Thursday 6 November 2014

Phone- box conversions to mini-shops and cafes

                                       

                                                          pics: Brian Moore, Brighton

A Brighton-based charitable trust, Thinking Outside the Box supports homeless projects by giving a percentage of its earnings from the retail uses of converted phone boxes, according to the Bradford Telegraph and Argus.

It has the support of Miles Broe Architecture: "The K2 and K6 red phone boxes are iconic pieces of both engineering and architecture. The aim of this proposal is to redefine their usage to suit modern day needs and requirements without compromising their external appearance on the street scene."

The application is part of a scheme to convert a number of disused BT kiosks into small retail outlets, selling products such as ice cream and coffee.

Mr Broe said: "The formula is simple and Miles Broe Architecture brings their planning experience to bear on rolling out these proposals nationwide.

"Working with the charity Thinking Outside the Box, British Telecom and registered charities to safeguard many dilapidated and misused listed phone kiosks, the charity will provide training for jobs within the programme."

Projects were granted planning permission by Brighton and Hove City Council in September last year (see pic) followed by Plymouth and Nottingham, with planning permission currently awaiting approval in Bradford..

A possible sponsorship opportunity for the mults?

Wednesday 5 November 2014

Your customer needs you, specifically...



Driven by the savvy consumer’s demand for personal attention, expressed in shopping behaviour, the retailer completes the consumer-shopper-retailer need-set in wanting 1:1 treatment.

Even if the retailer forgets, suppliers have to remember that their offer, tailored to the retailer’s business needs, has to have inbuilt characteristics designed specifically to meet shopping and consumption requirements.

A supplier cannot even get close, without starting with a deep understanding of what makes this, not any, consumer special.

In the ‘old days’ i.e. before 2008, we used to study the needs of the consumer with the aim of segregating ‘our’ consumer-base into six manageable consumer segments, in turn driving some token tailor-making of our consumer-offering. This we adapted to produce an acceptable bundle for ‘our’ retailer, leaving the retailer to look after the needs of ‘their shopper’, in the aisle, an area increasingly off-limits for suppliers.., often by a combination  of desire and design…

As you know, this has all changed… (if you don’t think so, give me a call…)

The savvy consumer now wants real-time, demonstrable value-for-money, and as a shopper in the aisle, uses mobile-access to comparisons at all levels in order to ensure they are not missing a better-tailored trick available elsewhere, and votes with their feet.

A successful retailer, despite unprecedented distractions, recognises this consumer-shopper as the real starting point for developing an offer-request that reflects the combined needs of consumer-shopper-retailer. Suppliers neglect this new appetite at their peril, obviously ensuring at the same time that this highly specific treatment of the retailer meets the financial needs of the supplier’s  business.

Thus the supplier has to tailor the offering on three levels, per consumer, and find ways of making it work financially.

Unfortunately, at the last count, statistics indicate the UK’s population currently stands at 63.7m people, your new KPI for tailor-making…


Tuesday 4 November 2014

Can hugging products make you feel like buying them?

As more of us shop online, new research by Saïd Business School, University of Oxford University, underlines the importance of physical interaction with products and shows how making an affectionate gesture towards a product can increase our attachment for it, and our propensity to purchase.

The authors suggest that the mere execution of an affectionate gesture towards an object can generate an emotional attachment. This attachment is most clearly seen for those products with humanlike characteristics and is strongest in those people who feel lonely....

Some product manufacturers and marketers are already putting some of these ideas into practice, to encourage a greater emotional and sensory connection with their products and services.  For example Nokia has developed technology in its mobile phones that allow users to squeeze the phone to send ‘virtual hugs’, increasing the user’s bond with the product each time they do this. Even those smart phones which encourage swiping rather than tapping are building valuable bonds between the consumer and product.

Application for enhancement of the buyer-seller relationship
For those NAMs that like to build on good marketing ideas, and given the humanlike characteristics of most buyers, we have researched how the same hug-approach might be applied to improving buyer-seller relationships.

A recent article in The Observer points out that the male-on-male embrace is becoming increasingly common among politicians, and men in general. But for many it’s tricky to get right. The article gives intimate detail ref political applications but we felt that this hugger’s list might best suit our readership:

A hugger’s guide for NAMs

1. The classic 
Clearly signposted, mutual, pleasant. The hug of a friend you’ve just winched from a crevasse, or someone you met six pints ago who has laughed at your jokes.

2. Touching distance
Half-consensual, the archetypal political clinch. It says: ‘I’m fine with this in principle, but let’s be clear that nothing surprising’s going to happen after pudding.’

3. Red-carpet bromance
‘Love does not consist in gazing at each other, but in looking outward in the same direction,’ according to Antoine de Saint-Exupéry.

4. ‘Wassup bro’
With legs well set you vertically clasp hands and lean in for a manly rub. Warmly informal without being too intimate, but not one for grandfathers.

5. ‘Oh, right’
Innocuous handshake develops into an unwonted yank ’n’ pat. The most likely to occur in a buyer-seller environment, yet also the most likely to turn into a kiss.

Given this last reference to kissing, and wishing to generalise this kamtip in terms of gender, our additional research revealed the hidden complexities involved in kissing the buyer

Kissing the buyer: X, XXX or XXXXX?
Given the increasingly cross-cultural mix, even in buying offices, it is obviously important to try to comply with local ‘norms’ when deciding to add ‘puckering-up’ to your selling repertoire.

A great article in the Economist gives the detail (and 91 hilarious comments). For instance, at this stage it might be wise to avoid all invitations to transfer to your French affiliate given that social kissing in France is a cultural labyrinth.

This map, created by Radical Cartography, on the Jaunted website, shows how many times French people in different regions typically kiss one another when they greet.


When it comes to buying and selling, offering a cheek can become most fraught with danger.
Some rules of engagement are obvious: one would never peck on first introduction, for example, no matter where in the world you were. But it is also best not to appear too stuffy or aloof. So with continental contacts, you can probably relax into the informal greeting pretty quickly. On the other hand, Americans, apparently, would much prefer to go unkissed. 

British buyers and sellers, as ever, straddle the awkward transatlantic space, probably only think of kissing once they had been to lunch a few times, and then only if they had managed to talk about something other than work…

All in all, the Americans probably have the right idea. Everyone knows where they stand with a firm handshake, or even a hug?

Hat-tip to Anette R. for the pointer to The Economist

Sunday 2 November 2014

Lidl’s giant step for UK discounting?

                                                                                                                              pic: Liverpool Echo

According to the Liverpool Echo, Lidl are to take over Liverpool's historic Lewis's Building, once one of the city’s landmark stores.

But having been empty for several years, it is now in line for a makeover by the chain. The ground floor will be taken up by Lidl, but much of the rest of it is still being developed as part of the Central Village apartments complex.

If Lidl are truly planning a move to large-space retailing, the issue will be whether a full-range offering, complete with overheads, will allow the discounter to operate the same low-cost business model, or will it have to compromise its pricing advantage over major mults?
(or is this the first move in opening a Kaufland Hypermarket in the UK by Lidl's sister company?) 

Watch this space, literally…

Friday 31 October 2014

Halloween Pepsi-can dressed up as Coke went viral


Last year a Halloween themed Pepsi ad created by Advertising Agency Buzz in a Box, Brussels posted on Ads of the World's Facebook page went viral reaching over 300,000 people on Facebook alone in just a few hours. It also generated lots of retweets on Twitter and Google+ besides Ads of the World itself

A great illustration of how a gentle poke at a competitor can optimise social media.

However, the alleged response by Coca Cola was swift, equally humourous and must have amplified the initial impact, at least via Linkedin.

But the real genius of each advert lies in the ambiguity of the message, each advert causing readers to ponder on their possible meanings, with their combination adding to the 'confusion', thus stimulating the urge to share...

The result being that the category received much more reader attention, and pass-on value than more conventional adverts for such familiar brands might otherwise have achieved.

Incidentally, even if Coca Cola did not produce the response, perhaps they should have...

A heroically scary weekend, from the NamNews team!

Thursday 30 October 2014

Tesco are not 'serious fraudsters'

Tesco is simply a train that moved too fast, causing some of the wheels to fall off.....

The real issue is the opportunity this high-profile case provides for the SFO to attempt to restore a reputation that has been tarnished by a series of high profile failures in recent years. This relatively clean case of naive manipulation by amateurs, gives the SFO the means of demonstrating its ability to investigate and penalise corporate wrongdoing, secure in the knowledge that Tesco, or its management, are unlikely to retaliate in the case of possible over-enthusiastic application of the letter-of-the-fraud investigation process, unlike a recent SFO investigation....

The disruptive impact on the day-to-day conduct of the Tesco business should not be underestimated, given that the recent Deloitte investigation, albeit a far less comprehensive project, allegedly involved more than six million documents with 18,000 invoices reviewed and 700 scruitinised in detail....

Apart from the inevitable parallel but internal reviews by other multiples, 'just-in-case', many suppliers are already conducting internal reviews to assess any possible impact on the integrity of their trade investment process. However, it has to be said that in the main, these reviews will hopefully be in private, the only issue being relationships with internal audit-control, with NAMs having to explain how sums were authorised and paid in advance, possibly 'on a nod' in terms of promises of a promotion in the following year, all with the benefit of 20/20 hindsight...

Regrettably, whilst the consumer ultimately benefits from lower shelf-prices, the SFO investigation output will also result in a media-fest pointing out the 59 ways in which brand-owners incentivise retailers to persuade the shopper to buy more...

Finally, unfortunately for Tesco, this is not just a UK issue.  Some Tesco shareholders live in the US, a country where people that feel they have been wronged, litigate, and Tesco shareholders will be no exception. Their approach will be in contrast with the UK, where in such cases it has been customary for the authorities to issue a reprimand, draw a line, and move on...

Any output from the SFO investigation will probably be used as a basis for shareholder class action in the US, in a search for compensation. In turn, any such result in the US courts will probably roll onto the UK stage, encouraging UK shareholders to seek similar compensation.

Overall there will be a change in supplier-retailer relationships, as all parties move to numbers-based assessment of cost and value, and the savvy consumer's demand for demonstrable value-for-money rolls back up the supply-chain.

Suppliers are now in a position to make or break Tesco, but it is imperative that any help given should not be unconditional...

In other words, Tesco and the SFO are presenting an unprecedented opportunity for suppliers to elevate the NAM-Customer relationship to a new level based upon fair-share dealings, where numbers count, and KPI achievement becomes the ultimate basis for retrospective performance-based reward...

All else is detail...

Wednesday 29 October 2014

Aldi Ireland: joining the profit-dots in Aldi's UK latest Accounts

A recent article in The Irish Times indicates a possible approach to estimating the profitability of Aldi Stores in the Irish Republic.

Checking the latest accounts filed by Aldi Stores Ltd. at Companies House, it would appear that they include the UK & Ireland business of Aldi for the year ended 31st December 2013.

On Note 7, page 21 of the Aldi Stores Ltd. accounts, details are given of the tax charge for 2013:
  -   UK Corporation Tax at 23%         £51.7m
  -   Overseas tax                               £10.2m, (say €12.9m at current rates)

We have taken the corporation tax assumption that ‘Overseas Tax‘ refers to the Irish Republic, together with an estimate of Aldi Ireland turnover for 2013 and reached the following conclusions:

- Given Ireland's Corporation Tax rate of 12.5%, this implies a net profit before tax of €103m in 2013 for Aldi Ireland
- Taking €850m as an estimate of Aldi Ireland turnover for 2013, this results in a possible pre-tax net margin = 12.1% i.e. €103m/€850m  x 100

If we have joined the right dots correctly, the above guesstimate obviously raises issues ref general retail profit levels in Ireland, in what is deemed to be a highly competitive market.

Moreover, if the Tesco crisis fall-out spills over into Ireland, and combines with US/EU moves re Inverse Taxation, the resulting spotlights on the profitability of businesses operating in Ireland could eventually challenge supplier profitability.

You obviously know your sales and net profit margins on your business in the Irish Republic, and how they compare with the UK business....

The above analysis suggests that perhaps your forward projections re the Irish market contribution to your UK & Ireland business might benefit from a risk re-assessment?
                                  

You always miss 100% of the shots you don't try...

 From an idea by Wayne Gretzky, via Antti Ritvonen and Lars Poulsen