20700457_DongSoo Joseph Rhee_Entry 12

Coffee ? Burger ? McDonald !

What comes into your mind, when you think about coffee? Probably answers would be latte, cappuccino, frappuccino and so on. Then what about the shops that serves coffee? What comes into your mind ? I have no doubt that franchises like Starbucks, CoffeeBean or some other coffee shops. However now McDonald serves their own coffee, and they have no doubt that they are ready.

Summary
Thirty years ago Janice L. Fields who was a brand new crew member of McDonald in Dayton, Ohio. Now she is a cheif operating officer of McDonal USA. She is responsible for for 13,800 restaurants, 700,000 employees, and $7.9 billion in annual revenue. After she was promoted to COO in 2006, selling of Bigmac raised rapidly, and still rising ever since.

Objectives
As an Chief officer who has done incredible job, she is now confronting huge challange, breakfast market. In order to do so, McDonald is now adding specialty McCafe coffees, such as cappuccinos and lattes. They see this will bring the breakfast market back to them.

Risks
However they have some risks too. In order to server these coffee, they have to install a brand new coffee machine to all the franchises. On top of that, serving various kinds of coffee, it might slow down the serving rotation and the waiting time for the customer. When think about the most advantage they have, which is hot food in short period of time, this could risk their business.

Opportunity
After years of test period, Fields say they are ready. To reduce the delay time, most of the processes has been automated. Crewmembers ? all they have to do is push a button and serve them to the right person at a right time. Also detailed instructions are written on the paper, such as how many times they have to stir for the specific coffee, and so on. They think it will be successful.

Opinion
I personally think this is a wonderful idea. I like McMorning meal very much, but I and my friends always complained about Mcdonald having only one kind of coffee. Therefore I foresee this event as a huge opportunity for McDonald.

However as it was mentioned above, I see some problems too. A lot of people comes to McDonald at morning. And huge percentage of them are customers for drive-thru, which means they are fairly busy customers. If the process gets slowed down even few minutes, it will be tremendous of damage to them. Also the quality of the coffee would be the problem too. When people start to look for a specific coffee, that means they are looking forward for the quality too. However I doubt that McDonald's Coffee is more delicious than the one in the proffessional coffee shops.

I suggest some solutions. Just like on the article, the serving process cannot be slowed down, never ever. This will require more seviere training for the crew members. On top of that they would have to improve their quality of coffee, or develop a special coffee that goes well with their food. Afterall, people are comming to get food, not only for the coffee.

I think through this project, McDonald will have incredible change and take the breakfast market fast.

Annotation : Written by Michael Arndt on Businessweek journal "McDonald's Specialty Coffee Kick". URL: http://www.businessweek.com/print/bwdaily/dnflash/content/may2008/db20080514_138620.htm

Entry12_20400495

How to Build Brand Friendship

Like the interaction among human being, it is essential for the brands to have interactive relationship with the customers. This article introduces four essential elements for building relationship with the customers.


Belonging

How can you make the customers feel belonged when they use your brand? The most important factor in branding is relevance. Brands that generate the strongest sense of tribal identity are so relevant to the wants and needs of their customers that they generate a natural gravitational pull.

Friendship

To build friendship with the customers, you need to have consistency. As with human friends, the brands we adopt give us a sense of comfort and familiarity. Our chosen brands have earned our trust through another essential aspect of branding which is consistency.

Dependability

To acquire dependability from customers, it requires time. Just as it does with human relationships, it takes time for brands to develop strong bonds with their customers. Infatuation is , but infatuation never lasts. It turns into either ambivalence or attachment depending upon how well the brand promise is delivered.

Awareness

Brand relationships, just like human relationships, need consistent attention and upkeep in order to stay fresh and top of mind.

Think about the strongest brands out there: Southwest Airlines, Apple, eBay, even Caterpillar. They understand the principles of belonging, friendship, and dependability, and they treat their customers accordingly. They know what they stand for and refrain from chasing business that would compromise their hard-won loyalty

Comments

The article is emphasizing on belonging, friendship and dependability in creating relationship with customers in branding. In class, we learned that most of the Korean brands don’t seem to have a friendly image. Instead of a friendly image, they are more authoritarian and have a stiff brand image. The article quoted Kerry Livgren, a famous rock star in Kansas. He said that “The only way to have a friend is to be one." The Korean companies should keep this word in mind all the time.

Annotation Steave Mckee, ‘How to Build Brand Friendship’Businessweek, May 9, 2008URL -> http://www.businessweek.com/

20700443: Entry-12

McDonald's Loses Its Trans Fats

Summary:

McDonald's is the world's largest restaurant chain, recently decided to cook their products without trans fat. The company's goal is to avoid trans fat from most of their cookies, sandwiches, pies by the end of the year. However, some products are already prepared free of trans fat. McDonald's didn't remove trans fat for a long time, as they didn't want to spoil the taste of their product, especially French Fries.
As one of the McDonald's executives said that their company instead of putting the highest cost on product they share expenditures with customers, so they don't need to pay much money. In addition, nowadays McDonald's sales growth rate decreased as consumers become more cautious. However, executives of that company are optimistic about sales of the rest for the year.
Moreover, McDonald's is not going to remove Dollar Menu, though many franchises complain of their non profitability.

Opinion:

It's often difficult for especially big companies to change its products or target of their consumers, because there's uncertainty of expectations. Each small change can have a great influence on sales, products, employees. Therefore, many companies slow the time of changeover; why do they need to change in general? Some do it because current product doesn't bring profits, some - health pressure. And it's efficient if the company cares about its consumers, their purpose is not just to sell the product, but also to be sure that it won't damage their health. This is all about customer relationship.

Janet Adamy, McDonald's loses its trans fat, The Wall Street Journal, May, 2008
http://online.wsj.com/article/SB121151133018416567.html?mod=SmallBusinessFranchising_RelatedStories

Entry12_20700347

Making Airline Travel Feel Less Like Torture

Have you ever gotten abroad a plane? If you have, which airline did you use? Did you have a good time in that airplane and feel comfort? These days, there are keen competitions among many airlines because of the airplane seat.
SUMMARY
According to this article, many airlines care about a quality of an airplane seat. Usually, passengers feel inconvenience because they should stay in a narrow and incommodious place during flight time. However, Glenn Johnson, who is the chief designer at B/E Aerospace, thought that airplane seat can be a work of art. Airlines are installing new generation airplane seats in first class. In addition, some airlines install such seats in economy class. Therefore, a lot of passengers feel satisfaction, and recently, suppliers who offer such seats are busy due to the high demands of those seats.
OPINION
Because of the globalization, the number of airline users is becoming large. I think that airplane seat’s innovation is very nice news to many people who often use airlines. There is no precedent case, so if people who work at airline care of this point, airplane would be more convenient transportation.
Attention – Through the advertisement and the news, many people can hear about new and comfortable seat. Airlines can attract various kinds of customers.
Interest - New generation seats are lighter and more comfortable than ever before, so people who heard about such airplane seats, they would wonder about that. Later, passenger would like to use the seat which is very attractive. Specially, regular customers of airlines may be great on this amazing news.
Desire – If customer uses an existing seat of airplane, he or she might feel inconvenience and want to use better facilities. I think that such seats which have good quality can appeal to certain customers who have to have nice condition for many reasons. For instance, to athletes, politicians, and other certain jobs, this news is very attractive specially.
Action – To tell the truth, comfortable seats are installed at first class in most airlines till now. But if many airlines install more nice seats at their airplane, more customers could use good facilities and also, airlines could save some money because they can save some cost of fuel by light seats.
This is a globalized world. People use airlines when they go abroad. However, the number of customers who use domestic air service is increased. Airlines that offer more convenient seats to passengers could increase their market share and give good image to customers. Therefore, airlines need to improve their facilities’ quality.

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Annotation

Daniel McGinn, ‘Making Airline Travel Feel Less Like Torture', NEWSWEEK, Mar 24, 2008
URL -> http://www.newsweek.com/id/123470

Entry_12 20500687

Advertisers to Consumers:
We’ll Text You
Cell phone Messages Find a Mobile Niche; Customers Ask for It

Prologue
Are you aware of mobile advertising? Is it too broad to identify? Then, think about text-message advertising that we daily receive through our cell phone. This article captured my mind since feel more familiar with text-message advertising. This is an effective way of advertisement over many other types of ads such as web banner ads and e-mail ads.

Summary
This article is about mobile advertising specifically using text-message. Emily Steel analyzes how effective this text-message advertising is and current trends associated with mobile advertising. Steel mentions that companies spend on mobile-message advertising now about 88% of the total $1.7 billion spent on mobile ads. According to Matt Jones, a director of mobile strategy for Gannett, the text message approaches to customers to develop interaction between companies and customers. Through this analysis, I could draw a simple conclusion which text message is such an effective tool to create personal relationship as if this is one part of customer relationship management (CRM) by companies.

My Analysis & Opinion & Suggestion
Based on Steel’s ideas about mobile advertising, I, as a business student, I want to add SWOT analysis from my view point of mobile marketing.

Strength: 1) compared to other sources of mobile advertising, text-message advertisement carries newness of advertising, 2) it is easy to approach to almost every potential customers who has cell phones, 3) text-message ads are easier to measure the result than mobile web ads, 4) it is personal though it is sent as a group text-message.
Weakness: mobile advertising has a challenge toward limited spaces for advertising in which only 160 characters are available to deliver ads.
Opportunity: find a mobile niche effective way to deliver mobile ads. Focusing on simplicity, clarity, attention getting, and interesting, text-message advertising creates higher opportunity to be the number one.

Threat: perhaps it delivers too much unnecessary information and it is also too commercialized. It becomes annoying if its target is wrong so delivering unnecessary ads and avoidable contents.

Suggestion
I think companies should consider individual’s personal interest more thoroughly. For me, I am interested in cosmetic brands and its new products as well as special sales. My reaction to text-message ads such as coming-up sports games, I get annoyed by this ad and I will also complain about the way of sending the ad through text-message. As Steel introduces Yahoo with 4INFO, one of the most-active players in text-message advertising, 4INFo provides the technology for Yahoo to publish its content, such as news updates, horoscopes, sports scores and weather forecasts, via text message. I think partnership is another key factor to achieve the goal of penetrating mobile advertising. In addition, as I mentioned in SWOT analysis, opportunity should content customers’ interest the most, which are anything that pulls customers’ mind out. Therefore, identifying customers’ interests, wants, and needs is crucial to determine accurate target segments and manage efficient customer relationship.

Annotation
Emily Steel, Advertisers to Consumers: We’ll Text You, The Wall Street Journal, May 27, 2008 http://online.wsj.com/public/article/SB121185056833021519.html?mod=2_1567_leftbox

Entry: #12_ St.ID: 20500297 :-)

The Rise of the 'Localvore'

How the strengthening local food movement in towns

across the U.S. farms and food retailing.

Are you a localvore?

Food is something you always buy. As people have a tendency to live a healthy life and look for healthy food, farms, restaurants, and even retail outlets are taking advantage of the increasing number of "localvores" who insist on fresh and organic ingredients. Such a well-being trend is becoming widely prevailed, and consumer's interest in organic food is also increasing. I mean, who doesn't want to have some good and healthy food with a fair cost?

　　　　　　　　　　　　　　　　　

Summary of the article
- New NICHE
Local food market is another niche market. Consumers are looking for fresh, vine-ripened foods grown on local farms. The foor from local farm is not fringe food and satisfy consumer's desire to be healthy. As the number of consumers wanting for food from local farms, local food moverment is reshaping the business of gorwing and supplying food to Americans. It is such a revival of small farms! The number of cmall farms has increased 20% in the past six years, to 1.2 million, according to the Agriculture Dept. Consumers in the new niche market are ordinary, middle-income folks who have become really regaged in food and really care about where their food comes from.
　　　　　　　　　　
- Large Retailiers Act

There's money for research into organic foods, and to promote farmers' markets. Senator Tom Harkin (D-Iowa) said the bill "invests in the health and nutrition of American children…by expanding their access to farmer's markets and organic produce." Buying from local farmers not only satisfies customers' desires, but also fits the company's commitment to sustainability and cutting down on food transportation. However, huge supermarket chains such as Wal-Mart, Kroger, and Whole Foods can do something that local farms can hardly do. They can provide consumer any types of food in any season. People have gotten used to eating strawberries and tomatoes at all times of the year.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　

My thoughts & opinions
I don't know exacltly when, but as people become able to live longer than they used to, organic food is now everywhere. No matter what size of the market, they advertise organic food and organic ingredients and actually the consumption is increasing. Then where does organic food come from? From local farms and that's why local food movement brings organic food movement in the U.S. More and more consumers take those values to the local store with them. For instance, an upstart called Bloomingfoods Market that specializes in local fare lately has been stealing market share. Consumers want to spend money to store owners they personally know and that is one of advantages of local farms. As a niche market business, I think increasing the size of local farms is quite successful, since it basically satisfies consumers' desire. To acknowledge consumers' need/wants and find a special way to satisfy is marketing's key point. Selling food in local area can also develop a personal relationship with consumers, which maintains consumers' consumption. Jacquie Berger, executive director of Just Food said that they are even teaching people how to prepare seasonal produce. Consumers' word of mouth is powerful. Local area is the place where consumers' words easily spead. That's what local farmers should catch and make it as its advantage.
　　　　　　　　　　　　　　

Annotation: Pallavi Gogoi, The Rise of the 'Localvore', Businessweek. May 20, 2008

URL: http://www.businessweek.com/bwdaily/dnflash/content/may2008/db20080520_920283.htm?chan=smallbiz_smallbiz+index+page_top+small+business+stories

Entry_11 20500687

Not Just for Tree Huggers

Are you a Tree Hugger?
One of the reasons why I chose this article is that I recently got terested in houses especially structures and functions. I actually had a presentation on the topic of “Hanok (한옥), Korean traditional house” during the Korean history class. I researched mainly on structures and functions as well as Korea’s periodic culture which affected to build houses. Truly, I think, Hanok is an eco-friendly house.

Summary
As the oil prices have skyrocketed, housing market is going downward. Housing prices are steadily dropping down as well. However, eco-friendly houses are booming despite of this bad situation. According to the article, Ross founded “Eco Builders” to build eco-friendly houses. This company applies the method of using eco-friendly materials and recycled fuels when building houses. Customers prefer this company’s construction method and its sales are increasing. Besides, they use ‘LEED certification’ to help consumers’ understanding about energy savings. This new kind of certification helps to increase the perception of Green Home. On the other hand, according to survey last year in U.S., American house purchasers are willing to pay additional costs to install high energy efficiency facilities if it helps to save water and power(electricity) rates.


Opinion
As you see in this article, today’s consumers are not just simply considering price of houses. They decide whether to consume a house or not having a long-term point of view. Because of this, eco-friendly houses so called “Green Home” are still hot despite the free fall in the housing prices nationwide. Like this, I think considering various factors such as environment, health, and design is essential to satisfy wise consumers. Green Home is efficient in terms of saving costs of energy consumption such as water and electricity. Thus, it is appropriate from a long-term view even in ‘price’ issue. In addition, since eco-friendly materials are not harmful to a human body, it is a fascinating factor to many modern people who care health more.

Suggestion
In general, people experience ‘sick house syndrome’ when they live in a newly constructed house. However, this Green Home reduces this risk. Frankly speaking, the awareness of Green Home tends to be low yet in Korea. If construction industry put more efforts in marketing, it will appeal to more consumers. I think this is beneficial to construction industry, consumers who live in these houses and environment as well. Also, if we adopt the system of issuing LEED certification in Korea, it will be helpful to many consumers to be aware of Green Home. Green Home market is not yet in a main market. However, if they put more efforts to promotion, I think this market will be born again from non-mainstream market to mainstream market and also it will highly affect to market share rate.

*Annotation
Daniel McGinn, Not Just for Tree Huggers, Newsweek, Mar 17, 2008
URL: http://www.newsweek.com/id/120128

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Dissed Online? How to Fix Your Brand's Rep

Today's consumers don't hesitate to post their comments, good and bad, on the Internet. Here are some tips for damage control

Because of the advance of internet and other IT industry technologies, online reputation for the company became a big part, and hard to ignore. If one angry customer of disgruntled employee unleashes virulent, anonymous criticism about your company online, it can be almost impossible to erase. In this kind of business environment, how should a company maintain a good brand reputation online? Here are some answers.

Follow Up With You Customers

Most of the customers have something to say to the company but they hesitate, and only a few actually take into action. So it is imperative that companies reach out to their customers first. There are several ways to keep in track with your customers. The most easy and effective way is by using E-mail. Send them e-mail containing brief questionnaire a week of two after their purchase. You must keep in mind that the two most common customer complaints are a discrepancy between customer expectation and product usability, and poor product quality.

Concentrate On Creating Positive Content

There two option when you spot a negative review of your company. One is to rebut them publicly and try to contact the reviewers privately to resolve the problem. Another is to ignore the dings and work harder in the future on customer satisfaction.

You Can Overcome Unfair Comments

There is a research that 90% of all people who search on and search engine never go beyond page one of the results. As a result, having the positive contents of your company on the first page is essential. It might be better to concentrate on generating your own positive content so you can suppress the negative comments in the search engine results ranking.

Comments

In class, we were talking about the gap between customers and goods/service providers. As the author mentioned on the script, discrepancy between customer expectation and product usability, and poor product quality are the two major gaps. To overcome these gaps, you need to know what the customers are thinking about your companies’ goods and services. To make this happen you need to have various communicating channels. The article is suggesting us to use e-mailing, because it is cheap and effective.

Annotation : Karen E. Klien, 'Dissed Online? How to Fix Your Brand's Rep', Business week, May 19

URL:http://www.businessweek.com/smallbiz/content/may2008/sb20080519_637908.htm?chan=smallbiz_smallbiz+index+page_top+small+business+stories

# 11 Entry_ St. ID: 20500297

Johnson & Johnson's Big Design Change*
J&J Chief Design Officer Chris Hacker is a man with a mission:

TO BRING SUSTAINABLE DESIGN TO CORPORATE AMERICA

　　　　　　　　　　　　　　　　　　　　　　

Familiar Brand, J & J

Probably most college students around my age would recognize its particular type of bottles, soft colors, and 'baby smells.' Johnson & Johnson approached to its customer with its own special design, its competitive advantage in a certain market.

Summary of this article

The author interviewd Chris Hacker, a cheif design offcer of Johnson & Johnson (JNJ). He is 57 years old, but still pursuing a creative life style. He grew up a hippie and was inspired to choose to be a designer after he experienced humanistic futurism at Expo '67, in Montreal. As Hacker became popular after a success at Aveda, J&J hired him for the fact that focusing on sustainable design might to profitable. It was basiclally JNJ's strategy. Before Hakcer came to JNJ, alsmo all of the company's design was outsourced from its home base but Hacker changed that! Hacker pointed out that designers should think about what motivates the consumer to take the product home. He hopes to change the way designes and corporations sustainability to create positive consumer experience.

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　

How did the design change?

1) The apparently simple repackaging of J&J's flagship brand keeps the iconic teardrop but adds cleaner type and tinted bottles.

2) Big box stores considered brand-aid's previous bardboard bulk package to be forbidding. The new version features a set of interlocking plastic cases - and is now stocked by stores such as Costco.

My thoughts & Opinion
It's a summer internship season! I have applied for several companies and actually Johnson & Johnson medical is one of them. The very first reason why I applied is because most products of Johnson & Johnson have been familiar to me since I was young as I mentioned previously. When I think of J&J, the first thing that pops up in my head is J&J's baby lotion that I used to use in a childhood. For a baby segment, J&J's design strategy is using soft color and rounded shape. My mom always bought the pink one and it still remains in my head.

As we learned in class, design and packaging are significant in product selling and retailing. Developing a sustainable competitive advatange through new design and concept was J&J's strategy, which I think is a well-considered choice. Wheneve I work on project with my team members, I always emphasize that we should have something different from other groups, something that is innovative and creative we can have as a competitive advantage. Competitive advantage need to be sustainable or maintainable, applicable to the company, and approachable to the customer. In that content, it seems like J&J is doing a right thing, trying to give a impression to customers with new design and understanding customers' basic needs.


Annotation: Mark Lamster, Johnson & Johnson's Big Design Change, Journal. May 21, 2008

URL: http://www.businessweek.com/innovate/content/may2008/id20080521_194730.htm?chan=innovation_innovation+%2B+design_top+stories

20700443: Entry-11

A New Approach For Airlines

Each one of us wants and expects to be well served no matter where we go and what we do; and due to the atmosphere that is created inside of an organization more or less customers come back again.

Summary:
(The interview is taking form Tom Kochan, a professor of management at the MIT Sloan School of Management).
The interview is based on "How Airlines Can Compete by Engaging Their Workforce". Basically, it is said that companies should be able to differentiate the culture and approaches to labor relations; though, many organizations postpone it until they end up with financial issues, but also not all of them approach this relationship as it sometimes can be late.
A good relations with employees help to improve the productivity and service quality, this means that workers are eager to put all their efforts to solve passengers' problems as the authority motivates them to do so.
Southwest Airlines is an example of people's preference; the company always emphasizes improved productivity through employees' loyalty that they keep for a long time and it helps to maximize their ideas, and financial objectives. Although Southwest has a low cost, they've high quality jobs, and their employees are very highly paid.

Opinion:
From the article above we can see how relationship with employees and quality of products has a great influence on customers. It is efficient if the organization is decentralized when opinions of both employees and managers are shared, so that everyone feels that they're part of a whole and is responsible for each step they make. Sharing the value with employees reflects on the relationship with customers that are treated according to high standards.
If the product carries value and high quality it doesn't matter for many customers what the payment for that is, they are ready to pay more if they're sure that can be satisfied. Therefore, the main point is "Productivity Controls Cost".

A New Approach for Airlines, The Wall Street Journal, May 12, 2008
http://online.wsj.com/article/SB121026578961977661.html?mod=2_1573_leftbox

Entry11_20700347

At Your Service

Have you ever gone to the hotel? Many people use hotels when they need place to stay. Usually, they use the hotels for their rest. Therefore, hotel’s services are so important. Among many hotels, there are some hotels which give great services to their customers. These days, services for hotel’s customer are improved in the certain top hotels.
Summary
According to the article, there are services which are called “the butler service.” In some hotels, butlers provide special services such as drawing baths and giving tea. In addition, there are various kinds of butlers. For example, there are ‘Personal In-Loft Spa Butler’ and ‘Dream Butler.’ Therefore, customers can choose a butler who they want.
Opinion
I think that this service is very special. Generally speaking, many people use hotel for their rest. People stay in hotel for many reasons. Anyhow, peculiar services are enough to satisfy their customers. In my opinion, marketing is to give a deep impression to the customer. Because, strategy which has not humanism is easy to pass out of customer’s mind. However, a marketing which has humanism might remain in customers’ mind. Therefore, ‘Butler service’ which is like a kind service could give a good emotion to many customers.
What is more, this service that is mentioned above is niche service, because most of hotels do not give such services. People look forward new, fresh, special things. Even though accommodation expenses are high, some people would spend money for fantastic services. Also, according to my research, top hotel’s accommodation expenses are similar to those of the hotels which provide ‘butler services.’ For this reason, prices are good considering nice services.
There are some hotels that give ‘butler services’ are in various locations. Hotels develop these services accordingly with their environment’s features. Therefore localization can be applicable to this service marketing. Moreover it can be applicable to diversification. By the gender, the age, and purpose of visit, hotels can develop many kinds of ‘butler services.’
If many hotels are concerned about this butler service marketing, they can give big satisfaction to their customers.

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→ Annotation : Jaime Cunningham, “At Your Service”, Newsweek, May 5, 2008
→ URL : http://www.newsweek.com/id/134277

Entry10_20400495

Centuries-Old Family Businesses Share Their Secrets





Indeed, according to the Family Firm Institute, a research group in Boston, only 30% of family-owned businesses make it to the second generation, 10% to the third generation, and 3% to the fourth. Though the rate making to the next generation is extremely low, some company’s could continue their company’s history of succeeding to their own descendent by abiding to the following aspects.

Plan for the future

According to William O'Hara, the executive director of the Institute for Family Enterprise at Bryant University in Rhode Island, the biggest mistake that most family businesses make is not planning for the future. "The companies that have trouble are those that don't look ahead, whether about succession or future products," he says. Regarding the happy few that do make it, O'Hara says, "Those that have been around for centuries deal in products that respond to human needs."

Need to follow the trend and change

Everything needs to be changed. For example ,nobody have found a reason for the luxurious luggage maker T. Anthony which is one of the family companies known for its high quality and high price should change. However, the CEO, Michael Root says that the company strives to keep the brand current without abandoning its founding principles are the main consideration. As a result the company started to produce several products including added wheeled suitcases, duffel bags, computer bags, and cases for electronic gadgets. Now making more profit than used to.

Stewardship

Another important aspect is to preserve stewardship. The CEO of highly succeeded family company named Young Electric Sign Co, Thomas Young says “Another way to describe it is our principle is one of stewardship rather than ownership and there has been a consistent commitment, starting with my grandfather to the present of not selling the business of going public.”

Family and outside Management

The last point you that you need to keep in mind when you run a family company is to if needed, somebody who is outside of your family. Instead of succeeding the company to the next generation who is not interested in the company, it is better off to hire someone who wants and willing to run your company.

Opinion



Especially in Korean society, lot of family owned companies are controlling the whole Korean economy. Though they have a responsibility to sustain and consider the whole economy, they often make terrible mistakes only thinking about their family’s fortune. I think big family owned companies such as Samsung, Hyundai of SK need to read this article to change their attitude toward the companies.


Annotation : Stacy Perman, "Centuries-Old Family Businesses Share Their Secrets", Businesweek, 14 May 2008,
URL:http://www.businessweek.com/smallbiz/content/may2008/sb20080514_431232.htm?chan=smallbiz_smallbiz+index+page_top+small+business+stories

20700443: Entry-10

Connecting with Customers:
( Building an Online Community of Loyal and Vocal Users )

Nowadays consumers increasingly started to use Web sites to interact with the companies they share the same business, the interaction goes through blogs or forums that are supplied by members of the company. By providing space for interaction with consumers, companies build positive impression and loyal community, adopt quickly new changes in technologies. This way of interaction is more than free marketing, as consumers who are participating in companies' blogs or forums can also invite their colleges, friends, family members to join.
The example of such company is Etsy (Etsy.com is an online marketplace for handmade goods) that provides forums, blogs, workshops to encourage conversation. It creates online newspapers where all registered users can leave comment or feedback. In general, Etsy company looks for various ways to reach their consumers either through interaction via Web site or mail and phone.
I think it is rather an efficient way to build loyalty and value between company and its customers as there's a constant interaction. It doesn't matter whether it is online market or not, consumers are the same, and they would like to have personal relationship with company, which products they are using. According to the example of Etsy company, they interact with their users personally, and want to know their opinions about company's products, and that's one of the main reasons why consumers trust Etsy.

Raymund Flandez, "Building an Online Community of Loyal and Vocal Users", Wall Street Journal, March 2008

Entry_10 20500687

How to Build Brand Friendship :)
To create a truly powerful brand, you need to establish a sense of belonging, friendship, and dependability between product and customers

Why brand friendship matters?
Consider a brand has a high quality, appropriate price, and good service. Do you think it is enough to purchase products from certain brands without much hesitation? I think the strong brands consider more factors to keep their brand image and constant product purchase by consumers as well. The article talks about the extent to which you can create a sense of belonging, friendship, and dependability between your brand and customer is the extent to which you have a powerful brand asset.

Summary
Steve McKee explains four essential concepts of how to build brand friendship just as similar ideas that apply to human relationship: belonging, friendship, dependability, and awareness.

1.Belonging
Many auto brands such as Honda, BMW, and Saturn have done a good job from the past. When consumers think about these brands, they easily figure out the image of the brand just recognizing the name value of the brands or potential belief about certain brands. In addition, cosmetics also generate a strong sense of identification such as Avon. According to marketing principle, customers want to belong to a particular group where they can be shown or categorized by popular brand name that they could be look cool as a user of that brand. Also, the third level of Maslow’s hierarchy of needs is need of belonging.

2.Friendship
Think about Starbucks. As they argue and also our Professor Lee always mention about Starbucks’ strategy, Starbucks doesn’t sell coffee but its lifestyle. I even think that there is no specific taste difference among many coffee brands. What they focus on as marketing strategy is friendship between the brand and customers. They approach to customers with comfort and familiarity just like McKee points out the phenomenon of morning appointment with Starbucks is like visiting with a trusted old friend. This phenomenon delivers the significance of friendship established between the brand and customers.

3.Dependability
As human relationship requires some sense of dependability, brands have no exception. McKee indicates that ”brands that prove themselves dependable over time win consumers’ loyalty”. This is quite easy to understand when we think about IBM that consumers of IBM never complain about their purchase although it is expensive and boring in comparison with other brands. American Express, Hertz, and Honda are also great examples of brands which are well known for their dependability. They offer services and high quality products exactly what they promise to offer so that they establish credibility through dependability. In marketing class, companies must not promise services or products they cannot or will not offer. It is crucial in building relationship especially dependability between the brands and customers. It takes time for brands to develop strong bonds with their customers just like human relationship.

4.Awareness
The brands that you do not often purchase don’t leave a big impression to you. Brand relationships need consistent attention and upkeep in order to stay fresh and top of mind. Southwest Airlines, Apple, eBay, and Caterpillar are strong brands which marketing strategies on brand friendship lie on brands’ awareness.

Personal Suggestions on Each Concept
I personally consider few ways to develop these areas. Customer responsiveness can include all of these factors. 1) Regular contact with updated information about the brands by e-mail, SMS, phone calling might be a good way of building a friendship. 2) Besides, high quality offline services could be another good source. For the sense of belonging, I think 3) the brand image through memorable history, CEO, effective advertisement will motivate customers have a positive perception on particular brands. For the sense of dependability, I assume 4) positive WOM (Word Of Mouth) could be a great way to acquire the brand’s dependability. People tend to know whether the brands are dependable or not by using the products and having services for real. Thus, to create positive WOM, companies must guarantee what they promise for the brands officially.

Opinion
To be honest, this article reminds most of marketing principles that we talked about during the class. What professor Lee emphasizes in marketing are all included and perhaps these are somewhat the most significant and essential reminders to develop marketing strategy. Because these sense of belonging, friendship, dependability, and awareness of brands touch the consumers’ heart effectively. I recently read an article related to this topic from LG Economic Research Institute (LGERI). The article talks about consumers’ behavior. The point that made me think deeply was that consumers’ don’t care much about the product itself such as its quality, price, or other components if necessary because most of function-based products are hard to distinguish with these elements. Customers become generous about purchasing the products if the sense of belonging to certain brands fulfills customers. Whether customers are satisfied with its sense of belonging, friendship, dependability, and awareness of the brands or not determine the final purchase.

Annotation
Steve McKee, “How to Build Brand Friendship”, BusinessWeek, May 9, 2008
URL: http://www.businessweek.com (Small Biz – Marketing)

Entry10_20700347

Arab-America’s Store

Wal Mart is one of the biggest multinational corporations all over the world. This company has been developed effective supply line and gives good products to many people in the world.
Summary
In this article, author said that Wal Mart is trying to localize their mart in U.S.A. In Dearborn, Michigan, there are many Arab-Americans, and inhabitants in that place are come from many different countries. This place is the place that the largest Arab people lives in outside the Middle East. Like this, American population is changing. Considering this point, Wal Mart found special huge department in Dearborn. In the department, there are so many special foods that are used for Arab foods. Moreover, Wal Mart considers Arab people’s custom that they do not eat pork, so pork is in the edge of the department. In addition, Wal Mart employs 35 Arabic speakers. Despite some negative opinions, the Wal Mart’s strategy is very successful up to the present.
Opinion
I am impressed by Wal Mart’s strategy, because they can catch potential point in the U.S.A those population is changing. To tell the truth, it is little uncomfortable to live in other countries, because people can not purchase certain products which are sold in their mother countries. In my opinion, Wal Mart found niche market. Even though there are some products which are needed in other countries, foreigners can not feel easy. However, thanks to the Wal Mart’s promotion, many people who are missing their mother countries’ products can buy goods that they want.
I think that Wal Mart is good at targeting. Through this strategy which is mentioned above, Wal Mart can secure its customers. Once people go in to the Wal Mart store, most of them might be satisfied goods’ price, quality, and other factors. In other words, Wal Mart used people’s thoughts of home. So, such as localizing strategy, nice marketing strategy that can satisfy their main customers can be successful. Frankly speaking, I think that Wal Mart might have instructions through the failure in Korea, because it did not consider Korean people’s propensities at that time. Anyway, Wal Mart’s growth strategy is focused on Diversification.
Unfortunately, many small stores has closed door because of Wal Mart. But, the U.S.A adopts Capitalization. So if Wal Mart is make an effort on many kinds of niche market, many people will use their mart. We are living in the world that is flat, so we can utilize home products in other countries. People in the world have different consume habit by their own custom. Therefore departments need to meet consumers' demand

[Annotation ]
Article : Arab-America’s Store / Newsweek
Author : Keith Naughton
URL : http://www.newsweek.com/id/117835
Date : Mar 10, 2008

#10 Entry / 20500297

HUMOR in the Workplace! :-)

Laughter can create a productive and healthy work environment,

but be careful that it's not masking inappropriate comments.

No matter what, time goes by. It's my 10th journal, ALREADY! (I'm also taking BS class, so I have uploaded almost 20 entries actually. Whoa!) Writing a journal in English is such a huge work for me. Now it's time to work on our final project... MARKETING COMPETITION! I am half excited about the project since our team members are all willing to do our best, but am half worried because we do not have much time to work on. Anyway, as we begin our new project, which will take a lot of our time, and as we are going to spend most time together 'till the end of this semester, I thought that we need something to make our 'work environment' better and make our relationship closer. Here's the thing. Laughter from HUMOR.

What is this article about?) The author basically says that humor is a significant part of the day-to-day work life. Most people think that use of humor in business is not 'right', but she thinks that it's not the worst thing in the world. What makes you feel comfortable? What makes the atmosphere more cozy? Share of laugh! Humor is the thing that brings you laugh, she says. One thing you need to remember is 'humor at the individual level.' Not everyone can produce and make humor. Those who are intelligent and creative can! It's associated with our 'intuition', therefore humor actually evokes some kind of emotions that make you feel energetic and comfortable. More important, (this is what I want to point out the most.) humor relates to workplace creativity. You may wonder how. So did I. 'The primary theory about humor, which is well accepted, is that it stems from incongruity. In other words, we find jokes or comments funny because they are linking two things together - perhaps through a punch line - that you wouldn't normally link together, or that shouldn't go together.' (quoted) As humor links two things that wouldn't or shouldn't normally be together, people in a workplace that is fun and comfortable due to use of humor can put things together in their UNIQUE and SPECIAL way, which automatically brings CREATIVITY.

My thoughts & feelings) Today, we watched Virgin America's safety video in class. I found that's very smart, creative, different, and humorous. They used different funny characters that shouldn't be in the airplane. (Cow and fish in the airplane? He-llooo!) It may seem like there's something unusual, even wrong sometimes, but we all know that it is innovative because it is differentiated by using cartoon with funny characters and unique stories. I was very impressed and talked to myself, 'I want to make our project something like that. Fun is the key to attract people's interest and make them impressed by our work.' Our team, Malawi, consists of 6 people and we have gotten along together pretty well. Not only do we look different, but also have different characteristics. As we worked on several projects together, I found that the time we feel closer to each other was when we laugh together while working. Projects could be simple, but were never easy. The time all members could be together was always after 11 at night. We were tired, exhasted, and sometimes wanted to give up. However, by someone's joke, laughters, or someone's 'not-making-sense' ideas we always had a fun and enjoyable time and that's what brought more creative and unique solutions. The use of humor doesn't mean that we need such a class clown. As the author says, humor is viral. Laughing is so contagious that once one person starts laughing, it spread sort of positive energy to other people around him/her. I hope to be someone like that to our team members and make our (short-term) workplace fun and energetic!

* Annotaion: Karen E. Klein, Humor in the Workplace, Journal. November 5, 2007.
* URL: http://www.businessweek.com/smallbiz/content/nov2007/sb2007115_185030.htm?chan=search

Entry 10 by 20500297

Entry9_20400495

Converse's All-Star Image

Summary

Converse is a sneaker maker that was founded by Marquis M. Converse a century ago and had gone over many ups and downs. Converse’s first model was a rubber-soled shoe that followed by the innovative lightweight All-Star basketball shoe with rubber outsole, durable toe cap, and ankle patch that helped stabilize the foot. But in the 80’s the company has faced a crisis. Companies like Nike, Adidas and Reebok transformed the athletic shoe industry by designing sneakers for superstar like Michael Jordan. Star marketing became trend when Converse still sticks on to the Charles H. Taylor who was ‘3os basketball star. Finally, Converse was acquired by Nike in 2003. Now Converse is changing their marketing strategy by changing the target and their method of marketing.

First, they started to focus to the teenagers who are sensitive expressing their selves. More specifically they are focusing on “optimistic rebel”, according to the interview of John Hoke, the unit’s new global footwear vice-president. These “optimistic rebel” is who wants to be different, irreverent, and creative. Additionally, Converse wants their targeted consumers to think their shoes to be treated as a canvas that one can express one’s thoughts.

Second, they changed the product strategy. ‘Celebrate the ‘then’, leverage for the market now, and frame the future with a full range of products.’ This is realized by using Kurt Cobain’s (late rock star) art work, supplying their shoes to the Kennedy family, Barack Obama, and also work with young athletes like Dwanyne Wade (NBA star).

Opinion

It is crucial to choose the right segment before targeting. Converse didn’t have a selected target in the past and people couldn’t build a brand image. After sold to Nike, Converse can finally make a differentiated image compared to their competitors. As we learned in class, segmentation targeting and positioning is an essential step for any company. Converse itself couldn’t solve the problem so their failure was inevitable. After changing their strategy based on STP, the sales upraised and the consumer’s perception also ameliorated.

20700443: Entry-9

Advertising: Think Before You Speak

Advertising is the nonpersonal communication of information that people usually pay for in order to persuade customers about their product, service or idea through different kind of media. And always the message that is conveyed to people carries more than actually advertisers can think, as it's impossible to satisfy everyone's mind, so that it drives to misunderstanding.
Many companies pay much money to advertising campaign so that customers could hear or know about their production; however, paying money is not the only thing, the message itself should be clearly presented, and oriented to customers' understanding, they are supposed to know what the market wants from them.
There can be various kind of advertising, like the one that conveys the message to the customer with a direct statement "This is the only chance for U to get better", or other advertising campaigns like Nike, Apple, and Gatorade express their message in a way that allows target customers to make their own conclusions, and, furthermore, an effective advertising is all about WHAT you are saying and HOW.

Steve McKee, Advertising: Think Before You Speak, Business week, Jan.11,2008