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