20501034 Entry 10

Choice Between Market Share and Brand

Original Article

For Sony TVs, a New Downscale Front

by Kenji Hall who is BusinessWeek's technology correspondent in Tokyo on May 15th, 2008

Owing to economic downturn and stiff competition in their industry, Sony has begun to selling its models through US mass merchandise chain Wal-Mart, and electronic-specialty stores like Best Buy and Circuit City. Just a few years ago, Sony avoided selling their products at a discount stores or Wal-Mart. As a result, Sony lost out to Samsung, LG and Philips. The product line also became entry level model from premium model. Market researchers expect that in the long term those movements will hurt Sony’s premium image.

Due to all its effort, the volume Sony sold rose 8.7%. Despite of its sales growth, the revenues they made was proved flat. It reflects a harsh reality in the TV business.


My opinion

I agree on how Sony executives decided. These days, the competition occurring in TV industry is far beyond the description. Not only domestic competitors, Sharp, Panasonic but also global competitors like Samsung, LG, Philips are struggling to win the competition. To play in this environment, Sony didn’t have many options but joining the bargaining race.

One interesting thing about this article is that author contrasted Sony’s strategy with Toyota’s premium line, Lexus. However, I wish he brought better model to contrast. TV and automobile is too different things to directly contrast. TV is something to put in our house and enjoy using for customers by themselves while the car is something shown to other people and often people judge people by their car. If they have to choose one of items that they have to cut their budget, it would be the TV. In other words, people seem to be sensitive about price for a TV. Therefore in this economic downturn, people who are involved in TV industry should catch consumer’s purchasing capability faster and react faster than the people who work in car industry do.

In addition, the portion that TV takes in our life is also decreasing because of excessive use of internet and widespread TV’s alternatives like PMP (Portable Multimedia Player), DMB (Digital Media Broadcasting). However, car business is still firmly secured. Alternatives of car like private aircraft, motorbike or just bicycle are too much different means of transportation from what people used to. Car is relatively very safe from those substitutes.

20501005 - Entry 10

LG ties up with Benz for marketing

LG Electronics Inc. has partnered with German carmaker Mercedes-Benz and plans to hold joint marketing events in China and other Asian countries, the Korean company said yesterday."The joint marketing with Benz is part of LG`s efforts to target the premium market in Asia," said Nam K. Yoo, head of LG Electronics China. Benz`s luxury automobile brand, which combines advanced technology and classic designs, suits LG`s Art home appliance series well, he said.LG`s refrigerators, air conditioners, washing machines and other home appliances will be displayed in Mercedes-Benz showrooms in 14 major cities in China. Buyers of the latest models of Benz cars until June 21 will be given a free LG refrigerator.The Korean firm said it will expand the joint marketing campaign to Hong Kong, Singapore, Thailand and the rest of Asia.In a similar joint marketing campaign, Samsung Electronics Co.`s SCH-W350 cell phone will be included in the BMW 3 series basic package, Samsung said.

My Opinion

Both LG and Mercedes-Benz are my favorite companies. As you probably know, Mercedes-Benz is one of the best car companies in the world. I think LG made a great decision that LG has partnered with Benz. It will also benefit for Benz to joint Asia marketing campaign with LG which is a famous company in Asia.

According to the article, LG`s refrigerators, air conditioners, washing machines and other home appliances will be displayed in Mercedes-Benz showrooms in 14 major cities in China.

Although, China is not a rich countury, there are a lot of rich people in major cities.

They might like Benz which is luxurious car brand. Because of the high level of awareness of Benz, those people will be considered LG as luxurious brand.

It seems that Both LG and Benz made a great decision.

Annotation : The Korea Herald / Lee Sun-young(milaya@heraldm.com) / May 16

Entry-10 20820014

New Sites Make Shopping a Game
Are you willing to give up the hands-on service of a bricks-and-mortar luxury retail store? limited-time-only access of Internet luxury shopping???

/ summary /

This article is about a number of members only websites have been launched to sell luxury goods at really high discounts by using marketing techniques. Here time plays very important role by providing limited time “ flash sales” offer a new element, turn online shopping into online gaming. Sales like, Kuwait diamonds! Available for 36 hours only, while supplies last!
And yet the sites are pitched as members-only exclusive, and the inspirational products, such as Nina Ricci sunglasses, are aimed at all demographics. The idea is pure wish fulfillment: The purchase buttons to buy goods on Ideeli.com read, "I WANT IT!"
Moreover, Ideeli.com provides special opportunity through the access of its “ private sale game”. Sellers give original handbags sweepstakes-style and sells premium access to "First Row" members who pay $100 a year to get early access to sales via their cell phones.
As well as the brands themselves benefit from the discretion of a private sale. The goods are largely items from the end of the current spring season that companies need to get rid of as they prepare to ship their fall collections. For this reason, Gilt, which has a partnership with the industry's Council of Fashion Designers of America, carefully keeps its goods from showing up high on Google searches. The sites are exposed videos, celebrity images, and links to brands` home sites.
My opinion
I have gained lot of ideas about online promotion and marketing strategy for attracting potential consumers by offering inspirational and appealing words or tactics. Beside this great discounts, there`s a nice opportunity to sell unsold products or inventory.
Actually, luxury brands largely missed the Internet revolution. But recent studies suggest that the wealthy are shopping online these days. A survey by American Express Publishing and Harrison Group found that 99% of wealthy consumers shop online, expecting goods to be discounted at least 30% from store prices.
In the marketing attracting consumers by visual images like show celebrity with that brand apparel or some deceptive words like “ I want it” are very effective.
reference: http://online.wsj.com/article/SB120960195112257963.html?mod=SmallBusinessBuildingAwareness_RelatedStories
may 16, by CHRISTINA BINKLEY

20820007 Entry - 10

Build the Brand Friendship

To create a truly powerful brand, you need to establish a sense of belonging, friendship, and dependability between product and customers.

By Steve McKee

/Summary/
We are living in society and influencing each other. We continuously evolving stable of relationships and some of them last forever. This human dynamic is root of brand loyalty. Our relationship with brands also shares some same characteristics as our relationships with others. To have powerful brand assets we need to create a sense of belongings, friendship and dependability between our brand and customers.
Belongings
We are all members of different clubs. Our family, church, work place is all chosen clubs by ourselves. We always belong to something. Auto brands like BMW, Volkswagen and Saturn generate a strong sense of belongings around their brand. They could attract their loyalists by their unique culture and world class standard. Bloomberg does too. It means something to people who are working in the financial- service industry to be part of the Bloomberg Club. So most important factor in branding is relevance.
Friendship
Kerry Livgren said simply “The only way to be friend is to be one”. The great brands understand this. For example for many people Starbucks is like visiting an old friend every day. It is comfortable and familiar. Our chosen brand consistently gives us sense of trust that we are not trying to find another one. We can not force friendship but we can take steps to initiate friendship and show that we are doing our part.
Dependability
Friendships have ups and downs but true friend is someone we can count on. Brand is the same they prove themselves over time and takes time just as our relationships. For dependability know companies like American Express, Honda, and Toyota…
Awareness
If we do not continue to communicate with our new friends they will forget you. It is also same in branding. We should focus on what is our brand to whom it is meaningful then give our consistent attention in order to stay in customer’s top of mind. Think about Apple and eBay, they understood what are belonging, relationship and dependability and they threat them accordingly.

My Opinion

When we think about any brand we think about high value and high standard which makes sense of belonging, friendship and dependability- primary things described in the article. We do not choose everyone to be our friends and with brand is same as well. If brand is not relevant, consumers will not consider about it. Any famous successful brands are creating high values like high quality, unique service and etc. to satisfy customer’s needs and proving that over again they are doing their part well and staying long in top of mind. So I understood that it is very important to be relevant in branding because if we make particular product and services that not makes any sense it will probably fail.

It is impossible to forget true friends.

Reference: www.businessweek.com

20400442-ENTRY 10

Sniff the Breeze!!

Last wendesday, we had a special lecture about the critical importance of reading the current tendency of business and consumers' preferences. The lecture was very very helpful to have such perspectives that successful marketers are to be fluctuate and fast to look forward to changes.

The article collapses with the lecture. The journal is talking about that he world's most influential headhunters have a particularly acute sense for the business trends that may already be shifting the strategy and management demands for their myriad corporate clients. What follows are just some of the perspectives they've shared about the single global business trend that will most influence corporate performance in the future.

Industry leaders will need to embrace the moral and economic principles of sustainable business to remain competitive and build successful companies, experts say. And the sustainable business and competitiveness are the ability to insight into emerging business trends.

Opinion

Coca-cola was pushed away from the first place of best recognition by the world. Now, the first place is taken by the Google. IBM is no longer the world's best computer maker. Daum, Korean portal site was pushed far down by the Cyworld and Naver. These are all because previous leader companies didn't read the trend and went too long with their current marketing mix.
I think how to perform is very important, as we study in the class. However, deciding what to perform to deliver the value to the customers from the beginning is also very critical.

Reference:
Scouting Emerging Business Trends; Besiness Week, by Joseph Daniel McCool, May 7, 2008

20820007 Entry-9

Foreign Hotels Raise Bar in Japan

Customer service is a Japanese specialty, but when it comes to high-end hotels, it's the outsiders that earn most of the highest marks

by Ian Rowley

/Article summary/

Japan is famous about its beautiful temples, fantastic food and culture. Besides these things it attracts first time visitors by its unique services. It is not surprising 8 million visitors every year wondering about services in Japan when they go home and can not find same services in their own country. Whether it is convenience store, gas station, ticket collector they threat them like a king. Even when it comes to high class foreign managed hotel it is same as well and higher. Customer survey in January found that Ritz Carlton is most popular hotel in Tokyo and Osaka which owned by foreigners. Oriental is most expensive six star hotel which opened in 2005 with rooms starting at $780 per night. Other recent hotels are Conrad Tokyo with 314 rooms and Shangri – La in Tokyo.
It is noticeable that Ritz Carlton hotel located in the area of a huge shopping and art complex and Tokyo’s tallest building. Staffs are polite and attentive as you expect in Japan and trained to be more different than traditional Japanese hotels. Also it offers excellent food. Its Dutch general manger Ricco DeBlank always checks all details before the hotel starts because 70% of Japanese customers appreciate small details and send dozens of letters even some of them 14 pages long with photos.

As competition is rising newcomers have to work harder to please customers because some initial new openings die down. At the Peninsula visitors appreciate the new technology the hotel has added to its rooms: including humidifier installed in the air conditioning system, portable phone and nail- polish dryer. Despite new rivals local hotels don’t appear suffered. Imperial Hotel, Hotel Okura and the New Otani Hotel have seen increase of room rates.

Foreigner owned hotels creating a lot of media attention because they focus on small group of wealthy clients but some of them consider wide range of customers. Those hotels have 800 to 1500 rooms each for conference guests or large weddings. At the Imperial guests can choose from 7 types of pillows and air purifiers will be offered which churning out negative ions.


Opinion

From this article I understood why those foreign managed and owned companies are successful and earning more. In my opinion the reason is they rightly captured motives that are making target to choose services they offer. Their main target is not wide range of people but little group of wealthy people who always want to experience, taste and see different things so those hotels differentiated their services from traditional Japanese hotels by using advanced technology, offering unique food, training educating their employees and choosing most suitable locations in the shopping and art complex area which gives opportunity to customers approach places easily and save time. Therefore they understood customer’s attitude. If see statistics 70% of Japanese customers take note of everything even details so hotels are considering also every details of their services before everyday to open. It is becoming more competitive to please customers to new comers in hotel industry and to attract loyal customers of those hotels.

Customers are kings.

Reference:

http://www.businessweek.com/globalbiz/content/apr2008/gb20080418_590120.htm?chan=top+news_top+news+index_global+business