Archive for the ‘market analysis’ Category

It’s a dog’s life

Friday, August 27th, 2010

I really don’t know why we use that expression because, for all you committed dog owners out there, we know that the life our pampered pooch leads is one we would be more than happy to adopt ourselves in a parallel universe. As if we don’t pander to their physiological around the clock needs enough – feeding at the appointed hour, going for regular comfort break walks, letting them have their forty winks on a comfy bed – we also contribute to a multi-million pound industry that has developed to market to us, the susceptible dog owner.

Just some of the marketing ploys that I have become increasingly aware of are:

  • Pet friendly hotels; now some of the most prestigious boutique hotels actively encourage us to go on a short break with our four legged friends http://www.petfriendlyhotels.com/
  • Pet insurance has been with us for a long time but it is now becoming increasingly segmented with different tiers of cover to make the caring owner guilty of just opting for ‘basic’ cover. My dog is ten years old and his insurance renewal came in today – they wanted over a 200 per cent increase! So, I turned to those friendly meerkats and found a much better deal http://www.comparethemarket.com/more-products/pet-insurance/
  • Dog food has gone from being a choice of mass produced wet or dry to mirror the human food development into niche diet, premium and gourmet options. But even that doesn’t compare to the latest K99 ‘puppy sundae’ (ice cream to you and me) van catering to over heated pooches with ‘dog eat hog world’ and ‘canine cookie crunch’ flavours http://www.trendhunter.com/photos/82037
  • Dogs can now have as many toiletries, vitamins and supplements as their preened and paranoid owners, to treat anything from dry skin to stress, as well as undergo a range of alternative and natural therapies
  • Building on our desires to make our pet a member of the family, pet photography is becoming fashionable with people even dedicating themselves to this area of work
  • And don’t get me started on the vast array of dog clothing; animals should be animals at the end of the day, not design accessories

But, as in other areas of our society, there is a marked division appearing in pet ownership between those that care for and (can afford to) indulge their pets and those that either can’t or won’t. With the Christmas season soon to be upon us (doesn’t the build-up start as soon as the children go back to school?!) please remember the now infamous Dogs Trust adage ‘A dog is for life, not just for Christmas.’ http://www.dogstrust.org.uk/az/a/adogisforlife/default.aspx

Posted in market analysis, marketing quests | No Comments »

Brands put the boot in after England World Cup defeat

Tuesday, June 29th, 2010

Now that the much-hyped England World Cup football team have returned home after their trouncing by the Germans, brands have had to re-evaluate their planned ‘England win’ executional strategies and instead ‘put the boot on’ for the purpose of brand marketing.

Jumping on the Frank Lampard goal that was not given in the England – Germany game because the linesman from Uruguay did not see it, Asda have grasped the marketing opportunity and are offering anyone with a Uruguayan passport a free eye test!

As reported by Marketing, the first two newspaper ads capitalising on the defeat ran the day after the game by two car companies. Kia ran an ad in The Times to promotes their seven-year warranty with the headline “Oh well, at least our warranty beats the Germans”. Nissan chose The Sun to promote its GT-R with the headline “One match the Germans didn’t win”. Read more at http://tinyurl.com/2dznawa

Interestingly, the Nationwide sponsorship of the England team runs out at the end of June, just days after the crushing defeat. Their exclusive renewal period ran out earlier in the year but they claim that the brand is still in talks about the future. At least Sunday’s dire result should have brought the price down if they are still interested!

If not, who else could take up the mantle? Here are just a few of my suggestions but feel free to send me your own:

  • An obvious choice would be Avis who could adapt their well-known brand slogan to, ‘We must try harder’
  • Or, how about an oil company (topical industry at the moment!?) with Esso’s old slogan ‘Put a Tiger in your Tank’!
  • A tea brand makes sense – either the about to be revived Tetley Tea Folk for ‘the Gaffer’ or the PG Tips chimps (needs no further explanation!)
  • Or how about Bahlsen’s Messino that is trying to steal share from McVitie’s Jaffa Cakes brand with the slogan ‘the future’s oblong’
  • And back to sport, Nike’s brand slogan would sum up what we all think ‘Just do it!’

Posted in market analysis, marketing marvels, marketing mistakes | 2 Comments »

Brands through recession

Sunday, May 23rd, 2010

A fascinating article in yesterday’s Guardian Money has shown how our spending habits have changed through the worldwide recession. Here are some of my favourite highlights:

  • Women are eking out regular salon hair and beauty treatments by another couple of weeks – so good news for off-the-shelf brands – with premium health & beauty brands continuing to hold up (the little ‘lipstick treat’ effect) with only a very small percentage of women trading down to cheaper options, preferring to be more thrifty with their preferred brand. For more on health & beauty in the credit crunch, go to http://tinyurl.com/2w7fkhb
  • 1 in 8 fashion shops have closed and new clothing has taken a big hit apart from the cost-conscious that have rushed to Primark and the stronger fashion labels, such as Burberry. But us women are nothing if not inventive and the recession has caused both a revival of knitting and sewing and a trend for personal looks created from charity shop bargains as well as a strong second hand trade through swishing. One brand busting the trend with record sales is Agent Provocateur, apparently driven by more cosy nights in?! For more on fashion in the credit crunch, go to http://tinyurl.com/39yy9nq
  • The onset of the credit crunch had a marked impact in food retailing with Marks & Spencer and Waitrose customers reputedly trading down to Sainsbury and Tesco and their customers deserting for Aldi and Lidl. What had been a growing demand for quality and healthier foods stopped almost immediately as did sales of the relatively expensive ready meal. Instead the country enjoyed a return to home cooking and the adult packed lunch became a common sight – great news for Thermos. For more on food in the credit crunch, go to http://tinyurl.com/2eg34cl

But a really interesting learning from the recession is that the period of austerity seems to have instilled a return to old-fashioned values with consumers now starting to look for trusted value over cheap and disposable, which is a trend that brands in all areas should respond to.

Posted in market analysis, marketing quests | 1 Comment »

Nick Clegg brand (up)rising

Tuesday, April 20th, 2010

The last week in UK politics has been totally fascinating – and how often have we ever been able to say that?! I’m looking at it (as objectively as possible) from a marketing standpoint. Before last Thursday we had a weakening market leader and a strong challenger brand that, between them, were confident of monopolising the UK voter at the expense of all other brands in the market. That was despite the public anger about the financial crisis, where the bankers have been seen to have ‘got away with it’, and the complete loss of trust caused by the MPs’ expenses debacle. One of the basic rules in marketing is to identify and listen to your audience; and they didn’t. They thought it could all be pushed aside with a few apologies and then it would be back to ‘business as usual’ under the misconception that they are the only options open to the market.

The leaders lined up on Thursday with Gordon Brown and Labour expected to get a kicking as the incumbent government; being on the receiving end of the electorate’s frustration with the current financial situation and issues around immigration, defence, crime, health and education. David Cameron and the Conservatives were said to have it all to lose, with market expectations on him to steal the show, attacking Labour’s record with the sort of style and panache he displays at prime minister’s questions. Oh yes, and there was that other chap, Nick Clegg, the leader of the Liberal Democrats who many thought should be grateful to have been given the opportunity to turn up, whilst others thought his minority status was an unnecessary distraction.

And so they presented their (marketing) propositions with Labour and the Conservatives engaged in their usual sparring. Gordon Brown probably landed a few more punches than had been expected whilst David Cameron seemed decidedly uncomfortable and did not perform as imagined. And what both the big ‘brands’ ignored at their peril was the feisty number three brand. Nick Clegg and the Liberal Democrats had nothing to lose and were in the enviable position of not being accountable for the mistakes of the past twenty or thirty years. And Nick Clegg went for it, branding Labour and the Conservatives as the ‘old way’ of doing things and proposing a new, fair way. He struck a chord with the (target) audience and could, quite possibly, have changed the result of this general election.

They say that a week’s a long time in politics but the change from before and after last week’s debate on the UK political landscape is little short of extraordinary! As reported by The Guardian, before last week’s election debate, bookmakers William Hill gave Nick Clegg ‘at most a small chance’ of becoming the next prime minister. And by ‘small chance’, they meant it was about as likely as the Loch Ness monster turning up in the next five years. ‘And I’m not sure we weren’t taking more bets on the Loch Ness monster,’ said Graham Sharpe, the William Hill spokesman. Before the debate William Hill was offering odds of 300-1 on the Lib Dems winning an overall majority on 6 May. Today, William Hill is offering 20-1 odds on an overall Lib Dem majority and 12-1 on Nick Clegg becoming prime minister! What a difference an hour and a half TV appearance can make!

So, what are the marketing lessons to be learned?

  • Don’t underestimate your target audience – listen to them and act on their comments if you want to win their brand loyalty
  • Don’t assume your competition is the same as it always has been – that minority brand can do something to thrust it into the limelight and potentially steal your market share
  • Always expect the unexpected!

Posted in market analysis, marketing marvels | 2 Comments »

Fashion brands – is your label showing?

Friday, March 26th, 2010

Following on from February’s Fashion Week, the experts believe 2010 will continue to be a challenging year for the UK fashion industry. With an inconclusive budget and the impending election, consumers are still reluctant to spend despite feeling a little more confident in making discretionary purchases. The crucial Easter trading weekend is in danger of turning into a washout, according to high street retailers that have been disappointed with the slow start to March.

But there are some positive brand stories on our high streets. Buoyant first-half sales were posted by department store retailer Debenhams, much of the credit going to their re-launch of the Principles label at the end of February, which CEO Rob Templeman described as ‘our best brand launch in our history!’ Debenhams bought the Principles brand in 2009 after Mosaic, the fashion chain’s owner, went into administration. The new version of the brand is under the design control of Ben de Lisi, a long-time member of the ‘Designers at Debenhams’ stable, and is tapping in to a latent brand loyalty.

Debenhams is also making a strategic move away from fashion brand concessions, preferring to control the buying and merchandising process internally, thus creating larger margins for the retailer. Another move towards this has been the introduction of a young fashion collection designed by Henry Holland.

Momentum in department store competitor John Lewis built throughout last year, with an increasing emphasis on fashion within the portfolio. The retailer has cemented its position as a key high street fashion player with the addition of a raft of younger, more premium brands including G-Star and Diesel to its mix.

Smaller fashion brand retailers including Republic, Ted Baker and H&M have outperformed the clothing market and managed to grow their market shares through 2009, despite the economic climate. While they are not the cheapest fashion retailers, and their lack of scale could make it difficult for them to compete with their larger rivals, they have been successful by delivering perceived good value through their brand points of difference including exclusive range expertise, customer service and in-store experience.

One possibly surprise winner in the recession has been Monsoon who, with 425 stores in the UK and some 600 overseas, was taken back into private ownership in 2007 by founder Peter Simon who started the business back in the early 1970s. This lends support to the argument that a clear and distinct market positioning, where you know who you target customers are and deliver to that, is a strength in a difficult market. Monsoon has always offered a colourful, slightly bohemian style clothing range influenced by eastern textiles.

And there are a number of fashion brands that are deciding to change owners for the new season. Earlier in March, French Connection announced that it is to sell the Nicole Farhi label to a private equity group based in Los Angeles for ‘up to £5m’ and close almost three-quarters of its US stores in a restructuring move designed to return it to profit in 2011. The move follows a strategic review of the business, which has already seen the closure of unprofitable stores in Japan and northern Europe. The business was originally set up in 1982 by the fashion designer Nicole Farhi and Stephen Marks, chairman and chief executive of French Connection.

Also in March, up market brand Liberty sold its flagship central London store for £41.5m, on a sale and leaseback deal, in the midst of takeover talks for the remainder of its business. And, at the other end of the price spectrum, New Look is declaring a strong trading performance that will revive their desire for a stock market flotation.

But what about new businesses; is 2010 a year to take that plunge or to retreat from the brink? Well, according to Dragons’ Den entrepreneur Theo Paphitis, 2010 could be the best time in years to start a new business! He’s certainly taking his own advice, opening a new national lingerie chain, working name DNA Lingerie, to rival the company he used to own, La Senza that is thought to be struggling through the recession.

The moral of this story? The golden marketing rules of researching your market, defining and refining your proposition and engaging with your customer apply even more in a difficult economic climate.

Posted in market analysis | 6 Comments »