New Strategies for E-commerce

Best Buy

Leading the electronic commerce industry is Amazon, an American brand that boosts sales from e-books to home appliances. Amazon attracts and retains customers through its easy to navigate website that offers low priced products. An added incentive is the Super Saver Shipping program which offers free shipping for eligible orders $25 or more. In the e-book department, the newly launched Kindle Matchbook program will allow customers who have bought paperbacks new from them to purchase an electronic copy for free or below $2.99.

On top of Best Buy’s Lowest Price Guarantee policy, Best Buy recently followed suit in the ‘ship from store’ trend, a move that aims to counter online competition from Amazon. Other retailers that have already done so includes Target, Nordstorm, Macy’s, and Gap. Ship from store allows customers to order online, but rather than receiving their goods from a warehouse, the goods will be shipped from a nearby participating location. Ship from store is more cost efficient as it decreases delivery expenses and reduces inventory.

As companies continue to combine e-commerce and ship from store, each brand would be required to develop compelling points of difference to outshine their competitors and find a way for consumers to open wallets.

http://www.usatoday.com/story/tech/2013/09/28/retailers-ship-from-store/2862405/

Image from: 1380232001000-AP-Earns-Best-Buy.jpg

Purple Packaging is Fair Game

Cadbury Chocolate Bar

In a trademark case concerning color, Pantone 2685C to be exact, U.K. Court of Appeal has ruled in favor of Swiss food company, Nestlé over British confectionery company, Cadbury. Legal dispute between Nestlé and Cadbury over the purple trademark have been ongoing since 2008. The latest ruling comes after judges determine Cadbury’s trademark application lacked clarity. Thus making Pantone 2685C and other shades of purple an packaging option for other chocolate manufacturers.

Using Al Ries and Jack Trout’s explanation of positioning, while Pantone 2685C is not exclusive to Cadbury, Cadbury holds a competitive edge in the chocolate market having been first to adopt the colour on its wrappers. Should any company decide to add or change their packaging colours, they would need to implement a strong campaign to overtake Cadbury’s current market. As consumers will continue to associate purple wrapping with Cadbury since it has been a part of the brand’s image longer.

While Nesté has commented that the company does not plan on incorporating Pantone 2685C into its packaging, this five-year long legal battle raises the questions, what does Nestlé stand to gain from spending its resource on a trademark that does not affect them from a marketing perspective?

http://www.bloomberg.com/news/2013-10-04/cadbury-s-purple-reign-ended-by-u-k-court-in-nestle-appeal.html

http://www.theguardian.com/business/2013/oct/04/cadbury-dairy-milk-purple-trademark-blocked

Image from: http://www.bloomberg.com/image/i.In.ziJlREs.jpg

Apple: High Rank, High Performance

iPhone 5S Silver

With the publication of global brand consultancy, Interbrand’s Best Global Brands 2013 report, Apple has overtaken Coca-Cola’s 13-year long reign as #1 global brand. Interbrand, bases its rankings on analyses of financial performances, role of brand in purchasing behavior, and brand strength. Since Apple’s debut of #36 in 2000, Apple’s brand value has increased nearly 15 times the amount of its initial value to USD $98.3 billion. The demand for Apple products is on the rise as the company continues to incorporate high performance and sleek designs into their devices.

Unlike smartphone counterpart, Blackberry, Apple has been able to accurately forecast trends and consumer needs. In the case of the recently released iPhone 5S and iPhone 5C, a record breaking 9 million units were sold during the first weekend. Apple has responded to market demands of cheaper phones by offering the 5C at a lower price, while upholding the brand’s point of difference in luxury with the 5S.

Despite the Foxconn criticisms, patent trials, and the guilty verdict of e-book price fixing, Apple’s brand strength remains strong as proven by the increase of USD $21.748 billion in brand value. However, Apple should evaluate where they stand in the market in comparison to their competitors using Porter’s five forces.

http://www.financialpost.com/markets/news/Interbrand+Releases+14th+Annual+Best+Global+Brands+Report/8975185/story.html

Image from: http://graphics8.nytimes.com/images/2013/09/17/technology/personaltech/17pogue-iphones/17pogue-iphones-blog480.jpg