Cathy Lee's Blog

Twitter is now widely used by companies as a digital PR tool. The social media platform allows companies to market their brand to almost the entire world since consumers have become more tech-savvy. Simultaneously, companies can receive quick feedbacks from consumers about their thoughts on the brand or product. Quick may be an advantage but like blogger, Rachel Thexton, warned, companies need to think before they tweet; once the enter key has been hit, companies cannot retract their last tweet especially if it is one offending consumers. From one simple tweet, the public can take screenshots and spread it like a virus before the company can undo its mistake. From this, like Thexton, I agree that the misuse of twitter can damage the brand’s image in less than 140 words. Many companies like President’s Choice and Gap have sparked controversy in their insensitive sales messages. That being said, when it comes to social platforms, companies should have social media policies to avoid PR crisis and train employees on how to engage with media in an appropriate manner.

President’s Choice ironically tasteless sales tweet: “What’s scarier? Hurricane Sandy or a beverage with marshmallow eyeballs?” has sparked massive consumer backlash.

In class 20’s reading about smart companies using environmental strategy to innovate, create value, and build competitive advantage, Wal-Mart stands out in this topic of sustainability. While setting environmental goals such as reducing waste, using environmentally friendly packaging, and running stores off renewable energy are all great initiatives to partake in, the real motives of companies deciding to go green is questionable. By setting the above goals, companies are benefitting themselves by innovating, lowering operational costs, and obtaining higher revenues. Wal-Mart has evolved from a once highly criticized environmental villain into an environmental leader with its eco-advantages of installing fuel-saving technologies and reducing packaging. By doing so Wal-Mart is reducing its costs and legal liabilities by limiting toxins. Just as mentioned in class 20’s reading, Green to Gold, companies ahead of the Green Wave lower financial and operational risk. Whether for the benefit of the company or truly for the environment, Wal-Mart’s environmental steps to becoming more sustainable is admirable and sets an example for other companies to decrease the size of their carbon footprint. By the end of 2015, Wal-Mart has announced to eliminate 20 million metric tons of greenhouse gas emissions from its global supply chain.

Prior to class 17’s discussion about fake product reviews, the scam of companies paying people to write glowing reviews has never crossed my mind. I was appalled by this since I have been convinced by five star ratings of products. Besides the obvious fact that companies would not produce commercials showcasing poor reviews, it is disappointing to uncover that even online reviews have gone through a screening to ensure that there are only positive feedbacks. That being said, I agree with Hazel that negative reviews can earn consumers’ trust. Consumers should be smart enough to realize that all products have some flaws and when companies accept consumers’ negative as well as positive reviews, it shows that they are willing to make improvements in their products to meet the expectations of their consumers. With both compliments and critiques, consumers will know that the good reviews are actually sincere and truthful. When a product only has a continuous list of positive feedbacks, consumers should question how reliable these sources are. Perhaps, companies should pay people to write negative reviews since the tables have turned now and consumers are not easily fooled by off the charts praises of products.

After class 14’s discussion about outsourcing, I decided to uncover other sources of customer service. In class, we were shown how outsourcing to India has its benefits of providing jobs, but at customers’ dismay. We were shown how call centres received a lot of stress from frustrated and impatient customers. With technological improvements, there are alternative ways to provide more efficient and reliable customer service. An example of this is unsourcing, which is peer-to-peer support among users on online communities set up by companies. Rather than waiting on the phone-line for an hour to talk to a faceless person miles away, customers’ problems and inquiries can be answered by other customers who have purchased the same products. Online communities include social networks like Facebook or on the company’s website. Unsourcing saves the time of customers when they only have a simple question, and research company, Gartner, estimates that using online communities to resolve customers’ issues can reduce costs by up to 50%. Best Buy’s community  saves the company $5m annually with its 600,000 users. The drawbacks of unsourcing includes the inability to deal with private issues like billing errors, and once again minimizes the already limited jobs in developing countries.

Toms Shoes – now been around for five years – is a social enterprise that is well-known and praised for its one-for-one product line, for every pair of Toms bought, a pair is donated to a child in need around the world. Toms was launched with $300,000 and is now earning millions while donating over a million pairs of shoes to children in poverty. Not only are customers attracted to the traditional Argentine slip-on shoes with a variety of colors and prints, they are attracted to the company’s mission to give to those in need which is a worthy point of difference and competitive advantage. With the success of its shoes, the company has launched a second one-for-one product line with Toms Glasses. When a pair of Toms sunglasses is sold, people in the developing world will get free glasses, medical treatment or eye surgery. As a social entrepreneur, Toms’ CEO, Blake Mycoskie, takes the initiative to travel and observe improvements in developing countries that could help with learning, working, and having a livelihood. First, he observed that shoes could help people with these basic human needs, now he has observed the same with improving peoples’ eyesight. The one-for-one company model addresses third world problems through Western consumption.

Sources:                                                                    http://www.fastcompany.com/1758060/toms-glasses-newest-buy-one-give-one-product-toms-shoes                                                          http://www.fastcoexist.com/1678486/toms-shoes-ceo-blake-mycoskie-on-social-entrepreneurship-telling-stories-and-his-new-book

In regards to Cathy Li’s blog about Burberry going digital, I agree with her analysis of how consumers might view the luxurious brand once it implements its latest business strategy of using technology. The firms CEO, Angela Ahrendts, has dismissed the concern of increasingly high product prices because she believes luxury customers just need to be reached digitally now that they are more tech-savvy. It may be true that new generations of consumers shop online, but in agreement to Cathy, Burberry products are very expensive and a majority of consumers might not make the quick decision to buy the product online without inspection of the product in-store. Luxurious brands have websites featuring their products, but luxury-lovers require further admiration of the product in person before they are willing to break their piggy bank for it. Buying a $1000 item online is significantly different than purchasing a $20 item on eBay because the opportunity cost is much higher thus causing discomfort for customers. Furthermore, the additional uses of technology such as interactive screens in the original Burberry stores changes the historical and extravagant feel of them. By “modernizing” the firm, luxury-lovers may choose to shop at other prestigious brands instead.

Source: http://www.economist.com/node/21563353/comments#comments

BB10

It is no surprise that the latest iPhone 5 would beat Blackberry’s previous phone sales, with a toppling 5 million units sold in just one weekend. Now with its newest phone, BB10, delayed for at least a year, Blackberry is definitely lagging behind its competitors, Apple and Android. Even though Blackberry has its main feature, BBM, to attract customers, will it be enough to beat the sales of its competitors? Based on consumers’ interests, that is highly doubtful. With numerous Blackberry users switching to Apple and Android devices, the use of BBM will decrease dramatically. I myself have lost numerous BBM contacts with friends jumping ships to other devices. Furthermore, Whatsapp, a messaging app, is similar to BBM, but allows all smartphones to communicate with one another. Although, RIM’s BB10 might attract customers in Asia and Africa, since it is clearly struggling to compete with Apple and Android devices in the U.S., Blackberry still needs to evaluate its strengths and weaknesses to get close to its competitors’ success. Major changes like better apps, faster rebooting, and a front-camera are what consumers are looking for in a new Blackberry. Hopefully, Blackberry can make its comeback with the BB10 and that it’s worth the wait.

Source: Bloomberg News

Recently Facebook uncovered its newest gift-giving feature that will enable its users to send gifts to their friends conveniently on the computer. Rather than just a simple ‘Happy Birthday’ or ‘Congratulations’, Facebook users can now add a real present, from Starbucks’ gift cards to flowers and cupcakes. Facebook believes this new feature will generate more revenue. Although, this social network has been lacking in sales, this new idea might be its cure. The ability to send and receive gifts online is innovative and is a good point of difference that will spark users’ interest. In addition, Facebook will have the opportunity to partner up with hundreds of businesses with the feature providing a wide selection of gift options.

Antrepo, although fictional, has come up with the minimalist effect, which recreates the packaging of international brands, simplifying them to be exact.

Packaging is a marketing technique, but overtime, packaging can become too complex, and some products need some minimal feeling as suggested by Antrepo. On a shelf full of products wrapped in patterned, colorful packaging, won’t the simplest one stand out? And isn’t a brand’s name one of the most important factors of positioning? Perhaps, the minimalist effect could become a new technique of marketing because now the brand’s name pops right off the shelf. In fact, some of the repackaging on Antrepo’s website are more appealing in its simple variation.

Some companies have jumped onto the minimalist boat such as Apple, from its original rainbow apple logo to the now white apple. Starbucks’ cups have been evolving over the years as well, with its design becoming simpler. The latest cups don’t even have ‘Starbucks Coffee’ printed on them because their iconic siren is recognized from miles away. However, one of the cons of minimalism is that it could only be effective for well-known brands. That being said, the minimalist effect can test how popular and recognizable a brand is.

Workplace bullying is evidently not a secret nowadays when there are numerous lawsuits being filed by brave workers who are not only standing up for themselves, but providing a voice for other workers who keep workplace bullying a secret in fright of losing their job.

Recently Auckland Council has been exposed of compensating staff at Auckland Burger King who claimed they were bullied by senior staff members; one alleged she was punched, and the other manhandled and suffered swearing. In a Canadian case, a bus driver of 20 years committed suicide after suffering harassment from coworkers for looking like someone who raped a woman.

Although the Employment Relations Act does not define workplace bullying, in terms of business ethics, all staff members should have respectful attitudes towards each other that bullying should not arise in the first place whether or not there are laws enforced. Senior staff members should have higher responsibility to prevent bullying because allegations can harm the business’ image. All employees, regardless of their position, race, or gender, should feel safe in their work environment.