Much like Tupperware parties of yore, brands such as Microsoft, Kraft Foods, Ford, Verizon, Nestlé and S.C. Johnson are recruiting consumers to host house parties. The more relaxed, informal settings are proving to be a better way to introduce consumers to brands.
"People are more jaded than they've been before about marketing and advertising," Microsoft's Kathleen Hall, general manager of consumer marketing, worldwide campaigns and product marketing for Windows, told Adweek. "This kind of lets you prove [a product's value] in a firsthand, experiential way. And the role of friends and influencers -- friends who are in the know -- is pretty significant in the purchase decision for a lot of things now."
For Microsoft, the scale of the effort is noteworthy. The company held a 14-country house party event in October for Windows 7, involving nearly 60,000 hosts and reaching an estimated seven million people (including participants and people they told about it.)
A few weeks before the consumer-run parties, Microsoft execs held their own trial-run parties with friends and neighbors. The execs found was that "people were not overly sensitized to feeling sold to or it being commercial," Ms. Hall said. "They thanked us. It was almost like it was a customer service that they appreciated. And the fact that we have that Big Blue, big Microsoft perception made the reality of us wanting to come into people's homes and just talk to them about the product and let them talk about it such a refreshing change."
Consumer hosts received a package that featured a Steve Ballmer-autographed edition of the operating system, as well as tote bags, a deck of cards and other party favors. Some parties lasted a few hours while others lasted longer. Some hosts tied the parties to charitable causes.
Microsoft director of marketing John Dougherty said that the Windows 7 parties resulted in a "significant migration towards sales among those who participated."
Dan Hanover, editor of Event Marketer magazine, said demand for brand parties is "exploding." Consumer interest comes in part from them being the first to try new products, as well as being able to shape consumer opinion.
Costs range from several millions for an event such as Microsoft to a couple hundred thousand for smaller ones, according to the article. Verizon held Super Bowl parties hosted by 1,000 Fios customers. But Kitty Holding, CEO of House Party, which orchestrated the Microsoft parties, said scale is key, noting there need to be "thousands and thousands [of participants] before it starts to make sense" for marketers.
Discussion Questions: What are the advantages and disadvantages of house parties for brands as a marketing tool? What must marketers gain to justify the investment?