Is China worth it for L'Oreal?

L’Oreal aren’t the first and won’t be the last of the big companies who have had their hands burnt trying to enter the Chinese market through using their marque brands from Western markets. When thinking of China the concept sounds like a great one at face value. A thriving market and prospering economy that continues to grow has resulted in an increase of consumers with significant disposable income. With this in mind why wouldn’t companies who sell high margin, luxury items like L’Oreal not want to exploit the market and grow their brands? However the reality is that the target market just aint buying it

http://www.scmp.com/business/companies/article/1404118/loreal-brand-and-revlon-call-time-china

There are a number of theories as to why companies like L’Oreal might be struggling in new markets. The Brand Avenger would argue one of the key reasons L’Oreal has struggled is the assumption that one single universal brand approach is strong enough to stretch across all markets in both the West and the East. This assumption is a problem that more and more companies will begin to experience as they become more global.  In essence L’Oreal’s decision to target Garnier products in the market with no differentiated approach is either naïve or lazy. It is for that reason L’Oreal this week deserves to be critiqued by the ever-watching eye of The Brand Avenger.

http://www.marketingmagazine.co.uk/article/1226943/why-china-losing-its-lip-gloss-western-brands

Of course its not all doom and gloom for L’Oreal and they certainly are far from taking the decision to entirely remove themselves from expanding into the Far East. Through acquiring local companies in the Chinese market L’Oreal are demonstrating that they understand the mistakes in their previous strategic approach and are preparing themselves to do something about it.

http://articles.economictimes.indiatimes.com/2014-01-14/news/46186240_1_l-oreal-skincare-hong-kong-listed

As the market becomes more and more saturated with imported foreign brands localization will become the key as opposed to globalization.  Put simply companies like L’Oreal will have to work harder to understand the new segments of customers they are exposed to. Through investing in the right infrastructure, researching the market thoroughly and adapting the product offering to meet the needs of the base, investing in the Chinese market might just still be worth it yet for the French facial experts.

Is Co-op’s thank you sincere?

2013 certainly wasn’t a great year for the Co-op. Challenging times were never too far away when it came to a company boasting ethical banking practice.  It’s an interesting and brave move to highlight some of the issues the bank has experienced in a print advertisement. But the Brand Avenger wonders if this is more about rewarding loyal customers or carefully managing consumer perception through PR?

http://www.brandrepublic.com/news/1226782/co-op-bank-runs-second-ad-following-scandal/

Don’t get me wrong. There is certainly a lot that can be said for the decision to advertise in this way. Taking the decision to publicly put your hands up and admit wrongdoing and lack of judgment is a big step for any individual to do, let alone a company with customers and investors. However, there are many ways Co-op could choose to market this message.  Print advertisements are mass awareness tools. They are not designed to tailor a message to a select group of consumers. If it was all about rewarding loyalty surely there are other measures that can be used for this.

http://bigdoor.com/blog/2013/11/06/10-tips-for-loyalty-program-success/

Plenty of companies adhere to at least some of the hints and tips in the above article to reward loyalty. And there are plenty of companies that do it considerably well. Tesco built a 30% market share in the UK retail market through utilizing Clubcard data. Google are beginning to target advertisements through data from G Mail customers. The point is if you really want to send a message to your loyal customers there are many ways you can do it better than broadsheet.

http://www.nytimes.com/2014/01/13/business/ge-capital-to-help-set-up-loyalty-programs-for-retailers.html?_r=0

Understanding your most valuable customers to reward loyalty certainly is a lucrative business at the moment as it has for a number of years. Anyone who has considerable access to data is exploring options to create loyalty schemes. The benefit of data is that it provides a realistic view into consumer preferences. It’s this understanding that can allow companies to target communication, so if you do want to reward your loyal customers you can identify them to do so. No one is saying Co-op is wrong to print the advert. There might just be a better way to do that if that was more important to them than a bit of PR.

What is Facebook doing with your data?

Facebook might be the preferred social network in the US but that doesn’t mean it is immune from criticism or legislation protecting consumer rights. Most recently Facebook has fallen into some hot water following allegations from two American users that the site had scanned private messages for key words to sell to advertisers for targeted messages.

http://www.gmanetwork.com/news/story/342366/scitech/socialmedia/facebook-faces-suit-for-data-mining-private-messages

Ever since Facebook began commercializing data there was always a risk that the company would come under some sort of scrutiny around how they decide to use it. Facebook may have taken some comfort from the fact that other data mining companies have been here before and have come through the other side relatively unscathed. However the fact that the class action is raised from 2 users on behalf of what could be millions of US Facebook users will be a huge concern to the social media giant. However this will only be a concern for Facebook if it begins to hit the finances and as of yet the stock price has remained flat.

http://www.ft.com/cms/s/0/5c940122-73ed-11e3-beeb-00144feabdc0.html#axzz2pYJxbhVE

Facebook are no strangers to the controversy that can arise from the uncertainties of data handling. In 2012 they were forced to drop face recognition technology due to the uncertainties around how the data was used.

http://www.dailymail.co.uk/news/article-2207098/Facebook-switch-controversial-facial-recognition-feature-following-data-protection-concerns.html

The question now is how will the most recent lawsuit in regards to Facebook data policy impact the brand in the long-term? The answer to that question will come down to how Facebook approach the publics concerns. There needs to be some clarity around exactly how Facebook intend to use the data and maybe more importantly what access rights advertisers is given when they purchase it. It is clear from recent popularity polls and Facebook’s stock price that there isn’t too much to worry about now. But the data issue won’t go away so the reputation of the Facebook brand and popularity with its users in the long-term will depend on how well they communicate the data policy to users.

A taste of real world criticism for Coca-Cola following gay wedding omission backlash?

You would think so soon after the controversy surrounding BiM and Lionsgate companies would be trying to keep a low profile regarding controversial content in advertisements. But then again you can never be too sure where discontent and anger may arise when awareness tools like Twitter and Facebook can be used to generate overall public awareness.

http://www.marketingmagazine.co.uk/article/1225983/coke-suffers-backlash-cutting-gay-marriage-scene-irish-ad

You may notice some key differences between the ways Coke have dealt with their varied messaging across markets compared to BiM. The most striking difference is that there is no hint of a public apology or any indication that the decision to remove the gay marriage messaging from the Ireland campaign is controversial or wrong.  But could the very fact that Coke has chosen to exclude material in this manner contradict the overall message of positivity surrounding the campaign.

http://www.prweek.com/article/1225997/coke-suffers-backlash-cutting-gay-marriage-scene-irish-ad

Coke have defended their decision by stating that they have only chosen content relevant to the markets it is shown in. Is this the messaging which is supposed to justify the use of an St Patrick’s Day scene over the support of Gay Marriage?

It is no surprise that Coke have experienced the backlash they have taking into consideration the weak reasoning behind the change in creative messaging. By arguing the use of what is culturally relevant could it not also be said that the Irish advertising contradicts the overall meaning of the campaign?  This certainly appears to be the view of key institutions in the homosexual community.

http://www.pinknews.co.uk/2013/12/30/why-does-the-irish-version-of-this-coca-cola-advert-omit-a-gay-couple/

Yet again we are faced with another example of why companies like Coke and Lionsgate need to think very carefully about the way they choose to message integrated campaigns across markets. Companies are becoming increasingly accountable for actions not just in one market but globally. There is no doubt Coke were looking to support a key subject of equality in some markets but if it is a good enough cause to support in one market it should be a goos enough cause to support universally.

Does BiM's decision to pull advertising in Italy for its 12 Year's A Slave campaign point to the existence of racism?

It’s not every day a film poster can spark worldwide debate and widespread apologies from several sources over the creation of content let alone once again raise questions over a Countries stance on racial equality. http://entertainment.time.com/2013/12/27/controversial-italian-12-years-a-slave-poster-stirs-debate-over-movies-and-race/ If you have yet to catch up with this story I can provide a topline summary. Rather than focus promotional activity around lead actor Chiwetel Ejiofor the Italian distributors for ‘12 years a slave’ instead chose to focus on Brad Pitt, a man who plays a character with a relatively small part in the film. You might be wondering what the fuss is about. Does a decision to focus on a mainstream actor with worldwide appeal in a foreign market really spell out implicit racism? It probably isn’t a question for us to debate here but what is clear is that both BiM and Lionsgate appear to be treading carefully around the issue. The reactions from both companies might say a lot more about the supposed link between the decision making and some sort of underlying fears of discrimination. Through pulling the campaign and issuing grovelling apologies have both companies actually just blown the issue out of proportion? http://www.theglobeandmail.com/life/the-hot-button/italian-distributor-pulls-12-years-a-slave-posters-that-emphasize-films-white-actors/article16124914/ It is hard to determine whether it will be Lionsgate Films or BiM Distribuzione who will bear the long-term brunt of this controversy. Lionsgate have been quick to claim they gave no permission for the film ’12 years a salve’ to be advertised in the way depicted by BiM. However, as the vendor chosen to create and distribute the content should it not be BiM who are forced to explain their motives behind advertising in such a way? Is pulling the advertisement simply enough or should they have even of pulled the material at all? Over the last year The Brand Avenger has shined a spotlight on countless companies who have failed to address issues that would ultimately damage brand reputation in a timely manner. However in this instance The Brand Avenger would argue the reaction from both entities may have only served to of fuelled further criticism and controversy. Rather than potentially sign off the content to appear in Italy Lionsgate would have played close to no involvement in the decision to feature Pitt or Fassbender as opposed to Ejiofor. BiM may have reacted in a way they felt best to communicate to their target market so it should be their role to explain the context behind the decision. Had they of done this rather than pull material so quickly the issue may have resolved itself. The speed of which it was removed may say far more about the attitudes and beliefs of both the company and the public than the actual initial questioning of how BiM chose to promote the film.

Not such a Merry Christmas? M&S in the middle of a Christmas race row

Far be it for The Brand Avenger to chime into an issue that can be as controversial as religion however I think it would be fair to say M&S will face a tricky challenge to their brand reputation following the recent news that Muslim staff have the right to refuse sales of meat and alcoholic products at till.

http://www.marketingmagazine.co.uk/article/1225674/m-s-faces-revolt-muslim-staff-exemption-rules

Regardless of whether you believe it is right or wrong for religious concessions to conflict with customer service it is clear M&S are in the middle of a controversy they wouldn’t want their brand associated with. At this time of year where retail sales flourish and meat and alcohol purchases spike, no retailer wants to be at the center of a storm that leads to such polar opposite views on the rights and wrongs. 

M&S have moved quickly to issue an apology for the stance taken by the staff member, citing that as an all-inclusive business all religious concessions are tolerated and accepted. In many ways they have done everything they can to demonstrate a caring and considerate view towards the issue however will this be enough to calm the issue?

http://www.bbc.co.uk/news/business-25488259

The media won’t certainly let the retailer nor the public forget about the recent news anytime soon. As long as the media continue to cover the story over the coming days M&S will spend Christmas in controversy. The exact time when the controversy will end will depend on how much of a stir is created on Twitter and how far the issue progresses. Let’s hope for the sake of the M&S brand the incident on Saturday is treated as a storm in a teacup as opposed to anything more major.

And Merry Christmas to all those who have followed The Brand Avenger this year.

Paid for complaint tweets tests British Airway's 'Fly to Serve' creative campaign

A couple of months an angry British Airways customer displayed the type of creative thinking that was so far outside the box most advertisers would be chuffed had they thought of it themselves. Taking aa dispute over poor customer service from BA following a lost bag Mt Syed decided to take out a paid for promoted ad targeting searches of the airline. The Brand Avenger wonders if Hasan Syed is just one of the growing breed dis-gruntled consumers who will fight back against injustice at any costs?

http://www.marketingmagazine.co.uk/article/1224122/trend-day-co-creation-rise-hyper-disgruntled-consumer

We have all shared Mr Syed's experiences. The Brand Avenger can't remember how many times I have lost sleep over the careless actions of an airline or a apparent lack of any type of customer service. The remarkable thing about this case is the lengths Mr Syed went to to ensure BA paid for their poor handling of a stressful situation. BA may have spent millions of pounds to alter the perception of consumers that elevate their branding around a strong customer service strategy. By spending £700 Mr Hasan certainly damaged BA's positioning and left senior team members so flustered they were using BA's own social media to apologise and clarify they had resolved the situation.

http://www.theguardian.com/money/2013/sep/03/businessman-promoted-tweet-british-airways

Access to a brand is key in todays age and unquestionably the balance of power is changing. Customers like Mr Syed are switched on and savvy. They know exactly how to make a brand pay for any perceived gaps in customer service and can damage a brands reputation with a drop of a hat. It didn't take Hasan Syed millions of pounds or months of strategic planning to generate enough publicity to communicate his intended message. David stood up to the Goliath of BA and they were left dazed and bruised by this confrontation.

As more and more of the public wake up to the fact that they have power and a voice we will begin to move to a world where brands will need to advance their messaging and media delivery.

http://www.dailyfinance.com/2013/09/04/british-airways-angry-flier-promoted-tweets/

Mr Syed had the last laugh and the final say when it came to his public challenging of BA, and as he so vehemently boasts on his twitter in this instance he holds the victory. The real test for BA now will be how they adjust their strategy to ensure this type of glitch never happens again. The worst case scenario would be a influx of disgruntled customers using similarly creative measures to bring them to task. The only way they can truly address is to embrace the message they have spent so much money on over the last year. Wholly embracing a fly to serve ethos and promoting this through all marketing touch points should prevent against getting on the Tweeters nerves allowing BA to truly serve the needs of their customer.