Review of the project

In my opinion the Blog project is a really good way to improve both our writing skills and knowledge in Marketing. It is a very practical and pleasant way to write especially because we can deal with whatever subject we want. This freedom is actually a kind of motivation to edit our posts.

Regarding my subject I met many difficulties because information about the Marketing strategy of a company is quite hard to find. But I tried to describe companies from various markets in order to be a bit exhaustive. Further more it is not always easy to purpose posts easily understandable because numerous articles were quite technical. Sometimes I found articles in French so I had to translate them as accurately as possible.

What could be improved is to enlarge the topic. People who have chosen to work on only one company had difficulties to find appropriate information. To limit the subject to one company is quite restrictive. Why not choose a market and compare the different strategies of each competitor? General information about the market such as figures, different competitors, law and so on, description of each competitors, the report of a questionnaire referring to the subject and a final analysis: this work could account for a dozen of posts.

TV commercials

TV commercials
Originally uploaded by Gregory Barbier.
"I know that an half of my advertising costs is inefficient. The problem is that I don't know which one."This sentence was pronounced by John Wanamaker, the creator of the first department store of the United States at the end of the nineteenth century.

Today world-wide companies spend billions of dollars in commercials in order to make their sales rise. But a large part of this sum is a real loss. So why do companies continue to spend such an amount of money?

There are some rules which could explain the spent amounts by companies. They think the following assumptions to be true:
- To raise the market share, the broadcasting frequency has to be higher than the current market share
- Every people has to see the commercial at least three times in order that it has a real effect on TV watcher
- It is worth too much commercials than not enough
- A commercial needs more time than any other ad to produce its effect

These rules are considered by marketers as being dogmatic. That is why they still believe in them although some studies have proved they are not. For instance a commercial is more effective when concentrated on a short period instead of spread on a long period. Also only new products need to be broadcast quite frequently because they are not known. Finally commercials concerning famous brands are really inefficient if there is no change in terms of product or image.

As a conclusion we could say that the efforts have to be made on the use of money. If managers manage to know on which aspect they could save money, they will be able to say:"I know that an half of my advertising costs is inefficient, but I know which one."

Originally uploaded by Gregory Barbier.

In a recent press release in December 2004, Colgate announced to reduce its worldwide workforce by approximately 4,000 jobs, which accounts for 12% of the total workforce, and to close a third of its factories. This aims to save money which will be then allocated to initiatives in Sales and Marketing.

Colgate was still considered as being a real practical Marketing school few years ago, as well as Procter & Gamble currently. But during the last years the company has neglected this department and it has lost numerous market shares on various markets.

But markets such as Latin America, China, India or Eastern Europe are currently developing. These markets are actually the target of all global companies. If Colgate wants to be competitive and so to continue to be a profitable company, it has not to lose these new opportunities. In order to take profit of them, the toothpaste maker has to stimulate its Marketing and Sales departments.

How? First the company will hire marketers who are able to understand the needs of these new markets, to take successful initiatives and finally to be able to foresee their developments and so to adapt the strategy. These people will also have to be able to work under pressure because money which they will spend on Marketing actions has been saved thanks to 4,000 dismissals.

We will see in three or four years if the decisions taken were the right ones. At least it is a real gamble.

Marketing is becoming global

Originally uploaded by Gregory Barbier.

The new strategy of big companies such as McDonald's, Reebok or Coca Cola is to have the same slogan and commercials all over the world in order to get in touch with people whatever their religion or culture.

Numerous marketing experts think that with the globalisation products are adaptable in all countries, especially food and clothes. Teenagers of NYC, Paris, London or Tokyo wear the same clothes even they don't come from the same country. That is why companies choose to make famous stars appear in their commercials: the singers Justin Timberlake and Destiny's Child for McDonald's, Madonna and Sarah Jessica Parker for Gap or Allen Iverson, Jay-Z or Lucy Liu for Reebok. These people who are well known all over the world can collect numerous customers thanks to their image.

Concerning the slogan, everybody knows that "I'm lovin' it" is the one chosen by McDonald's. This is a way to strengthen the image of a global company. Nike had also given the same impression with the world famous "Just Do It" or even Coca Cola with "Enjoy It". It really unifies customers around the company. It is actually the best means to make people feel as being one target, that is to say there is no established difference between for instance poor and rich, black and white or Christian and Muslim.

This also a way to cut cost : the same commercial, even it has been translated in some languages, and the same packaging for all the countries the advertisement had been showed. It is real opportunity to save thanks to a world-wide advertising campaign.

Originally uploaded by Gregory Barbier.

To change the name to become internationally acknowledged

PPR is the new name of Pinault - Printemps - La Redoute. Why this change? Because PPR is shorter and easier to pronounce for a non French speaker. An acronym is often easier to remember. The change of the name has to be approved by the Board of Shareholders which is to be hold at the end of May 2005.

Pinault-Printemps-La Redoute is currently called PPR all over the world, although it is not its real denomination. So this change will not confuse any customer. The new name seems obvious and logical, especially because PPR has more and more incomes coming from abroad.

The former name only represented the activity of distribution. But PPR is not only a group of distribution, it is also present on the market of luxury goods. It is the head office of Gucci, one of the most famous and luxurious dressmaker. The sales of luxurious goods account for 15% of the total turnover but it is wanted to take a larger part of the incomes.

That is why PPR has changed its logo, in order to give it a more luxurious look. It has been designed by Paris Venise Design and is supposed to represent the personality of the group engaged on two different markets, thanks to the typography and the red colour.

Originally uploaded by Gregory Barbier.

To put camcorders in an house 24 hours a day for one week in order to watch what people are doing: a new reality TV show? No, you are wrong. It is actually a customer behaviour survey realised by Findus. The aim of this search is to analyse how the French families eat, where and when.

The marketing department of the company will be focused on TV during a whole week in the end of March 2005, analysing the different behaviours of ten volunteer French families from both Paris and Lyon. There will be three different cameras: one in the kitchen, one other in the living room and the last one monitoring the table.

This kind of action is more reliable in terms of findings. It is not actually the first study of this kind realised by Findus. Already in 2003 it organised a similar action. What the marketing department learned from the first one was completely different from the findings of a market survey with interviews and questionnaires. For instance they have observed in the first loft that 80% of people eating frozen food are used to look at the box of the product to see if it is possible to cook it in the microwave. On the other side most of the market studies have shown that French people used their microwave from times to times. Where is the flaw?

Findus thinks it is in the dogmatic quantitative studies. That is why they have chosen to launch a pre-cooked meal adapted to a cooking in microwave. This was ... a real success.

Is the frozen food used by choice or by necessity? What is the role played by children in the consumption of the family? What are the effects of TV on meals? The company prefers answering these questions by observation instead of questioning people. Especially when the cost of this action accounts for only 100 000 Euro.

Is this survey a revolution in Marketing? It may be or not. But one thing is sure: Findus has stopped all its traditional surveys to be concentrated on this one.

Originally uploaded by Gregory Barbier.

Marketing through Sponsorship, the example of Renault Trucks

Renault Trucks is a company based in the suburbs of Lyon, France, which had been overtaken in 2001 by Volvo. It has a market share in Europe which accounts for 12%.

The aim of the firm is to be the leading company of the Region Rhone Alpes, to be well-known in Europe and to enhance the communication among the company workers through a common pride. The only alternative faced to Renault Trucks was to become the official sponsor of the Olympique Lyonnais, the best French team these last years. Thanks to this partnership, the company could fulfil all its objectives.

But a sponsorship is not only putting a name on a jersey. In order to be really efficient, it has to be a strong commitment in the club because people are waiting for more than money. The image of the company is at stake. It can give an image of allegiance through the perpetuity of a commitment. It is essential for a company to acquire values such as fidelity, loyalty or fairness. The soul of a company can even appear thanks to a sponsorship.

Renault Trucks are linked till the end of the championship 2006/2007 for more than 10 million euros. The name Renault Trucks is written on the jerseys used for the French League and the Champions League. According to an opinion poll, 87% of French people consider that Renault Trucks is a dynamic company.

Three years after its commitment, the image has already been improved. But Renault Trucks is waiting for more positive effects, especially in China where the soccer is being developed.

The Marketing Department

The Marketing Department
Originally uploaded by Gregory Barbier.