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  • Vijesti

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    Television Audience Measurement: In Serbia, the media are in a race to the bottom for every extra “click”, while in Croatia HTV has undermined the principle of joint monitoring

    This global pandemic, coronavirus, cuts across all geographical borders regardless of cultures and language. What is the role of Public relations today?

    Slaven Fischer: Creativity doesn’t reside in buildings but in people, no matter where they are. It’s natural for people to work from home.

    Janja Božič Marolt: As in every crisis, there will be a lot of victims and some winners in the communications industry of the region.

    Shortcutting Video: New Study Highlights the Effectiveness of 2-second Ads

    Topic of the Day: Can artificial intelligence replace human intelligence and emotions. Is technology a servant or a master?

  • Intervju

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    Nataša Mitrović: I understood that the Balkans should be my primary target area and that, once I had become a shark in the Balkans, then I could make my way “back” into the big world and swim in the sea with the other sharks.

    Ivan Stanković: I admit to having great fun and enjoying myself enormously working on my show, What I am to you and who I am to myself.

    Scott-Gould-naslovnica

    Scot Gould: Stop doing anything that you do that isn’t valuable, tell everyone about that offering, and don’t stop!

    lazar-naslovnica

    Lazar Džamić: We are experts at preferring the byways, swamps, and chasms, so that we can keep on going in circles, lost in space

    Irena-naslovna

    Irena Kurtanjek: Contributing to the Communities in which we Operate is the Foundation of Nestlé’s Business

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    Diary of a Methuselah #159: Ivo Pogorelić and Zoran Todorović weren’t attractive enough for sponsors in Sarajevo

    Diary of a Methuselah #157: The Young Leaders of Tomorrow, a great event for young people who are ready to assume responsibility for the future of industry

    Diary of a Methuselah #156: I’ve been writing my Diary for three years now, and I don’t think I wrote anything smart

    Diary of a Methuselah #154: Three days at the PRO.PR Conference

    Diary of a Methuselah #153: Portal Media Marketing starts a new life today

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    Mladi liderji – Saša Droftina, Luna \TBWA: Želela bi, da bi se spremenil odnos do pitchev

    Mladi Lideri Kristina Gregorc

    Mladi liderji – Kristina Gregorc, Mercator: Zelo sem optimistična in izjemno ponosna in vesela, da sem del tako velike in uspešne ekipe

    Mladi Lideri

    Mladi liderji – Maša Crnkovič, Futura DDB: Največji izziv je vpeljava podatkov in feedback-a uporabnikov v procese dela

    Young leaders – Aneta Nedimović, New Moment Belgrade: Articulating ideas and the value of those ideas is an art form and a skill

    Mladi liderji – Matjaž Muhič, ArnoldVuga: Želel bi več časa za razmislek, za delo, za raziskovanje

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    Robert Wester: Strategic communications is at the top of the European Commission’s agenda

    Chris Pomeroy: Tourism in 2019 accounted for 1 in 10 jobs on the planet and until now it was resilient to all manner of crisis

    Andrey Barannikov: The role of PR in Russia is changing and becoming more strategically important both for brands and communication agencies

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    Three questions for Francis Ingham, Managing Director of the Public Relations and Communications Association (PRCA) & Chief Executive of the International Communications Consultancy Organization (ICCO)

    3 questions for Svetlana Stavreva, President of the International PR association (IPRA): Today, people are demanding that organizations do what they promised

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Home Opinion

A view from the North: Seven tips to get on Alexa’s shopping list

Regardless, as brand-marketers we must relate to a new mindset

14/08/2018
in Opinion
5 min read

Drugi jezik na kojem je dostupan ovaj članak: Bosnian

By Tobias Smidth-Fibiger, CEO McCann Copenhagen

Source: Bureaubiz, Denmark

During this year we can expect to see Amazon in the Nordic market and who knows when the Chinese counterpart Alibaba.com, booming on the e-commerce scene, will enter the stage?

Danish e-commerce businesses fear Amazon will take over all e-commerce due to their superior financial strength and global distribution system. And with valid reason: CNBC estimates that 44 percent of all internet trade in the United States in 2017 was via Amazon. The same year Amazon did 5 billion shipments.

Amazon Prime – the world’s largest loyalty club

Part of the secret of Amazon’s great success is Amazon Prime – a subscription service that gives subscribers a number of benefits such as free shipping and faster delivery.

More than 52% of all US households have already enrolled in Amazon Prime and the number is steadily increasing.

With Amazon Prime, Amazon has created a loyalty and growth engine resulting in that you as a consumer in principle don’t need to go elsewhere than Amazon to buy consumer goods.

Amazon knows you, has your address, payment information and purchasing behavior, and can continuously recommend items that suit your needs or match your last purchase.

But one thing is that e-commerce companies like Nemlig.com, Coop.dk, Coolshop.dk and Elgiganten.dk are meeting a challenging time – household brands are just as well.

Household and grocery brands have, historically, had some strength in terms of e-commerce, considering that consumers purchased peace of mind by choosing a known brand rather than an alternative private label brand.

But with Amazon Prime, that excitement will end when e-commerce really gets its very big breakthrough in Denmark.

”Alexa! – we`re out of kitchen rolls”

The spoilsport is called Alexa and is Amazon’s answer to Apple’s Siri – an intelligent and voice-based assistant that, through a small freestanding device on the kitchen table, understands what you say to it.

Alexa is thus Amazon’s humanized extended arm at home and, despite its charming voice and helpful attitude, it is Amazon’s Trojan horse, which can make grocery brands lives miserable.

The fact is that Alexa, among many practical features like sound and light control in your home, also can act as your personal shopping assistant. It writes items on the shopping list at your command and makes sure that the goods are bought and delivered to you without you lifting a finger.

This obviously sounds fantastic – and it is! But this is also where the problems start if you are a household or grocery brand. Because what is it really that you ask Alexa for?

Do you ask Alexa for Heinz or Ketchup or Ariel or laundry detergent?

According to the British retailer Popai, 76% of all purchase decisions are taken in front of the shelf in the supermarket, which with many opportunities for stimuli in the form of packaging, label design, promotions, shelf wobblers etc. gives the brand a real opportunity to communicate and create recognition at the point of sale.

But with Alexa, you make the decision on purchase at home without any kind of stimuli.

If you ask Alexa for a category product, such as laundry detergent and not a specific brand, it will give you some options based on Amazon’s earnings margin and thus Amazon’s private label products will always be the highest priority.

There is no room for numbers 2 and 3

If the future is as described above, we can no longer just run business as usual. With Alexa at the helm it will no longer be a question of choosing one supermarket rather than the other or about shelf placement, flag promotion, pallet wrap and a sharp price.

It will be all brands against all brands – managed and controlled by Alexa, and there is room for only one brand on the top-of-mind list. So your brand must be top of mind – not in top 3 but top 1.

Who wins?

So what do we do when the ‘moment of truth’ is moved to a greater extent from the physical store and online?

It’s hard to predict what the new controlling market players like Amazon and Alibaba will mean in the long run for the classic household and grocery brands and how we as consumers will act in our buying process.

Regardless, as brand-marketers we must relate to a new mindset in our way of going to the market and communicating, and I believe that the winners of the first battle will be the brands who work very focused on some of the key points below.

Seven good tips

  1. Think like a retailer

The stronger and the more direct the relationship with the consumer, the easier brands can get around Alexa.

It can be a successful permission strategy that allows you to communicate and sell your product directly or through small events like pop-up retail or concept stores that provide opportunities for creating relevant services and positive experiences for the consumer.

With e-commerce having taking place for almost 20 years, we saw similar responses like when Nike started building their own stores to create a direct relationship with their consumers rather than being dependent exclusively on retailers.

Of course, not all brands can be as offensive and the idea of kitchen roll brands should do something like this is obviously absurd. But the idea that brands start to think like retailers and thus come closer to their customers is not.

2. Strengthen the emotional ties

The power of the brand can only be measured from the receiver’s point of view. If the brand does not have a strong emotional contact with the target group, it will never be top of mind with Alexa’s future users.

The insight-based storytelling and branding has therefore never been more relevant, but with the physical store out of the equation, it is even more important to have a real role in the consumer’s life and create the necessary preference before the moment of purchase.

3. Drop many product variants

Fewer stock keeping units (SKUs) with even catchier brand names that are easy to remember and that match the way we order products via Alexa can be a way to avoid confusion at the moment of purchase.

If you are looking online for the Neutral laundry detergent brand today, you will have the choice of 8-10 variants and sizes. This will be a potential disaster for a consumer to cope with without visual stimuli.

4. Be clear in call-to-action

Amazon Prime remembers your previous purchases and therefore it is important to come first on the list so your brand is automatically suggested by Alexa at the next purchase.

Therefore, we can expect to see call-to-action, which is even more tactical and clear in the instruction of consumers in what to order: “Alexa, order Neutral liquid detergent for colored fabrics” instead of “Alexa, order detergent.”

5. Reward your customers

Everything indicates that Amazon’s algorithm will prioritize brands with the best user- ratings. Therefore, the number of stars your brand or product has at Amazon is crucial to how often Alexa will propose it at the moment of purchase.

We can expect to see an increased focus on creating extra good experiences with the brand including good customer service and calls to rate a brand on Amazon if you have had a good experience.

6. Think of Alexa as a marketing and content platform

The media strategy efforts will also continue to embrace Voice as a new pay-to-play element, and Voice Search Optimization must be an integral part of the overall search strategy as it will determine what brand Alexa will provide.

And like Google Search, Voice Search will be governed by the auction principle based on Alexa’s own algorithm.

7. Create relevant content

But Voice Search can also be used for anything else but just ordering a product. General Mills, in collaboration with Amazon, has developed a content platform for Betty Crocker, called ‘Ask Betty’, which contains tips for baking and cooking.

New thoughts, new opportunities, new challenges… Amazon knocks on the door and the only way is to make the most of it.

Tags: AlexaAmazon
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