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Does the name Julie Clark ring a bell? How about the title “Baby Einstein”?

In 1996, almost accidentally, Julie Clark created the now popular DVD series, and business, Baby Einstein. In the beginning investing just under $20 000, Julie initiated the success of Baby Einstein, which became worth $400 000 000 based on revenue today.

Her idea: soothing soundtrack *VHS’s for her own babies …*soon to become DVDs, obviously.
Her investment: $18 000, and her idea
Her marketing scheme: WORD-OF-MOUTH!

As the Baby Einstein products became increasingly popular into the 2000’s, Julie Clark’s name can now be seen alongside Albert Einstein, and Disney. This is a huge deal. Royalties are paid to the estate of Albert himself, which Forbes says puts him in the top 5 of most-earning dead celebrities. The Walt Disney Company purchased 80% of Julie’s business in 2001.

Julie Clark is an entrepreneur. In order to prepare for class, we were asked to read this article: http://www.quickmba.com/entre/definition/

Under Schumpeter’s view, Julie was able to come up with new products, and new markets mainly. She made baby DVDs become its own industry! Out of nothing, or thin air, as Brian Wong might say.
In terms of differentiating Julie’s entrepreneurship company from a ‘small business’ – it is clear (based on the company’s worth today), that she created “substantial wealth, [typically] in excess of several million dollars.” The innovation, risk, and speed of wealth creation were also all present.

What do the following brands have in common other than a sleek metallic logo on a black background and the inclusion of fruit in their recognized brand/product name?

Answer: Upcoming competition in the tablet market.

I came across an article on Professor Gateman’s microeconomics midterm exam, that instead of immediately making me think about a memorandum I would put together as a financial consultant (or whatever it is that economists do), made me think: “This is such a business fundamentals topic!” Instead of economic terms like ‘luxury good’, ‘elasticity’, and various graphs, I was considering factors such as points of parity/difference, marketing schemes, and brand recognition variables.

RIM (Blackberry) has had a monopoly over the smart phone market, and now wishes to carry over to the tablet market. RIM purchased QNX in order to incorporate their highly advanced technology. Apple has already launched their first generation of the iPad, and RIM will soon (almost a year later), release their new PlayBook. Being first in the market gives Apple a strong advantage, but with new technology and a great reputation for security features, RIM will prove to be strong competition. At this point, with the demand for tablets constantly increasing, it’s anyone’s market.

“Social Media isn’t a fad, it’s a fundamental shift in the way we communicate.”

Companies and organizations must keep up with the times to best relate to their consumers and strengthen their brand names. One of the latest most efficient ways to do this is through social media! People operate and organize their lives online, and we now live in an instant gratification society. Businesses are adapting to this revolution by getting known through social media and involved in online networking sites.

“Successful companies in social media act more like party planners, aggregators, and content providers than traditional advertisers.”

In order to take advantage of the online opportunities available, Socialnomics suggests that traditional advertising schemes should be left behind in order to achieve success. I agree that most businesses who have captured my attention online have done so using creative new concepts. Lululemon often ‘tweets’ about their newest products, ideas, and events, often including photos. Doing this categorizes them as content providers. Skullcandy uses an innovative marketing concept in which consumers post interesting photos of themselves with the brand name’s product, in efforts to win prizes. Not only is it free marketing, but the consumers are forced to at least try the product!

http://www.timhortons.com/ca/en/about/2670.html

American physicians have developed a commercial that advertises the dangers of a McDonald’s diet. McDonald’s has faced adversity before in the form of negative media attention, which forces them to market themselves differently.  The title itself suggests ethical controversy – and accompanied by these screenshots from advertisement we can see just how far the doctors decided to go.



“High cholesterol. High blood pressure. Heart Attacks.”

This advertisement directly targets McDonald’s high fat foods by insinuating a direct causation to death. The commercial highlights that McDonald’s fast food is unhealthy – which is no news to most people, especially since the release of the popular jaw-dropping documentary: Super Size Me. What makes McDonald’s consider the doctors’ ad “Outrageous!” and “Misleading propaganda”? The graphic image of a corpse under a sheet on a hospital bed made me squirm – it was the image of a man who looked average enough to be anyone’s father or friend. McDonald’s must have been upset with the direct relation as the ad features their logo as well as a trademark burger in the man’s dead hands. I am curious as to whether/how they will rebuttle – because we all know it’s scary, but it’s true!

http://www.theglobeandmail.com/life/health/doctors-mcdonalds-attack-ad/article1708573/?view=picks

“Germany’s exporting prowess is leaving the rest of the euro area behind”

“stronger foreign demand for German-type products”

The German economy seems to be carrying the economic weight of all of Europe on its shoulders. The continuation of the euro was at one point questionable, and Germany has been contributing more than expected to the European economy. In the last quarter, Germany’s success helped Europe outperform both America and Japan. Because of their export-based economy, Germany has been increasing output, contributing to a lowered unemployment rate.

Along with Germany’s low unemployment rate, they are succeeding economically with the automobile industry. The currently strong Japanese yen is causing issues for their own car industry, which is good for Germany who considers them tough competition. Last year german Merecedes’ sales to China rose by 120% (over a year). Many plants such as BMW and VW are seeing full capacity again, contributing to the low unemployment rate.

As the rest (or most) of Europe is experiencing independent economic distress, Germany has proven themself by maximizing exports. Whether they are strategic or lucky, Germany is doing something right, and the rest of Europe could learn a lesson or two from them.

http://www.economist.com/node/16542836?story_id=16542836&CFID=147783173&CFTOKEN=43103424

http://www.economist.com/blogs/freeexchange/2010/09/europes_economy