Rogers Communications Inc. locks in a 12 year broadcast deal with the NHL that is worth $5.2 billion. The deal secures Rogers with all broadcast and multimedia rights for all Canadian games, including television, radio, web, and mobile platforms. Rogers becomes a dominant player in the broadcast media industry. However, $5.2 billion is a substantial price to pay, and Rogers will need to recover its expenses, leading to the question, how will hockey fans be affected?

First, price discrimination will be an obvious strategy for Rogers, especially through tactics like bundling. Consumers are already offered package deals including various options for wireless, TV, internet, and home phone connections. Channel and sports event subscription are perhaps others we can add to the list. Let’s be realistic. For Rogers, it will be quite easy to charge premium prices to die hard hockey fans, who have a fairly inelastic demand. High prices for hockey tickets has never deterred hockey fans. Regular season and playoff games sell out consistently. In addition to this, look at all the commotion and controversy created by the recent lockout. The fans want hockey and they have a high willingness to pay.

Rogers has developed a great marketing strategy by associating themselves with the sports entertainment market. The company is now targeting an even larger consumer base in this industry compared to their wireless device market. However, if Rogers interconnects the two markets, allowing consumers to view hockey games and updates through wireless devices, then they will have the ultimate competitive advantage.

Let’s face it, this ultimate competitive advantage for Rogers will be the ultimate disadvantage for hockey fans. Get ready Canada,  it’s time to pay up.

Source: http://business.financialpost.com/2013/11/26/how-rogers-communications-inc-scored-its-12-year-nhl-broadcast-deal/?__lsa=a06f-d8f3

Although expanding a brand into global markets has substantial risk, General Motors is receiving a positive response for their Buick brand in China. Since China is a bigger seller of Buick compared to the United States, GM is looking at this strength as another market development strategy for its Cadillac brand.

This opportunity for General Motors is less risky now that they have already launched one of their brands in China. GM has an advantage since they completed most of their market research prior to releasing Buick into the Chinese market. As a result, GM has already developed an economic, sociocultural and governmental analysis which has familiarized the company with this attractive global market.

Furthermore, GM has chosen a global entry strategy of a joint venture, partnering with Shanghai General Motors. Although the ownership and profits will be shared, GM will lower their risk by sharing the financial burden, as well as gain  a better understanding of the market.

The local manufacturing of the Cadillac XTS luxury sedan has begun, and Cadillac plans to produce a new model every year until 2016. By 2020, Cadillac anticipates to own a 10% share of the luxury car market in China. GM’s prompt identification of the growing  luxury car market in China puts them ahead of their competitors in the long run due to their experience and greater understanding of this global market, making their projection of owning 10% of the luxury car market very attainable.

Source: http://www.forbes.com/sites/jimhenry/2013/10/31/general-motors-ramping-up-the-cadillac-brand-in-china/?ss=going-global

With social trends encouraging greener consumption, BMW has seized the opportunity to expand their target market by producing an electric vehicle, the BMW i3. Targeting consumers with families and those who value environmentally friendly products, BMW is receiving a positive response to the i3. Releasing in mid-November of 2013, customers have already reserved more than 8000 vehicles. If the unexpected high demand for the BMW i3 remains constant, the company will need decide whether or not to increase the production of the vehicle.

Although the BMW i3 is in its introductory phase, the company has already recovered its research and development costs, therefore each car sold will contribute to profits. The success of the product prior to the launch indicates that the growth phase of the product is near. With the volume of  sales increasing rapidly, the firm is looking to make substantial profits.

However, with the success of the BMW i3, there is an increasing opportunity in the electric vehicle industry, alluring competitors to take advantage. Competitors, such as Volkswagen, are already developing strategies to dominate this particular market. Although BMW has a head start, they will need to sustain their competitive advantage by convincing consumers their product is superior to that of their competitors.

BMW has successfully introduced itself to this new market, however, will they be able to preserve their position?

Source: http://www.bloomberg.com/news/2013-10-14/bmw-mulls-boosting-electric-car-investment-on-early-i3-demand.html

Social media has become a main tool for marketers to promote their products and services to consumers. Facebook’s self-serve ad tool is making it easy for companies to participate in promotional activities. However, a recent incident has caused many to question how advertising through Facebook is monitored by the social network itself.

Recently an online dating service, ionechat.com, advertised its services on Facebook by using an image of Rehtaeh Parsons, a deceased bullying victim. Initially thought to have resulted from Facebook’s social context advertising, the owner of the dating website admitted to obtaining the picture through a tool that copies images from Google searches. The advertiser was banned after a concerned Facebook user alerted the social media company.

The unethical behavior of the advertising company, ionechat.com, is clearly evident in this case. A company should be responsible in selecting the images it uses for advertising. By using a tool that generically captures images from Google, the company clearly does not care about the source of the images or the content directed at its consumers. The image of Rehtaeh Parsons was identified quickly due to the recent high profile nature of her case. However many other cases like this may go unnoticed. This raises the question, is Facebook obligated to monitor the ads that are marketed to its users? Ethically Facebook should take responsibility for the content it allows to reach their users and regardless of not being the producer of the offending ad, the social network should apologize for this incident.

Facebook users are fast becoming frustrated with the obvious integrated marketing that has escalated on Facebook in the past few years.  Adding an experience of offending content to the already noisy and cluttered experience of social context advertising may cause many users to disengage from the social media altogether.

Source: http://www.theglobeandmail.com/report-on-business/facebook-bans-advertiser-for-using-bullying-victims-photo/article14391254/