The Battle of Brand Loyalty - Samsung vs. Apple

The classic tale of the loyal cell phone consumer could be adding a new chapter in the months to come, according to market researchers. Ten years ago the world seemingly shifted course as the advancement of cellular technology took a cosmic leap with the debut of the first Apple iPhone and Samsung's F700 smartphones. Since then not only have consumers had their eyes fixated on the pixelated screens of their multifaceted smartphones, but they've also been waiting with palpable anticipation for the next-best version of their gadget to come along. But things are changing as consumers become more accustomed to such luxurious devices while technological development has seemingly plateaued. Now consumers are holding onto their smartphones just a little bit tighter being less likely to take the leap towards the newest models released by the two heavyweight brands. Sales have declined but a new opportunity has presented itself: a chance to pry steadfast brand-loyal customers away from their previous suppliers with the promise of better technology.

Samsung revealed their newest smartphone, the Galaxy 8, on March 29th. A spokeswoman for the company says that; “The Galaxy S8 is our testament to regaining consumers’ trust by redefining what’s possible in safety and marks a new milestone in Samsung’s smartphone legacy.” That "consumer trust" the spokeswoman mentioned Samsung hopes to regain with the S8, was tainted by the catastrophic failure of their Galaxy Note 7. The Note 7 not only blew up in the hands of customers but also in company profits, costing them $5 billion in manufacturer recalls. But Apple has faced their own woes as their iPhone 7 was largely rejected by consumers. The product offered very little (if any) innovation and what some considered to be a regression with the removal of their headphone jack. The market which had become lifeless may be resuscitated with Samsung's S8 debut, and by doing so they hope to capture Apple customers. Apple however will not go down without a fight and hopes to 'return fire' when they unveil the iPhone 8 commemorating the 10th anniversary of iPhone's debut. Technological advancements are highly anticipated with this newer version which Apple hopes will also swipe Samsung loyalists. 

Price may also be a factor in players switching sides. While consumers are looking to get the most 'bang for their buck' and have become hesitant to fork out such high costs for mobile devices. Samsung hopes their $750 price tag will improve their chances while iPhone prices are expected to remain high with a hefty price tag of $1,000.

The trilogy of price, technology, and brand loyalty may re-write the tale in a relatively stagnant market where consumers have rarely switched brands. Little brother Samsung hopes to step out of their big brother's shadow while Apple hopes to re-live their glory days. 2017 could prove to be an interesting year in the smartphone market, customers will just have to wait and see as the heavyweight bout unfolds!

Name: Joe Webb
Class: MKTG 3343
Article: Samsung, Apple Intensify Battle for Smartphone Users
Link to WSJ Article:https://www.wsj.com/articles/samsung-apple-intensify-battle-for-smartphone-users-1490952618

Disrupting the Norm in the Watch Industry

             

              The watch business is quickly switching from analog to digital- marketing-wise. Thomas Steinemann has been in the watch industry for 25 years, having experience working with the famous watch brand name, Fossil.  Seven years ago, he bought Philippe DuBois et fils, a small family-owned company established in 1785. Steinemann now was in the ring competing with other well-known watch name brands. After doing some research, he realized that “over 80% of the millennials are [making] buying decisions through the mobile phone.” He turned to the online environment for advertising instead of the traditional advertising methods.

               Steinemann saw that major luxury brands such as Rolex, Vacheron, and Constatin were not looking online for advertisement while other brands were online selling directly to customers. According to Luca Solca, the head of global luxury goods for Exane BNP Paribas, “Dubois is a pioneer and a potential disrupter” in a world where brands limit the products they sell through wholesale by selling their best, most innovative products in store in an effort to reduce wholesale discount and damage to brand equity. In 2012, Steinemann sold shares in the company online, leading to a current 800 shareholders with shares worth $1.5 million instead of seeking banks for funding.

               Another differentiating factor the DuBois has is that they make their production numbers and financial figures available for all to see on their website. Steinemann’s purpose in doing this because he believes transparency is a key to success, and he wants to be “very transparent about what we are doing and how we are doing it.”

               Steinemann probably studied other brands’ strategies using marketing research process and observations (primary data) and inside company data (secondary data). He is aiming to make DuBois watches specialty products and sought after just as much (or more) than their competition.  Whereas luxury brands use indirect selective (wholesale) distribution, DuBois uses direct distribution. Pros of their method of direct distribution is that they can serve target customers at a lower cost and have better control over the whole marketing job. The most prominent major advantage to this is that having direct contact with customers makes businesses more aware of changes in customer attitudes.

Original Article
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Rosa Sotelo

MKTG 3343

McDonald’s Taps Bob Rupczynksi as Head of Media and Customer Relationships

Fast-food chain taps data-driven ad executive to help it bolster its digital marketing efforts around the world.

McDonald’s Corp. has hired data-driven food marketer Bob Rupczynski as global vice president of media and customer relationship management to help the fast-food giant bolster its digital marketing efforts around the globe. Previously, Rupczynski has held lots of presidential positions from working with snack maker Mondelez International Inc. and Kraft Heinz. He helped both companies focus on using consumer data to better target their markets.

Silvia Lagnado, McDonald’s global chief marketing officer said “Bob brings deep experience in developing industry-leading capabilities which enable data-driven, real-time precision marketing. He will play a critical role in ensuring we apply rigor and discipline in the way we maximize the return on McDonald’s substantive marketing investment.”

McDonald’s has been working to bolster its digital marketing and technology in order to revive sales in the U.S. With the help of Rupczynski and his broad experience in marketing, he will be able to lead McDonald’s in increasing their investment. He will do so by determining McDonald’s target market and by using the 4 P’s he will create a plan in appealing to their needs.

Janelle Mendez

MKTG 3343

https://www.wsj.com/articles/mcdonalds-taps-bob-rupczynksi-as-head-of-media-and-customer-relationships-1490222838

Galaxy S8 First Look: Samsung Goes to Greater Lengths to Impress

Samsung has given customers a preview of their new Samsung Galaxy S8. It has made new improvements to their phone, by having a bigger screen, having a virtual assistant and being able to convert to a computer.  They have also slightly changed their look in order to make the phone look like a new design whereas Apple’s IPhone keeps having the same design.

The Samsung S8 is not bigger than the S7, but rather Samsung has gone away with the frame that holds the screen therefore they no longer have a home button, and they have increased the amount of pixels present on the screen. They also developed another model that is bigger in case the 5.8-inch screen is not big enough for some users.

Samsung has moved its finger print reader to the back of the phone, so users have to be careful not to touch the screen. They have also found new ways to unlock the phone by using a face read or an iris scan. The phone is water-resistant and uses the new standard USB-C plug in order for it to charge. Samsung has also opted to keep their headphone jack and expandable memory (which IPhone does not have). The back camera remains the same as the one from the S7. The talking assistant, Bixby, will be able to do all of the tasks that you would do by touching the phone just by hearing your voice. Bixby will be able to adjust brightness, identify products by using the camera, and be able to be used in some of the apps.

Samsung has also added an adapter to convert the phone into a computer, but it might run into some issues with some applications not being mobile friendly. They are hoping the Samsung S8, will replace the memory of the explosive Note 7, and give it a better advantage from their competitors like the IPhone and Pixel.

https://www.wsj.com/articles/galaxy-s8-first-look-samsung-goes-to-greater-lengths-to-impress-1490799679 

Facebook Ups it's Game to Face Newest Market Competitor

Facebook Ups it's Game to Face Newest Market Competitor 

As many users have already discovered, things have recently changed on Facebook's mobile platform. Upon opening my Facebook App the other day I was shocked to find their newest feature which shares an uncanny resemblance to Snapchat's social-media shattering breakthrough concept. Facebook's newest feature, "Stories", is a near clone of the Snapchat social media platform - even down to the new feature's title. The new 'Stories' feature utilizes the camera to take photos or short videos wherein the user can then share them and they will appear on the top banner of their Facebook friends main news feed, viewable for 24 hours after the initial post. The new feature also allows users to choose from an array of distinct filters and masks to make their Story more unique and appealing.

Facebook reigns king when it comes to competitor analysis in the social-media field. They have long been mimicking popular features from other mobile apps and incorporating them into their own app. Facebook has also incorporated many copycat characteristics into other social-media platforms which they own including most famously, Instagram and Whatsapp. As they say, "If you can't beat them, buy them," and the Facebook social-media powerhouse has done just that.

This new feature is another attempt to bring users back online where Facebook has recently seen a sharp decline in user activity. Combined with the fact that Snapchat recently launched their initial public offering this month (largely considered a bust by analysts), this may be Facebook's impulsive response to a potential threat in the marketplace. Could we perhaps see another large market acquisition by Facebook in the form of buying out Snapchat entirely? Only time will tell, but if the new feature enhances their overall product and proves successful in drawing users away from Snapchat and back to Facebook then I'd label it a high possibility. Facebook is continuously working to improve their product to appeal to their users and this is another large stride in furthering the strength of their brand.


Name: Joe Webb
Class: MKTG 3343
Article: Facebook, Eye on Snapchat, Adds Camera Features
Link to WSJ Article: https://www.wsj.com/articles/facebook-eye-on-snapchat-adds-camera-features-1490702404

Glencore PLC: The World's Leading Company in Zinc Production

Glencore PLC, a Switzerland-based multinational, is now the leading company in mining zinc and trading of essential metals for making steel. It is said that the organization controls half of the world’s trading of zinc metal and the basic materials from which the product is made. They have also expanded its production assets in this heavily traded metal as they expect it will become more widely used in developing countries. Yet, they have become richer by taking several mines out of production and withholding refined zinc from the market. Their strategy has driven prices of zinc metal higher. This risky plan helped reverse the mining-and-trading downward spiral that was affecting the company to bring more benefits and profits to their business. In fact, zinc prices rose to 7%  in October 2015 when the company said it was shutting down production amounting to 4% of global production of this essential metal.

Relevance to Marketing:

Glencore’s executives working together to shut down production and elevate their prices is a good illustration of the marketing concept. All of these individuals do their best to accomplish their risky strategy in order to make their company more profitable. To explain, reducing production in large facilities can result in economies of scale that lead to a higher average cost per unit; it potentially can enable a company to increase its prices. For instance, increasing prices can decrease the total number of units sold. Also, the competition concept is also fundamental in this article since Glencore is the leading company in mining and trading zinc, and almost no competition is present. Therefore, they could shut down some of their production with no problems at all as other companies do not offer the same quality and services.

Application to Other Businesses:

This article demonstrates that some leading companies with almost no competition are able to increase or decrease their production without any issues. Customers will still look for these organizations and pay their high/low prices with not hesitation since their unique products cannot be found in other markets.

Name: Javier León

Class: MKTG 3343

Article: The Magic Behind Glencore’s Recovery: Mastering the Zinc Market

Link to WSJ Website: https://www.wsj.com/articles/the-magic-behind-glencores-recovery-mastering-the-zinc-market-1489759358

Amazon Delays Opening of Cashierless Store to Work Out Kinks

A few months ago, Amazon presented its Go concept where customers scan their phones on a kiosk as they walk in and after they leave they are charged for the items they leave with and are electronically sent a receipt. These cashierless Amazon Go stores were set to open at the end of this month in the city of Seattle however, due to technical glitches, the opening has been delayed. There has been no comment on when exactly these convenience stores will officially open. 

Amazon has reportedly been working on getting the technical glitches under control. According to sources close to the company, the store will use cameras, sensors, and algorithms to track what customers are taking when they leave. The glitch is supposedly coming from this particular system not being able to handle more than 20 people at one time.

 These glitches aren't the only difficulty the online retailer will face in their new venture. Although they are trying to capture more food sales to broaden their influence in this market, they are not exactly experienced in anticipating and handling a flow of physical customers as well as products in a space. 

It will be interesting to see how Amazon manages to execute this concept of cashierless convenience stores and what it will mean for retailers like Walmart and Kroger who are now advancing the average grocery shopping experience with online orders and store front pick up. 
WSJ ARTICLE

Google Is Giving Parents More Control Over Their Children

A new software introduced by Google, Family Link, is now giving parents more controls over their children’s electronics. It is currently only a beta and will be tested on all Android devices running Android N, also known as Android Nougat. This software allows parents to remotely control their children’s devices all without having to lay a single finger on the device.

The software enables parents to control certain features on the device. This is only allowed for devices of children under the age of 13. Parents have an administrative account which controls all of the other accounts. They are able to set a timer on how long their kids can play games on the device. They can also set breaks from the device and a bed time which locks the phone and makes it inaccessible. The children’s accounts are also protected, meaning anything they search up in Google Chrome, Google play, and the YouTube app. Parents are also able to locate the phone is lost with the software.

https://www.wsj.com/articles/google-gives-parents-greater-powers-1489594364

Google Vows More Control for Brands Over Online Ads

Move comes after major U.K. clients withdrew spots after some ads ran ahead of extremist videos on its YouTube platform

Google said it plans to give brands more control on where their ads appear online after major U.K. clients withdraw their spots because some ads ran before extremist videos on YouTube. Tensions between Google and its advertisers have increased which has led to the advertisers pulling their spending from YouTube and the Google Display Network, a network of more than 2 million websites that partner with Google to serve ads. They could not be assured that the “environment is safe, regulated to the degree necessary, and additive to their brands’ objectives.”

The British government demanded Google officials provide an explanation about how they are going to prevent ads from appearing on inappropriate content. Google answered by saying they already have software that automatically scans YouTube titles and images to determine if they are appropriate for advertising; however, these can often be misguided because of titles and nuanced content. They are further working on better ways to monitor ad placement.

This relates to marketing with branding and the people side out of the four P’s. With British companies ad’s appearing before inappropriate content, customers may think that is what the company believes in and will not want to support that company because it goes against personal ethics and values. Companies are constantly spending time working on creating a perfect brand name and image, so this situation ruins that brand name which is making British companies unhappy.

https://www.wsj.com/articles/google-vows-more-control-for-brands-over-online-ads-1489789855

Janelle Mendez

MKTG 3343

The Dark Side of Facebook Live

The Dark Side of Facebook Live

            Back in April 2016, Mark Zuckerberg, founder of Facebook, with the help of his team brainstormed an idea to make his social media site livelier by having those who use his website to be able to stream their own live videos. After announcing the idea, two months later “Facebook Live” was brought into action and has increased the use of social media interactors on Facebook.

 There were very many beneficial factors with this new part about Facebook, such as showing others what you are doing at the moment and keeping updated with friends and family. With the fast production of having Facebook live happen, there wasn’t enough time to consider how this factor would also have negative consequences towards others. The consequence with this is that Facebook doesn’t exactly have the right to censor the videos published since they occur quickly. “According to a tally by The Wall Street Journal, people have used Facebook Live to broadcast at least 50 acts of violence, including murder, suicides and the beating in January of a mentally disabled teenager in Chicago.”

Users use Facebook Live to show aspects of their own social lives, advertise themselves through business and products, and is a big aspect of marketing for top notch companies. It is definitely difficult for Facebook to review and control every user’s video to make sure it doesn’t contain any graphic or horrifying events. Unfortunately to this day, Facebook still doesn’t have control over that, but they are working at their very best to tear down the numbers of the dark side of Facebook Live moments.

Natalie Torres

MKTG 3343

Changing Students Minds on Eating Healthy

Changing Students Minds on Eating Healthy

            When it comes to choosing a candy bar over an apple, most students would most likely reach out to the candy bar first without hesitation. They reach for the candy bar while knowing that the apple is a more refreshing and beneficial consumption choice. Behavioral scientist, nutritionist, and school boards are trying to come up with a solution to make that scenario explained above the complete opposite.

            Since the 1970’s, the obesity rate of children has tripled in numbers. Although schools can’t take the full blame for that, they do take part in the type of meals students eat for lunch from Monday through Fridays. The best way they are able to make a change to these kids’ diet plans without making it seem like they are going on a full-on diet is by using hidden marketing skills to promote the choice of healthy eating.

            A way to increase the consumption of fruits and vegetables is by bringing them into the classroom an hour before lunch as a snack. During that time, that is when students begin to start getting hungry and have no choice but to eat the healthy options if they are that desperate. Another beneficial factor is by bringing in a professional chef into the cafeteria to put in his input on healthy eating and cooking it to the point where it looks better looking than the unhealthy options. Along with that, keep track of what is being eaten and what is being thrown away. The way the food is being presented also plays a huge factor to whether it is chosen to be placed on a student’s tray. And the placement of where the vegetables and fruits in the cafeteria is presented makes a difference to whether somebody will grab it or not. If those items are placed before the entrees, there is a higher chance that it will be the first thing to attract the student’s eyes.

Natalie Torres

MKTG 3343

https://www.wsj.com/articles/how-schools-can-get-children-to-eat-their-vegetables-1487944388?tesla=y

NBA Stars Declare Self Marketing

NBA Stars Declare Self Marketing

            During the NBA All-Star weekend which was hosted in New Orleans for the 2016-2017 season, an estimate of 100 NBA stars came together to discuss wanting to self-promote themselves and represent their own image when it comes to marketing and profit. The basketball league has overall control and say when it comes to merchandise, video games, player’s footage, and other image products. As a result, the association “operates a $160 million a year licensing business,” this is more than twice as much than what the athlete itself makes as an income.

            Michele Roberts, executive director, wanted to resolve this issue and made negotiations for “a new collective bargaining agreement.” Just like the NBA players are able to make their own endorsements on products, like shoes for example. Roberts wants to make sure they are getting those same rights so they can personally brand themselves in the future and possibly make a brand out of their name.

            This would affect the production of bobble heads, trading cards, jerseys, and other merchandise mainly in the difficulty of getting permission to create these items. Now they not only have to go to the league to use their NBA trademark and names but to the athlete as well so they can be able to approve the image of what is being sold.

Natalie Torres

MKTG 3343

https://www.wsj.com/articles/nba-players-declare-independence-in-marketing-anyway-1487202436

Value of Sneakers in The Resell Market

The sneaker culture was first introduced around the mid-1980s. A majority of the people in the sneaker culture buy shoes to either collect them or resell them for a higher profit. Typically, someone’s drive to want and buy a shoe, is determined by the resell price giving them more value and making them more sought after. What determines the resell value of sneakers ranges through many things like the color way, quantity, collaborations, and materials/ technology used.

Shoe resell values depend on those many factors, here are some examples. The Nike SB dunk “Pigeon” was a collaboration between Nike and the street wear brand Staple in 2005, with only 150 pairs made, making it a highly sought after the shoe. The color way of the shoe, the quantity, and collaboration of the shoe gives the shoes a high resell value in the resell market. The Yeezy line, which is a collaboration between rapper Kanye West and the sportswear brand Adidas, is highly sought after due to the quantities made of each color way released, some being more limited than others. Because the shoe utilizes Boost material and is a collaboration, it gives the shoes a high resell value ranging from $500 - $1500 (store suggested retail is $220).

There are many factors that go into the value of shoes. Color way, quantity, collaborations, and materials/ technology used play a huge role in how much the shoes are worth. This is something that current or up-and-coming companies should be paying attention to if they want the next hot shoe in the market.

https://www.wsj.com/articles/the-collectible-sneaker-game-a-guide-for-obsessives-and-beginners-1484849746