Menu

Marketing

Trillion dollar data

The so-called ‘internet of things’ is forecast to be worth $14trn by 2020. Mindi Chahal looks at how marketers can make the most of this revolutionary technology. Imagine if everything consumers buy had an internet chip that could communicate with the manufacturer as well as with other objects in the owner’s home. The manufacturer would be able to understand exactly how people use its products and collect information beyond simple sales data.Called the ‘internet of things’, the idea is becoming a reality and brands including Nike, Diageo and LG are looking at how they can use the technology to get to know people better. Adidas, for example, has created miCoach, a ‘cell’ that fits into a sports shoe and syncs with an app to measure the user’s sports performance. Adidas director of interactive Simon Drabble says the brand is doing this because it wants its relationships with consumers to go beyond the initial sale.“It is not a single transactional relationship. It is about forming a longer-term partnership with our consumers and helping them along their journey. We go beyond the provision of sporting goods to providing that service.”Adidas was one of the first companies to use this technology, launching the miCoach range in 2006. It includes wearable electronics, coaching aids and digital platforms to improve the user’s sporting performance, showing how fast, how far and how intense their activity is, and provides detailed insight into their sport and how to improve.People can also compare themselves with other players and, in what the brand claims is a first, they can compare their skills with players in this season’s UEFA Champions League.Drabble believes that this is a major growth area for the future. “Demand for such solutions is growing globally and in many different ways. New markets are forming and technology is…
Read more...

What's driving Nissan?

The car maker is turning to kotozukuri - storytelling - to take its branding up a gear and grab more of the upmarket and green vehicle sectors. “Nissan has always been a company of ‘monozukuri’ – Japanese for the science of making things,” says Andy Palmer, executive vice-president of the Yokohama-based car manufacturer.“The company has always been good at this, but awful at ‘kotozukuri’, the art of storytelling,” he adds. “If you think about Japanese companies, their marketing is usually based on the clever Japanese [people]. They are pretty lousy overall when it comes to the art of marketing.”As the member of Nissan’s nine-person executive committee responsible for overseeing marketing globally, it is Palmer’s job to make the company better at kotozukuri, bringing the brand to life through stories. The most important change Nissan has made in its efforts to achieve this came last year, when the corporate structure was reorganised to bring marketing into closer contact with the product planning division, which Palmer also heads.“Anything that is, broadly speaking, creative, basically falls under my remit,” he says. “Marketing used to be sales and marketing, as a combined function, while hidden away there was the PR group.”Marketing and communications have now been brought together, headed by corporate vice-president Simon Sproule, who reports to Palmer on the executive committee. Sproule’s division has been given the freedom to find and tell compelling stories about Nissan.One result of this is that the company has established its own media centre in Japan, where it films and broadcasts online automotive news programmes. Nissan hired the BBC’s Tokyo bureau chief Roland Buerk to run the division, and has its own staff of journalists and photographers covering news stories in the sector.Nissan’s marketing and communications also now take much more inspiration from learning about vehicle technology trends…
Read more...

Living in digital times

The FT’s executive vice-president of global B2C marketing Jocelyn Cripps talks to Lucy Tesseras about the challenges the 125-year brand faces in the internet age and why it is taking its lead from online retail businesses rather than publishing. The Financial Times celebrates its 125th anniversary this year, but for a traditional news title with a rich heritage, it is having to face the demands of an internet age.Editor Lionel Barber told staff at the start of the year that it needs to be a “digital platform first and a newspaper second”.After a visit to Silicon Valley in the US, Barber confirmed the need to be nimble. “My visit last September confirmed the speed of change. Our competitors are harnessing technology to revolutionise the news business through aggregation, personalisation and social media. Mobile, for example, accounts for 25 per cent of all the FT’s digital traffic.It would be reckless for us to stand still.” Mobile traffic is now up to 30 per cent and content or subscription revenues for the FT on any platform look set to overtake advertising revenues.Leading that push from a marketing perspective is Jocelyn Cripps, executive vice-president of global B2C marketing, who took up the newly-created role in 2012 following the integration of the print and digital subscriptions teams. She says the FT has to operate more like an online retail business than a content publisher, particularly regarding engaging readers; her job is to focus on how data can provide a complete picture of readers.“It’s about offering a better, more complete customer experience,” she says, “because consumers don’t change as a result of the platform they are using.”The new team structure, which reflects the increase in multi-channel media consumption, encompasses audience development, acquisition, CRM, retention, operations and analytics, and follows the integration of print and digital…
Read more...

Passion for fashion goes beyond designer brands

Brands not normally associated with catwalks and celebrity models are forming partnerships with London Fashion Week and British design talent to engage with a younger target audience. British fashion has been a major global export for decades and numerous brands connected to the industry have long used sponsorship to hang off its coat-tails. But in the run up to this year’s London Fashion Week (LFW) starting next Friday (September 14), a wider spread of sponsors from a more diverse range of sectors are associating themselves with the £21bn business.These include confectionery brand Ferrero, which is using its Kinder Bueno chocolate bar to sponsor London Fashion Weekend for the first time this year (see Q&A, below).Activity includes a partnership with the consumer-facing Weekend - rather than the trade-only LFW - and on-pack promotions. Marketing manager Emma Colquhoun explains: “The fashion partnership is a longer term equity building partnership, so we’re looking to drive perceptions of Bueno being a stylish brand for this audience - a relevant brand that consumers feel is a brand for them.”It might seem unusual for a chocolate brand to be involved with a fashion show, but it will work because it is focused on “feeling good about a light indulgence” in a similar way to buying clothes might be, she claims. Ferrero wants to use its sponsorship to reach women aged between 25 and 34. “Obviously we have some baggage on Bueno being called Kinder - people perceive us as maybe a brand for kids, so for us it’s important that we very clearly position ourselves as a brand that’s relevant for women,” Colquhoun adds.“Our research shows that fashion and lifestyle are very motivating and relevant to our target audience, and we felt there was a very clear association between the idea of fashion as a light…
Read more...

Cisco's £8bn geek

How to build sales and influence people Blair Christie’s all-American optimism is getting her through the highs and lows at global networking company Cisco as she vows to make every cent count in her latest role as chief marketing officer. Blair Christie, chief marketing officer at networking giant Cisco, cheerfully navigates her way through the history of the company, dropping in tech-laden nouns as if they are part of everyday conversation.While the mere mention of a router or switch may make many marketers twitchy, one can’t imagine Christie ever having shied away from such technology geekery, which is core to Cisco’s business.After 18 months at the helm of the marketing and communications team at one of the biggest brands in the world - worth $13.3bn (£8.4bn) according to Millward Brown’s BrandZ Top 100 - Christie is comfortable talking through the challenges and opportunities that this role and the company face.And the challenges are many. Like the majority of global businesses, Cisco has been feeling the effects of the protracted economic downturn. Under the leadership of John Chambers, Cisco is in full austerity drive, with plans to save $1bn (£630m) a year. A job cut announcement in June will see 1,300 people go - although the company would not confirm if the marketing department will be affected. This announcement comes off the back of the 10,000 posts already cut from the company last year.But while Christie acknowledges that things have been tough, she maintains a positive and persuasive disposition, part of her all-American optimism.“It has certainly been an interesting 18 months,” she says with a smile over breakfast at the central London hotel where Cisco executives and customers were camped out during the Olympics, of which the company is a tier two sponsor. “Cisco is very correlated to the GDP. It’s…
Read more...

A reputation in tatters

The horsemeat scandal, criticisms of fizzy drinks and a report slamming FMCG supply chains have rocked the food industry. Trust is at an all-time low, so how can the sector regain consumers’ favour? The food industry is suffering its worst crisis since the BSE scandal in 1996. In the past few weeks, retailers, manufacturers and restaurant brands have found horsemeat in their beef products, the fizzy drinks industry has been rapped by medical groups for helping to cause obesity, and Oxfam has criticised the ethics of FMCG companies’ supply chains in its Behind the Brands report.Although the food and drink sector is generally one of the most trusted - coming third after technology brands and the automotive industry in this year’s Edelman’s Trust Barometer - it will now become an uphill struggle to retain this trust and it is marketers who will be called on to help protect a brand’s reputation. Nearly 40 per cent of shoppers are less trustful of their main supermarket in the light of the ongoing horsemeat scandal, according to Canadean Custom Solutions, which spoke to 2,000 consumers last month. Added to this, more than half are sceptical about the quality of their supermarket’s meat. However, 88 per cent are more likely to blame suppliers for the contaminated meat.The management of supply chains has been highlighted but whether marketers can have an effect on this operational side of the business is questionable.A former Tesco marketer says the department should have a clear understanding of the supply chain. “A retail marketer’s role is to get the product on the shelf and support the sale, including the packing and positioning of the product in-store, the point of sale material, the shelf-edge label and making sure the product is at the right price.“Understanding the supply chain along with the…
Read more...
Subscribe to this RSS feed