Month: February 2011

I am totally in love with Coca Cola and not in favor of Pepsi. I always thought Pepsi is too sweet and Coke is the best. Coke is in my refrigerator almost 24/7. So during the weekend, I was chilling at my house as usual, surfing the internet. As I skim through the internet news…… I saw COKE CAUSING CANCER! I clicked on it to read full text. When I finished reading, I slowly stared at the cup of Coke I was holding. Then I thought ‘okay…… this is the last cup of Coke I will ever have in my life…….’ So I drank whole thing and stopped drinking since then because I want to live long.

I had a long day on last Tuesday. I was tired, hungry and grumpy. I went to the store and before I realize I was naturally standing in front of COKE section. Then it reminded me of habitual decision making in marketing. Purchasing a coke did not even require a thought. Unconsciously, I was automatically in front of Coke thinking I need a Coke. Then, I also thought how I was being so loyal to Coca Cola. I did not even consider alternative brands or other alternative drinks but just needed Coke to relieve. Then, I understood why companies are trying hard to retain their loyal customers.   

In the end, I did not buy Coke. But indeed, I was standing in front of it for five minutes to whether I should buy it or not.

Just an update now, Coke is getting sued for having a cancer causing chemicals.

http://www.cbc.ca/news/story/2006/08/25/benzene-beverages.html

I am a huge fan of soccer. I always surf internet related to soccer. So today, I was looking though as usual and saw how Nike turned French soccer team uniform in fashionable way. Then, I thought hmm…… France then Paris, one of the biggest fashion cities, then how can soccer uniform be fashionable? So I clicked on it just to see its new look. The uniform actually did not look like a soccer uniform at all. It was more of day-to-day wearable shirt. People could wear it with jeans and jacket and it would look fine. I got interest and start to actually read the article. Nike had “designed new uniform radically different from the previous generation of jerseys” to target the new segment market.

Soccer uniform is around $100 and higher which is expensive relative to other day to day wearable shirt. The uniform is unfashionable and can’t be worn casually which makes it impractical. So it is usually bought by people who are really into soccer. In order to overcome these and appeal to more people, Nike is promoting how the new uniform is fashionable and how it provides unique personality to each individual. The new uniform can be customized to suit the wearer by using collar and sleeves. This uniform now has collar so people can either button, unbutton, up or down. Also, people can leave the sleeves as roll down to show blue (understated effect) or they can roll up to show bright red. Lastly, they took inspiration from techniques by top French fashion houses to make uniform longer and close-fitting with narrower waist.

Nike is using differentiated segmentation strategy to target people who are looking for more practical uniform/shirt that gives individual’s own distinctive style and personality. By adding more features Nike is providing benefit and these new benefits are targeting the new segment. I think it is a great strategy that covers up the traditional uniform’s weakness. But I wonder how much this will increase Nike’s profit.

Here is youtube video about new uniform.

While I was reading Consumer Decision Process for marketing midterm, it reminded me of decision process that I go through when I buy my make up! One day, I realized I was out one of my foundation and went to Mac to buy it. But, in Mac, they said my foundation line does not exist anymore and moreover they told me that they STOPPED producing it. I freaked out! The instant moment when I realized they no longer produce my foundation was the “Need Recognition” step. So I had to go home and do research to replace this foundation, which was “Information Search” step. Many factors affected my search process such as benefit of searching for new foundation outweighed  cost of searching (my time and effort), internal locus of control since I believed doing research can actually result a better outcome, and performance risk of foundation performing poorly on my skin made me to actually go and test before buying it. Then I found few foundations that I liked and started to evaluate which was the “Alternative Evaluation” step. I use non-compensatory decision rule in my evaluation. I was looking for foundation that is moist and little bit shiny when you put on. Then I began cutting down one by one and figured out the best one for me. Then I physically went to buy it which was the “Purchase” step. For the last step, “Postpurchase”, I have been using it since then and I like it so much that I would buy it next time if it still exists. So I had to postpurchase dissonance.

Here are the new foundatio that I am using.