The Teenage Market

Brothers Tom and Joe Barrett created the Teenage Market in Stockport to give entrepreneurs and performers a chance to share their products and skills with consumers. In their first market 70 young people ‘produced’ the teenage market along with 100’s of mainly young consumers.

44% of the young traders had never visited the market before but 53% are now considering it as a career option.

One trader, local artist Lucy Shaw, is funding her advanced studies through her business.

The Teenage Market is being offered, through licence, as a real world counterbalance to the growth of the digital marketplace.

Their on-line portal, driven by WordPress (another Stockport business), allows traders and performers to link and collaborate but always results in a physical teenage market event. It also allows market managers to ‘manage’ the mix of the event – in terms of the type of retail and performance.

Additionally the licence offers full marketing, promotion and other support.

The licence is £700 per year or £1000 for two years

A fantastic innovation. You can find out more at www.theteenagemarket.com

Finally, I was delighted to hear that Tom is a graduate of Manchester Metropolitan University. Tom and Joe told their story to conference delegates at the National Association of British Market Authorities Annual Conference today in Torquay.

20130923-174457.jpg

Place Branding and Marketing in Ireland

Today, Ireland’s Sunday Business Show on Today FM (presented by Cónáll O’ Morian) had a special feature on place marketing and branding. I was invited to contribute to a panel discussion along with Joanne Grehan, CEO of Mayo County Enterprise, Paul Keyes CEO of Team Sligo and Eoghan Predergast who is leading the marketing of Limerick. This blog takes a look at current place marketing activities in Ireland.

Mayo County Enterprises is behind “Recipes for success: The business of food“, an initiative to create a county level food vision.

Team Sligo is a Chamber of Commerce movement to promote enterprise and tourism and Sligo as “a location for new, expanding and relocating businesses” and by 2014 aims to be the most improved destination in Ireland for visitor numbers. It’s slogan is “Sligo: set your spirit free”.

Finally, the Limerick Marketing Company aims to double visitor numbers and income as Ireland’s first dedicated place marketing company. The marketing of Limerick is a strategic objective of the Limerick 2030 spatial and economic plan.

Whilst these organisations, partnerships or initiatives may be relatively new, the process of promoting places “has been, practiced consciously or unconsciously for as long as cities have competed with each other” (Kavaratzis, 2008). Ever since roads, canals, railways have linked towns and cities together they have competed to attract people and investment. Even whole nations have marketed themselves to attract population (like Canada and Australia) – just look at the emigration poster from 1948 below.

At first, from looking at the literature available on the Web, Team Sligo seemed to take a traditional approach to place marketing – in that it aims to attract investment (both mobile and fixed) to the area – it’s focus is external and transactional – new visitors, new businesses – attract them in, then attract some more. More contemporary place marketing is less about this type of exogenous development and more about endogenous growth, developing the place product through internal resources – growing businesses, up or re-skilling the workforce etc. It was good to hear that Sligo also recognises the importance of “grass roots integration” and during the programme Paul made it clear that future success was going to come from more successful partnership working amongst the existing stakeholders who voluntarily want to make Sligo better.

Both types of development are referred to explicitly in the Limerick 2030 vision for both foreign direct investment and “endogenous business growth”. Eoghan referred to the complexity of place marketing and the multi-dimensional nature of place. Whilst Limerick wants to re-brand around the principles of being “authentic, innovative and progressive” this seems to be an ‘organising principle’ (Kavaratzis, again), to encourage stakeholders to be part of the change process, rather than a constraining strap-line.

Likewise, the Mayo food vision is being created by local people and businesses – the collectivisation of the various parts of the ‘product’ being the first and most crucial step. However, like the other place marketing initiatives discussed today there is a preoccupation with making money out of place initiatives. This is explicit in Mayo’s “Recipes for success: The business of food”. But food is more than a business, and so are places.

Critics of place marketing and branding see the adoption of business principles as the creeping commodification of place. “Places are being increasingly packaged around a series of real or imaginary cultural traditions and representations” (Hall, 1997). So food could be promoted at the expense of other traditions, such as music or things which cannot be so easily sold such as folklore or story-telling.

As Cónáll pointed out, many places are ‘competing’ against each other but with exactly the same offer – food, culture, creativity etc. and a word that came up a lot in our discussion was ‘authentic’. Place marketing and branding has to accurately represent the place product. Otherwise it is just empty rhetoric.

On the whole, the three initiatives we discussed today reflect a shift away from rhetoric and towards reality. Place marketing and branding is finally becoming more substantive and about time! The idea that slogans, iconic buildings or a few more tourists, on their own, can change the fortunes of a place in decline is rather desperate. Nevertheless, a lot of place marketing activity is publicly funded – so we should continue to be vigilant and ensure the local people that fund these initiatives get a suitable return on their investment.

You can download a podcast of the programme here.

20130818-201357.jpg

Too many betting shops?

Saturday saw a small group of people protest against the proposed opening of Manchester’s 26th betting shop in the city centre.

I was asked to comment this morning for BBC Radio Manchester on whether betting shops are a good or bad thing for the high street.

On the positive side a new betting shop, like the one proposed, in a prime retail area is likely to employ between 4 and 5 people. It will pay around £40,000 per year in business rates. It will also contribute about £100,000 in tax to central government. Finally, according to a report by Ladbrokes, 80% of their shops open in vacant premises. So the argument is that it’s better a retail unit is occupied and paying business rates and tax than just left empty.

The recent growth of retail betting shops on high-streets demonstrates that they are successful in attracting people in to spend their money. £200 million in Manchester alone according to city centre councillor, Kevin Peel.

The problem is money spent in a betting shop does not circulate very well. Compared to something like a restaurant which is much more labour-intensive, only a small amount of the turnover goes into paying staff.

Also the UK betting shop market is dominated by 4 national players who have 82% of all shops. So profit goes back to head offices that are not based in Manchester.

So the argument is money spent in betting shops cannot then be spent elsewhere in businesses that are more beneficial for the local economy.

But is 26 betting shops in the city centre too many? Some smaller towns like Rochdale have an even higher concentration of shops in relation to their population. On the other hand the UK currently has about 7000 betting shops less now compared to the 16,000 it had in the 1970s.

So the problem may not be how many we have, but where they’re located. The betting industry strongly refutes the accusation that shops are proliferating in areas of economic and social deprivation. But the on line mapping serviceprovided Geofutures certainly shows how clustered betting shops are around poorer areas.

Again, the industry argues that because they need to locate in areas of high football these are obviously going to be in town centres and high-streets. But their argument is not particularly convincing. Even their own research suggests that it is poorer people that gamble. They find a relationship between participation in gaming activities and household income only between households that earn under £36,000 a year.

Historically, activities that are not perceived as being particularly good for us are heavily regulated.

Before 2007 betting shops were not allowed to open next to each other. The reason we are seeing so many new betting shops in areas is partly the relaxation of this control but it is also a direct consequence of legislation that limits the amount of fixed odds betting terminals (FOBTs) to 4 in each outlet.

It’s these high-stake, roulette and casino machines that make up most of the shop’s turnover and also account for 50% of their profits.

A regular better i.e. someone that visits a betting shop at least once a month spends over £1200 per annum on FOBTs compared to £427 on over-the-counter bets.

A report by the Local Government Association indicated that half the public in their sample were concerned about betting shops. In particular, the ease at which empty retail outlets can be taken over by this type of operator.

Mary Portas singled out betting shops as being bad for the high street, but the concentration of any one type of business in a small area is usually bad, unless a location is looking to specialise, for example a street of fashion or second-hand book stores.

Many empty units like banks and building societies will not require any change of use to be granted before they can be turned into betting shops, therefore no planning permission is needed.

But all betting shops have to be licensed. Only one council so far, Newham, has turned down a license application for a betting shop. This is on the grounds that the shop’s primary activity will be gaming on machines rather than traditional over the counter betting.

This decision is being appealed against by Paddy Power and is up for review by local magistrates in June. I expect the licence will be granted as the operator is not proposing to do anything illegal.

Barking and Dagenham Council have launched a more strategic approach to their management of retail units. They have published supplementary planning guidance to give businesses 12 months notice of their intention to regulate the number of betting shops locally.

If gambling is the problem that Saturday’s protesters claim it is, then it won’t be long before national government will have to act. Perhaps that’s why the betting shop operators are so keen to get in quick, take over empty retail units quickly and make as much money as possible from the gaming machines whilst they can.

20130520-150440.jpg

Transport decision making and representative bureaucracy

A friend of mine at university had his own plane (!) and flew to Teesside airport for the start of term in 1992. This was on a Wednesday. He was told he would have to wait till Sunday to get a train. Incidentally, the bus takes over an hour for the 12 mile journey (longer than it took him to fly from the south). Despite people trying for many years to get a rail service to the airport in my opinion the main problem they faced is that they were talking to car owners. Since the 1970s the concept of representative bureaucracy has been widely embraced in the public services. Just like representative democracy should reflect the interests and diversity of the electorate, organisations that serve society will be better placed to do so if their employees represent all the segments of the population they serve (Evans, 1974). But representative bureaucracy, has been driven more by legislation than a genuine belief that it will improve policy making and service delivery. it has focused almost entirely on trying to ensure workforces are reflective of ethnicity, disability and gender. But, what about people that don’t own cars? How well are they represented? To have a station at an airport and four trains an hour that pass through it seems a great example of integrated transport – unfortunately none of the trains stop. The original reason for not allowing passengers to alight was the 15 minute walk from the station to the airport. It’s about a 15 minute walk from Manchester airport station to the airport. Have a shuttle taxi. Next time I get involved in any consultations or discussions about transport I am going to find out from the members of the group how they normally get about and see how representative they actually are.

Link to BBC news story

Evans, J. W. (1974). Defining representative bureaucracy. Public Administration Review, 34(6), 628-631.

20130502-094930.jpg

High street decline – what does the management and marketing literature suggest?

Whilst the drivers of change affecting high streets are complex and cross discipline boundaries, the management and marketing literature may offer some solutions. To simplify the literature, we have reviewed potential high street interventions under the broad categories of ‘repositioning’, ‘reinventing’, ‘rebranding’ and ‘restructuring’.

Repositioning is a strategy that can be used to counteract decline (Smith, 2004). Rapid economic, political, and social changes, are most likely to lead places to repositioning strategies that will allow them to identify potential competitive advantages (Kavaratzis and Ashworth, 2008). The focus of any interventions here should be on understanding the forces of change and the value of unique responses that reposition individual high streets, through building on distinct capabilities (such as local identity, Edensor, 1998) but are accommodative of future trends (such as an ageing population or the growth of m-commerce) and are therefore more resilient (Wrigley, and Dolega, 2011).

Reinventing should focus on elements of the place product within a framework of place marketing which suggests that any new developments should be guided by the marketing principle of meeting the needs/wants of identified target audiences (Ashworth and Voogd, 1990). The “reinventing” process of urban places can be built on activities that aim to revitalise a place’s identity and image; identity and image can be seen as both static (for communicative purposes in a fixed time) and dynamic, which recognises the uniqueness of each place and the difference in each stakeholder’s view about a place (Kalandides, 2011; Warnaby, 2011; Kavaratzis and Hatch, 2013). It is the latter view that can be used as a driver for reinventing places such as high streets and city centres; a framework built on these premises can unarguably assist the development of rejuvenated, competitive retailing spaces, which will merge innovation and local place identity, and will be meaningful for all stakeholders (Coca-Stefaniak, Parker, Quin, Rinaldi and Byrom, 2009). Retailing is an important element of the urban place product, and “reinventing” this sector along with improvements on complimentary elements of place can contribute to a better understanding of the formation of the “holistic” place product (Warnaby, Bennison and Davies, 2005).

Rebranding should focus on the communication of image and identity as previous studies demonstrate that place consumers may find that the place experience meets or exceeds expectations whilst the image of the place is ‘problematic’ (Selby, 2004). Rebranding a place is mainly concerned with the application of branding, marketing communications, and public relations techniques in order to deliver a consistent place identity, which can form a sum of beliefs, ideas, and impressions in the minds of potential consumers of a place (Kotler & Gertner, 2002). It can be thought of as the ‘organising principle’ for integrating measures (e.g. events, media relations, residents’ participation). Place branding can evoke favourable place images that transfer emotional and self-expression values, as well as utilitarian attributes to individuals (Caldwell & Freire, 2004). These images are part of a place’s secondary communication efforts (Kavaratzis, 2004), which consists of various slogans, advertisements, and PR campaigns which aim to assist a place’s actions towards development. Successful place brand management can lead to positive word-of-mouth, and also assist in the transformation of negative images (Hanna & Rowley, 2011; Skinner, 2011). The need to identify how potential stakeholders can co-create the place brand is the focus of recent developments in place branding (Warnaby, 2009; Hatch and Schultz, 2010). High streets, and particularly the retail sector, with the multitude of stakeholders involved in it (users, brokers, fixers) (Pal and Sanders, 1997), can highlight the desires, needs, and views of those stakeholders, which can lead to a better understanding of how place brands are created and evolve (Kavaratzis, 2009; Hanna & Rowley, 2011; Kavaratzis & Hatch, 2013).

Finally, restructuring, should focus on forms of management and governance, including formal and informal (Coca-Stefaniak et al, 2009; Peel, 2003); regulatory, functional, and contractual (Lloyd and Peel, 2008; Peel et al, 2009) and modes of communication / knowledge exchange (Peel and Lloyd, 2008a, b). Consequently, the major point of interest is how high streets can be restructured in order to facilitate all the changes mentioned above. Place management and retail management are recognised as interdependent areas, and practices that entail both commercial and locational benefits is the best way forward (Bennison, Warnaby and Pal, 2010). Restructuring and cooperation of all place stakeholders and creation of strategic networks and transparent public-private relationships can nurture conditions for the sustainable development of a place (van den Berg and Braun, 1999; Rainisto, 2003). Physical restructuring is also another area which is encapsulated in place management and place marketing strategies; the proper use of current infrastructure (temporal) and the development of new retail spaces are major antecedents of place attractiveness and place development (Pike, 2010; Teller and Elms, 2010). In the case of retailing, the best spaces created from restructuring can enliven the high street and also shape a better image for the place which can enhance retail operations (Pal and Byrom, 2003).

This review has been written by Cathy Parker, Nikolaos-Foivos Ntounis and Mihalis Kavartzis for an Economic and Social Research Council Knowledge Exchnage Project : High Street UK 2020. The full list of references is available upon request. Please contact c.parker@mmu.ac.uk

Special Issue of Journal of Place Management and Development

Volume 6 Issue 1 is now available on early cite. This is the Special Issue: The Business of Place: Critical, Practical and Pragmatic Perspective that contains selected papers from the 3rd International Place Branding and 2nd Institute of Place Management Conference which is taking place 13th and 14th Feb. Congratulations to all our authors.

My Place is not Your Place – Different Place Brand Knowledge by Different Target Groups by Sebastian Zenker and Suzanne C. Beckmann

My City – My Brand: The Different Roles of Residents in Place Branding by Erik Braun, Mihalis Kavaratzis, and Sebastian Zenker

A Study on the Delivery of City Branding Advertisements in China: City Branding Advertisement on CCTV, 2007-2010 by Chunying Wen

Developing a Collective Capacity for Place Management by Tore Omholt

Slum Tourism, City Branding, and Social Urbanism: The Case of Medellin, Colombia by Jaime Hernandez-Garcia

The Tools for City Centre Revitalization in Portugal by Pedro Porfírio Coutinho Guimarães

Volume 5 Issue 3 of the Journal of Place Management and Development now out

The most recent issue of the JPMD is now out.  This means we have 5 years of Volumes now, so thank you very much to all our authors, reviewers, Editorial Board members and Editors. This issue contains the following articles:

Branding slums: a community-driven strategy for urban inclusion in Rio de Janeiro by I Torres, Government of Federal District, Brazil

Place marketing and phases of the image : a conceptual framework by S M Zavattaro, University of Texas at Brownsville, USA

Towards a theory of place marketing by T Niedomysl (Lund University) and M Jonasson (Halmstad University), Sweden

Unraveling the complexity of ‘city brand equity’: a three dimensional framework by A Lucarelli, Stockholm University, Sweden

Place brand equity: a model for establishing the effectiveness of place brands by B P Jacobsen, University of Dundee, UK

“We love the Gong” : a marketing perspective by G Kerr (University of Wollongong) , K Dombkins (Tourism Wollongong)and S Jelley (University of Wollongong), Australia

Members of the IPM can access the JPMD as part of their membership package.  If you would like to join the IPM then please contact me at c.parker@mmu.ac.uk

UK Retail Markets 2012

I am back at the National Association of British Market Authorities’ Annual Conference. I am listening to Krys Zasanda present the heading figures about the state of the sector.

279 markets contributed to the annual figures. 75 indoor and 204 outdoor. The survey was a traffic light system, asking Market Managers whether things had remained stable, increased or decreased with regards to stalls let, traders standing, market days, footfall, income, staff, bottom line and investment.

So, aggregating all the measures in 2012 74% of all markets replied stable or increasing 16% in decline. This was an improvement in last year.

In other news, like 2011, outdoor markets are doing better than indoor. Similarly Farmers’ Markets are doing better than traditional markets again this year.

Regionally the performance by region shows markets in The Midlands fare the worst with London ones doing the best (no surprise there).

The overall improvement could well be due to the Love Your Local Market and National Market Day initiatives, as well as the work Mary Portas did to raise awareness of markets. The Love Your Local Market national website got 14,000,000 hits!

So a bit of good news in what has been doom and gloom in terms of many retail statistics and news from The High Street.

Ilminster – The Only Town in England to not have an empty shop?

Ilminster – The Only Town in England to not have an empty shop?

Ilminster claims to be the only town in England that doesn’t have an empty shop. BBC Radio Somerset covered the story this morning and interviewed me about the benefits of supermarkets in town centres and retailers owning their own premises.  You’ll find the interview 1:47 mins into the Breakfast Programme.

HS2020 research presented at Inside Government: Next Steps for Revitalising UK High Streets

A guest blog by Dr Costastas Theodoridis and Dr Amna Kahn, of the Institute of Place Management at Manchester Metropolitan University

Town-centre and BID managers, policy-makers, practitioners and academics were gathered in London to discuss the revitalisation of the UK High Streets. In the all-day ‘Next Steps for Revitalising UK High Streets’ event delegates had the opportunity to find out about the recent developments in digital and traditional high-street management and development. The event was chaired by Dr Fiona Ellis-Chadwick from Loughborough University who also delivered a keynote speech focused on the digital high-street health-check index developed by her and her colleagues.

A lot of attention was paid to the digitisation of the high-streets and particularly to the benefits that retail organisations will see if they develop an active digital presence. Steve Woolley, from the Chartered Institute of Marketing, highlighted the impact that the management of the personal data has to the patronage of retailers and the threats that may occur if a retailer misuse the data collected by the consumers. The Institute of Place Management was represented in the event by its Director Simon Quin who reminded to the delegates the importance of location and the physical place, and presented the findings of the High Street UK 2020 project.

Simon discussed how the evolution of the retail environment is changing, looking at various relevant trends as identified by the part-funded ESRC HSUK2020 research project. As well as talking about the 25 priorities for town/city centre vitality and viability, Simon also presented research findings relating to footfall signatures that identify different kinds of centres and provided the views of the Institute of Place Management on the emerging issues. Simon Pitkeathley’s, CEO of the Camden Town Unlimited, presentation on the use of the technology to facilitate the transformation of High Streets addressed how the visual appearance, the visionary management of the High Streets, the development of diverse anchors and stores, and the amount and quality of recreational space in a High Street – areas identified within the 25 priorities for the High Streets in the HS2020 project – provided evidence from Camden Town on how the physical place can be promoted to the consumers through the use of digital tools.

The delegates had the opportunity to ask their questions to the speakers and their answers provided valuable insight on the understanding of the instrumental role of the digital technology to place management.lower_high_street_2_670_230_84_c1_c_c_0_0_1