Archive for October, 2012

Oct 22 2012

The French Croissant Craze

Published by under Marketing,Strategy

Traditional methods versus mass production in factories — a battle that is hardly a newcomer to the global stage. Trends in history have shown that people tend to lean towards the latter simply because the decrease in time and costs make it worthwhile to sacrifice a bit of quality.

So, which way will the market of croissants in Paris swing? More and more vendors are using frozen, factory-made variants to cut costs, something which is becoming a growing issue. In a city where many purists who insist that the taste of handmade croissants is superior, will traditional methods win out in the end?

Similarly to the hockey stick industry in Canada discussed during class, traditional methods may gradually be forced out. Lower costs will allow vendors using frozen croissants to lower their prices, hence giving them a competitive edge over those who make them by hand. However, those who use the older methods will be left with a point of difference that appeals to many Parisians. Will the culture-laden population of Paris be able to maintain their strong traditions, or will practicality and the lure of profits win out? It could go either way at this rate.

 

Related Links:

Canadian Business: The croissant war in Paris

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Oct 18 2012

Branding: Gone in a Puff of Smoke

Published by under Marketing

Time and time again, smokers use the same old excuses to put off quitting.

“I’ll stop soon, promise.” “It’s just the stress!” “I’m going to quit eventually.”

Australia, however, has implemented a legislation that aims to make ‘soon’ and ‘eventually’ an immediate reality. It requires grotesque images ranging from cancerous lungs to diseased limbs to be displayed on cigarette packages, as well as other health warnings. Most notably, a particularly interesting feature of the constraints imposed is how brand trademarks have been banned from appearing on the boxes. Even details such as the font, size, and color of all brand names are standardized and identical, which is a more drastic step than any other nations have currently taken.

What does the government hope to achieve with this removal of branding? According to Health Minister Tanya Plibersek, a main focus of these restrictions is to dissuade the younger generation from smoking. With a package that is far from glamorous and that removes brand association, they hope to eliminate the ‘coolness’ that many teenagers associate with smoking. It’s certainly a logical argument in theory, so only time will tell how successful this law proves to be.

 

Related Links:

Bloomberg Businessweek: Australia’s Gross-Out Cigarette Warnings

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Oct 08 2012

Would You Like a McAlooTikki With That?

Published by under Marketing

McDonald’s has operated in India, where a large percentage of the population is vegetarian or do not consume beef or pork, for sixteen years now. Hence, a vegetarian outlet appears to be the best solution to appeal to the most customers. But the question is: why now? It’s been suggested that the company is trying to make up for a recent dip in global sales.

This is strategic marketing on their part, since with India expected to overtake China for the position of the country with the largest population, there seems to be endless potential for growth. With their brand name and image solidified, now is the time to establish points of parity with numerous other vegetarian restaurants in the country — and what better way to do so than through the introduction of potato patties and vegetable-cheese pastries?

Glocalization isn’t a new concept for McDonald’s. From McLobsters in New England to McRice in Asia, the company has been varying their menu to target local tastes while remaining true to their name. Some have been successful, like the abovementioned items, but others not as much; so only time will tell where their newest venture will end up.

 

Related Links:

BBC News: McDonald’s opens vegetarian-only restaurant

Bloomberg Businessweek: McDonald’s Plans First Vegetarian Restaurants in India

Forbes: Why Ronald McDonald Is Going Vegetarian

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Oct 01 2012

The Tale of Tin

Published by under Ethics

“We have to live. We need money.”

Those ominous words serve as a chilling reminder of the hardships consumers have been turning a blind eye to. We enjoy happy, carefree lives full of gadgets designed to make our lives as easy as possible, while nearly one person is killed every week among the Indonesian labourers who work in tin mines (many of which are illegally operated) on Bangka Island.

Approximately half of this tin will be used for electronics such as smartphones and tablets made by companies including Apple, Sony, Panasonic, Samsung, and LG.

So, is this ethical? Some would argue that we’re providing a living for these people. They’re not being forced into the work, and are aware of the risks. However, it is still exploitation of a vulnerable population. These people are desperate for money, and the mine operators know that. At the very least, it has been suggested that a portion of mine revenues should be used to improve work conditions and safety.

Although it would be far from a perfect solution, I believe that it’s a start. Without a first step being taken, chances are that things could continue as they have for decades without changing.

 

Related Links:

Bloomburg Businessweek: The Deadly Tin Inside Your Smartphone

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