Ikea, Pernod, social spend: 5 things that mattered this week and why

From Ikea’s shift in marketing strategy to the worrying trend for marketers to invest in social media without knowing its ROI and TUI bringing sales and marketing together, here’s everything that mattered in marketing this week.

Ikea moves with the times as it shifts marketing strategy

Ikea is often held up as an example of creative excellence, with its ‘Wonderful Everyday’ campaign helping cement the brand’s positioning and drive sales success. But the market is changing – more people are renting homes rather than buying and living with friends rather than partners. That means changes to how they decorate and buy furniture.

Ikea’s previous marketing strategy made much of the complete style overhauls it could offer – from new kitchens to revamping dining rooms. But increasingly this isn’t what people are in the market for; instead they want style updates – some cushions to make an old sofa look new or a rug to give a room a different look.

Ikea, ever on top of changing consumer trends, recognises this and has shifted its strategy accordingly. The new campaign, named ‘New Wonders Can Come Out of the Blue’ and created by Mother, puts the focus on production innovation, showing how just a few new items can transform a home. And it has revamped its ‘New at Ikea’ hub to feature all these new products.

As UK and Ireland marketing manager Laurent Tiersen puts it: “When it comes to revamping your home, you don’t always need a complete style overhaul. In fact, it’s often the little new things that can make all the difference.”

READ MORE: Ikea shifts marketing strategy to focus on product innovation rather than rooms

Coca-Cola jumps on the coffee trend as it buys Costa


Food and drink companies are having to look for new ways to fuel growth as the old strategy of looking to emerging markets begins to falter. One of the most obvious is mergers and acquisitions, and many are spending big to get a foothold in new or fast-moving sectors.

Coke’s acquisition of Costa is the latest of these. The company has paid £3.9bn to grab a piece of the coffee market, which is expected to see value sales grow by 15% between 2018 and 2022, according to Euromonitor. That’s a far cry from the declines expected in Coke’s core fizzy drinks market.

Coke is not the only company making big bets on external firms to drive sales. Pepsi has bought Sodastream, while Nestlé has partnered with Starbucks on a range of retail products.

These deals cost a lot of money, however, and while acquisition is one route to quick growth, companies will also need to make sure they are innovating and moving their core brands faster into new areas if they are to navigate choppy waters, with competition from startups increasing in the food and drink market.

READ MORE: Coca-Cola to buy Costa coffee as it looks to diversify beyond sugary drinks

Agencies listen up, Pernod Ricard still wants your big ideas

Drinks behemoth Pernod Ricard has been one of the companies leading the pack when it comes to in-housing of marketing services. It now does media buying internally, while data collection and content have also been brought in-house.

And at its annual results meeting, CEO Alexandre Ricard talked up the move, claiming that bringing media buying in-house has made it less expensive, and that spend is more efficient.

That doesn’t mean the role of agencies is being sidelined though. Pernod still looks to agencies for the big creative ideas that can disrupt a market. And it still willing to pay “big money” for the right idea.

Much has been written and spoken about the role of the media agencies going forward. What is clear is their relationship with clients, especially major brands that have the scale and expertise to in-house is changing. But for the agencies that can be a guiding hand and come up with ideas that get people talking, there is still a role. Agencies must be up for that challenge.

READ MORE: Pernod Ricard is still willing to pay ‘big money’ for creative, disruptive ideas

Marketers are still spending on social media, even though they can’t prove ROI


CMOs are spending more on social media than ever despite only a quarter being able to prove its impact, according to the latest CMO Survey. The biannual report found that social media now accounts for 13.8% of brands’ total marketing budget, up from 9.8% in August 2017.

That is despite less than a quarter (24.7%) saying that are able to prove its impact qualitatively. Some 39.3% aren’t able to show its impact at all.

The ability to measure ROI is improving, but there remains a worrying gap between where marketers are spending and where they can prove the effectiveness of their spend. As CEOs and CFOs increasingly expect marketers to be able to show their impact on the bottom line, that is something that will need to change.

READ MORE: Social spend accelerating despite most marketers not being able to prove impact

TUI brings sales and marketing together as it looks to develop a coherent customer experience

Developing a consistent and coherent end-to-end customer experience is top of the priority list for a wide range of companies at the moment. It is one of the key reasons behind the rise of the chief customer officer role, as brands look to marry what they say in their advertising with the experience consumers actually have of the brand.

At TUI, that has manifested itself in the broadening of UK CMO Katie McAlister’s role. She is now taking responsibility for sales as well as marketing, making her responsible for everything from its website to its retail outlets and contact centres.

As customers become more demanding, and digital and technology make it possible to develop a more seamless customer experience, it is heartening to hear that marketers are the ones being put in charge of customer experience. Whether it’s as a CCO or a sales and marketing boss, it shows marketing being taken seriously in the boardroom.

READ MORE: TUI extends CMO’s remit to include sales



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