Saturday 30 January 2016

Omnichannel retailing wins

Consumers are increasingly browsing and buying via mobile. It's not enough to have a good retail location and good merchandise assortment. An attractive, easy-to-navigate mobile site is necessary to win shoppers in today's omnichannel environment.

Apps are vital for branded products and retailers in this situation, yet consumers don't necessarily use the brand's apps for comparison pricing, instead choosing Amazon or another retailer's app. Also, consumers may scan or input item information to store via mobile and buy (in-store or via app) in the future.

According to a recent study of UK retail sites, Argos had the highest average monthly share of mobile visits in 2015, with a 76% share. The full top 10 list is:

  • Argos   ...    76% share
  • Boots   ...    75% share
  • Next   ...      72% share
  • Tesco   ...    71% share
  • Curry's   ..   70% share
  • Amazon ..   64% share
  • Asos   ...     62% share [tied with Marks & Spencer]
  • M&S  ...     62% share [tied with Asos]
  • John Lewis 60% share
  • eBay   ...     59% share

Tuesday 19 January 2016

Unilever faces changes in consumer behaviour

Butter is becoming more popular as consumers return to its taste and its natural ingredients. McDonald's, for instance, has experienced higher demand for its Egg McMuffin sandwich since switching from margerine to butter last year.

And this is only one of the changes in consumer behaviour that are challenging Unilever, which markets such spreads as I Can't Believe It's Not Butter, Stork and Flora.

Recent financial results show spreads lagging in revenue growth. Yet the company, which was created early in the 20th century by combining the soaps of Britain's Lever Brothers with the spreads of Dutch margarine maker Margarine Unie, isn't ready to simply sell the spreads division. With consumer behaviour changes in mind, it is putting new marketing efforts behind new products in its existing range, such as Stork with Butter.

Being a global corporation, Unilever has 400+ brands in markets on every continent. And it recently arranged to begin marketing again in Cuba, after an absence of several years. But the CEO sees a challenging year ahead as economics give consumers little reason to reach into their pockets and spend.

Monday 18 January 2016

Chocolate demand is up but supplies are down

Updating the sample marketing plan in my Essential Guide to Marketing Planning, here's a look at the marketing situation of my fictional company, Lost Legends Luxury Chocolatier.

Even as the world's appetite for chocolate treats increases, the world's supply of cocoa beans is not keeping pace. In fact, chocolate supplies are declining. As crop yields drop, chocolate marketers like Mondelez are advising growers on how to improve. And, of course, lower supplies mean higher prices on the wholesale level, which often leads to higher prices on the retail level (and profit margin pressure).

Small marketers are seeing opportunity. One growing firm in South America wants to put the spotlight on its fine chocolates made not from beans grown in Africa, but in Ecuador.

Meanwhile, some of the biggest chocolatiers are innovating to appeal to choco-lovers worldwide and throughout the year. An ongoing challenge has been making fine chocolates that retain their properties and quality in hot conditions. For areas where air conditioning isn't widespread, or retail stores that aren't equipped to store chocolates in a cool place, Barry Callebaut is now marketing 'heat-resistant' chocolates.

In Japan, where chocolates are one of the favourite gifts on gift-giving occasions, Kit Kat has a new hand-crafted, gold-dusted bar for the status conscious consumers who are willing to pay more for a special product. Limited quantities only add to the scarcity and perceived value.

Tuesday 12 January 2016

Colourful new look for McDonald's packaging

McDonald's is updating its take-away packaging for a modern, 21st-century look. 'Every day 69 million customers visit McDonald’s around the world and this new packaging will be a noticeable change', says the company's senior director of global marketing.

Notice the use of the Golden Arches as the M in McDonald's? And the updated colours that are bold, a little playful and positive? This new packaging was created by a global team of designers who were brought together for one week to brainstorm. Their ideas were then presented to consumers for input and reaction.

Finally, the core ideas were provided to a Chicago-based design firm for refinement. The result: Simpler, less frenetic graphics that instantly convey the brand and the affect behind the brand.

The new packaging is part of an ongoing marketing effort to generate higher sales for McDonald's worldwide.

Tuesday 5 January 2016

Lucky bags and consumer behaviour

In Japan, a highly popular tradition at New Year's is rushing to buy lucky bags, which contain desirable merchandise sold at a super-bargain price. Shoppers wait for hours to be able to buy these deeply-discounted items, sight unseen, in a 'lucky red' sack.

Another element driving consumer behaviour: Quantities are limited, which makes the tradition even more appealing to shoppers who enjoy the hunt as much as they enjoy the big savings.

Department stores all offer lucky bags, as do specialty stores, food retailers (including supermarkets) and even fast-food outlets like McDonald's and Mister Donut. Apple stores also offer lucky bags.

Check out these Getty Images of crowds rushing to buy lucky bags.

Sunday 3 January 2016

Marketing predictions for 2016

Marketing experts have a number of predictions for the year ahead. Keep these developments in mind if you're creating or refining a marketing plan in 2016:
  • Trust will be more important than ever. Brands must take care to keep earning it with every transaction, every marketing action. Customers still want transparency and authenticity, not just the right product at the right price.
  • Omnichannel is no longer merely an option, it's a basic requirement as customers expect personalisation and relevant marketing communications and offerings across platforms, online and offline. Customers who buy online should be able to return products in a store without fuss.
  • Real-time analysis of Big Data wins. Customers leave traces everywhere they digitally go. It's up to marketers to interpret wants and needs by tracking behaviour and offering ads, content and other information at the moment consumers need and want it.
  • Virtual reality is a reality. Brands and entertainment marketers need to have communications and services for cutting-edge technology, especially for millennial consumers.
  • 'Alternative' has gone mainstream. Goods and services that were once on the margins are increasingly popular. Customers want 'unique', and retailers want to differentiate themselves by offering something other than the usual.
  • 'Buy it now' is the new social media reality. See it on Pinterest or Instagram, buy with a swipe or click. Is your brand ready to take advantage of this trend?