Thierry Maillet

La croissance systémique d’un groupe d’acteurs sectoriels

« La plupart d’entre nous n’ont pas prévu la crise, faute d’une vision d’ensemble^[1]».

         Le paradigme de l’approche traditionnelle du marché qui trouve toujours son point d’équilibre grâce à une concurrence libre et parfaite a constitué la pierre angulaire de la pensée économique ces dernières décennies. Or, la survenance de la crise financière de 2008 et la difficulté criante des économistes à la prédire comme le reconnaissait humblement un des meilleurs économistes français souligne le retard actuel de la prise en compte des problématiques dans une démarche interdépendante et systémique.

L’application d’une vision intégrative à un secteur industriel particulier suggère toutefois l’existence d’un marketing de système. Celui-ci trouve son utilité dans l’approche autant collaborative que concurrentielle d’un groupe d’entreprises. Cette analyse prolonge celle de la géographie économique et des notions de district industriel que Michael Porter avait popularisé dans les années 1980 (lire chapitre XII, 5°§) pour la conduite des politiques marketing.

L’analyse de Michael Porter considérait toutefois chaque entreprise prise isolément ; or, l’utilisation croissante des nouvelles technologies dans une économie ouverte a poussé les entreprises à une collaboration croissante. Dans cette perspective, les outils d’analyse fondés sur la seule concurrence de chaque entreprise peut les pousser à ne pas collaborer bien qu’elles aient économiquement intérêt à le faire et cela pour coller au modèle proposé mais à rebours de leur intérêt immédiat.

Le marketing-système cherche au contraire à réguler en l’optimisant les caractéristiques d’un groupe d’entreprise qui interviennent chacune dans un secteur d’activité commun et dont la croissance repose plus sur la qualité de leur collaboration que sur leur mise en concurrence frontale.

Un cas concret existe dans un secteur d’activité particulier et connu sous le nom de commerce aéroportuaire ou « Travel Retail ». Il rassemble les industries du tourisme (la première industrie mondiale depuis 1997), du Luxe, du secteur aérien avec les infrastructures qui sont nécessaires à leur déploiement.

La notion de système s’applique ici car chaque industrie a besoin de l’autre pour fonctionner. L’industrie touristique est éminemment dépendante des transports aériens pour l’acheminement de ses clients. Les compagnies aériennes ne peuvent pas évoluer sans les infrastructures, au premier rang desquelles bien sûr, les Aéroports.  Les Aéroports n’ont eux-mêmes aucune raison d’exister sans les deux industries pré-citées. L’industrie du Luxe enfin réalise une part croissante de ses ventes dans les lieux de transit (boutiques dans les Aéroports) et dans les centre-ville durant les périodes de voyage d’affaires ou de vacances. L’émergence d’un système d’affaire lié au voyage et à la consommation de produits de luxe accompagne la redéfinition progressive des notions d’espace (les lieux de commerce) et de temps (les moments d’achats). La prise en compte de cette dimension spacio-temporelle est nécessaire pour comprendre le système du commerce aéroportuaire à l’œuvre. Or l’analyse traditionnelle des relations entre les différentes entreprises ne permettrait peut-être pas de saisir l’importance d’un système qui propulse, par exemple, l’Aéroport Charles de Gaulle à Paris en lieu de référence.

Cet Aéroport regroupe des leaders mondiaux qui tirent justement une partie de leur réussite de la force de leur collaboration. La littérature traditionnelle pourrait analyser chaque industrie séparément et verrait que la constitution de leaders mondiaux (LVMH, Air France-KLM) ou européens (ACCOR, Aéroports de Paris) répond à des schémas totalement différents.

Deux entreprises sont privées et le fruit des idées et ambitions d’entrepreneurs (LVMH et ACCOR). Une entreprise est encore à capitaux mixtes et conserve de ses origines publiques une relation différente au territoire comme à ses fournisseurs, (Air France). Enfin une entreprise est encore majoritairement publique (Aéroports de Paris) mais déjà cotée en Bourse.

Une approche systémique paraît possible en portant un regard large qui embrasse au-delà du seul couple produits-marchés. Il est nécessaire d’inclure des considérations industrielles (leurs intérêts technologiques sont croisés car les réseaux facilitent et fluidifient la collaboration), économiques pour maximiser les revenus et optimiser les coûts) et culturelle car l’utilisation commune de l’image de la France sert l’ensemble des parties concernées.

L’intérêt des entreprises se confond enfin avec celui des autorités publiques pour soutenir une activité économique importante pour le pays en terme d’images comme de retombées économiques.

La riche combinaison de ces quatre entreprises au sein d’une unité territoriale et historique peut-être le point de départ d’une réflexion plus large sur l’efficience de démarches collaboratives systémiques. 

Un véritable système marketing proche du système des affaires japonais rythmerait ainsi le développement d’un secteur industriel. Celui-ci doit alors son existence et puise sa croissance dans l’entrelacement judicieux des efforts des créateurs, du savoir-faire des techniciens et enfin de la maîtrise d’un langage propre par les organisations qui composent le système. Il est possible de suggérer que chaque système d’affaires aurait un niveau de capital social particulier et mesurable au sens donné par Robert Putnam^[2] lequel refléterait son niveau de confiance et donc de coopération, toutes deux gages d’un niveau plus élevé de réussite économique.

L’hypothèse de l’existence d’un capital social des entreprises propre au système de différents secteurs industriels permet de dépasser les paradoxes d’une relation encore trop cloisonnée entre les entreprises et les consommateurs.

« L’effort salutaire pour penser la construction des marchés conduit à examiner la diversité de ceux qui font « marcher les marchés » : les divers visages de l’offre (grandes organisations privées ou publiques, PME, TPE, professions libérales, …) et de la demande (client, consommateur, chaland, usager, patient, …) ainsi que la diversité des relations entre ces deux pôles de l’échange (transaction, relation, co-production, concurrence, coopération, réseaux, ….)^[3]».

---

[1] Thomas Philippon, « Lauréat du prix du jeune économiste » in Le Monde de l’Economie, 26 mai 2009, p. 2.

[2] Robert Putnam, « Bowling Alone, America’s Declining Social Capital », The Journal of Democracy, vol. 6, n°1, pp 65-78.

[3] Gilles Marion, « Résistance du consommateur et marketing : trois écueils et un horizon », 1° Colloque International, Consommation et résistance(s) des consommateurs, Paris, 28 novembre 2008.

 

LE MARKETING ET SON HISTOIRE : LA TABLE DES MATIERES

Merci Alain Risbourg pour votre question sur le blog de KINOA à propos du traitement du marketing B-to-B dans mon livre et dont la réponse est jointe au fil de la conversation.

Votre judicieuse question me donne aussi l'opportunité de publier la Table des Matières du livre pour que chacun comprenne peut-être plus aisément sa construction.

INTRODUCTION GENERALE

1.  Les diverses contributions à la construction du marketing   

2.  Une proposition de repères pour une histoire au temps long  

3.  Divulgation et Distinction ont alterné au XX^e siècle  

4.  Les propositions d’historisation du marketing   

5.  La porosité du marketing   

6.  La dynamique du marketing   

7.  L’histoire du marketing ou le mythe de Sisyphe réinventé.   

PREMIERE PARTIE

Le capitalisme de production ou l’introduction à la production de masse

Chapitre I : 1820 - 1860

Les débuts du marketing sont portés par la culture, le droit, l’innovation et la concurrence

1.  1820 : Les industriels proposent des biens de consommation et durables accessibles   

2.  1830 : La distribution s’organise à Paris,  une ville qui ne cesse de croître   

3.  1840 : l’exportation d’une activité culturelle : le théâtre   

4.  1851 : La concurrence suscitée par la première exposition universelle pousse à l’innovation et à la réglementation   

5.  1857 : La loi de protection du droit des marques anticipe la naissance formelle du marketing

 

Chapitre II 1860 - 1905

Le marketing de la seconde revolution industrielle et ses origines mêlées

1.  1860 : le marketing dans le Paris de « la Belle Epoque »  

2.  Les découvertes scientifiques sont le moteur de la seconde révolution industrielle

3.  La nouvelle place reconnue au vendeur  

4.  L’émergence de la figure du consommateur  

5.  L’intégration de la recherche scientifique au sein de l’entreprise.

  

Chapitre III : 1905 - 1915

Standardisation des produits et internationalisation des marchés

1.  Le développement d’une culture de l’ostentation  

2.  La standardisation de la production  

3.  Une amélioration de la protection du consommateur   

4.  Le marketing : une discipline appliquée de gestion  

5.  L’élaboration du marketing intègre progressivement les nouvelles sciences, la sociologie et la psychologie.   

Chapitre IV : 1915 – 1925

Les années de vive accélération de la production de masse

1. Les effets économiques bénéfiques de la première guerre mondiale 

2. 1920 – 1925 : l’automobile est le symbole d’une nouvelle civilisation de masse   

3. De la propagande en temps de guerre  aux relations publiques en temps de paix

4. Du "Fordisme" au "Sloanisme"

5.  1920 – 1925 : les années de diffusion d’un nouvel imaginaire   

6. la vitesse de circulation des biens et services

7.  Le crédit soutient la consommation avant d’être la cause de son effondrement.  

Chapitre V : 1925 – 1935

Premières années de valorisation du goût du consommateur

1.  Le design industriel, la première contribution au marketing sensoriel   

2.  La crise économique de 1929 accélère le basculement d’un marketing utilitariste vers un marketing plus créatif  

3.  La distribution généraliste accélère la diffusion de la production de masse   

4.  La distribution spécialisée conforte l’importance de la relation de  confiance dans la conquête du consommateur  

5.  Le cinéma, la photographie et la télévision démocratisent l’accès au beau et l’émergence de goûts communs.

Chapitre VI : 1935 – 1945

Une meilleure compréhension du consommateur consolide le marketing

1.  L’apport des cliniciens et des sociologues   

2.  Le rôle des sociétés d’études de marché dans la conduite de la politique marketing des entreprises  

3.  L’organisation de la discipline universitaire du marketing   

4.  La pyramide des besoins : une grille d’analyse clinique récupérée par le marketing   

5.  La République des consommateurs devient la nouvelle frontière américaine.

  

DEUXIEME PARTIE

Le capitalisme de consommation ou l’introduction à la consommation de masse : les Trente Glorieuses

Chapitre VII

1945 - 1950 : Le marketing, allié naturel d’une consommation érigée en action citoyenne

1.  La croissance de la consommation et l’émergence d’une société de loisirs   

2.  Le consommateur devient la pièce maîtresse dans la réflexion du marketing  

3.  L’opinion publique et le rôle croissant des sondages.  

Chapitre VIII : 1950 - 1955

Le prêt-à- porter et le réveil de l’Europe

1.  Les Missions de productivité : une réflexion collective amorcée par les pouvoirs publics   

2.  Le marketing mix du prêt-à-porter est élaboré par un petit groupe pionnier   

3.  Le marketing moderne consacre le rôle central de la presse féminine   

4.  Le marketing est le résultat d’un mélange, « un mix » réussi.

Chapitre IX : 1955 - 1960

De la culture industrielle à la culture-monde, pour une culture de marques

1.  La culture de masse, une nouvelle grille de lecture pour le marketing   

2.  Une culture-monde à la rencontre des cultures industrielle et de masse  

3.  Une salve de critiques instructives  

4.  La critique de la société de consommation était avant tout très concrète   

5.  La consolidation de la discipline du marketing.  

CHAPITRE X : 1960 - 1965

L’Europe, l’alimentation industrielle et  la grande distribution

1.  La « civilisation des mœurs» civilise le marketing   

2.  L’hypermarché, lieu de tous les désirs, réponse à tous les besoins  

3.  1962 : une année pivot dans la pratique du marketing

4. 1962 est aussi une année de réaction au rôle social du marketing

5. Le marketing : enjeu collectif ou technique utilitariste, l'introduction de la "Unique Selling Proposition"

6. L'émergence d'un marketing décalé

7. La démarche scientifique des universités

8. L'isolement relatif des écoles de commerce

9. Le produit a une durée de vie optimisée.

Chapitre XI 1965 - 1968 : 

La contre-culture engage le marketing dans une démarche esthétique

1.  La société de consommation est perçue comme de plus en plus étouffante   

2.  La contre-culture : une compréhensible critique de la société de consommation  

3. La contre-culture devient dominante

4.  La contre-culture, un élargissement sociétal des applications du marketing   

5.  Le marketing se rapproche de la société   

6.  Le mouvement de la contre-culture était nécessaire.

Chapitre XII : 1968 - 1973

La publicité est la parole culturelle dominante et les médias sont son porte-parole

1.  Les marques, actrices d’un rapprochement avec les nouvelles attentes de la société   

2.  Les marques : des mythes en devenir   

3.  La publicité a une influence grandissante   

4.  La notion de « positionnement » a changé la façon de communiquer des entreprises.

TROISIEME PARTIE : LE CAPITALISME EMOTIONNEL

Chapitre XIII : 1975 - 1980 

La valorisation des apparences

1.  L’embellissement passe par la valorisation du corps   

2.  Le rôle de l’Etat est essentiel pour des industries a priori futiles  

3.  Les produits de beauté, un marketing de projection  

4.  Le directeur marketing devient gestionnaire   

5.  La théorie du comportement du consommateur 

6.  L’apport de la stratégie au marketing.

CHAPITRE XIV : 1980 -1985

Les Années Marques, les Années Service

1.  Une deuxième mondialisation est en marche, la première du marketing 

2.  La télévision, principal modérateur du capitalisme émotionnel   

3.  Le marketing des services ou le marketing de la relation plutôt que de la transaction 

4.  Le marketing de la fidélisation  

5.  L’essor du marketing des collectivités publiques et des associations  

6.  Le marketing de la visibilité

7. Global brands et mégamarques.

CHAPITRE XV : 1985 -1990

Le Luxe : Nouvelle expression du bonheur ?

1.  Le changement est amorcé lors de la crise pétrolière   

2.  Le produit est conçu pour que la marque devienne globale   

3.  Le prix n’est plus pensé comme un avantage - compétitif mais comme un marqueur social  

5.  La distribution est progressivement réintégrée dans l’entreprise  

6.  De la communication à l’influence   

7.  L’analyse de la concurrence, nouvelle arme du marketing.

CHAPITRE XVI : 1990 -1995

Les Années de la "Rassurance"

1.  La « rassurance » une valeur de protection   

2.  L’expert est le nouvel ami (alibi ?) du directeur marketing   

3.  La menace environnementale et l’exigence de performance individuelle  

4.  Le marketing est partout au risque de devenir envahissant.   

5.  Le marketing doit engager un dialogue effectif avec le consommateur.  

CHAPITRE XVII : 1995 - 2000

Segmentation, Innovation, Disruption, et Low-Cost : les nouveaux habits du marketing

1.  Quatre chemins différents pour un même objectif : vendre  

2.  La segmentation générationnelle est une démarche attirante au risque de détourner le marketing de sa vocation initiale : la médiation de masse ?  

3.  Le vaste champ d’application du marketing générationnel  

4.  La quête de l’innovation peut-elle être la seule raison d’être du marketing au risque de devenir envahissante ?  

5.  La « Disruption » ou la domination d’un marketing de la marque  

6.  L’esthétisation des points de vente et l’impulsion du marketing expérientiel   

7.  L’accompagnement des nouveaux modes de vie liés à la mobilité va engendrer des nouvelles relations dans le mouvement aux marques  

8.  Le Low-Cost : une innovation majeure mais inattendue dans le paysage d’un marketing embourgeoisé dans les pays développés  

9.  Le Low-Cost est la reformulation du modèle fordiste des années 1910 – 1920.  

Chapitre XVIII : 1995 - 1998

Les industries de la connexion

1.  Le commerce électronique est avant tout un nouveau réseau de distribution  

2.  Amazon.com : le site de commerce électronique le plus populaire lancé avec un bien culturel ô combien traditionnel, le livre.   

3.  Ebay : le marché de l’occasion est monétisé à grande échelle  

4.  Les parties prenantes sont plus nombreuses dans « les conversations des marchés »  

5.  Le succès du commerce électronique ne sera pas aussi rapide qu’escompté mais fera évoluer la discipline du marketing.

Chapitre XIX : 1998 - 2003

Le marketing de la gratuité

1.  Google, une destinée unique obtenue avec des méthodes relativement traditionnelles  

2.  Le groupe démographique dominant contribue au succès initial de Google.  

3.  La presse joue bien un rôle fondateur dans la diffusion de la nouveauté  

4.  La notion de segmentation fut poussée à l’extrême par Google   

5.  Le marketing de la gratuité n’est pas un marketing gratuit.

Chapitre XX : 2003 - 2008

Le marketing de réseau

1.  L’émergence des réseaux sociaux influence l’orientation du marketing  

La tenaille du marketing 2.0

2.  Les jeux vidéo : leur réussite est liée à leur réseau  

3.  Le marketing 2.0 : un marketing de réseau ?   

4.  Une proposition de graduation de la participation des consommateurs dans le processus du marketing.

  

CHAPITRE XXI : 2010 ET APRES ?

Les limites du paradigme de l’innovation et l’apport du marketing considéré comme système

1.  Les limites du paradigme de l’innovation  

2.  Est-ce qu’une industrie mature peut encore innover ?   

3.  Les contradictions de l’innovation dans l’informatique  

4.  Les limites du modèle le plus récent de l’innovation en réseau : la critique du marketing de la Longue Traîne   

5.  Le marketing de réseau conduirait au marketing de système

6.  La croissance systémique d’un groupe d’acteurs sectoriels.

CONCLUSION GENERALE

Le marketing est la discipline de l’acclimatation

Le marketing est le meilleur agent de la démocratisation des sociétés.

 

TO IMPROVE PENETRATION, CHASE THE P GENERATION

To understand the challenge facing brand owners and distributors in domestic markets today, two fundamental issues must be taken into account

The first is that markets are becoming saturated with increasingly ordinary products, forcing suppliers to spend more to convince consumers to buy their not-so-ordinary products. Companies such as L'Oréal and Estée Lauder spend about 25–30% of their turnover on marketing and communication. Can such companies afford to increase their marketing spend, and if so, how should they go about it?

Secondly, not only has the number of products competing for marketing exposure increased, so has the number of media available. In the past television was the mass media by itself. In volume terms it remains a powerful medium, but what about the quality and purchasing power of the audience? If I want to reach the teenage market, for example, shouldn't I be looking more at investing in mobile phone marketing or the internet?

How will the changing nature of the marketing medium affect the content of the message to consumers? Could these changes eventually influence the nature of the product itself? To date the travel-retail industry has been slow to embrace new marketing techniques, partly because the retail offer remains focused on desire rather than necessity. Yet the arrival of new technologies and the saturation of consumer goods markets are tipping the balance towards necessity over desire.

In the early stages of travel-retail's development, it was logical that retailers and suppliers sought to exploit the novelty of travel. But today air travel is no longer a novelty, so is it wise for brands to remain focused on desire? Should suppliers and retailers continue to consider airports as exclusive locations where only exclusive brands are sold? Doing so will result in the kind of low penetration rates that are too often seen in many airport terminals, and will exclude too many passengers and potential customers from the point of sale.

Many big brands are already making a significant move from desire to necessity. The shift is affecting not only the mass-market but also the high-end. In the automotive industry the Toyota group is growing at double the rate in the market as a whole thanks to its hybrid models Prius and Lexus. In the cosmetics and skincare business a recent success story is Unilever's Dove which, in a first for a global brand, has introduced a marketing campaign showing real women as they are, without resorting to stylised images of unattainable beauty. That represented a significant change in the most emblematic sector of the luxury goods industry.

The more saturated the market, the more ordinary the product and the more differentiation the consumer requires. How can the point of difference be conveyed? Thanks to new wireless technologies suppliers and retailers can no longer keep information from their customers; any project is accessible thanks to internet search engines such as Google. So it is necessary for brands to involve their consumers in the "buzz" around a launch to encourage positive word-of-mouth coverage. Such a buzz enables consumers to play a key role. Invited into the process, they become part of the product or service. This has been called the "co-creation" of the product.

This emerging trend illustrates the increasing willingness of consumers to participate in areas that had previously been off-limits. The new consumer might be a 12-year-old surfing the internet or an 82-year-old going back to college to study. The Participation Generation will look more for products and services based on need rather than desire and will eventually have a dramatic impact on the traditional retail process.

What does this mean for travel-retail? In the coming years the market will almost certainly have to adapt to this new P Generation.

Airports, retailers and suppliers will have to communicate with their customers before they reach the airport. The more people arrange their flights themselves via the internet, the greater the opportunity to communicate with them directly. Marketing begins a long time before the customer arrrives at the shop.

NEW MARKETING STAKES FOR THE TRAVEL RETAIL

Our more recent chronicles have all shown dedicated actions that shall be taken by any actor in the Travel Retail industry, say Airports team, Retailers and Suppliers.
It has been even more interesting to collect reactions from these actors during the latest Tax-Free in Cannes late October. They were all agreeing on several major aspects :
1. Travel Retail is an industry by it-self and Heads of brands shall finally not looked at it as a complementary distribution channel but one by itself
2. This industry has to evolve from the traditional and too classic exclusive price advantage
3. New comers are still to enter but yet the spectacular increase of magnificent booths in Cannes from Fashion and Fine Food Suppliers has paved the way for next years.

However all these concerned and wills to move forward require dedicated marketing techniques that yet have to be developed within the channel.
It is an old story. One does not see nor want to see what is in front of its eyes just as evidence . Retailing in a travel environment is all about dealing with so many sort of people, age, sex, nationality, use of travel, ect …..
While marketing teams were still trying to understand purchase habits through traditional tools such as socio-demographics classification, one of the Operator leader, World Duty Free, decided to take it the other way and to bring a full experience to the consumer.
Look at what has been done at its Liquor Store in its Terminal 4 at Heathrow.
This natural evolution that any retailer is supposed to roll on now has also full impact on the entire marketing mix for Suppliers.

Traditional techniques can not work anymore

The very famous 4Ps have been invented in Harvard in 1949 while the University was closely working with Procter & Gamble, at that time and since then the most respected company for any marketer in consumer goods.
However some changes have happened and especially the incredible growth of consumer goods markets to a level that they are totally saturated with very often products that all look the same :
- a fragrance is launched every single day in the world
- a thousand of Chateaux in the Bordelais who still do not understand why they shoud do it the other way. Ask Chileans or Australians what branding means in wine.
- in the US there are 150 types of cereals for breakfast in any supermarket.
These elements are a very few from a tons showing how saturated are the markets in developed countries and the urge for suppliers and retailers to find out new ways to address, seduce and convince the consumer.

Trying to help clients on these elements for about ten years we came to the conclusion that the good old days will never come back. Even though consumers may still look for. Look what happen in the US with the popular success of a presidential candidate who was urging for traditional values. However the task is there : how can I benefit from the fantastic growth potential in future years using new tools that I have not try before.
From the 4Ps to the 4S’s
Assuming that the 4P’s were not that easy to use anymore we found necessary to suggest new and efficient ones.

From Product to Sense: consumers are expecting more than a simple product
Consumers are not looking anymore for a product, they have tons at home and in local markets. The product offer has to go beyond and makes sense to the customer. Is it unique, different, exceptional, what so ever that makes sense and convince the consumer.

From Price to Service: the same product can deserve different pricing if it is justified through the Service
Travel Retail will not be any more a price advantage. Two reasons can explain:
- Pricing can not be the ultimate strategy for new, innovative, trading up products
- Low-cost Travel Retail Locations will eventually happen. As the low-cost phenomenon is developing in any industrial sector it is logical that an Airport takes that opportunity. Once it will happen pricing can no longer be the ultimate strategy, so let’s start thinking about, prior to that venture.

From Place to Solution: consumers want easiness and customized approach, their own Solution
Location, Location, Location has been the hard-cry for any one working in Retail for more than a century. From the consumer point of view it could be translated as Solution, Solution, Solution meaning where ever I am and what ever I want I need to find it. Retail is less and less a destination operative marketing but an opportunistic and impulse oriented one.

From Promotion to Knowledge (Savoir in French): educated consumers are looking for knowledgeable products.
Thanks to the internet and other means of information we all know more and more about the products we want to buy. Ultimately for their health, Americans are 60% visiting a doctor after having consulted on line and checked the type of medicine they should take. On the other hand Japanese consumers are the most keen to understand in-depth how the product has been done, its reason why, ect.
It does not make them reluctant consumers. But reverse. Therefore Travel Retail will need to inform more and more about products and services sold. The bad news is that assuming the number of different nationalities and cultures it is a hard task. The good news is that many supports do exist prior they get to the store (the web site or travel agency, the airline, the airline magazines, etc …).

In the coming chronicles we will develop more each of the item and try to show and explain how the Travel Retail can benefit from the research that has already been done on other markets.

TRAVEL RETAIL IS ABOUT TIME AND SPACE

Let’s not forget the old good recipes.
Retail has always been about two things: consumer time dedication and point of sale location. So try to think about what that means for Travel Retail in the XXI° century.

A new critical approach : what is my consumer profile ?

Travel Retail is a wonderful opportunity : all nations, cultures, religions and ages in a same place !
It also has to be understood as a true “défi” for professionals . How can I address at the same time to all these potential consumers. Well first of all in agreeing to change paradigm.
Not trying anymore to classify these groups of passengers likewise on any local market and therefore accept that there is only one common thing all these consumers share.
1. The Time they are ready to share within the store
2. The Space, shops and brands offer to these passengers.
These new elements are not that easy to take into account. Generally products have always been developed for a segmented group population. These products are what specialists call projective marketing which mean I project my product for a segmented group.
To be honest theses products are getting harder to sell.
On reverse very often prestigious products belong to the community marketing approach.
It means that people buying these products share thoughts, values or ideas with the other buyers as well as the brand owner. Guess what these are the new products and services that sought after.

Once you accept that the community marketing can be efficient you also accept that trying to segment your product is not that efficient anymore. Therefore you also agree not to “judge your consumer” and to enter a more objective approach, say the Time and Space.

Consumer Attitude in the point of sale

Within the point of sale any consumer can only adopt four postures.

1. The new consumer : he/she has never been in contact with the brand and/or the product and in a very short period of time (less than a minute) he as to first, understand the offer and second be convinced to buy it.
a. It is a far to be easy and is going to be more and more important assuming more and more newcomers will travel. Unless the brand concentration is keeping its pace: less and less brand to address more and more consumers. Assuming the paradox of that trend the reason is profusion. Too many products, too little time to present them to the potential consumer. So let’s cut and simplify the offer.

2. The hurry consumer : he/she knows the brand/the product and just looks at Travel Retail as a commodity, a true opportunity service oriented. It is all about being a facilitator retail space and Operators have to understand and adapt to the most difficult : a hurry consumer does not dislike the brand or the product. On reverse he/she is so confident that the purchase can be that fast. Think Coca-Cola and the vending machine. We are all so confident in the product that we do not mind to buy it in a such un human environment. Opposite we appreciate and thank the Coca-Cola company to give us such an opportunity.
a. Having said that it is very difficult for the retailer and the brand to select places dedicated to Hurry consumers (say the Last Minute Gateside) vs Long Lasting or Browsers.

3. The Browser Consumer : It is a growing category for two major reasons : Security procedures and the hub strategy.
a. Security procedures : as we all know security procedures require early arrival at check-in and therefore a longer “lost” time within the Terminal. A true opportunity for retailers even though the negative aspects linked to security procedures (fear and stress) can be under productive for retailing.
b. The Hub Strategy : The recent merger between Air France and KLM has stressed the hub strategy, initiated more than twenty years ago in the US. Assuming that in Schipol more than 55% of passengers are connecting and not less than 40% in Charles de Gaulle these travellers have nothing else to do than browsing between the connecting flights.

4. The Expert Consumer : He or She are the specialists of the brand and product. Very often he comes to a purchase in a Travel Retail environment for the price advantage (the best example are Heavy sales in tobacco and alcohol) or/and the quality of the range. As an example, chocolates in Brussels, high-tech in Hong-Kong, cigars in Paris, alcohols in Madrid, clothes in Heathrow are several examples showing the value of thematic specialisation for Airports. It helps to capture frequent flyers and to some extent leisure if an adequate communication campaign is on air.

The passenger profiles shown above can very helpful to understand the new consumer within an Airport. However it is very hard to share these views with traditional marketers who still believe in the traditional segmentations.
Let’s present them Retailers. And why not start at Cannes, it is never too late, it is TFWA 20° anniversary.

THE EARLIER THE PASSENGER, THE BETTER

Chronique publiée dans Travel Retailer International de septembre/octobre 2004

Every single day we all receive e-mails from airlines and tourism web sites (N°1 sales on the web, just to say). On reverse I can’t remember any proposal for Travel Retail shopping experience. Is there any reason why the Travel Retail Industry is so shy at using the growing channel for travel booking; say internet ?
While the internet is more directed toward a tourist use there is one dedicated direct link to the business community which is also poorly used: the frequent flyers programs.
Consequently we will successively try to demonstrate the strong potential of these two channels to increase in-store passenger traffic and subsequently sales for the travel retail industry.

Internet : a wonderful opportunity … poorly used

Easyjet : 80% booking via the internet
Ryanair : 95% booking via the internet (1).

With more than 50 millions passengers yearly in Europe jointly these two companies have a fantastic leverage to increase the passengers’ flow through shops or sales on-board. Yet they haven’t done anything. And traditional companies neither. Nor with the so costly to manage frequent flyers programs (mentioned below).
More than that, in one of the less connected market in developed countries, say France a very recent study(2) shows that one out of four French buys on the internet. It is a positive element that demonstrates how strongly the internet is deeply changing the consumer habits. Well surprisingly nothing has been done yet by the Travel Retail industry.
It seems that taking into account the so strategic penetration rate issue both retailers and suppliers are giving away high potential.
Here comes a suggested approach:
1. Classical On-line advertising on major web sites (low-cost and travel)
2. On-line promotions related to products on sale in dedicated web stores or for dedicated destinations
3. Special rebates or deals linked to specific destinations or flights. (i.e : the less crowed mid-day offer higher rebates or a better deal. Fly to Dublin at 1.00 pm and we offer you the deo with the fragrance).

Internet is not the unique tool badly used, frequent flyers programs deserve a strong boost.

Frequent Flyers : from passengers to consumers

When American Airlines created the first program its unique objective was to retain passengers to fly with competitors. Today the AA Advantage program addresses to more than forty million members and not yet to consumers outside the airline while sometimes to hotel guests or rental car drivers.
Pity again because a high percentage of its members are passengers who belong to the “time-short/cash-rich” category. However nothing is seriously done to respond to the needs of these high-profile consumers.
On reverse from the internet suggested strategy which is volume oriented here we are more on the value side. The objective is to work on a dedicated amount of frequent flyers members and to maximize sales.
And it is possible as shown a long time ago Britannia the charter company was sending one month prior to departure to all its clients its on board catalogue. Sales were up to 36 US $ per passenger with the products delivered on the seat. On reverse at the N°2 company for on-board sales, British Airways sales do not reach the 8 US $.
The Britannia strategy was to maximize sales per passenger …. and it works.

These frequent flyers programs could easily be used to organize selected sales and here again are some suggestions :
1. Frequent Flyers could deserve an happy hour as the daily return flight is mainly from 5:30 to 8 pm, why not offer specifics to these members.
2. As these members receive by mail or via the internet a lot of information why not linked it with dedicated offers.
3. Assuming Operators have started there own card: BAA, Aelia and now Aldeasa, there is a lot to be done to engage cross-proposals with the frequent flyers programs.

Internet and Frequent Flyers are two examples showing that at the end of the day what so ever the way a passenger becomes a purchaser is the true objective.

A recent book(3) from Richard Bordenave marketing manager at United Biscuits France is suggesting that companies will have to understand that its true asset is its consumers not only there brands. Not to go that far that is what also suggests our complementary approach for the Travel Retail industry.
Travel Retail is about sales and not only image because the location is image by itself.
Airports are getting more and more luxurious and pleasant and therefore it is more important to dedicate marketing investment to the consumer and not only to the brand.
A lot of work seems to be on duty.

NOTES
1 : our chronicle upon Low Cost Airlines in the TRI may issue
2 : Study conducted by the CREDOC in june 2004 for the French Association of direct sales « Fédération des entreprises de vente à distance »
3 : Marque-Consommateur : le divorce, Editions EMS

DEDICATED PRODUCTS KEY TO INCREASE PENETRATION RATE

Chronique publiée dans Travel Retailer de juillet/août 2004

When Duty-Free shops were created in 1947 no one thought the tax benefit could end and therefore the major price advantage shall be replace by one or several others. Well yes it did happen. Duty-Free is not anymore in Europe. Therefore the move for the entire industry as a Retail Channel for Travellers has been understood but its requirements for a dedicated marketing mix has to be improved.

Penetration Rate : the main challenge for Retailers and Suppliers

Again and again.
Why penetration rate has to be our next frontier ?
Why shall it be the unique ratio to be considered ?

Easy to understand : Airports, Ferries or Border shops are not destination retail locations as it is for high streets or commercial centres. You do not decide on a Saturday afternoon to go to any Airport for shopping. It may happen within ten years likewise factory outlets but it is not the case yet.
Therefore retailers and suppliers have one unique objective: to capture as many passengers as they can while they are walking to the planes, on the boat or crossing the border.
While it is not a destination channel, a passenger loss is a 100% sales loss. He or She will not come back and all has to be done not to happen to often.
Therefore if price can not be the exclusive advantage how the marketing mix shall be organized.

Marketing Mix : a dedicated one is required for Travel Retail

Taking into account the 4P’s of the mix and assuming that the place and the price are known and under control, suppliers and retailers can only act on the product and the promotion. But is it always the case ? It seems not yet.
In a recent market study (1) passengers are up to one third to get bored in the shops (the retailer Nuance had mentioned in a study in 2002 that 25% of the passengers were not attracted by the existing shops offer).

Above that, up to 63% of the purchase are pre-planned, therefore summing the these two-thirds to the one-third previously mentioned shows that only dedicated products or promotions will boost sales and penetration apart from the natural traffic growth.
Increased turnover can only come from a different offer. Passengers will more and more look for products they can not find elsewhere but of course that retailers and suppliers communicate upon this specific offer.

Dedicated Products : how to organize a profitable offer ?

Questions always remain the same :
1. a dedicated product means less sales for my classic ones, therefore specific costs on development and marketing will impact my profitability.
Yes but it is always better to sell at a lower margin than to lose the sale to a competitor or even worse to an other category. In that case the loss may be more impactfull while for ever. And you can always be that persuasive that the increased sell in is required to slow the natural flow of loss per product and per year. Never forget that a company as innovative as 3M 20% of its annual turnover comes out from new launches.
Travel Retail can be a perfect test market to introduce new products that will then go on the local markets.

2. a dedicated Travel Retail product can not be produced with enough pieces to be profitable.
Maybe but to produce dedicated products per retail channel is an on going trend. While more and more consumers are on the internet, personalisation and service are getting more and more important. Production organisation will have to adapt itself to the market, not reverse.
3. a dedicated Travel Retail product will confuse my entire and already complicated mix
If your mix is already that complex that any specific offer per channel is hard to understand, that means that the problem is your too extended mix, not your new Travel Retail offer. Assuming your Brand, Finance and Production Managers will not be that happy to increase new dedicated products in your portfolio just tell them:
i. Thought N°1: At the N°1 Airport in the world (guess Heathrow) the highest sales increase are within the category with the highest degree of dedicated products: Beauty. And the retailer, logically announced to increase its dedicated space. The virtous circle.
ii. Thought N°2: In the make-up category dedicated products represent up to 30% of the total sales. Assuming the category is not doing that well what would it be with out these dedicated products.
In both cases dedicated products are required, either on an offensive approach to gain space or on a defensive one to maintain growth.

Dedicated Promotions : how to maintain a high degree of attractiveness ?

As shown above penetration has to be increased. And as many suppliers do not want to enter into dedicated products for the Travel Retail channel well let’s use the promotion tools.
As shown by our marketing model based upon the relationship between the consumer time and the retailer (2) any tool to increase Attractiveness and Impulse is required for an immediate higher penetration rate and therefore larger sales.
However all what has been mentioned will work only if :
1. Suppliers dedicate marketing time to present true innovative products or promotions and not the eighteen pouch, the twenty two duo pack or the new winning lottery. Sorry, sir your proposal is n°6 (this year) and 45° since I am in that position.
2. Retailers truly work to convince Airport Authorities and Airlines that advanced marketing is required to capture most of the passenger magic hour.
3. a commitment to all work together maybe through effective frequent flyers program to promote dedicated products and promotions. It works on high streets. There isn’t any reason why it could not be the case in the Travel Retail channel.

Notes:
1/ : « Inside the minds of Europe’s travelling consumers » published by the TFWA in February 2003
2/ the ASPI MODEL

LOW COST : A THREAT OR AN OPPORTUNITY FOR THE TRAVEL RETAIL INDUSTRY

Chronique publiée dans Travel Retailer International de mai/juin 2004

Is the Low Cost phenomenon a short trend or will it impact dramatically the entire airline industry and as a collateral the Travel Retail Industry.
Having said that, will it therefore be a threat or an opportunity or how can I make it an opportunity for my business.

Low-Cost : a proven business model going worldwide

After succeeding in Houston since the early seventies Southwest Airlines has become the fourth largest major airline in America. The N°1 Low Cost in the US flies more than 64 million passengers a year.
In Europe the model started in Dublin and Ryanair has now expanded European wide, with strong bases in Belgium and Germany.
More recently the phenomenon has moved to Asia-Pacific, first in Australia where Sir Richard Branson launched Virgin Blue and gained up to 30% of inland traffic. It is actually taking steps in Asia, especially Malaysia where Air Asia is growing quickly1 but also all around Southeast Asia (Indonesia, Filipinas) an also now Japan.
Of course China and India are the most expected markets in a near future.

If the model has proven to be successful some key elements have to be remembered:

1. A strong demographic base
Low Cost can only succeed in major cities.
In Europe except the London area which is the most travelling2 with up to more than a hundred passengers while the second urban centre (the Paris area) only reaches 70 million it will be hard to successfully start a true Low Cost.

2. A weak high speed train competition
Even though it is hard to answer what would have been Ryanair and Easyjet evolution with a high speed train network in the UK as developed as in Germany or France. Not to remember the failure to implement one between Dallas and Houston …. The N°1 route for Southwest.

3. A late reaction from Traditional Carriers
It took time to Traditional companies to establish competitive offer while they were working on the high contribution profile through the combined hub and alliance strategy.
a. Creating competitive low-cost
It is mostly a US and Australian strategy (Quantas, Delta, United) all have established there own low-cost.

b. Lowering prices on short-haul
The three stronger European carriers (Air France, British Airways and Lufthansa) have found more advantage to capitalize on there own brand, meanwhile offering less service at a lower price on national and short distance routes.

The Low-Cost Carriers average now around 25% in the two major markets worldwide and its rate of growth in Asia can easily project that level in a close future.

A new source of revenues for the TR industry thanks to newcomers

Having shown jointly the potential and limits of the low-cost its influence on traffic and therefore on the TR industry is indubitable.

1° Example: Increasing Traffic on existing routes
The entry of Easyjet on the London-Barcelona route has increased existing capacity from 600 KPAX in 1996 to 1,500 in 2001.
From the 900,000 extra-PAX Easyjet only flight 520,000 (60% of the new comers) and traditional carriers kept380,000.

2° Example: Creating Traffic on new seconday routes
It is mainly Ryanair in Europe or Jetblue in the US strategies to develop point to point on secondary airport.
When the Irish company started its second continental base on a secondary airport in the Francfort area, Francfort-Han has grown from nil in 2002 to two mio passengers in 2003. And 70% of the destinations were not served by Lufhtansa.

Low Cost Carriers increase the general amount of people flying, as what happened with first jets in the early sixties or more recently with pre-packed offer for the mobile industry. It moved from a mere 20 to 30% penetration rate to up to 80% in the UK thanks to a very wide approach, not exclusively toward the high contribution.
Low-Cost can attract a high level of new comers to Airports who would not have flown with the old traditional offer.

A new profile of consumers requires new offers from the TR industry

Low Cost companies bring new passengers but will they become consumers ?
In general the answer is Yes but not in the same terms neither for the same products.
The profile of Traditional carriers is Half Business, Half Leisure and retailers have apparently been able to offer a sufficiently wide range of products.
On reverse Low Cost Carriers are 25% Business and 75% Leisure but the supply has not changed to that extent in dedicated Airports (Luton, Stansted), dedicated Terminal (Charles de Gaulle 3) or within the same Airport (Barcelona).

Clearly Low Cost Passengers require new offers for several reasons. But eventually the new proposal should be the same than for Traditional Carriers when showing low rate of penetration in the shops.

1. Passenger profile is evolving whatever the carrier
A Nuance study mentioned in the professional press as in 2002 was showing that a quarter of the passengers were unsatisfied with the common offer in Airports.
As a continuum the retailer decided to launch its “LiveWorkPlay” at Syndey Quantas Domestic Terminal.
The retailer presented the place to answer the need of the home, office, sports and social worlds. It was a first step in a decisive direction. Higher sales will come from new Low Cost passengers as much as from actual travellers.

2. Passenger expectation is different
Going on a long-haul for vacation does reach a higher level of expectations than a one way from Luton to Charleroi.
Retailers have to adapt their offer while it is far to be the case, Charles de Gaulle 3 has the same liquors or fragrances than the Terminal 2.

3. Passenger dedicated time is different
Surprisingly Low Cost Carriers offer a major opportunity badly understood yet by the retailers and the suppliers. A
s shown by our marketing model based upon the relationship between the consumer time and the retailer space3 Low Cost passengers do spend a lot of time in waiting rooms (business lounges are unexpected) and would deserve an attractive retail space apart from the restaurant malls.

A new offer as a first step to be extended to all travellers

As shown above Low Cost passengers are not that different and will be less and less while the model is expanding internationally and growing market share on its established markets.
Therefore the three actors of the TR industry, say the Airports, the Retailers and the Suppliers have to sit and try to build up a new offer having in perspective that new passenger.
The exclusive and winning Wine, Fragrances and Tobacco combination is gone and the good old times will not come back.

Based on the Time and Space approach and bearing in mind that no one has to “judge a consumer” ( a Low Cost passenger is not poor neither badly educated). On reverse he is expecting:
- a high degree of Attractiveness to not even seat in the waiting room where wi-fi connections and CNN projections are major competitors not having mentioned the ipod and mp3’s.
- a true Service oriented proposal to help passengers with any potential demand as on high street from as simple as pre-packed products to dedicated portable products.
- Pleasure is the mastermind of a sale relationship and the easiest way to increase the sale per consumer. It has a long way to go yet in Airport points of sale whatever a highly business oriented Terminal or a major Leisure one.
- Last but not least Impulse is key to transform any contact in a sale. It is far to be the case yet.

To conclude, Low Cost passengers not only deserve a higher involvement from retailers but are definitely an interesting source of additional revenues.
They also represent the new passengers and to start building up a strong understanding will be the best help to increase sales to traditional ones.

If retailers and suppliers are not able to do so should the future be so different in Airports than in high street prior to Zara, H & M and others blockbusters ?

Is the answer that different ?