Burberry; a disruptive brand to reinvent the rules of digital marketing
For more than ten years now, Burberry has reinvented their brand by placing a huge emphasis on the digital aspects of their marketing campaign.
Today, not only is Burberry positioned as the most powerful digital contender of luxury retail brands, but also worldwide. The strategy employed by Burberry is to create a “walk-in-web” mid-way between stores, event spaces and digital sales channels in order to cultivate a uniquely bespoke customer experience. In this way the customer proximity is reinforced. According to the annual report of 2015 / 2016, this strategy has been paying off; the brand witnessed a growth of 1-2%, from 7 % just two years ago. Also, the company saw adjusted profit before tax down by 376 million in 2012 to 421 million in 2016.
“This year, the brand took first place in the fashion world’s Digital IQ Index”
Generation Millennials: primary digital target for Luxury and Grocery retailers
As Christopher Bailey, Chief Creative and Chief Executive Officer of Burberry, explains to us; the strategy “to go fully digital” was essentially motivated with the emergence of “the millennial generation” and sourcing new tactics to attract them.
Step by step, Burberry learnt how to speak the language of “Generation Y”, thanks to better appreciation of their interests and attitudes. [‘Millennials’ are a digital native generation with its own behavior in terms of social media usage, gaming and life priorities, using platforms and e-commerce websites]
As a consequence, it lays emphasis on certain keys aspects like product interactions, connection proximity with the customers, innovative social media tactics as well as also bold photography in order to reach the millennial generation.
On the other hand, Nielsen and Forbes reports announced the fact that the millennials are the retail grocery sectors’ most sought after audience, with $200 billion in annual purchasing power. They are currently considered as the most important grocery shopping demographics.
At the moment, grocery retailers are satisfactory with digital marketing strategies, but it could be argued that they are lagging behind luxe fashion retailers.
Digital marketing: support for grocery retailers in order to get up close and personal with customers
Recently, some grocery stores are beginning to understand the value of online life. The objective isn’t to acquire, but rather to earn the respect and loyalty of these new consumers, who are the millennials.
To mention just a few examples, “Lawson”, in Japan, created a humanized communication on its website by inventing a virtual sales promotional character. “Whole Foods”, in the United States, focuses on having conversation with their consumer via twitter; 85 % their tweets are intended as responses to consumer queries.
The most striking example is arguably “Tesco” with the new concept of “frictionless grocery shopping”, which is called “If This, then That”. Technically-minded, the UK supermarket giant allows customers to arrange automatic grocery orders via Tesco.com. [IFTTT conditioning system connects all separate platforms whereby an action on one can automatically influence a reaction on the other].
This enables Tesco to respond better to the needs of its customers by greater proximity.
In this way, a person’s digital footprint can be used to successfully devise a digital marketing strategy. The online presence, personal approach and recipe websites are the most useful factors in achieving this. Besides, it is predicted that the grocery sector is likely to increase it’s advertising spend from over £720m in 2014 to over £900m in 2020. That is why the aim to develop an efficient digital marketing strategy is becoming more and more essential for grocery retailers.
Nevertheless, if they want to close the gap with luxury retailers; grocery retailers must be guided by the most successful brand in the field, such as Burberry.
7 of Burberry’s best digital practices which might be applicable to the grocery retail industry
- Relation [Unicity-Product]
It is important to ensure continuity between the products offered in grocery stores and those that are available online.
That is why grocery retailers have to pay special attention to post regular photos and videos about the news products or innovations, cross-shared between Twitter, Facebook, Instagram and Pinterest. But also present a great interactive experience, allowing for the customizations of some products offered by the retailer.
- Congruence between [Online and Floor]
Online-customer experience has to mirror the experience of being in-store.
In order to achieve this goal, a permanent connection with customers must be created.
One way to do this is the storytelling approach – to present the grocery store environment and products, showcase a romanticized feed of scenic moments with a playful yet elegant tone.
Another idea is to create a “Trench Campaign”. Thanks to a micro-site, existing customers can post their snaps buying their own favorite product. Users could comment, ‘like’ the content and share the snaps on Facebook, Twitter or Instagram. The advantage of this idea is that it makes the customers feel special, as if they are starring in their own personal ad campaigns rather than being mere spectators. Like a blogger, consumers can have the leadership to make discoveries for others customers and showcase personal preferences of products, sharing links to recipes or activities they like. Effectively, the chore of shopping can be transformed into an exciting task. Furthermore, the “Trench Campaign” can enhance the value of grocery retailers, the brands they sell and customer loyalty.
” Burberry, Art of the Trench“
- Innovative inventory management sharing across [In store and Online]
Why not go for an automized valuable inventory experience through which customers can order online and pickup in store or order in-store and have their items delivered to their home. This solution seems more convenient than just a simple pick-up grocery. Inventory sharing also resulted in significant decreased delivery times to customers.
- Create a strong [CRM omni-channel]
It is crucial to use CRM data to analyse shifts in customer behavior. Catch-up a maximum of people on its CRM database and set-up a program of capturing new data for new customers in order to maximize the success rate of capturing a customer’s data once they enter a store.
- Have it owns digital team [ Not outsourcing]
That’s why is necessary to create a strong team who influence the digital marketing way.
- Surfing on the wave of [3D experience]
That gives more flexibilities and means to showcase their products on digital without sacrifing image quality.
The focal point to remember that Burberry did the success of its digital marketing will be to : “Not be afraid to usurp well-established traditions and assumptions when it’s the right thing to do for the customer.”
FMCG online marketing is crucial
Statista reports that by 2017 over a third of the global population will own a smartphone. This is a huge increase compared to 2011 where only 10% had one. By 2019 half of the population will buy online. People are becoming more and more connected between each other by the use of social networks, sharing platforms and e-commerce websites.
In a world where people can influence each other opinion by a tweet, earning customer loyalty is becoming more difficult and complicated. Retailers and FMCG companies need to become aware of this reality. They must engage online consumers in specific actions, finding the delicate equilibrium of building brands across channels.
The market shows how a clear and decisive online marketing strategy is able to positively influence sales performances, loyalty and increase brand equity. Techingrocery has taken into analysis the online strategy of the Top 5 FMCG brands as ranked by Interbrand. By implementing this best practices into actions every FMCG brand will be able to strengthen their brand equity in the consumers minds.
Gillette brand value is estimated by Interbrand 22 billion dollars. This value is driven also by a very strong online presence. Below are summarised the key learnings from their FB page:
- Rate and reviews of all Gillette products made by consumers
- Video reviews
- Possibility to become an official brand fan
- 24/7 customer support
- Free code coupons
Pampers Twitter page key learnings:
- Free discount coupons offers
- Users sharing rewarded with brand charity
- Engaging videos
Kellogs FB page key learnings:
- Creation of suspense and anticipation on product launches
- Users engagement with games and quizzes
- Effective use of the mascot brand
L’Oreal Twitter key learnings:
- Free advice to consumers on which product use for specific occasions
- Show of positive interest on users blogs/feedbacks
- Share of useful knowledge about the brand
Danone FB key learnings:
- Creation of fun consumer surveys
- Promotion of brand as healthy thorough powerful images
- Effective communication of stores openings
Because they are simply driven by Millennials.
Description of a success story, steeped in corporate culture, offset communication but especially powerful marketing with limited budget.
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• Born in 2004, Michel & Augustin are winning in a saturated market
• Millennials management
• Omni connect strategy
• Using online method for offline recruitment
• Mastering marketing tech without budget[/mks_pullquote]
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Michel & Augustin: How Marketing allows small company to compete against giants:
Nowadays competition is hard in food industry and it’s more and more difficult to stand out of the crowd. With the increase of the gluten free products, the sugary market is not the easiest place to start a company.
But there are still some passionate entrepreneurs to believe that their products will meet consumers’ expectations. And there is no doubt that Michel & Augustin belong to this exclusive circle of visionary. By simply navigating through the website of the brand we realize that M&A is more than a promise, but the cornerstone of an attractive business.
From SME to the American Dream
Michel & Augustin is born from a similar story than Ben & Jerry but in France with a friendship that started on the school benches between its two creators. After making higher education in commerce and marketing, Augustin decides to drop his suit and tie for a baker’s hat and passes its diploma in pastry. As Steve Jobs in his garage, the first recipes are born in the kitchen of the two creators with the small round shortbread in September 2004. The story then goes that Michel & Augustin left driving their Kangoo to canvass all grocers and shops of the French capital.
Today the brand is now firmly entrenched in all major distributors in France but also around the world (Russia, China, USA, Eastern Europe …). Its “Bananeraie”, seats of the brand, are located in Lyon, Paris and New York.
Recently, Michel & Augustin is based on well-established American brands. Since January 2016, Starbucks distributes the products in 7.624 stores. In the air, Delta Airlines offers the products on its 4,000 daily flights, first class and business class. Therefore, the company multiplied by fourteen the capacity of its production line in the United States. They are now targeting other important retailers in the West Coast the recent acquisition of their capital by Danone might be interesting for them, mostly for the distribution.
In fact the company is not anymore cooking in their kitchen, they managed the Finances engineering tips by They no longer produce, focusing on marketing and sales. They now call 7 companies (6 in France and 1 in Portugal)
Product Marketing: Transparency, premium and fun
The key to success of Michel & Augustin isn’t a huge marketing budget, but a clever use of transparency, simplicity and creativity. The best showcase of this type of brand is undoubtedly the products and company values that they transmit. From the “cows to drink” biscuits through desserts, cookie to-go or crackers; Michel & Augustin retains its basic promise: authentic, homemade and quality ingredients.
The brand positioning is thus clearly that of premium and quality. The price is certainly higher than average but the strategy makes it stand out from its competitors on the shelves of supermarkets. Basically the
Out of the box
Urban area tailored
Gourmet & Authentic
Promotion: Zero budget but rich in ideas
M&A are particularly brilliant in term of communication, despite having limited budget they managed to be viral mastering Commando Marketing and Street Marketing. The promotion is based on three principles “millennials, fun and smart.
The launch of their best seller “Cow to drink” is a true best practice in this area comparing to the competition:
High visibility thanks to a Friendly childish tone
The keyword of the brand communication strategy is the use of a childish tone on all its communication channels. Michel & Augustin has opted for humor and derision, wanting to be close to its customers. The smile is therefore required, the customer proximity magnified by a deep friendship between him and the brand. The idea is to invite customer to join the beautiful little family Michel & Augustin. This style of communication is fully assumed by the use of a color graphic, a logo with childish drawings and a friendly tone.
Mastering Buzz with Commando Marketing
For the launch of the “Cow to drink” in July 2006, one of the best sellers. The launch of the yogurt has been at the same time as that the Danone called “The Two cows” produced by its US subsidiary Stonyfield. Michel & Augustin took advantage of this coincidence to launch a commando operation by distributing at the entrance to the press conference to each journalist, their product with a letter denouncing the arrival of US cows in France. It was indeed a unique opportunity to reach 150 journalists. And it worked since the first questions from journalists at the conference was “Will you announce the launch of the cow to drink Michel et Augustin?”. This is typically the kind of action that M&A lead, without means or pretension but that will make people smile.
In February 2007, Bill Gates gives a conference in Le Palais des Congrès (Paris) in front of 6000 entrepreneurs. Augustin, disguised as a kitchen employee of the conference, dropped one of his “Cows to drink” on the speakers table. The video of the conference will be diverted on the social media and M&A created a viral marketing campaign with Bill Gates, photographed next to the yogurt.
Mastering Customer proximity with Street Marketing
One of the big part of the brand marketing strategy is its presence in the streets of major French cities or in New York. Michel & Augustin has made the wise choice to invest heavily on street-marketing, without hesitating to stage the creators of the brand. So we could see the two friends put cows in a Paris train station, take the stage in a supermarket, make a press conference in the same disguise. In the same idea Michel & Augustin conducted a campaign to see land a giant cow throughout France, the cow and came to stand before the most famous French monuments.
Another successful operation of the brand is the 100 Scooters in Paris, offering customers to rent scooters with the colors of the brand which promote the use of bicycles in the city. This transaction also put Michel & Augustin in their local environment by placing the brand as a change driver of the city, including the promotion of an eco-friendly mode of transport. They also organised event in Paris Une Nuit à la belle Etoile in the heart of Paris in park Monceau.
Talent Acquisition: Made by passionate for passionate
The corporate culture is a key factor for Michel & Augustin. The internal organization of the company seems to grow every employee to propose ideas, share feelings, to express her doubts when more or less formal meetings. The work environment is the corporate image: colorful, quirky, warm, fun… As evidenced by “The Banana Plantation”, the workplace which opens its doors to visitors every first Thursday of the month.
- Social media transparency: To communicate internally, the 90 employees have their own group on WhatsApp and
- Passion for product: No matter if the employee works in finance or marketing, they all have to pass their pastry diploma.
Michel & Augustin are famous for recruiting through their event and they feature in social media their employee “adventures” and achievements. Behind every function they valorize and highlight employees (Webdeveloper, marketers, finances etc.) with pictures directly on the product for example.
However, there is still too little dimension explored by brands: Using Online method for Offline operations. It’s precisely on this point that Michel & Augustin makes the difference. When the offline becomes a real scene for the actors who play the game, one explores a form of communication that becomes a reflection of inner experience.
Example: There is a lot of creativity when it comes to recruiting online. But what about recruiting offline using online method: M&A recruiting in the metro
As in France, their US employees must pass the equivalent of a pastry diploma. In Brooklyn, the doors of the “Banana Farm”, the nickname of their New York offices are always open to customers and curious. The company recently organized BethecookieBoss a contest to win 25 a pastry trip to France.
Digital: Omni-Connected with the consumers
You will therefore understand, Michel & Augustin likes and enjoys quite frankly this marketing guerrilla strategy. But the brand does not forget of course the digital component of its business by including each of these operations on social networks.
When many brands rely entirely on digital, there are others that sail between offline and online to provide proximity and engagement with their community. Michel & Augustin is one of those brands that know how to encourage commitment, although social media reach the masses, the land offers a rarely achieved complicity on the net. By using omni-connect strategy, M&A created an intra-community link.
They have over 177,000 fans on Facebook, 35,600 followers on Twitter and a YouTube account relaying the life of the brand.
Michel & Augustin is rich in education and serves in particular to emphasize the importance of the relationship brand / consumer. A beautiful lesson in marketing, communication and building a strong community around two omni-present entrepreneurs.
The Michel & Augustin case show that disruption doesn’t has to come only from pure player or tech companies but by engaged and passionate people even in a traditional saturated market. Thanks to their quirky look on life, their desire to create an affinity relationship with their consumers but also (and especially) to their love for good products.
The coffee brand opened two flagship stores in 2015, Tokyo and Seoul, with the agency CBA Retail and Architecture. With digital walls, customers can interact with flagship stores worldwide. 8 outlets formats devised for Nescafé adapted to each market in the world.
-CBA Retail & Architecture has designed for Nescafé 8 flexible formats outlets that adapt to every market in the world.
-Nescafé flagships are equipped with digital walls thanks to which customers can interact directly from the tablet located on their table
-With community stores, Nescafé tries to seduce native millennials and digital native
5000 Nescafé coffee cups are drunk around the world every second
The brand of coffee print its signature on lifestyle with two flagship stores opened in Tokyo in Japan and in Seoul in South Korea. The CBA agency deals since 2011 the complete overhaul of the brand, with a new strategy, a new identity and new product concepts. Nescafé now offers clean lifestyle concept to “gather free youth, connected and nomadic, seeking to make sense of what it consumes” as noted in the press release of the brand, dated of March 2016. CBA has created for Nescafé, 8 format outlets that adapt to the 180 countries where the coffee brand is established, counting with foodtrucks, universities corner, and even sandwich men.
Nescafé invented the community store in six months
the Tokyo Nescafé Harajaku ranked among the 300 most Tokyoites cafes on TripAdvisor. CBA has developed an affinity and brand decided to create a place that “promotes human connections”. The Tokyo coffee is primarily a place “to meet, build relationships and co-work”. The friendly concept of 220m² evolves according to the weather and time, thanks to its lighting and light. It is organized around a “creative hub, as explained Françoise Marie Novel and Mallez where barrista can ensure the show.”
Online flagship stores
Located on the Asian market, these community cafés didn’t forget to be connected. Each table of Harajaku Nescafé Tokyo is equipped with a tablet that can place direct orders and even adjust without moving. Guests can also discover the offer of the brand and interact with the community wall but also with all the Nescafé world. Nescafé wants to unite its community of 35 million followers. The coffee brand also offers a mobile application that incorporates all of these features like Prodigio coffee.
Why the Grocery industry picked Instagram?
With more than 500 million users, Instagram has become one of the most engaging visual platforms and Grocery Marketing tackles social media with it!
Boosted with tech features, like photo filters, product promotion is key to communicate on this platform, and there is no better way to showcase your grocery brand’s offerings than making partnership with social media influencers. Nevertheless, and as always, historic players don’t seem to recognize this huge massive in 2015.
Carrefour France is at the beginning of the spreading of communication on Instagram. With only 4K subscribers and a community weakly engaged on every post, they need to focus on the quality of content-marketing and photos. Carrefour Grocery Marketing really need to tackle social media.
The grocer Walmart is well installed in social media
With its huge community on Instagram, reaching more than 200K subscribers, Walmart is willing to engage more and more with its community while for every post because they reach, in average, more than 100 comments.
How to improve their strategies?
Using instagram influencers
So many Instagrammers are looking to increase their following, it’s easy for even small businesses to gain exposure to a wide audience by building relationships with influencers in their community.
Building lifestyle content
Technology driven Marketers should monitor their followers to see what kind of content they are sharing, and then replicate that on their own feeds.
The hashtags are aligned with the overall brand instead of the product, and Instagrammers are encouraged to tag their photos whether the product is featured or not.