Monthly Archives: November 2014

Coca-Cola has increased its advertising budget by $1 billion over the next three years. This budget increase is a response to external threats such as concerns of obesity and artificial sweeteners, which are contributing to the company’s decrease in sales.

After a decade long decline in the number of Coke sales in the US, Coca-Cola launched its “Share A Coke” campaign. By replacing the famous Coca-Cola logo on its bottles and cans with different names of individuals the company hoped to re-engage consumers. The aim of the campaign was to get consumers to buy the personalized bottles for friends and family members, not just themselves. The campaign has already been a huge success as sales in the US alone have increased by more than 2%.

The demand for the personalized bottles has been overwhelming, and some individuals admit to spending months searching for a bottle with their name on it. Dean Crutchfield, an independent branding consultant states, “A Coke can or bottle is the most iconic design in the world and the fact you can impact that with your name has a huge curiosity and wow factor”.

The “Share A Coke” campaign demonstrates how impactful a company’s marketing technique can be on its sales. With one major marketing campaign Coca-Cola has been able to reverse its decreasing sales pattern.

Sources:

http://online.wsj.com/articles/share-a-coke-credited-with-a-pop-in-sales-1411661519

Media Sources:

http://www.iab-community.be/cases/share-a-coke-2/

http://www.brandsynario.com/news/cocacola-brings-global-share-a-coke-campaign-to-pakistan-in-ramadan

English Businessman, investor, and founder of Virgin Group, Richard Branson is a firm believer in empowering employees – not ruling over them. In his recent blog post, Richard Branson discuses his decision to give unlimited leave to his employees. Branson is testing this new unlimited leave policy with his employees at Virgin Management. By giving employees the ability to take longer holidays Branson hopes that they will fulfill their objectives efficiently, instead of fulfilling a time quota. With the introduction of this new policy Branson is demonstrating his belief that “companies should give their teams freedom to make their own decisions and express themselves”.

This new policy that Virgin is introducing is very different from the strict holiday leaves that many other companies offer to their employees. However, this policy may be more effective. Employees often feel ‘controlled’ by company rules and policies. By giving employees the ability to make their own decisions they feel valued and trusted by the company. Most employees will enjoy their job more, choose to work efficiently, and be loyal to the company, given these opportunities. Therefore, I believe that Richard Branson’s new unlimited leave policy is one that more companies should consider.

Sources:

http://www.virgin.com/richard-branson/empower-your-employees-dont-rule-over-them

Media Source:

http://alexlovellsblog.blogspot.ca/2010/10/sir-richard-branson-six.html

In Alexandra Skarsgard’s blog she writes about the new approach Harper Collins has taken towards maintaining its sales channels. The simplicity of purchasing books through online companies such as Amazon, eBay and Alibaba creates an advantage for consumers. However, for companies such as Harper Collins, there are risks associated with relying on such companies. For this reason Harper Collins has decided to sell directly to customers through their own website.

Similar to Harper Collins, HBO has recently decided to launch their own streaming service, providing an outlet for which customers can watch HBO shows without having to pay for cable packages. This strategy targets the 10 million people in the US that have internet connection but no pay-television service. As companies such as Netflix, Amazon and Hulu have been increasing in popularity it has become easier for consumers to stop paying for rising TV bills and instead stream shows online. With the development of these sites, it is no surprise that HBO has decided to stream their own shows online, potentially creating millions of dollars in additional revenue for the company.

By providing to their consumers directly, both Harper Collins and HBO are creating the potential to expand their target audience. As advances in technology continue, it will likely become more common for companies to follow in their footsteps. In the meantime, many companies will stand by and observe the success this strategy brings to Harper Collins and HBO, before deciding on implementing it themselves.

Sources:

https://blogs.ubc.ca/alexandraskarsgard/2014/10/05/going-the-distance/

http://online.wsj.com/articles/hbo-to-launch-standalone-streaming-service-1413385733

Media Source:

http://hbowatch.com/watch-hbo-online-for-free-with-hbogo/

As environmental awareness has increased, the focus on biomass energy production has also increased. The most popular forms of renewable energy sources are the sun and wind. However, there has recently been an increased interest in the use of wood pellets for biomass energy. As the global demand for wood-pellets is expected to double in the next few years companies such as BC’s Canfor Corp. have been investing into the market by constructing new pellet mills.

Using wood pellets for biomass energy is sustainable as they are composed of sawdust and wood waste. Forestry companies in the interior of BC already direct almost all of their sawdust and wood waste into pellet production. Not only does this production benefit the company as they are able to make revenue off of materials that would have otherwise gone to waste, but global communities also benefit, as they are able increase their renewable energy use. Currently, Europe and Asia are scrambling to convert to wood pellet fuels in order to meet their greenhouse-gas emission reduction targets. As companies such as Canfor Corp. invest into building additional pellet mills they are able to better supply this demand and convert more of their waste into sustainable energy. This proves that the new trend of using wood-pellets for fuel not only makes BC’s forestry industry a bigger business but also gives many BC forestry companies the opportunity to create shared value.

Source:

http://www.vancouversun.com/business/resources/Global+push+power+makes+wood+waste+bigger+business/10332856/story.html

In Robert Murphy’s blog post he discusses Goldcorp’s need to create good relationships in the communities that they are involved. The Chilean Supreme Court has recently ordered Goldcorp to halt the development of the El Morro mine, on the basis of the appeal filed by the Diaguita community that the mine would pollute a nearby river. In order to receive an environmental permit that would allow the mine to be built, Goldcorp must undergo consultations.

Earlier in the year I wrote a blog post on the controversial Barrick Gold Corp. mine in Tanzania. Similar to Goldcorp, Barrick Gold Corp. was undergoing a battle with a community which one of its mines was located. However, Barrick did not appear to be concerned with their relationships in the community, but focused on making profits. The difference in Goldcorp’s view is striking, as a company spokesperson stated that Goldcorp is “committed to open and transparent dialogue with its stakeholders and to responsible practices in accordance with the highest applicable health, safety and environmental standards”.

The halt ordered on the El Morro mine shows that mining companies will not be able to continue practices easily without considering all stakeholders. As Goldcorp begins consultations and hopes to develop a relationship with the Diaguita community, other companies such as Barrick Gold Corp. should emulate this. I agree with Robert as he states in his blog that building good relationships will ensure a sustainable future for these companies.

Sources:

https://blogs.ubc.ca/robertmurphy/2014/10/27/chile-supreme-court-orders-halt-to-mine/

http://www.bbc.com/news/world-latin-america-29531430

http://www.theglobeandmail.com/report-on-business/international-business/deadly-clashes-continue-at-african-barrick-gold-mine/article20216197/

Media Source:

http://www.mining.com/chilean-authorities-divided-over-goldcorps-3-9bn-el-morro-mine/