International events can make countries rich. In fact, not being chosen to compete in the World Cup can be the biggest financial opportunity loss a country can face. For example, Portugal would have lost almost $269 million for national industries like airlines, retail, marketing, public relations, and restaurants and bars, if it’s national soccer team lost it’s World Cup qualification. 

 Such events allow countries to attract people from all over the world, which mainly helps the countries’ economies. It is interesting to see how companies like Coca-Cola, Adidas, and Nike are all very interdependent on the success of international events like the World Cup. I feel that the dependence on the well-being of such event is justifiable, regardless of how sport-lovers criticize this idea by pointing out that the event should be hosted for the pure love of global interaction and the art of sports.

In a response to the critics, it is important to point out that in order to make such event happen, many large companies have to be sponsors of the event. This allows the event to happen at all, which then allows the global interaction to happen and the art of sports to be demonstrated. Although it might be extreme to say that such event should be hosted for the sole reason of making money, I feel that it is a justifiable reason.

Picture Source: http://3.bp.blogspot.com/_VKnlNvwbGMM/TBSj0keSE0I/AAAAAAAABio/WspSWC2ebTk/s400/WC2.jpg

Article Source: http://qz.com/147523/missing-the-world-cup-can-cost-a-country-hundreds-of-millions-of-dollars/

Is Facebook having an anxiety attack? Is it being just way too competitive?

Ever since Snapchat launched, Facebook has made numerous attempts to buy it out. It is understandable that the social media mogul Facebook is somewhat irritated by the sudden competition. However, that might not justify it attempting to control the entire app market.

   As apps are becoming more and more popular, Facebook recently encountered many competitions. Snapchat, supposedly having turned down an all cash offer from Facebook, seems to be the biggest one. Although trying to buy a competitor company may seem like a good idea for a large company like Facebook, being anxious and trying to make unsuccessful deals constantly could reflect poorly on the company.

In addition to the buy-out attempt, Facebook recently created it’s own photo-involving app called Poke, which received many negative views as being too similar to Snapchat. As a social networking company, Facebook may need to chill down on the chasing. Personally, the fact that Facebook seems to be intolerant of any type of competition seem really catty. Even from a business perspective, this could possibly affect potential partnership opportunities with, in this case, Snapchat.

Instead of trying to buy-out a company, I think Facebook would do much better in updating or creating an innovative social networking app.

Picture Source: http://images.socialnewsdaily.com/wp-content/uploads/2013/10/Snapchat-Buyout-From-Facebook-Rejected.jpg

Article Source: http://www.businessweek.com/articles/2013-11-13/snapchats-3-billion-rejection-and-the-great-facebook-unbundling

The main product theme for McDonald’s (MCD) is timeless; it never changes. But it’s menu is tweaked here and there internationally throughout.

 The chain has apparently moved on to making pork McNuggets in China. The source says that in response to some Chinese locals being more accustomed to the taste of pork or local meat, McDonald’s has added a new option to its menu. This customized addition supposedly would serve as a more profitable alternative to the traditional McNuggets. The new addition, Spicy Pork McBites, seems like a potentially successful marketing strategy. However, personally, it seems a bit too unnecessary.

     Although it might seem like the company is very accommodating in that it’s trying to satisfy customers all over the world, I think it is also important to realize that it is a fast-food chain restaurant. When people purchase from McDonald’s, they most likely are not looking for a AAA graded beef patty or fresh olive-oil deep fry batter. McDonald’s is taken for what it is: a place to eat fast food. In regarding every different type of ingredient preferences of different cultures globally, McDonald’s might be losing it’s grip that it might be more profitable to re-design it’s package to be more appealing, than trying to change the meat in it’s products’ 3-second taste bliss.

Perhaps, this strategy might be more suitable for countries like India, where the population is largely religious and simply don’t consume beef. The market demand in India for veggie burgers is huge, whereas the market demand for pork nuggets in China is relatively small.

Picture Source: http://www.thebeijinger.com/sites/default/files/u265699/rsz_mcbites3_1.jpg

Article Source: http://qz.com/147913/mcdonalds-new-china-tactic-is-catering-to-the-nations-voracious-love-of-pork/

Apple (AAPL) seems to have a generally positive sales from the newly launched iPhone 5C. But it can’t be ignored that there is an inventory build-up for the product.

The iPhone 5C, with it’s plastic backing, is thought of as the ‘cheaper’ model of the famous iPhone. With the launch of the counterpart iPhone 5S, the price of the iPhone 5C was expected to be relatively cheaper. However, in countries like India, the price for the phone is still just too high. Despite the marketing strategy to be more affordable to more populations throughout the world, iPhone 5C still seems to be an expensive product to many countries.

For example, the price for a 16GB iPhone 5C in India is RS 41,900, whereas the price for a 16GB iPhone 5S is RS 53,500. This hints that the price difference between the two models is not enough to be an incentive for people to buy the iPhone 5C. Personally, it seems logical that the price of the iPhone 5C is much cheaper than the iPhone 5S. After all, the iPhone 5C is playing the role of a ‘subsitute’ from the same company, in hopes to penetrate a bigger customer context.

In this case, I feel like Apple is doing more harm to itself in terms of sales. As the inventory build-up shows, launching two products with no significant price difference will only harm the overall marketing technique than benefit it.

Picture Source: http://static4.businessinsider.com/image/522f5a116da8114a184b3994/apples-new-iphone-5c-is-plastic-beautifully-unapologetically-plastic.jpg

Article Source: http://articles.timesofindia.indiatimes.com/2013-11-14/hardware/44073068_1_iphone-4s-iphone-5s-gartner

Boutique fitness clubs, knows for their high-end style work out lessons and gym equipments, seem to have added one more luxury to their offerings. In cities like Manhattan, these fitness centres now sell expensive retail and designer clothing, as well as jewellery and accessories. In other words, this new practice allows any gym user to purchase items like formal dresses and elegant leggings en route to the gym.

At first glance, this idea might seem unfitting. A $225 Swarovski crystal-encrusted iPhone case at a fitness centre?  A $88 leggings at a gym? But with a second glance, it becomes visible that this might actually be a great marketing idea.

Many of the people who visit such gyms do so with a goal in their heads: to sculpt their bodies. And as they get close to their goals, they may need or want a reward of some kind. If that means buying a $88 leggings in one size smaller, the gym just made another sale.

The idea of having an expensive ‘reward’ store in a gym may actually be an extensively clever marketing strategy. Furthermore, this new business strategy may actually do some societal good. Having a nice, elegant dress hang near the gym window will do best in motivating people to gym harder.

Picture Source: http://www.businessweek.com/articles/2012-02-29/upscale-gyms-are-places-to-shop-not-just-sweat

Article Source: http://www.businessweek.com/articles/2012-02-29/upscale-gyms-are-places-to-shop-not-just-sweat

Getting children to watch Disney movies isn’t very hard. Getting them to eat Disney fruits won’t be hard either.

 Recently, retail stores like Walmart (WMT) and Target (TGT) have started to put Disney character images on produces, to attract more children customers. With the generic idea that children like junk food over healthy produce, this idea seems genius. From the market point of view, this not only allow for more customer penetrations, but also higher sales. From the societal perspective, this allows more children to be fed healthier options, instead of the prominent processed goods.

 Personally, if there is any area for recommendations, it might make even bigger hit in the market if retails were able to match the Disney characters to the type of produce they endorse. For example, Snow White princess could be linked with apples, while Jungle Book gets linked with bananas. Although not all of Disney character can be matched by the themes, even having the characters’ colour match the produce they endorse could attract more eyes.

This overall idea seems like another ‘painkiller’ business strategy. Not only does it improve revenue in perspective of the market, but also the amount of produce children will consume.

Picture Source: http://www.businessweek.com/articles/2013-10-18/selling-spider-man-apples-and-mickey-mouse-grapes-by-the-billions

Article Source: http://www.businessweek.com/articles/2013-10-18/selling-spider-man-apples-and-mickey-mouse-grapes-by-the-billions

We often try to learn from our mistakes. Sizzler clear doesn’t.

With $2 million in sales per year, which is under the general eatery average sales of $2.5 million, Sizzler recently came up with a ‘new’ strategy to market its food: going back to its promotional menu of the 1990s. The $7.99 meal apparently doesn’t aim to be a hit for the company, but actually be a trigger for loyal consumers to add more food on the side to the meal. Also, the company hopes to re-attract consumers who haven’t been to the chain for many years.

This strategy is questionable. With casual-dining tradition steadily declining according to Forbes, Sizzler may just need an entirely new marketing strategy after all. Although it is understood that as a fast food restaurant Sizzler has limited options to renovate its franchise, it could might as well take that risk than repeating a marketing strategy it used a decade ago.

Sure, Sizzler may gain back the loyal customers it once had. But what about the new health-aware generation? It is safe to say that by cutting back on re-marketing and investing in improving everything from food on the menu to interior designs of each franchise store, Sizzler may get a better shot at this.

Sources:

http://www.businessweek.com/articles/2013-10-03/sizzler-tries-deep-discount-to-bring-back-the-1990s

Figure:

http://offthestripdining.blogspot.ca/2008/09/95-sizzler00.html

The luxury car company, Mercedes-Benz, has announced that it will be marketing an affordable car for less-affluent buyers. The CLA Sedan (price starts at just $31,000), which is marketed straight towards more middle-class populace, is set to be a hit in the general automobile market.

Although the new marketing strategy of being inclusive to less-affluent populace is hailed positively in perspective of simply increasing sales, I believe that this can really diminish the company’s image. Much similar to other luxury brands, Mercedes-Benz is a brand of exclusivity. As much as the pricey automobiles it makes are a barrier for the company to broaden its target audience, they are also the crucial factor of the company’s ability to maintain a stable relationship with its core high-class customers. In producing less-costly CLA250, Mercedes-Benz is risking diminishing the desirability and significance its cars otherwise possess. Ultimately, Mercedes-Benz may not be facing the challenge of successfully launching it’s new affordable model, but facing the challenge of maintaining it’s majesty as one of the most luxurious car brand of all times.

Sources:

http://www.businessweek.com/articles/2013-10-02/mercedes-cla-sedan-with-budget-price-outsells-high-end-models-in-u-dot-s-dot-debut

Figure 1:

http://www.caranddriver.com/news/2014-mercedes-benz-cla250-photos-and-info-news

Lamborghini, Volkswagen’s ultra-fined brand, is stated to have branched it’s way into India, enabling new dealership in New Delhi this week. At first glance, this seems like a step-up for the company, given the high density of population in the country as well as the fast-growing number of wealthy individuals in the populace. Is it, really?

India’s roads, which are of no condition to have ultra-powered Italian      sports cars to be driven on. Additionally, the doubling up of taxes and insurances on the luxurious automobiles can offset marketing efforts, as the cars will be priced way higher than expected.

Lamborghini should have considered making slight adjustments to its models, if it was to bring in its cars to India. The ultra low body kit and the raving horsepower is simply not adaptable to India’s road conditions. How about the price? The price of $360K is simply too high if doubled up with taxes. To address these inconveniences, Lamborghini should have invested more into making appropriate cars for its target market in India. The company hopes that the fast-developing country would reshape the architecture of its roads and economical politics quickly enough for its product to hit big. But then again, that would take longer time to achieve than if Lamborghini developed a whole new India-appropriate automobile.

Sources:

http://www.businessweek.com/articles/2013-09-23/lamborghini-zooms-into-india-over-potholes

Figure 1:

http://www.theguardian.com/business/2013/sep/24/lamborghini-india-rich-new-delhi-showroom

     800,000 children carrying machetes walk approximately 200 miles every day to do one of the world’s sweetest jobs; harvesting cocoa pods to export as ingredient of delicious chocolate. With over $6 billion in annual revenues, Hershey may have little thought to give to its’ violation of business ethics. But even the little thought presented seems just as insincere; “Employees are our most valuable asset,” a CEO says. In accordance to the flip side of the business ethics, Hershey also finds the short-term shareholders much more ‘valuable’ than long term stakeholders. Like Edward Freeman stated, ‘a corporate that doesn’t pay attention to issues of corporate responsibility of sustainability of its affects on civil society; that’s a corporate that is in decline,’ the idea that a sweet corporation such as Hershey absolutely does not respect local laws and customs ring a bell to the ethics of the business world.

No argument could be made to reconcile the violation of business ethics, made by Hershey. I believe that as a leader in a type of industry, it is important for Hershey to abide by the rules and readily present exemplary operations honoring the Stakeholder Theory as well as business ethics.

Sources:   http://www.bbc.co.uk/news/world-africa-15681986

http://management.fortune.cnn.com/2012/11/16/hershey-child-labor-suit/