Tesco PLC — The Shape Of Corporate Websites To Come
July 31, 2009
I read a article that mentioned the new Tesco PLC website, so I took a look. Though I’ve reviewed many websites, Tesco’s is in a class by itself. First, look at the Home Page –
Lively, good use of graphics for highlighting key navigation themes. I like the Fast Find in the upper left. Each link takes you to a page that has a similar graphical theme. Note also the effective use of navigation menus throughout the page. I next clicked on Talking Tesco in the top menu on the far right.
Now this is an example of stakeholder engagement. Note the stakeholder groups in the graphic; each has an opportunity to express their comments. Well done indeed.
Next on the About Us page there is a navigation graphic for the Annual Review. This is more than the typical Annual Report pages –
This is a benchmark for making it easy for visitors to access a wealth of information about the performance of the company. Some key items –
- CEO communication
- Ability to view summary information and as much detail as you wish
- Build your own report
- Interactive charting (this offers many options to view a wide variety of charts)
Very comprehensive but there are tools to let you sort through to meet your needs.
There is more on this site that is unique. For example Tesco is an international company. To help you understand where they do business, Tesco provides an interactive map.
Click on the icons on the map and you are able to drill down to more detailed information. There is additional commentary about the location along with images.
There is much more to access on this site such as the Our History page. Another example of Tesco’s effective use of graphics and narrative.
I could go on but perhaps another posting would be appropriate. I will end with a reference to Tesco’s display of Key Performance Indicators. They clearly show their menu of indicators and how they performed against them.
Well done Tesco for a website that provides users with open and effective communications.
Private Label Brands Show Impressive Growth
July 30, 2009
According to a U.S. study by Mintel, private label food product introductions in 2009 made up 25% of all food product launches. In 2005, they only comprised 13% of all food product introductions on retail shelves.
In 2008, private label food sales grew by 9.3% versus 4.5% for branded food product sales. Mintel reports that private label food sales are expected to grow another 8.1% in 2009. Should branded food products be worried? Is this a trend that could (or already is) spilling over into other categories?
Certainly, the recession drove some of the shift from branded to private label food products among U.S. consumers. The question is whether or not consumers will be satisfied enough with private label brands to stay loyal to them when the economy recovers.
The other factor to consider is the amount of information consumers have access to in the 21st century. There is less risk associated with purchasing a private label brand for the first time because consumers have learned that often the difference between private label and branded products is negligible or doesn’t exist at all. For branded products that are competing directly with private label for the same consumer dollars and retail shelf space, this is a problem area. Suddenly, branded products must find ways to differentiate themselves as truly better than private label products or as offering a distinctly superior value than similar private label products. It’s a competitive factor that most branded product managers could ignore ten years ago. Branded products still held a perception of superiority in quality a decade ago. That perception has all but disappeared in 2009.
A third factor to consider is the variety of private label products that are available in the 21st century. As CSNews.com explains, private label products are being introduced as more than just copycats of existing branded products. Today, consumers can find a wide variety of private label products to choose from that often meet perceived needs that branded products don’t cater to.
Finally, private label products today are not quite as “private” as they once were. Brands like Sam’s Club and Equate are accepted as viable competitors to consumer brands that have been around for generations. A private label brand that has a direct association with a well-known brand (e.g., Walmart or Target) can offer the same sense of trust and security to consumers making purchase decisions without the advertising dollars backing them. It’s an interesting challenge for branded products, and it’s one they’ve never really faced before.
When the recession fades, will consumers remain loyal to private label products? My guess is yes. What’s your prediction?
Image: Flickr
Is China’s Tuangou or “Team Buying” Concept the New Social Networking Hub?
July 30, 2009
So… you see a new car that you want, but it’s a little out of your price range. Of course, you’d be willing to negotiate if you knew the dealer would give you a fair but reasonable price. Do you go for it, haggling him down to a number that you can comfortably afford? If you decide to pursue it, you might well get it – - and a few hundred of your friends might decide to join you.
Some of China’s consumers actively participate in huge team buying clubs called “tuangou’s” where they negotiate, haggle and convince retailers to lower their merchandise to a more affordable price. In the process, the consumer’s success means success for the entire group. The team buying concept that they practice demands that the retailer honors ALL participants of the group by giving them all the same fair price. For example, that means if you negotiate a couch from $1500.00 down to $500.00, the retailer will sell the couch to all members of the team for $500.00. It’s a win-win situation for both parties and a huge boost in confidence for the consumer!
China’s bartering teams or “tuangou” emerged in force over five years ago. The concept has taken off well, becoming quite popular and more preferred by Chinese consumers than going it alone with retailers. Also growing are the numbers of forums and web sites where these consumers meet, talk and strategize about their next planned purchase and buying power, where they also select a leader and determine what amount they are willing to pay – or not pay – for the item they all want.
Retailers closely monitor sites like Qeeka.com, and other consumer forums and chat rooms to see what people are buzzing about. They plan their own sales and marketing strategies based on the information they get from these sites. They prepare to do negotiation battles with the tuangou.
Social networks are quickly cropping up on Facebook with friends clusters who are banding together with their efforts. The largest Facebook friends network, Twangu, currently has over 1,000 users in its network. Almost in an eBay fashion, the portal is set up so that retailers have the opportunity to find customers and vice-versa.
(From Twangu’s Facebook page:)
Get volume discounts for the stuff you want by shopping as a team! Build your shopping team and watch thousands of vendors bid on our team’s business.
How does it work?
1. User A sets up a group buy and the terms of the buy
2. User B-Z joins the team
3. Twangu makes the team official and sends it out to vendors
4. Thousands of vendors freak out and bid on the business
5. Low vendor bid wins!
The bigger the shopping teams, the bigger the savings. Forget the other auction sites, and start Twangu’ing!
The potential for the group to grow is exponential on a social networking site like Facebook, but add to that the inviting addenda of bargain hunting, saving money and deal finding and the potential becomes even greater. The power of social networking with this type of audience can be quite influential. What retailer would NOT want to be invited in or pitched against in pursuit of the best (or fairest) price?
Do you think the social networking platform in this concept is going to only be successful in China? Do you think it could thrive and do well in any other country?
Several companies have tried to start group buying sites in America and Europe yet most of them failed due to a sheer lack of interest from consumers. The owner of StoreMob.com didn’t think so, after the idea didn’t go over well with the Americans or the Europeans.
“I had read about it in China and thought maybe it would work over here, but it didn’t work out too well,” said Eliot Sykes, founder of UK-based StoreMob.com, which is now inactive. “I am not sure people’s attitudes over here are right for it.” (CNN news article)
Why is that, do you think? A lack of interest? Too much (or not enough) competition? Perhaps not enough social media exposure?
I think that social media and social networking is the perfect platform to bring attention to a concept that sounds phenomenal. After all, social networking is based on the premise of establishing relationships, sharing information, giving advice, learning from mistakes, celebrating, sharing and creating. That’s what we all do on Facebook and Twitter, isn’t it? Share information, give warnings, advice, etc. Wouldn’t it then be befitting that a place where social networkers join forces and participate in an action that benefits them all, that it would almost guarantee success?
What do you think? Can it, would it actually work?
The New GM: A Tale Of Two Websites
July 29, 2009
I recently wrote about the demise of General Motors. Now that the bankruptcy has advanced I decided to take another look. There are some surprises.
First, the main site is impressive in its attempts to communicate a new image. Look at the Mission Page:
Wow, what a bankruptcy can do to corporate websites.
Note the use of Web 2.0, Facebook, Twitter — nice. Also lots of information on progress, commentaries and news. It is interactive; you are able to join in discussions. Nicely designed and an obvious intent to rebuild the company’s reputation with potential customers.
Next I wanted to see the Corporate Governance section. It took me a while but I finally found it.
It is nestled in the Corporate Responsibility Report where there is a rich menu of videos.
Sure, the company is going through a major organizational change, but Corporate Governance should be more prominent and more comprehensive . On Corporate Governance – Leadership are the following links–
- Read more on GM’s Corporate Governance documents >>
- Read more on GM’s Political Contributions Policy >>
- Read more on GM’s Board of Directors >>
- Read the complete charters of the Board Committees >>
- Read more on GM’s Winning With Integrity: Our Values and Guidelines for Employee Conduct >>
If you click on any of these you get– “We’re Sorry. The page you requested is not available.” Seems someone overlooked this section, and not reassuring about GM’s commitment to Corporate Governance.
Now for the second website. On the Investor page is this statement–
For more information regarding securities issued by Motors Liquidation Company (formerly named “General Motors Corporation”), click here to leave the GM website and be redirected to the Motors Liquidation Company website.
OK, I clicked here and it took me to the second site–
Looks like something from the 1990′s–no Web 2.0 here. Then there is this statement on this page–
Welcome to the Motors Liquidation Company Information web site.
IMPORTANT NOTICE
Management continues to remind investors of its strong belief that there will be no value for the common stockholders in the bankruptcy liquidation process, even under the most optimistic of scenarios. Stockholders of a company in chapter 11 generally receive value only if all claims of the company’s secured and unsecured creditors are fully satisfied. In this case, management strongly believes all such claims will not be fully satisfied, leading to its conclusion that the common stock will have no value.
I’m not a bankruptcy attorney, but I think there would not be a problem with saying something along the lines of “We appreciate your investment in GM and we tried everything before going into bankruptcy. We deeply regret any losses you have incurred.” Perhaps even a chronology of all efforts to save the company. Instead investors get this terse cold statement.
Another suggestion for GM would be to kill the page whose headline reads–
Why bother? A company going through the massive change that GM is experiencing is likely to have overlooked some things. But GM dropping the ball on Corporate Governance and lack of any compassion for former investors is telling. GM’s website is a critical communications medium. They did a good job on using it to retain existing customers and getting new customers but the poor sister site is regrettable.
Sweden’s Trelleborg Group: About, Risk and Governance
July 28, 2009
Eye appeal is important for selling houses, and it applies to websites too. Eye appeal was my first reaction to Trelleborg Group’s website –
Uncluttered, well laid out, tells what the company is about and links to key information. OK so far but is there “steak behind the sizzle”?
Yes there is content (steak) behind the good looks.
For example, the About Us page has a comprehensive menu of links to more information on the company. Below the picture, this page has the following information –
- Our Business Concept (links to Business Strategy) Read more about our Business Concept
- Our Core Values Read more about our Core Values
- Our Market Read more about Our Market
- Our People
- Our Business Areas Trelleborg Engineered Systems, Trelleborg Automotive, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. Read more
- Virtual tour Learn more about our unique solutions by taking a virtual tour. (Nice Flash Tour)
Nice menu of information to get a better understanding of the company.
Other Items of Note
The About Us page has a link to Code Of Conduct –
This is an example of “Tone at the Top”, a short note promoting the Code signed by the CEO and the Chairman. There is more on this page–
How to apply the code
Every employee will receive a copy of the Code of Conduct and needs to understand and comply with it. The Code of Conduct organizes and summarizes existing Trelleborg policies and should be used as a support tool laying down the principles on which our day-to-day work is based.
Whistleblower policy
We have a system accessible to all employees for raising integrity concerns.
The 7 Golden Principles
What these principles imply in practice for Trelleborg’s employees and suppliers is described under three headings:
Trelleborg doesn’t just publish a Code of Conduct. They provide guidance concerning what the C-Suite expects employees and suppliers need to do to be in compliance with it. Other companies would do well to use Trelleborg’s approach as a benchmark for developing their own process.
Trelleborg has one of the best descriptions of Risk Management that I have seen –
However, to read the full description, you need to download a PDF The full Risk Management section from Annual Report 2008 (pdf). Suggestion for Trelleborg–make this more prominent via HTML.
Good job Trelleborg Group for a well designed website with rich content.
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