Today the health and wellness craze has become very popular in North America. Sweaty Bands, founded by fitness instructor Donna Browning, is an up-and-coming athletic wear company that could very well go on and experience the same success that Lululemon Athletica has enjoyed. Reading this article about these stay-put head bands, you can see that this small company is growing fast and has no intention of stopping. With $3-million in revenue in 2011 and an expected $12-million in 2012, you can see that Sweaty Bands did not waste any time in going to sports events to promote their product. What struck me when looking further into this company is what Browning calls the “Sweaty Run.” This tab on the Sweaty Band’s webpage shows the timeline of how the company has grown. When reading this, I could not help thinking about class 19 and the stories we heard from Amielle Lake and Eric H. Carlson about how they became entrepreneurs. Their stories, along with Browning’s, are inspiring for students like me that have yet to find their success in the business world. After listening in class and analyzing Sweaty Bands, one thing has really resonated with me about entrepreneurship: if you want to be a successful entrepreneur, your company or product had to solve a problem for your target customers – even if it is as simple as creating a headband that will not fall off while you play sports – and only after working incredibly hard to make your vision a reality will your company thrive. Just as Eric Thomas said, “when you want to succeed as bad as you want to breathe, then you’ll be successful.”
https://www.youtube.com/watch?v=Hqhk3U7DRvg
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It all started with Muhammad Yunusand and his micro-loan revolution. The idea to make money while also benefiting society is somewhat new to the world. It may be controversial to make a profit while helping society, but I think it is a great idea. That is why, much like my classmate Celine Zacharias, I was inspired by Save-On Meats when we talked about it in during class 12 (CSR and Sustainability). Not only is this a local Vancouver business, but it is also a social enterprise. Mark Brand decided to bring Save-On Meats‘ original idea back to life after it closed in 2009. Brand brought his expertise from his other successful restaurants to bring back Save-On Meats better than ever. Not only does it benefit Vancouver habitants with good food, but it also provided the less fortunate of Downtown Eastside with an opportunity for work, experience, and ultimately to better themselves. The idea of social entrepreneurship is more than just a charity as Celine said: it an opportunity for entrepreneurs to do some good and also make a living. This is something that I have always found to be a problem with non-profit organizations. These organizations do so much good for society, yet the people who run the organization cannot give 100% because they are unable to make a living doing society this great service. With the emergence of social entrepreneurship, this problem is solved. After all, why can’t it be someone’s job to make the world a bit better, one BLT at a time?
Celine’s Blog
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The Korean craze Gangnam Style is know all over the world. With its catchy tune, it’s impossible not to notice. Most of us think that it’s just a catchy song and nothing more, but to Korean businesses and stock buyers, it presents a real money-making opportunity. The power of celebrity endorsement is nothing new when it comes to marketing your product, but I never really gave much thought to how powerful it could be until I came arcoss Tamsin McMahon‘s article on Macleans’ Business Blog. Psy, the creator of Gangnam Style, is not only bringing in better sales for those who endorse him but also boosts in market share price. Companies such as DI Corp., who have seen their stock price soar to 500% of its original value, are taking full advantage of Psy’s fame. In business, if you want to be successful, you have to get yourself noticed by customers. Differentiation from your competitor is very important to get customers to pick your product over all the others. For customers, if they see their favorite pop (or in this case K-Pop) star, they are more inclined to buy a product. When a popular figure, such as Psy, associates himself with your product it gives you the competitive edge you need to make your product the one customers choose.
https://www.youtube.com/watch?v=oHDacG_ESf8&feature=player_embedded
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Photo Credit: Jancie Leung
Within all the articles we have to read for COMM 101 there always seems to be a common theme: efficiency. Businesses are always trying to find ways to reduce cost and improve production so they can increase profit. Because of this, I wasn’t surprised to find the efficiency theme in Janice Leung‘s blog entry, “Translink’s New System: The Compass.” Translink is trying to do do what every other company in today’s difficult market is. By imposing this tap-in tap-out system, called The Compass, they would be able to reduce the necessary amount of Translink authority employees, therefore reducing staffing costs. They will also be able to better control the non-paying sky train and B-Line riders. Not only will implementing the Compass be an advantage to the company, but to the consumer as well. Riders will no longer have to fill their pockets with change because the card will be able to be pre-loaded for convenience. All of these improvements are linked to higher efficiency. Translink would not be the first to implement this type of system: Leung mentions that she has experience with similar systems in Singapore, Hong Kong, and London. Transition to this system might be a little difficult, but after the new technology is established it promises to improve Translink’s overall day-to-day operations.
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For something that is less than ten years old, social media is something very prominent in people’s lives. If you would have told someone to Facebook you or to follow you on Twitter ten years ago, they would have looked at you like you were crazy. Today, however, it may be easier to get in touch with someone via Facebook rather than face-to-face. With this new revolution it is not suspiring that even businesses are jumping on the bandwagon. If you want to succeed in business, you need to communicate effectively with all of your potential customers: by doing this you can figure out what it is they want. Scott Levy suggests that communicating with your consumers via the Internet is the best way to give your business a competitive edge. In, 5 Tips for Using Social Media as a Customer Service Tool, Levy says that the best companies are seeking out their consumers on the web and addressing any concerns or complaints they may have. Using feedback from the Internet can help companies to see what they are missing when it comes to pleasing their customers. Companies are also able to communicate directly with the people having the issue and resolving it, which mean they will lose fewer customers that otherwise would have never considered using or visiting the company again. There is no better market research to figure out what your company can do to make itself better than hearing what real consumers want and don’t want.
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Canadian companies making it big globally seems to be something that is scarce in today’s business world. That’s why I was surprised to learn that Aldo, a globally-recognized shoe brand, is and has been Canadian and owned by Aldo Bensadoun for almost 40 years! This article really gets to the bottom of why this company has been so successful. Aldo has been in the business for so long that they know exactly what consumers want and how much they are willing to pay for it. This invaluable knowledge comes into play when they select the shoes they will sell under their four banners: Aldo, Spring, Little Burgundy, and Globo. By choosing from 500 designs four times a year, this brand is able to appeal to their customers’ ever-changing tastes. Although this inventory ratio is very long compared to that of Zara’s, discussed in class 15 (supply chain management), it seems to be working for Aldo. The long selection process for what product they are going to sell shows that the brand cares about their customers. After 40 years of eye-popping ads and products, Aldo is making the most sales ever. They are on track to make $1.8-billion in sales this fiscal year. Aldo is only able to achieve this because they are constantly staying on top of trends and giving the customers what they want. Aldo is a prime example of a business knowing its place in the market and its customers, which are key if you want your business to give the boot to the competitors.
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In market class 8 (market research), we learnt that in bussiness it is very important to understand your customer. In marketing getting inside your head of your target audience and being able to attract their attention is invaluable. The marketing strategists at the Heart and Stroke Foundation were looking for a way to make learning CPR, a lifesaving procedure, more appealing to youth. The answer? Zombies. By appealing to the current trend of horror in today’s media, they are able to get their message across to an otherwise uninterested audience. Using different marketing strategies for different audiences is vital if a company wants to be noticed. This unorthodox commercial captivates the audience by almost tricking them into thinking the advertisement is a movie trailer for an upcoming blockbuster. Once the advertisement has the audience’s attention it is able to give important information to the listener which otherwise would be ignored. The Heart and Stroke Foundation was able to make sure this idea would work through market research before filming this expensive advertisement. Through focus groups they were able to prove that making this commercial was worthwhile. Market research is an invaluable tool when it comes to understanding how to pinpoint your audience.
Watch the Commercial
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When I came across this article it got me thinking about the time value of money concept we talked about in class 6. Saving money is something that most Canadians struggle with in today’s economy. An elderly couple, Marielle and Matt, have gotten it right and managed to save enough money for their retirement. Or so they thought, until they got a second opinion on their investment strategies. The pair is very invested in keeping their large home and also keeping up their extravagant lifestyle. They tried to make the most of their money by taking a mortgage and using the proceeds to invest. The couple has not done a very good job of this. By only taking on two stocks in their portfolio they have failed to diversify and are sitting ducks if the stock market were to crash. Investment is tricky and everyone is looking to make money in a short period of time. For investment to work, you need to make time work for you and not expect to see short-term success. In order for equity to provide good return. you need to allow time, something this couple do not have much left of, to provide growth and produce dividends. Investing is not worthwhile for this couple because they do not have enough time to increase the value of their portfolio without taking too much risk. Because of their age, they should live a more conservative lifestyle, cash in on their home, and use the proceeds as capital to live the remainder of their lives.
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The alcohol business is one of the largest in the world: with so much variety and choices for the consumer, companies must come up with innovative ways to stand out within the market. The German liquor company G Sprits have come up with a rather interesting idea to market their product. For this company producing superior quality rum, whiskey, and vodka was not enough to stand out in the market. They decided that their point of difference, which we discussed in class 5 (brand positioning and value propositions), compared to other liquor companies was pouring their alcohol over a supermodel’s naked breasts before bottling their product. G Sprits is quickly establishing itself in the market as a stand-out product for high-end consumers who are looking for the complete experience. The bottle comes with the supermodel in question’s picture and a certificate assuring authenticity. Has this aggressive and provocative marketing strategy been helpful to the company? They have received plenty of free advertising; the news world has jumped on this story with questions about ethics and whether the product passes all the health regulations, but the company has been able to stand its ground against all the critics. Will this advertising gimmick be enough to form a reputable name in the alcohol business or is this point of difference too different?
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Patagonia has a simple goal “…to make the best-quality product with the least amount of harm.” (article 2 in additional reading) Patagonia is not only responsible for earning profit for shareholders and creating quality products that are in demand for the consumer, but also for a variety of programs that they have created and incorporated into their business model. Patagonia has responded to the ethical challenge in more ways than one, but mainly they have recognized a need to address the environmental issues that are present today. Patagonia is reducing, reusing, and recycling in any way possible. An example of the programs that have been put into action by Patagonia is ‘1% For The Planet,‘ which is a pledge they have made ever since 1985. This pledge is to give 1% of their profits every year to the preservation and restoration of the natural environment. Patagonia also encourages other companies to do the same by joining this program and taking the same pledge they have. Some other solutions include: using lower-impact dyes, organic cotton, and their Common Threads Initiative, in which they use old clothes to make new clothing – so that their products never reach the landfill. Also, their headquarters, a 19 million dollar project in Ventura, California, contains its own solar power plant in the parking lot. These are all investments that Yvon Chouinard, Patagonia’s founder, and his team feel comfortable making, as they know the risk is well worth the reward. Even with all the programs listed above, Chouinard still does not consider Patagonia as a responsible company. The company boasts over $500 million dollars in sales last year with stellar profits to go along with the green envy of companies all over the world.
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Additional Reading:
1. Patagonia: Lessons from a Pioneer in Responsible Business
2. Outdoor Clothing Maufacturer Patagonia Recognized for Corporate Responsibility
3. Patagonia’s Code of Ethics
4. Patagonia: One Company’s Fight To Do Right For the Planet
