Merger planned between Fiat Chrysler and Peugeot

If Fiat Chrysler and Peugeot complete their just-announced merger, the resulting firm will be the industry's fourth largest.

Read more about this merger here.

Direct-to-consumer brands challenge established brands

A growing number of upstart direct-to-consumer brands are challenging established manufacturers. What are they doing? How are they doing? For an overview, take a look at this post by Reckitt Benckiser's head of global marketing and innovation.

Airbus deletes A380 from product line

Some product decisions have long time frames and extremely costly consequences. Aircraft manufacturers therefore spend considerable time studying the marketing environment to project future trends in travel and demand, before they develop and introduce a new jet.

Airbus spent billions to develop its double-decker A380 jumbo jet, betting that airlines would be ferrying large numbers of passengers from major hub to major hub. It was test-flown in 2007, receiving much publicity for its spacious interior and the amenities that could be added (such as on-board showers and luxurious first-class suites).

Airbus received some big orders from Emirates, among other airlines. In fact, Emirates is by far the largest buyer of A380s. But when Emirates cut the number of A380s in its latest order, and other orders slowed down, Airbus decided to discontinue this product after 2021. In fact, the 2020 coronavirus pandemic that brought international air travel to record-low levels seems to be accelerating the move away from A380s.

Competitor Boeing based its product decisions on a different forecast for the travel environment, believing that passengers would want to travel from point to point rather than hub to hub. It put the emphasis on nimbleness and fuel efficiency, rather than on having a high number of passengers being carried per flight. And that's attracted more buyers than the Airbus A380.

Now Boeing's original 747 jumbo jet is transitioning to a cargo carrier, extending the life cycle of this aging product. In addition, Boeing is still marketing its 777 and 787 jets to airline customers--and looking ahead with forecasts for the future of travel as it plans future product introductions.

Links to resources about marketing and marketing plans

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Competitors as partners (and stakeholders)

Not only can competitors be key stakeholders (meaning your marketing performance may be influenced by rivals and influence the performance of rivals) - but in some cases, competitors can be key partners.

An entrepreneur recently explained when he considers it good business to partner with a competitor in strategic ways:

• Partner to take advantage of opportunities for entering new markets - with co-developed products, for instance. Or to tap a new channel for distribution.
• Partner to co-purchase raw materials used by both, at a lower price due to high-volume buying in combination.
• Partner with complementary products or marketing, letting customers know about the complementary offerings and receiving customer referrals from the partner as well.
• Partner to undertake activities that will achieve societal objectives.

Microsoft, the giant technology company, asked last year: 'Are we partners or competitors?' The answer: 'Yes, we are.'

Partners, whether competitors or non-competing vendors, are clearly stakeholders when it comes to each other's performance.

In this 2017 blog post, Microsoft wrote the following about working together with competitors as partners to provide customers with what they need and add value for all participants.

It’s not a we-win-you-lose sort of deal. In fact, it’s the opposite. Every time we come together with our partners for a solution, we open a new socket that creates value for everyone. We all need to work together and use transformative technology to help partners build successful ecosystems for customers.

Tracking trends via Google search results

What were some key UK trends in 2018?

Google recently published a list of the most frequently-used search terms amongst UK users. It's not a surprise that many people searched for Meghan Markle, given the hoopla over the royal wedding this year. I was surprised that her name was not at the TOP of the search list. It was #2, followed by the royal wedding.*

At #4 was searches for Black Panther, the blockbuster movie.

At the very top of the list, at #1, was the World Cup. Football fever!

To see the trends globally and country, by country, go to the page Google's Year in Search and select a place.

Globally, for example, Google says the #1 search was . . . World Cup.

Even in the United States, World Cup was the #1 search during 2018.

For historical comparison, you can also select a different year. No individual country results are available for 2001, but globally, the top search term was Nokia, followed by Sony, BMW, Palm (remember that brand? It was a personal digital assistant back in the day) and Adobe.

Fun and an interesting look back on trends from the past.

*Expect Meghan Markle and Prince Harry and the royal baby to trend very high in 2019 search results, right?

When brands include sounds

For many years, computer users have noticed a specific musical sound during bootup: Microsoft Windows has one sound, Apple Macintosh has another sound. These are examples of sonic branding. Similarly, brand jingles and musical straplines are part of sonic identity.

Now sonic branding is becoming increasingly important as brands seek to further differentiate themselves in this era of Alexa, Siri, Google Assistant, Amazon Echo and other virtual assistants and smart speakers.

In other words, the audio component of branding must support visual elements and other aspects of brand identity, because so many consumers rely on voice commands and audio response.

To be effective, the sound must be brief and memorable, consistent with other brand elements. It can be used in both audio and video brand experiences. And it should appeal to the target market, developing an emotional connection with the brand.

Marketing fashion products made from recycled materials

The world's oceans contain all kinds of rubbish, particularly plastic that pollutes and never decomposes--and fishing nets that have been thrown away. Now companies are turning ocean rubbish into 'green' clothing and accessories, stylish as well as a good path to sustainability. Consumers appreciate being able to make a difference through their purchases, the companies seek to accomplish societal objectives and the planet gets a little cleaner in the process.

Some brands are working with the nonprofit Parley for the Oceans to build awareness of the threats to ocean life and reuse discarded plastic in new products. Stella McCartney created a fashion collection based on recycled ocean plastics, for example, and also uses recycled nylon and polyester in fashion items. The sunglass brand Clean Waves markets products made from recycled ocean plastics, again in partnership with Parley for the Oceans.

The fast-fashion retailer H&M is buying nylon made from recycled fishing nets (from Aquafil) and turning it into stylish clothing. This partnership increases education about the challenges of ocean pollution and also showcases H&M as a firm actively working to improve sustainability.

Watch for more such partnerships as consumers increasingly seek out brands that are transparent about ethical sourcing and active in pursuing societal objectives.

Scooters and the sharing economy

The fast-growing 'sharing economy' includes firms like Airbnb (flats and homes) and Uber (car hires). Customers book what they need, when they need it, on demand, via app or the web. Convenient, easy, affordable and low-stress.

In America, electric scooters are already part of the sharing economy. Pioneering firms like Lime and Bird have put hundreds of lightweight, rechargeable scooters on the streets of major cities and on university campuses. Consumers unlock the scooters by logging into an app and paying about £1 to start. Operating fees depend on how long the ride continues, but the entire cost is usually much less than hiring a car or hailing a cab.

Scooters don't pollute, and they don't take up much space on streets or in car parks. Riding is fun and easy after a bit of trial and error. More scooters could mean less traffic and congestion in cities and on campuses. So why aren't UK cities encouraging scooters and the sharing economy?

Currently, UK law doesn't allow motorized scooters on paved streets/public roads. And based on the US experience, which has been both positive and negative, UK municipalities may be wary of consumers weaving in and out of traffic, riding on sidewalks and/or leaving scooters on the side of the street.

Now US-based Bird is among those seeking permission to operate in the UK. Its first test is a limited pilot programme on one private path near Bird's London offices. Will UK regulators change the rules to allow scooter-sharing services to operate?

Pop-up shops for holiday marketing

'Tis the season for holiday pop-up shoppes opening around the UK. More than ever, brands and businesses see pop-ups as a good way to offer a limited-time, in-person experience controlled by the brand.

This allows the companies to try new products or new displays, learn more about customers' interests and preferences, understand response to pricing and test response to communication messages featuring the pop-up. Once the pop-up closes, marketers can analyse the results and make decisions about future products, pricing, promotion and distribution possibilities--made possible by limited spending on a limited-time retail space in a targeted geographic area.

For instance:

• Seedlip, which markets non-alcoholic drinks, is opening a Mayfair pop-up focused on its beverages as well as bar products.
• Amazon, the pioneering online retailer, is opening a London fashion shop for one week to experiment with bricks-and-mortar store marketing.
• Cards for Good Causes, a nonprofit, has a holiday pop-up inside a public library, selling greeting cards to benefit numerous charities.
• One of the more unusual pop-ups is in Manchester, where Classic Football Shirts sells, well, classic football shirts like an original #7 Beckham ManU shirt, amongst others.