UK Retail Market News

11th September

Recent data on the UK retail market has not been consistent and it has been difficult to read any improvement in consumer sentiment into the monthly reports. The BRC commentary on the results regularly refers to the strong price competition that currently exists on the high street.

This view is backed up by the recent activities of John Lewis. The retailer has launched a Price Match campaign to back up its "never knowingly undersold" positioning statement. The promotion is focused on cookware, women's clothing and beauty products, and reports suggest that it has been created as a response to activity by competitors, including the House Of Fraser.

The retailer is also launching a value range of products on the 14th of September, presumably to mirror the success of sister company Waitrose, with its Essentials products.

A further ATL campaign will follow in October to reinforce the communication of the "never knowingly undersold" promise among target consumers.

All this paints a picture of a business that had done well earlier this year, but know feels that it has to reaffirm it's value proposition in the face of discounting by others. It's tough out there at the moment!

Web Video Marketing Success

10th September

Markmedia marketing consultants have been working with a large client to develop the commercial results of their main customer website. We recently conducted a strategic review of the site and in the process, we conducted a short survey of visitors to the site.

The customer accepted the conclusions of the review and agreed to an improvement programme, which included the introduction of a video character to the site. This character welcomed visitors to the site and directed them to the main commercial features which were on offer. The video was scripted, recorded and hosted by Markmedia.

Following a trial period, the results of an A/B split test have been reviewed and the improvement in all the main site metrics has been remarkable. As a result of the increased performance of the site, the client has ordered a further 6 videos to be produced without delay. If the web is important to your business and you would like to discuss how web video could work for you, the contact us on info@markmedia.org.uk for more details of how we can help

Bankers Bonuses To Be Capped

8th September 2009

Reports from the G20 summit of Finance ministers and central bankers suggest that there is strong support for efforts to limit the bonuses paid to bank executives in the future. At the meeting in London, chaired by chancellor Alistair Darling, the Financial Stability Board was asked to come up with proposals in a relatively short period, which would limit bonus payments at an institutional level.

The measures that are being considered include spreading payments over a number of years, requiring reporting of payments, and a system of clawback provisions in employment contracts. No decision has yet been made on the proposal to cap individual bonus payments, as demanded by France. While we must await the proposals from the FSB on what can be done in practical terms, this move signals a determination by the G20 to eradicate some of the practices that contributed to the current financial crisis. Such a global effort to align bankers remuneration with long-term value creation and financial stability is a very welcome step. While many will think that it may not go far enough, it certainly is a step in the right direction. Coupled with steps to require banks to hold more tier one capital, it will limit the ability of banks, and the motivation for bankers, to take such significant risks in the future as we have recently seen.