Disney's "Fairy" Tales

 Disney's Little Winged Creatures Take a Cue From Its Princesses

By CHRISTOPHER JOHN FARLEY

October 21, 2012, 9:26 p.m. ET

      According to the article, "Disney's Little Winged Creatures Take a Cue From Its Princesses," Christopher John Farley discusses the release of the Walt Disney Company's newest animated "fairy" tale. As a part of their business plan, Disney is looking to generate exposure to one of their strategic business units called Disney Fairies Franchise. Differing from their past princess characters in the Disney Fairies Franchise, little girls are exposed to a variety of diverse woman. By drawing attention to differences in size, ethnicity, and appearance counters the numerous attacks that Disney has faced over the years because of their constant barbie doll like characters.

   To be suit the potential of this film, Disney has made the decision to distribute the movie by going straight to DVD and Blu-ray in the United States, and then in theaters outside of the U.S.  
   
    According to Farley, the Walt Disney Co. has spread the Disney Fairies Franchise across the global marketing making the decision to distribute the film in foreign countries a strategic one that utilizes the product adaption strategy. Farley stated: "To date, more than 1,400 Disney Fairies and Tinker Bell books have been published in 57 countries and 33 languages, according to Disney, and over 1.6 million copies of Disney Fairies magazines have been sold."  

  

As this style of distribution follows the typical plan for the fairy movies, this movie brings about a new edge that has not been utilized by the Disney Fairies Franchise yet. This is the first release in 3-D for the Disney Fairies. Additionally, the featured characters of this film, including the new one Periwinkle, have already been incorporated to the Disney Theme Parks connecting several SBUs to one product. 

    Conclusively, If done correctly, the repositioning of Disney Fairies and the new and images they are portraying can really benefit their already pronounced dominance on the global market.

      I think that this move is just another example of the geniuses that work at Disney. Like so many of their decisions it shows their ability to separate themselves from any competitors by simply building off of products/ideas they already have. This article really focuses on some key elements of marketing that I think are important to the success of Walt Disney Co. 

     First, it addresses one of their SBU units in the Disney Fairies Franchise. Secondly, it centers in on the ideas of attention, perception, and exposure. These three tools for Disney are crucial to their constant global dominance.  For starters, they garner the attention of young girls by constantly providing them with new material, interactive websites, videos, and toys. Then, they expose their products in so many difficult styles between the distribution techniques, the toys, and most importantly, the theme parks. And lastly, in this situation they fight the critics who perceive them as harmful to young ladies because of the images they convey.

     By allowing the fairies to make mistakes and have flaws they are humanizing them which in turn, makes them more appealing. In my opinion, changing the perception of body image to young girls is vital to the future of Disney's success in princess animation. By appealing to the consumer preferences and adapting to social and technological changes, Disney continues to stretch the gap between themselves and their competition.  


WSJ Article


Topics: SBUs, Attention, Exposure, Perception, Distribution, Product Adaption Strategy

Crowd, Consumers, and Creations

Are Millennials Crowdsourcing Themselves Out Of Jobs?

Larissa Faw

10/22/12 2:26 P.M.

       In this article written by Larissa Faw for Forbes.com the readers learn about the concept of crowdsourcing which with the advent of internet and advanced technologies has become increasingly popular. Crowdsourcing, by definition, means the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community rather than from traditional employees or suppliers. Historically, this technique was used by start up companies and small businesses who could not afford the same luxuries as members of the Fortune 500. 

However, as recently, companies such as Campbell's, Coca-Cola, and McDonald's have utilized this style of marketing in hopes of reducing costs and engaging consumes.


      While the companies such as Lay's have received eight million hits on their create a new flavored potato chip campaign because of crowdsourcing, the negative effects cannot be dismissed. And although, as of right now there is not enough information to make the straight correlation between crowdsourcing and jobs lost, it is obvious to see the implications that such techniques will have on advertising, data research, and design fields. 


      In the article Faw states: 

        "Yet, it’s hard to ignore the fact that crowdsourcing may have the unintended consequence of eliminating   professional positions that are typically filled by entry-level, Millennial-aged workers. Or to borrow a popular cliché: why buy the cow (graphic designer) when you can get the milk (logo) for free?"

     Undoubtedly, the contests are appealing, the rewards are intriguing, and the experience would be incredible, however, where is the line drawn and the job returned to the rightful owners? As of right now, the user generated content does not hold enough power to turn over the market.

      "Professional ad agencies and middlemen still serve a purpose, particularly as gatekeepers. “You will see   companies do crowdsourcing to test an idea, then turn to an agency for refinement.” 

     With all that being said, the unwarranted consequences of consumer creativity is not yet alarming, but it is something to think about. Full-time consumers as part-time "employees" is something to look out for as we watch crowdsourcing make full-time employees become full-time unemployees. 

      In my opinion, I really enjoyed this article. More recently, I heard of the several crowdsourcing opportunities in companies whose products I use regularly. Personally, I have never participated in an event, but I think the concept is a bright one for companies with both large and small markets. With that being said,  I have never thought of the possible negative effects that such a technique could have on jobs.  It is scary to think that the positive production of ideas by millions could have such detrimental repercussions on society. 

     Evidently, this topic has three sides. If you view it from the side of the business it is brilliant. They are receiving millions of ideas without spending a dime on salary expenses. They are engaging their consumers and giving the people what they asked for. All of these are keys to the success of marketing and seem to only benefit the business and its products.  In the scope of  the consumer this is a fantastic opportunity to create something spectacular. You can win rewards and reap the benefits of generating a multi-million dollar product concept. The experience from such a event is so valuable and beneficial to any resume. Lastly, as an employee it is offensive. First off, I would think is my work not good enough? And then, I would start questioning my position in the company.  

      Depending on the angle, I can agree and disagree with the idea of crowdsourcing. But as a business student, I see the positive much more than the negative. I am enthralled by the concept of using the consumers as workers per say. As I see it, if the products are for them, they should have the most say so that they will be satisfied and buy the product. If they are satisfied and purchasing, then I will be satisfied and gaining the profits. Ultimately, suit their preferences, appeal to their tastes, and satisfy their needs because that is what marketing is all about. 


Online Article

Topics: Gatekeepers, Crowdsourcing

Wendy All Grown Up

Wendy's Redhead Gets a Makeover

By ANNIE GASPARRO And SAABIRA CHAUDHURI

Updated October 12, 2012, 3:37 p.m. ET

       To adapt to the changing preferences of consumer tastes, Wendy's Corporation has remodeled their logo, brick and mortar stores, and menu. In order to compete with the growing fast-casual companies such as Chipotle and Panera, Wendy's has decided to focus on fresh ingredients. Their goal is to find a medium between Mcdonald's and these fast-casual restaurants. Without removing their tradition, the hope is that they can modernize themselves in a intriguing way.

       "The remodeling is extensive—offering features like lounge seating with fireplaces, flat-screen TVs, Wi-Fi and digital menuboards. The process is going slowly, though."

       The company's new approach to their appearance faces some problems however. The Wendy's restaurant change is divided into two segments, the company owned and the franchised operated locations. With the restaurants of 1,425 and 5,122 in each segment respectively, there is a divergence in the capabilities and resources of the two. Understandably so, the franchised locations can not afford the same remodels in the same short period of time like the company operated.  To help bridge the divide the company is offering $10 Million to franchises in incentives for the remodel. 

     Progresses are still being made and the results are still yet to come. The hopes that a friendlier logo, a warmer interior, and a healthier menu will bring in substantial profits. This profits can hopefully counter the second quarter loss announced in August due to expenses and debt. 

    At the end of the day, Wendy's has faced rising commodity costs and failed marketing promotions as of recently. With the new addition of Mr. Bahner, a longtime Procter & Gamble Co. executive, as the new chief marketing executive, Wendy's will hopefully be able to build upon their old tradition values with new marketing promotions that will increase their competitive advantage against the brand names like Mcdonald's and Panera. 

     I think that finding a happy medium fast-food and fast-casual is crucial to the possibilities for success for Wendy's. Although many may believe that fast-food is fast-food it does not matter the name, I find that this is something that Wendy's can build on. 

    People choose Panera and/or Chipotle because it is the healthier decision. Undoubtedly, healthy foods are at the forefront of the food industry right now as consumers are becoming a lot more health conscious and aware of what they are intaking. However, there are still times that it is easier to just grab a Burger King drive-thru burger and fries and be on your way. 

    Genius idea: Combined the two qualities of each form of fast-food and fast-casual, and you will have reached the desirable mean. If Wendy's can withstand the expenses, promote, and utilize healthier and fresher products they will be capable of finding that middle.  I think that this middle can allow Wendy's to regain some of the market share that they have lost to Panera Breads or Chipotles. This in between approach allows them to offer the best of both worlds. 

    The only thing I am not sure about with this concept is the changing of the logo. I understand that it is outdated and pretty stern for a simple fast-food restaurant, but it what they are known as. The tradition of "old fashion burgers" is what got them to have over 6000 locations nationally. I agree change is good and with out a doubt necessary to adapt to the new consumer preferences and taste, but I do not think it is a strong idea to stray to far from who they are and what they were built from. Although, their goal may be to reach new and more modern customers that does not mean they can just forget the old and loyal customers of the past fifty years or so.  If they forget them, they will most likely loss more than they gain.

Topics: Franchising, Market Penetration, Brand Competition

Wall Street Journal "Wendy's Redheaded Mascot Gets Makeover"

Comic Con Competition

Marketers Seek Out Geeks

By ANDRIA CHENG

October 15, 2012, 7:27 p.m. ET

      In the article written by Andria Cheng in the Wall Street Journal, the readers learn about the corporate enthusiam to gain the attention of one of America's most thriving target audiences. At the Comic Con in New York City, companies such as Walt Disney, Martel, and even General Motors competed to distinguish themselves from their competition. With the platform of one of the biggest comic con gatherings in the country the executives of these companies all agree that the audience of these events are the keys to their successes.

      "The people drawn to New York Comic Con "are people who are setting trends," said Dan Buckley, president and publisher of print, digital and TV at Marvel, in an interview. "They are the early adopters of technology. These are the people who start things and make them hot."

      Vying for the attention of the "trendsetters" allows companies to expose themselves to the people who give them the best chance of gaining market share. The 116,000 people at comic con represent the demographic that has the power to generate interests of others. 

     This can be done through a simple social media post. With such a small task, consumers everywhere can learn about a product through their friends. By posting their opinions the trendsetters are spreading the word about a product to followers.

      It is a different approach to marketing. However, companies such as Marvel believe it is going to benefit them. The feedback that they can receive will help them distinguish the right opportunities from the bad. In short, by exhibiting their products to the crowd at the convention they are reaching a much bigger market of followers, all while gaining valuable insight on the opinions of the people who matter most: the consumers.

     "These are people who live and breathe our products," said Marvel's Mr. Buckley. "Having a chance to get their feedback and telling us whether we are doing right or wrong on a qualitative basis is fantastic. It's not important just for Marvel, but it's also important for our licensees, our broadcast companies and game companies."


    Although, I understand the thought process of these companies, I do not necessarily agree with their opinions of who are trendsetters. For me, I do not look to members of the comic con community to tell me what is the most popular and best available products on the market. 

     Obviously, finding trendsetters are crucial to spreading the word and thats the beauty of technology, but I think that the trendsetters are, celebrities and athletes, people who that youth, teens, and adults look up to. They are photographed daily, they are in the news, and they have millions of followers on social media. This are the people that companies should utilize. Let them wear your brand and promote your products. The word will spread much faster and the advertising will be a part of their daily life.


 View Wall Street Journal Article Online

Topics: Demographics, Trends

McMarketing Moves

McDonald's Files Coffee Trademark

Updated October 3, 2012, 9:02 p.m. ET

By ANNIE GASPARRO And JULIE JARGON

    In this article posted to the Wall Street Journal website, we learn that trade website Burger Business has announced McDonald's has made the decision to file a trademark their name for their own ground and whole-bean coffee. 

     The expectations is that consumers will be to purchase bagged "McCafe's" on the shelves of their groceries stores. This idea follows the suit of the strategy of one of their competitors in Dunkin Donuts. Filing for a trademark is not new for McDonald's. In recent years, Mcdonald's has filed for trademarking several of their most popular menu items such as the Mac Snack Wrap, the McDouble, and the McCruncher.  
  
     Conveniently enough, coffee consumption is vastly growing in the United States with over 58% of people over eighteen drinking it. This fact gives McDonald's even more motivation to expand their coffee brand. The opportunities for the success of the expansion is there. According to Starbucks, packaged coffee is $5.6 billion business in the United States

     "A study last April by market-research firm CustomersDNA LLC showed that McDonald's coffee drinkers are more loyal than those who frequent Starbucks and Dunkin' Donuts."

     The executives of McDonald's hope that their loyal customers desire for homemade McDonald's coffee will be able to increase their sales and profits, which as of recently have been suffering. In fact, McDonald's shares have fallen nearly 10% over the past year. Analysts have found different reasons for these hardships facing McDonald's such as the tradition brand competition among Wendy's and Burger King, but also more and more analysts are taking note of chains such as Panera. Panera and other similiar restaurants have marketed themselves as healthier, and thus ultimately better options than the fast-food chains. As a result, the health conscious customers seem to be leaning towards these options instead of McDonald's. 


      I believe that McDonald's file for the trademarking of their coffee is a step in the right direction for McDonald's. With the support of their fan base coupled with their global brand name they will have no trouble marketing or spreading the word about the introduction of their bagged products. 

    Their competitive advantage of cheap prices may also be a contributing factor to the success of this business venture. Although, drive-thrus in themselves are efficient enough, I think being able to have the coffee readily available at home adds a whole new dimension to their objective of gaining more of the coffee consumer market. Not only that, but I also believe that if people have the coffees at home they are going to want that coffee again if they drive by one of the thousands of McDonald's conveniently located on what feels like every street corner. 

    The constant image of the golden arches and the smell and taste of their enticing coffee, will leave a lasting memory either consciously or subconsciously on their consumers. They are going to want more coffee in the store and more coffee off the shelves. Lastly, after the progression of this idea comes into action McDonald's will be able to compete even more aggressively with Starbucks and Dunkin Donuts. 




Topics discussed: Brand Competition, Trademark, Consumer Preferences

Wall Street Journal Article

Catalog Catastrophe

IKEA Removed Women From Some Saudi Catalogs

October 1, 2012, 10:42 a.m. ET

By ANNA MOLIN

       Written by Anna Molin, the article "IKEA Removed Women From Some Saudi Catalogs" outlines the poor marketing decision of the Swedish company to remove some pictures of Women, specifically for the Saudi Arabia catalog. It is no secret the division between men and women in Saudi Arabia is preposterous for 2012. 

     With this in mind the marketing executives believed it would be in their best interest to remove or replace some images of women in their most recent catalog. What they did not expect was an uproar of anger feminists, modernists, and equality seekers all over the world. IKEA typically follows a straight extension strategy in which the bulk of their products remains the same throughout the global market, however, in certain circumstances they entrust in a product adaptation strategy where depending on the segmented market the products may adapt.

      There is nothing wrong with this strategy, in fact it makes sense. The issue here lies in their inability to please everyone. IKEA thought that taking out the pictures would increase interests and lower conflicts for their traditional Saudi male consumers. However, what actually happened was the divergence of the catalogs was publicly announced, and now it seems as though the executives of IKEA do not believe in equal rights and so forth. It is highly doubtful that was in any way, shape, or form the message they were trying to convey, but it is easy to see where the mishap occured. 

       Truthfully, there is no answer to a problem of this magnitude. Unfortunately for IKEA, their large global presence presents conflicting interests. 

      "The retailer has long aimed to avoid the political spotlight, but has had difficulty steering clear of scrutiny given the size of its operation and the amount of countries it does business in."

       Based off the various social norms, business ethics, and ideologies of the 337 IKEA stores consumers worldwide, there is no set marketing plan for all. Logically, it would make sense to adapt to the mold of where ever a particular store may be, but realistically it seems as though because of political, religious, or cultural issues it may be best to remain neutral. 

    For now, IKEA is trying to play clean up and recover their reputation. Until otherwise, the executives will continue to acknowledge their mistake and declare their views on equal opportunities, but it cannot be too long, until a big decision such as the catalog comes up again, and the big dogs must decide what they are going to display. 

    I think this article is a good showing of just how important marketing is. Until now, I never recognized how difficult it must be to involved in so many difficult cultures, all of which have different views on how businesses, and society as a whole should be ran. As stupid as I thought it was too remove the images, I can see why they did it. The problem arose because the catalog for Saudi Arabia was not intended to be seen by their consumers in other market segments and it was.   

       Clearly, IKEA's marketing department did not think out the implications of what could happen or even realize the message they were sending by doing it. I almost feel bad for IKEA. Their global platform is so big, maybe too big, too big for their own good. Although, it may be difficult I think that IKEA needs to try and find a balance between cultures... 
   
     It is either that or solve the inequality issue of Saudi Arabia. With that as the choices, I think If I was them I would take my chances on finding a happy medium. Until then, I think it would be best for IKEA to step back from the headlines and work on rebuilding a reputation of a respectable company with good ethics, morals, and values. 

Topics: Moral Values, Straight Extension, Product Adaptation, Global Presence, Reputation

Article can be found: http://online.wsj.com/article/SB10000872396390444592404578030274200387136.html

STAR Company Expands For More BUCKS

Starbucks Aims to Invade Nordic Region

Updated September 27, 2012, 10:14 a.m. ET

By JOHN D. STOLL

       In this article, found in the Wall Street Journal, the readers are again shown a company that is trying to expand on their global presence. Starbucks, the famous Seattle based coffee shop, has announced their decision to vamp up their presence in the world largest coffee consumption market, the cold Nordic. In order to do so Starbucks has paired up in a strategic alliance with the Norwegian firm Umoe Restaurant Group in order to attract and maintain a steady consumer base.  

       These type of market development strategy is not new for Starbucks as they opened 500 new stores worldwide last year alone, many of which were licensed. However, the plan for their new Nordic market is to reintroduce the customers to enjoy Starbucks through social media outlets, instead of mass marketing strategies. 

     All of this needs to be done all while Starbucks adapts to the high cost coffee market of Oslo, and other specific Nordic opportunities. The market is evidently very different than the Western segment that Starbucks is used to, however, the founder of Starbucks new partner Umoe does not believe this should be any issue. 

        In fact, he stated in an interview "Starbucks's ability to associate itself with sustainable tactics (such as fair-trade coffee sourcing) could be a successful way to build a reputation among Nordic nations that tend to pride themselves on ethical business practices." 

        All in all, the success of this will come down to the Starbucks detailed business plan of how they will execute and implement a market development strategy. If they are able to adapt their costs, tactics, and business ethics to suit the consumers of the Nordic region, they will be able to find themselves successful in reaching a strong presence in the market. 

        As a fan of Starbucks, I truly believe this is a good idea for them. I find that both the external and internal environments involved in this idea are lined up nicely. First off, Starbucks is an already successful global brand with a consistent following, and more importantly has a market value of $38 billion dollars. This outlandish amount of money gives the company's chief executives some room to take some risks in expansion, and for this case by risk I mean fairly simple decisions. 
     
       There is not too much risk I see involved in expanding to the world's largest coffee consumption area. Obviously the market is already there, the only possible issue is that they will not be fond of the American-based company. Ultimately, I do not foresee that being an issue because as Umoe founder stated in the article, the people of the Nordic region are appreciative of American products. I believe this appreciation paired with the steady economy in the Nordic region will allow the Nordic people to be open to engaging in the Starbucks craze which as garnered so much attention worldwide. 

      In the end, as long as Starbucks follows the Nordic business structure for coffee they will be able to have the same success they have had elsewhere. 

Topics: Market Development, Strategic Alliance, Business Ethics, Social Media
WSJ ARTICLE