Rival brands: friendly competition or battle that neither can ever win?

I have to agree with the age old phrase "competition drives innovation". The worlds best-marketed brands all seem to have one strong rival with each brand constantly trying to out-market the other. It  is these brands which I find fascinating and it is even more interesting to consider whether brands in fact, benefit from these huge rivalries.

Directly targeting or responding to the competition is highly common in marketing efforts, I have seen it in my own industry, telecoms, with ads such as these:

3 hit out at Vodafone customers with this banned ad

Vodafone's ad promising a Fixed Price for your entire contract

However, there are far more famous and controversial rivalries:

1. McDonalds vs Burger King

As I mentioned, innovation is key in beating your rivals and due to the fact that McDonalds and Burger King's value propositions are fairly homogeneous, there is a lot of mimicking from both sides. Big Mac, Whopper... are there really many differences? Both brands have sued each other for copyright infringement on a number of occasions. 

Burger King actually made a peace offering for just one day in this story, which was swiftly rejected by McDonalds!  However, what a great bit of PR for BK anyway, making them look like the soft, underdog!

2. Pepsi vs Coca-Cola

Perhaps one of the most historic rivalries, dating back to the early 1900s, and the creativity behind the rival campaigns is fantastic.

Pepsi are definitely more aggressive in their competitive attitude through advertising, but unfortunately Coke have held on to the top spot. Coke has become a name to replace the cola industry as a whole- who goes in to a bar and says "Can I have a vodka and Pepsi?". Coca-cola tend to stick to their traditional roots in terms of branding whereas Pepsi go modernistic, proving that being true to your roots pays off. Coke markets happiness with their 'Share a coke' campaign or their new slogan 'Taste the feeling', whereas Pepsi go for a 'cool' vibe with collaborations with NFL and David Beckham.

3. Apple vs Samsung

Samsung are definitely the Pepsi of the mobile technology world. Their dig at Apple (and Apple customers) below, indicates their willingness to take on the rivalry first hand:

You are often asked; are you an Apple or a Samsung person and it's rare that people switch between the two. I am an Apple user but of course since working at Vodafone my eyes have been opened to the world of Android and how much Android devices can really do. However, if you compare Samsung and Apple's marketing spend vs market share, the true stats really become clear:
Samsung: £8.4bn of marketing spend 19.9% of smartphone market share 15% of total operating income of smartphone makers Apple: £1bn of marketing spend 14.6% of smartphone market share 92% of total operating income of smartphone makers
Whilst Samsung make phones to suit lots of markets, providing lower-range cheap smartphones as well as your S6 Edge's to a premium market, the numbers really do show that Apple's smaller range, however highly targeted to those who expect more from their phones, really does pay off. 

Hope you enjoyed this post, let me know your favourite brand rivalries, tweet me at @stefclarkx

Why Argos & eBay's distribution methods can work together in harmony

I have to say, as someone who is more-interested-than-most in the digital marketing space, eBay is one of the only brands I really pay attention to when it comes to their email marketing campaigns. They are often well-targeted, relevant and provide decent value. Hence I was pleasantly surprised to see this email in my inbox recently:

There was an existing partnership between Argos and eBay with many Argos product sold through eBay regularly. However, this extension of the way the channels work together is a great strategic move from both parties.

A few years ago, upon the spark of the digital age, which saw the likes of Woolworths, HMV and Habitat struggle- I was worried that Argos would simply be destined for the same fate. It was surely going to be out-priced, out-producted and out-branded by the likes of Amazon? However, by thinking and accepting that their existing distribution model wasn't going to be sustainable long-term, Argos have adapted their strategy which blurs the lines between the online world and bricks and mortar retailers.

I think the key to success in what Argos is doing is the fact they are so accessible, convenient and efficient. Their Click and Collect service was pioneering, their digital channels are fantastically-integrated with their retail channels and they partner with the best brands- often I don't even have to check if Argos stock something I just presume they will and I'm not often wrong. They also have great, local stores, you don't have to go in to a big town or city to find exactly what you are looking for.

However, this isn't just beneficial to Argos in terms of defining their brand as a digital, well-distributed service. eBay gain something they've never had before- a physical presence in the UK market. So many brands (especially those who are solely online) are realising the importance of an omni-channel experience and that 'human interaction' with the brand. By collaborating with Argos, eBay have a tangible setting in the form of hundreds of stores. 

eCommerce sold us the idea the home delivery is the way forward, however consumers are starting to realise that it is not as convenient as originally thought. Fear of leaving your house whilst waiting for a parcel or having to cart it home on the tube after having it delivered to work or worse, queuing in the post office depot on a Saturday morning- all build the case as to why click and collect has become a phenomenon! Amazon locker was a solution that had won over many consumers and now eBay is matching that with their own offering.... featuring humans!

Not only is this a great strategic move for the two brands, but this will ultimately provide a fantastic experience for the customer. They are able to drop whatever they've sold on eBay at a local Argos store (open late evenings and weekends), pay a rate for P&P which by far rivals the Post Office and provide a tracked and signed for parcel to the customer! 

In terms of change management, the organisational impact is minimal, the infrastructures for delivery and storage are already in place as Argos have been delivering their own products for years and as mentioned above, have the processes down to a T.

I look forward to hearing more about this exciting partnership!

A Christmassy Marketing Day in Southbank!

Hi guys, sorry it's been so long! I can't believe I haven't blogged in an entire month. Will try and keep content consistent from now on!

I've been super busy recently and I can't wait to tell you all the stuff I've been up to!

Starting with last week, I went up to London to attend the 2nd IBM Marketing Placement day in London, I blogged about the first one earlier this year!

The event was held in the Client Centre at IBM's Southbank, London office. This is usually where we host clients and host events and meetings with them. It's a really nice office and much nicer than the Portsmouth one- so it's nice to get out of there, even if it is just for a day ;-)

 

I like it when all the Marketing Placement students get together as we do  fairly often, I've made some good friends from the IBM locations all over the country! The day was mostly focused on IBM's brand and how marketing and communications strategies can positively affect this.

Firstly, we met Alison Orsi who is Head of Marketing, Communication and Citizenship for IBM UK & Ireland- this means she is my bosses, bosses, boss! It was really exciting to hear how she had got to the position in which she is in now and how she never even planned to work in Marketing to begin with! She told us about an IBM advertising campaign in the 90's featuring the pink panter and Johnathan Ross.....?? Not really fitting with the IBM brand we know now!

Softening the corporate image may have been an objective then- but now IBM's Marketing is a lot more targeted and they are much more considerate and thoughtful when making marketing decisions. She focused her presentation on social, valued content creation, SEO and mobile marketing. An interesting thought from the day was the fact that the strategy seems to be shifting from paid-owned-earned towards owned-earned-paid.

Secondly, we had Tony Chapman-Dawe from Strand Communication deliver a presentation on how to write better Marketing text. I found this particularly interesting because of my interest in Journalism- it kind of reminded me of being back in an English lesson!!

He spoke about advertisers being able to grip people in 9 words and how difficult this can be in getting a message across, but also that this is a scope for immense creativity. He presented us with examples from The Economist:

This spark some thought as he noted that brands need to think carefully about the language they use and also what content is actually relevant and of some value to the target audience. He also taught us about the structure of powerpoints and how to create useful and eye catching language. His main theory was that any marketing message should contain Structure, Facts, Examples and Brevity. A great lesson which I will be enforcing in the future! It makes you think about the way that brands craft tweets, in tweets you only have 140 characters to get your message across- therefore they have to be snappy, relevant and concise.

Then, we had Bill Jinks, who project managed IBM's presence at Wimbledon for the last few years. He came to speak to us about the work he had done and how we might like to get involved in working there next year with IBM. The stuff we do at Wimbledon is awesome and far too much to narrow down into one blog post- so check out the website if you would like to know more here.

Then we had a brand quality workshop from 2 members of Marketing who work on the graduate scheme. They spoke to us about the IBM Brand and how it is represented in terms of looking, sounding, thinking and performing like IBM. We also got chance to have a look and dissect IBM's current brand strategy.

We then had an IBM speaker; Mark Devlin spoke to us about IBM's history and the way the IBM brand has been affected and shaped over time. An interesting concept he mentioned was that IBM has never had a figure head like Bill Gates or Steve Jobs to represent it's brand image, instead of having this one person to look to, IBM is represented by it's employees who have their own name aka IBMers!

Overall it was a great day with some great people- afterwards we got to check out the Southbank Christmas Markets and then we were treated to a Chinese in Leicester Square!!