telegraph.co.uk

We all desire high-end, top-quality products, and according to Mike Templeman’s article in YFS Magazine, the luxury market is expanding rapidly across the globe. Templeman explains that the success of a company entering the luxury market is all about branding strategy: what promise the brand makes to the customer and how customers perceive the brand. Templeman highlights several techniques that luxury brands utilize to create the right image, including high pricing, specific target marketing, select availability, and brand legacy.

With luxury brands, the most important aspect of branding seems to involve creating a customer perception of exclusivity and customization. In the luxury market, it is not only the quality of the product that draws consumers in, but also the desire to be one of the elite customers of the brand. The value placed on exclusivity, and the Veblen good “snob effect” is what keeps the prices astronomically high.

Branding strategies are tools used to achieve a desired psychological impact on the customer; the focus is on how the product is represented in the customer’s mind, and not so much its objective quality. While brands like Chanel are certainly of superior quality, it is the history and exclusivity of the brand name that makes it such an internationally recognized and desired label.

http://yfsmagazine.com/2014/01/23/luxury-marketing-create-luxury-market-brand-strategy/

thestar.com

In his blog “Will This be the Death of a Canadian Icon?” Andrew Killas argues that the proposed acquisition of Tim Horton’s by Burger King will have adverse consequences for the Canadian brand image that the company has meticulously developed. It is true that Tim Horton’s advertising campaigns, which focus on hockey and all other things Canadian, may no longer ring true with consumers after an American takeover and loyalties may realign. However, if we look to the example of the 2007 takeover of the Hudson’s Bay Company by American billionaire Jerry Zucker, there is reason to believe that Tim Horton’s can manage the fallout.

At the time of the Hudson’s Bay acquisition, there was considerable debate about the loss of this Canadian icon and how this would affect Canadians loyalty to the HBC store. However, the American ownership does not seem to have alienated Canadians, who continue to shop at the new and improved version of Canada’s oldest department store. In fact, the company’s retail operations are forecasting earnings of $0.35 per share in 2014 and $0.95 per share in 2015. The upshot: most Canadians don’t seem to care who owns the Hudson’s Bay store as long as their shopping needs are met.

So what can Tim Horton’s learn from the Hudson’s Bay experience? I think the key idea here is that Canadians will in all likelihood ignore Burger King’s acquisition of their favourite donut and coffee store, providing the store continues to deliver good quality products at a reasonable price.

Top Stock Picks for November

http://www.forbes.com/2006/02/28/zucker-billionaire-canada-cx_cn_0228autofacescan02.html

cloudfront.net: Sheryl Sandberg, Chief Operating Officer of Facebook as of September 2014

In her blog “#1 Rule for giving advice to women”, celebrated entrepreneurial blogger Penelope Trunk discusses the struggle that all working women face when trying to balance a successful career and the demands of being an involved, present mother. Trunk makes the insightful observation that businesswomen who claim to be able to ‘do it all’ without making any sacrifices in their career or family life are being dishonest. A real working mother’s life is filled with numerous decisions about which compromises to make and in which areas to make them. Trunk also mentions the inevitable guilt all women feel in making decisions that put their careers before their families.

As I am gathering the tools and knowledge at Sauder I need to have my own successful career in the business world, I recognize that as a woman, I too will be faced with these kinds of decisions later in my life. While it’s great that the career opportunities for women have broadened so much over the decades, it’s also naïve to overlook the sense of fulfillment that comes from being a mother and having a happy family. As Trunk says, “you have to give up something to get something”; the hard part is finding the perfect ratio.

hotelsoftherichandfamous.com

I expect that vacationing at the Four Seasons Hotel in Maui is pretty much as good as it gets. From the moment you arrive at the hotel, you get the impression that everyone at the hotel really wants you to have a great time. The warm hand towels and pineapple at the reception desk are the first signs that this is one vacation that you really won’t want to end. The staff literally never “slipup” and always seem eager to make your day a little bit better.

In the article “Isadore Sharp: We Hire for Attitude”, the Four Seasons hotel founder is quoted as saying that the front-line staff at the Four Seasons Hotel “represent our product to our customers. In the most realistic sense, they are the product.” He further explained that marketing research conducted by the hotel chain found that the greatest luxury for guest of the Four Seasons Hotel was their time. By giving great service, guests could make the most of their time.

There is no doubt that the Four Seasons Hotel chain understands their market clearly and delivers in spades. But how do they find and retain the excellent staff they employ? Sharp suggests that the employees in their hotels value three things: working for leaders who inspire, working in a physical environment that makes work enjoyable and most importantly, feeling they’re helping to build a company that they can take pride in. Clearly, management at the Four Seasons Hotel delivers on this employee wish list, as the staff appears to be very satisfied and in the business for the long haul.

One last point of interest: On my stay at the Four Seasons Maui last year I was handed a business card by the Assistant Recreation Manager, Mr. Jeff Melcher. Mr. Melcher said that if I ever wanted to work at the hotel I should let him know. Maybe I already have an idea of what I will do after Sauder Business School…

https://www.gsb.stanford.edu/insights/isadore-sharp-we-hire-attitude

flightshopper.ca

In the blog, “Air Canada Turns the Corner”, Robert Murphy suggests the Air Canada has modernized its business and is now positioned for success in the future. The blog points to how important it is for a business to adequately respond to changing customer preferences if it is to survive. Interestingly, it is not always easy to meet customer needs as there are factors outside the control of the business that affect customer satisfaction. We need only to consider airport security and the great dissatisfaction that emerges when airline customers are questioned about the long lines that exist at security checkpoints. The Financial Post reports ¹ that since the September 11, 2001 terrorist attacks airport security has become increasingly complicated and costly. With airline travel expected to double in the next 20 years, the question is raised as to whether the current security systems can handle this increased volume. The Financial Post report¹ suggests that in fact the current airport security is “bursting at the seams”, but that a solution to the problem lies in the proposed “smart security” systems which are currently under development. These systems promise to limit extensive screening to high risk flyers only and enable most passengers to sail through security.   Air Canada’s customers will undoubtedly appreciate such a change in airport security.

1. http://business.financialpost.com/2014/10/28/airport-security-checkpoints-bursting-at-the-seams-airline-association-chief-warns/