Changing the Distribution Channels

After reading Clayton’s post,I started thinking more about distribution channels and began to apply it to the food system. As Clayton says, nowadays, a product that a consumer has purchased has most likely traveled for a great distance, constantly being traded off through multiple different means of transportation. Clearly, a complex distribution channel can build up a high mark-up for the final consumer, as well as increase the amount of pollution in the environment.

Something that interests me is trying to promote the purchase of local food, and improve the ability of obtaining it. Currently, food that is being transported from large distances “emits a variety of toxic chemicals that contribute to air pollution, acid rain, and climate change.” On the other side, local food distribution systems reduce the environmental impact and promote local farmer’s, in turn, adding value to the economy in the city one lives in. By also buying locally, less money has to be put in to damaging our health and using preservatives to make sure that the produce stays appealing until it reaches the final consumer.

I believe that there is a lot of work that needs to be done in tweaking the distribution channels, not only for food, but to make sure that we are promoting local producers and removing complex distribution systems.

Site quoted: http://www.getlocalbc.org/

 

What makes a brand extension successful?

After I read Sean’s post, and discussing brand extensions in class, I started thinking more about what other companies have done and their extensions. Going online and researching brand extensions that have failed or have been successful can be quite humorous, but come down to one main variable – is the brand extension relevant? For example, Harley Davidson’s cake decorating kit has absolutely nothing to do with their company or their customers. As stated earlier in the Marketing textbook, Harley Davidson was even trying to reposition itself and target younger people, specifically women who want to get away from their daily routine. A cake decorating kit would be everything but getting away from real life. As well, Sean’s post included an unsuccessful extension of BIC pens logo onto underwear. After doing some research, I found that they also made a BIC perfume.

Looking from an outside perspective, it is clear that all the extensions that were successful such as the Mr. Clean car wash, are related to their original product. If you think about it, magic erasers are used to clean say the bathroom and make sure that surfaces are spotless. A car wash also makes sure that the surface of your car is spotless. There is a similarity in what this product is used for in both cases. However, in the unsuccessful extensions, such as the Cheetos lip balm, the extension does not have a similar use compared to the first one. We eat Cheetos as an unhealthy snack when we have a craving. We use lip balm to prevent our lips from being dry. These are two very different uses. As you can see, brand extensions must be relevant in order to be successful.

 

Walmart’s Lack of Societal Marketing and Ethics

After discussing sustainable marketing principles and ethics today in class, the textbook article about Walmart got me thinking. When I first read the article, my hatred towards the company lessened as I read all of the initiatives they were taking on. However, after reading some blogs against Walmart, I began to see both sides. Is Walmart really an eco-nanny as the textbook article suggests?

I have to say that Walmart has had great innovative marketing, customer-value marketing, and consumer-oriented marketing. It continually finds new ways to make sure it can find news ways of becoming sustainable, creates value for the customers with low cost items for customers, as well as it satisfies the needs of consumers wanting a cheap and convenient place to buy groceries and errands. However, Walmart fails to make marketing decisions considering the societal long-run interests.  It is solely focusing on immediate satisfaction, but does not take into consideration the disadvantages the consumers and society will face in the long run.

With Walmart aimed at expanding into “food deserts”, in other words, neighbourhoods that have less income, this could take away jobs for all the workers and lower wages, most likely causing poverty to get worse in these areas. As well, data from Ohio states that “$943 is the average annual cost to taxpayers of providing Medicaid, food stamps, and cash assistance for each Walmart employee,” since Walmart does not provide any benefits.

Americans are viewing Walmart more favourable for its sustainable endeavours, however, the company expects 30 million metric tons of cumulative growth in emissions by 2015.” With Walmart expanding square feet of store space worldwide from 36-39 million by the end of 2012, this creates growing concern for the future needs of our environment. This brings light to my next question- is this ethical of Walmart to entice consumers in with environmentally friendly endeavors, yet create problems for the future of its customers?

http://www.globalexchange.org/sweatfree/walmart/racetobottom

http://grist.org/business-technology/2011-11-17-walmarts-progress-on-renewables-has-been-very-slow/

Sephora, a “green” marketing scam?

http://www.msnbc.msn.com/id/30334853/ns/business-retail/t/four-biggest-green-marketing-scams/#.TxesHSNWrR1

After reading the “green” marketing scams on this blog, I couldn’t believe that Sephora tried to go along with the green movement and created a natural line of makeup that is filled with harmful chemicals. It marketed that more than 1,400 of their products were natural under the “Naturally Sephora” seal. One vitamin infused lip gloss ranked six at the Cosmetic Database, almost putting it into the “high hazard” level. By marketing that these products are natural, sales were likely to go up for consumers that were environmentally-conscious, or even consumers who didn’t want to put harmful chemicals on their face. Making extra money on something that hasn’t been done is definitely a marketing scam.

The problem in this case is that there is no clear criteria for products defined as natural, and Sephora does say this. However, if your products contain chemicals, customers should be aware of this. Sephora should not take advantage of their customers like this and at least point out that these products are not as natural as they think they are.

 

Jasmine Wing: Introduction

My name is Jasmine Wing, and as like a lot of us, I am a second year Sauder student. I am taking Marketing as it is a prerequisite as well I have always wanted to learn more about Marketing and not just about sales, which is what first comes to my mind. As a student, my only experiences in Marketing have been in highschool and first year university  trying to promote events and create posters or certain poster campaigns to encourage students to go to events. Other than that, I do not have any other marketing experience. One of my favourite ads right now would have to be the McDonald’s christmas ad where the couple move into their new house. I love that song- Big Black Car. I don’t like McDonald’s whatsoever but that commercial somehow swayed me. Something interesting about me is that I love to travel and meet people from around the world! Sometimes the world feels so small and it is refreshing to see what else is out there!

 

Jasmine