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X-mas Advertising: John Lewis, M&S and Debenhams Christmas Ad Campaigns Compared

November 6, 2014 1 comment

Good advertising should make you feel good inside so that it creates desire for the product or brand. Especially at this time of year, stores try to capture minds so people can buy their gifts at the advertiser’s shop. It’s all about AIDA – building an Awareness of the brand; then stimulating an Interest in it; followed by creating a Desire to Act and make a purchase.

The Daily Mash is a satirical UK news website which publishes spoof articles. It’s a UK equivalent to The Onion website in the US that has carried some world-class spoofs, believed and republished by the regimes in Iran and China with a spoof about Kim Jong Un of North Korea.

A few days ago I read an article in the Daily Mash about the Debenhams Department Store‘s new Christmas Ad campaign, describing the campaign as demonic (Satan Quits over Debenhams Christmas Advert).

Image from Debenham’s Xmas Ad, as shown in Daily Mash article

The accompanying image of a child in a red hood reminded me of Red Riding Hood. I was curious – and so watched the ad.

The ad features a group of children let loose in Debenhams after closing time – there’s the odd cleaner still around. The children seem to have full rein to go wherever they want, try on whatever they want (whether it fits or not), snatching, taking, and making a mess. I found it totally materialistic and symptomatic of a “me, me, me” attitude.

I saw the kids in the ad as spoiled brats. The only redeeming feature is that it did show the quality and range of goods available (although mostly for adults rather than children’s toys).


John Lewis – another UK Department Store has a reputation for producing really thoughtful and moving ads at Christmas. I wondered what they had produced for 2014. This was the opposite to the Debenhams ad. It showed a child, in love with a pet penguin – and how the two played together and had fun together. Except the penguin was lonely, despite his friendship with the boy. This ad captures the seasonal mood – as it’s all about sharing, friendship, love and giving – and like the 2013 ad, brings a tear to the eye.

(John Lewis’s page launching the ad also has extras to download on the theme of #MontyThePenguin. There is also a Daily Mash spoof on this – which I’m not linking too as I found it in poor taste, mentioning avian rights and trafficking!)

I’m curious to know which brings in the shoppers. My bets are on John Lewis.

(Last year’s John Lewis X-mas ad was a classic – and much praised. It is worth watching, just for how it manages to create a real appreciation of the brand. I suspect this year’s – although not as emotive – may prove to be better for sales figures as I think it finishes with a stronger call for action i.e. purchase).

I also looked at the M&S Christmas ad #FollowTheFairies. It doesn’t have quite the same magic and sparkle of either the Debenhams ad or the John Lewis one despite its theme – two fairies, delivering magic & sparkle (i.e. M&S) across town (in scenes reminiscent of Peter Pan). There was no sense of wonder – which both the Debenhams and John Lewis adverts managed to invoke. Nevertheless, I much prefer it to the Debenhams ad for the same reason that I like the John Lewis one: the emphasis is on giving and creating happiness. Isn’t that what the spirit of Christmas is supposed to be all about?

The impact of disruptive innovation – on PCs and on Retail

January 17, 2013 11 comments

Two recent items highlight the impact of disruptive innovations on industries. The first is a presentation from the Business Insider called the The Death of PC. The second is an article looking at Amazon and mentioning its March 2012 purchase of Kiva Systems.

Since 2009, the PC market has hardly grown. In the same period, Smartphone & Tablet sales boomed. Many tasks that used to be done on PCs are now done on these newer devices: email, web-searching, social media, and more. This has had a massive impact on the traditional PC market and its suppliers such as Intel and Microsoft. Whereas Apple’s and Samsung’s share prices have grown substantially, Dell & HP have been static or fallen. The introduction of both Smartphones and Tablets illustrate how disruptive these technologies are to the traditional PC industry – although as the The Death of PC presentation shows, things are actually more complicated. This is typical for a disruptive innovation – especially in the earlier stages.

Disruptive innovations do not always kill the products and industries they replace. What they do is change them radically. Smartphones haven’t killed the camera industry. They have, however transformed it so that DSLR and higher-end / special function cameras are now the main products sold. The cheap mass-market snapshot camera has gone – who needs one, when a Smartphone does everything that they could do, and much more. Disruptive innovations also mean that companies that fail to adapt quickly enough disappear. Kodak’s filing for Chapter 11 bankruptcy is an example of this. Kodak and photography were synonymous – but the company failed to anticipate how digital camera usage would change the way people process photographs.

In the case of the PC market, so far it’s only the home PC that’s dying. The PC in the workplace is doing fine – and that’s because the type of task it is used for is different. It’s hard to work on a spreadsheet, or a complex graphic or even a long report using a Tablet and almost impossible on a Smartphone. These aren’t tasks that the home computer was used for. So Tablets haven’t changed the work PC – only the home PC market. However expectations have changed – and this has led to newer devices and cloud computing which promises to be as disruptive for the traditional hard-disk based PC and so the PC as we knew it last century is gone or going. It’s not yet dead – just changed.

Amazon’s purchase of Kiva Systems in another example of a disruptive innovation. Amazon itself has shown how disruptive e-commerce is to traditional retailing. The high-street and even the out-of-town retail outlets struggle to compete with Amazon on price. However they can still compete on service: if you want something on the same day, then such outlets beat Amazon, even if the price is higher. Further, Amazon’s warehouse distribution system could be copied and many of the larger retailers now offer online options. Currently both use human labour to select and package products for delivery – and this represents a significant proportion of retail costs. The Kiva Systems purchase promises to change all this. Kiva Systems manufactures robots and the software used to control them. The robots are designed for use in warehouses for accessing goods. They remove the need for a human being to go to the relevant shelf and remove a product for sending to a customer – instead a machine does this. Eventually such systems are likely to completely automate the distribution process – meaning that Amazon’s labour costs will fall dramatically.

Any retailer that still depends on human labour in their warehouses or retailing is likely to find it even harder competing with Amazon’s prices. Such retailers should start thinking now on how they could compete. Options include looking at ways of improving service or focusing on narrow niches requiring in-person expertise. Waiting and hoping that some shining knight on a white charger will come and rescue them is not an option. There will be no shining knight because, however much retailers may wish it was, true life is not a fairy story.

[After writing this post, Michel Bernaiche, Program Development Director of AurowaWDC and current Chairman of the SCIP board, pointed out this news story to me – highlighting how robots are impacting not just retailing but many other business areas – from hospitals & surgery to legal research. CBS News Video on Impact of Robotics in Industry]

Why six-sigma, just-in-time and lean manufacturing are dangerous!

December 10, 2012 17 comments

Six sigma is a great idea: make sure that your product or service is as close to perfect as possible with almost zero (3.4 in a million) faults. So is just-in-time (JIT) and lean manufacturing. All involve tight control on business processes and require businesses to focus on efficiency. You can’t have a JIT manufacturing process without being highly efficient in controlling all aspects of your supply chain.

The problem is that when circumstances change it can be difficult to adapt the processes quickly enough. When the change is disruptive then it’s likely to lead to business failure. Casey Haksins and Peter Sims describe this in a Harvard Business Review blog post: The Most Efficient Die Early.

The authors correctly point out that business must also expect the unexpected and plan to absorb it and cope with it. The problem is that pursuing greater and greater efficiency goes against this need for flexibility to change. Instead there needs to be a balance. Look for efficiency but not at the cost of losing flexibility. Success requires both.

Microsoft’s Surface and Disruptive Innovation!

October 27, 2012 4 comments

There is an old video with Bill Gates talking about Microsoft and Windows version 3, looking at multimedia, pen computing and an early tablet computer. Circa 1991! The technology shown in the video was forward thinking. Today we take it for granted. This was a time pre-web when only businesses had computers. Few people had computers at home and few knew about email or the Internet.

The idea of tablet computers is not new. Both Microsoft and Apple had looked at the idea years ago, but at the time the technology was not sufficiently fast, sophisticated or useful enough to grasp the majority of consumers’ interests. Techies loved such devices. (At about this time, ago, I had a boss who had a Psion Organiser.  He loved it. Everybody else wondered what he saw in it).

That’s the issue with disruptive innovations.  It’s not just the disruption that counts. It’s the timing. The Microsoft tablet was like the Psion organiser, and even the more tablet like Apple Newton device.

Apple Newton

The idea was a great idea but the timing was too early, and the product was not able to capture the consumer mind.

It’s not the first company that comes out with a disruptive innovation. It’s the first company that captures the consumer’s share of mind – their imagination.

As another technological example, the Apple iPod was not the first mp3 player. There were a few before  (e.g. the MDiamond Rio and the MPMan player) – but they didn’t have the panache of the iPod – and so were quickly overtaken when the iPod entered the scene.

At the same time, entering too late – or basing your product on competitors is also not the way – as Microsoft’s Zune product showed.

The jury is still out on Microsoft’s iPad type product – the Surface. This, at least, is not a copy but something different. To a large degree, it’s fate will depend on Windows 8 (RT). I think the Surface has a place – and I can see it destroying the netbook and low-value laptop market, and so it will be disruptive. I don’t believe that it will damage the iPad or most Android tablets (and also not the Kindle type e-book reader). People buy these for the apps – and there are too few Windows based apps. I don’t see this changing with Windows 8 either. (Why should an apps developer spend time and money building a Windows based app when the vast majority of tablet computers & smart phones are Android or Apple iOS?)

So who will buy the Surface. Techies – obviously! However businesses that currently equip sales people with netbooks or low-price laptops will also go for it as it is lighter, cheaper and trendier while offering the same or greater utility than the netbooks and laptops they had previously bought.

Of course time will tell. That’s what makes something truely disruptive – it’s often only after the new technology has taken over that you can say “but it’s obvious that it would succeed“. If this wasn’t the case – we’d all be flying across the Atlantic on another seemingly disruptive technology that failed to spread even though it provided utility, speed and worked. The supersonic Concorde aircraft never really took off, even though British Airways claimed it was profitable. Only British Airways and Air France flew Concordes. No other airline purchased the aircraft and the Concorde crash in Paris in 2000 effectively sealed its fate.

Great service leads to growth & profits – for Bettys, it’s a piece of cake!

July 9, 2012 1 comment

I recently visited a friend in Leeds – a major city in the North of England. On the Sunday, a group of us travelled the short distance from Leeds to Harrogate, a few miles away. Harrogate is a spa town – you can walk past the “Royal Pump Room” museum  and still smell the sulphur from the spring below. This is just one of several mineral wells containing iron, sulphur and other chemicals that made the town an attraction in the Victorian and earlier Georgian eras.

As well as the spa, Harrogate also features the first Bettys Tea room.

Bettys Tea Room

Bettys was founded in 1919 and has since grown to include a number of other tea rooms across Yorkshire. The family run company now also includes  Taylors of Harrogate, the tea and coffee merchants with brands including the best-selling Yorkshire Tea.

Our visit to Harrogate included a visit to Bettys for morning tea and cakes. We were amazed at the level of service provided.

One friend asked about the orange juice on the menu. “Was it freshly squeezed?” Instead of just acknowledging that it was, we were told that it had been – but not that day, but on the Friday, as it was squeezed off-site and not at weekends. We asked about the ingredients of one of the cream cakes – was it made with butter or margarine and was it suitable for vegetarians? The waitress wasn’t sure – so said she would check in the ingredient listings. It turned out that it was made using butter and was fully vegetarian.  It tasted superb.

I watched our waitress (on the bill it said her name was Jade) – and others. They smiled, they conversed, were friendly, helpful, and their body language showed a real care and attention to each customer.  They knew their products – and if they weren’t sure they didn’t lie or guess, but went to check. The service was impeccable.

It turns out that the superb service is no accident. I asked whether there was any training provided – and was told that each waitress had one-to-one training before starting, and they were expected to learn the menu and were tested. They had an induction phase where they were watched and it took some time before they could graduate to become a full waitress. This training showed – it wasn’t just in product knowledge but also in the whole interaction with the customer, that made our visit such a pleasure. Bettys even has a dedicated website devoted to working for the company at www.workingforus.co.uk.

The results of this focus on excellence show in Bettys financial results. The company consistently makes a profit – and turnover and net worth has grown impressively over the last 5 years. This is despite one of the worst downturns for decades – showing that Bettys has come up with a strategy that seems recession proof. Although profits have not shown the same growth, they’ve remained stable – perhaps reflecting the value offered by the company, compared to competitors. (We paid more for our sub-standard tea on the self-service motorway café journeying up to Leeds).

Bettys shows how important service is for a business, and how appropriate training can lead to top-quality results, and evident staff satisfaction. (In 2007 Bettys was listed in “the 100 best companies to work for” compiled by The Sunday Times). This focus on quality, in the product as well as the product knowledge, attention to detail and customer focus can translate to the bottom-line result – and lead to turnover growth and profits.
Queue outside Bettys, Harrogate
The queues outside, waiting to get into the Tea room is evidence that Bettys is doing something right. The results – financial and reputational are too. It may look like a piece of cake to achieve this – but the numbers of companies that fail to provide adequate service shows that it isn’t. Maybe they should make a visit to Harrogate part of their own staff training!

Business Plans & the Year of the Dragon

January 23, 2012 1 comment

Water Dragon tiles

2012 is the Chinese year of the water dragon. One guide on what to expect for this year states that water dragons are equipped to step back and re-evaluate situations. They make smart decisions, but only if they do adequate research. Typically dragons are innovative, enterprising and flexible.

These skills are all essential for business planning and the start of the year is always a good time to consider plans for the rest of the year.

Business planning is an often-overlooked part of running a business – especially with small businesses. The cri-de-coeur “We are too busy to waste time on planning” may sound sensible, especially when recession beckons and every sale is required. However this is also a plan – in the sense that “failure to plan is planning to fail”.

My thoughts on business planning were aroused following a meeting with Jane Khedair of Business Plan Services. BPS has a network of advisors throughout the UK and English-Speaking world, who are trained at helping small businesses produce sensible business plans that should help guide them through the predicted rocky times ahead.

Business planning is a bit like going on a journey. You have a starting point, and a desired end-point with a range of routes to take you from the start to the finish. The key first stage in a business plan, of course, is to know exactly where you currently are – and that is where AWARE fits in. Our aim is to help clients understand their markets, competitors and general industry – looking at customers, suppliers, partners, competitors and the overall business environment.

The next stage is knowing where you want to end up – your objectives. That gives a target on which to work – developing approaches that should allow these objectives to be fulfilled. These become your strategies.

Setting objectives and strategies are a bit like route planning. There are multiple ways of travelling between London and Shanghai, China – and selecting  one will depend on the circumstances. Is speed essential, or is cost the key factor? In this example, the objective of travelling to China from a starting point at London should also include expected arrival time, for example.

You may also want to visualise the journey and even think about what you’ll do once you’ve arrived. Business objectives should also be quantifiable, with a target and deadline for when this should be achieved. In addition, it’s always a good idea to think about what the next steps should be once the target has been reached.

The travel options become the strategies. If the aim is to get to China within a day then going by plane may be the only strategy. Conversely if the aim is to see multiple locations on the way, then travelling overland would probably be a better strategy.

Photo by Colleen Curnutte, taken in Shanghai, China.

Welcome to Shanghai

The problem however is knowing when you’ve arrived, and your progress – so you also need to monitor these. In the London-Shanghai example, this may be as simple as noticing miles travelled, and spotting a “Welcome to Shanghai, China” sign on arrival. Effective business plans also set in place signposts so that progress can be monitored. It’s also important to have a contingency in place for if things go wrong – an accident on route, that would cause major delays.

Planning the right route for a journey is essential if you are to get to your destination on time and at a reasonable cost. Business planning should do the same. The difference is that there are no dragons chasing you on a journey, but there are in business – and failing to think about how to beat them may mean that they will win out against you.

Wishing you a great year of the water dragon, 2012. 萬事如意

Leave your comfort zone!

October 18, 2010 Leave a comment

The Biblical Abraham was one of the world’s most successful individuals. (It doesn’t actually matter whether or not Abraham really existed – from a Biblical critical perspective. He is revered by at least half the world’s population who belong to one of the three Abrahamic faiths – Judaism, Christianity and Islam. As such his influence has been immense). In the Bible, the story of Abraham starts in Genesis – chapter 12. God commands him to leave his country, his extended family and his father’s house and to move to a land that God would show him. In return, God promises that Abram (Abraham) would become a great nation, and that he will be blessed.

Of course the Biblical commentators have a field day looking at the wording and what was being said. However I think that in fact, the idea is quite simple. Abraham was being told to take a risk and to do something new. In return, he was promised success in his venture. This is a lesson that businesses and individuals can learn from – and perhaps governments too.

  • Where is the safest place for an individual? Generally the parental home.
  • Where can one expect help from when things go wrong? From close family and friends.
  • Where are you most likely to know your way around and know the “system” – and least likely to get lost physically, or metaphorically in bureaucracy? In your home town and country.

Abraham is commanded to leave each of these – in reverse order, with the easiest first, and the place you feel most safe last. In terms of business the same lessons apply.

Igor Ansoff is famous for the Ansoff matrix.

Existing
Product
New/Modified
Product
Existing
Market
Penetration Product
Development
New/Modified
Market
Market
Development
Diversification

When you have lots of opportunities in your home market and your product is doing well the objective should be to increase sales with this product to this market. However when things start to change – perhaps most people in your current market already have your product – then you need to move outside your immediate comfort zone and look to a new product or a modification of your existing products. You need to be willing to take a risk. Failing to change is likely to lead to eventual corporate failure, as the market becomes totally saturated, and profit levels reduce as the only way to compete becomes price. Product enhancement gives you the choice to differentiate your product and maintain profitability. Leave you father’s house and try something new.

This also applies in many other circumstances. The recent phenomenon known as “boomerang kids” is not just a problem for parents having to cope financially with adult children returning to the nest, but also the children themselves. Although living at home can be comfortable and secure, it becomes difficult to move out when all your needs are being met and to become truly independent. It means that such children are less likely to be successful – until or unless they do leave home.

The next stage is when even product variations don’t work – as your current market sector is saturated. You need to look for new markets. In Biblical terms – Leave you family and friends and try something new. In business this means looking for new markets. These can be different industry sectors or geographies. Again, being scared of taking the risk will lead to failure – as your current customer base ceases to purchase your products in sufficient quantity for you to make profits.

Globally, many people are now in this stage of the cycle. Their opportunities in their home countries are poor – for various reasons, and emigration to another market promises a better chance in life. Historically this has often been the case – with emigrants being highly successful and also enriching the cultures and life in their new countries. In contrast, their compatriots who stayed at home often continue a cycle of poverty or lack of success. I believe that many governments see emigration as a threat – and I think that they are correct, as often emigrants are the very people who should be encouraged to stay as they are the innovators and the risk-takers within society. If emigration is a problem in a society it means that the society itself has problems, and perhaps the government should look to itself as to why people want to move. Conversely the antipathy to immigrants in the destination countries is also misplaced – as many immigrants contribute massively to their new homelands, especially when welcomed and encouraged to integrate into the new society.

The final stage is the most difficult and also may appear the riskiest. However if the markets (old and new) for your current product lines are stagnant then the only hope is to move into completely new areas – with new / enhanced product lines targeting new customers and markets. You need to diversify away from your home products, your home markets and move to a new area -i.e Leave the location you are now in and try something new. In fact this promises the best chance of all for success – as it allows you to capitalise on both current product lines and markets and also the new ones. Companies that manage to diversify into new markets are likely to grow at a much faster rate than their “stay-at-home” competitors. Of course how to manage a successful diversification programme is a different question – requiring research, planning and strong, thoughtful and innovative management. The willingness to try and to leave comfort zones should help prepare management for this stage – so that when the time comes, they are willing to take risks necessary to protect their organisations.

Only by being willing to change, and move away from your comfort zones can success be guaranteed. Do it right, and like Abraham, you can succeed and make a name for yourself.

© Arthur Weiss / AWARE, 2005-2010

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