UK advertising trends

The UK economy is growing, which helps the UK advertising business rebound. As of 2018's first quarter, advertisers increased investments in digital advertising by more than 10%, not a surprise. What was a surprise was the increase of 12.5% in spending on radio advertising by 12.5%, a very strong result for this medium.

Another surprise was the increase in national newspaper advertising. Newspaper advertising spend had been decreasing since the end of 2010--until now.

Digital is, of course, a major focus for many advertisers. Yet transparency and trust remain a concern. The UK Competition and Markets Authority recently warned several influencers that any sponsored/commissioned posts on social media must be clearly marked as such.

Because celebrities and social media stars have millions of followers, what they post can make a difference in brand recognition, awareness and preference. That's why, says the senior director of the CMA, consumers should be 'clearly told whether a celebrity is promoting a product because they have bought it themselves, or because they have been paid or thanked in some way by the brand'.

Meanwhile, the Advertising Standards Authority is looking closely at marketers targeting children. It recently told Cadbury, Chewits, Squashies, KFC and Kellogg's to stop targeting children with digital adverts for foods that contain large amounts of fat, sugar or salt. For more about how the ASA protects children and vulnerable audiences, and for examples of banned adverts, see its explanation here.

Nike expands social media marketing strategy

You already know that Nike is one of the most social media-savvy brands on the planet--with 28 million people following it on Facebook and 653k Twitter followers. The US-based company is always expanding its strategy to reach targeted audiences via the latest social media tools.

For example, Nike is the first to have a brand channel linked to Tonsser, a social app for young football (soccer) players. Nike will be posting engaging and informative edutainment, a combination of educational material (how to improve your skills) as well as brand-related content.

Nike is extremely active on Instagram, where it will soon begin selling its products, not just displaying styles and other details. According to one report, Nike has 72 million Instagram followers, making it the most popular 'high street' fashion brand on Instagram (ahead of H&M, Zara and Adidas in that order).

What's next for Nike's high-energy, high-performance social media marketing?

How L'Oreal uses apps for product marketing

The global cosmetics giant L’Oréal markets dozens of beauty products in the luxury product category (such as Lancôme), professional products (such as Redken), mainstream consumer products (such as Maybelline New York) and active products (such as Vichy).

Now the company is leveraging apps to deliver information and product benefits to consumers and professional customers: 

• Hair Color Genius and Makeup Genius are apps to help consumers try and select the best hair and skin products for the looks they want. Makeup Genius, available for several years, has been downloaded more than 20 million times worldwide.
• Targeting beauty professionals, the company's 'Style my hair' app shows the right products for each hairstyle and situation. Hair professionals select the client's face shape, virtually test cuts and colours, and demonstrate how to get that perfect look.
• Another app for professionals is 'Matrix Academy', a virtual reality simulator that helps professionals learn the latest techniques for contemporary hair styles.
• For consumers, L'Oreal offers a 'My UV Patch' app that works together with its La Roche-Posay sunscreen product, to monitor UV exposure and protect skin. 

Poundland's pricing strategy

Poundland sells everything for £1. Or at least that was its traditional pricing strategy. In recent months, the retailer known for its one-price strategy has expanded the number of products sold at a higher price. 

From time to time, Poundland offered special deals over the one-pound price (see "Replay DVD" here). But recently, Poundland posted store signs announcing more value deals, meaning the sale of merchandise priced over the one-pound price.

Was the change in pricing strategy due to Brexit's impact on the pound? Poundland says Brexit is not to blame. The retailer is actually expanding its merchandise offerings: 'The rationale was to bring customers more value products than is possible at the £1 price point'.

In fact, Poundland is opening stores under the brand 'Poundland & More' to test the strategy of mixing £1 with a range of higher-priced value deals.

This post updates the Poundland example in the targeting and positioning section of Chapter 7 within my Essential Guide to Marketing Planning.

Start-up success requires product expertise, thoughtful targeting

Brighter Foods was recently named Wales Start-up of the Year. Founded in 2014, the company specialises in healthy snack foods. Brighter Foods was also named food and drink start-up of the year and manufacturing start-up of the year for 2016.

It targets consumers who seek out snacks that are healthy and taste good. Among its products are snacks with high fibre, low fat, no dairy and/or no gluten. This is a fast-growing segment of the market and a promising target opportunity for an ambitious business seeking to expand sales.

In addition to contract manufacturing, Brighter Foods developed and now markets its own Wild Trail brand of snack bars, which are gluten- and dairy-free.

Wild Trails is being marketed via a microsite and is also available at Tesco, a channel partner that can help build brand awareness quickly. What product innovations will Brighter Foods introduce in 2017 to maintain its growth momentum?

IBM thinks 'consumer' and 'brand story'

Traditionally a business-to-business marketer of computer hardware, software and consulting services, 105-year-old IBM just hired its first chief marketing officer for the corporation. Why? Because IBM is increasingly visible to the consumer world and needs to be sure its marketing is targeted, coordinated and differentiated across every subsidiary, product line and location.

In particular, the new CMO has experience with digital marketing and is knowledgeable about the importance of Big Data, key elements in IBM's marketing plan for Watson and other initiatives.

IBM has developed a range of sophisticated tools for applying analytics to customers' marketing challenges. When marketing IBM itself, Big Data is the key to segmenting markets and communicating what it can offer to meet individual customers' needs.

Did you know IBM now hires professional screenwriters to script ads? Professionals know how to tell a story, which all brands must be able to do to engage B2B or consumer audiences. 'Ultimately, our goal is really to make an emotional connection, and we think we can do that better by being personal without of course, being creepy', notes the CMO of IBM Commerce.

Pop-up shops boost brands, test products, target customers

Pop-up shops are increasingly popular. Some pop-ups test interest in certain merchandise or new products. Others are opened for short-term promotion of brands amongst targeted customers.

Pop-ups don't always sell merchandise...sometimes they're focused on bringing the brand experience to life for a limited period in a targeted location.
Not only are pop-ups temporary, they can also be located or relocated to specific areas where target customers live, work, shop or enjoy leisure activities like sports and concerts.

Here are a few recent examples of UK pop-ups:

• Kanye West opened pop-ups in London and elsewhere to promote his current album.
• Morrissey opened a pop-up in the Salford Lads Club when he appeared at Manchester Arena.
• A dance teacher opened the Ballet Box in Westmorland to dance apparel.
• Insert Coin opened a London popup to promote its new line of Pokémon apparel.

Unilever's social, mobile and digital future

Unilever's head of consumer and market insights said last week that brands must 'Be social or get ready to be branded "anti-social"'. Social media marketing is a strength for Unilever, which has found that buzz actually translates into sales, not just goodwill and brand awareness.

With market demographics and behaviours changing, the Unilever exec says companies should not worry about having different strategies for seniors and Millennials, two customer segments that his brands target.

Unilever's well-known brands continue to use traditional adverts but some--such as Knorr--are also experimenting with artificial intelligence to give customers the information they need, precisely when needed. As an example, Knorr's Chef Wendy invites consumers in Asia and Africa to text for recipe ideas based on the foods they have on hand.

Looking toward the future, Unilever is part of a new coalition that will share market-research data with the goal of helping all better prepare for sustainability, address income inequality and eliminate poverty.

In addition, the Unilever Foundry project is focusing on five areas where startups can make a difference in 2016: (1) retail, (2) content creation, (3) data insights and innovation, (4) sustainability and (5) new technologies.

L’Oréal aims for one billion new customers

Millennials often like to shop in stores but first, they research products online. That's one of the insights L'Oreal is using to support its global marketing initiatives and ambitious long-term goals.

The beauty company, which owns such well-known brands as Lancome, the Body Shop and NYX, has put more emphasis on e-commerce during the past year--and shoppers are responding. The CEO recently said that total e-commerce sales in 2015 will exceed one billion euros, out of total revenues of more than 22 billion euros.

Shoppers in many nations know and trust L'Oreal brands, in part because the company adjusts its products for the needs and preferences of each consumer segment. In fact, L'Oreal features stories of multicultural innovations on its corporate website. Digital is increasingly important to the company as it seeks to attract 1 billion new customers while differentiating itself from competitors all over the planet.

No brand stays the same forever, because the marketing environment is constantly changing, including customer needs and competition, as well as regulations, environmental concerns, product possibilities and materials.

The CEO walked through a redone Body Shop store not long ago, and then told the fashion publication WWD: "The problem is that we have to represent the brand so that it looks new and it doesn’t look like the old Body Shop. That was The Body Shop of our mothers or the Millennials’ mothers and they [millennials] want their [own] brand." Which is why L'Oreal has revamped Body Shop so it represents its brand values in a way that's relevant to younger shoppers, emphasising ethical sourcing, value for price paid, function as well as fashion, natural ingredients and environmentally-friendly products and processes.

Marketing Brompton Bicycle

Only two companies still manufacture bicycles in the UK, and one is Brompton Bicycle of West London. Brompton's MD says its folding bike is favoured by city-dwellers who want 'a solution to an urban living problem'. He tells the Guardian: 'We are in the urban transport industry; the competition for Brompton is the tube or the car'.

Brompton's bikes are differentiated by their sturdy frames and, more importantly, by how compact they become when folded for storage. The company has a cult following, with some customers chronicling their bike adventures on blogs or via other social media. (Brompton has more than 17,000 Twitter followers and 42,000 Facebook likes plus more than 7,000 Instagram followers.)

Brompton is growing rapidly to meet ever-higher demand for convenient transport in cities domestically and abroad (urban locations and consumer behaviour are clearly key to its market segmentation). This year, the firm projects unit sales of 50,000 in more than 40 nations, with only 20 percent of its output remaining in Britain. Asia and the United States are particular target markets with strong demand for commuting options such as folding bicycles.

By 2021, the company plans to double its output and is therefore relocating to a larger production facility next year. And it's also stretching its product line by planning for an electric version of its popular folding bike, to 'get rid of the sweat and Lycra' and make bike commuting less strenuous and more fun.

Social media marketing and the World Cup

No other World Cup has ever been as social as the 2014 championship series, now underway. And that's opening new marketing opportunities for brands large and small.

Official sponsors such as Coca-Cola are spending huge amounts to associate with the World Cup and reach the hundreds of millions of people who follow the matches day by day by day. Coke has said its World Cup marketing will be on a scale with its Olympics marketing budget. The soft drink marketer's photomosaic Happiness Flag, being unveiled today, is one of its big social media events linked to the World Cup, with photos crowdsourced from 200+ nations.

Of course Nike and Adidas are using their marketing muscle to attract attention and boost their brands to football fans everywhere. Adidas's YouTube entry above stars football greats. Nike's YouTube entry below uses appealing animation. All these videos have attracted millions of viewers across the globe.

Brands worldwide are playing off World Cup themes to reach their target audiences. The UK plumbing brand Dyno has its own 'Rush to flush' campaign, offering plumbing services to help consumers keep their toilets operating properly even during crucial matches.

LEGO's marketing plan: new distribution, new products

On the last day of February, LEGO opened its largest European store on the grounds of Disneyland Village at Disney Paris. (The official Disney Paris site hasn't updated its 'coming soon' note about the new store, but the store's definitely open--it's listed in the LEGO store locator here.)

Increased distribution through company-branded stores is only part of LEGO's marketing plan for ongoing growth. The Danish company is also broadening its appeal by creating new minifigures featuring women as scientists (above, the chemist). The new minifigures were designed by a geochemist and submitted via LEGO's ideas crowdsourcing website, reviewed by the company's officials, and finally cleared for a new product introduction promotion in August.

Via this ideas website, several other new products are under consideration, including a Doctor Who block set, as shown above, and a set based on the US TV show Big Bang Theory. Watch for decisions in a few months. Given the immense popularity of these TV shows, new LEGO sets may tap into the adult market as a targeted segment, in addition to the traditional children's market for building blocks.

Specsavers segments the market for eyewear

How does Specsavers, the retail eyewear company, segment the consumer market for spectacles?

It starts with the broad definition of the available market: Customers who are interested in and have sufficient income and access to the product--meaning people who already wear prescription spectacles or want the fashion or function benefits of reasonably-priced spectacles, both indoor and for the sun.

Specsavers then applies a number of segmentation variables, including demographics (men/women), geographic (location in the UK, Australia, and 8 other countries), lifestyle/personality (fashion consciousness), price sensitivity (affordable eyewear), brand loyalty and perceived benefits.

The company partners with local optometrists and retailers to open branded stores that combine the buying power of a large retail chain with the personal approach of eyecare professionals who are based in and understand the local market. The combination makes for powerful competition. When Specsavers entered the Australian market in 2008, it opened 100 retail locations in 100 days. Today, the company has captured 35% of the market, and high brand recognition is helping its 290+ locations attract and retain customers. The business has an Australian glazing laboratory to serve the local market efficiently and effectively.

Specsavers also gives special marketing attention to specific segments within the overall market. For example, its Corporate Eyecare division offers a free booklet to help fleet operators encourage drivers to protect their eyes and eVouchers that employers can offer employees for eyewear discounts. The idea is to reach consumers by targeting their employers.

Targeting children, Specsavers has issued a special kids' magazine to promote good eyecare habits and promote specific branded frames, including Moshi Monster frames (segmentation variables: age and family situation). Just for seniors, Specsavers has a discount that supports its targeting of this large segment (age, price sensitivity).

In its home country of the UK, Specsavers sponsors a Book of the Year contest, inviting consumers to vote for their favourite book/author. At the end of 2013, best-selling author Neil Gaiman won for his book, The Ocean at the End of the Lane. This high-profile contest keeps the brand in the public eye for literary reasons, not just because of the benefits of affordable fashion spectacles.

To see what Specsavers is doing these days, visit its Facebook page (122,000+ likes), its Twitter page (20,000 followers) and its YouTube channel (more than 1 million views).

This post updates and extends the opening example in Chapter 3 of Essential Guide to Marketing Planning, 3d edition.

Planning B2B content marketing

According to the infographic at left, from a Content 4 Demand survey, social media is used by many business decision makers to share white papers, case studies and other content that can influence what and when companies buy.

It's not a surprise that LinkedIn is the top social media site for sharing B2B content and for researching vendors that sell all kinds of goods and services that businesses buy. Technology firms in particular are heavy users of LinkedIn for B2B content marketing.

A Content Marketing Institute survey shows that 93% of businesses use content marketing for B2B marketing--yet few firms are confident that content marketing is actually effective in achieving marketing objectives. Mobile marketing, now a growing element in consumer plans, is not yet a major focus of B2B content marketing.

B2B experts suggest these five tips for developing effective content marketing for a B2B marketing plan:

1. Know your target audience and what those businesspeople need. Also understand what media the target audience uses. However, don't restrict your targeting too narrowly, or you may not reach the people who might need your content (such as 'influencers' in the buying centre).
2. Understand how targeted businesses buy, how long the buying cycle might last and what will help bring decision-makers through the process towards a purchase.
3. Consider what content businesses need at each stage of the buying process. Early on, they might need more general information and then, just before they buy, more details about specifications and training. Don't push too hard to close a sale before buyers have barely begun to look at your content marketing.
4. Be sure to highlight how your offer solves an important problem for your buyers--specifically, the benefits the product will deliver.
5. Have a definite plan for content marketing, including a schedule of what content you will release and in which media (social and traditional) during each step of your overall marketing campaign.

Dunkin' Donuts Returns to London as Coffee Culture Continues

US-based Dunkin' Donuts has been marketing doughnuts and coffee, with some menu additions, since 1950. Today, it has 10,000 franchised doughnut shops worldwide and also owns other brands, including Baskin-Robbins ice cream, that are popular beyond North America. The company has sales and profit momentum and big marketing plans for future growth.

During the 1990s, Dunkin' opened franchised doughnut shops in UK markets but closed them to concentrate on more profitable opportunities. It has expanded its Baskin-Robbins shops in the UK but, until now, has not marketed doughnuts again in the UK.

Very soon, Dunkin' Donuts plans to return to the UK with 50 new franchised doughnut shops throughout London. The timing is right, says Dunkin's management, because of the established strength of the coffee culture in the UK and because of Dunkin's expanded menu offerings, including breakfast and lunch sandwiches.

Specifically, the head of Dunkin' Donuts is targeting consumers who might otherwise go to Starbucks or McDonald's for coffee or breakfast/lunch. This time around, Dunkin' must carefully differentiate itself to effectively compete with Krispy Kreme, another US-based chain of doughnut shops that entered the UK a few years ago.

What role will mobile marketing play in Dunkin's strategy to return to London?

In the US, the company is promoting its easy-pay mobile app that not only speeds up transactions, it also gives users access to exclusive mobile offers (see ad).

Starbucks UK already has an easy-pay mobile app for iPhones and Android phones.

So it would make sense for Dunkin's London stores to offer mobile options when they open, don't you think?

Stoptober: It's like October but without the cigarettes

Stoptober, the UK campaign to encourage smokers to quit for 28 days, will launch on 1 October. The campaign targets the estimated 8 million UK consumers who currently smoke. From a consumer behaviour perspective, smokers who give up tobacco for four weeks are five times more likely to permanently quit than smokers who quit for only a few days.

As a result, the Stoptober campaign isn't just informational--it invites smokers to change their behaviour by quitting for 28 days, during which they can draw strength from other participants.

In 2012, 160,000 people joined the campaign. What happened? Although not everyone completed the 28-day challenge, Devon's experience was very positive: the number of quitters increased by 15% during the second half of the year.

For 2013, the Stoptober campaign will be bigger and better, with more ways for participants to receive info and support. Traditional media such as radio and TV will introduce the campaign to the public and build interest. Involvement techniques include social media messages, mobile apps, text messages, e-mails, online videos, special events and local activities. Several websites will provide detailed info, tools for support and even stress-busting music.

Last year, celebrities such as former England player Ian Wright, Apprentice contestant Kate Walsh and make-up artist Gary Cockerill all put their fame to work encouraging smokers to quit for 28 days. Opinion leaders will do the same this year, in mass media and digital media.

The Stoptober Twitter account already has more than 10,000 followers. Tweets with hashtags such as #stoptober are building anticipation and participation. The NHS Smokefree Stoptober Facebook page, with 167,000 likes, is also active. Pinterest fans can browse pinned images on the Stoptober Pinterest account. And of course, YouTube videos are part of the marketing plan, as well. Watch for more messages throughout the month of Stoptober.

Lego becomes world's #2 toymaker

Lego has just moved up in the toy world, passing Hasbro to become the second largest toymaker on the planet.

(US-based Mattel, maker of Barbie and American Girl dolls, remains the world's top toymaker.)

One big reason for Lego's continued increase in sales and market share: the global success of the best-selling Friends play sets for girls.

Another big reason: Lego's Chima sets, which feature animals--especially popular in China, a market being targeted for additional marketing attention. 'Asia has not been a major focus for us as a company up until this point, but we see now with the emerging middle class, more and more consumers that are really interested in our ... products', the Chief Financial Officer tells Reuters. Not surprisingly, Lego will be building a factory in China so it can meet growing demand for its bricks and figurines. 

Lego also has some highly popular brand licenses (Star Wars, for example) and marketing partners that have licensed its brand (such as Merlin Entertainment). The company's knowledge of customer behaviour, branding expertise, product development skills and distribution savvy have all contributed to its worldwide success.

In UK shops and online stores, Lego's products are often featured on special themed shelves and pages. Argos has web pages devoted only to Lego, as do Amazon and Toys 'R' Us. This allows display of the full Lego range and keeps the focus on the brand and its unique personality.

Rolls-Royce 'not a volume-driven luxury car brand'

Rolls-Royce has great expectations for its latest Wraith model in India, a powerful yet elegant car. 'Wraith is drawing interest from the new customers who have not considered a Rolls-Royce before', says the automaker's general manager for emerging markets-Asia. 

Who is the target market for Rolls-Royce in India? Highly successful entrepreneurs, says the general manager. Although Wraith may attract new customers, it may also be purchased by current Rolls-Royce owners who own more than one car (the Ghost model might be used for business while the Wraith might be used for non-business driving, for instance). 

The company's approach to the market is not volume-driven, because the product is so very upmarket. Yet surely Rolls-Royce monitors sales units and revenues as metrics, and will be tracking progress toward sales goals, especially since overall car sales in India have been trending lower as petrol prices rise.

Festival time is traditionally a time when car purchases occur--and many brands are hoping to gain market share in the competitive Indian market. Rolls-Royce chose to announce its Wraith on its Facebook page, just one of many ways the company stays in touch with its market.

Will two wheels accelerate the Smart brand?

Marketing Smart has been a challenge for Daimler since its launch as an automotive brand 15 years ago. Originally a joint venture with the Swatch Group--known for fashionable, affordable watches--Smart has been Daimler's alone since Swatch sold its share back to Daimler in 1998.

Targeting hip urban drivers, Smart offers small, fun-to-drive cars that can navigate narrow city streets and fit into tight parking spaces. Daimler tried an upmarket stretch by adding larger and sportier Smart models over the years, but tepid sales forced the firm to refocus on its core two-seater vehicles.

Now Smart is about to introduce an electric scooter and an electric bike under the Smart brand, reinforcing the 'urban' brand image and adding associations with sustainability and affordability. With two-wheeled vehicles, Damiler may be able to reignite buzz and expand the target market to younger drivers who don't yet own cars.

Connecting with pet owners

According to the Pet Food Manufacturers Association, nearly half (48%) of all UK households have a pet (or more than one).

In addition to the approximately 8 million cats and 8 million dogs, the UK pet population includes an estimated 500,000+ hamsters, one million caged birds and 300,000 lizards.

The industry is highly competitive and brands must differentiate themselves in a meaningful way in order to maintain or increase market share. This means segmenting the market to target specific groups such as consumers who prefer all-natural pet foods or those whose pets have specific nutritional needs, as just two examples.

So how are pet food manufacturers reaching out to pet owners? Through advertising, of course, but also via apps and social media.

• Mars, maker of Pedigree, Cesar, Sheba and Whiskas has just introduced a new UK campaign focused on health and nutrition. 'Nutrition is what makes dogs and cats healthy and happy and that’s fundamental to every owner', explains the marketing director. 'We know more about [dog and cat] nutrition than any other company out there and have developed a strategy that helps establish that expertise in an accessible way for pet owners'. The Pedigree brand hosts a Facebook page titled We're for Dogs.
• Nestle Purina's strapline is 'Helping pets lead healthy, happy lives for over 85 years'. Purina is targeting niches as well as the mainstream pet owner. With 'my dog uk', Purina offers an app that will show owners where dogs are welcome or help owners find a vet in a hurry (left). The firm also has a Facebook page devoted to battling pet obesity.
• Hill's Pet Nutrition is launching a new pet food available only through vets, promoting the benefit of weight loss for cats and dogs. Other products feature nutritional benefits geared to the pet's age, weight and sensitivity to ingredients. Yes, Hill's is social: See its Facebook page, for example.