April 27 Recap

To Do:  View commercial videos in http://bongdeungria.tumblr.com   Sched for next month: May 4   - Lecture May 11 - Case Assignment May 18 - Midterm Exam on Concepts May 25 - 20-year Personal Marketing Plan   Discussed: Page 1 of commercial videos in above-mentioned website Dolphy Dolfenal 2005 - name recall and association but poor product purpose (Dolfenal for headache) John Lloyd Biogesic "Ingat" 2007 powerful tagline conveying the message that Biogesic is the safest pain reliever very strong even if the name John Lloyd is not connected with Biogesic (unlike Dolphy Dolfenal) would be difficult for other companies to use "Ingat" since Biogesic has already spent so much to own this position, hence they would need at least double the cost to own the position only concern is that the most recent airplane commercial seems to drop the tagline "Ingat" (can search for this in YouTube) Corned Tuna leading canned tuna manufacturer Century Tuna too complacent San Marina corned tuna entered with power endorsers and product innovation Century came with own corned tuna product in 2 weeks Century came with Derek Ramsay as endorser in 2 months San Marina and Century's competition in corned tuna affected related product corned beef, Argentina corned beef came out with Boy Abunda commercial claiming "corned" beef throne Century re-claimed "corned" tuna throne with Kris Aquino's 555 (Century's low-end) commercial Three movie cases to be discussed -- You've Got Mail, 50 1st Dates, Erin Brokovich You've Got Mail Part I - class played family feud, all teams got 1 point each Marketing strategy of Kathryn Kelly's Shop Around The Corner (SATC) -- what did it do right? wrong? Right -- location, personal/nice, storytelling, passion, knowledgeable, specialize/niche, homey/ambiance, loyal customers Wrong -- too complacent, not adaptive or too conservative versus competition, no promotions How can Shop Around The Corner survive growth? Intensive growth or market-penetration strategy (existing customers, existing products) Integrative growth or product development strategy (existing customers, new products) Diversification growth (new customers, new products) Promotions Was Tom Hanks' Fox strategy ethical? In what areas were there possible ethical issues? Joe Fox and kids visiting SATC:  ETHICAL Know sales $350k:  ETHICAL Opening just 'around the corner':  ETHICAL Planning to close down or drive out citibooks:  ETHICAL Offering low prices:  ETHICAL Fox not introducing himself during visit to SATC:  ETHICAL, as long as it's a public venue Pirating author:  UNETHICAL, although this was actually the author's decision Badmouthing competitor:  UNETHICAL, although this was committed by Kelly and not Fox Hence, FOX did not do anthing unethical. You've Got Mail Part II - what did Kelly do?  FIGHT by getting public sympathy, but became unethical: using boyfriend to write about SATC using media unfairly or in a biased way using children to rally against Fox Key Concepts from movie - choose among: 3 growth strategies -- intensive, integrative, divserification 5 modes of communication -- advertising (why buy?), sales promotion (buy now!), public relations (alibi), personal selling (1 on 1 buy), direct marketing (never say goodbye)... SATC only practiced personal selling, while FOX practice 1st 3 modes 4 textbook generic winning strategies -- low cost producer, supply and distribution leverage, differentiate, niche SATC cannot afford to give discounts. Fox has more superior supply and distribution system. SATC can no longer differentiate because of physical space constraint and Fox can easily copy. SATC should capitalize on its niche (children's books only?), change the rules and look for strategies that cannot be easily copied by Fox You've Got Mail Part III - execution: fight, close, merge after all the fighting and unethical measures, Kelly's efforts did not translate to SATC's profitability SATC eventually closed then SATC received merger offer from FOX Summary This movie case is applicable since such competition can be experienced both on a business and personal level. SATC:  "Everything starts with being personal." FOX:  "It's nothing personal, purely business." CONCLUSION:  Everything is business AND personal.  Always keep guard of your "brand" and position, and consider new entrants as threats, don't stop improving yourself or product offerings. Hope this helps. Best regards, ARIAN M. TROVELA Operations Research