Sunday 29 April 2012

Year of the Dragon at Beijing Auto Show

Daimler's new 'smart Dragon' car
As many as 800,000 people are attending this week's auto show in Beijing, attracted by dozens of new concept cars and new model-year cars. China is the world's largest market for passenger vehicles; luxury cars accounted for nearly 8% of Chinese auto sales last year. SUV sales are strong, and brands such as Jeep are popular in China for the outdoor lifestyle they represent.

A number of models have been named for the Year of the Dragon, including a super-compact smart car from Daimler (above) and luxury cars such as the Rolls-Royce Year of the Dragon Phantom. The bespoke Phantom, available with many custom options, sold out the entire year's production in only 8 weeks--indicating that the appetite for upmarket consumer goods continues to be very strong in China.

The Aston Martin Dragon88 costs 5 million yuan, not as much as the Phantom, yet buyers are crowding in to look at it and pay deposits, since only 88 of these cars will be produced. For a gallery of photos from the show, click here.


Wednesday 25 April 2012

Procter & Gamble goes for Olympic gold

As one of the sponsors of the 2012 London Olympic games--now only 93 days away--Procter & Gamble wants to make its corporate name as well known as the many product brands it offers: Gillette...Tide...Ariel...Duracell...Pampers...and dozens of others. (Not Pringles, which it just sold to Kellogg.)

P&G's annual worldwide marketing budget is an eye-popping £5.9 billion, and it's reportedly spending about 1% of that budget on sponsorship and marketing related to the London games. Positioning itself as the 'proud sponsor of mums', the company is offering free Olympics tickets and posting videos about the athletes and their mothers. Pop-up events, advertising and many other marketing efforts are in the works.

Why put P&G in the spotlight after decades of making brands the stars? Marc Pritchard, global marketing boss, explains that consumers want to know a lot more about who they're buying from and what that company stands for:
The reason it has become more acute recently is the transparency that has come with digital technology. People want to know who is the company behind the brands. What are the values? Are they interested in more than making money? What is its purpose?

Sunday 22 April 2012

Walmart and ethics

Traditionally, Walmart has been known for its high ethical standards, not allowing outside companies to buy even a cup of coffee for merchandise buyers, to avoid any influence or conflict of interest.

Asda, like all Walmart companies, has an ethics code governing internal activities and also standards that apply to smaller and local suppliers as well as to international suppliers.

Now reports of a major bribery scandal involving Walmart's Mexican division are raising questions about the company's commitment to ethical actions. The corporate board of directors has authorised an investigation of allegations that its Walmart de Mexico chain paid bribes to expedite permits for new stores throughout Mexico, violating not only the firm's ethical code but also U.S. laws forbidding such illegal payments. U.S. officials are also examining the evidence to determine what happened. Were bribes paid to pave the way for expansion, higher turnover and increased market share in Mexico?

Tuesday 17 April 2012

Coca-Cola and the BRIC countries

Brazil, Russia, India, and China are helping to boost Coca-Cola's turnover: Its latest quarterly results show that volume growth rose by 20% in India and 9% in China, two of the company's fastest-growing markets. So what is Coca-Cola doing in the BRICs?
  • In Brazil, Coca-Cola is investing heavily to expand production facilities and promote its beverages, with an eye toward the 2016 Rio Olympics.
  • In Russia, Coca-Cola has opened its 15th production center in anticipation of higher demand during the 2014 Sochi Olympics.
  • In India, Coca-Cola faces higher costs for raw materials, packaging, and transportation, and it has begun trying to pass these costs along in the form of higher prices as peak consumption periods approach. It recently raised some prices in India, as did its archrival, Pepsi.
  • In China, Coca-Cola is using mobile marketing and social media marketing to reach out to younger consumers. It is also introducing smaller size bottles (priced lower than larger bottles) to stimulate more purchasing.

Sunday 15 April 2012

A run on Royal Mail stamps before price rises

Many people are buying Royal Mail stamps in bulk before the price of first-class postage rises by 30% on 30 April. The price increase is needed to maintain the current level of service (deliveries are made from Monday to Saturday). To save money, some European countries have slowed the delivery of mail and reduced the number of days that deliveries are made, but the UK has decided to maintain its current delivery levels for now.

Demand for postage is so high this month that Royal Mail has put a limit on the number of stamps each shop can buy before the price increase goes into effect, saying:
'We are more than happy for retailers to receive the normal commercial return they obtain on stamps and no more than that'.
'These limits are in place for all retailers so we can balance customer demand with the need to protect Royal Mail’s revenues'.
Once shops reach their order limit, Royal Mail will not restock them until after the price increase. Some charge that Royal Mail is profiteering or engaging in restriction of trade, and consumers and businesses are generally unhappy about the steep increase (not surprising--the 2005 price increase, which was much smaller, wasn't greeted with positive reaction either).

However, with the rise of digital communication, Royal Mail and other postal services have seen their volumes drop year after year. Royal Mail points out that it is now delivering fewer pieces of mail to more addresses than ever before. It asked for price increases to attempt to reach a break-even point and maintain service.

Wednesday 11 April 2012

Marketing the Titanic

One hundred years ago this week, the RMS Titanic (above, leaving Belfast on a sea trial) set sail and then sank. (Test your knowledge--take the BBC's quiz here.)

After hundreds of books, movies and TV shows about the epic tragedy, the century-old event continues to capture the public's imagination and now has become a marketing theme:

James Cameron's Titanic has been released in 3D and is back in cinemas for a limited time.


Belfast's newly-opened Titanic Centre (left) tells the story of the shipyards that built the ocean-liner. The grand opening of this new building drew 30,000 people for a 3D light show. This area is attracting hundreds of thousands of tourists who want to learn the story behind the legend.

The Merseyside Maritime Museum in Liverpool has an exhibition about the Titanic. Because the White Star lines had its head office in Liverpool, the Titanic was registered in that city and has a close connection with it.

The genealogy company Ancestry has a large collection of records about the passengers, calling attention to the people (and to the hobby of genealogy, where Ancestry is a major player). Looking for ancestors? Check it out.

Monday 9 April 2012

Marketing tourism during the Olympics

Holidays at Home - Rupert Grint
For UK tourists who will be going to the London area for this year's summer Olympics, the Holidays at Home Are Great campaign encourages visits throughout Britain and Northern Ireland with 20.12% off meals, lodging and other vacation expenses. And for those who want to escape the London crowds, the campaign encourages travel to many outlying areas (like Bridlington, where Rupert Grint likes to surf).

The Tourism Authority of Thailand is targeting Londoners in particular who want to spend two or three weeks away during the Olympics. More than 500,000 people have watched the authority's YouTube videos. Its Tumblr account posts beautiful photos of 'Amazing Thailand' and engages the audience by inviting them to share their images via Instagram, Facebook or Twitter. 

Tuesday 3 April 2012

Blog anniversary #3

This blog began three years ago, on 3 April 2009 (with a post about the environment). In the coming months, I'll be blogging about everything from the London Olympics (again) and the Queen's Diamond Jubilee (again) to Tesco (of course) and other high street retailers.

More blog posts about branding are on the way, more about Comic Relief and more about online privacy...mobile marketing...advertising...and much, much more. I'm happy you're along on this journey.

Monday 2 April 2012

The green side of Unilever

Unilever has set the ambitious goal of doubling sales while slashing its eco-impact by half buy 2020. The European head of Unilever says:
"We will prove to the world that this is the right plan and this is also the right sustainable plan for business."
As the company's illustration shows, product packaging and transportation packaging together account for 73% of its environmental footprint. Shrinking or otherwise changing product packaging--without putting products at risk--will make transportation packaging smaller or lighter or both, which in turn will cut shipping costs and save fuel as well.

Now Unilever is opening the door to firms and entrepreneurs with innovative ideas for revamping its packaging technology and other green projects. A good idea!