Convenience as currency, says Sarah Benson

Ikea reinventing convenience for the tv masses

There’s a certain contradiction between our hunger for the new and the next and the belt tightening that is facing most people. It’s a world where we’re reluctant to flash the cash yet still desperate to know what Apple might release next.

What’s happened is an interesting take on consumers applying ‘good enough’ principles. The most Malthusian of brand strategists predicted that consumers would toss their gold-plated-truffle-coated-limited edition products in the bin and buy basic: trading down. In actual fact, savvy consumers have been trading across.

Clever brands, knowing that consumers won’t sacrifice convenience; have been quick to tailor products to this new breed of consumer. Consider Zipcar, the pay-by-the-hour car rental. In major cities, owning a car simply doesn’t make financial sense for many people, but neither does giving up on the convenience of getting around. If you can’t afford to buy and service a car, so what? A monthly rental is ‘good enough’. Or high tech digital cameras: if your mobile now takes high enough quality snaps, it’s good enough.

In Autumn, IKEA will release another of its space-saving , bank friendly products that we’ve come to associate with the brand. But no beech or MDF in sight, for this time it’s a TV. The assumption is that consumers are more concerned with the convenience of the offering – and in this case, the lack of nuisance peripherals and cables – that buying that 3D, large format Sony just isn’t worth it.

It’s a similar story with the recent sellout of Marni’s collection for H&M, or the introduction of Netflix in the UK: consumers don’t need the £500 label or special edition DVD. If it’s available in a more convenient form, it’s good enough. Why sell your house with the bloke in the suit that’s offered you a ‘complimentary’ bottle of beer in exchange for a crippling fee? Sites such as Sarah Beeny’s Tepilo.com offer the same service, streamlined.

And the moral of the story? Keep your eyes open. Follow consumer behaviour patterns than rather than always competing with the Joneses. Rather than adding extra toppings, sometimes it’s the way you bake it that counts.

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Own Label 4.0 – a new way forward says Wybe Magermans

Chokablok - brand or own-label?

From the earliest generic own brand ranges, to German discount giants copying branded products shamelessly as price fighters and the radical launch of Tesco Finest, retailer own brands have run rings round traditional brands. Indeed, in the past decade supermarket brands with their three tier strategies literally encircle branded goods eating away at their power and appeal. Tesco Value and Finest are each £1 bn+ businesses in the UK.

Traditionally private label has been most successful in categories where consumers have no brand preference. Yet, with own-label’s progress on product, supermarkets treat their ranges as brands – something we helped Sainsbury’s with when we created the SO Organic range. The packaging design not only created a coherent range, but also introduced a new language in organic food. A grocer was leading the branded world.

In some European markets the own label world is seen differently. In Switzerland, Migros, the leading supermarket chain, stocks mainly their own ‘brands’, except for some carefully selected superbrands. These are perceived as signposts of their respective category, such as Heinz Ketchup, or Kellogg’s Cornflakes.

It is no surprise that Wal-Mart started asking brand-owners to pitch their products for their highly desired shelf space. What’s the difference between Utterly Butterly and I Can’t Believe It’s Butter – do we need both?

Now, to further complicate things, in come ‘venture brands’. For those who don’t read the Grocer (I know, Heaven forefend, there are those who don’t) Chokablok is a joint venture that Tesco launched last year. It started out as ice cream and is expected to be worth £3m this year. It has already launched an Easter egg and we are to expect chocolate bars later this year. ‘Made by an expert team of master cremeliers’ it’s a fully-fledged, cross-category ‘brand’ in Tesco’s aisles, which doesn’t carry the Tesco name and might just see the end of middling brands like Galaxy. There’s already a Facebook page.

People within the big brand owners that have claimed not be threatened by this are either ignorant or lying. After the generic, quasi brands and umbrella brands, it’s the fourth generation: Own-Label 4.0.

Future gazing: Why would Tesco stop here and not create a store full of venture brands? Of course the flagship brands will prevail, but the volume of many middle of the aisle brands is made up of needless extensions, which also work as a defence tactic in the shelf space war.

Switched-on brands already realise that to continue to justify their price premium and their shelf space they need to create a word where they are indispensible – where their products exceed expectations and their communications and packaging work as one. If customers are to be loyal, it can never be about price because someone will always undercut you. It needs to be about love.

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I don’t like nostalgia unless it’s mine, says Sarah Benson

Back To The Future

Reminiscing on the good old days is like crawling into a pair of pyjamas and eating some feel good food. In fact, the WMH studio recently shared a bonding moment by creating the playlist ‘the first single you ever bought’. In between the frothy memories of Elton John, Bananarama and, unfortunately, Peter Andre; there was a sudden sense of camaraderie.

So what is it about nostalgia that binds, socializes and gets the serotonin flowing? Isn’t it just a lazy technique that ultimately halts progress? After all, the word was derived from ‘homesickness’.

For the past few years since our gloomy economists threw more and more bad news our way, brands such as Monster Munch, John Lewis, M&S, Fairy, Milky Way and Persil have hopped aboard the retro express. Why? They are easy ways to Utopia; an edited look at the past where we intentionally omit any of the grit that might really have existed.

Wallpaper manufacturers are selling 1970s style patterns; fashion and film are going gaga over The Great Gatsby; Tupperware parties are back; and the Instagram app was the runaway success of 2011. It’s the brand and trend equivalent of battening down the hatches, and in many cases, it’s jolted the minds of consumers into repurchasing products and benefiting sales.

However to do it frivolously can leave your consumers with a sour taste. When Muller launched its ‘wonderful stuff’ ad late last year, some criticized its blatant throwing together of 80s cartoons for cheap thrills, ridiculing its consumers as passive telly gobblers. Whilst we firmly believe in breaking category convention, without a believable tangible backstory, brands risk seeming phony.

And let’s not forget, keeping both feet in the rosy past prevents us pioneering for the new, improved and the innovative. Brands that can acknowledge their heritage but continue to be hungry for a brave future are the ones that will surely prevail.

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Greed is a force from the dark side, says Wybe Magermans.

May the force be with you on every billboard

Greed is evil. The intense and selfish desire for wealth or power is of course one of our seven deadly sins. Since the banking crisis, greed is seen as the main reason for the demise of the world’s wellbeing. From Gordon Gekko to Lehman Brothers, greed is a virus that is resistant to any ‘powers of good’. Looking from where I sit, greed seems also to ruin one of the great brands from the world of film.

George Lucas invented something that at one point saved the film industry: licensing. He famously waived his fee as a director for Star Wars and agreed to own only the licensing rights. Rights that 20th Century Fox deemed worthless. These same rights have earned George Lucas a personal wealth of $3.2 billion according to Forbes magazine. Mr Lucas attached the Star Wars name to games, books, television series and collectables. It’s estimated that Star Wars fans have spent an approximate $40 billion on merchandise since 1977. Me including, as I cherish my Millennium Falcon and another 40 odd figurines, indeed, Han Solo’s spacecraft has pride of place in my living room. So why is it then that Mr Lucas decides that he needs more?

Now, I don’t want to sound like a naïve crusty who is against capitalism and all accumulation of wealth. I work in marketing for goodness sake! It is actually not George Lucas’ wealth I am concerned about, but how he is slowly killing the Star Wars brand through overexposure and ill-chosen partnerships. Although it has been almost 7 years since the last Star Wars film was released, the brand is still very much around us. Feel the force of a mobile internet plan or join the rebellion in an electrical retailer. No doubt the Star Wars endorsement is lucrative for brands like VW, Currys and Vodafone, who recently all have used Mr Lucas’ creations in their campaigns. Yet I wonder if all these partnerships are right for the Star Wars brand? The deal with for instance LEGO is a great fit since both brands share a sense of imagination or creativity, but how do the values of Vodafone match with Star Wars? Seeing too much of a good thing can make it turn into a bad thing.

The power of Star Wars should enable George Lucas to choose his licensing deals more carefully. He needs to not only build their brands, but also his own. As recently demonstrated, a marriage can go sour. VW The Dark Side was a campaign for Greenpeace. It is a well-executed spoof on VW’s ad where a little boy is testing his powers as Darth Vader on a VW Passat. It highlights VW’s opposition to cuts on CO2 emissions. No doubt harming VW more than Lucasfilm, it can’t have been a positive contributor to the brand either.

Jamie Oliver also famously suffered from overexposure about 10 years ago. Books, TV series, mugs, calendars – his chubby face was everywhere. He reinvented himself by finding a purpose. His mission of ‘good food education’ connected with people and set him apart from the other celebrity chefs. Jamie himself would probably admit that he is not the world’s best chef. Yet his love for food can change the way people eat in schools and homes. Since 2002 his raison d’etre has been at the centre of what he does and gives the Jamie brand a magnetic north. In which direction is Star Wars’ compass pointing?

As any future films in the Star Wars franchise seem very unlikely, George Lucas needs to rethink his long-term strategy for Star Wars. Too many licencing deals will lower the exclusivity of the brand and will surely limit the premium he can command. Mr Lucas, remember: absence does make the heart grow fonder.

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They’ve got the Knowhow

KNOWHOW at your fingertips

We’ve been telling anyone who will listen about the success of the Knowhow brand that we created with our good friends Branded, who share our offices and with whom we often work. The trouble is, we’ve never been able to quantify this, beyond saying that ‘it’s doing very well’.

Well, now it’s all over the business press. Dixon’s Retail Group (that’s Curry’s, PC World et al) has announced a good performance in difficult trading conditions. It’s seen off the threat of BestBuy, the sale of Comet for £1 and, to an extent, the challenge of the internet. Shares rose 10% this morning on the news and there, in black and white, is the story that Knowhow has made a major contribution to its success. Bloomberg article.

To add to the positive news, Knowhow has also made some waves in customer service circles. We couldn’t be happier for them.

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Be personal, just don’t tell me you are, demands Wybe Magermans

Your national local store done well

Myspace
Youtube
Mymuesli
YourM&S

It’s been a marketing trend for some years. Brands have had an unstoppable urge to get personal or ensure they have a special place in our lives. Now Costcutter is launching another unimaginative version of this intimate marketing strategy.

‘MyCostcutter’ is their attempt to create a premium expression of a convenience store. It has the usual premium codes of black and a hint of colour, while the simple addition of ‘My’ in the name tries to convince me that Costcutter has become part of my local community. Either the Costcutter marketing department is naïve or it suffers from delusions of grandeur, to think that this name change makes it part of the local fabric.

Budgens does this locality message so much better. Their local, independently owned stores, bear the name of their original owners e.g. Jay’s Budgens at Brockley Road. Combining the authority of a recognised chain with the familiarity of a local shop owner.

Jamie Oliver’s Recipease stores work directly with local schools, providing cooking lessons. Their simple “Make Food Not War” message painted on their smashed window morning after the Clapham riots gave a brilliant personal voice to the store.

Across the Channel some discounters have become accepted and trusted retailers. This is helped by a North European sense of Calvinism, where being frugal is seen as a virtue. In the UK, discount stores still serve the bottom end of the market, but surely being clever with money also has its value on this island. There is a big job to be done in UK retailing, by ‘premiumising’ (to use an overused marketing word) discount stores, but trying to be ‘my friend’ might not be the way.

Come on Poundland, Aldi and Lidl, show that Costcutter is missing the point.

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Who is the ideal client? asks Wybe Magermans

Who will you do your best work with?

A prospective client recently asked us to explain, “How you can work with a conservative organisation like us”. It was a clever and perceptive question.

Finding new clients has always been difficult for a business that gets up everyday with the intention of changing the world and only looks for like-minded people to work with.

WMH works with an incredibly broad range of clients. We don’t work in one single market, for a particular sector with a specific size of budget. It is a wide spread of relationships that includes entrepreneurs, major brand owners, financial corporations and charities. What binds these together is that they are people and businesses that see the value of game changing creativity.

Working with entrepreneurs has the great advantage that you work closely with the person who lives and breathes the idea and makes every single decision to get that idea out there. There are no ‘design by committee’ issues – it’s generally a quick decision making process and no need for stakeholder management. Their energy is infectious and the whole agency team becomes their advocates.

With entrepreneurs it is personal and here lies a potential downside. Creative ideas are reviewed on the basis of “I like it or I don’t”, rather than rationally looking at what a market needs and judging if the creative idea taps into this effectively.

Global brand owners such as Unilever, P&G or Coca Cola may, sometimes, look at things too rationally. The racehorse that went into focus groups, often comes out as a camel (not that there is anything wrong with camels, unless you want to win the Derby). Yet the bigger corporations also have their internal entrepreneurs. At WMH we describe these, using Adam Morgan’s terminology, as ‘kickers and denters’. They are sometimes harder to find and you need an in depth knowledge of the organisation to spot them, but this type of marketer is not afraid to stick their neck out. The upshot of this is that when great ideas do get through to the market they are often of a magnitude that completely dwarfs most start-ups.

Retailers move significantly faster than FMCG owners. They don’t work only work on annual targets, or even quarterly, they’re driven by daily sales figures. They’re nimble and have the flexibility to adjust their offer quickly. Zara’s speed is legendary. They can copy a catwalk piece and have it in all their European stores within two weeks. For agencies, this brings the great advantage that retailers are able to trial something quickly in a store. “Throw it to our customers in Milton Keyes and see if it sticks”, is the mentality. Research is done in the real world, not in focus groups. The downside is that retailers can sometimes be fickle in seeing an idea through.

You might think that an agency’s most difficult task is to think of brilliant ideas. That’s the ‘easy’ bit. The difficult bit is finding the right client and understanding the way their business works and how to get good stuff though to fruition. When it works, from whatever client type, it makes all the hassle worthwhile. We get a buzz when a Dixon’s Knowhow vehicle goes by, when we see someone post a new strapline for Sainsbury’s Basics on Facebook or when we see a Barclays logo on a Boris Bike.

The truth is, most clients are conservative and risk averse. It’s when they are excitement averse we worry.

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It’s a Grange world, says Richard Williams

Making Britain modern

I was greatly touched by the Kenneth Grange exhibition at the Design Museum. On show are some of the products that seem to define post war British life.

From the first Venner parking meter, the Kodak Instamatic Camera to the InterCity 125 you could be forgiven for thinking this is just a nostalgia trip to a time when life was simpler. A time when parking fines were a deterrent rather than a way of funding council coffers, when you just took holiday ‘snaps’ on the family’s Spanish package holiday and it was ‘The Age of the Train’. That would be to grossly undervalue the exhibition.

Ken Grange’s mark is always one of simplicity, where function follows form in a beautifully elegant and understated way. There’s no ‘show’, nothing’s extraneous or there for decoration. What joy, in a world where brands feel they aren’t working if they don’t shout at you.

Many of Grange’s designs come from a period of post war austerity where British manufacturers were battling industrial unrest and selling to an audience without much expendable income. Product design was not greatly valued, but for those who had the foresight, the benefits were tremendous. Kenwood mixers became the default purchase for those who could afford them and Kodak enjoyed immense popularity through his work.

So why do I feel nostalgic? Perhaps it’s because Grange worked in a time when you didn’t have to win work through pitching and endless procurement processes. People saw his work, trusted him to do a brilliant job and then allowed him to deliver what he did best.

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Zip away the zapping, by Craig Kirk

The time is 23.40 and you’ve got in late again. To make matters worse it’s a Thursday and you just missed Dimbleby & Co. putting to rights the essential political discourse of the week. A spam sandwich and bed is all that’s left. If only there were a place where you could rewind TV and watch the things you like at a time to suit you. Throw the video recorder out the window and get your laptop out, ‘make the unmissible unmissible’. For once the internet isn’t just full of pornography and over rated bloggers (ahem). Cue BBC iPlayer.

BBC iPlayer, for those outside the UK who don’t know or can’t get it, allows busy folk to cherry pick the programmes they want at the time they want via the internet – anyone for the 10 o’clock News at 2am? The BBC was the first major UK broadcaster to offer such an application and with plans to open the entire BBC archive to keep on the heels of Channel 4’s OD service, the individual has never been in a better televisual position.

Recently the BBC broke a new record with 162 million requests on iPlayer in one month. This is quite remarkable. The way they carry on, you’d think that Sky was the UK’s most important source of broadcasting nowadays. The Sky+HD interface has deliberately relegated BBC 1 to position 12 in an attempt to make the next generation think the BBC is just another channel, but these figures show that the national love affair with the BBC is very far from over, in spite of a largely critical press.

As competition for on demand television and channel loyalty becomes ever more dog eat dog, BBC iPlayer is, once more, leading the way by pushing its mobile device equivalent to phones and iPads. Even top brass from Microsoft have defected to help the campaign.

At a time when the license fee is perpetually questioned, does this new swathe of internet and mobile accessibility allow the BBC to lead the way, as it did with radio and terrestrial television last century and merit the fee through innovation? Can it continue to compete digitally with commercially funded outfits? Time and audience share will tell, but it’s acknowledged a new key proposition, that audiences and their watching habits have changed for good.

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The Perfect Partner

The amazing images by Mike and Pedro, who are represented by DMB Media

We count ourselves very fortunate to have worked with some of the most outstanding talent that exists. From product designers Seymourpowell and ‘eating designer’ Marije Vogelzang to interior designer Martin Brudnizki and typographer Redge Johnson, to name but a few, we’ve enjoyed hugely rewarding partnerships with exceptionally creative people.

And the big buzz in the studio right now? We’ve just teamed up on a project with one of the most remarkable creative forces in photography, Diver & Aguilar.

Currently based partly in Spain and partly in the UK, photographer Mike Diver met fine artist and retoucher Pedro Aguilar five years ago and formed a partnership that has seen them work with an awe-inspiring list of clients, including Nike and GQ, and produce extraordinarily powerful and award winning imagery. See a short documentary here on the Magnum ice cream shoot that got nominated for Cannes Lions this year.

We’re working together on what’s going to be a fascinating and complex shoot. It’s a project we can’t talk about just yet, but to say we are excited would be an understatement. Watch this space……

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