Young Min Jo's Blog

In marketing, we’ve been looking at different marketing strategies and marketing mix. Interestingly enough RIM has been offering a BlackBerry PlayBook Back to Business Offer; where a BlackBerry business customer in the US and Canada get a 2+1 deal – PLUS accessories!! Basically, business customers are able to buy 2 PlayBook’s and get the third one free of charge AND get 3 accessories (either leather sleeve, charging pad or a 6’ HDMI cable). Just a few weeks ago RIM had a 50% cut in the PlayBook prices, however, after the recent “glitches”, which include the service outage by RIM and the postponed PlayBook OS 2.0 update, this was RIM’s way of saying “I’m sorry”. This is (I believe) like product bundle pricing (combining several products and offering the bundle at a reduced price). These product mixes aid RIM maximize their profits for the particular product – PlayBook.

Nothing but software, Kduffy describes this as a “grocery store tactics”. Zdnet, describes this as “good deal or utter desperation” on RIM’s survival in the now booming tablet market. Zdnet also describes how desperate RIM may be in getting more market share after all the promotions and cuts in the recent weeks. However, with the OS 2.0 expecting to release in February of 2012 (which includes the native email, calendar and contacts app along with the ability to run Android apps), the buy 2 get 1 free along with the accessories that cost approximately $60 seems to be a very attractive deal for the business consumers. It is unknown how many sales BlackBerry has done after the recent promotions, but it is worth speculating and expecting something big from RIM in the days to come.

This is a blog response to Shane Neetichow’s blog post on Rim’s survival guide.

Shane describes that RIM is trailing behind apple. I have to admit, they are. However, recent marketing schemes by RIM has made its products slightly more attractive than before (a good start maybe?).

As posted on my previous blog, RIM recently had a marketing strategy to cut prices on their BlackBerry PlayBook. This has proven successful and very tempting to many consumers (even I went out and bought one). Yes that’s right; I went out and bought the “unfinished” PlayBook with many vital applications missing. Personally, until the new Amazon Kindle Fire comes out, the PlayBook was the most affordable and value for money tablet in the market. So, was this a good investment?

Yesterday, at the BlackBerry DevCon 2011, RIM announced the beta version of the OS 2.0 of RIM’s PlayBook tablet. Giving it tweaks here and there, and lots of new updates with it. The idea of a beta version (for developers) is for the developers to test the new software, evaluate it, and give feedback to RIM. RIM will make the new changes and tweaks and release the final version for the consumers. The new version has all the vital applications and throws in a lot more goodies with it. RIM has announced that you can run and install Android Apps into the blackberry. Android is known for its innovative and creative ideas, and the ability to customize anything to the consumer’s personal needs. Now that Android applications are available on the PlayBook, the PlayBook has become an attraction to everyone in the world. With its small slick and small design, the PlayBook boasts portability and style.

The new OS has turned a lot of consumer’s heads, but until the full updates comes out it is a mystery whether it will be worth buying or not. So, is RIM along the lines of getting its reputation back?

RIM’s new tablet, BlackBerry PlayBook, has been highly expected by consumers all over the world. However, RIM failed to deliver. Rushing to try getting a tablet out, the PlayBook lacked vital softwares such as email and calendar. RIM overestimated its popularity and had planned to ship over 4 million in the fiscal year 2011. However, tens or hundreds of thousands of the new PlayBook are left unsold and stored.

Just over a week ago RIM planned to clear the stock by lowering the price of the PlayBook. And just 2 days ago RIM announced its new price reduction on the BlackBerry Playbook; and it was mind blasting. In Staples, Best Buy and Future Shop, the BlackBerry PlayBook were being sold for $200 less than its original price. That is 40% off before tax. Moreover, Walmart is offering the PlayBook for even less than Staples, Best Buy and Future Shop. At 50% off, the BlackBerry PlayBook is being sold at $250 at Walmart. So, was this a good marketing strategy?

It seems RIM has made a fatal error by trying to rush its BlackBerry PlayBook back in April to try competing with the iPad. It faced immediate criticism for its lack of use. However, the major cut in prices seems like a good marketing strategy for RIM. Constant updates in the systems software and the increase in the number of third party applications is continuously attracting new consumers of the PlayBook. Moreover, 50% discount on the PlayBook makes the tablet one of the most affordable and value for money tablets in the market.

But, as we await the arrival of the PlayBook 2.0 in October, it has been announced that all these features along with Android App Player and more improvements to the software will be made to the current PlayBook.

As a second year international student enrolled in Sauder, I have been exposed to a wide range of backgrounds. Born in Malaysia (summer all year round; OH YEAH) with a South Korean citizenship I was immediately captured by outdoor sports. Football (or soccer as they call it here), golf and fishing (if you call it a sport) being my 3 favourite all time sports. As it is summer all year round, it was possible to do enjoy all of them anytime in the year (unlike here). I am a huge car fanatic. Cars. Cars. Cars. Don’t have a car here in Vancouver, but I’m hoping to get one here sometime soon.

Marketing… hmm… I took this course because it was on my STT. Sadly it’s at 830 in the morning. But I think marketing is a good course to take as a business student whatever the major. It allows you to see beyond what a product is, it allows people to understand it’s not just advertising, but also customer satisfaction and everything from even before the product is produced to the finished product.

Experience with marketing… err… as a consumer only. Calling customer service, buying products, researching on goods to see what is the best. I actually have two favourite ads. Of course both of them are car ads and it has really captured how good ads are becoming to capture audiences. Both the ads to me were just wow. Because firstly, there has never an ad like it before (its special) and just because I think it was pretty cool. The first one is called “The Cog” by Honda. The ad is a Rube Goldberg machine made of all the parts that make up the car Honda Accord. The second is called “Shell Helix – Crystal Car” and it has captured my attention along with all my friends by the creative idea of the ad.

Cathie Lesjak, the CFO of HP, said “You want to make sure that you are investing in the most efficient way that you can”. Despite being a multinational information technology corporation making $115 billion in revenue in 2009, Hewlett Packard has announced a cut in investment towards research and development (R&D). As shown in the diagram below, it shows that investment into R&D as a percentage of revenue has dropped from approximately just over 7% to just below 4%.

What are the effects of this? Well, the expectancy theory suggested by Victor Vroom is a common example in this case. He states that employees will perform according to the outcome. If employees think they may get a job cut, expectancy theory justifies that this will decrease the employee’s motivation.
Though promoting a positive working environment to build teamwork skills, it is more important to resolve conflicts. Because of the limited amount of capital, differences in ideas may well lead to dysfunctional conflict that will hinder the group’s performance.

So what could HP?

Money is not an important motivator; HP can use other ways; one of which is by creating an effective benefits plan. Through benefits plan, each employee is able to select the right benefit package that suits them just the way they want it. An intrinsic rewards system can be awarded occasionally (monthly) as expectancy theory tells us performance and rewards are closely linked by motivation. A way conflicts could be tackled with is through problem solving. This is when both party come to a resolution that both party is happy for. It is not advisable to attack this issue by forcing or yielding.

As Cathie said, it is about quality not quantity. The less money they have to spend forces them to use the capital more wisely. They enforced the idea that they would “refocus” investment in R&D to ensure it will maximize long-term impact on the company.

An interesting piece of research from R3, the association of business insolvency practitioners, on the problems of corporate debt.  R3 have found that one in five businesses (19%) are worried about the amount of debt they currently owe to their creditors.

The research, which explores the financial position of businesses in the UK, reveals that smaller businesses owe on average around £110,000 to the bank, £82,000 to trade creditors and £27,000 to the Crown (e.g. HMRC for VAT,.Income Tax Corporation Tax).

Yet it is debts owed to trade creditors that in fact cause the most concern. A third of all businesses (32%) say they are worried about the amount they currently owe in trade debts; while 24% are worried about finance, overdraft and banks loans; and 18% are concerned about Crown debts.

so why is the relationship with trade creditors so important? Why are business people worried about owing suppliers too much and less concerned about the tax man?

Competition for online sales is strong, particularly in the electronics market. Last year figures from IMRG Capgemini showed that online retail sales hit £5.46bn in December, an increase of 17% compared with the same month the previous year and up 3.8% from November, and there are some suggestions this could be doubled this year. More research from GfK also showed that in cold weather, 22% of people switch to shopping online, where it is very easy to make price comparisons and shop around for the best deal. So the online retailers need to be as creative as they can to get us to their website, catch our attention and persuade us to make the decision to purchase.

Try this festive approach to that marketing process from Misco – an online game called Poke an Elf! See how many elves and reindeers you can hit with a candy cane, avoid hitting Father Christmas or you will lose points – and while the game is loading, you will find that a selection of Misco’s electronic products are brought to your screen! Looks like the basis of a Christmas marketing lesson to me.

China reacted to the increased tensions after the artillery shelling of a South Korean island killed four people by urging a return to the six-party talks that include North Korea, South Korea, China, the United States, Japan and Russia.

The attack, which comes days after it emerged that North Korea was pressing ahead with its illegal nuclear programme, marks a serious further escalation of tensions on the Korean Peninsula.

Officials said “dozens” of artillery rounds had landed on Yeonpyeong Island in the Yellow Sea, 50 miles off the South’s northwest coast in an area close to a disputed sea border. Other reports suggested around 200 shells could have been fired in the attack which began at 2.34pm local time (7.34am GMT). Yonhap initially reported that 200 rounds had hit.

The incident is believed to have been sparked by South Korean military exercises in the area, which the North had objected to.

Senior figures in Beijing have even described the regime in the North as behaving like a “spoiled child.” The cables suggest China is frustrated in its relationship with Pyongyang. One from April 2009 quoted Chinese vice Foreign Minister He Yafei as saying that “North Korea wanted to engage directly with the United States and was therefore acting like a “spoiled child” in order to get the attention of the “adult.”

Range Rover has signed up more than 40 global “trendsetters” to tweet about their forthcoming city 4×4.  The idea came from an ad agency who are anxious to point out that “no one has been paid to tweet”.  However, the lucky trendsetters did get a free loan, and in some cases were given, a Range Rover.

Businesses can also legally employ the services of companies like Webtraffic 2010 who will buy “fans” or “likes” on Facebook.  According to Private Eye the price is quoted at “under 1,000 fans, it costs 10 cents, over 5,000 fans it’s 30 cents per fan only”.  Usocial.net will sell Twitter followers, with 100,000 costing $3,749.

As firms increasingly turning to social media to promote their brands, we perhaps shouldn’t be surprised that this form of media is being rapidly commercialised.

Imagine packed subways and railways every day. Now, only more people, and to pay more for it. That’s the future of rail travel in the UK. People think it’s ridiculous to be paying for tickets where you have to stand for hours.
The government has a public transport budget of 15.9billion pounds. The treasury has asked for two scenarios, a budget cut of 25% (4billion pounds) or 40% (6.5billion pounds). One way to help do that is by increasing fares.
The railway is paid for half by the tax payer and half by the fare payer, so if the fares go up, fare payers pay more and less tax revenue would be spent on public transport hence the government saves money. Fares can only rise by July’s inflation figure + 1 % which means a 6% increase in the price of the fare.
Consumers are worried because fares could rise up to 10% overseeing things in the future. In result of this, peak hours of tickets are going to change because people are going to try avoid travelling during peak hours.
Trains used right now by the UK are old and have done up to 5.5million miles. The supplies of new trains are on hold due to recession and the demand is said to increase by ¼ in the next coming years. This means consumers are going to be more cramped and are going to face increase in fare prices.
The cut of benefits due to recession and the increase in VAT along with the increase in fare rides are going to hit some people harder than others.