Untitled

One of the problems that Better World Books is facing in this case reminds me of the marketing strategy project I worked on for Gillette last semester. Though Better World Books and Gillette are very different companies with very different products, they share the challenge of communicating the value of their products and/or services to their consumers. In Gillette’s case, they know that their razors are the best available and they invest significantly in R&D to make sure this continues. However, the perceived value of a Gillette razor in the minds of customers is inconsistent with Gillette’s perception of value. To get customers to pay a premium for a Gillette razor, Gillette must use marketing to communicate its products superior value to the customer. 

Similarly, Better World Books is providing additional value to the consumer than traditional bookstores by carrying out social and environmental good through its operations. There are undoubtedly many consumers that care about social and environmental causes and would pay a premium to support a company that benefits these causes. Similar to Gillette, Better World Books is failing to communicate this additional value to its customers. In order to change its value perception in the minds of customers, it must more effectively communicate the value it provides. 

https://www.youtube.com/watch?v=Avs10q60qzM

When thinking about whether Intel can expand its highly successful “Intel Inside” marketing campaign into the mobile space, 2 questions came to mind. 1) What does Intel currently stand for? and 2) What is the consumer’s connection between PC and mobile?

1) This first question required me to look through the evolution of the Intel brand throughout the ‘90s, culminating in the Blue Man Group ads (such as the one copied above) that don’t even have a computer in them. As Lewnes said in the case, “As PCs become an integral part of the lives of even more people, it is incumbent upon us as marketers to bridge the gap between the technical detail and the emotional experience of using cutting-edge technology.” I believe this expands into mobile devices as this is becoming a substitute for many of the uses of PCs - emails, news source, etc. At the time of the case, Intel has already positioned itself as a creative and innovative company. Because of this, I believe the Intel brand has the potential to expand into the mobile device market. With ads focused on the creative and innovative vs. the technical details, the brand can extend outside its traditional market into new products that are creative and innovative. 

Bravo has done a phenomenal job positioning Burberry in a gap in the market and choosing that correct differentiators that matter to its customers, who range from successful businessmen to British royalty. Burberry’s positioning in the center of fashion-forwardness and classic style mitigate the risks it facing going forward. By not chasing the next fast-fashion trend, Burberry protects itself from having a big fail, but also manages to keep up with fashion trends so that it is never seen as outdated, rather classic.

https://www.youtube.com/watch?v=siHU_9ec94c

Anheuser Busch-InBev is a perfect example of a company that must pursue a house of brands strategy. The ad above played during the Super Bowl this year was Budweiser’s bold attempt to separate itself from the growing craft beer segment and stop its 15+ year decline in the United States. Many criticized Anheuser Busch for presenting a campaign that criticized the craft beer segment, a segment they have gotten more involved in very recently with the acquisitions of various craft breweries, one of which even has a Pumpkin Peach Ale (or something similar). The problem with this criticism is that this wasn’t an ad for ABI, it was an ad for Budweiser, a beer that is in fact in targeted at a consumer very different than the craft beer drinker.

Though ABI does separate its brands and markets them individually, many consumers still have the association to ABI when they think of Budweiser or Goose Island. This is both good and bad. The association with ABI is also an association with a company who is the leader in the beer industry. However, this association makes it difficult to run campaigns like this Super Bowl commercial. 

Singapore Airlines has created its brand around its superior customer service. Companies are able to stay ahead of the competition by having something that others are unable to copy. SIA has succeeded in this by achieving superior customer service through its entire operational structure: from employees, to product, to culture. SIA is consistent and disciplined in putting the customer first, which has allowed it to maintain a loyal customer base and continue to prosper in times of industry downturns and economic struggles. By centering its employee strategy, its product strategy, and its culture around the needs of the customer, SIA has achieved  outstanding customer service and impressive financial performance. In order to continue to succeed, SIA must continue this strategy, even when financial pressures suggest otherwise. 

In order to compete in the world market, Concha y Toro must differentiate itself by creating an association between the beautiful country of Chile and wine. With unbelievable imagery coming from this amazingly diverse country, it should be easy for Concha y Toro to romanticize the country and link this romance to its wine. Romance and wine go hand-in-hand, as do the desire to have a refreshing glass of wine while watching the sunset over a beautiful landscape. Concha y Toro must create a consistent brand image that can be applied across its sub-brands. All the brands do not have to be the same, but they all must tie back to the imagery of their stunning home country. 

After reading through Roger’s Five Factors of new product adoption and applying them to 3D televisions, the lack of adoption of this product is unsurprising. 3D televisions fall short on nearly every factor that Roger outlines for successful product adoption. 

1. Relative Advantage: While 3D television does arguably provide an advantage over HD television, many consumers seem not to perceive this advantage as significant. As mentioned in the reading, it is perception, not actual advantage, that is most important in adoption. 

2. Compatibility: Though a 3D television fits in with the living room TV-watching experience, it requires extra accessories (glasses) that detract from the comfort of this experience and clash with the ease of simply turning on the TV.

3. Complexity: While not overly complex, 3D TV’s do require equipment beyond that used with standard definition of HD TV’s. 

4. Trialability: This factor may be the most challenging for 3D television. First, the high cost of the TVs presents a high risk to consumers. Additionally, the lack of content available in 3D from cable providers, etc. decreases the benefits available to early adopters. 

5. Observability: While a television is visible to house guests, there is limited observability because consumers are not seen using the product outside of their homes. 

A Corona and a beach please!!

I have to say that the beach ads just work. In 35 degree Boston weather on a Wednesday afternoon, they have me craving a Corona, even if I have to drink it outside in the cold.

The beauty of Corona’s marketing strategy is its simplicity. There is never much going on in the ads, and they all focus on a beach and relaxation. This compilation of Corona ads demonstrates the consistency of its advertising. Following Heineken’s lead of marketing to specific regions or changing the “Fun, Sun, Beach” theme would undo this consistency and threaten Corona’s successful brand image. 

Black and Decker’s struggle to achieve market share in the tradesmen sector can be largely attributed to an incorrect perception in the eyes of the target consumer that leads to diminished value of the product to that consumer. Because of a trademan’s association of the Black and Decker brand with household goods, he assumes it is not adequate for the professional work he needs to accomplish. Further, he believe that using this “inferior” product will actually negatively impact both his work and his image in the workplace. 

Black and Decker is able to avoid this problem in the industrial segment because the buyers are large companies and are therefore not swayed as significantly by outside associations and misconceptions. In order to differentiate itself from its household brand, Black and Decker must launch a drastic rebranding campaign to improve its perception in the eyes of the tradesmen. 

Both drastically changing the color of its tradesmen segment tools and changing the name of the brand (while keeping some association to the Black and Decker origin) may achieve the differentiation needed to win back the tradesmen. If successful, Black and Decker may see a turnaround in the tradesman’s perception of its tools, as shown visually below. 

vs.