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Posts Tagged ‘consumers’

CONSUMER PR AND MARKETING DURING THE RECESSION HAS MADE BRANDS BRAVER. NEEDS MUST?

Monday, July 13th, 2009

Since the recession hit we have seen many brands take a nose dive both in sales and brand image. To many this has meant the end, but to others this was just the beginning of what may become a bitter or glorious brand war.

Last month two of Britain’s biggest supermarkets waged a multi-million pound price war on each other, giving shoppers an unexpected and welcome boost to their budgets as the prices were slashed throughout both stores. Firstly, Asda jumped in with two feet, revealing they planned to make cuts of £250 million to 10,000 items, including food, clothing and general merchandise. Tesco swiftly followed suit, announcing £270 million of reductions to more than 3,000 products.

The supermarket wars are now in full swing and these guys are not afraid to play dirty, claiming out and out that they sell the cheapest and best products around and publicly slurring the opposition in advertising and PR campaigns. Some are even parking branded vans carrying sabotaging messages outside competing superstores. Asda Chief Exec, Andy Bond is upfront about his intentions, telling the Telegraph, “We are declaring a supermarket price war. Over the next year we’re going to expose businesses that prey on customers, forcing them to pay through the nose for goods and services while they pocket massive margins.”

The supermarkets are not the only ones going head to head. Pepsi and Coca Cola, the two marketing arch-rivals are rumoured to be gearing up to continue their age old brand fight. Add to this Apple’s 2008 advertising campaign, slurring the lowly PC in their British poster campaigns, a move some have called ‘obnoxious’ and ‘borderline unethical’, but one that Paul Lee at Clean Cut Media calls, “so unique and memorable it will most likely go down in history as one of the best campaigns.”

This week Brazen launched the Nicky Clarke desiRED straighteners. Thanks to some sterling results from independent testing, the consumer PR and marketing strategy is now lead with the statement – “Independent tests show more women prefer Nicky Clarke desiRED straighteners to ghd” – a clear message and a full on head to head strategy – and one that invites the consumer not only to try the product but to check out the (considerably cheaper) price – a hugely important factor at the moment. This strategy is a winner no matter what state the global economy is in, but during the recession this is an even clearer call to action to the consumer.

In this financial climate this is fast becoming the norm however, and the consumer should sit back and enjoy the benefits that come from feuding brands. The recession is forcing companies to become more creative, think faster and smarter. It makes sense. After all this is a brand eat brand world now and only the fittest and most ruthless can survive. And along the way, we are all learning more and more effective consumer PR and marketing strategies. Enjoy consumers, enjoy.

By Victoria Jones, Account Director

IT’S ALL ABOUT THE MUSIC…OR IS IT?

Tuesday, July 7th, 2009

Having returned from Glastonbury Festival, albeit very blurry eyed and nursing a few painful scars, Glasto remains to be the one and only music festival.

Founded 39 years ago by Michael Eavis and a load of other hippies, Glastonbury stands head and shoulders above any other music event. With more and more music fans shying away from other large festivals such as Reading/Leeds Festival, Wireless and V Festival due to their commercial connections, Glastonbury remains a safe haven for the music, fun and festivities.

But don’t be fooled in thinking that Eavis is part of the anti-establishment for beneath his big, bushy, white beard lies the jaws of a cunning capitalist. Sure, Glastonbury appears innocent enough from the outset…there’s no blatant sponsorship of the overall event and those who do promote themselves alongside it such as the Guardian and Orange, actually provide a useful service.

However, 170,000 people crammed into fields which usually hold just over 300 cows, is a consumer PR and marketer’s wildest fantasy! And this is where Mr Eavis comes into his own by not allowing the overall ethos of Glastonbury to become corrupt but allowing corporations to fight it out between themselves inside the famous Glasto walls – hence those who provide a useful service to revelers, get the most exposure…alcohol is surprisingly popular!

Jokes aside, corporations such as Smirnoff, Strongbow and Carling aren’t paying for the privilege to sell their product. They’re selling their product alongside an unforgettable experience. For example, I can remember sipping a Strongbow whilst witnessing Blur bang out their set, laughing at Spinal Tap whilst tucking into a Yeo Valley yogurt and launching a George W approved SCUD missile at Lady GaGa

Even the small market traders are as ruthless as the big corporations. On the day of Michael Jackson’s death, the news was common knowledge onsite at around 11pm. By 7am the next morning, traders throughout the festival were selling commemorative T-shirts…cashing in long before rigor-mortis had even set in.

For the moment, Glastonbury remains the king of festivals and the most effective form of direct interaction with consumers. With the emergence of increasingly popular small festivals who pride themselves on honesty and virtue, can these niche/bespoke festivals draw enough hype to pull away Glastonbury’s loyal audience? Furthermore, how long can they keep it just about the music?

As for me, I’m going to book my Brazen holidays now…see you at Glasto 2010!

By Graeme Anthony, Account Manager

TWITTER ANNOUNCES CORPORATE CHARGES

Thursday, March 26th, 2009

Twitter today unveiled its plans to start charging corporates for sending tweets to its followers. The move has been on the cards for a little while now and Biz Stone, co-founder of Twitter explained:

“We think there will be opportunities to provide services to commercial entities that help them get even more value out of Twitter. If these services are valuable to companies, we think they may want to pay for them,”

With the massive upsurge in popularity of Twitter in recent weeks, (1,382% increase YOY in February according to Nielsen Online, although exact figures of users vary with little official information out there – possibly 5m, worldwide?) it’s no wonder Twitter wants to cash in as there’s potentially a large fortune to be made.

Actually the truth may be even simpler. Having recently refinanced there will undoubtedly be a pressing need to show a significant return to investors.

However, there are some pressing questions that need to be answered before the new charge can be judged to be a success or not;
How will the Twitter community respond?
Will there be a backlash?
Will brands and marketers be prepared to pay?
How will the cost of acquisition and cost of sale compare to other channels?
Will it devalue the overall user experience having sponsored areas?

Will Twitter be successful in its latest move or will it backtrack like Facebook ? What do you think?

twitter1

By Rick Guttridge, Associate Group Director

CONSOLIDATION AND THE IMPORTANCE OF STATUS STORIES FOR BRANDS

Tuesday, March 24th, 2009

No one needs reminding just how tough it is on the high street at the moment. It’s the cleverest brands, the ones that evolve and engage most effectively with its consumers that will survive and come out stronger on the other side when the system eventually turns full circle.

In the short term consolidation is the key word. Consumers are consolidating and perhaps buying one quality item of clothing per season that will last rather than multiple cheaper products that won’t go the distance. Retailers are also consolidating and stocking fewer brands but stocking more of the chosen few. This period of Darwinism will be good news for the lucky ones and range reviews for 2009 will be more fiercely contested than ever before. Expect to see the strong grow stronger and the weakest fall by the way.

So how do brands convince the buyers to carryon stocking a product? The answer comes from story telling. Many people are feeling uncomfortable about showing off their shiny new purchases at the moment, as they feel guilty spending during a recession. They shouldn’t! Don’t feel bad, if you can afford it spend it please – the more money we get circulating the more we all play our little part in turning things around.

This excerpt from trendwatching is very telling and defines exactly what a status story means for a brand:

“As more brands (have to) go niche and therefore tell stories that aren’t known to the masses, and as experiences and non-consumption-related expenditures take over from physical (and more visible) status symbols, consumers will increasingly have to tell each other stories to achieve a status dividend from their purchases. Expect a shift from brands telling a story, to brands helping consumers tell status-yielding stories to their peers.”

So 2009 will see bigger and more pertinent stories from our leading brands than ever before. Eco will continue to grow and well run and long established CSR initiatives will now start to pay dividends. Vileda has launched a new Eco range of recycled cloths, The North Face has already given consumers a great story with its recent involvement in the Comic Relief Mount Kilimanjaro climb and is set to unveil its most compelling story yet this year. Watch this space.

Watch Chris Moyles at the peak of Mount Kilimanjaro

What status stories have you seen emerge so far this year?

By Rick Guttridge, Associate Group Director