Monthly Archives: November 2013

Throughout this semester, we have been working on a marketing project, specific to a company of our choice. My group chose Target as our company to research. I thoroughly enjoyed working on this project as this was the first time I had to do a video component.

Working on the project was a good way to integrate what we have been learning in class with a marketing presentation. By separating the project into three separate sections, it enabled my group to focus on each part on a more concentrated level. It helped us be more specific in areas that we wouldn’t have focused on if the whole project were due at one time. For example, I know that we would have spent a lot less time on researching different target markets if we were stressed to finish the whole editing component of the video.

As this was my first time creating a film, I wasn’t sure what to expect. I was a little worried about using Final Cut Pro because it looked so complicated. However, after trial and error, I was able to get used to it. It ended up being a lot of fun because I feel like it enabled my group to be creative when creating the film. With so many options for creating transitions and text entrances, we tried to create a video as diverse as possible. I particularly liked the video project because I believe that our group can be marked more fairly in regards to content as compared to whether our words come out properly. Of course presenting is a crucial skill, but as technology becomes more prevalent, having the skills to work with different mediums is also becoming as important.

Having stumbled upon this blog post a couple of days ago, I was shocked to find out just how powerful certain companies are. It is quite fascinating, and even scary to see how these 10 corporations have taken control over consumer purchases.

For example, Nestle, one of the 10 companies in this chart, owns almost 8,000 different brands. It also has relations with other major corporations such as L’Oreal and the clothing brand Diesel. This large product scope indefinitely contributes to Nestle’s large yearly profit, where sales increased to 45.2 billion in half of 2013 alone. Knowing that Nestle has a vast product mix, it was smart to do brand extensions and not constantly using their brand. For example, when I think of Nestle, I think of chocolate bars, not Gerber, a baby-food brand under Nestle. This use of individual brands allowed these products to separate themselves from Nestle’s brand image of delicious candies.

Another example is Unilever, a corporation that serves around 2 billion people. Their products range from Vaseline to Ben & Jerry’s ice cream. As a consumer, I make no connection between these two brand, let alone spending time to think if there is in fact a connection. This does show their success in marketing to many different consumer groups based on different profiles that match these different brands. For example, Ben & Jerry’s is marketed as a fun ice cream for people who love desserts, whereas Vaseline would be marketed towards consumers who possibly have dry skin.

Because these corporations have been successfully marketing to separate consumers, I was unaware that the same companies own many of these brands. I commend them for becoming that powerful, but it also makes me want to start supporting the smaller local companies as well.

Zara had 21.4 billion dollars in sales in 2012 and has been growing substantially across the world due to its fast moving cycle of new clothing. It has become a go-to for the fashionable consumers because they know Zara is always bringing out new clothing. The total process of designing a product to shipping it across the world to various stores can take as little as two weeks. Because of how quickly their products can be launched, Zara is given a huge advantage in the fashion industry, as it is a very fast-paced and demanding industry. Communication across the channels is crucial to Zara’s successful supply chain management. Because around 450 million products are produced a year, the company needs to ensure that communications across the channels are efficient and meticulous.

As trends in the fashion industry are constantly changing, designers must be able to keep up with what consumers want. What makes Zara a success is its supply chain. For example, to cut shipping time, their factories are located in Europe. This may increase production costs compared to producing in Asia or India, but time and possibly shipping cost benefits seems to outweigh production costs. To add, each item is produced scarcely rather than being mass-produced like other brands do. Because of this exclusivity, demand increases, which also allows price to increase. This can positively affect the bottom line if Zara can consistently bring out new products. Zara’s supply chain model is risky as there are constant variable costs from working with new designs, but because of Zara’s high customer loyalty, the company knows that these costs can be covered from high consumer demand.

After reading my classmate Julia’s blog on SMS marketing, my interest on this mode of communication grew. Julia commented on how people are over 90% more likely to read promotional ads sent to them via text message. I find this to be completely true. Though I wouldn’t recognize the number, I would still be curious as to what the text says.

This type of direct marketing can be extremely effective to the younger generation. Technology has become so prevalent that it seems like some kids are glued to their smartphones or laptops. Marketing through this means will likely result in many younger kids becoming aware of what is being marketed. Agreeing with Julia, I am also 100% more likely to read a text promotion over an email promotion.

However, I find this mode of marketing to be also quite tricky. When I read a promotion through my text messages, I find it annoying. Not only that, but I categorize any text promotions in bad light. This is similar to email promotions; I automatically think that the email is a scam with no credibility. Marketers need to be aware of the current perceptions of this mode of marketing.

Also, though I may read it, my response to the message may be heavily delayed. I would probably just delete the message. If these promotions are to sign up on a certain website, it may be difficult if people don’t have data on their phones. This can become expensive for many people.

Though this method of advertising may become popular in the near future, I don’t see it as being the best way to promote. I personally see this method of marketing the same as email marketing in a sense that the type of ads that come through are usually not worth reading.