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.