Carina Ip's Blog

Gap’s stirred up discontent in social media last year when it premiered it’s newly renovated logo. The new logo was met with no open arms and pretty negative feedback. I am writing this as a response to a marketing blog (probably done last term) by Cindy Cui. She posts

“GAP, an established fashion retail store since 1969, has stealthily changed its iconic blue box to a  a smaller blue exo-box to the right as its logo. GAP’s change of logo reveals its new strategy to change its market positioning from a preppy American image to a modern and sleeker look. On the web, consumers negatively criticized GAP’s stupidity to ruin its classic and iconic brand identity that took it twenty years to build.”

I’ll start off with my personal opinion, the new logo looked like a photoshop newbie was handing in a project done very last minute. The reference to the former blue box in the corner is almost insulting, I just didn’t understand the concept at all! The logo didn’t look more modern or sleek, rather it looked cheap and thrown together.

Personal opinions aside, Gap’s strategy of rebranding seemed abrupt and sudden. The Gap logo is something they probably invested alot into, so why make such a big, visual change all of a sudden? From an article I read, Gap’s sales were declining so they wanted to make a new brand that would target a new segment of buyers that frequent shops like Zara and H&M. However, the new brand isolated it’s current consumers and had an adverse effect on attracting a new target market.

Next time, if a brand wants to do this (imagine Apple changing it’s logo to a Pear!) I would suggest 3 things.

1. Slowly integrate new rebranding in.
2. Ask for opinions from the public.
3. Hold a Vote.

With these three steps, it is clear to customers that their opinions matter and those who feel that they have contributed to the growth of Gap will probably become loyaler customers. Gradual integration also gives people more time to digest the new and unfamiliar, giving more time for a company to adapt to any changes, rather than having to be faced with such a catastrophe like Gap did.

Another logo, I just don’t like…

I am part of a club on campus called the Chinese Varsity Club. We recently held an event that was sponsored by the website, CakeDeals. They gave us cards to give out to each attendee, the premises of the card was to increase traffic to the website. The card is brightly colored (attention), promises a prize (interest and desire) and finally they are given simple instructions to log onto the site to see if they have won or not (action)!

This type of sales customer promotion is holding a contest to lure customers to try. To add onto that CakeDeals also sponsored a couple of prizes that added incentive for us to speak highly of them. The website does not actually sell any coupons or bundle deals, rather it is a site that compiles all the noise of the other coupon sites into one, neatly packaged website.

Cakedeals has solved a new problem arising from the recent trend in websites offering discounts and vouchers. They have found a niche in the online voucher industry without actually having to go through the hassle of sales, and contracts with business owners. While there are many websites offering daily deals and daily email subscription services, no one liked receiving all that extra spam and looking through each site seperately. Cakedeals successfully found a target market of those lazy, tech savvy bargain hunters that appreciate the  ease of all the deals in one site. Without the extra clutter in the inbox followers such as myself can compare and view all the deals being offered with ease. This is a product I have faithfully stuck to and promote to my friends and family, all of which find added value in the simplicity of the site.

As the slew of reality TV continues to diversify itself a new “America’s Next” has been picked up by NBC, claiming to find America’s Next Greatest Restaurant. Following in the footsteps of America’s Next Top Model, American Idol and other shows like America’s Got Talent, this new reality show offers the prize of a restaurant franchise business, equipped with 4 knowledgeable investors and exposure to the American TV watching population. The objectives of this show are like any other, contestants compete in challenges and at the end one prevails and wins the grand prize. The interesting thing about this theme is that the winner will be opening franchises of a fast food restaurant, a business that is completely accessible to the public. Unlike watching a model win a title, seeing a restaurant go from a dream to an actual business has the potential to attract a large consumer base. The novelty of trying the food may be enough for a fast food restaurant to succeed.

This unique integrated marketing mix is pulling fast food eaters to want to try the new product. At the same time the contestants are using push marketing to sell their idea of a restaurant. It is arguable that this type of show is direct marketing, as the media is carrying a specific message to inform the population of the process and formation of a new fast food chain.

After watching the whole season, would you try their food?

I came across a marketing blog that is about “news and views on the female consumers” called Wonder Branding and what caught my eye was an article written about the girl scouts marketing tactics in the US. With a little bit of supplemental research, to my astonishment, the girl scout cookie business generates $700 million dollars in sales! In the article the writer brings up an experience where she overhears tactics of selling demonstrated by a girl scout. A popular excuse and reason used to reject the girls would be because of dietary reasons, “on a diet” or “watching the calories” but in the situation, the girl comes right back at the customer with

“Okay.  Well, guess what?  You can still buy a box and donate it to our troops overseas.  How would you like to buy a box for our soldiers?”

and honestly how do you say no to that?

This amazing video exemplifies and shows the scope of what the Girl Scout Cookies brand is. The re-branded Girl Scout Cookies, emphasizes it’s positon as a stepping stone for  young girls to learn the logistics of operating a business and helping the community.

Analyzing this advertisement through the AIDA Model

Attention: The inspirational background music paired with the graphics really grabs your attention.

Interest: The content of the story written out addresses specific questions that capture the interest of viewers.

Desire: Images of the cookies themselves as well as the social issues that they promise to help.

Action: “So the next time.” Implying that you will buy the product!

Another cool video about the cookies:

A customer came in the other Sunday, and gave me his spiel about how when he was in his working years, when the common grocery store announced it was going to be open on Sunday’s an uproar of controversy occured. But now as the consumer driven market continues to flex its powers, TD Bank is also opening on Sunday’s and therefore will be open 7 days a week! Other banks are just starting to opening up their Saturdays!

Why is TD Bank opening on Sunday’s? Well basically to build upon their brand of Comfortable Banking, and what more comfort than being open 7 days a week (besides 24 hour banking :O ). From a couple of conversations with Sunday bankers, alot of people really appreciate the extended hours and convienience of being able to fulfill their financial needs on a Sunday, as well as other little things like gaining access to their safety deposit boxes.

TD has exceeded at positioning its brand as being custmer centric. The added value of customer service is TD’s way of differentiation and increases loyalty to an industry that is typically not very personable. This dedication to providing a good customer experience, has transcended its way into training programs and won TD the title of “Highest in Customer Satisfaction in Retail Banking in the Mid-Atlantic Region” 5years in a row.

Prior to my employment at TD, I was unaware that the people there treat you so well! So my suggestion in promotion to TD, would be to appeal more to the students who have grown up sheltered from personal banking. Most students either don’t bank, bank solely online or have their parents do their banking, and a majority of teenagers simply bank with whichever bank their parents bank with. By doing sponsorships of university events and giving student perks, TD will expose what a wonderful bank they really are.

In response to Sydney Archer’s blog, I wanted to talk about Tim Hortons Roll up the Rim promotion. Tim Hortons has differentiated it’s product by offering prizes, small and big, to seduce customers to purchase. And much like how $5 is almost synonymous with Subway, rolling up the rim is definately a trademark for Tim Hortons. This sales promotion is so popular to Canadians that a special tool was invented to make the rolling more efficient.

This sales promotion is a limited time offer and it is pull oriented (straight to consumer). Basically Tim Hortons’ is giving consumers more bang for their buck, because with the purchase of a drink (no matter what size) consumers are automatically a potential winner (or loser), and with the odds advertised straight on the cup, Tim Hortons has alluded to the transparency of your chances. With that being said, I have not won a single thing, so much for “1 in 6 chances”. I’m getting tired of rolling up the rim to…. “Please Play Again” but there are definitely different opinions and with Canadians rolling up rims for 25 years it’s undeniable the success Tim Hortons sees in doing this year after year. Just search on Twitter #Tim Hortons, and a vast array of winners and losers will be declaring their position with Timmies.

This promotion has seen annual revenue’s to increase by 4% in this year only and this equates to a lot of coffee and doughnuts.

Forget subscribing to magazines and reading about products to try, subscribe to Birchbox (USA) or Loose Button (Canada and USA)and get “deluxe” sized samples right to your door! This idea really sparked an interest in me because I am the type of shopper who is often lazy to go to the mall and ask to try products and brands out, this service delivers various products to me and are from reputable, luxury brands. They are geodemographically targetting people just like me, and the others who are not near a Sephora or a department store that can provide samples. Obviously this type of subscription also appeals to the market women who are interested in beauty products.

Subscribing itself is very flexible, you can choose to subscribe to 1 month, 2 months, or the whole year and it only costs around $10 USD for each month. From the videos I have watched of girls opening their box full of goodies, it seems that they are often very satisfied by 1 to 2 items out of the 4 to 5, and some samples are retail size! So the value perceived is that what is in the box is actually worth more than the $10 subscription fee

As for the companies who expose their items in the box, they are focusing on the relative advantage of trialability. It can be assumed that if a subscriber reacts positively to a product sample, they are likely to become more knowledgable of the benefits of using that specific brand. Basically what I am saying is, if I like the sample of Lip Balm from Burts Bee’s, I will go to my London Drugs store, or the internet and find out what other products they offer and be a potential buyer.

Here is a video, of what it would be like if Birchbox shipped to Canada.

During hours of procrastination and plain boredom, alot of females, like myself, will turn to popular sites like Youtube for some quick entertainment. A few years ago, I noticed a spike in videos that revolved around Makeup Tutorials. Amoung the most famous makeup gurus, according to youtube titles, is the Most Subscribed Guru of all time, Michelle Phan. The basics of these videos are that girls are teaching other girls how to look pretty. But what is important and relevant to marketing are the products that are being used in these videos. Michelle Phan alone has secured a job with Lancome because of her videos, she is also given a variety of beauty products from other brands such as Lise Watier, Body Shop, and a few others in order for her to use and try on during videos.

Why is this relevant? Because consumers are living in a world of google on the go, endless opinions and reviews about products and many means to get all this information. A luxury item like expensive makeup is typically not an impulse buy and therefore consumers will get seek opinions they trust and are familiar with.

Makeup brands recognize that this market that wants to learn more about the endless array of products before purchasing is vast and growing exponentially. What better place to appeal to these eager consumers than with online videos, which are basically free publicity? Michelle Phan’s videos rack up, up to 1 million views, and chances are if she raves about a product some girls are going to go out to buy it. These guru’s have a subscription base and these are the people that will trust the opinion of their favorite guru and purchase accordingly.

With expanding videos about makeup products, good and bad: it is easy to be tempted by the pretty faces on youtube to buy the products they use.

As a celebration of their 50th anniversary, Sanrio partnered up with McDonald’s again to offer an exclusive adjustable watch that would be sold individually and with the purchase of your favorite Happy Meal. These cute and fully functional watches sold out within weeks and I personally was quite disappointed I didn’t collect them all when I had the chance to! The corporate partners both McDonalds and Sanrio have been working together for years and without a doubt they are looking to sell to kids. Even though a child’s personal income may just be $20 a month from allowance they spend (in the U.S) “more than $200 billion a year on personal items”1 and have a significant influence on their families overall spending.

Sanrio/McDonald’s toy’s

However, is it ethically right to market to a vulnerable age demographic that are arguably the most impressionable? The Center for Science in the Public Interest doesn’t think so, they have threatened to sue McDonalds for using toys to lure children to preferring unhealthy meals. The meals have elevated levels of calories, fat and sugar that contribute to childhood obesity and is part of the reason why the generation of children who are eating these meals are being considered the first generation that will have a lower life expectancy than their parents. Children are unable to analyze and understand marketing tactics like a skeptical adult can.

Happy Meals

While the toys may be irresistible, maybe parents could substitute purchasing the toys separately and making their own healthier, happier meals.

1 Textbook, Marketing: Second Edition. Pg 97

(To the tune of Kesha – Tick Tock) Wake up in the morning, feeling like a student. Grab my glasses, and textbooks I’m gonna hit Henry Angus. Before I leave, I rinse my mouth with a grande ‘bucks coffee.

Regardless of whether you are an avid coffee drinker or an occasional caffeine go-er you are probably familiar with the Starbucks logo. The new logo is a simplified version of the iconic image of the Starbucks Siren. And as the legend of the Siren goes, the new logo is as alluring as the old ones. A notable difference is that the ring around the Siren, that contained “Starbucks Coffee”, has been axed. From a customer’s perspective, the less cluttered logo breaks down the pre-conceived notion that Starbucks only serves coffee, as they have expanded their business to teas, light snacks and merchandise.

Looking at Starbucks customer value, it is easy to see what they lead their competitors in: customer, operational, product and locational excellence. Customer and operational wise, the business is well known for their their efficient, friendly and outgoing staff that exceed most other coffee joints. The service is consistent and the product has become a status statement, and location wise, who can deny that there are as many Starbucks as there are gas stations?

So back to the new minimalistic logo, as Thomas Stringham says in the internet magazine Advertising Age “…keeping your brand simple is a formula for success.”¹ Like Apple, the Starbucks logo has been stripped down to its most essential features. This new logo will more than likely lure customers to linger in the coffee shops, just as Howard Shultz, chair of Starbucks wants.

¹http://adage.com/smallagency/post?article_id=148060