Wednesday 27 October 2010

Halloween gains momentum as UK marketing theme

Boo! From tourism to sports to adult events, Halloween is gaining momentum as a seasonal marketing theme. At least one estimate puts Halloween as the UK's third-largest high street sales season.

Here are only a few of the many Halloween-themed promotions for charities, historic places and cities around and beyond the UK:
  • The Stroke Association is holding a series of fundraising fun runs with a Halloween theme in Liverpool, London and Belfast (see above).
  • Derry's Banks of the Foyle Halloween Carnival includes dozens of events in the weeks leading up to a big spooky night celebration.
  • Dover Castle is promoting its haunted castle event for Halloween Week.
  • The Real Mary King's Close in Edinburgh promotes its haunted legends for Halloween visitors.

Unilever and Crowdsourcing

Earlier this year, Unilever invited consumers to submit movies (really, commercials) focused on the values of its 13 major brands. You can read about its global partnership with MOFILM here.

The results are in, announced at the London Film Festival (and on Unilever's Web site, Twitter feed, etc), and the winners are quite impressive. This is not only a wonderful way to involve consumers in the company's brands, it also gives Unilever access to new creative ideas and approaches. Watch for more crowdsourcing by major companies in the future.

Monday 25 October 2010

Debenham's fine-tunes its marketing

Debenham's is the latest retailer to jump into in-store/online TV. The company has moved into multimedia in a big way, with an iPhone app, mobile marketing, YouTube-style videos related to products and services, and social media of all types (Facebook, Flickr, Twitter, YouTube, blogs).

Recent blog entries promoted the retailer's contests, fashion designers and other subjects directly related to Debenham's marketing. The store also maintains a beauty club blog (see illustration above) with seasonal tips and product announcements.

With all this marketing momentum, Debenham's profits are up and the retailer is increasing its own-label fashion range to reinforce brand differentiation and loyalty. The big yearend holiday shopping season is almost here--will Debenham's be able to leverage its various media and messages to beat the competition? The outlook is very good.

Tuesday 19 October 2010

More about consumer behaviour reset

Marketers of personal care and household products--venerable corporations like Unilever and Procter & Gamble--are noticing definite signs of shifts in consumer behaviour during this prolonged economic downturn.

Essential items are still selling, but non-essentials are selling less strongly than before, and store brands have become increasingly popular among budget-minded consumers--and likely to retain much of their popularity even after UK, US, Asian, and European consumers regain buying power.

ASDA is in the process of reformulating its private-brand food items after extensive consumer testing, with "Chosen by you" as its strapline (see image). This investment in reformulation is likely to pay off in higher awareness and higher sales because consumer behaviour has shifted toward buying products that don't necessarily carry national or international brand names.

In India, store brands are not only gaining share, they're being priced at or near what national brands can command. "We price some of our products on a par with national brands because we sell quality products," says the merchandising executive in charge of food and FMCG at Spencer's Retail. "Our 2010 Shopper Profile Survey has shown that 80% of our store shoppers have been visiting us for more than three months now. It is this trust which rubs off onto our private brands business."

Major firms have introduced lower-priced products to compete with store's private brands, but this strategy brings its own risks. P&G in fact may have found that its Tide Basic was so popular that it was siphoning sales from other Tide variants. Yet if consumer behaviour is being reset, buyers will not make the automatic choices they once made. Tide Basic might now appear a much better value in the "new" consumer mindset, because of the Tide name and the lower price. Yet P&G pulled Tide Basic a few months ago, even as it continues other budget-priced branded variants such as Bounty Basic.

The battle continues as marketers try to determine whether consumer behaviour has been reset for the present or for the longer term.

Sunday 17 October 2010

Consumer behaviour reset?

Is budget-minded behaviour the new normal? During the worst of the recession, Aldi--the super-discount grocery retailer--attracted lots of new UK customers seeking to stretch their budgets by buying low-priced foods and household items. (US shoppers also traded down, changing their shopping habits to buy basic items at Walmart and other discounters.)

This year, however, Aldi has not increased its market share and has sustained losses. In response, Aldi's executives point out that they are investing in the business. However, Aldi's inability to gain market share can also be seen in the light of the competitive pressures exerted by Tesco and the other major UK grocery chains, which are fighting back with price promotions and expanded private-label ranges that give price-conscious shoppers more reasons not to go to Aldi.  

Guardian reports that, in fact, supermarket price promotions are at a high point, yet shoppers aren't necessarily buying those bargains; instead, they're trading down to lower-priced brands and private-label products.

So the question is, are consumers going to remain budget-conscious after the economy improves? Or will they trade up to top brands once they feel more confident in their incomes and buying power? And how will this consumer behaviour affect retailers?

Wednesday 13 October 2010

The Google Price Index

A mountain of data passes through Google's hands every hour of every day. Now the company has launched the Google Price Index to map the daily progression of inflation with respect to e-commerce. Financial Times quotes Google's chief economist as noting that the Google index, still under construction, will take into account local variations and look at goods and services bought online.

This price index would provide a more timely look at price fluctuations than traditional price indexes calculated by government agencies. However, it's unlikely to replace "official" price indexes. What it will do is add to marketers' understanding of the current economic environment and help them track broad trends in price pressures. Google hasn't yet announced when (or if) the index will be made available. 

Friday 8 October 2010

Louis Vuitton Focuses on Core Values

It's hard to miss the latest Louis Vuitton campaign, which features rock star/social activist Bono and his fashion designer wife, Ali Hewson, carrying one of the luxury company's signature bags. The photo, by well-known photographer Annie Leibowitz, is especially eye-catching because it lacks the static, posed look that usually characterizes an ad for an upscale brand.
The Daily Mail notes that Bono and Ali are the latest celebrities to appear in Vuitton's Core Values campaign ads, which revolve around the brand's iconic image in the world of travel. Vuitton discusses its campaign here.

The NY Daily News complains about the number of messages packed into this one ad. In addition to featuring the Vuitton luggage, the ad mentions Ali's Edun clothing line and also shows some Kenyan charms made by a Fairtrade company. Plus in tiny print, the ad says that profits from the Vuitton bag (as well as Ali and Bono's fees) will be donated to Conservation Cotton Initiative Uganda.

IMHO, Vuitton's target market is smart, media-savvy, and able to absorb and interpret multiple messages. Just as important, the target market will understand and appreciate the social responsibility angle, which helps to differentiate Vuitton's brand. All in all, I like this campaign.

Monday 4 October 2010

Marketing fit for a Queen

Cunard is getting ready to launch its newest Queen Elizabeth oceanliner, with a major marketing campaign and a naming ceremony featuring the real Queen Elizabeth. This is an exciting new cruise ship and its maiden voyage sold out in only 30 minutes.

Marketing support includes Facebook, Twitter, YouTube, public relations promotions of all sorts and much more, leading up to next week's official naming and launch of the new QE ship.

Cunard's parent, Carnival, has seen profit increase as it continues its marketing strategy of differentiating its cruise brands for specific target markets. The new Queen Elizabeth will only reinforce the Cunard brand's upmarket image and British roots. Marketing fit for a Queen!