Thursday 25 August 2011

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.


Monday 22 August 2011

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.

Tuesday 16 August 2011

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.

Thursday 11 August 2011

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.


Monday 8 August 2011

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.

Friday 5 August 2011

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?

Wednesday 3 August 2011

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.

Monday 1 August 2011

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.