Marketing

The FIFA executive committee announced that Russia would host the 2018 World Cup. With billions of people around the world watching this global soccer tournament, many countries hope to host the World Cup to increase their reputation. This is the first time that Russia has been chosen to be the host nation of the soccer tournament. The FIFA committee chose Russia, because the organization desires to use the game to spread the legacy of soccer in countries that never hosted the event. Russia believes that it has the ability to conduct a worthy sport event successfully for billions of people to enjoy. In order to accomplish the mission, Russia’s infrastructure built during the Soviet Union times needs to be modernized. The 2018 host nation would need to build new hotels to accommodate millions of tourists, who will travel to Russia to watch the games. The 16 stadiums where the games will be played have to be renovated or built. Since Russia plans to hold the tournament in 13 cities, its underdeveloped transportation system and airports need to be upgraded, and new roads need to be built, so soccer fans are able travel between host cities conveniently and efficiently. For years, travellers are reluctant to visit Russia because of the tourist visa. To eliminate the travel problem, Putin, Russia’s Prime Minister, promised to abolish the tourist visa. Even though implementing all these projects require billions of dollars and effort, these projects would bring many long-term benefits to the nation.

Many countries aim to host world events such as the Summer and Winter Olympics and the FIFA World Cup, because they view these events as a marketing opportunity. Since most individuals around the globe are interested in these events, nations utilize the opportunity to promote their culture, facilities and history. I believe that Russia would not only become an international gathering place during the World Cup, but would become a popular tourist destination. Moreover, the soccer tournament will increase Russia’s status in an international level. By improving the quality of the infrastructures, buildings and stadiums, more people would consider Russia as a destination for their next trip. I hope that Russia will use the World Cup to target not only soccer fans but also other demographics. Consequently when the World Cup ends, tourists will still visit the country to see the landmarks and undergo the cultural experience.

Here is a video of the FIFA executive committee announcing Russia as the host of the 2018 World Cup:

With the announcement of the royal wedding of Prince William and Kate Middleton, Britain is expecting a boost in tourism. Since there are a huge number of British Monarchy followers around the globe, these individuals are eager to travel to United Kingdom to witness this spectacle. According to the research of VisitBritain (Britain’s national tourism agency), events and history related to the British monarchy currently generate over £500 million in revenue for the British industry, so VisitBritain is expecting the revenue to accelerate tremendously in the year of the royal wedding. Since the royal wedding announcement, different manufacturers are producing souvenirs, such as commemorative plates, cups, mugs and key rings that feature the royal couple, Prince William and Kate Middleton. These souvenirs are popular among royal fans, because they purchase these products in anticipation of the special event. The engagement ring that Prince William gave to Kate Middleton is also gaining a lot of buzz when New York’s Natural Sapphire Co was overwhelmed with orders for reproduction of the sapphire and diamond engagement ring.

Even though there is many debates about whether the British Monarchy should be abolish, there are still a group of avid supporters that follow the news of the royal family. The wedding ceremony will help promote the culture and history of United Kingdom and generate publicity globally. During the economic downturn, the British sees the royal wedding as a way to attract tourists and raise the profile of Britain on an international level. The royal wedding will be a huge celebration that brings harmony and happiness for the royalty, the British and people from other race. In my opinion, the royal wedding creates not only commercial and business ideas for the tourism industry but also for manufacturing and entertainment industries.

I read a post called This Isn’t A Math Test from Tessa Der’s blog, which I found really interesting. The post talks about a Nike advertisement that composes a meaningful message. The commercial does not have a professional basketball player or tennis player displaying how amazing Nike running shoes, clothes or sport equipments are. Instead, the advertisement shows various clips of athletes in sport competitions experiencing defeat, injuries and wins. There is also a voice in the background giving an inspirational speech. Nike did not choose to promote the high quality of their products, but instead the company promotes hope, courage and perseverance to consumers. The speech mentions how in a competition the odds may be against you, but there is always a chance to win. What makes this Nike commercial so captivating? The clips that flashe in front of the viewers’ eyes and the voice that they hear motivate them to strive to do their best not just in sports, but also at school, work or other situations that they are facing.

Nike is already a well-known brand around the world, so it does not need to inform consumers about their value preposition. The company released an inspirational advertisement that relates to not only athletes but also all demographics. I think Nike is wise to emphasize a meaningful message that encourages people during their stressful lives. The advertisement will attract more consumers to purchase their products, because of the message that the brand conveys. I can see Nike’s sincerity when watching the commercial. Also, this Nike advertisement encourages me that there is always a chance to achieve success even if it seems small, so I should not let fear overcome me.

Thank you Nike for an exceptional advertisement that teaches the consumers a great life lesson!

Watching videos, such as TV shows and movies on the Internet has become more popular in recent years, because individuals have access to videos that are not available on TV, and they can access the videos whenever and wherever they want. To follow the trend, Google launched Google TV, which provides people a new entertainment experience by combining television with the Internet. Google TV allows users to navigate television channels, websites, Android applications, shows and movies. People can use this new technology by buying a Sony TV that contains Google TV in it or a companion box made by Logitech. In my opinion, Google is good at satisfying people’s needs and wants by combining people’s two favourite entertainment systems, television and Internet, into one device. People no longer need to sit in front of a computer screen to watch online videos. They can browse through the Internet while watching TV broadcasts or online videos on a flat screen TV.

However, Google is facing obstacles with this product as TV networks such as Fox and ABC block their shows from viewing on Google TV. TV networks view Google TV as a huge threat to their business, because they fear that Google TV or watching videos online will eventually replace cable TV. Additionally, TV networks suffer in revenue, because online advertising is less profitable than TV commercials. Another problem that Google is facing with this new technology is some people especially elders resist to change. Individuals may find Google TV too complex to operate and see no benefits for them, so they will never consider purchasing the fancy product. I think Google needs to make the technology easier to use or create functions that are applicable to all types of consumers, so all age groups can gain some benefit from using Google TV. Google should also negotiate with TV stations to unblock their shows from airing on Google TV. Since these broadcast stations air the most popular shows, people may stop using Google TV if they are unable to enjoy their favourite shows.

Let us see if Google TV can become a huge success.

Here is a video explaining the idea of Google TV:

Since the HST implementation in B.C. this past summer, many consumers have become more price sensitive when purchasing expensive items. Many companies have suffered a decline in sales as the prices of their products and services now include both the PST and GST. To deal with the impact of HST on companies’ sales, companies use various tactics, such as sales promotions where retailers pay the HST on behalf of customers, to attract consumers to purchase their products and services. Sears Canada will offer HST rebate to B.C. consumers who purchased home heating systems, roofing or replacement windows and doors if HST is abolished by September 2011. This promotion called Sears HST Protection Program helps ease consumers’ anxiety, because the consumers know that Sears will reimburse the tax to them if the tax is abolished next year. However, the HST Protection Program may infringe the law. Sears Canada’s new promotion may influence citizens to vote a particular way, which is illegal.

Even though there are risks to Sears Canada’s new program, I think Sears has developed a good marketing strategy that focuses on HST. Since many B.C. citizens are against the implementation of HST, the incentive to purchase products or services from Sears will increase after the HST Protection Program is established. Sears is wise to design a program targeting price sensitive consumers, because the impact of HST on consumers is huge. On the other hand, the HST refund is only given to customers if the tax is repealed next September. If the majority voted “Yes” for HST, the tax rebate would not applied, leading customers to feel cheated by Sears. The company’s reputation will be immensely affected if HST is not abolished. In my opinion, Sears has to design another program as an alternative when HST remains. Furthermore, the tax refund happens one year after the purchase. The program does not benefit consumers until a year later, so the HST Protection Program may not be attractive to consumers.

I read an article called Electric Vehicle Drive-Up and Recharge Plan Unveiled on the Tech Europe Blog. The article is about a company, HaloIPT, has developed a technology that allows electric cars to wirelessly recharge their batteries. Owners of electric cars simply park their cars over an embedded induction pad in a garage or car park to recharge their cars. Before this technology was developed, owners need to use a cable to recharge their cars. Now the owners do not have to worry when they forget to plug in the cable into their cars. The recharging stations are not easy to access, and the recharging process takes 12 hours, so driving an electric car brings burden to a user. With the new recharging system, only 5 hours is needed to recharge a completely flat battery. The company also aims to install the pads in places where people park their cars everyday such as workplaces and supermarket car parks. To test the ability of the wireless recharging system, the company was wise to use an electrically powered bus in their experiment, because large vehicles can better test the extent of the technology.

The technology development company integrated the social trend of going green into their product development process really well. The company introduced a new technology that will break down the barriers of driving an electric car. This new technology will increase demand of electric cars. It satisfies the needs of current and potential electric car users by making the recharging process more convenient and eliminating the battery-recharging problems. In my opinion, this new technological system will be a success, because the company targets into a growing market of environmental friendly car users. Since HaloIPT is introducing a new technology, the technical team needs to design campaigns that inform people about how the system works and its benefits. When this recharge system is released in Canada, I think I will consider purchasing an electric car, because without the battery-recharging problem, an electric car is a great transportation tool that helps reduce pollution and is energy efficient.

Recently, Nestlé, the world’s leading nutrition, health and wellness company, announced the formation of Nestlé Health Science S.A. and Nestlé Institute of Health Sciences to tackle a new health industry of food and pharmacy.  Both organizations will conduct develop nutritional products against diseases such as diabetes, obesity and Alzheimer’s disease. As more people around the world suffer from diabetes and Alzheimer disease, Nestlé sees this as an opportunity to have food and beverage products that prevent and treat these chronic diseases.  The Nestlé Institute of Health Sciences, the Swiss processed food company’s Research and Development institute, will conduct research in biomedical science areas to determine strategies to improve health and longevity.  These approaches help maintain Nestlé’s idea of Good Food, Good Life through using research to combine food and medical science.

In my opinion, Nestlé’s marketing strategy has continued to stabilize its place in the consumers’ mind.  The processed food company chose its target market well, because many people who suffer from diseases are seeking ways to prevent their condition from deteriorating.  Since Nestlé is targeting a new industry, there are not many competitors in the market and they can easily attract consumers to buy its products.  One disadvantage of this business plan is there are many risks in selling consumer products that contain health benefits.  There are possibilities that consumers may claim that their health conditions are worsened due to consumption of Nestlé medicinal foods.  In the future, we will see more healthy food products from Nestlé in supermarkets and grocery stores that help us stay health such as avoiding diabetes and obesity.

I recently read a blog entry called Must Drink More Milk from Rachael Sawer.  The article talked about how Dairy Farmers of America launched the Must Drink More Milk campaign to encourage people to drink more milk, a nutritional beverage.  I find the article interesting, because Dairy Farmers of America uses innovative and hilarious commercials to target teens and young adults.  Through media, Dairy Farmers of America wants to show individuals the consequences of not drinking enough milk.  The creative commercials show different stories of how milk changes the peculiar characters’ lives.  I agreed with Rachael that these unique advertisements leave a mark in people’s memory and the hilarious advertisements can attract people to drink milk.  However, I think the Must Drink More Milk commercials are too entertaining, so some people simply remember how funny the commercials are and do not think about the meaning behind these commercials.  There might be opposite effects from the initial purpose of Must Drink More Milk campaign.

Here is a Must Drink More Milk advertisement about a monster who does not drink milk.  Let’s see what is the consequence of not drinking milk!

Will you drink more milk after watching this commercial?

In the beginning of October, Canada’s leading high-value low-fare airline, WestJet, signed a code-share agreement with Cathay Pacific, a well-known international airline. This partnership means that passengers buying Cathay Pacific tickets in Asia will be able to travel to six Canadian cities such as Edmonton, Montreal and Ottawa on a single ticket.  Normally, Cathay Pacific only has flights to Vancouver and Toronto, but now the passengers and their luggage will move seamlessly from the Cathay Pacific flight to the WestJet flight to travel to other cities in Canada.  WestJet, the Calgary-based airline, sees the agreement as an important part of its growth strategy, which will help the airline enter the international market.  According to the chief executive Gregg Saretsky, the partnership with Cathay Pacific will help the company reach its goal “to become one of the five most successful international airlines in the world.”

In my opinion, WestJet’s decision to partner with Cathay Pacific is a very wise move, because Cathay Pacific is an international recognized airline that has a broad customer base.  Through this agreement, WestJet will be made known to international clients especially Asian clients who are now the fastest expanded source of clients in the world, and can expand its international marketing network.  However, there is a disadvantage about this code-share agreement.  WestJet passengers need to book flights to Asia from travel agents or on Cathay Pacific websites, because WestJet will not sell tickets to Asia.  I believe if WestJet really want to succeed on the international level, it needs to offer flights to Asia or other countries.  The reason is that passengers travelling from Canada will turn to WestJet’s competitors when travel internationally.  The code-share agreement is a good starting point for WestJet to expand into oversea markets, but WestJet needs to improve continuously in order to become one of the most successful international airlines.

Apple has been the leader in the tablet computer market ever since the introduction of iPad eight months ago.  The company sold 3.3 million iPads during the first quarter.  Other electronic companies such as Samsung, Dell, Toshiba and RIM also want a share in the tablet computer market because tablet computers are now a popular trend.  Many consumers are thinking about buying a tablet computer, because it is useful and portable.  At the IFA technology trade show in Berlin, Samsung unveiled the Galaxy Tab device, which is viewed as a threat to iPad.  The hardware and applications of the Galaxy Tab are designed to target the weaknesses of iPad.  Samsung’s tablet computer is smaller and lighter than the iPad.  It supports Adobe Flash Player, so users are able to watch videos and play games on the Internet.  The device comes with a dual camera which iPad doesn’t have.  In addition, the Galaxy Tab allows users to make telephone calls.  Besides Samsung entry into the tablet computer market, RIM, the maker of Blackberry smart phones, is joining the competition by launching Blackpad in the future.  RIM’s new device combines the functionality of a mini computer, a music player and a media player.  The operation system of Blackpad is based on RIM’s new partner QNX Software Systems.

In my opinion, if Samsung, RIM or other companies want to have a position in the tablet computer market, they have to develop features that attract consumers to buy their products.  I like Samsung’s strategy for competing with Apple.  The Korean company designed Galaxy Tab to have features that iPad does not have, so consumers may choose to buy their product instead of Apple’s.  Will Galaxy Tab and BlackPad have a significant impact to the sales of iPad?  Will Apple remain to be the leader of the tablet computer market?  I guess we will have to wait and see.