Burberry, a British luxury fashion house, has turned to technology in pursuit of luring its customers back and reversing its declining sales. The company warned investors that annual profits would be “at the low end of expectations,”[i] and subsequently, its share price plummeted by 18%. Burberry’s CEO, Andrea Ahrendts, has decided to create garments “fitted with interactive screens and RFID (radio frequency identification) tags.”[i] This will permit customers to view the production process by simply flashing their clothes in front of interactive screens.

Ms. Ahrendts’s decision to grow her company through incorporating high-tech gadgets in its product line is a brilliant tactic to get attention from potential customers and promote the brand. Due to global economic slowdown, luxury goods have become less appealing to the general demographic. However, the company, with 450 stores in over 50 countries[ii], is wisely adapting to the constantly changing environment. Burberry’s new strategy will add value to its brand and entice the technology-savvy generation to acquire its products.

For many Canadians, grabbing a cup of coffee from Tim Hortons is a daily morning routine. Passing by Tim Hortons after Thursday’s lecture on marketing and brand positioning let me pose a question. How does Tim Hortons successfully differentiate themselves using its points of difference? Tim Hortons serves home-style soups, such as Beef Lasagna Casserole and Hearty Potato Bacon, served in china (depending on location) as opposed to disposable containers. The consistency Tim Hortons offers means that you can walk into its shop knowing exactly what to expect.

“The chain’s biggest drawing card remains its legendary Tim Hortons coffee.”

(source: Tim Hortons)

Tim Hortons’ tradition, history, and hockey roots provide their customers with a sense of national identity and pride. Successful marketing of the points of difference is a result of Canadians having the words, “timbit” and “double-double” in their vocabulary. Its success is also due to their ability to adapt to the demands of consumers and changing trends. When the first Tim Hortons opened, it only offered two products- coffee and donuts. Consumer tastes grew with time and Tim Hortons diversified its menu by introducing muffins, cakes, pies, and cookies; while, offering healthy snack wraps. Successful brand positioning developed from its slogan, “always fresh,” which plays a significant role in marketing the company’s emphasis on providing fresh, top-quality products to its customers. Value and affordability remains a fundamental focus of its strong brand identity. In essence, its contributions to the community and distinct points of difference have allowed Tim Hortons to become Canada’s most successful coffee chain.

To learn more about the leadership efforts of the company, please visit: http://www.timhortons.com/us/en/difference/index.html

Photo Credits:

Oleniuk, Lucas. Tim Hortons. 2011. Photograph. Toronto. Thestar. Toronto Star, 4 Feb. 2011. Web. 24 Sept. 2012. http://www.thestar.com/business/companies/timhortons/article/933574–tim-hortons-to-open-120-outlets-in-middle-east.

A kiwifruit supplier in New Zealand has been warned for breaching the Fair Trading Act by misleading customers into thinking that they were buying New Zealand pollen when it was imported from Chile. The company repackaged the pollen from Chile, and attached the label, “Kiwi Pollen New Zealand” to their product before it was supplied to consumers. Allegations were made that the imported pollen let the kiwifruit vine killing disease (PSA) into New Zealand, but no conclusive evidence was found. Due to the lack of proof, the Commerce Commission decided to warn the company rather than prosecute.

“In fact Kiwi Pollen’s website continued to give the impression that all of its pollen was collected from properties in New Zealand,” she said.

(Source: Bay Of Plenty Times)

Although neither competitors nor consumers suffered any provable loss or harm, this article epitomizes an ethical issue that arises when marketers fail to disclose risks associated with their product. The company is conducting unethical behaviour through deceptive and disingenuous advertising about the place of origin of their product. The consequence of failing to promote responsible, strategic marketing brings into focus R. Edward Freeman’s statement that a company, “that doesn’t pay attention to the issues of corporate responsibility [is] a business that is soon to be regulated into decline.” The company’s decision of ignoring stakeholder demands for responsible marketing can obliterate the trust of their customers and decline sales. Instead of deceit, the company should have focused on maximizing its positive impact on society and executing socially responsible actions that can generate positive publicity and boost sales. The deceitful action performed by the kiwi company highlighted the importance of ethical business behaviour for the success of a business.

Learn more:

http://www.bayofplentytimes.co.nz/news/local-company-warned-deceit/1539773/

What is Stakeholder Theory?- R. Edward Freeman:

https://www.youtube.com/watch?v=bIRUaLcvPe8&feature=youtu.be

Photo Credits:

Watt, Peter. Kiwi Fruit Anthers. 2012. Photograph. New Zealand. Bay of Plenty Times. APN Holdings NZ Limited, 11 Sept. 2012. Web. 12 Sept. 2012. http://www.bayofplentytimes.co.nz/news/local-company-warned-deceit/1539773/.

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