Shutterfly

In the last five years Shutterfly has been “helping people share life’s joy” through a combination of acquisitions, innovations and integrated marketing techniques. Although printing pictures has been decreasing during the last decade, Shutterfly has increased its sales by 20% every quarter since 2009 and now holds a 50% market share in the photo products and services category.

Established in 1999, Shutterfly has survived several economic downturns and technological innovations. This was accomplished due to their willingness to take risks. The company acquired both Kodak and Fujifilm’s web photo-sharing businesses which brought with it 75 million member accounts. In addition to these acquisitions Shutterfly has expanded their brands from one to four—Shutterfly, Tiny Prints, Wedding Paper Divas and Treats. Nevertheless, Shutterfly CEO Jeffery Housenbold foresaw threats from new technologies like smart phones and tablets. In the last three years there have been more photos taken than all the time before and most of them by mobile devices. For that reason Shutterfly launched a new mobile app in December of this last year for people to not only order prints but also share photos; thus, making them competitive with the likes of Insagram and Flickr. Finally, in addition to Shutterfly’s acquisitions and innovations, their success stems from sensational marketing techniques. Between their eye-catching orange packaging, daily promotional emails and quantity discounts, Shutterfly has poisoned themselves for long term success.

Here is a link to a Shutterfly Commercial

http://youtu.be/6ea7NvYg7BM

Here is a video of an interview from CNN with CEO Jeffery Housenbold

Marketing Interest in Pinterest

I am sure you all have heard of the picture sharing site called Pinterest! This site causes women (and some men) to look at their computer/mobile devices all day. I can admit I am one of these guilty addicts. Pinterest is a place where you can literally bookmark and categorize anything that you are interested in on your own profile. You can also see "pins" from everyone else that has a Pinterest account, including your friends you are following. For example, one of my friends "pinned" a picture of a jacket from Guess that I thought was fabulous, so I decided to "repin" the picture of the jacket to my profile onto one of my categorized "boards" about clothing. This is honestly a site to get inspirations and get shopping! This site has become so extremely addictive to its target market; (of mostly women) businesses from all over are using Pinterest as a marketplace! Not only is Pinterest a great platform for your own individual use, it is now being used as a source of marketing for many brands. For instance, Nordstrom has their own team that basically makes boards to showcase their products during the different seasons. Some companies like Urban Outfitters have their own bridal collection, so you can get inspired and plan your entire wedding on Pinterest! In today's technological world, it is easy to see how big of an impact social networking media can have on retail and advertising environments...Keep Pinning everyone!!!
Here is a video about Pinterest:

Pirvate Label vs. Brand Name Products

We have all shopped at Wal-Mart, Smiths, or some other local grocer and seen private label brands such as Westerner Family or Wal-Mart’s Super Value brand right next to popular brand name products.  Are these products of less quality? They are, after all, cheaper than the brand name cheese, milk, canned fruit or whatever it may be right next to it. 
Private Label brands, also known as store brands or retailer brands, have come a long way in the last decade. Not only the quality of product but also the packaging of the product has improved. You’ll see private label brands with very similar packaging to its branded counterpart. Turn these packages over and you will see the same similarities on the ingredients label. In some cases these similarities are because the same manufacturer of the branded product produces the private label product. My fiancé works at Darigold, a large Co-Op that produces a variety of brand name dairy products. However, “Darigold” milk, creamer, butter, cheese, yogurt and sour cream are not the only brands they manufacture. Darigold has teamed up with large private label brands to produce their dairy products as well. These store brands include: Wal-Mart’s Super Value, Safeway’s Lucerne, Western Family and Vans IGA. The dairy product is of no less quality compared to Darigold’s brand name; in fact, they use the exact same product and just put the store brand label on the packaging. 
Buying private label is not only advantageous to us as consumes but also profitable to the retailers. A study by the Private Label Manufacturers Association found consumers save 35% when buying private label. Likewise, retailers selling their private label brand gather a 35% profit margin compared to just 25% on brand name items. Nevertheless, given the quality of private label product, we are all guilty of buying the more expensive alternative. This is most like due to brand loyalty, product image, or product packaging. For instance, you will not find cutting edge, innovative packaging on private label brands such as Hiez Dip & Squeeze ketchup package. In any case, private label products are of high quality and a good consumer choice when you go out on your next grocery run. 

The Conscientious Approach and CSR

In a previous post, I talked about the significance of social responsibility, and now I will dig a little deeper into the the increasing pressure on organizations to maintain a certain element of responsibility in their practices.  These external pressures relate to human rights, environmental preservation, green house gas emissions, product stewardship, employee and public safety, etc.  The instantaneous medium of the Internet exacerbates this issue as companies are now exposed to an unprecedented element of transparency.  Acknowledgement of the voice and demands of the customer as well as an organization’s performance is much more important today. A good approach for a business to be socially responsible is the conscientious view because if a company gives back to the community, usually, the community will support their business. Then again, some less profitable businesses may have to practice a minimalist approach if they are not financially capable to practice the conscientious approach.

The expectations for organizations have increased dramatically, which is transforming social responsibility programs from a nice-to-have marketing approach to a fundamental expectation of customers. For example, a recent IBM study indicated that up to 60% of consumers take into account social responsibility when making purchasing decisions. Companies that believe that they have a responsibility to help society beyond just paying taxes and obeying the law can make large profits from the community. For example, Whole Foods practices the conscientious approach and they are the most profitable large grocery chain in the United States. Social responsibility programs, however, can be resource intensive, resulting in additional operating costs to the business. How companies benefit from the investment in social responsibility varies on the type of business, the targeted consumer, and the emphasis they place on their program.

The conscientious approach is when business leaders believe that they have goals outside of only making a profit, and they support this view by philanthropy and strategic CSR. Most organizations have some element of social responsibility, but extent varies from organization to organization. The amount of discretionary effort a company demonstrates beyond mere compliance is normally a balance between economic, social, and environmental factors. 

The conscientious approach can markedly improve the public’s image on a company, the company’s profits, and the company’s economic benefits. This approach does not have to negotiate returns or profits for investors. Other organizations however, may take social responsibility to the extreme which may not be in the best interest of shareholder return.  The products and services associated with a strong focus on social responsibility are many times derived at a premium cost, which may not always be passed along to the consumer. For example, consumers probably wouldn’t be willing to pay a premium price for a cup of Starbucks coffee during strained economic conditions.

The combination of public expectations, interest group activity and instantaneous global exposure in media, such as the Internet, makes it almost impossible for an organization to avoid having a social responsibility program.  The extent to which a business exceeds minimum expectations should be based on the return expected from the investment.  For example, if the targeted consumer group typically has high expectations for social responsibility, such as with organic foods, then the organization is best served by meeting these expectations and leveraging their social responsibility program in the market place.  If expectations for a robust social responsibility program are not driven by the consumer, then an organization should set their target at or just above minimum expectations. In short, organizations should stride to practice the conscientious approach if they are financially capable because this approach is really beneficial to society. On the other hand, if a company is not able to follow the conscientious ways, then they should try to strike a balance between economic, social, and environmental factors so at the end of the day, the business grows and shareholder return is sustainable over time. 

Here is a video of John Mackey, the CEO of Whole Foods, talking about their conscious approach!

Pier 1 Imports

During holiday season the amount of marketing done through newsprint, TV, and radio increases dramatically. From Thanksgiving through Christmas the average consumer is inundated with advertising.  One of the holiday advertisements that captured my attention last holiday season was the Pier 1 Imports commercial. In their 2012 Christmas commercial their home furnishings come to life and literally speak to the customers in the store. The reason I find this particularly creative is because they are building on the figurative expression “speaking to you” and making it literal. The term speaking to you is often used in the art world, meaning a person really likes or becomes connected to a work of art then the piece of art “speaks to them.” In my opinion, I find Pier 1's ability to use figurative terminology in a literal translation to be creative and effective. Pier 1 is banking on the concept that people like to feel connected to their home furnishing purchases. In the particular commercial I viewed, the home décor came to life and struck up conversation with a customer seducing them to bring them home. As a consumer, I consider Pier One’s advertising to be top notch and appealing and it always makes me want to go into their store and buy some decor. The company typically promotes a warm, comfortable, and inviting shopping environment in their advertising. Now that they are supplementing that approach, home furnishings and furniture that have personal conversations with customers only makes Pier 1’s television advertising that much more influential.

S.U.C.C.E.S.S.

In Gladwell’s bestselling book The Tipping Point, he suggests that in order for a change of epidemic proportion to occur, the message underpinning the movement needs to be “sticky.”  By sticky, Gladwell implies that the idea is either so appealing, motivating, or memorable that it will influence a person’s behavior.  The stickiness factor says that messages must have a certain character which causes them to remain active in people’s minds.  When an idea, concept, product, etc., is considered to be sticky to a significant population of people, epidemics happen.  This is a key aspect of successful marketing tactics today.

Authors Chip and Dan Heath extended Gladwell’s concept in their book Made to Stick.  They basically broke the stickiness concept down into fundamental components in the acronym Success (Simplicity, Unexpected, Concreteness, Credibility, Emotion, and Stories).  Their message is in order for something to “stick” it should meet as many of the following criteria as possible.

First, the idea or concept needs to be simple.  Complex ideas or concepts are too difficult to remember for most individuals.  The simpler it is, the easier it is for people to recall and recite.  Next ideas often stick if they have an element of surprise or in other words are unexpected.  Concepts consistent with people’s expectations don’t always get your attention.  Ideas need to be concrete.  That is, the more obtuse or vague an idea is, the more difficult it is to relate to and remember.  A concrete concept is also more credible in the minds of people which are therefore more believable and more attractive to our memory processes.  Ideas that appeal to a person’s emotions are also more likely to be memorable.  Anytime emotion can accompany logic, the chances of recognition and remembering are significantly increased.  Lastly, many ideas are best conveyed through messaging or morals such as in stories.  Often concepts are more understandable when supported by analogies that people can relate to their personal experience, values or mythologies.

A good example I can offer is the advertisements for supporting third world relief efforts known as financially adopting a child.  These advertisements meet most of the criteria suggested in Chip and Dan Heath’s Made to Stick.  Clearly the images of starving children appeal to a person’s emotions.  The program is simple but unexpected in that just a few dollars a day can save a child’s life.  The program is deemed concrete and credible by showing how the money you donate goes directly to the relief efforts of your “adopted” child and not towards bureaucratic administrative expenses.  The story component comes into play when you receive a pamphlet in the mail with the child’s personal story, history and pictures.

This is a video of Chip and Dan Heath's book Made to Stick.

New MSU Brand Mark

According to Pride & Ferrel's Marketing book, marketers must make decisions about products including choices about brands, brand names, brand marks, trademarks, and trade names.  After reading about branding, I started to think about Montana State University and how they have recently had to make some of these considerations due to their efforts to re-brand the Bobcat logo, or brand mark.  On April 17, 2013 Montana State University came out with the new logo for the school and for Bobcat Athletics.  Montana State now has a new bobcat head and letter M in a more modern style, which embodies the fighting spirit of the school.  The new letter M is in block style font still with some curves on the points of the M to differentiate Montana State University's M from those of Michigan State and Missouri.  The Bobcat head has a more compact and round shape, an eye that has more detail, ears that have obvious tips, and a mouth that is now white instead of all gold.  It was reported that MSU paid Torch Creative $18,000 to recreate the new letter M and Bobcat head logo. Athletic Director Peter Fields, announced that MSU will end up also having to pay over $50,000 to incorporate their new look in the football stadium and as well as other stadiums. So, why spend all this money for a few tweaks in the font of the M or to change the color and ears of the Bobcat you ask? Well, it’s all about branding and innovating products so that the brand can help the community/consumers identify specific products. In this case, Montana State is using a new brand mark so that people/consumers can determine Montana State from different schools.  This re-branding process that MSU went through was intended to represent and reflect the characteristics and dynamics of the teams at the university.  Peter Fields stated, "We see these new identity elements as an investment in the program, and they are truly unique to Montana State University and Bobcat Athletics." Fields also added that the coaches and athletes want the logo to reflect their success, while still honoring tradition.  The new logo represents action while remaining true to the original Aggie Spirit.  I am interested to see if the Bobcat community will respond the same once this football season starts to unravel.  Needless to say, this new brand mark will increase sales for Montana State due to the up sale in merchandise. Regardless if people like the new look or not, fans will want to sport the new logo due to their brand loyalty to the school. So everyone, it’s time to hop on board! Out with the Old and In with the NEW! GO BOBCATS!

What set of logos do you like better?  New or Old?