Monday 29 April 2013

Coca-Cola changes its name to yours (temporarily)

Coca-Cola will soon implement a UK promotion that helped the iconic soft drink brand gain sales in Australia and New Zealand during the summer of 2011-12.

Bottles of Coke will be labeled with 150 of the UK's most popular given names. This 'Share a Coke' campaign is designed to increase brand involvement and generate excitement. 'If you walk into a store to pick something up at lunchtime and there’s your name on a bottle, it’s special because it’s there at that moment you buy', explains a Coke executive.

Coke has established the #ShareACoke hashtag to encourage UK consumers to tweet about their experience. Its Great Britain Twitter account currently has 5,200 followers, by the way. Coke is also planning an integrated campaign of digital and non-digital media to promote 'Share a Coke'--reportedly to make an even bigger impact than last summer's Olympic-themed ads.

In all, 100 million Coke bottles will carry given names instead of the brand name. And if your name doesn't appear on a bottle, you'll be able to create a virtual version online. No matter what name is on the label, the product will be instantly recognisable as Coke because of the colors and the distinctive design.

Thursday 25 April 2013

Samsung vs Apple: The supply chain holds the key

Largely invisible to customers, your supply chain is a vital element in marketing. Do you have the right suppliers, the right materials and the right inventory levels to deliver enough products to meet demand?

Samsung is currently experiencing a supply chain problem that's delaying its intro of the Galaxy S4 smartphone in some markets. Why? Because global demand is unexpectedly high and Samsung's suppliers simply can't keep up.

Unfortunately, other elements of Samsung's marketing plan have already been implemented--including glitzy product launch parties, ads, and other activities. Customers are therefore seeing promotional messages and getting interested in the S4, only to learn that they can't buy one yet.

And that's a problem because Samsung is a major challenger to Apple in the smartphone market. In fact, Samsung sells more Galaxy mobiles than Apple sells iPhones. But if the supply chain can't keep up with demand, Samsung's customers (and distributors) will have to wait. Delays could change the way customers view Samsung and affect their ultimate buying decision.

Meanwhile, Samsung's profits have reached record-high levels. And, interestingly, Samsung is an important supplier in rival Apple's supply chain, making special microprocessor chips for iPhones. Both firms are clearly profiting from the continued increase in demand for smartphones.

Tuesday 23 April 2013

Mattel's Monster High Marketing

Sales of Barbie dolls and Hot Wheels toy cars may be down, but Mattel is profiting from higher global sales of its highly successful Monster High brand.

From Draculaura (a 21st century relative of Dracula) to Frankie Stein (yes, related to the famous Frankenstein), Monster High's teenaged characters have costumes, accessories and -- of course -- their own interactive online home featuring videos, games and more.

The target market is preteen and young teen girls all over the world. The brand is being marketed in Spanish, French, Italian, Portuguese (for Brazil) and other languages. Monster High is launching this week in India, for example.

In the UK, Tesco Direct features Monster High in a dedicated section of its site; Argos and Asda Direct also highlight the brand on dedicated pages. The idea is that shoppers can click from one doll to another or conveniently view the many accessories related to each character.

Will Monster High have the longevity of the Barbie brand (now 54 years old)?

Monday 22 April 2013

Earth Day 2013

Today's animated Google Doodle sets the tone for worldwide Earth Day celebrations, as you can see. The company itself has been aggressively pursuing clean energy options for years.

All day, organisations and individuals are taking steps to raise awareness about sustainability and protect our planet. For example, the UK's Woodland Trust is running a "More Trees, More Good" campaign to promote the planting of trees.

Earth Day-related phrases are trending on Twitter now, including 'Happy Earth Day' and #EarthDay. 'Tony Stark' (of the Avengers) even tweeted a comic with the caption 'If we can't protect the Earth, you can be damn well sure we'll Avenge it'. Oxfam tweeted its analysis of how big food brands are dealing with climate change.

Want to estimate your carbon footprint? The nonprofit Nature Conservancy has a free calculator for you to try.

Happy Earth Day. What are you doing to save our planet?

Wednesday 17 April 2013

Jaguar Land Rover speeds ahead

Jaguar Land Rover, owned by Tata Motors of India, continues its UK manufacturing success with ever-higher global sales of luxury autos and rovers. 

During the first quarter of 2013, the company sold more vehicles than it has ever sold in any three-month period. It did especially well in Brazil, increasing sales by more than 135% as newly-affluent consumers trade up to the status and quality of Jaguar and Land Rover vehicles. With sales in Asia continuing to increase year by year, the company is also opening a fourth regional office in Singapore to support marketing and distribution initiatives throughout the area.

In addition to the three UK factories, Jaguar Land Rover is working on a factory in China (with local auto company Chery) and plans a new plant in Brazil once all regulatory issues are resolved. It is also analysing the possibility of manufacturing in India. Where the vehicles are manufactured makes a difference in how Jaguar Land Rover prices them and how much it costs to transport them to dealerships in targeted countries--in other words, these decisions affect the profit margin it earns on each vehicle and product range.

This year Jaguar Land Rover is investing £3 billion in new product development. The firm has done extremely well with its new Range Rover Evoque, and is examining opportunities for developing new SUVs (although no details are being released at this early stage). However, the SUV market is mature and highly competitive, with established firms already enjoying customer loyalty. What does this mean for Jaguar Land Rover's marketing plans and the new models it is developing for introduction in 2015 and beyond?

Monday 15 April 2013

The ups and downs of sports star endorsements

If you're a golf fan, you know that Rory McIlroy is also a marketing star. He recently signed a £156m deal to endorse Nike for the next decade. And with that investment, Nike probably has final say over which other endorsements McIlroy may accept while he's a Nike spokesperson. Although McIlroy didn't do well at the US Masters Tournament held this past weekend, he's an ambitious athlete with great abilities and great opportunities (in golf and in marketing). And Nike knows that one tournament or even one season is only part of the story in sports star endorsements.

High-powered sports stars are endorsing high-profile brands of all types. David Beckham is among the most highly-paid endorsers from the world of football, putting his fame to work for H&M, among other marketers. Cristiano Ronaldo has made headlines for his lucrative marketing contracts with Nike and Castrol, among other companies.

On the other hand, Oscar Pistorius, Tiger Woods and Lance Armstrong have all been Nike endorsers and embroiled the brand in controversy over the years. Nike never dropped Tiger Woods, and last month it released a new ad featuring the golfer and the familiar Nike swoosh with the strapline 'Victory'. Despite considerable controversy over the ad, the famed golfer's climb back into the top rankings is big news and attracting a lot of attention for the brands he represents.


Adam Scott, who just won the US Masters Tournament, is enjoying not just global glory but also endorsement bonuses from Mercedes and Rolex, two brands he represents. 'He's the most marketable sports star in Australia', says one sports marketing expert. Watch for more endorsements as Scott makes the most of his athleticism and his celebrity.

Lesser-known sports such as lacrosse are also being scouted for the marketing stars of tomorrow. Paul Rabil, who plays for two US lacrosse leagues, is the sport's first celebrity to earn $1 million in endorsements from brands such as New Balance (trainers) and Nooka (wristwatches). Rabil's a big user of social media (with more than 64,000 Facebook likes), which extends his reach and influence well beyond fans who watch lacrosse. 

Wednesday 10 April 2013

L'Oréal in China

Eyeing the growing affluence of Chinese consumers, global beauty giant L'Oréal is implementing a major marketing strategy to increase sales in that country by at least 10% during 2013. It purchased local brand Yue Sai in 2004 and has expanded retail coverage to reach more shoppers in more Chinese markets and introduce its other brands, not only in the largest cities but in smaller cities around the country.

With market segmentation, L'Oréal is using a differentiation strategy to target specific segments. The CEO for China states: 'You have to have an answer for very different needs'. In other words, one beauty brand or product does not fit all.

That's why L'Oréal has specialised product development programmes in place, as well as retail marketing elements geared to the buying patterns of Chinese consumers.

Because beauty products are aspirational, internationally-known celebrities like Emma Watson and local superstars like Fan Bingbing and Andy Lau add cachet to the firm's Chinese promotions.

And if you think the company is targeting only women, think again. As in other parts of the world, L'Oréal is also targeting men who buy skin-care products and other personal care items. 'We estimate that the men's cosmetics sector has grown at twice the rate of the total beauty market in China', says the chief executive.

Leveraging its French luxury image, L'Oréal is now ranked as the second-most valuable beauty brand in the world (behind Olay, owned by rival Procter & Gamble).

Tuesday 9 April 2013

New and improved: the brand comeback

Marketing Week features an intriguing article this week: 'Comeback brands: Raising the dead'.

One of the brands discussed is Golden Wonder, a highly popular brand of the past that is now owned by Tayto, a family-backed business that has become the UK's third largest snack company.

Golden Wonder must make itself much more visible (within a limited marketing budget) to effectively compete with Walkers, which dominates the crisp category. Golden Wonder's marketing head director tells Marketing Week in a separate Q&A article: 'We’re never going to outmuscle the market leader in terms of spend so you have to consider how to create conversations about the brand at a lower cost'.

To leverage brand fans' nostalgia and enthusiasm as part of the marketing strategy to compete against Walkers, the company is becoming increasingly active in public relations and social media. The Golden Wonder Facebook page currently has 12,100 likes; its Twitter account currently has just under 2,000 followers. Both accounts are filled with frequent posts and some consumer responses, keeping the conversation going day by day.

Wider distribution is giving sales a boost. Can Golden Wonder win back customers who once loved the brand and attract new brand fans who will become loyal buyers?



Thursday 4 April 2013

Marketing undies

Undies--yes, undies for women and for men--are the new fashion statement. Not just as gifts for St Valentine's Day, but for everyday luxury as well as for comfort.

Now Marks & Spencer, traditionally a favourite store for undie purchases, is feeling a lot of competitive pressure from lingerie fashion retailers like Victoria's Secret and Agent Provocateur.

Victoria's Secret, based in the US, has made a major marketing investment in London. The 36-year-old company recently opened a splashy flagship store on New Bond Street. Its branded lingerie is a perfect fit for Pinterest social media marketing. The brand also has more than 22 million Facebook likes (surprise, surprise), more than 2 million Twitter followers, 61 million YouTube views, and 1.7 million Instagram followers.

Meanwhile, Agent Provocateur recently opened a large flagship Mayfair, London store, adding to its 60+ boutique and department-store locations worldwide. The retail chain is less than 20 years old yet it already has developed a unique advertising look that adds to the brand cachet. Its chief executive is an experienced manufacturer and has found ways to cut costs and boost profit margins without eroding quality or image. Agent Provocateur has 209,000 Facebook likes, 19,000 Twitter followers, and nearly 6 million YouTube views.

The next frontier is men's fashion underwear, exemplified by David Beckham's recent ad campaign for H&M.

Posh men's undies are being marketed by all the top retailers, including Selfridges and Harvey Nichols and House of Fraser, not to mention Mr Porter (Net-a-Porter's menswear site).

And the underwear marketing wars have only just begun.

Tuesday 2 April 2013

Blog anniversary #4 and post #411

This blog began in April 2009, with posts about green marketing, Innocent Drinks, Mazda and MG, among other companies and marketing issues. Today's post is #411 in this long-running series about timely marketing topics.


The five most popular posts of all time are:

Thank you for reading, and please check back soon for more posts about the world of marketing.