Friday, 24 October 2025

Penguin & Club Downgraded

 
The classic British lunchbox favourites, Penguin and Club biscuits, have been officially downgraded from "chocolate" to "chocolate flavour" due to a quiet reformulation driven by a global cocoa crisis. The manufacturer, Pladis, reduced the cocoa solids content in the coating below the legal UK minimum of 20% to offset record-high cocoa futures prices—which recently soared to over $11,000 per tonne following poor harvests in West Africa caused by climate change. To replace the cocoa fat, the company increased the use of cheaper vegetable fats like palm and shea oils. This cost-cutting move has had immediate brand consequences, forcing the retirement of the iconic Club slogan, "If you like a lot of chocolate on your biscuit, join our Club," in favour of a less memorable alternative, sparking a considerable social media backlash from consumers who feel they are receiving an inferior product. This trend highlights the increasing cost pressures on confectioners, making real chocolate a growing luxury.

 BBQ - What is the potential impact of this strategy on the company's profitability and brand image?

Screen Time Is Our Competition

 
Merlin Entertainments CEO Fiona Eastwood declared that the global theme park giant's most significant competitor is not a rival attraction, but rather "screens at home"—namely the pervasive use of phones and gaming devices by children. Eastwood highlighted that parents increasingly view the home as a "battleground" for screen time, positioning Merlin's UK attractions, such as Alton Towers and Legoland, as the "perfect antidote" by providing essential family escapism and tangible, real-life experiences. To encourage attendance despite cost-of-living pressures and declining consumer confidence, Merlin is leaning heavily on powerful brand partnerships with beloved IPs like Lego, Peppa Pig, and Minecraft, alongside the growing importance of seasonal events, noting that Halloween now rivals the summer season in driving profits at some of its parks. Eastwood also noted that seasonal events, particularly Halloween, are now essential revenue drivers, with the spooky season's profitability now rivaling summer at some parks like Thorpe Park. Finally, in addressing industry struggles like a recent credit rating downgrade and the end of post-COVID "revenge spending," Eastwood used the platform to call on the government, in her capacity as a UK Hospitality board member, for a necessary reduction in VAT on the Tourism and Leisure sector, alongside easing "red tape" on planning reforms to ensure the industry's continued economic growth.

BBQ - Outline two reasons why the "screen time at home" would be considered an example of indirect competition for Merlin Entertainments.

Pizza Hut to Close 68 Restaurants

 
The announcement that Pizza Hut is set to close 68 of its UK restaurants is a significant development in the casual dining sector, representing a substantial restructuring after the company behind its dine-in venues fell into administration. This challenging environment is not only a result of general economic pressures like rising operating costs (energy bills, labour, and ingredients) but also a major shift in consumer preferences, notably the rise of the high-end pizza market. The emergence of artisan pizzerias and chains like Franco Manca and Pizza Pilgrims, which focus on Neapolitan-style pizza, high-quality, authentic ingredients, and a fresher, more modern aesthetic, has significantly taken market share from legacy brands. Pizza Hut's traditional, family-style dine-in model, famous for its salad bar and deep-pan crusts, often appears outdated compared to these gourmet competitors. Diners are increasingly willing to pay a premium for perceived quality and authenticity, squeezing the mid-market where Pizza Hut resides.

BBQ - Analyse the potential reasons why Pizza Hut has decided to close a significant number of its UK restaurants.

Sunday, 19 October 2025

Singles Day Starts Early

China's largest annual online shopping event, traditionally Singles' Day (November 11), was intentionally launched a record five weeks early—starting in early-to-mid October—by major e-commerce platforms like Alibaba and JD.com. This aggressive early start is a direct response to the Chinese economy's persistent challenge of flagging consumer spending and low confidence, particularly following a weak retail performance during the Golden Week national holiday. The extended season, which transforms the event from a one-day frenzy into a month-long marathon of discounts, is designed to smooth out logistics, ease delivery bottlenecks, and leverage government stimulus aimed at boosting consumption. Platforms are heavily promoting government-backed trade-in programs for durable goods like consumer electronics and home appliances by stacking their own subsidies on top of national discounts. Chinese consumers have adopted more cautious spending habits since the Covid-19 pandemic, this spending crunch has hit high-end retailers especially hard. Fashion brands like Louis Vuitton and Burberry reported a drop in sales in recent months in China, which accounts for around a third of global luxury sales.

BBQ - Why does a spending crunch impact luxury brands the most?

Customers Sue Squeaky On Shoe

The Swiss athletic footwear company, On, is facing a major class-action lawsuit in the US over an alleged defect in its premium-priced CloudTec running and lifestyle shoes. The complaint, led by two consumers who bought models like the Cloudmonster and Cloud 5, alleges that the signature hollow-pod sole design causes the shoes to produce a "loud, embarrassing, and difficult-to-stop squeaking sound" with every step. The lawsuit asserts that this noise, often caused by friction or trapped moisture within the sole's air pockets, renders the shoes—which retail for over £150—unfit for their ordinary purpose. The plaintiffs accuse On of deceptive marketing and fraudulent business practices by knowing about this widespread problem (as evidenced by numerous online complaints and "DIY fixes") but failing to warn buyers, refusing to remedy the issue, and excluding the "squeaking defect" from their warranty coverage. The lawsuit is seeking over $5 million in damages and demands that On be required to fix or replace the defective shoes and warn future customers. The complaint argues that no reasonable consumer would pay the premium price for the shoes knowing they would be so noisy and unusable in public.

BBQ - Is the customer always right? What do you think On should do?

Lamborghini Swerves Electric Future

Lamborghini is reportedly stepping back from an immediate all-electric future, pushing back the launch of its first fully electric vehicle, the Lanzador, and potentially changing it from a Battery Electric Vehicle (BEV) to a Plug-in Hybrid (PHEV) for its expected 2029 arrival. Citing cooling demand for high-end electric sports cars globally, CEO Stephan Winkelmann stated the market is not yet ready for a fully electric model in their segment, as customers continue to prioritize the emotional experience of a traditional engine. Instead, the brand is doubling down on high-performance plug-in hybrids, exemplified by models like the Revuelto, Temerario, and the Urus SE, while also championing the development of synthetic e-fuels. Lamborghini views these carbon-neutral fuels as a potential "savior" for the internal combustion engine, allowing their iconic V8 and V12 motors to remain in production as long as regulations permit, thereby preserving the visceral sound and feel that defines the brand. Mr Winkelmann insisted the business was socially responsible, but added that as a low-volume manufacturer, its actions would have a limited impact on the environment.

BBQ - Explain two reasons why a luxury car manufacturer like Lamborghini might delay its plans for a fully electric vehicle (EV) launch

Friday, 10 October 2025

Christmas 2025 Top Toys Predicted

In a surprising shift for 2025, the biggest buzz in the toy world is moving away from complex, high-tech gadgets and returning to simple, tactile joy. According to leading retailers like Hamleys, the expected number one craze this Christmas is the charmingly low-tech Ty Bouncers which start at around £7. This forecast comes after months of rigorous trend analysis and panel testing by Hamleys' expert buyers and children's focus groups. These fluffy, bouncy spheres—from cartoon cats to movie characters—are touted as the perfect "sensory break from digital overload," offering uncomplicated, physical fun that appeals to all ages. Alongside this trend, novelty food-themed toys are also seeing a major revival, proving that sometimes, the best gifts are the ones that are silly, soft, and don't require a Wi-Fi connection. Get ready for a Christmas defined by bounce, fuzz, and pure, old-fashioned play!

BBQ - Why is it important for toy retails to understand the trends for Christmas 2025 so early?

John Lewis Building Flats

 
The John Lewis Partnership (JLP) has received unanimous approval from Reading Borough Council for its £70 million plan to build 170 rental apartments in the town centre. This project, which will see the demolition of a former JLP warehouse on Mill Lane, marks a major step in the company's new strategy to diversify its revenue by entering the "build-to-rent" housing market as a landlord. The development will offer a mix of one, two, and three-bedroom energy-efficient flats, with 16% designated as affordable housing (though this is below the council's target). By regenerating an underused brownfield site and promising high-quality design, communal amenity spaces (like a gym and co-working area), and a long-term commitment to the community, JLP aims to leverage the trust associated with its retail brand to provide much-needed, high-standard rental accommodation.

 BBQ - Explain a reason why a large retail business might choose to diversify its operations by moving into a completely different market, such as property and housing.

John Lewis Homes

Tesla Shares Fall

Hopes for a significant boost to Tesla's stock price were dashed this week as the much-anticipated rollout of its "lower-cost" models failed to impress investors. Despite CEO Elon Musk's assurances of increased affordability and wider market appeal, the company's shares experienced a noticeable dip following the unveiling, leaving many analysts questioning the immediate future of the electric vehicle giant. While the new models are indeed priced lower than their premium counterparts, the term "lower-cost" seems to be a relative one, with the price point still remaining a significant hurdle for many mass-market consumers - the new Model 3 Standard starts at $36,990 and the Model Y Standard at $39,990Furthermore, critics point to a perceived lack of groundbreaking innovation in these new vehicles, suggesting they don't offer enough to differentiate them from increasingly competitive rivals in the EV space, underscoring the challenge for Tesla in balancing high-growth expectations with mass-market accessibility and profitability.

BBQ - Explain how the disappointment with the new Tesla Model 3 and Model Y could negatively affect two other elements of the marketing mix (Promotion and Place) for Tesla.

 

Wednesday, 1 October 2025

Black History Month

Black History Month is a time to honour the achievements of Black individuals across all sectors, and the world of business is no exception. From historical trailblazers like Madam C.J. Walker to modern UK innovators such as Sharmadean Reid and Jamal Edwards, Black entrepreneurs have consistently driven change through creativity, resilience, and a deep understanding of their communities. Their ventures have not only created economic opportunities but also challenged stereotypes and inspired future generations. Despite facing barriers such as limited access to funding and underrepresentation, Black business leaders continue to thrive by embracing digital platforms, building strong brands, and leading with purpose. Their stories offer valuable lessons in innovation, adaptability, and social impact—key themes for any aspiring entrepreneur or business student. Supporting and learning from Black-owned businesses is not just a celebration of heritage, but a step toward a more inclusive and dynamic business landscape. Check out the story of Sharmadean Reid by following the link below...


UK Bans BOGOF Junk Food

The UK government has banned “Buy One, Get One Free” deals on unhealthy food and drinks in shops and online, aiming to curb rising obesity rates. The new rules, effective from 1st October 2025, also stop free refills of sugary drinks in restaurants. Items like fizzy drinks, crisps, cakes, and certain pizzas are affected. Health experts say these promotions encourage overeating and poor dietary choices. The ban is part of a wider strategy, including restrictions on junk food advertising before 9pm, expected to help prevent thousands of cases of childhood obesity. While some retailers had already limited such deals, the law now ensures consistency across the UK. Retailers and food manufacturers may now need to rethink their promotional strategies. With multi-buy offers restricted, businesses could shift towards healthier product bundles, loyalty schemes, or price reductions on nutritious options. This change could also influence consumer behaviour, encouraging more mindful shopping and healthier eating habits.

BBQ - Explain one way this change could affect marketing strategies used by supermarkets.

Jellycat Plush Profits Double

British soft toy maker Jellycat is set to reward its owners with a staggering £110 million dividend after its profits more than doubled in 2024. The company, famous for its quirky plush creations like smiling peanuts and sad-faced eggs, reported pre-tax profits of £139 million—up from £67 million the previous year—alongside a 66% surge in revenue to £333 million. Founded in London in 1999, Jellycat has grown from a niche brand into a global sensation, selling in over 80 countries and appearing in prestigious retailers like Harrods, Selfridges, and Colette in Paris. Its success is largely driven by viral popularity on social media and a surprising trend: adults buying toys for themselves. This shift in consumer behaviour has helped Jellycat tap into a broader market, blending nostalgia with modern design. The planned £110 million dividend marks a 75% increase from the previous year’s payout, reflecting the company’s confidence in its continued growth. As Jellycat races to meet global demand, it remains focused on quality, sustainability, and delighting customers of all ages.

BBQ - Analyse how changes in consumer behaviour and marketing strategies may have contributed to Jellycat’s financial success.