Month: November 2012

Reuters) – Colorado and Washington became the first U.S. states to legalize the possession and sale of marijuana for recreational use on Tuesday in defiance of federal law, setting the stage for a possible showdown with the Obama administration.

http://www.reuters.com/article/2012/11/07/us-usa-marijuana-legalization-idUSBRE8A602D20121107

This is a controversial issue under discussed . An reports shows that in Colorado state in 2010, the revenue of selling marijuana is 18million dollars which created jobs for 4200 unemployed persons. This new policy will also benefits the government in tax revenue. For people who against legalizing the marijuana for recreational use indicates that it may leads more under- age children addicted to marijuana. However , the fact is that the stock which related to marijuana was rised between 64% to 300% while other industries continuing to struggle in american stock market after the american presidential election. Obviously, a majority of people focus on the financial benefits rather than social ethic effects. I think there wil be more states legalizing the sale of marijuana for recreational use in the future, this is the new sources of american economic growth.

Brands are everywhere in our life. I used to think brand is a logo , a corporate identity. After  took the class and read some related readings,i have some new understanding about “branding”. Branding was used for cattle initially; it is a stamp of ownership. Later, brands are burned on wooden cases, a guarantee of good source and good quality.

Now, brands are big business. For example, coca-cola, the most popular and biggest-selling soft drink in history,as well as the best-know product in the world. However, there are only 9 bottles of coke were sold 1886 and now the brand of coca-cola was valued at $70,452,000,000. Therefore It is a essential market strategy for a company. A successful brand can bring a set of unique values  and usually achieve following objectives:

• Delivers clear message to customers
• Reinforces customer loyalty
• Confirms credibility
• Connects potential target
• Motivates the customers

Brands can take a company and consumers to new places. Brand can also be used as a verb, such as “google it” and “skype your family” and it is remarkable.

source link ：http://www.virtualvender.coca-cola.com/ft/index.jsp

Toms shoes has been rated the America’s most promising social entrepreneurs. The company was famous for its one-to-model ,which means ,for every pair of TOMS sold, the company donates a pair to a child in need. Since its launch, the company has denoted over 115,000 pairs of shoes to children in need all over the world.

when we talked about social entrepreneur, it connect the concept of  business ethics in my mind. The company want to make money and also take social responsibility just like TOMS. This is the optimistic way in operating business. TOMS has earned an estimated 4.6 million since its launch. In this case, i think their one-to-one model is also a successful marketing strategy. It will stimulate consumption because consumers feel that they are helping people through the purchasing. TOMS has built a successful model which combined profit and social responsibility and also a positive corporate image and its meaningful in the long run development of the company (i.e., They also use one- for-one product with Tom glasses).

source link: http://images.businessweek.com/ss/09/04/0403_social_entrepreneurs/26.htm

In the original blog, Cristine indicates that while some luxury fashion companies ,such as Burberry and Tiffiany&Co.,are both having a slowing  growth in china, sales of Prada still increasing.

By comparing Burberry and Prada,the author suggested that the different brand positioning made their profit growth, Prada is more diversify than Burberry.

I have some different opinions about this problem. I think the reason of this situation is mainly due to the regional price difference. To be more specific , the selling price of Burberry’s products have large difference in china and in some other countries ,such as the U.K. and the U.S. and the same as Tiffiany. The products were sold much cheaper in America than in China because China has high import tax, especially for luxury goods. Therefore,those luxury fans in China are more willing to buy stuff through Internet (i.e.,buy goods from America or other countries.) .However , the situation is a kind of different about Prada. First of all, there are many categories in Prada’s product and the big difference in price ,which means Prada may have more target consumers. Then , the regional difference in price is not that large for Prada. In this case, China is a large potential market for Prada.

original blog link: https://blogs.ubc.ca/cristineli/2012/09/24/luxury-fashion-companies-are-having-a-slowing-growth-in-china/

It seems that Iphone defeated Nokia which used to be the king in mobile market. While the marketshare of Nokia decreasing, their luxury division Vertu, continues to succeed.

According to Businessweek, Vertu has seen “high double-digit sales growth” since the beginning of 2010. While Nokia cut 7,000 employees to reduce costs, Vertu’s staff increased by over 50 percent since 2009.

Why Vertu succeed ? Think about would you buy vertu if you had the money? Would you like to spend over $5000 dollars on a phone?

I think the success of Vertu is based on its target consumers, a small group of people. This group of people can creates huge value for the company. The phone is low-tec and most of them even don’t have camera. However, because it is made of rare materials and precious jewels. It is popular in status-conscious emerging market. Additionally, the brand seems separate from Nokia and i think it is good to do that. For these target consumers, exception and less is what they are chasing for.

Source:

Nokia’s Bright Spot: Luxury Handset Maker Vertu

http://www.businessweek.com/magazine/nokias-bright-spot-luxury-handset-maker-vertu-09292011.html