marketing trends presentation sept 2014

New Marketing CommunicationsLessons from the Fashion Sector

Bill Webb The London College of

Fashion

Niels Brock Business School Visit

September 2014

The Origins of Marketing

The “Four Ps” E. Jerome McCarthy, 1960 Supplier & Brand Centric FMCG Focus “The management process responsible for

identifying, anticipating and satisfying customer requirements profitably”

The UK Marketing Society, 1995 Power Shift from Manufacturer to Retailer

The Traditional Marketing Model

Source: Pickton & Broderick, 2001

“ The End of Marketing as we Know It” Sergio Zyman, CMO, Coca-Cola, 2000

Customers aren’t listening or responding

Marketing expenditure is wasted

Retailer brand ownership is only a stage

A new vision and new techniques are required

Definition of New Marketing

Non-traditional ways of communicating with, and influencing, our customers

Today’s “omni-channel” shoppers

Our customers are now skilful, “professional” shoppers - informed, demanding, time poor, connected,

promiscuous, environmentally aware......... Personal budgets have been squeezed and

stretched Buying decisions are more complex New technology has served to empower

consumers The purchasing process now takes across

channels

Buying Clothes Online or In-Store?

Source: GMI/Mintel

12 11

43

17 1715

11

39

18 17

22

16

36

15

11

0

5

10

15

20

25

30

35

40

45

50

I buy more clothesonline than in-store

I buy around thesame amount of

clothes online andin-store

I buy clothes online,but buy more clothes

in-store

I have browsed forclothes online buthave never bought

I have neverbrowsed for clothes

online

%

2010 2011 2012

Shops exist because they carry out Functions that Add Value

Pre-select & edit product ranges Provide value-for-money prices Break bulk Provide time & location convenience Hold stock Provide information for customers Provide product support & service Provide credit

Q: do we still need shops for all this?

Rationale for New Marketing

Fragmented markets Saturated markets – focus on “wants” Communication overload Customers have “wised up” to

traditional techniques – loss of Trust & Relationship factors

Technology developments Cost productivity pressures

“ Permission Marketing”

Seth Godin (2000)

Direct Marketing

Relationship Marketing

Permission

Marketing

Brand Usurpers & Brand Terrorists

Characteristic of New Marketing

Focussed activities Consumer is involved –

“conversations” not “communications”

Search for more credibility & trust Development of Communities Media has greater affinity with

brand values

New Marketing

Advertising

PR VM

Sales Promotion

Guerrilla Marketing /Ambush Marketing

Viral Marketing

Celebrity Marketing

Cause Related Marketing

Experiential marketing

Scarcity Marketing

Social Media

Scarcity Marketing

Fast Fashion WIGIG On/offline Outlet stores Limited Editions Pop-up everything Trunk/sample sales Luxury Customization

Guerrilla MarketingThe use of non-conventional, semi-legal

“ambient media” to increase brand awareness

Fly posting Stencilling Stickers Product placement in “cool”

venues “Freebies” – Levis brand

magnets Demonstrators Laser projections – “Gobos” Event hosting Pirate radio station ads

Gail Porter

Guerrilla Marketing - Examples

Tomy “Micro Babies”

Ben & Jerry’s

Sloggi

Plaza Shopping Centre

Pilot watches

Flash Mobs & Ambush Marketing

Hugo Boss @ British Open Golf - Turnbery

Bavaria Beer in South Africa

Temporary “Pop-Up” Shops

Levi’s

Adidas

Comme des Garcons

Diesel – 55DSL

IKEA

Pop-ups and brand spaces

Motorola (Products RED)

Pop up Store –

Chicago

2 weeks only

Experiential Marketing - Brand Flagships

“ Don’t call it a store – call it and Ad with walls” – Stuart Elliot.

New York Times

Apple

Regent Street

London

““forget the shoes, Prada's forget the shoes, Prada's new store stocks ideas”new store stocks ideas”

NY TimesNY Times

Cause Related Marketing

Tesco – C f S Monsoon/East – India Body Shop Breakthrough Breast

Cancer – M&S, River Island, Avon, etc

Levi – War Zone Giordano – anti-

suicide Top Shop/Office - MS

Co-Branding in Fashion

Cause related marketing Celebrity marketing Sponsorship Complementary

products Designers Country of Origin

Designer Co-Branding in Fashion

Stella McCartney with Adidas

H&M

Celebrity Marketing

H & M – David Beckham GAP – Angelica Huston Miss Dior – Natalie Portman Coach – Gwyneth Paltrow Nike – Michael Jordan Mango – Penelope Cruz Burberry – Emma Watson Chanel No 5 – Brad Pitt

Sponsorship

Top Shop/River Island/ASDA-George New talent – “Re-

Creation” with Dazed & Confused

Designer boutiques Graduate Fashion

Week New Generation

Awards

Benefits of Co-branding

Differentiation – “cool” – peer reference aspiration. Strong & simple

Branding relates more to emotion & values than to attributes

Positive image creation & recall Brand preference & purchase Price premium Free PR Motivate investors and employees

Issues in Co-branding

Selection of partner(s) – credibility, availability, exclusivity, popularity, risk

Timing & Control Integrity – partners “live the brand” Transparency Partnership – shared values Mutual benefits Integration of total marketing mix

Celebrities can let you down

Negative impact on Brand Reputation by association

Viral Marketing (Social Media Marketing)

The use of a brand’s customers to increase awareness and change attitudes

How fashion spreads – brand leaders early adopters late adopters laggards

Customer types – Promoters (“brand evangelists”), Passively Satisfied, Detractors (“brand vandals”) - Frederick Reichheld

WOM = Word of Mouth – accounts for 67% of new sales (McKinsey)

“The Tipping Point” Malcolm Gladwell

Customers as Brand Ambassadors

“ Reichheld’s research indicates that there is a strong correlation between a company’s growth rate and the percentage of its customers who are willing to recommend the company to a friend”

The Economist

“The only path to profitable growth may lie in a company’s ability to get its loyal customers to become, in effect, its marketing department”

Frederick Reichheld – Bain & Co

The Net Promoter Score (Reichheld)

- 5 + 5Detractors Passives

Promoters

Likely to Recommend

Extremely Unlikely Extremely Likely

NPS ( eg +2.76) = Average of Promoters & Detractors

Net Promoter Score – Boots Example

Michelle Mone – Brand Evangelist

“I love Montblanc pens. I’ve got more than 30 – I’ve got the highlighters, the fountains pens, the lot. Whenever I’m in an airport I think ‘I must go and get the new Montblanc pen’ It’s my indulgence”

Metro, 13.01.2009

Michelle Mone - Ultimo

Service Reputation

“ We take those funds that might otherwise be used to shout about our service, and put those funds instead into improving the service. If you do build a great experience, customers tell each other about that. Word of Mouth is very powerful”

Jeff Bezos, CEO Amazon.com.

Business Week, July, 2004

Nordstrom – US Top Spot 2012

“Buzzing” – Brand Ambassadors

Bzz Agent – 60,000 volunteer agents

Tremor (P&G) – 240,000 teenagers

Lee Jeans “Truefit” campaign – 1,000 buzz agents

Purchase Influencers“Mavens” (Gladwell)

Younger generation

Electronic Viral Marketing

= Social Media Marketing

Beyond E-mail marketing “Social media” is the social

interaction among people in which they create, share or exchange information and ideas in virtual communities and networks

Fastest growing use for the Internet and fastest growing marketing instrument – 67% brands on Instagram

Digital Marketing Spend 2014

(USA)

Types of Social Media

Collaborative (wikipedia) Blogs, Microblogs & Vlogs (twitter) Content Communities (YouTube) Social Networking (Facebook) Gaming (Minecraft) Virtual Social Worlds (Second Life) Channel can be Brand Controlled or Externally

Controlled

International & Local Examples

English speaking world – YouTube, Twitter, Tumblr, Instagram, Facebook, Pinterest, Google +

China - WeChat, Qzone, RenRen Japan – NicoNicoDouga Indonesia – Zorpia India, Brazil – Orkut Russia – Vkontakte France – Skyrock Italy – Badoo Germany – Gutefrage, Xing Denmark – Amino, Arto

Example – Yoox (Italy) on WeChat (China)

Emerging markets are heavy users

Engaging with Social Media is challenging, but effective

Example – Piperlime (GAP)

August 2014

Example – Dover Street Market

Comme des Garçons

Example – Burberry, Shanghai

Burberry used WeChat to launch its new flagship store in Shanghai and A/W 2014 collection

Objectives & Benefits of Social Media Marketing

Brand awareness, advocacy, engagement, reputation, community building, sales….

Management of Social Media

- becoming more professional - Gleamfutures

Objectives Planning Skills Control/”rules” Monetize Budgets Evaluation/ROI Personality Community culture

Content Forecasting Customer Insight Resonance & trust IT/”Big Data” Troubleshooting Risk analysis Marketing integration Commitment

The Flows of New Marketing

Where will it all End?

Rational Analysis of Management Fads – Remember ECR?

Daniel Staib

GDI, Zurich

Reading Sue Adkins – Who Cares Wins Mark Schaefer – Social Media Explained Frederick Reichheld – The Ultimate Question &The

Loyalty Effect Alan Mitchell – Right Side Up Jay Levinson – Guerrilla Marketing Seth Godin – Unleashing the Idea Virus & Purple Cow George Silverman – The Secret World of Word of

Mouth Marketing Malcolm Gladwell – The Tipping Point Glen Urban – The Emerging Era of Customer

Advocacy (Sloan Management Review – Winter 2004)

…….and Good Luck

Bill Webb

Senior Lecturer - LCF Scholar of Cambridge University Marketing Manager/Director - Jaeger,

Johnson & Johnson and Storehouse Director, Management Horizons Marketing Director - Fitch Retail

Design Director, Conzept International Retail Consulting Career Member of Ebeltoft Group (local

member: Retail Institute Scandinavia-Århus)

The University of the Arts London

Largest university for design & fashion in Europe Over 20,000 students from more than 130

countries Six colleges with individual specialisms London College of Fashion School of Science and

(retail) Management Member of the Association of Business Schools Member of The European Retail Academy Centres for management consulting and

industry training Extensive research into fashion and retail

sectors

Ebeltoft Group

Ebeltoft Group is a worldwide alliance of retail consultancies with members in numerous mature and emerging retail markets.

Responding to our client´s demand and market globalization, we offer pragmatic retail consulting services and conduct global insight research.

We are unique in our ability to combine global retail expertise with deep local insight and turning this into innovative and practical solutions.

North America: United States and Canada

Latin America: Brazil and Mexico

Europe: Denmark, France, Germany, Italy, Netherlands, Portugal, Romania, Spain, Turkey and United Kingdom. And Switzerland.

Asia Pacific: Australia, China, Singapore and India

Ebeltoft Group Bill Webb b.webb@fashion.arts.ac.uk webbontheweb@yahoo.com T: +44 (0)7768 453169 www.ebeltoftgroup.com Facebook & Linkedin