06Apr / 2013

Reflecting on the Four P’s

As an aspiring accountant, I went into this course with barely any idea of what Marketing was, but I exit with knowledge and principles that can be applied in my daily life. The marketing assignments were not something that I looked forward to initially, since success is largely dependent on whether you’re lucky enough to be placed in a hard-working group or not, but it turned out pretty okay in the end (and they really complemented my study routine). I learned about the importance of conducting a situation analysis, using correct STP, and strategies surrounding the four P’s have enhanced my analytical skills while causing me to apply concepts everywhere (especially when atmospherics are involved as I walk into a store like Hollister Co.).

Open communication was the best way to resolve conflicts, and I’m glad that my group was always willing to discuss ideas and opinions. I learned to stress less when parts weren’t submitted at chosen deadlines (which were much earlier than the actual deadline), because I knew that everyone in the group wanted to succeed at the end of the day, and our assignments were eventually ready to submit prior to the due date. Most importantly, I learned to compromise more than ever before, which also helped reduce stress levels (this applied to the case where our final video exceeded the time limit, but I realized that the most efficient thing to do was agree with the majority and simply accept this reality). As someone with virtually zero editing skills, I was really happy with how the video turned out, and it was truly a team effort!

I’m not sure what I would do differently next time, but I do know that I have gained a bunch of takeaways from this course. My top takeaways are the “Sales Process” (perfect for recruit season), the various examples involving “Robeez”, and the importance of market research prior to engaging in promotional activities (particularly useful for event planning). This really turned out to be hands down one of my favourite courses this year [thanks Tamar ;)].

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01Apr / 2013

It’s that time of the year again…

Seeing as today is Easter, I thought that it’d be most appropriate to talk about one of my favourite treats: Cadbury Mini Eggs! There’s always an influx of Easter treat related commercial advertisements on television stressing that consumers need to “get them before they’re gone” (particularly with Cadbury Creme Eggs, the eggs are personified and literally explode during each commercial to emphasize the limited time nature of their existence).

As someone who isn’t a huge fan of chocolate (Chocoholics, you may gasp), I have recently developed an odd craving for mini eggs. Perhaps its to do with the constant advertising that I’m exposed to, but I did not have the will power to resist the temptation of those tasty little eggs. When we discussed distribution intensity in class, I was so sure that mini eggs belonged on the relatively exclusive side of the continuum. However, I quickly realized that mini eggs are intensively promoted and distributed everywhere when Easter nears, although they due have a limited window of availability. From store brand versions, to even the UBC Bookstore, mini eggs are everywhere!

Despite being intensively distributed during Easter, the fact that these mini eggs have a limited time of availability allows producers to mark up prices ($1.99 per small bag of 42 grams) due to relatively inelastic demand from consumers. Another interesting note is that Hershey’s is the parent company of Cadbury, and also sells a brand of mini chocolate eggs called “Eggies“.

Ever since I could remember, I have had an attitude that Cadbury represented the highest quality of chocolate (relative to other widely available chocolate brands, including Hershey’s), and actually refused to purchase Eggies despite its lower price. This just shows how effective Hershey’s has been with their marketing strategy, leveraging the brand power that each of its products have. I have certainly enjoyed my portion of Mini Eggs, and I can’t wait until next year. Perhaps I’ll give Eggies a chance now that I know that they’re from the same company!

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18Mar / 2013

The Feed – An Online Foodie Community

Doesn’t this make your mouth water?

I watch cooking shows whenever I can, and one of my favourite PBS shows is America’s Test Kitchen. Basically, every episode has a theme (such as potatoes) and the chefs work hard to test recipes until they’re consistently “perfect” (factoring time, complexity, and number of ingredients). Check out this video for an amazing Potato Galette recipe. They do a fantastic job of effectively simplifying recipes (via demonstrations and using substitutes such as gelatin instead of braised beef bone) so that viewers don’t need to work so hard to decode the original chef’s message.

I finally decided to check out their blog, which is appropriately named “The Feed“, and I love how user friendly it is with large buttons and a clean display. I also think that community aspect of the blog is extremely well done, because the posts add value to its users (such as through tips and tricks gathered over the years) and encourage participation.

Edible Stained Glass

Another cool aspect is called “Foodles” which are, you guessed it, food related doodles (particularly that links to an infographic about cakes). This really aligns with America’s Test Kitchen’s objectives of educating and helping cooks of all ages and skill levels in their pursuit to satisfy their foodie cravings. Most importantly, their tantalizing images do an amazing job at affecting their target market’s physiological state (I’m getting hungry as I write this post).

Mmmm… Pizza

Although there’s a lot happening on this blog, I feel that the clean layout makes it easy for users to digest (particularly the live Twitter feed, which is something that I usually find to cause a website to become too busy). Following the AIDA Model, the television show provides awareness for the blog along with garnering interest, the tips engage users, and lead to their eventually trying out new recipes. I’m definitely bookmarking this blog!

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04Mar / 2013

“My Starbucks Idea” – Share. Vote. Discuss. See.

As a typical Starbucks fan, I became excited when I read Annie’s post (here), where she effectively describes the communication process which is demonstrated in the “Ideas in Action” blog. Aside from the service oriented approach that Starbucks employs with its baristas creating hand-crafted drinks for customers, this blog allows consumers to voice their ideas about anything Starbucks related, and highly popular ideas are often implemented in stores. One great example is to put names of customers on all beverage cups, a practice now adopted by every Starbucks I’ve visited in recent years. Not only are customers more likely to respond to the barista when their drink is ready for pick up, but the feeling that each drink is made personally for you is surely something that positively affects Starbucks (despite having a high density of store locations).

I agree that Starbucks acts as the sender and often uses the Internet as their communication channel (due to the high level of exposure it has with their target demographics of students and professionals), but what’s more important is the consumer involvement that exists on this blog. Various blog writers (who are employed by Starbucks) transmit their messages to consumers in the form of product endorsements, or simply promotional information.

In Annie’s post, she talks about the “Inside Story of Starbucks’ Tribute Blend” which chronicles the life of the coffee beans associated with that blend, and the journey that is accounted allows readers to better understand a bean’s path to their delicious cup of joe. By educating consumers, Starbucks is utilizing informational appeals, which increases the probability that those highlighted products will be purchased since it provides explanations for what benefits those products provide (such as the distinct taste of aged Sumatra coffee). After all, as mentioned in class, people don’t buy features, they buy benefits.

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25Feb / 2013

Adidas Badminton: The Next Yonex?

As with any other sport, some established brands in badminton include Yonex and Victor. Badminton is a sport which tests athletes both mentally and physically, and a change in playing equipment could potentially improve your game play. This is often due to the quality of grip placed on the handle, string tension, and racquet balance (i.e. is the weight of the racquet’s head in equilibrium with that of the handle?); something that I consider to be a science that the aforementioned companies have somewhat perfected over the years. It is therefore no surprise that there is a strong emphasis on equipment technology, when companies promote their products through advertising (mainly on their website).

Maybe it has something to do with the mental aspect of playing the game, but I have always preferred to use Japanese made Yonex racquets. Along with the brand equity that Yonex holds, I question whether Adidas’ attempt at diversification through penetrating this highly competitive industry (which is mentioned in this article) aligns with their company goals.

In compliance with the technology focused advertisements in badminton, Adidas’ lack of badminton experience will likely cause consumers to question the quality of their product (even if there actually aren’t any issues), and therefore become unwilling to pay prices equivalent to well-established brands. I feel that this story highlights the role that attitudes play in consumers’ decision processes; when evaluating alternatives for buying a new racquet, one certainly doesn’t think of Adidas. However, the company is trying to appeal to the target segment of younger fans and athletes by partnering with Viktor Axelsen:

https://www.youtube.com/watch?v=IfgNCZb7BQc

Currently, I’m unable to watch the video without feeling a bit odd; seeing Adidas on a badminton court is still too foreign for me. However, if they prove that their products are excellent, they may succeed over time.

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04Feb / 2013

“Every Story Starts with a Reservation”

Tourism Vancouver has truly succeeded in creating an event that foodies near and far can look forward to each New Year: the annual Dine Out Vancouver Festival. With an increasing roster of participating restaurants (231 and 241 in 2012 and 2013, respectively), the festival allows consumers to enjoy three-course meals at three affordable price ranges: $18, $28, and $38.

The beauty of this festival is that these menus are unique to Dine Out Vancouver, and individual items are guaranteed to be priced cheaper than listed on regular menus. It is this unique promotion that Tourism Vancouver uses to help market and encourage consumers (including non-foodies) to try out new restaurants, with relatively low monetary risk involved. However, 2013 marked a bigger, and better festival, complete with a separate event for food carts, and increased partnerships with local hotels.

I think that this marketing campaign to promote Vancouver restaurants is genius; the excitement generated by the foodie community acts as free advertising of the event, and likely leads to many first time visits to restaurants that have an expensive reputation. Once having experienced the quality product that participating restaurants offer, consumers will remember the great food (affecting their benefits usage rate), along with the great deal that the festival offered. The result is increased motivation for consumers to visit Vancouver restaurants, even after the festival period, and perhaps to further take advantage of other food and entertainment the city offers.

The slogan of the festival is “Every story starts with a reservation”, and I think that the inviting feeling that is conveyed by these words helps to show consumers that Dine Out Vancouver is about getting together with friends and family to enjoy great food. After all, cheap food items can be found in abundance, but great times with loved ones are priceless. It is this message that allows Tourism Vancouver to truly touch the psychographic aspects of consumers including attitudes and lifestyle routines, and the reason for Dine Out’s 10+ years of success. I can’t wait for 2014’s festival to come around!

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20Jan / 2013

The Subway “Footlong” Crisis

As an avid foodie, I love food of all forms; be it fast food, slow food, and everything in between…as long as it satisfies my taste buds. Coming across this article, which talks about how a man exposes Subway’s marketing mishap, it makes me question how powerful habitual decision making is.

I’m sure many consumers, including myself, are so accustomed to buying a $5 Footlong that they have never questioned the validity of the product’s name. Further, although I haven’t measured a Subway sandwich before, the fact that consumers always had the option of accidentally exposing the Footlong’s flaw proves that this was a risky advertising strategy to begin with. To make things worse, the growth of social media platforms has allowed the picture shown above to become viral amongst Subway’s fans and critics alike. Due to this false advertising, Subway’s credibility is undeniably tarnished in the eyes of consumers.

Fortunately, the fact that Subway satisfies physiological needs prevents this mishap from damaging the company’s healthy image in the long run, and it is this aspect that the company should focus on stressing for their future marketing campaigns. I think that the monkey and Subway Eat Fresh campaigns related to healthy breakfasts and eating were very successful in portraying the company as a healthy choice for consumers. Moreover, Subway’s low prices, in comparison to competitors such as Quizno’s, has made it a go-to choice for thrifty consumers. Due to these aspects, and perhaps more promotions on Subway’s part to compensate for this mini crisis, it shouldn’t be long before the company bounces back. Something along the lines of the “Customer” appreciation month ($3 for a “6 inch” sandwich) would certainly be welcomed by consumers.

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09Nov / 2011

Apple takes the cake… again.

Although clichéd, when I think of entrepreneurial, the first company that comes to mind is definitely Apple Inc. With their vast array of innovative products that have consumers lining up over night during a product launch, it’s clear that Apple has been very successful.

Initially selling only Macintosh computers, Apple has grown into a company that houses iPods, iPod Touches, iPhones, and iPads. With the launch of each new product, Apple has proven that innovation is the key to their company’s continued success. Furthermore, their continued innovation has resulted in the creation of new markets as well as patented production methods.

Compared to a small business-owner, Apple strongly displays the criteria of an entrepreneur given by QuickMBA:

Amount of wealth creation
Speed of wealth creation
Risk
Innovation

There’s no doubt that Apple excels in the innovation category, but the company also began with a high level of risk involved. As one can’t predict how consumer’s tastes change, new products always run the risk of not being demanded. However, despite the expenses incurred through the first generations of each of Apple’s products, the company has exceedingly become successful in generating millions of dollars in profit in short amounts of time.

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02Nov / 2011

Happy Employees = Profit = Happy CEO

Recalling yesterday’s class, Zappos.com was the case study used to understand the importance of having a strong organizational culture. Due to the company’s consistently positive employee feedback, Fortune has named Zappos one of the best companies to work for, since 2009.

I define organizational culture as a set of values adopted by an organization, which are consistently shared by its members (or employees). Thus, it’s vital that employees are in agreement with a company’s mission statement. If not, employees’ incentives will lie outside of the company’s motivations, thus leading to inefficiency.

As Zappos was placed #6 on the list this year, I began researching the company that topped the list for two years in a row; SAS. Even today, “SAS continues its 35-year history of growth and profitability.”

Recently, a Stanford professor estimated SAS (Statistical Analysis Software) to be saving “$60 to $80 million a year…in not having to replace people.” Furthermore, the company has stayed private, despite holding a, “35-year track record of revenue growth.” By providing a “900-acre campus” housing a health center, different recreational fields, and even a salon, it’s no wonder that SAS has been able to warrant an employee turnover rate of less than 4%.

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