1 / 34

After the recession. How are European companies fighting back?

Learn how European companies are adapting to the weak economy and using marketing strategies to bounce back. Practical insights and examples provided.

pcoleman
Download Presentation

After the recession. How are European companies fighting back?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. After the recession. How are European companies fighting back? Andrew Harvey Moscow 22 October 2014

  2. First, some warnings • Content is practical • Basis is experience, not academic • And based on the fact that I am still learning • Some background and then some examples • Happy to take questions

  3. A little about me • Early career in travel – both business and consumer • First Commercial Director for Virgin Trains • 15+ years in professional services sector • Firms to €400million t/o and 3000 people • Consultant to range of businesses, leading marketing and change

  4. My other roles • Board member and Chairman, Chartered Institute of Marketing (2007 to 2014) • Board member and Chairman, European Marketing Confederation (2008 to date)

  5. European Marketing Confederation • Marketing associations across Europe • Based in Brussels • Sets standards for profession • Shares good practice between members • Content provider for member associations • EMCQ - common qualifications framework

  6. What’s the context? What’s happening in Europe? • Growth still very weak • Inflation fell to 0.4% in July (ECB target 2%) • 5 EU countries in negative growth • Some bright spots – Ireland, Latvia, Lithuania • And outside the Eurozone – Hungary, Poland, Great Britain • For marketers in all businesses – pressure to perform

  7. Marketing orientation – even more important than before • Establishing the market need • Designing a response to that need • Distributing/communicating a product or service • Delivering customer experience • Not the preserve of private companies. Equally applicable to government sector, charities etc

  8. What can happen if you get it wrong? • Decline is inevitable • That speeds up in changing markets • And even more so in the digital age

  9. How to get it wrong – and right again • Founded 1884 in Leeds, northern England • Grew for over 100 years • Reputation for value and innovation and as a great employer • 1953 – ‘The customer is always and completely right.’ • A brand to aspire to be like, notably in retail

  10. What went wrong? • No customer based strategy. For example - uncoordinated international expansion • Poorly managed switch to international sourcing, aggressive buying policies • Competition at both top and bottom of its markets • No true marketing orientation • Recession

  11. What’s changed? • Focus on the voice of the customer, significant effort • Customer voice as the driver for everything • Market positioning that reinforces that • Practical change to offering

  12. And the impact? • Recession caused decline but….. • Turnover back, above former levels • Profit around 50% of best years • Sentiment improving • … but lasting damage

  13. What does all of that look like?

  14. Digital world – a way to marketing orientation

  15. Digital – driving reputation for a service company • 2010, started with an Icelandic volcano – providing information • Now service support – 24/7, 10 languages, all in one hour • As an example, ‘Meet and Seat’ • Facebook – 4.7m followers, 4% engagement • Multi-platform – Twitter, Instagram….

  16. Digital – more than reputation • Three pillars – reputation, service, commerce • Very personal – ‘What I need now’ • Very fast – 1 hour or less • Expectations getting higher and higher

  17. And digital can be used to change sentiment

  18. And what does KLM say? • Complete change in customer engagement • Using database to drive service changes • Social based marketing campaigns – seven times better rate of return

  19. And what more does KLM say (but might rather not)? • The dog is an actor • Keep social ‘honest’ • www.keepsocialhonest.com

  20. Change in communications landscape – it’s real • Every European country, print in decline (not Germany) • TV varies hugely by media market • Online growth in every country Source: Publicis

  21. For some, digital is a real threat • Some models rely on other channels • As an example, luxury travel market • Built on a knowledgeable adviser, quality experience • Does the internet destroy all that?

  22. Kuoni • Swiss – founded 1894, strong across Europe, particularly in Britain, Switzerland, Scandinavia • Mixed direct and agency sales • Travel more commonplace – and much more self-service • Needed new positioning • Really strong brand equity, needed to work harder

  23. Kuoni – improving direct sales experience (fewer quality agents)

  24. Kuoni – advertising to reinforce strengths, extend distribution channels

  25. Kuoni - outcomes • Context of weak international market • 27% improvement in income • Key elements – greater control over distribution, improvement in sentiment amongst essential markets

  26. Seeking out a niche • Insurance, a market where most do everything • RIAS, launched 1992 as ‘over 50s’ specialist • Allowed building processes and data for that segment, eg claims handling • Heavy reliance on ‘old fashioned e-mail’ • Contact centre culture built on quality conversations

  27. RIAS - results • Renewal rate almost twice that of competitors – for same age group • Customers buy 2.1 policies a year (compared to 1.2)

  28. RIAS – what does it look like

  29. And how can not-for-profits fight back? • Many of the same tools and techniques can be used • Background – charitable giving under pressure • Competing pressures for money • Western governments leaving more social care and support with charities

  30. Making the medium the message

  31. Simple but creative • A problem most of us see every day • Irritating to us, but imagine if you were blind • 24% click through rate • Almost four times more likely to donate • In digital, the best are still very creative

  32. In conclusion – what have we learnt • Some companies buck the trend • Thinking and planning are the key • Creative still a vital part of what we do • Common theme – thinking from the customer perspective, or marketing orientation • Understanding your market is everything

  33. Thank you for listening • What are your stories? • What are your questions? Andrew Harvey + 32 2 742 17 40 aharvey@emcoffice.net andrewqharvey

  34. After the recession. How are European companies fighting back? Andrew Harvey Moscow 22 October 2014

More Related