Hello… welcome to our latest #MontageMashup, where each week we bring you the latest news and views from across the marketing industry. In this week’s #MontageMashup, we take a look at Amazon’s price reductions at Whole Foods, the impact on sales of baking products with the start of The Great British Bake Off, Asda’s Isle of Wight faux pas and more! So, let’s get started…
Amazon cuts prices at Whole Foods
In Amazon’s first full day in control of grocer Whole Foods, prices have already been slashed on a large number of items. There are 7 UK based Whole Foods stores, with prices dropping by up to 33%.Items such as bananas dropped from £1.79 p/kg to £1.20 p/kg, whilst organic vine tomatoes fell from £3.49 to £2.40 and organic beef steak mince from £5.89 for 380g to just £3.99. These reductions in price could well put yet more pressure on UK supermarkets, especially as they come at a time when supermarkets are already battling against rising costs. Amazon has already stated it intends to sell Whole Foods’ own-brands on Amazon Fresh, Prime Pantry and Prime Now giving even more cause for concern for traditional supermarkets.
Surge in sales of baking equipment with return of GBBO
Today marks the beginning of the latest series of The Great British Bake Off (GBBO), the first on Channel 4 and the first without the iconic Mary Berry. However, despite the furore over the show moving from BBC to Channel 4, there is still quite clearly a big interest in it; it’s already having an impact on sales of baking equipment in the UK. John Lewis has said that it has seen a ‘huge spike’ in sales, with items such as spoons and spatulas up 50% and 42% respectively, whilst Paul Hollywood cookie cutters are up 50% and cookbooks and stands up 18%. According to figures from Mintel, between 2009 and 2014 annual baking sales rose from £523m to £1.7bn, largely thanks to the popularity of cooking shows. Emily Wimborne, cookshop buyer for John Lewis has said: “we’re expecting to see sales follow the theme of the week throughout the series, as customers attempt to make their own showstoppers at home.”
Will you be inspired by the new series of GBBO? Or will you be avoiding the series now it has moved to Channel 4?
Asda’s Isle of Wight embarrassing mistake
Last week saw the launch of Asda’s first store on the Isle of Wight, in the main town of Newport. To celebrate, the supermarket created 10,000 special edition bags that shoppers could buy. However, residents spotted that the bags had actually been printed with the misspelling of ‘Isle of White’. A spokeswoman for Asda has said: “this was a genuine printing error and we’re in the process of reproducing the exclusive design to get back on sale as quickly as possible. We’re hanging our heads for making such a silly mistake on our bags for life for our new Isle of Wight store.”
Image: Isle of Wight Radio
NHS to trial grocery discounts
The NHS is looking to introduce an initiative that will reward people who complete their target number of steps per day with discounts at local shops, including supermarkets. Initially, the idea will be trialled in Halton Lea, which is one of 10 housing developments taking part in NHS England’s Healthy New Towns programme, launched to find ways to tackle the problem of obesity in the UK. People in the area can download an app which measures their step count and unlocks potential discounts, it is thought that the discounts will only apply to ‘healthy’ foods such as fruit and vegetables. National Obesity Forum chair Tam Fry has said the initiative would cost ‘peanuts’ compared with the amount the NHS has to spend on obesity-related health problems each year and that “it will suit stores too because fruit & veg could be a loss leader to get people in – they will get discounts on those products but they may buy other things as well.”
To celebrate the launch of its new kids app, Virgin Media took over London’s Kings Cross Square with a giant trampoline bed. The app has been designed specifically for three to six-year-olds and allows users to stream shows, play games and read books in a safe environment, free from any ads or in-app purchases. Chief Digital Entertainment Officer at Virgin Media David Bouchier has said: “the demographic watch on-demand programming for the majority of their entertainment experience” and that the app had been designed “to follow that audience.” Bouchier also added that users cannot stray outside of the app interface and that it is a “true digital nanny which a parent or guardian can feel very safe and confident about letting their child in front of.”
Don’t forget to check out next week’s #MontageMashup, right here on the blog!