Sustainability = Better Brand Image and More Profit

After I listened a lecture about sustainability in commerce 101, it took my interest, because companies starting to prefer more eco friendly products and that preferance were increasing company’s both brand image and revenues. For example, The Hertz Corporation, the world’s largest general use airport car rental brand, announced that they are offering clean diesel base cars. With this feature company became the first car rental company who offers that car-fuel technology. Company called this section; “Green Traveler Collections”.

In that category, company offers variety of cars which are fuel efficient and that use clean fuel with lower CO2 and low emission technology. In order to support “Green Traveler Collections” company is using statistics[1] to show the savings to customers when they choose those cars. Thus, this creates cheaper car rentals and customers will spend less money on gas. By this category, company is aiming more eco friendly customers, who cares about sustainability and environment. Chairman and CEO of the company Mark P. Frissora says “Hertz has one of the largest, most fuel-efficient fleets in the industry”. It is anticipated that this feature in the company will increase company’s sustainability profile and generate more revenues.

Related Articles:

http://www.kbb.com/car-news/all-the-latest/hertz-adding-2012-volkswagen-jetta-tdi-to-its-green-traveler-collection/



[1] http://www.hertz.com/rentacar/productservice/index.jsp?targetPage=greentravelercollection.jsp&leftNavUserSelection=globNav_3_5_1&selectedRegion=United%20States

American Eagle Outfitters and their Marketing Strategy

 

Katya Sen’s post “Aldo’s Mass Customization Strategy” took my attention into mass marketing strategy. An example about that topic is the Zara case which we did in one of the lectures. Another example related to this topic is e-marketing and mass marketing strategy of company called American Eagle Outfitters.

American Eagle Outfitters is an American clothing brand, and their target audience is based on mostly teenagers. However, their diverse range of products, and suitable pricing leads adults to shop from this company. As we can see, company’s unique marketing strategy is their mass customization strategy. Customers purchase their products mostly from company’s webpage. Moreover, company offers online sales from their official website, and it is a simply designed and categorized web page where a customer can find every product of the company. Thus, customers purchase their products mostly from company’s webpage. Key difference between store sales and online sales is the diverse range of products.

Company mostly concentrated on their online sales, because it is much easier to show their products to customers and easier to make revenue. Both less fixed and variable costs create better discounts on online products, and provide broad variety of their own products. Consequently, customers don’t have to check the stores and they can purchase their favourite color-striped shirt or khaki pant via one click.

Related Articles:

http://247wallst.com/2012/08/22/american-eagle-outfitters-jumps-on-results/

http://www.internetretailer.com/2011/03/09/american-eagle-stalls-2010-flat-web-sales

Acting Green = Competitive Advantage and Higher Returns

After CSR & Sustainability, I realized that nowadays, environmental strategy creates a big positive change in companies sales. Using eco friendly products and mentioning this feature in advertisements makes your company different among other competitive companies. Also Wesley Prahalad’s  “Wal-Mart Goes Green” article created an interest on me to write about companies which are supporting environmental actions.

One of the example for that type of company is Boeing. Boeing announced that, their new airplane model, Boeing Dreamliner is designed to cut fuel 20% which is a big innovation in airplane industry. Company says that, improvement and new features in engine technology is the major contributor. For the success of this project, company adds “nearly a two-generation jump”.

Company is anticipating higher revenues from this model. One of the key point for this prediction is, its eco friendly feature. 20% fuel efficiency makes airplane green and cuts the main percentage of the air pollution. Also, company calls this model; passenger-friendly. Its design with larger seats and windows attracts passengers on long flights. Furthermore, being fuel efficiency cuts the costs and can decrease price of tickets. Briefly, this innovative feature will raise the standards and expectations in airplane industry, and generate much higher revenues to Boeing.

http://www.environmentalleader.com/2011/09/27/boeing-787-dreamliner-to-cut-fuel-20/

Nike’s Marketing Strategy in Social Networks

Rodrigo Rejas’s Blog post about IT systems and its relation to business opportunities took my attention towards the importance of Internet in business life. Nowadays, it is stated that 1 out of 4 people on earth is using internet. Furthermore, the most popular websites are social network sites and research engines such as, Facebook and Google. They have a massive mass communication system mostly formed via their users. Facebook has more than 500 million members and Google has 700 million daily visitors.[1] After these statistics, companies changed their marketing strategy, and started to concentrate on e-ads and webpages. Many companies formed their official page in Facebook where you can find basic informations about that company. For example, Nike has an official page in Facebook and company has 12 million viewers, who have to be the members of Facebook. This is a great opportunity to publish their news.  This news includes recent products, company’s charity events, campaigns, discounts or promotions to encourage their customers to buy their products and follow the latest news. The best part is, company doesn’t have to invest huge amount of money to their advertisements. Also, 12 million viewers show the popularity of the page and the necessity of IT departments in companies.

http://www.facebook.com/nike



[1] http://www.socialmediareinvention.com/2011/12/statistics-fortune-magazine-facebook-versus-google.html

Delta Airlines will offer Wi-Fi on both Domestic and International Flights in early 2013.

It seems that Delta Airlines’s IT sector is doing a successful job, because company announced that they equipped Wi-Fi technology to their fleet. This makes them the first airline company, who offers Wi-Fi feature also on domestic flights. Next year, it will be possible to watch your favourite TV show online or make a conference call with your business colleagues on flights. According to company’s official website, they equipped wifi technology to both their domestic and international flights. In their advertisements about this innovation they mentioned that it will be in every flight, and this new on flight service will cost extra. Thus, for customers who doesn’t want to use wifi don’t need to pay for this feature. Company analysers say that, this will increase the demand for flights and the ticket sales. Also they added that, this feature will effect mostly businessman who needs to check mails and their products. Thus it will erase the lack of communication on flight and will generate non-stop communication and concentration for companies about their businesses. Another comment came from, Bob Herbst, founder of AirlineFinancials.com said that “It’s a big draw for the premium traveler, which generates so much of the revenue the airlines get”. In conclusion, this innovation on airplanes, will change the communication style on flight and create a new way of competition between airline companies.

Original Article: http://www.startribune.com/business/160778445.html

Image: http://travel.usatoday.com/flights/post/2012/06/delta-to-offer-international-wifi-service/792828/1

How Axe Became Successful Among Other Well-Known Fragrance Brands

Fragrance company Axe was founded in 1983 in France, and company entered into US markets in 2002. Their only product was a body spray. Mid 2000s, company started to explore other sectors such as, shower gel, hair care and deodorants. In those areas company made success which was unexpected. Axe, started to take control of these sectors after changing their marketing strategy. Company used different type of advertisements to attract youngsters. In those advertisements they were using fragrances as an essential body requirement for guys, and company used woman as an attractive gadget in their advertisements to affect youngsters and choose Axe products. Nowadays we call that “sex sales”.

For example, in 2008, Axe made a commercial about their new product; “Axe Dark Temptation” which is a new fragrence, smells sweet chocolate.They used a man made of chocolate who uses public transportations and goes to collage, women were biting and eating chocolate from him. Briefly, Axe’s “sex and sales” marketing strategy made an explosion on the sales of their products, and generated huge profits in return.

http://articles.businessinsider.com/2011-10-10/strategy/30262401_1_axe-tv-unilever-marketers