April 5, 2013 · 6:22 pm

Final Blog Post: Reflection on the Team Assignment

What did you learn about teams, yourself, and marketing?

I realized that it is important to learn how to collaborate with a team of people you don’t know. In high school, we always had the chance to choose our own teams; however, we don’t get to choose our own team in reality. I learned that it is important to have the ability to communicate well with the team members and make sure everyone is on the same page, especially in the area of marketing. Also, it is important to know everyone’s strengths and weaknesses in order to be efficient. With only vague understanding on marketing, I thought it was just about selling and making a product attractive. Now I learned that marketing is far more complex than that and it actually involves in creating and delivering values and maintain relationships with consumers. I am also amazed that marketing is actually everywhere.

What skills did you enhance or develop?

I definitely developed  analytical skills from doing the marketing plan assignments. Our team spent a large amount of time researching and analyzing the company’s current situations. Also, we needed to select the most important information and analyze the macro-environment to come up with a feasible target market, which requires analytical skills. I also enhanced my team-working skills by trying to organize meetings and communicate with the team members to make sure everyone is updated. Last but not least, I developed my marketing skills by applying what I learned in class to a real case.

What would you do differently next time?

I would keep our team more organized next time. We could set up meeting schedules in which everyone has time to attend so nobody will be behind on the progress. Also, I will help more on the video-making process to make our video more creative and interactive.

What are your top takeaways?

It is difficult to develop a well-analyzed marketing plan. We have to do a lot of researches and have to be clear and concise. I think researching on the company’s current situation and analyzing the macro-environment are most crucial in the process of developing a marketing plan because they are the foundation of everything else. We need those analysis in order to identify target markets and possible opportunities of capturing a market. Also, we need those information to see if the company has enough resources and if the company’s objectives match with our plan.

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March 22, 2013 · 5:09 pm

When Target Meets Canada

Can’t Wait to Meet you Neighbour

Starting in March, Target, an American retailing company, will open 124 stores in Canada. It is their first expansion beyond the United States and the move is their first step of going international and becoming a global retail force. Known for its reasonable price and exclusive partnership with designers, Target is hoping to earn some profits from the Canadian consumers since most of the Canadians are already aware of the brand. Also known for its savvy marketing, Target revealed its first Canadian ad campaign during the Oscar broadcast. Oscar awards is a yearly ceremony that generates tons of viewers; the airing of the commercial during the Oscar will not only increase the awareness of the brand, but also will represents the milestone of the company’s official introduction to Canadian shoppers.

The commercial depicts the Target brand as a friendly new neighbour for Canadians with a warm and family-oriented atmosphere. In the commercial, a woman rides a motorcycle with the Target’s mascot dog, the painted lady bull terrier Bullseye, sitting in the sidecar. The two drives cross-country past several remarkable landmarks and events of Canadian cities such as Toronto, Montreal, and Vancouver. The goal of the ad, which is reinforced by items in the signature Target red and white, is to position and build the brand as well as to inform the Canadian audience that the company has spent time and effort in learning about the Canadian market. Several cultural insights Target weaved in the commercial  include the July 1 moving day in Quebec, a picturesque lighthouse of St. Johns, and hockey game. The commercial does not focus on showing audience the products in store, instead, it focuses on brand building. As a result, Target is able to generate a strong brand reputation and position itself against the competitors such as Walmart.

In addition to the pervasive marketing, Target also introduces its official Canadian site and its signature REDcard with 5% savings to generate loyalty. Also, it partners up with the Royal Bank of Canada to make purchase more convenient. I think the marketing strategy of Target is effective as it communicates the right information to the right audience at the right time. Also, it has well-analyzed the macroenvironment of the market and positioned itself in order to satisfy consumers’ needs. I would definitely visit a Target store any time soon!

 Sources:

http://www.target.ca/en/

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/targets-mascot-wants-to-be-your-neighbour-in-canadian-ad-debut/article8951368/

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March 12, 2013 · 12:01 pm

Apple is too popular to be popular?

“Buzz Marketing Group found that Apple’s iDevices are losing ground with the teenage demographic.”

I came across a fellow classmate’s blog post (Millie Wu’s Blog) on Apple gradually losing he teenage market over Samsung and other “cool” android companies. I found it interesting because Apple and Samsung have always been rivals and involved in endless lawsuits. According to Buzz Marketing Group, a youth marketing group, teenagers nowadays are crazy over Samsung Galaxy and Microsoft Surface lines instead of the Apple product lines. While doing a exceptional job in capturing the Generation X and Y market segments, Apple is not doing so well in attaining the younger Millennials’ loyalty.  

Indeed, Samsung Galaxy S III has been a success ever since it launched last year. I think one possible explanation for Apple’s decrease in sales with teenagers could be the price. Apple has always adopted the skimming pricing strategy in which the price is usually higher than most of its competitors and targets customers who are willing to pay the premium price to have the innovation. Since Apple products such as iPhone are expensive, parents might just pass their old iPhone to their children, who are still teenagers and do not have stable and high income.  Android phones are selling at a lower price with the same functions as iPhone, which means that these teenagers have a higher chance of getting a new phone all to themselves. Another possible explanation for the decreasing popularity of Apple with teenagers could be that Apple lacks “innovation” with their new lines. Comparing with iPhone 4S, iPhone 5 basically has the same function except it is faster with the support of LTE network. On the other hand, Samsung kept on introducing surprising and innovative devices such as Samsung Note II that could be used as a phone and an “iPad mini”, which successfully attracted the younger Millennial generation since they are tech-savvy and values innovation.

I think in order for Apple to gain more market share with the teenagers, it could add more pricing tactics such as bundling, in which Apple could offer a cheaper and more affordable price if a family purchase more than one product or if a student purchases a product. Also, Apple could develop a new product that differentiate itself from the existing lines and capture more teenage segment.

In Millie’s blog, she posted a commercial on Samsung making fun of iPhone and implying that iPhones are for parents and late adopters. I found a similar commercial (Samsung Galaxy Note Ridicules Apple Fans) where Samsung Note depicted iPhone as “boring” and positions itself as “fun” and “innovative.”

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February 21, 2013 · 2:50 pm

Disney World’s Magical Marketing Strategies

Linking to: http://www.rohitbhargava.com/2013/02/7-magical-marketing-lessons-from-disney-world.html

“Disney World isn’t just a magical place for families or kids.  It’s also pretty magical for marketers too”

Recently, I found an interesting blog post by Rohit Bhargava about various marketing strategies used by Disney. In the post, Bhargava mentioned 7 marketing lessons he learned from visiting the Disney World. I’d like to comment on a few of those strategies:

Dream Builders with Walt’s Philosophies and Motivations. Sponsored by Stanley

1. Brand everything: Disney has branding all over the parks which reinforces its company objectives and values. By providing services that match its values, Disney is able to generate positive word of mouth and strong brand reputation.

2. Let your customers be crazy: By providing stroller parking and having a “stroller guy” whose job is to pick up after strollers, Disney definitely has done a great job on targeting families with small children. Also, I think Disney has positioned itself among those families with “Just have fun all you want, we will look after you” in which customer loyalty could be generated.

 

FastPass gives customers a specific time to return in order to board a ride without a wait. Also, you might also get the unexpected surprise of a bonus ticket to a nearby ride. Source: Influencial Marketing Blog

3. Offer everyday surprises: The FastPass system gives Disney operational excellence through the efficient operations with the rides. The system enabled operation faster in a cost-optimizing way. By offering surprise bonus ticket, Disney is able to attain customer excellence by creating values for customers through balancing benefits with costs. Customers will  feel less time wasted or money not well-spent.

4. Don’t prevent the inevitable: Many photos taken during the ride are sold to riders afterwards, however, many customers might just take photos with their cellphones. In order to maximize profits while considering the political environment, Disney hires a person working under the photos to make it socially awkward to take a photo with the cellphone. Disney has well analyzed the macro-environment such as social trends, and come up with the PhotoPass+ to provide access to digital files of all photos on attraction photos and dining photos taken within a 14 day visit, along with print packages at some restaurants.  The PhotoPass+ could be another upselling technique targeting people who value easy access to both the quality and variety of photos.

Source: http://www.insidethemagic.net/2012/04/walt-disney-world-debuts-photopass-adding-attractions-and-dining-in-new-photo-package/

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February 2, 2013 · 9:46 pm

Watch the Super Bowl or the Super Bowl Ads?

Super Bowl 2013 might not happen until Feb. 3, but that cannot stop advertisers from putting out their commercials in advance online in order to generate viewership for the expensive spots.

Beyonce is invited to perform at the halftime show for Super Bowl 2013

The Super Bowl, championship game of the NFL in the United States, is famous for the high-profile advertisements that air during its television broadcast in the U.S. The broadcast typically reaches more than 90 million viewers while the advertising spot can typically cost millions of dollars. Due to the popularity of the Super Bowl, the commercials are  highly anticipated, generating viewers through posting ads on Internet even before the game is played.

https://www.youtube.com/watch?feature=player_embedded&v=ANhmS6QLd5Q
A teenager is insecured about going to the Senior Prom without a date. But when the father lets him borrow the new Audi S6 for the night, he gains confident, arriving at the Prom a powerful young man. Viewers are expected to watch this Super Bowl spot to see if his newly found bravery pays off.

The link above is an Audi ad teaser for the Super Bowl. Like Audi, Mercedes Benz is also trying to make money from the  well-established younger viewers by featuring Kate Upton, a popular model, in its Super Bowl ad. Baby boomer is usually the population that purchases luxury cars. However, by positioning themselves with younger audience who watch Super Bowl, luxury automakers could possibly expand their market and generate more revenues. 

Mercedes Benz ad featuring Kate Upton

Why are companies like Audi willing to spend almost $4 million per 30 seconds for an advertising spot during Super Bowl? Despite the enthusiasm of the viewers on the day of the game, the entertaining and creative advertisements might just provoke people’s affective attitude and not initiate any buying behaviors. Most viewers might be checking out other things while watching the game. As a result, companies who profit from the Super Bowl might not be the ones with the most creative ideas, but the ones who integrate creativity with their market mix in order to reinforce their sustainable advantages.

 

Sources:                                                                                                                                                       http://business.financialpost.com/2013/02/01/luxury-automakers-target-younger-hipper-audience-with-super-bowl-ads/

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January 19, 2013 · 1:09 am

Subway’s Footlong is Only 11 Inches?

Footlong = 12 inches, however, that is not the case with Subway’s footlong sandwich.

It began when an Australian man posted a picture on Subway’s Facebook page of one of its footlong sandwiches measured being only 11 inches. More than 131,000 people liked the post and the photo caused rage among the Subway fans. Exacerbating the situation, people around the world also posted similar pictures of their sandwiches on Facebook. The New York Post even started an investigation and found that four out of the seven Subway sandwiches they purchased came in under the advertised mark. Subway, in response to the outrage, claims that the name of “Footlong” is not intended to be a measurement of length. 

This Subway promotion showed people measuring out one foot with their hands. Subway now say that that footlong is merely a descriptive trademark.

From a loyal customer’s perspective, it could be a bit shocking to see the news. Mathematically,

One footlong sandwich = ~7.5 CAD

7.5 / 12 Inches = 0.63 cents per inch

0.63 x 3 footlongs a week x 4 weeks in a month x 12 months = ~90 CAD per year

Cheating 90 CAD out of every loyal customer’s pocket could accumulate to a large amount of money considering billions of customers around the world. Unlike the cases with false claims on ingredients, which might cause harm to customers,  the case with Subway might just be a miscommunication between the customers and the company. Since 1965, Subway has built a strong brand reputation and customer base, it is unlikely that they will lose a lot of customers just because of the shorting inch. Also, Subway has a sustained competitive advantage in making fresh customized sandwiches, I do not think being an inch short on bread is their main focus on making profits. 

Ethical marketing results in a more socially responsible community. Subway started offering $5 footlong during the recession and continued to offer it during the recovery. Also, it has taken a nutritional and environmental leadership. Though it might be unethical to have misleading advertisements, the case with Subway might just be one of the public relations problems that were caused by a negative photo about a company going viral, such as the one with a Burger King employee standing on uncovered lettuce. I believe the problem will eventually disappear because Subway has created values for customers. 

Fresh and customized at Subway

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