Monthly Archives: October 2014

This year, Halloween, which has remained a popular favorite holiday for many decades, falls on a Friday. This coincidence, along with many other factors, has lead to a substantial increase in Halloween sales.

According to a National Retail Federation Survey, with a rise from 65% last year, more Americans will dress up for Halloween this year than ever before. In addition, people are increasing their Halloween budget. The average person is willing to spend $77.52 as compared to $75.03 last year.  With the aid of many external factors such as Pinterest inspiration and overall costume improvements, demand for costumes is predicted to rise this year. According to the NRF Survey, 40% of total Halloween expenditures will go toward costumes. Discounters like Walmart and costume shops like Party City are taking advantage of this rise in demand through fun promotions.

Overall, this provides an insight to consumer behaviour. My analysis shows that through advertisement and social media, a single event can go through massive change. I believe that what the survey predicts will come true, since Halloween has been anticipated with elation even more than last year.

Reference:

“Halloween Shoppers Will Buy More Costumes Than Ever in 2014 | CMO Strategy – Advertising Age.” Advertising Age CMO Strategy RSS. N.p., n.d. Web. 22 Oct. 2014. 

Picture:

“Easy Halloween Party Ideas And Games For Kids.” Inspiration For Your Home Easy Halloween Party Ideas And Games For Kids Comments. N.p., n.d. Web. 22 Oct. 2014. 

Regarding Jaruphong Sapkiree’s blog post: Along with the iPhone 6, Apple is also introducing Apple Pay, which allows customers to make payments through devices such as the iPhone 6 and the Apple Watch. This is innovation brought to a whole new level. Apple Pay users are able to store up to 8 credit cards that Apple has on file for the iTunes account. I agree with the fact that people will slowly become adapted to the Apple Pay. However, I also believe that most people will disregard using the Apple Pay for security reasons. Apple is introducing Apple Pay in order to gain competitive advantage over other corporations, but it will definitely be a struggle given that it is such a new and unknown concept. For this reason, Apple must come up with a strategy to deal with future possible shortcomings.

Given that Apple expects customers to be dubious regarding Apple Pay, the corporation is preparing in many ways. For instance, Apple is anticipating its retail staff with mandatory one-hour training sessions. The company will also announce details at the iPad launch event.

People are afraid of what they do not understand. Therefore, if Apple is able to fully explain how Apple Pay works, customers will be more willing to make payments through their iPhones.

Reference:

“Apple’s iPhone-based ‘Pay’ launches this week.” The Telegraph. Telegraph Media Group, 13 Oct. 2014. Web. 21 Oct. 2014. 

Images:

http://www.macworld.com/article/2607181/why-apple-pay-could-be-the-mobile-payment-system-youll-actually-use.html

http://www.engadget.com/2014/09/09/apple-pay-nfc/

Controversial disputes have surfaced as a result of the New Prosperity mining territory conflicting with the Dasiqox Tribal Park, which the Tsilhqot’in people are trying to protect. An official opening for the park is scheduled for October 4^th by the A.B.C First Nations.  The Tsilhqot’in people are entitled to 1,750 square kilometres of land. At the same time, Taseko Mines Ltd.’s Fish Lake property is outside the recognised area. However, the natives have recently “folded” the mine territory into the tribal park frontier.

Overall, Tsilhqot’in people are a major threat to the mining company for many reasons. Natives are protected by many laws around Canada and are favoured by most of the Canadian population. Native people represent culture, ecology and heritage, which is why they are given priority. For this reason, the company is obliged to spend more money on sustainable mining tools in order to lessen opposition.

Furthermore, the Taseko’s brand image is damaged  because the company is associated with violation of ecological values. This leads to negative brand awareness because the media neglects the company’s actions. In order to fight back such negative brand image, I would suggest that the company should work on more sustainable ways to operate in the environment and provide employment for the natives.

Reference:

Pynn, Larry. “Tsilhqot’in set to declare site of New Prosperity mine a tribal park.”www.vancouversun.com. N.p., n.d. Web. 6 Oct. 2014. 

“The cola wars are far from dead. “ (Sicher) PepsiCo recently disclosed Pepsi True: a new soda naturally sweetened by a plant called stevia. In contrast to the regular Pepsi soda, Pepsi True has “30% less sugar and 40% fewer calories”.  (Peterson) This product is targeted towards people who are avoiding both sugar and aspartame. In Addition, The Coca-Cola Company previously launched a similar product: Coke Life.

The conception that coke is unhealthy is widely known. Even diet products such as Diet Coke and Diet Pepsi scare away customers who are trying to avoid aspartame. This is why the soda business has been in decay for the past 10 years in the United States. For this reason, many soda companies are releasing innovative products made from stevia and natural sweeteners in order to remain in business.  In this case, stevia has the advantage of a natural image.

Furthermore, Coca Cola and PepsiCo have intermittently engaged in competition. The release of Pepsi True definitely triggers the revival of the companies’ unfinished rivalry. After three years of refining their product, Pepsi Co managed to enhance the sweeteners used in Pepsi True by experimenting with Sweetmyx. I believe that in comparison to Coca-Cola, Pepsi Co cares more about releasing a high-quality product rather than being the first one to release it. After falling behind Coca-Cola for so long, will PepsiCo manage to stand out?

Reference:

Peterson, Hayley. “There’s One Major Problem With Pepsi’s New Stevia-Sweetened Drink.” Business Insider. Business Insider, Inc 1 Oct. 2014. Web. 2 Oct 2014.

“PepsiCo’s Pepsi True is new Salvo in Cola Wars | CMO Strategy- Advertising Age. “Advertising Age CMO Strategy RSS. N.p.,n.d. Web 1 Oct. 2014.

Is vintage the latest fashion? It seems like old style has taken over a large portion of the market. This latest trend is the major trigger in Polaroid’s returning popularity. On September 23, Polaroid released ‘The Cube’, a small, cost-friendly HD action-video camera. Despite its lack of some features, this pioneering gadget leans more towards convenience, thus targeting a broader market. Simultaneously, this decrease in features is expected as the device is sold for half the price of a regular action-camera, such as the notorious Go Pro. What could this mean for Go Pro? Sales for Go Pro could definitely fall since potential customers who are not willing to pay as much money will turn to Polaroid. GoPro focuses on quality, while ‘The Cube’ focuses on convenience. ‘The Cube’, sold for $99, is aimed towards people who want to document their everyday lifestyle.

My analysis shows that by focusing on lowering price instead of the product’s quality, Polaroid is applying the Cost Leadership Strategy, as argued by Michael Porter. Porter claims that when a firm is known for being the low cost producer in the industry, it is applying the Cost Leadership Strategy. This essentially means that if Polaroid manages to thrive in the action-camera market, it will be able to remain profitable for a long time.

Reference:

Lanks, Belinda. “Polaroid Goes After GoPro With a $99 Action Camera.” Bloomberg Business Week. Bloomberg, 23 Sept. 2014. Web. 1 Oct. 2014.