Hate to say it, but I told you so. Chezza's Back, Back in the USA. Or so it would seem.
Following a PR circus lasting some 11 days, Cheryl's been in, out and shaken it all about. She's done the hokey cokey, and turned it all around. And that's what's it's all about. Folks.
Breaking news suggests that Cheryl will be rejoining X Factor USA as a judge.
One wonders if she ever really left.
On the 26th May I predicted this would be the case in my blog "PR Tactics or News".
On 4th June I suggested that the circus might be coming to end soon in my blog "The PR Circus Continues" following news that Chezza had applied for a permanent US Visa.
Today, 5th June, we are reminded who's really in charge of the UK's free press. The Daily Mail, and quite a number of other tabloid news sites, are carrying the story that Cheryl is set to return to the USA X Factor.
Good job she took advantage of the last 10 days of unemployment to apply for that permanent US Visa then.
Way aye.
Sunday, 5 June 2011
Saturday, 4 June 2011
To Groupon or not to Groupon. That is the Question.
Groupon continues to grow and grow. The world's fastest growing company this week announced it will float on the stock market. Investors can now get a slice of the big Groupon coupon pie. Yum!
This toddling three year old is growing up fast. Yes, there are clearly teething troubles, but I can't see anything preventing it from growing into a spotty, arrogant adolescent in due course.
Groupon's "partners" (the companies who offer the great money saving deals)may be just a little bit more sceptical, however.
Here's the tension. Companies don't like discounts. Consumers do.
Discounts lower profit margins, quite possibly forever. The P for Price is the last of the 4Ps that any self respecting marketer would ever want to touch. For companies who are struggling to get bums on seats, Groupon offers a clear method of filling those seats, but at little or no value to the business. In some cases, at a massive cost.
So why are companies bothering with Groupon?
Well, from a marketing perspective it does have some redeeming features:
Traditionally, spend on marketing sits in the region of 10-15% of total sales turnover. Groupon is essentially asking companies to part with 80% (60% discount + a 50/50 share for Groupon and the retailer) - it's a damn big ask.
But on balance, if your marketing only costs you something if you're successful and it is, by and large, the most effective form of direct marketing you can get, why wouldn't you give it a try and add it into the marketing mix? If you're in a business that relies on repeat custom, and customer service and you believe you can develop even 25% of your response into longer term customers you are onto a winner.
Don't get me wrong, a marketing strategy that relies on 100% Groupon is commercial suicide. Unless your gross profit margins are in excess of 500%.
If you don't believe you're systems are up to strong customer retention, then don't bother.
But then, that might be one of the reasons you are looking for bums on seats in the first place.
This toddling three year old is growing up fast. Yes, there are clearly teething troubles, but I can't see anything preventing it from growing into a spotty, arrogant adolescent in due course.
Groupon's "partners" (the companies who offer the great money saving deals)may be just a little bit more sceptical, however.
Here's the tension. Companies don't like discounts. Consumers do.
Discounts lower profit margins, quite possibly forever. The P for Price is the last of the 4Ps that any self respecting marketer would ever want to touch. For companies who are struggling to get bums on seats, Groupon offers a clear method of filling those seats, but at little or no value to the business. In some cases, at a massive cost.
So why are companies bothering with Groupon?
Well, from a marketing perspective it does have some redeeming features:
- A mighty big local database. The key here is local. No-one else, guaranteed, will have a database of local consumers quite this big, or quite this up to date. That's the quid pro quo for conusmers - keep your info up to date, and you'll get all the deals first hand. Local media can't even begin to hope to reach, directly, the same numbers that a Groupon database can do in a matter of seconds. Getting the latest local news direct to your inbox is no competitor for a deeply discounted facial or trip to the zoo.
- It's free to use. There's no direct cost of marketing. So companies need no longer spend their money on something that doesn't guarantee a return. It's sort of a "no win, no fee" marketing tool.
- Their customers are engaged. And this is the real key to its success. The vast majority of Groupon users, thanks in part to social media and mobile phone technology, check their offers daily. And then they buy. They buy things they weren't intending to buy because it's a great deal. And who can beat a great deal?
Traditionally, spend on marketing sits in the region of 10-15% of total sales turnover. Groupon is essentially asking companies to part with 80% (60% discount + a 50/50 share for Groupon and the retailer) - it's a damn big ask.
But on balance, if your marketing only costs you something if you're successful and it is, by and large, the most effective form of direct marketing you can get, why wouldn't you give it a try and add it into the marketing mix? If you're in a business that relies on repeat custom, and customer service and you believe you can develop even 25% of your response into longer term customers you are onto a winner.
Don't get me wrong, a marketing strategy that relies on 100% Groupon is commercial suicide. Unless your gross profit margins are in excess of 500%.
If you don't believe you're systems are up to strong customer retention, then don't bother.
But then, that might be one of the reasons you are looking for bums on seats in the first place.
The PR Circus Continues
Like the rest of the world, I've been following the Cheryl Cole/US X Factor media circus with a degree of feigned interest and curiosity for the last couple of weeks.
On 25th May, I wrote (predicted) that Chezza would be back in the job in no time, having generated significant press coverage for the show on both sides of the Atlantic.
So, nine days later, it comes as no surprise to me that the twist in the proverbial tale is that Chezza is getting to keep her £1.2million fee for four days work, as long as she doesn't blab about how badly she was treated.
Note to bosses: that cat's already out of the bag.
Intriguingly Cheryl has been uncharacteristically quiet for a woman scorned. Very uncharacteristically quiet.
As a byline in another story, she has taken time out from her stretch of unemployment to apply for a permanent US Visa.
Wonder what she'll need that for? Will my prediction turn out to be correct?
Simon's not daft. Neither is his publicist Max Clifford. They both know these shows live or die on the amount of controversy they create. And so the PR circus continues, but I'm fairly certain it's Messrs Clifford and Cowell who are pulling the strings on this one.
I await the headline: Welcome Back Chezza
On 25th May, I wrote (predicted) that Chezza would be back in the job in no time, having generated significant press coverage for the show on both sides of the Atlantic.
So, nine days later, it comes as no surprise to me that the twist in the proverbial tale is that Chezza is getting to keep her £1.2million fee for four days work, as long as she doesn't blab about how badly she was treated.
Note to bosses: that cat's already out of the bag.
Intriguingly Cheryl has been uncharacteristically quiet for a woman scorned. Very uncharacteristically quiet.
As a byline in another story, she has taken time out from her stretch of unemployment to apply for a permanent US Visa.
Wonder what she'll need that for? Will my prediction turn out to be correct?
Simon's not daft. Neither is his publicist Max Clifford. They both know these shows live or die on the amount of controversy they create. And so the PR circus continues, but I'm fairly certain it's Messrs Clifford and Cowell who are pulling the strings on this one.
I await the headline: Welcome Back Chezza
Thursday, 26 May 2011
PR Tactics or News?
Those of you who know me personally will know I love a good conspiracy theory. And so it has become almost a game for me to discern which of the daily "news" stories are actually news, or are just clever (and sometimes not so clever) PR stunts designed to hook in members of the public and sway opinion in a certain direction.
No-one is better at the latter than Mr TV himself: Simon Cowell.
So it is with amusement that I read today about Cheryl Cole's alleged dismissal (and I say it's alleged because none of those highly paid publicists on either side of the Atlantic are spilling the beans) from Cowell's stateside X Factor project because of her "accent".
Intriguing on a number of levels.
There's nothing better than generating outrage (read: press coverage) amongst viewers for "unfair" treatment, real or otherwise.
Queue: international PR coverage, viewers rallying around Cheryl and (mark my word) her impending return to the show a few weeks down the line because Simon will (probably) feel things are not working with poor Nicola Scherzinger (who luckily has the presenting job to fall back on).
Cynical? Yes.
True. Most probably.
No-one is better at the latter than Mr TV himself: Simon Cowell.
So it is with amusement that I read today about Cheryl Cole's alleged dismissal (and I say it's alleged because none of those highly paid publicists on either side of the Atlantic are spilling the beans) from Cowell's stateside X Factor project because of her "accent".
Intriguing on a number of levels.
There's nothing better than generating outrage (read: press coverage) amongst viewers for "unfair" treatment, real or otherwise.
Queue: international PR coverage, viewers rallying around Cheryl and (mark my word) her impending return to the show a few weeks down the line because Simon will (probably) feel things are not working with poor Nicola Scherzinger (who luckily has the presenting job to fall back on).
Cynical? Yes.
True. Most probably.
Wednesday, 25 May 2011
Profits vs People: Ryanair's PR Disaster
Ryanair royally messed up yesterday. In PR terms.
The self proclaimed hero of the people put profits first. And the people didn't like it one little bit.
With the Ash cloud returning to the shores of the British Isles, bullish Ryanair shored up its shoulders and announced it would fly. It was safe to fly. In fact, there was no cloud.
But with all other airlines cancelling their flights over safety concerns, the people didn't believe it's claims that all was safe in the upper atmosphere.
You see, while we might all like to moan about how inconvenient it is not to be able to get from A to B at our allotted time, and how it has temporarily ruined our lives/days/holidays, we would still much rather be alive tomorrow.
Ryanair forgot this.
It takes years to build a reputation and seconds to lose it.
Ryanair may have just lost theirs by making a decision that, clearly, put their profits before their passengers' safety. They may have believed their own hype. But the public know better and have voted with their feet - or not - you won't catch us getting on that plane......
So in PR terms, now what?
Will anyone ever get on a Ryanair flight again without giving safety a second or third thought?
What is clear is that Ryanair's PR department will be busy for days to come, and their marketing department now face an uphill battle to convince consumers that cheap flights are not synonymous with corner cutting on the safety side of things.
A tough one.
The self proclaimed hero of the people put profits first. And the people didn't like it one little bit.
With the Ash cloud returning to the shores of the British Isles, bullish Ryanair shored up its shoulders and announced it would fly. It was safe to fly. In fact, there was no cloud.
But with all other airlines cancelling their flights over safety concerns, the people didn't believe it's claims that all was safe in the upper atmosphere.
You see, while we might all like to moan about how inconvenient it is not to be able to get from A to B at our allotted time, and how it has temporarily ruined our lives/days/holidays, we would still much rather be alive tomorrow.
Ryanair forgot this.
It takes years to build a reputation and seconds to lose it.
Ryanair may have just lost theirs by making a decision that, clearly, put their profits before their passengers' safety. They may have believed their own hype. But the public know better and have voted with their feet - or not - you won't catch us getting on that plane......
So in PR terms, now what?
Will anyone ever get on a Ryanair flight again without giving safety a second or third thought?
What is clear is that Ryanair's PR department will be busy for days to come, and their marketing department now face an uphill battle to convince consumers that cheap flights are not synonymous with corner cutting on the safety side of things.
A tough one.
Sunday, 22 May 2011
Faster, Better, Cheaper
I've changed. The recession has finally got to me.
I now want it cheaper.
But who would have known that in the search for cheaper I'd also find better and faster?
As an experiment, for the last 4 weeks I've switched supermarket. Gone are the trips to Tesco, Asda and Morrisons.
I've embraced Marks & Spencer's food hall.
And the results are staggering. It now takes me 20 minutes to do my weekly shop (instead of 60 minutes). The quality of the food is better. And, perhaps most surprisingly of all, I'm saving a LOT of money.
Let's quantify it. My average weekly shop in Tesco was coming in at around £140 in April. For two people: that's a lot.
Now I combine a trip to my local butchers Simon Howie (good, top quality meat) with a weekly shop in M&S. So far I'm yet to break the £100 barrier, a saving of 30% and more on most occasions.
I'm wasting less (so it's greener too), and we're eating healthier as a result.
So there, I've said it. I've converted from being a Railway Children family (Butter or Jam on your bread, but not both) to simply having my cake and eating it.
All in the honest quest of saving a buck or two.
I now want it cheaper.
But who would have known that in the search for cheaper I'd also find better and faster?
As an experiment, for the last 4 weeks I've switched supermarket. Gone are the trips to Tesco, Asda and Morrisons.
I've embraced Marks & Spencer's food hall.
And the results are staggering. It now takes me 20 minutes to do my weekly shop (instead of 60 minutes). The quality of the food is better. And, perhaps most surprisingly of all, I'm saving a LOT of money.
Let's quantify it. My average weekly shop in Tesco was coming in at around £140 in April. For two people: that's a lot.
Now I combine a trip to my local butchers Simon Howie (good, top quality meat) with a weekly shop in M&S. So far I'm yet to break the £100 barrier, a saving of 30% and more on most occasions.
I'm wasting less (so it's greener too), and we're eating healthier as a result.
So there, I've said it. I've converted from being a Railway Children family (Butter or Jam on your bread, but not both) to simply having my cake and eating it.
All in the honest quest of saving a buck or two.
The Forgotten P
There has, over many years, been much discussion in marketing circles about how many Ps there are.... this is (academically) a big deal. We started with 4Ps (Product, Price, Place, Promotion), someone then added a fifth (People), and subsequently others have tried to increase it to as many as ten (I'd list them here but there are too many to even remember).
Being involved in the marketing of businesses and events on a daily basis, it surprises me, in fact worries me, how many organisations seem to forget about one of those Ps more than the others.
It'll be no surprise that the Ps most discussed with me are Promotion, Price, People and (occasionally) Place. But rarely, and I mean rarely, does anyone pay much attention to the central proposition: Product.
Now it hasn't escaped anyone's notice that we're in the middle of a recession here. In recessions, customers are a cash strapped, price conscious, fussy lot. In the nicest possible sense, of course.
In simple terms, consumers become more discerning. They judge us differently. They alter their behaviour. They change their patterns of spending. And all of this happens when firms are fighting like dogs over a smaller share of the money pot than was previously available.
So it's important to be different. To be better. To offer value for money. To stand out from the (increasingly large) crowd.
Yet most firms just tinker round the edge. Stubbornly refusing to look at their core product or service. It's a bit like the Emperor's New Clothes.
But now is the time. Now is the perfect time to review. To innovate. To charge ahead of your competitors.
A business we've been involved with for quite some time did just that. Around 18 months ago, with the bottom literally falling out of their market, they took a cold hard look at their whole business model, their products and their target market. And they changed. They changed drastically. New product lines, fresh branding, new target market.
The results are staggering. Instead of a downward sales curve, it's now firmly pointing in the right direction. Instead of diminishing profits, they are now making money. And the good news is, that it's early days - when the bounce back comes they'll be ready to take advantage.
So if you are facing challenges in this difficult economy, and are looking to review your marketing, start with the first P, the most important P, before you go wasting money on all the others. It might just be the making of your business.
Being involved in the marketing of businesses and events on a daily basis, it surprises me, in fact worries me, how many organisations seem to forget about one of those Ps more than the others.
It'll be no surprise that the Ps most discussed with me are Promotion, Price, People and (occasionally) Place. But rarely, and I mean rarely, does anyone pay much attention to the central proposition: Product.
Now it hasn't escaped anyone's notice that we're in the middle of a recession here. In recessions, customers are a cash strapped, price conscious, fussy lot. In the nicest possible sense, of course.
In simple terms, consumers become more discerning. They judge us differently. They alter their behaviour. They change their patterns of spending. And all of this happens when firms are fighting like dogs over a smaller share of the money pot than was previously available.
So it's important to be different. To be better. To offer value for money. To stand out from the (increasingly large) crowd.
Yet most firms just tinker round the edge. Stubbornly refusing to look at their core product or service. It's a bit like the Emperor's New Clothes.
But now is the time. Now is the perfect time to review. To innovate. To charge ahead of your competitors.
A business we've been involved with for quite some time did just that. Around 18 months ago, with the bottom literally falling out of their market, they took a cold hard look at their whole business model, their products and their target market. And they changed. They changed drastically. New product lines, fresh branding, new target market.
The results are staggering. Instead of a downward sales curve, it's now firmly pointing in the right direction. Instead of diminishing profits, they are now making money. And the good news is, that it's early days - when the bounce back comes they'll be ready to take advantage.
So if you are facing challenges in this difficult economy, and are looking to review your marketing, start with the first P, the most important P, before you go wasting money on all the others. It might just be the making of your business.
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