I came across this blog written by Tracey Wallace as the title attracted me, “ How One Company Built a Brand to Make You Crave Salad”. It’s a blog review on the market strategies used by a restaurant called Sweetgreen.

Struggling for business, the three founders found the connection between the love of food and music. They decided to blast loud music outside the restaurant and eventually turned into a block party of 500 people, now transformed into the annual Sweetlife Festival.

To convey their message, social media became the medium to share tips of healthy living, yoga and exercise, cool beats from new music and artists, and daily dose of healthy food. They aren’t merely trying to sell salads but to also inspire consumers to live a healthfulness passion life, which salads can play a role in. Now, Sweetgreen has transformed into a lifestyle brand deadest.

I agree that Sweetgreen’s business model is about connecting with people through good food and music, really emphasizing on the value proposition and smart marketing strategy. However, I raise the concern of the sustainability in marketing through social media as it is the most common and easiest method of marketing in the business world now a days.

Rather than focusing on marketing through the internet, I think Sweetgreen should approach the differentiation strategy, to emerge from the surface of competitors since there is an increasing amount of restaurants that offer healthy food. Salad is a common dish served in every restaurant, Sweetgreen should focus on how they are going to offer something different and unique that other restaurants can’t or don’t offer.

Sources:

http://mashable.com/2013/11/14/sweetgreen/

U.S.A’s third leading fast food restaurant, Burger king is moving towards a low cost focus strategy by offering reduced fat and calories French fries. After reading a classmate’s blog post on burger king’s healthy approach as a fast food restaurant, I can’t help but to agree on her analysis she drew on the strategies Burger King used.

To begin with the name “Satisfries”, it definitely drew a lot of attention using one of the techniques in brand positioning- avoiding the free ride trap. This creates a creative way of positioning themselves into consumers’ mind by being the first fast food restaurant to offer healthy food with convenience.

https://www.youtube.com/watch?v=9Gh8-9v19U4

Besides the agreement I drew upon her analysis, through another article I came across, I would like to add on that there seem to be doubts of making “Satisfries” a permanent product. A study of fast food chains have found that the number of fries serving “dropped from 1.9% from 2006 to 2011” (Bloomberg Businessweek) as consumers seek for healthier options. Therefore, it is possible that introducing reduced-fat ones aren’t going to “turn around the business” but only improve the image of the company, which is “an uncommon goal” in the fast food business these days. However I have to disagree with this point as I believe improving the image of the company means enhancing the value proposition and customer relationships, which revenue is largely dependent on so, there is a possibility of turning the business around for Burger Kings.

So, can “Satisfries” satisfy the BurgerKing’s consumer in the long run?

Sources:

https://blogs.ubc.ca/danicallaneta/2013/10/06/the-king-of-burgers-and-of-healthy-options/

http://www.businessweek.com/articles/2013-10-28/why-burger-king-wont-commit-to-keeping-satisfries-just-yet

After writing a post about Abercrombie & Fitch CEO’s blunt comments on unattractive people. I pondered upon a blog post written by my classmate, similar to the case of A&F; Chip Wilson the founder of Lululemon defended on recent complaints on product quality by saying “Quite frankly, some women’s bodies jut don’t work for it.. It’s really about the rubbing through the thighs, how much pressure is there over a period of time’ (Time Ideas) Followed by many feminist outrage, there was a 5% drop in sales – the weakest in a month.

I strongly agree about the strong influential of individuals from the top of hierarchy towards the corporate culture. Creating a negative perception towards women with the non athletic “body type”, not only affects potential customers but also the current that are to be told they aren’t fit for Lululemon’s product.

Adding on to my classmate’s post, another factor that’s affecting the organization’s culture is the step down of Christine Day from CEO position. Lululemon was performing well under the leadership of Day, however after her step down, there were difficulties in searching for a New Chief executive that can fit into the unique culture of Lululemon, hence a 4% drop in shares. Facing different problems, can Lululemon pick themselves back up into the game?

Sources:

http://ideas.time.com/2013/11/13/forget-feminist-outrage-by-shunning-plus-size-customers-lululemon-is-making-a-terrible-business-decision/

http://www.globalpost.com/dispatch/news/thomson-reuters/131114/lululemon-shares-slide-downgrade-gaffes-ceo-search-weigh

http://www.theglobeandmail.com/life/the-hot-button/why-lululemon-founder-believes-some-womens-bodies-dont-work-for-their-yoga-pants/article15345965/

“That’s why we hire good-looking people. Because good-looking people attract other good-looking people, and we want to market to anyone other than that.” Quoted by Abercrombie & Fitch CEO, Mike Jeffries in an interview.

Mike has also stated that he doesn’t want “fat” or “ugly” people to wear his clothes, making his brand “exclusionary” to unattractive people. His statements have generated a large amount of attention online and negative feedbacks on social media causing a plunge in brand perception compare to H&M and America Eagle from customers ranging from 18 to 34 years old as shown below.

One of the unsatisfied customers, Kreg Barber made a video of “Fitch the Homeless” by donating Abercrombie & Fitch clothes to the homeless people, creating a brand readjustment.

https://www.youtube.com/watch?v=yv8Ias5Yg0A

As one of the angry customers when I heard of Mike Jeffries comments, my perception of A&F immediately changed. Despite feeling unsatisfied, brand positioning came to my mind. Obviously, brand positioning is very important as it’s all about working with the customers mind. It is said to be difficult to change a consumers’ impressions once it is formed. I believe this blunt comment will affect A&F’s brand perception in the long run, making it difficult to recover. Even though apologies and justifications have been made from Mike Jeffries, this propaganda will not be wiped out from this history. Mike should reconsider on how to bring his brand back up into the market, rebuilding an influential brand recognition to overcome this bad reputation. After all, it is easy to say but difficult to do so..

Sources:

http://www.huffingtonpost.com/2013/05/16/abercrombie-reputation-ceo-comments_n_3288836.html

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/fat-or-ugly-abercrombie-fitch-doesnt-want-you/article11853840/

Frederick Hutson, the founder of Pigeonly, a business that offers prison inmates an easy and efficient way to receive photos from loved ones and to make inexpensive phone calls. Mr. Hutson knows his market well due to his own experience of imprison from the distribution of marijuana. Ironically, this gained him the “domain expertise” as good hustling and sales skills are primary skills required to survive on the street. Through the mentorship from NewME, Mr.Hutson was able to gained investors despite his record. He also created a database that contains all federal prisons allowing customers to search for inmate by name, regardless of location. In order to expand his business, Mr.Hutson is aiming to “build relationships on the inside” with inmates that are to be released by helping them get cellphones, set up bank accounts and find employment.

I thought it was smart for Mr.Hutson to approach the Low cost Focus strategy in this particular market as he chose to aim at a demographic that few understand with the provision of low cost. He targeted and filled up a void in the market, which I thought serves as a turning point for every entrepreneur. The reason behind Mr.Hutson successful business is his focus on satisfying customer needs, by first targeting “why” he chose to establish this business therefore creating a strong value proposition of his company.

From a more personal perspective, it was unexpected for a prisoner being able to pursue his entrepreneurship after being released. What caught me off guard was his ability to persuade and gain investors into his business despite his background. This is definitely breaking the ground rules; breaking free for Frederick Hutson.

Sources:

http://www.nytimes.com/2013/11/07/business/smallbusiness/released-from-prison-and-starting-a-company.html?pagewanted=1&_r=0&ref=smallbusiness

Among the three guests of honor at the Twitter’s debut on the New York Stock Exchange, a 9 year old girl, Vivienne Harr stole the spotlight; one who may change the way non profits companies are run.

Vivienne started a lemonade stand called Make a Stand at the cause of raising money to end child slavery, which she successfully raised and donated $101,320 to the charity Not for Sale. Of course, this would not have been possible with the help of her father, Eric Harr now the ex-president of Resonate Social, who led a media savvy Twitter campaign that attracted national attention for Vivienne’s cause. Instead of moving forward as a nonprofit, Mr. Harr and his family formed a lemonade business around this cause calling this form of corporate entity a special purpose corporation; which intends to earn a profit for shareholders and contribute to other social constituencies. The lemonade sold online has no set price, allowing customers to pay however much they want-“no one ever pays less”. Raising the million dollar question, is Make a Stand just like any another “greenwashing” company that is profit driven from a cause?

Can’t help but to agree with Mr.Harr’s argument that it is better to reward people for doing good in charities instead of paying them on how little they spend on themselves. What made Make a Stand avoid the criticism of putting up a social face, is the transparency Mr.Harr strove to achieve for his company. He was not afraid to reveal that one of his goals is to make money for both a cause and its founders, which I thought could gain the trust from society.

I thought Mr.Harr was smart for creating the marketing strategy of not setting a price for the lemonade sold. This creates shared values, a win-win situation benefiting both the consumer and the company as it gained the title of not just driving for profit. Looking from a bigger picture, Make a Stand not only generate profits for the cause of ending child slavery but also the founders.

Sources:

http://dealbook.nytimes.com/2013/11/12/in-a-lemonade-stand-a-transformation-of-the-corporation/?ref=business

Michael Hallatt, a Vancouver businessman who purchases Trader Joe’s products by traveling to the United States and resell the goods at the Pirate Joe’s store in Kitslano B.C store. Trader Joe’s filed a lawsuit against Pirate Joe’s, as this action is “a result of trademark infringement, false endorsement and false advertising”. Surprisingly, Pirate Joe’s store has won this legal case oppose to the famous retail giant. Reason being, The Lanham Act is a powerful legislation to protect the U.S commerce and shut down anyone that attempts on affecting the U.S commerce, so Pirate Joe’s made it clear that this action is not affecting the U.S commerce as vast majority of the customers are non U.S residents.

The question is, does Pirate Joe’s deserve the winning lawsuit title in the context of business ethics? From a personal perspective, Pirate Joe’s action is unethical as it does give off the impression of stealing Trader Joe’s products and reselling them. However, from a different perspective, Pirate Joe’s is the biggest customer Trader Joe’s currently have as Hallatt spends $4,000 to $5,000 worth of products every week at their store, which in turn assist Trader Joe’s in generating revenue.

From a consumer point of view, Hallatt claims this action as the purpose of filling up the void for Canadian citizens – which I agree on. As a customer, I am glad that Pirate Joe’s allow Canadian citizens to have an easy access to U.S goods because not only it saves time but also travelling expenses. Instead of seeing it as an economic harm, I would see it as a smart entrepreneur idea, which creates a strong value proposition for Pirate Joe’s.

https://www.youtube.com/watch?v=oo_tiDwkgJ0

Sources:

http://www.cbc.ca/news/canada/british-columbia/trader-joe-s-loses-fight-with-vancouver-s-pirate-joe-s-1.1912400

https://www.youtube.com/watch?v=oo_tiDwkgJ0

Twitter, a well known online social networking and micro-blogging service that allows many users to connect all over the world. Although it is an American based company, the company’s plan of expanding internationally has led to “filing for an initial public show” (Jolly) recently.  Even though Twitter gained many users from foreign countries outside the United States, the advertising revenue generated is far more from American users than foreign users. Thus, the main goal is to expand it’s advertising market for international users and monetizing its users’ platform. Several factors restricting this expansion- the amount of high-end smart phones users, authoritarian government bans on twitter and rivals from other services.

Personally, Twitter has a positive strategic plan towards international advertising expansion but the main factor that’s restricting it is the government ban in China. China has the largest population and being able to leap that border will definitely boost users and the company’s advertising revenue. On the other hand, the number of smartphone users shouldn’t be a big issue because Twitter can still be accessed through laptops and computer desktops and smartphone is currently a growing industry, which eventually will compensate to the current lack of users in the future. Since Twitter already created such a phenomenal existence in the social networking service industry, other rival services can easily be avoided by adding new features, consistently updating the app or even a collaboration to gain better brand reputation. Overall, Twitter has the potential of expanding worldwide in the advertising market once these barriers are tackled down.

Sources:

http://www.nytimes.com/2013/10/05/business/twitters-ipo-plan-has-an-international-focus.html?ref=business

https://d28wbuch0jlv7v.cloudfront.net/images/infografik/normal/ChartOfTheDay_608_Twitter_s_global_advertising_revenue_from_2010_to_2014_n.jpg

Detroit, which will soon receive the title of  “one of the biggest municipal bankruptcy cases in American history”, is currently struggling to make the interest payment of $39.7 million upon the borrowing of $1.44 billion in the public bond market. Excess payments were made up to $100 million, which is a disastrous amount to the city, and had cost the city nearly $2 billion over 23 years. Several approaches have been debatable to tackle this issue; suing the pension fund for the unjustly extraction of money from the bond market and a “clawback” from citizens whom received more than they should have, which may impose a practical problem of severing the financial condition.

Personally, I feel that Detroit should not penalize their citizens by pulling back on the pensions given out, as it is their mismanagement of approving nearly every pension payment regardless of their eligibilities. Furthermore, the amount of “excess payments” that claim to have made was not publicly disclosed, thus failing to prove that retirees were actually given more than they should receive.

On a different context, I would like to categorize this incident as a “fraud” made by the trustees of the pension fund, as it is unethical to extract money from the public bond market and burden the taxpayers to replenish this hole. Perhaps Detroit had the benefit of doubt of maintaining competent employers through the offer of pensions however brought upon the unappealing title of “one of the biggest bankruptcy in American history”.

https://www.youtube.com/watch?v=OuBxNJ9wbCk

Sources:

http://dealbook.nytimes.com/2013/09/25/undisclosed-payments-cost-detroit-pension-plan-billions/?ref=business&_r=1& 

https://www.youtube.com/watch?v=OuBxNJ9wbCk

Big businesses are often blamed for the rapid growth of forced labor and slavery in the global supply chains as cheap goods and raw material are desirable. However, business leaders claim that modern slavery is unnoticed as it occurs at the bottom of the production line. One example being, children in India are taken away from home with the promise of a better life but forced into tea picking with an extremely low paid wage. It was suggested that in order for this legislation to be effective, not only governments should be involved but ironically big businesses are encouraged to ensure their product and supply chain are free from modern slavery without the fear of being tainted.

Personally, I think business leaders hold the biggest responsibility of preventing modern slavery however it’s undeniable that it’s inevitable. Although the bottom of production line is difficult to maintain as the leader, it should often still be regulated at a time-to-time basis. Big businesses should also create awareness by organizing campaigns and foundations for putting an end to human trafficking. Instead of pointing fingers, the society, government and stakeholders should also be involved in eradicating modern slavery.

Sources:

http://www.theguardian.com/global-development/2013/aug/29/big-business-modern-slavery

http://4.bp.blogspot.com/-lGdwVqTG1fM/UZVL7u_zHMI/AAAAAAAACCc/jrJYQJDilaU/s1600/india-child-labour_1570360i1.jpg