Walmart has joined forces with Facebook. Two giants now walk hand in hand.

As a result of the partnership, Walmart now offers Facebook pages specifically tailored for each of its locations. The company’s aim is to allow customers to interact with its local stores: consumers will get personalized information on new products, events, and discount offers.

The joining of the two giants underscores the importance of BTM in today’s business. Companies are beginning to understand the power of the internet, and realize the need to address the ‘next-generation’ customers who are avid social media users. Among others, Walmart is trying to harness the power of Facebook to increase customer counts and revenue.

Facebook gives Walmart an indispensable opportunity to use IT in measurement, experimentation, sharing, and replication. In April 2010, Facebook permitted brands to use its “like” button on their websites, suddenly allowing companies to easily use IT to get worldwide data on their products. The fact that Facebook is so globally connected gave companies insights and an efficient way to share their conclusions. Carolyn Everson, vice-president of global marketing solutions for Facebook, said that “brands are starting to see measurable sales impact on products that are ‘liked’ on Facebook”.

Works Cited:

D’Innocenzio, Anne. “Walmart Aims to Recreate Feel of Local Store for its 9 Million Facebook Fan..” Canadian Business. N.p., 11 Oct. 2011. Web. 11 Oct. 2011. <www.canadianbusiness.com/article/49905–wal-mart-aims-to-recreate-feel-of-local-store-for-its-9-million-facebook-fans>.

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Last month, supermarket chain Loblaws officially launched Black Label, its new “affordable luxury” line of President’s Choice products. With No Name and President’s Choice successfully implemented, Loblaws is attempting to fill a gap in their offerings: they aim to win over customers who may buy the majority of their groceries at Loblaws but then head over to a gourmet food store for their indulgences. However, with consumers increasingly conscious of every dollar spent, can President’s Choice get people to pay for luxury?

Referring to Porter’s 5 Forces, it seems as though Loblaws is treading in risky waters. Firstly, in Canada’s intensely competitive market for groceries, the threat of substitutes is high; Loblaws will need to contend chains such as Walmart and Sobey’s in convincing consumers to buy into their brand. Accordingly, buyer power will also be high as consumers have much variety to choose from. Because Loblaws is focussing on offering unique, high quality foods, supplier power will also be high: for example, their cherry shiraz wine is supplied solely by a small Israeli winery. Overall, the rivalry will be tough.

But Loblaws has hope. President’s Choice is an already well-established brand in Canada. Even frugal shoppers treat themselves on small luxuries, and the company is hoping that Black Label will be unique enough to lure consumers.

Works Cited:

Beer, Jeff. “An Even Better Choice?.” Canadian Business. N.p., 5 Oct. 2011. Web. 10 Oct. 2011. <www.canadianbusiness.com/article/48828–an-even-better-choice–page1>.

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Sometimes opportunities for a successful business exist in the most unexpected places. This was indeed true for lingerie company La Vie en Rose, which initiated a prosperous expansion in Saudi Arabia, a country where sexuality in women is usually severely restricted. The company was able to look beyond the cultural stereotype of the area and recognize that women in the Middle East were beginning to embrace their feminine side. They took advantage and opened 28 stores across three Middle Eastern countries.

Businesses need to be innovative like La Vie en Rose in order to succeed; the world is a constantly changing place and a company needs to be able to look beyond stereotypes to find a new niche in the market. As we learned in class, an effective way to position a brand is to grab an unoccupied position in a major segment.

As expected, the company has faced challenges associated with cultural differences, but by being flexible and altering parts of its branding, the company has been successful in Saudi Arabia: their overseas earnings now make up 20% of its total profits. Because of its success in the Middle East, the company plans to expand to 10 new countries by 2013.

Works Cited:

Chapin, Angeline. “Undercover Economy.” Canadian Business. N.p., 8 Sept. 2011. Web. 3 Oct. 2011. <www.canadianbusiness.com/article/43493–undercover-economy–page1>.

Chapin, Angelina. “Female Lingerie Clerks: Progress in the Middle East.” Canadian Business. N.p., 20 Sept. 2011. Web. 3 Oct. 2011. <www.canadianbusiness.com/blog/business_briefings/46425–female-lingerie-clerks-progress-in-the-middle-east>.

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In order for a business to thrive, the marketer has to offer something of value to the consumer and the consumer must appreciate it enough to pay for it. Much of this appreciation comes from the strength of the brand name; in class, we learned of the importance of a value proposition in the development of a strong brand name. Companies need to segment, target, and then position the brand effectively in the perceptions held by consumers.

Groupon has not been profiting well lately, reporting a $102.7 million (USD) loss in Q2 of this year. This could be blamed on their lack of effort in establishing a coherent value proposition.

Although Groupon does offer great deals, it does not target a specific type of consumer. It offers bargains on random items that many quickly realize they do not need. As a Canadian Business article put it, “Groupon is a garage sale”—sure, they offer many things, but the offerings are unsystematic. As a result, the brand name is weak; people do not associate Groupon as a credible source in which the consumer will end up satisfied. In essence, as a result of a practically non-existent value proposition, Groupon has created for itself a weak name and a reputation for offering mainly useless deals that are inapplicable to many consumers’ busy lives.

Works Cited:

Philip, Bruce. “Because cheap is not enough | CanadianBusiness.com.”CanadianBusiness.com. N.p., 22 Sept. 2011. Web. 4 Oct. 2011. <http://www.canadianbusiness.com/article/46332–because-cheap-is-not-enough>.

Lim, Josephime. “Groupon IPO could be trouble | CanadianBusiness.com.”CanadianBusiness.com. N.p., 1 Sept. 2011. Web. 4 Oct. 2011. <http://www.canadianbusiness.com/blog/business_briefings/42759–bad-press-swirls-around-groupon-s-ipo>.