“What scares me about this is that you know more about my customers after three months than I know after 30 years.” — Lord MacLaurin, Tesco’s Chairman (1994).
The “deadly silence”, as Clive Humby described it, which followed his presentation felt endless. It was broken by Lord MacLaurin who uttered the memorable line quoted above.
The analysis of the Clubcard trials presented by Humby, Tim Mason and Grant Harrison, to the Tesco board of directors on 22 November 1994 shattered some long held assumptions. What compelled most was the realization that Tesco could become UK’s market leader by replicating the sales growth Clubcard had achieved during trial.
Clubcard was launched a few months after the presentation. Tesco subsequently grew at a faster pace than competitors, to become UK’s largest retailer. Today one in three UK households has a Clubcard, and Tesco is recognized within the industry as the most successful exponent of loyalty marketing.
Tesco, recognizing the competitive advantage they acquired through their partnership with Dunnhumby, strengthened and protected it over the years. In 2001 they bought a 53% stake in Dunnhumby, and increased this holding to 84% in 2006. By 2010, Clive Humby and his wife Edwina Dunn had sold their entire stake for a total value of approximately £93million, and in October 2010 they resigned from the company, remaining non-executive directors till early 2013.
Note: To find content on MarketingMind type the acronym ‘MM’ followed by your query into the search bar. For example, if you enter ‘mm consumer analytics’ into Chrome’s search bar, relevant pages from MarketingMind will appear in Google’s result pages.
Business Intelligence dashboard. A cloud-based visualization solution.
Marketing has changed. More so in practical terms, and marketing education is lagging.
The fundamental change lies in the application of analytics and research. Every aspect of the marketing mix can be sensed, tracked and measured.
That does not mean that marketers need to become expert statisticians. We don't need to learn to develop marketing mix models or create perceptual maps. But we should be able to understand and interpret them.
MarketingMind helps. But the real challenge lies in developing expertise in the interpretation and the application of market intelligence.
The Destiny market simulator was developed in response to this challenge. Traversing business years within days, it imparts a concentrated dose of analytics-based strategic marketing experiences.
Like fighter pilots, marketers too can be trained with combat simulators that authentically reflect market realities.
But be careful. There are plenty of toys that masquerade as simulators.
Destiny is unique. It is an authentic FMCG (CPG) market simulator that accurately imitates the way consumers shop, and replicates the reports and information that marketers use at leading consumer marketing firms.
While in a classroom setting you are pitted against others, as an independent learner, you get to play against the computer. Either way you learn to implement effective marketing strategies, develop an understanding of what drives store choice and brand choice, and become proficient in the use of market knowledge and financial data for day-to-day business decisions.