Account planning: more important than ever

Account planning skyrocketed into vogue decades ago, helping leading agencies better understand consumer behaviour and attitudes. Thanks to account planning, brands like Oxo were represented by memorable ad campaigns that truly connected with customers.

Is account planning relevant today? Yes, even more so in the age of Big Data.

Account planning can and should still be the "voice of the customer" informing message and media creativity, major decisions at any time. Data aren't people--and being with people can help planners understand the differences and similarities that characterize customer behaviour and reveal underlying needs and motivations.

Ogilvy & Mather has been sending planners from its London base to every corner of the UK, seeking real everyday interactions with real people. 'So, as planners, if we never leave London, how can we hope to connect? The best ideas are those that get talked about in the street, at work, in the pub or in your kitchen', explains O&M's chief strategy officer.

Account planning can offer the insights that enable marketing, advertising and branding breakthroughs via innovative ideas linked to cultural and social trends. Account planning can spark inspiration and differentiation. Yes, support the insights and creativity and implementation with Big Data, but keep account planning in the equation to represent the real-life voice of the customer.

Aldi, Lidl and the grocery price war

Aldi and Lidl, two German-based discount supermarkets, are gaining UK market share through a seemingly never-ending price war against the local grocery retailers that once dominated the industry.

Consumer behaviour suggests that cash-strapped shoppers aren't completely returning to pre-recession buying patterns but continuing to seek out bargains and stretch their pounds in certain product categories.

Today, Aldi and Lidl are so well-known that these grocery names topped You.Gov's recent BrandIndex, exceeding the brand ranking of the BBC, John Lewis and other leading brands.

Lidl's newest strapline is Big on quality, Lidl on price, calling attention to its competitive strengths. For several years, Lidl has steadily increased its market share, and 2016 was its best UK holiday trading period ever.

Aldi is promoting its pay packages for staff, showing that employees make more than the minimum wage and putting pressure on rivals to increase pay as well--adding to the goodwill its brand enjoys. Like Lidl, Aldi's 2016 holiday trading period was its best ever in the UK, with higher market share as a result.

How will Tesco, Morrison's, Sainsbury's and John Lewis fight back in 2017?

Maltesers, Braille and shrinkflation

A new poster ad for Maltesers, made by Mars, is entirely in Braille--quite a novelty and a way of recognising a portion of the population that can't access traditional advertising.

Model Maltesers were used to spell out, in Braille, this message at one London bus shelter: 'Caught a really fast bus once, turns out it was a fire engine'.

Maltesers has a long-running ad theme #LookontheLightSide and this bus-shelter ad is part of the inclusiveness campaign as well as celebrating World Braille Day. More than 1.5 million people like the Maltesers Facebook page, where this photo was posted.

Meanwhile, Mars is reacting to higher commodities costs by shrinking some of its products. Malteser 'sharing' packages will contain 15% less than today but sell for today's price.

What Mars has done by reducing the contents of the Malteser package is part of a trend dubbed 'shrinkflation'. Mars competitor Mondelez recently changed the shape of its Toblerone chocolate so it contains less chocolate but sells for the same price as before, to avoid increasing the retail price.

Other chocolate marketers are also deciding between reducing the amount of product and raising the price. Because so many consumers are so price sensitive, shrinking the product may be more acceptable to buyers than increasing prices...for now.

Consumer behaviour and the 'big night in'

Marketers have identified a trend in recent years, based on evolving consumer behaviour such as saving money and making time for family. The trend is towards planning a 'big night in' instead of a traditional 'big night out'.

Rather than splashing out on a restaurant meal and cinema tickets, many consumers are making plans to enjoy food and entertainment at home. Pizza, anyone? New Year's Eve was a 'big night in' this year for consumers in Wales, research shows.

Targeting this occasion, Sainsbury's and other marketers, offer snacks, drinks and more. Above, Sainsbury's online store, with a 'big night in' page offering 'easy cook' meals, snack foods, DVDs and video on demand. Poundland wants to attract shoppers interested in snacks for a big night in, whether the entertainment is a movie or a sleepover.

'Big night in' is influencing multiple marketing elements. For example, snack products are increasingly packaged in larger sizes for family sharing. 'Generally, the packaging is bold and often piggy-backs a cinematic theme as families try to create a movie going experience without actually leaving home', says one packaging expert.


 

The latest in McDonald's marketing

McDonald's is always cooking up something new to market. It's just redone its McCafe brand look, as shown above, for a more upmarket, posher image. In fact, the fast-food chain will switch to all-sustainable coffee beans by 2020.

McCafe is challenging Costa and Starbucks and all the others selling gourmet and special coffees in the UK. Also, to be an integral part of local UK communities, the McDonald's site has a special section on grassroots football. Did you see McDonald's holiday advert, featuring Juliette the vintage wooden doll? Fun.

In addition, McDonald's just opened a fast-food outlet a few steps from the Vatican--touching off a controversy. In response to negative comments, the company announced: 'As is the case whenever McDonald’s operates near historic sites anywhere in Italy, this restaurant has been fully adapted with respect to the historical environment'.

BTW, McDonald's UK is highly social: 68m Facebook likes, hundreds of thousands of Twitter followers and lots of videos on YouTube. Working hard to engage customers!

Mind the gender price gap

PRICING: SAME FOR MEN AND WOMEN?

 

Last year, price policies made headlines with disclosures that functionally equivalent products like razors and blades were priced higher for women than for men. Boots took action within weeks, reviewing its pricing with and making changes, with the statement:

This review has reassured us that for Boots own brands the two reported examples, Boots disposable razors and Botanics eye roll-on, are indeed exceptional cases which do not completely meet our principles and we are taking action to correct these prices.

Now Tesco has also changed its pricing so razors cost the same for men as for women. It said: '...following an internal review and discussions with our suppliers, we have acted on concerns about the difference in price of our female and male disposable twin-blade razors, in line with our commitment to ensure consistently low, simple and affordable pricing.'

In 2017, more retailers are likely to follow this model and eliminate the gender price gap (sometimes known as the pink tax) so that functionally equivalent products are priced the same, regardless of whether the target market is male or female. But this same pricing trend is not as widespread among hair stylists. How many other product categories will move toward gender-neutral pricing in 2017?