Evolving Volvo

Volvo Targets Emerging 
Markets With New Trucks
September 25, 2012, 11:57 a.m. ET 

By CHRISTINA ZANDER

        In this article written by Christina Zander for the Wall Street Journal, the readers are introduced to Volvo's business plan to build on their global presence and develop a market in Asia for mid-priced trucks. The company's belief is that the creation of these trucks will help Volvo join a expanding merging market in places such as Brazil. This new strategy coupled with one of the most prominent truck makers in the world allows Volvo to expect success from this business venture. 

       Strategically, Volvo has figured out that by placing their product on a new market platform, they are reaching more customers and also broadening their business portfolio of various products. In order to compensate for their new venture, Volvo plans on cutting costs in mature markets and improving customer service, and adding dealers to their domestic market.

       "The new vehicle, announced Tuesday as part of a three-year margin improvement strategy spanning 2013 to 2015, promises to be a game changer for the Swedish truck maker, Asia-Pacific marketing chief Joachim Rosenberg said."

       I think that Volvo's plan is well-thought out and developed. They have taken into account where the openings are for them to grow, as well as, recognizing where they are spaces to reduce costs. The reduction of costs and the increase of sales, can only lead to a successful growth strategy.
      
       By utilizing a market development strategy, in which they are entering a new market with a existing product, they are taking a cautious risk. Obviously entering a new market can be a daunting task and is not for everyone, however, in this circumstance it seems that all the signs point to them prioritizing the correct opportunities.

       Hence, I believe that with the help of their mid-priced product, brand recognition, and strong domestic market structure, Volvo will be able to expand on their already fluctuating business portfolio.

Topics: Business Portfolio, Business Plan, Market Development, Domestic Market

Article found at: WSJ ARTICLE

Intel(ligent) or Not

Intel Rallies Firms With Tablet Chips

Updated September 28, 2012, 11:38 a.m. ET
By DON CLARK

      This Article from the Wall Street Journal speaks about Intel's attempt to branch into the Tablet Market. The article explained that for a while Intel has sat back and watched Dell and Microsoft control the smartphone and tablets. 

     While these other companies successfully garnered attention and gained market share, Intel pushed for their Ultrabook laptops. What they learned was that the market is changing and technology is moving into tablets and smartphones versus computers. From this, Intel has looked to compete with iPads. With the help of a new chip known as Atom z2760, detachable keyboards, and built in security, Intel hopes to use a differentiation strategy to breach the gap in of market unbalanced tilted towards Apple.
       
        Their goal is reach a market segment, in particular, the corporate world. They believe that the added bonus of security, long battery life, and management features will give them the edge in finding their share of market. "Intel for the past year has tried to respond with Ultrabooks, its term for thin laptops and convertible designs based on Intel's Core line of microprocessors. At an event here Thursday, the company stressed a different tack—using another chip line called Atom to create hardware with roughly the same size, weight and battery life as iPads and competing tablets."

       I think this article is a good example of various marketing concepts including product differentiation, brand competition, and product development. With the tablets already being a household product, it is crucial for Intel to differ from this competition in an appealing way that will give them a competitive advantage. Obviously branching into an existing market will broaden their consumer base, the question remains on if their previously established name in the technology business will help or hurt their cause. 
    
      Truthfully, I believe this will be a difficult field for Intel to break into. Despite, whatever success or failures that have happened to them as a company, the structure of the market is already established and new invites to the tablet party seem to lack possibilities. Therefore, I do not think that Intel will be able to create enough buzz to fight the big boys of apple.

       

Topics: Product differentiation, Market Segment, Competitive Advantage, Brand Competition, and Product Development


WSJ ARTICLE

Companies That Wear Their Brand on a Successful Sleeve

Soccer Still the Main Event for Advertisers

September 16, 2012, 9:37 a.m. ET

By SIMON ZEKARIA

This article from the Wall Street Journal focuses on the specific part of marketing known as advertising. While taking into account the comparisons of revenue from Olympic apparel to soccer equipment, one can see the drastic difference in success. Although, both gained millions of dollars worth of revenue, the amount that of attention a company receives for sponsoring a premier soccer team is incredible in comparison to Olympics as a whole. This is not to say that advertising through the Olympics is not successful because evidence proves otherwise, however, for one reason or another coupling advertisement and soccer teams tends to be a dynamic duo that does wonders for companies.  

“Companies hope increased exposure will help deepen brand recognition and improve shopper loyalty, thereby boosting profits in the long term.”

“A successfully branded international sports event can create a spike in sales and make all the difference to results. For the two most visible sports brands, Nike and Adidas, the commercial stakes are high as they look for spurts to offset potentially lackluster European sales, said Mr. Walker.”

While the companies’ strategies differ, for example Adidas typically sponsors events such as the World Cup, whereas Nike focuses on team contracts and endorsements, they both are extremely successful.  As a result, Adidas, expects 2.1 Billion in global sales in 2012 alone.  Ultimately, the battle to brand their companies on some of the world’s biggest stages intensify as the effects are increasingly successful from the sizeable exposure they receive.

I think that advertising using soccer is a brilliant idea. Despite the fact that as a soccer player I am biased, it is well known that soccer is the world’s most popular sport. With millions of fans, loyal followers, and soccer hopefuls, brand recognition is a crucial tool in differentiating teams. If you ask any player they will be able to tell you their preferred brand.  Due to these truths, the utilization of sponsorships and endorsements is a particular, and yet can be a broad market focus. Some people may pay for their favorite players jersey or others may buy the official world cup ball. Regardless of the reason, the amount of interested consumers continues to grow on some of the world biggest sport stages. 

The emotion and passion that follows sports will turn over into desire for products, and as a result companies such as Nike and Adidas will only feel the positive effects of pairing up with some of the biggest sport cultures in the world. From Barcelona, to Mexico, to Ghana, the love for soccer sees no boundaries.

WSJ ARTICLE
Topics: Brand Competition, Advertising

Wii(LL)U be Satisfied?

Nintendo's New Wii Has TV Ambitions

By DAISUKE WAKABAYASHI, SHALINI RAMACHANDRAN and DREW FITZGERALD

Date originally posted: September 14, 2012

Following a year or net loss, the Japanese based company Nintendo is looking to utilize several marketing strategies to improve their consumer outreach and success.  The Nintendo Company is hopeful that the revamp of their popular product the Wii, which has sold around a hundred million devices worldwide, will allow the company to regain some of the market that has been lost to smartphones and tablet games. To counter the technological shift that has altered the gaming console market, Nintendo has integrated social media, amazon, and Netflix through its new Nintendo TVii system. With these new features, design, and capabilities, the Nintendo Company is hoping to have applied a product differentiation strategy. Another part of their strategic is the selection of the release date for the Wii U. Having picked November 18, also known as, the beginning of the holiday season, Nintendo executives are hopeful that their product will create a holiday buzz. In the end, the Company believes that their strategies of combining tradition, with their adaptation to the market, and the exciting new technology will lift them from their recent struggles.

“As part of its broader entertainment strategy, Nintendo aims to use the controller, known as the GamePad, as a next-generation remote control that can navigate through online video and traditional TV options in one place while connecting users to social media. “

 Personally, I do not see this product as having a dramatic impact on the market, and for several reasons. I understand their marketing and business decisions, and see what their objective is, however, I just do not believe there is enough room in the market for another console. 

For starters, at three-hundred dollars value the Wii U will be a costly endeavor for people to purchase during these tough economic times, especially because none of their new technology is that outstanding. And although, I think it was wise to include social media outlets and Netflix to the product; these are both already incorporated to other products such as smartphones, tablets, and laptops. With that being said, I highly doubt many people will go out of their way to purchase another item that can perform the same tasks. Quite honestly, I think the gaming-console market has shrunk, and Nintendo’s percentage of that market has shrunk even more severely. Previously, Nintendo’s biggest competition was simply PlayStation and Xbox, and if that was not enough IPhone’s collaboration with interactive games have completely knocked them down the totem pole. 

Arguably, despite the fact that some of their decisions will garner some attention from fans, especially a pairing the release with a new release of Super Mario Brothers, in the end, I do not believe it will be enough to create a big enough ruckus to disrupt the current standing of companies involved in this market.  


WSJ ARTICLE

Topics: Product Development, Product Adaptation

Multi-Medium Movement

MTV Aims for Multitasker

PepsiCo, Verizon and Kraft Test Ads That Simultaneously Hit Different Platforms 

By SUZANNE VRANICA

September 5, 2012, 7:21 p.m. ET

     In the article posted in The Wall Street Journal written by Suzanne Vranica, one learns about MTV's idea of a new triple threat of advertising. Following the trend of social media's increasingly influential role in culture, MTV has created a multi-platform advertisement system called Reverb. Reverb allows companies to advantageously utilize MTV's television channel, mobile app WatchWith, and website all at the same time. By covering all three of MTV's major forms of medium companies such as Pepsi are able to reach a larger marketer, and more importantly, the multi-tasker. By incorporating three major mediums for marketing, companies are increasing their chances of reaching their targets by three-fold. 

     "About 84% of smartphone owners and 86% of tablet owners said they used their mobile device while watching TV at least once during a 30-day period, according to a Nielsen study done in June. Nearly half of those tablet-owners said they visited a social-networking site during a program."

    Their is a certain marketing beauty behind this type of advertising blanket. By involving mobile, Internet, and television, companies are broadening their market horizons. While a consumer may miss the website ad, they could very well see if the TV ad, and if that fails they have the mobile app as a double back-up.  

       The wider the spread of viewers, the more chances Pepsi, Verizon, and Kraft among others have to impact a person's desires for a product. I think this idea will garner a lot of attention, be duplicated by other companies, and will have a lot of twitter birds chirping about products. I believe this style of interaction with consumers will be positive for all parties involved. 

     The only possible downside I can see is if the consumers do happen to witness all three forms of advertisements and begin to get fed up with the overwhelming and inescapable marketing strategy. 

 

WSJ ARTICLE

Topics: Market Penetration, Advertising, Demographics

Underlying the Matteresses, Tables, and Desks

"IKEA's Hit Web Show: An entertaining Ad"

By BEECHER TUTTLE

September 7, 2012, 11:50 a.m. ET 

        After reading Beecher Tuttle's article "IKEA's Hit Web Show: An entertaining Ad," posted in the Wall Street Journal, readers are introduced to IKEA's hit advertising phenomenon. Three seasons deep the online show "Easy to Assemble," has allowed IKEA to make significant strides to create new, innovative subtle advertisements. The key to recent success is their decision to combine social media, celebrities, and entertainment without showing "advertisements." 

     While the setting of the show is in an IKEA store, the companies products, core values, and strengths are made visible to the viewers without interruptions of commercials. Rather, with "Easy to Assemble," the whole show is an advertisement. As a result, IKEA is discreetly showing millions of interested, targeted, and likely consumers the possibilities of their products and company. Although, the effects of the show are not clearly defined at this point, it is probably that IKEA could generate increases in consumer activity.

"According to a third-party analysis by Latitude Research, nearly 80% of the show's viewers are more likely to visit, recommend or purchase an IKEA product within six months of watching the show."

     In my opinion, the various companies executing this style of marketing are geniuses. By adapting to the culture of society and incorporating pop culture and social media into their marketing strategy they will be able to reach bigger markets and greater success.

     As an avid user of social media sites, I am well aware of the power that these medias have over people. Therefore, I believe that by utilizing "Easy to Assemble" and its underlying advertisements, IKEA is easily assembling a strong following and even stronger brand recognition strategy.


WSJ ARTICLE

Topics: Advertising,  Target Market