Aaron Chan's blog

After reading about the iPad 2’s marketing strategies on Jennifer Chu’s blog, rumors of the upcoming release of the iPad 3 are already surfacing (really Apple? = =). I’ll have to agree with Jennifer that Apple really does know how to abuse its brand equity to the point where they can release a “new” version of their product every 3 months and the general population will still buy it.

So I decided to do a little bit of research and write about the features and legitimacy of this trendy tablet computer.

Features:

• 9.7″ Display Size
• 1024 x 768 Resolution
• Apple A5 1 GHz dual core Processor
• 512 MB RAM
• Storage: 16, 32, 64 GB
• Wi-Fi and/or 3G
• Front and Rear Cameras
• 9-10 hours battery life
• Weight: 1.33-1.35 Lbs
• Colors: Black or White

So basically improvements from the last generation include: faster (dual core) processor, added two cameras, and a having slimmer/lighter ‘chic’ look with cool colorful ‘Smart Covers’ to compliment it.

Now the question remains – Can the iPad 2 really replace a notebook computer and be as useful of a tool in a business setting, or is it all just a gimmick?

A few limitations to keep in mind when buying the iPad 2:

• Still no flash support (for videos and games online)
• No USB port and SD Card Slot
• Weak cameras

So is it actually WORTH $499 (cheapest version), or is it all part of Apple’s premium pricing strategy? I’m sure you’ve all seen a parody or two of these iPad 2 promotional videos:

What actually does impress me though, is that regardless of whether the iPad is really worth the price tag or not, no one can deny how much it has already impacted the gadget industry. But then again I’m just an owner of an Apple iPhone, my opinion is probably biased.

iPad 2 making music:

As I was reading The Tenacity Radio Network Blog about the future of the NBA and its  recent increasing popularity with these so-called ‘Super Teams‘, I began to wonder about the overall effects they will have on the business.

It was a cool concept when I first heard of the news about the creation of the Big 3 in Boston (with Kevin Garnett, Ray Allen, and Paul Pierce) in the summer of 2008. Then soon after, many teams decided to copy Boston’s move of concentrating a group of superstars on one team (some successful, some not) with the hopes of replicating the same success as Boston did in its championship run in 2009 – including the Orlando Magic (with Vince Carter and Dwight Howard), and Cleveland Cavaliers (Lebron and Shaq). But after the much anticipated formation of the other Big 3 in Miami (Lebron James, Dwyane Wade, and Chris Bosh), and New York Knicks (Amare Stoudemire and Carmelo). I started to think, is the game still the same, with all these mega-NBA-stars getting together just to get a better chance at winning a title?

What effects will this ultimately have on the League?

Now obviously, there is undoubtedly going to be some positive effects on the business. The hype is going to be huge in these cities that the “super teams” are going to form. More people are going to tune in to watching these games; more people will buy tickets to watch live; and more merchandise (jerseys etc.) will be purchased by these eager fans. But at the same time, the competition will be watered down. Teams that do not have their own collection of super stars will not have the ability to win against the “super teams”. The result: they will be stuck in a continuing cycle of being a “stop over team” (as stated in the blog), with losing records every year; their fan base will diminish; revenues will go down, and these franchises will just continue to lose money, until they get moved into another city, in which the cycle continues.

How can the Commissioner (David Stern) address this situation?

Create a ‘hard’ salary cap for the league, much like the NFL, where teams cannot easily exceed the max salary cap; use a collective bargaining agreement (CBA), and revenue sharing among teams.

Now there are rumors that there is going to be a lockout in the 2011-12 season to address these issues. Whether the game will ever be the same again, is a question soon to be answered in the near future.

After enjoying a buffet lunch at River Rock today, my friends and I decided to walk downstairs to spend some time in the casino. Entering my first year of gambling-legality, I always wondered what it was that got so many people ‘hooked’ onto the effects of gambling. I soon found out.

The second I stepped into the casino, I was offered a BC Gold Club card, which gave benefits such as a 10% off at the River Rock buffet, and collected points every time I inserted the card into one of the slot machines. Along with it, also came with a free 5$ coupon for the use of slots – not enough to win big, but just enough to get you hooked. All with the simple requirement of filling out some information on a form. They also let us keep the pen along with a handy flash light – with “River Rock Casino” marked on them. Not a bad feeling at all, to have free stuff instantaneously shoved down our throats without even having to touch any of the machines yet…

I found this strategy extremely useful because it focuses on encouraging newcomers, whether they’re familiar with the games or not. Furthermore, with the club card, marketers can develop their CRM as well as collecting valuable information about players to use them for market research. Read more about River Rock’s 4P’s and marketing mix here on my friend’s blog: Bond Lai’s blog.

Ps. I won a measly $13.03 from a $5 bill. Not a bad return-on-investment I’d say. :p (Maybe I’ll start coming back every day…)

Reading about it is already unsettling enough, but seeing clips of it online and on the news is frightening. Watching buildings collapse, oil refineries explode, and muddy currents wash away cars and buildings and people just reminds me how fragile life can be.

http://www.popularvideohits.com/video/27

The catastrophe struck on Friday afternoon in northeastern Japan (epicenter located 130 km off the shore of Honshu) after a 7.1 Magnitude Earthquake shook the shores of Japan 2 days before. To put in perspective, the Haiti earthquake was 7.0, Sichuan’s was 7.9 , this one is 8.8/8.9!! that is 10 times the impact of Sichuan; the largest in recorded Japanese history. Powerful aftershocks (exceeding 6M), tsunamis, volcano eruptions, and potential nuclear meltdowns ensue.

A blog of someone’s first hand experience with it:

Scott and Megan’s Earthquake Experience

Join this UBC Humanitarian Aid for Japan facebook group to see where you can help.

You can act now to help… donate to the Canadian Red Cross by clicking Here.

OR even more convenient:

Text ASIA to 30333 to donate $5 immediately (phone automatically billed)

Remember, all our efforts will make a difference.

As I walked past the Starbucks store today, my friend pointed out to me that they changed their logo on their paper cups… Well, “changed” depending on how you define it – they basically zoomed in on the logo, took out the “Starbucks Coffee” words around it, and made it green. Oh, and they also officially took out the “Coffee” from “Starbucks Coffee” in their name.

Having a seemingly “fresh” new look for their old and worn-out company logo, most of us “brand loyalists” will exclaim “Good job Starbucks!”, but some others might be wondering “What’s the whole point of this Starbucks?!”

Well, Re-branding – This move by Starbucks seems to be aimed at changing their company image. Starbucks, right now, is near the end of its Maturity stage on the product life cycle – the market has already become saturated, and all potential customer segments have adopted the product. So in order for it to avoid going into the Decline stage, Starbucks should now enter new markets and develop new products that target new market segments – increasing their product breadth. Instead of being known for just coffee, they can simply use “Starbucks” to brand a whole range of other products.

Besides kicking off their 40th anniversary with a name and logo change, they’re also rolling out a new cocoa cappucino, and a new line of baked goods, called Petites (including including mini cupcakes, cake pops, and whoopie pies) – perfect for their product breadth expansion! *This Thurs, Fri, and Sat, you can also get a free petite when you buy a drink between 2 – 5pm. So make sure you go check it out! (Now that’s some avid advertising for you.)

So how do you feel about Starbucks’ latest move?

Just searching the web for cool commercials (as it is what I usually do with my leisure time), I came upon this.

As Billy Lan mentioned in his blog post, it’s really all about the packaging in the marketing world. To be able to successfully sell a product, you first have to be able to package it. But different from what Billy talks about in his blog – using bright colors and eye-catching designs to catch buyers’ attention in shopping malls. What he talks about is the physical packaging of the product. But in my opinion, “packaging a product” is much more complex than just wrapping the product in a certain type of wrapping paper, but also how the firm markets the product to make consumers perceive it in a different way – which can definitely be achieved by the physical packaging too.

In this ad, Huggies somehow makes wearing denim diapers look cool for babies to wear. They did so by making fun of commercials from high-end clothing brands like Calvin Klein. (the baby seems to be a super-model strutting his stuff down the street).

Although some of you still might not be convinced that a lot, if any, will purchase this product (which may be true to an extent), the commercial already has achieved its goal – creating as much exposure as possible for its new chic product.

This goes to show that creativity can take you long ways in the fields of marketing – the way you present or package a product is just as, if not more, important than the product itself.

After several deep thought provoking Marketing lectures about branding with Elaine, I have come to a sudden realization, that as regular consumers in today’s society, we are, essentially, what we buy. What I’m referring to, of course, is the fact that we certainly tend to buy brands that represent us – From expensive designer clothes right down to the toilet paper that we use – yes, I happened to be going through my regular routine when I noticed that I’ve always been using one brand of toilet paper – my whole family has been buying the same brand for years! What I’m referring to, of course, is the Social factors influencing the consumer decision processing. It is essentially a family decision – which brings us to a very important point that I want to bring up. How well does your toilet paper represent you?

I personally use Kirkland  Bath Tissue, which also gives an example of how some brands have branched out to reach more product lines in order to appeal to a larger consumer market. (For eg. when I think of “Kirkland”, I think of the battery..) And I think Kirkland represents a segment of consumers who are more concerned about product quality than say, brand image.

36 rolls, with 425 sheets per roll. Now that’s efficient.

How do we make the decision? Well believe it or not, but even buying toilet paper can be a science. The buying decision pretty much comes down to this:

Comfort = [frictional coefficient] / [price].

(Stolen from this online article I was reading…)

But for some high-end consumers, Kirkland Bath Tissues may not be sufficient for the job. Try some of this Lenova luxury toilet paper rolls:

Retailing at $13 to $20 for a three pack they are said to offer a “soft and silky experience”. (The friction coefficient seems to be good, but is the price reasonable?)

(read more –> http://www.lussorian.com/luxury/comments/is-renova-the-most-expensive-toilet-paper/2006-09-21/)

So next time you’re picking out your favorite toilet paper brand, pay attention to all the marketing tactics behind it!

Watching this commercial on TV about the Toyota Prius

Toyota is clearly targeting the segment of environmentally-conscious adults (perhaps with a family) that want to do their part in helping the environment as well as saving money on exploding gas prices. I believe they targeted the right segment because of the current economic and social trends in the industry’s macro-environmental factors – with today’s ridiculous-rising gas prices, as well as current social trends of protecting the environment.

Price: starting at $23,050 MSRP (3rd gen Toyota Prius)

The commercial is definitely effective in my opinion, because it uses mostly affective and behavioral components when the car is seen to be driven down the road, also using “happy” music and a fantasy-like nature scenery in the background to evoke positive emotions associated with the environment. They also touched up with a bit of cognitive component when the ad mentioned that the driver gets “more power and more space; the world gets fewer smog-forming emissions.”

This is considered smart advertising because they are successful associated their brand with environmentalism, and immediately put themselves in the evoked set of the consumer’s mind whenever they think about hybrid or environmentally friendly cars.

To be fair, my family definitely does have some brand loyalty towards Toyota though, owning all but one Toyota car at our household (around 5 or 6 Toyota’s in total, including past vehicles).

But of course, even Toyota has had its fair share of faults (notable ones, in this case)…

^ referring to its massive vehicle recalls/accelerator issues in 2009-10. (I found this one quite funny actually)

As I was mindlessly browsing through dozens of pointless Youtube videos, one of the ads caught my eye: it was a superbowl ad for Google. Not known much for its TV media presence, Eric Schmidt, CEO of Google, decided to put one up for US $5mil during the Superbowl. Here it is:

In short, it is about a “long-distance love story told through keywords.”At first, the idea seems simple (not to mention extremely cheesy!): a Google homepage is shown as someone types in a bunch of random search queries that later connect to reveal a story… Yet it is also contagiously effective in grabbing the viewers’ attention. By using a simple format throughout the ad, it also brilliantly reflects the simplistic layout Google has been known for in its plain-style homepage.

On the Marketing side of things…

In contrast to most other ads we see nowadays that merely spew information to satisfy the consumers’ cognitive component, this one puts more emphasis on the creativity and originality in advertising; it relies very much on the affective as well as behavioral components in advertising. The affective part is felt through the slow unraveling of the story, appealing to consumers who like to follow a sequence of events to piece together a story; whereas the behavioral component is evident as the whole ad is based on someone performing the act of using the search engine.

Not only is this ad effective though, it also displays a degree of truth – referring to the impact that Google has on each one of our lives (assuming you use Google as your primary search engine) – from finding the location of a place, to translations, to instructional advice, we all turn to Google to solve each one of life’s small problems.

If there’s one thing you need to know about me, is that I’m a pretty big fan of Blizzard Entertainment – mainly due to the recent Starcraft II pandemic that has taken over during the last couple of months. For those who don’t know, Blizzard Inc. is an American video game developer that is best known for its widespread success in developing multi-player gaming series like Diablo (I and II), Starcraft (I and II), World of Warcraft etc.

Now for those who haven’t tried playing (or even heard of) Starcraft II yet, I suggest you try it out. It is not the typical slice-and-dice graphically-pleasing video game that most kids are playing nowadays, but like other real-time-strategy (RTS) games, it focuses on critical thinking, constant multi-tasking, and mass decision-making skills to satisfy the gaming objectives. Intense concentration is needed to suit the ever fast-paced gaming environment and adaptations to the opponents’ every move.

Now, don’t confuse yourself, I’m not a pro by any means (only placed in the lowly Silver/Bronze leagues). Some may even refer to me as a “Nub”, but no less am I addicted to the game than the next guy sitting beside me at the internet cafe on a typical Friday night. But what amazes me more than the flawless game-play itself, is their impressive marketing schemes and relentless branding of the product that Blizzard puts into it. What makes Starcraft II such a successful hit in the market is a combination of rock solid product quality and careful planning and packaging of the product.

Pricing: $59.99 CAD (I got mine as a birthday present some time in the summer.)

Game-play: No one can doubt the fact that Blizzard puts a lot of work and time into perfecting each one of their products, as they took over 12 years(!!!!) to release Starcraft II after the first installation, Starcraft I came out in 1998. The intricate designs of the three races (Terran, Protoss, and Zerg), each having its advantages and disadvantages to one another, is a perfect example of Blizzard’s superior product excellence to other game developers in the industry.

Long-Term Dedication: Another thing Blizzard does best is it continues to relentlessly seek improvements in its game-play through regular patches that fix in-game bugs and glitches, and seeks feedback from gamers from their online forums. It is no wonder that Blizzard has nurtured a reputation so respectable among the gaming industry and has gained the trust of so many gamers, including myself.

Advertising Campaign: It is interesting to note that Blizzard typically announces the release of their games 2-3 years prior to their actual release dates. This practice attributes to the “launch hype” that Blizzard wants to create which will in turn maximize product sales right on the release date. Line-ups were very long on the day Starcraft II was released.. many even desperately camped outside their local Best Buy stores to get a hands on the sacred item. (I was not one of them, just FYI). After announcing its release, they would then pile up the hype by releasing mass amounts of previews, screenshots, videos, developer interviews to add to the momentum.

Viral Marketing: It also doesn’t hurt to have popular Youtube artists (like HDStarcraft and HuskyStarcraft) promote the game by regularly uploading videos of themselves commentating over game replays, featuring the top-notch players around the world. Yes, people commentate Starcraft games… believe it or not, it is more exciting to watch than a live football game.

Here is one of my personal favorites… Enjoy..

If that didn’t get you hyped up, I don’t know what will…

And… to end this week’s post, here is a picture of a very bad-ass-looking Thor… (Terran ftw!)

So the message is clear… Get this game now, or you’re missing out!! (no, I did not get paid by Blizzard…)

Update: yes I just noticed I have too many words… = =