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(Un) Happy Christmas Mr Orangutan

Advertising can have a dramatic impact on what people buy and in countries which celebrate Christmas, one of the busiest buying seasons is upon us.

It’s traditional in the run up to Christmas in the UK for the big retailers to release a major TV advert. The retailer John Lewis for example has released it’s Christmas advert staring Elton John (who reportedly received a fee of £5 million for his input).

For me though the clear winner in the Christmas adverts is the “Rang tang” advert by the supermarket chain Iceland.

The advert was originally produced by the global charity Greenpeace and highlights the destruction of the rainforest caused by the production of palm oil (palm oil is found in many everyday products ranging from food staples such as bread to cosmetics).

The companies that produce palm oil are cutting down vast amounts of trees and as a result the Orangutan apes are really suffering. In simple terms, their homes are being destroyed and they are dying as they have nowhere to live.

Iceland spent £500,000 on putting the advertising campaign together and have pledged to remove palm oil from all their own brand products.

The advert, which was voiced over by actress Emma Thompson, has run into some problems with Clearcast, the body which approves or rejects television adverts in the UK. They have ruled that it is too political and as a result it has been banned from being shown on television.

The good news for this advert though is that Clearcast don’t regulate social media and the advert has been a hit on Facebook and YouTube.

At the time of writing, the advert had been viewed over 5 million times on YouTube.

If you haven’t seen it yet, I’d urge you to watch it below as it’s a great advert which raises awareness of an important global issue.

Step on it…

You probably haven’t heard of Klaus Maertens but I reckon that most of you will have seen what he started.

Klaus was a German soldier who back in 1945 had a broken foot and wanted a boot without the traditional hard sole. Together with his friend Herbert Funk, who was a mechanical engineer, he designed an air cushioned sole which led to the global footwear brand Dr Martens.

Since those early days, the product has had an up and down history. In the 1970s they were very fashionable and sales grew. By the time the early 2000s came around they were having production problems and competition from other similar brands of footwear had increased.

They nearly went out of business but a swing in fashion brought them back on track and in 2013 they were purchased by Permira, the private equity group, for £300 million.

Since then their fortunes have prospered and they recently released their latest set of financials.

Revenue has shot up by 20% to £349 million and earnings were up 14% to £50 million.

Their “Direct To Consumer” (DTC) channels are doing very well and now represent 40% of their total revenue. DTC is where the products are sold directly to the consumers and not via an intermediary such as an independent shoe shop.

Dr Marten’s store count has increased by 25 to 94 and the new stores show the global reach of the brand (9 in the UK, 7 in mainland Europe, 3 in New York and 3 in Japan).

Kenny Wilson, CEO of Dr. Martens said: “Dr. Martens has delivered another outstanding year. We are an iconic brand that does things in our own unique, disruptive way and that is unifying our consumers across the globe. The business’ investment in our DTC channels, both in terms of retail stores and E-commerce, is bearing fruit, and these will remain priority channels for us.”

All in all, Dr Martens seem to be putting their best foot forward.

A nice snappy idea…

The Carlsberg Group is one of the oldest brewing groups in the world. They were established way back in 1847 and their portfolio of products include Tuborg, Baltika and of course, Carlsberg.

They sell a lot of beer and their products are sold in more than 150 markets.

The “6 pack” is synonymous with beer and no, I’m not talking about the 6 pack on the beer drinkers abs. Rather, I’m talking about the 6 pack of beer that people can buy from shops.

One unfortunate problem with the 6 pack is that the cans are held together with a plastic wrapping. With so many 6 packs being sold around the world that means a lot of plastic is used.

People are becoming increasingly aware of the environmental damage that plastic is doing and Carlsberg have come up with a pretty innovative solution to reducing plastic on their 6 packs.

They have introduced what they call a “snap pack”.

In the snap pack the cans of beer are held together by glue rather than plastic wrapping. The cans of beer can be “snapped off”.

This saves a significant amount of plastic – according to Carlsberg this equates to reducing plastic waste by more than 1,200 tonnes a year. That’s a huge amount and is the equivalent of 60 million plastic bags.

Bo Oksnebjerg, Secretary General in WWF Denmark, was quoted as saying “Our wildlife is drowning in plastic – and the problem is unfortunately growing considerably. We therefore need to act now. We need less plastic to end up in nature. That is why we consider it huge progress that Carlsberg is now launching solutions that significantly reduce the amount of plastic in its packaging. With these new solutions, Carlsberg has taken the first big steps on the journey towards a more clean and green future.”

Nice work Carlsberg and I’ll drink to that. Or should I say, I’ll snap one off and drink to that…

Is this worth smiling for?

Are you happy when you spend money? I guess the answer depends on what you’re spending the money on but over in China, KFC have just introduced technology which enables a person to pay for their KFC meal with a smile.

Yes, a smile.

Nothing else is needed – no bank card, no phone app. Just a smile.

That’s a pretty advanced system and involves facial recognition technology.

Customers who want to get their dose of fast food at the KFC branch in Hangzhou can leave their cash and cards behind and instead smile at a scanner, press confirm and then hey presto you’ve paid for your meal without moving your hands and you will soon be tucking into your Kentucky Fried Chicken.

Payment is taken from a cash account which has been linked to the person’s face.

China has some of the most advanced facial scanning technology in the world. Collecting images of the public doesn’t need any consent in China and the technology is likely to spread.

For example, it’s been reported that students in several universities in China are now registering by scanning their faces and lecturers will soon be able to track the facial expressions of students to see how well they are following the lectures.

It may be advisable for these students to master the act of hiding those yawns during a boring lecture and instead start to practice for the KFC they’re planning to get after the lecture…

This is how not to do first aid in the office.

Having people trained in the office to undertake first aid is an important health and safety feature.

Organisations can send people to health and safety training or like the organisation in the video below, can get health and safety professionals to provide on site demonstrations.

Now, whilst most demos will be educational and very professional, as the video below shows, this particular demonstration was more like a slapstick comedy film.

A volunteer was asked to pretend that he was injured but unfortunately when the health and safety “professional” came into the demonstration he accidentally knocked over a shelf which then fell onto the “pretend victim” who suddenly became the “real victim”.

Luckily for all concerned nobody was seriously injured and if you want to see a fine slapstick comedy moment demonstration of health and safety then enjoy the video below.

OMG – will these hit the shelves?

Procter & Gamble, or P&G as it’s commonly known, is one of the world’s largest companies and has an incredible portfolio of products including Gillette, Head & Shoulders shampoo and Pampers nappies.

The business was set up in 1837 by two gentlemen called, yes you guessed it, Mr Procter and Mr Gamble.

Since then it has grown to become a huge organisation and is now quoted on the New York stock exchange. It has annual sales in excess of $15bn.

A recent trademark application in the US though could indicate that there may well be some new brand names joining their portfolio.

They have made applications for trademarks on household and personal care products for certain “text speak”. Or to be more precise they have filed an application for terms including “LOL” (Laugh Out Loud) and “NBD” (No Big Deal).

The move seems to be an attempt to target the tech savvy millennial generation who have grown up with this tech speak.

It’s not certain yet whether we will see cleaning products called LOL and NBD as the U.S. Patent and Trademark Office has sought clarifications from P&G and they have until January to respond.

One other interesting term which has been included in the application is “WTF”.

Could we soon be seeing “WTF Cleaner” on supermarket shelves?

Explaining what “WTF” stands for is a bit rude to print here so if you don’t know what it means then one of the quickest ways to find out is to say “WTF” when your boss next asks you to do something.

Put the kettle on (or maybe not?)

Tea and coffee have been around for a long, long time. Many a person has grabbed a strong coffee to keep them going over a long day in the office or a long night studying.

Coffee is said to originate from East Africa where legend has it that a 9th century Ethiopian goat herder by the name of Starbucks Kaldi noticed that after his goats had ate some coffee beans they started bouncing around like teenagers at the local disco.

This started the journey of coffee and associated caffeine hits so loved by students around the world.

Tea however is often seen as a healthier option but the tea industry is facing several challenges at the moment. In particular, the 16 to 34 age group in the UK are changing their drinking habits.

Only 1 in 6 people in this age group now drink 5 or more cups of tea a day.

People in the 55 to 64 age group on the other hand drink twice as much tea.

And the reason for the reduction in drinking tea amongst the younger population?

A number of reasons have been put forward. These include the fact that the younger generation feel that black tea could stain their teeth. It is also felt to be unhealthy given the amount of caffeine black tea contains.

It’s not all bad news for the tea industry though as the younger generation are drinking more green teas and fruit teas. Green tea is claimed to enhance brain function and sales are up by 39% over the last two years.

The increase in green tea sales though has failed to stop the fall in overall tea sales as the combined market in tea was down 5%.

Maybe the famous quote “Keep calm and drink tea” should be changed to say “Keep calm and drink green tea”…

Gentlemen, you’ve got 55 seconds to beat your best…

One of life’s great mysteries for men when they are at a bar or club is why women always seem to go to the ladies “powder room” in groups.

There could soon be an equally mysterious occurrence that women will puzzle over and that is why men will soon disappear to the “gents” together during a social evening out.

Well, it won’t be to adjust their makeup or to catch up on the local gossip.

No, if UK company Captive Media has anything to do with it the visits to the toilet by men could soon be a great marketing opportunity.

It’s been estimated that on a night out a man spends on average 55 seconds relieving himself each time he visits the urinals in the gents (if you ever saw a person with a clipboard and a stopwatch behind you at the urinals now you know why…)

In the eyes of Captive Media this represents a great advertising opportunity as rather than staring blankly at the wall in front of you (or telling the person with the clipboard and stopwatch to go away) they have developed a urinal-based games console which allows men to, how can we say it but aim and shoot at targets with their “stream”.

The games are mixed with adverts and include for example a downhill skiing game which is controlled by your “stream”.

It remains to be seen what products will be advertised in this way but one thing for sure ladies is that if your boyfriend or husband returns from the gents whilst you’re out together on a social evening and he says that he’s just beaten his personal best then you know what it refers to.

Was this an Innocent transaction by Coke?

“Smoothie drinks” have become very fashionable over recent years.

Smoothies are drinks made out of crushed fruit and are seen as a healthy alternative to carbonated drinks such as Coke or Pepsi.

Perhaps the most famous smoothie manufacturer in the UK is Innocent Smoothies. The business was set up in 1999 by three friends who famously gave up their jobs to start the business after they invested £500 on fruit and turned it into smoothies and sold them at a music festival. The business has grown since then and been a true success story.

The brand has a “quirky, playful” image as well as promoting itself to be ethically aware (it donates 10% of its profits to charity).

So, what has Coca-Cola got to do with all of this?

Porter’s 5 Forces strategy model is well known to students of professional exams.

If a 5 forces analysis is done on for example the traditional Coca-Cola carbonated drink then a substitute product would be a smoothie. There is a general trend in a lot of countries towards healthier living and the threat of a substitute product such as a smoothie could be seen as a threat.

In 2009 Coca-Cola bought an 18% stake in Innocent for £30 million and then in the following year increased its shareholding to 58% for a reported £65 million. They then increased their shareholding to over 90% for an undisclosed sum. From a Porter’s 5 forces point of view this is a good move as it means that one of the substitute products is now within the Coke family.

There has been a fair amount of discussion since the aquisition about whether Innocent is still the ethical likeable  “under dog” that it was given that it is now part of one of the biggest companies in the world.

One thing is for sure though and whilst it was certainly an Innocent transaction it was also definitely a well thought out strategic acquisition.

Missing faces at the World Cup.

The World Cup is well underway and whilst football fans around the world are enjoying a feast of top football there are a number of “missing faces”.

By “missing faces” I’m not referring to players who aren’t at the World Cup but instead I’m referring to some top global companies.

Johnson & Johnson, Sony, Continental and Castrol were leading sponsors of the World Cup but decided not to renew their contracts when the corruption scandal at FIFA (the governing body of the various football associations around the world and the body that organises the World Cup) hit the headlines a few years ago.

The money that FIFA gets from sponsorship is significant. It’s believed that a 4-year top tier sponsorship costs in the region of $150 million.

Previously, Johnson & Johnson, Sony, Continental and Castrol had no doubt spent that type of money in the expectation that it raised their profile and increased their sales

Their hope was that football fans around the world would be watching the games and then be exposed to, for example, the Sony brand and as a result somewhere down the line would end up buying a new Sony television or other electrical product from Sony.

The new sponsors for the current World Cup are a bit different though. They include major state backed companies such as Gazprom (Russia’s oil giant), Qatar Airways and Wanda (the Chinese conglomerate).

Wanda calls itself the world’s biggest property developer and Gazprom has a virtual monopoly.

It’s difficult to see how their sales would receive a boost from the World Cup exposure.

It’s not just sales though that are in the mind of sponsors. With the World Cup being held in Russia there’s an obvious link to sponsorship. Qatar are hosting the next finals in 2022 and the presence of Wanda will help increase the exposure of football in China where it’s been reported that President Xi has ambitions to make China a great footballing nation.

Either way, I’m sure the supporters of the team that ends up winning the World Cup won’t really care too much over who sponsors the World Cup – It’s the winning the tournament that counts as far as they are concerned…