Primark’s consumer focus and Pret’s meal deal: Your Marketing Week
At the end of every week, we look at the key stories, offering our view on what they mean for you and the industry. From Primark’s admission it needs to “work harder” to attract shoppers after weaker-than-expected sales to Pret’s focus on value with the introduction of its first meal deal, it’s been a busy week. Here is my take.
Primark’s awakening
Primark is on a journey of discovery. Despite seemingly being primed to ride through, and perhaps even prosper, during a period of brittle consumer confidence, it’s been forced to think hard about the tactics it has employed across the marketing mix.
After announcing weaker-than-expected like-for-like sales in the first six months of the year, the chief executive of parent company ABF, George Weston, claimed that concerns over the economy were and would have an impact on sales. July saw no growth in the UK GDP, according to the Office for National Statistics, and rumoured tax rises in the autumn budget are only likely to compound already low consumer confidence, as recently reported by GfK. Inflation, only likely to dent the enthusiasm of Brits to buy, is also nearing a two-year high.
Primark’s reaction? Stay top of mind, increase discoverability and improve digital access. It’s working on a new app, and looking to improve SEO after a slow start to its digital transformation. On the former, the retailer launched its first television ad just last week, which will be the first of many moves to increase awareness and consideration.
On the call to investors, Weston promised it was going to “work harder to get the attention of shoppers”, adding “our investment in consumer-facing activity, whether it’s digital or whether it’s above the line, will be higher in the future than it’s been in the past”.
Advertising is not the panacea to Primark’s problems, of course. It’s only part of the solution. But it does need to tell its story and communicate its point of difference. With cheaper fast fashion being offered by Shein and its like, being the cheap option on the high street isn’t sufficient. Value will be.
Pret looks to seal the value deal
Another company that is thinking hard about value is Pret A Manger. The chain has announced its first meal deal, to be introduced next week and trialled until the year’s end.
The move, which will see it go head-to-head with the supermarkets and others in the lunchtime meal deal market, is part of Pret’s attempt, as it puts it, to “double down” on value.
Pret’s value challenge is ongoing. It’s a high volume business that is perceived as expensive. A company that offers a good product at a price point that is limiting to growth ambitions. It’s tried plenty to address this, making various changes to the subscription product to try and drive more sustainable returns, while offering value to repeat customers. Now, it’s looking to meal deals. The price, between £6 and £7, offers value to those previously paying in excess of £10 for a sandwich, drink and snack, but is still higher than rivals offering similar.
Market share gains is how success will be measured, which means the challenge is not just keeping customers but attracting them. It’s fresh food, made in-house on the day message will be key to its value offer.
A design for life
Large, mature financial services companies almost all have brand architecture challenges.
Often grown through acquisition, some evolve through necessity into house of brands behemoths. Acquisition in the 1990s and 2000s, when finserv companies were looking for quick growth, and the forced marriages of convenience and necessity that came after the financial crash, meant branded houses ballooned. Acquisition and consolidation continue in the sector, as does the challenge of getting architecture right.
This week, Phoenix Group announced it would rename as its most well-known brand, Standard Life, next year. This after Phoenix acquired Standard Life and Standard Life Assurance in 2021 and 2018, respectively.
Having made the decision, the challenge begins. The external benefits include potential synergy, efficiencies and simpler brand management. The harder part is creating a corporate and employer brand. All the challenges and opportunities are discussed by marketing boss Ben Rhodes in the article linked to below.
The week ahead
Lots to come next week, from the latest feature in our Language of Effectiveness series and a closer look at podcast advertising, to a profile interview with the CMO of one of the biggest social platforms.
