With the global climate summit in Copenhagen just around the corner, I've been reading an increasing amount about eco-initiatives from organisations that you wouldn't normally associate with the green movement.
Fascinatingly, a number of organisations are moving away from just plastering their marketing material with their great intentions and instead are taking more direct action. I read today that Lush, the high street cosmetics company, is more or less setting itself up as an environmental activist company, with other companies taking a similar line to prove 'that you can do good through doing business', as one company director put it.
"We look at issues and we decide which ones are important to us and then we see how we can support them", explains Andrew Butler, Lush's director of campaigns. "We partnered with Sea Shepherd (a marine environmental organisation) - a direct action group best known for confronting Japanese whaling vessels, and we felt that shark finning was an issue we could help them with." To this end, Lush sold 'shark fin soap' (soap bars with a fake fin sticking out of the top) with proceeds going to the cause. Mr Butler argues it's about attracting attention to an issue that might otherwise have languished. "In all, we raised £25,000", he said.
I'm fascinated about this movement of environmental and sustainability issues into mainstream business.
How does a company's value proposition to its customers reflect corporate values? How does Lush translate its passionate, activist, environmental stance into a valuable customer experience? I'd love to hear your views.
Tuesday, 27 October 2009
Tuesday, 20 October 2009
Dixons forget value and go for price
Well, I’ve been thoroughly enjoying the heat-and-light generated by Dixons’ latest advertising campaign. Media-luvvies have been falling over each other in their haste to write articles, arguing the toss over whether this is gutsy advertising or the desperate stance of a failing brand. And Selfridges, John Lewis and Harrods – the targets of the copy – are … let’s say… irritated.
For those of you who haven’t seen these adverts, here’s an example of one ad: "Step into middle England's best-loved department store, stroll through haberdashery to the audio visual department where an awfully well brought up young man will bend over backwards to find the right TV for you. Then go to Dixons.co.uk and buy it."
From a value proposition point of view, Dixons have obviously done their customer research, understood that the only ground upon which they can legitimately compete is price and so put this message front-and-centre of their campaign. This is, to say the least, a risky stance, not least because price competition is the most shifting of all grounds upon which to base your value proposition.
As we have always said, the value equation is Value = Benefits minus Cost (with cost including risk not just price). Dixons are clearly gambling that people will only consider price when buying their electronic goods. However, I suspect that many consumers are not only price-conscious but also increasingly risk-averse and are actively seeking the warranties, after-sales care and impartial sales advice offered by stores such as John Lewis.
Time will tell whether Dixons’ bold advertising will bring in the sales boost from the shoppers of ‘middle-England’. Some people may well be tempted but I suspect that, for many, the value equation won’t balance and the ‘best loved department store’ will therefore continue to do very well.
For those of you who haven’t seen these adverts, here’s an example of one ad: "Step into middle England's best-loved department store, stroll through haberdashery to the audio visual department where an awfully well brought up young man will bend over backwards to find the right TV for you. Then go to Dixons.co.uk and buy it."
From a value proposition point of view, Dixons have obviously done their customer research, understood that the only ground upon which they can legitimately compete is price and so put this message front-and-centre of their campaign. This is, to say the least, a risky stance, not least because price competition is the most shifting of all grounds upon which to base your value proposition.
As we have always said, the value equation is Value = Benefits minus Cost (with cost including risk not just price). Dixons are clearly gambling that people will only consider price when buying their electronic goods. However, I suspect that many consumers are not only price-conscious but also increasingly risk-averse and are actively seeking the warranties, after-sales care and impartial sales advice offered by stores such as John Lewis.
Time will tell whether Dixons’ bold advertising will bring in the sales boost from the shoppers of ‘middle-England’. Some people may well be tempted but I suspect that, for many, the value equation won’t balance and the ‘best loved department store’ will therefore continue to do very well.
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