November 18th, 2013 § § permalink
Starbucks is about to get a whole lot stronger as it expands its customer segment to a healthier population.
With its recent announcement of Fruit Packs, Starbucks has decided to introduce a healthier option for food in their cafes. Amongst their 19,000 stores internationally, most of Starbucks’ profits come from their sale of drinks. After witnessing a decline in their packaged food sales, Starbucks has attempted to launch the line of Fruit Packs to help increase revenue from packaged goods. The Fruit Packs have little calories and provide for a healthy snack on the go, and are going to be produced by third party suppliers in order to reduce costs. With the Fruit Packs coming into place, Starbucks has also decided to let go of some of their other packaged goods, e.g. bread and more. This caters to the demands and lifestyles of consumers as most want to eat a sweet treat that is not going to produce adverse effects on their health.
The Fruit Packs will be priced at $2.50, will be relatively small, and will replace their current $2 packs that are less healthy than the new option. Starbucks will also hold promotions, where buying a coffee or a drink will allow customers to receive a half price on their fruit pack, in order to gauge interest and to assess its success with customers.
With such a move, Starbucks not only expands their target market, but also allows for them to yield higher profits, if the Fruit Packs scheme proves successful. In other news, Starbucks also raises the prices of their coffee to raise profits, as coffee bean prices fall.
http://www.cnbc.com/id/100990171
November 18th, 2013 § § permalink
An online definition of corporate social responsibility defines CSR as the corporate belief that a company needs to be responsible for its actions – socially, ethically, and environmentally. This means that the company must ensure their actions are sustainable for the future, and provided for a greener world for both them and their customers.
Walmart has recently announced its future implementation of transforming their buildings’ roofs into green research labs. Over the next 2 or so years, researchers will get a chance to work on top of a Walmart roof and collect valuable scientific data from the green houses there. Scores of sensors and weather stations will be placed on Walmart’s Hayden Meadows store’s 40-something-000 square foot green roof, and Walmart is hoping this will be as successful as their 70,000 square foot green roof in Chicago. This research project will lead to vital information being extracted in order to determine how to build better green houses, roofs and conditions in the future.
Not only is Walmart generously helping such a cause, they are also improving their reputation in the eyes of consumers all around the world. Consumers will be keen to support Walmart in order to keep it going so their greenhouse research can continue, and loyalty will increase, as consumers look up to Walmart for offering their noble services. This strengthens Walmart’s value propositions, customer relationships and also better their core business values and corporate social responsibility, possibly allowing a more sustainable future, as well as profit levels.
http://www.greenbiz.com/blog/2013/10/28/walmart-turns-green-roofs-research-labs
November 18th, 2013 § § permalink
The first thing we notice after watching this advert is the humor in it, how it was great and memorable, and how the idea was funny and original. However, due to the tricks of the trade video marketers have used these days, advertisements like that of the above really has more than what meets the eye.
Video advertisements nowadays are created to target the market of the product, to be memorable, and to essentially attract more customers. A lot of planning goes into video marketing, for example having to set a time it is shown (e.g. after school hours on television if the target market is children). This Pepsi ad was actually shown on late nights as it catered to adults who would stay up to watch television, who would very likely enjoy a Pepsi whilst doing so. The desired psychological effect a company wants to have on its customers must also be decided upon, and this ad creates the feeling that Pepsi allows us to feel connected to out spiritual roots, to enable us to achieve what we always wanted to be (e.g. the kid wanting to become an established monk and finally doing so when he had pepsi.) The setting also plays an important role, this ad looks like it could have played around Asia, Europe or America, but unlikely to have been played in Africa, for example.
Pepsi commercial: https://www.youtube.com/watch?v=40DykbPa4Lc
November 17th, 2013 § § permalink
In a post on Kelly Huijia Yang’s blog, Lululemon was supposedly supporting their new sheer nirvana yoga pants line that were incredibly see-through, as this was revealed when a couple of angry American customers wore underwear over the yoga pants to showcase this protest. However, the founder of Lululemon, Chip Wilson, supported these pants and allegedly claimed that these jealous women didn’t realize that “some women’s bodies just don’t actually work for it (the pants).”
Oh no he didn’t!
Customer relationships are a big part of a business scheme, and vital in making sure the business keeps a good reputation and maintains profit levels. Customer relationships do not only help these, but they also showcase the importance of making customers feel like they are valued and maintaining vital interaction between producer-consumer chains. Keeping customers at a good level will ensure brand loyalty and consistent demand. If Lululemon’s founder really made this statement, this would heavily impact the company in a similar fashion to that of Abercrombie and Fitch. abercrombie’s customers were angered when the founder/owner/CEO mentioned that the clothes and accessories they sell were simply not for “fat” people or people under a certain size.
Not only is this harmful to the company’s sustainable business future but it is also harmful to the self-esteem of many women out there. This not only impacts the business market but could also cause social disorder.
November 17th, 2013 § § permalink
Social entrepreneurship is defined by Google Dictionary as “the process of pursuing suitable solutions to social problems, whilst adopting a mission to create and sustain social value.” Many entrepreneurs in third world nations have faced various financial problems when it comes to wanting to start up their own businesses – and as lenders around the world begin to lend a helping hand, eco-friendly business people in third world nations such as central Africa and Colombia are beginning to gain confidence in entering the international market.
Why do this? Lenders have been concerned about the employment issues in several parts of the world and came to the conclusion that if more entrepreneurs were able and willing to start their own businesses, employment rates will rise as the demand for human labor increases.
According to the ILO, in order to maintain today’s level of unemployment, 400 million new jobs must be created in the next decade or so – and the fact that unemployment in present day is already rising imposes a problem. If this problem is not treated soon, not only will current unemployment levels rise, this will also not allow for a sustainable future employment rate and will effect other parts of the economy, e.g. inflation.
http://blogs.wsj.com/washwire/2013/06/17/lender-targets-developing-nations-top-entrepreneurs/
