Warning! Traffic diverted! Business Days 2009 (Part 2)

On the morning of the second day at the Business Days conference of Lánchíd Klub and Trade magazine, held on 30 September-2 October in Tapolca, we examined how the crisis changed consumption, shopping and retail. Sándor Baja, LG’s operative director was the moderator of the morning session. He started his opening presentation by stating that these days the availability of cash flow was more important for company management than profit, because liquidity became a crisis advantage. LG uses industry-retail data flow to optimise sales forecasts – the result is a hundred million dollars worth of cash flow advantage. Péter Boros, commercial director of CO-OP Hungary and Attila Geyer, managing director of PrestonPartner introduced COOP’s information technology developments. A unique system was designed for COOP’s needs that facilitates the central control of stocks, the setting of standard store systems and the usage of a data warehouse. The store system is up and running in 500 stores. Romulus Steinbinder, Synergon Retail Systems Kft.’s managing director told that they have been developing their Delphi-based, MS-SQL-data base, SRS retail system since 2000. Their goal is to provide complete management by offering an IT infrastructure, a constant team of experts, reliable servicing and EDI services. Electronic shelf label is a novelty in Synergon’s portfolio: Taggy connects to the store’s IT system, receives, and updates information; the different tools communicate with each other using a Wi-Fi system. Krisztina Vatai, a leading expert of GS1 Magyarország pointed out that standards were the lingua franca for effective information exchange between suppliers and retailers. GSDN is a global data synchronisation network that connects 23 databanks all over the world, making it possible to share data from 213 retail chains, 19,479 suppliers and more than 4 million products. Domestic data synchronisation background is provided by the GS1Perfect data bank, developed by GS1 Magyarország. László Csorba, supply chain manager of Metro Kereskedelmi Kft. continued by introducing the retailers’ side. Each member of the product path has the same interest – to find the way for sustainable growth. Two ways are possible to achieve this: selling more or selling better. Effective electronic communication between supplier and retailer may not be visible to consumers, but its results are better service, better stock availability and better or quicker shopping. Attila Varga, systems support manager of Coca-Cola HBC Magyarország talked about the process of introducing data synchronisation. One of their long-term goals is the paperless office. Today leading companies adapt GSDN, but as the number of users grows a critical mass is reached, when joining the system becomes a prerequisite of remaining competitive. Coca-Cola HBC developed a SAP-compatible system called DAISy, through which data can be published and connecting the data bank is secure. The next section, with the focus on packaging, was moderated by Dr András Köves, the managing director of Bako Hungaria. In his introduction he told that presenting products was a form of art, while packaging represented an added value as well – thereby affecting shopping. Packaging is an important element of product cost, since secondary use, storability, etc. are all represented in product price. According to Zoltán Tóth, product innovation group leader of STI Petőfi Nyomda new packaging is half a success for a product. They present packaging designs to their customers using 3D technology and special animations, thereby reducing the time needed for innovation and facilitating effective decision-making and a quick appearance on the market: the average innovation process is reduced form 14 to 8 weeks. Judit Tóthy, trade marketing manager of Heineken Hungária spoke about the environmentally friendly solutions of Hungarian breweries. About one third of domestic beer sales are realised in aluminium cans and this segment keeps growing. At different events, the company appears with reusable plastic beer glasses and collecting points, reducing the volume of waste. Together with ÖkoPannon, they support the selective collection of waste: the increasingly popular aluminium cans are 95%-recyclable. Tamás Merész, trade marketing and business development director of Coca-Cola HBC Magyarország spoke about sensory perception. He highlighted the dominance of seeing in conscious perception: this is one of the reasons behind the growing popularity of aseptic PET products on the non-alcoholic beverage market. He presented the different production phases by showing a video film, which shed light on how the latest technology is used to put some of their products in aseptic bottles. At the meeting of the Trade Marketing Klub, customer marketing leader of Unilever Magyarország, Petra Korda emphasised that the gist of marketing activity was to control products’ entry to the market. This task is too important to be dealt with by marketing experts only, because exponential marketing value can only be created if the complete production structure is consumer-oriented. Exponential marketing focuses on planning the communication for the complete decision-making process of the consumer. A graphic example for this was the success of the “Delikát8-Cook a playground!” programme. In the evening, the Gala dinner refreshed all the participants. Ernő Berki, retiring managing director of Kaisers was presented Lánchíd Klub’s lifetime achievement award. István Horváth, managing director of Nagel Hungária Kft. won the main prize of the lottery, a one-week luxury boat trip for two, courtesy of Tensi and Locomotiv Travel. On the third day of the Business Days 2009 conference of Lánchíd Klub and Trade magazine (on 2 October), new communication solutions were in the centre of attention. After watching funny video footages to wake participants up, the moderator of the morning session, György Földesi, strategic director of Fonte Viva welcomed the participants. The first presenter was Gábor Pukler, innovation and business development director of Magyar Telekom. He spoke about the yet unused potential in mobile phones. An increasing number of people use Mobile Shopping services – to buy parking tickets, motorway vignettes or lottery tickets. Since practically everyone has a mobile phone, there is huge potential in this service. Those who want to use their mobiles like a direct debit card can use the Mobile Payment service. Magyar Telekom and the city of Szolnok have been cooperating in a long-term development programme in Szandaszőlős called T-City, testing new ideas and services. For instance, they plan to turn a Coop store into a Future Store, which would offer services like self-scanning, electronic shelf label or intelligent payment solutions. Ákos Szabó, strategic and business development leader of M Factory highlighted that from media channels only mobile marketing guaranteed a 90-percent reach, together with a high level of targetability and measurability. Unlike traditional mass media, a profile-based communication is made possible where the target group can be reached in a behaviour-based way – no wonder that more and more companies use mobile promotions. Mobile coupon service is another novelty – a measurable, personal and environmentally friendly solution. Tamás Pálóczi, managing director of Mood Média told that smelling was the most complex way of perception. Scents generate feelings and affect our instincts. It is not by accident that they are perfect for influencing consumers’ mood. The goal is to create harmony: design, music, scents, colours, lights, furniture, staff and products achieve the desired effect together. Scent marketing can play a different role in different shop types; a store or a brand can even have its own, unique scent. Tímea Mege, marketing director of Rewart Kft. used the STR8 brand’s promotion to illustrate the power of free-to-choose experience gifts. Those who bought a product could register and had the chance to win one of the 1,000 exciting programmes. It was the winners who could decide which type of programme they wanted – the campaign generated sales way above the expectations. The key to the success was providing customers with exciting programmes in a cost-effective way. Péter Faludi TV2’s head of sales department emphasised that 2009 was the year of rapid adaptability. Television remains to be the most effective medium and reaches the most people. TV channels’ goal is to win as many loyal viewers as possible while advertisers’ goal is to differentiate themselves from others. In 2005, TV2 introduced its private label: BRANDcare. It offers tailor-made services to advertised products or services. Since content is the heart and soul of television, brands’ image can be made stronger by connecting them to a positive brand, for instance to a popular TV programme. Katalin Miczinkó, Ringier’s advertising director said that advertisers’ expect more and more from media. They want cheap and internationally tested, high-penetration campaigns. Television still dominates the typical media mix, despite that small TV channels’ penetration is far below that of leading national daily newspapers. According to her, a combined use of different media results in reaching more people and more of them remember the messages; in certain cases 30 percent more consumers are reached by a joint TV-printed press campaign. Zsuzsa Mihálszki, PR manager of TNS Media Intelligence told that the Hungarian advertising market will not reach 2008’s level of spending until 2014 and its future largely relies on the economic performance of the bank/car/FMCG sectors. Advertising costs fell by 7.4 percent in the first six months of 2009. The FMCG sector spent below the average, sinking to the level of 2005, while retailers slightly increased spending. Dr. Vilmos Csányi, academician and ethologist and Bence Tarr cultural anthropologist closed the event with thought-provoking presentations. Professor Csányi said it was difficult to talk about the future of communication, because thinking about the future was based on representations of the past. Things formerly considered impossible are now everyday reality. Bence Tarr highlighted that possible developments in the human behaviour of the future would be decisive in the business sphere. One of the prime movers of consumer behaviour is fear from the unknown and the distrust rooted in it. Only detailed information about the products and credible communication can make these disappear. In Mr Tarr’s opinion, only ethical companies will remain market leaders in the long run.