Growth Opportunities for Ecocalzer

During class the other day we discussed an Arc Initiative case called Ecocalzer.  I feel that this company has a lot of potential to expand into international markets such as Vancouver because its value proposition gives it a competitive advantage over existing shoe companies in the market. Its mission is to produce fashionable, hand made, eco friendly shoes. If Ecocalzer can find an effective and accessible channel to reach its consumer base through, it is almost guaranteed to succeed because it has minimal competition. What I propose that Ecocalzer does is establish a consumer base within its niche market: fashion and environment conscious communities. A good way to reach these consumers is by displaying their shoes at art schools such as Emily Carr and at art markets such as Granville Island or the Harmony Arts Festival.

An incredible opportunity for Ecocalzer to increase its brand awareness is through social media:  if all of the one thousand students in COMM 101 alone “likes” or “shares” its Facebook page, surely word would have spread. An attached video that tells John’s story would make the product even more appealing to consumers as it is creating shared value by redefining productivity (solving an environmental issue).

However, Ecocalzer must be aware that there are many cheaper substitutes for its product, so if it wishes to maximize its profits, it needs to sell at a moderate price where the consumer’s marginal utitility is equal to marginal cost.

I look forward to seeing Ecocalzer expand into the Vancouver market one day!

Help support John by “liking” this page!

Resources: https://www.facebook.com/photo.php?fbid=180548408805280&set=a.180547658805355.1073741828.180530798807041&type=1&theater 

Is Fair Trade Coffee Better?

Have you ever seen a problem and wondered how you can solve it? Social entrepreneurs have the power to change the way things are done: they see a problem, and develop a business that solves the issue. What better way is there to run a business?

Bridgehead Coffee is the perfect example of the story of an entrepreneur. It was foundedby two United Church ministers and two social activists who were concerned for the prospects of small-scale coffee farmers in Nicaragua.  What Bridgehead offers is coffee made from fair trade coffee beans. The company has a commitment to work with only small scale farmers who provide Bridgehouse with the best quality coffee beans at a price that reflects the hard work that the farmers have put into the harvesting process. They fulfill their part of the agreement by bringing out the best in the raw ingredients of their coffee through practices that minimize the impacts on the environment.

While social entrepreneurs may not be able to minimize their costs like other companies whose only goal is to maximize profits, they gain additional social profit. These entrepreneurs attract an emerging group of consumers who are becoming increasingly conscious about the journey behind the products they buy.

Learn more about the story behind Bridgehead Coffeehouse:

Or Visit their website: http://www.bridgehead.ca, make sure you check out their blogs as well to learn more about what they’re involved with! Bridgehouse is seeing so much success lately that Globe and Mail did an interview with them.

If you have additional interest in the development of social entrepreneurship in Canada, make sure you check out this article too!

Are Lululemon Pants meant for ALL women?

Re: Tiana’s Blog Post Lululemon’s Culture: The Pursuit of Greatness

Lululemon has always been known for the positive culture that exists within the organization; employees, consumers, and investors alike are drawn to the culture that empowers individuals to live a healthy fulfilling life. Just as my classmate, Tiana mentioned in her blog post, “Lululemon’s organizational culture differentiates from the typical business because of its value in encouraging employees’ self development”.

Unfortunately, shortly after her blog post was published, the value proposition of Lululemon seemingly took a drastic change. Founder of Lululemon Chip Wilson stated in a Bloomberg interview:

“quite frankly, some women’s bodies just actually don’t work for it.”– Chip Wilson in response to why pants are pilling

Perhaps his intention behind that statement wasn’t to discriminate oversized women, but interviewer Reagen excessively emphasized this point and the media took full advantage of Wilson’s slip in speech. The company’s brand image wasn’t improved when Wilson stepped up to make a public apology that was filled with hesitations making the apology seem insincere. The founder defines the culture, values, and beliefs of a company, so Wilson’s statement damaged the image of the company immensely. My friend who has been a loyal yoga teacher at Lululemon for the past four years told me that he didn’t wanted to teach at Lululemon anymore because he felt that his values no longer aligned with those of the company.

Original Interview

Wilson’s Apology

 

To see what others think about this situation, check out:

http://www.ctvnews.ca/business/lululemon-founder-says-yoga-pants-don-t-work-with-some-women-s-bodies-1.1532005#ixzz2kVUdiwp1 

Image from: https://blogs.ubc.ca/aliceguo/files/2011/04/lulud.jpg 

The Great Canadian Grocer War

 

The Canadian grocery war is becoming increasingly intense. The three big players of the industry: Loblaws, Sobeys, and Metro are all dropping in revenue significantly. Loblaws saw a decrease in almost 30% of earnings in its 3rd quarter this year, while Metro saw a 9% decrease in sales this year. Although these three giant corporations hold a competitive monopoly in the grocery industry, they are losing out due to the threat of new entrants. Low margin companies such as Walmart and Target are aggressively competing with the traditional grocers. They are able to offer what Loblaws, Metro and Sobe

ys can offer at a cheaper price. Not surprisingly, Amazon is continuing to innovate its business to adapt with the times. They are now offering produce on their website, further threatening the oligopoly that the three grocer giants once held. As these low margin companies continue expanding into the grocery market, the traditional grocers are also expanding into other markets. Loblaws is seeing much success in its Joe Fresh Fashion department. However, if these companies wish to survive, they must continue innovating their brand by creating points of differentiation between themselves and the lower priced companies.

Watch this video for a full analysis of the current situation.

Resources:

http://www.bnn.ca/News/2013/11/13/The-challenges-facing-Canadas-grocers.aspx

http://www.theglobeandmail.com/report-on-business/international-business/us-business/amazon-to-take-on-grocers-as-retail-landscape-gets-more-crowded/article15172182/

http://www.reuters.com/article/2013/11/13/metro-results-idUSL4N0IY3T020131113

http://denverbargains.com/wp-content/uploads/2011/10/walmart-pricematch-produce.jpg

http://fresh.amazon.com

 

 

FREE lipstick for us, FREE consumer information for M.A.C

 

Last week when I was making my purchase at M.A.C cosmetics, the first thing that the sales asked me was what is your last name. She continued on to ask for my first name, my email and my address. Finding it strange that she upright asked me for all my personal information without the slightest explanation as to what it was for, my Sauder sixth sense kicked in and I asked her what this information was for. Her explanation was that they had a rewards program where you receive a free lipstick for every six M.A.C packages you return. I thought to myself: isn’t that a smart way of obtaining consumer statistics to help with marketing while the customer happily thinks that they are simply earning themselves free lipstick.

When I went home, I did some research on M.A.C and I found this very resourceful blog called Viral Marketing that talks about how brands market themselves. In its blog about M.A.C, it outlined all the different strategies that the company used to create brand positioning, brand marketing and product differentiation. After reading this blog, I realized that the “Back to M.A.C” project was actually a marketing tactic that uses our commitment to the environment in returning packages to justify our need to buy more M.A.C products and for them to gain access to our personal information. Beware of greenwashing.

Resources:

http://marketingdope.blogspot.ca/2007/11/mac-cosmetics-story.html

Images from: http://www.maccosmetics.com/giving_back/btm_return_packaging.tmpl

http://irosado.blogspot.ca/2009/09/history-of-mac-cosmetics-inc.html