Market share and competition in UK grocery retailing

UK supermarkets are locked in an intense competitive battle that often focuses on price. According to Statista, Tesco maintains its market-share leadership with 28% of the UK market for groceries, followed by Asda, Sainsbury and Morrisons (12 weeks as of March 1, 2015). Aldi and Lidl are increasing their share as well, making the UK a highly competitive marketplace for all in the grocery industry.

Morrisons has just made a change in its marketing plan: It will replace many self-service tills for express checkout of small orders with tills operated by staff members. The change in strategy is due to negative customer feedback about using self-serve for a few items. Surveys show that customers enjoy conversing with staff and they want speedy checkout when shopping for only a few items.

The CEO says: 'These checkouts - and our very helpful staff - will offer a quick and personal service, helping to keep queues low and improving thousands of shopping trips'.

Price wars are still the most visible element in UK grocery retailing, but convenience and personalised service are also important to customers. Now Morrisons (and its rivals) will watch customer behaviour to see reaction.

Tesco, Euphorium and the marketing power of bread

Founded in 1999, Euphorium Bakery quickly demonstrated the marketing power of fresh, high-quality baked goods. The premium bakery flourished and by 2012, it was opening branches inside Tesco stores, which also invested in the business.

This month, Tesco announced it would purchase the business entirely, a transaction that will allow the supermarket to showcase its upmarket credentials to affluent shoppers. Just as important, having Euphorium bake breads on the premises will differentiate Tesco from its discount competitors--a key element when grocery retailers often rely on price rather than quality for marketing power.

Tesco has been struggling to redefine itself and regain its financial strength after stumbling with overseas expansion and other problems. Euphorium has earned a good reputation amidst increased consumer interest in high-quality food, and for Tesco, this in-store bakery will be a meaningful point of differentiation in the high-stakes grocery industry.

Happy 45th anniversary to Earth Day

45 years ago, the first Earth Day was held on 22 April 1970 to call attention to environmental issues. Today, Earth Day activities have spread worldwide as more individuals, businesses, NGOs and governmental agencies think green.

A wide variety of events are being held online and in person throughout this week, to raise awareness of environmental issues and opportunities worldwide through green marketing for all ages. For example:

• Ocean & Earth Day at the University of Southampton's National Oceanography Centre is a family-friendly open house filled with interactive presentations.
• International Mother Earth Day is the focus of a United Nations initiative for climate-change leadership.
• Rovio, the digital entertainment firm, developed a special Earth Day environmental level of play for its popular Angry Birds game.
• Oxford University Press is offering free access to journal articles about environmental concerns and studies in celebration of Earth Day.

Red Nose Day crosses the pond

Red Nose Day began in 1988 as a way for Comic Relief to raise money for charities.

The UK Red Nose Day in March increased the total amount of Comic Relief's fundraising to more than £1 billion over 30 years, an incredible level of support for worthy causes such as reducing poverty and eliminating social injustices.

Red Nose Day has spread to Finland, Germany and now it will debut in the US, where singer Christina Aguilera and actress Sienna Miller will headline the promotions, along with Mad Man star Jon Hamm.

One of the largest US chemist chains, Walgreens, is the exclusive retailer of official red noses.

M&Ms, a Mars brand, will cosponsor in the US, as Mars has been involved with the UK Red Nose Day for some time. M&M's USA Facebook page has more than 10 million likes, which gives the brand some social media leverage for promoting Red Nose Day.

NBC will broadcast the live three-hour telethon on the evening of 21 May.

Burberry: To be a great brand, be a great company

Burberry (founded in 1856) is acknowledged as a great brand, with millions of global brand fans and laudable financial results. What does Burberry think about its stature? Here's a quote from the website:

Burberry believes that to be a great brand, it must also be a great company. Burberry constantly leverages the energy of its creative thinking culture for positive change, within its own organisation as well as in its business partnerships, wider community engagement and societal and environmental impact.


In other words, Burberry isn't just a fashion brand, it's also a creative force for good and for fostering creativity throughout the business world and society. And it has creatively revitalised the 159-year-old brand by using customer behaviour as the basis of its 21st century marketing.

Digital is, of course, a major element in Burberry's brand marketing. The CFO observes: 'We talk about the customer being agnostic, that’s how we think about digital versus mainline [sales]'. Customers can browse and shop as they choose, whether online or via mobile or in stores. Increasingly popular, click and collect (established in 2013) now accounts for 20% of Burberry's digital business. Being able to personalise Burberry sites for individual tastes and interests engaged customers in creative ways, as well.

Not only is Burberry embracing digital, it remains a solid presence in shopping centres and high streets worldwide, with 214 retail stores, 213 concessions, 57 outlets and 67 franchise stores. And it's a social media darling, with 1.7 million FB likes and 128,000 Pinterest followers.

Keeping up with key performance indicators (KPIs)

Key performance indicators (KPIs) are specific financial and non-financial measures that a company, governmental agency or NGO uses to determine whether its marketing strategy is moving the organisation in the direction of its short- and long-term goals.

Different industries rely on different KPIs to assess marketing performance. Banks--including Metro Bank, based in London--want to increase the number of account-holders, increase the number of services utilised by each customer, increase deposits and retain customers for years. Performance is measured by KPIs that indicate progress towards those goals.

Metro Bank, a 'challenger bank' competing with long-established banks on the high street, differentiates its neighborhood 'stores' on the basis of responsive, in-person service while offering online and mobile banking for customers who want tech options. Measuring the results of Metro's marketing strategy requires KPIs that link back to the goals, such as growth in customer deposits. Another KPI is profitability--so far, a goal that Metro Bank is moving towards but has yet to achieve.

What about KPIs for retailers? Online grocery retailer Ocado seeks to increase customer spend, among other goals, which translate into KPIs such as growth in average order size. As the above table from Ocado's recent results indicates, other KPIs include average number of orders per week, average deliveries per van per week and on-time delivery performance. Product wastage is not just a financial measure--it affects Ocado's sustainability performance, as well.

Pop-up shop strategy

Pop-up shops continue to be the most vibrant marketing trend in retailing, bringing new products and new formats to where shoppers work, walk, shop or visit. The strategy is to showcase a brand or a range in a specific place for a specific time, or to test new brands or new products before widespread introduction. Obviously, social media marketing is a must to build buzz and make the most of this limited retail opportunity.

Above, Temple Cycles previews its new range of bespoke steel frame bicycles at Bristol's Harbourside Market, just weeks before the startup opened a pop-up shop for a week at Cheltenham Market. The strategy for introducing the brand via pop-up is to allow buyers to see and experience the product for themselves before placing an order.

Fashion brands are increasingly using pop-ups for or by viral marketing. Marc Jacobs used a "pop-up shop" last year to promote Daisy, a new fragrance. The twist: This was a tweet shop, with no money changing hands, and the location shifting from city to city as the promotion continued.

Restaurants and food brands are using pop-ups to take their products to where the crowds are, such as at Field Day in London's Victoria Park.

The prestigious Olivier Awards is using a pop-up in Covent Garden to promote the awards, present workshops and unroll the red carpet for celebrities.

Where will the next pop-up appear?