Innholdsfortegnelse for September/October 2016 i NZ Marketing

Recently, the psychological study claiming you could smile your way to happiness failed under a replication test. For years, this study, which had people put a pen in their mouths to imitate a smile or a frown, was accepted as compelling evidence that even the most subtle cues—whether purposeful or inadvertent— can influence the way a person feels or behaves. The failure of this test wasn’t unusual. A paper published in Science magazine in 2008 found that results in only 39 of 100 selected psychology experiments could be replicated. It was a pretty damning finding for those hoping to apply the scientific method to psychology and behavioural studies. Further muddying the water in this space is the way we analyse results. Even the most successful studies don’t always age well,…

The challenges of marketing in a small country like New Zealand are easy to see; with smaller segments and even smaller prospect pools, marketing spend needs to work harder to achieve returns, while marketers themselves need to wear multiple hats to get the job done. That makes marketing automation all the more attractive—and the choice of an automation partner all the more important. Ubiquity’s Nathalie Morris gives us the low down. WHAT ARE SOME OF THE BIG MISTAKES MARKETERS MAKE WHEN IT COMES TO AUTOMATION? Underutilisation. What we often see is that after investing heavily in technology platforms, marketers realise they’re only using about 15-20 percent of the available functionality. The reason for that is because they simply don’t have the right resources to drive the additional functionality and often…

THE CHALLENGE In January 2015, Paralympics New Zealand (PNZ) identified a major business risk. Over 93 percent of its annual income was coming in government grants from the High Performance Sport New Zealand agency. This funding came with a series conditions, which ring-fenced it for certain uses. Plus it exposed PNZ to uncertainty – what if the government’s funding agenda changed, or what if a new government had different priorities altogether? This model posed significant risk to Paralympics New Zealand’s future, and was preventing it from achieving its remit to raise awareness, understanding and acceptance of disability. It also recognised that the public were aware of PNZ, but did not really understand what the organisation did. The media were also aware of it, but coverage often focused on disability, not…

Category Sponsorship Campaign Name Bucketheads Sells Buckets of Chicken Company Name Restaurant Brands (KFC) Judge’s comment “A textbook 360 sponsorship approach leveraging every consumer touchpoint to deliver business results. Clear insights translated through to execution. A standout winner in the category.” Marketing Partners Ogilvy, MediaCom, MediaWorks, Sky TV Finalists Air New Zealand (x3), ASB Bank, Independent Liquor, Vodafone NZ, Z Energy THE CHALLENGE Kiwis were increasingly turning away from KFC. Despite being number two in the battlefield of quick service restaurants, the fried chicken outlet was finding its meal deals just weren’t connecting with the modern Kiwi mealtime. So while the competition was growing its coffee and salad offerings to stay in the game, the Colonel’s marketing team was considering how it could drive more chicken sales from its Super…

Peter Cullinane made his name in the advertising industry, but he’s certainly not your stereotypical Mad Men-era adman. He’s more about soft power than ruthless Machiavellianism. And that attitude has taken him a long way and gained him a heap of respect among his colleages and competitors. It all started for Cullinane in Wellington in the heady days of the ‘70s, when he took up his first job in advertising at the age of 19 after dropping out of Victoria University. Around five years later, he was running the Wellington arm of up-and-coming agency Mackay King, which was eventually bought by Saatchi & Saatchi in 1988. And not long after, he became the chair and CEO at Saatchi & Saatchi New Zealand, presiding over it during its halcyon years, before…

What are the benefits of having a purpose? It gives direction to managers and employees. Externally it creates a strong reason why we should invest in this brand, buy it and recommend it to others. Are brands expected to have a purpose/conscience more than they were in the past? We’re more likely to see when they do things badly - and to share those experiences with others. Brands with a clear purpose have the opportunity at least to engage their employees with an appealing idea - one that helps encourage alignment and positive action. However, I think overall I would argue that having a clear purpose has always been important. Do you have tips for brands wanting to define their purpose? It should be inspirational and aspirational but it should…

IT’S THE ‘SELECT profession’ drop-down box that always gets me. Nearly every time I’m forced to choose between retail or marketing. But for me, it’s always a really difficult decision as I feel that I’m firmly in both camps. Much of the theory that underpins marketing is also at the heart of what great retail is all about. Fundamentally, it’s about knowing your customers; it’s about continually changing, evolving, innovating or to put it more crudely – having a go. The best thing about my preferred drop-down descriptor of ‘retail marketing’ is that you get to know your customers and have a go every single day. Supermarkets are fast paced. As in hundreds of marketing campaigns all year across a range of mediums kind of fast paced, from a mailer…

ENDURING A PERIOD of enormous technological change is somewhat akin to suffering the stages of grief. There’s the initial shock, the subsequent denial, the bargaining, outright depression, then eventually followed by hope and acceptance. Processing all this as a business requires time. Historically, we did have time to weather changes wrought by technology, but our ‘grieving’ period has become compressed over time. To put this into perspective, human heads rested on hard stone pillows for 5,000 years until the Romans pioneered softer alternatives; the Industrial Revolution pushed the word ‘revolution’ to its limits by taking place over 80 years; and more recently, the transition from black-and-white to colour TV took two decades. In the last 20 years, this trend has accelerated to the extent that a brand new personal computer…

The launch of KPEX at the end of last year was met by immediate scepticism from the industry, with many questioning whether the whole collaborative edifice was simply going to collapse. And this wasn’t entirely unwarranted, given you essentially had four competitors shaking one hand while continuing to fight with the other. To outsiders, it was a pact that seemed very uncertain, despite all the good intentions and joint press releases of those involved. However, despite all this doubt, Fairfax Media, MediaWorks, NZME and TVNZ stuck to it, adding in their ad inventory and establishing a platform that advertisers could work with. Once KPEX was established and launched in the market, it still needed a respected and savvy digital operator to run it—and in this instance it turned out to…

KPEX might’ve had a strong start but it is still in its infancy, and digital isn’t really a space where you can afford to rest on your laurels. It only takes a moment for a competitor to step in and usurp whatever advantage you might have. For this reason, Thompson is already focused on keeping the platform moving forward. Front of mind for him at the moment is the importance of providing KPEX advertisers with the best possible data. “It’s about ensuring that advertisers can reach their audience in a highly targeted way within our environment,” he says. “We see a massive opportunity in merging all the amazing data points we have within KPEX with an advertiser’s data. This will allow us to really compete on a data and targeting…

AROUND THIS TIME last year, TRA’s Andrew Lewis wrote a fascinating piece on loyalty for NZ Marketing, closing with the damning conclusion: “We should acknowledge that most loyalty schemes operating right now don’t work to provide any real gains for their businesses. The reason for this is that they are simply trying to buy a behaviour change that customers don’t desire to make.” And he had a point, especially with a global eye. However, over the last two or three years, we’ve seen a lot of change in the New Zealand loyalty landscape. This year alone, there are already further developments underway. As I write, Fly Buys Pumped has just launched an aggressive and smart play with Z Energy to win market share and deliver value back to the Fly…

FROM INSTAGRAM TO INSTABANG FOR MARKETERS Mike Kevan, marketing executive, Marketing Association Just like the mould that is on the cheese in your fridge, Instagram continues to grow. Now those crazy kids are boomeranging, hyperlapsing and making fancy layouts, these aren’t the latest dance moves at the discotheque – this is the current generation of Instagram posting. After Facebook bought out Instagram, a simple photo sharing app, its popularity exploded. It has become a real and valuable marketing channel that is worth getting on board with. A recent article stated that a single post on Selena Gomez’s feed is worth approximately $550k USD. We can all admit, that’s ludicrous. The key to Instagram's success is its ease of use and proliferation amongst the millennials and post-millennials. Trading likes is an…

‘Evangelist’. It’s a word most commonly dedicated to those seeking to convert others to the Christian faith. And yet, when asked to describe Elliott, it’s the word his colleagues use to describe just how much of a crusader he is for the industry. In full, the description reads: “Dave is a change agent, transforming the role and influence of marketing. A passionate evangelist for customer centric marketing.” Those praises are well deserved, as Elliott, who has been the general manager of marketing at Mitre 10 since 2010, has overseen a major marketing transformation. In the past six years, he has consolidated the brands Mitre 10 Mega and Mitre 10 under one identity and advertising programme, and introduced data-driven initiatives to measure, test and improve the media mix for Mitre 10’s…

Category Public Sector Company Name Health Promotion Agency Judges’ comments “A campaign platform that other organisations could adopt. It’s a tough target audience to connect with and there were many preconceived stakeholder issues to overcome, but it addressed an illness that is still a genuine problem in New Zealand.” Marketing Partners GSL Promotus Finalists Auckland Council, Auckland Tourism, Events and Economic Development (ATEED) THE CHALLENGE Rheumatic fever is a serious but preventable illness, and New Zealand is one of the few developed countries in the world still affected by it. The illness is so serious it can lead to permanent heart damage and even death. Children with rheumatic fever often need serious heart operations, and as part of their treatment requir, monthly penicillin injections for at least ten years. The…

Category Travel/Leisure Campaign Name Taking Back Control of our Online Booking Channel Company Name Accor Hotels Judge’s comment “Multi-faceted campaign, clear relationship between the marketing programme and the business imperative, strong degree of sustainability created, has the ability to change the nature of their negotiations, insightful industry fights back to extensive industry disruption.” Marketing Partners Vizeum Finalists Air New Zealand (x2) THE CHALLENGE Accor Hotels wanted to take back control of its online booking channel. It, as well as other hotels across the industry, was losing business to online travel agents such as Expedia and Booking.com. Globally, hotels are reliant on online travel agents for their bookings, to the point where for most hotels these intermediaries are producing more online bookings than on hotel sites. For Accor, 35 percent of…

THE CHALLENGE Long run metal roofing and cladding products can be seen on nearly every commercial and residential building in New Zealand in the form of roofs, walls, gutters and fascia and represent a market of $250 million per annum. It’s also a growing market driven by the Auckland housing boom and Christchurch rebuild. However, at a time when things should be looking up for a roofing supplier, Pacific Coilcoaters (PCC) was seeing a decline in market share, revenue and profit from its ColorCote brand. As the business moved into 2015, it describes a “market confusion” surrounding the brand due to a lack of clear and cohesive product positioning, ambiguous marketing collateral and a lack of innovative sales tools. It was also failing to meet delivery expectations; promising five days…

Since its inception, KPEX has also been premised on assembling the best publishers in New Zealand in a single place. And it’s made progress in this regard by adding three new players to the mix. KPEX chief executive Richard Thompson has announced that Choice TV, NBR and Tangible Media all joined the fray by adding their ad inventory into the exchange. “It’s fantastic to see New Zealand’s media coming together like this,” Thompson says. “We’ve exceeded our targets every month since launch,” Thompson says. He says these results are only set to become bigger with more publishers coming into the fray. “KPEX is already working its socks off for advertisers, and these new publishers will only improve the targeting capabilities on offer.” Thompson elaborates further by pointing to Tangible publication…

For all the genius ideas, emotive scriptwriting and beautiful execution in the world, an external marketing campaign is doomed to flop if a company’s biggest asset—its staff—don’t get it or don’t buy it. Picture the company where employees emit a collective groan when the latest CEO newsletter hits inboxes. The brand that externally promotes putting customers first, and internally promotes upselling at any cost. The airline that tells clients it’s improving its customer service, but doesn’t tell its staff how. Failure to communicate effectively with staff can mean employees don’t understand the promises the brand is making to consumers, Colenso BBDO executive creative director Wayne Pick says. “At the very worst, it might mean employees not understanding the brand’s purpose. And if staff aren’t engaged it risks resulting in a…

THE CHALLENGE Anyone who’s noticed the flurry of advertising campaigns from electricity companies come winter has probably guessed how much of a competitive market it is. Particularly when each company is selling the same utility, where usually the only differentiators offered are enormous ‘save’ incentives in an effort to retain customers. Despite the miracle that is electricity – which heats our homes, allows us to charge our devices and allows us to keep the fridge on – it’s a low engagement category, and when the lights are on, customers generally switch off. And thus, customer churn is high (21 percent) and acquisition is expensive, creating a highly competitive environment. The industry norm is to reward disloyalty, not loyalty, with doorknockers and telemarketers offering joining bonuses to acquire new customers and…

THE CHALLENGE Before the 2015 Rugby World Cup – the world’s third largest sports event – the nzherald.co.nz’s daily digital sports audience sat behind that of Stuff.co.nz, rarely managing to exceed it. The cup was NZME’s chance to dominate Fairfax, strengthen its connection with its current audience, and attract new sports fans to grow its audience overall. The ultimate goal: positioning nzherald.co.nz as the home of RWC 2015. NZME knew it would be competing not only with Stuff, but with other key New Zealand media including TVNZ, MediaWorks, and Sky. It would also be competing with original content created and shared by RWC sponsors, brands, bloggers and fans – all vying for attention. The publisher had to work out a strategy to appeal to not only a core rugby and…

Category Emerging Business/New Brand Company Name API Consumer Brands Judge’s comment “Only Good is a classic marketing success story and should be lauded as such. It has given API two out of three of New Zealand’s top body + wash brands, growing margin and avoiding cannibalisation of product along the way.” Marketing Partners MILK, BrandWorld, Julia & Libby, Auckland Zoo Conservation Fund Finalists Eat My Lunch, MediaWorks NZ, The Warehouse Group Financial Services THE CHALLENGE API Consumer Brands already has a few wellknown brands under its umbrella, including Cancer Society, Health Basics and Home Essentials, yet it gave itself the challenge of launching yet another beauty brand. As there is a lot of competition in the personal hygiene category, where customers often have a ‘lowest price’ mentality, often driven by…

1 WHY First off, answer this question: ‘Beyond making money, why are you in business?’ In ten years how will the planet, or people on it, benefit from what you’re doing? 2 WHAT If you’re in business to change the world you need to stay in business. Make sure your business idea addresses an emerging trend, an unmet need or does something no one else can do as well as you. 3 SHARE Great business, product and service ideas inspire people to share them. The urgent need to create ways of transforming materials and transacting in ways that repair some of the harm we’ve done to our planet is a story millions are willing to share. Make sure you tell yours in a way that allows them to do just…

IT’S COMMON TO hear observers question why the giraffe and the hippo aren’t named in Africa’s Big Five. The respective sizes of these animals certainly fits the descriptor ‘big’. However, it isn’t the size of the animals that warrants inclusion, but rather how difficult they are to hunt. In selecting the big five issues facing marketers, we had a similarly daunting task in terms of narrowing it down to the most pertinent issues. This is by no means an all-encompassing list, but rather an attempt to address five of the trickiest challenges facing modern marketers. There’s a saying in journalism that if you hear the same thing from two or three different people, then you’re onto something. And during countless lunches, interviews and casual chats, marketers have time and again…

CONSIDERED TO BE a symbol of power and courage, lions fend for themselves. However, when it comes to food, female lions will work together, often circling their prey and creeping up on it. Where prey can outrun a single lion, it’s harder to outrun a group and the lions’ hunt becomes more successful. The same can be said about marketers looking for eyes and ears in an increasingly fragmented environment. They can’t work in a vaccuum, and when brands come together and leverage each other’s knowledge, resources and audiences, both can achieve an objective, be it mutual or different. It’s this ability to work together that has seen New Zealand businesses be held in high regard on the international stage. New Zealand Story director Rebecca Smith says offshore businesses are…

RESEARCH NOW SUPREME AWARD WINNER Colmar Brunton and Inland Revenue won Platinum in the Nielsen Social and Community Category and went on to take out the ‘Research Now Supreme Award’ for their entry “Cracking the growing student loan debt dilemma – a $300 million success story”. RAEAWARDS CATEGORY WINNERS INFOTOOLS INNOVATION AWARD TRA and Te Wānanga o Aotearoa Te Wānanga o Aotearoa - moving Māori education into the 21st Century SSI EFFECTIVE PARTNERSHIP AWARD Infotools and The Coca-Cola Company What “The Godfather” has to do with Coca-Cola. Infotools’ successful role as the protocol and quality control consigliere AUT YOUNG RESEARCHER OF THE YEAR Philippe Boulanger, NeedScope International INFOTOOLS DATA INSIGHT VISUALIZATION AWARD (DIVAs) The Colmar Brunton Creative & Multi-media Team Baby boomers; Truths & Myths INFOTOOLS SUSTAINED SUCCESS PLATINUM AWARD…

BRENDAN GREENWELL DIGITAL MARKETING ADVISER AT TRUSPOWER How has your experience with KPEX been so far? Surprising is probably the best word for it. We came in to KPEX assuming that a premium exchange would come with premium pricing and not much else. What we got was a competitively priced service with brand safe placements that we can rely on. How does pricing on KPEX compare? Admittedly, it is a bit higher, but the quality of traffic is equally as high, when compared to other exchanges. What drew you to the exchange? We were looking for that premium inventory. Anyone can go to Google and run some display advertising on nzherald.co.nz, but in trials we ran that compared quality of traffic from a site via a direct relationship, to that…

The Marketing Association has over 6,000 individual members. And like all good businesses, we listen to our customers to ensure we are meeting their needs. We measure this regularly when people attend our events, professional courses and in our annual survey. So how are we doing? The good news is that we are doing a lot of things well. Our events rate high on content and delivery. Professional development courses consistently receive positive feedback and everyone values the expertise we deliver around advocacy and compliancy through Keith Norris. Networking rates high on the list for marketers. Our Network of Executive Marketers (NEM) delivers unique opportunities at a senior level. The group meets regularly and we’ve had some impressive guest speakers, including Theresa Gattung, cofounder, My Food Bag; Mike Bennetts, CEO,…