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Shoppers expect to see their preferred brands on the shelf. Shops and retail outlets are often
centrally limited in the inventory they may stock even though outlets may do so: M&S will
supply only 10 stores with some fashion items, and Homebase limits boards for cutting at
some of its stores meaning customers have to go e h where. Meanwhile other chains are
prepared to more stock around (TopShop spends millions doing so); they rate customer
satisfaction highly. Next also seems to have cracked the problem. One fashion chain went out
of business some years ago through failing to research its customers jackets with sleeves
were stocked in the North of the UK and sleeveless jackets were sent South. Customers in
each case preferred the opposite and a fortune, more than their profit, was spent correcting
the error.
Games are another may to support brand advertising principally through in-app purchases
or free-to-play. Cross-channel campaigns should exploit the differences between mobile and
tablet, making the message a holistic experience, ie one message complements the other.
Strategies that could be used include augmented reality, for example where a shopper clicks
on a view and computer-generated pop-ups add information or descriptions to the scene;
geo-location, where the mobile or tablet using GPS produces messages related to the
shopper's location (usually near the retail store or a brand outlet); or a second screen when
something seen on TV can be accessed by the shopper on mobile or tablet or through an app
(even downloading the app while watching the ad on TV). 'Attract', 'engage' and 'delight' will
be the marketers' watchwords. Make sure that any platforms you use work successfully in all
of the regions and countries from which you draw your customers.
Measuring the effectiveness of all the above is a challenge and is covered in Part Three. Real-
time intelligence where the brand and retailer pick up shopper reaction almost as it happens
is needed to turn the quantities of data into relevant, actionable insight, transforming the
end-user experience positively into purchases. The Kellogg's delivery overnight of on-pack
gold medal winner naming, is an ex-ample of near real-time action. (Yes, Kellogg's had the
packs printed with winners' names, filled and delivered overnight to the shops!)
The strong trend to discounting is developing two types of consumer: the ones that are not
driven by price alongside brand, and those that are. This suggests three different measures
of loyalty: customers who are loyal under all normal circumstances, those who are loyal under
discount (in particular when a shopper can 'larder fill') and those with no brand preference.
IPM research with Retail Bulletin indicates a broad trend that loyalty cards have moved the
two major users in the UK (Tesco and Boots; for the latter, 68 per cent of sales are from 70,000
Advantage card holders) above their expected market position. Loyalty cards also provide
valuable data on shoppers.
Coupons or vouchers have the greatest effect (55 per cent buy a product they would not have
otherwise), followed by in-store tasting, then a money-saving discount. Samples in any form
work well, whether given away in store with other products or through door drops even
cover-mounted on magazines. Moneysupermarket.com estimated some 2.4 million vouchers
are redeemed every day, representing 30 billion in a year. The positive impact of a coupon
on customer buying behaviour even works when the value of the coupon is small research
indicating that there is no difference in response between a 15p off or a 75p off coupon or
voucher.
A retailer's pre-purchase communications are based on activities that signal that a consumer
is shopping, but has not necessarily made a selection or is ready to purchase. This is a critical
part of the purchase process because, when done well, retailers have the maximum
opportunity to influence consumer shopping behaviour. The 53 per cent of retailers who
collect product-level browsing data, however, are already way ahead of their competitors:
they collect a large number of data points. Of those who collect product-level data (product
category and specific product, price, product details, ratings or reviews, quantity, image, URL),
more than 80 per cent of respondents leverage product category and SKU (stock keeping unit)
information when using browsing data to target e-mail communications. What is interesting
is how few retailers are leveraging product images: only 59 per cent. This is a great missed
opportunity, as market research has continually shown that images have far greater
suggestive impact on consumers than text.
BRIEF 2.1: Future of retail is in 'bricks and clicks', says John Lewis
Contrary to some headlines, we don't think that online shopping is replacing the high street,
our shoppers tell an they still enjoy shopping as a leisure activity. John Lewis continues to
draw customers with shop sales up.
BRIEF 2.2: What will stores of the future be like?
Thomsons new-look shop in Bluewater features a video wall shop window, an 84-inch touch
screen interactive map, and high definition screens and projections throughout the store
offer changing images and videos, with content that includes, live weather information,
reviews and destination videos.
Screwfix takes orders from builders directly and deliver to site. This is copying the just-in-time
work practices of manufacturing, a proven cost-saving measure for the builder which
enhances the direct sales for Screwfix.
Forrester Research reports that 'many B2B companies project that e-commerce will n
comprise 50 per cent of total sales', so B2B should follow B2C practice. With more
competition and tighter budgets than ever before, a business needs to:
1. Identify your ideal customer produce a profile.
2. Define a sales-qualified lead and the marketing processes to nurture it.
3. Develop the most appropriate messaging and execute a highly targeted multi-channel
marketing strategy.
4. Create engaging content to attract and nurture.
5. Connect with prospects where they spend their precious time.
6. Utilize tele-nurturing and telemarketing for lead follow-up and qualification.
7. Pass the lead to sales.
8. Close the loop, measure, refine and report to the senior management team.
The mailing achieved a 14 per cent response rate against a target of 8 per cent. As many as
3,487 dentists ordered samples and subscribed to the quarterly magazine, exceeding the
target by 172 per cent. This success was attributed to the intriguing nature of the mailing
piece, which won over a tough audience.
CASE STUDY 2.3 Mazda's Operation Renesis - Can you handle it?
Mazda's insight into its target audience of professional 30-45-year-old males was paramount
in the success of its Operation Renesis campaign. Potential customers were challenged to
participate in a unique experiential event in which they would be trained to drive like a special
agent. Applicants completed an online profiling questionnaire to establish their suitability.
Taking cues from 'Spooks' and The Bourne Supremacy', the three interactive driving zones
included J-turns, avoidance driving and a proving ground complete with explosions and fog
screens. The six most talented trainees won a training mission to Moscow.
The campaign delivered exceptional results, massively increasing the perception and
awareness of the brand. It also generated significant PR through owners' clubs websites,
YouTube and 'Top Gear as well as creating an innovative property that can be leveraged in
the future.
Call it `bonding with a brand', ie the customer has your brandgram in mind which is entirely
positive and exceeds any loyalty. It is a CEO deliverable to have a brand that is wholly loved.
It gives a value far in excess of the bricks-and-mortar worth of a company. The Worshipful
Company of Marketers showed in a booklet how, by discovering bonding with a brand as a
measurement, it can be used to predict future share value.
The most difficult element of a brand for any firm to manage is the 'psychological' part, that
is, achieving and retaining ownership of a piece of the customer's mind. Companies often talk
about 'creating an image'. They may do so in the minds of the staff ssho work long and hard
to devise it. They only do so in customers' minds when customers adapt, develop and absorb
that image as their own, built as a `mind file' on the engram. Companies can offer an image,
but they cannot make an image stick. If it is attractive and powerful and accords with
customers' own experiences, it will form part of their image of the product or service.
Thoughts and images in our own minds are, thankfully, beyond anyone else's total control.
Customers retain brandgrams; seeing an engram triggers a brand if the retention has been
successful. The engram is a 'shorthand' memory device, a mix of logo, slogan or a feeling that
the customer relates to 'advantage' with regard to a need. If you have such recall in a
customer, you are made. But beware: if the concept you are selling does not match the
perception, image and experience of the customer: you are far less likely to make a sale. You
also need to nurture that retention constantly and favourably reinforce it. Reducing brand
support marketing in a recession is fraught with long-term risk. Guard against operational
measures that destroy the brand's value (think of banks, and horse meat!).
It is quite possible to have different perceptions of your brand in different parts of the globe
or even in different parts of one country. Guinness for a time advertised in Africa unwittingly
using a symbol that implied that Guinness improved fertility. Brylcreem was thought to be a
food delicacy in an African country. A failure of branding, unless of course you are happy to
sell with that branding mismatch. you might think unless of course you are happy to sell
with that branding mismatch.
It is also quite possible to reposition a brand. Sometimes this is essential to Save a brand that
has become dusty and is failing. Failures are often the seed corn of success if the lesson is
understood. Lucozade was rebranded as a sports drink from its previous life as an expensive
drink for when you were ill. It used to be said by the old, generation that cm knew you were
really ill when the Lucozade appeared. How different it is now.