Week 8 EOC: Subliminal Advertising

      Subliminal advertising--hidden messages embedded in ads--is considered a deceptive business practice by the Federal Trade Commission. Yet a legal kind of "subliminal" persuasion happens every day. Shoppers are regularly encouraged to buy by appeals to their senses or unconscious assumptions. I recently carried out a series of research experiments to uncover the ways advertisers burrow beneath our rational minds to get us to pull out our wallets. Here are five techniques used to mess with our minds that you should know about. Some TV remotes and MP3 players on the market today would weigh half of what they do if they weren't stuffed with completely useless wads of aluminum. Customers believe the heavier objects they're holding are more sturdy and substantial. As a result, they're willing to pay a higher price for them.This simple act, which caught on like wildfire, is generally credited with helping Corona overtake Heineken as the best-selling imported beer in the U.S. market.
"the company is now moving forward with a ‘multifaceted campaign’ aimed at conditioning youngsters to be loyal enthusiasts of Shell products" (1)

The more stressed-out we are by the financial crisis and other problems, the more we unconsciously adhere to familiar, comforting rituals. Marketers know this full well and exploit it.

Music also can direct us to certain products.
In fashionable marketing circles, it has become acceptable again to speak openly about harnessing consumers’ brain waves for commercial ends” (2)

 For example, it can determine what kind of wine we pick up from the shelves. A large food manufacturer once tested two different containers for a diet mayonnaise aimed at female shoppers. Both containers held the exact same mayo, and both bore the exact same label. The only difference? The shapes of the bottles. The first was narrow around the middle and thicker at the top and on the bottom. The second had a slender neck that tapered down into a fat bottom, like a genie bottle.

Credit: 

1)http://www.snopes.com/business/hidden/popcorn.asp

2) http://www.telegraph.co.uk/science/science-news/6232801/Subliminal-advertising-really-does-work-claim-scientists.html

Week 7 EOC: RetaiL PEST

Polo


Political-

Globalization has been a current trend to every industry which also includes the apparel and fashion industry in which is due to the construction of import international facilities and establishment.

It has been noted that when products are traded regulations and policies are present. With these regulations and policies, company’s operations may be impaired. Some countries also control the entrance of foreign companies which would also affect the process of operation of these companies. Large tax implementation is one of the controls that government usually pursues. With such government control many companies are impaired and usually can not operate on those countries.In the case of the regulations in the retail industry it has negative impacts because the regulations in the retail industry could easily be changed beyond the established limit and will affect the business adversely, in addition companies such as target will obtain higher costs in expenses due to the changes.

Economic-


During the period of 2011 to 2013, a change in consumer preferences in apparel is more apparent. Many underground sales of unbranded apparel are very common. It even extends to the export of these apparel to many Asian countries.Another factor that would affect the external environment of Target is the US economic growth; the rapid or slow growth may have a positive or negative impact on the business. If the growth is fast then consumers will have higher purchasing power, on the other hand, if the economy is very slow then it will also have an effect on the attitude towards purchasing products. Another is the low-cost destinations sourcing; it will either affect the economy positively or negatively. Positive, in the sense wherein the company will have more consumers because of the cheaper products offered. On the other hand, the local suppliers would be affected because the company prefers outsourced products.


Social Demographics-

With the increasing globalization of business, society has also been more concern with the degradation of the environment and a continuous concern for the benefit of the employees. The society has call for attention to industries for social responsibility. This includes human right protection of corporate employees, consideration for the health and safety of consumers, and contribution to local communities.And with the increasing global environmental issues that arise with the globalization, people are now increasingly aware of the effects of the continuous industrialization.

Technological-

It has been noted that apparel and fashion industry has experience a rapid technological changes over the years. This fast changes has lead to a more sophisticated, with a significant apparel and fashion items present in the present time.  To provide comfort and aesthetic value, while still being friendly to the environment, these new fashions use the latest developments of many different technologies.

Credit: http://www.ralphlauren.com/frontdoor/index.jsp

Week 7 BOC: Largest Retailer

 

TOP 10 Retail Companies Based in the U.S. Ranked Among the 250 Largest Retailers 

In the World:
 

 

#1    Wal-Mart

#5    Home Depot, Inc.

#6    The Kroger Co.

#8    Target Corp.

#9    Costco Wholesale Corp.

#11   Walgreen Co. 

 

Minneapolis-based Target Corp., the nation's third-largest retailer, reported profits up 3.7 percent to 

$704 million for the quarter ending July 30 over the same quarter last year. Although profits for 

Wal-Mart Stores Inc. were even better — profits for the quarter were $3.8 billion, up 5.7 percent from 

a year ago — the company's sales at U.S. stores open for more than a year fell for the ninth 

consecutive quarter. (1)

"Target has really regained its mojo, and Walmart has lost it," said Craig Johnson, president of 

Customer Growth Partners, a research firm that covers the retail industry. 

 

          

           Target Corp. is a very good example of the world largest retailer. Target has its own style in 

the retailer industry. Back to the days Targets , Walmart and K-mart were competed with each other. 

Sadly K-mart was the one that get kicked out of the game. Target was smart enough to not against 

Walmart face to face. Target chosen to provide a better shopping environment, products quality and 

rise the overall price to make more high-income people to come to shopping. They did it really well 

and saved the company. Now days, Target has 1,788 stores in the U.S and 68 stores in Canada.








Credits:

http://www.npr.org/2011/08/19/139793948/target-takes-aim-at-walmart-with-some-success

 

Week 6 EOC: Rock Ford - Rebrand the Brand

         
           Nearly a year after the nation's deadliest foodborne illness outbreak in more than two decades, Colorado cantaloupes are back in supermarkets. Farmers near the town of Rocky Ford are going on the offensive to restore the fruit's reputation a year after melons from one of the area's farms caused a nationwide listeria outbreak. They have banded together to trademark Rocky Ford melons and fund $800,000 worth of safety upgrades to prevent future outbreaks, but they must convince buyers that the melons are safe. (1)
          
           To get Rocky Ford brand back to the market we have to improve the brand and get the brand where it used to be prior to the crisis, they need to take more actions to get customer to trust them again. “Companies need to do their research.  And they need to be responsive to their consumers – and respond to their wishes"  (2)

            Rocky ford needs to respond to their customers right away and work with media very closely. They have to give out some important promisses to get back their brand reputition. Also to make them happen not just a empty promiss.

After being washed, the melons will be cooled to reduce condensation and then packed into boxes labeled with codes traceable to the fields where the melons were grown. The boxes will be packed with slips that interested shoppers can scan using a smartphone to read about where their melons originated. (3) 

Credit: 

1)http://bigstory.ap.org/article/colorado-cantaloupes-return-growers-push-safety
2)http://www.foodsafetynews.com/2012/08/colorado-celebrates-recovery-of-rocky-ford-cantaloupes/
3) http://bigstory.ap.org/article/colorado-cantaloupes-return-growers-push-safety
       
           

Week 6 BOC: Tylenol Scare 1982

In the space of a few days starting Sept. 29, 1982, seven people died in the Chicago area after taking cyanide-laced capsules of Extra-Strength Tylenol, the painkiller that was the drugmaker's best-selling product.

Marketers predicted that the Tylenol brand, which accounted for 17 percent of the company's net income in 1981, would never recover from the sabotage. But only two months later, Tylenol was headed back to the market, this time in tamper-proof packaging and bolstered by an extensive media campaign. A year later, its share of the $1.2 billion analgesic market, which had plunged to 7 percent from 37 percent following the poisoning, had climbed back to 30 percent. 

It placed consumers first by recalling 31 million bottles of Tylenol capsules from store shelves and offering replacement product in the safer tablet from free of charge.


"Before 1982, nobody ever recalled anything," said Albert Tortorella, a managing director at Burson-Marsteller Inc., the New York public relations firm that advised Johnson & Johnson. "Companies often fiddle while Rome burns." 



They recalled every single Tylenol painkiller around nation wide and trash them.

They told their customers throw old Tylenol away or switch them for new one without a charge.

They started use new package with metal seal under cap.

They worked with media really close to save their brand name.


Painkiller brands are all about names, you can buy other house brand for way cheaper at drug store
 and does the same function. People paying more for you brand name beacuse they trust your brand.
So Tylenol worked so hard to save their brand name and they did really good job on it.






Credit:


http://www.nytimes.com/2002/03/23/your-money/23iht-mjj_ed3_.html

Week 5 EOC: Trend Production

       Fashion trend forecasting resources help predict trends in the fashion industry. Fashion & trend forecasting is the prediction of mood, behavior and buying habits of the consumer at particular time of season. It is no longer a question of finding your markets or consumers by age, geography or income, but looking into how and what they buy, based on their culture, mood, beliefs, occasion & geographic locations, it is also dependent on fashion cycle and plays a major role in introductory phase of recurring fashion cycles.

 

       Understanding fashion trends forecast is one of the most arduous and calculative work for all, I know most of top business houses around the world totally rely on designers for understanding the same, but on the other side there are others who dont believe in it at all.(1) In current times when we look at technology we know nothing is by chance and there are people who are working behind the scenes, day and night to make things appear easy and affordable to us. Question which often comes to our mind is which trend forecast to use and how we can understand it better. Many technological forecasting methods have been reported in various forecast related books & mentioned in literature of many countries, and they have been successfully applied widely. As trend forecasting results are mainly influenced by the forecasting method used by the end user, it is of utmost importance to determine the method that will be most appropriate to a business model you adopt. Lets identify the main factors affecting Fashion trend forecasting. Each season, the design and merchandising departments worldwide are waiting whats in trend for coming seasons. They rely heavily on creating a new line using these valuable data collected by professional agencies. (2)

       The agencies & Manufacturers may ask consumers directly about their buying preferences or can look in to their buying habits over a period of time. Consumer reactions are recorded and documented to find preferences for certain garments or accessories, sizes or colors and so on ,or products to fit specific consumer tastes. Surveys, by phones, mail or customer feedback forms are conducted by publication and market research companies for manufacturers and retailers. These surveys include questions about life-style, fashion preference, income, and shopping habits.(3) Customers are usually selected by the research firm to meet with manufacturers or retailers. Informal interview with consumer can help researchers obtain information by simply asking customers, what they would like to buy, what styles they prefer that are currently available and what changes in merchandise they want, but cannot find. Owners of small stores can often do this most effectively, because of their close contact with their customers.

Credit: 

1)http://www.nytimes.com/2013/08/27/fashion/how-to-tell-the-fashion-future.html?pagewanted=all&_r=0

2)http://www.forbes.com/sites/carolpinchefsky/2013/01/15/fashions-biggest-trend-in-2013-2015-as-predicted-by-ibm-steampunk/

3) http://www.nytimes.com/2013/08/27/fashion/how-to-tell-the-fashion-future.html?pagewanted=all&_r=0

Week 4 EOC: McDonald's Response to Super Size Me

How did McDonald's response to super size me?

            In a sign of the times, McDonald’s is getting rid of the extra-large portions that had become one of its signatures. The burger giant said it has begun phasing out Supersize fries and drinks in its more than 13,000 U.S. restaurants and will stop selling them altogether by year’s end, except in promotions.

           After we watched the documentary "super size me" was talking about a man explained how unhealthy McDonald's menu. He showed us how unhealthy their food is. After the documentary has  been published. McDonald was getting so many complains so they had to take their super size out of their menu which means you can not get any 7 ounce of fries from them anymore. On the other hand, McDonalds are providing more health food like salads, fruit, vegetables and yogurt. Also, they are providing apple for their happy meal which means kids are getting more healthy food if they parents decided to get some McDonald for their kid. McDonald hasn't response it officially but they did changed their ad campaign from eat burger and fries to eat salads. McDonald’s added entree salads with great success last year and has been moving to provide more fruit, vegetable and yogurt options with its Happy Meals. But the Oak Brook, Ill.-based company remains a lightning rod for public criticism — and legal action — when it comes to obesity and other health worries.

                Two lawsuits claiming McDonald’s hid the health risks of eating Big Macs and Chicken McNuggets were thrown out in federal court in New York last year. An award-winning documentary called “Super Size Me” then reaped more unwanted publicity for McDonald’s. The documentary, which chronicles the deterioration of filmmaker Morgan Spurlock’s health during a monthlong experiment eating nothing but McDonald’s food, won a directing prize at the Sundance Film Festival and is set for wide release this spring.

We all know Mcdonald doesn't providing healthy food and why bother to eat them? I think this is your choice between healthy food and processed food.








Credit : 
http://www.nbcnews.com/id/4433307/ns/business-us_business/t/mcdonalds-phasing-out-supersize-fries-drinks/%23.UfmY-b_y-zY#.UgIKDlOkAY0