Spice of life you say?

The concept of connection said to be the new “Spice of Life” for the new Masterfoods dinnertime campaign.

If I asked you, “if could have dinner with anyone, living or dead, who would it be?” I am sure most of you would say socialites and intellects such as George Clooney, Einstein, John Lennon, Hemmingway and so forth. Well that is the exact question Mars Food is asking Australian families for a new Masterfoods campaign created to prioritise and celebrate dinner again, particularly after much of the research revealed the meal created important connections between families. 

The new campaign named “Lets make dinnertime matter” has been created around findings that imply 78% of Australians obtain a deeper connection from sharing a meal with loved ones than they would usually do through any other activity. Putting the findings aside, almost 75% of the people surveyed said they would change something about their dinners. So the question stands to be rather conflicting if you ask me?

The process of creating the video that accompanied the campaign involved Mars Food touring the nation, filming at a diverse range of venue’s and community locations. In the way in which the video was constructed, the ads further feature real Australian families connecting over dinner.

Ensuring its hits a wider plethora of social channels, the campaign is implementing social media outlets including Twitter and Facebook by further encouraging conversation around the hashtag #makedinnertimematter.

A report commissioned by Mars Food Australia called “Lifting the Lid on Dinnertime” supported the recent campaign and further went on to research how food shared with company contributed towards our emotional well-being. As stated in a recent article the results suggested that “when it comes to dinnertime in Australia, more people put greater emphasis as to what is going on around the table, rather than what is actually on the plate”. Since its launch on February 15th, the video has been viewed over 8.5 million times. Now that’s what you call viral!

Lauren Musat

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

The golden rules of student marketing

The long wait is finally over, it’s the end of the summer holidays and the University is back in full swing!

In the last week, thousands of new students descended upon The University of Sydney campus for fun and festivities. The start of OWeek provides a great opportunity to make new friends, join new clubs and societies, and of course we can’t forget about all those fantastic promotional freebies!

Today’s student is tomorrow’s customer; so marketing towards students is crucial for many businesses' long-term success. In the past few years working in youth marketing I have learnt some golden rules to successfully connect with the student audience.

Perhaps the most important rule of all in student marketing is to first understand that there is no such thing as a typical ‘student’. The student body is not a homogenous group, so marketing that is not targeted simply will not be successful. Brands hoping to connect to the student audience must take the time to fully understand how they think, feel and behave. While there may be some shared similarities between student groups it is important to also recognise that there are also many differences. Even narrowing down students to those of University age presents a vast plethora of different nationalities and cultural norms.

Although there is a vast array of differences between students, one thing is very clear, students are clever, involved and aware. This means that marketing needs to be genuine and truthful if it is going to resonate with this audience. Students are also well informed particularly when it comes to issues such as the environment and human rights. Therefore brands need to be transparent, open and honest in the ways that they interact with the student body.

Source: http://www.trinityp3.com/

 Warren Buffett once famously said, price is what you pay, but value is what you get. While price may be a very important factor for many students value must not be forgotten. Value must be demonstrated in ways that are tangible and easily recognisable. Therefore for campaigns to be successful they should look to educate student customers on value and not just price alone.

Brand image is also incredibly important when looking to attract the student population. However, for many brands the default option is often to try and look ‘cool’. Unfortunately, this sometimes backfires resulting in the brand looking too contrived or simply just trying too hard. Hijacking trendy Internet phenomena and memes is a sure fire way in which many brands try to be ‘down with the kids’. But this begs the question, should everything be cool? For example, many banks and financial services in recent years have attempted to take on a ‘cool’ persona to attract younger customers. However, it’s worth considering if this is really an image you want to portray in your product or service.



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

One thing that cannot be underestimated is the role that social media plays for the younger generation. The digital natives of today embrace new technologies and digital channels quicker than any generation before them. Experiences from these technologies are becoming seamlessly integrated into the lives of these consumers. However, it is important not to forget the multiple offline marketing channels that can also be utilised to connect with the student audience. 

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

#UberPuppies: Puppies delivered to your workplace!

This morning started pretty much like any other Thursday morning waking up in my Sydney apartment. My girlfriend needed a ride into the city and I suggest for her to book an Uber taxi. But as I opened the app something was different, very different indeed!

UberPuppies! What exactly is UberPuppies? You’ve guessed it, puppies on demand delivered straight to your workplace.

Source: https://newsroom.uber.com/australia/uberpuppies-au/

Between 12-4pm today anybody with an Uber account can order puppies to be delivered to their workplace for 15 minutes for fun for a $40 fee. Teaming up with the Purina Pets At Work mission to deliver puppies to spread the love across eight cities in Australia for a limited time only.

It has been scientifically proven that our furry friends are shown to decrease stress and increase productivity in the work place. Many pet friendly initiatives have been adopted in offices across Australia making it less uncommon to work alongside animals. Of course, almost everyone is smiling when dogs are around which can bring a sense of calm to an often-stressful and busy working environment. 

Source: https://s-media-cache-ak0.pinimg.com

The goal of the initiative is to encourage the adoption of pets and help to raise funds for local animal shelters. In fact, all the puppies taking part in the UberPuppies initiative are up for adoption and in need of a new home. The proceeds of the special delivery will be donated to shelters in Adelaide, Brisbane, Canberra, The Gold Coast, Melbourne, Perth, The Sunshine Coast and Sydney.

Of course, if you are worried about the puppies welfare fear not. This is a limited time initiative with successful requesters being subjected to screening to ensure the puppies safety is a priority. The biggest danger however may be just how many people fall in love with their new fury friends!

I think this is a fantastic piece of marketing from Uber and a great way to raise the profile of their taxi service along by helping a great cause. It comes off the back of a similar campaign last year, UberKittens, which saw friendly felines sharing their love in the workplace. Of course, before requesting one of the Uberpuppies, you may first have to check that is OK with your boss to have an animal in the office for 15 minutes of fun.

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

ANZ & Mardi Gras take full swing

Since 2014, the business of banking for ANZ has given some of its ATM’s in Sydney a fabulous makeover with glitter, paints and sparkles in support of LGBTI celebration of Mardi Gras.

This year however, to mark one decade’s support towards Mardi Gras, ANZ have spent the weekend completely revamping their branch on Oxford Street to make it into a baroque inspired #GAYNZ, “fit for a queen”. The creative agency behind this fabulous campaign was Whybin/TBWA with execution by The Glue Society.

In working with Whybin, Mark Hand, chair of ANZ’s Australia Division diversity council said “They’ve got the recognition they deserve globally with awards out of Cannes. It’s fantastic for them and we’re happy to be their muse in some respect, to be able to provide a canvas for them to show their creativity. It’s phenomenal what they’ve done and they deserve every plaudit that they get”.

The new GAYNZ features two new GAYTM’s, ornate walls, marble floor and 16 unique hand painted murals inspired by the LGBTI community. Mr. Hand stated that “diversity, inclusions and respect is an important part of what we doat ANZ so we are particularly proud of our partnership with Mardi Gras, which started because our staff passionately believed in supporting the cause 10 years ago."

The ANZ Bank further collaborated with Twitter to develop a rainbow colored flag emoji that will appear whenever #GAYNZ is used across the social media platform.

Four GAYTM’s have also been given back to the George Street and Pitt Street branches. ATM operator fees for non-ANZ cardholders from GAYTMs will once again be donated to Twenty10, a not-for-profit organisation working with and supporting people of diverse genders, sexes and sexualities, their families and communities.

While a number of brands do support the Mardi Gras, many question as to why more don’t get involved considering it is a great way for brands to get some of their own support.  For those wanting a fun, fabulous and flamboyant night, check out the parade which will be held on Saturday March 5^th.

 

 As for us Marketing students, we will be welcoming a new large cohort. To celebrate their commencement into the Masters of Marketing, welcome drinks and an evening of introductions will be held this Thursday 25^th of February in the New Business Building. For further information please contact lauren.musat@gmail.com 


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

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