Burberry leverages the power of social media

https://www.instagram.com/burberry/

Social media platforms such as Facebook, Instagram and Twitter play a central marketing role for the UK fashion brand Burberry. Its marketing strategy actually relies on four distinct pillars: product, communication, distribution and digital. About communication, the company explains: 'We are evolving our communications to be led by product and made for social media'.

One study found that Burberry topped the list of 20 most valuable UK brands using social media in 2017. Fashion industry publication WWD says Burberry had the best-performing social media strategy during February's 2018 London Fashion Week. This is actually nothing new for the brand, which has long put special emphasis on social media and ecommerce: CampaignLive hailed Burberry's savvy social media strategy during London Fashion Week in 2014.

By cultivating tech-savvy consumers, Burberry has amassed an Instagram following of more than 11 million people. Its Twitter account is followed by 8.7 million people. More than 17 million people have clicked to like its Facebook page. In short, Burberry is leveraging the power of social media to reach and engage style-conscious brand fans who buy in stores or online or both.

This post updates the Burberry example in Chapter 8 of my Essential Guide to Marketing Planning.

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

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.

Ryanair adds share, profits and partners

Not every marketer can achieve both higher market share and higher profits, but Ryanair's marketing plan has accomplished these two key objectives through price cuts.

By adding more jets and cutting fares to attract passengers, the no-frills airline has successfully boosted market share while forcing competitors to respond.

Even as Brexit proceeds, Ryanair is preparing for the future through partnerships with European airlines. The plan is to allow passengers to book longer-haul travel through Ryanair and connections with its partners, including Air Europa, Aer Lingus and Norwegian Air.

Ryanair's long-term goal is to be flying 200 million passengers yearly by 2024. Currently, the airline projects it will fly 130 million passengers in the next 12 months--with lower prices and higher profits.

This post updates the Ryanair case in Chapter 3 of my Essential Guide to Marketing Planning, 4th edn.

Reckitt Benckiser Reassesses Strategy

Updating Chapter 1 of my new Essential Guide to Marketing Planning, take a look at Table 1.3, which illustrates levels of strategy for Reckitt Benckiser.

Corporate strategy covers decisions about long-term direction, value creation and priorities, as well as purpose and focus.

Business strategy covers decisions about each unit's scope, competitive approaches, markets, and resource allocation.

Marketing strategy covers decisions about products/brands, communications, channels/logistics, pricing, and marketing support.

Now Reckitt Benckiser is reassessing its corporate and business strategies, considering whether to sell off its food unit, which includes French's mustards and sauces. Although this unit contributed £400m to RB's revenues in 2016, the company doesn't consider food to be a 'core business' according to this statement:

'Food is a truly fantastic business with great brands, people and a history of outperformance. It is nevertheless non core to RB. We have therefore decided to initiate a strategic review of Food where we will explore all options for this great business'.

Reckitt Benckiser recently reached agreement for acquiring Mead Johnson Nutrition, an expensive deal that would require funding and focus. Thus, RB's decision to consider leaving the food business, which would allow the company to reallocate resources and focus on the remaining business units plus the new infant nutrition unit. 

On the level of marketing strategy, RB is looking at ways of using Big Data across multiple media (traditional and digital/social/mobile) to reach consumers in a more personal way via communications. 'As a brand, data ownership is your most valuable asset. It drives insights, it drives sales, and helps to know your consumer', says the Global Media Director.

What's new in chocolate marketing?

Chocolate for the holidays . . . chocolate as an everyday affordable luxury . . . chocolate as a socially-responsible snack. These are some of the ways that chocolate marketers position their products. The world of chocolate marketing is changing, thanks to changes in technology, consumer behaviour and society.

• Nestlé announced today that it has discovered a scientific way to reduce the amount of sugar in a chocolate bar without sacrificing taste. The company has been trying to reformulate its products to reduce levels of sugar. With obesity a concern in many nations, marketing chocolate with lower sugar could make products like Nestlé's KitKat bars more appealing to a wider market. 
• Toblerone, made by Mondelez International, recently changed two of its chocolate bars to reduce the weight, in response to higher ingredient costs. Most if not all chocolate marketers are experiencing higher costs, which some can absorb for months and others must pass along in the form of higher prices or reduced-size products. 
• Consumers are often interested in where a product's ingredients come from, seeking out ethically-sourced chocolate from companies that have a social responsibility agenda. 'Single-origin' chocolate is sourced from one area, ideally from one group of cocoa growers who receive fair-market pay for their crops. Single-origin chocolate also reflects the distinctive flavour of its beans. Waitrose, for example, is marketing chocolate bars from specific sources, each with its own flavour. 

• Hotel Chocolat was a leader in single-origin chocolate, a first-mover advantage in mystique that has helped build its brand. Now Hotel Chocolat, which has a chain of branded shops, is continuing its growth by opening cafés where customers can experience its chocolates in a branded restaurant-style setting.

Some of these trends are discussed in the updated sample marketing plan for the fictional company Lost Legends Luxury Chocolatier, when my next edition of the Essential Guide to Marketing Planning is published in 2017.