Month: November 2010

Nike is my favorite brand of running shoes. I was attracted by Nike’s advertisement in the “responsible marketing” blog’s April 8th, 2010’s post. I think this advertisement is effective because of its building of the brand power. Even though the video itself will not make a person turn off the computer, drive to the store and buy something from Nike, what it will do in many people is stir an emotion. The emotion will be different in each person, but when one is standing at the local sporting goods store with Adidas running shoes to their left and Nike running shoes to their right, one will likely be driven to purchase either by subconsciously weighing price value or emotion.  The person may not associate this spot with the Nike purchase decision but very likely the they will go with the Nike running shoes because they stir some sort of intrinsic reaction, even though it’s not entirely positive. I’ve been thinking about this Tiger Woods Nike video all day. And that, from my perspective, is effective marketing and good brand building.

I am a very up-to-date person and I am planning to buy a iPad for my a gift to myself. I really like the following iPad commercial, which shows the magical aspect of iPad.

Although Pizza Hut’s pizzas have better taste than Domino’s pizzas, I prefer Domino’s Pizza because of the lower price and the efficient delivery service. Last Thursday, I was very sick and I called Domino’s Pizza for delivery as there was no food in my house. I was a bit surprised that Domino’s was open on Remembrance Day and their delivery was exactly on time. While I was enjoying the delicious pizza, I was attracted by one of Domino’s commercials on YouTube. In the advertisement, Domino’s read some actual customer quotes: “Domino’s pizza crust, to me, is like cardboard.” And: “The sauce tastes like ketchup.” Then Domino’s explained that they’ve reinvented their pizza — thrown out their old rule book and made something completely new.

I enjoyed this commercial very much and I think that the Domino’s campaign is brilliant. The advertisement is honest, sincere, novel, and very funny. Domino’s was criticized by being a low-quality product. To reinvent themselves, it is necessary to address their poor image head on, so they can then give credibility to their proposed changes, which is the new recipe.

In general, trashing one’s products is a bad and dangerous idea. The risk is that the customer gets an idea that at some point, some aspect of the product was inferior. But in the case of Domino’s, this marketing strategy works well because Domino’s built its business on convenience based on a delivery promise, not a taste promise. In the past, they were the only national chain in the delivery game. And they grew and grew. Their success awoke the sleeping giant, Pizza Hut, who had a better product and now offers delivery as well. So Domino’s had no choice. They needed to improve the product to compete effectively. And the their taste inferiority makes the credentials and credibility reasonable as they’ve made serious changes to get taste affirmation with doubters.

As the marketplace keeps moving, it is crucial for entrepreneurs to follow it closely and be responsive to being the best at what they do at all times. Domino’s did a fantastic job and that’s why I think Domino’s marketing strategy was brilliant.

It is a tradition for me that the midterm week is usually followed by the shopping week. Last week, after finishing all my midterms, I went shopping with my friends at downtown and we shopped at our favorite clothing stores, such as Guess? , Zara, bebe, and so on. It is always Zara that delivers a view of the latest fashion to me and I am amazed by its product variety and speed-to-market. I firmly believe it is the efficient distribution system, multiple locations of stores, and high quality employees that quickly make Zara one of the most famous clothing brands.

I found it interesting that Zara does not advertise in the traditional sense. If we want to find out what’s currently available at the Zara stores, we have two options: go to the web site or go to the store. The fast distribution system is a key factor in Zara’s success. I heard from the staff that Zara puts 10,000 different items on the store shelves in a single year. It can take a new style from concept to store shelf in 10-14 days in an industry where nine months is the norm.

The location of Zara stores also makes an influence on the brand. In its primary European markets, Zara locates its stores close together. Visitors comment that Zara in Madrid is like Starbucks in a major U.S. city—you see another store on every street corner. The stock changes often, with most items staying on the shelf for only a month, so the customer often finds something new and appealing. By the same token, if the customer finds nothing to buy this visit, the store’s regular customers know that tomorrow or next week—sometime soon—new goods will be on Zara’s shelves. That makes it worth another visit.

Last but not least, Zara relies heavily on store employees for market information. Last year, when I looked at a sweater and commented, “That would look really nice with a cowl collar,” an employee may relay that information to Spain where managers decide whether or not to produce the suggested item. If they decide to make it, they can put it on the shelf in Vancouver in two weeks or less, partly because they ship by air. Ocean shipping would add at least another ten days to the time it takes to get the product in front of the customer, undermining the speed-to-market and product variety strategy.

All in all, I like Zara very much. Do you want to keep up with the fashion trend, too? Try Zara!

Coffee is my best friend during the midterm weeks and the coffee at Starbucks is my favorite. I like Starbucks, not just because it has perfect coffee with rich, delicious taste aroma, but also because it creates a unique, relaxing, and cozy experience and atmosphere at every store. I enjoy the smile on the barista’s face, and I appreciate the customer service there. It makes me feel that I am an important customer to them.

The Starbucks’ marketing strategy has led the company to its current success. The company has created greatly individualized marketing techniques to fit the promotion of the Starbucks brand as it applies to the unique concept it was built on. I totally agree with Oliver when he said that the Starbucks Mug has a profound marketing effect on Starbucks consumers. From what I have observed, besides the “Mug Marketing”, Starbucks carries out “Brand Marketing”. The Starbucks marketing strategy has always focused on “word-of-mouth” advertising and letting the high quality of their products and services speak for themselves. Moreover, the Starbucks marketing strategy has even expanded to create a community around their brand. On their website, individuals are encouraged to express their experiences with Starbucks history, and the company strives to “personally” join in the discussions.

It is important for a company to have products with premium quality. However, it is the marketing strategy that a company uses makes it more successful. This is what I have learned from Starbucks marketing strategy.