teachthe4ps.com » Product

Jenny Craig Responds to Rising Growing Obesity Problem in France

Joe Cannon — Sun, 29 Jan 2012 00:03:20 +0000

“France’s Unlikely Import: Weight Loss Centers” (Bloomberg Businessweek, January 12, 2012) provides an example of a cultural trend – growing obesity in France — and one firm’s adaptation to a new culture. The article also explains how another U.S. import — fast food (McDonalds and Pizza Hut have experienced growth in the country) helped France put on that extra weight. Jenny Craig has adapted its approach to French consumer behavior and palette. I know we just had an example of international product adaptation, but this one differs and covers a service and good.

Lego targets girls — again

Joe Cannon — Sat, 17 Dec 2011 20:08:34 +0000

Lego is the world’s most admired toy company. It hasn’t always been that way — back in 2004, the company teetered on the brink of bankruptcy as it lost a million dollars a day. In Basic Marketing we have a great chapter opening case scenario that uses Lego. This was one of my favorite openers to write. Bloomberg Businessweek‘s cover story “Lego is for Girls” (December 14, 2011) provides the latest chapter in this story. The article provides some insights on the development of the latest marketing strategy for Lego. This one targets girls. The article includes a bit of history – showing some of the toymaker’s previous failed attempts to appeal to girls.

The article provides some good examples for market segmentation (boys v. girls, differences in play across international markets), market research (researchers “embedded” with families to observe how Lego kids live and play), and product strategy (product design to appeal to girls). The result is the Lego Friends line of toys. Lego has put $40 million behind its global marketing effort. Still it might be a while before we know if this will work. Lego decided to wait until after the holidays to launch the new line. Given the importance of Christmas to toy sales, it might be a year or two before we know if Lego has finally cracked the code for the other 50% of the toy market.

Coke Pulls White “Save the Arctic” Cans After Market Confusion

Joe Cannon — Sat, 03 Dec 2011 20:47:05 +0000

It sure sounded like a great idea. The idea, draw attention to global warming and the plight of polar bears. The bears have been a Coca Cola holiday symbol for almost 100 years — so the actions also fit with the brand’s heritage. Coke did this by changing the iconic red cans to white for the holidays. It sure sounded like a good idea. Unfortunately, the new cans confused consumers — especially Diet Coke drinkers who confused the white can with their familiar silver Diet Coke cans. This article, “Bad News, Bears: Coke Pulls Back on White Cans in Holiday Campaign to Save Polar Bears” (brandchannel, December 1, 2011) describes many interesting elements to the story. For example, by monitoring social media, Coca Cola marketing managers heard complaints early. This case is also a demonstration of a low involvement product that consumers buy out of habit. In the end, it probably marks a mis-step by the soft drink giant. But I would say, if you take chance, you will make mistakes sometimes. And this whole outcome, like the New Coke introduction 25 years ago, may yet generate positive publicity for the brand. Also posted at Learn the 4 Ps.

This article has examples that can be used in teaching consumer behavior, market research, brand management, packaging, and advertising & promotion.

An Update on the Battle of the Brands

Joe Cannon — Tue, 29 Nov 2011 23:37:06 +0000

The battle of the brands is the “competition between dealer brands and manufacturer brand” (from our text books) over which will be more popular. Dealer brands, sometimes called private labels, are brands created by store chains (for example Safeway’s O Organics line of organic foods) and manufacturer brands are created by a producer (General Mills Cheerios). Dealer brands have been gaining share — boosted recently by economic downturn induced consumer price sensitivity.

This Bloomberg Businessweek article “Why Grocers Are Boosting Private Labels,” gives an update and some great examples. Dealer brands used to differentiate on price and then more recently offered comparable and sometimes higher quality. Now many retailers are adding brand managers and investing in more aggressive promotion. Surprising fact: in 2009, 8.7% of food and nonalcoholic drink new products were private label – by 2011 the number more than tripled to 31.4%.

The article will provide good examples when you cover branding and/or retailing. Also posted at Learn the 4 Ps.

It’s Not Easy to Out-Clever Apple, Does Samsung?

Joe Cannon — Fri, 25 Nov 2011 14:25:56 +0000

The iPhone has considerable market share and mind share among consumers. So how do you break into that market? Maybe you start by copying Apple’s iPad and iPhone. Then you try to differentiate your phone with a larger screen and 4G connection speed. Of course explaining technical differences in an ad can be a challenge.

So Samsung tries to make fun of Apple diehards with this latest ad. Does it work? I would imagine that Apple fans hate it and Apple haters love it — but those two groups are probably not Samsung’s target market with Galaxy (they are already too loyal). How does it work for smartphone buyers who are not strongly pro- or anti-Apple?

Either way, this is a good example of comparative advertising. Also posted at Learn the 4 Ps.

Online Retailers Look to Packaging to Enhance the Purchase Experience

Joe Cannon — Mon, 21 Nov 2011 15:28:08 +0000

Online retailers seeking to enhance their customers’ shopping experience are focusing on what’s in the box. In Basic Marketing and Essentials of Marketing we note three primary roles of packaging: promoting, protecting, and enhancing the product. This multimedia Wall Street Journal story (which includes an article, interactive graphic, and video) “Boxing Up Shopping’s Magic Moment,” (November 17, 2011, non-subscribers may have to click here) provides great reinforcement of all three roles of packaging:

Extensive testing of many packaging materials to assure that packages survive the trip from the retailer’s warehouse to the customer’s home in good shape.
Many online retailers are wrapping the inner package in a beautiful manner to enhance the overall experience when the package is opened at home.
The beauty of that inner package makes people feel better about the brand and promotes the next purchase.

This Wall Street Journal “package” offers a variety of examples you can use when you teach product or retailing. The video might work well in class because it is more than just talking heads and includes some nice images to complement the story. This was also posted at Learn the 4 Ps.

Harley-Davidson Adapts its Marketing Strategy to Ride Out the Recession

Joe Cannon — Sat, 05 Nov 2011 16:38:37 +0000

Harley-Davidson’s sales of premium motorcycles have suffered in the recession — falling more than 40% from its 2006 peak. Harley cut costs with more efficient manufacturing and labor cuts. It has also carefully adapted its marketing strategy. For one, the company is trying to broaden its target market — trying to lure women, minorities, young adults and people outside the U.S. It must target these new markets with caution; Harley doesn’t want to dilute its carefully crafted macho image. Harley’s marketing chief notes, “We’re not trying to be everything to everyone, we’re trying to be our thing to more people.” So Harley has adapted its promotion and products to appeal to new segments. This is not an easy task — and your macho image might be lost when riders look around and see a growing number of women riding Harleys. The article provides a nice example to use with marketing strategy planning for product or promotion. You could ask students for other ideas about how to adapt the company’s strategy for these new target markets.

You can read more about Harley’s efforts in this Wall Street Journal article, “Harley, With Macho Intact, Tries to Court More Women” (October 31, 2011, non-subscribers may need to click here). Also posted at Learn the 4 Ps.

P&G Targets Hispanic Shoppers in the U.S.

Joe Cannon — Tue, 04 Oct 2011 17:56:14 +0000

With sales slow in the U.S., Procter & Gamble brand managers are looking to sharpen their appeal to the growing Hispanic market. In 2010, there were about 50 million Hispanic-Americans living in the U.S. In our books we cover this demographic trend in chapter 5 (Basic Marketing) or chapter 3 (Essentials of Marketing). Obviously P&G sees this growing market these numbers. So its crack marketing research uncovered new ways to appeal to this market. This article, “Hola: P&G Seeks Latino Shoppers” (Wall Street Journal, September 15, 2011, non-subscribers may need to click here) highlights efforts in packaging and product.

This example will work well when you cover demographic trends, market segmentation, cross-cultural, or product — since most of the examples in the article have to do with adapting product to this market.

Heinz Reinvents the Ketchup Packet

Joe Cannon — Sun, 25 Sep 2011 15:45:39 +0000

This is a great story of customer needs, marketing research, and new product development. Those of us eating French fries while driving know that the squeeze packets didn’t work real well. Actually, the squeeze packages don’t work well in a fast food joint either. Ketchup-maker Heinz knows that better than any of us. So they set about to change the packet — and came up with a great solution. The new packets allow you to squeeze the ketchup onto a sandwich or if you tear off the top, to easily dip your fries. The packets cost more, but customers use fewer packages and fast food restaurants hope that the new packages heat up slow sales of fries that the drive-thru window.

You can read more — including examples of some of the marketing research Heinz used to develop the new packaging in “Old Ketchup Packet Heads for the Trash,” (Wall Street Journal, September 19, 2011, non-subscribers may have to click here). The article provides you with useful examples of customer needs, marketing research, new product development, and functional packaging.

Should Mercedes Move Downmarket?

Joe Cannon — Sun, 25 Sep 2011 15:33:59 +0000

Mercedes Benz has struggled in recent years in its battle with other Germany luxury carmakers — both BMW and Audi now sell more than the fabled German icon. This BusinessWeek article, “A Mini Mercedes with Big Ambitions” (September 22, 2011) describes the B-Class, smaller and more affordable Mercedes Benz — which targets a “younger, hipper clientele.” The move is an example of expanding a product line downmarket. The decision has implications for Mercedes positioning and brand equity. There are also questions about promotion to a new target market. This is also posted at Learn the 4 Ps.