Are we all heading for a farmhouse speakeasy?

January 22nd, 2010

Are we all heading for a farmhouse speakeasy?

As shoppers we could shortly face rapid price inflation if governments set on a path of instituting minimum pricing, or increased taxation, for products deemed harmful to our health.  While taxation for smoking is widely accepted, I can envisage a huge backlash if shoppers believe they are being controlled by the nanny state.

One of Britain’s leading heart surgeons, Shyam Kolvekar, has suggested that in order to save lives butter should be banned.  Could we see prohibition for butter, with farm shops turned into undercover speakeasys for the dairy inclined?   Again there is huge debate in the media about whether the consumer has the capacity to make choices for themselves.  Given the NHS’ stretched resources in the UK, some argue that we cannot afford to let public health continue to decline and we should socially engineer positive changes through taxation.

MPs are increasingly looking at whether they should institute minimum pricing for alcohol.  In Scotland the SNP administration is proposing the introduction of unit alcohol pricing, with a minimum price set by statute.   However, a question remains whether minimum pricing actually change shoppers’ behaviour.

At the very bottom of the market, consumers buying Tesco Value Lager or Skol are likely to be price sensitive and may reduce consumption.  At the higher end minimum pricing may see consumers go one of two ways.  If the price differentials between brands like Stella Artois and Carlserg are maintained, with an underlying price increase, consumers may switch to the cheaper brand.

Alternatively, if the lower priced brands have to charge more and the more expensive brand keeps their price static, consumers may migrate to the more expensive brand.  Almost invariably the more expensive brand has higher alcohol content, so the minimum pricing strategy could actually lead a significant proportion of drinkers to increase the volume of alcohol they consume.

With public coffers running perilously low, the administration may see the taxation of ‘harmful to health’ consumables as an attractive mechanism to increase the tax yield.  If they can overcome the inevitable public backlash by highlighting the benefits to the nation’s health we could see shoppers paying ever greater prices for so called ‘bad’ foods.  The question we as consumers need to put to the lawmakers is this, ‘how do you decide which foods to tax?’  If you tax butter, why not chocolate, cheese and cream – where does it end?  My worry is that shoppers may soon be propping up the NHS by paying additional taxes, which will limit choice and see the state increasingly looking to manipulate our purchasing decisions.

Do you believe the government should use taxation and minimum pricing to change shoppers’ behaviour?

T.
Fatcheese.co.uk

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I’m craving a Dr Pepper and want an Aston Martin all because I watched TV last night!

January 18th, 2010

Product placement has been a hot topic recently, with a number of religious and activist groups in the UK opposing the liberalisation of regulations on paid for product placement. Product placement sees goods and services placed into television shows and movies with the express intention of influencing the purchasing behaviour of the viewer. Recent James Bond movies exemplify this trend, as they are littered with product placement, from cars to mobile phones and watches.

Commercial broadcasters in the UK struggling with declining advertising monies see product placement as an ideal new source of revenue. Experts believe it could help these broadcasters raise £100m a year in additional revenues. Would people prefer new innovative programming, or see British broadcasters at a competitive disadvantage compared to their US counterparts? A movie like Transformers costs millions and can only be funded through the likes of product placement from the carmaker GM.

However, watching a movie or TV show can be frustrating when the whole plot seemingly revolves around promoting a product. As a viewer I feel short changed – it not only devalues my perception of the product being promoted, but also the show itself. However, on the flip side product placement can dramatically improve the realism of a television show, I find it endlessly frustrating when watching a show such as Eastenders to see every character ask simply for a ‘pint’. I have never heard anyone go into a bar and simply ask for a pint, they ask for a Stella or John Smiths, it destroys the escapism and realism of the show.

Watching 90210 on E4 I found myself craving a Dr Pepper – probably because it seemed to be featured at least three times in every episode! Cynics might argue that product placement even on the BBC has been taking place under the radar for years. Absolutely Fabulous infamously heavily featured Oddbins, with Patsy Stone (Joanna Lumley) living in the storeroom of an Oddbins off licence in London.

A rigid attitude to product placement assumes viewers need protection and don’t know when they are being ’sold’ to – when in reality we know viewers are savvy. If viewers weren’t savvy television advertising would not be in the doldrums. Advertising to children through product placement will always be a contentious issue, but that it is why regulations in this area will always be rigidly enforced.

If product placement is going to help fund higher quality shows and doesn’t interfere with the plot of the programme I’m all in favour. Anything that helps programme makers avoid a constant diet of reality shows and repeats! One strategy to ensure people do not feel that there is something subversive, or subliminal, with product placement is to ensure all the items that have been featured through paid for placement are referenced in programme credits. If programme makers plug their products too heavily, viewers will just vote with their remotes and switch off.

Do you believe product placement is a legitimate medium for advertisers to promote goods and services?

Maya
Fatcheese.co.uk

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Are you a ‘recce’ shopper?

January 8th, 2010

I call it recce shopping because that’s exactly what it is – we brave the high-street on a military style reconnaissance to gather information about desired merchandise. I will explain…

The internet was always going to change the way we shopped, but unless your name is Jeff Bezos you probably didn’t realise quite how much. The high-street shop has become a place to gain inspiration and window-shop but not necessarily spend. Without a mouse in our hand, we feel exposed and at risk of paying far more for goods than if we bought online. Fear of discovering how cheap you could have got the same item for online helps overcome the impulse that says “I have to have this now”. We return the item to the shelf and make a note for later – I often send myself a quick text or email to myself so I don’t forget.

Once settled in the comfort of our own home we begin our comparison, feeling immense pleasure with every £ we save. We quickly recognise those annoying sites that don’t give postage and packaging costs and we get faster and faster at filling in our address. Soon we have found our store, checked for voucher codes and qualified for cashback.

We will always need high-street shops for browsing, sampling and the emergency presents, but with internet enabled phones we can compare as we go, reducing the need to ‘phone a friend’ for a price-check. This is the main issue for me – the high-street just isn’t transparent enough, and there is just too much variation between prices on- and off-line.

The online shopping environment and the high-street are often seen viewed as distinctly different, but in fact the experiences are surprising similar. Amazon is the department store, with a salesman suggesting other things you ‘might like’. There are the regular specialist and general stores that depend on reputation, first impressions and visibility (or location). The high-street wouldn’t be complete without the ‘golf sale this way’ sign that is twitter, where retailers offer virtual flyers with special promotions. The only anomaly is ebay, which is far too sophisticated to be compared to a street market.

We shouldn’t view the shopping experience as a single-channel exercise; the high-street versus online. It’s a multi-channel world where we have the theatre of the high-street, the specialisation and intelligence of the internet and the community of social networking. I do sometimes worry that the high-street is fading, but so long as it realises that shopping habits are evolving all the time then there is no reason why the two environments can’t co-exist – we will always have a need for the atmospheric high-street.
T.
Fatcheese.co.uk

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The secret rules of buying a Christmas present

December 16th, 2009

Talking with friends this week I was amused to find the rules that couples put around buying Christmas presents. It appears it is now de rigeur to:

- Agree a set price limit

Or

- Agree precisely what you will be purchasing for your partner

Where has the magic and romance of Christmas gone? Are couples scared of being embarrassed by spending more or less than their partner? Since when did Christmas present buying become a business transaction?

However, there is one upside to agreeing what present your partner will be giving you, or at least ensuring they seek out useful shopping guidance. A colleague proudly announced his wife would be receiving a back pack and hiking socks one Christmas because he wanted to inspire her to venture out into the country. Somehow they are still married, but I get the impression he was advised such a practical present wouldn’t go down well in future, as for her birthday he tapped me up for handbag advice. I sent him straight to Lulu Guinness and judging by the smile on his wife’s face in the party photos she either loved the bag or else was in exceptionally high spirits from all the champagne.

A friend brings me news that he once paid his girlfriend’s utility bill as a Christmas present. This year the romantic couple plan to exchange money in lieu of a purchased gift. I hadn’t the heart or the chutzpah to ask whether they would exchange equal amounts and whether payments would be made by cash or cheque.

While some families will be struggling this year and a budget in some cases is very sensible, it would be a crying shame if it became the norm for everyone to know what they were going to be given before the big day. The look on someone’s face when they unwrap a Christmas gift is priceless. This year why not throw the rules out of the window this Christmas and find the perfect present for a loved one, you might be surprised by how much more you enjoy the shopping and gift opening experience!

I love the idea of being surprised at Christmas by someone that has taken the time to find the perfect present, to know they listened to the subtly laid hints all December about the fantastic KG boots in Selfridges or Marc Jacobs’ bag (I wish!). Amazon’s “recommended for you” service has proved brilliant, it noted all the presents I bought for my partner last year and has suggested a range of new books, DVDS and CDs that he might like this year.  I love my online ‘virtual’ personal shoppers sending through ideas of what to buy the significant other.

Do you believe it is sensible to agree a Christmas present budget with your partner?

Maya
Fatcheese.co.uk

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Would you buy Beckhams’ briefs?

December 6th, 2009

No we are not linking to an auction for a pair of Mr or Mrs Beckham’s own briefs, but referring to the Armani range that the celebrity couple have been advertising so widely.  To what extent does celebrity endorsement influence our purchasing decisions?  Would you buy a product because David or Victoria Beckham had been paid huge sums to promote it?

It has been argued by retail researchers that we make buying decisions based on perceived want, emotional and psychological need.  Marketeers believe consumers derive a halo effect from celebrity endorsements – that in buying a product they are in some way more like, or closer to their idol.  They are hoping that the perceived value of the product is increased because the consumer believes it is used by that celebrity.

However, celebrity endorsements are now ubiquitous, even the big supermarket chains have got in on the act with M&S and Morrisons littering their Christmas adverts with so-called celebrities from Stephen Fry and Twiggy to James ‘The Hamster’ Hammond. There is also the question of what constitutes a celebrity endorsement, does a Susanne Shaw brand perfume or Nolan sister popping up in a Morrisons advert really make anyone buy a product?

As with every trend part of the problem is that people jump on the band wagon.  As Euromoniter pointed out, the celebrity fragrance market has become over-saturated by the large number of products that have inundated the market.

Some celebrities have a real fit with the company they are promoting and project an image that consumers can buy into.  Michael Jordan’s link with Nike is one of the most successful celebrity link ups of all time.  Consumers believed that Jordan ‘just did it’ with Nike and his iconic image still appears of Nike clothes long after his retirement from the game.

One firm has taken celebrity endorsement a stage further, My DNA Fragrance claims to make the scents out of DNA taken from the stars’ hair. Fragrances have already been concocted using the DNA of stars including Michael Jackson, Elvis Presley, Marilyn Monroe and Napoleon Bonaparte.  Whether they can make a perfume from Cheryl Cole’s hair extensions has yet to be determined!

While brand managers continue to believe that celebrities sell the endorsement trend will show little sign of abating, so don’t be too surprised to see a Jedward Karaoke machine coming to a store near you shortly!

Have you ever bought a product because it was endorsed by a celebrity?

T.
Fatcheese.co.uk

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Victoria’s soon to be not so secret

November 27th, 2009

If you live in the UK the chances are you will have heard of Victoria Secret, Pottery Barn, Bath & Body Works and Lucky Brand Jeans. Yet, despite this name recognition the casual shopper hasn’t been able to buy products from these companies on a British high street. That is all set to change in the case of Victoria Secret, as the lingerie and beauty company famed for its use of supermodels is rumoured to be scouting for a site in central London for a flagship store.

The question is, will it be any good and how will the products be priced. Abercrombie & Fitch travelled to our shores to open a store inhabited by semi naked models and prices that made many of us recoil in horror! It would be cheaper to fly to New York for the weekend and stock up than shop at their London outlet.

American TV staples such as Friends are stocked full of product placement, so the casual viewer soon becomes accustomed to hearing brand names that aren’t even available in the UK. The infamous Pottery Barn episode revolved completely around Rachel convincing Phoebe that the ‘fabulous’ furniture she was buying was from flea markets, rather than the afore mentioned store. From Taco Bell to Macys there are loads of stores and restaurants that we have seen on holidays to the states and are prominently featured in our favourite movies, but that have yet to grace the UK high street.

It will be interesting to see if Victoria Secret loses any of its glamour for UK shoppers once it is easily accessible. It’s always nice to have things in the wardrobe that you couldn’t just buy from the local high street. Savvy shoppers have often raided the websites of their favourite American brands with guys importing Monarchy, Ruehl and Silver Star Casting Company and women stocking up on the likes of Bath & Body Works and Express.

While I can’t wait to see a Victoria Secret store in the West End, I can’t help but feel a little disappointed that other women may buy my wardrobe. I love the feeling that I have discovered, or at least travelled abroad to find, clothes that none of my friends own. I have to say there are other disadvantages for brands coming over to the UK, I can’t count the times I have seen an over sized muffin topper squeezed in an A&F T-shirt!

Maya
Fatcheese.co.uk

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