Reflection 1

It’s the start of a new term and my blogs for the next few months will be inspired by new design strategies and thought processes developed through the Sauder d.studio course. To compare my thinking before and after the next 4 months, I’m going to begin by analyzing my thought process now. In April, I will reflect back on how my thought process has changed and hopefully evolved.

In his article, What Good Does Design Do For Business?,  Thomas Lockwood recommends that businesses should invest in a strategic design process that creates the five areas of what he calls the new Design Mix: creative collaboration, innovation, differentiation, simplification, and customer experience.

Simplification.

In an era where we’re a fast-paced, time-crunched society, we are surrounded by daily complications of our careers, our education, technology, and life. Yet, I have come to realize that we are also culprits of continuously feeding into this vicious cycle.  When we now look at solutions to problems, instead of looking for a simple “quick-fix”, we often think that a solution must be complicated to solve a complicated problem. I’m guilty of this as well. From my experience, overnight cold medicines never works the night before an exam, cheap “quick-fixes” for cars never end up well, so why should I believe that business solutions are any different? I’ve come to realize we need to get back to the basics. Being an avid athlete in high school, this is something our coaches would always remind us to do. In a business sense, the basics of 2013 is design. You pay attention to how you create a solution with what is around you.

I could really improve on this. I feel like sometimes as a student, you’re trapped in a mindset that “more is better”. When we write an essay that has a five page limit, we try to write to the bottom of the fifth page. When you’re asked to come up with three interesting facts, you come up with five. But in reality, we really should be focusing on “less is more”. I really need to learn to step back, pinpoint my problem, and look at how I can most effectively create a simple yet effect solution.

Roger Martin also proposes another very interesting thought on Design Thinking. At the AIGA Make/Think Conference in Memphis, Texas in 2009 – he presented the following visual:

In my opinion, I view the left as the “Safe Zone” , and the right as the “Danger Zone”. The left, is what is most dominantly found in businesses today: strategies that are reliable – but not necessarily useful. Over the two months, my goal is to challenge myself to head towards the right side of this spectrum – the “Danger Zone”. As I’m writing this – I already see a problem.

Creativity shouldn’t be seen as danger. We associate being creative and thinking outside the box as being risky – when in reality, it shouldn’t be.When thinking of trying to influence consumer behavior, we often apply theories that have been “proven”. Contrarily, Roger suggests that the words “Prove” and “It” are two words that will never lead to innovation.

However, my end goal is to land somewhere in the 50/50 mix – the “Design Thinking” zone.  I feel that it’s important to live through the extremes of both the “Business People” and the “Designers” before one can then reflect back on the two experiences and realize where the middle point is. Finding a balance to these two polar opposites and embracing a new way of business strategy thinking will be a rewarding challenge.

Foursquare for free food?

Don’t get too excited yet, unless you’re big on dog food.

But first, what is Foursquare?

Foursquare is a popular website that allows users to “check in” at places they are and earn points to unlock badges. The application has platforms on smartphones, check ins through texts, and real-time updates on Facebook, Twitter, etc.

TechCrunch has an article that talks about the benefits towards businesses that engage their customers with Foursquare. Companies offer free drinks for those that check in a certain number of times or reach a certain ranking (ex. “Mayor of ___”). A great pull promotion strategy for many restaurant – type businesses.

However, most of us only recognize Foursquare as a medium to other companies, and have had little if any actual reward from Foursquare itself.

An article on AdFreak sheds light on a cross promotion between Foursquare and GranataPet (a German pet food company). In short, GranataPet has set up billboards that urge users to check in on Foursquare, which then triggers for dog food to be dished out for your four legged friend to enjoy.

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As GranataPet themselves put in their video, they want to catch the attention of their “target group” while also giving the pets something to enjoy. Not only that, but the interactive billboard also attacks all steps of the AIDA model. The large colourful billboard attracts its customers/target group, then they are interested to check in on Foursquare to see what will happen. Their desire/action to do so thus lets their dog have a free sample. The owners watch as their dogs are enjoying the treat and might go straight to a shop to buy the food that they seem to like so much!

Looks like GranataPet has successfully leashed their customers!

Although I’m a loyal Blackberry user, I must say that Apple has proposed a very appealing alternative market over the years. The 2010 Apple talk has revolved around the FaceTime technology that is now compatible with iPhone4’s and the 4th generation iPod Touches. My friend Mandy breaks down one of the iPhone4 ads in her blog: here.

However, like I mentioned, I’m a loyal Blackberry user, but still wanted to test out the new technology, so I did some information searching to find out what the new iPod Touch had to offer.

and then I found it.

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all kinds of fun.

What’s fascinating about this ad is that all kinds of fun also means all kinds of segmentation, targeting, and positioning that Apple has to do in one ad.

In segmentation, Apple tries to reach across many different aspects of the demographic segment, for example, it tries to appeal to different age groups with different games and apps being displayed. The psychographic and behavioural segments are reached as well.

Apple itself as a brand has a highly differentiated/multi-segmented target. However, the iPod Touch and this ad specifically aims to use an undifferentiated targeting approach. This is ONE product that can cater to anyone.

Lastly, positioning. Apple as a brand itself has positioned itself on the high spectrum of many characteristics – innovation, sustainability, level of technology, different products, to name a few. The iPod Touch does the same. The ad stresses that this one product can be good for everyone, and as well, highlights all the technological aspects of the product as well. By being able to meet different preferences, Apple hopes to leave consumers/ad viewers with a “high ranking perception” of the product and thus positioning themselves in front of their competitors.

Nikon: Coolpix for Cool Pics

I’m a big fan of a website called The Cool Hunter:

http://www.thecoolhunter.net/

A website that finds the “coolest” things-including ads. I first found the ad in 2009, but it’s always been one of my favourites because of the incredible marketing strategies behind it.

The ad by Nikon featured an interactive, life-sized billboard of a mob of paparazzi waiting alongside the red carpet. For those wanting to live the lifestyle of the rich and famous, here is your chance.  Located in a central subway station in Korea, anyone passing the billboard triggered an instant bombardment of camera flashes. The red carpet then led straight into a camera shop – what a coincidence!

http://www.thecoolhunter.net/article/detail/1570/nikon-d700-guerrilla-style-billboard

In our 2nd lecture, we talked about the importance of the value-based era. Companies now need to value their customers, and build a long-term relationship to create brand loyalty and recognition. Nikon does this by literally putting consumers into the spotlight,  making the average joe feel like an A-List celeb.

If we were to use a CDSTEP analysis to look at the macroenvironment, this advertisement is nothing but perfect! In terms of demographics, the ad can appeal to anyone and everyone. It’s an eye catcher to whoever walks by it, regardless of your age or sex; if you walk by something that flashes, you are bound to look. Although the ad is made specifically for the D700, it’s also an ad to generate brand awareness. You’re led to a camera shop, which is bound to carry multiple Nikon models . Depending on your economical status and your technological needs, you can then pick another Nikon camera that may appeal more to your needs.

In sports, it’s the stats that count and that stays true in business as well.

http://www.1001noisycameras.com/2010/07/nikon-grabs-the-1-spot-in-dslrsilcs-in-japan-h12010-revisited-real-story-canon-falls-off-a-cliff.html

You be the judge. The ad is from 2009, and in 2010 …

“and the black light doesn’t lie”

Seventh Generation cleverly uses online social media to allow its consumers to see the “true colours” of both their own, and their competitors’ products. Its most recent venture, the eco-friendly detergent lacking in optical brighteners, was firstly marketed by mom bloggers whom used a dark light to compare two shirts one of which was washed with Seventh Generation’s product, and one which was washed with that of a leading competitor’s (with optical brightener). Seventh Generation also provides their own demonstration, it begins at 1:03 in the video.

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As you can see, the black light doesn’t lie. It reminds me of CSI investigators using black lights to reveal blood trails that are left behind. In fact, Seventh Generation has been listed as a suitable brand for cleaning military uniforms so that they cannot be easily sought out in combat.

However, through all this strategic marketing, Seventh Generation has still generated less than 1% of the detergent market, while Tide holds an astounding 45%. Perhaps consumers believe that if their shirts shine under the dark lights, then it must shine under bright lights as well? In our fast-paced economy, encounters are brief, and first impressions are everything. Though it might not be the case in the military, having a bright shirt that stands out is often thought of as a good idea for an interview, a first date, or even just a stroll through the mall or the neighbourhood.

I thus counter their campaign of “she should glow, not her clothes” with

“when you look good, you feel good.”

Thus if our clothes don’t glow, then we don’t look good, which means…

Reflections

Here, I would like to share my mindmap incorporating all the takeaways that I have enriched myself with through the past four months in this business fundamentals comm 486g course.

However, the number one thing that I would want everyone to recognize is that the tools and applications that we learn, whether it be through experiences or classrooms or through others, are all applicable to many different scenarios. Something that you may have learned in class can easily be used in the real world, and a technique that you developed at work can easily be used in your studies.

As all businesses, or at least successful ones I should say, are flexible, they adapt to new situations and use their developed qualities to establish themselves in any predicament. We as business students must also learn to do the same. Be flexible in your thinking, in your actions, and in your career.

Think outside the box.

iPhone deck

At the beginning of the term, we considered the reasons that Apple was not concerned with the declining iPod sales. What we recognized was that the declining iPod sales but continuous high profits for Apple are an indication of teh loyal customers that have moved up the chain of Apple products. First an iPod user, then an iPhone user, then a MacBook user, and etc.

Why am I mentioning this?
I came across a Desk Phone Deck, a product designed for users to integrate their iPhones with an actual “home” phone type device so that users can get the same traditional feel of a full device, but still using the address book and apps of the iPhone.

This allowed me to come across another reason in which Apple should not be worried. Many other companies are banking off Apple’s success by developing devices and accessories for almost all Apple products – whether it be the phone deck, or cases, or stands, these companies are essentially bettering the quality and the dependability of Apple’s products, and in doing so, the customers are left with a better lasting impression of how useful their iPhone is, or how long their iPod has lasted.

So with that being said, Apple has little to worry because their product quality and brand reputation is easily being developed by other companies at no cost to Apple.

Businesses don’t lose when consumers get new items to choose

The success of Zara lies behind its awareness of the large profit margin that is created when many consumer choices are offered. More importantly, Zara uses an approach that many competitors do not.

http://planetgreen.discovery.com/fashion-beauty/images/2008-05/pile-donated-clothing-large.jpg

Each night, store managers of Zara take the time to

“scan through and collect the mountains of unsold items customers tried on without buying,”

in hopes of finding patterns to the items that have not sparked interests in their customers.

On the other hand, many stores make the mistake of rushing to replenish their floor with the items that have not left the fitting room, without realizing that they are constantly pushing out inventory that consumers have shown no interest of buying. Zara stays ahead of the game by finding the unwanted items, and pushing out new items to customers, and offering them new choices of things they might like. I work in retail myself, and I get sick of having to prep the same items over and over because they never make it out of the store. I can only imagine the disappointment that consumers face when they return to a store only to find the same items on the shelves that they have already rejected.