Recent presentation that I made to a lively bunch of students from Denmark

1. New Marketing Communications
Lessons from the Fashion Sector
Bill Webb
The London College of Fashion
Niels Brock Business School Visit
September 2014

2. The Origins of Marketing
 The “Four Ps” E. Jerome McCarthy, 1960
 Supplier & Brand Centric
 FMCG Focus
 “The management process responsible for
identifying, anticipating and satisfying
customer requirements profitably”
The UK Marketing Society, 1995
 Power Shift from Manufacturer to Retailer

3. The Traditional Marketing Model
Source: Pickton & Broderick, 2001

4. “The End of Marketing as we Know It”
Sergio Zyman, CMO, Coca-Cola, 2000
 Customers aren’t
listening or responding
 Marketing expenditure is
wasted
 Retailer brand
ownership is only a
stage
 A new vision and new
techniques are required

5. Definition of New Marketing
 Non-traditional
ways of
communicating
with, and
influencing, our
customers

6. Today’s “omni-channel” shoppers
 Our customers are now skilful, “professional”
shoppers
- informed, demanding, time poor, connected,
promiscuous, environmentally aware.........
 Personal budgets have been squeezed and
stretched
 Buying decisions are more complex
 New technology has served to empower
consumers
 The purchasing process now takes across
channels

7. Buying Clothes Online or In-Store?
12
50
45
40
35
30
25
20
15
10
5
Source: GMI/Mintel
11
43
17 17
15
11
39
18
17
22
16
36
15
11
0
I buy more clothes
online than in-store
I buy around the
same amount of
clothes online and
in-store
I buy clothes online,
but buy more clothes
in-store
I have browsed for
clothes online but
have never bought
I have never
browsed for clothes
online
%
2010 2011 2012

8. Shops exist because they carry out
Functions that Add Value
 Pre-select & edit product ranges
 Provide value-for-money prices
 Break bulk
 Provide time & location convenience
 Hold stock
 Provide information for customers
 Provide product support & service
 Provide credit
Q: do we
still need
shops for
all this?

9. Rationale for New Marketing
 Fragmented markets
 Saturated markets – focus on “wants”
 Communication overload
 Customers have “wised up” to
traditional techniques – loss of Trust &
Relationship factors
 Technology developments
 Cost productivity pressures

10. “Permission Marketing”
Seth Godin (2000)
 Direct Marketing

 Relationship
Marketing

 Permission
Marketing

11. Brand Usurpers & Brand Terrorists

12. Characteristic of New Marketing
 Focussed activities
 Consumer is involved – “conversations”
not “communications”
 Search for more credibility & trust
 Development of Communities
 Media has greater affinity with brand
values

13. New Marketing
Advertising
PR VM
Sales Promotion
Guerrilla Marketing
/Ambush Marketing
Viral Marketing
Celebrity Marketing
Cause Related Marketing
Experiential marketing
Scarcity Marketing
Social Media

14. Scarcity Marketing
 Fast Fashion
 WIGIG
 On/offline Outlet stores
 Limited Editions
 Pop-up everything
 Trunk/sample sales
 Luxury
 Customization

15. Guerrilla Marketing
The use of non-conventional, semi-legal
“ambient media” to increase brand awareness
 Fly posting
 Stencilling
 Stickers
 Product placement in “cool”
venues
 “Freebies” – Levis brand
magnets
 Demonstrators
 Laser projections – “Gobos”
 Event hosting
 Pirate radio station ads
Gail Porter

16. Guerrilla Marketing - Examples
Tomy “Micro Babies”
Ben & Jerry’s
Sloggi
Plaza Shopping Centre
Pilot watches

17. Flash Mobs & Ambush Marketing
Hugo Boss @ British Open Golf - Turnbery
Bavaria Beer in South Africa

18. Temporary “Pop-Up” Shops
Levi’s
Adidas
Diesel – 55DSL
Comme des
Garcons
IKEA

19. Pop-ups and brand spaces

20. Motorola (Products RED)
Pop up Store –
Chicago
2 weeks only

21. Experiential Marketing - Brand Flagships
“Don’t call it a store – call it and Ad with walls” – Stuart Elliot.
New York Times
Apple
Regent Street
London
“forget the shoes, Prada's
new store stocks ideas”
NY Times

22. Cause Related Marketing
 Tesco – C f S
 Monsoon/East – India
 Body Shop
 Breakthrough Breast
Cancer – M&S, River
Island, Avon, etc
 Levi – War Zone
 Giordano – anti-suicide
 Top Shop/Office - MS

23. Co-Branding in Fashion
 Cause related marketing
 Celebrity marketing
 Sponsorship
 Complementary products
 Designers
 Country of Origin

24. Designer Co-Branding in
Fashion
Stella McCartney
with Adidas

25. H&M

26. Celebrity Marketing
 H & M – David Beckham
 GAP – Angelica Huston
 Miss Dior – Natalie Portman
 Coach – Gwyneth Paltrow
 Nike – Michael Jordan
 Mango – Penelope Cruz
 Burberry – Emma Watson
 Chanel No 5 – Brad Pitt

27. Sponsorship
 Top Shop/River
Island/ASDA-George
 New talent – “Re-
Creation” with Dazed &
Confused
 Designer boutiques
 Graduate Fashion Week
 New Generation Awards

28. Benefits of Co-branding
 Differentiation – “cool” – peer reference
aspiration. Strong & simple
 Branding relates more to emotion &
values than to attributes
 Positive image creation & recall
 Brand preference & purchase
 Price premium
 Free PR
 Motivate investors and employees

29. Issues in Co-branding
 Selection of partner(s) – credibility,
availability, exclusivity, popularity, risk
 Timing & Control
 Integrity – partners “live the brand”
 Transparency
 Partnership – shared values
 Mutual benefits
 Integration of total marketing mix

30. Celebrities can let you down
Negative impact on Brand
Reputation by association

31. Viral Marketing (Social Media Marketing)
The use of a brand’s customers to increase
awareness and change attitudes
 How fashion spreads – brand leaders 
early adopters  late adopters  laggards
 Customer types – Promoters (“brand
evangelists”), Passively Satisfied, Detractors
(“brand vandals”) - Frederick Reichheld
 WOM = Word of Mouth – accounts for
67% of new sales (McKinsey)
 “The Tipping Point” Malcolm Gladwell

32. Customers as Brand
Ambassadors
“Reichheld’s research indicates that there is a
strong correlation between a company’s growth
rate and the percentage of its customers who are
willing to recommend the company to a friend”
The Economist
“The only path to profitable growth may lie in a
company’s ability to get its loyal customers to
become, in effect, its marketing department”
Frederick Reichheld – Bain & Co

33. The Net Promoter Score
(Reichheld)
Likely to Recommend
Extremely Unlikely Extremely Likely
- 5 + 5
Detractors Passives Promoters
NPS ( eg +2.76) = Average of Promoters & Detractors

34. Net Promoter Score –
Boots Example

35. Michelle Mone – Brand Evangelist
“I love Montblanc pens.
I’ve got more than 30 –
I’ve got the highlighters,
the fountains pens, the
lot. Whenever I’m in an
airport I think ‘I must
go and get the new
Montblanc pen’ It’s my
indulgence”
Metro, 13.01.2009
Michelle Mone -
Ultimo

36. Service Reputation
 “We take those funds that might
otherwise be used to shout about
our service, and put those funds
instead into improving the service.
If you do build a great experience,
customers tell each other about
that. Word of Mouth is very
powerful”
Jeff Bezos, CEO Amazon.com.
Business Week, July, 2004

37. Nordstrom – US Top Spot 2012

38. “Buzzing” – Brand Ambassadors
 Bzz Agent – 60,000
volunteer agents
 Tremor (P&G) –
240,000 teenagers
 Lee Jeans “Truefit”
campaign – 1,000
buzz agents

39. Purchase Influencers
“Mavens” (Gladwell)
Younger generation

40. Electronic Viral Marketing
= Social Media Marketing
 Beyond E-mail marketing
 “Social media” is the social interaction
among people in which they create,
share or exchange information and
ideas in virtual communities and
networks
 Fastest growing use for the Internet
and fastest growing marketing
instrument – 67% brands on Instagram

41. Digital Marketing Spend 2014
(USA)

42. Types of Social Media
 Collaborative (wikipedia)
 Blogs, Microblogs & Vlogs (twitter)
 Content Communities (YouTube)
 Social Networking (Facebook)
 Gaming (Minecraft)
 Virtual Social Worlds (Second Life)
Channel can be Brand Controlled or Externally Controlled

43. International & Local Examples
 English speaking world – YouTube, Twitter,
Tumblr, Instagram, Facebook, Pinterest, Google +
 China - WeChat, Qzone, RenRen
 Japan – NicoNicoDouga
 Indonesia – Zorpia
 India, Brazil – Orkut
 Russia – Vkontakte
 France – Skyrock
 Italy – Badoo
 Germany – Gutefrage, Xing
 Denmark – Amino, Arto

44. Example – Yoox (Italy) on
WeChat (China)

45. Emerging markets are heavy
users

46. Engaging with Social Media is
challenging, but effective

47. Example – Piperlime (GAP)
August 2014

48. Example – Dover Street Market
Comme des Garçons

49. Example – Burberry, Shanghai
Burberry used WeChat to launch its new flagship
store in Shanghai and A/W 2014 collection

50. Objectives & Benefits of Social
Media Marketing
 Brand awareness, advocacy, engagement,
reputation, community building, sales….

51. Management of Social Media
- becoming more professional - Gleamfutures
 Objectives
 Planning
 Skills
 Control/”rules”
 Monetize
 Budgets
 Evaluation/ROI
 Personality
 Community culture
 Content
 Forecasting
 Customer Insight
 Resonance & trust
 IT/”Big Data”
 Troubleshooting
 Risk analysis
 Marketing integration
 Commitment

52. The Flows of New Marketing

53. Where will it all End?
Rational Analysis of Management Fads – Remember ECR?
Daniel Staib
GDI, Zurich

54. Reading
 Sue Adkins – Who Cares Wins
 Mark Schaefer – Social Media Explained
 Frederick Reichheld – The Ultimate Question &The
Loyalty Effect
 Alan Mitchell – Right Side Up
 Jay Levinson – Guerrilla Marketing
 Seth Godin – Unleashing the Idea Virus & Purple Cow
 George Silverman – The Secret World of Word of
Mouth Marketing
 Malcolm Gladwell – The Tipping Point
 Glen Urban – The Emerging Era of Customer
Advocacy (Sloan Management Review – Winter 2004)

55. …….and Good Luck

56. Bill Webb
 Senior Lecturer - LCF
 Scholar of Cambridge University
 Marketing Manager/Director - Jaeger,
Johnson & Johnson and Storehouse
 Director, Management Horizons
 Marketing Director - Fitch Retail Design
 Director, Conzept International
 Retail Consulting Career
 Member of Ebeltoft Group (local member:
 Retail Institute Scandinavia-Århus)

57. The University of the Arts London
 Largest university for design & fashion in
Europe
 Over 20,000 students from more than 130
countries
 Six colleges with individual specialisms
 London College of Fashion School of Science
and (retail) Management
 Member of the Association of Business
Schools
 Member of The European Retail Academy
 Centres for management consulting and
industry training
 Extensive research into fashion and retail
sectors

58. Ebeltoft Group
Ebeltoft Group is a worldwide alliance of
retail consultancies with members in
numerous mature and emerging retail
markets.
Responding to our client´s demand and
market globalization, we offer pragmatic
retail consulting services and conduct global
insight research.
We are unique in our ability to combine
global retail expertise with deep local
insight and turning this into innovative and
practical solutions.
North America: United States and Canada
Europe: Denmark, France, Germany, Italy, Netherlands,
Portugal, Romania, Spain, Turkey and United Kingdom.
And Switzerland.
Latin America:
Brazil and Mexico
Asia Pacific: Australia, China,
Singapore and India

59.  Ebeltoft Group
 Bill Webb
 b.webb@fashion.arts.ac.uk
 webbontheweb@yahoo.com
 T: +44 (0)7768 453169
 www.ebeltoftgroup.com
 Facebook & Linkedin