Archive for the ‘Marketing’ Category

Another case of CSR gone wrong – the down sourcing dilemma

February 9, 2009

A few days ago, yet another CSR-related media storm hit the Swedish press. According to TV4:s Kalla Fakta, several leading outdoor apparel (among them Fjällräven) as well as leading home furniture and bedding companies (IKEA among others – press release – in Swedish) have used down plucked from live geese for their products despite stating clear policies against this practice.

This may not strike the eco-aware as any big news as the question of sourcing ethical down has been raised and discussed on a wide range of forums in the past few years. But the impact on the affected brands is still harmful.

IKEA now offer refunds to those that feel discomfort because of the issue and are now taking a close look at their supply chain. Leading Swedish retailer Åhlens have pulled all down and feather products from their shelves until further notice (press release in Swedish).

And maybe even more interesting, Fjällräven – who was recently awarded Signum Priset 2009 for outstanding trademark management and protection – face even stronger competition from their strongest Swedish competitor Haglöfs use this CSR controversy at their advantage on their website stating that they do not use down plucked from live birds.

Whilst little is actually known from a scientific standpoint about the live plucking practice this little CSR issue still has the power to shake up a market.

For those interested in the practice of sourcing down in an ethical manner, small UK outdoor specialist Alpkit did some digging in May last year with very insightful results well worth reading to get a hand on view of the hardships of finding out what ethical sourcing actually requires.

Recycling down
Ethical down sourcing pt. 1
Ethical down sourcing pt. 2

Time to Address Some Marketing Spend

October 16, 2008

Marketing has long been off limits for purchasers; alongside legal it ranks among the categories which purchasing functions have the least control over. But if there ever is a time to grab this holy cow by the horns it is now.

Earlier this week, the UK press reported that marketing budgets are being slashed; 35 percent of the respondents to the Institute of Practitioners in Advertising; the U.K.’s agency association; Q3 Bellwether Report said that they’re revising their budgets downwards in the third quarter. Only 8 percent of respondents were optimistic about the state of the advertising industry.

Now, if there ever was a door opener for purchasing into marketing spend, this is it. Marketers; by nature; want to be seen as winners, and if purchasers can show that marketing can still get their messages out, at a lower cost, with retained quality; they’ll listen to what you have to say.

When Kids Get Stuck in the Struggle over CGF Supply Chain

September 16, 2008

As the rest of the world is struggling with a volatile raw materials market, Sweden is experiencing a never seen before battle for power in the super market aisles. And the battle grounds are kid favourite’s meatballs and tomato ketchup.

Little over two weeks ago, ICA (one of three major super market chains, the others being Coop and Axfood) declared open war on Procordia, the maker of Felix products, due to disagreements over the price of tomato ketchup. In a display of brute force, ICA took a wide variety of Felix tomato based products off their shelves as part of the negotiation process.

Yesterday, Coop followed suit, and stopped the classic Swedish Scan meatballs due to a similar negotiation breakdown. Pushed into a corner, Scan has sent out warnings to the market that it might have to cut down on personnel.

At the moment, there is no clear winner in the battles of the super market aisles, although doomsday prophets see a ketchup crisis on the horizon. It’s a great thing that the summer bar-b-que season is over; otherwise kids all over Sweden might be rioting due to ketchup shortage.

In The Aftermath of British Airways Heathrow Terminal 5 Failure

September 4, 2008

British Airways is still struggling with the reputation shock drop the airline carrier experienced due to the complete failure of the baggage system on the opening day of Heathrows Terminal 5. In the days after the catastrophy, BA (the sole occupant) and BAA (the owner of the terminal) traded accusations ranging from system failure (on BAA’s part) to untrained staff (employeed by BA).

That was five months ago, yet BA is still trying to pursuade it’s travelers that Heathrow Terminal 5 is working. For the past few weeks BA is running an online ad campaign with the tagline »Terminal 5 is working«, complete with daily updates showing people who actually dared to fly from the terminal despite it’s bad reputation.

I guess it just goes to show that supply chain disruptions or other failures in delivery has serious effects on consumer behavior. But I have to admit that the fact that BA has to advertise the fact that their flagship terminal is working (which I would assume was the minimal requirement even for a traveller in the dawn of aviation, let alone today) put a smile on my face.


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