Tim Hortons: Bigger is better

Tim Hortons has always been one of my favorite beverages. When I saw the news that Tim Hortons had upgraded its cup size, I was really happy. However, after reading Jamie’s “Tim Hortons too finds ‘bigger is better’, I start to think more about their marketing. (https://blogs.ubc.ca/jamiejjq/2012/01/16/tim-hortons-too-find-bigger-is-better/)

As mentioned in Jamie’s blog, the upgrading strategy may shape consumers’ behavior. Personally speaking, I partly agree with this idea. As a loyal customer, I always buy coffee of large size, and I still buy large size now, which should be x-large before. However, I haven’t realized one thing until several weeks after the upgrading that the price stays the same. The price for large size coffee now is the price for x-large coffee before!! It really made me unhappy at first. I thought Tim Hortons was willing to give customers more benefit at the same price or something.

However, I do admit that their strategy works!! I am consuming large coffee now, which is x-large coffee before. And although I know x-large is too much for me, I am still buying it. One reason for this may be that once customers’ habit has formed, it is hard to change it. So instead of shaping customers’ behavior, I think this strategy is more taking advantage of customers’ loyalty to their brand and their constant buying behavior.

Coach’s success in China

Although Coach is only a second level product brand in North America, it is viewed as one of the best luxury brand in China. After reading Chujun Wang’s blog (https://blogs.ubc.ca/charlynwangcomm296/2012/02/08/coachs-success-story-in-china/)    I am also very curious about why there exists such a huge difference.

First thing first, Coach really owns a good brand name and reputation in China. In recent years, Coach has changed its marketing strategy, especially brand establishing strategy in China. For example, they have taken a lot of photos of famous people taking their bags, like pop-singers. These people do have a great influence on the general public. In people’s rooted mind, these famous actresses or singers never buy anything cheap. Instead, they are using the most famous and luxury brand, like LV and Hemes, as a sign of their social status. Thus, young girls, especially those girls born in rich families, are intend to buy the same brand product to show off and show their social status. As a result, in China, Coach is regarded as one of the luxury handbags, just same as LV and Gucci.

Also, Coach increases its speed of launching new bag styles. Girls who are fond of buying this kind of “luxury” goods are always those people who want to be positioned as being fashion. Some of Coach’s handbag can really lead the fashion, which attracts more fashion girls to buy.

All in all, Coach is really a good example of the success of brand to foreign market. And personally speaking, I think the reason lies in its good establishment of its brand status and reputation.

 

McDonald’s marketing in China

Link

https://www.youtube.com/watch?v=lSk40JLKle8&feature=player_embedded

It is a link to an advertisement of McDonald in China, which is talked about in the article McDonald’s Takes Ammonia-Free Beef Message to China. (I have no idea how to insert the video directly into the blog) The article mainly introduces the video, which is about the change of the beef in the hamburgers in China.

Not only in Canada, but most of the world I believe, McDonald is more popular than KFC in the fast food market; however, people in China are more prone to consuming KFC. I still remember that when I was little, KFC and McDonald just entered the China market, and they were too expensive for normal families to afford. With the development of the economy in China, more and more families regard McDonald as cheap and affordable, which means that fast food industry has a larger market to explore. If McDonald wants to win the battle and change the current circumstance that KFC is occupying most market share in China, it has to make some strategy. In this advertising video, we see that McDonald is making propaganda targeting at young man, and saying the beef is healthier than before. Personally speaking, it is in the right direction. In China, the younger generation is more likely to accept new things and new culture. The taste of the older generation is hard to change, and like my parents, they do not actually like the taste of hamburgers, thus they cannot be the targets consumers. Also, people today are paying more and more attention to eating healthier, thus the change that McDonald makes has differentiated itself form KFC, and makes its brand more competitive.

Things to consider before partnering Groupon

http://www.rohitbhargava.com/2011/12/4-easy-ways-to-lose-money-partnering-with-groupon.html

I decided to write something about this article right on the first sight that I saw the title. I could not understand why companies would suffer a loss when more and more people buy things on Groupon. It was my opinion that companies might sell more products with online discounts, so they should make profits. However, after reading the article, I got a better understanding of marketing, that the target of marketing is not simply to boost sales in a single period.

First thing first, companies should clarify who their target customers are. Those people who bought their products once only for reason that they are on a discount will rarely buy the same products again at their regular price. The main purpose should be to attract more customers getting to know their brand instead of buying the product itself. Customers may become loyal only if they remember the brand.

Companies should sell those productions with a  large number of inventory with discount but never their core products. For me, as a customer, if I always see discount ads on the products I usually buy, I will feel that the product may not worth as much as its regular price. I will regret to buy the products with regular price and may decrease my brand loyalty. It is likely that a certain number of customers with brand loyalty turn to another brand instead.

All in all, the most important thing I have learned is that before making a marketing decision, analysis should be done as careful as possible. A small mistake may result in a big loss of the whole company.

Something about me

Hi, everyone. My name is Yifang Liu, and I am an international student from China. I am now a second year student in Sauder School of Business. I am intended to major in Finance, with a combined major of T-log or minor in economics. My hobbies include Chinese dancing, shopping and watching movies. I am taking Comm 296 because it is in my STT. But I am interested in marketing as well, since I know little about marketing, it would be fun for me to explore the unknown parts of marketing. My favorite ad is about funeral home. It is right on the wall beside the train track and says, “ Come a little closer” It is really impressive that it combined the ad with death and funeral. Also, it warns people be careful and take care. Regard of something personal about me, I have a twin sister who is now studying in Nanyang Technological University in Singapore. Due to the one child policy in China, in most families, there is only one child. I really want to thank god to give me a sister, and my friends admire me a lot.