Diamond Jubilee marketing

Queen Elizabeth's Diamond Jubilee celebrations will take place in 2012. Already, marketing plans are in place for building on widespread interest in the royal festivities. A few previews:

• Exhibitions featuring highlights of the Queen's reign will be on public display in the royal palaces, drawing even more visitors than usual.
• Harrod's has a variety of commemorative items for sale, including a Jubilee mug, thimble, teddy bear and fridge magnet.
• Bramley is inviting customers to submit their recipes for its Bramley Diamond Dishes contest.
• The Royal Canadian Mint has struck a special medal in honour of the Jubilee.
• Chinacraft's Aynsley Diamond Jubilee 2012 range includes the crown bell shown here, plus plates and tankards.

More activities and products will certainly be announced in the coming weeks, as the combination of the Jubilee and the London Olympics builds tourism to new highs.

Lego Friends for Little Ladies

Lego is introducing a new line of figurines and blocks targeting girls in the age range of 5 to 8.

With the brand's recognition level at all-time highs among parents who buy for boys in the 5-to-8 range, Lego now wants to capture more of parents' spending on children's toys. And why not?

Seems that Lego did a lot of marketing research and realized that girls like to project themselves into the story. These new figurines and block shapes expand the story lines beyond airports, Hogwarts and the Empire, into more familiar everyday surroundings such as a tree house and beauty salons located in Heartlake City, the new Lego "universe" for girls.

The UK launch is set for Boxing Day--yes, Lego is hoping that families clutching gift cards or holiday money will flood into toy stores after Christmas to pick up the new Lego Friends. Stores will also have more room to display the new Lego range after Christmas. (The US launch will occur on New Year's Day.)

The rollout will continue around the world month by month. Will Lego Friends enjoy the big success that boys' Lego sets have enjoyed?

Do Food Marketers Aim at UK Children Online?

Are Nestle and Cadbury--among others--marketing unhealthy [sugary, for example] foods to UK children online? The British Heart Foundation and Children's Food Campaign are complaining about this type of activity; the Advertising Standards Authority has strict guidelines for TV adverts targeting kids, but these don't apply in the same way to Internet activity. Here's a quote from the Children's Food Campaign:

Companies are shamelessly exploiting gaps in marketing regulations by targeting children online with promotions for junk foods that cannot be advertised during children's TV.

The companies say no, they're not targeting young children inappropriately. In fact, the Cadbury's Furry Tales site, mentioned by critics, will be closed very soon because it doesn't meet the guidelines of parent company Kraft. The site, which features cute cartoon characters on the main page (see below), requests a year of birth for entry from 'supervising grownups'.

Watch for more controversy and possibly more regulations addressing this issue.

'Tis the season to hand-craft

Making gifts by hand is more than a Christmas-season trend--it signals renewed interest in creativity and personal involvement in new and traditional crafts at any time of the year.

This has led to the rise of businesses such as London's Make Lounge, shown above, where experienced and want-to-be crafters can sign up for workshops to learn how to make jewelry, take up knitting, decorate cupcakes and many other activities. Make Lounge also offers kiddie parties and baby shower crafts.

The Ministry of Craft in Manchester is another business that provides a place for learning crafts in the company of other craft-minded people. From sewing to digital photography, lampshades to scrapbooking, this business helps bring out the creativity and inventiveness in its students.

Homemade London is, as its name suggests, a specialist in teaching crafts such as making chocolate truffles, sewing totes and creating a personal perfume.

The beauty of hand-made crafts is that the creators add their own personal touches to individualise every gift...and in the process, they learn a skill they can use to make different items for themselves or for others. It all makes for a happy holiday season for gifters and giftees!

Mia's new look in electric vehicles

All-electric vehicles are starting to capture attention as eco-conscious buyers look for viable alternatives to petrol-powered cars.

The Mia electric micro bus updates a classic favourite, with new technology and distinctive styling that sets the brand apart from other electric vehicles.

Mia, based in France, buys its lithium-ion batteries from the British firm Evida Power. And although Evida's boss sees higher demand in the coming years, he also knows that all-electric vehicles won't become commonplace overnight. “You need some incentive from the authorities, a reduction in parking fees, dedicated lanes and dedicated parking and some authorities would want to see demand before taking the plunge,” he tells the Birmingham Post.

In other words, higher demand depends on infrastructure, which in turn depends on some indication of higher demand.

The Chevy Volt has been having lithium-ion battery problems lately, with a couple of batteries bursting into flames after a simulated crash. Lithium-battery vehicles clearly have different challenges for designers, consumers, and mechanics--sure to make buyers on either side of the Atlantic Ocean stop and think twice before they buy.

Mulberry: Watch this brand grow!

Maybe the world economy is still struggling, but not Mulberry, the UK brand best known for its luxury Alexa and Bayswater handbags. Mulberry is growing and highly profitable, with a lucrative presence in the Chinese market and planned expansion to Europe and South Korea.

Above, as mentioned on the brand's blog, today Mulberry's flagship stores in New York City and London are giving away small treats (fashionably presented) to promote their featured items for holiday buyers. Twitter is part of Mulberry's social media outreach, as well. Watch this brand grow!

Chocolate wins in bad times and good times

“There are some categories in the world that people consume in good times and bad times, and chocolate is one of them.”

This recent quote from Kraft Foods' president for Southeast Asia and Indochina reflects the state of the global chocolate market: Sweet.

Financial analysts confirm that most chocolate marketers are doing well, because consumers like buying an affordable treat when the economy is down...and when the economy is up, they can afford even more luxurious chocolates.

Hotel Chocolat is thriving, with higher sales and profits. It's opening its first store in Scotland and its Caribbean resort/cocoa plantation is creating buzz that boosts the brand.
 
Godiva's marketing is intended to encourage more purchasing of chocolates more often, for three types of usage situations: to give as a gift, to share with a group and for the buyer to eat himself or herself. Godiva is especially strong in the gift-giving category, but now wants to encourage higher purchases for the other two categories.

However, Thornton's, now a century old, is struggling: Its profits are down and it is closing stores to improve margins. (Photo, above, is of Thornton's giant choco bar, made for its 100th anniversary celebration.) Will the holiday buying season give it a sweeter bottom line?

Mega Monday

Depending on your calendar, either last Monday--the final Monday in November--(Cyber Monday in the US) or today--the first Monday in December--is Mega Monday, the heaviest online shopping day of the UK holiday season.

Amazon UK expects that buying will peak tonight at 9 pm. Shoppers using computers, tablets and mobiles will be busy ordering gifts all over the Internet all day today, for a total of 85 million online shopping visits.

To attract buyers, businesses are already featuring low, low and lower prices as discounts and vouchers take the spotlight. Shoppers are hunting for bargains and apparently holding onto their pounds or plastic until they see how deep the discounts will go.
The online auction site eBay is trying a five-day pop-up store in London's Soho district, reinforcing the focus on low prices. QR codes are the key to information and buying in this temporary store. 

Will Mega Monday 2011 have a positive effect on sales and profits?

What about Wi-Fi in stores?

Tesco just announced it will make free Wi-Fi available for all Clubcard members in all Tesco Extra stores, not long after John Lewis announced its free Wi-Fi service availability.

One benefit is that shoppers will be able to do online price comparisons before they buy in the store. Another is that they will be able to check for consumer reviews, look at accessories and complementary products, browse brand web sites, and then be in a position to make more informed decisions.

Will Wi-Fi be a major competitive advantage? IMHO, no. Still, it's another extra that boosts goodwill and serves as a point of differentiation in the crowded retail marketplace. And in today's economic environment, that might be enough to encourage shoppers to choose Tesco or John Lewis instead of competing stores.

Sony switches from style to store

Sony Style stores, open in many major world cities, are going to be redone with a new look that brings to mind the upscale and elegant Apple Store retail ambiance.

First, Sony is going to be using a lot of glass in its redone stores, a hallmark of Apple's modern, spacious retail look.

Second, Sony's displays are designed to show off the products and make them available to touch and test, an important element for today's consumers. Go into any Apple Store at any hour, and you'll see dozens of people using the iPads, iMacs, and iPods on display. Sony can help customers "sell themselves" by allowing them to try products on display and see for themselves how the various features work.

Third, following the lead of Apple, Sony is adding in-store services that customers value, such as on-site repairs, set-up and tech support.

Can Sony capture the cachet that Apple enjoys? The new retail showplace is a good start, anyway.

In search of a mobile payments standard

Starbucks thinks credit card companies, banks, telcos and handset makers are moving too slowly toward one unified standard for mobile payments via near field communications (NFC)--also known as contactless payments--where you simply wave your phone near the till or pay point and the transaction is completed.

Mobile payments are the new new thing. According to forecasts, NFC payments will be commonplace across the UK retail and restaurant marketplace by 2016. Given the huge number of smart phone mobiles in use, this is a possibility. However, consumers don't want to have to juggle multiple payment systems, nor do merchants. And so far, there's no agreement on one standard technology or processing programme. Security is another concern.

During the past year, a number of arrangements have been announced. Orange and Barclaycard, for example, have launched Quick Tap, making NFC payments possible at Subway, Pret a Manger and other retail establishments. Samsung and Visa are readying a deal in advance of the 2012 London Olympic Games.

Starbucks isn't waiting for one standard to be adopted by all parties. In the interim, it's launched its own mobile payment app for the iPhone. Although not NFC-based, the system has proven itself in the United States and will likely be enjoyed by Starbucks lovers around the UK because it speeds up transactions.

Will mobile payments follow the NFC standard? Or will another technology win out, the way VHS beat Betamax in the videocassette standards battle of the 1980s?

Retailers: online Christmas guides

Last week, I looked at some 2011 Christmas window themes. This week, a look at what major UK retailers are doing online to carry through their Christmas themes and attract shoppers through special offers, seasonal merchandise and gift ideas. Will shoppers be in the holiday mood to open their wallets this year?

• Harrods is using vintage images from its archives (circa 1950s?) for its online guide. The black-and-white line drawings are distinctive and nostalgic, very unlike the colourful graphics used by most stores. The Harrods FB page is devoted to fashion for the holidays.
• Marks & Spencer's main Christmas colour is a festive red and this week, the Christmas pages are featuring fine food and wine. The Twitter feed offers special pricing plus customer service assists.
• Selfridges has a 'winter white' theme--'Dreaming of a white Christmas'. Stylish and elegant images. Its Twitter account covers all things for the holidays, including the store's gift ideas.
• John Lewis uses a deep red to border its Christmas pages of gifts, foods, and decorations. John Lewis's Twitter account responds to customer comments, mentions promo highlights and refers service issues to the customer service reps for resolution.
• Debenhams is using the theme 'Christmas made fabulous' with orange and purple colour accents to play up its gifts, promotions and holiday decor offers (below). Debenhams has a FB page with fashions, special offers, contests and more for the holidays and beyond.

The five most meaningful brands in the world are . . .

According to Havas Media, the five most meaningful brands in the world are:

1. Ikea (see page from its catalogue at left)
2. Google 
3. Nestle 
4. Danone 
5. Leroy Merlin

Rounding out the top 15 are Samsing, Microsoft, Sony, Unilever, Bimbo, LG, Philips, Apple, P&G, Mars, Volkswagen, L'Oreal, Walmart, Carrefour, and Coca-Cola.

In the U.K. alone, the most meaningful brands are: M&S, Sainsbury, Unilever, Tesco, Walmart/Asda, Mars, Danone, O2, Starbucks, and Wrigley.

What do these brands have in common? They are authentic, they add to consumers' well-being and they have an impact on consumers' lives. They're enduring, respected and trusted. In short, they have meaning for consumers.

Notice that these brands are global--not confined to a single country or even one region. They're household names in many nations. How can other brands change perceptions and score higher on the dimension of having meaning for consumers?

Holiday Windows 2011

Tis the time of year for holiday window displays. Here is a sampling of themes worldwide during this holiday season:

• Animals. The windows of Macy's San Francisco are featuring adorable animals for adoption from the local SPCA. 
• 12 Days of Christmas. Holt Renfrew in Toronto has put a "12 days" theme to work in a sophisticated way. Above, the partridge in a pear tree window.
• Nutcrackers. Printemps Paris's windows feature Paris landmarks (think Eiffel Tower) in winter, with designer Karl Lagerfeld in miniature (left).
• Santa. Of course, he's coming to town in Melbourne, where the Myer department store features jolly elves and Santa arriving to the delight of young and old.

"Hidden Heroes" of technology: paperclips and more

Paper clips! Pacifiers! Paper tissues! Entrepreneurs of the past developed these products to solve common problems and today, such solutions are quite cheap and readily available.

London's Science Museum has a new exhibit showing these and other "hidden heroes" of everyday technology. It's hard to remember that items like paper clips were once innovative and unusual, truly technological advances over older, homemade alternatives. Today, they're simply accepted as ordinary.

The museum's exhibit is so interesting because it reminds us that technology need not have chips or batteries to be cutting-edge. Which of the products we view as high-tech today will be hidden heroes of tomorrow?

Most trusted family brands: M&S is #1

In a recent survey by YouGov and Isobel, Marks & Spencer was named as the most trusted brand for families. Last year, M&S was #2, and its ascent to the top spot shows how well its advertising is working, according to Marketing Week mag.

Here are the survey results for this year and last year:

Note how many of the top brands are retail companies. Also, how did Innocent manage to improve its standing from #13 in 2010 to #5 in 2011? That's a very impressive result, and my immediate reaction is that its expanded product line and heftier marketing budget are both helping Innocent increase awareness and preference.

Best Buy and Carphone Warehouse Change Direction

Best Buy, the US electronics retailer, and Carphone Warehouse have had a joint venture to operate big-box UK electronics stores since 2008. This week the two confirmed the end of that JV, acknowledging that US retail formats like the big box store don't necessarily fit UK and European markets.

The two companies are still working together, however. Best Buy is buying Carphone Warehouse's ownership stake in Best Buy Mobile (a growing business) and the two are starting a new operation, Global Connect, to retail mobiles and related services in Best Buy affiliated stores within Asia and other regions.

Best Buy is continuing to explore expansion of its non-store retailing, including Best Buy Express kiosks located in airport terminals and other places.

How much will online shopping affect in-store retailing? Will retail kiosks gain in popularity?

Brand Personality Wins for TGI Friday's

Casual dining is a very competitive industry, which is why TGI Friday's is pouring on the personality.

Its all-American atmosphere and menu draw customers, but to encourage frequent repeat visits, the chain embarked on a hiring and training programme that emphasises personality plus. Bartenders who juggle, waiters and waitresses who do magic tricks, and other staff specialities keep customers smiling and satisfied--according to TGI Friday's research.

TGI Friday's UK isn't a super-social brand (it has fewer than 20,000 Facebook likes) but its "We make every visit a party" saying sums up the personality that customers can expect and enjoy when they come for a drink or a meal or both. Best of all, the party changes every time, with different tricks and surprises.

Biggest holiday toy hits of 2011?

The Toy Retailers Association has released its list of toys expected to be in highest demand during this holiday buying season. First, a look back. In 2010, the association said that the following would be the biggest holiday gift sellers:

Lego City Airport, Fireman Sam Deluxe Fire Station Playset, Hasbro's FurReal Go Go Walking Pup, Mattel's Jet Pack Buzz Lightyear, Kidizoom VideoCam, Monopoly Revolution, Moon Dough Barn, Nerf N Strike Stampede, Paper Jamz Guitar, ‘Pumpaloons’ – action game, Sylvanian Families Motorcycle and Sidecar, and ZhuZhu Grooming Salon.

In 2011, the association predicts that these toys will top holiday gift lists:

Doggie Doo (above), Fijit Friends, Fireman Sam Pontypandy Rescue Set, Kidizoom Twist, LeapPad Explorer, Let's Rock Elmo, Milky the Bunny, Monster High Lagoona's Hydration Station, Moshling Tree House, Nerf Vortex Nitron Blaster, Ninjago Fire Temple from Lego, and the Star Wars Ultimate Force Tech Lightsaber Assortment.

After the announcement, the Toronto Star's headline read: Is a pooping dog this year's hottest Christmas toy?

My question exactly. We'll know the answer before long.

There's an app for that: shopping by mobile

These days, most major retailers offer a downloadable app for browsing and shopping by mobile. Want to check Amazon.com's stock and prices? There's an app for that. Want to bid or buy on eBay? There's an app for that.

Waitrose offers a special Christmas shopping app. Sainsbury has apps for meal planning and grocery shopping.

Asda even has an app to compare prices at competing stores as part of its low-price guarantee (illustrated here). Tesco is testing an app to help shoppers find the most efficient route through its stores.

Will retailers offer apps for finding and viewing holiday window displays this year?

Will Internet outposts succeed?

House of Fraser has just opened an "Internet only" retail outlet in Aberdeen. You won't find any shelves of merchandise, no racks of clothing, no inventory of any kind.

This new location is only an outpost: You can browse the store's stock on screen, click to order, and return the next day to try on clothes you ordered or pick up your purchases.

Will such outposts succeed in today's multichannel world? In the United States, JC Penney and other catalog merchants used to have catalog outlets that worked in a similar way, without the Internet interactivity, of course. Some carried a limited range of products, but most were focused on taking catalog orders. Most or all are now gone.

Dell also had a version of this concept at one time, putting small stores or kiosks in shopping centers where customers could try different laptops or computers and ask questions, then order online or via phone. After a few years, Dell closed the kiosks and widened its retail distribution base, allowing customers the choice of trying and buying at the store and being able to carry home purchases for immediate use.

These days, Internet kiosks inside stores are frequently used to let customers locate additional merchandise that can be ordered or obtain details about products available right there. Debenhams is installing many such kiosks to supplement its in-store range. John Lewis is opening limited-range stores with kiosks where customers can view the full range of stock and place orders.

The question is: Will shoppers travel to an outpost merely to browse online offerings? Will limited-range stores generate enough turnover--even with Internet kiosks--to be profitable? Or will multichannel strategies that combine Internet and mobile access from the customer's home or office with traditional store shopping offers be more effective?

Lego versus Mickey: Theme parks battle for visitors

The first LegoLand theme park opened in 1968. Now its owner, Merlin Entertainments, is expanding globally and has just opened the fifth LegoLand theme park, an easy drive from where DisneyWorld is located in Florida, USA.

Merlin operates 77 entertainment sites in 17 countries, achieving £800m annual sales worldwide. Its brands include Madame Tussauds, the London Eye and of course, LegoLand. The company knows its way around the theme park business and its Lego brand appeal is very strong.

LegoLand is also facing competition from other nearby theme parks (Universal Studios and SeaWorld). Florida is home to many other family-friendly attractions, as well. Can Merlin's marketing muscle (and 50 million Lego blocks) help LegoLand Florida beat the Mouse?

Another Successful Byte Night

The most recent Byte Night, held earlier this month, raised over 650,000 pounds to benefit the nonprofit Action for Children.

If you haven't heard of Byte Night, it's the info-tech industry's annual "sleep rough" fundraiser. Corporate teams and individuals sleep out in the elements to raise money for programmes that help vulnerable and neglected children around the UK.

Accenture conducted research about "the generous generation," examining how tech-savvy adults in their 20s and 30s stay involved with the causes they care about. Not surprisingly, the research showed that technology such as social media plays a vital role.

In fact, a lot of technology was used to market Byte Night and recruit sponsors and sleepers. Twitter messages kept the momentum going minute by minute and engaged all participants; a countdown on Facebook (left) reminded participants of when and where to go; organisers and participants used YouTube to share videos of the experience; and LinkedIn was helpful for corporate connections. As shown above, contributors could text their donations, as well.

Congratulations to Byte Night!

KidZania!

Have you heard of KidZania?

Kids from Mexico City to Tokyo and beyond are having fun playing career roles in mini-cities created by KidZania.

The "cities"--spaces in malls--have different areas devoted to occupations such as pilot, veterinarian, and so on.

Now the company, founded in 1996, is expanding rapidly through franchising in different regions. Take a look at this slide show for more.

What makes KidZania even more interesting (from a marketing perspective) is that brands such as the US-based Coca-Cola and Portugal-based Cin are sponsoring areas or props in various career areas of local KidZania spaces. Kids who want to try out medical careers, for instance, play in the Johnson & Johnson-branded infirmary. Cin sponsors areas where kids paint walls as part of construction/home decorating occupations.

What issues are raised by putting brands into kids' hands and minds earlier and earlier?

Made-in-India autos drive into South Africa

The South African car market is alive with import activity from India:

• Toyota Kirloskar (the Indian joint venture of Japan's Toyota) will begin marketing small cars in South Africa from spring of 2012. Shown above is the Etios, one of the made-in-India autos to be sold in South Africa. 
• India's Tata Motors already sells a hatchback, several small car models, its Xenon pickup truck and its Safari SUV in South Africa through a joint venture. Next it will bring its Manza cars and Prima trucks to the market.
• Mahindra & Mahindra has introduced its XUV SUV in South Africa, part of its global expansion.

Other imports competing in the South African market include Peugeot, Fiat, Dodge and Mitsubishi. As the worldwide economy improves, watch for South Africa's car market to become even more attractive.

P&G Says: Thanks, Mum

How does the maker of Pampers nappies, Gillette razors and Olay beauty products tie its advertising to the 2012 Olympic Games in London?

Procter & Gamble--which owns dozens of global blockbuster brands--is planning an emotional campaign to thank the mothers of Olympic athletes. This "Nearest and Dearest" campaign starts with local road shows and promotions offering family tickets to next year's Olympics.

Special events will be held in Edinburgh and Newcastle during October; in Manchester, Nottingham, Birmingham and Milton Keynes during November; in Cardiff, Exeter, Bath and Southampton during January; in Belfast and Norwich in February; and in London during March, just weeks before the Olympics begin.

Mothers are an important target market for Procter & Gamble, which ran a special "Thanks, Mom" campaign as a sponsor of the US Olympic Team during the 2010 games in Vancouver. That Olympic-themed campaign was credited with significantly increasing P&G's North American sales. Will UK mums respond to the "Nearest and Dearest" campaign by buying more P&G brands?

Store brands gain strength

The recession has hit some national brands hard, with pence-pinching consumers choosing to buy store brands instead in many categories. This has been a major trend in groceries for years, with consumer preferences shifting as buying power changes. Store brands deliver value (meaning: good quality at a reasonable price) that consumers desire when trying to stretch the household budget.

Not all store brands are alike, of course. Tesco offers a range of store-branded groceries to provide consumers with several choices of value at different levels. In particular, its Finest store brand is highly favoured, for example, which helps the retailer maintain customer loyalty and compete more effectively against its rivals.


Still, a recent survey finds that consumers simply won't give up certain national brands: Heinz Baked Beans are at the top of this list, which also includes Walkers crisps and Kellogg's cereals.

Store brands have been growing in strength within other retail categories, as well. Marks & Spencer has a new plan for strengthening the image of its store brands, which include M&S Man, Blue Harbour and Per Una (above). M&S showcases some of these brands on its Facebook site, as well as @marksandspencer, the store's Twitter account. The challenge for national brands, then, is to explain their benefits and value proposition compared with what store brands offer.

Who Wrote That Review?

And can it be trusted? This is the key question facing many buyers as they read reviews of goods and services on retail and travel sites. TripAdvisor.com, the travel review site, is being investigated by the Advertising Standards Authority after some hotels complained that some reviews were fraudulent or misleading. The site removed its strapline, "reviews you can trust," from the hotel pages as the investigation continues (although the strapline remains on its restaurant pages and elsewhere on the site).

So many buyers read reviews before they open their wallets that trust and transparency have become major issues for retailers and others who sell online. Recently, some academic researchers devised a method for detecting faked online reviews, indicating the level of attention that this question has raised. Other concerns are whether brands and sites remove negative reviews and whether some reviewers are paid to post complimentary reviews.

Now a group of retailers and brands--including PC World, Dixons, Sony and others--wants to reassure buyers about reviews through the use of the Reevoo Mark (above), a system that aims to have only real purchasers' reviews posted. Reevoo will also ensure that all reviews (bad or good) will appear. With the holiday shopping season fast approaching, trust promises to be a vital element in decisions about online buying.

The Angry Birds Empire

Angry Birds, the hugely popular mobile game by Finland's Rovio, has expanded into a major international brand empire.

Since its release in 2009, the game has been downloaded more than 350 million times. The Angry Birds brand now appears on stuffed animals (birds and pigs, of course), iPhone cases, socks, ties, lunch boxes and--within a few years--it will be the focus of a feature film.

Soon, when consumers visit a Starbucks coffee shop and play Angry Birds, the leading scores will appear on a 'leaderboard' in the shop, adding a very public social dimension to the brand.

Another priority for Angry Birds is getting its game onto Facebook, where Zynga's games (such as Farmville) are among the most popular.

The brand's undeniable global appeal has brought unauthorised competition, such as the Angry Birds game at Window of the World theme park in China. Still, with customers buying 1 million stuffed Angry Birds toys each month, demand for Angry Birds offerings looks strong--until the next mobile fad steals the spotlight.

Brands Look East for Growth

Some well-known brands are popping up all over Asia, where sales to status-conscious middle-class consumers are driving higher growth.

The Asian rights to the Aquascutum brand are now owned by a Hong Kong company that's opening stores in China and elsewhere in Asia. The brand's traditional British heritage and long-standing reputation for quality has helped build a loyal following among Asian consumers. The stores reinforce the upmarket image through careful presentation and understated ambiance.

Burberry (below), not surprisingly, has a growing presence in China, as does Hermes, due to rising demand for high fashion products.

Nike is another Western brand enjoying high sales in China, because its brand personality appeals to status-minded buyers of sports apparel and equipment.

At the same time, now that the Beijing Olympics are in the past, and the crowds of visitors have thinned a bit, retail vacancies are visible in some areas. This means prestigious retail locations are again available.

Meanwhile, Chinese brands are looking West for expansion possibilities. Through events such as the European Showcase for Brands of China, they're bringing their products to UK exhibitions and seeking to win new markets beyond their home country.

Retailers Go for Lifestyle Magazines in Print

Ocado is about to launch its new consumer magazine, Ocado Life, to be included with all of its grocery deliveries from this week. In contrast to the online grocery retailer's virtual magazine, which features recipes and seasonal entertaining ideas, the printed version is a life-style mag for inspiration and information.

Ocado is the latest retailer to work with August Media, a publishing firm that has also worked on magazines for IKEA, Whole Foods Market and others.

More on retailer-sponsored mags:

• Harrod's has its own printed mag, and in fact has established its own media arm. 
• ASDA and Tesco, among other retailers, also publish widely circulated printed mags.
•  John Lewis has its own mag, working with John Brown Media, a firm that has worked with Waitrose and other brands.

This is all part of a broader trend toward brand-sponsored content in magazine format. Beyond retailers, brands in many categories, from clothing to cars, are seeking to connect directly with customers by providing content tailored to the interests and needs of each brand's audience. How many brand-sponsored mags will customers actually read and reread?

Boots vs Superdrug

The Guardian has started a new series, looking at two rival retailers along the same street or in the same shopping center. The point is to see how they're differentiated and what each does best for its customers.

The first matchup in this series is Boots versus Superdrug, high street merchants that sell health products, beauty products and pharmaceuticals.

The Guardian points out that Boots has a loyalty card (very good for rewarding repeat purchases) and convenient in-store kiosks for instant ordering of digital photos. The chain's private brand products were another plus.

Superdrug, as the Guardian notes, also has a loyalty card (with a mirror on it), a fresh decor and plenty of employees to assist customers. In this first matchup, the paper puts Boots slightly ahead of Superdrug, in part because Boots appears to have a wider range of merchandise.

Now for a brief bit of marketing background on these two chains.

The first Superdrug opened in 1966, and today the chain has more than 900 stores, although most have no pharmacy. Want to interact with Superdrug? Try Facebook, YouTube, Twitter and the company's own blog.

Boots has a long history, starting in the late 19th century. These days, it has nearly 2,500 stores and a thriving private-brand business for beauty products. You can keep up-to-date with Boots on Facebook or visit its YouTube channel.

Grow, grow, grow

Nearly every marketer wants to stimulate growth in sales and profits. But what are your options? Glad you asked--here's a quick guide to the four main growth strategies for your marketing plan:

1. Sell more of your existing products in existing markets or market segments. This can mean getting current customers to buy more in each transaction, or getting current customers to buy more often. Thornton's, for example, is looking to encourage chocolate buying not just at Easter and Christmas but on other occasions, as well.
2. Sell existing products in new markets or segments. Audi, the German automaker, is doing this by seeking to expand in India beyond the biggest cities to smaller areas.
3. Sell modified or new products in existing markets or segments. McDonald's does this all over the world, constantly adding new menu items, such as Chicken McBites, which started in McDonald's in Australia and are being tested in the US.
4. Sell new products in new markets or segments. Also known as diversification, this strategy can be implemented by distributing through existing channel arrangements in the new market, starting new marketing activities in new markets, or acquiring a company or product in a new market. Not easy, and often risky, but potentially rewarding for the business that has sufficient financial strength to diversify and hold on until a brand has been established--or has the intelligence to leave a market if competitive pressures are too high (or consumer acceptance is too low).

World's Most Valuable B2B Brands

Marketing Week just announced its top-10 list of the world's most valuable business-to-business brands. In reverse order, the list is:

10. Petrabras

 9. Intel

 8. Accenture

 7. Cisco

 6. ExxonMobil

 5. SAP

 4. Oracle

 3. UPS

 2. General Electric

 1. IBM

Interestingly, many of the firms on this top-10 list are tech-related and spend millions of pounds every year on building their brands.

IBM, the top brand, spends heavily to connect with business customers in many ways, from sponsoring televised rugby to arranging for its supercomputer Watson to compete on the US game show Jeopardy. Watson even has its own Facebook page, a necessary ingredient in marketing to business customers as well as consumers worldwide.

Debenhams 'likes' social media marketing

Debenhams has more than 55,000 'likes' on Facebook. The retailer also maintains a Beauty Club Facebook page with more than 90,000 'likes' plus a Beauty Club Blog with cosmetics tips and new product news.

That's not all. Debenhams posts messages on a storewide blog, posts videos on Debenhams TV, offers a Debenhams app, and offers an e-mail newsletter with special offers for subscribers.

In short, Debenhams 'likes' social media marketing.

The retailer's head of brand and advertising tells New Media Age that its Facebook audience fits into three segments: young mothers, busy working women and women with older children who have time for social media interaction. Now it is starting to determine the best times of day and days of the week to communicate with each segment via social media.

Debenhams is also awarding Facebook Credits (redeemable for virtual products in social media games) to customers that 'like' the store's Facebook page and provide an e-mail address. To reckon whether the programme provides a return on investment, metrics will be used: 'We plan to monitor the behaviour of the e-mail addresses to see how many collected [Facebook] Credits but didn't return to interact with Debenhams', says the retail exec. Smart marketing implementation and evaluation.

Can Louboutin Protect Its Red-Soled Shoes?

Christian Louboutin has a red-hot hit on its hands--er, on its soles. Specifically, its red-soled shoes are high style, high priced and very popular with celebrities and socialites. In the US alone, Louboutin sells 240,000 pairs of red-soled shoes every year.


Now Louboutin has gone to court to protect its trademark red soles against YSL, which is also marketing high-fashion shoes featuring red soles.

The legal battle is far from over. Last week, the judge refused to stop YSL from selling its red-soled shoes. As reported in The Independent, the judge was particularly concerned about the ability to trademark a colour:

'[The judge] went on to argue that any restriction of colour was potentially detrimental both creatively and commercially. It would be like Pablo Picasso trying to sue Claude Monet for using an indigo too close to the "colour of melancholy" that defined the former's Blue Period, [the judge] suggested."'

Can Louboutin protect its red-soled shoes under today's intellectual property laws? Marketers are watching this case with intense interest, because colour is an important element in branding and packaging, not just product differentiation.

Why so much blogging about Tesco and Asda?

Tesco, Asda, Sainsbury, Dixons and other national/international giants are popular subjects of blog entries and textbook case studies. Why do I continue to blog about these kinds of firms?

Reason #1: They're doing interesting things with their marketing strategy and tactics. Being big, they have the resources and capabilities to try new marketing ideas, analyse the results in an objective way and then decide what works and what doesn't. When something new succeeds big, it's big news. When something big isn't successful, that's also big news.

Reason #2: These companies are constantly being covered by the media, so it's easy to find out what they're doing and link to multiple reports about their marketing activities. Also, being public companies, they tell their investors a lot about their marketing, which means readers (and lecturers) can dig deeper to learn even more about what a particular firm is doing.

Reason #3: You know who they are. I always like writing about smaller marketers, because they have a lot at stake when they make a marketing decision, and some may very well grow up to become the Dixons of the future. But to show marketing concepts and theories in action, it's also good to base some case studies and write-ups on businesses that readers know or are customers of.

Of course, I also blog about global marketing firms that are in the public eye, such as Walmart, Nestle, Kraft, Danone, Samsung, Lenovo and more. These, like the Tescos and Asdas of the world, are market leaders and their marketing makes a difference locally and internationally.

Turning data into information

As a marketer, you collect a lot of data all the time: Sales, profit margins, buying patterns and habits, retailers' preferences, number of competitive items, and so on. Turning that data into information you can actually use for marketing planning can be a challenge.

Many marketers are testing ways to convey data visually, to help bring out patterns and anomalies. The old saying, A picture is worth a thousand words, really is true.

Now companies are developing new ways to visually convey data points so the conclusion jumps out at the viewer. Above are two colourful data presentation examples.

Another approach is to marry maps and data, as SAP and Google are doing. This has the potential to help retailers understand footfall patterns, the perimeter of market areas and more.

As a result, marketing plans--which are already electronic, to be shared throughout management ranks--are becoming more colourful to help decision-makers grasp the conclusions instead of trying to consider individual data points in isolation.

Ethical Brands

A new Goodbrands survey shows that Innocent Drinks (left), Co-operative Bank, and Marks & Spencer impress ethically-minded consumers as among the most ethical UK brands. 

The head of M&S Sustainable Business tells Marketing Week: 

First and foremost, we are very clear that going green will not cost the consumer extra . . . Why should a consumer pay more for a product that has protected the planet and not exploited people? M&S must manage that cost and not pass it on to the consumer.

Divine Chocolate--45% owned by cocoa growers who produce Fairtrade-marked cocoa beans--is another brand recognized for its ethics.

Over time, consumers who choose ethical brands tend to be more loyal and accept premium prices for what they view as premium products (because these products don't hurt the planet, for example, or are socially responsible).

Today, no brand can afford to be seen as unethical. With the speed of social media, brands that don't act ethically are quickly exposed.

Can Pandora Recapture the Marketing Charm?

Pandora--a jewelry firm known primarily for its intricate charm bracelets--began selling shares of stock last year, with great fanfare. The company was doing very well, riding on a wave of consumer love for its choose-your-charm fashion.

In the past year, the price of gold and other materials has moved steadily upwards. Jewelry has become more expensive as a result, even as some buyers reconsider or postpone purchases because of economic uncertainty.

Recently, Pandora announced that sales would not be growing at double-digit rates, sending the share price into the basement. In fact, 2011 turnover is expected to be about the same as 2010 turnover.

In the US and UK, two of Pandora's key markets, sales declined during the previous quarter, hurting profits as well. Revenue is down in Australia, but up in Asia, so Pandora does have some areas of strength.

Pandora positions itself as 'affordable luxury' but the chairman tells the Guardian: 'We are not a luxury goods business. If we start to pretend or think we are a luxury goods business, we've got a problem.' 

What next for Pandora? It markets in 55 countries, through a channel of 10,000+ stores, including 500 Pandora-brand stores. It reaches out to buyers through Facebook, YouTube, and apps. How quickly can the company change its marketing to restore the charm of its brand?

New! Links to marketing planning resources

Looking for more information about the external marketing environment, consumer demographics, brand strategy and other aspects of preparing a marketing plan?

I've assembled a list of more than 50 links to useful sites where you can find data, see what companies are doing, learn about specific planning issues and get the latest news about markets and marketing.

Click here or go to the "Updated list of links" link on the right side of this blog's main page to see these links, arranged by category.

Carmakers accelerate into Brazil

Several Chinese carmakers, a Japanese carmaker and a South Korean carmaker are opening facilities in Brazil to expand into the South American market. The growing middle class is one reason for higher car purchases, and available consumer credit is another.

Some observers worry that consumer spending will plummet as interest rates increase, inflation advances and rising household debt slows car purchases. In fact, the economic situation is unsettled, yet global automakers are betting on the profit potential of long-term consumption patterns as they build factories and extend distribution channels.

Among the market leaders in Brazil are Fiat, Ford, GM and VW. Tomorrow, however, Nissan, Chery, Hyundai and other automakers expect to see their vehicles in showrooms and roads all over Brazil and beyond.

Do Celebrity Endorsements = 'Sell'-ability?

According to researchers Anita Elberse and Jeroen Verleun, sports celebrity endorsements do increase product sales (and a company's share price). Of course, there are risks: The celebrity may become injured, involved in controversy or otherwise acquire a negative image that could hurt the product's reputation and sales. Tiger Woods is just one public example, as Nike and other brands well know.

Yet celebrity endorsements can be effective, even if consumers don't want to admit they'd be persuaded by this tactic. In fact, social media can magnify the effect of celebrity endorsements, a study suggests, with word-of-mouth spreading stronger buzz to a much larger audience.

Alastair Cook promotes Samsung]' Series 9 laptop

So celebrity endorsements remain a popular marketing element in many industries, including tech. When the fit between endorser and product is logical and understandable, consumers will pay closer attention--and are more likely to believe and buy.

Green labels proliferate

The Carbon Trust's Carbon Reduction Label and the European Commission's Ecolabel are two 'green label' programmes designed to inform consumers about the environmental impact of the products they're considering. The original ecolabel is Germany's Blue Angel, started in 1978.

These days, individual nations as well as regions and retailers are bringing their own green labels into use. The world's largest retailer, Walmart, has been trying to get its scheme going for the past two years, but progress is slow.

Now, according to one database, there are more than 400 ecolabels in use worldwide, with additional labels on the way. More labels may only confuse consumers, especially since each label's rating methodology differs from those of other labels.

Still, despite the current sluggish economy, more consumers are buying green products, research shows that consumers are buying green products. No wonder more marketers want to show off their Earth-friendly initiatives.

Retail Trend: Smaller Stores

John Lewis plans to open smaller stores to keep costs low while expanding into new markets. The real benefit, however, is that shoppers in a hurry can rush in, find what they want and leave quickly--quite a convenience compared with the time needed to navigate floors in a traditional department store.

Some of these shoppers are multichannel shoppers, meaning they buy online as well as in a store, and simply seeing a local John Lewis will start the buying process and reinforce the retailer's brand.

Walmart, the world's largest retailer, is testing smaller stores in different markets. Its Express format fits into smaller stores and offers an edited range of frequently-purchased items. Lower costs for rent, fewer employees needed and more convenience for shoppers who want to buy a few products.

Meanwhile, with financial failures shutting down some well-known chains in Europe, US-based retailers are looking to open across the continent. They can land good store locations and build on their brand awareness to expand sales beyond current markets. Above, Abercrombie & Fitch new Paris branch attracted attention on its opening day.

Marketing Bentley wristwatches and Lamborghini laptops

'Cars are indicators of our lifestyle now and their design content is an expression of our times'.

This is what the chief exec of Cultwork told CNBC Business about the trend toward upmarket car brands partnering with other firms to extend their prestige to different products. Here are just a few examples: 

• Bentley has teamed with Breitling on a range of cobranded wristwatches that combine 'British chic' and 'Swiss tradition'. 
• Mercedes has its name on a designer wristwatch made by TagHeuer, inspired by the Mercedes SLR sports car. 
• Lamborghini has its brand on a laptop made by Asus, emphasising both style and speed.
• Jaguar fans can now have the famous V12 engine in their living rooms, in the form of a glass-topped coffee table.

What products are not suitable for cobranding with luxury car names? How far can upscale car brand extensions go?

Burger King Cooks Up Fast-Food Marketing

June, 2011 in Rostock, Germany

With more than 11,000 outlets worldwide, BK has a solid competitive position in the high-stakes world of fast food. I spotted this Burger King sign on a busy street in Rostock, Germany. Whether Hamburg was the original home of burgers or not, Burger King is quite popular in Germany and across Europe.

Its German Web site features local TV adverts, downloads, menu information, and e-cards for viral buzz, and much more. It also links to BK's German Facebook page and to BK's German YouTube channel.

Whoppers aren't the only menu item drawing attention for BK. The company has introduced a special upmarket burger made of Wagyu beef to attract UK customers who want a gourmet treat.

In the United Kingdom, smartphone users can download the "King of Apps" to locate and navigate to the nearest Burger King restaurant. The BK UK Facebook page has not only "likes" but "check-ins" to encourage participation. And the BK UK YouTube channel posts the latest adverts. What will BK do next to heat up its fast-food marketing?

Niche chocolates expand

Updating the sample marketing plan in my Essential Guide to Marketing Planning, here's a quick look at one of the European competitors that Lost Legends Luxury Chocolatier would have to face if it (hypothetically) expanded into the Baltic region.

Simply Chocolate, based in Copenhagen, is an all-natural, upmarket brand that emphasises quality ingredients rather than fancy packaging.

At left is one of its brown boxes with a quirky saying in English to attract attention. Another box (with the same assortment of 8 chocolates) was labeled "Forget Johnny Depp." Who could resist packaging with clever sayings like these?

Simply Chocolate's product range includes chocolate bars, choco-covered nuts and more. Currently, its chocolates are available at only two locations: In a boutique within Stockholm's Illum department store (see photo below), where I bought a few boxes last month, and in a storefront at Tivoli Gardens in the middle of Copenhagen. Limited distribution only reinforces the brand's exclusivity. Worth trying if you're ever in the area!

News of the World: Thank you and goodbye

News of the World, once the best-selling Sunday paper in the UK, is printing one final Sunday edition (seen here) and closing down. Allegations that News of the World has been involved in unethical phone hacking and payoffs to police prompted Virgin, Boots, Specsavers, O2, Sainsbury, Ford and many others to stop advertising. The loss of advertiser revenue, added to the many questions being asked about the tabloid's activities, hastened the paper's closure.

Advertisers want to be associated with companies and causes that their customers, employees, investors and other stakeholders like, trust and believe in. A scandal such as the one unfolding around News of the World was so big and so public that neither the paper nor its advertisers could afford to wait to make decisions about how to proceed. In fact, when Virgin found out its ad was already printed for the final News of the World Sunday edition, it tweeted to say there was nothing it could do to stop the ad from appearing.

Other media vehicles began courting advertisers even before the closure was announced. In an e-mail to advertisers who usually use News of the World, the Mail wrote (in part): 'In light of the public outcry with the News of the World and also hints that key advertisers such as yourselves may be pulling away - is there anything we can do to support you this coming weekend in terms of copy?' With the closure just two days away, both the Mail and the Mirror are preparing for a massive print run to capture News of the World readers this Sunday.

Now that News of the World is gone, management is scrambling for explanations and UK officials are planning to investigate. Few advertisers would have risked their reputations by remaining with the tabloid if it had tried to go on. Trust takes time to build but can be destroyed very quickly if there's no transparency.