Top gadgets

The Telegraph has published its list of the top 10 gadgets of the past decade. The list includes, from #1 to #10: The iPod, Sky+, USB stick, Nintendo Wii, BlackBerry, TomTom Go, Flip, Asus Eee PC, iPhone and Slingbox.

Engadget lists the following 10 gadgets that defined the decade just ending: Canon Digital Elph camera, Apple Powerbook, Microsoft Windows XP/Apple Mac OS X, iPod, Tivo, Motorola RAZR, Palm Treo, Xbox, iPhone, and Asus Eee PC.

What about the top 10 gadgets of the next decade? What inventions will define the years to come?

Super-sub-compact cars in India

Sales of super-sub-compact cars like Maruti Suzuki's Swift, GM's Spark and Hyundai's Santro are accelerating in India. Basic models lead the market, although larger vehicles appeal to specific customer segments.

Maruti Suzuki forecasts more than 18% growth in 2010, fueled in part by sales of the new EECO van (with 5 or 7 seats), which should sell about 40,000 units in the coming year.

Big year-end deals are helping to boost demand while the automakers look toward better revenue as global economic turmoil subsides and consumers feel more confident about spending once again. As auto demand improves and industry turnover rises, demand for parts, accessories and related services will improve, contributing to the economic recovery worldwide.

Money woes for Thomas the Tank Engine

HIT Entertainment, which owns such established brand franchises as Thomas the Tank Engine, Bob the Builder, Angelina Ballerina and Barney the Dinosaur, is struggling financially. According to the Telegraph, the money woes may cause HIT's parent (Apax Partners) to sell Thomas, considered to be the company's strongest brand. Disney is said to be thinking about acquiring Thomas.

Thomas has been at the center of controversy in recent weeks, accused by Professor Wilton (at the University of Alberta in Canada) of being conservative and sexist.

Still, children have enjoyed the brand for decades and it should have a fine future under a supportive parent.

Browser competition

Finally, after a decade, Microsoft has settled EU antitrust charges by allowing Windows users to choose which Internet browser they want to use. This agreement with regulators is important because it's intended to prevent Microsoft's Internet Explorer from having an unfair advantage over competitors.

By early 2010, PC owners who use Windows will see a screen asking them to choose from among as many as 12 browser options: Apple's Safari, Google’s Chrome, Microsoft's Internet Explorer, Mozilla's Firefox, Opera, AOL, Maxthon, K-Meleon, Flock, Avant Browser, Sleipnir and Slim Browser.

Already, Mozilla's Firefox browser has captured about 32% of the market for Web browsers, and Opera--which filed an EU antitrust complaint in 2007--has about 2%. Google's Chrome is approaching 4% market share. Once Windows users start making their choices, watch for dramatic changes in market share by mid-2010.

Marketing e-book readers

Whatever you call them--e-book readers, ebook readers, electronic book devices--the product category is growing quickly.

Amazon has been a big part of that growth, creating and marketing its own Kindle e-book readers (now available in many countries) with amazing success.

As reviewed on eBook Readers Review, other up-and-comers include the iRiver Story, Sony Reader and the Cooler ebook reader. Barnes & Noble, Borders and other book retailers are introducing their own electronic devices, as well.

Now books are being reformatted and marketed on cartridges to fit with Nintendo DS handheld game players, a way of encouraging kids to do more reading. This is an intriguing example of fitting the product to the behavioural habits of the target market. Will the next big e-reader trend be novels for mobiles, which is a popular trend in Japan?

Tesco makes headlines . . .

How is Tesco doing? The retailer recently announced its third quarter results, and how well it performed depends, apparently, on which news source you check.

Before Tesco's announcement, the Independent ran a story with the headline: 'Tesco's pre-Christmas surge trumps rivals'.

Tesco's sales did rise, but that was only part of the story. When the announcement was made, all media outlets received the same company-supplied info; reporters then supplemented that data with comments from Tesco execs and other sources.

Here's a sampling of the headlines, showing some variation in viewpoints about Tesco's results. Remember, Tesco's sales increased. What do you think of Tesco's results?

• The Guardian's headline reads: 'Tesco sales slow as pre-Christmas marketing blitz fails to tempt shoppers'.
  
• The BBC News headline reads: 'Tesco sees "solid" sales growth'.
• The Reuters headline reads: 'Tesco Q3 sales toward bottom end of forecasts'.
• The Times Online headline reads: 'Tesco reveals lacklustre 2.8% UK sales rise'.
  
• The Telegraph headline reads: 'Tesco sales suffer as Clubcard push fails'.
• The Independent headline reads: 'Tesco disappoints the City as it trails rivals'.
• The Wall Street Journal headline reads: 'Tesco expansion helps sales grow'.
  

Stores Show Off Their Holiday Windows

Tis the season for stylish, witty holiday windows ready to delight shoppers of all ages. Above is a "letters to Santa" display window at Macy's in New York City, where window-shopping is a holiday tradition for millions. The New York Times has an overview of stores' holiday decorations here.

Posh Saks Fifth Avenue included Windows 7 in one of its holiday displays, posting live tweets in the huge window--with unexpected (and unintended) consequences when Apple fans began poking fun at Microsoft.

Here's the Harrods Emerald City lights display. And here's a taste of one Fortnum & Mason's holiday window.

London's famed Oxford Street and Regency Street holiday light displays were turned on at the same time this year, in a ceremony featuring the stars of Disney's A Christmas Carol, a neat bit of marketing and good timing.

Bank Advertising, SA Style

Writing in Business Day, TBWA\Hunt\Lascaris's Damon Stapleton observes that South Africa's approach to advertising creativity is:

“Why not?”

Why not try something and see how the target audience reacts? Why not dare to take an unconventional approach?

This image of a refrigerator magnet shows the agency's unusual approach to bank marketing. Its client, Standard Bank, wanted to attract students and people just beginning their professional careers. By giving away magnets showing the makings of a feast inside the refrigerator, the bank sent the message that it can help customers achieve their financial goals. It also demonstrated that it's not a boring old bank.

What a clever idea and well implemented. Why not?

Mega Monday or CyberMonday

Monday, November 30th is being called ‘Mega Monday’, in part because it's the last payday before Christmas for many UK shoppers and in part because online shoppers prefer to buy on Mondays, says the Hut Group, which operates e-commerce sites for ASDA, Woolworths, Argos and WHSmith. Its TheHut.com online shop specialises in entertainment products, electronics, health and beauty aids plus dozens of other product categories.

In the US, Monday, November 30th is being called CyberMonday, promoted by Shop.org, a division of the National Retail Federation industry trade group. The group posts info on its CyberMonday site and polls shoppers about their actual buying experiences after Black Friday and CyberMonday.

Shoppers seem interested in clicking for bargains instead of fighting crowds in person at the stores, but has this tradition caught on with holiday shoppers who buy early in the season? How will Mega/CyberMonday's sales compare with those of Black Friday's sales? We'll soon see.

Click! You've Bought a Cow

If you're active on Facebook or MySpace, chances are you play or know someone who plays Farmville or the Mafia Wars or Pet Society. The games are free, but every time you click to buy a cow or another virtual product to advance your standing in the game, you add to the revenue of developers like Zynga, Playdom and Playfish. In fact, Playfish was recently acquired by Electronic Arts, a combination that will only intensify the competition in this fast-growing market.

The social media angle adds to the enjoyment and the buzz has credibility because users recruit users. Farmville, introduced by Zynga, acquired 60 million monthly players in just a few months as players posted their scores and achievements on Facebook and invited friends to join the fun.

Yet some of the games are drawing criticism because players don't always understand the advertised offers for virtual products or subscriptions and inadvertently make purchases they didn't intend to make, says Time magazine.

To earn and retain the trust of players, game developers must be sure that offers are clear and unambiguous. Online, as in the off-line world, marketing transparency is the key to long-term success.

Choosing Segments to Target: Q&A with Erika Bruhn

This is the last in a series of Q&As with Erika Bruhn, a partner with Sawtooth Technologies Consulting Group. Today's topic is how to evaluate and select segments for targeting. Thank you, Erika, for sharing your expertise!

Question #3 for Erika Bruhn:

What kinds of criteria do you use when recommending which segments a marketer should target, and why?

Erika's answer:

Typical criteria include segment size, market share (volume and dollars), alignment with your current products, and alignment with your distribution channels. However, there is not a "one size fits all" approach to choosing targets. Segment size should always be considered, but targeting a niche segment that the broader market doesn't serve can be a winning strategy, especially for a new entrant in a market.

There is typically an alignment between attitudinal segments and the brands in the market, meaning that certain segments skew strongly toward particular brand usage. This is a good place to start when choosing target segments. Where does your brand "live" today? These segments are a natural target. Where do competitive brands live? These segments may be more difficult to penetrate.

Which segments' values are a good fit with your brand and company? What investment would be required to target a segment of interest? (For example, do you have the capital resources to target an Innovation segment which expects a constant stream of new and updated products?) Is there a segment that is underserved by the current brands? These questions will help direct you to the most appropriate target segments.

Question #4 for Erika Bruhn:

Once target segments are identified, what comes next? How is the segmentation used?

Erika's answer:

In an ideal world, all of your products and all of your communications will be focused on your target segments. The products you develop will be aligned with your segments' values, and in fact, future market research can and should be done with consumers who fit your target segments. Brand messaging and positioning should be based on your segments' values, as well.

It may require a radical shift in thinking from seeing every customer as a target to focusing on those in target segments. But aligning your brand and products with a small number of segments, and "owning" those segments, is the ultimate payoff.

Segmenting by Motivation: Q&A with Sawtooth Technologies

This is the second in a series of Q&As with Erika Bruhn, a partner with Sawtooth Technologies Consulting Group. In yesterday's post, Erika discussed the importance of understanding the motivations of customers in different market segments. In today's Q&A, she explains how to use such motivations as you segment a market.

Question #2 for Erica Bruhn: How do you identify the attitudes and lifestyle preferences that affect customer behaviour towards a particular product or brand?

Erika's answer:

First, you must identify the level at which to segment. If your client is a chocolate bar company, you may think that you should segment the market for chocolate bars. However, that would be a very narrow definition of the competitive space in which your client operates.

You need to go broader to include substitute products. How about a candy segmentation or a snacking segmentation? Either of those may be appropriate. How about a food segmentation? Now we're getting too broad. There is not always one right answer here, but the principle is to expand the thinking beyond the immediate product category to include products which represent substitutes.

Second, you must identify the segmentation dimensions. What are the broad "buckets" of attitudes which will likely define key differences across segments? The segmentation dimensions are hypothesized and can be developed in a team brainstorming session or through qualitative research, such as focus groups. Think of segmenting dimensions as the polar opposites which may define different segments of the market. Some examples are Price Sensitivity (from high to low), Innovative (from early adopter to late adopter), Convenience-Driven vs. Service-Driven, Status-Driven vs. Function-Driven, etc. These dimensions will vary from category to category.

Finally, you must express each of the segmenting dimensions in a variety of ways. A market research survey will be written with a long list of attitudinal statements with which the respondent must agree or disagree. These statements need to capture the nuances of what drives a particular segment and how segments differ from each other.

For example, let's focus on the Price Sensitivity dimension. A very simple price statement might read: "Price is very important to me." When we express price in a variety of ways, the list of statements will be broader and more varied, such as:

• Quality is more important than price.
• I always buy the lowest priced product.
• I frequently use coupons and vouchers.
• I never buy anything on sale.
• A low price means low quality.

These statements may come directly from qualitative research by asking consumers what is important to them and how they make purchase decisions.

Now that we have a variety of statements, when we have identified our segments, and one (perhaps) is a price-driven segment, we will have richer information as to which specific statements most drive that segment and which statements most differentiate our price-driven segment from other segments. This richness is the key to arriving at a full picture of the segments and their motivations.

The final Q&A post in this series will focus on selecting segments to target.

Q&A with Erika Bruhn of Sawtooth Technologies

Today's post is the first in a series of Q&As with Erika Bruhn, a partner with Sawtooth Technologies Consulting Group. The company is a leader in advanced quantitative market research techniques, including segmentation, conjoint analysis, and customer satisfaction modeling for consumer and B2B markets.

Erika specializes in developing insights to drive complex product development and pricing decisions. Given Erika's expertise, I asked her to talk about some of the key issues marketers face in segmentation and targeting.

First, a quick review: Segmentation is the process of grouping customers within a market according to similar needs, habits, or attitudes that can be addressed through marketing. Segmentation enables you to understand customers' needs, wants, and preferences, segment by segment, so you can focus your resources on the most promising opportunities--improving your marketing effectiveness and efficiency. In general, you can segment by customer behaviors, attitudes, demographics, geography, and/or psychographics.

Question #1 for Erika Bruhn: What are the benefits of segmenting a market according to needs, lifestyle, and attitudes, rather than relying on demographic and geographic variables?

Erika's answer:

Motivations drive behavior, and by understanding the motivations of different segments of the market, one can reasonably predict how those segments will behave. Products which save time will likely appeal to a high convenience segment, products with strong design will appeal to status-driven consumers, and so on. There may be demographic similarities of those within a segment, but demographics don't define a segment. So those valuing good design may skew higher income, but not all higher income people value good design.

Product development efforts in particular will be more successful when executed with a specific attitudinal segment in mind. How do you design a new shampoo for a woman, 50 to 65 years old, who lives on the West Coast? I don't know either. But now imagine there's a segment called the Whole Beauty segment. This (hypothetical) segment sees personal beauty as a larger part of the beauty and longevity of the Planet Earth. Can you imagine the type of shampoo which would appeal to this segment? The product's ingredients, packaging, and positioning would all be driven by the segment's motivations and values.

Tomorrow's Q&A will focus on segmenting a market according to customers' attitudes and lifestyles.

Let the Price Wars Begin

Supermarkets are starting their pre-Christmas price promotions early to capture shoppers' attention and protect market share. Sainsbury's chief executive told the Telegraph that consumers' "feistiness" will make promotions as important as ever this holiday season.

Asda's chief financial officer, quoted in the Guardian, predicts that shoppers will benefit from this year's hyper-competitive promotions:

This year will be the most aggressive on price in a decade, which is good news for Asda shoppers.

Tesco's director of retail, quoted in the Times Online, makes the important point that easy-to-understand pricing is the key:

What customers want is everyday low prices. When customers are tightening their belts they like certainty of pricing, they like round price points and they like being able to rely on prices being consistent.

How will the price wars affect shopper loyalty? And even if price promotions sustain turnover, what will retailers' profits look like?

Preview: Q&A with Sawtooth Technologies

Coming soon! Q&A interviews featuring the experts at Sawtooth Technologies Consulting Group, leaders in advanced market research techniques, who will be discussing market segmentation and targeting for insightful, effective marketing.

Soft Toys Aid at IKEA

IKEA's latest Soft Toys Aid campaign has begun. For every toy purchased from now to December 23, the retailer will donate one pound (one euro in Europe, one dollar in the US) to UNICEF and Save the Children. IKEA has raised nearly 17 million pounds since 2003, not counting the millions of pounds the company has committed to UNICEF projects through 2015.

The retailer got involved with the children's nonprofits when it discovered that some of its suppliers were employing children. Instead of simply dropping the suppliers, IKEA asked the nonprofits for advice. Then it began monitoring its suppliers and established pilot programs to prevent the use of child labour. It became a strong supporter of children's rights and later created Soft Toys Aid, which allows shoppers to feel good about helping children without spending an extra dime.

Soft Toys Aid has a fun social media component. The microsite features singing stuffed animals and invites members of the public to "Join the choir" (record your voice and upload for one of the animals to sing) and "Share" (on Facebook, Digg, etc). Sing out for children!

Must-Have Toys for the Holidays 2009

The Telegraph asked its reporters to find the must-have toys of this year's holiday season. They came back with this video. I don't know whether kids will agree with their choices, but the reporters are definitely having fun.

The Toy Retailers Association released its own list...with some new toys that update last year's Bakugan craze as well as toys linked to movies like Transformers 2.

Toy News reported on what Toys 'R' Us thinks will be its top 2009 holiday best-sellers. No surprise, Bakugan is on the list.

On the Argos Top 10 list are a LEGO toy, a Transformers 2 toy and Lulu My Cuddlin' Kitten. Only 50 shopping days left. Then we'll see which toys really topped the lists.

The Consumer Forum

The Consumer Forum, formed by King of Shaves, Lovefilm, Ella’s Kitchen, Photobox, Reading Room, A Suit That Fits.com, Sharpham Park, and Chemist Direct, is a new site dedicated to promoting great customer service:

This site empowers consumers and supports businesses that listen and act upon consumer opinion.

The idea is to focus businesses and customers on the idea of, well, focusing on customers. MarketingWeek and Real Business both covered the announcement of this forum.

Although the forum is just getting started, it's a good way to reinforce that customer relationships must be a top priority for businesses. The next step is to enlist the participation of thousands of consumers and to get more companies involved in the site. How much influence will this site ultimately have?

Internet goes international, finally

By the middle of 2010, URLs will begin appearing in Arabic, Chinese, Hindu, Japanese, Russian Cyrillic and other languages not based on Latin letters.

ICANN, which is the Internet's primary governing body, announced this change just yesterday.

The president of ICANN, quoted in the Guardian, says:

"Of the 1.6 billion users today worldwide, more than half use languages that have scripts that are not Latin-based."

IMHO, this is a great idea because it really opens up the Internet to the international community. Not everyone thinks this is a good idea, however. PC World columnist David Coursey complains, in a headline, that "ICANN approves domain names we can't type." Actually, ICANN's action will allow billions of people to type domain names in their native languages.

What next for Nintendo's Wii?

For three consecutive Christmas seasons, the Nintendo Wii was the holiday gift for many families. Chronic shortages only heightened interest in the Wii and boosted word of mouth about the game console with the innovative motion-sensing controller. From toddlers to grannies, the Wii had many enthusiastic fans swinging golf clubs or moving Mario across the screen. Nintendo's profits soared as the Wii worked its magic.

NHS has, in fact, endorsed the Wii Fit, allowing the product's adverts to bear the logo of the Change4Life healthy-living programme.

Now sales of Nintendo's game consoles have slowed, due in part to poor economic conditions and to competitive pressure from Microsoft and Sony. The firm also notes that game sales are down, despite the built-in market of so many Wii consoles in households worldwide. Nintendo just reduced its sales forecast and cut the Wii's base price to stimulate purchasing during the all-important yearend holiday season.

Another factor in console sales is that game enthusiasts have numerous mobile options these days--not just Nintendo's own ds but also games downloaded for the iPhone and other smart phones. Can the Wii recapture its popularity and boost Nintendo's profits during the upcoming holiday season?

McDonald's caters to the budget-conscious

Iceland's financial difficulties have caused McDonald's to close its three restaurants there at the end of this week. The company is unlikely to reenter the market for some time because high costs have pushed profit margins to unacceptably low levels.

Yet overall, turnover at the company's European and Asian restaurants is increasing, largely because of the popularity of specially-priced menu items.

Cash-strapped consumers are still eating out on a budget. The Times Online reports that sales of McDonald's Extra Value Meals during the past three months increased by 8.6 per cent compared with the same period in 2008.

Discussing the positive results, the Chief Executive of McDonald's UK tells the Telegraph:

What was encouraging was about three-quarters of this increase was down to more customer visits, not higher prices. The reality is that consumers are still finding life tough, and they are unforgiving of price rises.

More European customers are trying breakfast at McDonald's and visiting McCafes for gourmet coffee, boosting market share, revenue and profits. Clearly, the company's strategy of growth by increasing sales per customer and restaurant -- rather than by opening new restaurants -- is a cost-effective approach to today's financial climate.

Win 7 Outsells Harry Potter

Microsoft introduces its new Windows 7 operating system tomorrow. And according to an Amazon.com official quoted in The Telegraph, the software has already become a runaway best-seller:

"The launch of Windows 7 has exceeded everyone's expectations, storming ahead of Harry Potter and the Deathly Hallows as the biggest grossing pre-order product of all time at Amazon.co.uk."

According to the BBC, the future of Microsoft is riding on the success of this software introduction. Although that sounds rather dramatic, it's true that Microsoft stands to profit handsomely if businesses and consumers decide to upgrade to Windows 7 or take the next step and buy new PCs (preloaded with Win 7) to take advantage of the new software.

How much marketing magic can Microsoft make for Windows 7? A quick search shows that the company is putting a big PR and sales push behind its new system. But will this production introduction translate into the kind of profits that Microsoft expects?

New Media Age Top 100 agencies

New Media Age ranks agencies every year according to the income they earn from digital media activities in the UK. The Top 100 listing is interesting because each agency is differentiated according to its expertise of marketing, technical or design and build, in addition to the year founded, digital revenues and number of employees.

The magazine also prepares a listing of most respected agencies and most influential people in the industry. This year, like last, Poke was named the most respected agency; its partner, Iain Tait, was this year's most influential person.

The Poke site home page displays news and links/videos from recent campaigns and Poke's portfolio is worth a look. Iain Tait's blog also includes links to Flickr photos of his tiny twins. Living digital!

Taking steps towards sustainability

Tesco, Coca-Cola and Unilever are among the many marketers taking steps towards sustainability and speaking out in favour of businesses protecting the planet. The Guardian reported the following comments at today's London climate-change conference, in advance of a major Copenhagen meeting in December.

Tesco wants to be carbon-neutral by 2050; the chief executive says: 'Survival is the issue, not just for our business, but the entire planet'.

Coca-Cola's president says his firm's surveys show that consumers now put ecological concerns at the top of their priorities. 'I think it is a fallacy to think growth and a sustainable world are mutually exclusive', he told the conference.

Sustainability is a long-term goal . . . as a Unilever official observes: 'We need a whole new business model, but it takes time'.

Today's customers expect progress towards sustainability; thanks to the Internet and social media, they can quickly find out what companies are actually doing and what people are saying about the issues.

Sustainability is not a marketing gimmick, and transparency is essential to earning the trust of customers and other publics. By declaring their commitment to greener business activities in a very public way, Unilever, Coke and Tesco are letting the world know where they stand and inviting scrutiny of their sustainability efforts. That's transparency.

Byte Night 2009

On 2 October, 700 IT professionals -- plus celebrities and business leaders-- slept rough under the stars to raise hundreds of thousands of pounds for the children's charity Action for Children.

The one-night fundraising goal was 500,000 pounds. At this point, the pledges and promises received add up to nearly that amount, but more money is expected to be donated before the final tally.

Byte Night started 11 years ago when 30 members of the IT industry slept rough to raise 35,000 pounds for the charity then known as NCH (which rebranded itself as Action for Children in 2008).

This year, many IT groups promoted their participation through blogs, websites, Twitter and in other ways. Just enter Byte Night into your favourite search engine and check the results. Wouldn't you say the event boosted awareness of the charity and its good works as well as raising money?

Marketing Halloween

Boo! Halloween is becoming increasingly popular in the UK, mirroring its popularity across the pond.

Here are a few examples of marketing activities connected to the traditions of the 31st of October:

• Derry City Council sponsors 'Banks of the Foyle Halloween Carnival' on Halloween weekend, a fun way to attract visitors.
• The London Canal Museum sells tickets to Halloween boat trips through Islington Tunnel, with costumed staffers and fun-fright doings.
• The Alton Towers Halloween Scarefest, which runs for two weeks, provides a 'chilling combination' of indoor and outdoor theme-park scares for all ages.
• The Food Standards Agency gets into the spirit of the holiday with recipes and craft ideas.
• ASDA aims to increase Halloween sales for the third year in a row by creating an in-store party atmosphere for adults and children alike.
• John Lewis sells stylish Halloween-themed accessories for the home online and in its shops.
• For a bit of history about Halloween plus holiday recipes, see the BBC site.

Media watchdogs

'The ASA is here to make sure all advertising, wherever it appears, meets the high standards laid down in the advertising codes.'

The Advertising Standards Authority announces its decisions about ad campaigns every week. This week, the ASA announced adjudications about these advertisers: Abbey National, AD Associates, CashEuroNet UK (t/a QuickQuid), Coca-Cola Great Britain (t/a Beverage Services), Community Trade Marks & Designs, Filta Group (t/a FiltaFry), Life Line Screening UK, Microsoft, Park Wholesale Beds, Peugeot Motor Co, Rockwool Insulation, Tesco Stores, Thane Direct UK, TopSpec Equine,UlsterTrader.com, VistaPrint, We Buy Any Car (t/a webuyanycar.com), West Coast Energy, and William Hill Organisation.

The Guardian covers the ASA's weekly announcements also. To see the codes that govern UK advertising, click through here. Also check the Ofcom website for regulatory actions and advisories about TV and radio, telecoms and mobiles, plus the wireless airwaves.

Asda installs webcams for transparency

Asda is installing webcams in stores and production facilities as a transparency measure.

The Guardian quotes the chief executive as saying the retailer should be run 'by the consumer for the consumer', and 'there is no "behind the scenes"'. A new Asda store in South Wales will have glass walls to allow shoppers 'a unique window into areas normally out of view'.

The Times says the Asda chief sees retail webcams serving a similar transparency function as open kitchens in restaurants, reassuring customers of quality and cleanliness.

Privacy advocates have expressed concern; how will consumers react? Is this a move toward greater transparency? Or is it too much information?

That extra mile: Special service

Looking for online sources about good customer service, I clicked to the Extra Mile Scotland website, which posts stories by people who've been delighted by superior service throughout the country.

The site is run by two professionals with extensive travel and tour experience. You can 'Ask Dougal' a question about where to find something or what time of year is best to visit a particular region of Scotland. The site includes a blog with comments about all aspects of travel in Scotland.

I read through a number of glowing recommendations of hotels, restaurants, and tour guides that went out of their way to offer special service in the comments pages. The site will accept negative reviews and even threatens to post such comments (although I couldn't get the "bad stuff" part of the site to load today, for some reason).

Extra Mile also warns:

If you think that, say, this is the place to promote your cousin’s tea-shoppie in Cowdenbeath or anywhere else, then we’ll be on your case. Oh yes, we’ll be checking.

Which health sites are credible?

Looking for info about H1N1 (swine) flu vaccinations, I clicked to the Health Direct site and noticed the HONcode certificate (as shown here). HON stands for Heath on the Net, an NGO 'accredited to the Economic and Social Council of the United Nations'.

The goal is to help consumers evaluate the credibility and source of content posted on health-related websites. To be certified under the HONcode, a health website must comply with 8 principles:

1. The information must be authoritative and provided by qualified personnel (or a disclaimer must be posted if this is not the case).
2. The information must supplement, not replace, medical advice provided by a medical practitioner to a patient.
3. The website must respect and protect privacy and confidentiality.
4. The website should show sources for its information, including a date for the most recent change of content and links to the sources.
   
5. The information must be balanced to inform consumers.
   
6. The website must apply transparency and include contact information in case visitors want to communicate.
7. The website must disclose financial support by commercial or non-commercial organisations that provide money or content.
8. The website must disclose whether advertising is a source of revenue and clearly label ads as distinguishable from health content.

Hundreds of UK sites have been certified under the HONcode; consumers can search certified sites by clicking here.

These 8 principles can actually be applied to any website, whether devoted to health topics or not, and will help any marketer build trust with target audiences.

Top 100 Global Brands

According to Interbrand, the brand with the highest value in all the world is Coca-Cola. Both Marketing magazine and BusinessWeek have stories about this global brand ranking.

Looking at the top 10 brands, 8 are US-based, 1 is in Finland (Nokia, of course), and 1 is in Japan (Tokyo).

The biggest surprise was Google, which rose from #10 in 2008 to #7 in 2009, according to Interbrand.

Here's how Interbrand explains the ranking, its methodology and past years' rankings. Also worth looking at: Interbrand's interviews with global brand leaders.

BMA seeks ban on alcohol ads

The British Medical Association is calling for a complete ban on alcohol ads and sponsorship, in an attempt to combat binge drinking among young people.

The Guardian quotes from the BMA's report:

'The alcohol industry uses its prodigious marketing skills and massive budgets to promote positive images about alcohol, and back these up with incentives, branding, enticing new products and sophisticated public relations'.

As the Telegraph reports, the industry has voluntarily agreed not to target consumers under 18 years of age. It also quotes Professor Gerard Hastings of Sterling University as saying:

'Our young people are being thoroughly groomed in a behaviour that is extremely damaging to their health'.

The Advertising Standards Authority's studies indicate that the alcohol industry is in 99% compliance of the ad standards, concluding that

'Where the self-regulatory rules apply, advertisers are adhering to them'.

Should alcohol ads and sponsorship be banned? What other steps might be taken to address concerns about binge drinking?

Finding real Cadbury chocolate in US

Today's Wall St. Journal has an article about finding real Cadbury chocolate in the US. Some chocolate lovers, having tried the US-made Cadbury bars made by Hershey's, will drive a long way to buy UK Cadbury choco bars in the US. Others try a real UK Cadbury bar and never bite into one again, because they prefer the sweeter, harder US versions.

The article mentioned a number of US grocery shops that specialise in UK foods, including the Cadbury range. One is Tea & Sympathy in New York City. Another is British Isles shop in Texas. Also: The London Food Co. in New Jersey. Not mentioned but a good source in Connecticut: UK Gourmet, pictured above.

Meanwhile, the Cadbury/Kraft drama continues. Will Cadbury remain independent? Will Kraft's acquisition offer succeed? Will another corporation try to buy Cadbury?

Product placement on the way

In the US, product placement is a common technique used to promote brands within broadcast and cable programmes. American Idol's deal with Coke is only one example. The benefit, for brands, is being associated with popular programmes and seen by millions of viewers.

In the UK, however, product placement has not been allowed in TV programmes, because of concerns about 'editorial independence' and quality. Now that ban is expected to be removed for independent programming (kept for BBC programming and all kids' shows on all channels), which could lead to lots of new placement deals in UK entertainment.

Some consumer advocates on both sides of the Atlantic worry that product placement may interfere with programme integrity...or viewers may misunderstand the promotional aspects. The creator of the reality show Big Brother says that product placement should be done in a transparent way, adding:

"But you have to trust the consumer. If it's overdone or tasteless, viewers will switch off."

Links to Marketing and Business News

Looking for online links to daily news and analysis of key marketing and business events? To see current editions of newspapers from around the world, try the Newseum site, click on the map, and browse for newspapers nation by nation, region by region. Click to see the website of a particular newspaper, locate the business section and read about what's happening in that area.

Here's a brief listing of some key sites for marketing, media and business news.

• MarketingWeek
• New Media Age
• Advertising Age
  
• Financial Times
• Times Online Business
• Guardian Business
• BBC News-Business
• London Evening Standard-Business
• Wales Online-Business
• Birmingham Post-Business
• Economic Times-Business in India
• Irish Times-Business
• Vancouver Sun-Business
• Japan Times-Business

Cadbury + Kraft = Oreo Super Goo?

If Kraft and Cadbury wind up under the same corporate umbrella, will we start to see new products that reflect each company's strengths? So far, Cadbury is refusing Kraft's offer, but a sweetened deal may happen after all as Kraft seeks global expansion through mergers.

Kraft owns Oreo, which may well be the most popular biscuit brand in America. This sandwich with creme between two chocolate wafers is advertised on both sides of the Atlantic as the 'twist, lick, dunk' biscuit. Oreos have been sold at Sainsbury for some time, but last year Kraft widened its UK distribution and began a campaign to explain the 'twist, lick, dunk' eating ritual to UK consumers. However, Kraft didn't alter the Oreo recipe for UK consumers...and it's already begun launching brand extensions.

When Kraft introduced Oreos to China, it reduced the sugar content to suit local tastes and has been rewarded with Oreo becoming China's top biscuit brand. Will Oreos become UK favourites? It's too soon to tell.

Meanwhile, Cadbury chocolates are available in the US, but a tie-up with Kraft could open new possibilities for co-branding. Of course Cadbury may eventually be acquired by another corporate parent, but just in case, here are a few ideas I want to offer if Cadbury and Kraft should happen to join together.

• Oreo Quick-Dunk Creme Eggs--Like Cadbury's famous eggs but with Oreo wafers outside or crushed on the inside, ready to dissolve with a quick dunking.
• Oreo Double Stuf Caramilk--Oreo wafers with a thick layer of Caramilk creme filling.
• Oreo Super Goo--Choco wafers with an extra dollop of Twisted Creme filling.
  

Happy birthday to the Mini

Now owned by BMW, the Mini has 50 years of heritage behind it; yet the new models are not being marketed by nostalgia alone, as noted in today's Times Online.

The Mini's marketing plays up its unique, distinctive styling. Buyers also enjoy configuring their Minis for individual tastes and preferences--including colours and accessories that express personality.

Brand fans can buy other products that offer a special 'Mini' feeling, such as a USB drive shaped like a Mini car.

In Tasmania, as in the UK and around the world, people are marking the Mini's half-century this month. Happy birthday, Mini.

McD's targets students

McDonald's UK knows that students often need to research companies for class projects--why shouldn't it be a McD project? The company has special web pages for students and instructors, with downloadable information packs about customer service, marketing, financials, franchising and entrepreneurship, stock control, recruitment and work experience.

The info packs have a surprising amount of detail. In the 'Finance at McDonald's' info pack, for example, is an illustration of how to calculate ROI. The pack also mentions McD's long-term ROI targets for new restaurants and restaurant renovations.

The 'Marketing at McDonald's' info pack is a mini-tutorial on marketing, including a brief glossary defining benefits, brand, market research, marketing mix and other terms. I was particularly interested in the mini-SWOT analysis (see below). I'd say that providing good material for school projects is an example of how McD's keeps its brand strong and relevant.

• Strengths: The brand, and detailed market research to create the right marketing mix.
• Weaknesses: McDonald's has been around for a long time (therefore important to keep innovating).
• Opportunities: Increasing numbers of customers looking for food that is served in a quick and friendly way.
• Threats: New competitors. Changing customer lifestyles.

Times 100 case studies

If you haven't seen the Times 100 case studies, click on over to take a look. Each shows how an interesting company approached an important business challenge or opportunity. Consumer and B2B companies are both represented (Tesco, Kellogg, Siemens, Nivea, Vodafone and many more).

One of the reasons these cases are so valuable is because they're classified by organisation name as well as by type of business issue, so you can browse and find exactly the kind of case you need, when you need it. Plus the Times provides links to company websites as well as instructors' materials and quizzes. Thank you, Times.

Checking in: Hotel Chocolat

Careful segmentation + multichannel marketing + ethics + customer feedback = Hotel Chocolat's recipe for marketing success.

Visit the company's home page and you'll see how it segments the market for luxury chocolates by occasion (such as birthday or wedding), by person (such as male, female, child, business associate), by product attribute (such as milk or dark chocolate), by product (such as hampers or special packaging), and by pricing (choose your pricing level).

Customers can click to order online or order a printed catalogue or visit one of Hotel Chocolat's UK stores or buy when at an airport World Duty Free shop. One of the most distinctive points of differentiation is the Engaged Ethics programme. The company imports cocoa grown in eco-friendly conditions from its own Rabot Estate in St. Lucia and from Ghana, paying above-market prices and participating in local community improvement efforts.

Hotel Chocolat is constantly testing new chocolates. It sends samples of new treats to the 100,000 members of its Tasting Club and decides, based on their feedback, which to include in its full product range. Sweet research for a company that likes to hear directly from its customers.

Belu's green marketing

Belu (pronounced like the colour blue) uses deep-green marketing to sell its carbon-neutral water in biodegradable bottles made from corn.

The website's .org domain reflects the underlying motive of putting profits toward a social goal--in this case, to provide clean drinking water to areas that need it.

More than 1,000 UK stores already carry Belu, despite intense competition from Nestle, Coca-Cola and other corporate giants that market bottled water as well.

In an interview with the Telegraph, Belu's founder says: 'We started the business with the view that we are going to use our profits for different purposes', meaning the development of clean-water sources for villages India and Africa. Can Belu's green marketing attract sufficient customers to build significant profits for its green causes?

The New Face of Burberry

Emma Watson is the new face of Burberry, a signal that the company is targeting younger buyers with an affinity for the upmarket brand's iconic chic. The Harry Potter star is working her magic in Burberry's latest ad campaigns, which the company has also posted on its website.

Burberry has moved into a stylish new London headquarters building, adding to its green credentials. It's also switched its New York base of operations, part of a push to increase US turnover.

Although most luxury brands are suffering during the global economic downturn, Burberry's broad appeal has served as a cushion and helped keep its momentum going. What's next for the BB check?

Nissan's new Leaf

Nissan have just introduced the new Leaf hatchback, an all-electric car that will require no petrol and have no gear shift. The fully-charged Leaf will be able to go for 100 miles, a range that Nissan's experts say will meet the daily travel needs of 70% of drivers.

By 2012, Nissan's plan is to be manufacturing 2oo,000 Leaf units per year for the global market.

Chief executive Carlos Ghosn expects electric cars to become commonplace during the next decade. Of course, only when numerous recharging stations are available in public places will the Leaf and its competitors be able to win over car buyers.

Interestingly, Nissan may lease the lithium-ion battery that the Leaf will require for recharging. The idea of leasing the battery month-to-month could confuse buyers at first, although it may turn out to be a marketing success if Nissan upgrades leased batteries for free as technology improves.

Nissan's Zero Emission website, which explains the drive for zero emissions and introduces the Leaf, is worth a visit.

PDSA and Social Media

PDSA, the UK's leading veterinary charity, knows how to engage pet lovers (and potential contributors) in conversations all over the social media world. I like the look and easy navigation of the home page, with wonderful photos of pets and links to pet-care info, 'petcasts' (videos), e-newsletter subscription and much, much more. Home page also has quick links to donate or sign up for services.

If you're on Facebook, you can join PDSA's 26,000+ fans, browse the many pet photos (and upload your own), check the calendar for local events near you and donate online if you choose.

Take a look at PDSA's Bebo page--lots of fun for youngsters. Or its YouTube channel. Or its Flickr posts. Or its tweets.

PDSA + social media + pet lovers = savvy marketing.

Marketing Frights and Thrills

How do you market an experience? Many theme parks are using online videos to help customers imagine the fun and excitement (or frights and thrills) of being on rides and visiting attractions. For example:

• Flamingo Land TV - Videos about riding the new Mumbo Jumbo roller coaster, seeing baby animals up close, and enjoying special park celebrations.
• Thorpe Park on YouTube - Lots of videos featuring roller coaster thrills, TV adverts, Fright Night previews, and more.
• Drayton Manor - Home page (logo above) features a video montage of different attractions and rides; clicking on specific tabs brings up videos of thrill rides and other features.
• Adventure Island - Videos and photos of many rides, including Cow Jump juniors and higher energy rides like Dragon's Claw.
  
  

Goodbye Abbey, Hello Santander

In the middle of the current economic turmoil, Abbey Bank are taking on a new name. Along with two other UK financial institutions, Alliance & Leicester and Bradford & Bingley, Abbey will be rebranded as Santander Bank, the name of their Spanish parent. Abbey's brand currently includes Santander's flame logo, and Abbey credit cards are being rebranded with the Santander name from this month. All of Santander's UK banks will finalise the rebranding by end of next year.

Although rebranding can be risky, Santander have a good reason for moving ahead. Thanks to systems mergers, soon customers of all these three UK banks will be able to make deposits and payments or withdraw cash at any of the 1,300 branches. In other words, rebranding reinforces the message that customers will now find banking at Santander more convenient because the merger created an expanded branch network.

What will happen to Abbey's brand equity? For now, Santander are keeping the Abbey brand for the bank's foreign operations. UK consumers, however, will see the Abbey brand replaced by the Santander brand before the end of 2010.

Asda Takes Pulse of the Nation

Ever want to tell a retailer exactly what you want to see in a local store? Asda (owned by Wal-Mart) are sponsoring a Pulse of the Nation e-panel of customers to find out which new products they're interested in seeing in their local Asda stores.

'Pulse of the Nation is sponsored by Asda but owned and operated by the market research firm TNS which operates in over 70 countries worldwide and does research in almost every country of the world', according to the site.

You don't have to be a loyal Asda shopper to be a member. In fact, as the Pulse of the Nation site explains: 'We want all Asda shoppers to be represented, those who love Asda and those who are less positive, those who go there all the time and those who go there only very occasionally'.

Panel members are asked about a number of issues, including new products. They receive photos of potential new products (as selected in the Far East by Asda's buyers) and answer questions about which items they'd like to see on neighborhood Asda store shelves.

Based on the panel's input, Asda have created a 'Saving You Money' YouTube channel, as well, with videos with (what else?) tips for saving money. To create a dialogue, consumers are invited to post their own videos about saving money.

I like the panel idea, although as a former retail manager (and a shopper), I know that people don't always know what they'll like until they can pick it up, read the label and check the size, weight or color. Even if people don't buy a product today, they might buy in the future. Needs are always changing, and panel members' votes could very well vary from day to day and season to season. Still, Pulse of the Nation is a very promising concept for bringing the voice of the customer into retail merchandising decisions.

I wonder: Will Asda tell the panel how members voted on a particular item? And will the retailer abide by the panel's votes as the final decision on what will be stocked?

Marketing Links

Looking for data about the marketing environment? Interested in marketing trends and experiences? Here are a few good sources to check.

• The Marketer. Magazine of the Chartered Institute of Marketing, with many excellent articles about marketing in action and the marketing environment. Don't miss the job listings here.
• BRASS. The Centre for Business Relationships, Accountability, Sustainability and Society presents research and data about business sustainability and corporate responsibility. (Their logo shown above.)
  
• The Guardian Data Store. The Guardian provides links to facts and analysis about U.K. population, culture, economics, health trends and much more.
• Office for National Statistics. From the U.K. government, data about demographics, economic indicators, corporate profitability, employment and more.
• GeoHive. International data, organised country by country, about population, infrastructure, environmental issues and more. According to GeoHive, the global population in 2050 will be 9.5 billion!
  

IKEA Adjusts

The global economic crisis is even hurting firms that are known for low price, such as IKEA [updating my Chapter 2 coverage of the marketing environment].

With fewer people buying furniture and housewares, IKEA's sales are 632 million euros lower than projected for this year. To close the gap between forecast and actual sales, IKEA are cutting costs and jobs. IKEA believe the slowdown will affect sales for another year or two.

Meanwhile, executives are staying with their plan to open new stores around the world. Another key aspect of IKEA's strategy is the loyalty scheme, called IKEA Family, which is free and offers personalised promotions via e-mail to members. Will IKEA be able to boost sales in the second half of 2009?

Nestle Wants Trust

Paul Bulcke, Nestle's chief executive, is aiming for more trust. He recently told The Sunday Times:

'One of the targets I put when I defined our vision was to be trusted by all stakeholders. I don’t say "loved", that’s stupid, but trusted. That’s a start.'

Nestle has set objectives for marketing its food, beverage and pet products in every nation on Earth. [Updating my Chapter 5 on direction and objectives.] It's investing especially heavily in regions such as Southeast Asia, where economic growth is pushing consumer income higher year by year.

To position itself for achieving marketing-plan objectives such as capturing higher market share and profits despite intense competition, Nestle needs more than a well-known brand and well-regarded products such as KitKat bars--it needs, as Bulcke observes, 'to be trusted by all stakeholders.'

Aston Martin Thinks Small with Cygnet

The Cygnet, shown at left in photo from today's Times Online, is Aston Martin's new small car for city commuting. What's especially interesting is that this car will be based on a Toyota platform and feature Aston Martin styling.

Can a car company known for expensive high-performance vehicles attract buyers who want super-compact cars at a super-compact price (reportedly less than 20,000 pounds)? “Small is beautiful these days,” says Aston Martin's chief executive. “We have to move on from the preconceived ideas regarding what Aston Martin is about.”

Look for a new product launch of the Cygnet by late 2010.

Carrefour's Green Ideas

Carrefour's stores in Spain no longer put customers' purchases in disposable plastic bags, part of their move to get greener in four categories: (1) develop and sell responsible products; (2) use responsible sourcing; (3) reduce stores' environmental impact; and (4) reduce logistics' environmental impact.

As the largest retailer in Europe--and the second-largest on the planet, after Wal-Mart--Carrefour have many opportunities to improve environmental conditions. The CEO also recognises that customers care about green initiatives. "Carrefour’s implication in social and environmental responsibility will become a distinct criteria in our customers’ decision making," he states in the company's most recent sustainability report.

In that report, covering full-year 2008 operations, Carrefour say they reduced the number of disposable plastic shopping bags they distribute to customers by more than one-third in just three years. Other accomplishments include cutting energy usage and increasing the range of eco-friendly products offered to customers. Will smaller retailers follow Carrefour's example and go greener in the coming years?

Fast-Fashion Retailing

Although many consumers have slowed their spending due to the current economic woes, fast-fashion retailer H&M still reports profits from selling up-to-date styles at budget prices.

Competitor Zara, owned by Spain's Inditex, recently reported lower profits . . . but its expansion continues as it opens dozens of new stores in China and Russia.

Japan's Fast Retailing--parent of Uniqlo--is also growing quickly and bringing value-priced fashion apparel to shoppers around the world.

Once the economy recovers, will fast-fashion retailing be as attractive?

King of Shaves Raises Marketing War Chest

The King of Shaves is selling bonds directly to consumers to raise money for its "marketing war chest." The idea is to raise money from people who will then become brand ambassadors for the company, which competes against Gillette and other big-name firms. This decidedly non-traditional approach to funding marketing is explained on the firm's web site. Founder Will King ends his home-page explanation this way: "My word is my Shaving Bond."

Will consumers lend King the cash? Will they buy enough products that the King of Shaves can pay back its bondholders? And if this scheme works, will others follow King's lead?

L'Oréal vs Copy-Cat Brands

In the legal battle between L'Oréal's distinctly identifiable branded perfumes and the copy-cat producer Bellure, which makes lookalike fragrances packaged very much like those of L'Oréal, the winner is . . . L'Oréal. (This updates my Chapter 6 coverage of packaging and branding.)

According to Brand Republic, "The European Court of Justice has ruled in favour of cosmetics company L'Oréal in its trade mark battle with Belgian perfume manufacture Bellure, in a case which sets a precedent for penalising look-a-like products for free-riding on the marketing of those they copy."

Bellure had been marketing low-priced copy-cat perfumes very similar to the famous L'Oréal fragrances, which L'Oréal said was an unfair advantage. L'Oréal is one of the world's largest cosmetics companies, with an annual turnover of 17.5 billion euros and 23 global brands that each earn 50 million euros or more in any given year.

The Financial Times quotes Geoff Steward, a partner at the London law firm Macfarlanes, as saying: "The L'Oréal decision should sound the death knell on look-alike and own-label products."

What's next for name brands and their copy-cats?

Vinnie Tells It Straight

Fox's Biscuits should be happy to have Vinnie on their side. The panda with a gangsta attitude appears in TV and radio adverts and he's all over the Internet--on the brand's web site, on his own site, on Facebook, on Twitter and (Fox hopes) in e-mailboxes of millions of fans who send messages from Vinnie to friends and relatives far and wide.

Vinnie is one popular guy, with 8800 fans on Facebook. And Fox's Biscuits know how to engage brand fans. They're inviting brand fans to send in photos of a "Fox's Moment" and to vote for their favourite biscuits. They're offering downloadable avatars, wallpaper and--of course--recipes. Vinnie tells it straight, which makes him a YouTube star. Lots of fun.