Longtime British luxury car dealer Jaguar, and previous subdivision of Ford motor corporation was purchased along with Land rover in 2008 by the Tata Group of Mumbai. Tata Motors is re-branding Jaguar. They have altered their font, logo, and appeal. They are also planning an 18 city tour for their upcoming line of luxury cars. Their ad campaign is also planning a media blitz of their new cars and product line. Along with TV and internet advertising they are releasing digital and outdoor print in the United States, Europe, Africa, and Australia. They hope this re-branding will grow the brand significantly since their 2011 figures seem to be sliding. The centerpiece of their Ad is a TV spot where in a world of old technologies and machines comes on that, “There is one machine, so instinctive, so seductive, it’s as alive as we are. It doesn’t click or buzz, it roars. Jaguar,”.
They are playing on the unique emotional character of the car. They are asking their buyers if they are alive, like the Jaguar XJ. They are aiming at people in their 40's-50's with a high disposable income. There are many skeptics as to how the public will receive the new ad campaign, saying the commercials are not clear or disciplined. However Tata Motors believes this expansion into new markets and increased advertising within those markets will generate and increase in sales and production.
more information can be found at: http://www.nytimes.com/2012/02/27/business/media/jaguar-ad-campaign-highlights-its-wild-side.html?ref=business
Monday, February 27, 2012
Friday, February 24, 2012
Changes in J&J
Johnson and Johnson is a major producer of health products and pharmaceuticals. REcently their former CEO William C. Weldon stepped down and announced the promotion of Alex Gorsky. Gorsky has extensive experience within the sales of pharmaceuticals and medical devices within Johnson and Johnson. "As is typical for rising stars at large corporations, Mr. Gorsky held
many jobs after starting with the company in 1988, including running
Johnson & Johnson’s pharmaceutical businesses in Europe, Africa and
the Middle East.". The company has placed a lot of responsibility and confidence in Mr. Gorsky.
However there has been much discussion about the appropriateness of this promotion. Gorsky was the leading executive on the artificial hips that J&J produces and many have not passed inspection. Although there is much concern with this appointment they feel Gorsky is fit for the position. Their primary responsibilities and challenges facing Gorsky are, "fixing the problems at the plants that make over-the-counter products, ensuring that there are lucrative prescription drugs in development and addressing a global dip in consumer use of medical services".
More information can be found at: http://www.blogger.com/blogger.g?blogID=266412629036522626#editor/target=post;postID=5208647846852848374
However there has been much discussion about the appropriateness of this promotion. Gorsky was the leading executive on the artificial hips that J&J produces and many have not passed inspection. Although there is much concern with this appointment they feel Gorsky is fit for the position. Their primary responsibilities and challenges facing Gorsky are, "fixing the problems at the plants that make over-the-counter products, ensuring that there are lucrative prescription drugs in development and addressing a global dip in consumer use of medical services".
More information can be found at: http://www.blogger.com/blogger.g?blogID=266412629036522626#editor/target=post;postID=5208647846852848374
Proctor and Gamble
Proctor and Gamble has released its plans to cut 5,700 jobs by June of 2013. Their goals are to save over $10Billion by June of 2016. This jub cut is primarily due to slow sales in the United states as well as high packaging and fueling costs. It is still spending money on developing initiatives to grow as a company. This amounts to roughly 10% of the company's non-manufacturing work force. They will continue to expand in foreign companies and even continue to hire. Their stock shares have also risen $1.98.
This demonstrates the ever present need to continue developing growth strategies, reallocating money, and developing product/market penetration.
More information can be found at: http://www.blogger.com/blogger.g?blogID=266412629036522626#editor/target=post;postID=8809785250900167779
This demonstrates the ever present need to continue developing growth strategies, reallocating money, and developing product/market penetration.
More information can be found at: http://www.blogger.com/blogger.g?blogID=266412629036522626#editor/target=post;postID=8809785250900167779
Thursday, February 23, 2012
DO NOT TRACK
Within the age of technology and information sharing there has been one taboo word; Privacy. With the growing number of ways information can be tracked, used, and bought it is becoming increasing difficult to be private and respected. Mozilla Firefox and Internet Explorer and later Apple added a "do not track" button to their web browsers so users felt respected and knew there inquiries were not being tracked. However this was not written in law and many organizations didn't always keep their word. Google and other internet giants are agreeing to sign a bill to embed this "do not track" button to their search engines and would be required to "stop using the data about people's Web
browsing habits to customize ads, and have agreed not to use the data
for employment, credit, health-care or insurance purposes". They will still be allowed to use information for product development and market research. hopefully within the next 9 months this internet legislature will be passed by congress.
We have been talking about market research, product development, and how companies find and use information to develop marketing strategies and grow their company. This act if passed will give consumers back some control over their internet usage and buying habits, something we have been missing as of late. With all of the scandals involving Facebook and other internet giants this is a positive step for both companies and consumers.
More information can be found at: http://online.wsj.com/article/SB10001424052970203960804577239774264364692.html?mod=WSJ_business_whatsNews
We have been talking about market research, product development, and how companies find and use information to develop marketing strategies and grow their company. This act if passed will give consumers back some control over their internet usage and buying habits, something we have been missing as of late. With all of the scandals involving Facebook and other internet giants this is a positive step for both companies and consumers.
More information can be found at: http://online.wsj.com/article/SB10001424052970203960804577239774264364692.html?mod=WSJ_business_whatsNews
University of Penn Sues Sloan-Kettering
The university of Pennsylvania is Suing Dr. Craig B. Thompson, the head of Sloan-Kettering cancer research for stealing research information and starting his own company from the cancer research wing at UPenn. The statement is: "Dr. Thompson violated the university’s patent policy and the terms of
his employment “by failing to disclose to the university research and
discoveries that he instead provided to a for-profit corporation and
ultimately publicly disclosed in international journal publications,
both to the detriment of the university.”. The research was published in 2009 and 2010 and before they were Thompson's start up company Agios Pharmaceuticals had patented the invention. The damage is recorded at $100 million and could exceed $1 Billion in revenue for the school.
In class we have talked about business ethics and moral responsibility. We have also discussed patents and legal documents regarding inventions and products.
More information can be found at: http://www.nytimes.com/2012/02/23/business/dr-craig-b-thompson-head-of-sloan-kettering-is-sued.html?ref=todayspaper
In class we have talked about business ethics and moral responsibility. We have also discussed patents and legal documents regarding inventions and products.
More information can be found at: http://www.nytimes.com/2012/02/23/business/dr-craig-b-thompson-head-of-sloan-kettering-is-sued.html?ref=todayspaper
Google Goggles
Google is planning to release the Google Goggles. These goggles, or thick framed glasses are practically wearable technology. These glasses are comprised of a computer which when worn will stream images and information across the lenses. They will be able to give related information to landmarks, restaurants, as well as virtual reality games, GPS systems, and in time facial recognition software. These glasses will also have audio and video inputs. The one drawback as it seems is streaming advertisements present within the lenses. This is obviously a huge leap in the world of technology and "smart" products, but if any company is to make this giant leap it would be Google. The difficulty in passing this technology is with peoples privacy, both in advertising and facial recognition. It will be difficult for the government to regulate what is being seen behind these glasses.
More information can be found at: http://www.nytimes.com/2012/02/23/technology/google-glasses-will-be-powered-by-android.html?_r=1&hp
More information can be found at: http://www.nytimes.com/2012/02/23/technology/google-glasses-will-be-powered-by-android.html?_r=1&hp
Wednesday, February 22, 2012
High End Retailers Report Strong Profit - Stephanie Clifford
Reports were published about the sales and profit margins of Bloomingdale's, Saks fifth Ave, Macy's, Home Depot and Walmart. All retailers showed profit from this quarter but surprisingly the higher end retailers showed much better results. Walmart accomplished there success by drastically lowering prices and increasing its volume, while the high end retailers, who targeted consumers with a larger disposable income, showed great profit margins. Terry J. Lundgren, CEO of Macy's was quoted, "making decisions between filling up their gas tank or buying shoes or a handbag, that consumer certainly is more impacted.” on the subject of why they netted more profit. Walmart's target market encompasses all levels of income, but primarily low income families. These families are effected much more by the weakened economy, while the wealthier classes are not and can continue to buy luxury goods. Macy's net income rose 12% from a year ago, and credited a lot of success to their promotions and free shipping to online purchases. Saks sale of luxury items net income was increased to 48% to $37 million. Home Depot's net income increased 32% to $774 million while sales rose 6% to $16 Billion. All companies showed profit.
This report shows how low income families are being effected by the economic state we are experiencing and how demographics and target markets are capitalized on by high end retailers.
How Companies Learn Your Secrets
In class we have focused on how firms obtain and use consumer information. This article discusses Target's strategies for finding information. It follows Andrew Pole and his goal to target women in their second trimester of pregnancy. To stores like Target, all-in-one superstore, expecting mothers are the "holy grail". Their previous buying routines, some across multiple stores, begins to decline because of pregnancy and newborns. Target wants to intervene and make their store the only store an expecting mother uses. They find information by tagging each customer with a "Guest ID" and every purchase and visit is logged. From this information Target can analyze the buying habits, and to some degree determine the "Guest's" demographic and even if they are likely to be expecting mothers. This is termed Predictive Analysis, and it analyzes shopping habits and behavior. Target is one of the smartest and leading companies in this type of information analysis.
The scientific research behind this idea of analyzing the habits of people began at MIT with rats in a T-shaped maze. In the beginning these rats searched and figured out where the chocolate was. After repeated trials the rats became accustomed to the maze and the chocolate, and in turn decreased the amount of brain activity; essentially this maze became a habit, and less of a thinking activity. They call this emerging habit as "chunking" process combined to create a habit. This habit forming process has 3 steps: a cue which triggers the reaction and habit, a routine, which is the emotional or physical act, and finally a reward which makes the routine worth remembering, it is positive reinforcement.
This habit forming loop was introduced to marketing upon its public reception. One notable company that employed it was Proctor and Gamble for their product Febreeze (c). They went about advertising the wrong way, by trying to introduce a new habit, instead of working upon old habit routines. They added to spray of Febreeze to the end of a consumers cleaning routine where Febreeze was the reward and not the routine. this turned a dead product into one leading a market comprising of $1Billion a year in sales.
Target then started to employ this strategy by targeting the vulnerable moments in a person's life where their buying habits change, or at least are open for persuasion. These times are marriage, divorce, new homeowners, and the arrival of a newborn. Pole constructed a list of 25 items that frequent pregnant shoppers and compared all female guest shoppers at target and could rate them on the probability that they were expecting. They then focused these women with coupons and emails to buy newborn essentials at target. Once shopping at Target they would push for groceries and other products that these mothers would buy at Target, where previously they would have purchased other places.
These are just a few ways large companies are attaining information and using it to promote sales and increase value to their store. Target was a forerunner in this information analysis and their sales show, between 2002 and 2012 their sales grew from $44Billion - $67Billion.
More information can be found at: http://www.nytimes.com/2012/
The scientific research behind this idea of analyzing the habits of people began at MIT with rats in a T-shaped maze. In the beginning these rats searched and figured out where the chocolate was. After repeated trials the rats became accustomed to the maze and the chocolate, and in turn decreased the amount of brain activity; essentially this maze became a habit, and less of a thinking activity. They call this emerging habit as "chunking" process combined to create a habit. This habit forming process has 3 steps: a cue which triggers the reaction and habit, a routine, which is the emotional or physical act, and finally a reward which makes the routine worth remembering, it is positive reinforcement.
This habit forming loop was introduced to marketing upon its public reception. One notable company that employed it was Proctor and Gamble for their product Febreeze (c). They went about advertising the wrong way, by trying to introduce a new habit, instead of working upon old habit routines. They added to spray of Febreeze to the end of a consumers cleaning routine where Febreeze was the reward and not the routine. this turned a dead product into one leading a market comprising of $1Billion a year in sales.
Target then started to employ this strategy by targeting the vulnerable moments in a person's life where their buying habits change, or at least are open for persuasion. These times are marriage, divorce, new homeowners, and the arrival of a newborn. Pole constructed a list of 25 items that frequent pregnant shoppers and compared all female guest shoppers at target and could rate them on the probability that they were expecting. They then focused these women with coupons and emails to buy newborn essentials at target. Once shopping at Target they would push for groceries and other products that these mothers would buy at Target, where previously they would have purchased other places.
These are just a few ways large companies are attaining information and using it to promote sales and increase value to their store. Target was a forerunner in this information analysis and their sales show, between 2002 and 2012 their sales grew from $44Billion - $67Billion.
More information can be found at: http://www.nytimes.com/2012/
Friday, February 10, 2012
Google's Growth Strategy
An ‘Entertainment Device’ Is Expected From Google - David Streitfeld
In class we have been discussing different growth strategies. The four we have talked about are market penetration, product development, market development, and diversification. Market penetration is increasing sales of an existing product within an existing market. Product development is introducing new products in an existing market while market development is the reciprocal; introducing an existing product into a new market. Diversification is introducing a new product into a new market. The article is investigating Google's plans to introduce and finance an "entertainment device". Since Google predominantly makes its money from the internet and its search engine they understand that "as computing detaches from the desktop and laptop, the company cannot afford to be marginalized". This means they need to find entry ways into new markets and new products. They plan to enter into the hardware technologies. We have seen these attempts previously with the introduction of their Google phone, and attempt to create the Google TV. These are attempts at product development. They are building new products and introducing them into the current tech market. With the recent purchase of Motorola Mobility (c) we witness Google's attempt to generate new products and become a competitor in the hardware market. The only information released on this "entertainment device" is that its goal is "to connect everything in the home to the Internet, including light bulbs, speakers and TV sets"
More information can be found at:
http://www.nytimes.com/2012/02/10/technology/google-at-work-on-an-entertainment-device.html?ref=business
-BW
Tuesday, February 7, 2012
What Can We Expect for Social Networking in the Future?
The last article I posted mentioned two publicly traded social networking companies who will be growing extremely popular in the next few years so I decided to follow up and investigate these two new companies. I was extremely surprised to find out that these social networks belonged to Toyota and Pepsi.
Toyota plans to offer a private social network to Toyota users which connects the customer with their car, the dealership, and with the company. The user would receive personalized messages from the car and dealership in the same fashion as tweets. The network is called "Toyota Friend". It will link maintenance issues and communication from car to consumer. It is also compatable with Facebook and Twitter. This is Toyota's attempt to stay ahead of the technology curve and lead the auto industry into the future. After reviewing the stocks for both Toyota (ADR), NYSE:TM and Salesforce (CRM) it would be a mistake not to buy now. Stocks are trading at roughly 80$ per/share and are expected to rise to 130$/share by 2013. Toyota Friend is currently being tested and released in Japan initially with Electric Cars and plug-in Hybrids.
Pepsi is also going Social. They have invented and released prototypes of social vending machines. They are used to send "gifts" and personalize drinks to its customers. It allows customers to "pay it forward" and even attach a video message with the drink. It will also allow inventory and delivery to be monitored remotely by operators. These vending machines are fully touch screen. A few are being released in April around Chicago. This is just another attempt for competitive companies to stay ahead of the social curve.
More can be found at:
http://pressroom.toyota.com/releases/toyota+friend+social+network.htm
and, http://www.ramanmedianetwork.com/how-to-get-connected-with-social-pepsi/
-BW
Toyota plans to offer a private social network to Toyota users which connects the customer with their car, the dealership, and with the company. The user would receive personalized messages from the car and dealership in the same fashion as tweets. The network is called "Toyota Friend". It will link maintenance issues and communication from car to consumer. It is also compatable with Facebook and Twitter. This is Toyota's attempt to stay ahead of the technology curve and lead the auto industry into the future. After reviewing the stocks for both Toyota (ADR), NYSE:TM and Salesforce (CRM) it would be a mistake not to buy now. Stocks are trading at roughly 80$ per/share and are expected to rise to 130$/share by 2013. Toyota Friend is currently being tested and released in Japan initially with Electric Cars and plug-in Hybrids.
Pepsi is also going Social. They have invented and released prototypes of social vending machines. They are used to send "gifts" and personalize drinks to its customers. It allows customers to "pay it forward" and even attach a video message with the drink. It will also allow inventory and delivery to be monitored remotely by operators. These vending machines are fully touch screen. A few are being released in April around Chicago. This is just another attempt for competitive companies to stay ahead of the social curve.
More can be found at:
http://pressroom.toyota.com/releases/toyota+friend+social+network.htm
and, http://www.ramanmedianetwork.com/how-to-get-connected-with-social-pepsi/
-BW
Facebook Going Public at Peak Valuation: NIA
Since 2004 Facebook has steadily achieved compound annual user growth of 191%. They are currently valued at 100 Billion USD. They are currently planning to go public trading shares in May. The National Inflation Association has filed reports stating that this move to go public is very risky, "The American public needs to realize that Facebook at a valuation of
$100 billion has far more downside risk than upside potential.". Facebook's growth will continue to decline over the next few years while the overall social networking industry will grow by 61%. The NIA fears the same end result of MySpace will happen with Facebook. Their reasons are that the Price/Sales ration and Price/Earnings ratio are to high of a premium. Ways stated to help with this premium and continued market penetration is to expand in Europe and more importantly into China. However Chinese officials have blocked access to Facebook.
We are finding there are many risks and rewards associatied with Facebook's plans to go public. I hope to continue to follow this story as it develops.
-BW
More information can be found at:
http://bx.businessweek.com/facebook/view?url=http%3A%2F%2Fwww.rmndigital.com%2Ffacebook-going-public-at-peak-valuation-nia%2F
We are finding there are many risks and rewards associatied with Facebook's plans to go public. I hope to continue to follow this story as it develops.
-BW
More information can be found at:
http://bx.businessweek.com/facebook/view?url=http%3A%2F%2Fwww.rmndigital.com%2Ffacebook-going-public-at-peak-valuation-nia%2F
Wal-Mart Names New Chief Executive for China - Laurie Burkitt
Wal-mart is an ever increasing enterprise both within the United States and internationally. Recently the President and CEO of Wal-mart China, Ed Chan, resigned from the company. Wal-mart has named Greg Foran as the new CEO and president of Wal-mart. Wal-mart is going through a difficult time in China resulting from negative public relations. They were accused and cited for mislabeling regular pork for organic pork among other "deceptive pricing" discrepancies. This mislabeling landed 2 workers in jail, 35 detained, 13 store closings, and over 500,000 USD in fines. With a change in management Wal-mart expects to scale up in China and increase the sales. They currently operate "370 stores in 140 Chinese cities".
-BW
More information can be found at:
http://online.wsj.com/article/SB10001424052970204136404577207723629587432.html?mod=WSJ_article_MoreIn_Management
-BW
More information can be found at:
http://online.wsj.com/article/SB10001424052970204136404577207723629587432.html?mod=WSJ_article_MoreIn_Management
Markets Edge Down After 5-Week Rally
Since October of 2008 the stock market and the overall economy of the United States has been anything but outstanding. Starting around October of 2008 the Standard and Poor 500, or S&P 500, showed a great decline in its stock index and reaching its lowest point in march of 2009. In little over a year it dropped from roughly 1425 to 672, by more than 50%. However, since the bailout we have seen steady rises in the S&P 500 along with other stocks. Three years after the stock market crash of 2008 we are still not back to where we started but steady growths are being seen. Recently, in the past 5 weeks we have seen the S&P500 stock steadily increaseing. 60% of the 190 companies have reported quarterly results that surpassed expectations. S&P500 expects the stock index to reach 1400 by the summer.
We are still not completely out of the financial sinkhole of 2008 but we are showing great signs of improvement. More information can be found at:
http://www.nytimes.com/2012/02/07/business/daily-stock-market-activity.html?_r=1&ref=todayspaper
-BW
We are still not completely out of the financial sinkhole of 2008 but we are showing great signs of improvement. More information can be found at:
http://www.nytimes.com/2012/02/07/business/daily-stock-market-activity.html?_r=1&ref=todayspaper
-BW
Subscribe to:
Posts (Atom)