Tying in my previous post about social media content marketing and as we talk about promotion in class, I have came across this blog post from Canadian Marketing Association about the importance of transparency in social media.  In a recent study, they have asked people to what extent they trust certain forms of advertising, list includes from people you know, TV advertisements, branded websites, etc. People’s trust on advertisements has increased, and I feel that marketers should not take advantage of this. There is a fine line in unethical marketing, so companies must be wary. Companies can increase their transparency in many ways. For example, McDonalds strives to be more transparent about their food through launching videos that shows the process of arranging perfectly placed big macs consumers see on their advertisements. For example, they justified the nicer looking big macs on advertising with the amount of time spent on each preparation, 60 seconds versus 4 hours.

Being transparent can clear up any controversy, as well as help companies adopt an integrated marketing communication (IMC) process. McDonald’s “Our food. Your Question” marketing tactic shows initiative, a sense of responsibility.

Their (the sender) promotion involves getting the right message, to the right people, at the right time. The medium of communication (communication channel), which is the website  is for people who are either interested, curious or concerned (the receiver) about what’s in McDonald’s products. Being able to directly question (decoding) McDonald’s tears that a barrier that could stimulate trust from consumers clear up misconceptions (noise), and change their attitude and behaviour. Those who were skeptical about purchasing their products may be less reluctant. This campaign is an excellent way for McDonalds to get feedback and response about their products (feedback loop). 

Sources:

http://yourquestions.mcdonalds.ca/questions/4874

http://www.the-cma.org/about/blog/why-transparency-is-important-on-social-media

http://www.businessweek.com/articles/2012-05-10/integrated-marketing-if-you-knew-it-youd-do-it

We are currently living  in an age of multitasking, and technology has made it easy to do that. All sorts of products are advertised through social media. As we are juggling with countless things to do, it makes sense that sometimes, the small messages are the most effective. Personally, advertising with something short and sweet would catch my attention over a 2 page long email about some product.  In the case of Taco Bell, they incorporated  the public into their marketing campaign through starting humorous short “conversations” on Twitter. For example,

Taco Bell’s humorous response through twitter has increased the sale of Dorito Loco Tacos They are also the first to use SnapChat (a mobile app that allows users to send pictures or videos for 10 seconds) as a medium of advertising. Other companies are also embracing social media. Rebecca Minkoff has also been sending 10 second previews of their latest fashion trends through SnapChat. 

All of this brings back to how businesses can get the most exposure consumer habits. These are examples of content marketing, which has the purpose of attracting customer with valuable information with the intention to change or enhance their consumer behaviour. In the case of Taco Bell, instead of giving the impression of trying to sell the product, they have delivered the information. As mentioned in class, consumer behaviour and attitude can be changed in several ways.  Being humorous is a way to connect with customers at a personal basis. My question is, since social media is always changing, can social media content marketing help retain and create loyal customers after the hype is gone?

Sources:

http://www.entrepreneur.com/article/229806

http://www.buzzfeed.com/daves4/the-best-of-taco-bells-twitter

Advertisements influence  consumer behaviour. In class, we talked about how different brands of bottled water,  a good that is available for free, is differentiated. Evian water was recommended as  as the best water for babies, first introduced in 1935 in France. Until now, they have remained the number one brand water used by mother for babies.

They have taken creative approaches to stay true to its brand history.  In turn, they are able to differentiate their product from other water bottle brands.

The baby campaign was first introduced in 1998 as the Water Babies.

https://www.youtube.com/watch?v=lCOcjWG6Ykc

And then, a decade later, the Roller Babies

https://www.youtube.com/watch?v=XQcVllWpwGs

More recently, the Baby & Me campaign was launched.

https://www.youtube.com/watch?v=pfxB5ut-KTs

and also, the Baby Inside

https://www.youtube.com/watch?v=Vg1jAWtWUaU

These advertisements embraces the “Drink pure and natural, Live Young” slogan through a reflection of grown people as dancing babies. The campaign focuses on Evian’s  commitment to the Live Young lifestyle message: “youth is not a matter of age, it’s an attitude.”

These ad taps into several attitudes, including the affective component because the ad may have sparked a new emotion that Evian water is pure and youthful, which can engage in buyers buying the product. As one of the most watched youtube videos, the commercial has not failed to catch people’s attention.

The campaign is a great example of how Evian promotes the goodness of the product by using babies as a leverage to symbolize youth and purity.

Sources

http://www.adweek.com/news-gallery/advertising-branding/10-most-viral-ads-2013-so-far-149832#google-how-it-feels-through-glass-10

http://www.mediabistro.com/alltwitter/evianbabyandme_b43913

http://www.adweek.com/news/advertising-branding/ad-day-evian-148706

In Jeffrey’s blog post, he discussed Minute Maid’s goal to bring the brand to a more comp temporary place expand its target market in order to combat the risk of facing the decline stage of the product life cycle  through advertisements.

By launching campaigns such as “Wake Up Your MMOJO,” they are trying to seek growth of their existing product by tapping into a new market segment that consist of men and younger people (market development). The advertisement features a man drinking minute maid in its newly transformed single-serve bottles, from previously half-gallon cartons.

Apart from advertisements, Minute Maid has also redesigned their packaging and brand graphics to single-serve bottles, which accounted for more than 24% increase in sales. At a consumer level, packaging their product in a way that is convenient to consumers can alter their perception of the product. The consumers looked down on the half gallon cartons displayed in “coffin-style.” This can also help retailers position their product in a more attractive aisle in the supermarket, a place that is visible from the top. Minute Maid conducted marketing research through focus groups revealed that individuals loved the lavish photomontage of fresh sliced oranges and apples in the bottle’s plastic wraps which makes the product more dependent and identifiable. It worked within its constraints of packaging the product in cans, as the printing the graphics would have been a challenge. Changing its packaging makes it more accessible to young health-consious consumers, who are the main purchasers of single-serve juice sold in bottles and cans.

https://www.youtube.com/watch?v=j5FfGNedXoM

Not only is Minute Maid trying increase consumer consumption as Jeffrey mentioned, the company ultimately want to be sustainable and create value by increasing brand equity through the marketing tactics mentioned above.

Sources 

http://www.fastcompany.com/1458943/first-look-coke-juices-its-minutemaid-packaging

https://blogs.ubc.ca/jlushao/2013/10/21/blog-3-willcan-minute-maid-expand-orange-juice-beyond-its-original-consumers/

The Hermès Birkin, one of the most in-demand bags in the world has been way ahead of its competitors in terms of status and craftsmanship. Costs from $7000-$10,000, these handmade bags are made of calf leather, ostrich, crocodile and lizard, and take around 15-20 hours to produce. They also have high variable costs because it craftsman takes three years of training to master this bag. They are released infrequently and unpredictably which adopts the model of scarcity. Often times, the wait to purchase a Birkin can be more than a year.

Despite the fluctuating economy, the price of Hermès handbags definitely has not changed. Its strengths root from the perceived value created through their pricing strategy and limited quantities. Hermès’ company objective has employed a customer orientation and grasped the consumer’s reaction to different prices, as customers believe that purchasing a Birkin is an investment, not an expense. Similarly, prestige products such as the Birkin does not follow traditional demand model, which is demand increases as price decreases. Their pricing strategy aligns with its company objective, which is to preserve the heritage and quality. Customers who buy the Birkin purchase for their status rather than functionality. The exclusivity of the product makes it more desirable because fewer people can afford to purchase it.

A problem that Hermès might run into in the future with this pricing strategy is the risk of devaluing their brand if they decrease the price. For example, growth slowdown may urge the company to satisfy shareholder’s interest by increasing the number of sales and expanding the manufacturing. In turn, the product may lose its premier position. The challenge would be; how can Hermès increase the quantity of bags sold by being more assesible without losing value?

Sources:

http://insidefmm.com/2009/11/hermes-marketing-never-discount-hermes-birkin-kelly-handbags/

http://www.bnn.ca/News/2013/10/2/BLOG-Hermes-Birkin-The-most-in-demand-bag-in-the-world.aspx

http://www.bloomberg.com/news/2013-02-10/hermes-10-000-birkin-purse-seen-leading-to-record-sales-retail.html

http://www.hermes.com/index-ca-en.html