I would say that this isn’t the best team experience that I ever had. Nevertheless, I have learned a life/working experience, to say overall.

Our team consists of me, Summer, Briana, Katherine, Adrian and Ali. All are brilliant students with fantastic ideas and thoughts. We are pretty diverse that we come from different places and are brought up in different environments. The diversity in our group enables us to gain insights from different perspectives, and of course, many different ideas are brought into the group. I am thankful for being able to see how people that brought up in such different environments work.

However, if I can go back in time, I would have given more thoughts when we chose our company. Instead of choosing a right company that I have known better, I decided to follow the choice that the majority had, which is Toyota. We had a reasoning behind this choice- we are so diverse that Toyota is one of the few companies that is the intersection between our different trails of familiarity. It proves to be a bad choice for me, for truthfully, I had zero knowledge about vehicles to start with. To get to know the product, in the least, required much effort in my part, let alone to evaluate the entire marketing mix of Toyota.

On the video assignment, I think we could have done better if we have been more organized about our group. If everyone was to turn up during meetings and be more committed, it would not have been as messy as the way we experienced during the process of making the video. Although the process and outcome might not be up to my expectation, everyone has fairly completed their respective parts and we managed to produce a video for this assignment.

Referring to Summer’s blog, I personally agree with her proposition that companies have not done enough to make customers “loyal” through the more commonly used customer loyalty programs, Simple Point System.  Summer mentioned that this system gives customers headache as customers barely have time to keep in track the amount of points accumulated. More simply said, this program is just not effective.

To businesses like Save-On, Safeway and Shoppers, the customer loyalty program is beneficial to them in a way. By name, the phrase “customer loyalty programs” refers to an initiative in which efforts are made to induce loyalty from customers, so that they will not be attracted to go to competitors who may offer better offerings. However, another purpose that serves more importance to businesses (which is to obtain information about customers’ purchasing behavior) often makes businesses to forget the former purpose.

As a customer of Save-On myself, I do my grocery there every week, in the hopes of getting rewarded a free product or maybe just some cookies, in exchange with the accumulated points that I have. Usually, it would say on the price tags “Redeem this product with xxxx points”. And when I look back at my previous receipts, my total accumulated points are only 3-digits. In the system, you earn a point with an expenditure of $1. So, basically, I have to spend about $1000 before I could get a free cookie? This is in part, frustrating to me as a customer. I will just never reach that level.

As in this case, I would say that the program is ineffective in the sense that it is unrealistic. When customers like me realize that they would never get awarded when the redemption points set so high, why would they stick to Save-On? We could just go for other places that offer better prices for the products that we want.

All in all, there is definitely service gap occurring in this scenario. After customers give up their personal information to businesses, they expect businesses to do their part to reciprocate what they have given.

Reference:

https://blogs.ubc.ca/qianyusummerli/2013/10/08/is-customer-loyalty-dead/

I am inspired to blog about this brand, Contrex after watching one of its interesting promotional videos that was filmed in 2011. Contrex is a brand for mineral water and is only sold in a few countries, which are France, Switzerland, Germany, Czech Republic and Japan. I applaud Contrex for its successful promotional video to build brand awareness. This particular video is viral online and has reached audiences from many different places, including countries that are not within the list.

Target Market Segment

Contrex’s marketing strategy is clearly developed in both this video and website. From the clip itself, it is obvious that Contrex has a very well- defined and clear targeted market segment: the ladies. During the event, they invited mainly women to try on the bicycles and had the male neon stripper as an attraction. Their website has even more saturated hints of targeting women. Laid in pink background, Contrex features female models and tailors its language in feminine form (in French) as if they are directly speaking to their female customers.

Brand Association

There is very little marginal difference in the product of mineral water. Usually, consumers are indifferent between different brands of mineral waters as they bear similar features. However, Contrex manages to differentiate itself from its counterparts in the same industry, by concentrating on making its brand getting associated with healthy lifestyle, fun and good appearance. Back to the video, the stripper finally holds a board congratulating the participants for losing 2000 calories. Also, the ending statement of the video says that “we slim better if there is fun”. In addition, on Contrex’s website, they use words like “take care of myself”, “line”, “pleasure” and so on. Noticeably on their welcoming page, they have the phrase “To get in touch with your slimming partner, choose your country and connect yourself to the CONTREX world of slimness”. All of these are not fluke; they are the aftermath of thoughtful planning that intends to associate Contrex with the mentioned traits.

All in all, Contrex did a great job in establishing their direction and execution in brand marketing. If I am to say, it will not be very difficult for Contrex to try to penetrate to new markets as it has strong brand awareness that was spread through the promotional video.

Here’s a sequel.

https://www.youtube.com/watch?v=IKPtNDYezLY

Reference:

http://www.contrex.com/

https://www.youtube.com/watch?v=GBjCfISUO6Q

https://www.youtube.com/watch?v=IKPtNDYezLY

This blog provides insights of an emerging consumer behavior in light of increasing use of smartphones. More and more consumers are reportedly to practise “showroom”behaviour, which means to compare prices, reviews, and product details on their mobiles and then, make purchases online while they are in a physical store.

This emerging behavior can become strength, an opportunity or a threat to businesses.

“Showroom” behavior acts as strength to businesses. A retailer’s website or app will be impact the impression that customers have on the retailer. Having an interactive, easy-to-access, user-friendly and integrative website or app that is able to provide the precise answer to what customers seek for, will increase the chance that the customer would choose to close the purchase with the particular retailer.

“Showroom” behavior can also act as an opportunity to businesses. Businesses can effectively inform customers of their deals and discounts that they have at low costs. A retailer will be able to “steal” customers that engage in “showrooming” from their competitors if their offerings are better than what is offered by their competitors. This means reducing customers’ loyalty towards the business’s competitors.

However, this can become a threat for the business itself as the same phenomenon would happen if its competitors are able to provide better offerings to customers. Also, if the retailer is unable to maintain consistent positive reviews from customers, this is bound to chase away future potential customers.

All in all, “showrooming” behavior is another customer behavior that presses businesses to maintain good reputation and high quality. By now, businesses should have acknowledged that customers are increasingly engaging technology in their external search for information. Technology can be very contributory or detrimental to businesses. Therefore, businesses should be careful in their interactions with customers and offerings as “showrooming” behavior is just another example of increasing consumer power.

Reference:

http://econsultancy.com/ca/blog/63393-why-are-people-showrooming-and-how-should-retailers-respond

There is a computer retail store called Megamate Inc. based in my hometown and my dad just loves to buy computers and other accessories from there. My brother once asked, “Why there”? Well, he argues that Megamate sells computers of less variety at a tad higher price compared to competitors. Being the decision maker, my dad still loves to patron them. Why?

This phenomenon is purely the result of excellent marketing strategies, not just coincidence.

We are talking about a small business in a small town with a population of 767,794 mainly comprised of Baby Boomers and Generation Xers. Having a late exposure to the computer world in their life, this group of people generally finds it harder to adapt to the use of computers compared to later generations. They probably freak out when the screen blacks out when in fact, it has just turned into sleep mode.

And Megamate has just what its customers need at precisely this moment. POST-PURCHASE SERVICE. For Free. What happens here is the post-purchase experience and the process of building a relationship with its customers.

Megamate does not just do a transaction with customers. It sells lifelong relationships. Knowing that they have free repair service by professional technicians at their disposal, customers would just return to Megamate with their appliances. Each time a customer returns to Megamate for repair, Megamate reinforces its relationship with the customer. The customer becomes more familiar with Megamate through personal interactions with the staff. Liking Principle says that consumers tend to be more responsive to what they are more familiar with or able to relate to. Through this, consumer trust is built and to no surprise, it increases the rate of returning customers. Also, the reciprocity principle blends in well in this business. Customers repay Megamate with more purchases after receiving free repair services.

Remember Megamate’s pool of customers? They have sons and daughters. Guess who they will turn to if a need for new computers is recognised?

All in all, Megamate’s post-purchase service helps gaining them customer loyalty and compensates for the lack of variety of choices and higher price tags.

Cheoeum Cheoreom Soju- Dance Battle (Hara, Hyuna, Hyorin)

Sequel:

https://www.youtube.com/watch?v=TCebZr-CQAE

https://www.youtube.com/watch?v=YckCAmHc1E0

https://www.youtube.com/watch?v=FJkvOdhRGME

The South Korean soju industry’s commercials have always been represented by popular female celebrities. Therefore, there is no surprise at all that this time, Cheoeum Cheoreom Soju has chosen a representative (Hyuna, Hara, Hyorin) from each of the current three trending female celebrity groups as their spokesmodels. Only that they share one common element- they are all the sexy icon of their respective groups.

Compared to previous soju commercials, a major change of concept is easily perceivable, from a concept of a happy and excited group of male and female Cheoeum Cheoreom soju drinkers to a dance battle scene between these three female celebrities that exploits and focuses on their alluring looks and seductive dance moves.

Older Cheoeum Cheoreom Soju Commercial

To me, the dance battle commercial, in a large part, seems to be targeting towards men, given its choice of spokesmodels and content of the commercial. Gender discrimination aside, the message that Cheoeum Cheoreom Soju implies in the commercial is questionable. Having “Just Like A First Time” as their motto, I understand that they are saying that soju can be taken at nightclubs too, which is uncommon. However, what is the purpose of the sexy dance moves and suggestive appearances of the spokesmodels in the sequels? I believe that they are not necessary in order to increase the soju market base, given that there is not a Korean who does not drink and love the traditional liquor. The exploitation and further amplification of the voluptuous and provocative figures of the spokesmodels through the “dance battle” are unethical.

Ultimately, such commercials containing sexual, provocative and sensuous are not new to the marketing field. Although this is deemed by most an effective way of catching consumers’ attention, however marketers should reflect on the appropriateness of the messages that they directly and indirectly convey to the public, especially to youngsters who are greatly influenced by commercials around them. Yes, I do agree that in this decade, competition exists between commercials, in terms of effectiveness in luring consumers’ attention, building brand awareness, and so on. But it does not justify the neglect in social responsibility that marketers owe to society in large.

Lastly, just a food for thought, does the message that Cheoeum Cheoreom Soju  conveys in this commercial truly define the societal and cultural meaning of soju?

As business competitions build up, marketers have huge responsibilities to increase effective sales and beat competitors through advertising. Advertisements of products in every possible form try to reach out to consumers. In the process, companies try to make the most efficient advertising with the lowest cost. This is where Rubicon comes in handy. Rubicon provides precise analysis and profiles stratification of potential buyers for different types of products, and then, auction off online ad spaces to marketers. It has somehow turned into a real-time system, not unlike stock trading.

Essentially, advertisements between companies have turned into a competition as well. The company that successfully appeals its advertisement to customers and turns it into effective sales is the winner. And, it has to be fast and precise to capture the right customer.

It is really interesting to know how advertisements have evolved from being a traditional tool to communicate the value of a product into an element of marketing race for companies.

However, the ethics of companies that pry into our personal information and online privacy, in order to obtain data for the perfect display ad spot for potential buyers, is highly questionable.

Source cited:

Singer, Natasha. “Your Online Attention, Bought In An Instant.” The New York Times 17 Nov. 2012. Web. 18 Nov. 2012. <http://www.nytimes.com/2012/11/18/technology/your-online-attention-bought-in-an-instant-by-advertisers.html?ref=business&pagewanted=all>.

Picture cited:

Addante, Frank. Your Online Attention, Bought In An Instant. 2012. The New York Times, New York. Web. 18 Nov. 2012. <http://www.nytimes.com/2012/11/18/technology/your-online-attention-bought-in-an-instant-by-advertisers.html?ref=business&pagewanted=all>.

This article cites that Mr. Ma advocates against detrimental environmental effects posed by multinational corporations’ suppliers.

One of the reasons China becomes a popular outsourcing destination for many multinational companies, is its low cost of production. Second, its rich labour resources. As awareness for labour and environmental rights peak, China takes corrective steps to prevent these multinational companies from further exploiting their resources. Naturally, this will increase the cost of productions of the companies, which seek to minimize cost and maximise profits. Besides, further investigation into these issues will lead to revelation of ugly behaviours in production of the outsourcers. Such revelations will relive the undesirable agendas of Apple and Nike labour issues.

With heightened demands from China for the outsources to take preventive steps to avoid environmental damage and labour exploitation, I am curious to know if in future, this will affect the decisions of new companies that consider outsourcing in China. As for companies that have already established supply chains in China, will costs of productions rise to the point that they decide to discontinue outsourcing in China as it is no longer profit-maximising? Would they turn their heads instead to other developing countries with lower labour and environmental awareness?

Source cited:

Gies, Erica. “Advocate Helps Track Polluters on Supply Chain.” The New York Times 22 Apr. 2012. Web. 18 Nov. 2012. <http://www.nytimes.com/2012/04/23/business/global/advocate-helps-track-polluters-on-supply-chain.html?pagewanted=all>.

Picture cited:

Butler, Phil. China’s Cyber Warrior In The News Again. 2007. Profy. Web. 18 Nov. 2012. <http://www.google.com/imgres?num=10&um=1&hl=en&tbo=d&biw=1163&bih=562&tbm=isch&tbnid=wt0Lk3PLD2S04M:&imgrefurl=http://profy.com/2007/08/26/china-cyberwars/&docid=iwprcm0yToHCyM&imgurl=http://profy.com>.

Pollution in China. 2011. Web. 18 Nov. 2012. <http://www.google.com/imgres?start=15&num=10&um=1&hl=en&tbo=d&biw=1163&bih=562&tbm=isch&tbnid=qUwqN59sJrI7pM:&imgrefurl=http://crisispictures.blogspot.com/2011/11/pollution-in-china.html&docid=a6VxMMY>.

Professor Yao’s blog interests me because it answers the question that has lingered in my mind all along. Back home in Malaysia, the exact same phenomenon like in China occurs. As I read through this blog, a memory conjured up. It happened in high school when my friend gasped and pointed at my teacher who brought her Mac to class. I remember vividly that she said “Look! The teacher is rich!” The word “rich” is a direct example of the association that Professor Yao makes between the brands and social status. Using Mac provides a “prestigious” and “rich” brand experience to the user, besides elevating his or her social status.

What I learn from Professor Yao’s blog is that brand positioning indeed differs across cultures. Thus, when expanding new markets, it is rational to carefully observe how consumers from different cultures collectively view product brands, before setting prices and deciding how to establish their brands. Nonetheless, it is equally important to examine the various factors that affect a consumer’s decision when purchasing, whether the consumers in a culture weigh more heavily in practicality, quality, innovation, price or brand experience.

Source cited:

Daye, Derrick, and Brad VanAuken. Brand Positioning For Chinese Markets. Branding Strategy Insider, 28 Aug. 2012. Web. 17 Nov. 2012. <http://www.brandingstrategyinsider.com/2012/08/brand-positioning-for-chinese-markets.html#more>.

Picture cited:

Luxury Brands Not Safe From Recession Yet. 2008. UTalk Marketing. Web. 17 Nov. 2012. <http://www.google.com/imgres?num=10&hl=en&tbo=d&biw=1163&bih=562&tbm=isch&tbnid=Kfk0kVbB36iVAM:&imgrefurl=http://www.utalkmarketing.com/pages/Article.aspx%3FArticleID%3D12685&docid=F3iDQhvH8BR-6M&imgu>.

Lululemon emphasizes employee engagement. Lululemon teaches the employees to create values and goals in their lives and careers. Lululemon teaches its employees to love their lives. This is Lululemon’s corporate culture.

This article cites that there exists a direct link between employees’ enthusiasm and customer satisfaction. When employee engagement increases, client service level follows lead, which brings to better financial returns and growth. This phenomenon is proven by Lululemon’s success to pull through the second quarter of this year, which is deemed a hard time for many other retailers.

Five benefits of increased employee engagement (increased productivity, employee retention, customer satisfaction, innovation and reduced costs of recruitment) have been identified to contribute to higher profitability of businesses. The importance of employee engagement as corporate culture is capturing more interest from executives and professionals alike.

Companies that value their employees, such as Lululemon, Zappo and Google generally generate good returns. In the future, I wouldn’t be surprised when the trend converges and existing companies reshape their corporate cultures to facilitate the elevation of employees’ satisfaction, enthusiasm and commitment in working in the companies.

Sources cited:

Stoller, Jonathan. Engaged staff deliver high returns for Lululemon. Ed. Jill          Borra.N.p.,Nov. Web. 15 Nov. 2012. <http://www.theglobeandmail.com/report-on-business/careers/business-education/engaged-staff-deliver-high-returns-for-lululemon/article5328368/?service=mobile#menu>.

Pictures cited:

How Lululemon Kept Its Cult. 2012. Business Insider, New York. Web. 17 Nov. 2012. <http://www.businessinsider.com/most-important-business-case-studies-2012-10?op=1>.

Leyshon, Laura. Lululemon Canada’s Fastest-Growing Brand. 2012. The Globe and Mail Inc., Toronto. Web. 15 Nov. 2012. <http://www.theglobeandmail.com/report-on-business/careers/business-education/engaged-staff-deliver-high-returns-for-lululemon/article5328368/?service=mobile#menu>.

Skelton, John. Canada’s Most Valuable Brands: TD Takes Top Spot. 2012. Supply Chain Almanac. Web. 17 Nov. 2012. <http://supplychainalmanac.com/about-us/>.

Young, Pat. Engaged Staff Deliver High Returns for Lululemon. 2012. The Globe and Mail Inc., Toronto. Web. 17 Nov. 2012. <http://www.theglobeandmail.com/report-on-business/careers/business-education/engaged-staff-deliver-high-returns-for-lululemon/article5328368/?service=mobile#menu>.