Friday, February 29, 2008
Last year Payless Shoe Source's revenues were down. To drum up business the company has introduced an ad campaign "Buy one, get one 1/2 off everything". Payless hopes that people feeling the pinch and looking to save money will consider this a great bargain and make a bee line for the nearest store. The thing is Payless is also hoping shoppers will use the money they think they are saving to purchase additional items from the store.
Thursday, February 28, 2008
What is Starbucks saying? Gee folks we're sorry we expanded our business so fast. We hired people so fast and did not train them properly, and oh by the way we apologize again for the slip in service by serving you luke warm and weak Grande Soy Caramel Macchiato. But we as a company are going to fix all that by standing in solidarity with our employees and close all of our 7,100 stores at once (why not break it down by region, state, by block or at the very least let go of the under performing employees) and give them a 3 hour refresher course on how to make coffee to prove to our customers that we mean business.
The strategy may work. It's good to see a business get back to its core principals and admit publicly they have made some mistakes and would like to ensure its customers they are cleaning up their act - so please continue giving us your patronage.
Wednesday, February 27, 2008
Nestle's introduction of different flavored Kit Kat bars in the UK has the sales of their favorite cash cow floundering. Strawberry and lemon cheese cake Kit Kat bars? What were they thinking! The British public are rebelling. Obviously Nestle needs to change their tactical planning and quick. One thing I know about the British is that they are all about tradition and they want their chocolate covered crispy wafer back. Since the Kit Kat was first introduced in 1935 the candy has been a hit. Why change perfection.
Tuesday, February 26, 2008
Monday, February 25, 2008
Verizon's marketing campaign "Can you hear me now" is the main reason I switched from AT&T to Verizon in the first place. Visually seeing the Verizon guy with his back up crew of customer service reps, technology folks, installers and a helicopter hovering over him as he walks through corn fields saying can you hear me now is brilliant. Verizon is stating even though you don't see us physically, Verizon follows you on every call you make, and are there to help you. Since switching to Verizon I rarely have dropped calls and customer service is always good. Now I have heard from people who have not had the same experience as I, but Verizon works for me.
Friday, February 22, 2008
A second element found in the story is utility. Consumers want to be satisfied by a good product. Blu-ray offers consumers what HD DVD does not; to be able to record, rewrite and playback on HD.
Another element to the story is the second mover strategy. The second mover strategy is a theory that advocates observing closely the innovating of first movers and then introduce new producs that improve the original offer. Sony Corp kept abreast of the changing market and the public's need for more storage capacity than traditional DVD's. Blue ray is also used in most leading consumer electornics. Sony of course will need to be careful or they too may face the possibility of being scooped (second mover strategy) by another competitor.
I genuinely wanted to see if anyone could tell the difference. Let the experts who drink bottled water differentiate.
So let the analysis begin. The tasters were three experts and one non expert. Remarkably the non expert was the only one to pick two out of the three bottled and tap waters correctly. All unanimously picked the Poland Spring Water. When asked all admitted that they drank Poland on a fairly regularly basis and therefore it was easier for them to pick it out. I have to admit Poland is the only water that I see marketed on television consistently and is placed up front on shelves in supermarkets conveniently where consumers can see it. Poland is rated one of the best selling bottled water in the country and is a subsidiary of the Nestle corporation.
Thursday, February 21, 2008
Wednesday, February 20, 2008
Nestle is known for its sweet creations. What is also sweet about Nestle is that it sponsors and supports charitable organizations such as Meals on Wheels and the American Diabetes Association to name a few.
Tuesday, February 19, 2008
Friday, February 15, 2008
Successful companies have ingrained in their employees from the mailroom up that they should constantly be aware of their companies business. To live, eat and drink the companies business and marketing philosophies.
Companies often team up with other companies to benefit each other. i.e, Nestle teamed up with Burger King to sell their bottled water in BK's restaurants.
Companies will team up for a cause. Poland spring water promotes saving/helping the environment by changing their bottling practices as well as donating money to help the environment.
Marketing a product can be done on the www, print ads and through stores. A manufacture of food products may choose to promote their new line of products by enticing established customers with coupons or other promotions.
Define Marketing - Process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives
MA - Did not know
What is Utility - Want-satisfying power of a good for service.
MA - Did not know
Describe the exchange process - Activity in which two or more parties give something of value to each other to satisfy percieved needs.
MA - Buyer and Seller. When a seller has a product or item that a buyer needs.
What is the sales era - Prior to 1950's. Creative advertising and selling will overcome consumers resistance and convince them to buy.
MA - Sales era was after world war II when products were in demand. Companies began to compete with each other for customers.
What is the marketing era - Since 1950's. The consumer rules. Find a need and fill it.
MA - 1960's
What is the relationship era - Since 1990's. Long term relationships with customers and other partners lead to success.
MA -1980's when companies produced products that had name recognition among their customers.
What is a sellers market - Market in which there are more buyers for few goods and services.
MA - a sellers market is when there is less product on the market and more buyers.
What is a buyers market - Market in which there are more goods and services than people willing to buy them.
MA - A buyers market is when there is more inventory on the market than there are people.
Parents tired of paying high prices for sneakers for their kids can thank Stephon Marbury. Marbury has introdced a sneaker for under $20.00. Marbury is definetly old school and believes that because a pair of sneakers is priced expensively, does not mean they will make you jump over buildings in a single bound.
Thursday, February 14, 2008
Nestle is partnering with Burger King restaurants. Nestle's Pure Life Bottled Water will now be sold in all 7,000 Burger King restaurants nation wide. Pure Life is ranked third in U.S. bottled sales.
With Nestle as a recognized name in the food industry, this partnership will be sure to increase Nestle's share of the U.S. bottled water market.
Tuesday, February 12, 2008
When we think of Nestlé what comes to mind is chocolate. But, before the production of chocolate Nestlé's greatest invention was a replacement milk formula to save children's lives.
Nestlé a pharmacist developed a product that was greatly needed. In the 1860's he invented a food product designed to combat infant mortality due to malnutrition. Prior to Nestlé 's invention there were no other products like this on the market. He called his new formula Farine Lactee Henri Nestlé.
Nestlé found success when his formula saved the life of a premature infant who was not able to breastfeed nor could tolerate his mother's milk. Doctors and mothers took notice and soon the formula was being produced and sold throughout Europe.
Thursday, February 7, 2008
Nestlé is more than cocoa. Nestlé's portfolio and business lines are widely diversed. Holdings include Stouffer's, Carnation, Purina and Poland Spring to name a few.
Wednesday, February 6, 2008
I loved this commercial. The passenger in the car, the squirrel and the rest of the animal kingdom are screaming their heads off because they believe the car would not stop in time to prevent a disaster. The driver gives a cocky look, confident that his Bridgestone tires have traction that can maneuver around anything. Hence, trust Bridgestone Tires to get you where you are going safely.
Monday, February 4, 2008
The housing slump is due in part to sub prime lending. Home owners bought more house than they could afford at high interest rates, no money down, and adjustable rates. Housing prices have sky rocketed and homes in my opinion have been valued more than they are worth. The combination has left home owners unable to remain in their homes as well as not being able to sell them.
Friday, February 1, 2008
Even Starbucks has taken note of the economy. With year end earnings less than stellar and slowly grinding to a halt, Starbucks has realized that consumers are holding on to their money. Job losses combined with the home mortgage mess and uncertainty in the financial markets have loyal customers cutting back on the java.
To lure these cutomers back and to bring in new ones (like me) who felt that paying $6.00 for a cup of coffee was better spent on contributing to a savings plan, Starbuck's has introduced the $1.00 short coffee in response to competition from Mcdonald's and Dunkin Donuts offering gourmet like coffee at affordable prices.
Also cutting out the expanded lines of breakfast sandwiches which were not sellng plus "the aroma was interfering with the coffee" made management at Starbucks realize they were in the coffee business after all and were slowly losing their niche. Changing the formula that had worked for them in the past was cutting into the company's profits