Tag Archives: Agency

Back to school: a lesson in brand relations

 

Back to school in my youth was always met with a heavy sigh when my parents calculated the uniform costs and I wanted the latest pencils and rubbers. These days, trends have changed. Thanks to the competition among discount supermarkets like Aldi, Lidl and Asda we’ve seen uniform costs and stationary prices plummet, giving consumers a far greater choice at more reasonable prices often using ‘event’ advertising campaigns increasing footfall into store and bolstering revenues in other areas of their business.

There’s one category that’s changed everything as it becomes a staple of the ‘Back to School’ event, particularly in higher education: consumer electronics – to be precise computing – adding a whole new layer of cost parents must budget for. While retailers should consider an all-year-round back-to-education strategy, back to school begins to increase in prominence from August, especially in the technology category. The value of the back-to-school market in the UK is estimated to be worth around £1.45bn and while uniforms and stationery will make up a large proportion of this market, the increasing requirement for technology in the classroom means that edu-tech continues to be a growth opportunity for retailers.

Every school, college and university around the UK differs, but they all require some level of ‘technology’ input and expense from parents. As government budgets for school funding continue to decrease, this need will only get bigger and more expensive. It’s a costly exercise and therefore something no parent or student wants to get wrong. A bring your own device (BYOD) policy is becoming common place and enables the market to grow to support this with the right advertising, marketing and in-store execution. As a considered purchase – and for many their first computer that they don’t have to share – the need to try before you buy is important. It’s a seminal moment for most teens. The look, the feel, the height and size are vitally important to most, especially in our streaming culture where the device is both for work and play.

Not everyone is tech literate and understands what product is best for their child and, yes, some schools have preferred suppliers, but often parents are sent out into the big wide world to get a lap top or a PC and the choice is overwhelming and confusing. This often leads to a whole host of questions: what hardware and platform do I opt for? What software will I need to buy? What about security? Is it going to be out of date before the end of the school year? Is it robust enough? Am I spending more than is necessary?

For teenagers going to University this is a chance to upgrade their old ‘shared’ kit and start fresh with new equipment that has the functionality to assist them in delivering their course and honing their tech skills ready for the workplace. This is a great opportunity for brick and mortar retailers to position themselves as the advisor – the place to go when you’re inundated with choice, don’t know what to buy or where to go to experience the products to touch and feel and work out if they’re right for you.

The ability to choose from a range in an environment geared towards making this decision is crucial for university and tertiary education students; different courses will require the technology to have specific functionality. Retailers need to be inquisitive and understand the student’s lifestyle to match the product to their needs. Technology purchases are not just about the one product these days, they are multi-functional lifestyle solutions, so in-store staff have to be trained to ask the most pertinent questions: What will you study? Is design (weight and size) a primary consideration? How do you consume media and home entertainment? What’s the budget?

Amazon will be a key back-to-school destination – especially for the 30% of Brits that now have Prime membership – but this is something Amazon and other online retailers can never do as effectively when a personal approach to a considered purchase is needed by a brand and retailer.

Never underestimate the first consumer interaction with your brand – an emotional connection that shouldn’t be undervalued. Not only is it a great opportunity for a brand to bring a new customer into their portfolio and up-sell them through their product ecosystem as their needs and lifestyle changes; it is also the chance to create an advocate and customer for life. Brands invest heavily in extra activity around back-to-education including Fresher’s Fairs and NUS affiliated marketing. Paying attention to planning and implementing in-store strategies within retail is an essential part of any back-to-education marketing strategy.

Daniel Todaro is managing director at Gekko

Read the original article on The Drum

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The best place for the home to get smart is on the high street

It’s no surprise that the Smart Home dominated last month’s Consumer Electronics Show (CES) with a whole range of evolution and innovation across security, home appliances and energy management. The trend has no doubt been expedited by the huge success of intelligent assistants with Google announcing that their Home devices sold over 6 million units, that’s one every second, and now Google Assistant runs on over 400 third party devices globally.

Many brands, such as Samsung, have opted to support their brands by integrating their own technology. Its lesser-known Bixby Assistant was integrated into its Smart Fridge with AKG speakers, making it a multimedia centre for the kitchen. Kholer showcased its intelligent bathroom ‘Konnect tech’ enabling your shower, bathtub, toilet, mirror and tap to be connected, both to you and each other. The company’s Touchless Response technology provides hands-free toilet flushing, perfect for those germophobes.

The market is evolving and in 2018 it will start to get a lot more crowded as the category grows from Amazon and Google offering their own speakers in a variety of form factors but also Google, Alexa and Siriin other hardware brands like Sonos. Sonos have already released the Sonos One with Alexa, and they have hopes to integrate Siri and Google Assistant soon. Apple’s HomePod will hit homes but Siri offers some weak competition as it struggles to develop its voice recognition. Yamaha, Libratone, and DTS all announced Alexa driven smart speakers this year, with SonyPhilips and LG announcing Google Assistant integration into their smart products.

And here lies the problem. Confused already? Indeed. Understand what’s compatible with what system? Probably not. Do you know if your Ring Video Doorbell can be hooked up to your Google Home, so you can speak to any visitors without having your smart phone to hand? If you’re reading this, you probably work in marketing and are classed an early adopter. Imagine what it’s like for everyone else seeing and hearing about these products everywhere they go and no idea what to do and how to integrate them.

Smart Home retail value is expected to reach £5.11bn worldwide this year and according to the Office for National Statistics (ONS), while online sales continue to rise, e-commerce as a percentage of total retail sales in December 2017 was still only 18%. We also know that a Smart Home device in many instances requires an assisted sale. It’s a considered purchase and for some, a rather complicated buying process with further concerns about installation and integration with existing technology.

This is a great opportunity for traditional retailers to excel and showcase why they are still the best channel for selling ‘technology’ products using the retail environment to educate, engage and sell to the consumer through driving excitement and experience directly with the brand.

Our own research shows that even among today’s tech savvy 18 to 24-year-olds, more than 40% prefer to head in-store to see, touch and experience a product before buying, rising to 58% for the over 55s. Most surprising is that 38% of 18 to 24-year-olds want a personal service and recommendation from in-store staff, the highest among of all the age categories.

When we asked what advertising has influenced a considered purchase, none of the mainstream advertising channels were cited as influential: just 7.5% for TV, 8.7% for website, 4.6% for social media, 3% for billboard and 2% for newspaper and print. Advertising in-situ within the retail environment however was rated the key influencing factor at 19%.

This is a clear signal that traditional retailers should spend time and money working with staff on the shop floor and make the consumer experience as good as it can be as it will pay for itself through category development and increased sales at a higher average sales price – a win win for both retailer and brand.

Click here to read the article on The Drum

 

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