As consumers we all favourite products and brands that we love to tell our friends and family about. I am much more likely to try a new product if someone I trust has recommended it. But this is no new discovery – marketers have known for decades that consumers who provide positive word of mouth about their products are huge contributors to increasing sales. What is relatively new, however, are consumers who use the internet and social media to talk about the products and service they like, not as paid advertisers, but to share their experiences with the online community. With the internet, one consumer has the power to reach millions of viewers around the world, not just their best friend or their neighbour.
Youtube has become a very popular avenue for consumers to post videos of “tutorials” to teach other viewers everything from how to fold paper cranes to how to change a flat tire. Often in these tutorials, the creators of the videos are regarded as experts, and any product they use in the tutorials are seen as the best products to get the job done. This is especially apparent in the makeup and fashion tutorials where young, attractive girls share their beauty tips and post videos of their favourite products. Some go as far as disclosing the price of the products and where to buy them. There are also many websites that serve as a platform for consumers to recommend their favourite products and generates more discussion.
Instead of relying on traditional advertising and celebrity endorsements, many companies are taking advantage of these expert consumers and giving them products to try and recommend to their followers. The partnership Lancôme created between Youtuber, Michelle Phan, is a prime example:
It is undeniable that technology has changed the face of retail experience over the past few decades. Technology has made every step in the process more efficient from the moment that the products first come into the stores to the checkout counter where it ends up in the hands of the consumer. As more and more firms embrace the relationship era of building a loyal customer base through excellent customer service, more innovative technology is emerging to support these business operations too. In this post, I want to focus on three technologies that could redefine the shopping experience in the near future.
First, we have the virtual change room. Many prototypes of this possible device have already been created and are being tested in some markets. Through motion sensing technology, similar to that used in the Xbox Kinect platform, consumers are able to virtually browse through a store’s catalogue and “try on clothing” all with a flick of the wrist, saving the consumer time and the retailer floor space.
"Swivel" Virtual Dressing Room
Another recent development is the iFood Assistant, created by Kraft. This shopping tool is able to suggest to consumers a menu and all of the ingredients required for that menu, just by scanning the consumer’s facial features and estimating age and gender with a built in webcam. The concept behind this creation is to point consumers in the right direction when it comes to buying the groceries and expanding there recipe book, because Kraft recognized that many consumers who walk into the store don’t know what they are making for dinner.
The third technology, Mobile Phone Shopping, has already been adopted by retailers in various countries. This allows consumers to browse through the store and make purchases not at the checkout counter, but through their mobile phone. Who doesn’t hate waiting in line for the cashier, especially during the Christmas season?
No matter what the goals of retailers are, technology is there the give them the edge in a unique retail experience.
A very recent ad campaign was launched by the Thai Military Bank (TMB) titles “Make THE Difference”. The purpose of this campaign is to motivate people to be proactive in making a difference to their own worlds. The first video released in this campaign tells the story of how the football (soccer) team from a floating village in the south of Thailand called “Koh Panyee” was formed and became a champion football club. Take a look at the video below:
The message of the campaign is simple, but powerful, and the advertising agency has certainly illustrated the story in a beautiful way. However, I find it difficult to make the connection between the campaign’s vision to inspire people and the company’s core objectives (banking service for those who serve in the military and their families). My guess is that the TMB is using this campaign in hopes of improving their brand image and also reaching a larger audience to increase brand awareness. Choosing Youtube as a primary communication channel for their ads was good way to spark conversations around this campaign. Youtube is already a popular platform for users to share their stories and experience the stories of others. Despite the risk of some users openly criticizing the videos and expressing their dislike, TMB can trust that the Youtube community will help them spread the word around.
Source: www.underconsideration.com
Over this past week of March, I have observed the slight change on the coffee cups in the hands of students around campus. At first I was puzzled, but taking a closer look at the cups, it suddenly hit me…Starbucks has begun phasing in their new logo! This month seemed light years away back in January when the decision to introduce a new logo was announced, but it has finally arrived. Over the next few years – few months, even – the world will witness the results of change to such an iconic brand.
As Cristalle Lau pointed out in her blog post, Starbucks received tons of criticism from their hard core coffee drinkers prior to the release of the logo in production. Many warned that Starbuck’s was following in Gap’s footsteps with the failed launch of their new logo only months before.
While loyal fans cringed at the thought of change, others embraced it. A study done on the effects of altering well established logos supports this difference in opinions between brand ambassadors and less dedicated consumers. It states that:
“Those with strong brand commitment will see the original brand logo– and the associations–as representing themselves and the integral relationship they have with the brand.”
What the angry loyal fans don’t realize is that Starbucks may be looking for opportunities to expand into new markets. Studies also suggest that removing the English text makes Starbucks more accepted globally. They are engaging in a market development strategy by reaching new markets, and perhaps a product development strategy by stepping away from coffee and leveraging their brand to introduce new products. Personally, I am excited about the modernized logo, it’s about time they freshened up their brand image. Whether it propels their brand further or cuts away value for its current consumer base, only time will tell.
Source: Starbucks Headquarters, Seattle
When it comes to marketing a product, firms want to come to up with the latest campaign that appeals most to their target market. But to what extent of freedom should firms be allowed, before their marketing efforts may have negative repercussions? Rachel, from the AdvertisInc blog squad shed some light on this very important (but often ignored) topic in her latest post: “Say NO to Smoking”. She highlights the new campaign run by Camel to target adolescent girls and young women with their trendy No.9 Cigarettes ads, placed in popular girl’s magazines. By riding on the elegant brand of Chanel’s No.5 perfume, Camel is attempting to associate their Cigarettes with the image of sophistication and femininity, what every trendy teenage girl strives to achieve.
Girls’ Glamour Magazine
Should Camel be allowed to influence young girls in such a manner? I certainly don’t think so. Although they may not be violating any government regulations with this sort of advertisement, the question of ethics comes to many people’s minds.
Another company who has gotten a lot of buzz from the media on the ethical concerns of their campaign was Groupon, one of the fastest growing companies in North America. They spent millions of dollars to secure a spot during the Superbowl, only to stir up anger in many viewers and minimal return on their investment. Their “Save the Money” campaign was an attempt at making a light joke with some serious world issues, but the audience didn’t find the punch line funny at all. Take a look at the ads below and decide for yourself:
As firms recognize the increasing importance of marketing, marketers are pushed to come up with more innovative campaigns. However, where is the line drawn between being creative and being just plain offensive?
A feature article in a February edition of the Economist really caught my eye. It highlighted a “new-to-the-market” product that will have an impact on the way high-tech and everyday products are created in the future: a 3D printer. Not surprisingly, this sophisticated technology has existed for more than a decade, however it remains unknown to the majority of consumers.
These 3D printers have the capacity to print out products ranging from jewellery, soccer shoes, race-car parts, lampshades, to even functioning grandfather clocks, depending on the size of printer! Imagine what this means for the production of complex and everyday products. One day, a simple desk lamp sold at Walmart may be “printed” by the manufacturer rather than assembled piece by piece. Although the 3D Printers are still in the Introduction Phase of the Product Life Cycle, researchers are estimating a significant growth in the demand for this product as it is continuously being reengineered to the level of commercial use by both large-scale manufacturers, and in-home designers.
Currently, the 3D printers are being used by engineers and product designers, who make up the 2.5% of innovators on the Diffusion of Innovation Curve, to easily create prototypes of their new invention or design as well as manufacturers of products who require complex parts, such as airplanes, to save time, materials and labour costs. Although it may become the new trend for product manufacturing, the impact that this would have on the labour market and manufacturing industry should be taken into careful consideration as well. This product could mean the loss of thousands of jobs as labourers are replaced by 3D Printers, but it could also spark the imagination of entrepreneurs who can utilize this product to invent new creations that the world has never thought possible.
Excellent customer service is becoming an increasingly important focus to companies who recognize the value they are creating for their target market through their front-line employees, especially in the retail and food and beverage industries. Tello, released on Wednesday, February 8th, is the latest customer service rating app available at the iPhone App Store. This new app builds on the innovative geolocational technology built into smartphones to allow customers to rate the employees in nearby businesses including the barista who handled their coffee order to the bellboy at their hotel. They have the option to give the employee a thumbs up/down and leave a comment.
www.tello.com
I am a HUGE believer in having a constant stream of feedback in order to improve performance! I can certainly think of numerous situations where I was given outstanding service by an employee, but did not have the time to seek out the manager to let him/her know about my experience. On the other hand, I’ve also had my share of run-ins with employees who absolutely did not understand the meaning of customer service, but again could not notify the manager. Rather, I end up venting to others about this bad experience. With this app, I would be able to direct my negative feedback to the business so that they will (hopefully) correct the situation and avoid similar mishaps in the future. Taking the feedback seriously shows that the company cares about its consumers, while also consistently reminding employees of the importance of good customer service. This app definitely has the potential to become another tool for businesses to engage customers and gain their loyalty.
After trying my hands at the infamous blind taste test for our Marketing Research Activity in class, it made me wonder how the Pros do it. With the help of Google, I dug up a study done by Coca Cola which led to the introduction of “New Coke”.
Back in the 1980’s, Coke held the majority of the cola market share, but Pepsi was quickly gaining momentum, outselling Coke in the supermarkets. In an attempt to remain competitive, Coke decided to conduct a market research study to determine which formula of cola the consumers preferred. The design of their research project consisted of a blind taste test in which the subjects compared the taste of Coke and Pepsi along with 3 new formulas. Analyzing the primary data collected revealed that the majority of consumers preferred a new sweeter formula over both the Coke and Pepsi formula. This conclusive finding was enough to persuade Coke to deviate from their traditional formula to “New Coke” in 1985.
The result of the switch was an even greater drop in Coca Cola’s sales. Consumers were furious with this decision, refusing to buy the New Coke, although the taste tests proved otherwise. But where did the marketing team behind this research go wrong? They realized that the problem lied in the objective of the taste test study. Coke focused too narrowly on the physical attributes of its product (the taste) while ignoring the psychological implications such as brand loyalty. The taste of Coke clearly wasn’t the problem, but perhaps it was Coke’s ability to penetrate its market and reinforce its brand image.
However, once production of New Coke had seized and the company reverted back to its traditional formula, sales skyrocketed, leaving some analysts wondering if that was their strategy all along.
Apple is undoublty one of the fastest growing and most succesful companies in the world today. As students and young-adults with disposable income, we are Apple’s prime target for their Mac products. As Breighton Ma mentioned in his blog post “Branding, Why?”, Apple has done an incredible job of positioning itself in our evoked set and associating its brand with the cool factor.
However, their “Hi, I’m a Mac” commercials and narrowing in on how a Mac user looks and behaves, Apple may have defined it’s target market too narrowly (that’s definitely nothing to laugh about). Microsoft recognized this mistake by Apple and immediately capitalized on the opportunity to capture the segment of consumers who Apple missed in its commercials. Check out Microsoft’s attempt to break the stereotype that Apple has portrayed as a PC user:
This campaign certainly goes beyond the 2 stereotypical characters in Mac commercials and connects with the audience on a more personal level. Using real, everyday people from around the world to vouch for the PC was definitely a smart move to demonstrate the versatility, ease of use and the incredible size of the PC community. From six-year-olds to engineers, virtually anyone can be a PC user.
Although it may appear that Apple has the competitive edge over Microsoft with its Mac products, this is not the case if you consider the many different suppliers of PCs that consumers have to choose from. The sleekness of the Macbooks and performance of its operating system may be popular among students, but in reality, more students own a PC and than a Mac. Microsoft has been able to capture and retain a large consumer base because it is the most widely used operating system, priced competitively, and packaged in various options. PCs continue to fly off the shelves, keeping up with its competition.
Healthy minds and bodies are some of the few things that never go out of style. Entrepreneurs are constantly coming up with products that drive this trend of being active and eating right. Luckily, they’ve come up with some innovative ways that make it easy for us to incorporate a balanced diet into our hectic schedules.
Baby Carrots definitely made a huge splash in the vending machine market with their dynamic campaigns, targeting younger generations with bold videos and clever packaging. Their strategy of associating their product to junk food (eat’em like junk food) is effective in capturing kids and teens, but by doing so, they’ve limited their audience to kids in school and perhaps made it difficult for themselves to introduce differentiated products in the long-run.
Image source: Baby Carrots
The geniuses behind Baby Carrots weren’t the only ones to venture into the vending machine market. I stumbled across a Barcelona company, Lo Fresco, who also introduced a vending machine, named “Lof”, featuring only healthy snacks. The concept of the Lof is nearly identicle to Baby Carrots, but they have taken a different approach with their marketing. Lof is designed to appeal to consumers from any generation with an apetite and a healthy conscience. These machines are appropriate not only in schools, but in any location, including offices. They also dispense a variety of products, offering consumers more choice and satisfying different taste buds.
Two companies with two completely different marketing strategies have capitalized on the convenience and accessibilty of vending machines, redifining the type of foods that are associated with being on-the-go. No matter which approach companies are using to substitute junk food with healthier alternatives, our attitudes toward food is, with no doubt, heading in the right direction.
