Jae Ah Ho's Blog

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I found an interesting article from http://blog.freedmaninternational.com/, and here is the part of the article.

 “McDonald’s is tapping into a growing focus on reassurance of hygiene levels among Chinese consumers following a spate of food safety crises over the past few years.

The new “Chickileaks” campaign emphasises McDonald’s ethical and healthy treatment of chickens. In China, the fast food giant has faced the challenge of local consumers’ preference for chicken over beef. Having introduced more chicken-based items to its menu, McDonald’s hopes that the Chickileaks campaign will further boost its reputation as a provider of quality chicken products.

Focusing on responsibility and transparency, the campaign microsite harnesses online marketing tools including video to take users on a guided tour of McDonald’s chickens, including interviews with the scientists and technicians who monitor the livestock.”

McDonald’s is doing the right thing to promote their products and to appeal its brand in China, and this campaign will give them a competitive advantage over rival fast food chains since only a few companies are focusing on responsibility and transparency in China. They know exactly how to gain trust from Chinese consumer and stand out as providing healthy food.

Once companies market different countries, they have to gain trust from their potential customers. By showing and emphasizing their business ethic and practices, customers would accept the brand and trust the quality of services and products that companies provide.

Through this course, I could find my strengths and behaviors. Whenever people ask me about myself, or I have to describe myself, it was very difficult to come up with an idea because I had never spent time and effort to know about myself. However, by answering a list of questions to Strengths Finder, I could find my five most dominant themes of talent which are relator, empathy, restorative, analytical, and futuristic.

By working on my resume and cover letter and preparing for an interview, I realized how much I am not prepared for the real world. While getting assignments done, I was very satisfied with what I am getting out of these works. I felt I was getting ready for the real world and took the first step through this course.

I found an interesting post from Hyun Ho Yang’s blog. He shared a video clip showing how Domino’s put so much of their effort and time in taking the best pictures of their pizzas for their commercials to attract customers. Furthermore, as Hyun Ho mentioned; “Domino’s are now telling consumers to take a picture of their own ordered Domino’s pizza and send in pictures of them, so they can show the pictures in their commercials”.

I also think this is a brilliant idea for two reasons. First of all, they can increase sales because people have to buy pizza in order to take a picture of it. Also, Domino’s can build a long term relationship with customers by asking people to participate in this event and compensating them for their effort by offering cash rewards.

Secondly, it is pretty disappointing whenever my pizza is delivered. While I am waiting for my mouth-watering pizza, I am imagining the same pizza on a leaflet with stretched cheese when picking up a slice and piled up toppings. However, once I open up the box, my expectation flew away. Where were all the toppings and long flowing cheese that I saw in the picture? Repetitive incidents have shaped me to distrust advertisements and commercials. If pizza restaurants post pictures of the actual pizza that their customers are getting, these pictures would be reliable. I would definitely buy pizza from them.

image taken from http://dealcetera.com/dominos-pizza-canada-coupons-4-off-large-pizza-coupon-when-you-order-online-at-dominosca/

During my service I was fortunate enough to work with a great leader, Sergeant Diaz Anthony, who has influenced my academic goals. I worked in the 4th Chemical Company with Sergeant Diaz. When work ethic reached a low point and good leadership was scarce, he took the initiative and restored the core values of the US army; loyalty,duty, respect, selfless service, honor, integrity and personal courage. He set an example for all to follow and gained the respect of soldiers. These experiences have influenced me to become a leader worthy of respect in the field of business.

1. Folgers Coffee

2. Ponds

3. Cingular

4. Mr. Clean

5. Mielo Vacuum Ad

6. Smart Car

7. 3M Security Glasses

Click pictures to visit the source

After visiting Matias’ blog, I couldn’t stop thinking of the video clip he posted. It was one of the best commercials I have ever seen. This ad shows the power of guerrilla marketing. I believe guerrilla marketing is the most effective and efficient strategy in that those images are indelibly imprinted on people’s minds with a relatively low marketing cost. Of course, Public Relations and other marketing strategies could be one of key components to gain publicity; however, consumers tend to respond quickly to those unusual and eye-catching advertisements. Advertisements I posted above deliver the messages companies created and want consumers to receive very easily within a few seconds. I would like to say “marketing=creativity”.

image taken from http://flyerscoupons.ca/new-mcdonalds-coupons-mail-today-march-15-2010-upto-36-00-savings-canada-843

Just a few days after I came to Canada for the first time, I had to go to McDonald’s because McDonald’s was the only place around that area. I ordered a Big-Mac meal, and the cashier told me the total would be $7.xx. I was so shocked because it was more expensive than any other Big-Macs in different countries. Since then, I have avoided going to McDonald’s for meals since there are other substitutes with a better price.

I also acknowledged that McDonald’s food was unhealthy as well as other people believe. Not only the price, but also the quality made me to hesitate before consuming McDonald’s meals. However, my attitude towards McDonald’s has shaken hard after I received the discounted coupons a month ago. Moreover, I got so tempted to have lunch at McDonald’s since it was only $4.49 for lunch. As a student, managing my budget has always been an important issue, so the discounted coupons really drew my attention. Eventually, I also got hooked by their marketing tactic and had Big-Mac again.

Last week, students got free coffee from McDonald’s. Of course, I had not only free coffee but also other menus as their marketing team intended. I believe McDonald’s aggressive promotional pricing and tactic are very effective and efficient for students because they understand students and their needs. I just got McDonald’s coupon for this month. You know what? I am going to McDonald’s again.

image taken from http://www.viralblog.com/mobile-and-iphone/ipad-2-compared-to-its-competition/

Thinner, lighter, two cameras for FaceTime, HD video recording, and more features, iPad 2 will be in the market on Mar, 11^th in the states and Mar, 25^th in Canada with listed features above. It is surprising that the price of the new iPad is going to start at $499, which was the same price for the first generation iPad.

Typically, Apple has been well known for skimming pricing (a.k.a. market-plus pricing), which is setting a relatively high price and reducing its price as competition increases. However, they adopted different strategy this time, which really surprised me. They could have charged a premium price with advanced features; however, they applied apply penetrating pricing (a.k.a. market-minus pricing), which is setting a low price to attract new customers and grow market share, for the latest technology.

It is safe to say that Samsung Galaxy Tab is the only competitor in the tablet market. Galaxy Tab is sold at $599 which is $100 more expensive than the iPad 2. By offering a high-tech product with a nominal price, Apple is able to get rid of the last competitor and take the whole market share. This is the Apple’s strategy behind the price.

Samsung must be astonished by not only the new features but also the price of iPad 2. Samsung has to step up to secure its market share, and it will definitely be the challenging task. Without doubt, Apple takes the big lead by introducing the new iPad. I would really love to see how Samsung reacts.

http://business.financialpost.com/2011/02/24/fp-marketing-coca-cola-pairs-with-daft-punk/ 

This article is talking about that French electronica duo Daft Punk and Coca-Cola Ltd. were agreed to release a set of limited edition Coke bottles.

According to the article, “The bottles, which resemble the artists’ metallic helmets, are marketed under the name Daft Punk x Coca-Cola Club Coke and will be available for a limited time at selected night clubs and in a box set sold at the Paris boutique, Collette.”

As soon as I saw this commercial, I thought of co-branding and packaging. This unique Coca-Cola bottle is definitely drawing people’s attention and stimulating their curiosity, and the design and colors of the bottle represent the electronic music and the atmosphere of a club really well. Both Daft Punk and Coca-Cola Ltd. benefit from releasing a special bottle. People who want to purchase these bottles or who love Daft Punk’s music may be coming to a club, and Daft Punk can share his music with more listeners including those who purchase the Coke bottles, and Coca-Cola Ltd. can advertise its products effectively and efficiently. Of course, Coca-Cola might not generate a pretty large amount of revenue, but it is a great chance to project a young, exciting, and energetic image to public. I believe this is such a great example of co-branding and packaging.

The retail business is all about the portrayal of image. What is the right image to portray? Well, it depends on the demographics of the consumers. Old Navy, Wal-Mart and Target all have similar consumer base, people looking for the highest quality at the most nominal price. Old Navy used to rule this market, but recently Wal-Mart and Target have moved into its territory and took a big chunk of the market and now are becoming a dominating force. In a situation like this, Old Navy needs a new image to distinguish itself and evolve into a new territory in terms of the demographics of the market. Old Navy has to take decisive action to project a revolutionized image to survive in this competitive industry.

Toyota and Lexus are prime examples where the image of a brand name is all it takes to sell products at a premium. Toyota makes cars for the common working class and Lexus is a subsidiary of Toyota that makes luxury cars for the upper class. However, what most people do not realize is that the premium is the cost to buy the image of the Lexus brand name and not the superior engineering of the parts that make the luxury cars. Yet, people are so naturally inclined to think that price defines quality, and that the quantity of the premium is directly proportionate to the quantity of higher quality. Old Navy has to take advantage of this marketing strategy and portray a modern image that can relate to the current trend in fashion and charge a premium.

Evolution is the key to survival in business and in life. When businesses fail to adapt and innovate, it has already failed and is only a matter of time before retailers like Wal-Mart and Target take the lead. It is not the product that sells itself; it is the marketing that sells the product.

Image taken from www.insidesocal.com/bargain/2007/08/ (Old Navy)http://lexusenthusiast.com/2007/11/21/lexus-europe-hopes-to-triple-sales-by-2010/ (Lexus)

Companies are spending enormous effort and time to build a long-term relationship with frequent customers. Issuing membership cards, designing special deals, and offering tailored customer services are attempts to earn loyalty from those consumers. All corporations strongly believe that achieved consumer loyalty is a key factor to success in the fluctuating economy.

During the recession period of 2008-2010, Lululemon proved that the consumer loyalty was the strongest driving power to let the business actually grow in a competitive market whereas other competitors were having a hard time dealing with the decrease in sales. Also, many corporations which retained consumer loyalty such as Mercedez-Benz and Apple could survive during the economic downturn and bounced back relatively quicker than other ordinary businesses such as GM and Sony. Those products are not even necessary goods, and people have to pay premium price to get those luxury goods. However, loyal customers showed their willingness to pay extra dollars regardless of the economic condition.

In this unpredictable economy, it is crucial for companies to design strategies to increase and maintain customer loyalty in that companies are able to establish a stable business and plan precisely for the future.

Image taken from http://www.searchfuel.com/2010/04/can-social-media-bridge-the-brand-consumer-gap/