...Kazanci Southern State University Abstract In February 2007, a leaked internal memo written by founder Howard Schultz showed that he recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special. Either you have to cut price (and that implies a commensurate cut in the cost structure) or you have to cut distribution to restore the exclusivity of the brand. Expect the 600 store closings to be the first of a series of downsizing announcements. Sometimes, in the world of marketing, less is more. How Starbucks' Growth Destroyed Brand Value Schultz sought, admirably, to bring good coffee and the Italian coffee house experience to the American mass market. Wall Street bought into the vision of Starbucks as the “third place” after home and work. New store openings and new product launches fueled the stock price. But sooner or later chasing quarterly earnings growth targets undermined the Starbucks brand in three ways. First, the early adopters who valued the...
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...Written Communications McCafe Experience vs. Starbucks Experience In the past, McDonalds has tried to steal customers away from various competitors by marketing similar products that seem to be of similar quality but are cheaper, mass produced, knock-offs of the original. Once again McDonalds Corporation is trying to steal customers from other business and this time their target is Starbucks Coffee. McDonalds has failed to capture the atmosphere of Starbucks cafés, quality of beverage preparations and quality of coffee beans. McCafe is a poor attempt to usurp Starbucks from it’s rightful place as the world’s finest purveyor of coffee. McDonalds McCafe’s experience is a two dimensional, superficial, photo copy “like” rip-off of what has made Starbucks a special place. In the corner at some McDonalds you may find some overstuffed modern furniture, some bistro tables and chairs and walls clad with trendy looking artwork. There may also be a Starbuck’s look-alike pastry case filled with McGoodies. However, a few feet away there are still the institutional, resin seating areas filled with burger gobbling parents, and play areas rampant with their sugar laced, manic children, screaming with glee because this “is their kind of place.” There too, the atmosphere is enhanced by the aroma of over processed meat sizzling and greasy potatoes browning in overworked deep fryers. McWiFi is available if you want to surf the internet, but only if you can endure being there. ...
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...in Negotiations The Real Problem with Pensions Starbucks announcement that it will close 600 stores in the US is a long-overdue admission that there are limits to growth. In February 2007, a leaked internal memo written by founder Howard Schultz showed that he recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special. Either you have to cut price (and that implies a commensurate cut in the cost structure) or you have to cut distribution to restore the exclusivity of the brand. Expect the 600 store closings to be the first of a series of downsizing announcements. Sometimes, in the world of marketing, less is more. Schultz sought, admirably, to bring good coffee and the Italian coffee house experience to the American mass market. Wall Street bought into the How Starbucks’ Growth Destroyed Brand Value vision of Starbucks as the “third place” after home and work. New store openings and new product launches fueled the stock price. But sooner or later chasing quarterly...
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...accessories for residential and commercial clients. Best Buy didn’t always have these products and services available. They are an industry that changes with the times. They supply products that are in high demand by the consumers. Best Buy was started in 1996 by Richard R. Schulze and his business partner James Wheeler. It was originally known as Sound of Music and the first store was located in St. Paul, Minnesota. In 1983, the company’s name was changed to Best Buy and the first store named Best Buy was located in Burnsville, Minnesota. By 1984, there were only 8 Best Buy’s in the Midwest, but by 1987 the number tripled and their sales and earnings were at a high $239 million and $7.7 million respectively. And since they have money to spend, they increased their warehouse size and products. In 1985, Best Buy went public and then two years later they were listed on the New York Stock Exchange. By 1988, sales had doubled to $439 million, but net earning declined 64%.Despite the net earnings declining, revenues were still increasing well into 1989. Also, in 1989, Best Buy launched its Concept II stores with bigger show rooms, fewer sales people and more self help product information. From 1992-1993 Best Buy had the best...
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...Company G 1-Year Marketing Plan Student Name: Me Student ID: 00 Date: 4/18/2016 Student Mentor Name: Mentor Table of Contents Introduction 3 Product Description and Classification 3 Product Support of Mission Statement……………………………………………………………………………………………….….3 Consumer Product Classification 3 Target Market 4 Competitive Situation Analysis 4 Analysis of Competition using Porter’s Five Forces Model 4 SWOT Analysis 5 Strengths and Core Competencies 5 Weaknesses 6 Opportunities 6 Threats 6 Market Objectives 7 Product Objective 7 Price Objective 7 Place Objective 7 Promotion Objective 7 Marketing Strategies and Implementation 7 Product Strategies 7 Price Strategies 7 Place Strategies 8 Promotion Strategies 8 Explanation of Strategies………………………..……………………………………………………………………………………………….8 Implementation Plan 9 Product Tactics 9 Price Tactics 9 Place Tactics 9 Promotion Tactics 9 Monitoring Procedures 10 Introduction Company G is mainly known for its electronics, although combining our electronic expertise with innovative small-appliances will broaden and strengthen our brand. Therefore, Company G is expanding into the small-appliance market starting with the Omeletti. Product Description and Classification Company G’s Omeletti is a programmable omelet maker, where you put your favorite omelet ingredients in it the night before…and ala kazam…you have a perfectly cooked omelet ready for you in the morning! It has a refrigeration component...
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... In a nutshell they were always reactive and not proactive and they never considered that new entrants always seek market space that leaders ignore. To answer this question, I will try to answer the three major strategic marketing questions “Where to compete?”, “How to compete?” and “When to compete?” and apply my answers to Analyze Blockbuster case Where to Compete: * Blockbuster’s targeted the whole market of home movie viewers in the US. Afterwards, they started to target international markets. Blockbuster service their customers through rental stores and they kept using the same business model. However, they failed to understand the change in consumer behavior as people became more busy and don’t have time to visit their stores. * Netflix targeted same market but with different approach as they offered mailing system of movie rentals that go directly to customers and that was very convenient solution and they started capturing big market share from Blockbuster.. Accordingly, Blockbuster’s started online subscription and home delivery as a reaction to Netflix. In the future, Blockbuster’s should focus on market evolution and set strategic plans that differentiate the company and fits its strengths to changing customer needs. How to Compete: Product/Services Mix: * Blockbuster offered movie...
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................
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...McDonalds is a restaurant that specializes in fast food such as; hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes and desserts. McDonalds currently has 31,489 restaurants in 118 countries, and about 80% are run by franchises or affiliates. McDonalds competition in the fast food industry are; Yum! Brands Inc. In order to compete with its rivals, the company focuses on “being better, not just bigger” by making their products more affordable. Background Industry B Burger King- Burger King is the second largest fast food restaurant in the world. Burger King is the original Home of the Whopper, and is committed to premium ingredients, signature recipes, and family-friendly dining experiences. Burger King’s menu consists of hamburgers, French fries, soft drinks, milkshakes and desserts. Burger King competes in the industry by revamping their stores, and increasing their advertisement. History of Company A McDonalds is known as a pioneer in the fast food industry and is best known for their strong branding that is known in 119 countries around the world. The Golden Arches are the most recognizable brand including the clown called Ronald McDonald. In 1940, two brothers named Dick and Mac McDonald started the brand in California, which became very popular. A short time...
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...Associative Analysis 33 Limitations 37 Conclusions & Recommendations 40 References 46 Appendix 49 List of Illustrations Figures Page Figure 1.0: Sears Brands 5 Figure 2.0: Respondent’s Gender 21 Figure 3.0: Past Six Months Mall Visits 22 Figure 4.0: Clothing Stores 23 Figure 5.0: Percent of Respondents that Purchased Fitness Equipment in the Past Two Years 24 Figure 6.0: Fitness Equipment Purchase Location 24 Figure 7.0: Most Popular Sears Brands 28 Figure 8.0: Incentives to Increase the Probability of Entering a Store 30 Figure 9.0: Social Media 31 Figure 10.0: Facebook Presence 32 Figure 11.0: Gender vs. Mall Visits 35 Tables Page Table 1.0: Respondent’s Age 22 Table 2.0: The Appeal of the Kardashian Kollection to Females 23 Table 3.0: Perception of Sears 25 Table 4.0: Cause Marketing Practices 29 Table 5.0: Mall Visits vs. Store Location 33 Table 6.0: Price vs. Trendiness 34 Table 7.0: The Relationship between Perception of Service and Age 36 Executive Summary Objectives This study was an investigation of college students’ perceptions of Sears Department Stores. These included specific aspects that improved consumers perceptions of Sears, and what didn’t. These were also used to...
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...The internet, also known as the World Wide Web, is one of the greatest things created in our century. Many different concepts are based on the internet, one of which is electronic business. There are many advantages and disadvantages of doing business online, some of which include but are not limited to security, e-crime, e-money. A lot of recourses that are available online are able to provide people with help and support on how to start their own electronic business. In order to start e-business, a person needs to have an idea of what he may be interested in, as well as financial security. Also, good organization skills are important, as they allow the person to carry on all the way through, without giving up on the idea. Electronic business has a few subdivisions that are very important to know about when dealing with electronic industry. These subdivisions are electronic retailing and mobile commerce. Being familiar with E-retailing and M-commerce in detail will allow for a successful future in electronic-business. Electronic Business is any type of business that is performed over the Internet. Electronic transactions have three forms: business-to-business, business-to-consumer, or transactions within the company itself. Electronic business includes communication with business partners and clients through e-mails. Electronic business also offers a variety of different ways to trade and advertise different types of products and services online. E-business has different...
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...specifically targeted toward a specific population, it is the subtler aspects of mass surveillance and corporate and governmental intrusion of privacy which present an overwhelming threat to human rights and quality of life. As has been made clear by recent revelations of the scope and depth of these intrusions, internet users specifically have many reasons to suspect that private information entered online is vulnerable to un-ethical intrusions by third parties. However, many groups and individuals have come together to bring resolution to the issue of personal privacy and national security. According to article 12 of the Universal Declaration of Human Rights, no one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, or to attacks upon his honor and reputation (Lachmayer 749). However, the more subtle aspects of the new counter-terrorism age include a heightened amount of internet surveillance, video surveillance of public spaces, electronic eavesdropping, and data retention. Additionally governments have access to bank accounts, travel booking information, and data held in cloud storage (749). In other words, nearly every aspect of modern life can not only be monitored, but due to recent technological expanses, the captured information can also be stored for indefinite periods of time. The technological shifts which have made this large-scale eavesdropping possible, have also forced the wider society into a...
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...Strategy in Entrepreneurial Ventures A case study by, Arun Venkatachalam FT MBA 2009/10 May, 2010 Table of Contents 1. 1.1. 1.2. 1.3. 1.4. 2. 2.1. 2.2. 2.3. 2.4. 2.5. 3. 3.1. 3.2. 3.3. 3.4. 4. 4.1. 4.2. 4.3. 5. BACKGROUND ....................................................................................................................................... 3 Who or What is ‘LOVEFiLM.COM’? ................................................................................................. 3 Why are they considered a high growth entrepreneurial company? ..................................................... 4 Where they are currently? .................................................................................................................... 6 What is the basis for this report? .......................................................................................................... 6 BEGININING OF ‘LOVEFiLM.COM’ .................................................................................................... 7 The Innovative Online Business Opportunity ...................................................................................... 7 The Market Analysis of 2001/2002 ...................................................................................................... 9 Strategic Analysis of the Business Environment ................................................................................ 10 Competitor Analysis ...........................................
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...The Local Food Movement Benefits Farms, Food Production, Environment The Local Food Movement, 2010 Pallavi Gogoi is a writer for BusinessWeek Online. She frequently writes on retailing. Just as small family-run, sustainable farms were losing their ability to compete in the food marketplace, the local food movement stepped in with a growing consumer demand for locally grown, organic, fresh produce. In addition to supermarket giants following the trend toward locally grown food and devoting shelf space to such items, local foods are also finding their way into schools, office cafeterias, and even prisons. Although the trend toward organic foods has not waned, consumers are increasingly aware of the environmental impact caused when organic foods must travel to find their way to the local grocery store shelf. For this and other reasons, consumers are opting instead for locally grown counterparts, choosing to eat what is available in each season in their areas rather than purchasing food that must be shipped from other regions. Drive through the rolling foothills of the Appalachian range in southwestern Virginia and you'll come across Abingdon, one of the oldest towns west of the Blue Ridge Mountains. If it happens to be a Saturday morning, you might think there's a party going on—every week between 7 a.m. and noon, more than 1,000 people gather in the parking lot on Main Street, next to the police station. This is Abingdon's farmers' market. "For folks here, this is part of the Saturday...
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...------------------------------------------------- Executive Summary * Executive Summary The 2012 NSAC has chosen students to construct a campaign specifically for Wal-Mart stores to promote the sales of Glidden paint. Wal-Mart is one of the most prominent names in retail, while Glidden paint contributes a rich history of excellence in the paint market. Through both primary and secondary research methods our research provides information for the advertising campaign this following semester. Consumer demographics, purchasing habits, along with wants and needs, are all used to understand the potential market. Research on these topics is vital to the structure of effective advertising. By forming our focus groups we searched for deeper knowledge in the needs of paint shoppers and in the surveys we looked for more reasons people purchase paint and brand loyalty. We examined responses from painting professionals in order to compare results from nonprofessionals to see if these varied in any manner. The objective for getting into the Wal-Mart store was to pass out intercept surveys to the Wal-Mart shoppers. From the focus groups we found being able to match color, not having to apply many layers, customer service, quality, cost, and odor free are important to many shoppers along with word of mouth recommendations, however brand is not a concern. They believe adding jingles, and celebrities to a commercial will get people to buy the paint, and they would like to...
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