Cutting Edge: Our weekly analysis
of marketing news
14 February 2018
Welcome to our weekly analysis of the most useful marketing news for CIM and CAM members.
Quick links to sections
Marketing trends and issues
Advertising
Localised advertising – Arab consumers
To achieve an effective international marketing
strategy, it is important to understand the “nature
and influence” of cultural differences in print
advertising, according to this study. There has been
a shortage of research into advertising in the Arab
world and a lack of recommendations for localised
advertising to Arab consumers. This study involves a
comparative study of Arab and US print ads in
magazines, to identify cross-cultural differences in
advertising. It makes recommendations for localised
advertising to Arab consumers, particularly in the
Persian and Gulf states.
Journal of Marketing Communications, Vol 24(2) March
2018, pp190-211 (Sobh et al)
Brands and branding
Fake or not?
Diesel and launching, for a limited period only, their
own “knock-off” range under the label Deisel. It will
be available in New York and on its website and is
part of an ‘inside joke’ perpetuated by the hashtag
#gowiththeflaw. So whilst being labelled as fake it is
also part of a limited edition range. It does bizarrely
appeal to the pedant within me!
brandchannel.com, 9 February 2018
Children
Teaching them young
Gone are the actual piggy banks for children to
place their pocket money in and arriving are the
virtual piggy banks. It our cashless society there is
concern that children are not understanding the
concept of earning money, saving money and
payments. But a new suite of apps have been
developed for parents to be able to top up the
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pocket money virtually, supply a contactless card for
payments and keep track of their money. Many of
the banks require children to be over 11 to sign up
for their services but other card services, including
Visa and MasterCard, are aiming at eight-year olds.
The apps allow money to be stored in different
‘accounts’, will give then information on where and
when they spent the money and parents can control
whether the cards can be used for online purchases.
FT Weekend, 10-11 February 2018, pp8-9
Consumer behaviour
Review persuasiveness and decision-making
The importance of social influence on consumer
decision-making is well established. Reports suggest
that 90% of global consumers read online product
reviews to aid their decision-making. The growing
influence of digital customer reviews derives from
their perceived objectivity and independence. To
address gaps in the literature, this study examines
the effect of message, source and receiver
characteristics on user attitudes towards Yelp
reviews. It looks at the roles of review valence
(positive or negative) and sidedness (one-sided or
two-sided) on user perceptions of helpfulness,
trustworthiness and credibility of the review. It
concludes that positive reviews are regarded as
more trustworthy, credible and helpful than negative
or two-sided reviews. It also finds that review
helpfulness and credibility positively influence its
persuasiveness.
Journal of Marketing Communications, Vol 24(2) March
2018, pp125-145 (Pentina et al)
Customer relations
Loyalty scheme changes
Hot on the heels of changes to the Tesco loyalty
scheme, and Sainsbury’s buying Nectar there are
now changes afoot to the Waitrose Pick Your Own
Offers scheme. The scheme allowed customers to
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Cutting Edge: Our weekly analysis of marketing news
pick up to ten items on which to receive 20%
discount. The reason given is that customers have
found it challenging – a move that has been
considered retrograde by many customers. Moving
forward there will be tailored vouchers sent via post
and Waitrose are urging use of their myWaitrose
cards to ensure your offers are relevant.
FT Weekend, 10-11 February 2018, p4; The Grocer, 10
February 2018, p6
Forget the queues
Self-scanning was a huge story that started back in
the 1990s in the USA but it was not for another
decade, and new equipment, that it really took off in
the UK. But Amazon are now dispensing with the
need for equipment except your dependable smart
phone. No cash registers, no cashiers, no queues –
just swipe your phone as you enter, pick up the
items you want and leave – technology does the
rest by detecting what you are buying and billing
your account. Will it catch on or is it just a huge
data collection exercise? Time will tell.
customerthink.com, 9 February 2018
Direct marketing
Clean up or lose out
With an annual budget of £6.8 billion, Keith Weed,
Unilever’s Chief Marketing Officer has a great deal of
clout. Weed, and Marc Pritchard from Procter &
Gamble, have both criticised digital marketing for
being fraudulent and ineffectual. With a threat to
put their money elsewhere, Google, Facebook and
Twitter, amongst others, will have to clean up their
act and be perceived as trustworthy by consumers.
This stance is being heralded by Paul Frampton, ex-
Havas head, as the advertising industry’s #MeToo
moment.
Financial Times, 12 February 2018, p15; cityam.com 12
February 2018; The Guardian, 13 February 2018, pp30-31
Law
One complaint against one poster
Tunnock’s tea cakes have fallen foul of the
Advertising Standards Authority with their latest
advert: although it only appeared on one bill board
next door to the tennis arena where Andy Murray
and Roger Federer were playing a charity match,
and there was only one complaint. In their defence
they felt that “the creative execution and placement
of the teacakes were a substitute to the normal
placement of tennis balls and that they were not
placed in an abnormal position” but the ASA felt the
ad was likely to cause serious office to some
consumers.
asa.org.uk, 7 February 2018
Marketing
Neuromarketing – good or bad science?
The psychological revolution in marketing has
brought with it both good and bad science but how
© Copyright 2018 CIM
can marketers tell the difference? To answer these
questions, the author, Richard Summer looks at the
two systems which make up the brain: the primitive,
emotional system; and the sophisticated and rational
system. Summer, one of the architects of Scalable
Consumer Psychology (SCP), describes it as a way of
interviewing a consumer using audio, linguistic and
video analysis to construct patterns of brain activity
which can enhance the qualitative information being
shared in the interview. He illustrates the use of SCP
through case studies of Axelos, Johnson & Johnson,
5 Seconds of Summer and Mini.
Cambridge Marketing Review, Issue 13 Winter 2017, pp7-
11 (Summer)
Content marketing
Content marketing helps to influence business
strategy because customers and prospects can
interact with it and provide feedback. This in turn
provides information that C-Suite members can use
to help shape the business. This article tells you why
content marketing is a strategy tool for the whole C-
Suite, with reference to Steve Jobs, who was closely
involved in marketing.
Gulf Marketing Review, December 2017-February 2018,
pp52-53 (Ionides)
Public relations
Reputational damage
Another scandal hitting another well-known name –
this time Oxfam having to deny there has been a
cover-up regarding the contact of staff following the
Haiti earthquake. But how will the scandal affect the
charity? There has always been concern over
actually how much of the pound donated actually
ends up with the ‘good cause’ and this scandal is not
going to help attract donations (£108M) and
shoppers to its high street retail arm (£91m). They
are now working closely with the Charity
Commission to ensure all aspects are handled
openly and transparently. Many of the social media
comments remind us that just a few individuals were
involved and that many industries are experiencing
similar crises, but it may be a while before they see
the direct debits being reinstated.
bbc.co.uk, 12 February 2018; thirdsector.co.uk, 12
February 2018; The Guardian, 13 February 2018, pp1,8-9
Agriculture, fishing
and forestry
Project cotton
The Cotton Four (C4) are four countries in sub-
Saharan Africa – Benin, Burkina Faso, Chad and Mali
– that are leading producers in a sector that is vital
for their countries’ economic and social development
and well-being. However, they all face challenges in
the production, processing and marketing of their
cotton. The International Trade Centre and World
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Trade Organisation are working to help them resolve
the issues. The Cotton Roadmap Project, for
example, seeks to optimise production, improve
processing capacity and develop regional “cotton-to-
textile” value chains. This article looks at the aims
and achievements of the Project.
International Trade Forum, Issue 4 2017, pp24-25 (Diallo
et al)
Blueberries
The word Brexit is adding nervousness to many
business decisions and bringing forward projects to
allow companies to continue trading. One such
company is Haygrove, one of our biggest berry
growers who have relocated part of their growing
operation to Yunnan province in China. With a heavy
reliance on seasonal workers from Europe, and as
yet no seasonal workers scheme in place, the
founder has reduced its UK workforce and is
developing its international business.
The Guardian, 12 February 2018, p3
Businesses and strategy
Conglomerates – can they survive?
Conglomerates – businesses consisting of lots of
different companies in different sectors, such as
International Telephone & Telegraph (ITT) – were
being heralded as the “cutting-edge” model for US
business. However, the decline of ITT and other
conglomerates called into question this model. Some
conglomerates are still operating, such as India’s
Tata Group but General Electric (GE) is struggling
and some investors believe that a break-up is
needed. Technological change and the specialisation
of businesses has made it harder for those trained in
general management to allocate resources over a
huge portfolio of businesses.
Bloomberg Businessweek, 5 February 2018, pp14-16
Effect of specialised personal incentives
This study investigates specialised personal
incentives (SPIs) – monetary rewards given to
salespeople for meeting interim performance goals.
It uses the SPIs to test the association between
sales trajectory types and period-end sales
performance. One of the findings is that a steadily-
growing sales trajectory within a sales period is
more strongly associated with period-end success
than a sales trajectory that is relatively flat early on
but spikes later in the sales period. Other findings
are discussed.
Journal of Marketing, Vol 82(1) January 2018, pp57-73
(Patil and Syam)
Charities and NGOs
Distribution of waste
Waste has been highlighted regularly and Asda is
equipping all its stores to be able to donate to food
banks by 2020. They are aligning themselves with
© Copyright 2018 CIM
two charities, FairShare and The Trussell Trust. This
investment should enable the charities to provide an
additional 24m meals a year.
The Grocer, 10 February 2018, p5
Durable consumer goods
Casting a wide net
FAR Reti, which is Italy’s biggest synthetic-net
manufacturer, produces 500,000 kilos of plastic nets
a year for fish farmers as well as football stadiums,
safety nets at ski slopes and European volleyball.
However, it faces huge competition from Asia.
Wired, March-April 2018, pp38-39
Economy
UK indicators
Key economic indicator headlines are GDP growth
rises but remains moderate, inflation fell...but
remains high, employment levels rise once again,
while earnings growth remains behind the rate of
inflation. For more information on this aspect read
the latest briefing paper. GDP international
comparisons are also covered in another briefing
paper.
parliament.uk, 9 February 2018
Energy and utilities
David and Goliath
The energy market is dominated by the big six
suppliers; SSE, Scottish Power, RWE Npower, Eon,
EDF and British Gas. There are challenger brands,
such as First Utility and Co-op Energy, but there
have also been some that have now ceased trading
– most recently Future Energy. Getting customers by
keen pricing on comparison websites is one thing
but keeping them seems to be more difficult.
Ofgem, the regulator, is under increased pressure to
increase requirements from companies before they
begin trading. There is likely to be more change
though as Royal Dutch Shell bought First Utility at
the end of 2017, Vattenfall bought iSupply and SSE
are merging part of its business with Npower.
Financial Times, 12 February 2018, p19
Environment
How e-commerce can help to achieve goals
The 2030 Agenda for Sustainable Development
contains 17 Sustainable Development Goals that all
countries should be aiming to achieve. However,
technology is also helping to reduce man’s carbon
footprint, enabling tasks to be accomplished in a
matter of seconds online. Technological disruptions
have led to e-commerce becoming the fastest-
growing industry in global trade. This article looks at
how e-commerce presents major solutions to climate
change by reducing the pressure on existing
ecosystems.
International Trade Forum, Issue 4 2017, pp28-29
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Technology gives upcycling a redesign
A new wave of start-ups is designing products from
materials such as upcycled PET plastic, cigarette
butts and food waste. Pentatonic upcycles
smartphone screens to make the Handy glass. It will
also buy back products when consumers have
finished with them. Although upcycling isn’t new,
design of products has been given a boost by new
technology and some big brands are beginning to
upcycle: Adidas and Stella McCartney have launched
recycled plastic waste products in partnership with
Parley for the Oceans. Jamie Hall, co-founder and
CMO of Pentatonic, says that consumers increasingly
want to know where the materials have come from
and how they are being reused.
Wired, March-April 2018, p35
Fashion
H&M and Asos
H&M have had a bumpy ride with its first quarterly
drop in sales in 20 years. Its market is being
grabbed by online only retailers such as Asos and
Zalando that offer free shipping and returns. Zara
holds the mantle of the biggest fashion retailer and
has been performing well. Can it survive without an
online offering? It is estimated that free delivery and
returns can take 3% off operating profit according
to analysts. Asos by comparison is soaring with a
33% rise in sales in 2017 to £1.9 billion.
FT Weekend, 10-11 February 2018, pp13,15
Financial services
Insurance highlight
Direct Line are sitting pretty with above expected
profits which they put down to good own brand
success and lower than expected weather claims. Its
brands include Churchill, Privilege and Green Flag.
FT Weekend, 10-11 February 2018, p15
FMCG
Beverages
Premium tequilas buck the mass-market trend
Since 2002 sales of tequila have grown by 121% in
the US while sales of super-premium tequilas have
grown eightfold, according to the Distilled Spirits
Council of the US. The industry has been
consolidating, with conglomerates buying up
Mexican distilleries. However, the quality of mass-
produced tequila has been declining as global
brands save money on production methods. A few
independent distilleries, such as Siembra Azul
Tequila, have been introducing quality tequilas to
the US. Small tequila companies have also started to
market elite spirts which have been aged for over
three years.
Bloomberg Businessweek, 5 February 2018, pp63-65
© Copyright 2018 CIM
Traditional wines receive a makeover in Africa
There is a trend for bottling traditional African
booze, such as Leopord Lema’s banana wine in
Tanzania and Palm Nectar’s palm wine in Nigeria.
Lema, who employs over 60 people, is expanding his
operations and hopes to attract more customers
with a more expensive pineapple drink while Palm
Nectar plans to export to America and Europe.
The Economist, 10 February 2018, p49
Less bang for buck
Alcohol pricing is a devolved matter within the UK
and Scotland is planning to introduce minimum unit
pricing (MUP) on the 1 May this year, despite
challenges from the Scottish Whisky Association.
There was a public consultation from December
2017 to January 2018 on the preferred price being
50p per unit. Parliament.uk has published a briefing
paper that outlines all the evidence given.
parliament.uk, 9 February 2018
Food
McCain highlights modern families in new ads
McCain, the frozen chips company, is to include a
lesbian couple in an ad campaign which features
real-life couples. A previous McCain ad, which
showed a gay couple with their baby, resulted in
trolls attacking them with homophobic abuse.
However, McCain says the campaign “celebrates real
homes” and “honest, modern-day life”. The latest
series of ads shows eight couples including same-
sex relationships, marked age differences, mixed
ethnicities and disabilities.
The Guardian, 9 February 2018, p20
Flexitarianism and veganism grow
Meat-free diets are helping Quorn grow with a 16%
jump in sales in 2017. This growth was following an
11.4% increase the year before. It has not been
without its critics, with a class action being recently
settled over whether it misled consumers into
thinking it was mushroom based (Quorn is fusarium
which the American Mushroom Institute states is not
a mushroom but a mould). It has new competitors
in the fake meat arena such as Beyond Meat and
The Impossible Burger. The profits are being
ploughed into international expansion and an
increase in vegan ranges.
The Grocer, 10 February 2018, p11; The Guardian, 13
February 2018, pp4-5
Smoothie launch...just add water...
Kellogg’s looks set on launching a product into the
smoothie bowl market under the name of Joyböl.
Although approaches to the company have so far
elicited no definite information they have registered
the product with EU and US intellectual property
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offices and there is already a website waiting for
reviews of the yet to be launched product.
Traditional smoothie bowls are home made with
frozen fruits, a variety of liquids with additional nuts
and seeds. This version seems to just require the
addition of water – or liquid of your choice.
The Grocer, 10 February 2018, p34
Household
Pampered pooches
Thankfully my cats cannot shop for themselves or
read labels, but the market for chilled petfood is
growing. The US brand Freshpet has already made
sales in excess of £1.7m in the last year. This has
mostly been on dog food but it has now been joined
by a ‘tender beef roasted meal’ for cats. Maybe the
makers of the cat wine now need to extend into a
doggie brew for the full meal deal?
The Grocer, 10 February 2018, p35
Tobacco
To smoke or to vape
In a dual article The Grocer looks at the remaining
market for tobacco and the growing marketing for
vaping. With ever-tightening restrictions the
marketing of tobacco has largely gone and the
majority of the top ten brands have seen a decrease
in value and volume. It is the cheaper brands that
are rising. Another positive area of growth is the roll
your own market with an increase of £212m as well
as a small rise in the cigar market. New product
development in this market has developed a cross
over with the development of Iqos, although most of
the market for this product is in Japan where vaping
is illegal. The e-cigarette market has mixed fortunes,
facts and figures are presented here. Holiday
makers should ensure that their destinations this
summer do permit vaping such as Dubai, Turkey
and Egypt.
The Grocer, 10 February 2018, pp41-47
Government and
public sector
Bin today....
Once considered to be the only way forward the
number of councils outsourcing services is resulting
in a move to return to in-house services. Along with
the collapse of Carillion last month over a third of
Conservative councils and 42% of labour councils
have reversed the trend. As contracts are coming up
for renewal councils are often reducing their scopes
or breaking them into small parts. One difficulty that
is being faced it whilst moving staff from council
contracts to outsourced companies was achievable it
is more difficult to move them back onto the council
payroll.
FT Weekend, 10-11 February 2018, p2
© Copyright 2018 CIM
...cell tomorrow
In another article the debate about the financing of
UK prisons is covered. Four super jails are being
built but it is as yet undecided who will run them.
The article looking more closely at the cultural
change that has happened with the advent of
private enterprises running the facilities and whether
this change has been sustained.
Financial Times, 12 February 2018, p3
Health and pharmaceuticals
Brand therapy – new book
There are many strategic marketing planning books
on the market, but mostly written for markets where
you can talk about your product freely. The pharma
and medtech markets however are tightly regulated
and stringent on what you say and can evidence.
The author takes you through the required elements
of a plan, specifically presenting examples in the
pharma and medtech markets.
Purchase Brand Therapy by Brian Smith
IT and telecoms
5G – could be a slow starter
The International Telecommunications Union (ITU)
has set out requirements for 5G networks which
could make it into a “connective tissue” for the
Internet of Things. Telecoms companies, such as
Ericsson and Nokia, are relying on 5G to revive their
fortunes while makers of chips, such as Qualcomm,
also have a strong interest. Despite the apparent
enthusiasm for 5G, there are barriers, such as the
lack of radio spectrum and the need for hardware
and network upgrades but the greatest obstacle is
economic: in a survey of telecoms bosses by the
GSMA over half cited the “lack of a clear business
case” for 5G. Moreover, 5G may not generate much
money because people don’t want to pay for it. As
with 3G in the early 2000s, 5G may be slow to take
off – 3G only really took off with the rise of a “killer
app” (the smartphone) later in the decade.
The Economist, 10 February 2018, pp59-60
The app economy
Some £25 billion was spent globally in the Apple App
Store and Google Play in the first three-quarters of
2017 and 95% of this came from in-app purchases.
The app economy is predicted to reach £4.69 trillion
by 2021. The developing world is contributing to this
hike in usage, with India downloading more apps
than any other country. Wired charts which
countries spent the most in app stores and where
growth is likely to come from.
Wired, March-April 2018, pp26-27
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Leisure and tourism
Keeping golf on top
Jumeirah Golf Estates (JGE) is the host venue of the
European Tour’s DP World Tour Championship in
Dubai until 2020. In this interview, Yousuf Kazim,
CEO of Jumeirah, talks about how the venue has
been marketed to become a top global golf
destination.
Gulf Marketing Review, December 2017-February 2018,
pp58-60 (Kazim)
New directive
Reform in the EU Package Travel Directive will see
loop holes closed and new definitions in place.
Launching 1 July 2018, it will ensure that holiday
makers are fully protected financially, whether the
holiday is booked on or off line and it must be clear
who is ultimately responsible for offering the
services of the holiday. The definition will still cover
the traditional package holiday but will also now
cover dynamic packages, linked online bookings and
where you can buy different services once the sale
is completed such as restaurants.
mondaq.com, 7 February 2018
Materials and mining
Vanadium – the latest in battery power
Vanadium has mainly been used as an alloy in the
production of steel but its price has risen by 150%
over the past year mainly due to changes in Chinese
building regulations. Now a new industrial
application is emerging which should keep prices
high. A major challenge is to build industrial-scale
batteries that can store energy from renewables
such as wind and solar power. Lithium-ion
technology leads the field but vanadium-flow
batteries have several advantages. China, which
accounts for around 56% of global output of the
metal, is backing vanadium-flow batteries. It
currently building what will be the largest back-up
power facility of its kind in the world. The question
is whether prices will rise so high that lithium-ion
batteries take back the advantage!
Bloomberg Businessweek, 5 February 2018, p35
Satellite prospecting – lithium in Cornwall
Cornwall has a long mining tradition relating to
copper, tin and china clay but now prospectors using
satellites are searching for lithium. The Satellite
Applications Catapult, an innovation centre backed
by the Government, will use existing satellites to
identify and map geological and botanical features
that could indicate the presence of lithium. Lithium,
which is valuable for use in batteries, is not scarce
but there is a shortage of mineable deposits. The
best supplies come from Australia, South America
and China but mining companies are keen to find
more.
The Economist, 10 February 2018, pp74-75
© Copyright 2018 CIM
Media
Books
Stars not tyres
Tom Kerridge’s ‘Lose weight for good’ has now sold
over 225,000 copies and has spent another week at
the top of the charts. The promotion has been
supported by the television programme and with
countless interviews and appearances by Tom
talking of the loss of 40% of his body weight. It is
interesting reviewing a personality promotion of a
chef rather than a musician. He is now a major
employer in Marlow with three pubs and employing
over 120 staff.
Bookseller, 9 February 2018, p10
Games
Logical move?
The “transformative strategy to move from a seller
of physical products to providing gaming
experiences” is how Martin Gibbs, CEO of Game
Digital described the partnership with Sports Direct.
Sports Direct have bought 50% of Games Belong e-
sports division (£3.2m) and are loaning them a
further £55m. There are now 19 Belong arenas that
are capitalising on the growth in the competitive
gaming market which is estimated to reach $1 billion
of advertising revenue by 2021.
The Times, 13 February 2018, p43
Music
A Swift solution to secondary sales
Around 30% to 40% of tickets to top concerts are
sold on secondary websites which sometimes double
or even triple the price. This hasn’t gone down well
with Taylor Swift, who has got together with
Ticketmaster Entertainment Inc., to outwit the so-
called “scalpers”. They are using Ticketmaster’s
Verified Fan programme which uses AI to identify
real fans, not bots, and work out who should have
presale tickets. The ticket prices have been criticised
for being higher but that is the trade-off, according
to David Marcus, head of music at Ticketmaster.
Bloomberg Businessweek, 5 February 2018, pp17-18
Newspapers
Consolidation continues
Consolidation in the newspaper world seems an
inevitable outcome of our thirst for online news. A
deal worth £127m aims to consolidate the Express
(Daily and Sunday), the Star (Daily and Sunday)
with The Daily Mirror and three celebrity magazines
including OK!. It will be voted on by shareholders
this month. It is said that the politics of the papers
will remain and will retain their independence but
there will surely be some inevitable cost savings to
be had elsewhere. The combined readership equates
to 1.275m just for its daily readers (not counting the
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Cutting Edge: Our weekly analysis of marketing news
240 regional papers). But can it continue in the
declining world of newspaper advertising?
The Times, 10 February 2018, p52; The Guardian, 12
February 2018, p36; FT Weekend, 10-11 February 2018,
p14
Radio
Stats galore
The final quarter of Rajar’s radio listening statistics
presented in depth. Radio 2 (06.30-09.30) are still
keeping the top slot with over 9,214,000 as a
weekly reach. Kiss (06.00-10.00) gets the London
crown with a 983,000 reach. The BBC figures have
remained mostly strong but Bauer and Global
reporting declines in the weekly listening. Digital
listening figures show 34m now tune in via a digital
receiver (DAB, Digital TV or online) equating to
518m hours of listening.
mediatel.co.uk, 8 February 2018.
Social media
Podcasting
In 2006 only 22% of Americans knew what
podcasting was – in 2017 it was up to 60%.
Essentially a radio show that you can get on the
internet it removes the requirement to listen at a
given time – and if you download it you can listen
even when you don’t have an internet connection.
There is something for everyone, fiction, non-fiction,
sport, reviews of shows, comedy and even one
focusing on the forthcoming Royal wedding. US
advertising revenues were estimated in 2017 to be
$220m which was a 95% increase on the 2016.
Financial Times, 12 February 2018, p12
Fads by age group
Each age group has a fad, but sadly for Facebook
the new teens don’t see Facebook as the fad: they
favour Snapchat. Over 2.8m users under 25 left
Facebook last year. But on the bright side over-55s
are flocking to Facebook. However, Snapchat are
picking up some in the 45-54 age bracket as the
disposable messaging system seem ideal for
communication about covert liaisons. For more
information in this survey visit www.emarketer.com.
The Times, 13 February 2018, p12; The Daily Telegraph,
13 February 2018, p8; The Guardian, 12 February 2018,
p33
Packaging
Thinking differently
Smurfit Kappa, the paper maker is hoping to take
advantage of the anti-plastic movement. Tony
Smurfit, chief executive, believes there has been a
“sea change” with regard to concerns over the
impact of packaging on the environment. The
company has a team “dedicated to highlighting the
importance of paper in replacing some plastics”.
Smurfit has been innovating by offering plastic
alternatives, such as a new type of packaging for
© Copyright 2018 CIM
motor oil”.
The Daily Telegraph (Business), 8 February 2018, p8
Retailing
What should brands do about Amazon?
According to a 2017 survey, 39% of all online spend
in the UK and 57% in the US went to Amazon. It is
Amazon’s dedication to the consumer “that puts it at
the top of the retail class”. Amazon has set out to
own all the e-commerce interactions that a
consumer might have, making it their default
destination. By owning all the interfaces Amazon can
cross-sell and upsell. Brands and retailers cannot
afford to sit back and let Amazon take over. The
author offers a strategy for fighting back.
Cambridge Marketing Review, Issue 13, Winter 2017,
pp32-37 (Fletcher)
The future of shopping
Shops are undergoing a transformation in response
to digital technologies and the need to compete.
According to John Lewis’s Retail Report, “shops must
be destinations for a broad range of memorable and
unique experiences”. They are no longer just places
where products are purchased but spaces where
customers can experience products and discuss
them in social media or on video. These
expectations are being driven, not surprisingly, by
younger shoppers in their 20s and 30s: the
Millennials. Tableware International talks to two
design agencies – Gruschwitz and NellyRodi – who
have created future shopping spaces.
Tableware International, Vol 139(6) January-February
2018, pp68-69
Sainsbury’s in Valentine’s Day sexism debacle
Sainsbury’s has been accused of sexism after it was
found to charge women more than men for identical
Valentine’s Day cards. Cards from wives to husbands
cost 50p more those from husbands to wives.
Following complaints from shoppers, Sainsbury’s has
now removed the price difference. A spokesperson
said: “We appreciated this error being brought to
our attention” but Dr Panos Sousounis of Keele
University has suggested that the pricing could have
been due to perceived differences in shopping habits
between the sexes.
The Daily Telegraph, 9 February 2018, p10
Tesco expansion – but which way
Product and service innovation are a must for any
product or brand as standing still can see your
competitors pass you by. Allegedly Tesco are
investigating two possible service changes: A smaller
store stocking only 3,000 lines (rather than the
25,000 stocked in Tesco Extras) and a Costco style
bulk purchase brand. Competing with Aldi and Lidl is
essential as Aldi have already captured 6.9% of the
market. Tesco’s tie up with Booker will also be a
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Cutting Edge: Our weekly analysis of marketing news
help as Booker already has its own branded
products.
The Guardian, 12 February 2018, p12
Services
Weight Watchers axes before and after photo
Weight Watchers is to abandon its famous “before
and after” photo after it decided that it was
outmoded and not in keeping with modern values.
The company, which made the announcement at a
recent conference in the US to relaunch its brand,
says it wants to promote permanent life changes
rather than short-term diets.
The Daily Telegraph, 9 February 2018, p9
© Copyright 2018 CIM
Transport and travel
Will ride-hailing take to the air?
Joby Aviation Inc. is a start-up that has spent nine
years designing a new type of aircraft for short
journeys. The craft, which is a cross between a
drone and a small plane, can manage a vertical
take-off and a 15-minute flight powered by electric
motors. JoeBen Bevirt, founder and CEO, hopes that
these air taxis will one day carry people around
cities. Joby has backing from investors including
Intel, Toyota and JetBlue.
Bloomberg Businessweek, 5 February 2018, pp21-22
Written by CIM’s Knowledge Services Team
© Copyright 2018 CIM
The views expressed in Cutting Edge are not
necessarily those of The Chartered Institute of
Marketing.
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Cutting Edge: Our weekly analysis of marketing news
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Cutting Edge: Our weekly analysis of marketing news

Contents
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