Monthly Archives: March 2013

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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