with the Second Life technology through holding discussion groups in the virtual world. One of the men at this presentation was even pursuing the prospect of creating his own virtual library via Second Life.

Although the program has not gone error free, its programmers are slowly perfecting the technology and building up protection against hackers. Since its opening to the public in 2003, Second Life has acquired 2,337,620 residents and a great deal of excitement.
-KH

The Promise of Design

David Armano, VP of Digitas and leading contributor to the revered Logic + Emotion new marketing blog, posted a tremendous presentation on the future of design and creative thinking. In effect, Fresh + Squeezed will strive to best emulate these insightful tools and principles. Also, look forward to a wide range of blog features including slideshows, videos, sketches, and more. This is just the beginning. We're trying to get our feet wet, first. Enjoy!