Sep 2, 2011 | Branding, Communication, Marketing
The link here is to the Social Media Examiner site, probably the best commentator on things “social media” amongst the thousands out there, offering 9 reasons why content does not get shared, emerging from some useful research.
Thing is, as I read the list, it is not just about the leverage offered by social media, it is about marketing generally.
All the 9 reasons can also explain why your brand has little relevance to a consumer, refuses to “stick” despite the huge advertising budget, and just gets missed by busy consumers.
Make sure you have a look at the Volkswagen ad in the post, sure to bring a smile to the face of anyone with a heart, it also ranks in the top 10 viral ads, according to the number of on-line views.
Aug 26, 2011 | Change, Management, Marketing, Small business, Strategy
The decision yesterday by the federal Court to allow Metcash to purchase Franklins from Pick n Pay, then onsell, presumably with tied supply agreements is another nail in the coffin of competition in the retail trade, despite the interpretation of the law by the courts.
Now you have Coles, Woolworths and Metcash with a share above 90% of the supermarket trade, limited choice for consumers, a nightmare for suppliers, particularly the decimated local suppliers who have struggled against the increasing power of the retailers for 30 years, and have largely failed.
Several things will emerge that will accelerate change in the supply landscape.
- Scale should dominate the strategic thinking of suppliers. You need to be a gorilla to play with gorillas, so get big or get out. The only alternative is to back off and be a small specialty producer, concentrating on the small share of retail trade not controlled by the 3 gorillas.
- It will be increasingly difficult at the smaller end of the size scale. The businesses left that turn over between a couple of million, and 50 million, many of them regional, with extreme pressure on their finances at a time when banks are not being helpful despite their advertising, will struggle. There are only a few left, and many of those will go to the wall.
- Competition between supply chains, from growers through to retailers will increase. Soon, if you supply Coles, you will not be able to supply Woolies, without risking your position with Coles. Suppliers will need to make choices, and gear up to integrate themselves into a supply chain system, losing their independence, and closing off options. This may not be a bad thing, but it is a substantial change from the current practice and way of thinking, and it limits the scope of customer base available through which to reach consumers with your product.
- The move to housebrands will accelerate, further enabling global sourcing by retailers, squeezing local suppliers. The $A has punched this process along over the last couple of years, adding more pressure to local suppliers who, having lost shelf space for their brands, were relying on contract packing to stay afloat
- Retailers are lousy marketers, good at sales, but lousy marketers. With housebrands coming to dominate categories on price, attractive to consumers in tough times, where will the innovation come from? Where is the incentive for local suppliers to risk their limited capital in doing something different?.
The ACCC, governments at all levels and the courts implicitly decided years ago that the SME end of the food industry was fair game, the survival of the fittest, and all that, and from an economic perspective, it may be the right thing to have done, but at what cost in human terms. The old question I have used in many seminars to make the point about retailer power:
Question. “Where does the 400kg gorilla sleep?”
Answer. “Anywhere he bloody likes”
Aug 5, 2011 | Branding, Marketing, Social Media, Strategy
Tesco is the leader in the field of retail social media marketing, as noted in the past, but have really outdone themselves with this experiment with a virtual store in railway stations in South Korea.
The speed at which innovations are being tested, and if implemented is increasing, but usually we would expect a smaller business to be sufficiently agile to try some of this stuff, but Tesco is building a really impressive track record.
Australian supermarket retailers are in the dark ages by comparison, although some of the smaller food service retailers are starting to move with location and coupon promotions, but I would expect Coles particularly, now managed by a veritable cricket team of ex-Tesco Poms to make the running amongst the big boys.
Aug 3, 2011 | Branding, Leadership
Really good brands often display remarkable resilience to the depredations of those who do not understand what makes a great brand, and from time to time, one is resurrected by insight and hard work.
I am not a gardener, but the most appropriate metaphor appears to be a gardening one, someone who “really understands” comes in and heavily prunes the almost dead roses to the exact size and shape necessary for renewal, and come the spring, a newly vigorous plant arrives.
Such a resurrection has been evident in the Starbucks chain of coffee shops. Founder Howard Shultz re-emerged from retirement as CEO after the management that followed him stuffed a great business, did some radical pruning, and Starbucks is now again a great business, whatever you may think about their coffee.
In England a few years ago, there was a Starbucks on every corner in the West end, and the coffee was rubbish, to be avoided, but the near death corporate experience has renewed the chain in the UK, perhaps requiring a revisit next time.
It takes a very strong leader to acknowledge the mistakes of the past that led to the weakening of a brand, and usually there are many mistakes, often small and logical when viewed in isolation, but profound when seen as a whole. This leaked memo from Shultz is such an acknowledgement, and served as the “burning platform” from which the changes to rebuild the Starbucks brand could be launched.
Jul 28, 2011 | Branding, Marketing
Sometimes asking a customer, or potential customer what they want is a bad strategy, as they can only respond from the perspective of what they already know and understand.
When you have something different and unknown to offer, there is not much point asking, you just need to get trial.
The elBulli restaurant run by Ferran Adria has been voted the best restaurant in the world for some years now, it costs a fortune, is very hard to get to, and has anything but a conventional menu, yet thousands are turned away each week. Chef Adria ignores customers, and they love him for it.
Several times over the years I have launched products that were genuinely new, and learnt very early on not to do any quantitative research at all, and no qualitative work unless those involved could see, touch, feel, and use at least a close prototype of the finished product. Only then can they offer an opinion worth listening to, but even then, there is little you can do to prototype the power of the brand which may evolve over time.
To continue the elBulli example. Had Chef Adria put some plates of curry ice-cream in front of a group of a group of people who ate at 5 star locations, and told them how much a trip to his restaurant would cost, and by the way, it was a 2 hour drive through treacherous mountain roads to get there, and they would have to wait 6 months for a booking that had nothing to do with when they may want to eat, it possibly would not get a gold star from the research group. How is it then that it is judged the best, and is probably the most famous restaurant in the world?
Just when you thought you had the rules of marketing nailed, something like this comes along!
