Marketing Blog

Since I started working at a Kumon Learning Centre a few months ago, I thought it would be interesting to share its marketing mix.

Product:

Kumon was started by a Japanese man named Toru Kumon who was concerned by his son’s struggle with math in school. He came up with a program that focused on the skills necessary for his son to be able to eventually tackle calculus. This Kumon method involved completing a set number of math sheets every day. Whenever Toru’s son struggled with something on the sheets, his father would focus on it for the next set of sheets until he achieved speed, accuracy, and mastery. Only then did his son move onto something new. This method was eventually expanded from math to reading.

The students attend class once or twice a week, where they do corrections from last week’s work and start new material. Instructors are available if there are any questions.

What sets this product apart from others is that it encourages students to learn independently by giving instructions and hints on the sheets. Instructors do not teach, but provide guidance for the students. This fosters skills for the students that are necessary in higher level education, such as studying and learning by themselves. The actual worksheets are the same across Kumon Learning Centres in a country, with differences between countries kept to a minimum where possible. This allows for mass production.

Price:

The Kumon reading and math programs are approximately $120 each a month. However, that price decreases to about $100-110 a month if a student takes both at the same time.

Place:

The reading and math programs are available at Kumon Learning Centres. These centres are located in many cities, with many having different locations for different areas. Kumon is a franchise business.

Promotion:

One of the main methods for promoting Kumon is through word of mouth. Many people enroll their children in the Kumon program because they know of others who have done the same, and seen the positive results. Other ways include television and newspaper advertisements. Personal selling is also involved as one of the instructors at a centre will walk the parents and the child through the program, and sit down with them to answer any questions. Offering rewards such as school supplies and electronics for students who attain enough points is a sales promotion idea used by Kumon. By rewarding students for their hard work, they are in turn encouraged to continue with the program.

This marketing mix seems to be quite successful as there are 4 million Kumon students worldwide, around 26,000 centres in 44 countries, with opportunities for new franchises, and an estimated worth of over $650 million for the company.

Since Black Friday has come and gone, I thought I would do a blog post on the marketing lessons that one could learn from it. According to Cynthia Boris’s blog post, there are five marketing lessons that you can take from Black Friday.

1. Social Media

Unless you’ve been living under a rock, you would know that Facebook, Twitter, and etcetera are big right now. It’s not surprising that major retailers have started advertising their sales on these platforms. I mean, take Facebook, for example. It’s pretty commonplace to have 100+ friends. If you mention a great deal you found on Facebook for some retailer on your wall, that info will be instantly transmitted to all your friends. The fact is, email just doesn’t work on its own anymore.

2. Deals make unwanted products attractive.

Cynthia discusses how she bought a bluetooth headset that she didn’t really want or need it because it was at such a low price. I wish I could say that I had the strength to resist buying something that I wasn’t looking for, even if it’s really cheap, but I can’t. Discount items make it seem like you’re not spending as much. Quantity over quality argument, in this case. I’ve bought scarves that were on sale in the past, even though I didn’t really like them.

3. Urgency sells.

Black Friday is all about the time limit. I saw many signs that said “until noon” or “today only” when I was shopping. With this constraint, I think shoppers will have the tendency to buy rather than to  not buy because the deal won’t be there anymore. I know that I would most likely buy something on discount if it were on a limited time. I feel that if I don’t buy it, and I actually think about it and realize after a while that I do need that something, I would miss out. If I do buy it, and it turns out I don’t need it, well, at least it was cheap.

4. I’m special.

Cynthia also talks about special deals for a select group of people. I remember how I went shopping in a store that offered 50% off for customers that had the store card instead of the 30% for other customers. By making you feel like you’re special, retailers entice you to spend more. And I definitely did that day.

5. Go the extra mile.

The last marketing lesson to be taken from Black Friday is that retailers should do something extra for their consumers. Cynthia mentions adding a bonus item to online purchases. Now, I haven’t actually seen this in practice, but I do think it is a good idea. Black Friday only comes once a year, and it’s a pretty stressful time for consumers. Think about all those who waited in line to try on something and then waited in line to pay. Some may have waited ages just to get to the store if they crossed the border. If retailers do something extra, consumers will remember that and hopefully come again. Creating lifelong customers is a big thing.

People are conscious about their spending during economic downturns. Some companies have taken note of this habit and produced new and innovative services to attract customers during economic downturns.

Groupon is a group buying site which uses collective buying power to provide large discounts for its customers. Each day, one deal is emailed out to all subscribers, who then choose to buy the deal or not. If the target amount of buyers is reached, then the deal is on. In nearly all cases, this happens. Groupon also gives subscribers credit for every friend referred who signs up and buys a deal. For purchasers of Groupon, the incredible local deals coupled with deep discounts are perfect for tight budgets.

I use Groupon, and I think it’s great. All the deals provide great prices that you normally wouldn’t seen, with many offering around 50% off. Because of Groupon, I’ve tried things like High Tea at the Fairmont Vancouver Hotel that I normally wouldn’t try.

Groupon clearly appeals to its subscribers, but what about the participating merchants who are featured on the website? What do they get out of it?

The answer? The ability to reach new market segments and attract new customers.

In fact, some past participating merchants say that their phones were ringing off the hook after they were featured on Groupon. Many sold more Groupons than they had expected. The success that they have experienced has led some to become repeat merchants.

In my opinion, collective buying sites like Groupon are a great way for merchants to get their goods and services publicity. More than 17 million people are subscribed to Groupon, and because Groupon is distributed by email, these people are highly reachable. Furthermore, there are options to Tweet or share the daily deal on Twitter or Facebook, which spreads the deal of the day even further.

It’s getting pretty close to one of my best friends’ birthdays, so I’ve been dwelling on what to get for her. I remember a couple years ago, a few friends and I chipped in together to buy her a pair of diamond earrings, since she just got her ears pierced. The ones we bought her were tiny, but still really expensive.

If you think about it, a diamond is just a hunk of rock made up of carbon atoms–the same material as graphite is made of. In fact, rubies are more expensive than diamonds, with the exception of very rare coloured diamonds. So why are other gems less popular than diamonds?

Well, ever heard of the saying, “a diamond is forever?” What about “eternity rings” or “trilogy rings?” How about the idea that a man should spend two to three months’ salary on an engagement ring?

All were clever marketing ideas from the De Beers company, which is in the diamond industry.

Take the “eternity ring”, for example. The target market for this product was married men who wanted to give their wives a symbol of their never-ending love. The ring itself is a band of precious metal set with a continuous line of identically cut diamonds, which reflects the idea of eternity.

Diamonds are now commonly seen as symbols of love and commitment because of these successful marketing campaigns.

Yesterday, I headed down to the States with my family for a much needed shopping break after my midterms.

What caught my attention after a while was the behaviour of the sales associates that approached me. Every time I went to try on some clothes, the person helping me would ask if I wanted to try on something else that he or she recommended. That reminded me a bit of the consumer decision process and how it is affected. Take me, for example.

I wanted a new pair of jeans. My old pairs were getting a bit worn out, and since things were cheaper down in the States, I decided that I would try to find a nice pair or two on my trip.

I knew that many of the stores at Seattle Premium Outlets sold jeans, but I only wanted to look at jeans from a brand I knew. That narrowed my choice down to Levis, True Religion, and Guess. I don’t particularly like Levis jeans, so that left me with True Religion and Guess.

With that in mind, I headed to True Religion first. I wasn’t a fan of back pocket flaps, so that ruled out most of the jeans in the store. While I lined up to try on the few pairs that I picked, the sales associate with me noted that most of them were bootcut jeans. He asked if I wanted to try some other jeans in similar styles. I have to admit, if I hadn’t looked at all the jeans in the store and if I weren’t conscious about the time, I probably would’ve agreed. But in this situation, I politely refused, and ended up leaving without buying anything. None of the jeans fitted the way I wanted them to.

Next, I tried my luck at Guess. I quickly found a few pairs of jeans that I liked, and made a beeline towards the fitting rooms. Once again, a sales associate asked if I wanted to try on some cute new tops that just came in the other day. And, once again, I refused.

Unlike what happened at True Religion, though, I did find a pair of jeans that I wanted to buy. But my mom noted that there was a promotion going on where I would get a second pair of jeans 50% off. I didn’t like any of the other jeans that fell under this promotion, but she insisted I buy something else. In the end, I chose a pair that was in the same style as the ones I liked, but a shade darker and with yellow thread instead of white. My verdict? I probably wouldn’t wear that pair very often since I don’t like yellow threading.

And my thoughts on the shopping situations that affect the consumer decision process? I think that if a person were really set on what he or she wants to buy, the shopping situation wouldn’t have too much of an impact on the purchases made. I knew exactly what type of jeans I wanted, and I wasn’t derailed by the suggestions of the sales associates or the promotions offered. This would’ve been different if I were shopping for something that I wasn’t set on.

However, since I wasn’t the one paying, my mom decided to add a second pair of jeans. Since it was me, and not my mom, with a specific goal in mind, she was more swayed by the shopping situation.

I stumbled upon misahuang‘s blog post about a coffee profile quiz offered on Van Houtte’s website. For those of you who don’t know, Van Houtte is a coffee roasting company. Now, I rarely every drink coffee, but I’m a sucker for quizzes, so I went ahead and took it to see what my results would be. It was very simple, with only six questions, but the results somewhat fit with what I like.

And my results? Velvety and fruity.

I think that this tool is a good idea. Like misahuang said,  it provides information to Van Houtte about its target market whenever someone completes a quiz. This would help identify the market for each blend and any possibilities for product development. The quiz also provides a list of blends that Van Houtte offers that fit your coffee profile. This would be perfect for consumers who want a coffee that fits their tastes, but don’t have enough time or money to try all the blends.

However, just completing the quiz to find out my coffee profile wasn’t enough for me, though. I’m a curious person, so I built a coffee profile that fit what I thought my tastes were like through the explore coffee profile tab. My results this time? Mellow and fruity.

After comparing the descriptions for both results, I think that mellow and fruity fits better with what would seek for in a coffee blend.

The questions the quiz asked were not specifically about coffee preferences. They asked general questions about intensity and flavour instead. The intensity and flavour that I like for chocolate and dessert, for example, may not be the same as the intensity and flavour that I would like for my coffee. In this case, I find that the coffee profile quiz is just a general guideline for what types of coffee a person may like.

When I’m out in public, I can’t count the number of people who own Coach products. Not to mention the different types of people who own them. In fact, it’s easier for me to count the number of friends that I have who don’t have something from Coach than it is for me to count the ones that don’t. Not surprisingly, I own a Coach wallet myself.

The reason why I think Coach is so ubiquitous is because of how its name and logos are displayed. Take the typical C patterning for its bags. People who aspire to communicate their wealth and status would obviously go for brand name products that are clearly recognizable, like Coach.

However, I do have a friend who is a bit of an anomaly. Yes, she has multiple products from Coach. Yes, she does use them. The issue for her, though, is that everyone owns things from Coach. When she’s out shopping, she doesn’t want to be using a product that an elderly grandmother, for example, is using as well. She wants something that is more exclusive.

This brings me to my point: inconspicuous consumption.

On Science Blog, BJS discusses why consumers are willing to pay more for a bag that doesn’t display its bag and that may be confused with a cheap alternative in his blog post. After reading is post, I have to agree with what he has written. People like feeling like an insider. With inconspicuous consumption, only those who are insiders to the brand can recognize the product.

I’ve never really noticed how few advertisements appeal to you emotionally. As Il Divad commented in his blog post, many advertisements do lack substance. Sure, some of them are funny or entertaining, but they’re not thought provoking enough to stay on your mind.

In my opinion, trying to sell something by eliciting a strong emotional response such as happiness or sadness works much better than just relying on reasoning. Take the Thai Life Insurance ads mentioned in Il Divad‘s blog. Honestly speaking, I’ve watched every single one, and all of them brought tears to my eyes. Let’s just say that if Thai Life Insurance were sold here, I’d probably buy them over other options.

What’s interesting to me, though, is that the ads don’t really connect to to life insurance in some cases. See the advertisement I’ve embedded below:

After reflecting on this commercial, I’ve concluded that it would fit better with safe driving advertisements. In this situation, buying life insurance doesn’t resolve the problem the father has with his son. Sure, the son will receive his father’s life insurance money, but that can’t replace his father, now can it? In fact, it seems like the advertisement is saying that if you weren’t there for your son, he’ll realize that you cared about him once he receives your life insurance payout when you die. Not something you really want to promote, in my opinion.

This next one is even less related to life insurance:

If you asked me what I thought this commercial was for without telling me beforehand, I would never have come up with life insurance.

Despite the differences between what they’re selling and what the advertisements are showing, Thai Life Insurance has done a good job. I mean, they’ve got me interested, and I don’t even live in Thailand.

Have you ever seen something marketed exactly the same way as something else from a different company?

This past summer, I went volunteering overseas in Australia with International Student Volunteers, Inc. I first heard of this program when a guy with an Australian accent ran into my French 222 class last September, gave a quick spiel about volunteering abroad, and passed out sign up sheets and fliers with the details of where info sessions would be held. Though I thought there was a good chance that this was a scam, I was curious enough to actually attend an info session, and even bring a friend with me.

After that info session, both my friend and I were sold on the trip. We both paid a registration deposit fee on the spot, and a week later, we paid our non-refundable program deposit fee. Thinking about it, the marketing strategy is pretty ingenious. Past ISV volunteers can sign up to be representatives (like me this year!) and start promoting the program as soon as classes start. Campus recruiters are flown in from some of the countries where you can volunteer at to do classroom announcements and host info sessions. Worried about how expensive it’ll be? They have free packages with letters for you to send out for sponsors. And you can earn academic credit, too. It’s no wonder why I signed up so quickly.

It didn’t take long for other organizations to take notice of how successful ISV’s marketing strategy was. About a month ago, ISV sent out emails to all alumni warning us of a new organization called VESA. Apparently, VESA completely ripped off ISV’s methodology, and even had info sessions that were word for word the same as those of ISV. There were lawsuits involved, and VESA even had a temporary restraining order to stop campus promotion.

Honestly, I don’t understand why VESA is doing this since it puts them at a disadvantage. Ignoring the legal implications, copying ISV’s marketing strategy means that ISV would always be one step ahead. As well,  starting an organization with a marketing strategy developed for an established organization would also mean that there would be abnormally high costs involved. For example, flying campus recruiters to universities is not cheap. Instead of copying ISV, VESA should have improved upon any shortfalls of the marketing strategy and adapted it to fit their needs.

A couple days ago, I was browsing Youtube when I stumbled upon an anime music video for a Japanese song. Sounds pretty typical, right? Well, I liked the singer so I Googled her to see if there were any other songs of hers that I would like.

And that’s when I discovered that the voice I heard on the video was actually synthesized.

Vocaloid is a singing synthesizer program created by the Yamaha Corporation. A developer would take this program and record voice samples of a voice actor and input the data into Vocaloid. The developer would then put the finished product out on the market for sale.

What’s interesting is how the product is actually marketed. Japan is the home of anime, with a huge national fan base. As such, the developers packaged each Vocaloid application with a character to represent the voice. This character came with a unique name, and an appearance drawn in anime style.

While typical marketing methods such as promotions in magazines, street pole banners, and online games featuring these Vocaloid singers were used, it was through the popularity of video sharing that really launched the software.

A producer would compose a song and write lyrics to go with it. He or she would then run it through one of the Vocaloid products. This song would then be uploaded onto Nico Nico Douga, a Japanese video sharing website. An interested artist that listens to the song would then generate images or animation for it. The song would then be re-uploaded with its accompanying music video. Some of these videos have more than one million views. Basically, free advertising for the producers of the Vocaloid software.

Here’s an example of one of the finished music videos:

As an avid viewer of Youtube, I can definitely see the appeal of Vocaloid. There are many talented composers and songwriters out there that don’t necessarily have the vocal ability to support what they come up with. Since Vocaloid is a singing synthesizer program, the “singer” packaged inside has an unparalleled vocal range. The only thing that restricts the creation process is time, which brings me to my next point.

Vocaloid seems perfect for those who have a day job. You don’t have to book an expensive recording studio that has fixed hours of operation. Instead, you can produce everything in the comfort of your own home. Quite a few people have done just that and gone on to sell the songs they created on iTunes to make a tidy profit.

All in all, I’m pretty impressed by this software. If I were a composer and songwriter, I would definitely be interested in Vocaloid.