Friday, 2 October 2015

Click, click, click. Now, now, now!

In the XXI'st century customers expect to instantly purchase what they desire, what's have been advertised or recommended by a friend on social network page. More often, they expect fast and convenient delivery. All to enjoy the product as soon as possible. That's why the websites are built to ease the process of purchase and product experience. Therefore I wonder why it's so hard to buy&watch a movie that was already in cinema*, but why it's so difficult to find a decent, original, legal website where I could purchase and watch instantly? *I understand that producers still want us to go to cinema (all the popcorn, drinks and shopping are all great upsale&cross sale strategy). Recent case of the movie "Bogowie" which was widely advertised, recommended by many friends on Facebook, awarded in Polish and international contest. After being showed in cinemas, it was sold as a booklet with newspaper. And now it's time to go online! The same case goes with the movie "Obywatel", which is still unavailable for legal watching online. It's time to prepare infrastructure to distribute your content, otherwise illegal sources will keep winning...

Aquafresh should produce chewing gum

I recently came across great marketing campaign by Aquafresh
The GlaxoSmithKline-owned toothpaste Aquafresh introduces a mascot in its new TV campaign. TBWA\London created the spot, which features a superhero called Captain Aquafresh who bats away sugary food. - source: http://www.campaignlive.co.uk/thework/1303847/
Captain Aquafresh is a great superhero, who shows that the toothpaste can rescue from sugar included in snacks, drinks and other meals. I started thinking about this product positioning, and I believe all the toothpaste brands - Aquafresh, Blend-a-med, Elmax - that indeed, they are here to help us and protect our teeth. Therefore, it is understandable that we trust them in this issue. Why don't they produce chewing gums? I wonder. My considerations and thoughts include:
  • People chew gums to refresh their teeth - some after meal, some just because they would feel more comfortable at the meeting or event.
  • People chew gums during day, because there is no opportunity or environment to clean teeth using toothbrush and toothpaste (some would love that!).
Therefore, isn't it obvious that people would choose the chewing gum from the same company they use toothpaste? I am not a big chewing gum fan, however, if I had a chance to buy chewing gum by Aquafresh, I would definitely purchase it quite often.

// Bigger picture // Is your company or brand doing something that could be extended to new areas, markets, audience? Can you think about new ways of selling, exploiting, delivering?  

// Update // Aparently, Aquafresh is experimenting in some markets with this idea: http://www.wakawomen.com/2010/09/23/review-2-aquafreshs-new-gum-aint-doing-it-for-me-baby/

UpSale in television market - case of TVP and TVN channels

It is a struggle for any business manager to recognize the competition - are they my partner or potential competitior? Companies fight on one ground, and on the other cooperate very effecively. The case I am looking at is the Evening News in two TV stations in Poland - TVP and TVN. Learnt from American TV to have an interesting guest at the end of the News, start the conversation on hot topic and then... let's move to other station - TVP News and TVN News. It's natural and understandable, the discussion moves to the dedicated informational channel. However, I do not watch this channel on regular basis, therefore I do not know where it is on my cable television. Just recently I missed half of the interview with a prime minister stumbling through the channels. Why don't they provide me with channel number information, as they often show in United Kingdom stating that on: UPC - channel number: XY, Vectra - channel number: ZY etc. Noone can change their TV channel list, so it is a give (some minor changes throughout a year). Providing your new, potential customer with address to your show/shop/point of sale is natural and easy. Don't be affraid, let customer find you. To summarize, I believe that TV shows (news, sports etc.) should provide us with more specific information if they are redirecting us from one channel to another, that we get ther on time to watch commercials from which they have an income. Why TV companies might not share channel information of other companies channel listing?
  • they have their own TV platform to which they want bring more subscribers, showing that this channel is available on A, B, C cable station might be seen as disadvantage in long term strategy
Altough...
  • Shouldn't business unit fight separately for their income? If so, the TV News should fight for any viewer, no matter what's the source (in case of TV cable operator)
  • TV channel survives thanks to commercials, not subscribers (very few cases) ergo should fight via publishing where to find it
Some companies use competition as a platform to drive sales and customers to their point of sale. Great example are stores that buy advertisement next to their competitior stor and show on billboards: "Our store is just 3km further", "Go extra 3km to get even lower prices". And those campaigns are used by the biggest (Auchan, Carrefour, Real, Tesco and Media stores as well - Media Markt, Saturn etc.).
"Bring me a potential customer and I will turn him into a loyal customer." - Crafty Sales Person

Why did you come to our shop, when you can shop online? Case study of Matras bookstore

My family decided to go on a weekend trip away, last minute. So we bought a plane tickets on Monday for Saturday flight. Great! As it was a new place, I have decided to go to bookstore and buy a city guide. Easy, simple and positive experience ahead of me, I thought. Forget about the pain of going to shopping mall, parking and walking kilometers (miles), exploring to finally finding the bookstore - Matras! I walk in, and I am already lost - no signs of sections. Nevermind, I ask the sales person who welcomes me and directs me to the huge bookshelf of travel books (which are not sorted in any order). Although there are only 3 customers and 2 sales people, none of us (customers) is being disrupted (I know that some people like to browse in bookstore - but I was on a task with an aim!). Because I do not wanted to bother those sales people, I headed to computer and search for the city guide just to get an impression of the book I am looking for (2 findings - yellow and green). Great! That allowed me to search faster, and I managed to find yellow one. What struck me was the price:
  • Offline - in store was 27,00 PLN
  • Online - on computer in store was 20,00 PLN
I know, 7 PLN (2 euro / 3 USD) is not a big thing, but I love to save and use promotions, so I asked the sales person (SP) if I can buy the book with the online price?
SP: No, the online price is for those shopping online.
Me: But I have this book in my hands and I want to buy it right now, right here for the lower price.
SP: It not possible.
Me: So if I go online now, and buy a book via website I will have a lower price?
SP: Yes, but it won't be this book, they will send a new copy from the distribution center.
Me: Hmm...

Analysis Another situation in just few days where I come across situation "Please leave offline and go online". I have put arguments and thoughts in post about Media Markt. Nevertheless, I came up with few more points to discuss this situation:
  • Shouldn't the price be lower in store (they already paid for mass transport)? No, if they want to close the bookstores and make us buy mainly online.
  • The sales person role is to make a sale right there, right then - make an effort and understand the situation, go extra mile, consult and find a solution - you have a customer that you may lose, if leaves unsatisfied (someone is making a fool out of me here!)
What's the future of bookstores? That's also a market that is facing difficulties and changes, due to online shopping of traditional books, but also because of the development of ebooks, audiobooks that can be downloaded and played/viewed on any electronic device. My perspective on the future of bookstores is they will be a places:
  • small for hosting cultural events with writers, guests, celebrities
  • coffee/tea book-rental shops where books will be "value added" to the drinks
  • electronic shops with tablets/ereaders (kindle etc.) with sales people, who will advise on books that will be instantly purchased and downloaded or printed in the bookstore
  • Print a book store with one copy of chosen book and the fast, efficient printer for sold copies
  • type-oriented bookstores, we have scientific, music bookstores - maybe new types will come up (for kids, biographical,...)
I love reading, but recently I moved to kindle software via kindle and smartphones (synchronized), and shop via amazon and other ebook stores... But still, bookstores have some magic that should be discovered and maintained. However, some of them turn into supermarkets... and after those I will not cry. I will cry after one small in Stuttgart (Germany) with English-language books only, with great tea and coffee...

Media Markt - leave offline, go online

Just after Christmas I have decided to go to Media Markt - well known RTV AGD and all other electronic devices supermarket branch. I am usually online buyer stumbling for promotions and special offers, but "End of year SALE!" brought me to this place. It is strange place - it's "offline store" where you can get only things that are actually there - no other model, just these, at this price, right there, right then. I overheard a conversation of Customer (C) with Sales Person (SP):
C: Do you have a plastic case for iPhone 5?
SP: No, we don't.
C: Will you have any?
SP: I do not know. I don't even know if there is a plastic case for this phone. We have deliveries every Friday so maybe they will come.
C: Ah, ok then.
SP: Please visit our website www.mediamarkt.pl and choose our store to see if we have it in stock, that you could come and buy it.
C: Ah, ok, thanks for that.

I know that the electronic devices shops are in huge trouble with the online shopping trend and are fighting for a share in new market, using their existing "offline stores (read: museums)" as the last marketing stop, before closing them down. It's hard to advise and predict of what will happen to those brands:
  • going online is opening the brand to great, big market
  • however, online market is in 80% focused on PRICE competition (with comparison services such as CENEO)
Will those brands manage to build online community that will be attracted with
  • special promotions sent via newsletters
  • loyalty programms
  • some activities (games, addons, gifts)?
Or we will come to the place where:
  • there won't be any retail shops ?
  • we will have only PRODUCER shops (such as we have now with Apple and Samsung, Miele) ?
  • we will have test shops, where we could see the product we checked online and test it?
  • all electronic devices will be sold with a service from 3rd party provider (such as we have with telecommunication companies - T-mobile, Orange that are selling mainly phones plus some services, and have full display of the phones, tablets and laptops)
It is interesting time for being in sales in this market in the strategic position and deciding which direction to go... ... Nevertheless, until the market orientation shifts:
  1. You have a customer coming into your shop, which is a great accomplishment nowadays.
  2. The customer chose YOUR shop and made an effort to drive, park and shop around
  3. PLEASE, do not send him to the website - it just makes all his efforts and the trip - POINTLESS.
  4. They will not go to your website, as you have just make a laugh at them and humiliated them...
  5. Take care of them, take contact, email/phone/text them answering their request
  6. Make an effort - they did that for you!
  7. Respond to trust the customer showed to you.
Kindly, Sales Mario

Loyalty Programs - case of Orlen Oil

Company background Orlen is polish national oil company, that has the biggest petrol stations chain in Poland. Case study Orlen, as most of the petrol stations companies (Shell, Statoil, BP) runs a loyalty program, where customers gather points on their loyalty cards by purchasing petrol and other products at the stations. Current Analysis I am very good customer, I get involved in the loyalty programmes, always looking for "extras", "promotions", "rewards" for being loyal. Therefore, I have decided to fill up my tank for a year mainly (if possible) at Orlen stations. I have a loyalty card which I use each time. After almost a year: My current points: 11 823 By driving regulary to work and once a month further trip - I get about 1000 points a month. What can I get after 11 months of loyalty? One of these:
  • 1 CD (Amy Winehouse, Rihanna)
  • 1 audiobook
  • Umbrella and a hat
  • Two toy cars
  • Thermo cup
  • Coffee 250g
  • 10 hot dogs
  • 10 coffees
  • 11 soups
  • Charity projekts
Breakthrough analysis After a year of being regular and loyal customer, I found myself dissatisfied with the rewards I am getting. They are of very low value (in terms of money or satisfaction/experience). This makes me analyse other companies loyalty programmes if they would be more rewarding. I believe that Orlen should reconsider the loyalty system that it would reward regular drivers, not only big trucks drivers, who I suppose get good rewards. Ideas and recommendations
  • Points scale - this should be recalculated
  • Rewards appropriate to the place (while travelling) - special offers on car music, games for kids, car accessories
It's great that brands are trying do build loyalty programmes and reward customers for being regular, loyal. However, I believe that these rewards should be in touch with the amount of money customer spends (at Orlen people spend a lot on petrol). Furthermore, there should be more competitions or bonuses. Maybe it's time to expand loyalty programmes into building brand community, social network of people around a brand. Looking at Orlen and it's marketing, sponsorship activities, there is a big potential to build a community around a brand. Example: Orlen is sponsoring the Polish Volleyball Team and National Volleyball League. I am a big fan of volleyball and Orlen customer. But, other than one competition during the summer, I have not felt the connection between those two "events/situations". This could be easily accomplished if connected properly.   Orlen has a huge base of customers - loyal, regular, trusting. Why not engage them, reward properly, thank them, encourage to engage in Orlen's actvities? Build community of fans.

Costa Coffee new service

Recently my company had marketing campaign where there was idea to give voucher (one-time) for coffee as a gift for finishing an online task by our customers on our e-learning platform. Partnership idea: Purchase vouchers from coffee place which has most branches around the country. Costa Coffee was selected. Challenge: Costa Coffee is not ready technologically (IT system) to handle such task. Obstacles:
  • Vouchers generated by Costa Coffee can not be "checked" in the system when presented by customer - therefore if someone prints 10 vouchers, they can easily use them in any Costa Coffee (rather than 1 voucher for 1 customer - one-time)
  • Company takes the risk that someone will use the voucher more than once (the financial summary will be made after 2 weeks - vouchers use will be counted, so if a customer copies a voucher then they will use it as many times they wish, as the one-time feature is not implemented in Costa Coffee IT System)
Suggested solution - step by step (ideal scenario):
  1. Company orders 100 vouchers for one coffee each (Medium size - Latte/Americano/Mocca)
  2. Costa Coffee produces 100 vouchers
  3. Each voucher has it's individual characteristic (numbers, QR codes, codes) - something that can be scanned/inputed into the IT System and the casher/till will record it, that it can not be used more than once (one-time vouchers)
  4. Costa Coffee sends the file (Word, Excel) with these vouchers to the Company
  5. Company distributes it to its customers (via email, postcard, thank you note, or as we would do - on our e-learning platform)
  6. Company pays upfront for the vouchers (we know the budget straight away)
  7. Customers go to Costa Coffee and redeem voucher at the cashier/till for a coffee
  8. They enjoy the great coffee plus think positively about the Company
Business Case:
  • Salespeople giving out vouchers to their customers
  • Vouchers used in the marketing campaigns as the "thank you" (for example after downloading their ebook, or after first purchase)
  • Costa Coffee has wifi connection - why shouldn't we invite our customers for webinar (web conference, online training, e-learning) while drinking coffee in Costa Coffee ?
  • To cheer up a friend who is in different city (or travelling?) - wouldn't it be a nice if I could text (sms) my wife while she's on the business travel - text #have a good day - start it with a cup of coffee at Costa Coffee - waiting at the train station for you - just redeem this voucher #VOUCHER NUMBER - Love M.
I strongly believe that technology can create new ways of doing business and easily address such scenarios as I presented to you. Connecting people with things they love.