In 2012, a proposal to ban +16 ounces soda drinks (a beverage linked to obesity) created a global debate. According to the article, the Court has finally rejected the proposal, and I think that this has been a fair decision. In my opinion, Government intervention is very important in those types of issues, but the banning of soda drinks would have been an extreme action.

The role of the Government is indeed to work towards a better society by investing into schemes such as reducing the level of obesity in America. In those cases, the Government should have a say in the pricing and distribution of soda drinks. It is true that unhealthy lifestyles are becoming increasingly common, which results to more government spending on health care.

Therefore, a more effective suggestion to the Government would be to reconsider the price of sodas (by setting a higher price floor or increasing taxes imposed on sodas) that will discourage consumption.

To conclude, I believe that it is partly the job of the Government to impose fair regulations that will benefit the economy, the firms, and each and every individual, but the impact on all stakeholders should be considered.

What if your soda drink became illegal?

Image sources:
http://htekidsnews.com/soda-ban-in-nyc/
http://www.ahshistory.com/2013/11/13/it-should-be-illegal-to-sell-fountain-soda-cups-in-excess-of-16-ounces-in-stores-and-restaurants/
http://www.fitnessmash.com/2012/06/will-the-soda-ban-work/

Like any other fizzy drinks, Coca-Cola’s POP is a refreshing beverage with a sparkling taste. But what makes Coca-Cola stand out from its competitors? The answer is its USP, which emphasize on originality to win customers.

Coca-Cola’s latest campaign, “Share a Coke”, has been a very successful marketing tactic. Everyone has a touch of narcissism, and would not refuse something with their name on it. This strategy encourages customers to purchase not the Coke, but the personalized bottle. To boost sales even more, Coca-Cola emphasizes on “sharing” the Coke with our loved ones to encourage us to purchase not just one but many bottles. Coca-Cola even toured to meet customers and distribute customized cans. Some people will also share their excitement of this experience on social networks and indirectly advertise the Coke. According to me, this strategic move has been inspired by Starbuck’s personalized drink services and the success of its publicity.

Proudly sharing a photo of my customized Coca-Cola can to my friends

My friend responding with a picture of a similar product: her personalized Pepsi bottle

Pepsi, Coca-Cola’s main competitor, has also used this tactic with a bit of a twist. After showing to a friend from UK my customized Coca-Cola can, she sent me a photo of her Pepsi bottle with her picture on it. Pepsi has benchmarked Coca-Cola’s strategy and became first-mover in its industry, with the aim of reducing Coca-Cola’s competitive advantage. Because of the vast variety of products available on the market, businesses need to find ways to create brand preference. Pepsi uses a lot high-technology promotion strategies to impress its target audience and tries to show that they are the modern Coca-Cola. Pepsi also employed other methods to reposition their competitor, but I feel that they have been unsuccessful since Coca-Cola still maintains its leading position, even after decades. This shows how Coca-Cola has been able to get on top of the ladder in people’s mind and can now maximize potential benefits.

I was absorbed by Kissmetrics’ blog on “5 Ways to Turn Your Unhappy Customer into a Valuable Resource” because it taught me things that I never thought of before, concerning how to respond to customer complaints

The blog talks about how to accept critics, use it as an opportunity to improve customer service and get back customers. To make customers feel heard, firms should avoid immediately “jumping to a resolution” and instead take time to understand their problem and find a suitable solution. I do agree that if a firm acknowledges my discontentment and remediating to the situation, I would feel that they have actually taken my complaint into consideration. The attention I receive shows how they value me as a customer and I would thus be more tolerant to their mistake.

The firm’s role is to remediate to the problem and do whatever he can to accommodate the customers’ need, even if the problem cannot be fixed. As two popular quotes say, “Customer is King” and “The customer is always right”, which shows the importance of treating customers well. We, as customers, have power over businesses, in the sense that it is we who create demand for a product. Thus, not only will a dissatisfaction regarding a product or service impact on the unhappy customer’s repeat purchases, but it may also influence potential customers and other loyal clients. With the increasing role of social media in customers’ daily life, “damage control” is an important point that businesses should take into consideration.

The blog’s explanation concerning the idea that

“an unhappy customer that’s transformed into a delighted one becomes even more loyal than a satisfied customer”

was very enriching. Again, as I put myself into the unhappy customer’s shoes, I realize that what the blog says totally makes sense. If after encountering an issue with a firm the latter responds by offering me a stellar service, I would contentedly look forward to my next visit and would straightaway talk about it to my friends, which creates positive word-of-mouth for that firm.

Hence, businesses should not disregard complaints but instead seize this opportunity, by using them as feedbacks to improve customer service and compete better against competitors.

Image sources:
http://i.telegraph.co.uk/multimedia/archive/01484/PF-bank-complaints_1484688c.jpg
http://static.squarespace.com/static/51ac125ae4b0058e26d097db/t/53200e8ae4b0ab0fe0a9bc42/1394609803127/?format=750w

Jodie’s blog post is about the launch of Walmart’s Pickup grocery service, which has triggered my interest because of its innovative aspect. We can see that the external environment, more precisely the technological factor, is in favour of Walmart and this service can become their point of difference.

The Pickup grocery service seems very similar to that of online retailers such as Ebay. If it becomes popular, Walmart may even consider reducing its store size and invest in warehouses instead. Customers will have a better awareness of the products available and will not come across bad surprises such as travelling to Walmart and realise that the products needed are out of stock.

As Jodie mentioned, for a segment of customers such as elderly, infirm and busy parents, this service can be extremely convenient. Customers’ wont have to move around to search different products, which is time-saving. Furthermore, they will not have to waste time waiting in the queue. Payment will be made more quickly, as Walmart will calculate the total cost prior the customers’ arrival, which will be a gain creator to customers.

However, with the increasing popularity of the service, i am persuaded that the queues will be accumulated in the drive-through and clog traffic. Keeping the customers waiting in a drive-through line instead of in a check stand line will not be a pain reliever, hence Walmart’s value proposition may not be as affective.

In addition, even though their strategy aims at increasing customer spending, i believe that their sales may actually fall. Grocery stores use various strategies (the way they display their products,provide giant shopping carts…) to encourage customers to purchase things that they do not necessarily need. Walmart is aiming at the Differentiation of Porter’s Generic strategy, but will it really be effective?

Image source: http://yellowbrand.files.wordpress.com/2009/12/wal-mart1.jpg

BC Hydro’s Site C hydroelectric project

This article deals with the disagreement between BC Hydro and BC’s Aboriginals concerning the development of the Site C hydroelectric megaproject. According to BC Hydro, this proposal has a huge potential and reducing pollution will benefit the area. However, they have not considered the external factors that might act as a barrier to their project.

BC Hydro is thinking from a business point of view and is not considering the socio-cultural limitations. First Nations strongly disapproves the idea because of its destructive impact. As part of the community, their duty is to protect the farmlands and wildlife habitat of their ancestral.  Flooding the Peace River Valley would have an adverse effect on the Aboriginals’ lifestyle. In addition, the area is used for ceremonial purposes, which, i believe, should be kept intact since it has a sacred value to the Aboriginals.

Political factors can also affect BC Hydro’s business activity. Destroying this area will be an unethical decision, and this is why one of their chiefs believe that the government will vote in their favour.

When planning a business model, BC Hydro should consider all stakeholders involved. In this case, I feel that the benefits to Aboriginals outweighs those of constructing a hydropower dam. As the need for new energy is not urgent, Aboriginals tried their best to propose smaller, less adverse projects such as solar and wing geothermal power. An alternative that i would propose could also be biomass gasifiers or pico-hydros.

Image source: https://www.bchydro.com/energy-in-bc/projects/site_c.html

Soon after releasing its latest device, the Iphone 6 Plus, Apple received complaints concerning users’ Iphone being deformed in their pockets, creating a “bendgate” polemic. 

Photos and videos have gone viral, greatly affecting Apple’s image. With Apple’s “14 days return policy”, customers may opt to return their recently-bought Iphone to avoid facing this issue in the future. Consequently, not only will Apple’s sales decline, but they will also end up with a stock of bent Iphones that cannot be resold.

In addition, major competitors, namely Samsung and LG, took this opportunity of “repositioning the competition” (as Ries and Trout mention in their book, “Positioning, a battle for your mind”), in their adverts by mocking Apple’s “bendgate”.

According to me, some users may have exaggerated on the “bendgate”, by purposely bending the phone to prove its malfunction. “The amount of force required, 90 to 110 pounds (…) is not something that is likely to happen in everyday life” Apple debates.

As loyal customers tend to overlook some cases, i assume that most of them will keep purchasing at Apple, one of the leaders of smartphones. This demonstrates Apple’s position in the market.

To respond to this issue, Apple explains that with the normal use of the phone, a bend is very rare. Yet, it is not impossible. So, even though Apple is trying to justify itself, i would encourage the firm to invest further in R&D. A redesign of the Iphone that meets customers’ expectation might overwrite Apple’s “bendgate” criticism.

Image sources:
https://twitter.com/LGUSAMobile/status/514817371911901184/photo/1
http://s3.amazonaws.com/digitaltrends-uploads-prod/2014/09/Galaxy-Note-4-Bendgate.jpg

Starbucks, has established a high image and created excellent customer relationship by incorporating its policy of personalizing customers’ drink.

As the article states, Starbucks’ specific purpose was not only for operational advantage, but to also promote one of the company’s value proposition- provide a friendly service. Starbucks’ strategy focuses on creating customer loyalty by valuing their customers and giving them a sense of importance.

Yet, customers complaint highlights customer names being wrongly written. While this can be seen as bad publicity, “there is no such thing as bad publicity”. For customers, especially teenagers nowadays, the media became a way to express their feelings. Thus, customers show their discontentment by sharing to the virtual world how badly or funnily Starbucks has written their name. I even know someone who changes his name to “Bob”, to avoid that Starbucks misspells his name, and posted a photo to show his amusement. By doing so, he is also increasing Starbuck’s brand awareness, which acts as a sort of advertisement.

A customer expressing her discontentment through social media by taking a picture of herself with a Starbucks drink, where we can read her name as “Jew” instead of “Jude”

Another issue with the personalized cups can be that some customers are reticent to be called by their names. Businessmen, for example, may want to keep their superiority and be called “Sir” instead. This barrier shows that Starbucks’ aim to create familiarity is not effective on every customer.

Either way, the personalized cups give to the customers a memorable experience of their visit, and as we say, “any publicity is good publicity”.

Image source: http://www.reshareworthy.com/wp-content/uploads/2014/01/218.jpg