BMW’s Entry into the Self-Driving Market

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I’m a huge proponent of self-driving cars.  While my in-laws find the concept of a computer driving us around terrifying, I find it liberating.  After all, nearly all commercial aircraft are flown by computer (and in some cases they land and take off by computer as well).  The National Highway Transportation and Safety Administration found that an excess of 94% of all traffic accidents are primarily caused by human error.  This topic in itself can lead to a rich class discussion.

Google, Apple, Uber, and other tech companies have led the charge in this space but traditional automobile manufacturers are starting to make progress with their roadmaps as well.  This article talks about BMW’s current design concept for a self-driving electric car.  What I particularly liked was the content talking about how they’re changing the design of the interior of the car since it no longer needs to be centered around a driver forced to look forward.  Ask your students what the ideal self-driving car would look like on the inside.  Does it look like the interior of a private plane or is it more utilitarian?  Is it a portable living room with a large TV that can be watched by all occupants?  As we move from human-driven to hybrid-driven and eventually to computer-only driven cars, what does that do to the product design?  How does the adoption curve affect marketing strategies for this new category of cars?

Cannabis Coca-Cola

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Coca-Cola is looking at getting into the cannabis-infused drink business.  You won’t be able to get high off the drink since it uses a non-psychoactive component (CBD) in marijuana.  Nevertheless, the story is garnering a lot of media attention and Coca-Cola says the industry has significant potential.  You can read more about the story here.

Ask your students to put together a marketing strategy for the new Coke drink.  Who do they define as the target market?  Why?  Students often see themselves as the largest market segment for products that they like and this can be a good opportunity to push them to think more broadly.  Beyond the target market, what would their marketing mix look like?  How would they treat the cannabis component?  Would they downplay it or make it front and center?  Why?  Would they have to implement new logistical processes or distribution channels?  There are many different directions you could take this discussion.

Marketing in College Dorms

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All goods and services providers have to evaluate the external market environment and adjust their strategy accordingly if they want to be successful.  That applies to colleges and universities and even departments within those institutions as well.  The USA Today recently published an article that talks about changes Syracuse University’s dining halls are making to adapt to changes in student preferences

and dietary requirements.  Offering gluten-free and vegan options, providing a healthier menu, and customizable dishes are a few of the ways dining halls across the nation are adapting to the market.  According to the article, one out of three Americans follows a specific lifestyle diet so learning how to adapt is critical for dining halls if they want to compete with off-campus dining options.

Pumpkin Mania

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These days the approach of fall is marked by the appearance of various pumpkin infused food and drink.  The USA Today talks about this craze and specifically “Pumpkinox” in this article.  Pumpkinox refers to the day on which Starbucks brings back their popular Pumpkin Spice Latte.  In an effort to beat Starbucks to market, Dunkin’ Donuts and others started offering their pumpkin-flavored treats one day earlier.

In Chapters 3 and 5 of Essentials of Marketing we talk about the impact social cultural trends and influences have on marketing.   In this case, Starbucks actually created a trend which is now shaping our beverage-drinking culture!

3D Printed House for Under $10,000

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I love disruptive innovation.  Disruptive innovation challenges existing companies to adapt, evolve, and improve while creating opportunities for new companies to grow and thrive.  Disruptive innovation can often provide significant benefits for consumers as well creating a great win-win.  3D printing has been in existence for several years but it continues to mature and businesses are starting to find ways to directly sell products created by these printers.

A recent example is detailed in this SingularityHub article, “This 3D Printed House Goes Up in a Day for Under $10,000”.  A startup company, ICON, partnered with a housing nonprofit, New Story, and together designed and developed a 650 square foot house that can be constructed in under 24 hours for less than $10,000.  Their goal is to build these homes in developing countries for $4,000.  Advancements like this can provide affordable housing to millions who live in much more primitive structures.  While this may seem like a niche market, the technology can be leveraged for other purposes.  Will this someday threaten traditional construction processes?  At what point do legacy companies need to develop strategies that incorporate the potential threat posed by disruptive innovations?