When you think of Ferrari it conjures up images of sexy red sports cars. Racing round the Italian mountains with sparkling blue sea in the background. Driven of course by the best looking guy.
The brand is loved by those who may not be able to afford the car but can buy the merchandise. Marketing students have seen the classic brand extension into clothing, sunglasses and so on. There are 28 stores around the world where the brand fan can indulge their passion. So far all pretty traditional brand extensions. Common in the automotive industry.
The latest extension of the brand is a big change. Ferrari are opening a theme park in Abu Dhabi. The roof is in the shape of a side of the Ferrari GT body.
The car maker says the theme park will host over 20 attractions, “each designed to bring to life a different part of the Ferrari story”, including the world’s fastest rollercoaster and rides for children. (Marketing Week Oct 09)
This really takes the ride of your life to a whole new level.
Lessons for marketing students are to build the brand so that it has real equity and that links to the relationship it has with the consumer. Once that is established the brand then extends into new areas. The risk is to ensure that it is not stretched too thinly or it will devalue the brand.
This marketing case study briefly outlines the differences in the way in which we use the media and how our daily use of technology has changed the way we live. The marketing question is how can this be translated into greater understanding of the consumer. That will in turn help us to be much more effective with the marketing tools.
We sit on the sofa with the TV on and flick across channels. We are also on the laptop surfing and chatting on line via Twitter and then the mobile rings and we text back. We might even be downloading the latest iPhone app. The development of Sky Plus lets us pause to make tea and fast forward through the adverts.
How life has changed and with it the way in which media is used and how we shop. As I write I have just txt a friend for a coffee and Facebooked another while watching the TV. All very interesting but the implications and lessons for marketing are the key here.
Evidence suggests that we are open to new ideas and to change and try new products, offers and brands. This makes us fickle and a bit of a strawberry tart. We are much more likely to use comparison websites and customer reviews. Indeed if I am booking a hotel Trip Advisor has become a favourite. Just love the comments and that puts the gloss from the hotel in a whole new light. Those hotels that get good reviews get my booking.
Lessons for marketing students
* Understand the multi tasker, look for integrated and multi media
* Focus on fabulous customer service, in reviews really good is rare and makes the review headlines
* Use the social networks, they are not just for chatter but business
* Be quick and move with the times, multi taskers are early adopters and move with the times. Don’t fall behind and wear last seasons fashion
LONDON (Reuters) – Retailer John Lewis Partnership on Sunday said it plans to start selling non-food products from its John Lewis department stores through its Waitrose supermarket’s website.
The move will expand Waitrose’s range of non-food items online, allowing it to compete more closely with rivals Tesco (TSCO.L), Sainsbury (SBRY.L), Morrison (MRW.L) and Asda, the company said.
“Working in collaboration with John Lewis and having their products as part of our range will… give us a real opportunity to rival our four main competitors,” Waitrose managing director Mark Price said in a statement.
Waitrose will from Tuesday sell John Lewis and Waitrose-branded kitchen and homeware products through its website as part of an effort to foster closer collaboration between the two businesses, the company said.
On Thursday, John Lewis’ store at the Bluewater shopping complex in Kent, south-east England, will open a Waitrose-branded food hall, increasing the collaboration between the two businesses, it added.
Marketing Lesson The challenge is to bring these two businesses together and to generate synergies. The branding will enhance the overall values and the similarity of consumers for both brands. It will be interesting to see if this affects the competitors as there is a marked difference in the position of John Lewis/ Waitrose and Tesco and Asda.
In just 3 years Twitter has become a phenomenon and is at the fore front of changing how we communicate. It is real time, and is enjoying the fastest ever growth for a website. It has increased staff to 50. This year has seen it overcome the expansion in technology that is needed to grow so rapidly
Biz Stone, its co founder comes from a series of social media businesses such as Blogger. He believes that Twitter has only touched about a minute percentage of its potential. He reportedly refused a bid from Facebook for around $500m.
Why then is he so confident that Twitter can turn growth into a long term business? It seems that its ability to influence large groups of people is the key. Take the recent impact on the Iranian elections, its use communicating the earthquake in California in 08.
After a year of rapid growth he can now plan to build the business long term. The use of Twitter by corporate businesses is the key to monetising the business. Dell and JetBlue have had a great deal of success in using the platform.Corporate accounts are interested in effective communication. The information that Twitter holds on its users and the statistical insight is the key and something that businesses will pay for. From here understanding users needs more and more will give Twitter the opportunity to build a long term business.
Marketing lessons. Business growth, monetising and branding
MTV Computer Games are bringing the music of the Beatles to a new audience via a computer game. Listen to the track here
It is a new development for Sir Paul McCartney, Apple and Harmonix. It is a first time, the Beatles music has been released in a digital format. It really is taking the music into new genre and is a fun development for all concerned.
Computer games have used other bands such a The Who and Bon Jovi. It is innovative and uses the equity in the brand to extend into the future and current technology is being used to create.
The Marketing Lesson is to refresh and move with changes. Yet not to reduce the value in the brnd by over streteching
Cadbury is going back in time and giving some old brands a retro refit. Curly Wurly and Freddo were launched in the 70s. Fudge originated in 1948 and that too is making a come back. They are getting some new packaging which will be a nostalgia trip for those of us who are old enough to remember. Often retro tries to remind us of good times. Look back at the Cadbury’s packaging and it is easy to see the colours and style that have evolved but it is easy recognise the original design and logo.
Some brands are much older than we realise, WH Smith for example was established around 1700. Yet Google and Amazon rank much higher in the top brands, according to Interbrand. So longevity is a real challenge for brands.
Cadbury’s are not alone in using the nostalgia theme. Mini was a classic return for the icon that was so popular in the 60s. Mini has become a style statement this time round and attracted a new audience. It is more sophisticated and has all the modern gadgets. Even a sexy, soft top
The marketing lesson here is to build the brand heritage and yet to move with the times and to be on trend. Cynics might suggest that it is cheaper than new product development.
Mary Queen of Shops continues to change the image of Charity Shops. She takes her volunteers to London Fashion week. With her contacts she creates interest by styling celebrities such as Peaches Geldof. That generates column inches in the press and the obsession with celebrity works well for her.
The problem of getting good stock remains. That is until Mary develops D Day Campaign. Key businesses are targeted to see if their employess will donate interesting clothing. She working hard to build a new business for Save the Children. Her shop was given a target of £2000 per week, from existing taking of £900 The result is that sales are up, targets met and customers are spending more on the better range of stock.
This leads to a change in direction for this charity. The new approach is being rolled out over the 125 Save the Children shops
She has proved that charity shops are not the poor relation on the high street.
The current BBC series Mary Queen of Shops seeks to transform the Charity Shop culture in the UK. It changes the traditional view of everything as bargain basement and a hotch potch of somebody’s junk. It transforms into a modern boutique to offer specific products for customers and to move with the times.
The issue is that the staff are mature volunteers who are used to charging rock bottom prices. £20 for a Jimmy Choo handbag, I don’t think so. Yet the challenge is not just meeting the changing perception of the consumer but also the way the staff run the business. It was not an easy task for Mary.
Following some opposition, staff training and a total refit with Conran designers. The result is that more people come into the shop and spend more money in a day than they did in a week. The new manager then has to attract new stock, manage the staff and to deliver the cash. All within a very limited budget.
The marketing lessons are to focus on a different business model. Challenge the way the shop presents itself, build the brand, improve the perception of the consumer and also to change the culture.
Mary Portas Queen of Shops, look for the next progamme, easy watching and lots of good marketing examples