Marketing almost-new electronics

Refurbished products--returned to the manufacturer or store because of physical or functional defects--are increasingly popular with price-conscious consumers. The manufacturer (or a third party repair specialist) fixes the blemish or replaces the defective part, cleans the item up and repackages it with a full warranty, ready for purchase at a price lower than the identical new item.

Most of the time, 'refurbs' are marketed online, mainly by the manufacturer selling directly to customers but sometimes by retailers. For example:

• The Apple Store UK has a special online section devoted to refurbished Macs, iPads and other electronics. This is one of the very few ways to buy a product that ordinarily isn't discounted by Apple or its channel partners. Another channel is through Apple's eBay presence, where refurbs are featured (see above).
• Curry's offers refurbished laptops from Hewlett-Packard, Toshiba, Apple and other manufacturers.
• Staples sells refurbished laser printers, desktop computers and other equipment for home or office use.

Even after the economy returns to vigorous growth, refurbs are likely to remain popular among consumers who want gadgets that work as well as brand-new items but cost significantly less.

Japan's many brand mascots

Mascots from Fukushima prefecture

Hello Kitty is only the tip of the cute brand iceberg in Japan. Many prefectures, cities, companies and causes have their own cuddly mascots, adding brand personality with a high cuteness factor much appreciated in Japan. Mascots can attract attention and encourage positive attitudes, paving the way for marketing places, ideas and activities.

Recently the fifth annual mascot competition was held, with 244 mascots from around Japan (including the two shown above) competing to be named the cutest. More than 70,000 attendees posed for photos with their favourite mascots and enjoyed the festivities.

Japan's national tax agency has its own cuddly mascot, designed to promote electronic filing of tax forms. The Liberal Democratic Party is about to introduce a mascot designed for the country's new prime minister. Train lines have their own mascots, too.

Japan is home to what is possibly the only mascot school in the world, where people inside costumes learn to interact with children, how to walk and how to project kindness or evoke other feelings.

Cute may be, well, cute, but it also leaves audiences smiling, and that's a good marketing approach for any product or brand.

Marketing the Wiggles: A new era begins

Do you remember the Wiggles? Twenty-one years ago, four young men from Down Under writing happy music that brought kids (of all ages) to their feet with a smile on their faces.

I saw them a few years ago during one of their world tours--the theater was sold out, of course--and everybody had a rollicking good time! I was most enchanted by Captain Feathersword and Wags the Dog, not to mention the energy of the guys in blue, red, yellow, and purple.

This month marks the retirement of the original Wiggles. (Click here to see a gallery of Wiggles history.) After entertaining youngsters on every continent, performing 7,000 shows, broadcasting a highly popular pre-school TV series in Australia, and selling 23 million DVDs and videos, the founders want time to be with their own families. Before retiring, they auctioned their famous Big Red Car for charity.

The Wiggles have made mostly smart business decisions during their career, starting with hiring pros to manage their brand, working hard to break into the big time, making succession plans to replace members as needed, trying to plan for a life outside the business and being honest with customers. The brand continues on in 2013 with new Wiggles joining the group. Watch for more shows, more merchandise, and more apps (such as the learn-your-alphabet app already available on iTunes). 

Wallace and Gromit Hang Out at Google+

Wallace and Gromit and their friends are starring in a new online ad promoting Google+ as a way to be together with friends and family (in a virtual way) on Christmas.


Heartwarming and a wee bit sentimental, the video is available in English (either UK or US versions), French, German and Portuguese. Not your usual holiday campaign, and a fun way to promote the service.

Social Media Marketing, Starring the Rolling Stones

The Rolling Stones performed a 50th anniversary concert in London last month . . . and now this global phenomenon continues to roll along with enthusiastic fan involvement via skillful, broadly based social media marketing.

The official Rolling Stones website features links to the band's Facebook page (11,500,000 likes), Twitter (248,000 followers), Tumblr, Google+, YouTube (29 million views), Pinterest, Instagram (4,700 followers), RSS feed, and a free newsletter.

Plus plenty of social media mentions from the Stones' participation in the giant Superstorm Sandy Concert at New York City's Madison Square Garden. 

A band from the 60s is very smart about cutting-edge marketing. Want official merchandise? The Stones have their own online store. Pay-per-view concerts on your mobile? In the testing stages. Happy anniversary to the Stones!

Save the planet by recycling old clothes

For sustainability reasons, Marks & Spencer and H&M are both inviting customers to donate old or unwanted clothing and receive a discount on new purchases. The stores (or their partners) handle behind-the-scenes logistics of getting old clothes to the next step in the recycling process.

From H&M, recycled polyester

This is part of a broader movement to keep usable materials away from landfills and make better use of the world's resources. Popular retailers like M&S (927,000 Facebook likes) and H&M (13 million Facebook likes) can make a real difference when they communicate this message and reward customers for participating.

• H&M, the Swedish fast-fashion retailer with a global presence, already markets products made from recycled materials, such as this top made from recycled polyester. Now H&M has a deal with Germany's I:Collect to collect shopper-donated clothing from the retailer's stores and repurpose the textiles for other uses. From February 2013, shoppers who donate will receive an H&M voucher.

From M&S, shwopping

• M&S has been partnering with the charity Oxfam to promote Shwopping: Shoppers drop off unwanted clothes at the retailer's branches and pick up a discount voucher. The latest twist is that employers are signing up to host drop boxes in their offices, to make it more convenient than ever for consumers to do something positive with their unwanted garments.

Tesco's troubles with Fresh & Easy

In 2006, Tesco announced it would enter the US market with a new chain of fresh-food stores, Fresh & Easy, to open in 2007. Tesco's strategy experts had noticed a gap in the retail market between small convenience stores and large supermarket outlets. Fresh & Easy was designed to fill the need for an easy-to-navigate store with a wider variety of farm-fresh fruits, vegetables and freshly prepared foods for shopping convenience.

Unfortunately, the US venture has caused Tesco endless headaches. Fresh & Easy has struggled to attract and retain loyal customers, to position itself in a way that's meaningful to customers and to build a well-differentiated brand. Early on, it established an expandable logistical operation to serve hundreds of stores, only to discover that the model needed to be adjusted to the retail reality of the market.

Year after year, the losses mounted. At the start of 2012, Fresh & Easy was 'temporarily' closing some underperforming stores. Its parent then postponed the projected break-even date to 2013 . . . and later postponed the projected break-even into 2014.

Now, at the end of 2012, Tesco has announced it will give Fresh & Easy and its 199 remaining stores a strategic review. In other words, Fresh & Easy will probably be sold or closed. 'It's likely, but not certain, that our presence in America will come to an end', the CEO told reporters.

What happened? Well, the global financial crisis, for one thing. When Tesco opened Fresh & Easy, 'not even the brightest economists in the world could foresee the unprecedented crisis in the markets about to engulf the world', writes Tesco's CEO, Philip Clarke, in a blog post today. And it's true that the states where Fresh & Easy had stores were hard-hit by economic woes.

Yet the economy is only one factor in the challenge that has cost Tesco dearly. Early on, retail experts warned that Fresh & Easy would have difficulty capturing sales and profits from very well-known competitors like Trader Joe's, Costco, Walmart and Whole Foods Markets. A major Tesco investor stated publicly that he doubted Tesco would be able to reach its financial goals for Fresh & Easy. Tesco initially budgeted very little for advertising that would build brand recognition, another decision it later reversed in an attempt to build its name and build a following.

What's next for Fresh & Easy?

Christmas toys 2012 (with ghosts of Christmas past)

This year's lists of top toys for Christmas include a number of favourites from the past, including Legos, Furby (a hit in 1998 for the first time) and Cabbage Patch Kids (30 years after their debut under this brand).

• The Toy Retailers Association's 2012 list of Dream Toys includes a mix of traditional and electronic toys like LeapPads and Legos.  
• Hamley's list of top toys includes Subbuteo, Moshi Monsters and some of the popular toys from the Dream Toys list.

Zhu Zhu Pets, hot toys from previous years, aren't on the lists for 2012, and their lack of popularity is one reason that toy company Character Group is seeing sales decrease. Character Group's Peppa Pig, Scooby Doo and Fireman Sam toys are still selling in Europe, but Zhu Zhu Pets have fallen out of favour this year.

Will Zhu Zhu Pets return to the Dream Toys list in 2013, 2014 or beyond? What about Furby, Cabbage Patch Kids and Moshi Monsters?

Net-a-Porter turns 13 in 2013

Net-a-Porter, the popular online luxury fashion retailer now owned by Richemont, becomes a teenaged business in 2013, a year of new initiatives.

• Becoming a print publisher: 'It isn't a secret that Net-a-Porter will be publishing a major fashion magazine within the next 12 months or so', says CEO Mark Sebba.
• Expanding to Hong Kong and Asia, with a few adjustments: 'There are nuances in terms of body sizes in different markets. But beyond that we believe there's a certain segment of clients who are global', says Net-a-Porter's Holli Rogers. 
• Featuring exclusive collections by brands such as Lover (which is based in Australia).
• Doing even more to reward each EIP (extremely important person), loyal and high-spending customers who enjoy special privileges such as personal shoppers, priority ordering and more.
• Apps, microsites and other tech-driven tactics to help its customers find and buy the fashion they want, when they want it.

Net-a-Porter is an e-commerce expert and a power in fashion retailing. Print publishing is an entirely different business, however, presenting different marketing challenges. It will be an interesting year ahead for Net-a-Porter!

Big stores, big data, bigger profits and better shopping experience

This shopping season, every retailer of any size will be capturing as much data as possible about transactions, including which products are purchased (and in what combination), how often each customer buys and through which channel (in the store? via app? online? catalog?).

By analysing such big data, retailers can gain insights into customer behavior and prepare marketing programmes to strengthen relationships with loyal customers (and turn occasional shoppers into loyal buyers).

A McKinsey study from 2011 suggests the enormous potential of mining big data: 'We estimate that a retailer using big data to the full has the potential to increase its operating margin by more than 60 percent'.

Amazon, in fact, has boosted sales by analysing big data to present customers with product recommendations based on previous purchases and browsing history. Customers benefit because the shopping experience is tailored to their needs and preferences.

Waitrose and John Lewis, part of the same corporate entity, now have a joint customer insight director to help mine big data for actionable information. 'Customer insight is an increasingly sophisticated area and a central part of modern retailing', explains the group chairman. (At left, the first cobranded ads from these two stores.) 

A Harvard Business Review blog post observes that smaller retailers may be unable to afford data collection and analysis on this level, possibly putting them at a competitive disadvantage. On the other hand, there's an app for that--big data analysis, I mean. Of course, this is oversimplification of a complex situation, but the point is that customers have more power than at any time in the past, so retailers of all sizes must be ready to satisfy shoppers' needs or risk losing relevance and market share. Big data is only part of the solution, but it's a big part.

Fortnum and Mason, 2012

Fortnum and Mason's traditional holiday hampers are back, and this year, the company is ready for high demand. In 2011, technical glitches prevented Fortnum from filling a lot of orders--a costly problem for the firm, not to mention the problem of negative customer reaction.

For 2012, Fortnum revamped its supply chain and its info tech back-office support. Now its orders are well ahead of hamper sales two years ago.

And yes, Fortnum may be more than 300 years old, but it uses 21st century communications like online videos and Facebook to promote its hampers. It also maintains a Twitter account. Oddly, neither the FB nor the Twitter accounts are featured on the retailer's home page, although a Google search located them right away.

Fortnum also presents an online 'magazine' (not a blog) with articles about new products, background about where some foods come from and more info.

What about traditional holiday windows? Look for displays that tell the story of Dick Whittington, famous as Lord Mayor, if you visit Fortnum before the end of 2012.

Reckitt Benckiser adds to its health and hygiene brands

Reckitt Benckiser (RB) is the company behind such best-selling brands as Clearasil spot cream, Air Wick air fragrances, Strepsils throat lozenges and Cillit Bang cleaner.

The company's vision 'is a world where people are healthier and live better'. Its purpose 'is to make a difference by giving people innovative solutions for healthier lives and happier homes'.

 With the acquisition of Schiff Nutrition International, RB has now expanded its health and hygiene portfolio of products. Before the acquisition, health-related products accounted for 21% of RB's revenue, hygiene products accounted for 38%, home products accounted for 21% and the remaining 20% of revenue was provided by pharmaceuticals, foods and portfolio brands.

Looking at digital communications, RB recently concluded a deal with WebMD, a health information website, that will reportedly allow RB to more precisely time and target ads for Mucinex and other products to consumers. The idea is that as consumers use WebMD to search for symptoms of flu, colds and similar ailments, RB will be able to understand when and where flu outbreaks occur and immediate implement online ads highlighting appropriate products. WebMD says no personal data or identification will be involved in this arrangement.

What's next for RB as the company seeks to help consumers live healthier and happier lives?

Singles Day boosts online shopping in China

More than a decade ago, college students in China decided to start a new tradition of celebrating Singles Day on 11 November (you know, 1111--four singles). The idea was to give gifts to good friends in the hopes of helping romance blossom.

Now Singles Day has become perhaps the busiest cyber-shopping day in China. Alibaba (one of the country's most popular e-commerce sites) received orders for more than £ 1 billion worth of goods in just the first 13 hours of this year's Singles Day. By the end of the day, total purchasing was reportedly even higher than on Cyber Monday in the US.

Smaller online merchants such as Seventh Princess (photo above) saw significant sales increases, as well. Online travel companies promoted special savings, and retailers with store locations also offered special deals to attract buyers. And of course, delivery services had to be ready to put all those packages into the hands of recipients, another major plus for the day's economic activity.

Social games go mobile

What game is this? And who markets it?

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It's Candy Crush Saga, but you knew that. And if you look carefully at the upper left corner, you can see that King.com is the marketer.

In a very short time, Candy Crush Saga will be available to play on mobile devices. Bubble Witch Saga is already available for iPhones and iPads. Bubble Witch Saga is also available for Kindle Fire and King.com is thinking about broader use on Android platforms.

Mobile could make all the difference in King.com's future. Why? Because King.com is looking to challenge market leader Zynga, the company behind FarmVille, Words with Friends and other Facebook-based games.

Players have been spending less within Zynga's Facebook games in recent months, while King.com's revenues have been increasing. Zynga has experienced changes in top management and reduced its workforce as it works on a new strategy to restore rapid growth.

Meanwhile, Facebook indicates that more than half of its users log on from mobile devices. As a result, if a Facebook-based game isn't available for mobile use, users can't play as often (and that affects revenues for game developers as well as Facebook).

King.com's CEO is moving more toward mobile, saying: 'I believe that in a year from now, this is going to be a standard'. In fact, King.com's revenues from mobile games are already exceeding its expectations. Will King.com be able to overtake Zynga, boost revenues and become the number one social game company through its focus on mobile?

Tis the season for pop-up stores

Just in time for the holidays, Walmart and Mattel have partnered on a new virtual pop-up toy store in Toronto's subway system. Want to buy? Scan the code, and the purchase will be completed and sent to your home (no extra charge for shipping).

Microsoft opened pop-up stores around North America for holiday shopping and to coincide with the launch of its Windows 8 op system.

The Beatles pop-up store is driving around New York and Los Angeles, promoting the recent release of Beatles' music on vinyl (everything old is new again!).

Chanel's London pop-up store has perfumes and fragrances ready for holiday gifting, complete with special gift wrap.

Paperchase opened a holiday pop-up inside Selfridge's Oxford store, with gift wrap and other seasonal items.

Where will the next pop-up appear?

Buy it now or never: Zara's fast fashion cycle

Constant sales have conditioned consumers to the idea that they can wait for the best price, wait until the last minute to buy. That approach won't work with Zara, the fast-fashion affordable clothing chain owned by Inditex.

Founded in 1975, Zara rings up nearly €14 billion in annual sales worldwide. Gone are the traditional spring and fall fashion collections, priced at full retail when released and later marked down to sell at a discount before the new collection debuts. Gone are the weekly or monthly sale promotions. The focus is on up-to-the-minute styles, priced to sell today (without markdowns tomorrow).

Inditex maintains its own manufacturing facilities and partners with small shops for finishing details close to its headquarters in Spain. It has great flexibility to make more of a very popular item or switch to something else as customer tastes change. Store managers report daily on customer requests, what's hot and what's not, so the experts at Zara's main office can design, produce and ship updated apparel in about two weeks.

This fast fashion cycle means that consumers must have a different attitude when they shop at Zara. 'With Zara, you know that if you don't buy it, right then and there, within 11 days the entire stock will change,' the editor of Tank tells the New York Times.

Coca-Cola's 70-20-10 marketing

In March, Coca-Cola's marketing chief explained Coca-Cola's marketing investments this way:

"We invest 70% of our resources in existing products, 20% in innovations related to existing products, and 10% in pure innovations."

As an example of the 70% investment, Coca-Cola introduced the new 375-ml "pocket size" bottle earlier in the year. Minute Maid Pulpy, created for China, is a pure innovation that has become a best-seller throughout Asia.

Coca-Cola retains the #1 position in InterBrand's ranking of 100 best brands. It's launched a number of sustainability initiatives in recent years, including the PlantBottle (recyclable, biobased packaging).

Most important, Coca-Cola is embracing social media to engage its brand advocates. The CMO says his thinking has changed over the years: "I used to think that loyalty was at the top of the pyramid of classic marketing awareness model, but now it’s advocates."

Coca-Cola is reaching out through Facebook and other social media to stimulate dialogue with brand fans and remain relevant to its target market. The company has more than 54 million Facebook likes, by the way, and 630,000 Twitter followers. It's on YouTube, Pinterest and Flickr as well.

Christmas windows 2012

Harrods, Selfridges, Fenwick and other high street stores are already displaying holiday windows in all their finery. Here's an early look at a few of this year's themes.

Harrods 2012

Fenwick 2012

Selfridges 2012

• Harrods' windows feature Disney princesses and fairy-tale characters wearing elegant gowns designed by Oscar de la Renta (Snow White, above), Missoni and other famous designers. 
• Selfridges' "not your usual Christmas windows" at the Oxford Street flagship store showcase a giant gingerbread building, mini-ponies and other eye-catching features to call attention to seasonal and gift merchandise.
• Fenwick, in Newcastle, unveiled its holiday windows with Santa, elves, reindeer and other traditional lovable mechanical figures--including an iPad-like list of elf and safety tips.

Yes, competitors are stakeholders

Stakeholders (also known as publics) are groups such as community residents, media representatives, stockholders, financial analysts and others who have an interest in or some influence on marketing performance. Obviously, customers, employees, managers, suppliers, government regulators and others can directly influence a business and its performance, meaning they're particularly important stakeholders.

So why consider competitors as stakeholders? Because every company can, directly or indirectly, affect the performance of its competitors. Often a marketing plan is designed to capture market share from a particular rival or reinforce customer loyalty in the face of competition from a new up-and-comer. Doesn't that make you a stakeholder in your competitors' performance (and your competitors stakeholders in your performance)?

Consider:

• Comet's recent descent into administration is largely due to intense competition from online electronics retailers. If those online competitors didn't exist, Comet would likely still be in business. The competitors intended to increase market share and turnover, and the unintended consequence was that Comet couldn't survive.
• Amazon's Kindle Fire directly competes with Apple's iPad. Amazon actually offers a head-to-head comparison to show how its product beats the iPad. Clearly, both Amazon and Apple are competing for the same customers, with implications for market share and for ongoing revenues from downloaded content.
• BSkyB has seen customer enrollments slow due to more competition from Virgin, BT, and others that are offering good deals to attract customers. Subscribers aren't one-time buyers; losing a customer means losing future revenue, just as gaining a customer means gaining future revenue. The stakes are high.

Show respect for your competitors and take their actions seriously, because what they do may very well change the course of your marketing. I'm not suggesting that competitors consult with each other or collude, because antitrust rules make certain kinds of competitive agreements and coordinated actions like price-fixing illegal.

I am saying that a healthy, competitive industry is in the interests of all participants, including customers. New choices emerge when many companies compete, whereas customers face fewer choices when firms like Comet go into administration. In fact, competition can spark real creativity and innovation when companies are motivated to overtake rivals or recapture market share from rivals.

UPDATES: (1) Natalie Massenet, founder of Net-A-Porter, believes competitors can and should be collaborators. Read more in my 2016 post here.

(2) For quotes from four companies that consider competitors to be stakeholders, look at this 2014 post from my US marketing blog.

Tesco delists New Covent Garden soups

Supermarket giant Tesco recently announced that it is delisting New Covent Garden (NCG)'s range of fresh chilled soups. A Tesco official explained: “We regularly review our range to reflect changes in the products customers buy.”

Why is this marketing news? Here's the background:

• Tesco introduced its own label "New York Soup Company" fresh soups range last year, part of the grocery giant's strategy to increase sales of its own products. It also stocks its Tesco Finest soups. (How many chilled soups can or should one supermarket stock?

• Before launching New York Soup, Tesco had delisted NCG in 2011 but reinstated it after resolving "pricing issues." In fact, NCG's shelf slots were expanded once the brand returned to Tesco's distribution. Reportedly, Tesco has sold 20,000 units of NCG soup every day for the past decade.

• NCG has had four owners in 25 years. Currently, it's owned by Hain Celestial, a US-based food company that also owns Linda McCartney's food brand, and is headed for expansion into European markets. Will this take some of the sting out of being delisted by Tesco?

• Note that Tesco's New York Soup uses tub packaging, whereas NCG does not. With some buying trends suggesting consumer preferences for tub packaging, this may be a factor in NCG's future sales until the company plans a redesign.

• UK purchasing of private-label foods is on the rise. Tesco's own labels are doing well (and may well be more profitable than selling someone else's food brands). Still, will consumers be unhappy that NCG is no longer available through Tesco?

• Before the delisting, nearly 20% of NCG's sales were through Tesco stores. NCG clearly faces a major challenge in making up those sales through other retailers.

The trend toward multibranding

The company formerly known as Kraft (now Mondelez) is aggressively pursuing multibranding among its billion-dollar brands, such as by creating a chocolate bar combining its Oreo brand and its Cadbury brand. A Mondelez marketing director states: "Combining these two extremely popular brands to create Cadbury Dairy Milk with Oreo seemed like a natural fit and offers an exciting opportunity for retailers to help boost sales and capitalise on the phenomenal reputation of each brand individually."

Multibranding is also common among brands that aren't owned by the same parent company. For instance, Hindustan Lever is working with Future Group to create a cobranded line of baked goods for certain Big Bazaar stores in Mumbai.

This multibranding trend helps the brand owners build on image, recognition and loyalty to launch new products in the increasingly crowded marketplace. The brands may also combine financial and marketing resources to develop and launch new products, adding to their potential strengths. Finally, multibranding can help a new product attract the attention and support of retailers or other channel members, giving it a boost during introduction and beyond.

McDonald's markets to the world

Every continent has a McDonald's restaurant, and more are on the way. By 2013--that's just a few months away--McDonald's will have 2,000 locations in China and more than its current 3,300 in Japan. The company is also expanding in India, where it will soon open all-vegetarian restaurants to cater to local tastes. McDonald's has operated in India since 1996, always avoiding beef, but the addition of vegetarian-only locations is a new approach for the global fast-food giant.

One of McDonald's biggest growth areas, however, is France. By giving French customers what they like (such as smaller sandwiches, table service, specialty cheeses and so on), McDonald's has increased the size of the average transaction in France well above the level of the average transaction in its US restaurants.

Speaking of the world of McDonald's, the fast-food firm has been bringing the world to UK restaurants with the return of the "Tastes of the World" menu. Above, the Spanish Grande.

What's ahead for Carrefour?

One of the original hypermarket pioneers, Carrefour has been trying to find a profitable balance between large- and small-format stores, food and nonfood merchandise, traditional and digital retailing.

Like Tesco and other retailers, Carrefour has been testing virtual stores (see photo) set up in busy areas where shoppers can buy items using a proprietary store app, and arrange for convenient delivery.

But Carrefour is also rethinking its global store network. It recently sold its stores in Colombia (to refocus on core markets) and withdrew from Singapore (because it couldn't compete effectively with local retailers). Of the 9,000 Carrefour stores, 5,000 are convenience stores, many operated by franchisees.

The uncertain economic climate throughout Europe is slowing purchases of non-essential nonfood merchandise. To regain sales momentum, Carrefour wants to expand its product mix in foods and carefully edit its nonfood selection. It's also allowing store managers more control over merchandise assortments and other decisions.

What's ahead for this €91.5 billion retailer?

The Ferrari train and social media

Earlier this year, the sleek, bright red, high-speed 'Ferrari train' (real brand name: Italo) began service in Italy. You can see its stylised running rabbit logo at left.

Owned and operated by Nuovo Trasporto Viaggiatori, a startup headed by Ferrari's chairman Luca Cordero di Montezemolo, Italo now connects 11 stations in 8 major Italian cities. Fares are very competitive with the price of intercity air travel, and the roomy seats and other amenities set Italo apart from ordinary train service.

This startup is a high-stakes project requiring a combination of careful engineering and careful marketing for long-term success. The Ferrari train captured a lot of media attention in its early months, with reporters and passengers commenting on its cinema car, its free Wi-Fi Internet access and all the other details that contribute to the overall experience. Now it has to capture sufficient market share to reach the breakeven point and become profitable.

Italo is reaching out to passengers in multiple social media: It has more than 225,000 Facebook likes, more than 19,000 Twitter followers and 368,000 video views on YouTube. It's also offering advertisers the opportunity to reach passengers with ads on the side of the train, in snack areas and on the Italo's website.

Italo's high-speed railway competitor is the state-owned ItaliaRail Alta Velocità (right), which has a long history of service and is busy upgrading to retain loyal passengers. Alta Velocità's newest bullet trains (by Bombardier) will begin running next year, adding more speedy and efficient alternatives for passengers who want to travel from city to city quickly and in comfort.

How will airlines in Italy react to all this railway competition?

Cadbury wins battle for purple

Cadbury has been fighting Nestlé for four years over which company has the legal right to use a particular colour of purple on product packaging. Cadbury filed a trademark on Pantone 2685C in 2008, touching off the legal battle with Nestlé, which was using the purple for its Wonka brand.

In December, 2011, Cadbury won a court ruling that gave it the legal right to trademark the purple. Then Nestlé appealed that ruling, saying a colour isn't trademarkable.

Two weeks ago, the High Court ruled that Cadbury is entitled to trademark the colour for use on milk chocolate bar packaging.

The judge noted: 'In my judgment it would not be right to say that the colour purple is distinctive of chocolate generally'.

In fact, Nestlé points out that the ruling actually 'protects our brands by further limiting the range of goods for which Cadbury’s application may be registered'.

Cadbury is already promoting 'our famous colour purple' and introducing new chocolate bars with its purple packaging.

Will the two food companies continue battling over colours in the future?

Same-day delivery sharpens retail competition

You see something on Argos or Karen Millen, click to buy it, and then . . . wait to receive the package a day or two or a week later? That's so twentieth-century.

These and other retailers are now speeding packages to customers on the same day, for an extra fee, adding to the competitive pressure while improving the value equation for customers who want their purchases right away.

If you're shopping on the Argos site, for example, you can click to reserve a particular product at the nearby store. Once you've entered your postal code, you'll have the option of clicking to have Shutl pick the item up and deliver it to your door in 90 minutes or less.

UK-based Shutl has been so successful at attracting customers that it's now planning to expand to a number of US cities, with investment from UPS. Shutl recently made it to the top of the Startups 2012 list (although it was founded in 2008).

Amazon UK offers evening delivery service for orders placed that day. In the US, Walmart is testing same-day delivery for the holiday season, and eBay has also tested same-day delivery.

More competition means more innovation and more choices for customers.

The World's Most Ethical Companies

Ethisphere has released its 2012 list of the world's most ethical companies, including 102 US-based and 43 non-US businesses.

Since 2007, 23 businesses have remained on the list every year. Among these six-time honorees are: Aflac (insurance), American Express (credit), Fluor (engineering and project management), General Electric (consumer and business goods and services), Milliken (chemicals, coatings, flooring), Patagonia (outdoor clothing), Rabobank (financial services) and Starbucks (coffee/cafes).

Starbucks is especially interested in sustainability as it designs the coffeehouses of the future (see one above). The idea is to try to source construction materials locally and make the store stand out from its surroundings. The signs say this is a Starbucks, but it looks very different without the usual decor and architecture!

Legoland has big plans for small bricks

This month, Merlin Entertainments Group celebrates the first anniversary of its Legoland theme park in Florida; last month, it held the grand opening of Legoland Malaysia.

The company (owner of the London Eye, Gardaland, the Blackpool Tower and other attractions) has been steadily expanding Legoland beyond the theme parks already open in Denmark, Britain, California and Germany.

'We’re really focused on our target group — families with children, ages from 2 to 12, so all our activities are specially designed for this group', explains the general manager of Legoland Malaysia.

In other words, Legoland differentiates itself from Disney and other competing theme parks by its targeting. The brand recognition that Lego has among youngsters and their parents worldwide reinforces the appeal of these family-friendly theme parks. Actually, Lego fans of all ages flock to the parks to enjoy the impressive mini-sculptures of famous buildings and other structures created out of Lego bricks.

'Love Me Do' celebrates 50 years

Love Me Do just celebrated its 50th anniversary of arriving on the pop music charts. Five decades later, Beatles 'mania' continues.

Fans gathered in Liverpool this week to sing this first Beatles hit and break a world record, organised by the Beatles Story exhibition. Nostalgia marketing has brought Love Me Do back to make headlines all over the world.

Of course the list of Beatles merchandise goes on and on, not just LPs, posters, books and movies but also newly designed T-shirts sold at Disney World and Trivial Pursuit games to test your knowledge of the Fab Four's history and impact on pop culture.

Yes, I'm a Beatles fan (Paul was my fave, back in the day) and it's wonderful to see new fans among youngsters and everyone else.

Halloween: Spooky sales success!

From costumes and candy to party supplies and pumpkins, Halloween accounted for only £12 million in UK consumer purchases just a decade ago. This year, UK purchases of Halloween goods and services are expected to exceed £315 million.

Why this spooky sales success? One reason: Contemporary culture is filled with books and movies about zombies, vampires and other fun/frightening creatures--and Halloween simply continues this fascination. The global marketplace is another reason: Halloween celebrations are increasingly popular in the US and some other countries.

Finally, don't bonbons, bats, top hats and black cats seem more fun and less fearsome than the economic gloom of recent years?

A growing number of companies are creating limited-edition Halloween sweets, cakes and biscuits (see above). Winchester is one of many areas using Halloween-themed events to attract visitors. Supermarkets and other retailers are promoting Halloween merchandise, with window displays and online specials to catch the eye and the purse of shoppers. 'Tis the season to be scary, at least until October 31.

Supermarket fashion: Morrisons joins the trend

Shop for tops and socks where you buy tomatoes and soups? Yes, the market for clothing sold in supermarkets is expanding, year by year, both in stores and online.

Morrisons has just announced its plan for the Nutmeg brand of children's clothing. Clothing director Tim Bettley explains: 'Customers tell us that they want a range which is fashionable but hard-wearing. We’ll also meet their need for simpler clothing that they can pick up as they do their food shop'.

Created by George Davies of 'Next' fame, George has given Asda momentum in building a nationally-known apparel brand with wide appeal and significant revenue opportunity. George's Facebook page (more than 95,000 likes) features the latest fashions and promotions.

Tesco's F&F fashion brand is also on Facebook (nearly 212,000 likes), with a virtual fitting room and savings vouchers plus, of course, photos of current fashions. The retailer opened Jubilee-themed F&F pop-up shops earlier in the year in busy London areas such as Covent Garden, complete with augmented reality fitting-room technology.

Sainsbury offered its range of Tu clothing in stores only for the brand's first 8 years. Now the retailer will be putting Tu online, just in time for year-end holiday shopping. Collections designed by Gok Wan (above) have helped Sainsbury boost sales and compete against its retail rivals.

Primark on Oxford Street and in Spain

Primark, the 242-store retail chain owned by Associated British Foods, opened a new flagship store on Oxford Street last week.

With 80,000 square feet of affordable fashion and video walls to capture shopper attention, this newest Primark is as up-to-date as it can be...and within walking distance of the 70,000 square foot Primark that opened at the other end of Oxford Street in September, 2007.

Primark's financial results are trending upwards as it continues its European expansion. In fact, Primark opened its first store in Spain in 2006 and this month, despite the ongoing debt crisis, it opened two more stores in Spain. By the end of November, Primark will open six additional stores in Spain--for a total of 35 stores in a country where the economic situation remains uncertain but Primark sees distinct opportunity.

Spain is the home of fast-fashion giant Inditex, owner of Zara and other retail chains. How will Inditex react to Primark's invasion of its home market?

New marketing moves by Starbucks

Want a Starbucks coffee first thing in the morning? Now the company is selling Verismo single-serve brewing machines. Just pop in a coffee pod, add water, press the button and have a hot latte in a few moments--without leaving your kitchen (or home office).

This is a multinational marketing effort, aimed at capturing a solid share of the fast-growing market for single-serve coffee made at home.

Like Nespresso, Starbucks will begin selling replacement coffee pods directly to consumers through its proprietary e-commerce website.

What if you're in a supermarket or a petrol station and you want to sip a Starbucks espresso? Look for Starbucks on the Go, vending machines being installed in stores, forecourts, airports and other places, featuring the company's Fairtrade espressos. Coming soon to a Starbucks near you: A new drive-through lane so you don't even have to park to order your favourite latte.

Product lifecycle sustainability

Simply put, product lifecycle sustainability refers to having sustainability 'built into' every phase of the product lifecycle, from the original product concept to raw materials to production, distribution, consumption and eventual disposal. Above is the award-winning Boots product sustainability cycle, showing how the company takes ecological factors into consideration throughout the lifecycle of the product.

Tech products represent a special sustainability challenge because of concerns over rare earth metals used in their manufacture. Europe and individual countries have regulations requiring special recycling for electronics products. Apple has its own recycling programme; some PC makers participate in group recycling efforts that comply with EU regulations.

Another issue is understanding the ecological impact of a product. Stonyfield Farm, which markets yoghurts, is taking a high-tech approach here by using software to measure the carbon footprint across every phase of the lifecycle. This becomes the basis for goals to reduce carbon emissions.

Walmart, along with other consumer products companies, has been working on a sustainability index that will show the ecological impact of products. The retailer is also urging PC manufacturers to set their systems to 'sleep' more quickly, which will save energy.

As more stakeholders inquire about product lifecycle sustainability, more marketers are likely to invest time and money in this issue.

Marketing with a larger purpose

What are your values--and are they integrated into your marketing?

Sainsbury's ad

Cilla Snowball, chair of the Advertising Association (and on the board of Comic Relief), recently told an audience of advertisers that 'purpose, values and consistency' are three key principles for showing how a brand makes a difference: 

'Consumers want to connect with brands that have a purpose and if that’s at large in your TV ads and expressed in a number of other ways you’ll do better than brands that don’t'.

Snowball, chief executive of the agency that handles Sainsbury's advertising, mentions the store's strapline 'Our values make us different' as a good example of integrating purpose into the marketing message and the organisation's operations.

Other UK retailers are also very active in purpose-led marketing. Marks & Spencer's Plan A has set ambitious goals for going green in merchandising, production, operations and almost every other function. M&S recently introduced the world's most sustainable men's suit. It's the result of a complex and sustainable supply chain created with the purpose of developing a product that satisfies customers' needs and protects the environment.

John Lewis is another retailer known for strong values that guide its decisions. From the employee ownership model to the green transportation initiatives, ethical sourcing and use of alternative fuels, John Lewis incorporates purpose into its daily operations and marketing. Long after the latest fashions fade, values will endure and remain important to customers as they make decisions in the marketplace.

Coffee, Tea and Nespresso

Nespresso has been marketing premium single-serve coffeemakers and coffee capsules for decades--and brewing up high profits for parent company Nestlé.

Its posh positioning is reinforced by adverts featuring movie star George Clooney and branded boutiques where stylish coffee machines are the stars of the show. In fact, Nespresso recently announced it will build another factory to keep up with worldwide demand.

The single-serve coffee market has attracted a lot of competitors in recent years, however, and Nespresso is now busy defending its market share while launching new products to maintain revenue momentum.

Currently, Nespresso is introducing upmarket machines that brew one top-quality cup of tea at a time, for example. But competition may grow even more intense in the tea segment as Unilever thinks about opening a chain of trendy tea-machine boutiques.

In the core coffee market, Nespresso recently lost a legal battle in Germany to prevent competitors from selling capsules that fit Nespresso machines (but cost less than Nespresso's replacement capsules). Its patents were upheld by the European Patent Office, on the other hand. Meanwhile, Starbucks is launching its own single-serve coffeemaker and already makes replacement capsules to fit the Keurig machines that are popular in North America. What innovations will the market see next?

PepsiCo markets to local tastes

PepsiCo has US roots but years of experience satisfying international taste buds.

Making a big play for market share in China, where it's been selling soft drinks and snacks for more than 3 decades, Pepsi is introducing flavours favoured by local consumers, from hot-and-sour fish soup potato crisps and cola chicken crisps to wolfberry oatmeal.

The Chinese market is so large and still growing so rapidly that Pepsi must forge alliances with local firms, build new production plants and expand its supply chain to keep up with projections.

Pepsi is vying for market share with a vast variety of competitors in China...not only local firms like Want Want but also long-time rival Coca-Cola, which uses superstar athletes and pop stars in its ads.

Then again, Pepsi's exclusive 'King of Pop' cans featuring Michael Jackson were a sensation in China, showing that Pepsi understands local tastes in music as well as in food.

The marketing power of promotional merchandise

Can giveaways (free pens, pads, mugs and so on) do anything for a brand? Research by the British Promotional Merchandise Association indicates that recipients do feel a positive connection when they get promotional merchandise--and most are inclined to do business with the brand in the future.

Promotional merchandise is cost-efficient and can serve as a brand reminder for days, weeks or months. Think of all the free branded T-shirts still being worn years later! Or the many branded pens that businesspeople pick up and use again and again. 

There is a distinction between inexpensive branded merchandise and more expensive gifts like concert tickets and free trips, which may raise ethical concerns. Many countries do not allow pharmaceutical firms to give away valuable goods or services as a way of influencing doctors, for example. And India has announced that doctors must pay tax on freebies they receive from medical marketers, such as foreign travel.

Byte Night aims for £900,000

Founded in 1985, Byte Night takes place this year on 5 October. It's the IT industry's annual sleep-rough fundraiser, founded in 1998 with 35 'sleepers' who raised nearly £35,000 for the registered charity Action for Children.

In 2012, Byte Night is celebrating its 15th anniversary by aiming to attract 1,000 sleepers and raise £900,000. Sleepers will participate in London, Cambridge, Thames Valley, Scotland and Belfast to raise both money and awareness of the problems of homeless children. 

Byte Night's marketing activities include messages on LinkedIn, Twitter, Facebook and its own website, plus mobile fundraising and downloadable tips and toolkits to support sleepers' fundraising efforts. Its website also features endorsements by Sally Magnusson and other celebrities, as well as the logos of corporate sponsors like RBS and Symantec.

Good luck to all Byte Night sleepers!

Rain, mobiles and the cloud help Domino's UK grow

Televised sports, bad weather and pizza takeaway have been a wonderful sales combination for Domino's UK.

'Instead of going out to a restaurant, people tend to order in. When the weather turns nasty we always see sales turn upwards', says the CEO.

Between the Euro football championships and two weeks of Olympic sports, Domino's has boosted its revenue and profits this year...and now the pizza delivery firm has an appetite for growth on the continent.

Today, Domino's announced its acquisition of the Swiss franchise as European consumers caught in a difficult economic situation continue to substitute takeaway for dining out.

Domino's UK is ready for expansion, putting its online ordering system into the cloud where network capacity can be adjusted to meet demand. It also offers pizza ordering apps for different mobile operating systems. Anything that makes pizza ordering more convenient is likely to help Domino's build relationships and sales, especially in bad weather.

Olympics + Bradley Wiggins = higher UK cycle sales

High profile sports can have a lot of influence on consumers' attitudes and purchasing decisions. First it was Great Britain's many cycling medals at the 2012 Olympics. Then it was Bradley Wiggins' victory at the Tour de France (see above). The result: UK consumers are more enthusiastic than ever about bicycling, with many buying their first bicycles or upgrading to better cycles. That's good news for marketers coping with a challenging economy.

Cycle Surgery, a brand owned by Snow+Rock, saw sales of road bikes increase during the Olympic Games. Its marketing director observes:

"After the Tour de France and Olympics, the UK is definitely on the world map as a cycling nation and hopefully people will stick with it".

At Evans Cycles, website traffic spiked and sales of road bikes surged by 35% after the Olympics and the Tour de France. A number of bike shops in Colchester are also noticing the difference since this summer's events. The manager of Cycle Revolution says:

"The last two or three weeks we are getting people buying road bikes, saying they are inspired by what they have seen on TV".

Now how many consumers will find the Winter Olympics so exciting that they buy figure skates or skis?