Kathy Wong's blog

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We know that caffeine is bad for us but people still drink coffee to make themselves alert or for enjoyment.  We also know that fast food is unhealthy for us but people still frequent fast food restaurants.  What about fast food + coffee?  Bad and unhealthy!  Research shows that when people eat fast food and wash it down with their cup of coffee, it actually “doubles the elevation in blood sugar levels” (CBS News – according to Journal of Nutrition).  The fat we consume from fast food obstructs the body from clearing away the unnecessary sugars, and by adding caffeine to our diet from drinking coffee, it makes it worse.  This leaves people at risk of Type 2 Diabetes and other diseases as this combination (fat and caffeine) harms the pancreas and the gut.

The reason I found this article interesting was because the fat and caffeine combination is so common that we see people consuming it every day.  This is of great concern because of the harms these daily routines can lead to, which people may not be aware of.  It is really common to see people holding a cup of coffee on the streets, on the bus, on their way to work, etc.  It has become a lifestyle.  People are always on–the-go and don’t have the necessary time to sit-down to a meal and thus will often have to buy food from fast-food restaurants that are simple and quick.  The coffee coupled with a greasy meal is what will endanger people in our society today and therefore the problem should be addressed (and why I blogged about it).

Here’s the article if you’d like to read more about it

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http://www.news1130.com/entertainment/article/200743–dr-mario-3-d-screen-on-nintendo-3ds-could-help-kids-with-vision-disorders-optometrists-say

Normally parents would restrict the amount of time children could play on game consoles as it may lead to nearsightedness, addictiveness and so on.  This does not seem to be a problem anymore with the 3-D screen Nintendo 3DS!  Optometrists are saying that these 3-D screens have healthy benefits.  The 3-D screen feature does not harm young children’s eyes and instead may help identify vision problems at an early age.  Some symptoms that may alert parents to vision disorders may be if children cannot see the 3-D images or if they experience dizziness.  These subtle vision disorders may cause children to experience problems when reading.  Furthermore, contrary to popular belief, optometrists are saying that children ages 6 and under should be exposed to the 3-D screens of the 3DS, as problems with vision if identified before the age of 6 are likely to be easier to fix as the visual system is still developing.

I think this benefit clearly serves as the 3DS’ competitive advantage as it’s the first game console with this 3D feature and is linked to health benefits.  As a game console it appeals to the children and young teenage audience but now Nintendo could also target parents with their 3DS in promoting a healthier game device for their children to play during their spare time.  Although other substitutes or competition exists, such as the 3D TV and movies, we understand that children spend more time playing on their game consoles than seen doing the other alternatives.

Although the 3D feature is seen to link to the identification of vision problems, many others contradict the notion.  They believe that parents should still limit children’s play on game consoles and that the benefits seen with the 3D feature are not certain.  In my opinion, this possible positive news may still create a demand in purchasing these game consoles, especially for families that have children.

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http://www.nintendo.com/3ds/

3DS?  What’s that?  It is a new version of the DS that shows 3D graphics without 3D glasses!  This new feature serves as a competitive advantage for the firm as they’re the first to bring this 3D feature into the market for game consoles.  This new 3DS is a new line extension, which is added on to their existing console product line.  Nintendo is already addressing their customers and making them aware of the product as they are promoting the first day when they are launching it (March 27).  Also, for customers that have had good experiences with Nintendo’s previous consoles, it will help Nintendo’s new product in gaining popularity.  Customers will associate the new product with the positive characteristics of earlier products, will help reduce the amount of marketing and advertising costs, and loyal customers will be insensitive towards the price.

The 3D feature may be Nintendo’s product development strategy or diversification strategy.  This new product could be used to target the current market as well as a new customer base.  This will help Nintendo maximize their revenue and expand their market.  The 3D function can also be turned off if the customer prefers to play 2D, which therefore again is a way for the company to target more markets: those that want to use 3D and those that don’t.

Nintendo is continually trying to update their consoles so that they can keep up with the changing demands in the market.  I remember getting my DS (older version) a few years ago, and I’ve seen many new versions coming up these past few years, such as Nintendo DS lite, Nintendo DSi, Nintendo DSi XL and now the 3DS.

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For the past week, Mcdonalds has been offering free coffee to all its consumers without the need to purchase food from the restaurant.  Why is it that Mcdonalds decided to implement this free coffee campaign?  What is their motive behind this?

From the Marketing perspective, we can see a few things behind this campaign: 1. Allowing the consumers to test try or sample their product free of charge; 2. Attracts customers to buy their other products (eg. hamburgers).

By implementing the free coffee campaign, Mcdonalds gives consumers a chance to sample their coffee.  As it is for free, the risk is lower for the customers and they are more willing to try the coffee (Trialability).  Mcdonalds could also use this campaign to expand on their current market by attracting new customers or customer bases to Mcdonalds coffee.

A second benefit for Mcdonalds through the free coffee campaign is being able to cross-sell.  This means that Mcdonalds is able to lure customers into their restaurant and while they are there, the customers may end up purchasing other products along with the free coffee.  The free coffee serves as an initiative for consumers to step into the Mcdonalds restaurant, and thus making it more likely that consumers would choose to purchase other items as well.

Successful or not?  Well I happened to be at Mcdonalds one morning and noticed a long line-up at that particular location.  Was that just a coincidence or did it have to do with the free coffee campaign?

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We mentioned pricing strategies in class today and so I started thinking about the stores around us and what kind of pricing strategies they use.  I decided to look at a big box store that is going to enter the Canadian market soon and as I wrote about Target earlier, I decided to do a part 2 for it (focusing on their price strategies)!  We understand that Target is known for it’s economical prices and trendy merchandise and therefore we can see that Target is focusing on a sales-oriented pricing strategy.  Sales-oriented pricing strategy was when the company focused more on increasing their sales and in turn will price their merchandise at a lower price in order to sell more in volume.  Similar to their direct competitor Walmart, these big department or big box stores usually have their main pricing strategy as sales-oriented.

Aside from their main pricing strategy, we notice that Target may have used a combination of pricing strategies.  Another pricing strategy that Target may be using is the customer-based pricing strategy.  This is when a company focuses on its customers through quality service and matching up with their customer expectations.  Target explained that they differed from their competitor Walmart as they had trained staff that was able to offer excellent customer service to help their customers when help was needed.  Also, many customers are looking for more economical alternatives after the recession occurred (wealth-income effect) and therefore Target was able to meet customers’ needs (with products priced at a more economical price) in this way.

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“Who will target Canada next?” is a great title that the article uses to capture the excitement that Canadians are experiencing as Target travels across the border.  Aside from Target, many other U.S. stores are planning to expand their business and enter the Canadian market.  What are some of the reasons that Target decided to enter the Canadian market instead of other markets?  Well, Canada is fairly close geographic-wise to the U.S. (geographic segmentation) and therefore may have been a good segment for Target to target.  Another valid reason is that the Canadian lifestyle is similar to the American lifestyle and therefore it is wise to target a market that is like their current one.  The Canadian market is also fairly familiar with the American brands as they frequently travel across the border to visit and shop.  This reflects the fact that Canadians will be more accepting when Target enters the market as they recognize the brand.  Therefore, it is a safe choice for Target to test the Canadian market.  Target was also able to spot the growing trend and demand for affordable clothing but yet still be cool and trendy.  This was especially important after the recession struck, as people believe their spending money decreased (“wealth-income effect”).  Furthermore, Target would like to focus on their customer service by having a sufficient amount of staff on the floor to help customers when needed.

For stores and business, it is often said that the most important factor was location, location, and location.  An opportunity (SWOT) for the company occurred when the Hudson’s Bay Co happened to be selling their lease rights for the Zeller locations (some were in prime areas such as high-traffic malls).  It seems like it’s the right timing for Target to enter the market.

Will this be a “bulls-eye” for Target in entering the Canadian market?  Will it be a success like many other U.S. stores in the market?

reference to article: http://www.canadianbusiness.com/managing/strategy/article.jsp?content=20110228_10018_10018&page=1

Everyday we’re surrounded by products.  Clothing, food, etc are things we interact with every single day of our lives, from when the minute we wake up till the minute we  go to bed.  Companies try their very best to attract more customers and establish more customer bases by diversifying their products through brand extension.  Brand extension is adding a new line to an already existing marketing mix.  The example I choose to mention here is Gap.

Gap Men: http://www.gap.com/Asset_Archive/GPWeb/Assets/Product/405/405543/main/gp405543-00p01v01.jpg
Gap Women: http://www.apparelsearch.com/news/articles/fashion/2007/5.31.07/Gap_5.31.07.jpg
Gap Kids: http://www.dashinfashion.com/images/home/gapwinners.gif
Gap Baby: http://www.foreverspree.com/shop/images/promotions/gap190808.jpg

Gap has existed ever since I remember, and at that time, it was merely just Gap.  Over the years, they have started to target certain markets, such as Gap Women and Gap Men.  By segmenting their markets, it helped them identify the needs of the different genders and better serve their customers.  Gap went further in segmenting their market by having “Petite”, “Tall”, and “Maternity” under the Gap Women’s category.  Gap continued to strive for more customer bases by introducing Gap Kids and Gap Baby.  Gap Kids is further segmented based on gender and Gap Baby is segmented under age.  This diversification helps them attract more customers providing for the different genders and age groups.  Also, diversification means that the company can spread out the risk instead of just having one type of product.

Many companies are developing brand extensions because of the additional revenue lines, the division of risk, and the attraction of more customers.  Some notable examples are Nike, H&M, and Curel lotion among many others.

credits go to: http://www.healthhabits.ca/wp-content/uploads/2011/01/starbucks-trenta-national-post.jpg (google image)

I found this image and thought it was an interesting picture comparing the different size Starbucks cups.  Think it’s easier to relate with a picture.

http://www.brandchannel.com/home/post/2011/02/04/Starbucks-Trenta-Launch.aspx

I was looking through Brandchannel’s blog and I came upon one of their blog posts titled “Starbucks, That’s a Latte Vino!” and found it interesting.  I have heard about the larger cup size that Starbucks has introduced but I think that the video that Brandchannel posted helps us visualize the actual size of it.  Brandchannel states that the introducing of this new cup-size may not be the best, as it states that “(a) customers don’t always know what they want; (b) the customer isn’t always right; (c) brands don’t have to give people everything they say they want”.  On the other hand, I believe that Starbucks probably has a reason behind why they would want to promote a larger size, such as from research or STP.  Research or analysis is seen as Starbucks’ CEO states “Trenta is the answer that customers want”.  In my perspective, I believe that Starbucks wants to target the Starbucks lovers who would like to have a bigger drink that would last them longer throughout the day.  Starbucks has already segmented their market (ie. Demographic-wise, geographic-wise, etc) but probably decided to segment it a bit more into consumption levels.  They were able to find out that a lot of people prefer a larger cup size and so they introduced it.  This was their target market for this particular new item and it was matching up to their competitor’s large size (positioning relative to Dunkin Donuts).

Thanks Glenda for sharing your blog post and youtube video with us.

The Allergy

I like how you took on a different perspective and saw how marketing wasn’t used solely to market and sell a product or service to customers but can be used for a good cause as well.  This is an example of an idea, when people will buy into the idea of living a healthy life and not smoke if the ad is effective (product and service are the most common).  I think if an ad or clip is effective, it could be a great influence to the viewers.  Similar to how a product or service should be of value to the customers, the purpose of the ad should be powerful and cause a lasting effect.  I particularly like the slogan they put at the end that reads “What’s your motivation?”.  The clip shows that the girlfriend was so important to the man that he is willing to give up on smoking (what they value most) and therefore allows viewers (especially smokers) to think of their loved ones and things that are important in their lives whenever they smoke.

I found a short video that also used marketing to raise awareness (child abuse).  The video starts off being all nice and friendly and everyone’s laughing.  However towards the end, a subtle comment is dropped which points towards child abuse.  I believe this short clip reflects how people view child abuse.  The matter is taken too lightly, just as it is featured in the video.  The video clip also features a statistic towards the end, which shows marketing research was done to obtain this piece of information.  A research method, such as a survey, may have been used to collect the data.  The video decided to input this piece of information because it serves as supporting evidence and creates a serious impact on the audience.

Jerry made an interesting comment on the famous Old Spice Commercial:

Link: https://blogs.ubc.ca/jerrychung/2011/01/11/old-spice/

I decided to make reference to it and this is what I think:

credits to google images: http://establishareconnect.com/gra217/wp-content/uploads/2010/09/Isaiah-Mustafa-Old-Spice-Commercial1.jpg

Hi Jerry, yes this is a popular commercial and I have watched a few myself. I think this commercial is definitely very creative and deviates from the traditional ways of promotion. I noticed as well that this product focuses more on the ladies instead of the male population. I believe this is sort of like the “Baby Carrots” ad we were talking about in class today where they were trying to focus on the children instead of the parents (which was usually their main target as they are the ones that buy the snacks and groceries). The theory is similar in that the “Baby Carrots” ad focused on things other than the healthy factor, which parents are concerned about but rather focused on the children and how cool it would be to have carrots for snacks. Similarly, Old Spice’s commercial targeted the female audience to buy it for their male partner instead of promoting directly to the main users (which probably already purchase it). I’m not sure if the repetition the actor used was on purpose so that the audience would remember the ad well after the ad has passed, but it certainly did work for me. Thanks for sharing!