Experimenting for more efficiency

When we talk of the impact of technology, we too often mention high-tech companies. Should they continue with the traditional television spots promoting their Red Label ham slices? Are there not two worlds? Should we be asking ourselves whether the homemaker is really high-tech?

It is true that it is easy to escape into the technological dream and Silicon Valley. However, we need to recall that since 2003, Coca-Cola has reduced its television advertising investment by 10 per cent and brought a wholesale innovation in terms of media. Thus it competes with iTunes in Spain and in Britain with the mycokemusic.com website. Coca-Cola invests in the domain of video games, and product placement. Its media plan still follows its clients closely: the mobile phone has become the major point of contact.

Returning to Fleury Michon: if the penetration of its fresh, vacuum-packed ready cooked meals is 10 times less than that of its ham, should the company run television advertisements for those products? Would it not be better to be referenced on all the important female-oriented websites, or work on micro targets such as:

  • parents of students who do not have time to cook meals in their college rooms;
  • children of grandparents who no longer have the energy to cook their meals every day;
  • partners or spouses who are going away and wish to leave high-quality meal solutions;
  • singletons of all ages.

How can they be involved, induced to participate, affected? Nowadays market share is built through an aggregate of niches, of distinct groups. Technology has finally made it possible to reach these targeted groups at low cost. It is not a question of replacing 100 per cent of television advertising with a 0 per cent television budget from one day to the next: even Apple, the queen of Silicon Valley, has not done so. It is, however, time to experiment and see whether the returns on each euro invested are not better here than there.

For example, at Google, the 70/20/10 rule is used to describe three types of investment:

  • 70 per cent of investment relates to current pillar products, best-sellers, in order to strengthen them;
  • 20 per cent relates to experiments to test new ways of marketing, and promote these products along the way, due to technological progress: this is a matter of seeking efficiency;
  • 10 per cent is spent on projects that have no relation to current business.

Coca-Cola has been reducing the share of television investment in its marketing budget for some time. Since television is no longer the preferred medium of young people, but has been replaced by the mobile phone, it is necessary to adapt and to test other modes of communication. Coca-Cola is constantly experimenting: in Spain and Britain it has launched mycokemusic.com, in competition with iTunes, thanks to an alliance with a major player in the telephony sector. Coca- Cola has also invested in space in video games, product placement, proximity events and street marketing, in addition to its B52s of sports and music sponsorship.

Strategic Brand Management Related Practice Tests

Strategic Management Practice Tests
Brand Equity In Question What Is A Brand? Differentiating Between Brandassets, Strength And Value Tracking Brand Equity Goodwill: The Convergence Of Finance And Marketing How Brands Create Value For The Customer How Brands Create Value For The Company Corporate Reputation And The Corporate Brand Strategic Implications Of Branding What Does Branding Really Mean? Permanently Nurturing The Difference Brands Act As A Genetic Programme Respect The Brand ‘contract’ The Product And The Brand Each Brand Needs A Flagship Product Advertising Products Through The Brand Prism Brands And Other Signs Of Quality Obstacles To The Implications Of Branding Brand And Business Building Are Brands For All Companies? Building A Market Leader Without Advertising Brand Building: From Product To Values, And Vice Versa Are Leading Brands The Best Products Or The Best Value? 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Brand Language And Territory Of Communication Choosing A Name For A Strong Brand Making Creative 360° Communications Work For The Brand Building Brand Foundations Through Opinion Leaders And Communities The Challenge Of Growth In Mature Markets Growth Through Existing Customers Line Extensions: Necessity And Limits Growth Through Innovation Disrupting Markets Through Value Innovation Managing Fragmented Markets Growth Through Cross-selling Between Brands Growth Through Internationalisation Sustaining A Brand Long Term Is There A Brand Life Cycle? Nurturing A Perceived Difference Investing In Communication No One Is Free From Price Comparisons Branding Is An Art At Retail Creating Entry Barriers Defending Against Brand Counterfeiting Brand Equity Versus Customer Equity: One Needs The Other Sustaining Proximity With Influencers Should All Brands Follow Their Customers? Reinventing The Brand: Salomon Adapting To The Market: Identity And Change Bigger Or Better Brands? From Reassurance To Stimulation Consistency Is Not Mere Repetition Brand And Products: Integration And Differentiation Specialist Brands And Generalist Brands Building The Brand Through Coherence Defining The Core Identity Of The Brand Confirming The Presence Of Brand Core Facets In Each Product Identifying The Role Of Each Product Line In The Construction Of The Brand Graphically Representing The Overall System Of The Brand Checking The Coherence Worldwide The Three Layers Of A Brand: Kernel, Codes And Promises Respecting The Brand Dna Managing Two Levels Of Branding Growth Through Brand Extensions What Is New About Brand Extensions? Brand Or Line Extensions? The Limits Of The Classical Conception Of A Brand Why Are Brand Extensions Necessary? Building The Brand Through Systematic Extensions: Nivea Extending The Brand To Internationalize It Identifying Potential Extensions The Economics Of Brand Extension What Research Tells Us About Brand Extensions Avoiding The Risk Of Dilution Balancing Identity And Adaptation To The Extension Market Segments Assessing What Should Not Change: The Brand Kernel Preparing The Brand For Remote Extensions Keys To Successful Brand Extensions Is The Market Really Attractive? An Extension-based Business Model: Virgin How Execution Kills A Good Idea: Easycar Brand Architecture The Key Questions Of Brand Architecture Type And Role Of Brands The Main Types Of Brand Architecture The Flexible Umbrella Brand The Aligning Umbrella Brand (masterbrand) Choosing The Appropriate Branding Strategy New Trends In Branding Strategies Internationalising The Architecture Of The Brand Some Classic Dysfunctions What Name For New Products? 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Evaluating Brand Valuation Methods Brand Valuation In Practice The Evaluation Of Complex Cases What About The Brand Values Published Annually In The Press? Strategic Brand Management Interview Questions