Fragmented Media, free....

Ever wondered why your above-the-line adverts may be failing to impact the apathy...?

The above news-stands offer 13 different segmented titles outside Southwark Tube station in central London...

Still, hopefully typical commuters restrict themselves to one title per day.....?

Bargain on-shelf brainteasers

According to a study of shopper-reaction to complex price-deals, the range of sizes and prices of popular foods makes finding the best value pack almost impossible*.

Whilst some shops may have confidence in the mathematical skills of the increasingly savvy shopper, the overall reaction to complex offers has to be suspicion…a big negative impact on brand equity…brand or private label..and given that pricing is deemed to be the responsibility of the shopkeeper, it is they who will suffer the fallout…

*If in doubt, why not try following value-quiz..?

Click diagram to enlarge

Sainsbury’s Heart-Shaped Cucumber For Valentine’s Day

There is a whole new way to show your love this Valentine’s Day with the launch of a Heart-Shaped Cucumber from Sainsbury's, priced at £1 per portion.

A statement from Sainsbury’s said: “Perfectly shaped once sliced, surprise your loved one with an at-home spa treatment complete with a relaxing face mask or play Aphrodite - Goddess of Love by making a romantically dressed Greek salad”. A limited number of the cucumbers will be harvested this year, although Sainsbury’s said that other seasonal shapes are planned for later in the year. Elaine Young, a spokesperson for the chain said: "Valentine's Day carries such an element of surprise we hope this year's fun love cucumber will get hearts racing, whether it's in a romantic packed lunch or a lovingly prepared salad."

Pre-used cars at Tesco

Press reports indicating that Tesco are about to extend their franchise into the sale of second-hand cars are generally relating the initiative to the stereotypical behaviour of ‘Arthur Daley’ and other old-fashioned car salesmen, and are tending to echo the traditional car-trade’s semi-sarcastic reaction to the news.

However, fear would be a more appropriate emotion…

As all Tesco NAMs appreciate, Tesco are seriously restricted by competition legislation from extending their share of food categories in the UK. This means that in order to sustain UK growth their main focus is on non-food, with a passionate interest in shopper satisfaction. Following similar moves in the pre-owned games category, Tesco will elevate the sale of second-hand cars to new levels, in terms of quality, reliability, value for money and trust. And all of this aimed at building repeat business.

Additional car-category ‘no brainers’ will probably include BOGOFs, His ‘n Her offers, car insurance, easy payment schemes, servicing and tyre-replacement…

And who knows, eventually a move into new-cars and even private label?

‘Doom & Gloom’, an opportunity for reappraisal?

Latest reports of consumer confidence reaching a 20 year low should not come as a surprise, given 4 years of warning signals to those not in denial…

Whilst many suppliers are waiting for patterns to emerge, or even a return to normal, proactive BAMs are busy dealing with the here and now, as business managers factoring market conditions into their trade strategies.

For those who are realistically optimistic, these unprecedented market conditions provide unprecedented opportunities to reappraise market offerings and go-to-market strategies.

Starting with savvy consumers unwilling to outsource their decision-making to either brand owners or retailers, ever again, it is vital to reappraise the brand vs its competition through the eyes of a demanding consumer wanting demonstrable value for money and unwilling to settle for less.

Next it is vital to acknowledge the financial pressures on all retailers, now coming through in latest annual reports, and worsening….

Again, it is essential to evaluate your competitive appeal in terms of the financial impact of your offering on retailer profitability, and be able to quantify and demonstrate that effect using latest available data.

With the right attitude, ‘Doom & Gloom’ is simply a label for real opportunity…

Blacks Leisure & Walmart, joining up bigger dots?

An article in The Telegraph indicates that Home Retail Group (Argos & Homebase) had considered bidding for Blacks Leisure.

This was probably seen as a way for Home Retail to expand through acquisition, thereby warding off predators…i.e. Asda taking over Argos

Viewing this in a more global way, some of the bigger dots begin to join up:

• Asda is underperforming vs Walmart on ROCE and Net Margin, thereby diluting the company’s global performance
• Asda need to scale up significantly in order to match Walmart’s performance
• Acquisition of another grocer (JS/Morrisons) is ruled out by competition legislation
• Organic growth is limited by planning legislation
• This leaves moves into non-food, i.e. by acquisition of Home Retail
• ….. with access to Blacks Leisure (& Millets) a bonus morsel?

Time for suppliers to check out possible prices and terms disparities, just-in-case?

Tesco to open Beauty Salons

According to Marketing magazine, the strategy includes beauty services such as hairdressing and manicures, and an improved range of premium beauty products.

The salons will look like separately-branded concessions, called Your Beauty Salon within Tesco Extra stores and offer haircuts from £12.50 and leg waxing from £10, among other services.

Following trials of nail-bars and eyebrow threading in 4 stores, the "shop-in-shops" will open in Leicester and Chesterfield next Monday (31 January), as the supermarket makes inroads to the "huge opportunity" offered by beauty.

Implications:

A no-brainer for Tesco (think about it), this is a serious breakthrough that raises important issues for suppliers, not least of which include prices and terms disparities between salon and retail channels.

For Tesco branches, it will be important to meet/exceed current store sales and profit per sq ft. KPIs in their salon area, so every little help from suppliers will be appreciated…

Finally, a long-awaited opportunity for suppliers to convince traditional UK hairdressers that a retailing opportunity exists in beauty salons?

Time for hairdressers to request some relevant training from relevant suppliers, fast…

The Offside Rule and Offside Trap in Football

Given the current controversy, it may be helpful for KAMs to have a precise definition at top of mind…?

The above is offside because the red number 10 is in front of all of the defenders, leaving only the goalkeeper back which isn't enough players to play him onside. This position may have been forced by the defenders moving forward in what is called the offside trap.

A player is not in an offside position if:

- he is in his own half of the field of play

- he is level with the second last opponent

- he is level with the last two opponents

More diagrams and insight