That Ugly Christmas Jumper Trend

You've seen them--those overdone, ridiculous holiday jumpers that make you smile even as you shake your head at their ticky-tacky look.

Since 2011, the trend has expanded from DIY and vintage shops to indie stores and mainstream retailers like Asda. In fact, Asda has its own selection of ho-ho-ho jumpers, part of a Save the Children cause-related marketing initiative.

At right, a popup screen from today's Primark site, advertising men's Christmas jumpers that are slightly over the top. Santa will chuckle as he sees these ugly jumpers on young and old, male and female, even dogs.

Merry Christmas to all!

London's Hello Fresh cooks up market segmentation

Hello Fresh is for home cooks who want the convenience of receiving packages of ingredients with creative recipes every week (or one-off), for making gourmet meals in their own kitchens. Everything but the chef is the company's tag line.

The online subscription service offers packages for family meals, for vegetarian meals and for 'classic' meals (with meat). Customers can choose packages that provide multiple meals for either 2 or 4 people, with step-by-step recipes including nutritional values and cooking times.

With a lot of venture capital backing, the company is expanding rapidly and already faces competition in some of the markets it serves. To continue its success, London-based Hello Fresh is segmenting its market by geography, attitude and behaviour.

• Geographic segmentation: Hello Fresh operates in Australia, Austria, Belgium, Germany, the Netherlands, the UK and the US, adapting its recipes for local markets and sourcing ingredients from local producers. This allows the company to appeal to local tastes and preferences.
• Attitude segmentation: Cofounder Patrick Drake explains: 'There is that intimidation factor with cooking . . . "I have never tried this recipe before so I am not going to try it", an attitude that discourages experimentation. Hello Fresh targets people who want to experiment with little risk (financial or culinary), a key element in its marketing.
• Behaviour segmentation: Many people enjoy cooking at home (or want to cook at home) but don't have time to shop or don't have access to specialised shops for international ingredients. Hello Fresh addresses this segment's needs by delivering boxes with exactly the foods and extras needed for each meal.

Hello Fresh has already attracted 200,000+ Facebook likes, 7,000+ Twitter followers and 9,000 Instagram followers.

Burberry's digital marketing strategy

Burberry has not only reinvented itself, it's become a case study in digital marketing to Millennials (and beyond). Thanks in large part to this enterprise-wide digital initiative--driven by marketing priorities--Burberry has tripled its turnover in less than 10 years.

The company continues to integrate its online and mobile marketing with brick-and-mortar store retailing. For example, when a shopper steps into a Burberry store, salespeople are ready with iPads to tap into the database and see every contact that shopper has had with the company, whether online or in a store or by phone. This allows continuity of experience and customisation of offers.

The stores have digital touches everywhere, from giant media screens to personalised mobile messages leading shoppers to specific product displays or departments. Knowing its customers tote gadgets, Burberry uses 'beacon' technology to sense mobiles and tablet computers as shoppers enter a store and send out messages if customers have opted into the system.

Burberry pays special attention to the in-store experience, because so many customers enjoy checking out the latest fashions firsthand before making a purchase. Inside and out, the stores must reflect the brand and amplify its image--which is even more important for digital buyers viewing web sites or social media, of course. Targeting Tokyo hipsters, Burberry recently opened a glittering new branch in the heart of the fashionable, tree-lined Omotesando district. From the eye-catching exterior to the digital displays to the new styles, this is definitely not the stodgy old Burberry of the past.

Burberry is highly social: Its FB page has 18 million likes, its Twitter account has 3.4 million followers and its Pinterest boards have 121,000 followers. Check them out!

Food trucks use social media as marketing engine

Entrepreneurs are bringing their unique food experiences to streets in London and beyond--with social media as the marketing engine for attracting customers. 

At left, a food truck with eye-catching flair: Engine's 1950s fire engine, serving American-style hot dogs and grilled sandwiches. Using social media like Twitter, Facebook and Pinterest helps Engine stay in touch with customers, alert them to new products and publicise new locations.

Another example: Rainbo (offering gyoza and more), which markets its weekend and festival outings with blogs like 'van life' and combines street food with social responsibility (its cause: ending child labour).

Now some food trucks have a membership organisation (KERB) to promote their services and encourage entrepreneurial newbies. KERB is savvy about social media, using Tumblr, Twitter, Facebook and more to feature its members and build excitement about gourmet street food.

Changes in Nespresso's marketing environment

The marketing environment is changing for Nespresso. A division of Nestlé, Nespresso pioneered the high-quality, single-serve coffee/espresso machine in 1986 and remains a market leader.

In recent years, however, Nespresso has faced increased competition as well as regulatory pressure in many markets. One reason is the high profitability of replacement single-serve coffee capsules. The way razors require replacement blades, Nespresso machines require replacement coffee capsules. That means opportunity for Nespresso and for rivals, who have been making capsules to fit Nespresso machines.

Following a legal battle in France, Nespresso will now share technical information about its machines so rivals can make completely compatible replacement capsules. It won't threaten to invalidate warranties if customers use rivals' capsules, either.

Thanks to years of carefully-crafted marketing, Nespresso has successfully encouraged millions of espresso-lovers to visit its boutiques or order online when they need replacement capsules. Price-conscious buyers are most likely to switch to rival capsules. The changes in its marketing environment are unlikely to woo away the most brand-loyal customers, "club" members who enjoy the coffee and the entire buying/consumption experience.

Nespresso says that half of its new club members are introduced to the brand by friends and family--among the most trusted word-of-mouth sources. Having George Clooney as the brand's spokesperson is another competitive advantage. In Japan, however, Nespresso has a new marketing gimmick: friendly robots equipped to converse with customers about their java preferences. Not only will the robots engage customers and prospects, they'll capture conversational content that Nespresso can analyse for clues to needs, behaviours and buying intentions.

Packaging must sell from the shelf

From your own experience, you know that packages in any retail setting have only a few seconds to capture your attention, communicate a mood or benefit or brand, stimulate you to pick one up--and ultimately encourage you to buy.

Yes, packaging must protect the product, allow for safe transport, enable convenient storage in stores and in households and help in using or measuring the product. Sometimes packaging prevents theft. And of course products must carry labels that inform, warn, explain and comply with rules and regulations.

But the best packaging does a brilliant job of selling from the shelf, coordinates with other marketing elements and contributes to customer satisfaction. Ideally, it's also earth-friendly and adaptable to other uses.

Buzzfeed collected images of clever packaging last year--see them here. Packaging of the World features good packaging examples from everywhere.

Above, an example of a Coca-Cola bottle customized with given names for the Australian market. This 'Share a Coke' campaign resulted in sales of 250 million Coke bottles and cans just in Australia.

The campaign was expanded globally and was repeated in the UK this year, with more names plus 'Mum' and 'Dad' and 'Bestie' to attract consumers who wanted to share a Coke with family members and friends. The success of the campaign illustrates the power of good packaging with marketing as a priority.

Domino's digital marketing strategy

Few UK marketers are as successful in digital-media marketing as Domino's UK. The pizza delivery company has nearly 1 million Facebook fans and 212,000 Twitter followers. Consumers engage with the Domino's brand because they like its image, its service and the promotions mentioned in social media.

In fact, Domino's has an annual marketing calendar with specific social media content planned for each month and for each week. Yet about 10% of its digital media content is actually spontaneous, developed either in response to trending topics at the time or building on special events and other elements that can't be planned far in advance.

Domino's receives 70% of its orders online--and half of these are via mobile, including its app. The company has also arranged for ordering capabilities directly from Xbox game consoles. Domino's head of e-commerce explains:

Our target audience is a really good fit for the Xbox One – typically, gamers and pizza eaters are the same people.

The company's turnover is increasing and its digital marketing strategy is helping keep the brand in the public eye day after day.

Cyber Monday and beyond

Many experts predict that today--Cyber Monday--will be the busiest online shopping day of this holiday season, with buyers spending £500 million to £1.5 billion or even more.

Other experts believe that the second Monday in December--so-called Manic Monday or Middle Cyber Monday--will be even busier. Experian's analysis of 2013 data shows that UK buying on the second Monday outpaced buying on the first Monday, and it expects this trend to continue in 2014.

Amazon UK, which touched off the UK Black Friday shopping frenzy in 2010, reports that last Friday was its busiest single day ever, with 5.5 million items purchased. As in the US, Amazon UK has extended its specials for Black Friday Week, including Cyber Monday.

In the US, there is another big shopping day between Black Friday and Cyber Monday. It's Small Business Saturday, a day promoted by American Express and enthusiastically accepted by shoppers who buy from small and local businesses. Will this 'shopping holiday' cross the Atlantic as well and shape consumer behaviour among UK buyers?

Will Black Friday Overtake Boxing Day?

BLACK FRIDAY

Black Friday has been a traditional holiday shopping day in the US for decades. In recent years, however, it's been adopted by UK retailers as a new shopping holiday--an opportunity to promote super-bargains and attract crowds of shoppers (measured by footfall and clicks). Is Black Friday about to overtake Boxing Day as a major shopping day?

According to the BBC, Amazon.com originally popularized Black Friday among UK online shoppers. These days, most High Street stores and e-commerce retailers see Black Friday as a day to promote low prices on in-demand merchandise and attract holiday shoppers who want to get started on their lists.

By some estimates, the level of sales on Black Friday 2014 will be double that of 2013.

For John Lewis, Black Friday 2013 was the retailer's busiest online shopping day--more than twice as busy as the previous shopping record!

Singles Day = #1 Online Shopping Day

Not Christmas, not Black Friday, not even Valentine's Day can compare to the online shopping frenzy of China's Singles Day.

On November 11 (all ones, 11/11, get it?), singles browse for bargains and shop (usually online, increasingly via mobile). And shop. And shop.

Alibaba--by far the world's largest e-commerce business, with wholesale and retail sites for shoppers in China and beyond--has helped fuel this shopping extravaganza. In 2009, it introduced an array of Singles Day shoppers' specials on its various sites. The promotions were so successful that Alibaba eventually trademarked 'double eleven' and continued to expand the scope of its marketing.

In 2014, Alibaba's marketing for Singles Day began during October, with preorders at special prices. Once again, the company's extensive reach and promotional clout paid off: It recorded one-day sales of £5.9 billion on Singles Day, a hefty increase over the 2013 results. Alibaba is already looking ahead to even better results in 2015 as Chinese consumers exercise their buying power via mobile devices.

Alibaba's complex network of marketplaces is designed, the company explains, as a business ecosystem with a specific purpose:

We operate an ecosystem where all participants – consumers, merchants, third-party service providers and others – have an opportunity to prosper.

Peppa Pig Goes Global

Peppa Pig, just 10 years old this year, has taken the preschool branding world by storm. Her animated TV series is produced in UK studios and shown worldwide. Peppa even has her own Royal Mail stamp and a theme park, Peppa Pig World, in Hampshire. Coming soon, Peppa's part of a theme park in Milan will be even larger as the brand becomes popular throughout Europe.

Peppa merchandise is a multimillion-pound business. In the UK alone, Peppa products account for £200m in revenue. Worldwide, Peppa products are worth £640m in revenue. This turnover includes revenue from a deal with Mattel's Fisher-Price toy unit.

From January, 2015, Peppa will be in Walmart stores, part of a deal by EntertainmentOne with Jazwares to expand the brand in the US market. Peppa also has new retail agreements in Paris and the French market, building on the brand's higher awareness and preference.

Watch for Peppa on TV, in stores, in theme parks, online, and wherever parents and grandparents are looking for a fun brand suitable for preschool boys and girls.

Grocery retailing challenge: Competitors as 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.

As I say in my texts and here on the blog, competitors must also be considered stakeholders, because every rival can, directly or indirectly, affect the performance of its competitors. This is particularly true in the grocery retailing industry, where activities such as price-match guarantees directly affect what competitors do.

Sainsbury's situation shows this in action. To be competitive, Sainsbury (with 1200 UK stores) has to offer good quality at good prices, as well as making sure its stores are the right size and in the most convenient locations for customers.

Its competitors are using price wars as a key element in their marketing plans--which puts the pressure on Sainsbury to cut prices, too.

Sainsbury recently complained that a Tesco matching price promotion unfairly compared some Sainsbury products with Tesco products. The high court disagreed. But taking this to court indicates that Sainsbury is concerned about the effects of Tesco's price policies.

In fact, Sainsbury just announced a major price-cut promotion of its own to fight back against what competitors like Tesco and Aldi are doing to attract customers and increase market share. Competitors are, as this shows, influencing Sainsbury's decisions and performance.

Seeking to analyse its strengths, weaknesses, threats and opportunities, Sainsbury has revealed that up to 25% of its stores are either the wrong size or not in the right location. That presents a challenge because of the company's real estate commitments. Can Sainsbury improve its financial position, fix its store situation, keep prices low and improve profits? Stay tuned.

Launching Coca-Cola Life and Pepsi True

In the latest cola wars between the world's largest soft-drink marketers, Coca-Cola Life and Pepsi True are launching into the 'battle of the stevias'.

These are neither zero-calorie colas with artificial sweeteners nor full-calorie colas with sugar or fructose syrup. They're 'mid-cal colas' featuring stevia, a plant-derived sweetener, typically targeting millennials who want to avoid a lot of chemical ingredients.


At left, Coca-Cola Life in bottles.

At right, a can of Pepsi True.


Note the use of green labels, which consumers usually associate with natural foods. What does this mean for dueling colas? A UK creative exec comments: 'The problem of sending confusing messages to consumers is they tend to avoid brands rather than try to decode them'. 

Coca-Cola Life is launching in the UK with sampling, outdoor and transit ads and of course digital marketing. When The Grocer tasted Coca-Cola Life and compared its flavour with other Coke products, the editors preferred Life. A key question is whether this new product will attract new customers or take them from existing Coke products.

Pepsi True is currently available through Amazon in the US, but will soon be on store shelves there. Pepsi marketers view this product as a niche item because it appeals to a relatively small subsegment of soft-drink buyers. 

Battle of the holiday adverts begins

With the yearend holiday shopping season about to begin, UK retailers are unveiling their new adverts and warm-hearted campaign themes.

The first was John Lewis, which put an adorable child and best friend, Monty the penguin, into the spotlight. Posted on YouTube, the advert attracted 4.5 million views in less than 48 hours.

This new holiday advert follows the animal friends theme that won John Lewis's bear and hare advert so many holiday views in 2013. Strong on emotion, no hard-sell, focus on positive attitudes and feelings.

Next was Marks & Spencer, which renamed itself Magic & Sparkle as it revealed its holiday fairies advert with a tweet:

Introducing a little Christmas Magic and Sparkle. #FollowTheFairies https://t.co/yE2NJi8Rwx
— M&S (@marksandspencer) November 7, 2014

Marks & Spencer is relying more heavily on social media this holiday season to capture the attention of tablet and mobile users who browse and buy with a click or fingertip.

Multichannel strategies are a must for 2014 holiday success. Watch for more social media marketing and more special adverts as countdowns to the holidays (and, earlier, the special window displays) continue.

Retailers reveal consumer behaviour trends

Supermarkets and other retailers collect a massive amount of data about what shoppers buy, when they buy, how they pay, how often they shop, what time of day they shop and other details that help them analyse and understand consumer behaviour.

One of Tesco's highly valuable assets, in fact, is its Dunnhumby division, the tech engine behind its ability to utilise big data collected from Clubcard users' purchases.

John Lewis recently released a listing of trends based on its analysis of customer purchasing patterns and marketing research survey results.

This is the first in an annual series of reports designed to reveal changes in consumer behaviour and explain the implications.

Introducing the report, Mark Price of Waitrose told The Telegraph: 'People are buying food for now. The notion that you are going to go and push a trolley around for the week is a thing of the past. It is fundamentally changing the market'.

In other words, UK shoppers are no longer preparing menus in advance and shopping for food once a week. Pressed for time, they're buying weekday convenience and, often, planning for food-on-the-go (not necessarily fast food).

On weekends, however, UK consumers like to splash out on leisurely feasts. Bold flavours are increasingly in favour. Many use social media to share food photos and comments about what they like and don't like, which can accelerate and intensify reactions to food products--and to stores.

With better knowledge of consumer buying habits and priorities, retailers can design stores to meet the new needs and order products that fit current lifestyles. Marketing in all media will reflect these influences and position the retailers as 'the' place to shop for today's shoppers.

Spanish ads, English straplines

Looking at a Car and Driver magazine from Spain, I noticed many ads feature English straplines (see arrows). This indicates a globalisation of promotional themes and a recognition that drivers welcome global brands and are willing to buy them locally.

• At top left, Kia's strapline is "The Power to Surprise." That's the automotive brand's worldwide strapline.
• Center top, GT's global strapline for Champiro tyres is "Experience the Performance."
• Right at top, Mercedes Benz uses the strapline, "The best or nothing." 
• Bottom left, BMW's ad includes the phrase "BMW EfficientDynamics," a reference to its earth-friendly lower emissions.
• Bottom right, Ford's ad shows the strapline "Go further." This strapline appears on its website and other promotional elements.

Marketing wearable tech

Fitness trackers are being marketed as 'fashion meets function' for individuals who want to track activity or heartbeat or other indicators. These are a big segment of the wearable-tech market. Smart watches are, well, marketed as more technology in a convenient wristwatch size, portable in a different way than smartphones. Both are trendy for style reasons and for early adopters who enjoy being among the first to have the latest gadget.

Here are a few examples of marketing wearable tech:

• Fitbit is using multiple social media networks to showcase its latest wristband fitness trackers, including Instagram, Facebook, Twitter, Pinterest (especially key for fashionistas), Google+, LinkedIn, and Vine. The brand has recognition and a core of loyal followers who appreciate its streamlined look and ease of funtionality.
• Samsung is marketing its Gear smartwatches as 'comfortable, smart and stylish' on its UK website. Publicity about Android operating systems, bendable batteries and other elements related to the product help support its techy image. Samsung's strength in tablets and phones can only help its wearable tech products.
• Apple Watch, to be introduced in the UK next year, already has a lot of marketing momentum building because of product launches in the US and elsewhere. As expected from Apple, design is paramount to the marketing effort--as is the brand's iconic apple logo. Given Apple's premium image, this watch has a lot of buzz.
• Nike discontinued its Fuelband fitness tracker earlier in 2014 to focus on other wearable tech and, crucially, software related to wearable tech. The company recognised that fitness trackers have a life cycle--and the product category isn't yet in the maturity stage. Rather than continue with the wristband trackers that it marketed, Nike opted to look in Apple's direction. With Nike's strong brand equity, it will surely be able to compete in whatever niche it targets.

How does brand identity sound?

South Korean automaker Kia is the latest marketer to incorporate sound into its brand identity. The distinctive musical sounds are part of Kia's multi-sensory branding, as shown on the company's website.

Brand fans are encouraged to download Kia's five-note melody as a ringtone, in various rhythms and styles (Reggae, Bossa Nova, modern rock, etc.).

Sonic branding has a long history. Music or sounds that are associated with a brand have the power to bring that brand to mind when you hear that unique melody or sound. And they can influence your attitudes and perceptions of the brand.

Not all sounds associated with a brand are intentional or pleasing, as this article explains. But careful planning can result in a sound that contributes to effective rebranding. That's what SNCF, the French railway firm, found when it created a unique sonic identity for its brand. Now, after years of hearing the railway's sonic brand signatures, 92% of the listeners surveyed were able to identify the brand after hearing only 2 notes--and 71% of the listeners had a positive attitude toward the brand.

Vinyl LP sales surge

An old-fashioned music medium, the vinyl LP is making a comeback year after year. Maybe LP sales statistics don't add up to a tsunami (yet), but they do indicate strong, ongoing consumer interest in vinyl. According to the Official Charts Co, 800,000 vinyl LPs have been sold to date this year, and 2014 is on track for 1 million LP purchases in the UK by yearend. (The Official Charts FB page is here.)


Record Store Day, held every May, attracts vinyl lovers to music stores around the country with special releases and promotions. The 2014 event broke recent sales records and contributed to vinyl's momentum.

Vinyl is in the spotlight at Rough Trade, a music retailer based in London with two stores there, opened a branch store in the hip New York neighborhood of Williamsburg last year. Rough Trade will soon open a fourth store in Nottingham. The focus is on indie music--and vinyl is a key product element.

With 134,000 Twitter followers, Rough Trade actively promotes community and encourages exploration of new performers and new music. Vinyl gives customers a reason to visit the store, pick up LPs, read the album notes, and buy something new with a vintage heritage.

Look-alike shoes: Converse sues

Converse, now owned by Nike, markets a very distinctive sports shoe called the Chuck Taylor. The rubber-toed design is an all-American classic, popular year in and year out since it was introduced for basketball players nearly 100 years ago. It takes its name from a basketball star, Chuck Taylor, who joined Converse in the 1920s.

Now Converse is suing 31 companies, saying their shoes have too much of the Chuck Taylor look--and therefore violate intellectual property laws.

Among the firms being sued are Walmart, Kmart, Skechers and Ralph Lauren.
This isn't Converse's first attempt to assert its trademark rights. The company has served nearly 200 cease-and-desist notices in the past few years, telling marketers to stop making lookalike shoes that mimic Chuck Taylor's design. Now it's looking to the court system to enforce its trademark rights.

The marketing point? Success invites imitation. Marketers have to watch for imitators and be sure their brands and trademarks are protected. Otherwise, they may wind up marketing something that devolves into a generic product or category description. Zipper was once a brand. No longer. Converse wants to be sure that Chucks don't lose their brand protection. Just as important, it wants consumers to be reassured that when they buy a pair of shoes looking like the Chuck Taylor classic, it is a Chuck Taylor by Converse.

Shopper marketing: selling from the shelf

When shopping, why do we reach for one package instead of another? The answer, say the experts at UK design consultancy Elmwood, is the influence of biomotive triggers. 

Shoppers may pause for only a few seconds before moving on to the next item in a store--so packaging must work its magic quickly, attracting our attention, identifying the brand and a key benefit and then encouraging us to pick that product.

Clearly, in-store elements of shopper marketing can make all the difference in a product's sales. In particular, cusps and curves are two biomotive triggers that can affect consumer behaviour.

Elmwood's Simon Preece explains the influence of cusp and curve in a recent Packaging News interview:

• Cusps are sharp pointy shapes and they get our attention, signaling fear danger and caution. 
• Curves suggest safety, softness and comfort; they make us feel secure and encourage interaction.

As Preece notes, Walt Disney's marketing for the recent movie Maleficent used cusps to convey the sense of danger and foreboding viewers would experience. Of course, being a Disney movie, the danger was resolved by the end. But this subtle use of cusps intrigued viewers and attracted attention in a cluttered environment. Curves are the main focus of Coca-Cola's packaging, Preece says, suggesting comfort--yet the logo has some cusps to capture attention and contrast with the curves.

Elmwood is responsible for the redesigned Andrex packaging shown at top (read its commentary on the packaging here). Toilet tissue should be soft, and the curves convey that important benefit. The puppy's eyes are looking right at the shopper, asking to be taken home--biomotive triggers that sell from the shelf.

Why Retailers Run into Trouble

As the Centre for Retail Research chronicles, retail stores continue to go into administration. Because stores are part of our daily lives, retailer problems receive media attention all the time--including lists of retailers in trouble (like this one from BBC News) and analyses of high-street retail vacancies (like this one in the Guardian).

From Comet to Blockbuster, Phones4U and beyond, some UK retailers have run into trouble from a variety of challenges related to changes in the marketing environment, including:

• Economic conditions
• New consumer tastes
• New shopper behavior
• Population shifts 
• Industry consolidation
• Management issues
• Financial woes 
• Technology 

Increasingly, retailers are looking to multichannel marketing as a key to attracting new customers and retaining existing customers who enjoy shopping via tablet or mobile, not just in a high-street store.

Updating the Lost Legends Luxury Chocolatier marketing plan

Lost Legends Luxury Chocolatier is a fictional startup created to illustrate a sample marketing plan in my Essential Guide to Marketing Planning text. To update this marketing plan, consider:

• Products and marketing by competitors such as the Grown Up Chocolate Company, Hotel Chocolat, Thorntons and Paul A Young. See what they're offering, the prices they charge, the markets they serve and the flavours they're introducing.
• The cocoa supply situation, supplier concerns and potential problems that might disrupt delivery of chocolate and other ingredients.
• UK chocolate consumption trends and implications for future demand.
• Social-cultural issues that affect consumption and brand loyalty, such as consumer preference for authenticity.
• Legal issues such as new food labelling requirements to indicate allergens.
• Technological issues such as 3D choco printing.
• Pricing trends and consumer reaction.

Aldi and the UK price war in groceries

The UK supermarket price wars are intensifying as Tesco struggles with problems that range from hugely incorrect accounting to overambitious international growth.

Meanwhile, the discount grocer Aldi has been profiting from the latest round of price wars with the major grocery chains. Aldi's managing director says: 'The price cuts have encouraged consumers to think more about what supermarkets charge and have really shown that our everyday low prices can't be beaten'.

Everyday low prices, plus 'special buys' (announced via mobile app) that bring selected prices even lower, are helping to increase Aldi's market share week by week. Aldi is prepared to slash prices even further if necessary to attract new customers during the winter holiday shopping season.

In 2013, Aldi expanded by 42 new stores. In 2014, it is adding 54 new stores--and in 2015, more than 60 new stores. This runs counter to the current trend of retail chains slowing their store openings to focus on increasing revenues from existing stores.

However, Aldi has a definite growth strategy based on its competitive advantage of everyday low prices--and it will keep that advantage in the public eye no matter what competitors do. As its managing director says:

Whatever our competitors plan to do we know exactly what our response will be and our competitors do as well. We will not let them compete on price. We will not let them close the gap.

Marketing Metro Bank in year four

'We believe customers simply want a better experience from their bank, the kind they typically get from a great retailer and that's what we intend to give them'.

The chairman of Metro Bank said this in 2010 when opening the firm's first London 'store' (what other banks call a 'branch'). The marketing plan called for opening customer-friendly stores with convenient hours and amenities--at a time when traditional banks are closing branches to cut costs and encourage online banking. Metro Bank's long-term goal is to have more than 200 stores open by 2020--an expensive and aggressive target, but important for reaching a larger customer base and achieving economies of scale. Location, location, location is key.

By now, Metro Bank has attracted 400,000 customer accounts. It still keeps its stores open Monday through Sunday, even on bank holidays. One of its fun features is the open invitation to bring dogs into the store for fresh water and treats.

Although online banking costs less to operate, Metro Bank believes in face-to-face service and wants customers to walk into a nearby branch. Yet because so many customers like the convenience of electronic banking, Metro Bank has its own app and online banking site. Profitability remains on the horizon, perhaps by next year.

To reinforce its connection with the metro London area, the bank has reserved one of the scarce .London dot-com addresses. It has nearly 6,000 Twitter followers and its website actively invites comments and complaints from the public.

This post updates the Metro Bank example of customer service as a point of differentiation in Chapter 10 of Essential Guide to Marketing Planning.

Coffee marketing: Convenience vs status

Who prices a single cup of coffee at £11? Actually, the price is 1,998 yen, and the marketer is Starbucks in Japan. The coffee is made from special Geisha beans (really!) that are grown in Panama. Starbucks was able to buy a quantity of these specialty beans and is offering the coffee in its Tokyo-area restaurants.

Starbucks has tweeted about these specialty beans in the past. It is also promoting the expansion of installations of its special high-end brewing system, Clover, used for the expensive 'reserve' coffees it serves in selected stores.

The pricing strategy for Geisha coffee is in stark contrast to the popularity of 100-yen coffee available at the ubiquitous convenience stores all around the cities. In fact, there is a price war brewing among convenience stores that want to attract coffee buyers.

Convenience and low price are two key motivations for purchase--but status can be just as powerful in many situations, as this example of product pricing illustrates.

Update on the Ferrari Train

Nuovo Trasporto Viaggiatori launched its Italo "Ferrari Train" high-speed rail service in 2012. The company competes with Trenitalia, the Italian state-owned railway, for passengers who want speedy, comfortable transport between major Italian cities.

NTV's stylish, modern trains introduced competition into an industry unaccustomed to rivalry. The company's long-term marketing goal is to carry 9 million passengers per year and capture as much as 25% of the market for high-speed rail service inside Italy.

However, NTV's Italo has not done as well as it had hoped in the first two years of operation. First, the European economy hasn't fully recovered from recession, which means fewer passengers in general and more intense competition for those who are willing to pay for high-speed train service. Second, NTV reportedly says that Trenitalia has set its prices at an unfairly low level. Third, Trenitalia is reportedly raising its operating network fees and the new, higher costs will further erode NTV's profit margins.

Although NTV is attracting passengers, it has lost about €156m in its initial two years of operation, and is looking at layoffs to cut costs. Achieving its market-share goal and becoming profitable will be extremely difficult unless NTV can overcome these challenges.

This post updates the case study about NTV Italo in chapter 7 of my Essential Guide to Marketing Planning.

The Most Social Byte Night Ever

It's back! Byte Night takes place on Friday, 3 October this year. IT professionals around the UK will be sleeping rough to raise money for the charity Action for Children.

This year, Byte Night is taking social media marketing to new levels. Understanding how important it is to engage participants and donors, Byte Night's marketers are offering 5 different Facebook banners (one shown above), 5 graphics for Twitter profiles/pages, 2 Twibbons and a banner each for LinkedIn, Google+ and Tumblr.

For other media, Byte Night provides adverts, business card templates and more. Of course Byte Night has an app and its own hashtag #bytenight.

Byte Night has a page devoted to explaining how to write your marketing plan for fundraising during the weeks leading up to Byte Night. The organisation itself has a detailed plan and specific metrics for its fundraising activities.

Last year, Byte Night exceeded its fundraising goal. What about in 2014?

This post updates the Marketing Byte Night opening example in Chapter 11 of The Essential Guide to Marketing Planning.

Electrolux increases its brand portfolio for global share

Electrolux, based in Sweden, is buying General Electric's home appliance business, at a price of £2 billion. GE's division markets refrigerators, air conditioners, water heaters and cookers under two main brands, GE and Hotpoint, throughout North America. Electrolux's brands, shown above left, include Frigidaire, Westinghouse, Electrolux, Eureka and Zanussi (graphic from Electrolux's pdf presentation on the deal).

In particular, GE has forged connections with North American construction firms to sell home appliances for new houses. GE has wanted to exit the consumer appliance business for some time so it can concentrate on its B2B marketing, including industrial power products, aviation products and other expensive products sold to businesses, governments and health-care providers. 

Marketing to the construction industry is a marketing channel opportunity that Electrolux would like to exploit as the economy continues to improve. The deal also gives Electrolux more strength in North America, to complement its strength in the European region.

As discussed in Chapter 6 of my Essential Guide to Marketing Planning, products are often marketed with a company brand and a product line brand--as GE does with its GE Profile Series and GE Monogram appliances. In contrast, Electrolux traditionally uses an individual brand for each product line. Whether Electrolux will append its company name to the GE brands is not yet known. I can imagine a change that would create brands like "GE Monogram by Electrolux" but these decisions won't be made for some time.

The combination of Electrolux and GE appliances gives Electrolux a slim lead over Whirlpool in market share. It also adds to Electrolux's pricing complexity, given the number of brands and lines within each brand. 

 

Movie helps LEGO build profits and brand momentum

LEGO, known for its ubiquitous plastic bricks, has just reported a 12% rise in profits, thanks to the popularity of merchandise related to the animated hit The LEGO Movie. The movie's appealed not just to young fans but also to adults who accompanied youngsters to the theater (often more than once)--noting that the plot and characters were engaging and not just an extended advert for the brand.

On the strength of the rise in revenue and profits, LEGO is now at the top of the toy industry, surpassing long-time leader Mattel by a small margin. LEGO and Mattel will both be using their marketing plans to build brand momentum for the all-important year-end holiday shopping period. Mattel has even purchased Mega Brands, a rival plastic brick company, to enhance its presence in that part of the market.

Can LEGO repeat its move tie-in success with a sequel? Disney/Pixar's Cars multi-movie franchise has been bringing shoppers into stores to buy billions of pounds worth of movie-related products for years. No wonder LEGO is looking ahead to 2017, when Warner Bros. plans to debut the second in the LEGO movie franchise.

Starting your marketing plan?

Are you starting to prepare a new marketing plan? Here's a brief list of resources to consult for ideas, advice and structure:

• Chartered Institute of Marketing's marketing planning tool takes you from mission statement to resource requirements and budgets, step by step.
• Marketing theory articles and case studies to give you ideas and inspiration.
• What is a SWOT analysis? Find out here.
• Developing brand values is a key aspect of marketing.
• Brand problems? Read about these turnarounds.
• How to forecast sales for your marketing plan.

For a more comprehensive listing of online resources, click to my page of useful marketing planning links.

Finally, a Ford Mustang for Global Markets

This is the Mustang's 50th anniversary year, and finally Ford is prepping its first truly global version--complete with right-hand drive. The iconic pony car's 'sixth generation' model will soon be driving into 25 international markets (including the United Kingdom, Australia and South Africa) where cars are driven on the left.

Despite Ford's long history of international marketing, this will be the first time the car company creates a right-hand drive version of its Detroit-made Mustang. The all-American 'muscle car' styling (including a convertible version, above) plus the functionality of right-hand drive is expected to boost demand for the Mustang.

Now UK buyers won't have to pay to convert the steering wheel to the right when they buy a new Mustang. Not surprisingly, 500 Mustangs were reportedly reserved in the first 30 seconds after the new version was offered to European buyers.

Another interesting feature was recently reported: The new Euro Mustang will be equipped with a special button (really an app) that lets drivers 'do a burnout', in the spirit of muscle cars.

What's New at Pret a Manger and Itsu - Marketing

Pret a Manger is nearing its 30th anniversary, with expansion on its marketing menu to drive future profits. Rather than grow through franchising, Pret opens new company-owned stores in selected locations to maintain control of the fresh-food quality and the positive customer experience. Soon to open are new Pret stores in Shanghai, as well as in France, the US and of course, the UK.

Knowing that many consumers use their mobiles to search out convenient places for take-away, Pret (like many marketers) has a special site that looks good on the smaller screen for effective mobile marketing. In addition, it offers an app for customer convenience in finding the nearest location or checking the day's soup specials.

Founder Julian Metcalfe is also expanding Itsu, an Asian restaurant chain with dozens of locations (see its London news on Facebook here). Itsu doesn't offer breakfast but gets busy for lunch and dinner. It also has an online grocery division and some Itsu-branded foods are available in Boots, Tesco and other retail outlets. Good for the brand recognition and for expansion beyond company-owned locations.

Pret a Manger is established in US markets; will Itsu open across the pond, as well?

Four views of the top five UK brands in 2014

Superbrands UK says the top UK consumer brands in 2014 are:

1. British Airways
2. Rolex
3. Coca-Cola
4. BBC
5. Heinz

Brand-Finance says the top global brands of UK origin in 2014 are:

1. Vodafone
2. Shell
3. HSBC
4. Orange
5. Tesco

LinkedIn says the top five most influential UK brands among its members in 2014 are:

1. Financial Times
2. Ernst & Young
3. BP
4. Unilever
5. Hays

The Grocer says the top five grocery brands in 2014 are:

1. Coca-Cola
2. Warburtons
3. Walkers
4. Birds Eye
5. Cadbury Dairy Milk

Did you notice? The top five brands on these lists don't overlap at all, with the exception of Coca-Cola, which appears on both the Superbrands list and The Grocer list.

Packaging: the fifth P

Product, price, place and promotion--those are the classic 4 Ps of marketing. Many experts say that packaging is the fifth P because it reflects and integrates the other four elements. With engaging packaging, brands can convey their emotional sides without sacrificing storage functions. 

Browse the case studies on Packaging News and you'll see how packaging has been designed to 'sell from the shelf', add value through specific benefits that target specific audiences, convey brand values and more.

For example, Yorkshire-based bakery brand Grandma Wild's commissioned unique packaging for its biscuit and fudge products, with the idea that the nostalgic camper-van packages would not only attract attention in stores, they could be toys after the baked goods are gone. Packaging has been a vital element in Grandma's marketing tool kit for decades as it addresses the needs of particular target markets.

Take a look at packaging created by award-winning designers, as featured on the Design Intellect site. These packages show creativity in helping to sell products from the shelf, reinforcing brand logos, highlighting product benefits and accomplishing other marketing objectives in addition to protecting products and keeping them safe and convenient.

When you're in London, you can visit the Museum of Brands and see more packaging from the past 100+ years, along with advertising. Visit its Facebook page for the latest info.

How are UK consumers paying for purchases?

Cash or credit or debit or contactless or mobile payment?

Only 50 years ago, consumers used mainly cash to pay for purchases at the point of sale, although some paid with cheques. Credit cards were first introduced into the UK market in the 1960s--a major change that still reverberates today.

How consumers pay for UK purchases has changed over the years. Cash is no longer the overwhelming favourite for payments, a trend that is unlikely to reverse in the future. In 2010, fewer cheques were being written than in years past; less cash was being dispensed at ATMs; and more cards (debit mainly but also credit) were being used at the point of sale.

Just two months ago, the Payments Council released a report saying that cash still accounted for 52% of all UK payments in 2013. So coins and bills are not going away anytime soon.

Although credit cards are in widespread use--an estimated 64% of the UK adult population carries a credit card--there has been tremendous growth in the use of debit cards during the 21st century.

Another trend is the rise of contactless payments--via plastic or a key fob or another device held near the till--increasingly accepted for transportation and other purchases. In fact, competing mobile wallets (also known as digital wallets) are on offer, allowing consumers to use the mobile itself or a mobile phone number to pay. Tesco wants you to use its mobile wallet, as does PayPal, among others.

Individual marketers are also providing apps to facilitate speedy, convenient mobile payment. Starbucks has payment apps for iPhones and Android mobiles.

Watch for more changes in consumer behaviour as the usage of mobile shopping and mobile payments increase in the coming years.

Hello smart phone, goodbye camera, music player, sat nav . . .

The smart phone has become the go-to gadget for so many functions that it is pushing some established products into the decline stage of the product life cycle.

An article in today's Guardian lists a number of products and technologies that are in decline, thanks to the smart phone, including:

• Mobiles. Plain vanilla mobiles are increasingly uncommon. Within six months, 80% of the UK market will be using a smart phone, rather than an ordinary mobile. A fraction of UK consumers will resist smart phones and retain their mobiles, but this type of phone is clearly in decline.
• Landlines and pay phones. Who needs them? Landlines are more common than pay phones, of course. But even landlines are in decline as text takes over. As for the absence of pay phones, let's just say the Tardis will stand out in modern-day cities.
• Cameras. Sales of inexpensive, stand-alone cameras are really in decline as consumers point and shoot with their smart phones. However, upmarket, feature-rich cameras (such as the new smart cameras and specialty 3D cameras) may attract photo enthusiasts, even those with a smart phone.
• Music players. The Walkman is long gone, and sales of iPods are down, down, down. Apple's most recent results definitely show fewer iPod units being purchased, although a price cut for the iPod Touch has helped recent sales of that product. (Cutting price to prolong the product life cycle is a classic technique.) Smart phones are music players, so why carry an extra gadget?
• Portable tape recorders. Remember when reporters used small cassette recorders to capture what interviewees said? There's not much market for a separate recorder when your smart phone can record voice or any other sound.
• Netbooks. Small, portable, inexpensive. But now almost extinct.
• Sat nav devices. With free sat nav apps available for smart phone users, individual sat nav devices are losing market share. No wonder the biggest sat nav brands have their own apps.

More mobiles, more mobile advertising

Spending on mobile ads to UK consumers will exceed £2 billion in 2014, according to eMarketer. That puts mobile ad spend on a par with print ads--but by 2015, mobile ad spend is projected to be higher than newspaper ad spend. By 2016, mobile ad spend could even surpass TV ad spend.

Marketers know consumers are using mobile devices like iPhones and iPads for everything from communication to price-checking to shopping to . . . social networking. And with lower-priced smartphones widely available, mobile ownership continues to rise.

No wonder marketers are testing new ad formats and configuring ads specifically for mobile users. Screen sizes differ among mobile devices, an important consideration in ad design.

Also, marketers must understand the buying decision process--where and how consumers use mobile to search for products or brands, to compare prices, to make purchases. That consumer behaviour background will help companies determine what messages to craft, what media to use and when to advertise to best advantage.