THE 5 ‘SO WHATS’ WHICH IMPACTED CONSUMERS AND BRANDS THIS WEEK

1. New Trust Takes More
Richard Branson’s Virgin Money recently acquired Northern Rock in the UK. Upon the news of the takeover Branson promised to challenge the big five by offering easy-to-understand financial products and quality customer service all through the filter of the Virgin brand.
So what?

Virgin has a history of entering a new area of business & instantly applying their own ethos to the product & service. Is this approach needed in Ireland where more and more people are moving their money to Credit Unions’. Trust is integral in this category & consumers are moving their money where they feel it is safest. Banking needs to change its format & appeal to regain the trust it has lost but will simply removing the tie & adding some colour wash away our opinions of the sector?

2. Recession creates two-tier food brands
Our current economic situation has resulted in the development of a two-tier food system. With commodity cost volatility at one end & lower consumer demand at the other this two-tier system results in major manufacturers getting bigger while small & medium producers are left with little room for expansion.

So what?

If your brand falls in between the two models mentioned then the question remains which way will you fall? Domino’s Pizza witnessed the development of a two-tier take away market long before anyone else and released the gourmet range of pizza’s aimed at those who found themselves getting take-away pizza rather than going out for a meal weekly. By creating two differentiated products (one for each tier) Domino’s was offering something for those in the lower tier to aspire to & offering a more familiar taste to those in the top tier. This method of expansion has been heralded a success & watch to see more brands follow suit.

3. Weekend Warrior Monitor
January signals the start of the health kick as consumers look to start the New Year as they mean to go on.  In 2011 we saw a resurgence in those exercising out of the gym & taking to the fresh air to get fit. A new app called VitalClip promises to help users to get the best of their regime by measuring their vital signs & that’ll give them a snapshot of their general health & well-being.

So what?

Over 120,000 people took part in marathons in Ireland last year alone, showcasing the growing number of “weekend warriors” in our midst.  Cycling has seen a surge in popularity also as Cycling Ireland’s participation numbers have jumped from 5,000 in 2008 to 10,000 in 2011. Additionally, there were no fewer than 538 official Cycling Ireland events in 2011 – up 50% from 2009. Personal monitoring apps will become instrumental for this cohort as they seek to continue on their health journey & could offer the stimulus for many in deciding what sport they partake in. Health monitoring has moved from being a gym bunny on a regime with a trainer to being out there controlling your own fitness routine.

4. Feedium model ushers in BiteSize journalism
The album review as we know it is nearing the end. Spin Magazine have taken it upon themselves to review over 1,500 albums using 140 characters or less on their twitter account. Acknowledging the decreasing value given to reviews, as trial takes precedence without any error – Youtube and illegal downloading offer free alternatives & allow consumers to make their mind up themselves – the magazine have made reviews bitesize.

So what?

Trialling has become a recessionary behaviour ingrained in consumers that has far wider ramifications for just brands in food retailing. This has manifested itself in the entertainment industry with consumers watching & listening to content online before choosing to purchase it legally (if at all). Consumers can try clothes on in-store, listen to a song online, sample food at a supermarket but does your brand lend itself to trialling?

5. Game changing idea of the week: SmartTags
Sony has launched a new product for its Xperia phones that enables users to change settings using pre-programmed near-field communication (NFC) tags. The SmartTags can be programmed to switch the user’s phone between different profiles for different occasions. By swiping the handset over the tags, the phone automatically registers the location and alters settings, including ring tone and Bluetooth connectivity, accordingly.  For instance, when in the car it’ll turn on the SatNav, once at home your phone will switch to Wi-Fi & when in bed your phone will turn to silent & engage the alarm.

So what?
Consumers no longer want products & services that simply nod to personalisation we want them to be intuitive, empathic & proactive in understanding our needs & helping us discovering solutions to enable them.  Products need to work for ‘me’, how I want them too and when I want them too. The SmartTags does just that – the user is able to compartmentalise their phone’s activity – so the device has separate personalities in each situation.