Yan Gao’s blog post: Risk of Lowering Price in High-end Markets described why luxury brand should satisfy customer’s needs instead of reducing price to gain market. And I agree that even though the cheaper version of iPhone could boost the selling, but it could also damage its reputation as a high-end brand.

Many high-end brands have a rich background and extraordinary history that make up an essential part of the brand identity. Therefore, when customers buy a high-end product, it is not only because of the product performance, but subconsciously they are also influenced by the brand’s rich heritage also. So, it is important for high-end brand to price themselves right. Setting the price too low can potentially harm the brand value. When a product is available and affordable for all customers, it tends to lose its exclusiveness.

Even though Apple tried to distinguish the cheaper iPhone from the regular one by eliminating some features and wrapped with an inexpensive plastic look, the announcement of 5c itself makes Apple’s value in customers’ minds start shaking. Therefore, for Apple to regain what they have lost, they needs to challenge themselves in terms of functionality and creativity.

Picture Source: http://www.businessinsider.com/apples-new-iphone-is-plastic-beautifully-unapologetically-plastic-2013-9

Jade Yang’s blog on “You’re not you when you’re hungry,” – Snickers really opened my eyes to a creative, innovative way to how a brand can stay on game in consumers’ fast-changing perception. Also, it reminds me of the Subway example we discussed on comm 101 class.

The market of candy bar is highly competitive. All products are almost identical. Therefore, differentiating from others by emphasizing a unique “healthy” image becomes the key of snickers’ success.

Particular in today’s market, consumers are more likely to view a brand’s image as an integral part of the product or service they are purchasing. They are not buying the actual product or service, but the status and perceived benefits associated with the brand. Therefore, to ensure customer satisfaction and loyalty, which could directly mean a larger market share, it is essential to create a brand image that differentiates itself from competitors and keep updating to meet customers’ value.

Video source: http://youtu.be/OTPJYZLD6L8

Amazon just announced plans to start delivering packages on Sundays in New York and Los Angeles.

Considering the closing than ever Black Friday and Christmas, this move is no doubt going to attract more customers to Amazon than eBay or Google. It makes shopping on Amazon easier and makes people realize a different way to shopping during the season.

Actually, Both eBay and Google have invested heavily on expanding delivery services to earn market share. Google Shopping Express delivered items from certain brand for free. The eBay Now service, which offers one-hour deliveries, has promised to expand to over 25 cities by the year of 2014.

That’s where Amazon’s move fit in. However, is the one day difference in a delivery date really going to be a deal breaker? Or is it just another way for amazon to get into public before the hot shopping season? As far as I am concerned, it is more likely to be the latter one. But no matter what, shopping in Amazon on black Friday certainly is going to set on a lot of people’s to-do lists.

picture source: http://s1.ibtimes.com/sites/www.ibtimes.com/files/styles/v2_article_large/public/2013/10/23/amazon.jpg

When CFOs Talk About Big Data, It’s Often Just Talk

The blog that I found is James Willhite’s Blog on Wall Street Journal. The post was titled  ”When CFOs talk about Big Data, it’s often just talk” and talked about how most business in the world claim that they will mastering Big Data to become more competitive in the market, but only a few is actually focusing on it.

Thanks to the development of technology, Big Data is powering business all around the world and transforming their way or running business. It helps them to understand the customers. Firms can use the information they gather to recognize the target potential customers and respond to the demand. It could generate great insights about market. However, like what we talk about on class, without efficient and accurate information management, Big Data is nothing but a wrap of raw beef. Companies can be overwhelmed by the huge volume of data. Either they don’t know how to use it or they can’t use it efficiently. Although turning data into insights is ideal, companies need to analysis them in a timely way to serve their customers better.

Without information management, all the raw data companies have about every customers’ and suppliers’ information would only create more liability.

When normal people see problems, social entrepreneurs see opportunities.

Daniel Canning, the Vice President at Western Union Financial Services, traveled to India and noticed many basic needs, such as financial services, healthcare and education, going unserved in the rural area. And Drishtee, an organization that provides essential services to rural villages via locally run franchisee kiosks inspired him. He decided to expand and advance the program.

Unlike most people who only sense desperation. Daniel recognized both a growing social need and potential business market. By working with Drishtee, he presented an opportunity to provide access to financial services to rural villages and help solve many social problems while benefiting from a developing market.

Social entrepreneurs confront with major social issues, from funding schools for low-income students, to building homes for the homeless. They see opportunities in society system that others miss, and bring out creative and game-changing solutions. They create innovations for society, rather than just profits, and create social shared value.

But at the same time, social enterprise is not charity. They are driven primarily by profit. Like Toms, they convince people that kids in Africa needs shoes and promoted their sales significantly as well as making a huge change for them.

Picture source: https://www.ashoka.org/story/meeting-rural-access-challenges-business-solutions

Twitter launched its IPO recently. To avoid suffering the dramatic fell Facebook experienced, twitter choose to set it’s the price to a range between $17 and $20 per share. Even though higher price can help the company gain more money, if it is set too high, there would be short of the demand for stocks. And the market is going to step in and press the price down, which is exactly what happened to Facebook in 2010.

Moreover, when Facebook announcing its IPO price, most investors in the market were still questioning about the ability of social media for making profit. Now, the market has already witnessed the great financial potential for this industry. Especially for twitter, investors hold great faith in its potential to provide a significant return after first trade.

For those companies seeking to increase their capital, there is no better choice than launching IPO. However, to have a successful IPO, company needs carefully evaluate its values and set its price slightly below. After, it must convince its investors of its ability to maximize values by properly addressing all the concerns investors have and proving its capability to outperform all its competitors.

Using social media as a marketing tool can help business to expand their market.

Sephora, the world-wide known cosmetics retailer, is famous for its pressure-free shopping experiences and wide range of brands and products. When it comes to social media marketing, they choose Pinterest over a lot others. This is due to all the data they gain from research, they found the customers of Pinterest spend 15 times more on their products than Facebook or other social media. After finding out, Sephora immediately incorporated Pinterest into marketing strategy. The commercial impact is significant.

“the reality is when you’re in the Pinterest mindset, you’re actually interested in acquiring items, which is not what people go to Facebook for.” Sephora said. Yet, Facebook continues to be a great customer interaction tool.

When using E-commerce, companies need to be aware of the potential customers behind it and company’s feature itself. The users of Pinterest is looking for purchasing, while Facebook is more concentrating on their bond between others. Sometimes, Printerest will lead to more sales; others, Facebook comes on top.

Pinterest: Sephora Pintboard

Pinterest: Sephora delivers a beautiful expercience for pinners

Picture source: http://sephora.com

Because access to Facebook is blocked in China, Renren, known as “the Facebook of China”, launched after “thefacebook.com” went live.

Despite the legendary success Facebook made, Renren’s recent financial statement is more like a disaster.

Renren lacks innovation is one of the major causes. Through all the way today, nearly every move Renren has made is just imitation. Even though Facebook has proved this is a successful business model, Renren needs to adapt to Chinese culture and come up with something original.

It is true that imitation is a feasible way to start business. Knowing that certain business has already worked in the market prevents a lot risk, and seeing the way the public reacts to it can help to improve. Firms can learn and grow from it. However, what really keeps you in the top of industry is the uniqueness. With the rapid changes of technology and fierce competition of economy, it takes more than imitation to survive. Renren needs to differentiated it from other social media and position itself in customers’ minds as Renren itself instead of a copycat.

Tech: Renren, Facebook Copycat, Poised To Make History With Rumored IPO. Feburary 21, 2011

Picture source: http://qinghua0904.files.wordpress.com/

Finally in the latest Interbrand ranking, Apple becomes the world’s most valuable brand this year.

Like what Jaz Frampton, the CEO at Interbrand, said in an interview, it was only a “matter of time”.

Brands’ value tells us more than the impressive financial performance or the climbing number on stock market. It is the impression you make on customers. It grows out of the essence of products.

The extremely strong brand loyalty Apple has is what makes it to the top. It is not just favorable among its customers; it is loved.

Technology is accelerating faster and faster every day. With all the strong competitors like Sony and Samsung, Apple still keeps running towards the top. They are selling more than computers, phones or technology. They are selling ideas. Most of time, people are not purchasing Apple just for its products. They are buying the unique, friendly, humanistic experience Apple offers. All the design, purchasing experience, packaging, are fitting into Apple’s carefully constructed brand identity.

CBC News: Apple surpasses Coke as world’s best brand. Sep 30, 2013

The New York Times: Apple Passes Coca-Cola as Most Valuable Brand. September 29, 2013

Picture source: http://ipadwallsdepot.com/

The disaster happened recently in Bangladesh was overwhelming.

After a garment factory collapsed, dead bodies kept emerging from the ruins. At least 400 workers were killed by it. The building was extremely unsafe. One of the reasons for the poor quality of construction is to decrease the cost. Because of the low cost, many major brands, such as Walmart, Gap and Target, became the main buyers.

After the scandal, all of these companies had to deal with the massive pressure coming from the public. Some of the them signed on an agreement that called for independent inspection of factories and agree to take actions to improve the safety of factories. Despite some flaws in the agreement and public doubts, this performance helped to regain brands’ reputation to some extent.

Therefore, once again business ethics are back into the spotlight. The number and harm of business crisis because of ethic problems are increasing every moment. It is what every manager should consider seriously. The strategies being used to manage ethic crisis are crucial as well. Although acting morally in business usually means relatively high cost and efforts, it helps firms to present a better image.

What happened in Bangladesh has a really horrible impact on retailers like Walmart and Gap. It is very disappointing to see them choosing to ignore people’s safety just for a lower cost. And instead of taking responsibility, they tried to get away from it. Now when people see their brand names, they see “sweatshops” and “irresponsible”. They reject their products or even take actions against them. And so do the investors.

Source link: Bangladesh: cheap clothes lead to danger and tragedy(CNN Money)