Monthly Newsletter Presentation

1
Monthly Newsletter Presentation

• October 2009

Quick Links

• Article Abstracts
• Commercials
• Videos

2
Article Index

• Who is Wearing the Power? (Chapter 1, 4, 5, 8,
  12)
• Phone Wars (Chapter 2, 7, 8, 11)
• Alice Takes Care of Everyone (Chapter 2, 11, 17,
  18)
• Private Labels to Impress NYC (Chapter 5, 9, 10,
  13)
• Want a Video with that Yoohoo? (Chapter 2, 8, 14)
• Asda Asks for Customers Opinions (Chapter 5, 7,
  9, 14)
• Twittering the Latest News (Chapter 10, 12, 17,
  18)
• The Gatorade Flop-Sweats (Chapter 1, 2, 11, 17)
• Is There Room For One More? (Chapter 2, 13, 16,
  19)
• Nothing to Wear? (Chapter 4, 5, 10, 16)
• Product Placement on HSN (Chapter 2, 16, 17, 18)
• Starbucks in Just Seconds (Chapter 2, 4, 8, 11,
  13)
• Localized Pricing (Chapter 14, 15, 16)

3
Video Index

• Gilt.com (Chapters 4, 10, 17)
• Audi (Chapters 6, 10)
• My Macys (Chapters 9, 16)
• Hermes (Chapters 7, 10, 13)

4
Commercials Index

• Mac v. PC (Chapters 2, 18)
• GameStop (Chapters 4, 5, 16)
• Wendys (Chapter 10)
• iPhone (Chapters 10, 17, 18)

5
Who Is Wearing the Power?

• Retailers of clothing for teens formerly targeted
  their marketing efforts toward kids rather than
  their parents.
• For example, Abercrombie Fitch and Hollister
  stores play loud music and set the mood with dark
  lighting.
• Some retailers now believe teenagers have less
  purchasing power as their parents discretionary
  income decreases, so they are targeting parents
  instead.
• For example, Aeropostales new campaign is called
  TTM, or Target the Mom.
• Buckles has even adjusted store hours to
  accommodate parents schedules better.

6
What Do You Think?

• Is it short-sighted of retailers to change their
  focus and attempt to please parents?
• Is it a mistake for AF and Hollister to ignore
  the changing economic picture?

7
Phone Wars

• Nokia created the worlds first smartphone, but
  the development of the iPhone and Blackberry have
  overtaken the clout of Nokias version.
• Although iPhone and Blackberry dominate in the
  United States, there are many emerging markets in
  which Nokia remains dominant and has a golden
  opportunity to deliver smartphones.
• Nokia already holds a 60 percent market share in
  India.
• Emerging markets like Latin America, Asia, and
  India do not need the best smartphone a
  mid-range smartphone at a lower price has greater
  value for these customers.

8
What Do You Think?

• Assess Nokias market position in North America.
• Provide a brief SWOT analysis of Nokia.

9
Alice Takes Care of Everyone

• Alice.com sells household items such as bath
  tissue and Clorox wipes online.
• Consumers who buy their household items from
  Alice.com do not have to remember to pick up
  these basics when visiting the grocery store.
• The site helps consumers budget, as well as
  reminds them when they need to reorder.
• Consumer packaged goods (CPG) companies have
  partnered with Alice.com to send targeted samples
  to their customers.
• The CPG companies can now measure, more quickly
  and accurately, which consumers respond to a
  promotion.

Alice Web site
10
What Do You Think?

• How is Alice.com leveraging customer data?
• Would Alice.coms business model
• work in product categories other
• than CPG?

11
Private Labels to Impress NYC

• Duane Reade, the 256-store, New York-based chain,
  is revamping its private-label products.
• Private-label branded products are developed and
  managed by the retailer.
• Its new brand, DR Delish, offers a wide variety
  of products, including fresh sandwiches, salads,
  and fruits, that are similar in quality to
  national brands.

Duane Reades Web site
12
What Do You Think?

• Why is Duane Reade developing private-label
  products?
• What other products might Duane Reade offer under
  its private label?

13
Want a Video with that Yoohoo?

• Redbox is a vending machine-style rental kiosk
  for DVD movies, located in grocery stores and
  McDonalds restaurants.
• There are already 15,600 Redbox kiosks in the
  United States that rent approximately 7.5 million
  movies weekly.
• The rental fee is 1 per day.
• The target market for Redbox is lower-income
  households with larger families, which is not the
  primary market for Blockbuster or Netflix.

Redboxs Web site
14
What Do You Think?

• Who will be most successful in the DVD rental
  market Blockbuster, Redbox, or Netflix? Why?
• How might Netflix and Redbox use STP to enhance
  their sales and profits?

15
Asda Asks for Customers Opinions

• Asda, the discount department store in the United
  Kingdom, is conducting a 18,000-customer focus
  group, called the Pulse of the Nation.
• Customers give their input about new products
  that Asda might carry.
• Asda listens to customers but also realizes that
  they do not always tell the complete truth.
• For example, customers may claim they only eat
  fruits and vegetables, when in fact, if given the
  chance, they will make an impulsive chocolate bar
  purchase.

16
What Do You Think?

• What do you think of Asdas move to get customers
  involved in buying decisions?
• What opportunities do you see from online
  consumer panels for this and other functions?

17
Twittering the Latest News

• Small companies utilize Twitter to send out
  announcements about promotions or new products.
  It is an inexpensive marketing tool.
• Large companies utilize Twitter to maintain
  personal contacts with their customers. They can
  respond to a specific customer complaint
  instantly.
• Social media allow customers to stay engaged with
  a brand they allow companies to listen to their
  customers.

18
What Do You Think?

• How are retailers using Twitter and Facebook to
  communicate with their customers?
• Why arent these social network tools reaching
  all potential customers?

19
The Gatorade Flop-Sweats

• Gatorade has been performing poorly after Pepsi,
  its parent company, undertook a rebranding effort
  that renamed the drink just G.
• The Whats G? campaign appeared successful
  after its introduction during the Super Bowl
  tremendous buzz was created due to curiosity
  about what G really was.
• Gatorade maintains a 75 percent market share in
  the sports drink category, but this share is
  decreasing.
• Now, Gatorade is going back to its core and
  targeting customers who work out and are thirsty
  for a sports drink.

Gatorades Web site
20
What Do You Think?

• Was it a good idea for Pepsi to tinker with an
  established market leader?
• If the size of the sport drink market continues
  to decline, what options does Pepsi have to
  improve sales of Gatorade?

21
Is There Room for One More?

• Walmart and Best Buy are trying to capture every
  customer shopping for electronics, but HHGregg, a
  118-store chain, is growing quickly to capture
  customers who once shopped at the now bankrupt
  Circuit City chain.
• HHGregg sells more expensive models in an upscale
  environment.
• Salespeople undergo 280 hours of training in
  their first year.
• HHGreggs gross margins are higher than Best
  Buys, but the chain has had to bring in some
  less expensive products, like video game
  consoles, to maintain its sales in the current
  economic environment.

HHGreggs Web site
22
What Do You Think?

• How does HHGregg differ from Best Buy?
• What theories suggest HHGregg might succeed?
  Which ones imply it might fail?

23
Nothing to Wear?

• In this economy, consumers are buying accessories
  such as belts, bags, and jewelry to spice up
  their wardrobes.
• Apparel retailers are focusing on their
  accessories, such as by opening stand-alone
  stores.
• Accessories achieve approximately double the
  profit margin that apparel does they also take
  up much less space in a store.

24
What Do You Think?

• When was the last time you purchased a new item
  of clothing?
• Why might one accessory-only store fail while
  another, seemingly similar one succeed?

25
Product Placement on HSN

• HSN, the home shopping network, does not sell
  traditional advertising in the form of
  commercials. However, it will start selling
  advertising in the form of product placements.
• For example, the chef Jamie Oliver will make a
  pasta dish using Barilla pasta with the brand
  displaying on the screen. He will also mention
  the positive benefits of the product such as
  multigrain and a great source of protein.
• Product placement is a type of paid advertising
  that viewers cannot fast forward through, because
  it is integrated into the TV content that they
  have chosen to watch.

HSNs Web site
26
What Do You Think?

• Why is HSN adding product placements of brands
  into its programming?
• Are product placements on HSN different than
  those on other networks? If so, how?

27
Starbucks in Just Seconds

• Starbucks is introducing a new instant coffee,
  Via.
• The Via instant coffee packets will allow more
  coffee drinkers to enjoy Starbucks coffee without
  paying premium prices.
• Via will compete with Nescafe.
• Customers may prefer Via because it reminds them
  of being in a Starbucks store.

Starbucks Vias Web site
28
What Do You Think?

• Do you think Starbucks regular clientele will be
  willing to try Via?
• What impact will Via have on other Starbucks
  products?

29
Localized Pricing

• National retailers are pricing and marking down
  product prices according to the unique demands of
  their different markets.
• For example, New York City exerts different
  demands than Kansas City.
• A Banana Republic store in the World Financial
  Center in New York offered a skirt for 39.99,
  marked down from 69. At the SoHo store, a few
  blocks away, the same skirt was 33.99.
• By marking down products based on local demand
  and inventory levels, the company can maximize
  its profit margins.
• Swimsuits might be marked down in Maine in the
  winter, but in Florida, they would remain full
  price.

30
What Do You Think?

• Why do retailers sometimes use different
  markdowns in different stores?
• How do retailers decide which stores should
  charge which prices?

31
Video Gilt.com

• What is Gilt.com?
• Why is it successful?

Video Gilt Groupe
32
Video Audi

• Why has Audi decided not to cut back on its new
  cars, as other car manufacturers have?
• What is your perception of Audis brand?

Video Audi
33
Video My Macys

• What is the My Macys initiative?
• How might this initiative help Macys?
• How might this initiative help Macys customers?

Video My Macys
34
Video Hermes

• How has Hermes maintained and grown its sales
  this year?
• What has Hermes done differently, compared with
  other luxury brands, in the modern economy?

Video Hermes
35
Commercial Mac v. PC

• What is the purpose of this commercial?
• Who is winning the Mac versus PC war?

Apples commercial
Apples Web site
36
Commercial GameStop

• What is the purpose of this commercial?
• Is it successful?

GameStop Commercial
GameStops Web site
37
Commercial Wendys

• What is the purpose of this commercial?
• Is this a successful commercial?

Wendys Web Site
Wendys Commercial
38
Commercial iPhone

• What is the purpose of this commercial?
• Is it successful?

iPhone Commercial