How far can misleading advertising go?

aprilie 15th, 2016   •   diverse, Marketing & vanzari, Noutati   •   no comments   
How far can misleading advertising go?

 

“Anything that touches the human body affects not only the body but also the spirit of the human being.”

Let’s relax for one minute and start to think in a lucid manner. Nowadays many of us become preoccupied about quality aspects of our lives in all senses: work-life balance, nutritional aspects, environment, hobbies, traveling and personal & spiritual development.

At the same time in our evolution we highly improve technology and develop online world as a reflection of our need for freedom of choices, travel mobility, information accessibility and multiplying our options in life. Technology became part of our DNA and right now, in every minute, our behavior is changing. We became demanding as our technology is asking for distinct, relevant and credible benefits of products.

Despite this unquestionable reality, surprisingly many of the food industry marketers are foolishly playing old games with consumers.

When we search for food, in order to fulfill QUALITY NEEDS we are surrounded by tremendous adds and labeling with amazing “natural”-“bio”-“eco” products. What does “natural”-“bio”-“eco” food claims really mean for us, as consumers? Nothing precisely, just a vague idea that this labeled product is the best in his category.

But what happens when consumer starts doing a basic research?

First he will reach Wikipedia, Google or YouTube to find a definition:

He will discover that “natural” labeled food has NO PRECISELY BENEFIT for him, is just a widely marketing term. The term is often assumed to imply foods that are minimally processed but the lack of standards in most jurisdictions means that the label or packaging printed with the claim “natural” ASSURES NOTHING for him. Nothing at all! So, marketers can print the claim “natural” even on the packaging of additives, and preservatives used for food production!

Going forward consumer will discover that a definition for “eco-food” and “bio-food” doesn’t exist! There is only a definition referring to “bio-products” which are materials, chemicals and energy derived from renewable biological resources but obvious nothing related with food.

I presume you are disillusioned, this was not what you thought when buying the last food labeled with “natural” or “bio”…. This was only in your imagination….“Solo un trucco”! (Only a trick!) as a famous expression from Oscar movie La Grande Belleza was said when a magician made the giraffe disappear…

How is this possible?

For ages, subliminal communication influences people and the most eloquent example is the permanent humanity confusion between “Religion” and “Faith”. So using subliminal communication it was a piece of cake for marketers around the world to play in their own interest “natural”-“bio”-“eco” claims and charge those products as Premium products!

They didn’t stop here. They improved the labels whit GREAT messages: “The flavor of your childhood”, “food or drink with flavor of”…name it you have it. Sure they can put any flavor on the food because today chemistry provides any flavors we want. Any! There is a fundamental difference between “the flavors of…” and the “real product”, but consumer will realize this sadly in a long run only …

And this is not all. Have you seen lately food packaging with familiar images: local people, animals and beautiful landscapes?

Anticipating the consumer’s attachment and positive evaluation for traditional products, they “dress” the “natural”-“eco”-“bio” products in “traditional costumes”. But when the consumer will read the label he will realize that the product is produced in mass-production factory and many times abroad, not in his own country. Traditional has no linkage with enormous factories or stainless steel pipes.

 

The truth

In the end, consumer finalizes his research (because he can!) and discovers what is the name of his “Imaginary Expectations” when he bought that “organic” food: ‘Organic Food is the product of a farming system which avoids the use of man-made fertilizers, pesticides; growth regulators and livestock feed additives. Irradiation and the use of genetically modified organisms (GMOs) or products produced from or by GMOs are generally prohibited by organic legislation.”

But usage of ORGANIC claim on the products is strictly regulated so you cannot use it on your packaging as you wish and when you wish! There are specialized bodies that periodically control your product process and give you the permit to use ORGANIC claim on your packaging.

 

THE END

Maybe I would have understood this primitive marketing tactics 20 years ago but nowadays this will look very stupid for both producers and consumers…

Marketers must understand that technology offers infinite information to consumer and creates an amazing BRIDGE for consumers to get what they really want and for organic food producers to reach its consumers. Technology CANCELS the previous paradigm when the only source of information for consumer is those fancy food ads. Today is consumer REVENGE TIME; as now they can constantly and publicly evaluate the products before buying and post-consumption.

The consumer has the power not only to replace quickly the food products with the competitor’s similar product but also to “substitute” the products of both producers. Being surrounded by junk and fast food, organic food sounds for some of us, a utopic dream. But as alternative energy accelerates despite the oil dramatic price reduction, nutrition movement (from QUANTITY to QUALITY) is one of those irreversible processes that humanity faces today.

In these circumstances, using the common sense, empathizing with consumers, creating quality products, using honest and credible claims will generate a fair experience for consumers; other way marketers and their brands will pay the price.

 

It happens right now in Europe!

Italy organic food recorded a compound annual growth rate of 12,3% between 2010-2015. Sales are continuing to boom, as more Italian consumers are willing to pay extra for better QUALITY food. Accordingly, organic packaged food in Italy is blossoming, recording double-digit growth in value.

 What are the main trends?

The most important drivers are product expansion, increasing demand for premium, high-priced nutrition products, a consumer changing habits towards food. Consumers in Italy have started focusing more on healthy food, prioritizing QUALITY over QUANTITY, and preferring to buy less but more premium and organic food.

 Economic, Social, and Environmental BENEFITS from Consumer Perspective.

Italian consumers want to get closer to producers, to their own community, and since they believe that organic products are healthier, sales have increased accordingly, especially for food that is produced by local producer and labeled ‘Made in Italy’.

 

Business Model Duplication – Romania

Taking into consideration, all the facts mentioned above, culture similarity, economic situation, landscape generosity I presume in the nearest future Romania will follow the same pattern! When this business model will be well understood by local organic producers and consumers will become familiar with it then it’s going to be only a question of time when the model will replicate nationwide.

„59sec” How mobile apps boost your sales conversion and redesign customer experience with your brand.

martie 23rd, 2016   •   Marketing & vanzari, Noutati   •   1 comment   
„59sec” How mobile apps boost your sales conversion and redesign customer experience with your brand.

Successful players are adapting faster than their competitors: they increasingly invest in digital and bring innovation—new functionalities in their mobile apps. This usually means shifting investments from traditional marketing channels to digital.

Mobile has been the major disrupter, particularly in the last couple of years. The rise in mobile makes the proliferation of apps ever more critical. Digital usage is shifting customers away from desktop and laptop to mobile—and specifically to mobile apps. When …

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people use mobile devices, they’re using apps, decreasing the influence of the web-based searching.

„59sec”  – Case Study

Kuantero, a Romanian e-marketing agency, faced in 2012 a controversial situation with a customer, a major player in automotive industry, regarding a Google AdWords campaign: lack of conversion.

After a lot of reviews and re-settings of campaigns, the problem still remained. The leads were generated, but, at the end of the month, when the analyses were made, the conversion lacked. Everybody in the agency was puzzled. Why this happened? Why the conversion was so low?

At some point, the agency did a mystery shopping. What was the result? The client’s sales agents followed up the leads in an average of 24 hours. That explained the low conversion rate.

study

 

 

International researchesUntitled

A study developed by Kellogg and MIT in 2007 proves how fast sales representatives response improves contact rates.

 

 

Following a meeting between Agency GM Constantin Ferseta and the President of the automotive company, they both conclude that a different approach is necessary to manage this situation. The major inconvenient was that customer has several sales agents, but they could not make them act fast and grab the leads.

In these circumstances Mr. Ferseta developed a new service, 59sec, that act as a set of procedures for sales teams in order to boost conversion rates.

How “59sec” works?

    • Potential customer generates the lead on the company site;
    • In the next second, all sales agents receive notifications on their mobile devices (if they are agents on the ground) or on computer (if they are in a Call Center);
    • First available agent grabs the lead. The counter stops and the lead disappear from the list (in order to avoid duplication);
    • The agent calls the potential client. This fast response generates a UNIQUE experience for client. Usually this translates in increased conversion even 20x higher;
    • After the call, the agent goes to CRM, where he set the status of the lead plus he has to set a follow-up date/time.

If the lead is not grabbed in 10/30 minutes, all agents receive reminders. If the lead is still not grabbed, the manager will receive a notification:

Hey, your sales team could not grab this lead. You are wasting money on Google AdWords and Facebook Ads. Either your team is overwhelmed – or you have to hire more people, either your team has the wrong priorities. Again, you should do something about it.”

If a lead is set to follow-up, the agent is required to enter a date and hour. When the time comes, the agent is notified that he has to do the follow-up. If the follow-up is not done, there are 2 reminders. If the follow-up still is not done, the manager receives again a boss notification.

59sec also provides useful statistics for manager and teams. More details on how to get a guaranteed boost in conversion we can receive from Constantin Ferseta (www.59sec.com, www.kuantero.com). I presume he will grab the lead!

 

Conclusion                       

This case highlights the real impact of mobile app on today businesses. Transforming customer experience with the brand in a UNIQUE EXPERIENCE through mobile apps is becoming an unquestionably source of competitive advantage!

When Mr. Ferseta and his team started developing 59sec he was focused, mainly on aspects related with sales operations:

    • Poor response time of internet generated leads;
    • The number of follow-ups required, to successfully conclude a sale;

59sec not only generated a highly increased conversion rate and boost sales,  but actually reshaped customers experience with the brand. Engaging clients with the right experts in the wright time and in the right channel (in order to close a deal) is more than a differentiation tactic, is every customer dream.

Definitely all marketers and sellers must fundamentally reorient upstream. They can no longer rely on simple sales collateral or traditional lead generation method.

First impressions have always mattered, but now they involve building out a relevant and deep digital footprint to reach a potential customer early in the buying process, staying on his short list, and engaging the customer with.

To create distinctive customer experience, companies need to push the boundaries and adopt next-generation digital thinking and practices (what Mr. Ferseta done). And this is only the beginning. Distinctive customer experience needs to develop deep empathy with customers, a clear vision of his entire ecosystem, understanding relevant interactions that extend beyond the experiences the company controls.

 

Related articles:

Kuantero Launches 59sec, a Mandatory Tool for Any Sales Force – PR.com

Cum sa ajungi la client in doar 59 de secunde? – CRM REVIEW

O agenţie de marketing lansează 59sec, un program de optimizare a vânzărilor companiilor – BrandReport.ro


Author:

Marius BrinzeaMarius Brinzea has over 20 years of management experience, graduate of INSEAD Executive Program, acted in various senior management positions both in Romania and abroad, providing consultancy for a number of cross-border projects in Europe.

 

Crearea de valoarea, resurse si competente

martie 19th, 2016   •   Marketing & vanzari, Noutati, Strategie   •   no comments   
Crearea de valoarea, resurse si competente

Conform viziunii Cadbury pentru perioada 2008-2011, compania urmarea cresterea cotei de piata prin valorificarea potentialului neexploatat si obtinerea pozitiei de „cea  mai mare si mai buna companie de dulciuri din lume”. Aceasta viziune includea in mod evident India.

Intr-o tara cu o populatie in crestere….

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…numerica si o imbunatatire a puterii de cumparare, ciocolata avea avantajul de de a fi un lux low-cost dar si avantajul suplimentar al noutatii.

Conform Wall Street Journal (“Cadbury redefines cheap luxury” – 2009), mai putin de jumatate din populatia de 1,1 miliarde de locuitori ai Indiei nu a gustat vreodata ciocolata desi dulciurile sunt in general populare dar sunt asociate cu sarbatorile sau cu oferirea lor ca si cadouri.

Vanzarile de ciocolata incepeau sa creasca in India, Cadbury detinand o cota de piata de 70%, urmata de compania Nestle cu o cota de piata de 25%, dar cu cresteri  anuale ale vanzarilor de 20%, în perioada 2006-2008. Cum cresterea pe piata din India ocupa un loc central in strategia companiei, Cadbury a crescut bugetele alocate publicitatii, a extins aria de acoperire a consumatorilor din mediul rural, si a dezvoltat noi produse.

Cadbury Dairy Milk Shots (bile mici de ciocolată) erau vandute în pachete de cinci grame la pretul de doua rupii echivalentul a 0,4 USD sau o zecime din salariul  orar mediu al muncitorilor indieni.

Insa pentru a obtine un marje de profit rezonabile, preturile mici erau posibile doar cu costuri reduse. Cadbury a trebuit sa gaseasca modalitati de a reduce costurile în India si acest lucru a inclus reduceri ale fortei de munca si modificări ale capacitatilor de productie.

Insa cea mai importanta provocare pentru Cadbury o reprezenta costul cu boabele de cacao. India nu era un mare producator de cacao, iar importul boabelor de cacao genera costuri suplimentare de 30%.

Care a fost strategia Cadbury?

A ajutat India, sa devina un important producator de cacao prin convingerea agricultorilor sa utilizeze campurile agricole pentru plantarea arborilor de cacao in locul arborilor de nuca de cocos, fara a face defrisari.

Parteneriatul cu Cadbury, inceput in anul 2008, a jutat fermierii locali sa obtina;  plante, ingrasaminte (gratuit de la guvernul indian) si expertiza in cultivarea arborilor de cacao.

Cum productia de cacao in India a crescut, Cadbury si-a redus costurile cu transportul maritim si a redus riscurile generate de accesul la materia prima (cacao), cei mai importanti furnizori de cacao fiind tarile din Africa, instabile din punct de vedere politic.

India spera ca incepand din anul 2016 sa nu mai depinda de importul de boabe de cacao.

Asfel Cadbury isi contina viziunea de a cauta noi si noi oportunitati si de a se dezvolta si extinde pe noi piete


Infiintata in anul 1824 in in Brimingham-UK, Cadbury este o companie britanica de dulciuri, detinuta din anul 2010 de catre compania americana Mondelēz International (fost Kraft Foods).

Cum iesim din „aglomeratie”?

martie 16th, 2016   •   Marketing & vanzari, Noutati   •   no comments   
Cum iesim din „aglomeratie”?

Experienta unica a consumatorului cu brand-ul a devenit un avantaj competitiv definitoriu!

Extinderea portofoliului de produse / servicii, pierderea controlului asupra mesajelor referitoare la brand ca urmare a diversificarii canalelor media si a retelelor sociale precum si expunerea publica a experienței de brand post-cumparare, necesita regandirea urmatoarelor aspecte atunci cand vorbim de brand:

  • Experienta unica a consumatorului vs. tactici de diferentiere;
  • Optimizarea portofoliului si a arhitecturii de brand;
  • Furnizarea promisiunii de brand in toate punctele de contact;
  • Monitorizarea impactului prin dezvoltarea unui sistem de masurarea a valorilor.

 

Cand fiecare client este un client nou!

martie 12th, 2016   •   Marketing & vanzari, Noutati   •   no comments   

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„Orice industrie cu cifra de afaceri mare area mai multi clienti decat actuali clienti.

Aceasta situatie poate fi exploatata pentru extinderea bazei de clienti.”

 

When Every Customer Is a New Customer by Karel Cool and Petros Paranikas.

HBR – ISSUE MAY 2011