Month: February 2011

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/