This morning the details surrounding the Co-Operative Bank’s takeover of 632 Lloyds Banking Group branches became a little clearer.

The deal sees Co-Op acquiring the branches at a knock-down price, with Lloyds almost paying them to buy – as well as providing management, back office systems and a £1.5bn covenant.  On the face of it this is tough for Lloyds (who seem to have the raw end of the deal), but it also poses challenges for the Co-Op.

Obviously tripling in size will give them the sort of clout and ability to disrupt the marketplace that has long been missing from new challengers in the UK banking landscape, but that doesn’t mean its all going to be plain sailing.

At present the high street banking market looks set to hot up – banks need to improve their reputations, and a sure way to do that is through improved customer service.  The cries of the Co-Op may be lost within the general noise of the big players – all shouting about how they have changed, and how they are putting their customers front and centre.  The challenge for Co-Op is to explain why and how they are different, so that the public don’t just decide to give their current providers yet another chance.

Obviously, Co-Op does have a genuinely differentiating (and genuine) ethical business positioning, but it’s still going to need the right products, positioned in the right way and supported by the right service package – otherwise even the customers which it has inherited from Lloyds are going to walk right out of the door.

The other point is around the terms of the deal itself.  Robert Peston on the Today Programme this morning made the point that the deal is so advantageous to the Co-Op that it is likely Lloyds would never have agreed to it if they weren’t being leaned on so heavily by the government (through their state and EU financial support).  This is a blessing and a potential curse for the Co-Op.  On the one hand they’ve got a whole new branch network and set of customers to serve at a very attractive price, on the other, people might start to question whether the deal provides an adequate return to the taxpayer (given how much government money has been pumped into LBG).

Co-Op needs to be sensitive to this and aggressively point out why this is a good deal for its customers, and a more general good thing for the high street banking market.

If it can overcome these hurdles, then we might be at the dawn of a new era for retail bank competition – and one in which the customer truly does benefit.

Ryanair love to tell you about their efficiency. Anyone who has ever flown with them will probably have heard them blowing their trumpet about their % of on-time flights. However you may also have been caught out by the ruthless efficiency of their staff in policing the 10kg handbag allowance.

Yesterday when flying back from a client meeting I happened to notice a small ad in their magazine which made me smile. It was for the Big Pocket Travel Jacket

The promise “Carry More. Pay Less”

The copy: “ Fill up with an extra 10kg of baggage, put the jacket through scanner at departure gate, wear to board the plane, then on plane put under seat.”

Your move  Mr. O’Leary

Today M&S unveils its much heralded (and briefly trailed) current account.  The decision to go into high street banking looks well timed – whatever the current concerns over its fashion lines the public trusts M&S, and trust is in very short supply in financial services at present. Therefore, M&S going into current accounts and mortgages had the potential to be a good move.

Now we see the detail.  It’s going to cost £20 per month with travel  insurance, or £15 per month without.  The £20 option is up there with the most expensive non private banking options on the high street, and in return you get vouchers off clothing and food and drink purchases in store.

So it’s basically a customer loyalty move – the big boys of high street banking can breathe a sigh of relief.

Or can they?

Nationwide and the Co-operative Bank have both reported strong week on week increases in current account enquiries in the wake of the LIBOR scandal, and the collapse of the RBS computer system.  Nationwide in particular has been hammering home its message of being on the consumers’ side, with full page adverts and wraparounds on the business pages of the Sunday broadsheets.  Also, if the Co-Op/Lloyds deal goes through, we could see the Co-Op with 7% of the market, and 10% of the UK branch network.

There are alternatives to the high street banks, and the signs are that people are starting to look more closely at them than ever before.  This presents a challenge to the established players to up their game in understanding what their customers want, and to the new boys in terms of getting a distinctive message across that can explain why they are different (and, in an industry where trust can’t be taken for granted, why they should be believed…..).

The disruptor of the industry is unlikely to be M&S though, at least not on their current showing.

In light of the economic changes over the last few years coupled with the recent debt crisis, the Luxury industry’s perceived immunity has certainly been put to the test.

2009 saw Harvey Nichols profits slump 40% and more recently Gianluca Brozzetti, chief  executive officer for renowned designer Roberto Cavalli, has warned that luxury goods companies should “brace for weaker growth in 2012”, particularly in Europe where the debt crisis has left consumers feeling unsure and cautious.

One bright spot clearly stands out in the bleak picture, quite literally in all its yellow, luxury imbued glory: Selfridges. The department store has been the consistent forerunner of luxury trends, delivering growth in the sector and reporting a near 20% rise in profits towards the end of 2011.  So instead of looking at where brands like Harvey Nichols are struggling let’s take a closer look at why brands like Selfridges are shining unabated.

Experience is an overarching strength of Selfridges and the most important factor in its success. It adds another dimension to the purchase journey, engaging emotional connections to the brand and differentiating it from other retailers. Experience is something that Selfridges not only do well, but is something with which the brand is synonymous. The Selfridge’s experience is brought to life through the following 4 key attributes:

1. Exclusivity. This may be an obvious attribute for a luxury retailer but Selfridges really bring this to life and have created a strong association with exclusivity through grand unveilings, exclusive designer concessions, and VIP events held in store such as the “Corgi flash mob” held for the Diamond Jubilee Weekend.

2. Aesthetic . The window displays, in-store displays and environment are iconic and add to the feeling of being somewhere special, a place where even the smallest aesthetic detail suggests aspirational, desirable and unique goods.

3. Inspiration. Consistency with designer choices and on trend displays have positioned Selfridges as not only the luxury day out but also as a guru of style, consumers looking to Selfridges to lead the way and provide inspiration on the latest trends and ‘looks’.

4. Treats. Whether it’s a hand massage at Jo Malone, lunch and champagne or affordable high street fashion inspired by courageous designer displays, Selfridges provides not only a shopping experience but a luxury day out.

Selfridges have built strong credentials in luxury and fashion, which enable them to credibly provide both inspiration and guidance on trends. Credibility is key in luxury and maintaining it is hard given the fast moving, ever changing nature of categories like fashion and beauty. However Selfridges maintain these four key elements under a simple, clear and iconic brand which provides consumers with a relevant reference point within the often confusing and intimidating luxury goods context.

These four key areas are not specific to Selfridges either, there are many ways to bring exclusivity, aesthetic, inspiration and treats to life and do it differently and to be able to deliver well on all of these things is to be successful within luxury.

Recently the NYC Advertising Association brought marketers together to hear a tale of how a small airline revolutionized an industry by behaving completely opposite of everyone else. 

According to Marty St. George, SVP of Marketing and Commercial Strategy at JetBlue, their success has resulted from a return to basics: a deeply engaging brand vision and a clear understanding of the consumer target. Weaving these two together has created profound customer intimacy, brand equity and growth.

For the past decade Jet Blue has brought both elements to life in one, powerful reference point – bringing humanity back to air travel – from which all decisions are made. Proudly, Marty describes their strategy as one which aims to exceed customer expectations in a category where many carriers advise flyers no expectation is a good expectation. They’ve done so by reversing several negative clichés associated with airline travel and by leveraging consumer advocacy as a primary measure of success throughout the entire organization, baggage carousel to boardroom.

Specifically, they obsess over Net Promoter Scores, using this measure as a way to drive prioritization and resource management among the executive team, accountability among leadership and behavior on the frontlines. Using an internal dashboard, every employee can track NPS scores by flight to understand how their performance impacts the business.

As they move into their second decade of service, JetBlue has evolved its brand vision to renew its commitment to always put people first. “In so many ways this exciting new marketing campaign speaks to the core of who we are as a brand. ‘You Above All’ is authentic. It’s transparent. It’s understandable. Quite simply, it’s very JetBlue” explains Marty.

The campaign is intended to provide “emotional differentiation” for JetBlue, said Alex Leikikh, managing partner and director for account service at Mullen. “Airline advertising today is chock full of smiley, happy business people,” Mr. Leikikh said. “We wanted to do something different.”

And they did, in a series of video advertisements that ask If you wouldn’t take it on the ground, don’t take it in the air.

Others are beginning to take notice, a recent PWC consumer based industry report asks, “What if carriers decided to stop relying on the same old Madison Avenue “strategies” offered up by the branding “experts” and go in a different direction? Of course there is another way—one that starts with keeping the flyer first and relying on what real customers have to say about their preferences.”

As the discussion came to an end, we felt evangelized as marketers and empowered as frequent travelers. JetBlue has proved the power of a value based culture by staying innovative and nimble – why can’t we all?