Justine Bearss' COMM101 Blog

External Blog: How to Advertise Your Start Up Effectively

The author of the attached blog post, Lorna Van Straaten describes nine ways in which a start up company can effectively advertise their brand name and products.  These steps include, where and how to target customer segment, determine and clearly advertise points of difference and parity, and consistently conveying your value proposition to consumers.  I agree that all of marketing strategies described in the blog post are essential when advertising a start up company. For example, clearly establishing points of difference are extremely important because they show consumers how your company differs from competitors, giving you a competitive advantage.  This will increase incentive to purchase because customers will be aware that your company has something different and unique to offer. In addition, determining a specific customer segment is a crucial aspect to starting a business. You must ensure that your product solves the needs of each consumer, and that it is clearly conveyed in your marketing strategy and value proposition. Then, consider the most effective way to advertise to the selected group of consumers, through social media, or magazines, or television. Without the use of the proper advertising channel, the targeted customer segment may not be aware of the product or company and therefore, would not purchase their goods.  In reading the attached blog post, it is evident that customer relations, establishing and conveying a value proposition, and choosing the correct channels to target customer segments are the most important aspects to effectively advertising a start up company.

Can fair trade boutique expand without alienating customers?

I believe that if the United Nations was fully funded, it would still be necessary to have programs such as the Arc or social enterprise. Although the goal of the UN is primarily the same as these programs, it can be difficult to target smaller groups due to the immense population that theUN must focus on. While the arc initiative and social enterprise are able to focus on social needs on a much smaller scale and give attention to those that may be overlooked.  For example, as stated in the above article, the Arc Initiative travelled to Addis Ababa in Etiopia where they created a close relationship with a local business owner, Salem Kassahun. They analyzed current sales and supply issues to help create an appropriate expansion plan for the indigenous crafts business. This plan helped Salem Kassahun gain 15 more employees, allowing her to decrease the amount of backordered products and improve her ability to respond to the growing demand. This targeted experience allowed the Arc and Salem Kassahun to develop a business expansion plan that correctly fitted the needs of the owner. I believe that if the United Nations were orchestrating this, it may not have been as effective or even taken place. In conclusion, the Arc Initiative and Social Entreprise would still be needed if the UN was fully funded, due to their ability to focus on small scale social issues.

NHL Jersey Ads ‘Coming,’ Says League Exec

It has been reported that the National Hockey League is considering placing advertisements on every jersey. This has already been implemented for practice jerseys in the NFL and is being considered for game jerseys in the NBA. I believe that jersey sponsorship is an excellent and innovative way to advertise goods and services to potential consumers.  Millions of hockey fans around the world will see these advertisements on the jerseys of their favourite teams. Each brand will become more well known, and possibly increase consumer incentive to purchase their products. Also, it will give each sponsor a very unique and prestigious image.  Personally, if I were to see that a certain company was sponsoring my favourite sports team, I would automatically see them as a popular and trendy brand. In addition, jersey sponsorship will bring benefits to the various teams in the NHL and the overall league, specifically on the financial side. Companies will be paying each team to advertise their products and brand name, increasing the revenue for the teams and league.

 In conclusion, jersey sponsorship in the NHL is a very unique and innovative way of advertising that will be beneficial for the sponsors, consumers and the league.

Bonnie Chen’s Blog

http://withasideofthriftiness.com/mcdonalds-is-introducing-a-breakfast-1-menu/

Bonnie Chen described how McDonalds is currently focusing on promoting and improving sales in the breakfast segment of the company due to the rapid growth in this industry.  Like Bonnie, I agree that this is an excellent plan for McDonalds for many reasons. Firstly, society is full of individuals with busy schedules, and many may not have the time to make an appropriate breakfast to keep them energized throughout day. Therefore, McDonald’s breakfast food would be a great alternative for these people; it is served quickly and at extremely low prices. It was stated in Bonnie’s post how other fast-food chains are also beginning to focus on breakfast food, however I believe that the McDonald’s brand is strong enough to set them apart from competitors.  As stated above, McDonald’s is much more affordable than it’s competitors, such as Starbucks or Tim Hortons. In addition, I know from experience that McDonald’s is able to serve it’s customers much quicker than its competitors, because you don’t have to wait in line for the barista to make frappucinos or lattes for each customer ahead of you. Finally, the McDonald’s brand is so widely known with it’s Egg McMuffins and McCafes, that it already has millions of loyal customers who would purchase their breakfast food over their competitors. In conclusion, I think that expanding their breakfast market will contribute to the overall growth of the McDonald’s corporation.

Rogers offers U.S. wireless roaming for $5 a day

The above article describes how Rogers Communications Ltd. is now offering customers cheaper rates on phone calls, text messages and Internet browsing when travelling to the United States. This new “Roam Like Home” plan will only cost customers $5 per day, which is substantially cheaper than those previously offered by Rogers and other service providers.  The development of this plan will bring many benefits to Rogers, such as the development of  a point of difference, setting itself apart from it’s competitors. This will attract a massive number of new customers, while also expanding Rogers’ customer segment to frequent travellers and various corporations. Based on experience, phone usage is essential when travelling, whether it be for directions, entertainment or communication. These expenses can add up very quickly, forcing customers to limit their usage. For this reason, Rogers’ “Roam like Home” plan will be extremely attractive to current and potential customers. In addition, a large portion of people who frequently travel to the United States are doing so for business reasons, and therefore, their roaming expenses are covered by their respective companies. Even though it is more of a concern for the companies, they have the opportunity to switch all employees to Rogers to decrease their overall travel costs. It was stated in the article that in the past year, Rogers struggled to generate their projected profits, which put a large strain on company expenditure. The “Roam like Home” plan will attract new customers and in turn, help Rogers produce a larger profit, relieving the financial strain that was previously set on the company.

First Nation Chiefs to Stage Site C Showdown

BC Hydro is planning on constructing a dam and a 1 100 watt hydroelectric generator in the Peace River, called Site C. This will create more sustainable and environmentally friendly energy for the province of British Columbia.  However, BC Hydro neglected to consider the effects that this project will have on the First Nations groups of the Peace River Valley, one of the key stakeholders in this industry. The local First Nations groups are extremely concerned about the safety of their land that is used for hunting, fishing, and ceremonial practices, because the construction of this dam will cause eighty three kilometers of the Peace River Valley to flood. This is an example of the industry forces that have affected their business model because as stated above, one of the main stakeholders in site C are the local First Nations people. Therefore, they should be able to voice their opinions or concerns they may have regarding the development of this project, and they must be taken into account.

On the other hand, it is understandable how BC Hydro neglected to consider the First Nations due to the appeal of market forces, the factor that most heavily influence their business plan. For instance, BC’s growing population is forcing the province to look into alternative methods of producing energy to match the current and more importantly, the future demand of the citizens. Also, this addition of clean and renewable energy will help the province become more environmentally friendly, thus improving their sustainability and quality of life. The growing concern for the environment is forcing the idea of sustainability to become more and more attractive to the consumer. This will cause the demand for hydroelectric energy to increase, and eventually the province will become more reliant on this new form of energy; thus bringing great economic prosperity to the province of British Columbia.

When creating a business model, a company must consider all external factors that will, in one way or another, affect it’s development.

Keurig’s Coffee Supremacy Challenged by Canadian Firm

The above article states how the single-serve coffee market is becoming increasingly competitive and challenging, specifically for the well-known company of Keurig . Keurig’s first coffee maker was innovative, convenient, and loved by many coffee drinkers, causing their sales to skyrocket. However, their extremely high profit was mostly due to the sale of K-cups, the coffee pods that allow consumers to create different drinks when using the machine. Eventually, competitors began to take notice and created their own coffee pods, which were cheaper and could all function in the Keurig machine.  Therefore, in order to take control of the self-serve coffee market, Keurig created a new point of difference to draw consumers back to their products. They designed a new model which is only capable of reading the ultraviolet ink of the K-cup.  If consumers wanted to purchase the new model, they would only be able to use K-cups to make their coffee, allowing Keurig to generate a larger profit. However, this would cause a huge inconvenience to consumers because they would only be allowed to purchase one single brand, even if they desired otherwise. Also, Keurig is currently facing a lawsuit for “anti-competitive behaviour” because they are preventing competitors from making a profit and contributing to the self-serve coffee market. As stated in the article, Club Coffee, a Canadian-made self-serve coffee company discovered the use of ultraviolet ink and distributed that information to all of Keurig’s other competitors.  This made Keurigs new point of difference completely irrelevant, and transformed it into a point of parity that is shared between it’s competitors. If Keurig wants to keep it’s profits constant and be number one in the self-serve coffee market, they must come up with a new value proposition, one that is fair to it’s competitors and consumers, while also making them unique.

Ford Adds 1,000 jobs at retooled Oakville plant

The above article describes how Ford is adding 1,000 new jobs to their production plant in Oakville, Ontario. These new positions are available because Ford is planning on redesigning the Edge crossover, and eventually distributing them within the global market. This new goal will ultimately force Ford to rethink and remodel their operations strategy.

The addition of these new jobs will be very beneficial to Ford and it’s employees for several reasons.  First of all, many of the recently laid off employees from two other Ford plants in Ontario, will have the chance to continue working with the same company, while also giving a great opportunity to those who are new to Ford and are currently unemployed. Eventually, Ford wants to distribute the new Edge to 100 different countries, including those that drive on the right-hand side, causing them to rethink the operations strategy within their company. In order to deliver the Edge to more countries, Ford will have the improve the efficiency of the transformation process, in which they design and produce each vehicle. This can be a difficult task for Ford as there are a few factors that can lead to a decrease in productivity such as, training the new employees, and redesigning the new model of the Edge, especially for the right-hand side drivers of the world.  However, with the addition of at least 1,000 new employees, Ford will hopefully reach their goal of redesigning and expanding the market for the Edge crossover.

Ethics is an extremely important concept in the business world, however it is often overlooked. This neglect has caused thousands of small-scale issues, while also aided in the development of multibillion-dollar Ponzi schemes. As explained in “The Slippery Slope of Getting Away With the Small Stuff” by Bryan Borzykowski, many employers do not sufficiently outline the ethics standards within their company. This creates an environment in which employees can commit unethical acts. I believe that in order to help reduce the number of ethical indiscretions that a company or individual engages in, the managerial staff must outline and enforce the ethical standards with each employee.

In addition, reading the above article has forced me to take a closer look at Milton Friedman’s description of the “single social responsibility of a business – use it’s resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.” I agree with the preceding statement, however based on my readings and class discussions, businessmen are much more focused on increasing their profits, rather than being as equally concerned with the latter part of the quotation. A company must always act ethically and fairly with their stakeholders to ensure that they are truly fulfilling their social responsibility.

References:

Borzykowski, Bryan. “The Slippery Slope of Getting Away with Small Stuff.” BBC Capital. BBC, 7 Aug. 2014. Web. 10 Sept. 2014. <http://www.bbc.com/capital/story/20140806-the-slippery-slope>.

Friedman, Milton. “The Social Responsibility of Business Is to Increase Its Profits.” Corporate Ethics and Corporate Governance. Springer, 2007. 173-178. ProQuest ebrary.

Classmate’s Blogs that I commented on:

https://blogs.ubc.ca/juneong/2014/09/09/cruelty-free-products-in-china-ethics/#comment-2

https://blogs.ubc.ca/kimlin/2014/09/10/how-not-to-run-a-company/#comment-2