Monday 6 December 2010

Collecting customer feedback still requires objectivity

We read this week that the electronics retail giant Best Buy has started using store staff to collect feedback from customers while they shop. The firm’s Voices of Consumers through Employees system has employees logging real-time customer feedback products, services, policies, store layouts and displays onto an intranet system.

The report we read said that Best Buy’s customer insights team will then analyse the information and generate “actionable consumer insight” from the data.

Using staff to monitor customer reaction has its attractions and could certainly be cost effective – but we worry how accurate and independent the data garnered can actually be if it is front line sales staff that are providing the information. After all, isn’t it in the interests of customer-facing staff to be overwhelmingly positive?

For us if negative comments are noted down and input by the staff, the potential for 'bias' would be a worry. Better perhaps if it is via some kind of electronic device which allows customers to privately score their views rather than declare that they give service 2 out of 10.

Companies looking for instant feedback in order to improve their service are, of course, to be applauded. The issue is method. Superdrug is one of the companies that puts a code on its receipts, which the customer can use to log on to an online survey, whilst Co-op collects feedback direct from customers in store using Chip & Pin machines at the tills. One wonders how many actually do. Then there is always the more traditional shopper route with interviewers in-store to collect views on the spot….though this does add cost. Perhaps this is the time for mobile – a simple mobile survey suitably incentivised on future purchases.

Moreover, the data accumulated then has to be interpreted and used to inform business planning. One of the biggest advantages of using an agency is its objectivity. Not only does the agency manage the data collection in a manner which keeps it free from even well-intended tampering, it can use its inherent objectivity to interpret the data is a manner that is free from existing ‘brand baggage’.

Wednesday 24 November 2010

Look Abroad for New Markets...But Do Your Homework First

The Irish crisis and the downturn across the Eurozone has potentially far-reaching consequences for home grown British brands – and with a challenging year ahead now is the time for brands to take steps towards spreading risk and finding new markets in the months and years ahead.



The current crisis has highlighted the UK’s failure to redirect its own economy towards emerging markets. Not only do we export more to Ireland than to the BRIC countries combined, but our trade with Holland is worth more than most of our trade with Asia. We are, to an extent, at the mercy of the Eurozone even if we are not party to it.



So, is now the time for brands to begin exploring emerging markets in Eastern Europe and in Asia? Tesco clearly thinks so. It has just announced plans to nearly double its selling space in central Europe and Turkey over the next five years, whilst also aiming to quadruple sales in China to £4bn by the 2014 financial year.

Put simply, to grow the UK economy and for brands to achieve sustainability let alone profitability, they must start to find new markets outside Western Europe.



This needs to be a research-led process. Initial research can deliver insights that will help assess the viability of a particular market or markets for your products. Carefully structured research can provide extensive information on purchasing habits, particular taste buds and food choices, variations in brand meanings across different languages and even behavioural and cultural issues that would need to be considered. Start that process now and you will be ahead of the game if 2011 remains a little rocky.



There’s only one thing worse than not taking steps to explore new markets and that’s doing it without being armed with the research and customer insights you need to make informed decisions.

Friday 19 November 2010

Evolve Creative

This week we have launched our new tool, Evolve Creative, which to designed to inspire better, braver brand advertising.

Email us to find out more (engage@engage-research.com)

Here's our first bit of press

http://www.mrweb.com/drno/news12667.htm

Monday 15 November 2010

Engage Brain Latest!

Latest news on the 'Engage Brain'.... What’s So Cool About Being Cool? Part 1 of our search for all things cool!

Email us at engage@engage-research.com if you want the report.

Friday 5 November 2010

Ideas aren't everything - the devil is in the detail!

We have seen an interesting article in 1to1 Magazine (http://bit.ly/aHqbKn) that looks at how companies are embarking on innovation management strategies that draw more heavily than ever on customer insight which, claims the article, ultimately leads to more successful product launches.

The article claims that, “fuelled by a hunger to succeed in this ailing economy”, companies are increasingly turning to customers, employees, and other stakeholders to come up with the ideas that will ultimately lead to new products and services.

The piece raises some interesting points, not least in setting out the increasingly varied ways in which companies are looking for and finding innovation within their own businesses. What it doesn’t demonstrate, though, is how necessarily to do it well. Ideas conceived in isolation are only half-formed. The real challenge for brands is in whether they are brave enough to implement the ideas that will create genuine stand-out for them in their market place and the attention to detail that goes into the execution of the concept.

And that’s the point at which customer insight agencies have a genuine role to play, providing the information that help brands prioritise those ideas for development and ensuring that budget is put to work on the most important and viable of the concepts developed via the engagement strategy.

Monday 1 November 2010

October Article in ADMAP

We have an article in October's ADMAP on New Product Insight

...Consumer insight research can help to get the market positioning of a new product right and act as a pathway to success.

Email us and we'll send you a copy!

engage@engage-research.com

Tuesday 19 October 2010

MANUFACTURERS’ HEALTHY FOOD CLAIMS LOSING CREDIBILITY WITH CONSUMERS

Consumers are becoming increasingly sceptical about food products which claim to be ‘healthy’, That’s the key finding of a qualitative research study undertaken by market research specialists Engage Research.
The study, conducted among the company’s online community Engage Brain, found that consumers increasingly feel food companies are labelling their brands in a way which is either misleading or which disguises the true (un)healthiness of the product. Whilst not all brands are deemed equally “untrustworthy”, the scepticism may begin to affect by association brands which enjoy a strong and hitherto trusted relationship with consumers.

The study, conducted among the company’s online community Engage Brain, reported that consumers believe manufacturers are ‘hiding’ unhealthy things in their products and are instead luring consumers with FAT FREE and 1% FAT labels. Whilst these labels may be true, the fact that products might also be high in sugar, salt and artificial flavourings to compensate for the reduced fat content is regarded as dishonest by consumers.

“It seems that many consumers believe that manufacturers have taken liberties in the past in their use of the term ‘healthy’ that now many simply don’t believe it,” explains Andy Barker, Director of Engage Research. “The scepticism also applies to products described as “low calorie” and “low fat”.”

Asked to comment on a news story about restaurants being asked to provide details of fat and calories in their menus, respondents singled out low fat products which are high in sugar (and vice versa) being labelled and marketed as “healthy” options. This, the study suggests, undermines consumer demand in the claims made by manufacturers.

“Consumers seem to feel that a lot of manufacturers have deceived them in the past with marketing strategies that lead you to believe products are healthy. They want honesty. They don’t mind being told that a breakfast cereal is whole grain, as long as they are also told how much sugar is in each bowl,” adds Barker.

So what can companies do to ensure that their claims – their brands - are trusted on health? The study suggests that overall consumers do not want spin, but facts. Consumers are unhappy with the use of the term ‘healthy’, believing it is too widely used and had now lost any effectiveness it might once have had.

Thursday 14 October 2010

Introducing 'Engage Brain'

Our clients need to have the latest consumer thinking at their finger tips. To know what consumers think of stories in the media, new product launches, the latest ad or more long term issues such as health, family and how the recession is or is not affecting their lives.
Follow us on twitter http://twitter.com/engageresearch or via our LinkedIn group http://www.linkedin.com/groups?mostPopular=&gid=2974024 to get the latest news.

… next week we’ll be talking about – ARE MANUFACTURERS’ HEALTHY FOOD CLAIMS LOSING CREDIBILITY WITH CONSUMERS?

Monday 20 September 2010

Will Mother Go To Iceland?

We were interested by the announcement that Iceland has launched new ranges of pub- and restaurant-style ready meals to bolster its takeaway offer. A 10-strong range called Tendercooked Meat will comprise sous vide dishes such as duck breast and lamb shank and will sell between £1.50 to £5. The sous vide technique is a popular option among restaurants and gastro pubs.

To us, this seems quite a way from the budget range of party food that Kerry Katona and others made famous as part of Iceland’s successful sponsorship of “I’m A Celebrity Get Me Out of Here”. So can the upmarket range really be compatible with the Iceland brand.

Clearly, in these challenging financial times, consumers may try to save money in any way they can. But if this means a Waitrose shopper having a dalliance with Sainsbury’s or a Tesco’s shopper making the odd trip to Asda, is it likely that they can be converted to Iceland too.

Well, with a £7.5m advertising campaign starting soon in support of the range, Iceland clearly think so. They’re even offering shoppers the chance to win a prize with every purchase. Now, that’s not very Waitrose!

But don’t write it off yet. The move towards thrifty experimentation is one of the reasons behind the success of Morrisons. If Iceland can really attract shoppers from more premier retailers to their more upmarket products as well as convincing their traditional customer base that "sous vide" is really what they’ve been missing in their lives, then Iceland will not only reinforce its place as a touchstone brand it will also oversee one of those rare and potentially seismic brand shifts. Then again - and much more likely - it could just be a range of frozen pub grub!

Monday 23 August 2010

Pound for Pound – Consumers Getting Savvy

News is out that Poundland plans to open 50 new stores this year after announcing strong increases in profits and sales. Profits rose by 81.5% to £21.5m in the year to 28 March, with turnover up 28.7% to £509.8m (source: The Grocer).

At a time of economic downturn with the threat of a double dip recession on the horizon, we wondered what might be the explanation for and impact of Poundland’s success?

It is accepted now that many people adopted thrift as part of a trendy lifestyle choice but now, with the threat of a double dip, is Poundland’s success a reflection of the fact that people genuinely feel they need to spend less?

Although the high street is a place where people can experiment without risking too much and only sacrificing a retail "experience”, there is some evidence that people are willing to put effort into finding bargains in some product categories and therefore will trade off price against the convenience of doing all their shopping in one place Poundland may be scoring on the brands or products that consumers don’t feel they need to buy from a Sainsburys, a Tescos or a Waitrose.

In the previous recession, research showed that continental consumers were shopping around more for their groceries - using chains such as Aldi or Lidl for commodities, such as flour and sugar, and a regular supermarket for more 'valued' items, such as coffee and meat.

It may even be that consumers are subconsciously segmenting their shop by category - with some products sacrosanct according to retailer or brand and some categories where it's all about value and then categories where it's purely about price.

The savvy consumer - more about information & choice than actual behaviour in the past – may be coming true in the face of a genuine financial squeeze.

Friday 6 August 2010

PreMixing Your Drinks....

The Grocer has reported Asda’s prediction of an explosion in sales of pre-mixed drinks within the next five years, suggesting that every big spirit brand will introduce a version. This backed up Mintel's earlier forecast that pre-mixed category sales would grow more than five-fold, from £25m to £140m.

Asda spirits buyer Chris Brooks told The Grocer that, despite a "very low" awareness of the category, sales had rocketed 160% in Asda between May and July this.  Asda reported that pre-mixed cans attracted different consumers from alcopops, with people buying them to relax in the evening, rather than to party.  But now, their halo effect means all the big spirit brands are expected to start creating their own.

At first, we were a little sceptical. In fact, we thought they were a pretty naff idea. We thought pre-mixed drinks would taste weak and not as good as doing it yourself. But we’ve found that they can fit in nicely to a busy schedule. And now, of course, you can get more than just the pre-mixed gin & tonic.

We have developed a liking for the pre mixed Bacardi Mojito. Our message to manufacturers and retailers alike it - bring on the more interesting drinks, keep them funky and cheap and definitely get them front of house where the consumer can find them easily, and you could well be onto a winner.

Welcome Back to the Tetley Tea Folk

So it's true - the Tetley Tea Folk are making a comeback and I hope Tetley will re-join the many brands enjoying the inoffensive and charming delights of animation style advertising - however if sketches are to be believed Tina may look more at home in a copy of Viz.  I trust Sidney will be there conveying the care and attention that goes into Tetley to give the ever-expanding range of tea brands a run for their money. The trick of course will be to make the ad as chucklesome and warm as ever but with the tongue in cheek charm that brings it up to date - MCBD no doubt have a cunning plan; I still remember delivering corking research response about their marvellous mix of the timeless Alan Whicker with the ubermodern brand Travelocity. I look forward to a tongue in cheek style cuppa without even a hint of desperation.