Be the Why-Notter, and Just Market it!

20700457_DongSoo Joseph Rhee_Entry 14

2008-06-13T07:58:00.000-07:00

Good-bye, FedEx Kinko's. Hello, FedEx Office.

History

Do you know FedEx ?, what about Kinko's? I am sure that you've heard about at least one of those two brands. FedEx is a well-known company for shipping services, they don't mind the international shipping too. Kinko is a well-known company for offering wide range office, and Print Services. It is hard to imagine this two companies into one place. Indeed, it happened. In 2004, FedEx acquired Printing chains, Kinko's, for $2.4 billion. They started to open a chain named FedEx Kinko's. When FedEx acquired printing chain Kinko's the air-cargo shipper's grand plan was to integrate the 1,200 stores into its business-services offerings. The goal was a digitally linked network of one-stop stores for customers to make, print, pack, and ship anything. A new logo and name was designed by Landor Associates, added two identities into one name, and made a logo adding various colors.

However after four years, FedEx is ditching Kinko's brand for further business plan.

New Start

"Kinko's is a wonderful brand, and it's nostalgic," admits Gayle Christensen, director of global brand management for FedEx. However, it is limmiting at the same time. Because Kinko's name is too much associated with printings, so there was a difficulty to move on, and offer more services. FedEx wants to expand their business to digital printing services, direct mail, and more creative jobs like signs and banners. By ditching the Kinko's brand, FedEx will be able to do this. After shed the brand Kinko's, they are approaching customers with a new name, "Fedex Office."

Of course, it is not easy to change the name into "FedEx Office". Memphis-based FedEx said it would record a charge of $891 million in its fiscal fourth quarter, in order to shed the Kinko's brand.

However, they don't believe that the name Kinko's will disappear. "Maybe we could use it in a minor way somewhere in the store," Christiansen muses, noting that the company still owns the name. "Perhaps we could label the copiers Kinko Copiers."

Opinion

I believe that they made the right choice. According to the report, FedEx did not separate Kinko's unit financially, but kinko's was having a financial difficulties. Company announced a fall in profit for the second straight quarter due to rising fuel costs and the economic slowdown, which had reduced demand. Also, time has changed, and there was a definite need for change and innovation. World is getting smaller and smaller, and people are getting busy and busy. People need to get their work done in one place. Kinko's name was unappropreate to expand the business further more. Even though it will cost a significant amount of loss to change the name and the style of the stores, it will benefit the company in a long term.

Annotation: A journal from Business Week. "FedEx Ditches Kinko's" written in June 9, 2008, 4:06PM EST. Written by Ernest Beck. Url:http://www.businessweek.com/print/innovate/content/jun2008/id2008069_075908.htm

Entry_14 20500687

2008-06-13T01:16:00.000-07:00

Indie Filmmakers Hit Their Target
Taking cues from musicians’ Internet business models, filmmakers are transforming the movie biz by handling marketing, distribution, and DVD sales

Summary
The reason why I chose this article is that it implies several important marketing strategies at one place. Indie filmmakers hit their target audience without any paid advertising or reviews. How can it happen? Consumers are usually attracted by fancy advertising delivered on TV or at least Internet reviews scored high and positive opinions. The documentary “What’s Your Point, Honey?” sold out this 160-seat theater in Manhattan is successful without any paid advertising. The audience of this movie are part of the transformation of the film industry. They are targeted by the filmmakers who produce the documentaries with certain intention of targeting certain group of people such as young women interested in politics.

Opting out of the festival circuit
In reality, few people get rich making documantaries. According to Peter Broderick, a Santa Monica consultant to independent filmmakers, filmmakers who take control of their marketing and distribution can expand their audience and increase their chances of turning a profit. They should be as creative about their distribution as they are about their production.

Closer to the CORE audience
What independent filmmakers do as part of their marketing strategies is targeting the core audience that they are looking for based on the topic or interest about their movie. They build an e-mail list of people who care about the topic. Then, they send an e-mail with the information of their movie to invite the core audience.

Generating more buzz and profits
Since independent filmmakers do not go through many distribution channels, it generates more profits in terms of saving money for the distributors. Besides, it can create the effect of buzz marketing easily due to the core audience compared to the one using distributors.

Opinion
Reading the article, I got a reminder of the P&G case that we discussed during the class. Like the startup company Dr. John's SpinBrush which they don't have any paid advertising but still very successful, indie filmmakers also use this reverse marketing strategy. Just like Dr. John's SpinBrush captured the new segment of customers where the word of mouth effect has created among the users, indie filmmakers target the core audience of their movies who are interested in their topic. I think this is very convenient while very strategic to generate more profits saving the money for the movie distributors. Advertising is a good way of marketing to capture the customer's attention and to deliver information easily. However, targeting certain group of people like many indie filmmakers do thesedays is as important as capturing the whole audience. In addition, this strategy might be a part of customization which companies should understand people's interests fully before giving out random advertisement.

Annotation
John Tozzi, Indie Filmmakers Hit Their Target, BusinessWeek Journal, June 5, 2008
http://www.businessweek.com/smallbiz/content/jun2008/sb2008065_226261.htm

entry14_20400495

2008-06-12T23:09:00.000-07:00

The Power of positioning
How to distinguish yourself from the competition to be sure you have a preferred place in your target customer’s mind.

Summary
Positioning is the process of distinguishing yourself from competitors in specific ways in order to be the preferred provider for certain market segments. It is making a unique perception to the customers mind. If you don’t make a differentiated perception to the customers, the customers don’t know whether to buy from you, whether you have the knowhow it seeks, or whether you’ll follow through and meet its needs. Knowing who yourself is important, however in marketing, letting the customers know who you are is more essential. Here are the five steps to improving your company’s positioning.

1. Assess where you are right now
It is important to assess your own company but that isn’t enough. You should ask customer, competitors and journalist for the three adjectives they would use to describe your company, products and overall image.

2. Determine how you want to be perceived
Because when you made up your decisions and begin to take action, it will be too late and cost much to change the direction. You need to determine the specific position you want to take , and what kind product marketing messages and image you want to convey and reinforce.

3. Select your target customers.
In this step you need think about the following questions. ‘Will you benefit from making your image more exclusive and inaccessible of more of a commodity and more accessible? How does your target market define value? How do those people choose among vendors?’

4. Factor in current trends.
There is a well-known expression in this field. “If you want to be a market leader, find a parade and jump in front of it.” If you want to jump in front of a current trend parade, you need to know the trend first. These days numerous companies are jumping in front of the environmental movement with “green: products and service

5. Formulate your four levels
Your business objective drives your business strategy which drives your market strategy which drives your positioning strategy.

Opinion
In class, we learned about the STP strategy which stands for, Segmentation, Targeting and Positioning. Though this article out a lot of stress on Positioning, you need to go through two steps before you actually take the positioning step. Though the three steps are inseparable, we can explain separately. In segmentation, you need to check the strategy and goal of the company first and think about the possible segment. In targeting, you should evaluate the attractiveness of each segment and based on this evaluation, you should choose a sement. And at last, like in this article, considering the five steps that the article is providing, you can position your company.

Annotation :Christine Comaford-Lynch, ‘The power of positioning’, businessweek, June 2, 2008URL http://www.businessweek.com/smallbiz/content/jun2008/sb2008062_723641.htm

# 14 Entry_ 20500297

2008-06-12T18:35:00.000-07:00

Facebook's Big Facelift

"The social networking site's coming redesign will be

marked by a cleaner, more organizaed look

to appeal to its vastly bigger, more diverse user base"

Fancy vs. Simplicity*

If there's Cyworld in Korea, there's Facebook for all over the world. Cyworld is quite fancy, providing lots of options and choices with multiple colors. Sometimes I don't even know what to do with new functions they daily upate. On the other hand, Facebook has been focusing on simplicity, meaning that it has been praised for being clean and tidy. However, now Facebook is trying to redesign its web site and I wondered why.

Facebook's problem*

There will be 70 million worldside users in the next few weeks. As the number of users is increasing, designers of Facebook decided to represent a major simplification. - Facebook's trial to differentiate itself from other web sites. Editor in chief of Mashable. com said that "people are starting to feel that Facebook is quickly becoming like Myspace." Myspace has allowed its 100 million users to create wildly different looking pages, which makes its web site look more complicated and messy. Because of this problem, Facebook is trying to find new ways to arrange lots of information users upload. They will give users more options without radically altering the look and feel of the site so that users can feel fresh and well-organized.

Personal opinions*

Because updating is quite different from 'redegning', Facebook's change is a hugh thing to consider. In my opinion, what Facebook needs to focus on what users really want. They need to listen to users and follow what they need, not make user follow what they have already created. What people want from Facebook is probably fun, the way they can express themselves and having a "connection" with other people. Sometimes providing customers' basic needs can catch their minds toward your products or service. Also, Facebook should remember that redesigning would never satisfy each of 70 million users. Some would like it while others wouldn't. Facebook would have to take critics as precious advice from its users and seek what they really want from Facebook. One of my team members mentioned about lify cycle in her journal. Without a doubt, Facebook has been doing great and it is obvious that they are in mature stage and it's the right time for them to think about differentiation and innovation. - which will make them able to 'maintain' its position.

Annotation: Matt Vella, Facebook's Big Facelift, BusinessWeek Journal, May 14 2008

LAST entry (#14) by 20500297

20700443: Entry-14

2008-06-12T06:39:00.000-07:00

The Starbucks Effect

Starbucks Corporation is an international coffee and coffeehouse chain primarily based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 15,011 stores in 44 countries. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks and items such as mugs and coffee beans.

Summary:

Daniel McGinn, the author of the article, basically tells how certain retail chains like Home Depot and Starbucks can effect on the value of the rental property. It seems that both chains represent leading indicators for local real estate purchases, though they both have been in struggle recently. Starbucks due to difficulties with operating conditions in the US, and Home Depot - ongoing housing crisis.
When George Vaughan, an advertising salesman in Portland, heard about plans of Home Depot to build new stores in nearby, he bought several houses in that area. Some times later when that place had Home Depot and Starbucks George could charge prices higher for his houses.

Opinion:

Starbucks is the association of something fascinating among young generation who's following all these brand stuff. Some people are even proud of just holding the pack with Starbucks label.
Is it all about brand awareness? When a customer is loyal only to that product and do not see other options, can wait patiently even for several weeks to get a brand new product form that line.
Nowadays people are ready to pay prices higher for the places where certain famous brand chains are going to build their new stores, and everything is only because these LOUD names: Starbucks or Home Depot...

Daniel McGinn, The Starbucks Effect, newsweek, June 3, 2008
http://www.newsweek.com/id/139886/page/1

Entry 14_20700347

2008-06-11T18:33:00.001-07:00

A Chain That Pigs Would Die For

Have you ever heard about the company “Chipotle"? This restaurant is Mexican brand and grows rapidly. To tell the truth, when people think about the fast-food, they think that most fast-foods are junk foods and have a low quality. However, this brand has a great quality.
SUMMARY
According to this article, Steve Ells, CEO of the fast-food chain Chipotle Mexican Grill, buy pork which is used for their products from Kremer’s farm. That pork is not just a pork, but organic pork, so it is good for health. In addition, Ells decided that he use healthful and organic ingredients for Chipotle’s foods, so Chipotle uses few USDA-certified organic products and instead follows its own, sometimes less stringent, protocol. Chipotle's revenues have grown tenfold to reach $1.1 billion. Moreover, its stock price has more than doubled since January 2006, when the company went public, to $100 a share. It now operates more then 700 restaurants around the country and expects to open an additional 130 to 140 before the year-end.
OPINION
Like most people, I thought that fast-food restaurant uses junk ingredients which has low quality. However, this brand makes a new and innovative fast-food. Many people like fast-food because of convenience and portability, so t usually hey don’t mind food’s quality. However, society becomes more aware of healthy eating. Therefore, Chipotle can appeal to many consumers. Actually, in my opinion, Mcdonald’s is the biggest competitor to Chipotle. Although Chipotle’s stock price has increased, and this brand is well-known than before, Chipotle can not ignore the competitor, Mcdonald’s. Mcdonald’s already has high market share and brand name, but it has some weaknesses. One of the weaknesses of the Mcdonald’s is that it does not use fresh ingredients. To take advantage of this point, Chipotle can give a good image to many customers. Compared to many other fast-food brands, Chipotle is in Growth stage of Product life cycle. In this stage, company should reach new customers by studying customers’ preferences and producing different product variations. I think that Chipotle need to advertise actively and throw into relief its foods. Specially, Chipotle sells burritos, so I think that this food could be a star product of this brand.

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Annotation :
Anna Kuchment, ‘A Chain That Pigs Would Die For’, Newsweek, May12, 2008
URL à http://www.newsweek.com/id/135376

Entry13_20400495

2008-06-08T22:50:00.000-07:00

iPhone 2.0 Takes on the World

Apple could launch its new iPhone in 64 more countries by yearend, deepening the electronics giant's reach in international markets
As Apple announced to unveil the next version of its iPhone, the fans are expecting a lot of progress from the earlier version. But the main focus to this event is, actually how well iPhone will do in the international market. The new version of the iPhone will do more than perhaps any other device in history to fuel Apple’s ability to reach international markets.

Bigger Seller than BlackBerry?
Until now Apple has only launched the iPhone in six countries, but they recently agreed to release to more than 70 countries by the end of the year with wireless carriers. Until Apple decided to go for the international market its sales were way below compared to the sales of Blackberry. However if Apply is able to accomplish the goals it has announced, it will able to lead the so-called smartphone market.

Ready market Worldwide
Though the little recognition outside of U.S. is a big obstacle that Apple has to overcome, there are some optimistic points. Unlocked iPhones have been spotted in nearly every country in the world. Although the definite number is hard to come by, Apple estimates that gray market dealers in China may have sold as many as half a million iPhones there. This could make Apple to permeate the international market more easily.

More Flexibility with Carriers
There are more reason for Apple being so confident in infiltrating the world market. The company has shown itself willing to break with established practice of signing up only one wireless carrier per country, as it did in the U.S, Britain, France and Germany.

China Toehold
To Apple, China is the ‘Big Kahuna’ according to Needhan & Co analyst Charles Wolf. This is because China Mobile which is the largest mobile company in China has more than 400 million subscriber which is also the world’s largest. But the things between this giant mobile company and Apple didn’t go well. Talk between these two companies collapsed in January over Apple’s share of service revenue. Once Apple gets a toehold in China, there will be no stopping the iPhone engine. Therefore the experts are advising for Apple to first satisfy the demand of China Mobile to get into the market.

Opinion
Once the company establishes a star product and the star product is successful enough to have a cash flow, the company starts to expand. In this case the iPhone in U.S. did pretty well and made Apple to turn its attention to the international world. But when a company is expands to the international market, it always faces communication gap. Back to the case, though iPhone is highly recognize inside U.S. and neighboring countries, there are only small perceptions about iPhone in other countries. To overcome this gap I think Apple needs to promote using there former product brand such as i-pod and Mac computer. Compared to iphone, the two products is widely known because they already done a lot of promotion.

AnnotationArik Hesseldahl and Jennifer L. Schenker, iPhone 2.0 takes on the world, BusinessWeek, June 6, 2008http://www.businessweek.com/technology/content/jun2008/tc2008065_290813.htm

20700457_DongSoo Joseph Rhee_Entry 13

2008-06-06T08:03:00.000-07:00

Apple, driving digital lifestyle on a global scale

Since now, apple was the well-known company for personal computers, mp3 player (IPOD) and some accessories. However Apple is also well known for its innovative design. Honestly design of Apple's product was one of the most powerful advantages they had above others. However
Apple is saying that is not good enough.

Summary
Apple: More Than a Pretty Face

According to the National Retail Federation (National Retail Federation Inc. is a trade association that caters to the needs of the retail industry.), consumer spending on Black Friday dropped 3.5% comparing with 2006. Also, a Master Card Spending Pulse reported that sales of electronics rose just 2.7% from Thanksgiving to Dec. 24, 2007 than the same period a year earlier. Compared to that, Apple anticipates holiday-quarter sales of 9.2 billion dollars, a 29% increase over 2006.

Design alone isn't enough.

Then, what is the main reason for this huge success of Apple, while other consumer electronics companies are relatively failing. A lot of companies tried to copy Apple. A good example is mp3 player industry. Creative Technology, Microsoft and other companies developed a mp3 players similar to IPOD; attractive design, cool behaving features and fine accessories. But most of them failed badly.

Various models of IPOD(latest version, Iphone)

What is it that these companies need?
It can be simply described as a one sentence, "More Than a Pretty Face". People now want more than just innovative design, and cool behaving feature. Ecosystem is the solution that Apple suggests. Having fine design and cool feature is not enough. They have to have the right ecosystem to back it up. They should have the ecosystem which is backing up the products, such as; content and services, software and interfaces, retail experience, Web site experience, and an army of accessories. Many of consumers Electronics Company do not have this.

Apple got a net margin of nearly 15% at the end of year 2007. To succeed like Apple, other companies need to deeply understand the customer, and their characteristics. They might need to admit that they cannot have everyone as their customers, and concentrate on the specific segment, which have to be the center people who can influence others in some ways. And target them specifically.

Macbook air, one of the latest product of apple, cool design (thickest part the laptop is lesson than a 1cm, and supported by powerful softwares, which are enough too draw attention from customers.

Opinion.
I strongly agree with Apple. Technology has been developed so and even too rapidly, that people can't even follow the speed of it's development, and design of the products are being more and more attractive. Now, these companies have to admit that cool design and features are not enough. Those things became so basic to succeed. Just like mentioned on the article, ecosystem is being important. Things that can guide people to experience buy and use their products more easily, usefully and conveniently. I analyzed Apple's access with AIDA model.

Attention: They draw attention in many ways. One of their most influencing method is their logo itself. Apple's logo is so distinct from others and easy to remember at the same time. People recognize its logo immediately after two or three times of encounter. Because it is simple and attractive, people get attractive with almost everything that has their logo. Also the design of the products did the huge contribution to it.

Interest: Apple draws interest simply with the word "different". Apple always come up with something new, something different and something unique. People get interested in their uniqueness. 92% of personal computer market is distributed by IBM compatible computers. Apple only takes 8%. However it is growing rapidly. IPOD is so unique and distinct from other mp3 players. By the differentiated feature and design, Apple pull the customer's interest.

Desire: Apple make desire to purchase their product with unique features. Apple computer uses different Operating system. There are some special programs that only run on the Mac. IPOD used to have so unique feature which is touch screen, and IPOD has more than 3000 accessories. All these uniqueness creates desire to use their product.

Action: Apple offers many service plan to the customer. Fast delivery, tremendous numbers of Apple store all over the world, convenient website, and service plans. Also they post the price of the product on the web, and all the country sell their product according to the price on the web. It can build a trust between customer and the company, by giving them an impression of safeness, makes them feel they are buying the product with the right price, they are not being fraud.

And the ecosystem comes next. Drawing a new customer is easy, because they are blinded. They don't know about the product well, and they haven't experienced them yet. However, maintaining the old customer is the hard part. They know the product, because they used it before. They are informed about the advantage and disadvantage of the products and the company. Having a right ecosystem in the place, is the incredibly efficient way to maintain the old customers. Provide a good user interface, right contents for the products, well-written instruction and online help desk, soft wares and accessories. Those are the things that help the companies to maintain the old customers, and make them to spread good words for the product and the company. In other words, use the buzz marketing.

Apple is leading the industry with innovation and creativeness. They don't just tend to enlarge the company, and expand the product line. They know that it is important to understand the customer, and understand them deeply. Apple understands: It's not about market share. It's about mind share.

Apple's logo, symbolizing the variation that can be applied to a variety of customers.

Annotation: Written by Sohrab Vossoughi, posted on Businessweek, article title: Apple: More Than a Pretty Face. URL http://www.businessweek.com/innovate/content/jan2008/id2008014_858681.htm

Entry_13 #20500687 :)

2008-06-06T05:37:00.000-07:00

Motivate Your Employees Like Jack Welch
-Follow the former GE CEO’s advice and energize your staff by helping them believe in the mission and understand how to achieve it

Why this article?
The idea of motivating employees of company has been such an important part of company management. Besides, it holds the keys to be a successful company. Among many critical issues that company’s CEOs have to take care of, motivating the employees perhaps is the most fundamental step to build a strong company.

Summary
Carmine Gallo introduces this article with Jack Welch’s management skill. Gallo mentions the statement that motivation starts with employee engagement, and engagement begins with effective communication skills.
Jack Welch says, “No company, large or small, can succeed over the long run without energized employees who believe in the mission and understand how to achieve it.”
This quotation implies the three secrets to motivate employees; “energized,” “believe,” and “understand.”

Believing in your mission
Companies put great effort in team-building event such as a whitewater rafting trip. Sometimes they reward employees with high performance all-expense-paid trip abroad to praise their accomplishment. What employees really want is compliment. Psychologically people desire public recognition in front of peer workers and there is no exception. As employees have not doubt to believe in company’s mission, it is up to them from now on.

Reinforce the core mission
Domino Pizza in India has a strong mission that is simple enough to understand for all 4,000 employees. Gallo provides some tips for how to manage later communication reinforcing the core mission statement to the employees. Companies can reinforce the core mission through weekly emails to all staffs, monthly brown-bag lunches with lively discussion, and quarterly visiting the global offices.

Opinion
I think the employees in the company are the most important element in management. This article actually draws two issues, the significance of motivating employees and of establishing the company mission. Top managers should recognize the significance both and design the most effective plans to put it into an action. As Jack Welch mentions about how to motivate employees, I totally agree with his point as if I were an employee of some company in near future. The company wants “energized” employees desperately since this is the key to success I believe. Companies have to know the employees’ job satisfaction including working environment, payment, and treatment. Rewarding system is highly recommended as well as team-building events to encourage employees. In sum, it is not difficult to catch what employees really want but to put it in to action is indeed difficult. This might distinguish whether the company is on the way of success or not.

Annotation
Carmine Gallo, Motivate Your Employees Like Jack Welch, BusinessWeek, May 23, 2008

http://www.businessweek.com/smallbiz/content/may2008/sb20080523_761806.htm?chan=search

Entry 13_20700347

2008-06-06T00:25:00.000-07:00

Bottling Your Own Personal Smell

Just few days ago, many young people who are 20 years old received rose, perfume, and something like that for ‘Coming-of-Age Day.’ So a lot of perfumes are sold. Do you have your own perfume? If you have, what is your own personal smell? Recently, many luxury brands which make perfume are great on bespoke perfumery.
SUMMARY
These days, fragrance market is taking a turn for the better. Therefore, some large enterprises such as Jean Patou and Guerlain and small businesses are concentrating their attention on perfumery. For example, Cartier, who started its bespoke scent creation in 2005, meets customer first for making customer’s own perfume. Cartier grasps customer’s personality and flavor through small talking. The process can take up to 10 meetings, resulting in the creation of a final perfume over several months. It has a quite time making bespoke perfume, and perfume’s price is very high. However, despite these factors, the number of the customers who are seeking this unique perfume is increasing.
OPINION
I think that luxury industry will not fold. According to the article, perfume industry is appeal to the many people.
Segmentation - Market segmentation is segmentation of custom’s needs. In this case, customs’ desire is to distinguish themselves and wear a unique scent. Actually, there are some value propositions including symbolic value, self-expressive value, and sensual value. For these value propositions, many customers want to buy a bespoke perfume which has brand name.
Targeting - This market is niche market. Frankly speaking, key customers are interested in themselves. They might like differentiation. I think that this products’ target age is 20 ~ 40, because they choose perfume with great interest specially. Therefore, this bespoke perfumery could be a mass market and include main stream.
Positioning – When I hear the word ‘bespoke perfume,’ the word ‘Identification’ flashed through my mind. Because bespoke perfume make people more attractive and special. Even though the perfume’s price is so high, perfume industry still strong thanks to such image.
In this generation, individual’s personality is very important to all of us. Therefore, they use their character with peculiar perfume in the whole world. If many large enterprises who make perfume advertise their products effectively, there will be a lot of new customers in this industry.

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Annotation : Amber Haq, ‘Bottling your own personal smell’, May 26, 2008, Newsweek

URL -> http://www.newsweek.com/id/137482

20700443: Entry-13

2008-06-05T21:43:00.000-07:00

Wal-Mart's Empire Expands, Again

Everyone knows Wal-Mart with its discount department stores. According to the 2008 Fortune Global 500, it is the world's largest public corporation by revenue.

Summary:

Wal-Mart Stores Inc. recently introduced a free internet classified service: Walmart.com Classifieds that runs through classified web site Oodle.com. Now it's selling its own offerings on the Web by posting the products, pets, and paraphernalia of virtually anyone who wants to list, and it carries now 30 million items. It is accessible through Walmart.com where they sell their own products, and it's not chargeable for both buyers or sellers.
Wal-Mart. com Classifieds has positive prediction of reaching more than five million consumers each month through a network of sites, including newspapers, portals such as Lycos and online communities.

Opinion:

In spite of the fact that Wal-Mart is already a huge corporation with million customers who like discount products, it continues to attract the attention and loyalty of their customers. Now Wal-Mart decides to expand through offerings that anyone can list on the web site. It also might be a positive influence on customers who are differently experienced in something new that Wal-Mart provides.
However, not all people think the same way, as many consumers have negative responses about their expansion. For example, some of them predict that it could shut down in several years, or while Wal-mart is doing good other small businesses don't have opportunities to disclose.

Wendy Bounds, Wal-Mart's Empire Expands, Again, The Wall Street Journal, June 3, 2008
http://blogs.wsj.com/independentstreet/2008/06/03/wal-marts-empire-expands-again/?mod=rss_WSJBlog

Entry #13_ St.ID: 20500297

2008-06-02T01:14:00.000-07:00

Nissan,

Toyota Focus on Graying Drivers

Faced with slumping sales at home, Japan's carmakers are testing

new technologies to help the elderly stay safely on the roads.

Design for the elderly)
As technology develops, population of older people is increasing. In Japan, since about 20% of the population is over 65 years old, targeting older people with specific model is becoming a popular business and it's not an exception for business about car driving. It's not just because the Japanese elderly population is gradually growing, but because of a lack of interest in car buying among younger drivers, 20s to 30s. Let's look at what Nissan did to do a business with older customers.

Summary of this article)
* Designer Suits
Nissan believed that those engineers making car for older customers need to 'feel' that what aging is like. Therefore, now it has engineers donning special suits that simulate the physical effects of aging. 'The suits give engineers the feeling of poor balance through a raised front-tor design; they include goggles that imitate failing eyesight and color blindness; and special casts mimic arthritic pain by making it difficult to raise arms and legs.' (quoted) With the same feeling of the elderly, car makers would fully understand what older customers really want and need.

* Special developments for older customer
Like these unique designer suits, Japan has been doing a lot of research about aging. Toyota approached Ryuta Kawashima, a professor at Tohoko University to develop a car of the future. The idea of Toyota is that this car is able to recognize how the driver 'normally' drives and if the speed of driving changes significantly, the car could automatically slow itself. Another thing is from Kawashima, known for being featured in Nintendo's Brain Age video game. He said that 'he would develop a system that monitors driver's brain patterns and, if problems are detected, notifies the driver or slows the car.' (quoted)

Personal Opinions)
Nissan's trial of feeling how older people feel for doing a business with older customers is pretty impressive. Without knowing what customers really want and need, such a business can never be successful. Targeting older customers was also a good choice because they are probably the ones who would be more impressed than any other kinds of customers when they feel that they are thought of and cared for. The important thing Nissan still needs to work on is how to attract these older customers to buy their cars. They might use AIDA model to set their strategy.

Attention: Since older people watch TV less than younger customers, TV commercials would not be effective. And actually older people drive less and even if they drive, they do not go far. To get their attention, Nissan has to find certain places that older people usually gather together. Opening a special even in those places can make older customers pay attention.
Interest: Once they pay attention, it is important to make them interested in cars. Either providing some products that older people need in their daily lives or introducing benefits of driving cars might be working in this step.
Desire: In order to make them want to buy that car, Nissan may think of the benefits that older customers not only need but desperately want. Most of the older people want convenient, safe, and affordable type of cars. As Nissan develps a special designer suit, they may need work on designing special cars providing new functions especially designed for the older people having difficulty with driving.
Action: In this step, Nissan needs to make older customers feel safe and easy in driving. With purchasing their cars, Nissan may provide driving education course.

No matter how old they are, every single human being wants to have their own portion in a certain place. Older customers are a good target in that kind of psychological sense. Acknowledging the fact that older customers have potential power would be Nissan's competitive advantage some day.

Annotation*: Ian Rowley, Nissan, Toyota Focus on Graying Drivers, Journal. May 6, 2008_ http://www.businessweek.com/globalbiz/content/may2008/gb2008056_154197.htm?chan=innovation_auto+design_design+strategy

13th Entry by 20500297 :)

20700457_DongSoo Joseph Rhee_Entry 12

2008-05-30T05:24:00.000-07:00

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

2008-05-29T22:26:00.000-07:00

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

2008-05-29T19:58:00.000-07:00

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

2008-05-29T17:43:00.000-07:00

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.

20700347

Annotation

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

Entry_12 20500687

2008-05-28T00:30:00.000-07:00

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 :-)

2008-05-24T01:49:00.000-07:00

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

2008-05-23T07:17:00.000-07:00

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

Entry11_20400495

2008-05-23T00:59:00.000-07:00

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

2008-05-22T16:45:00.001-07:00

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

2008-05-20T01:18:00.000-07:00

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

2008-05-18T09:09:00.000-07:00

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.

20700347

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

Entry10_20400495

2008-05-16T02:24:00.000-07:00

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

2008-05-15T18:04:00.000-07:00

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

2008-05-15T05:26:00.000-07:00

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

2008-05-14T10:15:00.000-07:00

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

2008-05-13T04:29:00.000-07:00

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

2008-05-09T05:07:00.000-07:00

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

2008-05-08T20:18:00.000-07:00

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

Entry 9_20500687 (10th week)

2008-05-08T04:44:00.000-07:00

* Low Prices Are Not Always Your Friend *

What do you care the most?
What is your main consideration when you purchase the products? Quality, brand name, and price are the things that pop up first to most consumers. However, out of many important factors that might affect to the purchase directly, price is the most sensitive factor when you make a real purchase. This article talks about low price strategy is not always good even though consumers think about the price most seriously. The author of the article, Steve McKee made some comments about this phenomenon.

Summary
This article mainly talks about how low price has two side effects when consumers make a purchase. They always ask for low prices but that doesn’t mean that they want the products. They prefer low prices but what they satisfy with is not the low price but the higher price which they believe or perceive that the higher priced product has better quality. McKee points out not only consumer’s sensitivity of price but also their perception of product according to the specific set price. They always evaluate their purchase whether it is worth buying it or not with the price they paid. McKee shares his personal stories not as a columnist but as a consumer for certain product. He experienced this phenomenon as well.

Opinion
As the article claims that “cutting prices might seem reasonable given the state of the economy, but doing so could backfire over the long run,” I expanded my thoughts further to business level strategy where emphasizes cost-leadership and differentiation learning from both marketing and strategic management classes. If you are a consumer who only chases low prices not the quality at all, then this case is not the one for you. However, I think it applies to everyone in a sense of psychology which I think rules the process of purchase. People tend to think the product seems better if they pay a bit more money compared to other products which they might have purchased with lower prices. “Higher prices may lead to lower sales volume in the short term, but they also provide the margins companies need to invest in brand-building or to expand their distribution networks.” Like McKee mentions, if the company is not like ‘Wal-mart’ which consists of ‘everyday low price,’ then positioning low price is very risky in the long term.

Conclusion
As a present consumer and a business-major student, as a future business woman, this price set is as critical as any other strategies. I strongly believe this phenomenon of all price related phenomenon is under psychology. Low price is not always welcomed for the matter of consumers’ satisfaction eventually. Setting higher price sometimes is needed to target consumers open their wallets who psychologically believe it has better quality and of course, you get what you paid for.

Annotation
Steve McKee, "Low Prices Are Not Always Your Friend," BusinessWeek, April 14, 2008

URL) http://www.businessweek.com/smallbiz/content/apr2008/sb20080414_027855.htm?chan=search

# 9 Entry / 20500297 (10th week)

2008-05-07T21:28:00.000-07:00

How to Generate Real Customer Loyalty

Why this article?) We had a marketing quiz yesterday. As I started reading each chapter, I found something that really attracts my interest. It is 'loyalty marketing.' As a company, having loyal customers can be one of its sustainable competitive advantage because loyal customers are those who increase sales by purchasing at your company as a 'fan.' Therefore, maintaining a long-term relationship with loyalty customer can be a key of success. In that context, loyalty marketing became one of marketing field I want to work in the future. This article, 'how to generate real customer layalty', written by Steve Mckee, provides you five principles to consider. Let's review.

Summary of this article_5 principles to consider) 1. Roots of Loyalty: Serving customers well and trying to meet their expectations are the first step of generating true customer loyalty. In order to make your customer purchase your product and pay more money, you need to remember that loyalty is a natural thing, which is from cutomer's satisfaction.

2. Appealing to the heart: "Behavior often comes from heart," the author said. I can't agree more than with his opinion. 'Emphathy' with others actually changes your attitude and perception. Emotionally appealing to customers has a power to make customer reveal themselves to almost all risks they may have to face in purchasing process.

3. Take your time: Once you have your customer's heart, you need to consider that 'love takes time', which means that long-term relationship requires you to wait. Wait until your customer finally prefers your product and brand. Patiently wating creates love, and then love will create a difference.

4. A Two-way Street: 'Relationships are reciprocal.' What the author says is that long-term customer loyalty is like 'give-and-take' relationship. True relationship with your customer develops along the lines of give-and-take. It should be mutual. As the author says, sending a birthday card to loyalty customer is no longer effective, probably. You need to create your own way to make your customers impressed based on true mutual relationship.

5. It's more than numbers: Behavior can be measured, but true relationship can't be. As technology develops, the way of marketing has changed, too. However, people are still the same. We want to be valued, repected, and cared about. Real customer loyalty comes from your true heart and respect for your customer.

My thoughts & feeling) 'What kind of maketing is loyalty marketing?' I thought of this. Makreting provides customers a value, as we leanred but there's something more than providing a valuable product in marketing. True relationship based on trust and love. Simply put, as I read this article, I realized the most important fact I always should remember. What God says in the Bible is the basic of our lives in many different aspect. This article reminds me of a Bible verse, "So in everything, do to others what you would have them do to you." in Matthew 7:12. How great marketer is our God! Do to others what you expect them to do to you is the key of successful marketing and long-term real customer loyalty because the nature of human beings are equal. It can't be possible without love and trust. In all fields, emphasizing love is never enough. What makes customers purchase at your company is not only the quality of the products, but also the way you treat them as a marketer. Although the price is quite high or the quality is a bit low, if you are respectful, polite, patient with your customer, and create your own way of maintaing a relationship with loyalty customers, - which show your love and affection for them - you will be paid back. - with customer's WALLET SHARE.

Annotation* Steve McKee, How to generate real customer loyalty, Jounral. June 6, 2007 (URL: http://www.businessweek.com/smallbiz/content/jun2007/sb20070606_425478.htm?chan=search)

Entry 9 by 2050097 :)

Entry9_20700347

2008-05-05T11:29:00.000-07:00

Bon-juk, the Korean traditional rice gruel restaurant

Have you ever eaten rice gruel? From long time ago, Korean people have eaten rice gruel when they sick, because rice gruel is digestible food. I also ate rice gruel many times.
By the way, recently, there are several restaurants which sell Korean traditional rice gruel. Among them, Bon-jook is very well known restaurant and it is representative rice gruel restaurant.
According to the articles, Chul-ho Kim, who is an owner of this restaurant, founded Bon-jook after founding Bon-bibim-bab. Since then, a lot of customers have visited restaurant, because he used fresh and good ingredients when making foods. Now, there are so many Bon-jook franchise restaurants in Korea. Furthermore, this brand opened restaurant in Vietnam.
I think that Chul-ho Kim found a nice niche market. Even though, he failed to expand his business at first, after finding niche market which is about Korea traditional rice gruel, his business becomes larger. Because of well-being trend, such kind of business has high possibility of success.
In my opinion, Bon-jook used very good marketing strategies. Then, what are the 4Ps of Bon-jook restaurant?
Product – To tell the truth, Korean people have made rice gruel with their own hands. So I guess that anyone didn’t think that rice gruel restaurant could be successful. However, Bon-jook placed various menus like Pumpkin gruel, Vegetable rice gruel, and something like those. At the Bon-jook restaurant, people can take foods which they bought. In addition, there are some delicious side dishes except a main food.
Pricing – Most menus of Bon-jook are 6,000won. Some are 5,000won or 7,000won. Is this an expensive food? No, because rice gruel is large in quantity. Also, in comparison with other foods, this is a food of good nutritive value. Plus, if someone gather 10 Bon-jook’s paper bags and bring the restaurant those paper bags, he or she could receive Vegetable rice gruel, so, the price is very suitable. Furthermore, considering prices of commodities, Bon-jook is very profitable in Vietnam.
Promotion – Because of well-being trend, many people pay attention to their mental and physical needs, so rice gruel that is ‘Slow food’ appeals to them. Also, Bon-jook developed new menus. In addition, they made membership points card. So, if customers make that card, they can use it in Bon-jook restaurants and take advantage of the various favors.
Placement – Bon-jook restaurants are located in front of hospital mainly. This is very strategic, I think. Because, there are many visitors around a hospitals, and they usually buy foods which is good for patient before visiting a patient in hospital. Therefore, many people drop by Bon-jook restaurant before visiting a patient.
In this way, Bon-jook used nice marketing strategies. Still, this restaurant is very popular, but new restaurants such as ‘Juk story’ and ‘Hyun-juk’ came up. So Bon-jook should make an effort on good marketing in many ways. I hope that this brand become popular all over the world in the future.

20700347

Resources : http://www.kukinews.com/mission/article/view.asp?page=1&gCode=all&arcid=0920801564&cp=du,
http://efn.edaily.co.kr/Brandnews/newsTotalRead.asp?sub_cd=DJ&newsid=01535046586340040

20700457_DongSoo Rhee_Entry8

2008-05-02T07:36:00.000-07:00

Political Ads, winner making strategy
: Politicians are expected to spend $3 billion on TV advertising in 2008

A few monts ago, there was an election for president in Korea, and also a general election a month ago. Every time there is an election gets thrown, you see all kind of advertisement of dozen candidates in your district. What makes you vote for specific candidate? I know that there are many considerations for that kind of decision, such as, their election pledges, facial looks, their age, which party they blongs. Along with those reasons, one of the most important factors is the advertisements you see.

Political Ads are changing. As an election law gets revised over time, and gets more strict, people tent to turn their concern into political ads. The amount of days which can be used for electioneering tour gets fixed, and amount of money is limitted. Because of those reasons, political advertisement maybe is the only and last way to apeal themselves to the public. Then how are those ads changing?

Political advertisement is one of the most efficient way to impress the public, and as the public, and the characteristics of the public changes, the characteristics of political ads had been changed. Back then, many election ads were serious, talk about their pledges, and try to apeal the public by how good they are. Also, paper, and the plan card were the most popular way to post an ad. However, as the public turned their interests to Tv and radio, those two media became the most popular one. And rescently, the internet media came up as the most popular and efficient way to post political ads. On top of that, trend of the contents in the ads changed too. If previous ads were concentrated on their pledges and abilities, the rescent political ads are focussed on their image making. Either that is serious and hard working image, or humorous and warm-hearted person kind of image. It also reflects the behaviour of the public. As the piliticians changed their target segment to the relatively low age, image making became more important than showing their pledges.

Portal sites are earning some extra money for these ads, tremendous amount of money to mention it as extra money. Party of Hanara, and new party expect to spend 3000000000 won for political advertisement. As long as the leaders exist, this industry will grow constantly.

Entry 8_20500687

2008-05-02T00:31:00.000-07:00

Kraft Reformulates Oreo, Scores in China

Personal thought about Korean snack brand :)
Have you tried the cookie made by Kraft, Oreo? Can you think of any foreign snack brand?
In Korea, there are many popular snack brands such as Nongshim, Orion, Haitai, Lotte, and Crown perhaps. I wonder if there is any Korean snack brand that does a good job in foreign countries. I got a chance to think more about these brands and how they manage their business domestically and internationally. Although I didn’t do research about their business expansion outside of Korea, I assume that these brands at least have been a good job to fit Koreans’ tastes. How about foreigner’s tastes? Have they thought about foreign consumers trying Korean snack? How about globalization of their business?

Oops, Kraft’s Mistake!
I read an article about Kraft’s global expansion on their star product, Oreo. Among plenty of famous products by Kraft, Oreo, if you know well about this snack, has been a star product of Kraft. Not only Kraft itself produces high revenues in U.S. but also other foreign countries as well, especially China. Actually, Kraft didn’t catch the Chinese’ tastes who aren’t big cookie eaters. Besides, traditional Oreos were too sweet for Chinese tastes. Also the price was too expensive where the package of 14 Oreos priced at 72 cents. According to the article, the market for biscuits in fiscal 2007 was just $1.3 billion, compared with $3.5 billion in the U.S. at food retailers excluding Wal-Mart Stores Inc. Based on this factual result, Kraft reformulates Oreo from the original.

Kraft’s Localization Strategy in China :)
Not from marketing class but from strategic management class that I am taking this semester, I learned various strategies applying to various situations. Few days ago, we talked about Starbucks and their globalization as the strategy of expanding the business outside of U.S. where their original business has started. What Starbucks used for the globalization was localization strategy where pressure for local responsiveness is high and pressure for cost reductions is low. For example, Starbucks came to Korea and open many stores in many different places focused on each place of Korea’s local conditions. Also in China, Japan, and Brazil, Starbucks applies different strategies to make high customer satisfaction. Reading this article, I thought Kraft might have adopted this localization strategy as they attempt to establish the business in foreign countries. Kraft considered the Chinese’ tastes for their number one product, Oreo whether it fits Chinese people tastes or not. They had to consider Chinese eating habits or cultures and perhaps their perception of U.S. snacks. Among four national competitive advantages, Kraft took ‘local demand conditions’ as the biggest national competitive advantage and worked on it for Chinese consumers. I found that this was part of the Rosenfeld’s idea who is the CEO of Kraft.

Concluding thoughts of New form of Oreo :)
Unlike original Oreo, Kraft created different shapes of Oreo but the same ingredients perhaps with low sugar contain for Chinese people. The new Chinese Oreo consisted of four layers of crispy wafer filled with vanilla and chocolate cream, coated in chocolate. I could find the new form of Oreo in our school convenient store as well. I didn’t check the price but it was interesting to see this different series of Oreo and that product caught my attention to buy and try. In my opinion, Kraft’s analysis on the global environment in China was very outstanding that Korean snack companies should try in foreign countries not just selling in Korean town. We need to take globalization more seriously and apply appropriate localization strategies to appropriate environment.

Reference
http://online.wsj.com/public/article/SB120958152962857053.html?mod=2_1567_topbox

20700443: Entry-8

2008-05-01T22:18:00.000-07:00

How to Market Your New Idea

Each one of us can come up with a new idea, but not everyone can work it out. There are bunch of difficulties with marketing your idea if you are, in addition, a new comer and no one knows what to expect from you, that's why many ideas are just given up, and only some of them have a right to exist.
First of all, small businesses should take time as early as possible to understand and individualize their brand, in other words, to have clear mind what they are standing for. Their visions shouldn't be limited so that they will not stop on achieved one. Moreover, some businesses don't spend much fund on advertising and marketing of their brand, they just support good relationship with customers that is part of the story or brand itself.

New business owners can go through many problems, but it shouldn't stop them to go back and revise what was not right and go forward, because experience is a way to success. Another way to create your own brand, you need a good reliable team that will support, advise, suggest, and encourage. An efficient team helps to build a history to a new brand using different kind of possibilities that are pictures, concepts, and colors.

Furthermore, each business is responsible for being unique and different from others if they want to sustain in the market for a long period.

References: ttp://www.forbes.com/entrepreneurs/entresales/2007/12/21/marketing-branding-identity-ent-cx_mf_1221brand.html

Entry8_20700347

2008-05-01T09:24:00.000-07:00

An-dong, the Korean traditional city

Have you ever gone to An-dong in Korea? This city is known for the city that has Korean own traditional cultural appearances. For this reason, a lot of people have visited An-dong.
According to the article, An-dong plan to attract 10million tourists by 2020. For this plan, they foster many industries about tour marketing. For example, they want to make their city more thematic, so they want their city to be a medical tour city. Also, they are going to expand more tourist information center. In this way, they plan to make themselves more attractive.
In fact, however, An-dong was known very well thanks to Queen Elizabeth 2. In 1999, the Queen visited An-dong for her birthday party, and she enjoyed many factors of Korean traditional culture through this city. At that time, many people began to pay attention and visit this city. So suddenly, An-dong became a famous city in Korea and could have a brand power. But soon, the number of visitors was decreased, because there was no tour marketing activities in An-dong. For instance, too many merchants in that city sold just expensive memorials, and there were no interesting tour programs in there. Therefore, a lot of visitors were dissatisfied with it. In my opinion, these were not considered by many public officials in An-dong at that time. Those conditions meant that An-dong ignores many marketing factors such as a price, promotions, and something like that.
To tell the truth, I visited this city with my families in my teenage. But, I was also disappointed of bad services in An-dong, so I have not so good memory about there. However, An-dong still has many merits to notify Korean own traditional culture. For example, a Ha-hoe village and many villages in An-dong have kept beautiful appearances, and there are peculiar mask which is called Ha-hoe mask. Therefore, if An-dong develops their own cultural factors to marketing goods, it would be a representing city of Korea.
In my opinion, public officials in An-dong should understand ‘The Consumer Decision Process.’ Because understanding of that process makes them prudent. In other words, if they know well that process, it would be useful when they plan tour marketing strategies. When people consume their money and time, they follow these steps; Need recognition, Information Search, Alternative Evaluation, Purchase, Post Purchase. We can infer a fact that people are very careful of their consumption through ‘The Consumer Decision Process.’ So public officials need to think about visitors’ mind, and then they should induce many people to go to An-dong through many marketing strategies. For this, good advertisements would be needed.
From long time ago, An-dong has represented a city of Sun-bi, a gentleman, a man of virtue, or a scholar. In addition, we can find many historical traces in there. Therefore, I hope that An-dong’s tour marketing would success. If public officials and citizens in An-dong act more positively, this city would be a great traditional city like the Rome.

20700374

Resources : http://www.dailian.co.kr/news/n_view.html?id=107484&kind=menu_code&keys=25

Entry 7_20700457_DongSoo Joseph Rhee

2008-04-27T06:30:00.000-07:00

Massive DSLR Boom in KOREA

Have you ever seen anyone walking around the downtown street with a comparevely big camera around their neck? Thesedays, it is not hard to spot a person with a DSLR camera. Only several years ago, DSLR camera was only for proffessional photographers. However, DSLR camera had been spread widely dectenly.

Two girls comparing eachother's picture

Let's look at the definition of DSLR camera first. DSLR stands for Digital Single Lens Reflex camera. which means that you take picture of exactly what you see. Other Camera formats, such as RF, or TLR camera might have difference between what you see and what you take picture of. People prefer DSLR cameras over compact digital cameras, because they generally give people better picture, since they have bigger CCD (Charge Coupled Device) image sensor, and benefit of changing lenses.

Then what is the reason for this rapid spread ? There are several reason for that.

First and the most important reason is the company's sterategic decision has been made. Back then the prior consumer and the target segment for DSLR camera was proffessional photographer group. Therefore, the price didn't have to be low, and the function and spec of the product had to be high-end. However, the frontier companies of the DSLR camera changed their target segments to the public, non-proffessional, ordinary people. Therefore, the various functions and specs which proffessionals need, could be removed, and that caused a huge amount of price cut-down. As a result, people were able to afford dslr camera at a relatively cheap price.

Secondly, the well developed internet system in Korea incited people to buy DSLR cameras. In korea, blog, and personal website is so easily found. And picture section is the most popular part of blogging. Because of the development of servers, the limitation of the volume of the data that can be uploaded is being increased alot. As a result, people started to look for better pictures. Also through the web, people had more easier access to the information of DSLR camera.

250,000 DSLR cameras were sold in the year of 2007, which is nearly 10% of total camera market in Korea. Analisists estimate that DSLR camera market will grow 0ver 20 ~ 25% than the last year.

There are no other markets where the DSLR cameras had been spread this rapidly, I believe this is the result of excellent management decision. It is the essential ability for the business man to find the new trend and make the right decision towards fast changing world.

# 8 Entry / 20500297 (9th week)

2008-04-25T21:10:00.000-07:00

Creative Korean CEO: WooHyun Kang

Spring has come! Spring season always makes me want to go out for a picnic. Flowers blossom, the Sun is shiny, it's just the perfect weather to take a walk. There are many famous places to visit in spring, and one of those places is 'Nami Island'. (The photo I attached) It's the place where many families and couples visit because of its beautiful view. I have been there when I was in elementary school and I still remember all different kinds of trees and a small amusement park there. It's just a peaceful place to get rest.

His Motivation) The reason I introduce you this place is to talk about the CEO of Nami Island, WooHyun Kang (55). Because of his managment style and strategy, Nami Island became one of the nicest place in Korea. He has been dreaming to creat a fairy tale-like world where people and animals get joined together for 8 years. Actually, he was a graphic-designer of children picture book. 'Is there any place I can creat whatever I imagine?' This thought of him was his management motivation, he said. In late 1990s, Nami island was driven to a corner because of high debt. The low-quality of facilities and highly-priced products sent customers away. The previous CEO of Nami Island came up to WooHyun Kang and asked him if he wants to manage Nami Island for a chance. WooHyun Kang accepted this offer with a monthly salary 1,000,000 Won. (which is very low as a CEO's salary.)

Reuse products & Motivate and support employees) At first, he couldn't do many things to change this corrupting management. The only thing he could do was reuse existing facilities and stuffs. All he had was almost a garbage, but he saw the potential of it. He used empty bottles to build a wall and made some artificial statues and vases that can be sold. He called one of district office located in Seoul, and asked them to throw away ginkgo leaves in Nami Island. Automatically, Nami Island changed into esthetic place that attracts people to take a walk. In order to save operating money, he left weed and wild flowers, and as a result, birds and bees flied in. Most importantly, he didn't forget to encourage his employees through a special party and gathering. He thought that the very first thing he has to do to make a change is let employees feel that he is a supporter of them. I guess that's what made WooHyun Kang to be respected and honored.

"Management is imagination play.") As he said so, through this article, I learned that professional managers are those who imagine and see what others can't see. Instead of direction and regulation, he actually created, drew, and show what he wants to change. Showing a small change creates a bigger change, I believe. I mostly focus on what I can do within a certain rule, but that's what made me lack of creativity and innovation. Plus, the way he emphasizes more on people and mind than system and money is something I should learn. As professor said in class, human resource is the resource you can't easily replace with other sources. Once I have someone I can totally trust and rely on, it will be so hard to change that person with other valuable things. As a future manager, I need to see the hidden potential of people around me. Everyone of us has a different potential given by God. Finding that potential and encourage people can be the first thing I can do. If fine management comes from imagination, as CEO Kang said, I think imagination comes from seeing invisible things. Invisible things become visible when I have a faith. Yes, in conclusion, God is the best manager! :)

* Reference: 중앙일보) '이름 빼고 다 바꿨다, 남이섬의 상상놀이 경영' by 박현영 기자
* The date is Friday, but it's Saturday today- (April 26th, in Korean time)

Entry7_20400495

2008-04-24T22:18:00.000-07:00

From Bricks and Mortar to Digital Music Master

As the technology grows faster, many industries, such as music record retailers are having a hard time adjusting their business model to this change. Though other music records are struggling, a store called Other Music is still making profits. How is this possible? Let’s take a closer look at this store.
Other music, in business since 1995, a New York retailer specializing in obscure CDs and vinyl, is trying to change its business model according to the industrial change. The data by the IFPI, a London record industry group tells us that worldwide digital sales mushroomed to $2.9 billion in 2007, up from $20 million in 2003. It says online and mobile downloads accounted for 15% of all music sales last year, across more than 500 digital services

Small is Beautiful

According to Aram Sinnreich, co-founder of Radar Research, small shops such as Other music has a huge advantage compared to major music shops. He says “Theses small retailers are the kinds of places that build musical communities in ways that Wal-Mart and Best Buy and even Tower Records never really could.”
Other music is doing quite well using their advantage as a small retailer shop. Followings are the few business strategy that Other music is putting stress on.

Download service

To compete with digital music stores such as iTunes or free file-sharing programs, Other Music launched its own download service, capitalizing on its close relationship with independent artists and small labels that don't sell on iTunes. Digital downloads have brought in almost a quarter of Other Music's revenue since the system launched one year ago. Only U.S. customers can access the online store now, but Other Music plans to expand it to other countries.

Selling on-line

Other Music has long sold rare vinyl records, but now the store is pushing the collectibles on eBay. The albums command higher prices at auction than off the shelf. The sales also extend the store's brand to music mavens searching the auction site who may become customers for Other Music's digital or mail-order services.

On-line news letter

Nearly a decade ago, Other Music started an e-mail newsletter to review records and tell customers about new artists and albums. Now that update, which goes to 25,000 subscribers every week, is a central part of the company's marketing, driving walk-in, mail-order, and digital sales. Through the newsletter, Other Music has built a reputation as a tastemaker in the indie music world, increasing the brand's value.

This small shop was clever enough to find what they are good and what they are not. They’d also distinguished between their opportunities and threats. In other words, Other music done well on organizing SWOT. As we learned from the class, before starting any kind of project, we need to figure out the SWOT first. Like the case in Other music, though selling CDs and vinyl discs are becoming more and more obsolete, they used their strength as a small store and overcame the obstacles. Another lesson we can learn from the lesson is the importance of segmentation and targeting. Other music did not try to sell popular and trendy albums like Kanye West, or Madonna. Instead, they targeted the manias who are interested in indie and underground music. This made them possible to earn profit by selling CDs. The last lesson we can learn is they had modified their business strategy according to the fast growing environment. Instead of sticking on the original selling method, they added on-line selling using E-bay and used on-line newsletters. This also made them to prevent getting behind the trend and constantly getting touch with the consumers at a relatively low price.

Reverence:http://www.businessweek.com/smallbiz/content/apr2008/sb20080421_919951.htm

20700443: Entry-7

2008-04-24T20:46:00.000-07:00

McDonald's Gets A Fashion Makeover

McDonald's is one of the world's most well-known and valuable brands all over the world, it is known for its quick service eating out segment. This brand takes a sustain place in the world market and has its franchises in many countries. McDonald's offers a variety of favorite foods, like World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. As many other companies, McDonald's wants always to take the leading position in the market, so that it tries to please it customers not only with variety of food, but also with the atmosphere and suits that can express the recognition and uniqueness of its brand.
According to the latest news that was published on April 23, 2008, McDonald's providing its stuff with new uniform designed by one of the famous dressmakers, Bruce Oldfield
McDonald's is one of the world's most well-known and valuable brands all over the world, it is known for its quick service eating out segment. This brand takes a sustain place in the world market and has its franchises in many countries. McDonald's offers a variety of favorite foods, like World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. As many other companies, McDonald's wants always to take the leading position in the market, so that it tries to please it customers not only with variety of food, but also with the atmosphere of environment and suits that can express the recognition and uniqueness of its brand.
According to the latest news that was published on April 23, 2008, McDonald's providing its staff with new uniform designed by one of the famous dressmakers, Bruce Oldfield. They replaced brightly colored uniforms with more serious outfit that includes black, beige, and brown colors.
Two types of clothes were designed or both male and female, but colors stay the same, for example, female management staff wear high heels, pencil skirts and scarves, male wear suits, and the staff who serve the food wear polo shirts.
As it is known, the uniform will appear by the next month in UK; however, already now McDonald's staff has liked the uniform and feels more confident in them, so that customers start respect them more than before.
McDonald's is sure that not only with meal people can make advantage but also with the appearance of staff serving the customers.

Resources: brandrepublic.com

Entry7_20700347

2008-04-24T12:52:00.000-07:00

Woong-Jin Coway

Do you know the brand ‘Woong-Jin’? Woong-Jin is the company that does many businesses in various areas like SamSung. They include many sub brands. Among them, Woong-Jin coway is the company that produces home appliances which are related with water. So they produce a water purifier, a bidet, and things like that.
According to the article, the Middle East countries and the India were startled at Woong-Jin coway’s water treatment techniques, because Woong-Jin has many good water treatment techniques. So this company is good at improving their skill to control water, and it also good at personal selling. In fact, through many air television commercials, this brand gives impressive image to a lot of consumers including me. Especially, they emphasize several points in their advertisements. Then, what is that they emphasizes in their commercials? That is a ‘cody.’
A cody is a staff who evaluate a purifier’s conditions. Usually, cody visits consumers’ house and then they check the purifiers. In this way, Woong-Jin coway can walk up to consumers closely, and it can be called ‘face-to-face strategy.’ Because if a cody check and care a purifier’s condition well, consumer would believe this brand more and might become a Woong-Jin’s real consumer. For example, this company has a program that rental their products. If a consumer receives a cody during their rental home appliances periods, they might has a mind to buy Woong-Jin coway’s products. In other words, this company has been improved their value through rental marketing and cody system.
To tell the truth, there are a lot of people who are not good at using a purifier well. For instance, some people who possess a purifier don’t know how they check their purifiers, so the ‘cody system’ may give consumers useful tips. Also, through this system, consumers can know Woong-Jin’s products well than ever before. Therefore it is very nice in many ways.
In my opinion, Woong-Jin has been embossed personal selling. In many TV commercials, a cody who are neat and tidy make he or she appears. This could give neat and believable impression to the public in Korean society, and so they increase market share gradually.
Recently, Woong-Jin coway accepts ‘madamsumer’, a conjugation of two words; madam and consumer. In this company, several madamsumer are going to do their work. To illustrate, they should evaluate the company’s products, marketing strategies and participate in environmental movement. In this way, Woong-Jin could hear consumers’ opinions and understand a consumers’ position. And later, it would be benefit to planning their marketing strategy.
In 21 century, water is the most important resource all over the world, so I think that a business which is related with water can core business in our surroundings. At present, Woong-Jin coway is making an effort on their improving skills, and marketing strategy. But they should keep that communication with consumers is very important and should be continuous in their minds. In addition, relations with company’s consumers should be deeper, because personal selling is core part of their business.

20700347

Resources : http://news.mk.co.kr/outside/view.php?year=2008&no=162428, http://www.coway.co.kr/intro/company/company.asp

Entry 7_20500687

2008-04-20T05:03:00.001-07:00

Hide the Doritos! Here Comes HR
Working environment, one of the critical long-term strategy of the firm :)

As a business majored student, I learn various companies’ marketing strategies. For this week’s journal entry, I picked the article about a part of the culture of organization which at first is hard to recognize but later could be an important culture standard. Firms are putting health food in corporate break rooms, cafeterias, and vending machines dumping donuts in favor of organic fresh fruit deliveries.

People eat high calorie donuts such as Krispy Kreme, cookies, and high sugar-based deserts for their regular meeting times, breaks, and other times as well. It seems almost they are eating by habit which they had carried since they work at the firm. In Google, for example, there is the word ‘Google 15,’ which indicates the number of pounds Googlers say that they typically gain after joining the company. What excuses could they make for it? Some people might claim that it is all about self-control. I partly agree however, one of the most significant factors of this problem is the environment. Thanks to the article especially the Human Resource department of the firm, they now have healthier eating environment. Since Google is famously known as the company which committed to doing no evil, they stock the vending machines, cafeterias, and break rooms with fresh fruits, low calorie snacks like cereals with dried mangos, and waters in replacement of soft drinks. Consequently, now Google has 50:50 the junk-healthy ratio in everywhere including agave-sweetened beverages, roasted nuts, sulfate-free dried fruit, and platters of organic crudités. Like Google, Yamaha Corp. of America and Caterpillar are also doing this healthy food surrounded project within the firm, which I think that they are on right track for both individuals and the firm itself.

Establishing new culture of the working environment including this eating habit is very difficult at the beginning and it sometimes is almost a challenge to change or to settle the new trial. Analyzing this article, I could see the two sides of the company’s purpose of doing this project. I think Google does a good job get supported by human resource department that cares the employees the most as well as the company itself in a long-term. They recognize that unhealthy eating environment is not at all good to the company. That I consider it as a company’s hidden strategy which might bring positive effects to the employees personally as well as efficiency of work for growth of the company. This new culture will be one of the big differentiations to distinguish from other average companies and make the company more advanced not only with the products but also with the business culture.

Reference - http://www.businessweek.com/

# 7 Entry / 20500297 (for 8th week)

2008-04-19T05:17:00.000-07:00

Magic Kingdom: Disney's Revival

In order to prepare for my job interview, I have started reading newspaper everyday. So as usual, I was reading each article carefully, and I found an article about Disney. Basically it says Walt Disney is growing with its new CEO, Robert Iger. As the graph I attached tells you, the sales and revenues have been growing. But the thing we need to think of is, 'why?'

Personally, when I was very young, a lot of characters of Disney were my close friends. I remember that I even cried while I was watching 'Lion King.' (Yes, at the moment when Simba's dad was falling over a precipice!) In class, we've already talked about Disney's case with our professor. He pointed out that Disney could be successful because it has a story that we can share and remember as a precious childhood memory. That can be one reason of Disney's success, I guess. Other reasons explained in this article are first, Disney started targeting not only children, but also teenagers, twenties, and even adults, and second, with their famous animations, they created musical show, ice show, and concerts which attracted many customers and consumers.

But most importantly, Disney's new CEO, Rober Iger's management style was totally different from the previous CEO, Teri Isner. While Isner was a kind of dictator, was satisfied with his own decision only, Iger respects his employee's ideas and thoughts and it creates creativity. After Disney took over Pixar from Apple, Iger let it maintain its previous working style, helping employees focus on work effectively with a feeling of freedom.

Although there are a lot requirements that a company's CEO should have, I believe that 'respect for employees' is one of most signifant aspects. For a CEO, it must be hard to show respect and satisfy every single person that works for his company. Without love for Disney and its employees, Iger couldn't have shown respect or let employees have their own opinion towards Disney. The person who loves has learned to give freedom to those he loves. Freedom is one of the greatest gifts we can give. It is what Jesus came to give us, and we must also give it to others. I think That's what Iger has been doing so far. A leader should definitely operate in love because what is on the head flows down to the body as the Bible says and what that love shows is respect. I'm looking forward to seeing another level-up of Disney with Iger. His giving of freedom to employees will bring a new successful story of Disney.

References*
한국경제) '매직킹덤: 디즈니가 부활한다' by 이미아 기자

* entry 7 by 20500297 =)

(Please note that this blog is not late even though it is uploded on Saturday. This one is for next week. - same with the 5th entry - I just want to make sure. Thank you!)

20700457 DongSoo Rhee Entry 6

2008-04-18T18:21:00.000-07:00

Internet Ads: Irritating or useful ?

These days, you see all kinds of Ads on the internet.

Every website you visit, you can easily spot ads.

What do you think everytime you see those ads ?

There is a debate going on about "are internet ads irritating and ineffective.

Pro: Ephemeral and Annoying

The most common opinion between Pros is that internet ads are annoying and unuseful. What is the last ads you've seen on the web. Nobody can answer that question easily. That is because, people see uncountable number of ads in such a short time, and they are not attractive enough or relavant enough to draw customer's attention. Moreover, statistics shows that about 50% of the action of actually cliking ads are unintentional. If a person clicks on the advertisement on the web accidentally, during web surffing or data searching, and it links to other pages or flash pops up, it is unimaginably annoying. This situation gets deep, if he is in a hurry. Also, most of the ads are irrelevant to the users. Therefore, a very few ads can be attractive to a specific user.

Con: Pertinent and Precise

The most popular perspective of Cons is that this phenomenon is unavoidable. Advertisement industry has been developed over century. First, people started to contribute ads on the newspaper in 17th century. Then they moved to TVs. Now, its internet's turn. Nowdays, most people use internet, so it's natural target for advertisement. Moreover, people say internet ads are not attention payable. However people think that way, because there are too many irrelevant ads to a browser. Just like traditional media, ad is absolutely noticed when they are relevant to you, and this kind of situation always was existed on the past, on the other medium. You can't remember the every tv commercials you see. The reason why you remember relatively many numbers of tv commercials compared to interner ads is that you see through bigger screen and more sounds and effects.

As showned in the graph,

the number of internet ads is increasing greatly

I agree with Cons, but I understand the position of Pros. It is really irritating un-wanted ads or flash pops up while I use internet. However, internet is becomming more and more popular, and most of people use internet. "Ineternet became a new center media of this society" Advertisement has to be done somewhere, and now it is moving for the market which has a largest number of customers and huge potential of growing. As I mentioned above, it is unavoidable phenomenon. Then, what can we do to solve the problems that internet ads have.

Resolution can be found in a various way. One way to solve the problem is "target advertisement", one huge advantage internet has is that it is easy to collect information from users. Therefore it is possible to show internet ads to specific users. For example, it is able to show different ads according to keyword you input on the search enguine. Then annoying and unuseful ads can be reduced to certain amount. However this solution has a problem too. It is "Privacy". Is it right to collect information from browsers like that ? This moral issure has to be solved in order to use this method. Another method is to raise the price of advertisement to certain level. Now internet advertisementising is relatively cheap. That is why all kinds of companies use internet advertisement. On the other hand, cheap and easy method is one of the biggest strength of internet advertisement. Therefore this could limit the growth of internet advertisement industry. So I think best solution is to find a compromising point. Firstly to raise the price of the advertisementising price of advertisement which is contributed at most-seen part of website, such as top part or center part. Secondly, limit the number of ads to a certain level. Of course, there will be much more spot left than tv or newspaper after the limitation, but by limiting the number of ads, imprudent advertisement can be avoided. Whatever method we use, we have to find the way to clear those issues and encourage the advertisement industry on the web.

Entry6_20700347

2008-04-18T07:17:00.000-07:00

Marketing through a soccer game

Have you ever seen a logo “SAMSUNG mobile” When you watch a English premier league soccer game on TV? There are many logos in a stadium. If you have a good look when you watch a soccer game, you can find many logos which represent companies.
According to this article, many companies in Korea invest a lot of money on sports marketing. Especially, Samsung, one of the large companies in Korea, has been advertised their brand through a soccer team. The premier league soccer team “Chelsea” is sponsored by Samsung, so players wear the letters Samsung on their shirts. Its effect is very good, so Samsung could increase their call rates in Europe. Also, LG Electronics Inc., the nation`s second-largest electronics maker, is trekking the globe with a sports marketing scheme to raise its brand recognition and image.
In my opinion, companies can have a good crop through sports marketing. In fact, many premier league soccer teams in Europe do sports marketing, and they generate revenues through it. When a popular player scores a goal, many spectators at a football match can see him through a big screen, and the camera magnify him. So the logo which is printed on his T-shirt is seen by a great number of audiences.
Think about this situation. If you like “Manchester”, an English soccer team, you would watch their soccer game, and you can see many logos through a TV screen at the same time. So brands which are seen by you would be familiar with you, and you might buy those brand’s products.
In this way, sports marketing can effect on many people’s consumptions. For example, Samsung could give many Europeans good feeling about their brand. In other words, a logo which is seen by audience can has influence on consumer’s decision process.
Meanwhile, sports marketing is not active in Korea. To tell the truth, there are many people who think that sports and marketing are separate issues. But I don’t think like that. Sports also can be used for advertisement because it is very good to expand firm’s presence. In fact, Korea is not so good to do sports marketing because less people watch a soccer game of K-league, Korean soccer league. So I think Korean companies would better use a sports marketing strategy in abroad, and this marketing could be a global marketing.
In the article, a sports marketing which is proceeding on a soccer game is mentioned mainly. But there are many kinds of sports marketing. For instance, many European soccer teams sell their uniforms and related goods.
Soon 2008 Beijing Olympic will be held. Therefore, I think that this event is very nice chance to do a sports marketing. So it would be effective if many companies endeavor to improve their value through sports marketing strategy.

20700347

Resources : http://www.donga.com/fbin/output?n=200802200146,
http://www.sportsworldi.com/Articles/Sports/Soccer/Article.asp?aid=20080225002802&subctg1=40&subctg2=00,

Entry6_20400495

2008-04-18T02:52:00.000-07:00

It’s all about experience!

Because of the fast growing rate of technology, catching the customer’s eyes by technological innovation is becoming more and more difficult. Creating an innovation was one of the methods to differentiate from the competitors. However, due to the advance in the manufacturing, though you innovate your business, it will only take 6 months for your competitor to knock you down. So how can we differentiate from competitors who are able to knock you down so fast? The article is telling us that the answer is providing experience.
The article is using the term experience innovation. This means providing a unique experience which never has been provided to the customers before and satisfying the unmet need. Also the it says that companies intending to be relevant today must learn the art of creating experiences that genuinely engage their customers. To do this, you need to know the four components of experience innovation.

Know where you are in the innovation cycle
There are three areas of innovation: technology, product, and experience.
Among those three, we need to focus on experience. Starbucks is a good example of experience innovation. At the time when America didn’t had a place to enjoy coffee and chill, Starbucks provided a experience which they never had before. You should understand where your mindset lies in this innovation cycle, and know what it takes to participate and perform in the other spaces.

Know your DNA
This means you got to know yourself. What you are good at and what you are not. Do what is natural to you and don’t try to fake it.

Make emotional connections
If you want to make emotional connection with your customer, you need to understand them. Understanding what they need and what they desire, and knowing the difference between these two are crucial.

Design for the complete experience
Though you have a complete idea and know-how to provide an innovative experience, it is all in vain if don’t make it up to the customers. Every aspect of your business must reflect your company’s DNA and what you have learned about the desires of your customer.

These days, customers are tired of selecting and distinguishing products. Instead of looking for companies which most satisfied their needs, they are looking for companies which they can rely on and give their loyalty. Because of this, providing a unique experience is getting more and more critical.

Recently in class, we had been trying to make a traditional Korean dress targeting the foreign tourists visiting Korea. Compared to Japan, which provides various cultural experiences, Korea doesn't have any healthy and enjoyable traditional experience which appeals to the foreigners. So the goal of this project was makeing a traditional dress which can appeal to the foreiners . This project is more than just making appealing dress. It is about selling experience to the foreigners who wants to understand our culture. To do this, we could have applied the four elements for experience innovation. I think during this project, our team has missed a crucial step mentioned at the article, which is making emotional connection. As we went through the project, we focused on the aesthetic parts and how could this dress reflect Korea, not what the foreigner, who is the actual costumer, wants and needs. We haven’t gone through any survey or research related to foreigners. The article is warning that if we disregard our costumer our business will fail to be relevant in a glutting market.

reference : http://www.businessweek.com/innovate/content/apr2008/id20080411_491286.htm

20700443: Entry-6

2008-04-17T20:57:00.000-07:00

All About Nestle: Good Food, Good Life

In 1867 Henri Nestle developed a first milk food for infants, and saved the life of a child. It had been known in many places so that people quickly recognized the value of the product. Since that time Nestle Company based its business on human values and principles.
In spite of the fact that business principles of that company are continuously changing according to the world changes, the basic foundation stays the same from the times of the origins, and keeps the same values as fairness, honesty, and concern for people.
The basic business objective of Nestle is to produce and sustain on the market with Company's products, so that it will create value for shareholders, consumers, partners, and employees for a long time period.
Nestle recognizes the trust of their consumers, because without them the company would not exist. Consumers take the main role in business, and only for them all markets are oriented.
Nestle achieves success also due to skilled employees and its management.
It has already passed more than a century since the first Nestle product, for that time the company prospered a lot, they opened up new brands, they have their investors and those who are eager to become business partners with them, they have their own stable customers, who prefer only their products, people recognize them through their brand names, and these names are known all around the world, I even doubt that there can be people who don't know or heard about Nestle and their products.
According to the latest news, Nestle drops Rowntree name from the name of its UK operations, now it will trade under the name Nestle Confectionery(UK).
As Nestle agents say, they changed their name in order to reflect better their status as a major exporter and importer in the company's global confectionery structure. However, the name will stay on all its sugar confectionery brands, such as Fruit Pastilles and Jelly Tots.

References: http://www.nestle.com/Brands/Brands.htm
http://www.brandrepublic.com/Discipline/Marketing/News/801635/NestlE-drops-Rowntree-name/

# 6 Entry / 20500297

2008-04-17T20:14:00.000-07:00

The iPhone in Europe: Lost in Translation

Remember Euro Disney case we talked about this week? The more Europe becomes powerful, the more businesses open there. Not only Disney, but also Apple is targetting Europe with its hot item, iPhone. Well, personally, I am a fan of SONY. I prefer to buy all of computer devices from SONY, because the very first thing I care when I buy something, is its design and I love the one of SONY. (simple + neat + professional!) No matter how much it costs, I mostly purchase SONY products because it gives me some of value and satisfation. In other words, I trust SONY.

But the problem is, besides design, there is no reasons I 'must' buy SONY product. Reliability? Warranty? Then why not Samsung? Probably Apple users have this kind of purchasing habit. I saw so many Apple laptop users in the United States, especially around college campus. Not only do they have Apple laptops, but they also have iPods and iPhones. Yes, if a certain company gives speical value to customers, those customers tend to buy other products from that company and I guess Apple is doing a great job with it in the United States. But hey, do you think iPhone is really differentiated and innovated?

This article tells you how Apple has been doing in Europe telephone market. Generally, wireless carriers such as Britain's O2, France's Orange, and Germany's T-Mobile are happy with introduction of iPhone into Europe. These three carriers sold a combined 350,000 iPhone in the fourth quarter last year. However, strategy analytics actually forecasted 500,000 sales for the last year, so it was not enough sales. More than that, the sales has been dropped to 300,000. I wondered why and thought of Euro Disney for a while. The price of iPhone is very high while most phones in Europe are subsidiezed. Do you know what customers say about iPhones? I read some comments about this article and most people said that buying an iPhone is such a waste of time and there's no reason to buy iPhone except for the design. Some people even mentioned that WIndos Mobile Smartphone is way better than iPhone because it is reliable and useful for personal and business use. I think people do not want to pay that much money ($600) for an iPhone whilch does not have 3G or GPS or other advanced features which other phones already have. Why iPod? Why iPhone? Just because of design.

I know that design is very critical in marketing and production and that's why companies in Korea like Anycall can't compete with Apple. However, in order to succeed in Europe, Apple needs to do something and that's what we need to consider as a marketing student. In design part, Apple is already a winner as many customers love their design. Now, what makes them 'different' and 'innovative' should be something more than just design. It's the key of success.

References*

http://www.businessweek.com/magazine/content/08_17/b4081000500950.htm?chan=rss_topStories_ssi_5

* #6 entry by 20500297 =)

Entry 6_20500687

2008-04-12T05:47:00.000-07:00

Starbucks’ Retro Logo

What can you draw an image when you think of Starbucks? How much do you get used to the logo of Starbucks? For me, personally, I do not go to Starbucks much often since we don’t have any Starbucks in Pohang. I usually like to go to café such as Starbucks, Coffee bean or Pascucci. These are all foreign coffee brands which have captured Korean market rapidly and created new coffee culture in Korea. However, it seems like there’s not much difference between those brands. Perhaps the logo and the image of café are the only things that distinguish its brands.

Reading the article about Starbucks’ Retro logo where Starbucks is using a special brown logo to evoke the chain’s beginnings and restore some goodwill for the brand, I first thought this is a good idea to market their brand. Since Starbucks is too steady to create revolutionary marketing strategy and it seems that Starbucks doesn’t need any changes, this coffee brand is no more new or poking people’s curiosity but rather losing a mystique about the brand image. However, the reminder of retro logo gives me another interesting viewpoint as I think about Starbucks is more fun and upscale coffee brand.

As the article mentions about nostalgia effort through bring up the retro logo, I partly agreed the effect that might give to consumers. The common logo of Starbucks is seems overused since the brand has established. The retro logo has the twin-tailed mermaid inside the brown medallion as if it knocks the time of the chain’s 1971 beginnings. Old logos can evoke people with a brands’ story and history and knock on people’s emotion being nostalgic. Against much worries about the image of green from the main logo of Starbucks, I think the brown color fits well with the image of coffee and the concept of evoking the old times. In my opinion, this is worth trying since this logo will be temporarily using and it doesn’t seem to produce confusion recognizing Starbucks since its reputation is well set in worldwide. In addition, if the brand has done right and consistently, then this would be no problem. At this point, Starbucks has done fine job to establish good image making. I want to try a cup of coffee at Starbucks with having new retro logo on a cup soon and feel what impression it will give to me.

Reference
http://www.businessweek.com/innovate/content/apr2008/id20080411_065581.htm?chan=innovation_innovation+%2B+design_top+stories

Entry5_20700347

2008-04-11T06:06:00.000-07:00

McDonald’s in Korea

The McDonald’s is a well-known chain of fast-food restaurants all over the world, and it symbolizes American culture. In 1988, McDonald’s advanced on Korea. At that time, hamburger was not a usual food to most Koreans. But, McDonald’s which represents U.S.A has been changed appetite of many Korean people, and now, McDonald’s hamburger is familiar food in Korea. Many Korean people like McDonald’s. Then, how could McDonald’s achieve success?
First of all, McDonald’s has given a feeling of intimacy to Korean public through a commercial broadcast. In many commercial, Ronald who is mascot of McDonald’s appears, and that man makes a shape ‘M’ with his fingers. That form which shaped like ‘M’ is similar to people’s smiling face, so it makes people happy.
Second, McDonald’s has been use marketing strategy for children who like toys. For example, one menu of McDonald’s is “Happy meal,” and it includes a hamburger, desserts, a drink. If someone buys a happy meal, he or she can receive toy, and the toy set is changed regularly. Children who saw a commercial on TV, they want to get a toy which is given for free at McDonald’s. Moreover, children who got a toy set from the McDonald’s would like to receive a different toy. So, many children would like to invite the McDonald’s again and again. In fact, there are a lot of people who are gathering toy set which is from happy meal, and they are not always children. To tell the truth, many adults also like to gathering toys.
Third, McDonald’s took an advantage of recent `well-being` trend, which has boosted consumers` awareness of healthy food and drinks. Several years ago, people who hate McDonald’s foods started a movement against McDonald’s because this restaurant use poor quality ingredients, and its foods make a bad effect to people. So McDonald’s was at stake. However, customers begun to invite McDonald’s soon, because McDonald’s started to sell healthy foods. McDonald’s passed their big crisis in this way.
Fourth, McDonald’s develops new menu, so there are various hamburgers, side foods, drinks in the restaurant, and customers could have a selection of different foods. In other words, McDonald’s uses diversification strategy. For example, they developed a menu which is named “Mc morning.”
Fifth, McDonald’s used price strategy. McDonald’s has “Choice menu,” and these menu’s price is only 1,000 won. Therefore, customers can buy foods at low price. Also, soft ice cream is only 300 won. So many people can buy a ice cream easily.
However, McDonald’s had some mistake in marketing, because they were not considering about Korean culture. For example, “McDrive menu” did not catch popularity, because people who are teenagers or twenties are main customer of fast-food restaurant in Korea. Also, cheap ice cream decreased turnover rate, so customers’ waiting time became longer. Therefore, McDonald’s should consider turnover rate when they decide foods’ price, because turnover price is very important thing in fast-food restaurant.
In addition, McDonald’s have some problems to solve. For example, compared with different fast-food restaurant, their store is not so clean, and customer might feel unpleasant. Plus, they need to make an intimate atmosphere, because many people dissatisfied with McDonald’s noisy atmosphere.
McDonald’s has been loved by many Korean for 20 years. In fact, their market share is not the best in Korea, but if they care of marketing, they would grow than present.

20700347

Resources : http://media.daum.net/economic/industry/view.html?cateid=1038&newsid=20080409031003644&cp

Entry5_20400495

2008-04-11T04:01:00.000-07:00

The power of emotion

Appeal to the heart not the mind

When you buy something at a store, what do you consider most? Is it the price of the product, quality or the design? The author of this article claims that it is the how the product of the brand moves the heart fo the consumers.
Compared to the signature shoes of Dennis Rodman (one of NBA’ all time trouble maker), author felt more comfortable and relieved to pick Grant Hill’s (a model NBA citizen) signature shoes. It was not the design or the price of the shoe that affected the authors mind. It was the feeling that the shoe created affected the author to pick the shoe.(Though the Rodman's sinature shoes looked more cool.)
McDonald’s was one of the first advertisers to understand this effect of feeling. Decades ago when their competitors were competing on the size of their burger or the thickness of their shakes, McDonald’s was busy trying to build an emotional image of all of the families enjoying the moment around the fast food restaurant .Instead of making their consumers to accept or reject the rational claims being made by competitors, McDonald’s made them hard to argue against and easy to embrace. Though as the time went by the consumers have become more sophisticated, the underlying principle remains true. Also, today, a lot of brands are using this tactics.
Too many advertisers think that the consumers are rational people and try to approach with a rational tactic. Sure, features, benefits, and cost/value equations enter into it, but never do they do all the heavy lifting. This is well applied to the categories such as soft drinks, beers and automobiles which the brands face a high degree of competitive parity. This is because they simply don’t have unique rational claims to make, so they have to win people’s hearts instead of their minds.
We have learned in class that the consumer’s emotion plays a big role in marketing. I also have experience buying products relying on my emotion rather than rationale. To be a good marketer, we need not only to learn about the basic marketing skills but also understand the emotion and the feeling of human being.

Reference:http://www.businessweek.com/smallbiz/content/nov2007/sb2007118_797874.htm?chan=search

20700443: Entry-5

2008-04-10T21:06:00.000-07:00

April,8 London: Nikon, photographer brand, is going to sponsor the 9th Fina world swimming championships as an official partner of the event.
During these 5 days competition, over 750 world's best swimmers all around the world will be competing for gold in front of million public. This is the first time when that kind of big event will be held in Manchester at the MEN arena.
As Nikon promoting activities at the event it also decides to make offering services free of charge to professional photographers through the Nikon Service Depot, where they will be able to talk to Nikon's technical support or use any depot's facilities that will be required, or will be helpful.
In addition to all the promotion activities that Nikon offers, there will be two Nikon's professional photographers, Kaiwai Tang and David Ashdown, who will be capturing the best pictures of the day at the pool side, using the legendary FX format Nikon D3.
So, the event will attract many professional photographers from around the globe and it makes Nikon as one of the best camera equipment. This is a smart way to promote themselves, and become famous among those who will participate or just watch that event, as they not only sponsor the event but also offer complementary service...

http://www.brandrepublic.com/Discipline/Marketing/News/800391/Nikon-sponsor-Fina-world-swimming-championships/

Entry 5_20500687

2008-04-06T07:47:00.000-07:00

Corporate Social Responsibility,

what do you think?

Many companies usually take an action of voluntary works to reveal their social responsibility to the public especially large companies do with great amount of money. I usually do not have any interests of how companies do their social contributions since there were always corruptions related to their finance and reputations. So I understand their social contribution is something that show of to the public making up their past faults and regain their reputation. People criticize this issue like me, however, this social responsibility is very crucial to understand how companies manage the firm and operate rightly.

This article talks about the Korea’s famous automotive group Hyundai-Kia has adopted a resolution to actively pursue socially responsible management based on trust. They decided to expand program of making social contributions. The program covers many different tasks in three categories, including development of harmonious and complementary relations with labor and suppliers, promotion of environment-friendly management and assistance for the underprivileged. It sounds quite ideal and it will be more ideal if these plans will be successfully achieved in the future. In our marketing textbook, corporate social responsibility is described as the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders. It emphasizes behavior and perception of companies toward the idea of voluntary works or social contributions. The point that knocked my head is the impact of this action to the companies’ employee. Since the top managers decide to perform social responsibility in a right way, the employees will absorb the thoughts straightly and it will eventually help them to set their mind as socially responsible person. It doesn’t only affect the employees but consumers and investors as well. They have more trust on the firm which does good job on social responsibility and it will create better results for their business at the end.

As a marketing student, this article and the principles of social responsibility alert me to think about the issue more seriously. Doing business appropriately is very demanding in a sense of considering many factors not just profits. In near future, I will remind this time of thorough thinking about the issue and perform well based on the knowledge that I learned.

# 5 Entry: 20500297

2008-04-05T21:33:00.000-07:00

What is a Go-Giver?

I mostly look for articles related to either manage or human resource development since I want to work in HR field sooner or later. Since becoming a human-intended manager with warm heart and cool head is my ultimate future-goal, I usually try to read more articles about successful manager's requirements. In that content, today I want to talk about go-givers. You may heard of go-getters, who go and get things done. It's great to go-getters because they are those who take actions! (which is one of critical elements of good managers.) However, Go-giver do things that go-getters don't do. Go-givers are not opposite of go-getters. The opposite of go-givers are go-takers who feel entitled to take, take WITHOUT EVER ADDING VALUE to the relatinoship or the process in any way. Then who are go-givers, really?

Go-givers are introduced in the new national bestseller, 'The Go-Giver: A Little Story About a Powerful Business Idea', written by Bob Burg and John David Mann. Being a go-giver means you add value to others in a ways that helps them significantly while at the same time increases your own sense of joy and improves your bottom line, both in your business and your personal life.

As a business student, why do we need to be like go-givers? Because go-givers are other-fucused instead of me-focused. Managers, sellers, marketers should be customer-focued in order to increase the quality of their business. If you are other-focused, you can make people feel good about you and make them recognize the value you bring to their lives. Remember that adding value to customers' lives is one of aspects of Marketing in Chapter 1? 'In a free enterprise-based society, where no one is forced to buy from you, the only way someone is going to pay for your product or service is if they find value in it. [BEYOND THE PRICE!] Those who give lots of value get the most back. In a relationship, businesspeople can often sense if you really care for them or if you're just faking it.' (quoted)

When I think of myself, I mostly focuse on myself. That's because I don't humble myself as Jesus Christ did as a son of God. Pride keeps people trapped in a prison called 'self', I thought. There are only three people in this prison: "Me. myself, and I." It's a lonely place. When you think of others first, that's the beginning of becoming a great manager of God. You may have heard our president Kim saying '배워서 남주자' and that's what go-givers do! Well, it's not easy to be a go-giver in this competitive society and people teach you to be a go-getter or go-taker to win among these competitions. However, do not forget how Jesus humbled himself and became the best person (and God) in this world. Give, is the basis of showing your love for others, and that's the very first step that you can have a deep relationship with your friends, parents, and future-employeers. :)

This entry is pretty much about my own opinion, so visit http://www.businessweek.com/managing/content/mar2008/ca20080311_967359.htm and read the originial article if you want to. You can get clear explanation about go-givers and their laws.

* Entry 5 by 20500297

Entry4_20400495

2008-04-04T08:46:00.000-07:00

How to act smart during the recession

As the world’s economy is at the verge of recession, it is getting harder for the grads to get a job. In this article, the difficulty is shown by a MBA new grad named Casey Quinn. There was time when the B-schoolers had the luxury of choosing from among a half-dozen internships or job offers. As the Class of 2008 prepares to graduate, an uncertain business climate is forcing students to make difficult choices that could have long-term economic consequences. A research on both MBAs and undergrads suggests that graduating into an economic downturn will substantially reduce lifetime earnings.
Quinn, 25-year-old MBA student, who applied for the Morgan Stanley for an internship got refused due to the bad economy. So Quinn went to an alternative plan. He shelved his dreams of working on Wall-street and took an internship at Mattel, which he hopes to get a permanent job after graduation.
This is not limited to the American economy. Korea also is having a hard time treating with the recession which is affecting the whole world. Due to the bad economy in Korea, getting a job for the grad is getting more and more difficult these days. What will be the best choice for the job seekers whose graduation is close? According to the article, Paul Oyer, an associate professor at Stanford, suggests to stay in the school until the economy picks up. This is because selecting a job during the recession can affect the one’s whole life. After the one gets a job during the bad economy, though the economy picks up, it is hard to change one’s job with a better condition. Consequently, staying in school till the economy picks up seems to be a lot of lost in the short run, but in the long run, graduating in a bull market will more than make up for it.
It might be worse for under-graduation school grads to get a job they want compared to the MBA students. Handong have been doing pretty well sending their students to major companies in Korea such as LG or Samsung. Because of the recession, however, recently Handong students are hesitating and feeling fear graduating from the school inspite of the good reputation the school has. Do they have to postpone their graduation until the condition gets better? Korean government is relieving the Koreans saying that the economy will pick up this year but nobody seems to accept the words as it is. I think the best choice for the Handong students is to higher their value until the economic situation gets better. Proceeding to graduate school or doing MBA will be a smart move during this recession.

Reference:http://www.businessweek.com/magazine/content/08_15/b4079059579345.htm?chan=top+news_top+news+index_top+story

20700443: Entry-4

2008-04-03T20:28:00.000-07:00

Premier Rugby referees dress in pink for cancer charity

Premiership rugby matches will be held in London during the weekend of 18-20 April. These matches were organized due to Breast Cancer Care that teamed up with Premier Rugby for charity partnership so that all 6 Guinness Premiership rugby matches are turning pink to raise funds and awareness for Breast Cancer. Even the venues will have exclusive ladies' lounges with complimentary drinks and beauty treatments, and also there is a chance to meet with some players afterwards.

There are discounts for all female fans, so that per ticket entry will cost £15, with £4.25 donated directly to Breast Cancer Care.

Actually, Breast Cancer Care has chosen one of the best and well known way to raise its fund. Due to pink color players and fans will be aware and keep in mind that part of their sum has gone to support those who already faced with that problem. In addition, pink color is one of favorite women's color, that can be another part to attract female fans. These matches also offer good complimentary service that please people. And probably for some people that kind of matches with charity purpose is a chance to show to others how they care and support those with breast cancer diagnose.

Resource:
http://www.brandrepublic.com/Discipline/Marketing/News/799372/Premier-Rugby-referees-dress-pink-cancer-charity/

Entry4_20700347

2008-04-03T11:24:00.000-07:00

Transformation of Korean Rice cakes

These days, less Korean people enjoy rice cakes than the past. Instead, people love to eat western foods. For example, many people enjoy doughnuts, cakes, coffee, and cheese. People usually eat such foods for a meal or a dessert, and this is a common thing in their life. Until recently, rice cake is a food that is sold for its scrape value in a traditional market. But, since few years ago, rice cakes have been transformed.

According to the article, there are many rice cake cafes in Korea, and the number of such cafes is increasing. Frankly speaking, old people enjoy rice cakes more than young people, but lately, there are many young people who like to eat rice cakes. Then, how can rice cakes become popular foods in Korea?

I think that rice cake cafes could succeed because many CEOs of rice cake cafes have been persevered in their efforts. Especially, I think that these CEOs have been considered marketing for rice cakes with prudence, and they might be good at developing a marketing plan. Because they solved several problems that traditional Korean rice cakes are difficult to be a popular food at the present age for some reasons.

Defining the Mission and/or Vision – Mission of most successful rice cake cafes is to announce rice cake’s variety, and make it more usual food. For this mission, rice cakes could be transformed.

Situation Analysis
– These days, there are a lot of people who look for healthy food. Compared to bread which is made of wheat flour, and butter, rice cake’s main ingredient is rice, so rice cake has lower calories than bread. Also, rice cake is a nutritious food because it includes various healthful materials such as nuts, beans, dates, and so on, so many women who want to lose their weight like it. So rice cake has strengths in this point, and CEOs of rice cake cafes used this merits. Plus, rice cake can be used for various foods. For instance, spaghetti which is made of rice cake is sold at certain rice cake restaurant.

- Most traditional rice cakes have Go-mul, flour used to cover or coat rice cakes, so they are not easy to eat cleanly. Also, traditional rice cake’s size is not small to eat at once. But, the CEOs improved these weaknesses. They made fusion-rice cake that is small and has not Go-mul, so many young people could enjoy it easily. In addition, original rice cake is easy to spoil in several days, so it is difficult to save, but a retortable rice cake is invented, so it is easy to save these days.

- Many old Korean people do not like cakes. So cakes which are made of rice cakes are so good to present to old people. In addition, a price of wheat is becoming higher, so rice cake can not care about it. Moreover, ‘Well-being’ trend, the health and beauty industry to boom is more popular all over the world, so it is opportunity to announce rice cake which has various nutriments despite low calories.

- Recently, the number of doughnut stores, coffee shops, ice-cream stores, and places which sell western foods and still, many people enjoy such foods. Compared with this threat, rice cake café is not so popular yet, so rice cake’s merits should be announced more.

A few years ago, I went to go to a rice cake café named “Jill-see-roo”. That cafes’ condition is so nice and of course, foods’ taste were very delicious, but the price was expensive, and many people did not know about rice cake café because of poor marketing. But, I think that it was market introduction period. Over the years, many rice cake cafes have came into being, and Korean traditional rice cakes have transformed. I think that now is the rapid growth period of rice cake cafes, and soon, competitive turbulence will come, so it is needed for the CEOs to meet customer’s expectation.

Tradition is not the old, but the source. So, we have to think about own Korean tradition, then that tradition could become popular thing whole over the world. If marketing for rice cake is passionate and persuasive, it would be more loved by Korean people than before. I hope more Korean people would recognize the positive points of rice cake and be proud of our good traditional food.

20700347

Resources : http://newsmaker.khan.co.kr/khnm.html?mode=view&code=115&artid=15505,
http://news.chosun.com/site/data/html_dir/2008/02/25/2008022500094.html

Entry 4_20500687

2008-04-01T06:24:00.000-07:00

For Leaders, There Is No Off Switch

You have to watch what you do and think about what you say at all times because of the effect your behavior has on your team.
By Marshall Goldsmith

Leadership… what pops up in your mind? We have heard many words related to leadership and it is very common and necessary idea that everyone should understand nowadays. Because this ‘leadership’ contains many requirements explaining how to be an effective leader, I, as a marketing student, need to understand the core concept of ‘leadership.’

This article is written by Marshall Goldsmith, an author of management-related literature, professor, consultant and executive coach. He emphasizes about leadership which he describes leaders’ capabilities. First, he mentions that leadership requires restraint. In his description, the higher up you go in an organization, the more people will be listening to your every word and interpreting your every action. I totally agree with his point since I have seen many leaders who do not take their position as seriously as they supposed to. Some leaders are not good with empowerment which is one of the most significant requirements being a good leader. Secondly Goldsmith asks leaders to avoid internet infamy. As media grows rapidly and it became an inevitable tool for us to use, leaders should be more careful with their privacy. The reason why leaders should have more responsibilities with this issue is that they have the potential impact on the people that they are leading. It is not just going to be an issue on media losing your trust to the public but more than that. Lastly, Goldsmith leaves a touching phrase “you own it to your team.” This phrase motivates me in various ways dealing with great responsibility. He states that if you want to become a great leader, you should recognize that there is no “off” switch when you are around the people you are leading. In other words, great leaders must keep moving on to better ideas and developing themselves. He also added that strong leaders actively listen and communicate with caring, interest, and enthusiasm no matter how tired they may be. I think this directly comes from their professionalism which great leaders must have in nature.

What I personally think the requirements that great leaders should fulfill is thorough understanding of their position first. As I learned from the marketing class, the very first step to create new item is the defining the problem. Applied to this leadership, above many important qualifications that good leaders might possess, defining their position is the most crucial task.

#4 Entry / 20500297

2008-04-01T02:56:00.000-07:00

＊Show your employees you care ＊

"Your workers' wealth of knowledge may be worth more to your company than a paycheck is to them. Let them know you appreciate them."

Before I start, I want to take you guys to Google in Silicon Valley!

These are the pictures I took while I was in Silicon Valley area last winter. The reason I want to share these pictures with you is because today I want to talk about 'work environment.'
Relationship between work environment and Google? You'll see. :D

In today's world, what is the key to wealth and success of a company? It can be many things, but as the author of the article I read says, it is often employees' knowledge. Without employees' knowledge, a company can never grow. (Sometimes they know better than their bosses, don't they?) Successful companies catch this idea and acknowledge that their relationship with intelligent employees is critical. And so? What they do is creat the best work environment for employees in order to increase their performance. Creating and developing a fantastic work environment makes employees feel that they are special, cared, and even respected! When I came up with this thought, Google popped up in my head. Google is one of the most fanstastic and excellent places to work. Okay, no more explanation. Let's see some more pictures.

When you enter, this is the first thing you'll see. My friends I were like 'Whoa, can such a company look like this?' Basically Google created the environment that helps their employees feel fresh and comfortable. Even I felt like I am at my own company! The drinks? ALL FREE! (Yes, for visitors, too.)

Google provides their employees with their excellent food for free. We couldn't get a chance to eat at Google's cafeteria, so we just walked around. :( They offer all diffrent kinds of food. Japanese, Chinese, Italian, Mexican, ... and so on. After finishing your meal, you can just grab fresh fruits and drink and go back to your office.

While you walk around, you can see this type of personal office. (Most offices are visible.) How can you not be creative in such an environement? Google is the place you can do what you have imagined. When you get tired, you can just go out and get some free coffee or tea at the bar and play pool. This is not enough. Health center was grrrreeeat! I was impressed by the whole concept of the interior design. It makes you feel like working and use of all different bright colors also makes you energetic.

What I want to point out is that it is clear that Google's employees and engineers are at least as respected as their managers. The work environment obviously tells you that. That's Google's power, I guess. So what comes into your mind with this? Any Korean companies in Korea are like this? Or are they just squeezed in a square box? Creativity and innovation come from your workplace, I believe.

References: http://www.businessweek.com/managing/content/mar2008/ca20080325_066793.htm?chan=search by Marchall Goldsmith

* 4th Entry / 20500297

20700457_DongSoo Joseph Rhee Entry 3

2008-03-28T08:04:00.000-07:00

What Makes them so special ?

There are many frontier companies for different kinds of industries.
There is IKEA for DIY furnitures, Amozon for online book store, Canon for Camera, and
there is Apple.
I want to take a look at Apple.
What makes them so special and unique ?
Mac (brand name for Apple computer), does not occupy much of the market.
However, when people think of Mac, they consider it as something they really
want and admire.
What makes people to think that way.
Their first strength is their unique design.
Apple always come up with unique design, something that people have never seen.
Mac mini looks like a external HDD drive, Imac took an integrated type computer,
which has main unit and the LCD monitor in a same device, Macbook has a totally
different design with other laptops. Macbook air which is released recently, is thinner
than any other laptops I've ever seen.

Mac Book Air

People get attracted by those incredible design.
Second strength is "INNOVATION and CREATIVITY".
Apple come up with something creative all the time.
IPhone (Smart Phone release from Apple) took a third place in the world smartphone market,
and second place in the U.S market. Iphone come up with those fun and innovative functions
such as large touchscreen, applications and so on.
When everybody empathized large screen and large data storage, Apple released Ipod shuffle
which has no screen, simple interface, and relatively small storage, with extremley small
size and cheap price.

IPOD shuffle, size of thumb.

That is why people keep looking for Apple's products, even with a relatively high price.
When Apple tries something, people look forward to their new products, they get excited to see what Apple will try this time. Innovation is what make them special.

Entry3_20700347

2008-03-28T05:44:00.000-07:00

Mom’s Kitchen in Handong

Until just recently, there had been a restaurant named ‘Boon-sik-dang’ in Handong University, but there is a ‘Mom’s kitchen’ for the same place. Students have various opinions about ‘Mom’s kitchen’. Some opinions are positive and other opinions are negative.
At present, Mom’s kitchen has several foods for a meal and offers buffet lunch and dinner. The price of a meal is 3,500won. Also, there is a café which sells many kinds of coffee, several tea, some fruits, cookies, and muffins in a restaurant. Mom’s kitchen is open from 7:30 a.m. to 11:00 p.m. Monday through Friday.
I think that Mom’s kitchen has good points and bad points, so it requires a detailed analysis using SWOT.
Strength – I visited Mom’s kitchen several times, and I felt that ingredients of foods are very fresh especially the vegetables each time. This thought is shared by many people in Handong. Also Foods tastes so good, so a lot of people satisfied with the foods. In addition, a menu is different everyday, so anyone who doesn’t like a menu of Students’ restaurant and Hyo-am restaurant can enjoy the various foods. Plus, it is possible for customers to refill foods, so anyone who likes to eat foods more can eat more.
Weakness – In former days, ‘Boon-sik-dang’ was open all days, so many people could go to the restaurant on weekends if they want. However, Mom’s kitchen is not open on weekends, so if you intend to eat a meal at Students’ restaurant on weekends, you should wait for an entrance for a long time. Also, many people who don’t like Mom’s kitchen are missing ‘Boon-sik-dang’, because it was possible to eat some foods at cheap price at that place. For example, ‘Ramen’ was 1,300won, and ‘Ddok-man-doo-kook’ was 2,000won, and other foods’ price was very cheap. Furthermore, dishes and bowls are so heavy, because they are not made of plastic, so when people dish up, they feel uncomfortable.
Opportunity – There are so many foreigners in Handong, but Korean foods are mostly offered to customers at Students’ restaurant and Hyo-am restaurant’s foods are expensive than other restaurants in Handong. Therefore if Mom’s kitchen takes advantage of their own system which admits change of a menu, they could receive more customers than now. Also, Mom’s kitchen has a café in it, so it can sell many kinds of drinks to customers who think that going to the ‘?’ café is very annoying to them.
Threats – Recently, the staff of Mom’s kitchen was started to distribute some foods, because many people leaved foods which they dished up. But, this point makes worse the advantage of this restaurant, and if this situation continues, Mom’s kitchen would become like Students’ restaurant that offers certain amounts of foods.
In this way, Mom’s kitchen has many nice points and problems to solve, so it should make an effort to satisfy many people in Handong.
A lot of people in Handong including me are missing foods that made by their mom, so I hope that Mom’s kitchen would be loved by people of Handong for a long time.

20700347

Resources : http://hisnet.handong.edu/noticeboard/viewarticle.asp?num=14519&ID=1&page=1&view=1&splitPage=1&search=mom&option=title

Entry3_20400495

2008-03-28T05:34:00.001-07:00

Finding the Perfect Location

When opening a store what do you think the most important factor to success? This article tells you that location is one of the critical factors in opening or expanding your vendor.
When Tony Calamunci, the president of Johnny’s Lunch Franchise, was 12, he dreamed to make his family’s Jamestown restaurant into a nationwide franchise. However, he didn’t hurry because he wanted it to do right. It took more than a quarter century to realize his dream. Transforming a small-town hot dog joint into a national franchise takes an extraordinary amount of planning and strategy. To operate all these works, Calalmunci hired experts to help his dream come true.

His first step in the expansion plan was contracting a professional management and a location research consultancy that conducted in-depth interviews with more than 600 patrons of the original Johnny’s Lunch and used the data to create a target customer profile. John Orton, the vise-president in charge for real estate for Johnny’s lunch, says “We need density within the first-mile radius of our locations because our primary day part is the lunch period.” Devon Wolfe, a managing director at Mapinfo, suggests for entrepreneurs to think about the following questions. Who is your customer? Who else is out there that you’re competing with? What kind of budget do you have for marketing? What does your business plan say? Before expanding your business you should answer these questions and do the math.

One of the most important parts Tony had considered was picking appropriate neighborhood demographics. He needed to target the right costumers. Even when you’ve chosen the right demographic space, you have to examine your competion and your timing. ” Selecting suburbs won’t be a good choice because there aren’t many people during the lunch period.
He also considered his neighboring vendors. Orton says “If you’re in a center with Leann’s Nails, Joe’s Tax Service, and Omar’s Feed Supply, it creates a different perception in customers’ mind than if you’re next to Starbucks, Panera and Chipotle.” In other words, big brands can make good neighbors.

All of these jobs are done by experts paid a lot of money, but don’t be frustrated though you can’t afford to hire these experts. You can use the internet simply searching the terms like ‘business demographics’ There are a number of venders that have indexes that will match up with your concept. So don’t dive for the dartboard when selecting sites because changing your stores location several times could kill your business.

Reverence : http://www.businessweek.com/smallbiz/content/mar2008/sb20080324_098559.htm?chan=smallbiz_smallbiz+index+page_top+small+business+stories

Entry 3_20500687

2008-03-27T23:37:00.000-07:00

In Japan, Soft Drinks to Cure Any Ailment

“Wellbeing,” this word has emerged in Korea just few years ago. People tend to buy goods especially food based on high quality containing no harmful ingredients to human. Even though the prices of the products are higher than others, people are willing to pay more money to get cleaner, safer, and more nutritive products.

This article talks about impacts of Japanese soft drinks to Japanese consumers. Since this issue has floated on the surface catching everyone’s interests, I also got excited to read and analyze the article. In Japan, among an aging population that has lost interest in sweet, fizzy drinks, healthy tonics have become an elixir for Japanese beverage makers. They created new products such as teas, a green tea, vitamin drinks that offer far more than simple refreshment, those offer health benefits. One analyst said that Japanese are addicted to healthy drinks. Thus it makes sense that drink makers can also charge a little more for products that contain less fat, fewer calories, or offer weight-loss advantages.

I personally had health problems recently caused by high amount of carbonated beverage and sweet drinks. One of my teeth got so weak that is slightly broken. Besides, my inner organs also got affected by those drinks. I decided not to drink these kinds of beverage but instead drink more water and teas. I think Japanese beverage industries face a meaningful problem which motivates them to create new products. It helps them approach to consumers more considerably dealing with their health. In addition, understanding the tastes of consumers and national trend, aging population, is very important to create new items satisfying demanding consumers quickly. In a sense of this idea, Japan in general does a good job compare to many other companies in other countries.

Entry-3_20700443

2008-03-27T22:58:00.000-07:00

SAN-FRANCISCO - Google has lost its second high-profile executive to Facebook in a month, with the departure of its head of social media Ethan Beard.

Right after Sheryl Sandberg who left Google in early March and joined Facebook, where he became chief operating officer, Mr. Beard also leaving Google and joins the same company as a director of business development.
While being in Google Beard headed up business development at MTV and VH1, and also worked at high tech investments firms Silicon Alley Venture Partners and Fountainhead Capital.
As the popularity of Facebook grows up, and it becomes the fastest growing social media website, to be hired to that corporation people need to have high professional skills and who already was involved in that kind of works. That is why before hiring people form Google, Beard and Sandberg, Facebook looked through a number of other high profile hires, including Gideon Yu, who is ex chief financial officer at Google's YouTube, and now chief financial officer at Facebook.

Facebook is a social network website which was first founded on February 4, 2004, by 23 year old Mark Zuckerberg. It is a privately hold company. It generates revenue from advertising, such as banner ads. It is valued at $15bn and nowadays more than 500staff are working for them.
The free-access website allows users to connect to several networks and also easily to connect with people in the same network. Through Facebook people can find their co-workers, classmates, groupmates, there's also a chance to find a person with whom they lost connection long long ago. The website has more than 64 million active users worldwide.
In my opinion, Facebook tries to meet its users needs successfully, because almost every week there are new applications and changes, which makes Facebook more fun, and easy to use. I bet that many people whenever they log in their internet they firstly open Facebook to check news that are happening on their profile. I use Facebook as well and very pleased of using it, because it allows me to keep in touch with many people who are far from me.

brandrepublic.com/news
en.wikipedia.org

#3 Entry / 20500297

2008-03-27T05:58:00.000-07:00

The Seven Secrets of Inspiring Leaders*

As a business student, I have been mostly interested in leadership and business communication. There are lots of business strategies we can use, but I always believe that leadership and communication are the basics that lead your business to succeed.

Have you heard of book called 'Fire them up'? This book is written by Carmine Gallo, revealing techniques common to the leaders who best know how to INSPIRE their workers, investors, and customers. Inspiring others is one of important roles in marketing, I guess, because it gives you a motive and special meaning. Carmine Gallo has been interviewing people in high position, entrepreneurs, and educators who have a capacity of selling their vision, values, and even themselves and found 7 communications secrets we can adopt in our own communications with others. I want to briefly go over these 7 secrets with you guys, and attach the video file. (I liked it when he clearly differentiates 'vision' from 'goal.')

FIRST, demonstrate enthusiasm—"constantly." Leaders should have passion. Once you find your passion, you need to make it apparent to everyone you work with. Demonstrating enthusiasm is so infectious that it can convince others. It's the beginning of success.

SECOND, articulate a compelling course of action. It means that leaders should be specific, consistent, and memorable vision. Powerful vision is short (less than 10 words or 10), but explains how the world will be changed if your products or service succeeds. Gallo explains more about this in video with an example, emphasizing that the power of vision set everything in action.

THIRD, sell the benefit. "Always remember, it's not about you, it's about them." said Gallo. You mustn't make your listeners guess. Be ready to answer the questions they have and give them what they need in your speech, presentation, or any situation where persuasion takes place.

FOURTH, tell more stories. This one is pretty interesting. Remember Disney land? Why are the characters of Disney are familiar to every one of us? Because they have a story! It goes same with business communication. Telling interesting and memorable stories is a good way to keep your relationship with others and make them remember you in a special way.

FIFTH, invite participation. In order to motivate young employees, this can be a good idea to use. Today's managers let their employees join the process of building the company or service. 'Incorporation' is critical in today's business work.

SIXTH, reinforce an optimistic outlook. You know why, right? Positive leaders brings positive results. (Not always, though.) Robert Noyce, the co-founder of Intel INTC, said, "Optimism is an essential ingredient of innovation. How else can the individual favor change over security?" (quoted) Speaking positive words and having positive attitude make others optimistic.

LASTLY, encourage potential. Inspiring leaders 'invest' in their employees emotionally. They see the hidden potential and take it out by praising them. Praise is easy and fast way of maintaining your connection with others. Employees doubt will be reduced and their spirits will soar when you give them genuine praise.

+++

'Inspiriation' is an inspiring word to me. Business is about people and relationship. Inspiring others makes you a person that others want to be with. We need to treat our best employees that way we expect those employees to treat our customers, which means that in order to make your business successful, you should support, reward, and promote people working with you. Personally, relationship with others is one of difficult problems I haven't solved yet. It's been hard and tough and eventually I realized that I used to be a negative person. The words and languages I speak and say were negative. I rarely praise others, and I have preferred working alone to working with other members. I've already found myself empty inside, but have been afraid of change. As a person who feels free to be a 'follower', being a leader is not a easy thing for me. This article tells me that now is the time to face and change myself. As I have been inspired by people around me, I want to inspire others. I know 'how' now!

Here's the video I want to attach. Carmine Gallo explains about the leaders inspiring others and tells you what kind of vision leaders should have. Enjoy. :)

Reference: http://www.businessweek.com/smallbiz/content/oct2007/sb20071010_093227.htm

* #3 Entry by 20500297

20700443 Entry-2

2008-03-21T08:06:00.000-07:00

Sorry, I forgot about putting my ID ^^ (Puma Ball)

20700457 DongSoo Joseph Rhee, Journal Entry No.2

2008-03-21T07:49:00.001-07:00

http://www.businessweek.com/innovate/content/jan2008/id2008014_152649.htm?chan=innovation_branding_brand+strategy

This article is about copying machine company, name Xerox. I don't think anybody didn't hear about the company "Xerox". Everybody knows that Xerox makes copy machines.
What comes to your mind, when you think of the word "Xerox"? In my case, COPY, that is only thing that pop up into my head. Xerox's image reminds people of something that is hard and
business-related copymachine. This article is containing contents about Xerox; trying to makeover their brand image.

To get a brand makeover, what they first did was to change their logo. Logo is one of the important elements that form an image of coorperation. The old logo was wordmark "XEROX" written in capital word. Old logo was made impression of hard and traditional company. It was benefit for Xerox for a long period of time, but itz becoming baricate between them and customers. So they made a new logo with globe art clip on it. Xerox are hoping new logo makes their image more approchable. Looking at Xerox's new logo, it reminds me of Xbox from Microsoft.Maybe it might bring down the image of nobility and luxuriness, it will help to loose the hard image they have now.

This is a old logo of xerox, designed in the 1960s by Chermayeff & Geismar, was deemed inappropriate for the Internet age.

The new identity, created by Interbrand, comprises a wordmark and sphere logo.

Xerox wanted to include these atributes to their image; innovation, forward thinking, flexibility, and enterprise. Xerox did a lot of reserches. During 18 months of research, the result showed that people already made strong connections between the brand and words such as "dependable, taditional, and established." Its the company's challange to reinforce those images, while trying to improve other things too.

Reading this article, I once was reminded "how important it is to makea right image that I or the company want." I know a lot of companies which changed their logo, or concept of their logo, image, title, and even signboards. The biggest companies in Korea, Samsung and LG changed their logo, and LG even changed their company name once. It is incredibly important to have an image that fits that era, and the needs of the companies. I believe it is becoming even more important, because the world is spining fast and everything is changing so fastly, and the customer's needs are changing along with those things. Creating a brand image that everybody want isthe huge point in marketing and business.

Puma's Crazy Chemistry Ball

2008-03-21T07:36:00.000-07:00

Recently Puma released it's d3o ball, and firstly it was showed up to the public during Olympics in 2006. It introduced itself as a safety lining for the Spyder skiing suits and later the same year it became PopSci's Best of What's New Award. It's known as the first world's "intelligent" ball.
What makes this ball so special? Everything is what inside of that ball, it was made by inserting a layer of the material between a soccer ball's outer casing and bladder, so the ball remains soft during dribbling but becomes more elastic on impact, the material itself is so sensitive, than when aff According to the test at Sheffield Hallam University it showed that this ball is quicker than previous versions.

This version of Puma ball will be used by Puma national teams including World Champions Italy and Euro 2008.

What about the trend Puma itself? The trend itself comes from early early ages, in spite of all the competitors which it has, Puma still remains as one of the influential trends in a global market. By the way, Puma in Korea is very famous and considers as a firm trend. And Puma doesn't stop with its innovations, it goes further, one of the reason is that because it has their constant customers who want and search for something special from that trend.

The ones who could have chance to observe that ball say that Puma ball looks like similar to other top balls. However, the price stays the same which is around $100. How it will be promoted and have real customers we could observe only after it goes to the market...

20400495 Entry 2

2008-03-21T06:18:00.000-07:00

Quality over Green: Nike's New Air Jordan

This article is about the Nike’s new released basket ball shoes, Jordan 23, which is considered as a green product. Explained by the article, green product is a product which tries to use eco-friendly or recycled material and eliminate adhesives which can harm our environment. Nike has produced several green products before Jordan 23, but it didn’t appeal a lot to costumers. The customers seemed to be careless whether their shoes are eco-friendly or not. Their priority seemed to be the performance of the shoes instead. Instead of making a different product line for green products (which eventually failed), Nike applied this method to existing lines such as Jordan series which is recognize as a high performance shoes.

Before I read this article I saw a shocking documentary program broadcast in BBC. It was about the polar bear in the North Pole suffering from global warming. Because of the Green house effect, the polar bears are having a hard time hunting seals of other preys. Usually during the winter the sea waters are frozen so that the polar bears are able to hunt there games on the glaciers. But recently, because of the green house effect, the sea water does not freeze. This makes the Polar bears to swim to search frozen ice bergs where seals come to rest. Because frozen sea water areas are getting so scarce, they waste their energy while mobilizing, which makes them get exhausted before hunting. They die in front of their preys. I didn’t realize the heaviness of the problem before watching this program.

As the Global warming is growing faster, the green product seems to be a clever solution. But what if the green products don’t appeal to consumers? What if the extra effort to produce green products is ignored? To avoid this tragedy, we need to be smart like Nike. They have experienced failure with their early green products which didn’t attract the consumers. But now, applying this to the best sellers such as Air Jordan series, Nike is not only helping the earth to cool down but also gaining better brand image and better profit. Before we urge people to be aware of the global warming, we should think about a easy way for people to get involved to fight against the global warming.

Resourses : http://www.businessweek.com/innovate/content/jan2008/id20080125_828346.htm

20500687_Entry 2

2008-03-20T22:01:00.000-07:00

Louis Vuitton’s Life of Luxury

This article deals with LVMH’s culture and how to market the global growth of a prestige brand. Before I make any comment about this article, I researched what LVMH is. LVMH is a French holding company and one of the world’s largest luxury goods conglomerates according to Wikipedia, the free encyclopedia. I always wonder how these luxury brands survive with that extremely high price because I think there are not many demands considering consumers’ interests and buying abilities. However Louis Vuitton achieved total sales for 2006 increase nearly 10% from the previous year, to $20 billion. Isn’t it amazing?

Louis Vuitton brand in China, India, and Japan?

The Louis Vuitton brand opened in China in 1992. In the beginning, there were doubts whether this brand survives in China or not since Chinese first didn’t understand luxury. However, Yves Carcell, Chairman and chief executive officer of Louis Vuitton had strong confidence to penetrate the Chinese market. They kept trying to approach to developing the market and never compromising with any operational obstacles, and manage every aspect of the business. Eventually, Louis Vuitton became the most successful luxury brand in China. Besides China, Louis Vuitton is looking forward to settle their brand in India since Indian market has high potential to be developed and their plan of volume of business is proportionally larger than when they did in China. In Japan, on the other hand, the luxury customers are very demanding and they like to see the details. Japanese customers inspire Louis Vuitton to progress to continually improve.

Marketing Strategy

Louis Vuitton has strong belief that customers’ in-store experience is almost as important as the quality of product itself. This is a new trend in luxury retail. The brand’s prestige is maintained mostly by famous fashion designer such as Marc Jacobs and the contemporary artist Takashi Murakami. When Louis Vuitton releases the newest design, they limit the volume of products. This strategy makes the brand unique and more luxurious. It implies customers that only few luxurious people can buy the product. However, Louis Vuitton plans on maintaining its prestige by making traditional suitcases in the same way as in the 19th century. That way they can pursue creativity and respect for quality at the same time and keep their name value and brand’s prestige high.

Louis Vuitton’s strategy is well known. They have shown many successes as if the representative among many luxury brands. Louis Vuitton, not only their collaborated design by famous fashion designer, but also their customer value when they refer customers’ feedbacks and opinions proactively to fulfill their satisfaction, I think Louis Vuitton surely has strong power to keep their prestige of brand firm.

article #2_20700347 Kang-Min Song

2008-03-20T21:37:00.000-07:00

Pucca, the Hope of Korean Character Market

Mickey mouse, Pooh, Hello kitty… There are so many lovely characters in the world around us, but a peculiar character has been loved by a lot of consumers since a few years ago. That character’s name is “Pucca”. Frankly speaking, Pucca who wears conspicuous red clothes and is a daughter of Chinese food restaurant’s owner has not been loved so much in Korea, but it is getting into public favor in abroad.

According to the article, various products about Pucca are being sold at many stores and Pucca’s popularity is higher than ‘Hello kitty’ in Paris. Someone might think that the price of the goods featuring Pucca might be cheaper than other ones, but it is not true. The secret of Pucca’s popularity is that it just has big attractiveness itself.

In fact, I think that Pucca’s success is very uncommon and unconventional case in Korea, because it became popular in itself earlier than an animation, and an on-line game. In this point, it has a point of sameness with ‘Hello kitty’, because both are loved by many people, although stories about both characters are nearly unknown to consumers.

As a matter of course, Pucca’s success is so happy news in Korea for the present, but if Pucca is content with its present stand, its big hit would be difficult in the future. So it needs to enhance the value of itself through various trials. Disney’s characters have been enjoyed a high lever of popularity steadily all over the world through nice transformations. Pucca needs to let Disney’s example be a lesson to it, then it could show fresh features to a crowd of people. For instance, animations and games would be a very effective way to advertise Pucca.

Furthermore, if Pucca’s distinction that is a girl and has an oriental peculiarity is used very well, it gives an impression of freshness to consumers who got accustomed to beautiful characters.

In my opinion, Pucca gave a hope to Korean character market, because there is no case that Korean character hits public taste. Up to now, some characters such as Dooly, and Jolla-man had good popularity in a domestic market, but those didn’t succeed. So Pucca could be a nice model in Korea, if marketing for it is passionate. For this, Pucca has to improve several problems.

First of all, many products about Pucca are little expensive than other characters at this time. If goods’ price is put down, it would be more pervasive across the Supply chain than before.

Next, the number of countries that sell the products about Pucca is not so numerous, so more countries are needed to export Pucca. If number of countries that sell the goods about Pucca is increase more and more, Vooz, the company which invent Pucca, could expands firm’s Global presence.

Last but not least, Pucca need to collect plenty of information about places to sell the products, and consumers’ taste. Each county has their own culture, so information about countries and consumers’ taste is very useful for marketing.

As stated above, Pucca has not only many good points but also problems awaiting solutions. Therefore, Pucca should endeavor to improve its value. I hope that Pucca becomes a famous character like Mickey mouse all over the world sooner or later.

20700347 Kang-Min Song

Resources : http://www.hani.co.kr/arti/international/europe/86006.html
http://newslink.media.daum.net/news/20080222162411605

#2 Entry / 20500297

2008-03-18T04:14:00.000-07:00

"Five words to NEVER use in AD"

Hi, Everyone. :) The second article I want to share with you guys is about 'advertising'. Advertising is not ALL about marketing, but we surely know that it takes an important role in marketing.

Think of advertising phrases for a moment. What kind of words comes to your mind? 'Free', 'easy', 'guarantee', 'no limitation', 'simple', 'save', etc. There would be tons of words used in advertisement. Why do people choose these words? They probably believe that they have sort of impacts on customers and attract customers' interest. Don't you and I like the products that are 'simple' and 'easy'?

In that content, the title of this article, 'Five words to never use in Ad', attracts my interest. I believe that this is quite helpful and useful information for us as we will work on selling project as a group. Let's go through with the words we'd better not to use when we advertise our product and remember them. (I paraphrase the article, so if you want, you can read the original article on; http://www.businessweek.com/smallbiz/content/jun2006/sb20060607_197154.htm?chan=search by Steve McKee)

1. QUALITY
The article says that the word 'quality' is the most overused word in advertising. What the author points out is that 'every product worth buying is a quality product.' So as a marketer, you actually do not have to emphasize the quality of the product too much. Used too often, now the word 'quality' can't appeal to the customer.

2. VALUE
The reason why the word 'value' has been ruined by overuse is because value depends on the customer. Value, same with quality', is in the eye of the beholder, and every product that buyers pay money for has its own value. Therefore, - interestingly - "we provide the best value" is completely meaningless.

3. SERVICE
'We promise you the best service' is actually funny, the author says, because 'the companies that make the claim of good service the mos tend to be those that deliever it the least.' I don't get his point here, but I guess it sounds like providing good service itself doesn't mean that it offers something speical and different from other companies. It's just the way it should be.

4. CARING
This one is interesting. Those companies saying "we care more" are not actually selling tangible products. Plus, how can they prove that they care more than their competitors? This word is not only ruined by overuse, but also they're based on 'variables' simply because people can't be the same. Some people can be satisfied with a certain product, while others never do. That's the main reason why the words, 'quality', 'value', 'service', and 'caring', can hardly be the standard of distinguishing products.

5. INTEGRITY
Why the word 'integrity' should not be used in ad.? Every company should have integtiry! They do not neccessarily advertise that they have integrity. If they do, it means either that they are just trying to cover up their lack of integrity, or that they are implying they are better than their competitors, which is impolite.

* I agree with some parts of the article, but not all. However, in a way I got a lesson from it. Advertising something too obvious or too reasonably is of little appeal to customers. What you need to advertise is something that can differentiate your product from other companies. You can't satisfy every single customer, but at least you need to think of the UNIQUE way of giving impression to the customers by advertising.

Remember that just because you sell it, it doesn't mean that people will buy it, as the author says.

_ 20500297 * Entry 2

20700457 DongSoo Rhee Joseph Rhee

2008-03-14T07:19:00.000-07:00

What makes Samsung the top brand

http://www.businessweek.com/globalbiz/content/mar2008/gb20080313_758981.htm?chan=technology_technology+index+page_top+stories

This article is about Samsung
being top company in TVs.
It describes how Samsung got
up to the top of the indurtry.
Especially they explaned it in
a perspective of company worker,
and manager.

As I follow the article, one small
piece of thought came up on my mind.
"What kind of marketing strategy did
they use to achieve such a big success"
I thought about the materials that we
talked about at the class.
The word "perceived value" poped up in my head.

Marketing is important in organization, becuase of this perceived value.

Services of every organizations and companies have value.
This value is classified into two; first one is real value, and the other one is perceived value.
Real value is decided by the actual products. However perceived value is given
by how people think of one's company.
Marketing helps to increase this perceived value which is unlimitted.

Then, how Samsung increased this value ?
Samsung is using many different strategy over the whole world.
They are using different methods to make people to believe
Samsung is familliar with their country and people.

For example, in Russia, Samsung made "Samsung Tolstoi literary award".
Through this event, Samsung made an company image that "Samsung is
familliar with Russia, and respect Russian"

In my opinion, one of the most important marketing strategy is "귀족 Marketing".
This is korean word that describes the marketing method, which is targetting
rich people.

Samsung has been making an image of "high quality product".
They put an extra effort on a design matter, and kept showing the TV commercials
that is something noble and loyal.

By all these strategies, Samsung becames No. 1 in the global TV market.
Market researcher "Display Search" showes that Samsung shares 13.6% of overall

global TV Market.