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Archive for the ‘Retail’ CategoryMarketing in All WeathersMonday, February 1st, 2010 
Colleagues in our Beijing, New York and Manchester offices have all been complaining about the cold weather of late. With much of the northern hemisphere suffering its severest winter for years, most of us are just trying to grin and bear it. Yet some savvy marketers are definitely making the most of the opportunities this bad weather presents. AdAge.com’s ‘Marketers Make Most of Falling Mercury’ article below tells us all about how some marketers are using the latest weather intelligence to feed into their marketing plans:
In Alabama, the night before the Crimson Tide took on the Texas Longhorns for the National Championship, it would normally have been tough to find chips and salsa, maybe beer. But, instead, Chris Hendrix, 27, found empty shelves where the bread should have been. Bottled water was also in limited supply, as panicky residents stocked up for a forecasted inch of snow. Unusually icy temperatures are gripping most of the U.S. — according to Accuweather, this could be the coldest winter the country’s seen since 1985 — and that’s proving a boon for opportunistic marketers who target their media around the thermometer and have the wherewithal and ability to make their marketing more flexible and nimble. Bad weather is, of course, relative: An inch of powder in Alabama may trigger mass panic and closures, while for Minnesotans it’s just another winter day. For marketers who understand these differences and capitalize on them, there’s money to be made. “That’s where the marketing gold that needs to be mined is,” said Scott Bernhardt, chief operating officer at Planalytics, who said 40% of his clients are using weather intelligence to inform their marketing, up from 25% to 30% 18 months ago. “Marketing into a situation that’s favorable for your product [causes] the numbers to go off the chart.” Creature comfort The brand team conducts weekly meetings with media buyers to review a 30-city “misery index” that Campbell has built using an algorithm that incorporates temperature fluctuations within a given day, the year-ago difference, the week-ago difference and extra credit for snow or “nasty” rain. When an area becomes miserable, it gets a positive ranking on the index (negative ratings ironically connote a relatively happy area). John Faulkner, director-brand communications at Campbell Soup Co., said that when an area becomes about 5% miserable, Campbell will cue up chicken-soup radio ads from BBDO, New York, that typically last three to five days. Its current campaign, which underscores the 32 feet of noodles in every can, ties in neatly with freezing conditions. Mr. Faulkner would not comment on how sales have fared since the company put the “misery” index in place, but it’s clearly worked: Not only has Campbell kept the program going, it’s added a flu-tracking system as well. Not all advertisers are set up to take advantage of events like the weather because of institutional and technological barriers — in fact, only 40% of Planalytics clients tie that information to marketing. But over the past year there’s been a focus on becoming more nimble — not just in reacting to weather conditions or news events, but also to economic changes and consumer behavior changes. Boots made for selling As marketers take advantage of the cold front sweeping the nation, they turn to media that can be swiftly adjusted such as spot radio, e-mail marketing and search advertising. Dan Schock, a retail industry director at Google, said that, for companies looking to buy against newly popular search terms such as “hot chocolate,” “weather forecast” or “long underwear,” his team can launch new search campaigns in just a few hours. In the days before Christmas, for example, Google worked with several advertisers to geo-target the Northeast and adjust creative to capitalize on the impending blizzard by encouraging consumers to shop from home. Weather-triggered campaigns are a specialty of the Weather Channel, of course. The cable network is working with advertisers including General Motors, The Home Depot and Nationwide Insurance to do just that, and it has benefited from bigger ratings as chilled consumers stay inside and keep an eye on the forecasts. According to a spokesman, viewership was up 24% in the first five days of the year, compared with the same period a year ago. And on Jan. 7, Weather.com experienced what was likely its biggest page-view day ever, with 82.5 million views. Ironically, it was tough to get those statistics from Weather Channel last week, as its executives were stuck at home due to icy, snowy conditions in its headquarters city of Atlanta. While some advertisers moved to crank up their buys due to cold, the marketer of Snuggie went in the opposite direction. The mercury plunge caused a run on retail that resulted in an “extreme shortage” for the blanket-with-arms, precipitating Anne Flynn, VP-marketing at Allstar Marketing Group, to halt the brand’s marketing. That notwithstanding, the cold weather is generating plenty of free publicity, be it from local newscasts or appearances of college-themed Snuggies at Bowl Games. “It’s a nice problem to have,” she said, “but when people want their Snuggies, they want them now.” The company is ramping up production. Slight relief Classic Ugg boots that retail between $140 and $180 have been moving briskly. “We are hearing good reports from our retailers all over the country, as consumers are shopping with Christmas cash and gift cards,” said Ed Goins, VP-sales at Ugg Australia. “It’s safe to say that the cold weather is certainly not hurting our business and is most likely enhancing it.” Indeed, cold temperatures appear be helping consumers forget about the recession, at least temporarily. According to Google, searches for “snow boots” began outperforming searches for “cheap boots” in the past few weeks, the first time that’s happened in almost a year. I.T. Sector InsightMonday, January 11th, 2010 
Because Information Technology is one of the sectors we specialise in researching, we always keep an eye on the latest news and industry trends. Marketing Magazine has recently published a sector update, which we thought might of interest to some of our readers: These are tough times for PC and laptop retailers. Technological development may mean that manufacturers are constantly introducing products, but pressure on prices has been fierce. As a result, many sellers rely on sales of peripherals and accessories to make a profit. Specialist shops have faced competition on several fronts: online retailers; manufacturers such as Dell selling direct to consumers; and mixed goods retailers, including Tesco and Argos. Spending on PCs was down 8.8% in the first quarter of 2009, according to Mintel, but the fall is expected to be 5.7% for the year, with information-processing equipment sales as whole worth a total of £5.3bn. As well as price deflation, the market has been hit by the wider economic climate, with many shoppers cutting back on unnecessary expenditure or delaying bigger-price purchases. However, with laptops available for as little as £300, the market has been opened up to those who might have been deterred by the cost in previous years. Online retailers have an advantage over bricks-and-mortar stores because they can carry much bigger inventories. In the face of undercutting by generalist stores, specialists must differentiate themselves through their service and expertise. Apple’s stores show how the retail environment can become an experience in itself with the right investment in interiors and staff. PC World, owned by DSGi, dominates the specialist sector and has a market share of about 26% through its 160 stores and website. It has adopted a cross-channel operation and has invested in advertising support, explaining to shoppers that they can buy online and collect in store if they choose. Apple has expanded its retail operation significantly so that, with 24 stores in the UK, it has doubled its market share in the past two years to 5.7%. Dell, the PC manufacturer that broke ranks by selling direct to consumers, has also widened its distribution network, and in 2008 began to sell through third-party retailers such as Tesco and Currys. The arrival of the US market-leading electrical products retailer, Best Buy, into the UK next year is expected to shake up the sector. While it will bring economies of scale, Best Buy’s investment in Carphone Warehouse means it will also have the benefit of the mobile-phone retailer’s customer insight. Mikro Anvika remains the biggest of the independents with 10 stores, most of them in the London area, but its turnover has recently been declining. Notable online stores include Dabs and Ebuyer, but they are not focused solely on computing, also selling other equipment such as cameras. The products offered by retailers affect the market and the introduction of netbooks – smaller, stripped-down laptops – has lowered the entry point for consumers. Thus, while these products have offered a boost to the market in terms of volume, they also represent down-trading. Industry estimates put netbook sales at 15% of the market in 2008 and some ISPs have started to give them away as a means of extending their reach. Netbooks are also easier for non-specialist retailers to sell, as their reduced functionality requires less expert knowledge among sales staff. Recovery in this market is going to take some time. It will not be until 2014 that the market will return to near 2008 levels, according to Mintel. Between 2010 and 2014, growth is predicted to be 4.9%, which means that value will reach £5.6bn in 2014. If PC specialists can find a way to address the requirements of the older generation, this growing demographic may help their position.
Home and recreational goods sales by value (£m)
Source: National Statistics/Mintel
Types of computer bought by price
Base: 2000 internet users aged 16+, June 2009 Source: GMI/Mintel
Computer retailers by sales and number of outlets
To find out more about our I.T. market research capabilities, please click here. A Successful RebrandMonday, September 7th, 2009
In A Mysterious Case of Rebranding back in April 2009, Caroline Harrison used her Thursday Night Insight slot to comment on the somewhat unusual case of Sainsbury’s, a leading British supermarket, making the decision to rebrand the fish ‘pollack’ (allegedly too embarrassing for shoppers to ask for) to ‘colin’ (clearly much less embarrassing!). At the time, according to retailer, the aim of the rebrand was to increase sales of this particular fish, which tastes similar to the ever-popular cod, is cheaper per kilo, and – importantly for those environmentally-conscious among us – is more sustainable. Caroline finished her article by wondering whether supermarkets, grocery stores and fishmongers alike would all see an upturn in sales on the back of Sainsbury’s Easter promotional rebrand and the surrounding awareness campaign/hype.We’re today pleased to be able to answer that question. According to Seafish, the government body that promotes the fishing industry, pollack has become one of the UK’s best-selling fish, entering Britain’s seafood top 10 as the eighth most popular fish to eat. More than 13,000 tonnes of pollack was sold in the UK retail market last year, outselling both scampi (5,700 tons) and trout (4,400 tons) combined. Salmon is Britain’s favourite species with 49,000 tonnes sold (worth £607 million), and tuna – thanks largely to sales of the tinned variety – is second. The rising cost of over-fished Atlantic cod combined with a certain frugality among consumers thanks to the recession – not to mention the publicity surrounding the colin rebrand – have all contributed to the increase in sales. According to Karen Galloway, Market Insight Manager at Seafish: "Pollack’s popularity has certainly been helped by the current economic climate as people switch from more expensive fish to cheaper alternatives." As reported in the Telegraph, a spokesperson for Sainsbury’s has said that renaming pollack was a temporary trial measure. She confirmed that: "Sales did go up by more than 50 per cent. We are currently in consultation about whether or not to change the name." B2B International is an expert at branding research. To find out more about our capabilities in this area, please click here. A Mysterious Case of RebrandingFriday, April 24th, 2009
In this week’s Thursday Night Insight, Caroline Harrison reflects on an amusing case of rebranding and ponders what the outcome may be. In what surely must be one of the strangest cases of rebranding known to man, UK supermarket Sainsbury’s announced earlier this month that it is changing the name of its ‘pollack’ fish to ‘colin’, the French word for hake. The reason for this rebrand is that Sainsbury’s believes many customers are too embarrassed to ask for pollack because of the way it sounds. The retailer is hoping that this move will increase sales of the fish, which is cheaper per kilo than the similar tasting cod, and is more sustainable. Now I have to admit that it took me quite some time to work out why on earth I should be embarrassed to request ‘pollack’. Personally, I think I would feel more stupid asking for ‘colin’. That’s because, although I now know that colin is a French word and should thus be pronounced ‘co-lan’, most English-speaking natives automatically recognise this word as the boy’s name ‘Colin’, and would find it difficult to say anything other than ‘col-in’. Certainly the thought of having to adopt a faux-French accent at my local fishmonger seems pretty embarrassing to me. Now I am not for one moment suggesting that just because I have no problem asking for pollack, that my views are representative of the wider fish-buying marketplace. Indeed, I understand (and would expect no less) that Sainsbury’s made this move only after conducting market research among its customers. Certainly you do wonder whether there might be some explanation for the comparatively low sales of this fish – over and above the fact that it’s far less well known than cod in the UK. What’s more, it wouldn’t be the first time that a fish that had fallen from favour with the British public underwent a stunning resurgence following a rebrand. Just a few years ago, by changing the name (not to mention the perception) of the humble pilchard to the Cornish sardine, an unfashionable fish was transformed into a popular national favourite (and gave a much-needed boost to South West England’s economy to boot). Returning to our friend Colin, the truth of the matter is that this is more than a rebranding campaign. It’s obviously a massive publicity stunt, but it’s also an exercise in raising awareness. I suspect sales of Sainsbury’s pollack have increased massively in recent weeks, but I’m sure it won’t be because customers are no longer embarrassed to ask for it. It will be, in part, thanks to a curiosity brought about by the media hype of this unusual case. It will, of course, also be because the public is suddenly aware that this fish is a very decent alternative to the more popular cod. I for one, when next at the fishmonger’s, will be aware of pollack (or colin). I now know that it is a good, cost-effective and eco-friendly option, and will likely give it a try in the near future. I’d also be very interested to know if competitor supermarkets and independent fishmongers who still sell plain old ‘pollack’ as they always have, are witnessing an upturn in sales on the back of Sainsbury’s actions? Only time will tell… To learn more about B2B International can help you with branding, click here. A Woolly OfferingFriday, January 9th, 2009
In her first Thursday Night Insight, Research Consultant Emma Flood considers the importance of understanding and maintaining corporate position and brand image. Almost 100 years ago, in 1909, the retailer Woolworths started life in Britain. F. W. Woolworth, as it was known then, sold a variety of merchandise from stationery, to toys and children’s clothes, to confectionary – and had a focus on providing ‘value-for-money’. As an American-owned company, its stores operated using an innovative US-style store layout, encouraging shoppers to browse, rather than to simply make a purchase and leave. By the 1920s the retail chain was riding high, with one store opening every 17 days. More recently, when Woolworths Group plc floated on the London Stock Exchange in 2001 with an opening price of 32p, the retailer continued to perform well, with shares rising and peaking at 55p in April 2005. So what has happened to Woolworths? Since January 2007 Woolworths shares have been in almost constant decline, and after almost 100 years of retailing on the British high street, Woolworths has closed its doors with an estimated £385m debt. Throughout December and January all of its 807 stores will close, and 27,000 temporary and permanent staff will lose their jobs. In its interim report last year, Woolworths noted several factors which now seem prominent in contributing to its demise. There has been a distinct change to the retail landscape, and retailers like Woolworths have seen increasing competition from food retailers (amongst others) who are expanding into general merchandising. The growth of the digital entertainment market has effected a change in consumer preferences towards digital delivery of products (i.e. MP3 rather than CD) and thus further threatened Woolworths’ entertainment offering. Perhaps the overarching factor to be taken into consideration is the current economic climate and the deterioration of the UK retail market, forcing redundancies and store closures amongst other retailers also. The closure of the 807 Woolworths stores has lead to major clearance sales – you may well recall images of the bargain hunting shoppers queuing in their droves, fighting over slashed price goods as the store emptied itself of its final stock, even selling its fixtures and fittings at bargain prices. Or perhaps you’re like me – despite the fact that I too love a bargain, I was not tempted to hunt around the store during its final days. This started me thinking about Woolworths, and why I’ve never been particularly attracted to shop there. Along with the rest of the UK, I am very well aware of the name Woolworths, but had to ask myself the question, what is Woolworths? What does it mean to me? What does it offer? Various images flooded my mind – pick ‘n’ mix counters, shelves stacked with everything from crockery to children’s clothes, and the ever present CD/DVD/gaming section with its fairly limited offer. I looked to the Group’s website for some clarity and found Woolworths positioning itself as ‘one of the UK’s leading retailers focused on the home, family and entertainment’. I’m afraid this didn’t particularly clarify things for me, and I’m still confused by the sheer array of products Woolworths sells, and unsure exactly why I would be motivated to shop there. For me, Woolworths does not hold a clear position in my mind, nor indeed the changing marketplace. In the face of increasing competition, contracting markets and a tough economic environment, it is vital to carve or maintain a distinctive and attractive brand image and position within the market. A clear and differentiated position will make it easier for your customers to identify and engage with your brand and offer, and motivate them to purchase from you. If you do not have a clear message, you are less easily understood by your customers, who in turn have less of a reason to use you. Corporate positioning and branding research enables you to understand what customers and potential customers consider your brand values to be, and what the preferred brand characteristics are. In understanding preferred brand values, you can build a market position which emphasises these and your company’s key strengths; in turn helping to aid customer retention and acquisition. To read one of B2B International’s case studies on Corporate Positioning and Branding, and see how it could be applied to your business, follow the link below: |
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