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Target Ups & Downs

I think we’ve all heard about Target buying out Zellers and finally coming to Vancouver BC, so I’ve been wanting to write a post about this for a while. Today I came across a short article about Target upsetting its Brooklyn customers – let’s talk about that first.

Target sure did offend its plus-size customers by its ‘mistake’ in the labelling of one of the dresses they sell. While the label on the smaller sizes of the dress read “Dark Heather Grey,” the plus-size version was called “Manatee Grey.” If you’re not familiar with what a manatee is, here is a picture of one below. FYI, manatee’s are often nicknamed “sea cows.”

And so, many Brooklyn customers were outraged by this labelling. Target spokesperson has already come out to apologize for their “oversight” and has removed the product from the company website.

Let’s hope Target doesn’t get off on the wrong foot and pull a silly mistake like that when it officially opens its 18 Vancouver stores in 2013/2014. Although I haven’t seen much marketing for Target thus far, I’m positive that the company will promote like crazy as the launch date of their stores approaches. I think Target already has a strong brand presence in Canadian consumers’ minds just because Seattle is such a short drive away from Vancouver. We know that Target is famous for its cheap prices and cost leadership strategy, but how will the company lure its target consumers from its already-existing Canadian competitors? I think direct marketing will be the most effective, such as having direct mail and coupons sent to consumers’ homes. Then, Target can ensure that people will know about their local stores and have an incentive to check the stores products out!

Source:

http://www.vancouversun.com/business/commercial-real-estate/Target+store+locations+announced/6923179/story.html

http://www.bbc.co.uk/news/world-us-canada-22044793

Since BlackBerry is such a hot topic this month, I was glad to see that someone had made a post about the new Z10 marketing campaign. On his blog (link here), Stephen He expressed his disappointment in BlackBerry’s expensive 30-second commercial that was aired during the Super Bowl. However, I actually think it was an effective way of marketing on BlackBerry’s behalf.

 

As Stephen mentioned, BlackBerry has fallen to 4th place in terms of share in the mobile phone market. Apple’s iPhone 4/4s/5 and Samsung’s Galaxy SII/III quickly replaced the BlackBerry Curve and Bold, and many people have inevitably forgotten about BlackBerry during their two-year delay of the Z10 release. Although RIM’s company name change and the launch of the Z10 did create a lot of hype, the Super Bowl commercial furthered the buzz by drawing in watchers’ curiosity.

In my Marketing class last week about promotion, Tamar introduced to us the AIDA marketing model – which stands for Attention, Interest, Desire, and Action. I think the Super Bowl commercial was successful in the “Attention” step because the commercial had an unexpected “plot” and it also had appealing effects and music. Most viewers probably expect smartphone commercials to introduce the awesome new features of the product immediately – but BlackBerry decided to play on people’s curiosity by showing things that the Z10 can’t do. In truth, 30 seconds is really not enough time to fully explain the unique features of the BlackBerry 10 Operating System – including the BlackBerry Balance, Hub, Flow, and Swift Key typing. So instead, at the end of the short commercial a one-line caption appears telling viewers to “See what it can do at blackberry.com/z10” which is like a call-for-action statement. Although it is not guaranteed that viewers will browse the BlackBerry website to check out the new phone, BlackBerry also released the “Keep Moving” commercial in February. This ad is 1 minute long as opposed to 30 seconds, and shows most of the new features of the Z10 (video below). I think those who watched the Super Bowl commercial beforehand would be more inclined to pay attention to other forms of BlackBerry advertisement such as this “Keep Moving” commercial since their interest and curiosity has already been provoked.

In summary, although the Super Bowl commercial was a bit superficial and uninformative, I think it was a valuable marketing strategy nevertheless and it certainly drew more attention to the Z10!

BlackBerry Keep Moving Commercial  <– Click here to watch the 1-minute long commercial (I’m not sure why the video won’t directly post, but here’s the link!)

Yesterday, I was studying in Birmingham with my friend when I noticed that he was intently watching his screen like no other. Intrigued by how focused he was, I peered over to see what he was studying…which turned out to be YouTube videos of the 2012 Victoria’s Secret Fashion Show. My first thought was how absurd he was for repeatedly watching this fashion show a good three months after it was broadcasted on television. My second thought was a realization of how strong and irresistible Victoria’s Secret marketing must be in order to tattoo their brand in the minds of people like my friend!

The Victoria’s Secret Fashion Show, aired in more than 90 countries on December 4 last year, is seriously the talk of the town. Here’s why:

  • It appeals to both genders. While women watch this fashion show to see the world’s largest lingerie retailer’s trends of the year, men watch it to see the most high-profile supermodels walk the runway. Furthermore, the VS Fashion Show always features the top entertainers in the music industry, with celebrities like Justin Bieber and Rihanna.  Online sales increase substantially around the time of the fashion show, and it is great timing as well – women can spoil themselves with their paychecks, and men can buy VS lingerie for their other half during the upcoming holiday season.
  • Victoria’s Secret Angels. The supermodels that Victoria’s Secret hires to be part of the fashion show are nothing but the best, and this show is known to be the gateway for models to launch their career in success. Who doesn’t want to see which lovely ladies will be the biggest fashion icons of the year?
  • Unique Themes and Costumes. Part of why the VS Fashion Show is so captivating is the amount of beauty and originality that goes into everything. 2012 had 6 themes: Circus, Dangerous Liaisons, Pink Is Us, Silver Screen Angels, Angels in Bloom and Calendar Girls (one costume for every month of the year). The Angel’s all wear “angel wings” at some point in the show too – it’s part of the tradition. The company piques on the consumers’ curiosities so well – although the public won’t get to see the lingerie designs until the actual show, rest assured that it will be sexy and glamorous (like the $2.5 million Fantasy Treasure Bra).

Source: http://raventools.com/blog/6-content-marketing-lessons-from-victorias-secret-fashion-show/

Today I came across the blog of Samantha Hartley (link here), which had a very interesting article about marketing trends for 2013. Ms. Hartley is the Direct Marketer at The Conference Board of Canada and also a Board member of Big Brothers Big Sisters Ottawa. She has a passion for PR, marketing, and personal branding, which are the topics that her blog revolves around.

In her post about “PR and Social Media Predictions for 2013,” she referenced  an article from PRdaily.com and also added her own advice and insights for businesses. I’ll briefly list out the six predictions again:

1. LinkedIn is the new Facebook – make use of LinkedIn to connect you brand and business to build relationships with customers, employees, and business partners

2. Government (and war) go social –  people are using social media more and more to learn about the world around them and to be updated on the latest news, so businesses should also take advantage of this trend to build their brand awareness

3. The reputable journalist is revived – although using social media is popular, businesses need to be careful when endorsing online information since the massive growth of bloggers has led to unreliable sources and misinformation

4. PR goes mobile – when publicizing via mobile, it is important to keep advertisements clear and concise

5. Pictures tell a story – it is crucial to embellish the business’ website and social media pages with lots of pictures to attract attention

6. PR wins the social media battle – consider hiring external agencies or consultants to handle the social media aspect of the business for you if you and your employees are not entirely comfortable with using it

I think these 6 points are really useful and reasonable. As an avid social media user myself, I’m seeing more and more businesses join Facebook, Twitter, etc. to communicate on a more personal level with their clients. However, Facebook is getting more and more cluttered with advertisements and unprofessional marketing, which is why I think this article recommends the use of LinkedIn. Using social media is risky business though – you either make it or break it. Information spreads so fast that if you make an inappropriate post or retweet something inaccurate, many people will know instantly. Thus, I agree with the 6th point about hiring professionals in the field of social media marketing to ensure your business reaching its full potential. Although the article did not touch on it, personally I would recommend investing into e-commerce if your business has enough funds to do so. Buying and selling online is so popular nowadays and allows customers to interact with your business no matter where they are in the world – unlocking the global market at your fingertips.

The past generations have never been as fast-paced as we are now. With an increasing need to be “on-the-go”  all the time, we are relying more and more on our smartphones to aid us in our busy lives. Grocery shopping has become a laborious, time-wasting chore for many young people…and that is where the idea of “virtual supermarkets” came in.

In South Korea, Tesco Homeplus Supermarket has opened quite a few virtual grocery stores in Seoul’s underground subway stations. There is no physical store; pictures of 500 popular store products are brightly displayed on billboards along the subway platform walls with QR codes underneath each item. Customers with the Tesco application installed to their smartphone can scan the QR code of the product they want to buy, specify details such as bag size, and expect their purchases to be safely delivered to their homes within 24 hours.

This concept is a miracle for young people who dislike spending at least an hour wandering through vast supermarkets. This idea is a relief to adults in the workforce who dread grocery shopping after a long day at work (not to mention South Korea is infamous for overtime hours and tough work culture).

Tesco’s virtual grocery stores are marketed brilliantly. The company satisfies their target market’s need for convenience perfectly and advertises for itself – who could miss these eye-catching billboards while waiting for the next train to arrive?  It is not surprising that Homeplus in South Korea has become Tesco’s most successful international business.

When considering the 4P’s, these virtual stores are definitely lacking in the “Product” category. Being able to smell and feel the quality of our purchases gives us comfort of the mind, a state that cannot be provided by 2-dimensional images on digital screens. The market is also limited to customers who own smartphones (the smartphone market is growing, but not entirely penetrated). I think it is unlikely that virtual supermarkets will ever replace physical stores, but there is great potential for expansion to major cities like New York, where “time” is even more scarce for everyone.

References:

http://www.bbc.co.uk/news/business-15341910

http://www.designboom.com/technology/tesco-virtual-supermarket-in-a-subway-station/

Smirnoff Nightlife Exchange Commercial (Youtube Video)

The Smirnoff Nightlife Exchange Project, a global event involving 14 countries sharing their nightlife culture via Facebook application,  has led to much attention by vodka-lovers and, doubtlessly, much concern by the government. Not so long ago, Diageo, a UK-based alcohol company whose products include Smirnoff, Baileys, and Guinness, signed an agreement to be partners with the Responsibility Deal Alcohol Network (RDAN) under The UK Department of Health. By voluntary pledging, Diageo is committed to “fostering a culture of responsible drinking, which will help people to drink within guidelines.” However, Diageo’s recent usage of social media networks as a promotion tactic seems to be signalling the exact opposite of what they pledged under RDAN.

Businesses have been scrambling to catch up with the social media trend in this century, and Diageo is no exception. Currently, the company has enrolled over 950 of their marketers in “Facebook boot camps” in order to capture their audiences undivided attention for Diageo alcohol. The Smirnoff Nightlife Exchange Project alone sprouted from a multi-million dollar contract between Diageo and Facebook. As a result of its expanding presence on Facebook, Diageo has seen a 20% sales increase and will most likely use such a popular media outlet even more in the future to promote its products.

Although projects such as the Smirnoff Nightlife Exchange do not directly violate the specific agreements of RDAN (i.e. providing health information on labels, no advertising posters within 100 metres of schools), Diageo’s marketing strategy does become a worrisome issue when one considers the vast audience of social media networks. The openness and convenience of websites such as Facebook allow advertisements to not only reach adults, but also children and students just as easily. A mere line of “Drink Responsibly” at the end of a fancy commercial does not prevent nor slow the growth of an “alcohol-fueled culture” within a young and energetic generation.

Unfortunately, it is highly unlikely that alcohol producers will lessen the amount of social media marketing given its current success, and vague agreements that rely on social responsibility such as RDAN are definitely not great enough threats either. Until new alcohol policies are made to counter profuse alcohol social marketing, the popular culture of drinking will continue to seep its way into children’s everyday exposures, and perhaps even experiences.

Source: http://www.telegraph.co.uk/technology/facebook/9793739/Alcohol-companies-encourage-drinking-on-Facebook.htm

Alcoholic Beverage Brands Under Diageo

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