Saturday, 22 October 2011
The Great British Bake-Off
News of increasing sales of cake tins and associated ‘kit’ might be ascribed to the new thrift and also to the television programme of the same name. Well a visit to my local farmers’ market today brought more joy. Amongst the usual stalls of locally grown vegetables, locally reared lamb and goat, and Lancashire Bombs (very tasty cheese) were no fewer than 3 cake stalls. In prime position was “Macarons by Design”. Here we can see Margaret Maddern, proud baker and stall holder. We sampled her wares as shown below including orange, mint and chocolate, salted peanut, and chilli and chocolate. A very nice treat indeed. Margaret’s macarons (sic) are gluten-free and can be frozen.
Friday, 14 October 2011
Supermarket law shops to open?
I was asked by our press agency a week ago to write something on the news that supermarkets could start selling legal services. The comment didn't make the press so here is what I wrote anyway:
News that retailers are to start offering legal advice is just part of their move to extend and leverage their brands. In many ways retailers have been mould-breakers and have taken advantage of opportunities to offer a wide range of services at affordable prices. In the past we have seen retailers move into new areas such as eye testing and selling glasses, whilst also tackling restrictive pricing in over-the-counter pharmaceuticals. These initiatives have helped inject greater price competitiveness into new sectors. Whilst the legal profession may be up in arms, the true test will be consumers’ take up of the new services. Given the trust some retailers enjoy these may be worrying times for lawyers.
News that retailers are to start offering legal advice is just part of their move to extend and leverage their brands. In many ways retailers have been mould-breakers and have taken advantage of opportunities to offer a wide range of services at affordable prices. In the past we have seen retailers move into new areas such as eye testing and selling glasses, whilst also tackling restrictive pricing in over-the-counter pharmaceuticals. These initiatives have helped inject greater price competitiveness into new sectors. Whilst the legal profession may be up in arms, the true test will be consumers’ take up of the new services. Given the trust some retailers enjoy these may be worrying times for lawyers.
This is not a price war
I was interviewed over the phone two days ago by David Henry of the Manchester Evening News. This is what he came up with:
Daniel is listening to the music
Following on from a previous posting - "Halfords are listening to Josh Cooper" - another of my final year undergraduates on my Retail Marketing elective, Daniel Badzire-Smith, has shared this recent experience with me. His observations beg the question if there are optimum music types and genres for different settings:
"Last night I went to Pizza Express in the centre of Manchester, with two of my friends from my local cricket club. Throughout the meal we were surprised by the choice in music the restaurant played, it seemed like it was Motown Gold - all classics by the Jackson 5, Lionel Richie, Diana Ross and many others. The songs were all catchy, things we've heard before and so we developed a game as to who could guess the song first.
When paying the bill at the end of the meal, alleviating from the socially awkward situation were you're waiting for seemingly a life time for PDQ card machines to work, one of my friends asked the waiter what the CD was because "it was cracking". The waiter responded by saying that it was something they had made themselves as the manager didn't like the "pretentious jazz music" that all restaurants are given by HQ and feel playing something customers "know and could sing along to (I'm not sure who sings along to background music in restaurants?) makes them feel more at ease."
Looking at this from a marketing perspective, making a comfortable environment for customers could generate repeat custom as they enjoyed their experience. It could also lead to customers staying in the restaurant for longer, whilst this may impact customer turn over, meaning there is the opportunity to sell more drinks, desserts and coffees which generally have high margins in restaurants. Furthermore this is the impact of perceived service which could lead to better tips for waiters and the opportunity for more relaxed customers to develop relationships with the service staff, again which can lead to repeat custom.
This is important given the large degree of competition, not just from other restaurants but I think there are 5 Pizza Express restaurants just in Manchester City Center. I probably should add this is the third Thursday in a row I've been to that Pizza Express, sitting in exactly the same seats."
"Last night I went to Pizza Express in the centre of Manchester, with two of my friends from my local cricket club. Throughout the meal we were surprised by the choice in music the restaurant played, it seemed like it was Motown Gold - all classics by the Jackson 5, Lionel Richie, Diana Ross and many others. The songs were all catchy, things we've heard before and so we developed a game as to who could guess the song first.
When paying the bill at the end of the meal, alleviating from the socially awkward situation were you're waiting for seemingly a life time for PDQ card machines to work, one of my friends asked the waiter what the CD was because "it was cracking". The waiter responded by saying that it was something they had made themselves as the manager didn't like the "pretentious jazz music" that all restaurants are given by HQ and feel playing something customers "know and could sing along to (I'm not sure who sings along to background music in restaurants?) makes them feel more at ease."
Looking at this from a marketing perspective, making a comfortable environment for customers could generate repeat custom as they enjoyed their experience. It could also lead to customers staying in the restaurant for longer, whilst this may impact customer turn over, meaning there is the opportunity to sell more drinks, desserts and coffees which generally have high margins in restaurants. Furthermore this is the impact of perceived service which could lead to better tips for waiters and the opportunity for more relaxed customers to develop relationships with the service staff, again which can lead to repeat custom.
This is important given the large degree of competition, not just from other restaurants but I think there are 5 Pizza Express restaurants just in Manchester City Center. I probably should add this is the third Thursday in a row I've been to that Pizza Express, sitting in exactly the same seats."
Monday, 10 October 2011
Halfords are listening to Josh Cooper
I have just started teaching my final year elective on Retail Marketing to undergraduates here at Manchester Business School. I was very taken by this email I received from Josh Cooper*:
"I would like to tell you about a ridiculous scenario which played out this morning when I purchased a bike for my sister from Halfords
I went in to the store, having found the bike I wanted online (the very modest price of £120) and asked if I could buy it. The sales assistant directed me to the bike in question, and was very helpful. However, upon finding the bike, the price tag was £140 instead of the aforementioned £120. I informed him of this discrepancy, but he shrugged his shoulders, and told me there was nothing he could do about it.
So I asked him if they did in-store collection; he replied in the affirmative. Whilst standing in front of him, and the bike in question, I used my phone to buy it there and then. After purchasing the product online, I showed him the image of the bike we were stood next to, and asked if he had it in stock for me to collect. He nodded, I think a little dumbfounded at my cheek, and took the bike off the rack for me to pick-up. He then told me was it okay if I talked to his manager, because it was the third time that month that somebody had done that to him.
The store manager said he would be telling my story to senior management, and he said they would probably be enacting change because of my actions, so I suppose I have helped Halfords in the long term.
Weird story, and as soon as I left, I thought to myself 'John Pal is going to love this'"
*Reproduced with permission
Yes, indeed, Josh I do love this!!!
"I would like to tell you about a ridiculous scenario which played out this morning when I purchased a bike for my sister from Halfords
I went in to the store, having found the bike I wanted online (the very modest price of £120) and asked if I could buy it. The sales assistant directed me to the bike in question, and was very helpful. However, upon finding the bike, the price tag was £140 instead of the aforementioned £120. I informed him of this discrepancy, but he shrugged his shoulders, and told me there was nothing he could do about it.
So I asked him if they did in-store collection; he replied in the affirmative. Whilst standing in front of him, and the bike in question, I used my phone to buy it there and then. After purchasing the product online, I showed him the image of the bike we were stood next to, and asked if he had it in stock for me to collect. He nodded, I think a little dumbfounded at my cheek, and took the bike off the rack for me to pick-up. He then told me was it okay if I talked to his manager, because it was the third time that month that somebody had done that to him.
The store manager said he would be telling my story to senior management, and he said they would probably be enacting change because of my actions, so I suppose I have helped Halfords in the long term.
Weird story, and as soon as I left, I thought to myself 'John Pal is going to love this'"
*Reproduced with permission
Yes, indeed, Josh I do love this!!!
The full letter to The Grocer
I've had a letter to The Grocer published in this week's issue (8 October 2011) - but it has been heavily edited.
So here is the full letter:
Last week was certainly a week for headline grabbing numbers in the grocery sector. As Tesco announced £500m of price cuts, Morrison was lambasted in a report by Head Agency estimating that the company had lost out on £314m of sales because it has had no etail-presence. A reading of the Head Agency’s report provides some useful ideas for retailers and emphasises the need for online engagement, but the fact that Morrison’s ‘lost out’ should come as no surprise. The conscious decision by the firm to be a late online adopter is probably a cultural legacy of the Ken Morrison ethos of their simple, but certainly not simplistic, approach to retail success. Whilst early adopters such as Tesco may have stolen a march on Morrisons, the northern-based firm has been investing in other areas and is now beefing up its virtual presence. Organisations in general, and retailers are no exception, change leadership to provide new impetus. Whilst Dalton Phillips’ appointment was not planned he has provided that impetus and Simon Thomas’s appointment from Apple earlier this month is further proof that, from a low base , Morrisons will no doubt be the growth story here. Not only has Morrisons taken a 10% stake in FreshDirect, the US online grocery business, the acquisition of kiddcare.com brings into the firm more experience and expertise required for the firm to move to the next level of e-development. Whilst Tesco may have had first-mover advantage Morrison’s will be upping its game here.
An interesting aspect of the Head report is a call for greater customer engagement, an area that Ocado is commended on. The report suggests retailers’ ability to deal with customers on a one-to-one basis by the use of, for instance, social media and follow-up emails is part of the battle ground to qualify for consumers’ patronage. But these activities can be resource-heavy and the ability to get it wrong, as seen by some retailers’ anodyne responses to customer feedback on maryportas.com/secretshopper, is probably indicative of the challenges and, no doubt, costs of trying to offer an individualised response.
It is clear that consumers’ expectations are on the increase, be it in terms of price or convenience in particular. That convenience also means the ability to shop when and where the consumer wants, using devices of choice – and it is clear that the UK leading retailers are embracing this opportunity. However, the Head report is critical of the failure of retailers in general to keep their e-offers up to date and compliant with the many different mobile devices in particular. On top of this we can add the promiscuous nature of today’s shopper. And whilst the Head report identifies the potential lost sales from not having the ‘right’ e-presence the challenge still remains for some retailers on how to make a profit from the new channel in these straitened times.
So here is the full letter:
Last week was certainly a week for headline grabbing numbers in the grocery sector. As Tesco announced £500m of price cuts, Morrison was lambasted in a report by Head Agency estimating that the company had lost out on £314m of sales because it has had no etail-presence. A reading of the Head Agency’s report provides some useful ideas for retailers and emphasises the need for online engagement, but the fact that Morrison’s ‘lost out’ should come as no surprise. The conscious decision by the firm to be a late online adopter is probably a cultural legacy of the Ken Morrison ethos of their simple, but certainly not simplistic, approach to retail success. Whilst early adopters such as Tesco may have stolen a march on Morrisons, the northern-based firm has been investing in other areas and is now beefing up its virtual presence. Organisations in general, and retailers are no exception, change leadership to provide new impetus. Whilst Dalton Phillips’ appointment was not planned he has provided that impetus and Simon Thomas’s appointment from Apple earlier this month is further proof that, from a low base , Morrisons will no doubt be the growth story here. Not only has Morrisons taken a 10% stake in FreshDirect, the US online grocery business, the acquisition of kiddcare.com brings into the firm more experience and expertise required for the firm to move to the next level of e-development. Whilst Tesco may have had first-mover advantage Morrison’s will be upping its game here.
An interesting aspect of the Head report is a call for greater customer engagement, an area that Ocado is commended on. The report suggests retailers’ ability to deal with customers on a one-to-one basis by the use of, for instance, social media and follow-up emails is part of the battle ground to qualify for consumers’ patronage. But these activities can be resource-heavy and the ability to get it wrong, as seen by some retailers’ anodyne responses to customer feedback on maryportas.com/secretshopper, is probably indicative of the challenges and, no doubt, costs of trying to offer an individualised response.
It is clear that consumers’ expectations are on the increase, be it in terms of price or convenience in particular. That convenience also means the ability to shop when and where the consumer wants, using devices of choice – and it is clear that the UK leading retailers are embracing this opportunity. However, the Head report is critical of the failure of retailers in general to keep their e-offers up to date and compliant with the many different mobile devices in particular. On top of this we can add the promiscuous nature of today’s shopper. And whilst the Head report identifies the potential lost sales from not having the ‘right’ e-presence the challenge still remains for some retailers on how to make a profit from the new channel in these straitened times.
Thursday, 23 June 2011
21 years ago
Yesterday Ray Kelvin, the man closest to Ted (Baker) picked up his CBE. Today it was announced that Schuh, the funky footwear retailer, has been sold to an American firm for £125 million. And what connects the two pieces of news? Well, 21 years ago Ted Baker and Schuh were part of the now defunct Goldberg group.
21 years ago the Houndshill Shopping Centre was anchored by Goldberg's (which I managed). Change really is the only constant in retailing as a tour round Blackpool this morning shows. Since then the Houndshill Centre has been extended and refurbished. It is now anchored by a Debenhams. Elsewhere in the town centre the old C&A store is now a TK Maxx; two Woolworths stores are now TJ Hughes and Home Bargains; the Alexon shop is now a Poundland; the Clarks shoe shop is now Nandos; the former Next is now empty as it, like the former River Island store (now a Madhouse), are both prominent in the refurbished Houndshill Centre.
As retailers have gravitated towards the Houndshill Centre, elsewhere the town centre is home to an array of charity shops and a plethora of value stores. The cafe society is alive and well though. I suppose Blackpool is just indicative of some general retail trends.
21 years ago the Houndshill Shopping Centre was anchored by Goldberg's (which I managed). Change really is the only constant in retailing as a tour round Blackpool this morning shows. Since then the Houndshill Centre has been extended and refurbished. It is now anchored by a Debenhams. Elsewhere in the town centre the old C&A store is now a TK Maxx; two Woolworths stores are now TJ Hughes and Home Bargains; the Alexon shop is now a Poundland; the Clarks shoe shop is now Nandos; the former Next is now empty as it, like the former River Island store (now a Madhouse), are both prominent in the refurbished Houndshill Centre.
As retailers have gravitated towards the Houndshill Centre, elsewhere the town centre is home to an array of charity shops and a plethora of value stores. The cafe society is alive and well though. I suppose Blackpool is just indicative of some general retail trends.
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