Can marketing be too efficient? It seems like a silly question, I know, but hold your judgement for a couple of minutes and read on. A review of a new book titled “The Efficiency Paradox: What Big Data Can’t Do” written by Edward Tenner raised a couple of important issues that apply to marketing as well as other disciplines.

As the article notes, Tenner is not dismissing the value of big data (just using the phrase will likely help sell more of his book) but proposes that big data cannot solve for everything. For instance, he praises the value of platform efficiency, where the internet brings buyers and sellers together with a minimum cost and maximum speed - think Uber, Amazon and eBay - but warns that analyzing the resultant sales data will focus too much on existing patterns, not looking for the next big thing.

In a similar vein he cites the movie industry’s use of box office data which has resulted in a string of remakes and sequels. Yes, Disney can make a lot of money out of the Star Wars franchise or Marvel’s superheroes, but if the same principles had been applied we would not have enjoyed Little Miss Sunshine, Slumdog Millionaire or Paranormal Activity (reputed to be the most profitable movie ever made, but which, of course, then spawned a bunch of lesser sequels).

Tenner captures the basic proposition of his book as follows,

“Trying to be ultimately efficient at all times will succeed in the short run. But in the long run, you would be damaging your efficiency.”

This reminds me of a previous post I made about short versus long-term marketing. My conclusion was that marketers should optimize marketing spend whether it is designed to prime demand or activate sales but what I did not say is that this strategy will only get you so far. At some point all the competition will push back with their own optimization and the category will end up stuck a never-ending battle for incremental sales. The only way to break the deadlock is to come up with something new that consumers value more than the existing brands.

Before I close, I do also note Tenner’s defense of the value of tacit knowledge. He says that tacit knowledge is,

“The idea is that no matter how much information you feed into an intelligent system, there are many, many things that are tacit, meaning that they are not explicitly stated anywhere.”

For the marketer this means that over-reliance on big data is likely to lead to actions that are generally right but specifically wrong because individual people’s behavior is the product of far more than that which is reflected in their digital exhaust.

But what do you think? Can marketing be too efficient? Please share your thoughts. 

Source

In this post, Dale Beaton, Global Head of Brand Guidance, Insights Division at Kantar, considers why marketers need to know what they are trying to achieve and measure their progress toward that goal if they are to maximize the return on their marketing investment.

I remember Paul Polman, CEO of Unilever, stating that for his business strategy might account for 5 to 10 percent of the work but execution makes up the other 90 percent. He stated,

“I’ve seldom met a consumer who buys our wonderful Knorr products or Lipton or Omo or Skippy because they like our strategy.”

Of course, this is true. You can have the best strategy in the world, the best vision of what could be, and still fail to achieve anything without good execution. But then again, I have seen clients repeatedly try to market a brand and fail because the brand or communication strategy was fundamentally flawed. Good strategy and execution must go hand in hand if a brand is to grow.

Good strategy comes from knowing what needs to change in order to encourage people to buy your brand. Your brand may already have untapped growth potential and all you need to do is make it more salient in relation to the right needs and occasions, but it might also be that you need to create something new in order to change the way people respond to your brand. What will have the most influence on attitudes and behaviors? It might be functional innovation but a compelling new creative idea might be quicker to implement and still boost growth.

Once your strategy is agreed, then it becomes a matter of planning and execution. A fundamental part of good execution is knowing how people respond to your brand and its marketing initiatives quickly. Even the most optimistic marketers want quick reassurance that their campaign is a winner. And, unfortunately, even the best laid plans can go astray.

Jeff Bezos, Founder and CEO of Amazon, master strategist, recognizes that things can fail to go according to plan and says,

“If you’re good at course correcting, being wrong may be less costly than you think, whereas being slow is going to be expensive for sure.”

Like any good entrepreneur, marketers need to behave as if they are in perpetual beta, which getting fast feedback so they can quickly identify opportunities to course correct. This is why Kantar Millward Brown models search and social data and combines it with timely survey data to quickly identify if a campaign is on track for success and, if not, what can be done to get things back on track.

This need to use consumer feedback to optimize and act in near real time is clear.  But likewise so is using insight to ensure your plans are based on a solid strategic foundation. My worry is as marketing increasingly focuses on the “need for speed” we are doing so at the cost of looking for the right, new strategic opportunities.   Even if the 90 percent execution/10 percent strategy rule is right, we all know in marketing if you aren’t operating at the full 100 percent you wont succeed! But what do you think? Please share your thoughts.

Authored by: Dale Beaton, Insights Division at Kantar Global Head of Brand Guidance

Ramadan is set to provide a boost for UAE retailers, with two in five (40%) consumers believing that Ramadan has the best offers and is the best period for them to make all their purchases, new YouGov research reveals.

The data shows that three quarters (76%) of people in the Emirate are “Ramadan shoppers” – those who make either planned or impulsive purchases during the holy month. This is a higher proportion that the average for consumers in other Gulf Cooperation Council member states. Approaching three in five (58%) state that they already have certain purchases in mind that they want to make this Ramadan.

YouGov’s research finds that while consumers are on the look-out for promotions across a broad range of categories, many are focusing in on offers in certain specific areas. Over half are looking for deals in groceries and fresh produce (54%) and clothes (51%), while well over a third are keen to find mobile phone (39%) and fashion accessory (36%) bargains.

The study suggests that brands only really matter when it comes to big ticket Ramadan purchases. Around half pick look for specific brand offers for cars (54%), mobile devices (54%), computers and laptops (50%), cameras (49%), while over four in ten seek out offers from big names in the household electronic (45%), beauty product (44%), and household appliance (41%) spaces.

Despite the growth in e-tailing over recent years, the research shows that few (9%) plan to only shop online during Ramadan. Instead, the majority plan to spend at least some of their shopping time either exclusively at the mall/in store (39%) or a combination of in-store and online (38%). Around one in seven (14%) will shop wherever has the best promotions.

Yet despite this preference for physical stores, consumers may divert from their normal shopping behaviour during Ramadan. Over four in ten (44%) will go to a different mall than usual if it either has good offers across its stores or if it has their preferred brands on sale. Fewer people (39%) state that they will go only to their preferred malls irrespective of the offers/promotions available.

The research shows that although a lot of shopping is done in-store, many customers get to know of offers through electronic channels. Around four in ten find out about promotions via social media ads (42%) and internet ads (39%), while three in ten (30%) hear through promotional emails/SMS from companies and brands. There is still a space for more traditional methods, however, with in-store adverts (38%), word-of-mouth (33%), and out-of-home (33%) influencing the choices of Ramadan shoppers.

Ramadan represents an enormous opportunity – both for retailers and customers. While it is fair to say that, on the whole, consumers want bargains, the key for shops – be they online or actual stores – is important to know what type of deals they are looking for and on what products. Our data shows that when it comes to Ramadan many people want offers and promotions on things like mobiles, clothes, and groceries. Shoppers in the Holy month also favour going to malls instead of going online. By understanding the mindset of the Ramadan shopper, retailers and advertisers can reach them more effectively.

What is luxury? In a world where everything from toilet paper to cat food can be labeled as such, the term is becoming meaningless

To redefine luxury for a modern era, Selfridges presented The Flipside, a multisensory installation set inside the Old Selfridges Hotel in London. Part of the store’s year-long Radical Luxury program, The Flipside invited artists, designers and brands to contribute their concepts and interpretations of luxury for the future.

Guests were welcomed to the event by hosts clad in utilitarian jumpsuits, before being ushered down a tunnel that led to a dark hollowed-out space. Here, installations marooned on their own little islands seemed to float above a high-gloss floor.

Fashion designer Thom Browne’s Dreamscape explored the creative imagination in a unique rendering of an exclusive front-row runway experience. Fantasy silhouettes inspired by mermaids and unicorns appeared and disappeared in a revolving glass case, reminiscent of an old-fashioned musical box.

At cult cocktail bartender Mr Lyan’s Libationary, hyperpersonalization was the ultimate luxury. Otherwise known as Ryan Chetiyawardana, My Lyan is the creative talent behind the Dandelyan bar at the Mondrian at Sea Containers hotel and at the Cub cocktail restaurant, both located in London. Libationary imagined a future where the perfect cocktail is tailored to your mood, passions and personality. Visitors chose from a series of inspirations—objects, words, sounds and scents—which collectively determined a bespoke drink sample that was delicately served by a mixologist.

Nature was the inspiration for luxury Spanish house Loewe, in a concept entitled The Future is Green. Discarded household goods were piled high inside tall transparent cases, with old transistor radios and discarded portable TVs jostling for space alongside irons, kettles and rotary phones. Other cases were filled with the lush greenery and bark of a forest, with reflections multiplied infinitely by mirrored surfaces. Loewe looked hopefully to a future where craft works hand in hand with nature.

Perfumer Byredo took a bleaker view, creating a dystopian future where clean, fresh water is a scarce and precious resource. Row upon row of plastic water containers were labeled with their country of origin and an ominous date, indicating when water there will eventually run out. For founder and creative director Ben Gorham, luxury “is closely linked to that of scarcity.”

The show concluded with a giant sundial created by Selfridges, which invited visitors to ponder that most modern of luxuries: time itself.

The lineup of contributions was completed by Google Pixel 2’s luxury portrait studio; Gareth Pugh’s fourth-wall-breaking video meditation on the themes of freedom and escape; and a modern perspective on travel from Louis Vuitton.

The Flipside’s thought-provoking journey pointed to a future where brands will need to deliver deeper meaning and experiencesto keep pace with luxury consumers.

Source:JWT Intelligence

FENDI is pleased to announce the appointment of Giuseppe Oliveri as WW Managing Director Retail & Wholesale, effective July 1st, 2018.

Based in Rome, he will directly report to Serge Brunschwig – Chairman & CEO.

After obtaining a Master's degree in Economics at Libera Università Internazionale degli Studi Sociali in Rome, Giuseppe completed an MBA at University of South Florida.  After 12 years in the Banking sector working for Banca di Roma in Italy, Brussels, Paris and Hong Kong, in 2001 he moved into Retail gaining a vast experience in Benetton and Stefanel in Hong Kong to then join Versace as Managing Director Asia Pacific. In 2015 he joined Christian Dior Couture as Managing Director China.

"I am very pleased to be working once again with Giuseppe. Through his wide international experience, especially in Asia Pacific and China, he will play a key role in the further acceleration of the brand and in writing this new chapter of the FENDI history. I would also like to thank Charles for his work at Fendi in these years and wish him a great success in his new position," states Serge Brunschwig.

Giuseppe replaces Charles Delapalme, who will take on the position of Managing Director in charge of Commercial Activities at Christian Dior Couture, effective June 15th, 2018.

Marcel to Accelerate the Transformation of Publicis Groupe from a Holding Company to an 80,000-Person Enterprise Platform

Publicis Groupe today unveiled Marcel - named after Publicis Groupe founder Marcel Bleustein-Blanchet - AI-powered innovation that will accelerate transforming the organization from a holding company to a platform, creating the first truly borderless, frictionless enterprise workforce, comprised of 80,000 employees worldwide, and usher in a new era of creativity and innovation.

Arthur Sadoun, Chairman & CEO, Publicis Groupe, said:

“In June last year, Publicis Groupe announced the creation of Marcel, to connect our 80,000 employees and completely reinvent the way that we work, for ourselves and our clients.

Since then, our industry has gone through unprecedented challenges, demonstrating that incremental change is not a solution. The need for reinvention is stronger than ever. At Publicis Groupe, we haven’t waited to act. We have broken the divide between data, creativity and technology. We have broken our silos through the Power of One. Today, we are breaking the barriers between talent and opportunity with Marcel.

Marcel is a journey to shift Publicis Groupe from a holding company to a platform and give creative minds the freedom to progress and thrive in this ever-changing industry.

Marcel is the proof of our commitment to our people. At Publicis, we will put them first in our transformation, and give them the opportunity to learn, share and create more than anywhere else. Marcel is the proof of our commitment to our clients. They will be able to leverage our incredible diversity of talent to bring to life the ideas they need to grow their business.

The high-profile bankruptcy of Toys R Us is the most recent in a long line of brands that failed to adapt to changing times. From a consumer perspective, habit and existing positive attitudes may keep the incumbent brand staggering on for a time but eventually people recognize they are missing out and go elsewhere.

It's interesting that from a consumer perspective the same set of brand associations that identifies a dying brand also identifies a disruptive brand. The chart below shows the brand equity profile of disruptive and dead or dying brands as measured by BrandZ™. The disruptive brands include Tesla, Uber, Dollar Shave Club, Airbnb, Free, Netflix and Facebook. Among the dead and dying brands shown are Borders Bookstore, Blockbuster, Pontiac, Circuit City, Nokia and MySpace. Relative to their existing customer base, disruptive brands are far more likely to be seen as different from the competition – dead and dying brands less so.

The same is true of everyday, non-disruptor brands, but to a lesser degree. An examination of 2052 brands measured in BrandZ between 2014 and 2017 found that 6% grew significantly and 5% declined. On average, the brands that grew tend to be perceived as different, the brands that declined are weaker than expected. Note that the brands which decline tend to be more salient than expected but, unfortunately, being top of mind with the consumer in a buying situation doesn't guarantee being chosen if better differentiated or cheaper alternatives are available. People do sometimes deliberate on their purchase decisions, particularly for more expensive or riskier choices. This is when a different and meaningful offer wins the day.

The origins differentiation might differ between the truly disruptive brands and the everyday. The disruptors rely on some form of functional advantage to make their product or service simpler, more convenient or cheaper which will ladder up to positive affinity for the brand. Everyday brands, particularly in established categories, may struggle to find a meaningful functional advantage, but purpose, design and marketing can still help a brand stand out from the crowd and make an emotional connection with its potential customers.

In marketing, it has become popular to dismiss the importance of perceived difference, but this analysis reminds us that when it comes to longer-term success differentiation is still important. Every marketer should be looking for ways to make their brand seem different so that it's the obvious choice when people do deliberate on their purchase decision.

Authored by: Nigel Hollis, Chief Global Analyst, Kantar Millward Brown. Source Here.

#Boycotters is a hashtag that is being used to try to force three leading Moroccan brands to lower their prices. The boycott is a fascinating social response to something that has traditionally been solved by individuals. Don’t like the price? Buy a cheaper brand. But the boycott may perhaps signal that these brands are ones people still want to buy.

The unprecedented social movement to boycott goods from leading national companies marketing milk, mineral water and gasoline is reported to have impacted share prices although the actual financial impact is not clear. The Moroccan brand boycott is unusual in that many people have grouped together to target specific brands for economic reasons. Siham Malek, Managing Director, Kantar Insights, Morocco, tells me that prices have not actually increased for several years and no one is quite sure how the boycott started.

Over the years, from the Arab Spring to #MeToo, we have become accustomed to the power of social media to effect changes in society. And we have seen the same power leveled at specific brands whenever they are perceived to have done something wrong. It is reported 200,000 people did delete the Uber app from their phones in response to #DeleteUber but probably far fewer than tweeted the hashtag. But, of course, in some cases the social backlash can provoke its own backlash. And, as the New York Times article notes, offline behavior may not follow online word of mouth.

The Morocco World News article criticizes the targeted companies for the lack of an effective social media response. The water brand, Eaux Minérales d’Oulmès, is rumored to have responded by dropping its prices and as a means to prevent the boycott spreading to the owning company’s wider set of brands. But what might the right response be?

The fact that people are boycotting leading brands instead of simply buying cheaper ones makes me suspect that there is a strong emotional connection to the brands involved. People are making a sacrifice to walk away. The key question to my mind is how much people will miss the brands they are boycotting? Are they easily substitutable? How much do people think they are giving up?

If the brands are strong then the best response for them may be to stand their ground, hold prices and explain simply remind people of the deep connection they have with the brand. By the sound of it, the chance to respond effectively in social media may have passed, so perhaps non-digital advertising would provide some insulation from the boycott campaign? But what do you think these brands should do? Please share your thoughts. 

The top two business priorities for CIOs of midsize enterprises (MSEs) in 2018 are growth and digital transformation. However, 57 percent of MSEs are not yet delivering digital initiatives, according to findings from Gartner Inc.'s 2018 CIO Agenda Survey.

"Digitalization has the benefit of expanding MSEs' market horizons — a critical success factor for this size of organization," said Luis Anavitarte, research vice president at Gartner. "As part of an overarching digital business technology platform, MSEs should build an ecosystem platform to strengthen their competitiveness and enable sustainable business growth."

Digital business is supported by technology platforms in five areas — the ecosystem, customer experience, data and analytics, information system and Internet of Things (IoT). "As vital as these platforms are, it's important to recognize that they can be built incrementally. By focusing on the ecosystem platform, you can build the digital business technology platforms over time as your digital business expands — and may even find that they are not all needed," said Mr. Anavitarte.

As a first step, MSEs should align the organization's strategic thinking to the platform concept through an internal digital platform, because the platform shapes the organization's reasoning around the concept of platforms. It will help employees to share best practices across business units, leverage competencies including operational and strategic innovation, achieve rapid prototyping, bring new business capabilities to market more quickly, and coordinate the business ecosystem.

Plan and execute on the ecosystem platform

An ecosystem platform is a collaborative architecture that enables internal and/or external business ecosystem partners to work together in new ways. With effective resource management, planning and executing on an ecosystem platform at the scale of the organization will be an effective step for MSEs in their digital transformation and business growth efforts. "The ecosystem platform offers MSEs a swift entrance into digital and digital deliveries, with the potential for short-term positive impact on the business because it innovates, creates new business models, and sparks business moments," said Mr. Anavitarte.

APIs will play a critical role in the ecosystem platform evolution

An ecosystem platform will support the creation of and connection to external ecosystems, marketplaces and communities, through application programming interfaces (APIs). APIs connect people, businesses and things, which enables market access by making MSE systems available. In essence, APIs make digital business — and digital society as a whole — work. They enable new digital products and business models for services, and create new business channels.

After nearly ten years as Managing Director of BackLite Media, Dubai, during which time the Company tripled in size, James Bicknell will move on from his position as MD at the end of June this year. The Board of BackLite is delighted to announce that Bill Fordyce has been appointed to take over as the new CEO of BackLite at the same time.

James Bicknell will relocate to Columbus, Ohio U.S.A. and will take up an Executive Director and Board member role within BackLite Media with special responsibility to continue to oversee the strategic direction of the Company and explore new initiatives both at home and abroad.

Bill Fordyce has a strong and extensive experience of Out-of-Home (OOH) advertising and is well known in the media business community across the Middle East. He has lived in Dubai for ten years working for HyperMedia as their COO, and most recently as VP for Business Development for DXB Entertainments.

Before moving to Dubai, Bill worked in over 25 countries as the Director of Business Development for News Outdoor Group which, at the time, was one of the world’s largest OOH companies.

‘I am thrilled to accept this position with BackLite Media, a Company which is the leading quality supplier of exclusive backlit and digital signs in Dubai, and I look forward to continuing BackLite’s growth over the coming years’ said Mr. Fordyce.  

Upon announcing Bill’s new role at BackLite, James commented “BackLite Media will continue to be close to my heart, even if I will no longer be exclusively involved in the daily operations of the Company. As Executive Director I will continue working to maintain and strengthen the Company’s position as a leading OOH Company and look forward to exploring new opportunities in America”.