Wednesday, 13 January 2016
Module Evaluation
Context of Practice 3
OUGD601
Billie Meredith
Module Evaluation
This module has been surprisingly enjoyable in parts. In terms of writing I had a very start late. Lacking confidence in my question lead to it being changed and writing not beginning ‘till late in the year. This was mostly because of the weight of the decision and wanting it to give me the best chance of showing my academic abilities. Though it was a slow start, eventually, I really did enjoy writing. It allowed me to learn a lot outside of just 'design', exploring what is behind a brand. These external sources of inspiration really helped me through the writing process, allowing interests outside of Graphic design to fuel me. The marketing strategies and architecture were particular points of interest for me. It was good to step back from everything visual and look solely at what constructs brands and why they do what they do.
Standardisation and formatting was my most difficult task. I was easily panicked by what was correct and what wasn't. My time management was good this year though could have been better. In the future I want to take the step to plan a complete methodological approach to the work. Although I did this to a certain extent with this module, I am often put off extensive planning because the pull of just starting the project makes spending time planning seem superfluous. My methodology for writing my essay was incredibly successful; writing drafts and being able to comb through them helped me improve my academic writing. Being able to recognize a lack of quotes or analysis was found to be a great tool.
In terms of the final result, there was so much research that didn't make it into the word count, or I didn't find enough time to refine. Despite this, the knowledge I collected through this research was invaluable in allowing me to form a complete, and contextualised image of the topic that was my focus. Keeping my topic simple and in depth, simultaneously was a challenge. However, being able to step back and assess the relevance of information allowed me to maintain a concise focus throughout.
My practical element synthesizes with chapter 3, looking at visual elements and packaging of the supermarket own-ranges. Low-end, cheap brands were the most fascinating to me. The intentional simplicity and arguably poor design quality, was something that was very interesting to grapple with.
In hindsight, there is much more I would have not only liked to produce as well as input, research wise. But with outside circumstances continuing to greatly affect my time management and work ethic, this has continued to be a struggle for me. Despite all this I am proud of what I have been able to achieve in the time frame, but look forward to growing and exploring this topic further in my own time and practice.
OUGD601
Billie Meredith
Module Evaluation
This module has been surprisingly enjoyable in parts. In terms of writing I had a very start late. Lacking confidence in my question lead to it being changed and writing not beginning ‘till late in the year. This was mostly because of the weight of the decision and wanting it to give me the best chance of showing my academic abilities. Though it was a slow start, eventually, I really did enjoy writing. It allowed me to learn a lot outside of just 'design', exploring what is behind a brand. These external sources of inspiration really helped me through the writing process, allowing interests outside of Graphic design to fuel me. The marketing strategies and architecture were particular points of interest for me. It was good to step back from everything visual and look solely at what constructs brands and why they do what they do.
Standardisation and formatting was my most difficult task. I was easily panicked by what was correct and what wasn't. My time management was good this year though could have been better. In the future I want to take the step to plan a complete methodological approach to the work. Although I did this to a certain extent with this module, I am often put off extensive planning because the pull of just starting the project makes spending time planning seem superfluous. My methodology for writing my essay was incredibly successful; writing drafts and being able to comb through them helped me improve my academic writing. Being able to recognize a lack of quotes or analysis was found to be a great tool.
In terms of the final result, there was so much research that didn't make it into the word count, or I didn't find enough time to refine. Despite this, the knowledge I collected through this research was invaluable in allowing me to form a complete, and contextualised image of the topic that was my focus. Keeping my topic simple and in depth, simultaneously was a challenge. However, being able to step back and assess the relevance of information allowed me to maintain a concise focus throughout.
My practical element synthesizes with chapter 3, looking at visual elements and packaging of the supermarket own-ranges. Low-end, cheap brands were the most fascinating to me. The intentional simplicity and arguably poor design quality, was something that was very interesting to grapple with.
In hindsight, there is much more I would have not only liked to produce as well as input, research wise. But with outside circumstances continuing to greatly affect my time management and work ethic, this has continued to be a struggle for me. Despite all this I am proud of what I have been able to achieve in the time frame, but look forward to growing and exploring this topic further in my own time and practice.
Monday, 11 January 2016
Biblography
Books
AAKER, D and JOACHIMSTHALER, E (2002) Brand Leadership. New York: Free Press
BRANDI, J (2001) Building Customer Loyalty: 21 Essential Elements in Action. Texas: The Walk The Talk Company
BUTSCHE, S (2002) Customer Loyalty Programmes and Clubs. Gower Publishing Ltd. Aldershot: Gower Publishing Ltd.
DAVIS, M (2009) The Fundamentals Of Branding. Switzerland: AVA Publishing
DOOLE, I and LOWE, R (2005) Strategic Marketing Decisions in Global Markets. Boston: Cengage Learning EMEA.
HUMBY, C, HUNT, T and PHILLIPS T (2008) Scoring Points: How Tesco Continues to Win Customer. Loyalty London: Kogan Page Publishers
KNOX, M (2015) Supermarket Monsters: The Price of Coles and Woolworths'
Dominance. Collingwood: Redback
KORNBERGER, M (2010) Brand Society: How Brands Transform Management and Lifestyle. London: Cambridge University Press
KOTLER, P and KELLER, K (2011) Marketing Management. 14th Ed. New Jersey: Prentice Hall
LURY, G (2001) Brandwatching. 2nd Ed. Los Angeles: Blackhall Publishing.
OLINS, W (2008) The Brand Handbook. London: Thames & Hudson Ltd.
SILVA, J and DUPUIS (2011) Package Design Workbook: The Art and Science of Successful Packaging. Reissue Ed. Massachusetts: Rockport
Articles
ARKELL, H (2015) Are any own brands as good as the real thing? MAIL ONLINE [Online] Available from: http://www.dailymail.co.uk/femail/food/article-3106525/Are-brands-good-real-thing-SAVVY-SHOPPER-s-Quality-test-reveals-all.html [Accessed 10th December 2015]
ARNETT, G (2013) Are loyalty cards really worth it? THE GUARDIAN [Online] Available from: http://www.theguardian.com/news/datablog/2013/oct/31/are-loyalty-cards-really-worth-it [Accessed 18th December 2015]
BOLD, B (2014) Supermarket own-brands generate more than half of UK grocery sales MARKETING MAGAZINE [Online] Available from: http://www.marketingmagazine.co.uk/article/1324180/supermarket-own-brands-generate-half-uk-grocery-sales [Accessed 10th December 2015]
CHITTOCK, M (2013) Rise of the supermarket own brand THE GUARDIAN [Online] Available from: http://www.theguardian.com/lifeandstyle/wordofmouth/2013/feb/04/rise-of-the-own-brand [Accessed 10th December]
FERGUSON, D (2013) How supermarkets get your data – and what they do with it THE GUARDIAN [Online] Available from: http://www.theguardian.com/money/2013/jun/08/supermarkets-get-your-data [Accessed 19th December 2015]
JEFFERIES, S (2004) What your Supermarket says about you THE GUARDIAN [Online] Available from: http://www.theguardian.com/lifeandstyle/2004/mar/12/foodanddrink.shopping [Accessed 21st December 2015]
PEACHEY, K (2015) Shoppers with reward cards see little point in loyalty BBC NEWS [Online] Available from http://www.bbc.co.uk/news/business-32036916 [Accessed 21st December 2015]
WALLOP, H (2013) How supermarkets prop up our class system THE TELEGRAPH [Online] Available from: http://www.telegraph.co.uk/foodanddrink/9808015/How-supermarkets-prop-up-our-class-system.html [Accessed 21st December 2015]
Websites
BIG FISH Design Portfolio [Online] Available from http://www.bigfish.co.uk/blog/portfolio/waitrose/ [Accessed 17th December]
EFFECTIVE DESIGN (2011) The Grand Prix: Waitrose Limited [Online] Available from
http://2011.effectivedesign.org.uk/2010/grand_prix/waitrose.php [Accessed 20th December]
JOHN LEWIS PARTNERSHIP Products and Services [Online] Available from http://www.johnlewispartnership.co.uk/about/waitrose/products-and-services.html [Accessed 20th December]
MANCHIPP, S (2014) Supermarket success – it’s a
question of class ADLITERATE [Online] Available from http://www.adliterate.com/2014/01/supermarket-success-its-a-question-of-class/ [Accessed 21st December 2015]
PEARLFISHER Design Portfolio [Online] Available from http://www.pearlfisher.com/work/waitrose-lovelife/ [Accessed 18th December]
UK GEOGRAPHICS (2014) Social Grade A, B, C1, C2, D,
E [Online] Available from
http://www.ukgeographics.co.uk/blog/social-grade-a-b-c1-c2-d-e [Accessed 21st
December 2015]
Archives
BBC NEWS (1999) Loyalty cards loosing appeal. [Online] Available from http://news.bbc.co.uk/1/hi/business/the_company_file/481921.stm [Accessed 19th December 2015]
BBC NEWS (1999) Loyalty cards loosing appeal. [Online] Available from http://news.bbc.co.uk/1/hi/business/the_company_file/481921.stm [Accessed 19th December 2015]
Research Figures
AIMIA [Online] Available from: http://www.aimia.com/en/capabilities/consumers/customer-loyalty-management.html [Accessed 21st December 2015]
AIMIA [Online] Available from: http://www.aimia.com/en/capabilities/consumers/customer-loyalty-management.html [Accessed 21st December 2015]
NILESEN N.V. (NYSE: NLSN) (2014) The State Of Private Label Around The World. [Online] Available from: http://www.nielsen.com [Accessed 10 December 2015]
VERDICT [Online] Available from:
http://www.verdictretail.com [Accessed 21st December 2015]
Documents
AAKER, D and JOACHIMSTHALER, E (2000) The Brand Relationship Spectrum: The key To The Brand Architecture Challenge. California Management Review. [Online] Available from: https://www.kth.se/polopoly_fs/1.136469!/Menu/general/column-content/attachment/CMR177p2.pdf [Accessed: 17th December 2015]
KOMBRABAIL, H (2014) Brand Architecture [Online] Available from: https://docs.google.com/document/d/1o1PWcvTdD0BFOjVtxiZr_oLAc4qzTpx2BI-uQs9kHSE/edit?hl=en_GB [Accessed: 17th December 2015]
Practical: Budgens Case Study
I decided to create my practical around the supermarket Budgens. My dilemma after the practical was how to create an own-brand label for a supermarket that was already so strong in that area.
I found Budgens through further research, whilst looking into supermarkets that are not the main subject area of my writing.
The company was founded in 1872 by John Budgen and is believed to be one of the oldest supermarket brands in Great Britain. Beginning as a small, local grocer, the company has expanded and over time the Budgens name has appeared on many stores throughout the South of England. It has established a reputation for providing for the local communities around England’s high streets and suburban towns with quality products. The business was incorporated as a private limited company on 28 May 1962.
By 1997 they had acquired a network of 10 stores. and rebranded with the concept name of B2. Soon afterward, it became clear that the new name was not popular with customers so the 30 new stores outside London began to trade under the 'Budgens' Fascia. The London B2 stores were then changed to Budgens Express, then eventually reverting to just 'Budgens'.
A dark green colour scheme with 'Budgens' in white capital letters was introduced. This identity has again been replaced with a lighter two-tone green background, with the 'Budgens' device now depicted in a lower case font.
From this, it's incredibly clear that Budgens buzz word is 'local'. They are proud of their ownership system, having local people provide for their own. Re-brands have tried and failed, having the original stay a favourite.
I found Budgens through further research, whilst looking into supermarkets that are not the main subject area of my writing.
The company was founded in 1872 by John Budgen and is believed to be one of the oldest supermarket brands in Great Britain. Beginning as a small, local grocer, the company has expanded and over time the Budgens name has appeared on many stores throughout the South of England. It has established a reputation for providing for the local communities around England’s high streets and suburban towns with quality products. The business was incorporated as a private limited company on 28 May 1962.
In 2002, Budgens was purchased by the Irish Musgrave Group, Irish food wholesaler. Two years after this they began to sell their Budgens stores. The largest stores were disposed of on the open market with stores in places including Tadley and Mildenhall to larger store chains. The other stores were given to independent retailers (CT, Tout, Jempsons) who still trade under the Budgens name. Musgraves also franchised the Budgens brand, having more store openings in the independent sector whilst expanding the brand to many forecourt stores
In 2007, the divestment of the original Budgens stores to independent retailers was completed, but as of March 2009 a few Budgens stores whose franchise-holders did not perform well, returned to Musgrave. Another eight stores were bought in 2009 from the Co-op (who had acquired them on taking over the Somerfield group but were instructed to dispose of them by the Office of Fair Trading).
In May 2015, Budgens' parent company Musgrave Group confirmed it had reached an agreement to sell Budgens and Londis for £40 million to the wholesaler Booker Group, subject to regulatory approval.
Since then, Budgens has grown to over 150 stores, varying from petrol stations to neighbourhood supermarkets, which are independently owned by Budgens retailers.
In May 2015, Budgens' parent company Musgrave Group confirmed it had reached an agreement to sell Budgens and Londis for £40 million to the wholesaler Booker Group, subject to regulatory approval.
Since then, Budgens has grown to over 150 stores, varying from petrol stations to neighbourhood supermarkets, which are independently owned by Budgens retailers.
 |
| Budgens Logo 2008 - Present |
There is no official record of previous corporate identities used by this company. As the supermarket concept developed in the UK in the 1950s, the appearance of the brand names were designed to be colourful, eye-catching and distinctive. Budgens adopted a colour scheme during the late 1960s which incorporated orange as the base colour, popular at the time.
The stores were branded simply as 'Budgen', a progression from 'Budgen & Co. Ltd.', in a unique white font on the orange background. A distinctive logo was also used for the 'Budgen' branding, which incorporated a tulip , that symbolised freshness, in orange and white on a brown rounded square background. The orange 'Budgen' corporate identity was used from c. 1968 to 1989.
 | ||
Budgen Logo 1968-1989
|
The stores were branded simply as 'Budgen', a progression from 'Budgen & Co. Ltd.', in a unique white font on the orange background. A distinctive logo was also used for the 'Budgen' branding, which incorporated a tulip , that symbolised freshness, in orange and white on a brown rounded square background. The orange 'Budgen' corporate identity was used from c. 1968 to 1989.
 |
| Budgens Logo 1992 - 1994 (Black & White) |
Subsequently, they rebranded themselves as 'Budgens' from c. 1990 onwards. The orange gave way to a white background, the tulip logo disappeared and the font was changed to a handwriting-style scribble, in orange, underlined in green. This was used until circa.1997, when the identity was altered again.
 |
| Budgens Logo 1994 - 2006 |
 |
| Budgens Logo 2006 - 2008 |
Budgens is known for selling quality, local produce. They work with British farmers to supply high quality meats, and have great working relationships with British farmers for over 30 years, supporting local/British food producers. They consider their products 'fairly priced and high quality' and pride themselves on their stock of fruit and vegetables. Also, something I found quite unique, was that each Budgens store is run by a different person. Individual stores serve their own local community and therefore are closer to the local needs and issues.
From this, it's incredibly clear that Budgens buzz word is 'local'. They are proud of their ownership system, having local people provide for their own. Re-brands have tried and failed, having the original stay a favourite.
Saturday, 9 January 2016
Essay: Chapter Four (Draft I)
I intially struggled with this chapter, however through further many different strategies came to light. This was perhaps the most interesting topic for me to write about so far. The sources are of a decent amount and it is here why most of by bibliography sits, due to singular papers being the sources of previous chapters. I feel this could be bigger still, perhaps by adding more examples of loyalty programs as well as formatting and referencing.
Words: 1806
Customer Loyalty
Brand loyalty is the result of consistent positive experience, satisfaction and perceived value of an experience. We have established supermarkets as all encompasing brands, with detailed structures, methods and intents and as a result have to maintain customer loyalty, brand loyalty, in order to maximise revenue. Today, supermarkets amass the highest level of consumer loyalty followed by mobile networks and banks. There are numerous techniques employed by these brands to develop a strong loyalty. JoAnna Brandi identifies that 'Quality standards needs to be specific so customers know what to expect. Make your core service consistent, and then surround that service with things that will surprise customers.' Quality standards takes a huge role when it comes to a retailers ability to deliver successful customer service and by extension a stronger overall brand.
Customer loyalty programmes build up real relationships based on a value-orientated benefit package (Butscher 2002 p.3) One main way for supermarkets to monitor their consumers loyalty is through the use of points schemes and loyalty cards, aptly named. Finance reporter Kevin Peachey clarifies that 'Loyalty points, or trading stamps, have been around for decades. The modern-day loyalty card was born in 1995 with the hugely successful Tesco Clubcard.'
'Before Clubcard, Tesco was stuck as the UK's second-ranking supermarket. Today, not only is it the UK's largest grocer, it is one of the worlds's most successful internet supermarket...and arguably one of the worlds most successful exponents of what the jargon terms Customer Relationship Management.' (Humby et al. 2008 p.3)
Loyalty cards have clearly been a massive sucsess for brands to entice customers to spend exclusively in their stores. In 2002, following the rapid success of Clubcard, Stephen A. Butscher customer loyalty strategist, predicted the increase of such loyalty schemes.
'Customer loyalty have become a more and more important component of many companies' marketing activities. The importance will certainly increase over the next few years creating an even larger wave of new programmes than we have seen recently' (p.3)
The concept of the loyalty card works via simple trade. By using one, the consumers consents to retailer access to useful data i.e age, time of shop, what goods purchase, frequency of purchase etc. This information not only helps them to better analyse their demographic but is important for maximising revenue, promotion and distribution. (Peachy 2015) As technology has developed the cards have become a rich source of data for the companies that offer them. Stores reap financial and strategic benefits from using the cards to find out what customers are buying. (Arnett 2013) By having a loyalty card, supermarkets build up demographic profiles and collect data about consumers loyalty, including what you buy, how much you buy and how much you spend. Online they can change what you see when you log in to buy, to better find the products their data suggest you will buy and in-store will use their data to make decisions about what to sell.
However, there are many arguments against the use of loyalty cards with Butscher also citing
'It is possible, but not very probable, that a customer loyalty programme...will lead to a lifelong relationship with its customers. First most customers cannot not be allotted to a single clearly defined target group. Today's 'nomad' customers either belong to several target groups simultaneously or continually move from one group to the other. (p.48)
With the growing diversity for shoppers, loyalty is an aspect that is harder and harder to grasp, as a result of a outside factors such as, the recession, employment, wages and inflation of goods. Consumers no longer shop at one place but choose different stores to suit their different needs. Customers are becoming harder and harder to box into only one demographic, therefore making it more difficult for brands to cater to them. Butscher also specifies that lack of reward incentive:
'Most customer loyalty programmes offer primary financially (hard) benefits. In essence, they provide price discounts - and discounts are the last thing that creates loyalty among customers. Customers who buy your product or service merely because of it's price will not continue to do so if they fine a better price elsewhere. The only way to create long term customer loyalty is to establish a true relationship with your customers which is based not on financial incentives, but on emotion, trust and partnerships.' Butscher p.3
As a continuing thread throughout this essay, it has been found that time and time again, price is ultimately the deciding factor for todays consumers, hence why loyalty schemes as a tool don't have the same impact as they once did.
Their demise has been predicted for a long time. Even from as early as 1999; A news story from the BBC website in 1999 headlined "Loyalty cards losing appeal". It reported that researchers had found "a third of people preferred low prices to points or other incentives".
Conversely, some academics argue that the end loyalty cards would mean the end of a rich collection of data that can be used to benefit society.These cards are able to provide detailed information on spending habits, that have the ability to highlight the difference between what people say they do and their actual behaviour (Peachy 2015)
Director of the Consumer Data Research Centre Professor Mark Birkin, from the University of Leeds, held this argument in the for the benefit of health and nutrition.
He explained how the consumption patterns revealed by loyalty cards are incredibly helpful showing how truthful consumers are about their eating habits, healthy and unhealthy (2015). Looking at the bigger picture, the same way cities consider building roads based upon travel patterns, cities may think about environment protection based on the amount of recyclable packaging being bought. The data these schemes collect, chances are, will help to inform such decisions giving loyalty cards the potential to impact larger social issues. (Peachey 2015)
Lifestyle brands
A huge factor within customer loyalty is the notion of lifestyle (or perceived lifestyle) which is one of the master concepts within marketing.
'Lifestyle would describe - or better, prescribe - a set of practices that give meaning and identity. The building blocks of lifestyles [are] individual brands that, consumed en masse, [will] form a stylish assemblage.' (Kornberger, 2009 p.192)
Lifestyle defines people by what they consume. Products posses potentialities, symbolic resources that people use to build their lifestyle. For all their pervasiveness, supermarkets have provenance and are huge perpetuators of this. Whereas class used to be about position, it is now about lifestyle. These brands all come from somewhere, they have a heartland. Southen brands traditonally have more middle class acceptance, these are Waitrose (London), Sainsbury’s (London) and Tesco (home counties). However, traditional northern brands are those found to have more working class appeal: Asda (Leeds) and Morrisons (Bradford). While today, these brands can be found virtually anywhere, the georgraphy and class systems have had a huge hand in the makeup of their cusomter bases.
'In the past, social structure and status was established through one's position in the production of things; you are what you produce. Lifestyles on the other hand, are based on peoples consumption patterns.' (Kornberger, 2009, p.192)
The professor for human geography from Sheffiled University, Peter Jackson, conducted a three-year study into supermarket loyalty and social class, said:
"What's clear from our research is that people just don't see those ranges that 'aren't for them'. In Sainsbury's, for example, some people will walk past the 'Taste the Difference' ranges to the budget ranges. They won't even see the ones that aren't targeted at them. And vice versa." This shows the clear sucsess of such particular branding choices and positioning.
Supermarkets are able to position themselves though subjective factors such as the pleasantness of the store, or how its decor, music, quality of products, exclusivity of products, design elements and affiliations, (many of which are strategies explored throughout this essay) chime with one's own self-image (Jefferies 2004). All of which can be just as important and as objective factors like price and convenience (all of which Jackson brackets under "cultural capital").
Verdict Research using the NRS social grading system:
A - upper middle class Higher managerial, administrative or professional
B - middle class Intermediate managerial, administrative or professional
C1 - lower middle class Supervisory or clerical and junior managerial, administrative or professional
C2 - skilled working class Skilled manual workers
D - working class Semi-skilled and unskilled manual workers
E - non working Casual or lowest grade workers, pensioners, and others who depend on the welfare state for their income
found that Waitrose has the highest proportion of shoppers from the professional social classes A and B (47%), followed by Sainsbury's (34%), Marks & Spencer (22%), Tesco (21%) and at the lowest end of the market, former Netto's 72% of shoppers were blue-collar Ds or Es and with Lidl (54%).
The argument against structuring themselves to appeal to certain classes is that it reinforces class ghettoes. Consumers already living in an affluent area are treated to 'essential Waitrose sugar free indian tonic water & lime' while those in a deprived postcode are left with just 'tonic water'.
This is seen in when Waitrose indulged themselves in subtle social engineering. Upon launching it's essentials line in 2009, almost all products were exactly the same as their higher-range only re-packaged in basic white tins and boxes. It was designed to shirt customers perception that Waitrose was just for the wealthy. Even if shoppers were not aware of this sleight of hand, It's worth wondering about whether there was embarasment from the upper class about purchasing these cheap-looking products. (Wallop 2013.
The commerical director for Waitrose found the opposite saying "We have found some customers putting their Waitrose goods in Tesco bags, because they are nervous that their neighbours will think they are decadent for shopping at Waitrose." The prices in Waitrose are known to be costly. however, their value range has made shopping there far more legitimate in this climate that it otherwise would have been. Waitrose's engineering was was the most potent signal of social mobility.
"In the latter quarter of the twentieth century this role was provided by Mark & Spencer, when to shop at M&S was to declare yourself part of the aspirational middle class...Waitrose’s gain has been M&S’s loss as the former has replaced the latter as the totem of aspiration – to shop at Waitrose today, even from the essentials range, its to declare that your family is moving upwards undaunted by the economic crisis that surrounds us. (Manchipp 2014)
Public perception of a brand is everything and with it, 'snobbery' is a powerful social force, but also a powerful commercial one. and perhaps should not been seen as completley negative. Being judged for how you spend your money, rather than how you earn it, can be percived as progress of some sort.
Bibliography
BBC NEWS (2015) Shoppers with reward cards see little point in loyalty [Online] Available from http://www.bbc.co.uk/news/business-32036916 [Accessed 21st December 2015]
BRANDI, J (2001) Building Customer Loyalty: 21 Essential Elements in Action. Texas: The Walk The Talk Company
BUTSCHE, S (2002) Customer Loyalty Programmes and Clubs. Gower Publishing Ltd. Aldershot: Gower Publishing Ltd.
HUMBY, C, HUNT, T and PHILLIPS T (2008) Scoring Points: How Tesco Continues to Win Customer. Loyalty London: Kogan Page Publishers
KORNBERGER, M (2010) Brand Society: How Brands Transform Management and Lifestyle. London: Cambridge University Press, 2010
AIMIA [Online] Available from: http://www.aimia.com/en/capabilities/consumers/customer-loyalty-management.html [Accessed 21st December 2015]KORNBERGER, M (2010) Brand Society: How Brands Transform Management and Lifestyle. London: Cambridge University Press, 2010
VERDICT [Online] Available from: http://www.verdictretail.com/ [Accessed 21st December 2015]
THE TELEGRAPH. WALLOP, H (2013) How supermarkets prop up our class system. [Online] Available from: http://www.telegraph.co.uk/foodanddrink [Accessed 21st December 2015]
THE GUARDIAN. JEFFERIES, S (2004) 'I'm rich and I'm living well. Shopping here is part of that' [Online] Available from: http://www.theguardian.com/lifeandstyle [Accessed 21st December 2015]
UK GEOGRAPHICS (2014) Social Grade A, B, C1, C2, D, E [Online] Available from http://www.ukgeographics.co.uk/blog/social-grade-a-b-c1-c2-d-e [Accessed 21st December 2015]
ADLITERATE. MANCHIPP, S (2014) Supermarket success – it’s a question of class [Online] Available from http://www.adliterate.com/2014/01/supermarket-success-its-a-question-of-class/
BBC NEWS (1999) Business: The Company File Loyalty cards loosing appeal. Available from http://news.bbc.co.uk/1/hi/business/the_company_file/481921.stm [Accessed 19th December 2015]
THE GUARDIAN. FERGUSON, D (2013) How supermarkets get your data – and what they do with it [Online] Available from http://www.theguardian.com/money/2013/jun/08/supermarkets-get-your-data [Accessed 19th December 2015]
THE GUARDIAN. ARNETT, G (2013) Are loyalty cards really worth it? [Online] Available from http://www.theguardian.com/news/datablog/2013/oct/31/are-loyalty-cards-really-worth-it [Accessed 18th December 2015]
Tuesday, 5 January 2016
Essay: Chapter Four - Feedback
I had someone else read through this chapter and give feedback, this allowed me to push myself and get large amount of feedback about my quality of writing which is a big insecurity. They made comments in red and I then altered and added more writing based on the comments. The highlighted section is new text added to the chapter since the first draft. This is how I worked throughout the writing process. This methodology keeps my writing, sourcing and progress clear.This was a great help and allowed be to get back on track.
Words: 1878
Customer Loyalty
History of customer loyalty, how did loyalty schemes come about? Why id it needed?
Brand loyalty is the result of consistent positive experience, satisfaction and perceived value of an experience. We have established supermarkets as all encompassing brands, with detailed structures, methods and intents and as a result have to maintain customer loyalty, brand loyalty, in order to maximise revenue. Today, supermarkets amass the highest level of consumer loyalty followed by mobile networks and banks. There are numerous techniques employed by these brands to develop a strong loyalty. JoAnna Brandi identifies that 'Quality standards needs to be specific so customers know what to expect. Make your core service consistent, and then surround that service with things that will surprise customers.' Quality standards take a huge role when it comes to a retailer’s ability to deliver successful customer service and by extension a stronger overall brand.
Words: 1878
Customer Loyalty
History of customer loyalty, how did loyalty schemes come about? Why id it needed?
Brand loyalty is the result of consistent positive experience, satisfaction and perceived value of an experience. We have established supermarkets as all encompassing brands, with detailed structures, methods and intents and as a result have to maintain customer loyalty, brand loyalty, in order to maximise revenue. Today, supermarkets amass the highest level of consumer loyalty followed by mobile networks and banks. There are numerous techniques employed by these brands to develop a strong loyalty. JoAnna Brandi identifies that 'Quality standards needs to be specific so customers know what to expect. Make your core service consistent, and then surround that service with things that will surprise customers.' Quality standards take a huge role when it comes to a retailer’s ability to deliver successful customer service and by extension a stronger overall brand.
To be able to not only aid but track a customers loyalty behaviour, supermarkets began to introduce loyalty schemes and programmes, the leader of which is the loyalty card.'Customer loyalty programmes build up real relationships based on a value-orientated benefit package' (Butscher 2002 p.3). One main way for supermarkets to monitor their consumers loyalty is through the use of points schemes and loyalty cards, aptly named. Finance reporter Kevin Peachey clarifies that 'Loyalty points, or trading stamps, have been around for decades. The modern-day loyalty card was born in 1995 with the hugely successful Tesco Clubcard.'
Examples of techniques, Clubcards, vouchers, etc, are they all doing the same thing? Do some work better than others?
'Before Clubcard, Tesco was stuck as the UK's second-ranking supermarket. Today, not only is it the UK's largest grocer, it is one of the world’s most successful internet supermarket...and arguably one of the worlds most successful exponents of what the jargon terms Customer Relationship Management.' (Humby et al. 2008 p.3)
What was it about the Clubcard that made them top dogs?
Loyalty cards have clearly been a massive success for brands to entice customers to spend exclusively in their stores.
In 2002, following the rapid success of Clubcard, Stephen A. Butscher customer loyalty strategist, predicted the increase of such loyalty schemes.
Loyalty cards have clearly been a massive success for brands to entice customers to spend exclusively in their stores.
In 2002, following the rapid success of Clubcard, Stephen A. Butscher customer loyalty strategist, predicted the increase of such loyalty schemes.
'Customer loyalty have become a more and more important component of many companies' marketing activities. The importance will certainly increase over the next few years creating an even larger wave of new programmes than we have seen recently' (p.3)
Why are they so popular?
The concept of the loyalty card works via simple trade. By using one, the consumers consents to retailer access to useful data i.e. age, time of shop, what goods purchase, frequency of purchase etc. This information not only helps them to better analyse their demographic but also is invaluable when it comes to maximising revenue, promotion and distribution (Peachy 2015). As technology has developed the cards have become rich sources of data for the companies that offer them. Stores reap financial and strategic benefits from using the cards to find out what customers are buying (Arnett 2013). By having a loyalty card, supermarkets build up demographic profiles and collect data about their consumers’ loyalty habits, including what you buy, how much you buy and how much you spend. Online they can change what you see when you log in to buy, to better find the products their data suggest you will buy and in-store will use their data to make decisions about what to sell.
Supermarkets can also use this to see what you are not buying, (As seen on Watchdog) buying dog treats from them on your loyalty card but found not buying dog food will have supermarkets send you vouchers to encourage you to buy dog food also at that supermarket.
Supermarkets can also use this to see what you are not buying, (As seen on Watchdog) buying dog treats from them on your loyalty card but found not buying dog food will have supermarkets send you vouchers to encourage you to buy dog food also at that supermarket.
However, there are many arguments against the use of loyalty cards with Butscher (2002) also citing:
'It is possible, but not very probable, that a customer loyalty programme...will lead to a lifelong relationship with its customers. First, most customers cannot not be allotted to a single clearly defined target group. Today's 'nomad' customers either belong to several target groups simultaneously or continually move from one group to the other. (p.48)
Is customer loyalty a real a thing, we only shop at Sainsburys cause it’s the closest?With the growing diversity for shoppers loyalty is an aspect that is harder and harder to for brands to grasp, as a result of outside factors such as the recession, employment, wages and inflation of goods. Consumers no longer shop at one place but choose different stores to suit their many different needs. (which is what supermarkets were made for so you would only have to go to one place to do all your shopping, are you saying that people are moving away from this?)Customers are becoming harder and harder to box into only one demographic, therefore making it more difficult for brands to cater to them. Butscher also specifies how lack of loyalty stems from reward incentives:
'Most customer loyalty programmes offer primary financially (hard) benefits. In essence, they provide price discounts - and discounts are the last thing that creates loyalty among customers. Customers who buy your product or service merely because of it's price will not continue to do so if they fine a better price elsewhere. The only way to create long term customer loyalty is to establish a true relationship with your customers which is based not on financial incentives, but on emotion, trust and partnerships.' (Butscher, 2001, p.3) Explain in more detail how they do this, it’s hard to assume there is financial incentives involved
'Most customer loyalty programmes offer primary financially (hard) benefits. In essence, they provide price discounts - and discounts are the last thing that creates loyalty among customers. Customers who buy your product or service merely because of it's price will not continue to do so if they fine a better price elsewhere. The only way to create long term customer loyalty is to establish a true relationship with your customers which is based not on financial incentives, but on emotion, trust and partnerships.' (Butscher, 2001, p.3) Explain in more detail how they do this, it’s hard to assume there is financial incentives involved
As a continuing thread throughout this essay, it has been found that time and time again, price is ultimately the deciding factor for today’s consumers, hence why loyalty schemes as a tool don't have the same impact as they once did. Maybe recap how it’s been a tool? Their demise has been predicted for a long time, even from as early as 1999. A news story from the BBC website in 1999 headlined ‘Loyalty cards losing appeal’. It reported that researchers had found "a third of people preferred low prices to points or other incentives".
Conversely, some academics argue that the end loyalty cards would mean the end of a rich collection of data that can be used to benefit society. These cards are able to provide detailed information on spending habits, that have the ability to highlight the difference between what people say they do and their actual behaviour (Peachy 2015). Director of the Consumer Data Research Centre Professor Mark Birkin (2015), from the University of Leeds, held this argument in the for the benefit of health and nutrition. He explained how the consumption patterns revealed by loyalty cards are incredibly helpful showing how truthful consumers are about their eating habits, healthy and unhealthy Looking at the bigger picture, the same way cities consider building roads based upon travel patterns, cities may think about environment protection based on the amount of recyclable packaging being bought. The data these schemes collect, chances are, will help to inform such decisions giving loyalty cards the potential to impact larger social issues (Peachey 2015).
Lifestyle brands
A huge factor within customer loyalty is the notion of lifestyle (or perceived lifestyle) and is one of the master concepts within marketing.
'Lifestyle would describe - or better, prescribe - a set of practices that give meaning and identity. The building blocks of lifestyles [are] individual brands that, consumed en masse, [will] form a stylish assemblage.' (Kornberger, 2009 p.192)
A ‘lifestyle’ defines people by what they consume. Products possess potentialities and are symbolic resources that people use to build their lifestyle. For all their pervasiveness, supermarkets have provenance and are huge perpetuators of this. Whereas class used to be about position, it is now about lifestyle. More detail, do you mean from working class to middle class, and explain what you mean by lifestyle, do you mean specifically about food or every part of someone lifestyle, you could bring social media into this, with people photography everything including food?In terms of the origins of such hierarchies all these brands come from somewhere, they have a heartland. Southern brands traditionally have more middle class acceptance, these are Waitrose (London), Sainsbury’s (London) and Tesco (home counties – counties surrounding London). However, traditional northern brands are those found to have more working class appeal: ASDA (Leeds) and Morrisons (Bradford). While today, these brands can be found virtually anywhere; the geography and class systems have had a huge hand in the makeup of their customer bases today.
'In the past, social structure and status was established through one's position in the production of things; you are what you produce. Lifestyles on the other hand, are based on peoples consumption patterns.' (Kornberger, 2009, p.192)
'In the past, social structure and status was established through one's position in the production of things; you are what you produce. Lifestyles on the other hand, are based on peoples consumption patterns.' (Kornberger, 2009, p.192)
The professor for human geography from Sheffield University, Peter Jackson, conducted a three-year study into supermarket loyalty and social class, said:
"What's clear from our research is that people just don't see those ranges that 'aren't for them'. In Sainsbury's, for example, some people will walk past the 'Taste the Difference' ranges to the budget ranges. They won't even see the ones that aren't targeted at them. And vice versa."
This shows the clear success of such particular branding choices and positioning.
Maybe link this back to class and why its ‘not for them’?Supermarkets are able to position themselves through subjective factors such as the pleasantness of the store, or how its decor, music, quality of products, exclusivity of products, design elements and affiliations, (many of which are strategies explored throughout this essay) chime with one's own self-image (Jefferies 2004). All of which can be just as important and as objective factors like price and convenience (all of which Jackson brackets under "cultural capital").
Maybe link this back to class and why its ‘not for them’?Supermarkets are able to position themselves through subjective factors such as the pleasantness of the store, or how its decor, music, quality of products, exclusivity of products, design elements and affiliations, (many of which are strategies explored throughout this essay) chime with one's own self-image (Jefferies 2004). All of which can be just as important and as objective factors like price and convenience (all of which Jackson brackets under "cultural capital").
Using the NRS social grading system - (system of demographic classification used in the UK):
A - (Upper middle class) higher managerial, administrative or professional
B - (Middle class) Intermediate managerial, administrative or professional
C1 - (Lower middle class) supervisory or clerical and junior managerial, administrative or professional
C2 - (Skilled working class) skilled manual workers
D - (working class) semi-skilled and unskilled manual workers
E - non-working casual or lowest grade workers, pensioners, and others who depend on the welfare state for their income
Verdict Research found that Waitrose has the highest proportion of shoppers from the professional social classes A and B (47%), followed by Sainsbury's (34%), Marks & Spencer (22%), Tesco (21%) and at the lowest end of the market, former Netto's 72% of shoppers were blue-collar Ds or Es and with Lidl (54%).
The argument against structuring themselves to appeal to certain classes is that it reinforces class ghettoes.Explain class ghettoes. Consumers already living in an affluent area are treated to 'essential Waitrose sugar free Indian tonic water and lime' while those in a deprived postcode are left with just 'tonic water'. This is really interesting, you could add another example or say more on it.
This is seen upon the time when Waitrose indulged themselves in subtle social engineering. Upon launching it's essentials line in 2009, almost all products were exactly the same as their higher-range only re-packaged in basic white tins and boxes. It was designed to shift customer’s perceptions that Waitrose was just for the wealthy. Even if shoppers were not aware of this sleight of hand, it is worth wondering about whether there was embarrassment from the upper class about purchasing these cheap-looking products (Wallop 2013).
Maybe comment on how even though they have branched out to the poor people, just by reputation it still feels luxury to buy from there and then go on to say on the other hand they have been putting stuff in Tescos bags to not look like snobs, and maybe suggest why they would do it, why would they feel embarrassed enough to do that? The commercial director for Waitrose found the opposite saying "We have found some customers putting their Waitrose goods in Tesco bags, because they are nervous that their neighbours will think they are decadent for shopping at Waitrose." The prices in Waitrose are known to be costly. However, their value range has made shopping there far more legitimate in this climate that it otherwise would have been. Waitrose's engineering was the most potent signal of social mobility.
"In the latter quarter of the twentieth century this role was provided by Mark & Spencer, when to shop at M&S was to declare yourself part of the aspirational middle class...Waitrose’s gain has been M&S’s loss as the former has replaced the latter as the totem of aspiration – to shop at Waitrose today, even from the essentials range, its to declare that your family is moving upwards undaunted by the economic crisis that surrounds us. (Manchipp 2014)
Public perception of a brand is everything and with it, 'snobbery' is a powerful social force, but also a powerful commercial one. and perhaps should not been seen as completely negative. Being judged for how you spend your money, rather than how you earn it, can be perceived as progress of some sort.
Maybe comment on how even though they have branched out to the poor people, just by reputation it still feels luxury to buy from there and then go on to say on the other hand they have been putting stuff in Tescos bags to not look like snobs, and maybe suggest why they would do it, why would they feel embarrassed enough to do that? The commercial director for Waitrose found the opposite saying "We have found some customers putting their Waitrose goods in Tesco bags, because they are nervous that their neighbours will think they are decadent for shopping at Waitrose." The prices in Waitrose are known to be costly. However, their value range has made shopping there far more legitimate in this climate that it otherwise would have been. Waitrose's engineering was the most potent signal of social mobility.
"In the latter quarter of the twentieth century this role was provided by Mark & Spencer, when to shop at M&S was to declare yourself part of the aspirational middle class...Waitrose’s gain has been M&S’s loss as the former has replaced the latter as the totem of aspiration – to shop at Waitrose today, even from the essentials range, its to declare that your family is moving upwards undaunted by the economic crisis that surrounds us. (Manchipp 2014)
Public perception of a brand is everything and with it, 'snobbery' is a powerful social force, but also a powerful commercial one. and perhaps should not been seen as completely negative. Being judged for how you spend your money, rather than how you earn it, can be perceived as progress of some sort.
Explain the progress, and what could you argue against this? Is there things that could be perceive not as progress? What would the counter argument for the perception be?
Bibliography
Books
BRANDI, J (2001) Building Customer Loyalty: 21 Essential Elements in Action. Texas: The Walk The Talk Company
BUTSCHE, S (2002) Customer Loyalty Programmes and Clubs. Gower Publishing Ltd. Aldershot: Gower Publishing Ltd.
HUMBY, C, HUNT, T and PHILLIPS T (2008) Scoring Points: How Tesco Continues to Win Customer. Loyalty London: Kogan Page Publishers
KORNBERGER, M (2010) Brand Society: How Brands Transform Management and Lifestyle. London: Cambridge University Press
Websites
MANCHIPP, S (2014) Supermarket success – it’s a question of class ADLITERATE [Online] Available from http://www.adliterate.com/2014/01/supermarket-success-its-a-question-of-class/
UK GEOGRAPHICS (2014) Social Grade A, B, C1, C2, D, E [Online] Available from http://www.ukgeographics.co.uk/blog/social-grade-a-b-c1-c2-d-e [Accessed 21st December 2015]
Articles
PEACHEY, K (2015) Shoppers with reward cards see little point in loyalty BBC NEWS [Online] Available from http://www.bbc.co.uk/news/business-32036916 [Accessed 21st December 2015]
FERGUSON, D (2013) How supermarkets get your data – and what they do with it THE GUARDIAN [Online] Available from http://www.theguardian.com/money/2013/jun/08/supermarkets-get-your-data [Accessed 19th December 2015]
ARNETT, G (2013) Are loyalty cards really worth it? THE GUARDIAN [Online] Available from http://www.theguardian.com/news/datablog/2013/oct/31/are-loyalty-cards-really-worth-it [Accessed 18th December 2015]
JEFFERIES, S (2004) ‘What your Supermarket says about you.” THE GUARDIAN [Online] Available from: http://www.theguardian.com/lifeandstyle/2004/mar/12/foodanddrink.shopping [Accessed 21st December 2015]
WALLOP, H (2013) How supermarkets prop up our class system. THE TELEGRAPH [Online] Available from: http://www.telegraph.co.uk/foodanddrink/9808015/How-supermarkets-prop-up-our-class-system.html [Accessed 21st December 2015]
Archives
BBC NEWS (1999) Loyalty cards loosing appeal. [Online] Available from http://news.bbc.co.uk/1/hi/business/the_company_file/481921.stm [Accessed 19th December 2015]
Research
AIMIA [Online] Available from: http://www.aimia.com/en/capabilities/consumers/customer-loyalty-management.html [Accessed 21st December 2015]
VERDICT [Online] Available from: http://www.verdictretail.com/ [Accessed 21st December 2015]
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