Modern marketing for Maccas, you say?

Taking a look into the evolution of products and communications for retail giant McDonald’s.

  

 

There is no doubt that consumers are increasingly becoming more demanding, particularly due to the variety of choice we now get. With this being said, brands such as McDonald’s have responded by evolving their products and communication strategies to meet the changes in customer needs.

In 2015, the initial launch of their new steak range of products saw McDonald’s enter the experiential world of marketing where elements of fun, disruption and interaction bought over the hearts and wallets of thousands of consumers. Lunchtime was not deemed so ‘boring’ anymore and Maccas now saw their campaign make it into the notorious Guinness World Records. 

As the whole campaign centered around the idea of this red and yellow ‘lunchbox’, McDonalds decided to build one that really reinforced the idea of Maccas being the fast food ‘giant’.

The lunchbox was parked outside the Opera House for two days gaining interest, traction and curiosity from all the foot traffic travelling past. Once the #maccaslunchbox was opened a restaurant appeared giving away free sampling testers of the steak wrap.

The success of this campaign saw customers interact with the pop up restaurant by using their unique #maccaslunchbox hash tag to post images across social media generating a huge amount of awareness for the brand. The success of the campaign enabled Maccas to pack up their lunch and move it across the country.

Current Consumer Challenges:

There will always be a level of marketing challenges businesses will face. With the plethora of new innovative technologies on the scene, the idea of being able to really ‘connect’ with consumers will be something that McDonald’s need to continue to address in order to stay ahead of the curb.

Consumers in this day and age want to feel valued, they want to feel good about the food they put into their mouth and Maccas really needs to keep up with the times along with the changing lifestyle and needs of the people keeping them in business.

Maccas – World leader or follower?

Even though McDonald’s is perceived as a large international brand, each country continues to operate autonomously. Australian CMO for McDonald’s stated that “over the past 40 years, McDonald’s has been part of the Australian fabric and community and we’re really passionate about serving that community, so I wouldn’t say that we ‘lead the world’, I just think were independent and we just do what’s right for us”.

Brds these days lose sight of who they are and whom they are targeting their products to. If McDonald’s Australia was to implement the same communications strategy and product lines seen in India or America, I don’t believe their success would have lasted this long.

We as an Ozzie nation love our coffee and with the introduction of cooking shows such as MKR and Masterchef we have wanted to become more involved in the process of cooking, along with an understanding about what exactly were eating.

McDonald’s remains hugely successful at understanding their consumers. They listen and observe, and as a result of the changing face of Australian consumer needs, launched the McCafe along with the ‘Create Your Taste’ meals.

The Modern Media Menu

When CMO Lollback was asked about the best media mix for McDonald’s, his response indicated that McDonald’s Australia is a large media buyer that uses a diverse range of media channels. At the end of the day, Maccas is a large conglomerate brand that has multiple parts, trying to serve customers seven days a week with multiple messages and multiple demographics.

“We absolutely still use TV and see television as a really important part of our portfolio. We definitely use outdoor, we use radio, we use mobile, we are very much on social media. Money moves around – I don’t think anybody would be surprised to see more money be directed into digital – but it’s not an avalanche,” says Lollback.

McDonald’s has always been a big user of outdoor, however once it moves towards a more digitalised environment consumers should start to really see some clever pieces of advertising being promoted across the country. Reflecting on our culture, I suppose outdoor has proven to be hugely successful for the Australian division as most of the Australian consumers drive around in their cars, or catch busses and trains.

Lollback predicts that outdoor will continue to evolve but it will depend on location. It only makes sense if there is proximity, however over time consumers should start to see some interesting things happen. In terms of interactivity, mega sites like Trafalgar Square in London have already started to be utilised in a creative way.

In regards to digital, it still remains to be quite an erratic medium to use. “Digital is going to open up a lot of flexibility around out-of-home,” Lollback says. “We’re exploring, we’re experimenting, but to be able to do it en masse, on road signs and the like, it’s still got a long way to go.”

Looking Ahead

Having been the market leader for a considerable amount of time, McDonald’s doesn’t get too distracted or focused on its competitors. At this point in time, the best thing they can do is grow. The more they lead, the more they will continue to innovate and in return customers will reward them.

There is no doubt that customers want more choice than ever, demands are increasing and lifestyles are changing. With this being said it is up to Maccas to continue leading their category and respond to the changing face of Australia.

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

Can you “Taste the feeling”? Coca Cola’s new revitalized “one brand” global strategy

Over the decades, Coke has remained as one of the only brands that have delivered some of the most memorable taglines in advertising history.

Coca-Cola have finally unveiled their new 'one brand' global marketing strategy, and the “Taste the Feeling” tagline and campaign. This global strategy will hopefully bring together all their trademark products under one iconic brand image.

'One Brand' aims to diversify the global equity and iconic appeal of the brand, where the “taste the feeling” campaign aims to celebrate Coca-Cola through universal storytelling and everyday moments which center around the beverage.

The Australian campaign in particular will feature a number of outdoor advertisements placed in some of our more prime positions, such as Kings Cross, along with coverage on social media, POS, experiential and sampling.

This new chapter for the powerhouse brand celebrates the notion that the simple pleasure of drinking Coca-Cola makes the moment more special. Chief Marketing officer, Marcos De Quinto describes the “one brand” approach:

“More than ever, we recognise people want their Coca-Cola in different ways, but whichever one they want, they want a Coca-Cola brand with great taste and uplifting refreshment. Through the ‘one brand’ strategy we will move away from multiple brand campaigns, to one single iconic brand campaign that celebrates both the product and the brand.”

Proving its success in the UK back in March 2015, the new strategy may also help Coke win over a younger demographic of consumers. In this day and age, young people want to feel part of a global society and they are continuously looking for brands that can help them participate in one. The new generation will do well in creating equity for Coke as an enabler, someone who empowers consumers to feel part of a global conversation and community. It will represent a good blueprint for other big brands to follow.

It is much more difficult delivering a global campaign to a global consumer. Even though the concept of 'one brand' seems to be something of benefit to the Coke brand, it will be interesting to see whether this global campaign will gain the same level of cut-through as its previous advertisements.

 

 

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

Super Bowl: An advertisers dream

Super bowl Sunday has ended with the Denver Broncos beating the Carolina Panthers in what many fans have said to be one of the more dull finals in the games' fifty-year history. Fortunately, one thing that almost never disappoints is the half time show and accompanying advertisements that has become somewhat of an event in themselves, not only for fans of the sport but even for the casual viewer.

Source: http://www.adlip.com/

Some call it the greatest sporting event in the world. But for me, it is the greatest marketing event in the world! Marketing during the annual event has grown significantly over the years as brands invest millions to reach consumers. A thirty second advertising slot back in 1967 at Super Bowl 1 watched by 51.8 million people would have set you back at mere $42k. Fast-forward to Super bowl 49 in 2015, which was seen by more than 168 million people, the same thirty-second slot was priced at over 5 million dollars.   

Advertising at the Super bowl is now bigger and more important than it has ever been and not just from a numbers perspective. In a world where audiences are migrating away from TV, preferring to watch content ad-free or with catch-up services, live sporting fixtures take on even greater significance.

Perhaps one of the most creative big game ads came in 2014 from the agency Droga5, who produced the “If we made it” for the beer manufacturer Newcastle Brown Ale. But technically this ad didn’t even exist! Well, it didn’t find its way into a Super Bowl spot at least. The ad is essentially a self-deprecating look at the advertisement the company would have made if they had enough money to actually advertise during the big game. The ad playfully mocked the marketing industry and the role celebrities play in endorsing products.

Source: http://www.adweek.com/

The agency released teasers and trailers for the ads they would have made featuring cameos from Hollywood heavyweights Anna Kendrick and Arnold Schwarzenegger. By poking fun in such a unique way, the anti-endorsements of the beer received 10 million views in just two weeks. The campaign received over 600 organic media placements with over 1 billion in total impressions. In fact, the non-ad even trended above the actual game itself for two days on Facebook news!

Not bad for an ad than never made it into one of the 30 second, 5 million dollar timeslots!

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

What exactly is the ‘Internet of Things’?

For the last few years there has been a new phrase buzzing around the offices of many marketing departments. This phrase ‘Internet of Things’ is perhaps bigger than anyone yet dreams or realises. Last year it was reported that 51 per cent of marketing executives anticipate that the ‘Internet of Things’ (IoT) will revolutionise marketing practices by the year 2020. So what exactly is the IoT?

Source: http://www.kpcb.com/

Dr John Barrett describes the ‘Internet of Things’ as a place where the web and the physical world meet. This is where the planet and everything on it will become part of the ‘Internet of Things’. Everything will one day become part of the IoT from objects, machines, appliances, buildings, vehicles, animals, people and even plants. This is much more than simply just a webpage about those things, but those ‘things’ having an actual presence on the web.

There really is no limit to what could one day become part of the IoT. Anything that can be given a unique identity, sensors to read its environment and the ability to communicate could one day become part of this evolution of the Internet. The only limits we have are our own imagination in how these ‘things’ can be integrated and used to enhance our daily lives.

The IoT will allow us to connect and interact with ‘things’ in new ways and will allow us to monitor them in unprecedented new levels of detail. This will allow us to manage and plan better in all aspects of life. The IoT will also allow us to better control the environment we live and how we relate to everything that surrounds us. Gone are the days where you may loose your car keys, as you will soon be able to ask Google to just locate them for you.

Source: http://www.bandt.com.au/

The IoT is going to have a tremendous impact on both our lives and society. We have seen data play an ever-increasing importance in marketing practices over the last ten years. This trend is inevitably set to continue with the rich data that the IoT will soon provide. Individual marketing has the possibility to become even more targeted as people interact with these new ‘things’. It is estimated that by 2032 people will be in daily contact with between 3,000-5,000 new ‘things’ on the IoT.

I believe we are already living in the ‘Internet of Things’, however we are only at the very beginning of its evolution. The one thing we can be certain of is that the ‘Internet of Things’ is inevitably going to change life and the world as we know it forever.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Cadbury Creme Egg Catastrophe

The Cadbury Creme Egg has long since been a staple of Easter. The product itself has enjoyed somewhat of a cult following amassing more than 2.5 million people into its fan club. It therefore came as somewhat of a surprise that earlier this week the confectioner Cadbury announced that last year sales of its famous chocolate Creme Egg had fallen by over $12 million.

Cadbury was purchased by the US food giant Kraft in 2010 which later changed to Mondelez International. At the time of its purchases many feared that the longstanding Cadbury recipes from the 192-year-old company would be cheapened inline with the American manufactured Hershey products.

Source: http://www.dailymail.co.uk/

In hindsight, the drop in sales should really come as no surprise. On the 12th January 2015 Cadbury made the announcement that the Creme Egg recipe would be changed forever. Instead of being made from the usual glass and a half of Cadbury Dairy Milk product it would instead be made from a cheaper standard cocoa chocolate mix. The traditional half a dozen eggs were also reduced to just five with the price remaining unchanged leaving customers shell-shocked.

Cadbury marketing manager Claire Low defended the company saying, "The fundamentals of Cadbury Creme Egg remain exactly the same. It's simply not the case that the Creme Egg has always been made with Cadbury Dairy Milk." However, the damage to the bottom line cannot be underestimated as a result of making changes to the product. Cadbury has been left with egg on their faces as their market share has dropped from 42 to 40 per cent in the last year.

The negative backlash to the recent changes has caused uproar on social media with many consumers expressing their anger at the new recipe. Of course, this would not be the first time a larger food manufacturer has made changes to its product angering consumers. When Coke changed its famous recipe to New Coke in the spring of 1985, it caused a similar backlash. As a marketer, it is important to listen to the voice of the consumer. In changing a winning recipe, Cadbury have alienated their core customers who were quick to notice the difference, calling the product a “Frankenstein egg”.

Source: http://www.smh.com.au/

Much like Classic Coke, many customers have formed strong attachments to products that have been a fundamental part of their childhood. Attempts to change fundamental attributes while marketing a product the same is always likely to cause outrage. In their defense, a spokesperson for Cadbury added, “The Creme Egg had never been called Cadbury Dairy Milk Creme Egg. We have never played on the fact that Dairy Milk was used.”

One can only wonder if Cadbury would have made a different decision given a second chance.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

David Bowie: A Tribute to an icon of music and marketing

As the world mourns the loss of another music legend this week, most will be thinking about his mesmerising music. For six decades David Bowie amazed, shocked and delighted his fans with songs about spacemen and life on mars. Many people may not appreciate what a true genius he was when it came to marketing his own personal brand and his music. Bowie’s career is one of constant evolution and reinvention throughout the decades.

His career really began to take flight with the release of the song “Space Oddity”, which was about the fictional astronaut Major Tom on his journey into space. The song was written and released just five days before the Apollo 11 rocket set off on mans first flight to the moon. The song was perfectly timed to capitalise on the mood of the nation and fascination surrounding the historic event.

Source: www.teamrock.com

Bowie himself changed physically throughout the years, from the bright red hair of Ziggie Stardust to the “White Duke” persona. He was able to redefine musical genres and even make successful transitions into both art and film. One of the reasons why I believe David Bowie was so successful is he was able to keep his finger firmly on the pulse of popular culture. He was also able to reinvent both his image and his music multiple times, pushing boundaries and set new trends in popular culture. These are all attributes that the most successful brands in the world would all dearly love to have.

In 2013, Bowie released his then new album (The Next Day) after many years away from the music industry. Most artists would accompany such a come back with a huge PR campaign, but not Bowie. In fact, very few people initially even knew about it at all!

The launch took the world by surprise, as there had been no leaks about the new album, which he had been secretly recording for two years. On the 8th of January the album was released with no hype or fanfare. The news of the surprise launch found its way into the media where it quickly became a major news story. Such a laid-back approach really shows the confidence and self-belief Bowie had in his own brand. In an industry where everybody is shouting to have their voice heard, a different approach along with a well-recognised brand name was able to capture the attention of both the media and fans.

Source: http://athenacinema.com/

David Bowie was a man who was known for doing things differently. His creativity shines through his work in the entertainment industry. He leaves behind a legacy as a trailblazer of musical and artistic trends but also many valuable lessons in marketing.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

The Star Wars Effect in full force

Star Wars, as we know it is a culture phenomenon in itself. Since the release of their newest addition by Disney, “The Force Awakens”, Star Wars memorabilia saw a 200% increase amongst Australian consumers over Christmas since the same period last year.

The marketing campaigns of big box office movies always seems to spark my interest. Star Wars, The Force Awakens, had huge shoes to fill and boy did Disney do their job! There is no doubt that The Force Awakens is, in some sense, the reintroduction to that universe we left a long time ago in a galaxy far, far away.

The 10 of December marked the biggest day for Star Wars merchandise purchases. After a steady increase throughout the start of November, in the lead into Christmas, data from cloud-based retail management software company, Vend, showed, “you don’t have to be the brightest lightsabre in the galaxy to know that Star Wars is pretty hot right now, but it’s great to see that its popularity is paying off for Australian retailers,” says Vaughan Rowsell, CEO of Vend.

The ‘Star Wars effect’ has also seen a 192% retail spending increase in stores selling Star Wars products, and a 210% increase of Star Wars merchandise actually stocked in stores.

Furniture and home wares was the retail category which saw the biggest increase in sales last year between 1 November and 31 December, with a 116% increase on the monthly average. This was followed by books (93%), toys and games (61%), jewellery (53%) and sporting goods (52%).

Last year, 23 December was the biggest shopping day in Australia, with sales 61% higher than the monthly average. This data from Vend busts the myth that Christmas Eve is the biggest shopping day of the year.

“Last year Australia saw record levels of Christmas spending across the country, and the industry’s coming off a pretty strong 2015, so it’s likely we’ll see another great season for retailers – and the Star Wars effect is certainly helping,” Rowsell said.

The film has already broken a box office record in Australia, as the highest grossing midnight screening in Village cinema’s history. It’s also doubled the previous record for pre-sales, held by Harry Potter and the Deathly Hallows. Village screened the film 733 times Australia-wide in the first 24 hours of its release.

The Force Awakens distances itself from those movies, and does its best to provide fan service and nostalgia. But it’s more than that, we get to see these old, beloved characters once more. Even while it seems to go through so many of the old motions, even as it wows us with its big action and sparkly energy, it treats its characters with more dignity and complexity than ever before.

There’s a new hope for the Star Wars franchise.

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

McDonalds but not as we know it

This week the fast food giant McDonalds opened a new concept store in the trendy shopping district of Admiralty in Hong Kong. The interesting glimpse into the future of fast food has seen the introduction of a ‘food bar’ style restaurant with a heavy emphasis on customisation. This is far from the traditional McDonalds model that has made the franchise so successful.

Source: Instagram @vjeffz

The traditional look of a typical McDonalds has also been replaced with ultra modern brush stainless steel and glass food cabinets. This new restaurant known as ‘McDonalds Next’ has an unrecognisable industrial design, with its only identifying features being the golden arches adoring the windows.

Self-service is a big part feature of the restaurant, which gives customers the opportunity to pick and choose the features of the food they eat. This is a long way from the one-size fits ethos that has been synonymous with standardised McDonalds of the past.

As a University of Sydney student I have already been able to experience the new McDonalds style restaurants. Last January, McDonalds launched another concept store called ‘The Corner’ in the leafy suburb of Camperdown. Other than the small McCafe logo, you would be forgiven for not even knowing that McDonalds even operates this establishment.

Source: businessinsider.com

The main difference is you won't find any Big Macs, fries and strawberry shakes at this café. Instead you might find Lebanese lentils, tomato and basil soup, cesar salad wraps and craft soda.

Source: lewisbranding.com

Earlier this year in Australia, McDonalds rolled out the ‘Create Your Taste’ platform across many of the restaurant chains. This offered customers the opportunity to custom build their own McDonalds menu options with a range of buns, toppings, sides and drinks. This new tool has more the traditional McDonalds look and feel, although it does feel slightly strange having waiting staff serve food to your table.

McDonalds are able to charge a price premium for this product and service, delivering your items on an artisan wooden board with even a small basket for the fries.

Source: alluremedia.com.au

These concepts and new ideas show that McDonalds are willing to change and adapt its model to fit the varying requirements of its customers. In 20 years time I believe McDonalds will still be serving its legendary Big Mac, Quarter Pounder and other iconic items, as these are a central part of its history and identity. Whether or not it is predominantly known only as a fast food chain is however another matter.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Marketing Trends for 2016

Marketing practices are constantly changing, growing and evolving. With the rises in new technology these changes are happening quicker than ever before. In the past few years alone we have seen digital marketing undergo radical changes to keep pace with new emerging technologies.

It’s not enough to just spot a trend these days and then jump on the bandwagon. It is about looking beyond what we currently know as marketers and trying to stay ahead of the curve rather than behind it. With that in mind, in this week’s blog I will be looking at the top trends in 2016 to look out for.

Relationship marketing
In my very first module in the Masters of Marketing I learnt about the power of relationships in marketing practice. As smartphone proliferation continues to grow in many markets around the world, so do the opportunities for brands to engage and connect with customers.

Relationship marketing is not a new phenomenon but it is becoming increasingly important for many companies. In fact, the brands that are able to make the most rich and meaningful connections are usually those who are the most successful. So think carefully about your customer relationships and how they can be strengthened to create new brand advocates who shout loudly and positively about your business. 

Source: http://www.widenetconsulting.com/

The rise of the CMT
CMT is short for Chief Marketing Technologist. With the rapid rise and dependency on technology in marketing many firms are looking to recruit CMTs to their organisations. So what exactly does a CMT do? They are part strategy, part creative, part technology and part teacher, in short their role is usually to align marketing technology with the business goals of the organisation. CMT work to bridge the gap between marketing and IT, and must be able to seamlessly work between both groups. Many roles with this title will be appearing on the job market in 2016.


Source: http://chiefmartec.com/

Virtual Reality
Earlier this year I wrote a blog about the new technology, Oculus Rift, that allows users to immerse themselves into a virtual world. While it would be silly to predict that virtual reality will be mainstream in the coming year, it will certainly be growing in popularity. In fact, in early 2016 we will finally get to see the first consumer version of the Oculus VR, otherwise known as “The Rift” headset available for sale.

The implications of this new platform for marketing are going to be immense. In the same way that companies such as Facebook have changed the social space, Oculus Rift is looking to change the virtual space. It just so happens that Mark Zuckerberg’s Facebook paid $400 million in cash and $1.6 billion in Facebook stock to acquire Oculus last year.

Source: http://www.htxt.co.za/

Ephemeral and video marketing
What is ephemeral marketing I hear you cry? Ephemeral simply means to last for a very short time. It is usually content that is exclusive or has a very short expiration date. Snapchat has already successfully used this technique in its platform to continue its impressive growth this year. We are now seeing growth in other platforms such as Periscope, Facebook Mentions and Meerkat, which have become popular with the younger generation.

In a world where people have less time and are on the go more often, this ‘less is more’ approach appears to be cutting through. The opportunity for advertising and promotion in live news or broadcast feeds has also gained pace this year. Video ads are beginning to dominate with companies such as YouTube hosting billions of ads each day. With consumers becoming increasingly accepting of video advertisements, the trend of them appearing in unexpected ways on the web looks likely to continue.

Source: https://marqana.com

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Merry Christmas from the Masters of Marketing

I would like to wish all of the readers of the Marketing Matters blog a very merry Christmas. To celebrate the holiday season, this special blog is all about festive advertisements. It may not be snowing outside but let the countdown begin!

Monty the Penguin
Since this ad was launched in the build up to Christmas 2014 it has gained a staggering 26 million views. The advert tells the story of an unlikely friendship between a little boy named Sam and his penguin friend Monty. The soundtrack to the ad was a cover of John Lennon’s song ‘Real Love’ sung by Tom Odell.

The advert costed £1 million pounds to produce with the total campaign cost coming in at £7 million. The group used to create the CGI animation of Monty the penguin was the same team used in high budget movies such as Planet of the Apes and World War Z.

As soon as the advertisement came out, the stuffed toy version Monty instantly sold out in stores and were being resold online for more than six times their face value. Monty-mania drove John Lewis to have one of their most successful Christmas trading periods in their history.

WestJet Christmas Miracle
If you want a great example of how businesses can engage with their customers in a fun and unique way at Christmas, then look no further than the WestJet Christmas Miracle.

Upon boarding their flight in Ontario passengers were asked what gift they would like for Christmas. As soon as the plane takes off there is a mad dash from the WestJet employees to buy and wrap the presents for the passengers. A few hours later in Calgary the gifts are waiting on the baggage carousel for the unsuspecting customers. Everything from TVs, toys and even socks were delivered to the amazement and joy of the customers.

43 million views later, this advert still continues to spread some fun festive cheer.

Toys R Us
What says Christmas more than toys? This iconic advertisement first came out in 1989, which made me just 6 years old when I first watched it. Since that time it has been remade and updated, but always with the same catchy theme song.

I think it is a testament to really good consistent marketing that I can still remember every word to this ad over a quarter of a century later! There’s a magical place, we’re on our way there, with toys in there millions all under one roof, it’s called Toys ‘R’ Us!

Man on the Moon
If you cry easily, it’s time to look away now!

After the success of Monty the Penguin in 2015, John Lewis has done it again this year with the Man on the Moon. The story shows a young girl named Lily who is looking through her telescope at the man on the moon. Seeing the old man going about his day all alone she decides to send him a give to show him that’s he is loved this Christmas. 

I think this sends a really strong message at Christmas time to remember those who may be unable to speak to anyone. John Lewis partnered with the charity Age UK to help raise awareness and donations to this cause.

Man on the Moon: Parody
The budget retailers Aldi were quick to produce their own cheeky spoof of the John Lewis Man on the Moon Christmas ad. It features an old man sitting on a bench on the moon choosing between two telescopes. Of course the telescope he prefers is the cheaper one from Aldi!

Delivered in a fun way, the advert really captures Aldi’s commitment to offering quality products at low prices that shoppers will be over the moon with!

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Coca-Cola: The King of Christmas

If there was one brand that really captures the magic of Christmas it must be Coca-Cola. Who would have thought a drink simply made from corn syrup and water would evoke such emotion and have such ties to the festive holiday?

When you think of Santa Claus you usually picture a jolly old man in a red and white jacket with a fluffy white beard. What many people don’t realise is that the origin of this Santa was actually painted by the illustrator Haddon Sundblom and has become the image that we are most familiar with today.  While Coca-Cola had previously commissioned pictures to be drawn, it was Sundblom’s vision of Santa Claus that has become the most iconic. He continued to draw these pictures for Coke for over thirty years. 

Source: http://www.adbranch.com/

Coca-Cola has been featuring jolly old Santa in their ads since the 1920’s and has even helped to shape his very image. Some even go as far as to say that Coca-Cola were instrumental in dressing Santa in the traditional red and white clothing to mirror the brand image of Coke. While this may be a disputed claim, there is no doubting that the Santa and Coke history has been intertwined for almost a century.

For so many of us, the flashing lights of the Coca-Cola Christmas trucks are an essential part of getting into the Christmas spirit. The classic TV ad first appeared over 20 years ago on our screens but fell into disuse in 2001 after a restructure that meant all advertising campaigns would be produced locally for each country.

The ‘Holidays are coming’ campaign featured the famous red Coca-Cola delivery trucks decorated with Christmas lights driving through the snowy hills of Germany. As the truck passes through the town it causes the Christmas lights to turn on and shine with people watching in amazement. By 2007, Coca-Cola reintroduced the campaign back on to TVs around the globe. It is really quite amazing how successful this relatively simple advert has been and still stands the test of time today. In fact, in the UK, the truck has its very own nationwide tour, handing out free samples and opportunities to take pictures with the iconic vehicle.

Source: http://www.coca-colacompany.com/

Last week, Coca-Cola released its newest packaging which allows the owner to transform the bottles label into a festive bow. While these are limited edition and only available in selected markets I think it is another ingenious way to strengthen the products ties to Christmas.  The new packaging has already created quite a buzz on social media with users posting their festive bows adoring their Christmas trees.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Twelve Key Marketing Metrics (Part II)

7. Customer Satisfaction
Customer satisfaction (CSAT) is a very important metric to measure for a number of reasons. CSAT is a primary indicator of a consumer's future intentions and loyalty to a brand for repeat purchase. For many successful companies CSAT can also act as a point of differentiation in a crowded market place. High levels of CSAT also help to reduce customer churn, which is the turnover or loss of clients. It can also help to increase CLV by retaining profitable customers since they are often cheaper to maintain than acquire new ones.  Finally, good CSAT helps to reduce negative word of mouth, as customers who are unhappy are likely to tell others about their bad experiences.

8. Net Promoter Score
The net promoter score (NPS) is a metric which can be used to consider the loyalty and happiness of customers and how likely they are to recommend your company to others. Customers are surveyed and fall into three categories depending upon their NPS. Promoters are customers who consistently recommend your company and may include strong brand advocates. Passives are reasonably neutral and would neither recommend nor deter anyone from your company. Finally, detractors are individuals who would discourage people from buying from your company. The NPS is actually calculated by taking the percentage of people who promote your company and subtracting those who detract from it.

Source: https://www.checkmarket.com

9. Share of Customers
Share of customers is also sometimes known as share of wallet and is the amount of a customer's total spend that a company captures through its business operations. By increasing the share of customer, organisations can boost revenue cheaper relative to efforts to increasing market share. The typical way to increase the share of customer is to offer new products or services to existing customers of the business. For example, Nike may capture a higher share of customers by bringing out new lines of trainers to increase its share of wallet.

10. Market Share
The market share metric is useful for marketers to better understand the overall size of a company in relation to the market as a whole and its competitors. Market share is the percentage of a market in total sales that is earned by a company over a specified period of time. It is a relatively simple calculation by taking the sales of the company over the period specified and dividing them by the total sales from the industry as a whole over the same period.

11. Bounce Rate
The bounce rate is an online metric used to analyse web traffic to a particular destination. It measures visitors who enter a website and then leave rather than continuing to click through to other areas. While this metric can be misleading, it can also give you vital information into the success of a campaign. Websites with a high bounce rate usually indicate that the website is not performing well in continuing the interest of visitors. However, Wikipedia pages would often have a high bounce rate as users may land on the page, find what they were looking for and then leave. Therefore, bounce rate should not be evaluated in isolation but can often be revealing.

Source: http://www.recruiting.com

12. Online Visitor Behaviour
Online visitor behaviour to a website can be analysed in a number of ways. For example, you can consider the number of users and visitors to a website by counting page views. Metrics can also be used to measure the length of time on a website and the number of users who return to that page. In converting behaviour to action, metrics such as click-through rate (CTR) can be used to measure the ratio of users who click-through to a particular page including the conversion of page views leading to a purchase.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Twelve Key Marketing Metrics (Part I)

Gone are the days when important marketing decisions were made on a whim.

Marketing has become increasingly scientific over the years with marketing performance measured and evaluated to assist decision-making. In this weeks blog I will be detailing twelve key marketing metrics to increase insight and overcome unpredictability in decision-making.

1. Customer Lifetime Value
Customer lifetime value (CLV) is the measurement used to predict the net profit of all future relationships with customers. CLV is an incredibly useful tool businesses use to analyse who are their most valuable customers. Knowing which customers are the most profitable is just as important as knowing which customer segments are less desirable to retain. Calculating CLV helps businesses manage their customer relationships as assets to the company and monitor the impact of marketing investments.


Source: http://csbcorrespondent.com/

2. Retention Rates
Retention in marketing is often used to count customers and track their activity over time. The retention rate is the ratio of customers retained by the company vs. those customers who are potentially at risk of leaving. While driving sales and engaging customers is important, failure to build a loyal customer base and retain the most important customers can undo all your business's hard work. After all, it is always cheaper to retain profitable customers than to acquire new ones.

3. Customer Acquisition Cost
Customer acquisition cost (CAC) is measured by calculating the costs associated with convincing a customer to purchase your product or service. The reason why this is such an important metric is that it is used in calculating the value of the customer to the company and how many resources should be used to attract a particular customer segment. CAC is particularly useful for established businesses that may be considering targeting new markets and customers.

4. Profit Margins
Profit margins are simply a measure of profitability. Today's marketing managers are often asked to evaluate the profitability of their campaigns. A campaign with a high margin reflects high levels of profitability, whereas a campaign with a low margin reflects low levels of overall profitability.
 

Source: http://www.industryweek.com

5. Return on Marketing Investment
Return on marketing investment (ROMI) calculates the contribution that marketing spending has made to profit. This metric can be used to measure the overall effectiveness of a campaign and help aid marketers in their decision making for future investments. ROMI is calculated by comparing revenue gained against a business's marketing investment. It is often useful to compare effectiveness across many marketing activities in percentage term, which makes ROMI particularly useful.

6. Internal Rate of Return/Net Present Value/Payback Period
The internal rate of return (IRR) metric is used to measure the profitability of potential investments. When considering if a marketing project is worthy of potential funding the IRR can be used to better evaluate the decision.

The internal rate of return is actually the discounted rate that makes up the net present value (NPV). NPV is a metric used to evaluate long-term projects and is also a key part of determining ROMI.

Payback period is simply the length of time that it takes to cover the cost of an investment. The length of this period can help to determine if a project is viable.

These metrics are key for marketers in order to justify new campaigns internally to other departments. It is also a useful practice to measure these when considering if a campaign has been a sound financial investment in the long term.

Be sure to check out part II tomorrow for the following six marketing metrics!

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Video Becoming An Effective Marketing Tool

It has been made apparent that we are all consumers within this mass digital age. With a plethora of platforms to use, a large percentage of marketers are moving their brands and organisations into branded content especially considering that digital video is becoming more of an important component of omnichannel strategies.

Whist we have the more traditional television viewings decreasing, the consumption of video on other devices is steadily growing. In reference to the recent Q2 2015, Australian multi-screen report released by Nielsen, 12% of all video viewings across the nation’s population take place on screens other than television.

This can be seen as super exciting times for marketers, especially the new generation of marketers. However, we need to ensure that we learn the best way we can operate in the new, rapid and constantly changing digital environment. Considering consumers are using more than one device, research is increasingly showing a decrease in the impact for television advertising.

Gone are the days when you could commission a big glossy TVC, place it in primetime, and wait for the results to pour in. Depending on who your consumer base is these days, they now might be busy on their iPhones while TV ads are playing in the background, or perhaps there not even watching traditional free-to-air TV at all considering we have all become so time poor.

The trend for shopping behaviour has also moved online, and consumers are now accessing various channels to search for particular products or product information. A retail customer today might find out about a certain product online, find more information about it on other sites via their mobile device and should they wish to go ahead, eventually purchase it in-store.

“The marketing funnel no longer flows in a linear pattern,” Nielsen’s report explains.
“We are in a new era of marketing, where the consumer decides their own path from awareness to consideration to purchase, hence the need for an omnichannel content strategy.”

Video is one way your brand can communicate its point of difference and communicate meaningfully with your customers and prospects. Even though text and photo-based ads are inevitable to creating a strong online presence, video has found itself an important place within the digital marketing and e-commerce world. YouTube channels and video platforms like Ad words for video always help businesses promote products in the best manner. However, on e-commerce websites, videos have to be used in a more interactive and educational manner to create a greater shopping experience.

Some interesting facts regarding the impact of video on sales can be seen in the info graph below.

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

Black Friday and Cyber Monday: A Marketer’s Perspective

Black Friday is an annual tradition observed in the United States on the day following Thanksgiving. This day officially marks the beginning of the shopping season and sees retailers slashing prices and offering “special deals” to customers. Cyber Monday occurs on the first Monday after Thanksgiving and was first coined in 2005 to encourage shoppers to purchase online. Since then it has become the busiest online shopping day for many countries around the world.

Source: http://3dprint.com/

In recent years these flash sales have seen shoppers spending increasing amounts in a feverish attempt to snap up the very best bargains on offer. This often results in chaos, crashed websites and unfortunately, even tragedy. However, more than 13 billion dollars was spent in the US between the Black Friday and Cyber Monday sales. The growing trend in recent years has seen increased spending online rather than physical in-store sales.

The Black Friday and Cyber Monday sales that originated in the United States have in recent years spread to the United Kingdom, Canada, Brazil, Portugal, Germany, Colombia and Japan. While not as commonplace just yet, Australian retailers have begun to embrace the tradition and jump on the Black Friday bandwagon. An estimated $329 million has been spent this year, which is almost double the previous years spending.

So is this all simply just hype? Or a clever “marketing” term to create artificial demand. Consumers these days are more perceptive than ever and are easily able to spot a bad deal from a good one with online comparison tools. With the rise of social media, consumers can easily spread that message loud and clear if they feel they are being mislead. One of the most interesting developments I have seen this year has come from companies shunning the tradition and declaring themselves against these flash sales. In fact, in the UK retailers such as Jeep, Aldi and John Lewis have used this stand as a marketing tool to promote their own on-going price reductions.

Source: http://i.haymarketindia.net/

One thing is however undeniable, Black Friday and Cyber Monday represent a fantastic opportunity for companies to sell products before the busy Christmas period and is somewhat of a marketers dream. For retailers, this is a time to send emails fearlessly to their databases offing smart discounts and activating their top customers. It also offers a chance to be active on social media and engage with customers through clever ads.

Mobile devices are making this instant flash sales shopping even easier for consumers with “shopping on the go”. In 2014, more than 60% of Amazon's US customers purchased using a mobile devise. The increased ability to shop online has made it significantly easier for shoppers to search for and stay connected to the deals that they are most interested in.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Celebrating a successful year on the Master of Marketing

Last week officially marked the end of my second semester studying on the Master of Marketing. As the academic year draws to a close it also marks the end of the examination period and the final assessments of the year.

To celebrate this success, the University of Sydney Business School were very kind to throw an end of year reception for the program at the Darlington Centre. A great time was had by all in attendance, from both the current cohort and alumni of the Masters of Marketing.

Joining the student body were also notable members from industry including Nicholas Ridis, Board Director for the Australian Marketing Institute. In addition, there was a three-way panel chaired by the course director, Pennie Frow, with Senior Consultant of Potentiate Global, Stephen Jenke, and Head of Marketing Intelligence at Tabcorp Kasia, Wilton-Wanstall. This provided a great opportunity to gain new insights into current marketing practices and an opportunity to network in a fun and relaxing environment. 

On behalf of the rest of the cohort I would like to say thank you to Terry Beed for organising a wonderful evening. I would also like to thank Associate Professor Geoff Frost who opened the event along with Associate Professor Pennie Frow who has been so instrumental in shaping the course. I would like to say a special thank you to our lecturers who have passed on their wisdom over the last ten months. 

I would also like to extend my congratulations to our alumni Taran and Seray who received awards for their excellent performance in the Marketing Consultancy Project. Both Lauren and myself were delighted to be recognised for our contributions to the social media for the course. We have very much enjoyed posting on the Marketing Matters blog and will continue to do so in the year ahead.

Early last week many of us were also fortunate to visit the new home of the University of Sydney Business School known as the Abercrombie Building. This state-of-the-art building holds an impressive 550-seat lecture theatre, three 300 seat lecture halls, eight 100 seat study rooms, 33 seminar rooms, a learning hub and 1500 square meters of informal learning space. 

What struck me most about the building was the amazing amount of natural light that lit up each room along with the excellent building structure designed to foster a blended learning environment. The new home will certainly add a great deal to the Darlington community and will be a fantastic home for the Business School for many years to come!

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School

Understanding People & Consumption: 10 Global Mega Trends to Watch

Coming to the end of another academic year we are pushed to go through some mentally challenging yet very relevant and interesting topics. As marketers we need to understand what is happening around us and need to up to date with the trends that will impact our careers on a global scale. 

Today the Marketing industry is drastically different to what it was a decade ago. We now live in a rapidly evolving technological age defined not only by constant change but by true paradigm shift where consumers have become producers, the concept of innovation is the “default” and data, which enables us to layer multiple data sets to come up with a more dynamic and comprehensive picture of consumers has become more important than ever. 

With this being said what is the future of marketing? What are some of the future trends that will impact the work we do and how we operate? How can we use an ever increasingly complex consumer landscape to understand behaviours and consumption?

To understand these questions it is important to see what has happened on a global scale in relation to both the past and also what will happen in the foreseeable future. Social tensions will impact how we live, how we feel about the future and will further provide us marketers, brand and services with an opportunity to help Australians improve their lifestyle

Ipsos Australia and New Zealand has recently released a list of the top 10 mega trends that they believe will shape the world’s future. 

1. Dynamic populations – which represent both opportunities and threats to society. For example, two thirds of the global middle class will live in Asia by 2030 creating significant opportunity for Australian brands and services to tap into this growing, affluent market. Understanding these consumers will be crucial to tap into the vast wealth that is being created.

2. Growing opportunity and growing inequality – while some of us are becoming wealthier others are becoming poorer. A class divide is becoming increasingly apparent in Australia for the first time. We are witnessing growing inequality in Australia especially through housing affordability in our largest cities creating a generation of have-nots who will struggle to enjoy the same lifestyle as their parents.

3. Megacities: urban superpowers or human disasters – people are flocking to our largest cities, creating more pressure on infrastructure, housing and jobs, while also representing social challenges. Travel times are increasing creating potential future productivity concerns for our nation. Sydney is about to embark on an infrastructure boom, but will it be enough?

4. Increasing connectedness and decreasing privacy – we’re spending more time online and buying more while we’re there but many of us worry about who – government or business – can track our ‘digital footprint’ (what we search for, what content we consume, what we say and to whom and what we buy) – and how long that footprint will live online.

5. Healthier and sicker – life expectancy is increasing every year and creating new industries and services across Australia. While people are living longer and trying to live healthier lifestyles, levels of obesity are climbing and our environment is getting sicker – but will it be enough to force us to change our habits?

6. Rise of individual choice and decline of the mass market – we have unrivalled choice and it’s growing faster than ever before. The proliferation of international brands opening in Australia gives us greater choice and lower prices. Some Australian icons are now struggling.

7. Rise of the individual and decline of social cohesion – the rise of ‘me-culture’ vs concern and responsibility for the collective ‘us’ is set to continue. Meanwhile on the personal front, significant social changes are underway reinventing the very concept of the ‘average family’. Many families are headed by single parents, while single households are growing quickly and fewer people are getting married (and later).

8. Cultural convergence and increasing extremism – how well are Australians coming together? Sydney is the most multicultural city in the world and a great example of brands/services/foods where you can buy almost anything. However, like many other countries, we are also witnessing increasing social tension around immigration and the threat of home grown extremism.

9. Always on and off the grid – being ‘always on’ is driving some to ‘go off the grid’ for relief, relaxation and a chance to reconnect with the present moment and seek a greater work/life balance. Social consciousness continues to grow in importance. Companies that have a powerful social conscience are seen as compelling organisations to be part of. Flexible working environments will grow quickly over the next 10 years.

10. Public opinion as a revolutionary force – social media has heralded the role of mass social activism or ‘clicktivism’ where global social movements can appear overnight via the click of the ‘like’ button on Facebook. Protests are on the rise again with the public demanding to be more involved to express a point of view to impact decisions.

Lauren Musat
Current student in the Master of Marketing program at the University of Sydney Business School

Pret A Manger dares to be different this Christmas

The UK’s fastest growing coffee chain Pret A Manger has caused quite a stir this week with news that they will donate their entire Christmas digital marketing budget to charity.

In the weeks leading to Christmas campaigns usually go in to overdrive to capture increased consumer spending. This year will be no different for Pret, but with another focus in mind. Shunning the traditional Christmas campaign-spending spree, the company have instead opted to dedicate there marketing channels and digital media spend to five separate charities. The charities form part of the Pret Foundation Trust and will also receive 50p from each sandwich sold in store over the holiday period.

Source: http://www.fruitnet.com/

The campaign officially kicked off last Monday where a store in London’s Broadwick Street was decorated as a giant Christmas present. Customers were encouraged to break through the Christmas wrappings to receive the free festive turkey and stuffing sandwiches inside.

To raise awareness of Pret’s Foundation, the company launched a campaign called ‘A little Thank You’ on both its website and social media. This features news about the charities along with pictures and videos of the trusts' work in the community. The group director of Pret said “We’re delighted to donate our marketing channels and media, both physical and digital, to the Pret Foundation Trust and the charities we work with. It’s our way of saying ‘a little thank you’”.

Back in April I wrote about Pret’s unusual approach to marketing, giving away free coffee to customers at the discretion of the staff. Although unusual, it was a great way to build customer loyalty in the ultra competitive coffee market. I think this is another classic example of ‘being noticeably different’. Using a non-traditional approach to advertising will win the support of customers. Rather than being bombarded with sales messages in the festive period, the company will use its money to increase awareness of important issues. More than two million customers will see the charity logos on coffee cups and in store advertising.

By taking this bold decision, Pret is helping to raise the profile of its charity partners and alleviate poverty by directly tackling the issue of homelessness. This is a great move to continue building good will among its community of customers, while raising an anticipated £1.6 million pounds for charity.

Robert Brunning
Current student in the Master of Marketing program at the University of Sydney Business School