Marketing Group Project – Reflective

Learning about Sun-Rype in our marketing project gave our group an unique insight into a local British Columbia based company and it’s goals in the wider north american juice market. One of the parts that made our company unique is while Sun-Rype is a large business with a diverse product line, it is not a leader in the industry. Currently they have a market share of less than 5% of the Canadian juice market. They have not even started selling juices to the US market. In my opinion this made it easier for us to focus on opportunities for growth. When looking at global gigantic companies, like Coke, it is difficult to suggest strategies for growth and marketing when they are doing such a good job already and are literally everywhere.

Working in a group of 6 people was a little difficult at times. Meeting schedules were extremely difficult to organize in our group. We actually split into two smaller groups so people could meet easier. I think people were relatively comfortable in our group and would give input if they had ideas. I think group projects in general are critical for our business education, as they do a good job simulating real world work scenarios.

Ending our project with the video was an unique experience. Sauder puts great importance or the ability to make presentations and public speaking, doing a video is not something we are use to. However I think it was an important addition to the course, mainly because I think people can be camera shy. There were parts of our filming where it would take around an hour to film a 3 minute segment as people were getting nervous and forgetting what to say. However cameras and video are becoming more important, also every business now will have an official YouTube channel. Knowing how to handle the intimidating camera is getting more and more important.

 

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Helvetica The Perfume

A few days ago I was alerted to a new product by Adweek’s and “the logo smith’s” blog of a new perfume. While this premium $62USD product has many of the same traits of any other perfume marketing campaign, it’s product simply has no scent – it is just distilled water.

The tag line for the Helvetica is ” The scent of nothing”. The new product is aiming to be an ultimate gag gift. For your $62.00 you will all of the following

  • Numbered limited edition
  • 24k gold printing on bottle
  • Typeset in Helvetica Bold
  • Letterpressed exterior packaging
  • Contains 2 oz of distilled water
  • Shipped ready for gifting

The perfume industry has appeared over the top with their advertising campains for some time now, making it ripe for a good gag. The company making Helvetica has even made a tumblr page featuring real ads of real perfume which they appropriately name “gutsandgloryandus”. The ads can seem so crazy that you may think they are actually parodies. However some searching confirmed otherwise.

sources:

http://www.adweek.com/adfreak/helvetica-perfume-those-who-dare-be-same-154176

http://imjustcreative.com/helvetica-the-perfume/

http://gutsandgloryandus.tumblr.com/

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Samsung’s $14 Billion marketing push

Samsung, long known for their constant battles is and out of the courtroom with Apple, are expected to spend $14 billion US dollars on marketing. Many expects are questioning if this is money will spent.

Samsung’s goal in many of it’s advertising is to gain the level of prestige competitor Apple has and combat the idea that Samsung is follower (copying Apple’s innovations). As such, many of their advertisements stress Samsung’s role as an innovator, talking about their long term concept innovations like curved tvs and smartphones. Samsung is also spending lots of sponsoring various events and infrastructure projects. At my home airport DFW, Samsung sponsored several free travel lounges and charging poles allowing passengers to relax and charge their devices. Note – Samsung recently did not renew it’s contract with DFW so the facilities have changed to DFW airport branding.

However people are starting to question if it really is a good idea to have the largest marketing budget in history.  Samsung brand value is currently only the ninth biggest in the world, behind companies like General Electric and IBM. Apple is currently has the world’s largest brand value – at 104.3 billion. Samsung has also been having lower than expected sales of it’s new smart watch. Shipping 800,000 units so far this year. Samsung however is not deterred promising more watch advertisements during the holiday season. Many people are expecting Samsung is promoting the watch not because they see smart watches becoming mainstream, but to help gain the image as an innovator.

source:

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/samsungs-marketing-splurge-doesnt-always-bring-bang-for-buck/article15636994/

http://www.ibtimes.co.uk/articles/525979/20131128/samsung-14bn-marketing-budget-biggest-history.htm

image credit: http://www.sleepinginairports.net/images/airports/usa-photos/dfw-1.jpg

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Tim Hortons to introduce dark roast coffee

Currently Tim Hortons brews only one type of drip coffee which they refer to as their premium blend. This will change soon with the introduction of a new “dark roast” drip brew, served in addition to their signature blend they have been brewing for decades.

A majority of Canadians (about 50%) drink coffee on a regular basis. As the market has continued to expand with new chains like McDonald’s “McCafe”, Blenz, as well as local competitors; companies like Time Hortons has come up with differentiation strategies to win and retain loyal customers. Emerging Gen Y customers are known to favor looking for bolder, more flavorful products. By introducing the new bolder coffee Tim Hortons is aligning its tastes with Gen Y customers and other trends in the coffee market.

To help minimize risk Tim Hortons will be releasing the product in stages, starting in London, Ontario and Columbus, Ohio. However it is very likely it will expand given many competitors already offer this product.

Sources:

http://www.cbc.ca/news/business/tim-hortons-tests-dark-roast-coffee-to-woo-consumers-1.2254414

http://www.ccdinnovation.com/media/pr_1.05.2009.php

Print Management Bureau – 2013 database

image credit : http://www.thestar.com/content/dam/thestar/business/2013/10/28/tim_hortons_tries_a_darker_roast/tim_hortons_dark_roast.jpg.size.xxlarge.letterbox.jpg

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VW tries to reintroduce diesel engines to North America

When you think of diesel powered automobiles in North America, chances are you think of smelly buses or stinky trucks that are slow or clumsy. It is little wonder that diesel engines only account for about 1.5% of the passenger car sales in North America. However in Europe and other parts of the world diesels can account for up to 50% of passenger automobile sales. Volkswagen seeing this divide seeks to reintroduce the diesel engine to the N. American market.

Volkswagen’s marketing to increase growth of diesel engine sales mainly focuses are logical advertisements and campaigns to combat many of the negative stereotypes associated with diesel engines here. In some YouTube videos VW shows how clean a diesel engine is by placing a coffee filter over a new VW’s diesel car exhaust to show that the coffee filter returns unmarked. In it’s latest campaign VW shows the fuel efficiency of their diesel engines by organizing a cross country tour, from Halifax to Vancouver , by inviting reporting different reporters to drive different parts of the tour. While this opens VW open to critique (many reports made fun of the GPS system) it does publicize the fact that diesels are much more efficient compared to traditional petrol engines.

Almost all VW automobiles come with a diesel option during purchase. As such, VW is in a very good position to profit if they can entice budget conscious consumers to consider a diesel when looking for their next car.

sources:

http://life.nationalpost.com/2013/10/10/cross-country-diesel-tour-showcases-volkswagens-strengths/

https://www.youtube.com/watch?v=fH834IFpGTQ

image credit: http://www.autoweek.com/storyimage/CW/20111006/CARNEWS/111009921/AR/0/vw-diesel-recall.jpg

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Supplements in advertising (ethics)

In the United States, the Federal Trade Commission has recently won a lawsuit against Walgreens (a nationwide US drug store) for deceptive advertising for it’s Walgreen’s branded Wal-born supplement. As a result some 8000 customers of the product will be receiving a refund.

Walgreens claimed the Wal-born supplement would boost your immune system and thus you would avoid common colds and other “everyday” sicknesses. They particularly suggested using the supplement when flying, going to the doctor, or even going to school. Even though they advertised and marketed the product in this fashion they had little to no proof that this was so. Unfortunately this is not limited problem but industry wide in the supplement industry.

Manufactures of dietary supplements do not need their statements peer reviewed or evaluated by an government agency. The result is that many manufactures will make claims about their statements that can not be easily verified and proven. A quick look on the internet reveals many supplements that support the immune system. For example GNC ( a worldwide supplement manufacturer and distributor) sells a variety of products under the name “Mega-Men” and “Ultra-Woman” which it advertises as a multi-vitamin for “Performance&Vitality” which will also help with “prostate health” and will “cushion joints”.

So what is the responsibility of manufacturers in the supplement industry? Currently for their product to be “safe” and not to make drug claims (that the supplement will cure x aliment) . But as with the case with Walgreen’s Wal-born and the industry at large, the claims have gone too far and can even seem unethical. 40% of adults in British Columbia already take some type of supplement. While for many people this will be a simple vitamin, others may be taking some of the more controversial products. While increasing the regulation on the statements supplement manufacturers can post may be appealing, increasing customer awareness of the rules and industry may achieve the same result.

 

http://www.gnc.com/category/index.jsp?categoryId=3593185&f=PAD%2FCondition%2FImmune+System&fbc=1&lmdn=Condition&fbn=Condition%7CImmune+System

http://www.consumer.ftc.gov/articles/0261-dietary-supplements

http://ecreditdaily.com/2013/09/refunds-buyers-walgreens-walborn-dietary-supplements/

http://www.cfdr.ca/CMSTemplates/CFDRWebsite/Templates/dloads/Whiting_presentation_vitamin_2008.pdf

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Gina Abudi’s Blog – a cheap way to advertise

I have always wondered how consultants get the clients they work with. I recently came across a blog for Gina Abudi, the owner of the consultant firm Abudi Consulting Group. The blog is successful receiving about 3500 visits a day.  By using her blog, Gina is able to promote both her consultant company and her publications.

Gina’s blog is filled with “topX list for best practices” mainly for small business owners on how to run their businesses. The blogs are usually short (like ours!) so there is always more information she can share with you if you enlist her services. She will also jazz up posts by inserting Dilbert cartoons and other images. For example on a HR post on Performance reviews, Gina starts with a Dilbert comic and addresses her main points in concise bullets points.

However the blog is not all business. There are also book reviews and a miscellaneous section for off topic posts.

In all I think Gina’s decision to make a blog related to her business is a brilliant marketing strategy. If I needed to hire a consultant I would want to make sure they were creative and smart – reading this blog would give me confidence. Also the blog (provided there is no advertising) is free compared to other advertising.

 

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When will the Twinkie be reborn?

There have recently been quite a few posts on Comm101 blogs regarding the closing and liquidation of Hostess Brands. People are expressing a variety of views with some claiming this will start a “New Health Era“. Others are exploring the new grey market of Twinkies.

Many people are claiming that Hostess failed because of lacking innovation in an increasingly health conscious customer market. I would beg to differ. While I am not familiar with what products Hostess sells in the Canadian market, in the US market Hostess came out with several variations of products that I would claim are very healthy. Take for example their whole wheat Wonder Bread. Most bread white or whole wheat has some sugar content, however whole wheat Wonder Bread does not.

Instead I would say that Wonder Breads bad relations with employees and union workforce led to the demise of their company. Lets not forget that management clearly expressed to their work force that they had to return to work by last Thursday.

This sad story makes me wonder — what would cause the workers to kill their own company they work for? Were conditions that bad – especially in the current recession the US is experiencing?

sources

http://static.caloriecount.about.com/images/medium/wonder-bread-percent-whole-61167.jpg

http://www.kwch.com/business/kwch-hostess-ceo-gives-striking-workers-thursday-deadline-20121114,0,2860295.story

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China ready to eat up North America’s Pecan harvest

Despite recent bad harvests of pecans across the United States farmers are still happy. Why? China is putting so much demand on the pecan market that one pound of pecans can go as high as $15USD.

The Chinese are recently interested in pecans because of claimed health benefits.  One brochure claims that pecans will decrease heart disease, cancer, and lower cholesterol.

Competition is supposed to increase in upcoming years. Brazil, Australia, and Mexico have all started to produce pecan farms. However it will take several more years before these trees mature. In the mean time southern farmers in the United States will have the large majority of control in the small and limited market.

It is very nice for me to see the pecan gaining popularity around the world. Growing up in Texas I saw pecan trees all the time. My family’s home even has a producing pecan tree. I have always personally enjoyed eating them.

sources:

http://westernfarmpress.com/tree-nuts/china-ready-us-pecan-harvest

http://www.hispanicbusiness.com/2012/11/17/pecan_prices_fall_from_their_nutty.htm

http://kalb.images.worldnow.com/images/19609463_BG1.jpg

http://www.texaspecans.org/pdf/ChinaBrochure.pdf

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Walmart’s sustainability push showcased in new trucks

In class we recently heard about Walmarts and other large firms recent commitment to moving to more sustainable operations. Walmart recently has show a new product of this investment: a new semi-trailer truck with 30% more capacity

The 18 wheeler or semi-trailer has remained unchanged since its beginning in the mid 20th century. Walmart is trying to change this by making the trailer actually longer and adding a container in the space between the cab and the trailer. The trucks have created some controversy but should begin a pilot program soon.

This truck could have the potential to really change the trucking industry and is a simple way for Walmart to be more sustainable. Personally I think customers will also appreciate less trucks clogging up the highways.However the increased size could also create a safety issue. I would not want to be in a smart car next to this massive vehicle.

sources

http://www.randomhistory.com/2008/07/14_truck.html

MTO weighs in on Walmart’s supercube trailers

www.thegreensupplychain.com/NEWS/12-11-14-1.PHP?CID=6434

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