Wednesday 27 June 2012

"How to" adds value to a brand

Many brands post free "how to" guides to help customers learn new skills or do a better job of buying and using products. Maybe you'll buy now, maybe you won't. The real added value is that the firm or brand becomes a trusted expert that you, the customer, can rely on, which is smart marketing for the long term.

No password or purchase is required, just a few clicks will bring you to a how-to site that teaches you something new and gives you a positive attitude toward the sponsor.

A few examples from different industries:
  • Want to learn how to pack clothing to make the most of space in your suitcase and avoid crushing everything into a wrinkled mess? Louis Vuitton's Art of Packing guide demonstrates how to go about this, step by step. 
  • Tesco can show you how to cook everything from lemon curd to sushi. Just click to see videos and tips, or search for recipes rated by consumer reviewers on a scale of 1 to 6 stars. There's even a food glossary for handy reference.
  • Dixons wants to teach you tips for buying appliances and electronics so you'll be happy with your purchase. You'll learn how to decipher computer jargon, choose the right size TV or pick a washing machine that fits your family's needs.

Saturday 23 June 2012

Market share challenges

Companies often announce their long-term market share goals, not only to guide strategy but also to signal competitive aggressiveness and give stakeholders (employees, customers, suppliers and more) a very positive view of the firm's future. Of course, once goals are set, the firms must also measure and explain their progress toward these future targets.

Actually determining market share isn't easy for some industries or products . . . but it's very easy in the automotive market, where performance measures such as the number of car registrations are readily available. Numbers alone don't tell the whole story: it's important to look at trends over time and see the big picture of what's happening in the overall market.

The auto lobby group ACEA believes European car sales will again shrink this year, which means automakers will be fighting each other for sales there rather than increasing the size of the overall market. Given the difficult economic situation and the intense competitive rivalry, achieving share increases will be a real challenge.

Opel has been losing share in Germany since 2005. Now it has set a goal of reversing the trend and attaining a 10% share of that market in the coming years. Can Opel turn that goal into reality?

Meanwhile, South Korea's Kia and Hyundai are putting extra marketing muscle into connecting with sports fans in Europe, with the result that their market share is going up. As they continue to move upmarket, how deeply will these companies cut into the share of European car firms that have traditionally been strong in their home market?


Thursday 21 June 2012

Tweet for Tea

BOS Ice Tea wants to get people all around South Africa sipping its iced teas and talking about the brand.

What better way to build buzz than to offer a free can of tea in exchange for a Twitter post using the brand's hashtag?

That's what BOS is doing with its new high-tech vending machine, nicknamed BEV, which releases a can of tea every time someone tweets using the correct hashtag. The tweet should be directed to @BOS, with the message #BOSTWEET4T.

"Our goal, while sampling, is to create fun, interactive and inspiring environments to do so," says the cofounder of BOS.

But hurry--the tweet will stop releasing tea after Friday, 22 June.

Tuesday 19 June 2012

What about Walgreens buying into Boots?

Walgreens, a US-based retailer, has invested heavily in Boots, with an option to merge the two chemist chains by 2015. Walgreens operates 8,200 stores and enjoys a 20% share of the US retail pharmaceutical prescription market, filling 819 million prescriptions every year. (Compare that market share to 2003, when Walgreens had just 13% of the US market.)

Its roots date back to 1901, and it wants to continue its financial growth through expansion outside the 50 states.

By spending £4.3bn for a 45% ownership position in Boots, Walgreens hopes to not only increase turnover but also move more decisively into the European market via Boots' operations.

Both businesses have strong store-label brands and good store locations. What changes will occur if Walgreens and Boots merge in 2015? How will customers react to the combined company?

Monday 18 June 2012

The top UK social brand is . . .

According to Headstream, the leading UK social brand in 2012 is Innocent, maker of smoothies and fruit drinks.
Headstream cites Innocent's sense of humour and distinctive voice. Joe McEwan, communities manager, at Innocent, comments on the brand's social media success: “We’ve always wanted to build actual relationships with our drinkers. It started with talking to people on our packaging, inviting them to call the bananaphone, meeting them at events we put on, and so on. It naturally extended into digital and then social media as those channels evolved.”


In a different study, released by eDigitalResearch, Topshop is identified as the leading UK brand on Twitter and Facebook, as measured by followers, likes and fans. Right below Topshop is ASOS. Both are at the leading edge of change in fashion retailing.

Tuesday 12 June 2012

M&S + HSBC = M&S Bank

From July, Marks & Spencer and its partner, HSBC, will be opening a series of bank branches in high-street locations.

Earlier, M&S Money was purchased by HSBC and remains a joint venture, offering loans, credit cards and other financial services.

The new M&S Bank will be customer-oriented in the tradition of retailing, as this quote from M&S chief executive Marc Bolland indicates:

This bank will be built on M&S values; putting the customer at the heart of the proposition and delivering the exceptional service that sets us apart from the competition.
Initially, M&S Bank will operate one branch in the store's Marble Arch branch. Within months, more branches are planned for other areas, including Wales.

M&S is not the first UK retailer to expand into banking. Tesco has been involved in banking for some time, first with RBS and now as a separate banking business. Sainsbury's banking division is run as a joint venture with Lloyds Banking Group.

Competition is becoming more intense. Metro Bank opened in 2010 as a retail-oriented bank, the first new high-street bank in 100 years--and now it's expanding, with seven new branches in the works. How will M&S Bank do in this very competitive environment?

Wednesday 6 June 2012

Pottermania Spreads

Yes, this is one of the sets from the Harry Potter movies. We muggles can see it on the studio tour at Leavesden in Hertfordshire. Not a theme park, this is an opportunity to see the actual studio sets (including the famous Hogwarts dining hall) where the Harry Potter movies were filmed.

Harry Potter is attracting millions of visitors to Universal Studios' Wizarding World theme park in Florida, a rising tide of vacationers that is also helping other theme parks in the area. Another Harry Potter theme park is scheduled to open in California, and a third will open in Osaka, Japan in 2014. 

Although Harry won't be starring in any more films, continued interest in J.K. Rowling's wildly popular book series has led to many other marketing projects, including a new "Book of Spells" videogame on which the author collaborated. Watch for more Pottermania as new generations of fans discover the characters and the magical settings.