Trend: Online businesses opening physical locations

Trendy Products, which sells furniture online, has opened a 'digital concept showroom' in Cardiff. Trendy is, in fact, on trend, as more e-businesses add physical locations to allow customers to see and experience products, chat with salespeople, access digital catalogues and then make buying decisions.


Trendy has been in business for a decade, building a strong customer base. Now it plans to open more showrooms, expanding beyond digital to reach consumers who want to experience the product and consult with designers before they buy.

One reason for this trend is the availability of good retail locations. Many years of dismal economic growth and cautious consumer spending pushed a large number of stores into administration. Competition from online businesses has also caused retailers and other businesses to shutter some branches that weren't doing well. The result: vacancies in desirable shopping areas. And thanks to good space availability, some retail businesses are actually doing better.


Amazon, the pioneering e-tailer, arranged for space in sections of existing US retail stores for the 2017 holiday season. It owns the Whole Foods Market grocery chain, where it set up displays and sold products. But it also opened some mall stores and rented space in other department stores, enabling shoppers to see and trial Kindles and other products.

Alibaba, China's online retail giant, is adding a physical presence in key cities through partnerships and through, well, giant vending machines.

Each consumer-friendly Alibaba automated location (like the concept shown here) will sell Ford automobiles, starting with a test drive offered to consumers who qualify with sufficient credit to complete the purchase.

Most popular marketing posts ever

According to my blog's statistics, the most popular post ever in nearly nine years of blogging is 'Yes, competitors are stakeholders'. At left, the statistical count shows this post has been viewed more than 12,500 times since I wrote it five years ago.

One reason this post attracts so many views is that when you do a search for the phrase 'competitors as stakeholders' my post is the first result after the top three scholarly articles.

Although some experts believe that competitors should not be considered stakeholders, my post explains why competitors really are stakeholders (click here to view).

Other popular posts are about Tesco's marketing plan and strategy (which continue to evolve as the marketing environment changes), Christmas adverts and #GivingTuesday.

More blog posts are on the way for 2018, including additional ideas about competitors as stakeholders.

Unilever shakes up its product portfolio

Unilever recently sold off its spreads and margarine brands to concentrate on other, higher-potential products in its portfolio. The company's CEO explained: 'The announcement today marks a further step in reshaping and sharpening our portfolio for long term growth'.

Brands sold to KKR, a private equity firm, include Flora, ProActiv, Becel, Country Crock, I Can't Believe It's Not Butter and and Blueband.

Although the spreads business was profitable for Unilever, with margins of about 20%, the firm wants to concentrate its marketing resources on products that closely fit its vision.

In particular, Unilever has been growing formerly niche brands like Pukka Herbs tea into mainstream brands to accelerate growth. It's also investing in personal care brands that are growing quickly and launching a number of new products for highly targeted customer segments within specific geographic markets.

This updates the Unilever examples in Essential Guide to Marketing Planning 4th edn.

What's happening to the bank branch?

If you're banking with Virgin Money UK, you don't walk into a branch, you walk into a lounge. Above, a map showing some of the Virgin Money lounges open to customers who want to play billiards, listen to a jukebox, watch a movie, enjoy free coffee or complete a financial transaction.

Each lounge is unique, because the design and amenities fit the building. In Wales, the lounge is located in a former pizza restaurant. Naturally, Virgin Money is serving free pizza to customers.

If you're banking with Metro Bank UK, you don't walk into a branch, you walk into a store. The company keeps its stores open late and on weekends to allow customers plenty of time to have coins counted or bring dogs in for free water or even open a new account.

And despite the growing popularity of digital banking, branches still attract customers. Metro's data show that 55% of its customers go to its stores. Of course, its customers also use mobile banking and online services.

Yet looking at the UK bank industry overall, more than 700 bank branches around the UK were closed in 2017--the largest number of closures ever recorded in one year. Are banks going to carefully tailor branches for each community rather than have one-size-fits-all banking? Or will they shrink the size or number of branches to reduce costs while offering selected in-person services? Let's see what happens in 2018.

This post updates the Metro Bank example in Chapter 11 of Essential Guide to Marketing Planning.

The royal touch in marketing

Now that Prince Harry will marry Meghan Markle in May, royal-related marketing is going strong. Here are just a few examples of goods and services benefiting from the royal marketing connection.

• Engagement and wedding memorabilia were rushed into production as soon as the couple was engaged, in anticipation of high demand from UK and international customers. At left, mugs being produced by Emma Bridgewater.
• The luxe Strathberry handbag Ms. Markle carried at her first official appearance after the engagement was made public sold out within minutes. Her favoured dresses and coats have catapulted firms like Parosh and Joseph into the spotlight and increased sales.
• Paler lipstick is suddenly in vogue, thanks to Ms. Markle's preferences.
• Ms. Markle's stylish spectacle frames were an instant hit when she appeared in public with Prince Harry, giving brand marketer Finlay & Co an unexpected burst of sales.
• Tourism will, of course, get a big boost from the influx of UK visitors around the time of the royal wedding in May. 

Sainsbury's vs Domino's Pizza: Unexpected competition

When you think about competition, think not just about current rivals but also about potential rivals. Sainsbury's, for example, is testing a new pizza takeaway service that aims to add convenience during the busy holiday season. And this is the kind of unexpected competition that Domino's Pizza has to consider when writing a marketing plan and conducting SWOT analysis.

'By giving our customers the chance to pre-order personalised hot pizzas and pay at the counter, we are saving them time and giving them a great value takeaway experience', says a Sainsbury's exec.

To streamline the in-store preparation process, the grocery chain is initially offering only two sizes of pizza, with multiple toppings available, in three branches. Customers order in advance and then pick up in the store, paying at the pizza counter rather than joining the queue to pay. All in line with Sainsbury's strapline, live well for less.

Grocery retailers like Sainsbury's typically offer frozen pizza or ready-to-bake pizza, but it's not usual to sell made-to-order takeaway pizzas. Yet adding takeaway pizza makes sense because so many shoppers like to buy premade meals to eat at home. Will consumers get into the habit of buying pizza where they buy milk, juice and nappies?

Sainsbury's is popular on social media, with 1.6mm Facebook likes, 505k Twitter followers, 96k YouTube followers, 171k Instagram followers, and 39k Pinterest followers. Comments about the pizza trial on these social media sites will help Sainsbury's gauge interest, in addition to tallying sales.

Primark keeps up the social media marketing momentum

Primark is gearing up for the holidays with all kinds of special merchandise and seasonal items. Its value fashion positioning is a distinct competitive advantage, offering both style and affordability. No wonder Primark's sales are up. And costs stay low because Primark doesn't splash out on flashy TV adverts. Instead, it concentrates on social media marketing, inexpensive and interactive.

A quick look at its social media accounts shows fashions for men, women, children, and home...giving brand fans more reasons to shop at their local Primark store more often.

Above, Primark's Twitter post about its Hogwarts merchandise for home and gifts. With 217k Twitter followers, Primark posts a constant stream of photos and promos to keep consumers excited about what's next.

Primark has an amazing 5.2m Facebook followers. In addition to merchandise promos, the company posts job openings to attract brand fans as employees. Who better to talk with shoppers than brand fans?

Fashion is a natural for Primark's Pinterest boards, which have 86k followers--many repinning Primark fashions for later review or to get hints for how to wear the latest accessories. Similarly, 5.2m people follow Primark's Instagram account. That's a big audience, and because they choose to follow Primark, it's clear that they're interested in the company, its products and its latest promotions.

And of course the company's Primania section of its website continues to attract user-contributed photos of Primark fashions in action, more than 15k photos in all. As 2017 winds down, Primark is well positioned for social media marketing momentum into the new year.

PS: This post, my 802nd post, updates the opening example in Essential Guide to Marketing Planning 4th edn. More posts are on the way!

Alibaba's 9th Annual Singles Day sets records again

Did you shop online during 11 November? In China, Alibaba Group has designated 11/11 ('Double Eleven') as Singles Day since 2009. The world's largest e-commerce company, Alibaba wanted to encourage singles to 'buy for yourself or a friend' with special discounts and star-studded promotions for the 24 hours of 11 November.

This annual promotion has paid off, making Singles Day a much, much bigger sales day than Black Friday or Amazon Prime Day. Year after year, Alibaba's Singles Day has pushed sales higher and higher. In 2017, consumers clicked on Alibaba e-commerce sites or visited in-person sites to purchase merchandise worth £19bn.

Yes, that's billion.

And Singles Day was truly a global event in 2017, with marketers from many nations participating by offering goods via Alibaba retail platforms. The company splashed out on its Global Shopping Festival Gala (above) featuring celebrities from around the world.

The result was a day of buying that broke the 2016 record by nearly 40%. In all, 812 million transactions were processed, a record-setting number -- and Alibaba says 90% of transactions were conducted on mobile devices, a key element of consumer buying behaviour these days.

Retailers reveal holiday adverts for 2017

With the holiday shopping season about to begin, retailers around the UK are releasing their seasonal adverts. And as has become traditional, many have emotional themes or humour or both, to try to connect with consumers and encourage positive feelings towards the brand.

Above, one of the holiday adverts released by Argos, showing elves preparing toys for Santa's fleet of sleighs. One toy nearly misses being shipped, but a dedicated elf puts it into place on the sleigh just in time. 'We love this edge-of-your-seat, high-energy Christmas campaign, which aims to surprise and delight', notes Argos marketing director. This advert has been posted on the Argos Facebook page (which has 1.2m likes) with the hashtag #ReadyForTakeOff.

Like Argos, Marks and Spencer also posted its holiday advert on Facebook (where the retailer has 5m likes). This year's feel-good advert focuses on Paddington, with #LoveTheBear as the hashtag spreading on social media. Not coincidentally, the new Paddington 2 movie will be in UK cinemas tomorrow.

And, in the holiday spirit, Marks and Spencer is going to make a charitable contribution for each copy of Paddington and the Christmas Visitor bought by customers.

Updated list of marketing planning links

Researching a marketer or retailer? Writing a marketing plan? Check my newly updated list of hotlinks to resources for marketing planning!

Categories of links include:

• Preparing for marketing planning
• Analysing the marketing environment
• Researching consumer and business demographics
• Marketing ethics, social responsibility, sustainability
• Branding issues and ideas
• Marketing mix issues and ideas
• Retailing and channel trends

See the Marketing Planning Links section, accessed from the right side of this blog.

Update on plain packaging for tobacco

In the UK, cigarettes are sold only in plain packaging with prominent health warnings, part of a years-long public health initiative to reduce illness and deaths from smoking. Above, an example of what this legally-required standardised packaging looks like, with space for the brand name on the lower one-third of the green band.

Advertising of tobacco products on UK billboards was banned long ago, even as ad campaigns have been launched to encourage current smokers to quit and discourage young people from even trying cigarettes. Now other countries are considering whether to force tobacco marketers to switch to plain packaging.

Meanwhile, marketers of popular brands like Winston and Drum have had to look beyond packaging and advertising to sell cigarettes. Imperial, which owns Winston and Drum, says it continues to be successful in Australia, for instance, where plain packaging has been the law for five years. Imperial's chief executive explains that 'commercially, we’re very capable in terms of operating in plain-packaging markets'.

Public health activists are discussing whether illness and deaths would be reduced by requiring other products--particularly alcoholic beverages--to be marketed in plain packaging. Alcohol brands object. Already, the industry has agreed to carry voluntary warnings on alcohol packaging. Will plain packaging eventually be required for alcohol? Unlikely right now, not until the short- and long-term impact of selling cigarettes in plain packaging has been assessed.

Halloween haunts marketing campaigns

Halloween is an increasingly popular holiday in the UK. By one estimate, Halloween spending by consumers will reach £320 million this year.

Not surprisingly, to catch the eye of their targeted audiences and encourage viral sharing, more UK marketers are adding Halloween themes to their marketing. For example:

• Coca-Cola's Fanta soft drink invites brand fans to use its 'spooky' Snapchat lenses and filters for Halloween messages (see above). Users scan the code on a Fanta can in order to participate. The head of marketing for Coke GB says: 'Halloween is a fast-growing sector in the UK and this is largely driven by millennials--Fanta's key demographic--making it the perfect occasion to engage with our fans'.
• Top Shop is weaving Halloween themes into its in-store marketing. The retailer launched a clothing line based on Netflix's Stranger Things series, along with a limited-time pop-up shop recreating some sets from the series.
• Spooky treats are traditional this time of year, and Marks & Spencer is marketing Colin the Caterpillar cakes in Halloween colors, with a bit of red icing for ghoulish fun.
• Budweiser beer has a Halloween party pack for retail support that includes a variety of 'King of Fears' masks (given away by stores that sell the 'King of Beers'). The beer brand is also sponsoring a three-day holiday event at London's Magic Roundabout, featuring music, food and more.

Saying goodbye to the 'round pound'

From 15th October, the traditional round £1 coin has been obsolete as legal tender, replaced by a 12-sided coin introduced in March, 2017. Some parking machines have yet to be changed over to the new coin, creating confusion in the early days after the round pound became obsolete.

Banks will continue to accept the old round pound for deposit. Yet consumers also want to be able to spend what they have. That's why Aldi, Poundland, Tesco and other retailers are continuing to accept the old pound coins for days or weeks after the official deadline.

In addition, the BBC Children in Need charity fund is promoting a Round Pound Countdown, urging consumers to donate their coins via the Post Office, Boots, Greggs, Cineworld or Welcome Break locations prior to Appeal Day on 17th November.

Even trolley token key rings have been redesigned with the new pound in mind...as grocery retailers scramble to modify their equipment so trolleys will accept the 12-sided pound.

So goodbye, round pound, hello new £1 coin.

Differentiation through sustainability

In this era of intense competition and easy consumer access to detailed information about products and brands, marketers are differentiating themselves through dedication to sustainability and social responsibility.

H&M, Marks & Spencer and IKEA are only 3 of the growing number of global marketers being recognised by the Better Cotton Initiative for their use of sustainable cotton. The ranking shows which retailers and manufacturers are actively seeking out ethical sources of cotton grown in earth-friendly ways.

World Wildlife Federation, with funding from IKEA, piloted the original initiative to grow cotton sustainably. Now that effort has grown into an international movement.

Brands such as Asos, Nike and M&S recently pledged that all of their cotton goods will be made from sustainably grown cotton by 2025. As part of their pledge, these brands will annually publish their performance in progressing towards this commitment.

In addition, marketers are also looking to increase sustainability by sourcing wool and other materials in ways that protect the environment and the workers. Stella McCartney, for example, has achieved Cradle to Cradle Gold certification for the wool used in its fashion products.

More brands are choosing this method of differentiation, knowing that many consumers pay close attention to sustainability factors when making a purchase decision.

Domino's digital initiatives pay off

https://twitter.com/Dominos_UK

Price-conscious pizza lovers are clicking to buy from Domino's . . . and it's paying off for the pizza delivery giant. Online orders now account for three-quarters of all Domino's sales.

After launching a new ad campaign focused on price promotions, the chain received an avalanche of orders--200,000 orders on the final Saturday of September alone.

Domino's is always looking at different ways to make ordering fast and easy. Tweeting a pizza emoji is one way to buy. Ordering by talking to Amazon's Alexa via the Echo speaker is another. In fact, Alexa-orders are coming in already, as Domino's prepares for a future in which voice commands play a larger role in consumer buying behaviour.

Global marketing and 'segments of one'

Unilever is continuing to expand its product portfolio with acquisitions in global markets. Yet it also sees its marketing future as 'segments of one'.

Two recent acquisitions:

• In Brazil, Unilever acquired the organic/natural food company Mãe Terra. Not only is this company growing rapidly year after year, it gives Unilever added strength in natural and organic food products.
• In South Korea, Unilever acquired the cosmetics firm Carver Korea. The goal is to accelerate growth in Asia and in a product category that experiences high demand.

Earlier in 2017, Unilever refused a takeover bid by Kraft Heinz. Now the marketing strategy focuses on five elements: consumers, connections (with consumers, in real time), content (beyond advertising), community (building relationships) and commerce (new ways to engage throughout the buying process). 

In particular, Unilever is moving toward 'segments of one' and the idea that its brands must be 'relevant, tailored and personal' rather than mass-marketed. This means making sure that mobile experiences and search experiences for consumers are as convenient and informative as possible.

Pricing and shrinkflation

From foods to paper goods, more than 2,500 products have 'shrunk' whilst their retail prices have not decreased during the past five years. This shrinkflation reflects increased costs facing manufacturers, changes in foreign exchange rates after the Brexit vote and consumer resistance to paying higher prices. As a result of these environmental and internal forces, brands are reducing the size of some products without changing the prices.

Yet, according to the UK Office of National Statistics, more than 600 items have actually increased in size during the past five years. This reflects the trend towards focusing consumers on value. 'More for the same price' sends a message to price-conscious shoppers that a product will deliver higher value than some competing items.

More shrinkflation is on the way as marketers cope with continued cost increases and ongoing currency swings that can affect what manufacturers pay for ingredients and what they receive in payment from wholesale buyers.

Shrinkflation is usually not publicised by the manufacturers...but government offices and media reporters take notice. Then consumers become aware, and have to decide whether to continue buying a favourite brand or product, or change behaviour and buy something else.

20th annual Byte Night on 6 October 2017

Byte Night takes place on Friday, 6th October. This is the 20th year of fundraising to benefit Action for Children, a charity that helps homeless children.

In 2017, corporate participants will raise an expected £1.4 million for this charity, by sleeping rough in 10 locations: East Anglia, London, Midlands, Northern Ireland, North East, North West, Scotland, South West, Thames Valley and Wales. As many as 1,700 people will sleep rough on Byte Night.

Social media promotion is raising awareness of the event, the charity and the need. @ByteNight has nearly 3k Twitter followers and nearly 1k LinkedIn group members (this is a corporate-heavy event). Action for Children has more than 50k Facebook likes and 117k Twitter followers, plus 14k LinkedIn followers.

B2B marketing is key to the success of this event, with businesses registering teams of employees to participate--and marketing internally to increase involvement and raise money. Corporate partners include Royal Mail and House of Fraser, plus sponsors such as FedEx and the Amber Group. Watch for more publicity from media participants and for a deluge of social media messages as Byte Night approaches.

Competing technologies in the digital age

https://en.wikipedia.org/wiki/Video_Killed_the_Radio_Star

Sure, Video Killed the Radio Star. This isn't the only example of competition from new technologies, of course. Cassettes eclipsed reel-to-reel audio tape, then CDs eclipsed cassettes, then digital music eclipsed CDs, then vinyl returned in a wave of audiophile nostalgia, followed by cassettes. Streaming continues strong as many consumers enjoy music via multiple technologies.

Currently, vinyl sales in the UK market are 30% higher than at this time last year. Vinyl and other mature entertainment technologies have become popular enough in the digital age that eBay recently introduced a marketplace specifically for books, music, games and video.

Another product category affected by technology: postcards. Before the end of the 20th century, consumers were sending an estimated 20 million postcards every year. Now, however, competition from social media has resulted in barely 5 million postcards sent per year. Why pay for a postcard and postage, take time to write a message and pop it into the post for delivery days later--when you can post a photo or message immediately on Instagram, Pinterest, Facebook or another site? Postcard publisher J Salmon, founded in 1880, is therefore leaving the business.

Perhaps consumers will someday see postcards as unique communication vehicles and give them a go again, the way vinyl and cassettes have become newly popular. Meantime, marketers need to carefully monitor consumer behaviour trends and the impact on the business environment as competing technologies enter the marketplace.

Private brands remain strong

M&S wines have won awards

The head of the UK grocery chain Morrisons observes: 'If people are feeling the pinch, they tend to shift out of brands to own [private] brands'. That's why, during the recent recession, private brands marketed by grocery retailers did so very well.

Traditionally, consumers switched to private brands to save money, and then switched back to manufacturers' brands once they felt less anxiety over economic circumstances.

Consumer behaviour these days indicates that despite economic recovery and consumers feeling more confident about spending, private brands continue to sell well. Private brands are helping Lidl--the deep-discount grocery chain--gain market share against traditional UK supermarkets like Tesco, just as they are helping Aldi. 

In fact, customers who can afford to buy manufacturers' brands often choose to buy private brands because they want both value and quality. At Marks & Spencer, for example, the store's brand of wine has won numerous awards, reassuring buyers that the quality is good, not just the price. The newest trend is toward premium private brands, reflecting the dual interest in value and quality.

This post updates the private brand discussion in Chapter 6 of Essential Guide to Marketing Planning 4e.

Unilever and Nestle Pursue Niche Growth

Sweet Earth is being acquired by Nestle

Switzerland-based Nestle is buying a small California firm known for vegan and vegetarian foods; Dutch-British Unilever is buying a company that makes herbal organic teas.

Unilever is acquiring Pukka Herbs

Both of these multinationals are building part of their growth strategies around acquiring businesses and products in niches that are attractive because of increasing consumer appeal and the ability to be noticed through distinctive brands/products.

Unilever, for example, pursued Pukka Herbs because it is unusually fast-growing in its niche. Unilever's top tea executive explains: 'In the morning a lot of people still drink black tea as it picks you up, but in the afternoon or evening herbal tea is wonderful with different benefits'. In other words, Pukka Herbs complements Unilever's existing tea brands and products.

Nestle bought Sweet Earth, a vegan/vegetarian food marketer, to get firmly established in the plant-based protein market. Nestle USA's CEO comments: 'One of Nestlé’s strategic priorities is to build out our portfolio of vegetarian and flexitarian choices in line with modern health trends'.

Mainstream brands/products continue to sell--but certain niches are growing more rapidly and delivering customer acquisition (and profits) through specialization. That's why more multinationals will be exploiting growth opportunities by buying firms that have a following and a strong brand image in a well-defined niche.

Gender neutral marketing?

John Lewis has reignited the debate over gender neutral marketing with its announcement that children's clothing will no longer be categorized as male or female. This isn't a new controversy, but a complex issue confronting retailers, manufacturers and their customers.

What about stereotyping? There is a concern that gendered toys and other products may reinforce stereotypes. Rather than have 'pink' and 'blue' aisles and products, retailers want customers to be able to browse and select products as they choose. But how does this work in everyday brick-and-mortar stores? Will it confuse or even anger some customers?

What about differences between male and female versions of products in a particular category? When customers compare the quality and marketing of boys' and girls' shoe products, for instance, some are unhappy about what they see. Pricing of products is also controversial, with complaints about different prices for men's and women's razors, for example, causing some retailers to eliminate the gender price gap.

At the same time, some marketers are recognizing distinctly different needs amongst male and female consumers, and marketing products geared to needs for each target market. Men in China, for example, are eagerly buying male beauty products like skin-care lotions. L'Oreal and ASOS are marketing makeup products for men in the UK. 

What is the future of gender neutral marketing? The controversy continues.

New regulations drive new auto marketing

The marketing environment can have a profound effect on brand and product marketing. Regulations governing car emissions are a good example.

From today, EU regulators have changed the rules on how car emissions will be measured, to prevent automakers from circumventing emissions limits. Most of all, the new rules are intended to improve air quality, for a greener future. In turn, these new rules are driving new vehicle marketing.

Now automakers are offering 'scrappage' schemes to encourage drivers to purchase new cars and 'scrap' or trade in older vehicles. Volkswagen is offering as much as £7,000 off to encourage UK buyers to turn in their old diesels (registered prior to 2010) and buy a new VW, Audi, Skoda or Seat model.

Ford is offering £2,000 off to UK buyers who exchange any brand of vehicle (model year 2010 or older) for a new Ford model. Kia and Renault are also offering the same amount for older models turned in when buying a new car in the UK. Toyota is offering up to £4,000 to encourage trade-ins of older cars by UK buyers.

Automakers are also designing new cars that will comply with emissions rules and appeal to environmentally-conscious buyers. Aston Martin has plans to have an all-hybrid product portfolio by 2020, and BMW will soon launch an all-electric version of its popular Mini. 

However, the UK's ambitious plan to not allow sales of new diesel and petrol cars from 2040 will strain the infrastructure for electric cars, requiring significant investments in recharging stations, for example. Automakers will be watching the environment carefully as they plan for future product introductions and car promotions.

Luxury Is the Focus of LVMH Branding

http://us.louisvuitton.com/eng-us/stories/tambour-horizon#the-watch

Louis Vuitton Moet Hennessy has a large portfolio of luxury products, including Louis Vuitton (fashion, leather goods and more), Christian Dior (fashion and more), Hennessy (cognac and more), Sephora (beauty retailer) and prestige watch brands such as Hublot and TAG Heuer. In all, LVMH's group annual turnover exceeds €37.6 billion.

Luxury (at prestige prices) is the focus of all LVMH brands. Loyal customers are willing to pay top prices for top-quality designer products that reflect upmarket status and style. Even technology has permeated LVMH's famous product portfolio. Louis Vuitton recently launched a smartwatch that combines the brand's classic fashion sense with Androidwear tech.

Customers worldwide are responding to the luxury appeal of LVMH brands and are following the latest developments in style and function through brand encounters in stores, online and on social media. Louis Vuitton's Facebook page has more than 20 million likes, and its Pinterest boards have 121,000 followers. Its Instagram account has nearly 20,000 followers, and its Twitter feed has nearly 7 million followers. Through posts and viral sharing, LVMH brands expand their reach worldwide and reinforce the luxury positioning that customers perceive.

NOTE: This post updates the "Marketing in Practice" feature in Chapter 7 of Essential Guide to Marketing Planning 4e.

Poundland's multiprice strategy

Poundland has been selling some merchandise for several pounds--expanding its merchandise range and its appeal to bargain-hunting shoppers. Now the retailer, founded in 1990, has a twist on its multiprice strategy: Selling merchandise for less than one pound.

The multiprice strategy helps Poundland keep its brand promise to price-conscious customers. It also helps the retailer manage seasonal inventory. Rather than store out-of-season stock for nine months until the season rolls around again, Poundland is clearing merchandise by cutting the price, as many other stores do. The result: shelves are full of in-season, fresh merchandise at attractively low price points.

Poundland leverages social media for its price-driven promotions, with consistency in posts across platforms. More than 300,000 people have liked Poundland on Facebook, nearly 25,000 follow it on Instagram, and it has 80,000 Twitter followers (as well as a YouTube channel and a Pinterest page).

This updates the "Marketing in Practice" example in Chapter 7 of Essential Guide to Marketing Planning, 4th edn.

Marketing at the intersection of music, pop culture and home decorating

Pantone, known for insights into colour trends, just introduced a new colour of purple, shown above.

The name of the colour is a symbol: Love Symbol #2.

Do you recognise this iconic symbol and colour?

They're closely associated with Prince, whose Purple Rain album was recently reissued with new tracks. In fact, this particular purple was inspired by Prince's customized piano.

Now Pantone, partnering with Prince's estate, has introduced a standard version of Prince's favourite purple.

In marketing terms, this is a smart way to leverage consumer interest in music, pop culture and home decorating. Many consumers who grew up listening to Prince will know his love of purple. Whether they're painting a room or a chair or a piano, they can buy this exact purple.

Now that Prince's unique purple is an official Pantone colour, watch for a variety of new products featuring this colour, for decorating, for gift-giving, and more.

Inside Uniqlo's Marketing Plan

The marketing plan of Uniqlo, based in Japan, targets Millennials and other selected groups through social media and distribution, in particular. The UK branch of this integrated retail empire has 100k Facebook likes, 31k Twitter followers and 70k Instagram (indicating the fashion interest of Instagram users). New products and new stores are featured in social media, along with seasonal favourites and topical messages.

Expanding beyond its home base of Japan, Uniqlo has a growing audience of brand fans in the UK and Europe, China, and the US. Many of Uniqlo's products are fashion basics, although it also launches new style collections seasonally. The company markets own-brand merchandise, and controls the design and production functions as well as controlling the retail outlets. This allows it to move quickly to ride the wave of a strong trend, for flexibility in adjusting the marketing plan as needed.

One recent innovation is the introduction of #UniqloToGo, vending machines dispensing t-shirts and light outerwear in US airports. The idea is to appeal to people passing through airports who need an extra shirt or another jacket to wear to or at their destination. It's not just convenient, it's also a way to increase brand awareness and capture extra sales. The prices are moderate, which encourages impulse purchasing.

This, plus pop-up stores in major cities, allows Uniqlo wider reach and more flexibility in executing its marketing plan.

NOTE: This post updates the Marketing in Practice box in Chapter 8 of Essential Guide to Marketing Planning, 4e

Top UK consumer brands of 2017

SuperBrands has released its list of the top consumer brands for this year, as determined by UK consumers.

Here are the top 5, along with a bit of news about each of these leading consumer brands.

5. Gillette - Gillette is facing competition from UK newcomer Harry's, which offers a subscription-based alternative to buying razor blades at retail. Backed by Procter & Gamble, Gillete's traditional strengths are positive brand recognition and product innovation.

4. Andrex - The well-known toilet-tissue brand is celebrating its 75th anniversary with nostalgia-laden marketing. Andrex enjoys high market share and has slightly shrunk its rolls to cut costs and fund product investments.

3. Rolex - Reinforcing its brand's luxury positioning, Rolex sponsors special events like the Rolex Fastnet yacht race and the Rolex Grand Prix at CHIO Aachen showjumping competition. These special events keep the brand top-of-mind in the target market.

2. LEGO - The recent Bricklive special event in Belfast offered LEGO fans the opportunity to build and to watch others build creatively. More than 10,000 brand fans showed up, some to build and many to enjoy seeing the process and the finished results--reinforcing loyalty and engaging fans.

1. British Airways - As part of a trend toward entertaining passengers (and the public), BA recently released a funny safety video starring celebs like Gordon Ramsay, 'Mister Bean' (Rowan Atkinson) and Gillian Anderson. The airline's CEO says he wants passengers to watch the safety video from start to finish. It's also a positive branding association.

What's New at Cadbury Dairy Milk?

After a period of outsourcing production of Dairy Milk beyond the UK borders, Cadbury has announced that the popular chocolate will once again be "made in Britain" at the Bournville production plant.

Cadbury is also bringing back a product that twice was deleted from the range due to low sales. The Dairy Milk Tiffin chocolate bar, originally launched 80 years ago, is returning to store shelves permanently following a highly successful limited-edition version in 2016.

Not new: the company still offers personalised Dairy Milk bars. Increasingly important: Cadbury UK's popular Facebook page (more than 700k followers), active Twitter account (more than 300k followers) and Instagram account (146k followers). That's how Cadbury's social media marketing strategy keeps its brand and products in front of Millennials who enjoy chocolate.

Reckitt Benckiser adjusts its product portfolio

Reckitt Benckiser's product portfolio includes brands for the home (Vanish, Calgon, Woolite), for personal health (Scholl, Nurofen, Strepsils) and for hygiene (Dettol, Harpic, Lysol). Until recently, RB also had some food brands in its product pantry.

Now it has sold those food brands to McCormick, a major spice company based in the US. This is a strategic move, not just to raise money for debt reduction following the acquisition of Mead Johnson Nutrition. Strategically, food brands like French's condiments and Frank's RedHot sauce are not core to RB's product portfolio, given the move toward health and hygiene. Also, these food brands contribute less than 5% of RB's revenues.

Interestingly, RB had several bidders trying to buy its food brands, partly because brands like French's are strong in specific areas (US and Canada) but also to keep these brands out of the hands of competitors. French's has a devoted customer following in Canada because it makes its ketchup there, giving the brand a strong local connection.

This post updates coverage of product-mix and product-line decisions in Chapter 6 of Essential Guide to Marketing Planning.

The future of fixed pricing in UK food stores

Have UK food retailers experimented with surge pricing? That's a form of dynamic pricing in which customers pay more at peak times or pay less during off-peak times.

The idea is to effectively manage supply and demand, avoiding queues during busy periods and spreading demand during the day.

Well, surge pricing is not exactly what's happening, at least not yet. Thanks to electronic price tags on shelves, however, food stores have the technical ability to vary prices during the day.

For example, Marks & Spencer last year tested discounting sandwiches in the morning to encourage early buying and alleviate crowds at lunchtime.

Surge pricing could be in the works for petrol, again as a way to manage supply and demand on busy days.

Still, fixed pricing is not going to disappear from food retailers, at least not for a long time. Customers will vote with their wallets if they don't like what a retailer is doing. And no store wants to lose loyal customers over a pence or a pound.

Specsavers focuses on differentiation

Specsavers differentiates itself from other providers of spectacles by focusing on two key points of difference: (1) affordable pricing and (2) stylish frames.

The company, which partners with local optician professionals in the UK and Australia, as well as in Europe, has some 2,000 retail locations. With buying power like that, Specsavers can offer a variety of fashion frames at popular prices. It is also expanding into the niche of prescription safety glasses through a licensing deal with JCB.

The company seeks efficiency of operations to keep costs and prices low. For instance, it is streamlining its information technology arrangements and outsourcing to the cloud. It is also applying the latest manufacturing technology to the products it sells--including sustainable energy to keep Specsavers green.

Among the marketing techniques Specsavers uses is social media marketing on Facebook and beyond. The #LoveGlasses hashtag highlights images and posts that relate to its style credentials, all part of the marketing plan based on Specsavers' positioning of affordability and fashion.

This post updates content in Chapter 4 of Essential Guide to Marketing Planning, 4th edn.

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?

Vinyl record sales set records

Due to nostalgia marketing, aesthetics and technical interest, vinyl record sales are setting records. In 2016, sales of vinyl records exceeded 3 million units. As impressive as this sounds, it's actually paltry compared to overall sales of recorded music.

David Bowie topped the list of vinyl best-sellers and UK music best-selling artists. And not just Bowie's final recording, but other perennial favourites sold well in vinyl and digital formats. 

Why are vinyl sales soaring? 'It’s twofold in that older people are going back to vinyl but I also think the younger generation are discovering it in a way they weren’t before', says the CEO of Regent Street and Gold Bar Records. 

Record Store Day in April is helping introduce vinyl to new fans and give loyal customers new reasons to buy. Established performers and newcomers alike use this April 'holiday' to launch new products with heightened marketing awareness.

Now vinyl sales are strong enough that Sony has decided to get back into that business. How will the addition of this major player affect the fortunes of GZ Vinyl and the few other vinyl manufacturers competing in the industry? Will other big labels reintroduce vinyl as well?

Marketing Manifesto Brands

The French food giant Danone, known for yoghurt and other dairy products, as well as for Evian water, is now promoting its Manifesto, putting societal goals alongside marketing and financial goals.

Danone's website says: 'We built our Manifesto to reinforce our dual commitment to business success and social progress and to acknowledge that we cannot work for healthier choices and lifestyles without caring about the health and wellness of our communities'.

In fact, the company is planning new or repositioned products (manifesto brands) that fit with these goals of giving consumers the tools (in this case, food choices) to be healthier. Danone recently acquired the US-based White Wave company, which markets soy milks, almond milks and other products, to increase its presence in the growing American market for plant-based food products. As part of this acquisition, Danone had to divest Stonyfield Farm yoghurt, a brand known for organic ingredients and social responsibility, to satisfy regulatory concerns.

Danone's CEO explained the White Wave acquisition this way: 'By combining 100 years of dairy fermentation with plant-based technology we can reach customers all around the world through multichannels and invest in sustainable nutritious solutions for tomorrow'.

Now Danone will concentrate on its growing portfolio of healthy brands for multiple nations, advancing its financial and marketing goals as it advances its societal goals worldwide.

Beauty brands seek multichannel availability

Consumer behaviour is changing, and so beauty brands are changing their distribution strategies to be where consumers want to browse and buy. As department stores consolidate and shoppers seek out specialty shops and online outlets, brands like Nyx are opening their own UK stores for direct customer contact. Nyx, for example, recently opened a flagship UK retail location with digital elements designed to appeal to Millennials.

Beauty-sample subscription businesses like Birchbox give consumers more access to more new products. This is another channel for brands to reach consumers who like variety or want to test different items before becoming a loyal buyer of a particular brand/product.

Birchbox is, in fact, considering a UK store as another channel to supplement its online-only business model. 'Physical retail enhances the relationship with the brand, but it has to be profitable in their own right, it’s not just a marketing activity for us', says cofounder Katia Beauchamp. If Birchbox opens a store, the brands it distributes gain yet another channel of access to retail customers.

Yet the Birchbox cofounder's question is very important for multichannel strategy: Will brick-and-mortar retail shops be profitable on their own? The answer depends, in part, on how consumers adapt their browsing and buying habits in a crowded multichannel marketing environment.

UK legacy grocery retailers continue to evolve

Sainsbury strapline

As in the rest of the world, UK legacy retailers are buying specialised firms and sharpening their competitive positioning. 

Why? Changing consumer behaviour and evolving industry dynamics.

Nisa logo

With fierce price wars raging amongst UK grocery chains, and online competition growing, legacy retailers are looking for new marketing roads to customer loyalty and for supply chain efficiencies to help the bottom line. For example:

• Sainsbury is expected to buy Nisa convenience shops, a 'family' of 2,900 'independent grocers' that serve local neighbourhood shoppers.
• Tesco announced the acquisition of wholesale food firm Booker, a deal that is currently being evaluated by regulatory officials and may result in industry changes.

Meanwhile, US grocery retailers are responding to the news that Amazon has acquired Whole Foods Market, giving the online giant an instant brick-and-mortar distribution channel. In fact, UK and European grocery retailers may also be affected. And European deep-discount grocer Aldi is aggressively expanding across the US, adding to the pressure on legacy supermarkets--just as Lidl opens its US stores.

So grocery retailing is increasingly global even as the industry adjusts to low-price, no-frills competition and the growing popularity of online shopping via Amazon and others.

Ad blockers and consumer behaviour

If you're among the 22% of UK consumers using an ad blocker, you already know that some content-heavy sites (like The Guardian) will allow you to see what they publish but will also request (not require) that you turn off the ad blocker or pay.

And you know that some sites will block you for using an ad blocker--requiring you to turn it off when viewing their pages. If the ad blocker remains on, the content will not load.

Now Google is going to release its own Chrome-based ad blocking software in 2018. The idea is to give consumers more control over ads that are particularly annoying or that don't fit Google's guidelines for some other reason. Why? Because 'it's far too common that people encounter annoying, intrusive ads on the web - like the kind that blare music unexpectedly, or force you to wait 10 seconds before you can see the content on the page', says a Google exec.

Google will also allow content providers to either require that consumers turn off their blockers for those sites or levy a fee for viewing the content.

Consumers who want to access content will have to change their behaviour. Already, content sites are educating visitors that content costs money, one way or the other, and turning off the ad blocker allows a site to continue receiving advertising revenue without any direct payment from the consumer.

Will the new Chrome ad blocker change consumer behaviour and increase the number of UK users? The answer may depend, in part, on whether the blocker comes preinstalled and in place. We'll have to wait a little longer for the details.