Morrisons puts switching feature at heart of online grocery launch

Morrisons will center around fresh food and customer support when it launches its online grocery service early next year in a bid to distinguish from rivals and persuade shoppers to interchange to its offering.

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The supermarket chain has worked closely with its online partner, Ocado, at the service, including various features only available on Ocado’s own offering. This includes the power to import their shopping lists from the sites of Tesco, Asda, Waitrose, Sainsbury’s and Ocado itself.

“By enabling customers with one click to import their favourites we’ll be bringing switching to the web grocery store,” said CEO Dalton Philips, speaking at an event to launch the plans in London, consistent with Reuters.

Customers can also be given one-hour delivery slots and receive a text when the motive force is the way in which that incorporates their name. The web ordering system shall be available on PCs, in addition via a tablet and smartphone app.

Morrisons is creating a late entry into the web grocery market, among the sector’s fastest growing areas. This has dented its profit and market share, with like-for-like sales down 2.4 per cent within the three months to three November, the seventh straight quarter of declines.

The firm inked a tackle Ocado in May, investing £216m in a 25-year agreement. It plans to launch the service in Warwickshire and West Yorkshire in January 2014, before rolling it out to London and South Yorkshire by the summer and bringing it to the North West by the tip of next year, in which time it’ll be available to 50 per cent of UK households.

Morrisons is hoping to lure customers with a focal point on fresh food, which usually generates more cash than other groceries. The supermarket is employing a team to evaluate products and provides them a celebrity rating and offering detailed product information, giving customers more choice in, as an example, selecting the kind and thickness of cut when ordering meat.

The supermarket can be including packaging so that they can help prevent damage to delicate items corresponding to bananas and the possibility for purchasers to evaluate the traditional of goods on delivery and receive money-off vouchers in the event that they aren’t as much as scratch.

Retail analysts IGD said that despite Morrison’s late entry into the net grocery market, that’s “optimistic” concerning the service’s potential.

“Morrisons has developed a proposition that reflects its key strengths. The retailer has also considered learn how to encourage switching – giving shoppers the likelihood to import their favourites from other stores simply and painlessly – removing a key barrier. This may be important in a market during which habits for lots of are engrained and will accelerate progression of the retailer’s multichannel strategy.”

CEO: ‘Asos is ending the dominance of high street brands’

Asos CEO Nick Robertson believes ecommerce will reduce the dominance of huge brands, levelling the playing field and allowing smaller labels to compete on an equal footing within the fashion market.

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Speaking on the Marketing Society’s Creativity for Commerce conference in London today (21 November), Robertson said that the significance of high street stores, which have been once a large asset for outlets, is at the decline as shoppers increasingly head online.

“High street stores used to secure retailers x amount of sales. But now eyeballs aren’t taking place the high street as frequently and they’re going surfing . i will put a brand like River Island on Asos and that i can put a brand like Needle and Threat, that nobody has heard of, next to them.

“In the customer’s mind the asset that made the emblem big, the high street, isn’t there anymore. That’s great news for smaller fashion labels, not so excellent news for enormous brands and their dominance will begin to reduce.”

Nevertheless, Asos is raring to court the large retail brands, with Robertson claiming that his site can open up a brand new international market to British retailers.

“London is an awesome hotbed of young fast fashion. What ASOS has done is take what the united kingdom is brilliant at, young fast fashion, put all those brands together in a single place, like putting a roof over Oxford Street after which exported it.

“We are helping fashion brands go international at zero cost to them. A brand like River Island, that’s phenomenally successful over here but has no business outside the united kingdom, they arrive with us, and suddenly they’re getting revenues from places they’d never has been ready to get to as a high street retailer,” he said.

One brand that Asos doesn’t have on board is Primark. The high street retailer undertook a really limited trial with Asos earlier in June, but ended it just three months later, insisting it had no further plans to transport into ecommerce.

Robertson suggested the trial wasn’t successful as the two companies couldn’t make the venture profitable.

“We trialled with Primark. We tried to make it work [but] with a free shipping model in the event that they only buy an item from Primark from us we’re probably losing money. We’re attempting to earn money within the process so it only works in the event that they buy something from Primark and two other things in order that the basket is three things. Then we will be able to pretty much do it,” he said.

Robertson also ruled out Asos ever opening a physical store, calling the move “counterintuitive”. He said 30 per cent of the site’s traffic already comes from mobile and its customers buy as much as 80 per cent in their fast fashion online.

The firm does have a presence within the physical world, however, publishing a monthly magazine showcasing the most recent fashion trends and types written by fashion journalists. Robertson said the magazine happened as the best way to take advantage of marketing to symbolize Asos and what the emblem stands for.

“The first pound of selling a web business goes into delivery and returns and we spend £100m a year on making that free. The second one pound goes into how best to symbolize Asos. So we use content: our emails, the trend magazine, the mobile app.

“The convergence between retail and media, here is it. The business model for magazines that was advertising revenues is now clothes sales.”

VW creates app that translates driving action into music

Volkswagen (VW) has created an app that fits a driver’s actions behind the wheel to music in real-time in an try and create the ideal driving soundtrack.

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VW is trying to subvert the ‘traditional link’ between music and driving with the app.

The German car marque is using the “Play the Road’ app, developed by Tribal Worldwide London, to increase its recently launched Golf GTi Mark VII’s ties to music and technology.

It combines data from the car’s engine management system with the iPhone’s accelerometer to detect several parameters from the motive force consisting of speed, turns, gear changes and driving style. The app then creates a dynamic version of a track, produced exclusively by electronic group Underworld, in real-time using the knowledge.

The tool, so one can not be made publically available, is being promoted through a digital campaign where fans can win a big gamble to check the app on a racetrack. It centers on a two-minute filmed “performance of the car” to the track alongside social media and a behind-the-scene video pushing people to go into the draw. Seeded PR content from famous testers of the app comparable to Tottenham Hotspur footballer Sandro and Boardwalk Empire actor Stephen Graham can even support the campaign.

Mike Bennett, product manager for GTi at VW, says it’s hoping the experiment attracts younger potential owners by connecting “two classic elements of automotive advertising” in an experiential way.

He adds: “There’s a robust connection between driving and music but both are quite isolated from each other. Drivers aren’t connected to a track apart from the truth that it’s popping out in their radio. We’ve created something that responds to the way in which the auto is being driven in a singular way.

“We can’t make this available to the general public for obvious reasons. There are, however, learnings and spin-offs we are able to check out because we have got the campaign template now. There are definite opportunities to expand into other forms of music, different tracks and different drives.”

Sir Terry Leahy: ‘Transition from marketer to CEO becoming easier’

Former Tesco boss Sir Terry Leahy believes it’s getting easier to go from a marketing role to CEO provided that marketers are prepared to take risks. 

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Former Tesco CEO Sir Terry Leahy says marketers must take risks and notice innovation to tackle the pinnacle job.

Leahy joined Tesco in 1979 as a marketer and was the 1st marketing director to sit down at the supermarket’s board in 1992, before taking up the CEO role in 1997.

Speaking to Marketing Week on the Marketing Society’s Creative For Commerce conference in London today (21 November), Leahy said that the upward push of digital technology and the following changing needs of customers signifies that marketers are actually better positioned than ever to tackle senior leadership roles. However, he cautions that they need to be willing to take risks, even in a recession, and convey new and innovative marketing techniques.

“If marketing people position themselves on the nexus between digital technology and consumers and spot the opportunities that arise from that during terms of latest services, they’re the folk who can change the trajectory of a business and become the CEO.

“But they must find their as far back as true marketing, beginning with customer and their fast-changing lives, and get away of the strait jacket of just peddling their existing services and products using fairly narrow, fairly old marketing techniques and tricks,” he added.

While at Tesco, Leahy introduced the Clubcard, which he said on stage is more famous around the globe than the Tesco brand. It was the primary time example of the usage of big data by a retailer to administer its relationship with customers.

He admitted that he “stole” the concept from Co-op, where he worked previously and which had a paper membership scheme.  He added that after he first took the theory to his bosses at Tesco, they rejected it, but he kept engaged on it and when he went back with a neater plan they green lighted the project.

He advised marketers now to think creatively and check out to look the area otherwise that allows you to find the following innovation and never be afraid to make mistakes and fail as long it’s leading along the correct track. In particular, Leahy believes using mobile and real-time marketing are areas ripe for innovation.

 “The availability of digital marketing incentives is de facto exciting because businesses for a while has been ready to identify real customers and know something about what they’re drawn to . But we haven’t had an analogous digital ability to reply. You can now.

“Through mobile you are able to bring them right into a loyalty programme, offer them an incentive and provides them new information it is tailored to what they’re inquisitive about. And it usually is dropped at them on their mobile instantly on the right time and inside the right location and that they can redeem there after which, making them rather more engaged,” he told Marketing Week.

With the united kingdom popping out of recession, Leahy believes now could be the time to come back to the “first principle” of selling and reward loyal customers using new technology. Plus he warned against the selling industry becoming too inward and failing to target the client and what they need.

“The development in Christmas marketing this year is a pleasant one because they’re creative and they’re in regards to the brand attributes of the business. But they should be a chunk careful since it is the industry copying one another instead of actually searching on the customer and taking the client because the lead,” he added.

HSBC banking on digital to reinforce brand perceptions

HSBC is using digital to ensure its services are available in wherever and whenever customers want, hoping to prove it understands its customers and boost brand perceptions.

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HSBC chief digital officer says digital innovation can show the bank understand its customers and their needs and help build the emblem.

Speaking to Marketing Week on the Marketing Society’s Creativity For Commerce conference in London today (21 November), chief digital officer Josh Bottomley said innovation is prime to finding the goods and services that buyers didn’t even know they would like. He said the firm uses digital to experiment with new services, determining that are useful and which don’t fit into consumers’ daily lives.

“Digital can play a huge part in building our brand by showing that we understand customers by providing the services that they wish and introducing things they didn’t even realise they needed.

“We ought to test lots of those areas and spot which of them follow learn how customers fit us into their daily lives. That reengages our customers in what we do well and the way we’re helping people,” he added.

He believes that knowing what consumers need from their banks can seem relatively easy, with people desperate to have the capacity to do their basic banking functions easily, once they want them and where they need them. Innovations come from giving access but additionally maintaining security.

“One of the massive challenges is how we reconcile security and access. Nearly all of our customers are multichannel, but there are still certain things that, for security reasons, we can’t do in digital.

“We need to be sure that is a straightforward experience, to move from digital to the contact centre to the branch. For this reason we now have started, in certain places, to provide staff tablets that they are able to work with and ensure the customer experience is often an identical.”

Bottomley suggested this can also help to enhance loyalty. He believes word of mouth and direct marketing are still highly important to banks and the firm must sing about its services across its properties, from the mobile app, website and in- branch to social media.

“I have an extremely strong view that seeing is believing. In case you get the experience right, the beauty of the net is that folks tell one another and that spreads in no time. We’re also aware if customers are unhappy they could use it to vent and we wish to be capable to respond.”

Bottomley joined HSBC from Google earlier this year where he was global head of display. He said on stage that the most difference between the 2 is that while HSBC has lots of technology capability and marketing teams good at showcasing that technology, the firm was missing product managers.

Separately on the conference Saul Klein, partner at venture capital firm Index Ventures, said that businesses are still forgetting that technology and deploying new products is now the job of everybody, including marketers.

“Technology is ubiquitous. The dearth of data is shameful,” he said.  

For Goodness Shakes marketing boss hits out at ‘masturbation’ ad ban

The marketing director of For Goodness Shakes has vowed to continue to “keep pushing the boundaries” within the brand’s advertising despite seeing its latest ad banned for “causing widespread offence”. 

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Marketing director of For Goodness Shakes Alex Brooks says he’s going to not stop making ‘cheeky’ ads despite ad ban.

Yesterday (20 November) the Advertising Standards Authority banned an internet video For Goodness Shakes that contained multiple visual references to masturbation.

News of the ban prompted several readers to go away comments on Marketing Week.co.uk and on Twitter with most disagreeing with the call to prohibit the ad.  One, Matthew, wrote: “Very funny and brilliant. It made me laugh surely. Possibly risqué, but offensive? No way.”

Alex Brooks, marketing director of For Goodness Shakes, told Marketing Week he was “disappointed” with the ruling, stating that only 1 person complained from 1 million those who had viewed the ad.

He argued the ad, which featured multiple shots of guys shaking objects throughout the region in their groins, was “comedic and light-weight hearted” in content and tone and was entirely appropriate for the objective market of young males.

“Humorous? Yes. Cheeky? Yes. But we predict it was mild in tone,” he adds.

The brand would be careful to not cause offence someday, Brooks adds, but is just not deterred by the ruling.

“The thing is, we get cut through [by developing “cheeky” content]. We can’t do anything too similar [due to the ban] but we’ll continue to push boundaries to make certain our ads are exciting and get audience cut through.”

Asked whether the ad ban is helpful due to the publicity it has attracted, Brooks concedes that during this situation it had done the logo no harm.

“If we had received plenty of complaints then i’d be troubled,” he adds.  

Ad watchdog rules ‘we shake for you’ ad by My Goodness more likely to cause widespread offence.