Waitrose, Tesco, trust and horse burgers

Horses wouldn't be served at Waitrose, because we trust them and it's in their values

Horses wouldn’t be served at Waitrose, because we trust them and it’s in their values

I did a workshop at Nottingham Trent University yesterday and one of the key points I wanted to get across was brands who work with very focussed brand values have clearer marketing messages. More than this, they have clearer business propositions and it would seem to me that they are ultimately more successful as businesses too.

Take two companies, Tesco and Waitrose.

Tesco brands says ‘Every little helps’. What this says to me is that they chip away and chip away at every tiny little cost to try and drive the price down to one that is almost unsustainable by the supplier. I’m not saying I agree with them throwing a horse in with the beef to make a value burger, but I do think it may have de-specced the product to such a degree they just needed to add the protein to get them to the 63% meat content that their recipe demands (which is higher than Birds Eye’s Value burgers 45% meat!), so really, what do we expect?

A horse didn’t just fall into that beef vat by accident. Someone threw it in, knowing they needed to add some cheap meat to make up the weight of their consignment. That’s supplier desperation in action.

Waitrose work on the core brand value of ‘Trust” and for me, this comes trough everywhere. I just don’t believe they would buy their meat on the open market, without knowing where it came from. I trust them. For me, they have almost become curators of good food choice. If they sell it, then we know it’s going to be pretty good – certainly for supermarket food and we can be pretty sure it won’t contain horse.

It’s too easy to take pot shots at the giant that is Tesco, but they deserve it in this case. Their values are wrong and too many of us care about what we eat for them to remain as the force they are now. They need to change their values, change their brand behaviour to be a little more loveable and change the way they treat their suppliers. Or, they’re off……

The trouble with Tesco

tesco_logo

Tesco - a brand to trust? Hmm, Not in my opinion.

Tesco as a business isn’t doing badly. It’s profits are still huge, even if they are slightly down on previous quarters in the UK.

But for me, this is masking a much bigger brand problem and that is because nothing they offer is special any more. They don’t make customers feel valued, they don’t surprise or delight us, they just keep chipping away at prices by chipping away at suppliers who have no choice but to chip away at the quality.

We have always believed that the way a brand should behave is to decide a price and then see how good you can make the product for that target price. To me, Tesco look like they are aiming to produce all of their goods as cheaply as possible and not seeing how good they can make them for the money.

This is a short term profit boost that leads to long term decline.

Look at the section with motoring and cycling products. If you are even slightly into either pastime, you will see that what they are selling is utter crap and not cheap either. This is one tiny category in a huge store, but it’s reflection reaches far and wide in perception. If everything in the store is as badly produced and as nasty as this, why would I trust the brand overall?

Unless they up their game, start focusing on quality again and start treating their customers as intelligent individuals who do have a choice, this will be the first of very many profit warnings to come.

Tesco sandwiches and health

I had a bit of a wake up call yesterday with the discovery that I have (very) high blood pressure.

Now I’m not (that) fat, I think I eat pretty well and almost all of my food is cooked fresh as I love cooking.

But initial feedback is that my salt intake is probably much to high, so I’ve started looking at everything I eat.

Not sure that LoSalt and others like it are much of a solution as a friend of mine pointed out yesterday that it just swaps sodium for potassium, which is different but still bad.

This was highlighted years ago in this BBC report from 2007.

But nothing seems to have been done about it. The lowest salt sandwich in the whole of the Tesco lunchtime offer (including all their ‘healthy options’) delivers you 19% of your total daily recommended intake. The highest is over 43%, which is horrendous. Weirdly, the sandwich fillers they sell are all quite low fat in themselves, which has to point the finger at their bread.

I guess I am going to have to start making my own lunches, as Tesco aren’t changing fast, if at all.

Brands that kill their customers, die in the end themselves too.

Tesco and Robin Hood – Rob from the poor to give to the rich

Tales of Tesco Hood

Tales of Tesco Hood

I have written before about empty shops in cities and what I believe is the solution. Flexible rents for start-ups and some understanding in the payment of business rates. The latest move reported by the BBC that Tesco were to take over the former Tales Of Robin Hood site in Nottingham, proves it’s still not being addressed in any effective way.

As one of those unfortunate enough to be on the receiving end of the presentation from the Bass Museum team who did have plans for the site, this is a real shame, but no real surprise. That proposal was so flawed as to be embarrassing.

So why would Tesco move in and not look for longer to find a decent alternative tenant?

Let’s say that the rent on the site would be £100k per annum and as we know, Tesco own the head lease. After six months empty, they will have to pay a full business rate, which adds another £41.5k to their bill. So, for them to leave it empty, costs them £141.5k per year. Therefore, as long as they lose LESS than that as a Tesco Express store, then it’s worth them opening it.

In effect they are being incentivised by the system to open up all over the place.

Surely it would be better for the long term good of the city to have some retail diversity?

Or maybe a Robin Hood attraction, or even a permanent exhibition.

Let’s set the Sheriff of Nottingham on ‘em.

Thanks to the somewhat out of date Nottingham Tourist Guide for the image.

Christmas shopping – Online shopping

I may not be that normal in many respects, but I do often get onto trends quite early and this year, I have shopped for Christmas differently to any other year before – and I think shopping may never be the same again.

I’ve written lots about the perfect economy, price driven shopping and how branding can help build differentiation. I’ve even written about online/offline price matching but this year it all clicked into place and a few online retailers got all my business.

Some examples.

Fifa 11. RRP £52 HMV high street price £39.99. Game High Street Price £39.99. Amazon price £24.91 delivered. Using the Red Laser App on my phone, I actually bought it on my Amazon account on my phone standing in HMV. I hope Red Laser are taking a commission.

Red-Laser-Logo

Morse the Complete Collection. RRP £199.99 (yeah right!) Morrisons £50. Amazon price £34.97 delivered. Again, bought standing in Morrisons.

And I bought from Boots, Tesco, Dixons and a few others too. All turned up in plenty of time and I saved a small fortune without having to brave the ridiculous queues at the tills in the stores. There must have been 50 people queuing in the unsurprisingly poor performing HMV. They are playing into the hands of online retailers.

Again, I don’t think i’m particularly tight, but I can see no reason at all to pay more for an identical product and the privilige of buying on the high street.

If the high street doesn’t just want to become a gigantic Amazon showroom, it needs to find a way of reflecting the price of the online retailers.

Sports Direct match online to offline, and I’ve shown before that Waterstones and HMV don’t. Which do you think is likely to still be in business by February?

Waterstones v. Waterstones.com – I know the difference

I just went out to buy two copies of a book for my wife and her Mum and have learnt a lot about online/offline pricing in my little jaunt around the city.

Firstly there are only two real places you can buy a new book (other than the discount end of line retailers) and that is at Waterstones or WH Smith – who are a retailer of sorts.

Before I went out, I looked on Amazon for  target price. £7.49. Now that sounds like good value to me. £5.50 off list price but none in stock and my customers want this book NOW!

The Clean and Lean Diet 14 Days to Your Best-ever Body from Amazon.co.uk

The Clean and Lean Diet 14 Days to Your Best-ever Body from Amazon.co.uk

So it was off to WH Smith, the confused retailer that seems to have ‘buy one get one half price’ on almost everything. Isn’t that what Thresher did before they went bust too? Well, they had the book in stock, but only one of them, so the deal wasn’t that effective. They had a price of £8.44 online. If I had managed to buy the two of them in the store each book would have cost £9.75, so not far off a decent price.

The Clean and Lean Diet 14 Days to Your Best-ever Body - from WHSmith.co.uk

The Clean and Lean Diet 14 Days to Your Best-ever Body - from WHSmith.co.uk

And then onto Waterstones. The only decent sized book store in Nottingham. I was greeted by a friendly young man as I entered and asked him where on the four floors I would find this book. He confirmed they had five in stock at the full price of £12.99 on the third floor.

So I asked the kller questions.

Why could I buy the same book from them online for much less?

The Clean and Lean Diet 14 Days to Your Best ever Body from Waterstones.com

The Clean and Lean Diet 14 Days to Your Best ever Body from Waterstones.com

The answer?

Apparently, and I quote “Because they’re on the Internet, they don’t have the overheads we do.”

Oh, that’s it then, they’re not part of the same group or anything simple, or even based on exactly the same central distribution depot.

I wrote a piece a few weeks ago saying that their new logo was a bit silly and pointless, but did give them the get out clause that a new logo can be worthwhile if it marks a change in behaviour.

You judge for yourself whether this traditional retailer is behaving any different now it has an online presence, or if it is still making the same mistakes as Borders and all the other smaller book stores that have folded before them.

If you offer the same price online and offline (like Tesco and Asda and Sainsbury’s and everyone else with any retailing skill does) you may find that people still buy from your stores rather than looking at you as a showroom or a place of last resort.

Why Tesco want a minimum price for beer

Tesco - Every little (piece of government intervention and price fixing) helps

Tesco - Every little (piece of government intervention and price fixing) helps

Maybe I’m being simplistic, but to me it seems pretty obvious why Tesco are campaigning, along with the government, for a minimum price for beer.

They’ve never behaved altruistically before, I hear you cry!

Well, they’re not now either.

It is pure self interest.

If there is minimum retail price for beer in the UK, do you honestly think that will affect their buying price in any way at all?

No me either.

With the huge growth of global beer brands such as AB InBev, who own the likes of Stella Artois (wifebeater), Budweiser (simply vile) and Becks (iced water), it will allow tesco to do even better deals and grow their buy/sell margin to an even greater level.

Yes, the smaller retailers will have some protection as they will still be able to get their £3 for a four pack, but they’ll be paying £2.40 to Tesco’s £1.20 from their supplier and yet again the little man is crushed.

Beer brands are going through a mad level of consolidation and whilst I have written many times before about a brand backlash and choosing guest ales over the mega brands when we visit our local, it seems that more casualties are coming.

With Bass, Boddingtons and Flowers all up for sale by AB InBev, it seems that we will have fewer and fewer big regionals and be left with globals at the top and tiny locals at the bottom.

This has to present the most amazing opportunity for a decent entrepreneur in the middle ground to buy up one of those three amazing beer brands and build them back up again.

I’d be happy to help with the branding! (and tasting if required)

Updated

It would appear that the Bass brand isn’t really up for sale. In this great article by Pete Brown in the Publican, he gets to the root of what is really for sale. What AB InBev are actually selling is the UK only rights to sell the beer as a draft product. No rights to the name, no rights to the International business and no real chance of anyone being interested in that particular offer. What a real shame for beer drinkers. I certainly didn’t know that Bass and the famous red triangle was the first trademark in the UK. Globalisation isn’t really a good thing is it? It just makes it easier for our historical brands to be destroyed internationally, ignoring all the years of heritage they have created.

Why have the Liberal democrats done so well? – A brand perspective

BBC debate - showing Nick Clegg of the Liberal Democrats at the centre of the stage

BBC debate - showing Nick Clegg of the Liberal Democrats at the centre of the stage - effectively getting a supermarket listing for his brand

I’ve been thinking about this a lot over the last few weeks since the first debate and thought it would be good to relate the huge surge of support for the Liberal Democrats to a consumer brand – which they have effectively become when they are ‘advertised’ in such a high profile manner.

I think the answer is simple.

By allowing Nick Clegg to stand on the stage next to the two major brands of Labour and Conservative, they were giving them the equivalent of a supermarket listing for a minor brand.

For a minor brand to get a listing in the likes of Tesco, they are immediately given the assurance that ‘if it has been chosen by Tesco to be sold, then it must be okay’ as the overarching brand is that of Tesco as a distributor and comes with their own big brand reassurance. Similarly, a place on that platform came with the assurance that they must be broadly equal in stature.

Likewise for Nick Clegg to be ‘offered for sale’ alongside the market leaders it comes down to whether the consumers like the packaging and the price and feel like a change from the main brands. He’s a good looking bloke (I haven’t got a man crush or anything) and he speaks well. He also constantly refers to the other two parties as the OLD parties – a really important differentiation for the younger voters/buyers.

I have asserted on many occasions that the future is unbranded, and many of us will always choose the guest beer in a pub rather than being herded into the mainstream brands – This is the same principle. It is a brand backlash against the mainstream brands and may be here to stay.

So the mistake came in agreeing to the debate in the first place. They gave they Lib Dems a listing that their previous size may not have warranted. There was no place for UKIP, the awful BNP or the SNP, despite their late court protestations.

If the Lib Dems do sweep into some form of shared power then I believe it all stems from their amazing move to get themselves onto the debate platform in the first place.

I can’t wait to see the outcome on Thursday night.

Your logo should say who you are and not what you do

One of the biggest changes for any organisation that is considering a new logo, is top accept that the logo doesn’t need to say what you do, and just concentrate on letting it say who you are.

Look in the yellow pages and you will see many, many ‘logos’ where there is a person with a hammer or spanner or pipe wrench next to the name of their company. These don’t say who you are, just what trade you practice. They make it impossible to extend into another area without causing confusion, but they still proliferate in ‘trade’ markets.

The really rather excellent Mr Plumber logo - A role model for any designer

By removing the ‘what you do’ element, you have to work harder to explain this, and so the second option is to introduce the strapline to attempt to explain the services offered, or the ‘what you do’.

There are hundreds of examples out there.

‘Britain’s favourite retailer’ by Tesco

This line allows them to say what they do without having to say underneath the name on the front of the shops.

It is very rare to see a logo out of context anyway. You would normally see a Tesco logo on a store, a pack a vehicle or an advertisement, so the logo is simply an identifier to say that it is ‘one of theirs’. The branding work comes in saying what can be expected by choosing a Tesco product over any other one.

A strapline is quite different to a campaign slogan such as
‘Vorsprung durch technik’ that Audi have used since the 1970’s. This was already on the wall of the factory when their German design agency MetaDesign went for a factory tour. They saw that it summed up what the business was all about and their living the brand ever since has been part of the reason for their growth to become one of the biggest car makers in Europe from their humble roots as the fabulously mad little NSU luxury car brand and their hugely innovative but incredibly unreliable RO80 Wankel engined car of the late 1960’s.

Their chosen phrase actually means ‘Advancement through Technology’ and as such, does not actually explain what the business does. The slogan therefore just adds a little more layering to the brand by way of an advertisement theme.

The big brands such as Tesco become known for ‘what they do’ because of their scale, visibility on the high streets and the (omni)presence delivered by big marketing budgets.

But when Tesco lunch into another country, they invariably work under another brand name or with a local partner. Jack Welch, in another of his Podcasts argues that it is ALWAYS more effective to buy local talent in the target market than it is to try and import it, citing their plastics businesses opening in China as a real life example.

When Tesco went to the US, they started under the brand name of Fresh & Easy, launching a much smaller format store to those they are known for in the UK and starting out from California. They therefore face the same issues as any start up. They may be better financed, but they still have to prove and refine their offer in order for them to begin to roll it out nationally. Even Tesco don’t have deep enough pockets to attempt this with a flawed or unpopular concept.

It is often argued that smaller companies can’t go down the ‘who you are’ route because they don’t have the marketing budgets of the likes of Tesco. We would argue that they could make their smaller budgets both more cost effective now and more valuable in the future, by concentrating on the ‘who you are’ now.

Focussing on a one or very few key message will always make marketing more effective and make what you do spend work in a more focussed way.

Without the ‘who you are’ you can only sell ‘what you do’. This limits the growth and expansion possibilities of your brand.

Potential customers who like what they see in the ‘who’, will go the extra mile and find out more about you, what you do and what you stand for. This creates devoted customers who both love and understand your brand.

The Sheriff of Nottingham in USA – Part Seventeen – Off duty in New York

Our last day in New York and its our first free time since we arrived eight days ago and we’re flying through the night home tonight, giving back our five hour time difference in one six hour flying stroke. It’s a typical British Autumnal morning and I feel very much the Englishman in New York. Its dauntingly big and there’s too much to learn from in too short a time.

I wander up to the Wholefoods Market on the corner to buy my breakfast as I am up early and debating whether to take off on my own for the day or stick with the group. Wholefoods are the people that Tesco said they were taking on with their Fresh & Easy concept that they thought would capture the hearts and wallets of New Yorkers, but has so far, pretty much underwhelmed them.

Wholefoods Market - A beautiful store for New Yorkers

Wholefoods Market - A beautiful store for New Yorkers

Well, I have to report that having not seen the Kensington branch of Wholefoods, the one I saw on Second Avenue in New York was stunning. It looked welcoming, yet urban, the food looked beautiful and the staff members I spoke to were educated and interested, with one of the team on the till having spent time in the London Kensington store, helping with staff training. Can you imagine Tesco sending there checkout staff from Victoria centre being sent across to New York to show the Fresh & Easy staff how to be surly and cause unnecessary queues to wind people up in a hurry. Maybe they could just show them how they can tell customers that they can only use this queue if they’re buying Lottery, despite no-one else in the queue and people stacking the full length of the store at the self service tills?

Okay, that’s me being cynical and comparing the natural service culture we saw everywhere in the US. In the UK, we assume that it is insincere and below us to be polite, helpful and interested. We seem far more comfortable in being snotty or trying to catch our customers out than helping them enjoy their visit. This is a training issue we discussed an awful lot whilst we were away and whilst we don’t want ‘have a nice day’ all over the place, we do want to be able to deliver service staff who do just that – serve. It sounds simple, and it is in the US, but with a few notable exceptions, we make it look very difficult in the UK.

So after my early morning breakfast of orange juice and a parmesan breadstick (pretty healthy huh?), sitting in the park, next to the hotel, I watched the New York morning unfold before me.

There’s lots of honking, despite the signs threatening a $350 fine for anyone who does it and the driving is aggressive, the pace is hectic. It almost seems the opposite of how people behave when they get to work, or maybe those in cars are a different breed who never work in service positions? It’s a magical place to sit and absorb the atmosphere. I’m surrounded by New York Sparrows, (or their close relative, ‘cos I ain’t no ornothologist) and I share my bread with them and seem popular amongst them.

Back at the hotel, the others are gathering for the day and I decide to stick with the Sheriff and Adela as they are planning to go to Liberty Island. I know this is probably the cliché of all clichés, but I’ve never been and I wanted to take in another audio tour and see how the trip across compares to my favourite river trip – The Ferry across the Mersey.

The first stop is the Metro station at Lafayette and Broadway which we follow down to Bowling Green. This leads us onto Battery Park and our first view of the Statue of Liberty across the water. As we walk across the park, there is a huge damaged sphere in front of us.

The Sphere is another 9/11 reminder and this damaged relic is from the Plaza of the Word Trade Cetre

The Sphere is another 9/11 reminder and this damaged relic is from the Plaza of the Word Trade Cetre

At first the thought was that it had been vandalised, but when you read the sign in front of it, you begin to understand.

I like the wording of this plaque in front of the damaged Sphere in Battery Park

I like the wording of this plaque in front of the damaged Sphere in Battery Park

Again, the feelings of anger rise up at how this could have happened, but I love the Sphere’s symbolism. Its an even more powerful reminder than the slightly cold but informative hoardings at Ground Zero and its simplicity paints a far starker image in your mind than a display of what’s coming next could portray.

The boat trip with a full audio tour of Liberty Island and Ellis Island is $20 (about £12) which seems like good value. You then travel through a full airport security style search and scan, with everything X rayed and shoes, phone, cameras, belts ad even notebooks in the trays. Its something that is hard to begrudge as the symbolism of peace and liberty that the statue stands for is one that must be under constant terrorist threat.

The short boat ride across only stood out for the fact that it was a great place to photograph armpits and other people’s hands. It was like a class full of the worlds most enthusiastic school children with every hand up for most of the trip.

The Statue of Liberty and lots of hands

The silly thing about these shots, was that five minutes later when you landed, it was easy to get a much better image without the hands in the way and without the crowds around you.

We had a cup of coffee to see off the heavy rain and marvelled again at what exceptionally low prices they charge in these nationally controlled attractions. $1.50 (£0.89) for an almost nuclear strength 3/4 pint of coffee wouldn’t be seen at anything but the lowest of cafes in the UK, let alone with a captive audience on a cold wet island full of tourists.

The audio tour used the exact same digital system as the one at Alcatraz, but was far more dull. The single voice talking you through the history was informative at best, but turgid, if I’m honest. By the time we’d walked half way around the island, it was off and we were reading the signage, which had all the information anyway. But the view close up is perfect.

The Statue of Liberty - in all its green glory

The Statue of Liberty - in all its green glory

We had opted not to take the trip up the monument, which was good as the queue was huge and there was yet another scanning scrutiny. One of the previous blog commenters, Christine from Boston had been helpful in her recommendations and warned us that this was simply not worth the money or the queue, so we gladly took her advice.

So some statto facts about the statue itself. Its 305ft tall from the ground to the top of the flame and was completed in 1886 as a gift from the People of France. It was the tallest structure in the Eastern US when it was built as most of Lower Manhattan was only five stories until well into the 1920’s. She has a 35ft wide waist (like many other people in the US) and a 42ft right arm. Even her fingernail is the size of my forearm and she sees 3 million visitors per year to her very own island.

The ferry took us back via Ellis Island for a further (dull) audio tour and then back across to Battery Park.

Time was pressing on and we were leaving in a few hours, so we opted to walk back to the hotel along Broadway to take in some more of the atmosphere. A good three miles or so along a dead straight road, took in Wall Street. The signage is as we have all seen it, but the state of the roads and paths were awful. The police presence was massive and the crowds even more massive.

The very scruffy pedestrian entrance to Wall Street with Seaport in the far distance

The very scruffy pedestrian entrance to Wall Street with Seaport in the far distance

After collecting a late lunch in an immaculately clean and friendly salad bar, where you can choose what you want and pay by weight, we sat in one of the City parks and watched a group playing chess with a form of winner stays on. Quite a crowd gathered and you got the feeling that this was a regular haunt for city types and students alike. Black squirrels ran around us picking up scraps and the feeling was far more relaxed than any other place in New York I had seen.

The final walk took in the Bell of Hope and St Pauls Chapel, back at Ground Zero. The Bell was a gift from the Mayor of London to the people of New York and was created by the Whitechapel Foundry, who also cast Big Ben and the bell on Liberty Island. It is rung each 9/11 anniversary and was also rung after the Madrid bombings in 2004 and on July 7th 2005 after the Subway and bus bombings. It’s a very sombre reminder.

The Bell of Hope - A gift from the Uk, in memory of 9/11

The Bell of Hope - A gift from the Uk, in memory of 9/11

The chapel itself is where the firemen gathered and rested during the recovery mission after 9/11 itself. To most, it is the spiritual home of those who lost their lives.

The table of remembrance inside st Pauls Chapel

The table of remembrance inside st Pauls Chapel

It seems like a suitable place to sign off, on what was an incredible trip, full of learnings, stark reminders and world class attractions.

I honestly never thought that the US, would be my thing. I thought it would be too brash. Its big, yes, but it’s so full of genuine people who love our history, curtsey to our Sheriff and respect our country, its impossible to not end up feeling like you’re part of it.

In the words of King Arnie of California. I’ll be back.

Follow

Get every new post delivered to your Inbox.

Join 27 other followers

%d bloggers like this: