Reflect

What did you learn about teams, yourself, and marketing?

Before taking marketing (Comm 296), I’ve never considered to do marketing. But after taking this course with Tamar, I realized that marketing is actually really fun and practical. I think it’s the most useful one so far…. (that we can actually apply it to the reality). I also learned the importance of collaboration and teamwork. While we were doing the group assignments, me and my team members always assigned tasks to each of us long before the due date so we’d have enough time to proof-read and make any correction. I think this is the best and most efficient way of doing this project.

What skills did to enhance or develop, if any?

I definitely enhanced my research skills. My group was doing WestJet and we did so many research on that company. I also improved my communication skills in that now I can deliver my thoughts more easily and effectively.

What would you do differently next time?

Next time, I will definitely try to speak more.

Thank you Tamar! You are such a great prof~ Because of you and your interesting lectures, I start to like marketing even more! I really admire your abandon work experience and your passion towards marketing.

Thanks again!

I was reading the blogs today and one article caught my attention.

Volvo Struggles in Questionable Chinese Business Market

It says that the Chinese dealers in China reported the wrong sales just to get bonus in 2011. And once those dealers got the money, they then sold the cars in 2012 (the report showed a 11% drop in sales in 2012).

Moreover, the image that Volvo tries to convey is different from the image perceived by Chinese consumers. The author in the above blog criticized the way Volvo’s cars were being evaluated in 2012 Taipei Auto Show, that the dealers used some “dolled up models” and moose to advertise the cars, which downgraded Volvo’s image. However, I think this is just the way those shows are. In Taiwan, when we talk about those auto shows, or those 3C product shows, there are always many “dolled up models” (because that’s the way to attract more people, at least in TW I think). However, it sure is a significant issue If Volvo still wants to be treated as a higher-end product, it needs to find a way to re-position itself from Chinese consumers.

Dolled up Models and moose in 2012 Taipei Auto Show

Volvo is having a vertical channel conflict in its supply chain (between the China dealer chain and Volvo) because both are seeking for different goals. (China dealers wanted to boost sales (so they could get bonus) and Volvo wanted to maximize the firm’s profit). If Volvo wants to solve this dilemma, it needs to try to establish a goal that is attractive and attainable to both parties.

Coce Cola – Extending beyond just a Coke

Every time when we talk about this company, Coca Cola, we immediately think of Coke.

However, as people become more concerned about obesity and health-related issues, many would pause and think before they open the coke.

According to this article, With Soda Volume Down, Coca-Cola Pushes Teas And Low-Cal Drinks, there is a slowdown in China and Europe’s sales. Moreover, I believe the soda drinks industry has reached its maturity stage in the PLC cycle. All products look alike (they are all sodas), it’s mainly those big brands that are competing against each other (e.g. Coke and Pepsi, 7up, etc). Demand for such drinks is not increasing either (the article above mentioned that sales in US is pretty saturated). In order to further generate sales, the company would either have to think of ways to stead sales from its competitors or create a new product line or brand.

I think Coca Cola has successfully developed a few product lines such as water (Dasani) and tea. A recent news reveals that Bad News for Big Soda: U.S. Water Consumption Passes Cola. This new trend of health awareness has led people to purchase more healthier drinks such as water! Having said that, Coca-Cola company bought Dasani and tries to capture the whole beverage market (water, coke/ diet coke, tea, and some other energy boosting drinks).

In addition, I was looking at Coca-Cola’s Company Website for Taiwan and was surprised to find out that one of the popular drinks – “shuang jian mei cha” is actually under this company!

“Shuang jian mei cha” is a drink that emphasizes on weight control and metabolism. It’s a tea consisted of several healthy ingredients (e.g. green tea, rice) and 100% natural. While launching this product, Coca-Cola is able to capture those health-conscious consumers.

Reflection on False Marketing

So, we talked about false advertising in today’s lecture and the professor mentioned about unethical marketing. I thought Shiyu’s blog, “False Advertising Makes Market a Mess,” was interesting. I remembered some people were saying that although the burgers that MacDonald’s offer look different from the pictures on the advertisement, people still buy them. In this case the difference between the actual product and the ads does not really influence people’s buying decision.

However, I believe in other cases, such difference does influence the consumers and can even negatively damage the company’s image.

For example, Online Clothing Shop. A lot of the time when we received clothes or apparels that we shopped online, they look very different from the displayed pictures.

(I’m not saying that the model in the above picture is misrepresenting the actual products; this is just an example of the type of photos that Asian sellers use)

I used to operate online shops on Facebook few years ago and this was a serious problem that I had to face. There were many sellers on TaoBao (a Chinese platform where people can sell or buy whatever they want)  who posted model pictures that looked really nice and high-quality. But once I received the products, I was often disappointed by the quality and color difference. And as a result I deleted those sellers from my supply list right away because I did not want to sell products that look totally different from the model pictures.

I think false marketing is a problem that really need close attention because we as the buyers suffer as a result of their misrepresentation of products.

With businesses that operate like this, they won’t be able to last for a long time. We all know that right now the market trends have moved from transaction-oriented to relationship-oriented. If we sell merchandises that are different from our ads, consumers won’t come and purchase again. Being able to retain the consumers is significant and if the companies cannot achieve that goal, they simply won’t survive in the long run.

 

Coke Cola Now Wants to Focus on Obesity?

I was reading this blog post this morning and found it really interesting.

Why Tackling Obesity NOW Is A Smart Strategy For Coke

Coca-Cola recently published a series of ads that talks about obesity. While people often say drinking soft drinks (Coke) will gain weight, Coca Cola is trying to address this concern by telling people that they now offer low or no-calorie choices, smaller portion drinks, add calorie labels on the containers, and volunteered to change the drinks offered in elementary schools to water, juices, or low or 0 cal options.

See Video (Coming Together)

Coming Together

I think the writer’s points are really good that he identified the reasons why Coca Cola is willing to face such obesity, a topic that might negatively influence the company. The writer stated that Coca Cola decided to do this because of the below reasons:

  1. “Public pressure” – while obesity is considered a serious problem now in US, and ignoring the concern is no longer an appropriate option, Coca-Cola has to face this problem and give a reasonable reason.
  2. “Negative reputation of high fructose corn syrup”
  3. “commitments to health matter more at the start of the year”
  4. “focus on health can make competitors look unfeeling or out of touch”

I agree with the above points. In today’s world, social responsibility has become more and more important. If the company wants to maintain a long term relationship with its customers, it needs to show that it cares about the society and the environment. Coca Cola really needs to find a way to address the problem of obesity since their product is highly correlated with obesity. By emphasizing the improvements they tried to make (low cal), the company is able to show people that they actually do care about them. Moreover, doing so enables Coca Cola to sound like as if they care more about their consumers’ health compared to their competitors (e.g. Pepsi).

Marketing Ethics – Horse Meat Used in Beefburgers.

It was found that horse meat could have been used when making beefburgers in UK. Food Standards Agency (FSA) was blamed for failing to give routine testing on horse meat (because FSA believes horse meat products do not pose a risk to public health).

The big food giant, Silvercrest Foods (a branch of ABP), was found to supply horse meat to big supermarkets such as Tesco and Aldi, and restaurants such as Asda and Burger King. Tesco made an announcement today to apologize for the ‘unacceptable’ horse meat and immediately removed all horse meat products off the stacks today (worth approximately 4.8 billion US Dollars).

Tesco Announcement

Horsemeat in Burgers Tesco Removes Product

Because of the government’s insufficient food testing, Silvercrest Foods’ unethical action, and those big supermarkets and restaurants’ lack of strict check of food suppliers, the consumers, as a result, suffered from the risk of eating horse meat from unknown sources.

When I saw this news, I was really surprised and shocked. While the company is using horse meat to make “beefburger,” maybe in an attempt to lower their cost, don’t they know the severe consequences once the consumers find out that the company is not being honest to them? And what if those horses are found to be sick and carry disease? Slivercrest Foods is a large-scale food supplier, and I believe for all food suppliers, reputation is more important than anything else because people do care about what they eat. While lying to the consumers might be able to bring greater profits at first, once the consumers find out the truth, the loss of consumers’ trust costs way more than the profit they would generate at first. Being ethical when market or sell the products is essential for businesses not only because it protects the consumers, but also because it allows the business itself to build a trusting and  long term relationship with its target consumers.