Put em under pressure…

We are delighted to announce our client Ricesteele, Rubex product sponsorship of Put em under pressure the new launch RTE sports quiz where pundits take on sports stars in a fun contest hosted by Grainne Seoige.

Pictured on set during recording of the show in RTE (left to right) Garrett Kinsella Account Planner KDNINE, Grainne Seoige Presenter, Bernard McCormick Marketing Manager Ricesteele and Geraldine O’Leary Commercial Director RTE Television.

We predicted a riot

 

Whatever the motivations behind the current chaos in Britain it would be in our considered opinion unwise for Ireland to think that we are far away from similar conflict.

In fact in our KDNINE insights booklet for 2011 (available free on our website) we predicted large scale civil unrest as early as November last year.

This was based on the growing anger we encounter in focus group research nationwide particularly among younger people.

The potential for conflict comes when this anger is channeled around an event or sparking point. The general sense of injustice is growing and the Irish state apparatus is rightly or wrongly seen to be firstly concerned with defending the rich and the economically disastrous status quo.

What is particularly disturbing from a marketing point of view in the UK is that the anger is often turned against certain brands who are seen to represent big business or globalisation.  So in some ways the riots are an attack on Brands and what they represent. So when the Irish rioters approach perhaps best not to hide in Starbucks or AIB.

Management tools

Some sites we like aimed at making us all better managers and more successful corporate citizens.
The good news is they are free so how good is that.
Visit manager-tools.com for weekly pod casts to make managers more effective.
Then try positivesharing.com for tips to make workplaces more enjoyable.
To improve creative output try Fora TV.
Hopefully after that there is still time to do some work.

Summertime Blues Cured

I know its a time of year when a lot of marketing and advertising folk are away but is it just me or is there a slight sign of a little bit of an upturn in the advertising activity. Studios seem a little busier… photographers are working…there are even a few TV ads being made in the bright sunshine. As an industry can we for once dare to dream of a better future?

The Future of Advertising

Take the current general economic collapse out of the scenario and it is my contention that the advertising industry would still be in crisis. Not just in Ireland but possibly all over the world, The problem with Ireland is that we are leading the decline because of our basket case finances and corrupt political legacy.

 

To cut to the 400 word chase most creative agencies big and small are struggling to adapt to new media or more importantly to see a future where there is enough money to be made from servicing its incessant demand for content and expensive employees.

 

The media buying business probably still 80% of all advertising spend is now one where all major advertising accounts move between 4 or 5 giant agency groups. They make their money from handing money and back end deals so there is not much room left for a full service model.

 

So in this scenario there is always an unsightly mill for what is left over. Digital agencies make outrageous claims without case studies, research or long term trends to back them up. Some clients believe them! The current obsession with incentivising retailers has helped  only below the line and promotions agencies communicate more Sales and more Offers.

 

Brand marketing teams are being withdrawn from Ireland to the UK like fighter pilots on the eve of the fall of France.

So what does the future hold, well here a few of my Mystic Megs:

 

  1. The digital bubble will burst and become once again an exciting and potentially  game changing brand medium without the current set of religious nuts who represent it.
  2. The focus will move back to understanding consumer behavior and dark arts like Account Planning, Research, Trendspotting and Tracking…remember them.
  3. Pitch doctors  will shortlist an agency that wasn’t founded in 1916,,,only joking this will never happen.
  4. Big creative ideas will be back in vogue in all media.
  5. Advertising people will be once again well paid, respected, admired and held in regard by brand owners (see end point no 3)

 

But all of that aside perhaps it is a time for the Irish advertising industry to realise that we have (at least some of us so far) survived the greatest recession in irish history. We should not be too hard on ourselves but instead to paraphrase the advice on my coffee mug “Keep Calm and Carry on”. Never was so much owed by so many to so few…just look at that Knorr shake in the bag TV ad…what more do you want…Blood?

The Elephant in the Boardroom

fmcg, marketing, advertising,I have a thing about Private Label, we work in an industry that relies on getting a contribution from branded sales. Brands are not just taking a hammering from Retail Trading Negotiators seeking even greater discounts while maintaining net margins, but also by PL; as mentioned earlier it is reckoned that almost 30% of all grocery lines by 2012 will be own-brand. Tesco currently says own label accounts for 40%.

Private Label is invidious, it does not innovate, it imitates. It would appear unjust to Manufacturers who put in the hard yards and need successes to keep doing so. But Multiples are getting better and quicker at getting their versions to shelves alongside the brand leaders. These “cheaper alternatives” mostly inferior, would appear to be the right brand for these difficult times. Why?

Because Own Label is cheaper and consumers are now conditioned to believe they should sacrifice quality for price despite the fact that brands in a scramble to maintain a declining share have been reducing their prices and spending their budgets on promotional footfall for the Retailers and not investing in equity building brand activity.

Because Retailers increasingly view their Customer as being a loyal shopper to the name over the door rather than the brands which invest in R&D, NPD, Category Management, Brand Research & Support etc. and have tried to achieve a higher gross margin by pandering to an own label in their quest to differentiate themselves from their Retail competitors.

Because Manufacturers too have let themselves be dictated to by these Retailers – and in some cases their own Distributors – to join the race to the bottom and capitulate in eroding their margins and thus the contribution to ensuring the consumer remains loyal to their brand.

One notable brand I admire is Red Bull for maintaining – and being able to sustain – a premium pricing across all channels which affords substantial brand support which in turn perpetuates demand which ensures premium pricing and so on.

Another lays down a marker to expectant wannabes. The new campaign for Bird’s Eye “100% Polar Bear” neatly makes space in your freezer for Bird’s Eye Peas, Fish Fingers and Chicken Dippers and also deftly takes a swipe at Private Label.

Focussed, well produced – some say menacing – work featuring the voice of Willem Dafoe, the TV spots justify a premium positioning and pricing strategy as well as communicating the quality of the product offering. I’m quite sure the Polar Bear gives good ole Captain Bird’s Eye the boot, although he’s still on the fish fingers pack, and drags the brand into the new decade. It’s also great confident brand equity building stuff, not tricky at all, which will also drive footfall to the freezer cabinets in Retail and keep the Grocery Trade happy as well as boosting sales. It might just help keep private label advancing in the freezer.

 

My Grocery Shopping Experience.

FMCG, brand awarenessMy wife has been temporarily incapacitated and I’ve been doing the weekly “big shop” for the past couple of months.

 

I looked forward to this, as in the past I’ve enjoyed Grocery store-checks as an information gathering exercise – seeing who’s active, new product launches, what products are on promotion, what offers there were – in the FMCG categories in which I or my clients operated.

 

There is an unwritten adage in business that says you support the clients who support you and remain loyal even if that client may not have the particular advantage, benefit or indeed price, you’re looking for. And for sure, private label was never to be purchased – unless for research purposes – as you were earning your living in and from the branded goods business.  But that’s another day’s rant.

 

That said, it’s been an interesting time seeing how the different retailers are reacting to the crisis on a daily basis and there’s no doubt there is an almighty dogfight for the weekly household budget. According to Checkout, Nielsen recently reported that in 2012 almost 40% of all goods sold will be on promotion or some other kind of offer and more worringly that Private Label will account for almost 30% of all sales.

 

This is obviously extremely frustrating for Manufacturers who invest and bring to market branded products that consumers want, only to see their investment eroded by Retailer’s knocking-off their brands and services quicker than ever before. Some are willing participants and will happily supply an own label offering of their product; others reluctantly do so and a brave few refuse despite the growing concentration of ever increasing buying power. Again, another day’s rant.

 

Anyway, the scorecard after 6 weeks of dedicated grocery shopping:

 

Dunnes Stores, Cornelscourt

On more recent visits Dunnes have upped their offer and have been stuffing the store with Recession Buster offers on floor displays, Gondola ends and on-shelf. Everywhere you look there are deals: bogofs; twin & banded packs; half-prices; value loaders; extra fills.  Heaven for the promiscuous branded shopper. It’s just an impression while they have upped the ante in Freshly Prepared produce,  it seems to me that Dunnes may have pulled back from ambient own label as there doesn’t seem to be as much PL presence on-shelf. A very well stocked, very clean store with lots of choice. Easy to navigate the particular categories, but more than two trollies passing in an aisle coupled with the ubiquitous Pallet blocking the floor results in Jousting with your fellow shoppers. Friendly helpful staff. I haven’t done the math yet, but my perception is that their Value Card is, cent for cent, better value than their competitors.

 

Tesco, Ballybrack.

The occasional foray into Tesco Ballybrack (where my wife’s environmentally expensive shopping bags were once purloined by a fellow shopper from her trolley which she left unattended while at the meat counter) is, I admit, mainly driven by their weekly insert in the Irish Times and I have been dispatched to purchase selected items from same and may as well do the big shop while I’m there. Several times I have had to search out and be directed to the offers which are poorly flagged – twin-packs that aren’t twin-packs – that allegedly are when they’re scanned and the like. Several times the Staff were unable to find the offers we wanted and several times I have gotton a full refund because the epos didn’t scan the offers that were found. So maybe not much communication between branch and head office then. There is not as much choice as I expected and there is a lot of dumbing down on the shelves with sub-value and sub-sub-value lines dominating the facings. Good bread counter and well stocked wine shelves which appear to be drawing the punters. Not completely convinced they’re cheaper than Dunnes but am impressed with the very slick and sophisticated Monthly Club Card Mailer.

 

Superquinn, Blackrock

My expectations were high. I knew they’d be more expensive though I hoped the experience would compensate. You fall into the Bakery, still a great psychological booster for all things natural and fresh. Fruit and veg follows, not as big or as wide a stock but good quality nevertheless. Approachable and well stocked meat and fish counters. Very long aisles, cluttered shelves with not a lot of offers either, though the new “Essentials” range is very much present. It is immediately obviously that it is more expensive than its competitors, I’d reckon at least 5% -10% even on basics like tinned veg and dairy. Petfood too. The wine sale was on so I can’t be sure whether that department is good but it was sure well stocked. Surly counter staff. Does not justify a premium.

 

PS: Both Dunnes and Tesco rate a B on my score card across the board. Superquinn, based on just one visit mind rates a C-, unfortunately in my book the SuperQuinn of Feargal Quinn is no more. Overall, it strikes me that the stores themselves need to do more to drive loyalty to their own particular bricks and mortar brands than rely on deals or offers squeezed from manufacturers and distributors.

 

PPS: An aside: it really irks me out that the stores reduce their staff packers’ overhead on a charity pretext and let young well meaning amateurs throw potatoes on top of soft fruit, pack detergents with fish and throw tin cans on top of bread. Am I alone?

 

Choosing the right partner.

Choosing the right advertising agencyThere are a few obvious pointers when choosing the right Communications partner, a bit like your friends you don’t always have to get along with them, but good chemistry does help. And choose carefully, because with the right choice you could be together a long time.

 

A good agency is like a good restaurant. Same quality control, attention to detail, desire to please.

 

There are front of house staff; maître d’hôtels, account executives, sommeliers, planners that must have the knowledge and skill to interpret what the customer wants or needs and well as explaining the plat du jour.

 

There are the back of house staff; the chefs du cabinets, art directors, copy strategists, artists and writers who create and deliver the vision, excellence and ideas.

 

There are the chefs de partie, managers, expediters, traffic and production teams who ensure that the right message and work gets delivered to the right table on time.

 

Supporting cast includes the supervisors, cashiers, accounts and receptionists required in any business to ensure smooth operation and accurate billing.

 

On top of that the suppliers – Butchers, Fruit and Veg merchants, the Media, Fishmongers, Production Companies, Wine Merchants, Contractors, etc. – are equally important to ensure that all the ingredients are of the finest quality and in season.

 

All must play their part. Good food will compensate for bad service, but consistently bad food will never be overcome by great service, weakness in one area will impact on another and detract from the overall experience. Just as you can tell how passionate a good Restaurant is about the package when you walk in, you can sense a good (or bad) agency almost immediately.

 

Other considerations.

 

Are they in the right time at the right place – for you. There’s no point going to the flashiest designer or Michelin starred restaurant if you just want a logo to fit in with existing brand identity or a Hamburger. Likewise you don’t go to blunt pencil design or a food stall if you need a corporate make-over or wedding catered for. Trust your own instinct as you would a good chef.

 

Can they manage all or some of your needs? Are you looking for a one-stop shop or just one specific skill, a table d’hôte or à la carte. Most agencies are jacks of all trades and can provide the full service adequately. Others offer specific specialist skill sets or alternative cuisines. There appears to be recent movement back toward the set menu as opposed to the buffet option. Decide on what’s best for you but don’t just go for fad or flavour of the month.

 

Do you have a budget? It is remarkable how flexible things have become in the recession but you still can’t expect star cuisine for diner prices. Be realistic in your expectations of your wallet when you approach the menu and you’ll be surprised what can be achieved.

 

In some magical relationships you will achieve the magical trinity of quality, service and price in one restaurant or even campaign. Mostly though it stands to reason that you need to decide which two of the trinity you need to achieve, and balance your needs and expectations accordingly. Be clear in your particular dietary needs as they will dictate your future partner’s approach.

 

And remember. Never sign off on or order something you’re not comfortable with. It’s a sure recipe for disaster.

 

Bon appétit.

 

Is there a future for Advertising Agencies?

The future of advertising in IrelandUnfortunately, several previous predictions have materialized and while one or two have thrived, the remainder have not and a few Agencies are still hanging on by their fingernails. We have witnessed a decimation of the Industry with some reports suggesting that employment in the sector has “downsized” by over 40% over the past two years.

 

So does this mean there’s more to share amongst those remaining. I suspect not. Confidence appears to be returning from the depths of gloom however the digital evolution, another communications channel mind, is experiencing irrational growth fuelled by brand managers opting for cheap volume over meaningful awareness and who is to blame them as traditionalists ignore or belittle the medium. There are great opportunities, as clients returning with budgets to be planned over a period and not just spent as projects, are more than ever determined to challenge and extract maximum poundage.

 

Let’s hope that the Ad business can educate experienced marketeers as to the value of at least medium term relationships that result in proper thinking expressed in great creative work versus the cut and paste, poorly re-voiced, run of the mill work that has come to the fore in recent times. There is tremendous opportunity to improve the thinking and quality of work and in doing so portray the Island as a centre for creative excellence and not just to indigenous advertisers. There is a real balance between financial pragmatism and fighting for good hard working creativity. Our own business is developing as we walk that challenging tightrope with our colleagues every day. Let’s hope the industry still has the collective brain power left to make these commercial arguments.