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Devil's Advocate

August 2008 - Posts

Gold for Powerade

Like most people glued to coverage from Beijing, I have no time for the kids, work or even to blog right now, but I must take a moment to draw attention to Powerade's 'serendipity' in tying up with Team GB for their current promotion. What did they know that the establishment was doing its best to keep under wraps? "Shh... we've got a winner on our hands here"? Just by dint of reflected glory from all that British-won bling the brand is surely bound to prosper, and can win all manner of awards simply because it made the right pick (look at the Da Vinci Code promotions - nothing to write home about, but they struck a chord in all quarters, which is often all that counts). Sales must be destined to set new PBs. I might even start drinking that disconcertingly electric blue stuff when (if) I go to the gym!

Posted Aug 21 2008, 03:01 PM by Ian Moore with no comments

Recession good for honesty

Apparently the recession has led to a decrease in deliberate coupon misredemption and a corresponding increase in regular 'honest' coupon use by us price-conscious Brits. According to the 2008 CCB fast.MAP Marketing GAP research (thanks to the ISP for alerting me to this - see www.isp.org.uk for the whole shebang), only 38% of consumers now 'sometimes' misredeem coupons (down from 43% last year). Only 38%. Phew - that's a relief. ................................................................................................................................................... I'm being facetious, of course. The figures suggest (if we can believe what people tell the men in white coats) that the vast majority of coupons are correctly redeemed. Indeed only 6% of 'users' confess to being habitual misredeemers. In any event, this aspect of coupon (mis)use has never particularly fazed me - even if misredemption ran at 50% it's still a remarkably cheap way of getting an incentive to consumers en masse, and with reasonable degrees of targeting. It's very, very cheap compared to indiscriminate discounting. A whacking 37% say they'll use a lowly 20p coupon (most people would pocket an abandoned 20p coin), which probably costs only a few pence more when you factor in the misredeemers. Compare that to the crippling marketing cost of a bogof or a twofer. ................................................................................................................................................... I've seen convincing research that coupons can make a significant difference to household penetration levels (one US study of four major fmcg brands indicated a 60% higher level for couponed households), but the main flaw in the couponing argument concerns established brands with already high penetration levels... aren't you just paying people to do what they were going to do anyway? There's no easy answer to this, unless you value each 'next purchase' as the first in a long line that may otherwise have died out. And maybe that is a philosophy which it is more than ever appropriate to adopt - or at least since the last proper recession.

Posted Aug 13 2008, 11:38 PM by Ian Moore with no comments

Deja Goo

I've eventually got round to trying one of Cadbury's latest line extensions, Twisted, which is basically Creme egg in a countline format. Not bad - tastes exactly like Creme Egg, with pretty thick chocolate to boot. Can Cadbury begin to count their chickens? A company quote on TalkingRetail says: "Research revealed that 90% of consumers would like the Creme Egg experience throughout the year and as the 'goo', not the egg-shape, is the key driver for consumption, the new format will appeal to existing and new consumers." On that basis, they can do away with the egg-shape completely, surely? (But I don't think so, somehow.) .................................................................................................................................................. Moreover, the marketing quote recalled my own time at Cadbury in the early 1980s, when research had apparently shown that consumers would love Creme Egg to be on sale all year round. So Cadbury duly obliged, Creme Egg sales duly declined, and the brand suffered terribly. Eventually Cadbury came to the conclusion that they could sell more product in the 3 or so months between Christmas and Easter, and in the nick of time returned to the successful seasonal formula. So what's changed? .................................................................................................................................................. Well - one thing that hasn't changed is that marketers keep believing what consumers tell them in research. Q1. Do you like Creme Eggs? Yes. Q2. Would you like them to be available all year? Yes. Now, why would anyone say no to the second question? (Amazingly apparently 10% did - maybe they never eat Creme Eggs. Are there such people?) What I learned at Cadbury was that just because someone likes a particular confection, unless it can become their 'staple' choice (like Mars or Kit-Kat), they'll stuff their faces with it for a while and then get sick of it. Creme Eggs are pretty induldgent an 'eat' and surely fall into this latter category. Mars and Kit-Kat are actually pretty bland... as is the way of staples in almost every market. .................................................................................................................................................. So I think Cadbury have got a tough task on their hands with Twisted. When you consider that even the mighty Wispa rose and fell to oblivion, despite initially threatening to overturn the incumbent brand leaders - and it achieved levels of trial and publicity that have probably never been seen for a product since. I wish them good luck (should that be goo luck?), as nothing beats Brummie chocolate.

Posted Aug 07 2008, 11:14 AM by Ian Moore with 1 comment(s)
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Devil's Advocate
Ian Moore, founder and Creative Director of award-winning agency Blue-Chip Marketing, and author of Does Your Marketing Sell? is the sector's Devil's Advocate.
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