Celebrities as brand ambassadors

In Yaeyoung Youn’s blog, “What’s UGG marketing strategies? Why it’s all over the place?” she talked about how the popularity of UGG boots spread through its use and endorsement by the popular celebrities. I agree with Yaeyoung that celebrities serve as a “reference group for current fashion trends,” and that this is an effective way to market various products.

On the official UGG website, it is stated that, “In 2000, UGG Sheepskin boots were first featured on Oprah’s Favorite Things® and Oprah emphatically declared that she “LOOOOOVES her UGG boots.” From that point on, the world began to notice.” Undoubtedly, with so many fans and followers, celebrities can exert a strong influence in generating consumer awareness and interest in products. Especially, Oprah being one of the most influential women, UGG was able to easily gain publicity and word-of-mouth communication about their brand and product.

Hence, it seems that celebrity endorsement of products can be a very effective tactic if used correctly. For example, marketers of brands can specifically reach out to high profile singers, actors, and athletes who align the brand’s value and lifestyle to feature them on advertisements. Also, by selecting celebrities who are popular and influential amongst the target group of the brand or product, marketers can easily reach out to their target market to generate interest and demand for the products.

 

*Example of common use of celebrity endorsement for products and brands in South Korea.

 

Skechers’ BOBS, Socially Responsible Brand?

With society’s increasing call for socially responsible, sustainable marketing, there have been numerous companies that set out with a mission to make a difference in the world. As Ted Lee discussed in his blog (“I bet you saw the Toms Shoes, but did you know them?”), Toms Shoes is a successful company that takes on its social responsibility by giving a pair of shoes to a child in needs with every purchase; it allows socially conscious consumers to support the cause and help others by buying Toms. However, reading Ted’s blog on Toms Shoes provoked a thought that a brand must be very tactful when implementing a socially responsible marketing campaign. An example to consider is the relative success of the Bobs, a line of shoes launched by the brand Skechers.

Compared to Toms, Skechers’ new line of Bobs offers nearly the same design, the identical campaign, and perhaps more comfortable shoes (as customers have stated) at lower prices. Nonetheless, Skechers has evidently failed to establish its image as the caring and friendly brand that strives to help those in need for the better future. Conversely, Bobs by Skechers received numerous criticisms, being perceived by the consumers simply as a malicious, profit-seeking “knock-off.” So what is the reason behind such different responses to Toms and Bobs? While I tend to believe that it was acceptable for Skechers to follow the lead of Toms Shoes to carry out a sustainable marketing strategy and campaign, it is their plagiarized product design and advertising that positioned their brand as a direct threat to Toms Shoes in the minds of the consumers. By launching an identical product as Toms, Skechers’ motives became questionable, and their “good willed” campaign was presented as an attempt to steal Toms Shoes’ market shares. Hence, while the fact remains that the children in need receive shoes just as same whether Toms or Bobs are purchased, many customers advocate and support Toms because it is a brand that truly represents generosity and society’s interests.

Just a sales associate? Customer service makes a difference!

It is common for many people to have experience working as sales associates in the retail environment.  I also have two years of experience working at the fashion retailers as a sales associate, and it became apparent that I, was not “just a sales associate.”

When I first started working at a clothing retailer, I thought my job was to greet people who entered the store and to simply fold clothes. My belief was that employees did not really make a difference in generating sales; customers will buy what they have come to buy.

However, sales associates play a significant role in the marketing process. They interact with customers most directly and personally, creating value for customers and securing long term relationships necessary for profitable business. For example, when I worked at a shoe retailer, it was surprising to observe the number of customers that promised to return to shop because they appreciated the superior service. When I interacted with customers personally and provided the best service (helping customers with finding the perfect shoes, putting on shoes, obtaining product knowledge and store promotions, and checking their fit, etc.), the response from the customers differed greatly to times where I simply gave the customers their shoes and walked away. With the extra service, numerous customers left comments like: “I love shopping at this store. I came expecting to find one pair of shoes but you were so helpful that I ended up finding three!”, “It was so easy for me to find shoes! I’ll definitely be telling my friends to come here to shop for shoes.”

Evidently, employees contribute greatly in creating a notable (positive or negative) shopping experience for the customers; their services and actions take part in shaping the consumers’ complete view of the company’s brand image.

Marketing blog #1- Virtual Subway Store Makes Grocery Shopping Easy

We are living in a society in which people are increasingly adopting a busier lifestyle, and there is an obvious upsurge in demand for goods and services that will help conserve valuable time and energy whenever possible. “Retail Renaissance” presents creative offline and online stores; one store that has made it to success is Home plus.

“Home plus, the Korean branch of Tesco, recently launched a series of virtual stores on subway platforms, enabling customers to make purchases using their smartphones while they wait for a train.”

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This innovative way of grocery shopping has increased Home plus’s online sales by 130%. The virtual Home plus store’s target market includes anyone from busy workers, students, to seniors with a smartphone who greatly value the convenience. After all, the process is to simply scan, pay, and the products are delivered to your house shortly after.

A virtual grocery store in South Korea is profitable with over 10 million smartphone users and a reliable online service. Moreover, Home plus is able to differentiate itself from other online competitors by merchandising products like a traditional store at a subway station. Consumers would be more inclined to use this service while waiting for their next train than to search through websites to find their needs. In addition, by creating a virtual grocery store with merely the pictures of their products, they’re able to decrease their inventory costs, and very likely minimize additional marketing costs, assuming that virtual stores that plaster the walls of subway stations are probably going to do a fine job promoting itself.

Therefore, the novel grocery shopping method undoubtedly delivers superior customer value and satisfaction. With more Millennials reaching adulthood, this technology oriented shopping service is likely to become a profitable marketing strategy for the future.