Elizabeth

The Gap debacle illustrated the importance of a brand name and its logo, to its consumers. GAP changed its old school logo that has been used for more than 20 years to a new, modern looking one.

However, this issue raised a whole lot of commotion on social media networks like Facebook, and forums debating on whether the new logo suited for Gap, a lot of people thought otherwise. Gap has been a household brand name for the past 2 decades and people identify with their logo. They feel that with the change in logo, the brand has lost its persona, its identity.

In the recent Comm101 class, I learnt the importance of conducting marketing research and product differentiation in order for a company to stand out from its competitors.

What Gap should have done is conduct marketing research through online portals or social media networks for virtually no cost, to see if their customers like the new logo. By failing to consult the customers before the change in logo will lose customer loyalty. In this case, the logo is key in product differentiation.

This is also illustrated in the case of Tropicana, when they adopted a different logo.

Brands should work on empowering their customers and be open to feedback from them. After all, what is a brand without its customers?

References:

Lessons to be learnt form the Gap logo debacle

Gap scraps new logo after online outcry

Shopping has never been easier with the advent of online shopping, we are just a few clicks away from spending on our favourite pair of Jimmy Choos or that exquisite Cartier watch we set our eyes on, all in the comfort of our own home. With the internet accessible by everyone worldwide, distance is just another number. Now, Burberry provides live streams of its clothing lines during the fashion week, and customers are able to order apparel even before the show had even finished. The apparel will be delivered right to your doorstep in 7 weeks, a drastic decrease from the previous 4-6 months. Isn’t it awesome?

With the internet, entrepreneurs who do not have the capital to start up a brick-and-mortar shop of their own capitalize on the vast audience of the internet. Afterall, which shopping mall could be as big as the online mall. In Singapore, young entrepreneurs as young as the age of 14 start up their own blogshops, and even start manufacturing their own apparel because the cost to start up an online shop is virtually nothing.

Using social media and the internet to advertise is increasingly being a popular option, and as fashion retailers turn their focus to online shopping, will the traditional brick-and-mortar shops cease to exist in the near future?

Credits:

High fashion learns to love selling online

The world’s largest retailer, has taken the first place in people’s minds when it comes to a departmental store that sells about anything and everything.

Through the comm101 class yesterday, I finally had a better insight into tactics and strategies, the difference between them, and how companies would apply them. Having read an article about WalMart in talks to buy South Africa’s Massmart, I’d label that as a strategy taken by WalMart in order for them to expand their customer base as well as for the companies to look for alternative forms of revenue due to the declining sales in the future.

Their previous strategy of offering steep discounts on selected products had turned out to be ineffective as they had not increased sales by a lot due to the recent financial crisis which caused everyone tightening up their pockets. The shift in strategies would be a smart move, by expanding they would be less reliant on the US market and this increases their opportunities for further development and expansion of the company!

This also made me realise that in order for a company to survive, they have to be vigilant about the current economic situation and the changing needs of the consumers and hence look for alternative strategies or tactics in order to survive in this world of cut-throat competition.

credits:

Wal-Mart feels the squeeze in the US

Wal-Mart in talks to buy South Africa’s Massmart

In my recent comm101 class, we learnt about the Porter’s five forces and an article caught my eye which was related to one of the five forces – buyer power.

The company, Made.com, is an online-only furniture retailer and customers are encouraged to submit their designs for furniture and prototypes will be made for the selected ones, others will then vote, and then the furniture will be sent to manufacture after preorders are taken in. This concept is still relatively new and few companies have implemented it but it is an excellent way for a company to start up as the main advantage is that they do not have to keep an inventory of stock, they just have to manufacture according to the number of orders, which is simple and more efficient! In this way, the customers will feel more attracted to the products, it could be a selling point for their products,  originality and creativity and innovation will be inculcated in their products which would be a good way to advertise as well! The company saves on getting their own designers and paying them rocket high salaries, and empower the customers, its a win-win situation!

Here’s one of my favourites from their collection!

Credits;

Made.com

Crowdsourcing : Turning Customers into Creative Directors

With the rise of social media, online communities have become more active than ever and just one video, a blog post, or even a passing remark on the World Wide Web would be able to reach out to a wide audience. Companies are riding along the internet wave as well, making the most out of social media. I chanced upon an article about how Twitter can be used to predict box office hits!

“Our intuition was that the faster people tweet, the more likely they are to go and see it.”

By analysing the torrent of tweets about a movie in particular before it is being screened, computer scientists are able to predict the first weekend box office revenue for the movie! I like how social media has made it so much more efficient and easier to do research or gather feedback, as compared to the old school way of doing one-on-one surveys.

We analysed the different advents of social media in class and it hit me how powerful it truly is, its shocking how many people trust the internet more than doctors prescriptions! While the internet has the power to reach a large audience, there is a greater risk that a mistake might be witnessed by someone. It can make or break a company’s reputation.

So the next time you post something on the internet, please think twice.

Credits:

BBC News : Twitter used to predict box office hits

Every time we shop for cheap buys at the departmental stores, did you ever stop to think “How can they sell it this cheap? A shirt for $5? What do the workers earn, and do they even make profit?”

Well, the truth is that on the manufacturing side, the ugly side has been unveiled in the recent years. Issues of workers being poorly treated, not being paid decent wages that is necessary for survival, with terrible living conditions, and even children working in sweatshops has been highlighted in recent years. Just because these companies outsource their production to third world countries, it does not mean that they have the right to exploit them as they, like everyone of us, have families to feed. I find that this is very unethical of businesses and I’m glad that this issue has been highlighted because this means that more people will be aware of these situations and companies will be forced to take action if not when word spreads, consumers will be skeptical about buying their goods after knowing how the piece of clothing is made.

credits:

orthuban.com (image)

for more information on this issue:

The Human Cost of Cheap Clothing – BBC news

credits: chinasmack.com

In 2008, the tainted milk scandal was unearthed when 16 infants were diagnosed with kidney stones after consuming the milk powder produced by the Sanlu group. The milk powder was tainted with melamine, a chemical used in plastics that can help disguise the fact that the milk is diluted, and also to increase the protein percentage in milk. Sanlu knew that the universally banned chemical was in the products but did not disclose it openly and as a result there was an estimate of 300,000 victims, many of whom were babies suffering from acute kidney failure, and it also resulted in a few deaths. The Sanlu corporation went bankrupt and the presidents were sentenced to life .

Being in the food industry, the company has the duty to ensure that products and production processes do not cause harm. However, the drive for profit may have led the Chinese milk manufacturers to mix the harmful melamine chemical with their products. By doing so, they endangered consumer welfare and violated business ethics in order to reduce production costs. As a result of disregarding food safety, it brought about widespread effects- damaging the reputation of China’s food exports, and causing the deaths of innocent babies. Is it really worth it?

References:

Melamine scare and Global Economic Crisis

2008 Chinese Milk Scandal

Chinese tainted milk powder leaves 6,200 children ill

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