Category Archives: Marketing

Product Placement

Product Placement is in the news for two reasons this week. Firstly, it is the Oscars and designers, jewellers etc. are competing to persuade Hollywood actresses to wear their products on the red carpet. Plus many films subtly (or not) promote cars, watches etc. in return for payments from the manufacturers. Secondly, from 28 Feb 2011, Product Placement will be allowed on UK TV programmes  due to a recent government decision actioned by Ofcom.

Product placement will be allowed in films (including dramas and documentaries), TV series (including soaps), entertainment shows and sports programmes. But it will be prohibited in all children’s and news programmes and in current affairs, consumer advice and religious programmes made for UK audiences [1].

Read more of the Ofcom link here. Watch out for the big P at the start and end of programmes!

Apple – Smartphone Market Share

A recent survey by uSwitch.com has found that the Apple i-Phone is only the sixth most popular smartphone in the UK market as it loses share to budget rivals, primarily HTC of Taiwan.  The HTC phones use Google’s Android operating system for applications. Apple’s  response to its challengers? A new i-Phone will be launched in the Summer. Possibly even an i-Phone Nano to compete at a budget price. Plus of course, the i-Pad 2 will be launched next week.

  1. HTC Desire
  2. HTC Desire HD
  3. HTC Wildfire
  4. BlackBerry Curve 8520
  5. Samsung Galaxy S
  6. Apple iPhone 4 (16GB)
  7. Motorola DEFY
  8. BlackBerry Torch 9800
  9. Nokia C3
  10. Nokia N8

Growth – B.A. to I.A.G.

From today, British Airways (B.A. plc) have merged with Iberia of Spain to become the International Airlines Group (I.A.G. plc)  The B.A. story is like a snapshot of recent business history. Originally, British Airways was owned by the UK Government. In 1987, it was privatised i.e. it was floated on the London Stock Exchange and became B.A. plc. There have been many changes in the external environment (P.E.S.T.E.C.) since then which affected B.A. Several lessons’ worth! The company also instigated change e.g. marketing (colourful tailfins, catchy slogans “The World’s Favourite Airline” ), operations (stopping Concorde, using Heathrow to capacity) and human resources (reducing the workforce, changing working conditions). Its strong position in the market was challenged by e.g. Virgin and low cost airlines. Organic growth was difficult. So the strategic decision was taken to merge. The new company I.A.G. plc hope to achieve cost savings, economies of scale plus benefit from sharing routes and management knowledge, whilst retaining the separate brands. Watch out for some nostalgic articles about B.A. in the media this weekend. Starting with this BBC radio 4 broadcast.

Return of the Mac

Mackintosh raincoats must be trendy again as the company has just opened its first fashion store in London. Another Scottish invention to be proud of! Rainy Scotland generating ideas! Its a multinational company (Japanese owned) with a factory in Cumbernauld where the emphasis is on quality workmanship making a quality product to sell at a premium price. Check the BBC news story here. Their main competitors Burberry, have a new marketing campaign with raincoats modelled by Emma Watson (Harry Potter actress) and endorsed by Gwyneth Paltrow and Victoria Beckham. I might be able to afford the Next or New Look version _____.

The Real X Factor Winner?

Daily Mail 8/12/10  By PAUL REVOIR

The most lucrative TV show of all time: X Factor final could rake in record £25million in one night

This weekend’s X Factor final will be the most lucrative British TV show of all time, with ITV expecting to rake in £25million in advertising revenue.

The show could earn an astonishing £10,000 per second as 30-second commercial break slots sell for as much as £300,000.

Analysts predict the X Factor final will also be the most watched programme of the year with more than 20million viewers predicted to watch the Sunday night results.

X Factor fans will have to write off the whole weekend, with two-hour shows on both Saturday and Sunday.

As well as advertising cash, the money will also roll in from those phoning in to vote for their favourite act.

Over the course of the whole series, it is thought voting has netted around £6million. The closeness of this year’s contest, with Matt Cardle narrow favourite ahead of boyband One Direction and soul singer Rebecca Ferguson, is also set to boost revenues from phone votes.

American stars Cher and Christina Aguilera are expected to guest star on the shows

The X Factor’s money-spinning ability has soared and it is expected to smash through the £100million advertising revenue mark for the first time this year.

Advertisers thought to have been in talks about taking up the slots in the final include Microsoft, BSkyB, Pizza Hut and Hallmark.

The X Factor final is now regarded as the British version of the U.S. Superbowl in that it is the TV event of the year for advertisers.

Marketing: Promotion Chaos?

I told you I liked a bargain! Tesco offered to redeem their clubcard vouchers for double their face value on toys, clothes, christmas items and some electrical goods if presented by Sunday 5 December. I was very pleased with the toys I bought for you know who. However, according to a Daily Mail article of 7/12/10* it seems some customers were disappointed because of a last minute rush which caused store queues and the website to crash. So Customer Service have been inundated. A massive organisation like Tesco will get over this blip on this occasion. However, there are other examples of the consequences of a very attractive promotion causing near bankruptcy to a firm. The most famous was the Hoover free flights promotion way back in 1992 as per this BBC article. If you can think of any examples of promotions backfiring due to higher than expected demand, please share via the comments and/or in class.

*Daily Mail  7/12/10 By SEAN POULTER

Tesco customers swamp store’s call centres as Clubcard double-your-points Christmas promotion turns ‘into chaos’

Huge queues of frustrated shoppers at shops

Website could not cope with demand

Complaining customers causes phone line meltdown

Angry Tesco customers have swamped the store’s website and call centres with complaints over the way a Christmas loyalty card promotion was handled.

The Big Christmas Exchange deal offered to double the value of points and vouchers held on the Clubcards used by millions of customers.

Customers had until Sunday to claim the double-value vouchers offering big savings on products such as toys, clothes, champagne and the new Samsung Galaxy tablet computer.

Initially, thousands of people faced long queues in stores in order to convert their Clubcard points to vouchers.

Many gave up waiting and went to the store’s website to do the same, only to find it could not cope with the number of people trying to log on.

Last night, upset customers complained to the store’s call centres with the result that many people found it impossible to get through.

Tesco appears to have been caught out by the level of interest in the deal.

The promotion allowed every £5 in Clubcard vouchers to be exchanged for a £10 rewards token to spend on toys, clothing, baby and toddler products, glasses, selected electricals, and beauty products.

Every £10 in vouchers could be swapped for a £20 rewards token to spend on artificial Christmas trees and Christmas lights, Finest wine and champagne, beds, DIY, computers and phones.

Today consumer internet forums were inundated with complaints from Tesco customers who said they had been let down.

One told the moneysavingexpert.com forum: ‘System is so slow – keeps crashing.

‘Decided to purchase a magazine subscription out of my tokens. Every time I add a token it takes an age then says: “We were unable to fulfil your request”.’

Another complained: ‘Tried to exchange Tesco vouchers yesterday [Saturday] for Rewards Tokens. Awful, sooooo slow that I gave up in the early hours.

‘Set aside items to try again today but the site has crashed. Sent them a disappointed email and asked if the time limit was being extended to compensate. There will be a lot of other people in the same position.’

Tesco said: ‘We experienced a huge last-minute rush over the weekend.

‘This meant that some customers were not able to exchange their vouchers or had problems with the process, and missed the deadline of 5th December.

‘We are doing everything we can at our customer service centres to help those customers affected.’

Marketing: TV Advertising

We have looked at the Thinkbox website in class. http://www.thinkbox.tv/

It is the marketing body for commercial  TV in the UK. Shareholders include ITV, Channel 4, Five and Sky Media. Their aim is “to help advertisers to get the best out of today’s TV.”  Without advertising these channels wouldn’t exist.

You could spend hours on this website. I would suggest looking at the breaking ads, TV ads gallery and one or two case studies (e.g. Audi, Hovis, Tobacco Control) for now.

“Ad of the Year” is on ITV on Thursday 30 December 9.00 pm to list the nation’s top 20 ads of 2010. What was your favourite?

http://www.itv.com/presscentre/adoftheyear/week52/default.html

Marketing E-Commerce

Its nearly Christmas and we are snowbound so there is bound to be an increase in e-commerce. Well, by me anyway! M&S, Amazon, John Lewis, Argos, Play.com etc etc. I even bought a Scotland top for half price today from a Kirkcaldy company I had never used before. Bargain! I hope.

What attracts me? Easy to navigate and secure websites. Special offers.  Good customer service e.g. parcel tracking.

What concerns me? Making returns. Being out when the delivery is attempted.

Think of your own e-purchases (e.g. itunes http://www.apple.com/uk/itunes/). What do you like/dislike?

http://www.marksandspencer.com

http://www.johnlewis.com/

Advertising Standards Authority

We are bombarded with adverts on TV, radio, webpages, billboards and in newspapers and magazines etc. What if the claims about the product or service offered are inaccurate? The Advertising Standards Authority is the government body which oversees advertising. Check out the recent adjudications about Argos “penguins” advert and The Dogs Trust “Sponsor a dog for a £1/week” advert.

Here is the website link.