Wednesday, May 6, 2009
the last blog.
The next main skill that I have learned from this course from working on this group project is presentation skills. Throughout this project and class, I have presented a couple times- some informally, and a more formal one. I learned that it is important to be able to convey your thoughts and findings to the group so that they will better understand the project and the goals we were trying to achieve. Along with speaking in front of a group of people, I also learned how to more thoroughly make PowerPoint presentations. For example, during our updates- Professor Walls always challenged us to write very thorough thoughts in the notes section to explain what we were trying to convey through our slides. Though these updates, I have had a lot more practice with making PowerPoint presentations now- which is a skill that I will widely use in the workplace when I graduate this May.
Since I am a Supply Chain Management/Finance major, it was interesting working on a group with two Marketing major students. I’ve always heard in the workplace how ideas can clash between finance and marketing or how it can be difficult to see eye to eye with the other “group” of people. I can kind of see what they are talking about. I think that it is definitely a learning experience and I enjoyed working on a team with them, but there were times where I could see my mind and thought process for something venturing off a different way than they did. But in the end, I really do think that we all were able to add something different to the project that made it that much better. At first when we were picking our segment- affluent empty nesters, I felt very optimistic and thought that this would be a good segment to find out more about. But as we found out our room selection- the bathroom, I was a little nervous about how we would find a connection between these two pieces of information, and how successful our project results would be. As time went on, Professor Walls did a great job of coaching us and stretching us to dig deep and find out what things really mean. He also suggested different things for us to find out and really helped out in this aspect. Towards the end of the project, things slowly started to come together. I think that our second survey method- collages- really helped out in terms of providing usable information for our project. It seemed to provide more insight into the subjects and their thoughts, views, and needs when it comes to this room. Creating a prototype for the project was interesting- I’ve never had to do that before. From this I learned that it is important to come up with a great product idea, but it is also important to make sure it is feasible and can actually be constructed in a way. All in all, I have taken some learnings away from this class and just wanted to thank Professor Walls for helping us through the process!
Wednesday, April 22, 2009
comments on another blog

Coincidently enough, I am just beginning a group project on Starbucks in one of my management classes. We are taking a look into companies that may be having some sort of problems and giving recommendatios on what they should do to turn it around. I just interviewed someone at the Starbucks on campus (Texas Union) yesterday, and it seems like Starbucks' strong points are the culture and atmosphere that they create within the store. So piggybacking off what Julie said about how "People don't only go there for the great tasting coffee, but they also come there for the experience." is completely true. Customers feel good and like they're drinking high quality, brand named coffee when they sit there and sip on their grande iced caramel macchiato with nonfat milk and a shot of something in it (which did you know Starbucks' macchiato is different from another coffee shop's macchiato? they just call it this, but in other coffee shops you'll find it under "latte").
So if that's their strength- what are their weaknesses? From my interview and research online, I've found that they have been opening up too many stores- you can almost find one on every major street corner now, similar to a gas station. The "specialty" of Starbucks that they once tried so hard to create is being shot down with the abundance of stores around the city. In Julie's blog she talks about how they are moving some of their business to China- and in my opinion, this is really going to be a hard task for Starbucks. Especially if their strength is in the experience they create at the store, I really don't think it will transfer as well into the Chinese culture. Also, stores like Mcdonalds and gas stations have cheap alternatives for a customer's coffee fix. You can run through the drive through line really quickly and be gone onto your next location at one of these locations. Starbucks has many competitors meaning many different acts that needs to be taken strategically on their part, and if they are hoping to be successful in the coming years- I think it's important for them to focus on what they're doing well on right now or change their strategy abroad. I realize that it is important to be global in this day and age, but it's also important to not spread yourself thin and start to fall in different areas opposed to focusing on what you can do well- and constantly challenging this area.
Monday, April 13, 2009
extended outline- consumer's brand loyalty in this recession
I. Introduction
a. Thesis- In times of economic uncertainly, consumers become even more interested in obtaining value-for-money in their everyday shopping and private labels know this, and so customers' brand loyalty are continually being tested each time they enter the grocery store.
i. Private labels vs. Brand names
ii. Rewards Programs
iii. My Insight
II. Body
a. Consumer's attitudes, beliefs and motivations behind private label versus famous brand purchases.
i. Consumer trends have shown an increasing interest in private labels.
a. Private label sales grew 10.2% in 2008, while brand name sales increased only 2.6%. For example, one consumer says “the only difference is the label on the package”.
b. Any worries that consumers have about the economy only serve to strengthen private label spend because store brands are seen as an important way of achieving value for money.
c. Marketing fatigue potentially enhances the appeal and relevance of private label brands, especially as advertising is a key defense tactic for famous brands. Across the 15 countries surveyed by Datamonitor in August 2008, 47% of respondents 'strongly agreed' with the statement, there is too much advertising today.
ii. Another factor that is interesting is that sometimes when you have a whole bunch of different brands out there and not a lot of differentiation among some of them or not a lot of knowledge about them, people get frustrated and confused and end up just picking the private label
a. We studied this in the pod cast about choices. Sometimes, choices are not the best thing for companies.
iii. Furthermore, seeking to combat stiffer competition from cheaper store brands- big-name food manufacturers, including Kraft Foods and General Mills are joining forces with retailers to promote their brands alongside private-label goods.
a. In the past, big food companies didn’t worry too much about cheaper store brands encroaching on their turf, because consumers were more loyal to name brands and generally believed better quality justified their higher prices. But now, retailers have improved their store brands and have mimicked the innovations that brand names have introduced (such as cheese with extra calcium).
b. Rewards Programs- Brands better keep members by instilling reward programs.
i. A new study from Colloquy finds that customers who participate in loyalty-building efforts are 70% more likely to actively recommend a product, service, or brand than the general population.
a. Examples: MyCokeRewards and the Best Buy Reward Zone
c. My Insight
i. “Branding is so much about psychology it’s almost frightening”.
a. For example, the Miss Clairol feeling was the girl next door but just a little prettier and L’Oreal made women feel sophisticated and worth it (hence the tag line “because you’re worth it”).
b. If brand names want to keep their profits and popularity high, they need to figure out what consumers want to feel when they buy a product- the psychology that is attached to their product, and then how to position it.
III. Conclusion
a. In times of economic uncertainly, consumers become even more interested in obtaining value-for-money in their everyday shopping and private labels know this, and so customers' brand loyalty are continually being tested each time they enter the grocery store.
b. Topics covered
i. Private labels vs. Brand names
ii. Rewards Programs
iii. My Insight
c. Companies, private labels or brand names, need to rely on product innovations and value marketing to drive growth behind its brands.
Wednesday, April 1, 2009
WALMART & RFID technology

Wednesday, March 25, 2009
the persuaders
Dr. Rapaille has interesting viewpoints. He has a 3 step process to figure out our link to products. His thoughts are that consumers don't really understand why they do things a certain way and so they try to figure it out and give false reasons for why they buy things. Rapaille also states that there is a mental connection with the products. He uses this process to figure out what people associate with the word luxury. He has also used this method in the SUV industry. He found that dominance was the code for SUVs, so he persuaded SUV producers to make their vehicles even larger, but with tinted windows to give off the feeling and idea of dominance. The 3 step process is:
Subject’s Reason- asks the people in a focus group questions related to the subject matter; real information is not really gathered during this time, but it breaks the ice for the people and gets them ready to answer the rest of the questions and feel as if they were an integral part of the focus group
Subject’s emotion to gain insight- this happens after a break; asks people in the focus group to perform unconventional tasks (telling stories to young children from other planets); this way, the subjects can break away from common sense reason and logic showing him the emotions that these subject relate to the subject matter
Primal core- this happens after yet another break and is crucial (where decisions are REALLY made); chairs are taken from the room perplexing the subjects, and asked to think about their memories relating to luxury and jot them down; this information is used to decode the word

Song airlines has been criticized and deemed crazy for coming in the airline industry at this time of economic crisis and slowing demand in the airline industry. I think that their idea is good in theory- creating a place (tailored really for women) where luxury meets an airline. But right now, with consumers pinching their pockets for every last penny, I really don’t think it’s the right time to enter. They created focus groups and have gone through some unconventional ways of finding employees who are “so song”, which is pretty neat- but the question is, is all of this just “neat” and not a good business idea?
Wednesday, March 4, 2009
The right and wrong way to ask people what they want
This is the first lesson from this article. For example, in the Pepsi Challenge, it was demonstrated that 57% of the subjects preferred Pepsi over Coke. What was later found was that samples consumed of this drink had a different effect than if you were to drink the entire can of Pepsi. So in the sip that subjects took of Pepsi- they tasted a sweeter and more citrusy taste. But when tasting the Coke- they tasted a raisiny vanilla taste. This is why home tests give the most accurate information. This is the first learning for a marketer trying to gain insight from current or potential customers- if they are interested in knowing how their product will TRULY compare with competitors or on it's own, then let them take it home. For example, marketers can give larger samples out to the public- so that customers will get an accurate picture of what the product does or how it tastes. And as for the company, even though a larger sample will mean more costs for them- it will give the most accurate information of how their product will compete in the long.
Another learning from this article that a marketer could use if they are trying to gain insight from current or potential customers is an idea stemming from Cheskin- he believed that most of us don't make a distinction- on an unconscious level- between the package and the product. The product is the package and product combined. For example, in the margarine test- he found that consumers don't really know what they want, but they can pick the "best" one- or the one that they would rather use. You ask a consumer which butter they like- and it's the one that looks more yellow, has the foil, etc. The ideas behind this are that consumers like the color yellow for margarine because that's the normal color- any color beyond this is weird and won't seem like they're eating margarine. As for the foil- it was found that the foil made the product seem more expensive and better quality, and so hands down each time a consumer was presented with margarine with and without foil- they would choose the one with foil. So an important learning for marketers is to research what aspects of the product are crucial to the consumer (aspects that they need and view as "normal" for the product) and then also be creative to think of other things that you can bring to their attention that they would desire as well but never even knew about- this will get them places.
To sum up, Gladwell tells that focus groups often fail to return accurate assessments because they both stretch the limits of the participants’ expertise and remove the product assessment decision from the normal context in which it would be made. In two instances that Gladwell cites, evaluations of musician Kenna’s potential for Top 40 radio success and the infamous blind taste tests between Coke and Pepsi, focus groups and experts reached very different conclusions in different settings. He says that if you want to be effective, market research must match as closely as possible the environment in which the consumption of a product, whether it is rock music or soda, will actually occur.
Sunday, February 22, 2009
Brand designs: The lure of the names we know

Heinz, Kraft, General Mills, Nabisco, Oscar Meyer, Yoplait, Frito Lay, Kellogg’s, and Sara Lee- what do these names all have in common? They are brand names that we all know and love in the consumer goods industry. I am looking into doing a study on consumer goods brand loyalty in this particular economic recession. This topic really interests me because I myself am really brand loyal usually. But when I see the private label right next to my brand label on the shelf being almost a dollar less, sometimes I find the private label in my shopping cart at the end of the trip. I generally associate brand names with good quality, healthy ingredients, delicious, etc. and I generally associate private labels with just the opposite. So I wanted to research this topic and see JUST what interests us and strikes us about the brand names and how far are we willing to stick with it even during this time of economic recession.
Through some of my preliminary research, I have found that private label sales grew 10.2% in 2008, while brand name sales increased only 2.6%. This shows that consumers have really been more interested into the private labels. For example, one consumer says “the only difference is the label on the package”. Another factor that is interesting is that sometimes when you have a whole bunch of different brands out there and not a lot of differentiation among some of them or not a lot of knowledge about them, people get frustrated and confused and end up just picking the generic brand (private label). We studied this in the pod cast about choices. Sometimes, choices are not the best thing for companies.
Furthermore, seeking to combat stiffer competition from cheaper store brands- big-name food manufacturers, including Kraft Foods and General Mills are joining forces with retailers to promote their brands alongside private-label goods. In the past, big food companies didn’t worry too much about cheaper store brands encroaching on their turf, because consumers were more loyal to name brands and generally believed better quality justified their higher prices. But now, retailers have improved their store brands and have mimicked the innovations that brand names have introduced (such as cheese with extra calcium).
An aspect of brand loyal-ness that I am looking into is the reward programs. Through some research, I have found that brands better keep members by instilling reward programs. A new study from Colloquy finds that customers who participate in loyalty-building efforts, like MyCokeRewards and the Best Buy Reward Zone, at 70% more likely to actively recommend a product, service, or brand than the general population.
From the article I have cited below, one person says “Branding is so much about psychology it’s almost frightening”. Relating this to our customer insights class- the lecture about the differences between Miss Clairol and L’Oreal and how they make a woman feel, once they dye their hair with these specific brands. For example, the Miss Clairol feeling was the girl next door but just a little prettier and L’Oreal made women feel sophisticated and worth it (hence the tag line “because you’re worth it”).
Some questions I will be looking into regarding this topic are what really drives a consumer to be brand loyal? To what extent are they brand loyal? What kind of products are they most brand loyal? More to be found.
Article used: "Brand designs: The lure of the names we know" By Meg Carter http://www.independent.co.uk/life-style/food-and-drink/features/brand-designs-the-lure-of-the-names-we-know-1607049.html
Friday, February 13, 2009
how well do you know me?
o who are your most valuable customers?
o what do they need?
o what motivates them to purchase?
o can you customize aspects of your busines to meet customer's needs?
These days it doesn't matter how many times during experiments the company's product/service performs wonderfully, if it is not something we want or need, most likely it will not survive. More and more it is the customers who define what companies need to deliver. We define what the "store" is. By knowing who your most valuable customers are and anticipating their needs, companies can leverage that information across marketing, sales, and operations. They become successful when they are able to mix this into our store experience to make it meaningful for us.
A good approach to consider when thinking about their business would be to take customer surveys, and lots of them. But it is important to create some sort of incentive so that customers like myself will first- want to do complete the survey, and second- complete it well. For example, sporadically after each transaction at Banana Republic the register will spit out a customer survey opportunity. It typically says that a customer can receive a percentage off their next purchase if they go online and fill out a survey on their experience visiting that particular Banana Republic store that day. The survey takes a good five to ten minutes- as long as you actually think about the service you received. I find that I do. Then you get a discount code good for three months. Too bad there's no alarm that reminds you to bring it with you when you go shopping AND then also pull it out of your wallet where it's been folded for a very long time. After all, the discount is only worthwhile if you use it!

Some more points on customer satisfaction surveys- they are often regarded as the most accurate barometers for predicting the success of a company. Because they directly ask about the critical success factors of a business, when done effectively, customer satisfaction surveys can deliver powerful, incisive information and provide ways to gain a competitive edge. Companies are able to gather, measure, and analyze valuable information with more accuracy, consistency, and in less time than ever before. Obtaining customer feedback quickly helps make sure that a business is meeting (and hopefully exceeding) customer expectations. It also allows visibility to where changes should be made to increase satisfaction and overall success.
Which actually after doing some more research on Banana for the blog's purpose, I found out that the division of San Francisco-based retailer Gap has signed nine musicians to appear in the upcoming print, outdoor, online and direct mail campaign, which starts Feb. 18. They will be welcoming artists such as Liz Phair, Sara Bareilles, Tommy Torres and band OK Go! They will appear in Banana Republic’s spring and summer 2009 collections. Online, Banana Republic will also feature artist interviews, free downloads and performances. It's funny how companies think that these things will be a solution for the decline in sales or at least attract us into the store to see what they have- the other funny thing is, it will bring in many of us. Becuase like the L'Oreal and Miss Clairol commericals we saw, we long to be like these women/famous artists we see on TV- and really, to us, using the same hair coloring or wearing the same clothes gets us one step closer.
Wednesday, February 4, 2009
choices
Choices make life difficult. I agree with Barry Schwartz in that choices (the increasing demand for options) decrease consumer confidence and satisfaction, it overwhelms us. In this podcast, Schwartz discusses his research and how it can apply in the online world. He gives practical advice for retailers on how they can satisfy customers and be successful in the online world. Barry Schwartz used to think that the more choice people have the better off they were, but he has found evidence that this assumption can be false, which is why he talks about it as a summary of evidence and an argument on why it overwhelms us when we have too many options- and I think he is right on.
Barry Schwartz talks about how we have 175 salad dressings in our supermarkets, 250 kinds of cereal (all very delicious in my personal opinion). You go to Circuit City or Best Buy and you can build 6million different stereo systems out of the components in stock. Looking in the newspaper, there are 10,000 mutual funds & stocks to pick from. There is no less than 30 kinds of dental floss. There’s simply no area of life where people don’t have an extraordinarily large number of options in this world.
There are different effects that having too much choice produces:
1. People end up choosing none- they simply pass.
(meaning: a retailer may actually sell less; we don't know how to choose- for me, the decision is all together too much of a hassle, so I walk away, empty handed).
2. People overcome this indecision and choose- sometimes badly.
(meaning: So you might choose by brand and price and ignore all those wonderful subtle features that producers of these goods take so much trouble to create. Now if it happens that all you care about is the simple things like brand and price, you’re not harmed by this simplifying but if you actually care about other things, you’ll end up making a less than optimal choice).
3. People manage to choose, and choose well- but will be less satisfied if chosen from a large set.
(meaning: So even though you do well, you end up disappointed, since not everything you pick will have the best qualities- it is all about trade-offs).
For myself, I recently bought a digital camera at Best Buy. There were tons of options to choose from- first it was pick the brand. Okay I have Sony, Canon, Nikon, Olympus, the list goes on and on. Next it was pick the megapixels- there are a wide range of these. Then it was pick the color- should I pick a fun color like pink, blue, red- or should I go for the classic colors like silver or black. Going on it was pick the price range, pick the features, pick the camera case, pick the sd card, etc. At the moment I thought, geez can someone just know what I like and tell me "this is the one you need" and make this decision easier so I can start using it? Anyhow, I felt as I left the store I had made the best decision I could have- but in the back of my head, I kept thinking, what if I got that other brand, what if I got that other color, is this camera too thick? would I have liked the others more? I wanted the best one.
So I completely agree with Barry Schwartz when he talks about how even if you make the right choice, you end up thinking about all those other wonderful things you’ve passed up, and that makes your choice less satisfying. We're all human, we want to know we have the best from what's out there- and we obviously need help making decisions like these (whether deciding which camera we want down to which flavor of cookie we want to eat).
Tuesday, January 27, 2009
they call us generation Y
[generation Y]
n. People born after the Generation X cohort. Its name is controversial and is synonymous with several alternative names including The Net Generation, Millennials, Echo Boomers, and iGeneration. Generation Y consists primarily of the offspring of the Generation Jones and Baby Boomers cohorts.
This is taken from Wikipedia ("The Free Encyclopedia"). Remember how we all used to have the entire set of Encyclopedia Britannica and how heavy and thick they were? Now I just wikipedia or google what I need to find. Again I find myself realizing just how much of the world is at our fingertips when we have technology.
I'm not quite entirely sure I fit into the description of a Gen Yer. I definitely see consistencies between the description of what I am labeled as and what I am- for example: as much as I would like to say I don't care about brands, I do; I check my email about once every five minutes when in front of the computer (even as I write my blog I am constantly hitting that 'F5' short cut button to refresh my inbox) and get impatient if it takes longer than one second to refresh; I prefer things that look more stylish and sleek; I have a Roth IRA account and I care about it. On the flip side: I love my Cons (converse shoes); I love my Nike shorts (find me anyday in the summer, I'll be wearing them in any assortment of colors); I think Levis are cool.
Even though I say I may not be 100% Gen Yer, I read on and on about how we are diverse, we question everything, we are more racially and culturally tolerant, we need the combination of work hard and play hard, we are more financially savvy, we job hop, we like work-life balance, we are the fastest growing segment in the work force, we don't know what war our parents are talking about (they don't understand our fashion sense), we are constantly changing everything- our phone, our laptops, our views, we are constantly bombarded with the media- and many times we follow it- and I definitely see how this describes the majority of the people around me. You really can't overlook us.
Gen Yers are one of the next largest groups that rivals the baby boom in size. Marketers struggle to find ways to catch our attention to persuade us that we need to buy their next latest and greatest invention. They have to fend off competitors and figure out how to stay on top of their game. Their most difficult job will be to figure out what we like as fickle consumers now and predict what we will like 5, 10, 50 years down the line- and now with the economy acting up the way it is, challenges are definitely down their path. I'd say we really are reshaping America as we know it.
love them.