Priyanka Vasudev's Blog

Recently Twitter announced an update on their program that allows users to directly access pictures/ videos from the tweet itself, eliminating the need to click on a link. Users will be able to automatically preview the images, making the timeline more visual and engaging. This was reported on New York Times technology page ‘Bits Blog’, as part of their daily report segment. The post discusses how this is all an attempt for Twitter to increase advertising revenue as they are paid based on the number of clicks on the ad showcased. By integrating both photo and video directly into the feed, it increases the likelihood of people actually viewing the advertisement, thus resulting in an increase in ad revenue.

With the company’s release of its IPO(initial public offering) rapidly approaching, even the slightest of adjustments made to their software will attract the attention of potential investors. Therefore Twitter is attempting to maximize the number of users before the IPO launches, strengthening the value of the company. They are currently focused on fostering growth in both ad revenue and popularity in order to make their stock more appealing.

This particular blog was especially useful in explaining how Twitter was lacking in innovation as posts were mostly text based. By showcasing the photo/video more prominently, Twitter is essentially replicating the recent upgrade Facebook had done in order to keep up with their number one competitor. Overall, the piece written offered me an insight into how a company’s actions alter as they approach the release date of their IPO. All in an attempt to make their stock seem most favorable in the eyes of investors.

Sources Used:
http://www.nytimes.com/2013/10/30/technology/ahead-of-ipo-twitter-adds-photo-and-video-previews-to-timelines.html

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The online retail industry has seen a dramatic increase in popularity over the past few years. With the inability to physically feel the product, shoppers are relying on the retailer’s decision making tactics in regards to what will satisfy their specific tastes and preferences. ‘JustFab’, an online fashion retailer bridges the trust barrier between consumers and websites to overcome the anxiety associated with ordering online. By offering clients a shopping experience based on their indicated fashion sense, JustFab is able to create a personalized closet filled with shoes, handbag, accessories and even denim that appeals to each individual’s style.

JustFab operates on a $39.99 monthly subscription service, where members are able to pick one item per month from their virtual closet. After signing up, users fill out a survey and comprehensive style questionnaire asking about their general tastes and preferences. The company utilizes information technology to store user profiles within their database, allowing them to make decisions about which of the styles offered is best to recommend to the customer. Style conscious individuals are attracted to JustFab because of their differentiation strategy, instead of going through intermediaries, the items are sold immediately after production, substantially decreasing the price paid by members.

Personally I believe this is an ingenious concept, not only are customers satisfied but the company as a whole gains a major strategic advantage. I had previously placed an order on their website and was thoroughly satisfied as they were able to fill my virtual closet with items that truly matched my personal style. Overall, after my experience I am confident that the integration of information technology and online shopping will become a huge trend amongst future retailers.

Sources Used:

http://www.justfab.ca/story.htm

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The fast food industry is constantly evolving and it seems as though the only way key players can wipe out the competition is through costly advertisements and aggressive marketing campaigns. The art of simplicity has become a thing of the past; companies are continuously targeting broad consumer segments instead of focusing on their particular niche. Recently this popular strategy was challenged, when small town chain ‘Chipotles Mexican Grill’ began expanding into the commercial market.

Contrary to traditional marketing strategies, Chipotle’s main focus is to educate consumers on where food comes from rather than promoting their brand. They believe that by solely targeting millennials, those born between 1980 and 2000, they are able to focus on the core values of that specific segment. In this case, their target market’s ideals include healthy eating, locally grown ingredients and light branding. By straying away from conventional media outlets, Chipotle is building an alternative identity for themselves as a brand that customers can easily connect with.

Upon reading Chipotle’s profile I was thoroughly intrigued by the company’s willingness to take such bold risks, it is never easy to compete with large fast food chains, especially when lacking in branding. Their story has taught me that even in a highly competitive industry, less is sometimes more when it comes to marketing; the simplicity of a brands mission has the power to reach an audience far more effectively than any elaborate campaign. 

Watch: Chipotle’s Latest Form of Advertising 
 
Sources Used:
http://www.usatoday.com/story/money/business/2013/09/12/chipotle-big-food-millennial-marketing/2798023/

http://www.digitalsparkmarketing.com/creative-marketing/non-traditional-marketing/

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After sifting through numerous blogs I came across Annabelle Chen’s post on Lululemon’s legal troubles; consumers filed a lawsuit against the athletic wear company due to the sheerness of pants made out of their signature luon fabric. This caused a significant decrease in the company’s share price, making the public question the integrity of the brand. According to both Annabelle and likeminded customers, the company’s reputation for producing high quality clothing is slowly diminishing as a result of increased consumerism.

I would have to disagree with this statement, simply due to the fact that Lululemon is a brand that truly understands and appreciates its clientele. Ever since launching in 1998, the company’s main priority has been the quality of their products. Alongside their unique image and brand, these factors differentiate Lululemon from its competitors. The brand itself promotes a positive influence in communities, focusing on healthy active living, and sending positive messages to wearers of their clothing. Mistakes are inevitable, numerous companies have made far worse errors, Lululemon should not be reprimanded for a slight defect if they are willing to rectify it.

Soon after the lawsuit the company recalled its top selling item and provided a full refund to customers, with a guarantee to tighten quality control. Aside from the implications Lululemon handled the situation with ease. Throughout the years they have built up a wealthy consumer base, therefore valued customers will remain loyal to the brand even in times of hardship. Overall, I believe that it is a company’s problem solving approach that reflects their true commitment to both customers and the industry as a whole.

Sources Used:
http://www.reuters.com/article/2013/10/01/us-lululemon-lawsuit-idUSBRE99016920131001

http://jg57.files.wordpress.com/2013/02/lululemon1.jpg

In an industry driven by competition it is easy to overlook the impact company’s actions have on society. This is where the topic of corporate social responsibility comes into play; by definition it is the corporate belief that a company needs to be responsible for its actions – socially, ethically, and environmentally. One would assume that industries prioritize such issues, and many companies claim to, but actions always speak louder than words. Tim Horton’s is one of the few exceptions; throughout the years they have adapted their business model to suffice the needs of individuals, communities and the planet as a whole.

In 2013 they were part of Maclean’s list of the ‘Top 50 Socially Responsible Companies’, for their initiatives in the social, ethical and environmental sector. In 1974 the company established ‘The Tim Horton Children’s Foundation’ which provides camp experiences to children coming from disadvantaged homes. The company has also recently launched ‘The Tim Horton’s Coffee Partnership’. This program enables small scale coffee farmers in developing nations to improve both their business and lives though the economic and social support provided.

Finally to reduce their environmental footprint, Tim Horton’s redesigned all their packaging to consist of fully recyclable materials. Currently 69% of waste is made up of organics and only 7% is not recyclable, far exceeding other food chains. By taking the appropriate measures, Tim Horton’s is now operating on the basis of corporate social responsibility. These are the types of companies that drive our world to a more sustainable future.

Sources Used:
http://sustainabilityreport.timhortons.com/index.html

http://www.timhortons.com/ca/images/general/matd-landingpage-banner-april2012-en.jpg

A Vancouver based company called ‘Lush’ has taken the industry by storm with their unique fresh handmade cosmetics. They offer a variety of luxurious products such as their infamous bath bombs and shampoo bars, all created by real people. With the number of cosmetic manufacturers flooding the market, Lush’s strategy to remain competitive lies in achieving their mission statement. The company’s main focus is to generate a product that is both environmentally sustainable and produced in an ethically sound manner.

Their competition consists of brands such as ‘The Body Shop’ and ‘Kiehls’, all of whom provide a similar product to consumers. As a result, Lush has based their point of difference around their efforts to promote ethically sound practices both inside and outside the store. These include only using organic and vegetarian ingredients, testing on humans rather than animals and little to no use of preservatives or packaging. These ideologies have helped develop the strong relationships shared between their employees and customers.

With a growing number of options available in the current market, consumers have an immense amount of buyer power, though a large number continuously return to Lush solely due to the experience and optimal treatment they receive while shopping. It is no wonder the company remains one of the fastest growing in the industry today.

Watch: A Lush Life, We Believe – Lush Cosmetics .

Sources Used:
http://www.lush.ca/A-LUSH-Life/we-believe,en_CA,pg.html

http://livealittle.tv/wp-content/uploads/2012/09/lush-logo11.jpg

Bill Gates, founder of software giant Microsoft started to face scrutiny from three investors who collectively hold 5% of the company’s stock. The individuals persist on lobbying the board of directors so that Gates will resign as Chairman of Microsoft and assume a lesser role within the company. According to the investors, Gates’ primary focus is on his foundation, which often averts his priorities and commitment towards his team. They believe that him being the largest individual shareholder and owning 4.5% of all shares, puts the company at risk because of his dominating perception.

Microsoft is already searching for new management as Steve Ballmer, current CEO recently announced his retirement. The investors feel as though Gates will pose a threat to the company’s growth as he is very wary about adopting new strategies. They are especially concerned because if chosen by Gates, these same qualities will be apparent in the new chief executive. As of right now there is little indication that the board will take action in regards to the investors concerns because of his sheer power and influence within the company.

Personally, I am a strong supporter of Bill Gates; he is a remarkable man who revolutionized the software industry. He is the reason Microsoft has grown to be one of the leading player in the market, with a net profit of $22 billion within the last fiscal year. Only few people can achieve this magnitude of success and therefore should be valued.

Sources Used:
http://ca.news.yahoo.com/exclusive-microsoft-investors-push-chairman-gates-step-down-004812025.html

http://cdn.cultofmac.com/wp-content/uploads/2013/01/bill-gates-evil.jpg

As noted in Meggie Liu’s blog, Coca Cola’s marketing and advertising campaign has increased both the company’s sales and brand recognition. They spend over $3 million on television, radio, internet and print ads in order to increase their popularity and maintain top of the mind awareness. Those who manage the financial resources within a company tend to allocate a substantial budget to these activities as it is part of their cost structure.

In her blog she mentioned that Coca Cola comprehends that their product has numerous substitutes, one being soft drinks produced by their largest competitor, Pepsi. The rivalry between these two soft drink tycoons has lasted for what seems like an eternity, though the pressure only escalated after Pepsi introduced the ‘Pepsi Taste Challenge’ in 1975. This unique advertising technique quickly increased Pepsi’s dominance within the soft drink industry, putting them at par with Coca Cola.

In order to gain a competitive advantage both Pepsi and Coca Cola have diversified their product line to include other types of beverages, Pepsi even emerged into the snack food industry acquiring brands such as Lays, Ruffles and Quaker. The efforts put forth by these companies in order to maintain market share proves that competition does in fact foster growth.

Sources Used:
http://www.businessinsider.com/soda-wars-coca-cola-pepsi-history-infographic-2011-11?op=1

http://indolinkenglish.files.wordpress.com/2010/03/pepsi_vs_coca_cola_by_attarzi.jpg

Consumer electronics company, Sharp has made a name for themselves in the technology industry by producing state of the art television sets. On the surface it may appear as though the company’s sole focus in on electronics, when in fact Sharp initially launched their business selling mechanical pencils. It appears quite odd that a business can shift from producing pencils to television sets.

The company is now looking to expand into the strawberry market. Yes, you read it right, Sharp is moving into the farming sector. They plan on increasing their agricultural operations in Dubai by supplying Japanese strawberries. The demand for their strawberries is rapidly increasing in the Middle East, a consumer need left unfilled. Their rationale on making such a drastic decision is in response to their lacking sales in the electronic industry. Even though their sales are steadily increasing, the company is finding it difficult to compete with other technology titans. By tapping into the strawberry market, Sharp has the ability to use their technological capabilities to reinvent the entire sector.

Although the idea may be farfetched, Sharp scores high in terms of innovation and creativity. Not many other companies are willing to take such risks and expand their product line this dramatically.

Sources Used:
http://www.businessweek.com/articles/2013-09-27/forget-tvs-dot-sharp-sees-a-future-in-strawberry-farming#r=hpt-ls

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In recent news, after receiving immense scrutiny from a consumer based group called “Let toys be toys”, one of the world’s largest toy retailers, “Toys ‘R’ Us” pledged to remove explicit gender references from their U.K based marketing campaigns. As noted by sources such as the U.K’s own ‘The Independent’ and the ‘Huffington Post’, the organization is dropping gender labelling as activists believe it is unnecessary for toys to be specifically targeted towards a certain sex.

Megan Perryman, a campaigner of the consumer group expressed her concern that by only exposing children to toys aimed at their gender will eventually limit their thinking and stereotypically shape their principles. This brings upon the ethical issue of sexism and how it is forever present even in matters as innocent as child’s play. No child should be compelled to prefer a certain toy simply because it is aimed at their specific gender.

As an organization, Toys R Us should realize this and thus move forward in their campaign, enacting new marketing efforts which appeal equally to both genders. If they are successful in doing so, it will reflect the company’s strength in meeting the growing demands and changing ideologies of their consumer base.

Sources Used:

http://www.independent.co.uk/news/business/news/toys-r-us-to-stop-marketing-its-toys-by-gender-in-wake-of-sexism-claims-8798959.html

http://www.huffingtonpost.com/2013/09/08/toys-r-us-uk-gender-marketing_n_3890599.html

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