Entry6_20400495

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

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

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

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

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

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

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/