‘Everyone has to eat’ says Morrisons as it anticipates a price-conscious Christmas

With Christmas fast approaching, the current retail climate suggests consumers will be looking for a bargain.

Morrison's Supermarket

John Lewis has already predicted the mood around big ticket items will be subdued for quite some time – suggesting Brits will be less likely to trade up this Christmas.

The reality, according to GfK, is Brits are slightly upping their spend on bigger buys such as electricals, but only because they are borrowing more money on credit cards. It has labeled this trend “worrying” and says rising interest rates and inflation will also dampen the mood among many consumers this Christmas.

Despite this negative backdrop, big four supermarket Morrisons will be taking a lot of positive momentum into the crucial Christmas trading period. Today (2 November) it revealed like-for-like sales rose 2.5% in its third quarter.

Although this is a slower rate of growth than the 2.6% and 3.4% growth it recorded in the previous two quarters, it represents the supermarket’s eighth consecutive quarter of sales growth – a reality far removed from the struggling brand inherited by Morrisons’ CEO David Potts when he took the job in February 2015.

And asked by Marketing Week during a press call whether Christmas 2017 will most benefit discount brands, Potts answered: “Our job is to serve core customers as well as we can whatever the prevailing circumstances are. Equally, everyone is welcome at Morrisons and with our ‘Best’ premium range doubling its sales over the last year – the quality message is now there at the business.

“This Christmas we will be holding the prices of 100 of the key festive items – from potatoes to mince pies – so customers will need to decide [if they want to spend more somewhere else] as ultimately everyone has to eat.

“There’s every chance Brits will dial down on eating out and come to Morrisons instead so there’s plenty to look forward to. We’re in better shape this year with more stock in store and more research completed. We feel more chipper going into Christmas.”

Morrisons is trying to tread the line between low prices and high quality

Under Potts, Morrisons has repeatedly talked up its brand positioning as a shop keeper and as a food maker, with it looking to find the middle ground between similar prices to the German discounters Aldi and Lidl as well as high food quality perceptions.

Reflecting on the year, Potts says the brand has most benefitted from word of mouth buzz due to the improvements it has made to its core offer.

He concluded: “The Most important thing we have done with our brand is listen hard to customers and colleagues, and wherever possible respond quickly to their concerns.

“That has led to priorities within the business around competitiveness increase and allowed us to serve customers better. There’s now great value on the shelves and great work completed on our own brand around both notching up quality and notching down pricing combined. All of this combined with cleaner stores has made the shopping trip better than it was and our brand stronger in the market.”

from Marketing Week: https://www.marketingweek.com/2017/11/02/morrisons-feeling-chipper-going-into-christmas/

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Nespresso focuses on its farmers rather than George Clooney for latest campaign

Nespresso launched its first ever above the line campaign around its sustainability efforts, as the brand insists it is not an “opportunistic” campaign but a long-term strategy.

‘The choices we make’ campaign, which launches today (12 September) and was created by JWT, features a 60-second TV film and will also run across digital and print media. Four short online films and a new content hub have been created to share the personal stories of the farmers behind the coffee. The ads will run until the end of the year.

The TV ad focuses specifically on Nespresso building a community mill in Colombia where farmers can bring their coffee beans to be processed. The company says it has helped farmers save up to five hours a day during picking season, which they are able to reinvest in their families, communities and hobbies.

One story, for example, shows coffee farmer Luis, who can now spend more time with his son. The community mill, he says, has also enabled better water management and cleaner rivers in the region. And while brand ambassador George Clooney might not be the star, he does narrate the campaign.

Read more at Marketing Week:  https://www.marketingweek.com/2017/09/12/nespresso-first-sustainability-campaign/

Coca-Cola: ‘E-commerce should not be seen as a channel’

Coca-Cola says digital transformation and e-commerce are its top priorities, as the fizzy drinks company claims its products are among the fastest selling online.

Coca-Cola believes e-commerce is playing an increasingly important role for the business, but warns that its image of only being the remit of digital “pure players” is wrong and should be challenged.

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Speaking at the Barclays Global Consumer Staples Conference yesterday (5 September), the company’s executive vice president of Coca-Cola North America, Sandy Douglas, spoke about the “digitisation” of the business, and how technology is changing the way it serves consumers.

E-commerce, she claims, gives it the opportunity to reach people using their mobile devices in their homes – and believes there is room for further growth due to the popularity of its products among online retailers. That said, she believes e-commerce still has an image problem that needs tackling.

Read more at Marketing Week: https://www.marketingweek.com/2017/09/06/coca-cola-e-commerce-not-seen-channel/

Dolmio’s new campaign ditches the Italian puppets in favour of ‘real-life situations’

British actor Dominic West will star in the campaign as Dolmio heads in a new creative direction with its advertising.

While the puppets will no longer be used in its campaigns, a spokesperson for the brand tells Marketing Week the Dolmio puppet family are “still an important part” of its brand identity and that they’re “very fond” of them. As a result, the brand is not moving away from them completely and they continue to feature on its packs.

“For this campaign, we felt the time was right to move in a new direction and demonstrate real-life situations and the role the brand can play in helping families eat drama-free, healthy enjoyable meals,” she said.

Read more at MarketingWeek: https://www.marketingweek.com/2017/08/18/dolmio-ditches-puppets-real-life/

Coca-Cola launches first sustainability campaign to promote plastic recycling

The multi-million pound campaign is part of Coca-Cola’s new sustainable packaging strategy and aims to encourage more people to recycle.

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Coca-Cola has launched a multi-million pound campaign to encourage consumers to recycle its plastic bottles, marking the first time it has run a major sustainability campaign in Great Britain.

The ‘Love Story’ campaign, created by Ogilvy and Mather Berlin, tells the story of two bottles – one Fanta and the other Coke Zero Sugar – who fall in love as they meet over and over again because they keep getting recycled into new bottles. The film ends with a voiceover encouraging people to recycle bottles from Coca-Cola brands including Sprite, Fanta and Coke after use.

Read more at Marketing Week: https://www.marketingweek.com/2017/07/29/coca-cola-launches-first-sustainability-campaign/