Misunderstanding cigarette branding…

The UK Health Secretary, Andrew Lansley has suggested cigarettes should be sold in plain packaging, as ‘the evidence is clear that packaging helps to recruit smokers’.

Sadly for those who want to prevent smoking, he appears to be talking cobblers – as suggested by the fact the previous Government ditched the same plan two years ago due to a lack of evidence to that effect.

What’s happened is that there’s a misunderstanding of the role of branding in cigarette smokers.

  • People encourage other people to start smoking.
  • Branding and People influence which particular product someone smokes.

Removing branding won’t make any difference to the amount of people trying smoking. It might make a difference in the number of cigarette companies, but the spread of cigarette smoking is largely spread by encountering other people that smoke and being influenced by them in some way. There’s a handy chapter in The Tipping Point on the triggers for smoking, quoting examples of being influenced by people who were seen as cool, and also smoked. The basic hypothesis is that some people who smoke happen to be cool, and therefore smoking is perceived as cool (Rather than smoking making someone cool – the reality is that it makes people smell of tobacco, wheeze when they’re running, and end up dying earlier more often than if they hadn’t smoked – but as a smoker for over 10 years, I already know this).

Cigarette by SuperFantastic on Flickr (CC Licence)

So why do tobacco companies spend so much on marketing, and finding ways to place their brands in your eye, despite cigarette advertising bans?

The first cigarette I ever tried was a Silk Cut Ultra Light – and yet for 10 years I’ve smoked Marlboro. I’m not sure it’s a coincidence that Ayrton Senna drove a Marlboro McLaren, Wayne Rainey rode a Marlboro Yamaha, and I actually suffered through the feature film ‘Harley-Davidson and the Marlboro Man‘. Given the choice, I’ll pay a slight premium for the familiar taste and amount of nicotine, plus the branding and image etc. But if that brand vanished tomorrow, I’d find another one in the time it took to run out of cigarettes. The fact is that in the past I’ve bought John Player Specials (JPS Lotus, JPS Norton), and Rothmans (Rothman Honda in the Wayne Gardner era) as fall-backs which have no relation in taste or nicotine levels.

Wayne Rainey driving out of turn 3 at the 1990...

Image via Wikipedia

I’d reveal a more effective way to tackle smoking, but unfortunately there’s a limit to how long I can write about the topic without nipping outside for a cigarette…

Do UK businesses really value Twitter?

Techcrunch recently picked up on a poll by Accredited Supplier of 1200 UK businesses who are currently using Twitter, and echoed the findings that ‘UK Business bullish in Twitter’.

Besides the caveat that the UK businesses that are so bullish are the ones that are actually already using it, there’s a little bit of interesting info in it.

Apparently 62% of UK businesses are using Twitter purely as a branding exercise, with 33% combining branding and sales, and 15% using it purely for sales (They might want to take a look at Dell making millions on Twitter for starters).

TwitterBrandingChart

But then it goes on to reveal that just 14% of the businesses are tweeting daily, and 21% weekly. Which leaves 65% posting a monthly message or less – should that even count as a business using Twitter?

Twitter Frequency Chart

So there’s no surprise that 84% don’t think they’ve achieved a return on investment so far – but strangely more businesses would be willing to pay for ‘additional business functionality’ at 22%, than have actually claimed a return on investment (16%).

businessfunctionalityontwitter

So maybe a better headline and summary would be that UK businesses are still mightily confused when it comes to Twitter. Some of them want more functionality despite not seeing any returns, and many of them claim they’re using it when they might log in less than 12 times a year.

They haven’t so much missed the point as built a dual carriageway bypass around it.

If you’re starting to use Twitter on behalf of your business, you need to have a quick think about what it is you’re looking to achieve and how it benefits your business – getting messages out there is somewhat useful in itself, but generally it’s expected that you might look at the rate of acquisition from a source, and the investment of resource it’s taken, and then weigh that against other sources of visitors/buyers/purchases.

Then you can not only determine the true level of ROI, but also potentially justify actually engaging on a regular basis and utilising Twitter as both a customer acquisition channel – but also as a customer retention channel. While new customers are great, it’s more cost effective to retain a current customer by increasing loyalty – and although you might need to interact and ask questions on at least a weekly basis, the amount of loyalty and customer service you can action can be measured as a definite return.

I suspect you could perform the same poll with most of the common tools – email, Facebook, Myspace etc, and you’d probably get similar results, because the same people have signed up without a plan after seeing the buzz, dabbled a little, and have no idea what they’re doing next.

Which means that there are big opportunities if you’re reading blogs like this, using Twitter on a regular basis and developing or following a clear plan with a decent amount of ROI.

Even Christmas drinks show something about branding

Firstly, Merry Christmas to everyone!

Secondly, my love of marketing means that I couldn’t help but comment on a micro-brewery I discovered when I stocked up on alcohol for Christmas (in moderation, obviously!).

I’m still coming to terms with getting older – and discovering a taste for ‘real beer’ rather than massmarket lager, so I always like to try a couple of new beers on ever shopping trip.

Which is how I spotted Punk IPA from Brewdog.

Punk IPA from Brewdog - interesting beer brand and microbrewery

Punk IPA from Brewdog - interesting beer brand and microbrewery

It’s definitely an example of a business, brand and product with the marketing built in!

From their site:

‘Beer was never meant to be bland, tasteless and apathetic.
At BrewDog we are setting the record straight.
We are committed to making the highest quality beers with the finest fresh natural ingredients.
Our beers are in no way commercial or mainstream.
We do not merely aspire to the proclaimed heady heights of conformity through neutrality and blandness.
We are unique and individual.’

A beacon of non-conformity in a increasingly monotone corporate desert.
We are proud to be an intrepid David in a desperate ocean of insipid Goliaths.
We are proud to be an alternative.’

Interestingly, they’ve just been successful in a battle with the industry-backed Portman Group over the language on some of the labels on their beer – for instance describing Punk IPA as an aggresive beer, which the group original claimed would ‘encourage anti-social behaviour’.

You can read more about the battle in a great post on the Brewdog blog. Meanwhile, I’m hopeful about trying some of their other produce, particularly the Hop Rocker, The Physics, and the Hardcore IPA!

Has Microsoft made a major marketing mistake?

I downloaded the new Xbox Live Experience and Dashboard for my Xbox 360 last night, and while the functionality is taking a little bit of time to adjust to, I’ve already decided I don’t like a major part of the strategy. And more importantly, it may be a big mistake for Microsoft.
Badgergravling on new Xbox Live

Everyone in the world knows the success that Nintendo has had with the Wii – which ignored the graphical arms race to focus on party games and family friendliness, plus little WiiMii avatars etc.

But I didn’t buy an Xbox 360 for those reasons. I bought it because I loved the Xbox Live functionality, enjoyed fairly mature games, and saw the potential for digital music and film distribution.

I liked the fact the Xbox was seen as slightly more hardcore than the family Wii or the trendy PS3. I liked the fact it was more of an unusual choice, and that in my opinion it looked quite stylish. I like the fact the dashboard system was quite simple and functional.

But with the new dashboard update, Microsoft has essentially forced me to turn my Xbox 360 into a less fun Wii.

And suddently the Xbox looks more like a copycat than a leader. That’s the marketing mistake.

The two incarnations of the Xbox did something different to the rest of the market by concentrating on online gameplay, and becoming the first console to make good use of broadband. That was the Purple Cow. It’s what built a following for both Xbox and Halo.

It’s what made me tell friends and colleagues why they should get an Xbox and meet up online. Why I talked about how Microsoft were being brave enough to blaze the trail for online gaming. And why people talked about Sony killing their brand. There was talk about convergence, and owning the living room. And as someone who grew up with videogames and has now reached middleage, it was a sign that the average adult could engage with gaming on their own contemporary level, rather than as a childish indulgence.

All that’s now gone.

Not because now I’m forced to represent myself as a cute little fella in a suit and comedy hat.

But because I’m forced to admit MS has copied the success of Nintendo in the cute market, and forced consumers who paid for a different brand and image to copy as well. It’s no longer a hardcore choice, or a Purple Cow. When two competitors start chasing the same ideas, and Nintendo already has the lead and a price advantage, it’s a battle the Microsoft brand can’t win.

Have you upgraded to the new Xbox Live experience, and do you agree or disagree? More importantly, how do you feel about the avatars, and the fact it brands Microsoft as copycats, not tech innovators – and could a brand with the legacy of Microsoft ever compete on that level against Nintendo?

Note: edited a reference to prices, as I incorrectly priced the 360 as more expensive than the Wii.