MarketLine Blog

Posts about Marketing

Blue Apron – Changing the way of eating and buying food

MarketLine

The US meal-kit delivery service is projected to be a $5bn market over the next three years. Though space is already crowded, a start-up company, Blue Apron, managed to carve a niche out for itself. By recognizing the educational void for the multitude of home cooks and building a wildly successful business around feeding them, while sharpening their kitchen prowess, the company managed to build a $2bn recipe-delivery business with 2,500 employees, in 36 months. By designing its business model around supply chain efficiencies, the company managed to get fresher… Read more

Behind the Digital Iron Curtain: Rise of Chinese Silicon Valley

MarketLine

After a long period of rapid, double digit growth, the Chinese economy entered a more sustainable phase of development, based on innovation and consumption. Given the large population of 1.3 billion in China, the explosive growth of smartphone users, e-commerce, and online content consumption and creation led to a digital revolution in almost all industries and business sectors. While the Chinese Communist Party is trying to match its social control in the real world with the virtual world, which becomes more and more restrictive, the country’s internet is thriving and… Read more

Selfie generation: Refashioning make-up market

MarketLine

The global make-up industry grew by a record 8.4% in 2016 and was the main growth driver for the cosmetics market worldwide. The range of make-up products is endless, and some product categories, in particular those highly popular with the generation of Millennials, (i.e. concealers, illuminating highlighters, lipsticks) are booming. These hyper-connected customers are young, have a strong purchasing power, new ideas about beauty, and are also very keen to spend money on beauty products. While clothing and department stores are increasingly closing their physical locations, not being able to… Read more

Primark expansion: The impact of Brexit on its profit margins

MarketLine

Primark, first established as Penneys in 1969 now has over 290 stores in Europe and the US collectively. In 2017, AB Foods the parent company of Primark has stated a further 16 Primark stores are to open across Europe and the US. Following the loss of BHS in 2016, a niche in the market was identified, a niche which Primark intends to capitalize on. Primark has been identified as the leading low-cost clothing retailer in recent years competing against the likes of ASDA and H&M. The branches in Europe were… Read more

Once Upon A Time At Christmas… The John Lewis Formula

MarketLine

Advertising has been an increasingly important aspect in modern day business with companies spending millions on advertising campaigns. Every now and then, an advertising campaign can capture the imagination of the people watching which helps to increase the profile of a brand substantially. In the UK, one such example is that of the John Lewis Christmas advertisement. From 2007 onwards, John Lewis has evolved its Christmas adverts into something of a Christmas tradition. Every year, people anticipate the release of the new advert speculating on what it may contain with… Read more

Corporate Sponsorship: Companies hypersensitive to damaging controversies

MarketLine

When a company is giving serious thought to sponsoring an event or club, or signing an individual to a costly endorsement contract, it takes several factors into consideration. The benefits that a company is seeking by entering into such arrangements are namely revenue growth, an improved corporate image, and increased brand equity as a result of greater consumer awareness. This is a double-edged sword however, as scandals involving sponsored celebrities or organizations can reflect badly. In many instances, there is no obvious link between the sponsor and the sponsored party…. Read more

Consumer Law: Shifting power from businesses to consumers

MarketLine

As of October 1, 2015 new consumer protection measures came into force in the UK. Under the Consumer Rights Act, customers are now entitled to a full refund on faulty goods for up to 30 days after the purchase. This area was previously rather sketchy, with consumers only being entitled to refunds for a ‘reasonable time’. A further measure has been the introduction of new protection for those purchasing digital content, allowing for a replacement on downloads that do not work. What’s more, if a digital download infects a user’s… Read more

Tesco: Fallout from profit overstating continues

MarketLine

Yesterday (September 22), the UK’s largest retailer Tesco had to make the embarrassing and damaging admission that its first half profits had been overstated by some £250m (approximately $390m). Consequently, profits for the period are now expected to be around £850m (approximately $1,328.8m) rather than the originally-reported £1.1bn (approximately $1.7bn); quite a difference. The fallout has been catastrophic and has prompted some serious questions that have led to staff suspensions, a delay in publishing its first half results, and the intervention of legal and accounting firms. Following the shock announcement,… Read more

Alibaba says open sesame to western markets

MarketLine

  Chinese e-commerce giant Alibaba has increased the price range of its eagerly anticipated IPO to $66-$68 per share, adding further value to the offering, which is already expected to be the largest technology IPO in history (surpassing the $16bn raised by Facebook in 2012). The value could even eclipse the largest ever US IPO – that of Agricultural Bank of China in 2010 – if underwriters exercise options to purchase additional shares. The jump in price means that the IPO could now net over $25bn, valuing the company at… Read more

Pinterest: social network drives engagement and sales

MarketLine

Retailers are increasingly using social media to enhance their brands, boost consumer engagement, and drive traffic and sales. Pinterest is a particular area of focus; the social network, founded in 2010, is fairly new and growing fast. The image-based network has been found to generate sales, and retail giants such as Target and Nordstrom have utilized this. Social media is used globally Billions of people around the world use social media, and retailers are increasingly witnessing the benefits of this. A study found that 89% of marketers reported found increased… Read more

Industry Analysis- Civil Engineering

MarketLine

Introduction The global construction industry grew at a moderate rate in 2013, powered primarily by the developing economies of the Asia-Pacific region, particularly Japan and India, which both experienced strong growth. Comparatively, in Europe the situation was far from ideal, as declines were seen in many economies throughout the region. Strong global growth rates are expected in coming years as some of the developed nations return to more stable growth periods. The Asian market looks set to continue growing at a strong rate, while Western industries appear on the precipice… Read more

Despite the doom mongers, the media industry finds itself in generally rude health

MarketLine

Across the 2009-2013 period, the global media industry has continued to find room to grow despite the ever looming spectre of the financial crisis. The advertising sector has been particularly susceptible to austerity as companies have continued to cast a critical eye across their costs, looking to wield the dreaded “cutback” scissors, asking themselves “do we really need to spend X amount on advertising when we can do a lot of it in-house?” Cue that competitive threat to seemingly every industry on the planet, Google and its AdWords service, not… Read more

Old Spice using social media to revitalise a brand

MarketLine

As consumer media consumption patterns are changing, CPG marketers are adjusting their marketing budgets to dovetail with shifting consumer audiences. As such, digital social media, e.g. Facebook, Reddit, and Twitter, have become more important to the marketing mix. Indeed, for many brands, social media has become their biggest relationship-marketing provider. This blog entry focuses on two brands in the men’s personal care sector which have successfully integrated social media into their respective marketing campaigns, namely: Old Spice and King of Shaves. The primary focus of this article is the Old… Read more

Is online social gaming a viable CPG marketing opportunity?

MarketLine

Online social gaming has been one of the key growth stories of 2010, with millions of people worldwide driving multimillion dollar valuations for games such as Farmville and Angry Birds. Consumer packaged goods (CPG) companies are becoming increasingly skilled at using online social media to promote their products, but most have not yet fully exploited the potential in online social gaming. There are opportunities both in sponsorship of existing mass-market social games, and in creating brand-focused games to develop social media strategies and drive consumer engagement. CPG companies have so… Read more

Mentos -Turning Unexpected Online Attention to Your Advantage

MarketLine

In 2006, an online filmmaking duo called EepyBird posted a video featuring an explosive mixture of Diet Coke and Mentos candy. The video rapidly became immensely popular. Mentos’ manufacturer, Perfetti Van Melle, rapidly capitalized on this sudden fame to promote the candy brand, while Coca-Cola lagged behind in its online marketing efforts. Even at the time of the initial Mentos and Diet Coke video in 2006, it was clear that online viral marketing was a vital part of the marketer’s toolbox, and the basic rules have not changed since. If… Read more

Was Tumblr worth $1.1bn for Yahoo!?

MarketLine

Yahoo!’s acquisition of blogging service Tumblr has been all over the news in the past few days, as the company looks to make its first big-ticket acquisition of 2013. Remarkably, the agreed price of the acquisition stands at $1.1bn, a substantial amount considering that Tumblr accrued just $13m in revenues last year. So, the question begs to be asked, why has Yahoo! paid such a premium in order to seize control of the fiver-year-old company? The answer lies with its online presence, specifically within the social media space. According to… Read more

Manchester United: Number 1 on and off the field

MarketLine

As the 2012/2013 Premier League season draws to a close, it looks very much like Manchester United is going to regain the right to call itself the best team in the land. Surely not even the club that loves to make things hard for itself can throw away a 13 point lead with only 5/6 matches remaining? The club’s success is not, however, limited to the field of play with financial data related this week showing that the club is by far and away the Premier League’s number one when… Read more

Google settles and wins in Brussels

MarketLine

Although Google is now — for the first time in the company’s history — giving in to proposed constraints on how it presents its search results, the company is clearly the winner in a three-year investigation involving both US authorities, the EU commission, and what can be called effectively the ‘litigants’: rivals Microsoft, Expedia, and other big tech affected heavily by Google’s search algorithms. Under the terms, contained in a draft deal formally submitted this week, Google will be under affective constraint to not only label its own specialist search… Read more

G4S Olympic Fine Stands at £70m

MarketLine

G4S is the world’s leading security firm and remains dominant in its market despite some recent turbulent public image issues. At the London 2012 Olympic Games the company was originally awarded the huge security contract, but couldn’t fulfil its promise of 10,000 security personnel and subsequently the UK’s military was drafted in as a replacement. The resulting furore in the media and fines and costs incurred by failing to complete its contract should have affected the company adversely, however this doesn’t seem to have been the case. G4S controls some… Read more

John Lewis Partnership Case Study: UK Retail Chain is Owned by its Employees

MarketLine

John Lewis Partnership is one of the UK’s most well-known and successful retail chains. Whereas most retailers of its scale are owned by shareholders, John Lewis Partnership is owned by its employees. John Lewis Partnership is owned by its employees via a trust. Financials for the past ten years show JLP performing strongly, even in difficult market conditions. This is reflected in the structures in place for workplace democracy, and in the annual profit-share bonus given to all employees. Company strategy focuses on long-term planning, brand strength, and employee partnership…. Read more

Red Bull continues to push marketing boundaries with its Stratos event

  The Red Bull Stratos event is another indicator that Red Bull is a company that continues to change the way modern marketing and advertising is implemented, with its unique cultural and sporting sponsorship. The benefits to the company for funding such an event are likely to outweigh the amount invested in the project, as has been seen with some of Red Bull’s other investments (such as the Formula One racing team) and may similarly lead to a spike in revenues. On Sunday October 14th, after some nervous waiting, the… Read more

Management and Marketing Consulting Market Faces Competition From In-house Specialists

MarketLine

  Despite continuing financial and economic uncertainty impacting the global economy, management & marketing consulting continues to grow in 2011, with only Japan declining of the major markets. The global market expanded by 6.2% in 2011, to reach a value of $301.1 billion, indicating a compound annual growth rate (CAGR) of 3.6% in the period 2007-2011. Growth in this period was primarily driven by the Americas and the Middle East and Africa, who achieved the largest CAGRs in 2007-2011. The Americas contains the single largest consulting market, the United States,… Read more