Leapfrogging into the Retail Landscape

As per usual, recessionary times are times where those with lots of money buy those without lots of money. Such is the case with Bell buying up The Source. BCE Inc, a privately held income trust, is taking this "daring yet risky" to rapidly penetrate the mall scene, where Rogers Communication Inc. and Telus Corp. have been aggressively making their presence known through branded outlets across Canada.

A few marketing related observations:
-The Source was previously owned by the now-non-existent Circuit City, which went into bankruptcy protection and liquidated last year
-The Source used to be called "Radio Shack" in Canada
-Despite (or because of) the recent rebranding, The Source has been profitable over the last 7 years
-The Source competes mainly with Big Box stores such as Future Shop, Best Buy, and Wal-Mart
-It has been able to maintain a niche market amongst gadgety type men who come to the stores to buy trinkets for their at home race car projects and the like

Since The Source is an "electronics store" rather than, say, a "cell phone store," it allows Bell to sell its whole line of communications products from cable, internet, phone, and satellite services.

I don't really see any obvious alignment between the two brands, and I wonder how much rebranding they'll do to The Source. Keep it as The Source? I feel like the brand equity isn't that big of a deal since it's a fairly new brand as it is. And the "by Circuit City" part, although long-gone, still lingers in the mind and may have negative connotations. Change it to some sort of Bell store? This may alienate people who purchased there for non-cell-phone related stuff. And the little DIYers around the country generally don't take kindly to major corporations impeding their pet projects.

Overall I'd say smooth move Bell! I look forward to seeing what is in store!

Have you seen the Chip Bandit?!

Last night (February 26, 2009) we held the Frito Lay Boardroom and it was a great success. Frito Lay, our lead sponsor, was generous enough to bring an entire display of chips and gave the chips away at the end of the night to attendees.

The majority of our guests took a bag or two for their families to enjoy. The parents were kind enough to exercise restraint, and let the income-less students take the majority of the bags.

It seems, however, that one grown man who was at the Boardroom decided to extort Frito Lay's generosity and the restraint of the other parents. This man was seen making several trips to and from his car, loading it up with free chips. Many students left empty-handed because of his greed.

Have you seen the Chip Bandit?

A fantastic and hillarious campaign

Frito Lay Canada has just unveiled their new marketing campaign for Doritos - "Become the Doritos Guru".

This is a contest where one lucky person will win $25,000 in CASH as well as 1% of future Canadian flavour sales.

All you have to do is create a hillarious commercial about the new unidentified flavour and submit it to Youtube! My guess is that the most hillarious one will win.

Tony Matta, Vice-President of Marketing at Frito Lay Canada was recently featured in The Globe and Mail (and Marketing Mag) along side this new campaign (and the commercial that aired during the Superbowl). The company has received a lot of industry feedback already on how breakthrough this program is on both the technology side, the consumer engagement side and the cross functional agency collaboration aspect. They know exactly where their target market lives (Facebook and Youtube are highest on my favourites bar) and are dealing directly to them.

Tony Matta will be a judge at the MARS Apprentice boardroom on February 25 here at the DeGroote School of Business. Sapphire Corp. is winning 2-1 over Flip Inc...both teams have been working hard - will Sapphire take the lead or Flip tie things up?

Only the judges will decide!

Market Rebels and Innovation

"Activists who challenge the status quo play a critical but often overlooked role in both promoting and impeding radical business innovation."

-Hayagreeva Rao

A recent report published in the McKinsey Quarterly discussed how "market rebels" have played a role in the creation of many new and innovative product segments or have prevented potential innovations from taking place.

One example is the PC market. All of the technology needed to have a home personal computer was available long before it was marketed to consumers. But hobbyists still had these computers at home, in their garages, that they made themselves with scavenged parts. They were rebelling against the market, creating products for themselves when commercialism had yet to catch up to their needs.

Sometimes overlooking the importance of market rebels in adopting new products can lead to a floundering product. The Segway personal transporter is an amazing device with many potential uses. The developers, however, overlooked the "cultural and social mobilization needed to excite their targeted consumers." Getting regular people to scoot around on strange, moving, pogo-stick like contraptions is no easy task. You need to find and motivate people to be willing to "rebel", look like a dork, but make it cool. This is no easy task. (Believe me, as an engineer I know how hard it is to be simultaneously a huge dork and permacool)

Also mentioned is the idea of "hot topic" and "cool mobilization".

ahhh mention of being "cool" again. Cool is one of those words I've been using since I was a kid, and is still around. I hope it's around forever and my own children don't make fun of me for using it profusely.

Hot causes are those that inspire feelings of pride or anger. How do you make your cause - whether it be getting people to buy smaller batteries or recycling - inspire those feelings?

Cool mobilization activates emotion and engages audiences in new behaviours and experiences that are improvisational and insurgent. So now you have to engage people to travel to the specialty store to buy your tiny batteries since they aren't at Wal-Mart, and spend time each day carefully separating their plastics, glass, aluminum, and paper.

The study is actual very very interesting and I highly suggest that you have a read if you're interested in innovation. This is the really cool and special kind of innovation, that creates entirely new norms within society. It is available on the McKinsey website, but you do have to sign up for a membership (which is free). I recommend it wholeheartedly!

Click here to get to the McKinsey site.

Hayagreeva Rao. "Market Rebels and Radical Innovation." The McKinsey Quarterly. January 2009.

Millennials...the new generation of the workforce

"They’re the hottest commodity on the job market since Rosie the Riveter. They’re sociable, optimistic, talented, well-educated, collaborative, open-minded, influential, and achievement-oriented. They’ve always felt sought after, needed, indispensable. They are arriving in the workplace with higher expectations than any generation before them—and they’re so well connected that, if an employer doesn’t match those expectations, they can tell thousands of their cohorts with one click of the mouse. They’re the Millennial Generation. Born between 1980 and 2000, they’re a generation nearly as large as the Baby Boom, and they’re charged with potential.

"In this uncertain economy and highly competitive business environment, companies across North America recognize that the differentiator is their people. Those organizations that emerge as winners in the battle for talent will have their fingers on the pulse of this newest generation. They’ll design specific techniques for recruiting, managing, motivating, and retaining them. "

Source: Generations At Work

Yes, I own a ThinkPad

I really liked this article about the HP Jornada...an old old laptop that this reporter uses for taking notes which has an extremely long battery life.

I have a ThinkPad R51 and I purchased it as a refurbished model. This thing runs great and even though it's approaching 6 years old it's still durable as the day it was made (the same can't be said about other laptops, eh Jocelyne?)

This leads me to think about the next evolution of mobile computing...namely netbooks. Are they really useful? Are they even a good buy? These netbooks are the newest craze on campus and I've asked some owners what they like about it. It's great for taking notes, but irritating to surf the net (ironically) due to its small size. There's a lot of side-scrolling, apparently.

Then I remember an article where I recall Mike Lazaridis (Co-CEO and Founder of Research In Motion) said, among other fun things, that the BlackBerry Storm is a netbook. I'm not sure if I agree with that, but I guess the big difference besides a Dell or Asus netbook and the Storm is a 9" vs 3" screen...and the cool clickability of the SurePress screen.

Another cool indicator

I'm quickly realizing that I have a thing for articles that reveal some sort of insight into general business practices and indicators.

Such as in "Mattel's toy story not a happy one," by Aarthi Sivaraman published today. Talking about the awful decline in the toy market because of the gloomy global economy (way boring...ok we get it, every sector is declining), an analyst noted that the inventory levels at Mattel had risen sharply. Ok, we know too much inventory is bad, it's money just sitting there wasting space and using up capital.

But the “really shocking” aspect of Mattel's results was its inventory level, up 13.3 per cent from a year ago to $485.9 million, said BMO Capital Markets analyst Gerrick Johnson.

“That means things deteriorated much more quickly than they had planned,” Johnson said.

As usual, it's not what happens, it's what you thought was going to happen, and how that compares to what actually happened.

Clairvoyance is key in the world of business!

Aarthi Sivaraman. "Mattel's toy story is not a happy one." reportonbusiness.com. February 2, 2009. http://business.theglobeandmail.com/servlet/story/RTGAM.20090202.wmattel0202/BNStory/Business/home?cid=al_gam_mostview.

Church can be Cheeky

New ads will soon be making an appearance in and around Toronto as an atheist group and the United Church both release their version of enlightenment.

Started in Britain recently, the Freethought Association of Canada will be sponsoring ads that say "There probably is no God. Now stop worrying and enjoy your life."

The United Church will be releasing ads that say "There probably is a God. Now stop worrying and enjoy your life."

What I would like to put out there from the article is a comment by article author Jennifer Wells, that "the campaign has already achieved the exposure and earned media that consumer goods companies dream of, not to mention the citizen engagement that advertising companies cite as the holy grail."

Just another example of how reading this sort of thing gives you insight that you aren't expected. Citizen engagement. What a great way to phrase that. Isn't that true? That engagement is really what ad people are after? Through engagement the messages become stronger and more vivid and are more likely to illicit sustained emotional responses. And look at the extra media! Just me writing about this here is another example of why provocative and creative campaigns are exponentially effective.

Check out the original article:

Jennifer Wells. "United Church hitches ride on God campaign." reportonbusiness.com. January 30, 2009. http://business.theglobeandmail.com/servlet/story/RTGAM.20090130.watheism31/BNStory/robMarketing/home?cid=al_gam_mostview.

Hyndai's Answer to the Crisis

Want to buy a new car?

Afraid you'll lose your job?

Reigning in spending because of general economic gloom?

Well Hyndai is really taking it to the next level on this one. If you buy a new Hyndai and lose your job within the year, they'll take the car back and you'll be off the hook.

As much as this is somewhat typical American doesn't-matter-if-I-can't-afford-it-I-want-it-so-I'm-buying-it-anyways attitude, it is at the very least a very interesting bit of marketing.

What sort of consequences will this have for other car companies? Hyndai has been making great strides in quality, the willingness of the North American auto market to accept this change of image is lagging.

I find this difficult to predict. Either the other car companies will follow suit (think of the deluge of 0% financing that resulted after GM first introduced it post 9-11) or Hyndai will end up alone in this little hold they have dug.

Only time will tell.

Really!? He said that!?

Reading an article in the International Herald Tribune, I just found out that it was Roosevelt who said "the only thing we have to fear is fear itself."

It sounds like one of those really deep, inspiring, rhetorical lines. You know, welling up eyes with tears across the country as the weak finally find strength and the cowardly find courage and we all accomplish things we didn't think we could and othersuch etc etc.

WELL it turns out he was referring to the banking industry!

It's not rhetorical or inspiring at all! It's actually quite a literal statement. Fear, also known as lack of consumer confidences, stymies consumer spending, which makes up most of the American economy. So GDP declines, unemployment rises, there are deflationary pressures on prices, credit tightens even in the face of minuscule interest rates, and overall it's just bad news.

And what is actually keeping America in this mess is fear! How devastatingly practical!

Are magazines becoming extinct?

Marketing Magazine reports that online Canadians spend as much time watching TV as they do surfing the net. They are also simultaneously surfing the net and watching TV or listening to radio.

“When we’ve got people multi-tasking, I have to question if the advertising message is getting through at all,” says Mark Laver, study author and associate vice-president of Ipsos Reid. “From an ad perspective, you’ve really got to come through with some creative, unique advertising to capture people’s attention if they’re doing two things at once.”

“Companies need to understand how the Internet is affecting their business and build strategies on how to deal with this change,” said Laver. “In today’s world it’s no longer a one channel strategy, that’s evidently clear... you can’t put all of your advertising dollars in one place.”

The end of the article suggests that an increasing amount of Canadians are getting their news from the internet (and popular blogs like this one). Do you think newspapers will still stay relevant as internet usage increases?

The fickle thing called an industry

I think it's hard to really wrap your head around how many macro-issues are present when you really get into the upper-echelons of management and decision making. True visionaries who enact real changes in people's lifestyles and who give birth to and kill entire industries are the unknowns at the helm of major (or currently minor, soon to be major) organizations around the world.

Longtime Intel leader Craig Barrett is retiring as the company's chairman, and an article in BusinessWeek that chronicles his legacy gives a very interesting look at how the PC industry has evolved, and the role that Intel played.

What jumped out at me was the statement that the PC industry is "relatively mature." Besides the initial shock that an entire life-altering technological sector can be created, grow, and mature between grade school and my early twenties, this is an important statement about the need to be constantly aware of the environment in which you are operating.

Another interesting point to note is the whole netbook phenomenon. Netbooks are stripped down laptops that can basically only run the internet. They are extremely popular and cheaper than a regular laptop, but have very thin margins for manufacturers and sellers. So this is just a reminder that just because something will sell like hotcakes doesn't mean you should make it. The netbook can ravage the industry. Afterall, if you buy a netbook, you don't need to buy a nicer, bigger, more equipped (and more profitable for the seller) laptop or desktop computer. Sometimes introductions like this are lose-lose (for manufacturers...consumers probably do alright).

A little more about strategy in a downturn from a related article:

The PC makers that stand to do best include Hewlett-Packard (HPQ), Acer, and Apple (AAPL). HP has a well-balanced portfolio of products. Acer operates with a super-lean Taiwanese cost structure that allows it to price its products aggressively. Apple seems content to stick with making ever-more-powerful PCs for premium prices.

But will marketing high-powered computers featuring slick industrial design still work in the bust? That's debatable. Market researcher NPD Group says sales of Macintosh computers declined 1% in November, which could be a harbinger of trouble.

Companies have to know who they are, what they are best at, what their core competency is, and stick to it, grow it, live it. (Until it's not working anymore...then feverishly work to change it).

Cliff Edwards. "Craig Barrett's Mixed Record at Intel." BusinessWeek. January 23, 2009. http://www.businessweek.com/technology/content/jan2009/tc20090123_272377.htm.

Steve Hamm. "Recession Comes to the PC Makers." BusinessWeek. January 15, 2009. http://www.businessweek.com/magazine/content/09_04/b4117082616113.htm.

Who is who?

Check out these photos I took on my most recent trip to Fortinos:






I remember seeing the commercials for Knor first, but I was super surprised to see V8 introduce the EXACT same thing. Ok, ya, on one hand you're building off the equity of the brand, but honestly I think it makes you seem like a copier, and that's just lame. Funniest part was that V8 didn't even have a "red" soup, which to me seems the most fitting for them. Very weird indeed.

And then what's up with the whole colour soup thing anyways? I mean, yes, you read that it's important to eat "brightly coloured" foods because of their variety of nutritional content. But aren't the people who are reading those types of articles in magazines and other sources (my source: runnersworld.com) also a bit too informed to fall for this type of thing? I feel like it's too obvious of a marketing ploy.

Personally, I don't like buying products that have marketing campaigns or strategies that I don't like because I feel like they should be punished. You know, for not doing a good job of marketing. And somehow my boycott of them will teach them a lesson. Then again, maybe that's just me.

Verdict? I bought the Knor Orange.

....

I like pumpkin and curry and they had a dollar off coupon!

Interesting site

Sign up on www.thewisemarketer.com It offers much interesting reading.

GET READY APPRENTII!

As you prepare to set forth on this journey remember this is a test of endurance, integrity, creativity and team work. You have already WON by becoming a part of this experience, NOW you must focus on embracing learning, letting adversity or challenge excite you and making your inner spirit your face. Be true to yourself and be true in your deeds. There are no shortcuts, no tricks, no magical solutions. What will speak for you is the character that you demonstrate - curious, honest, engaging, trust worthy, and empowered by principles. I will be with you all the way.

The Cassies - I love this site!

When I was solving the Frito Lay challenge last year, I think I stayed up late with the group one night checking out the website of the Cassies, the Canadian Advertising Success Stories. This gave us a lot of inspiration about how to create a successful marketing campaign. I love the videos and the pages and pages of reasoning why the particular campaign was selected as the best.

I think my favourites are the Pepsi "Forever Young" commercials, and the Juicy Fruit case. Not only were these hilarious, but they also got the job done (and not just in a small way) The analysis, strategy, and the creative together prove CATEGORICALLY that the marketing efforts caused an increase in sales. If you are one of those who believes that marketing doesn't work, take some time and spend it on this website! Not all in one place, though.

The crossover notes are practically required reading for any marketing student (hint, hint Apprentices!). So get to it!

P.S. JAN Kelley Marketing won a Cassie for work on a small budget in 2006 with RiteRate.ca, check out the Case Library. I can still recall their catchphrase from the radio..."Those who get it, save." :)

What's Eating Wendy's?

Wendy’s will cease to serve breakfast at more than half of the 850 locations in the United States. What are they serving instead? Market share of course, to their aggressive major competitors: Tim Horton’s, McDonalds, Second Cup and Starbucks. These companies are continuing to battle it out in the breakfast war, using pricing strategies and product differentiation strategies. With a major player taking a time out, it can only be an ominous sign for the industry: the oven is getting really hot, so get fierce or get out.


http://business.theglobeandmail.com/servlet/story/RTGAM.20090113.wrbreakfast14/BNStory/Business/home

What a day!

WOW!

I will preface this post by saying that I am aware I am a huge nerd because I am so invigorated by productivity.

Confirmed our Keynote Speaker for the MARS Apprentice Season Premiere on January 20th, 6:30pm CIBC Hall. Mr. Adam Grogan will be speaking on "Marketing in Challenging Times" and how Maple Leaf Foods has grown as a brand post-recall.

Wednesday, January 14 (TONIGHT!)

A Coaching Workshop held by our great friends and long-time supports Cheryl Breukelman and Simon Geohagan at Epiphany Coaches. The 12 Apprentices were able to learn more about how to create and sustain a high performing team: overcoming struggles, removing team toxins, and working at your best. The Apprentices had a great time, learned so much, and feel so much more prepared heading into the first Boardroom Challenge, presented at the Season Premiere.

Thursday, January 15, 2009
Pick up an issue of the Hamilton Spectator to find our FULL PAGE FEATURE about MARS Apprentice. Apprentice Bios, words from our sponsors and Apprentice Alumni, and an announcement and general invitation to our Season Premiere.

HUGE thank you to JAN Kelley Marketing and BlackBerry Rogers for supporting this feature. We could not have done it without your support. We look forward to putting on a great show for you on Tuesday, January 20th!

THANK YOU TO EVERYONE AND SEE YOU ON JANUARY 20TH

Interested in the "best job in the world"?

So their website has crashed several times, but the job is still up for grabs:

Caretaker of Hamilton Island, right in the heart of the Great Barrier Reef.

Job Requirements: Must be over 18 years of age, must be able to swim.

Responsibilities: snorkeling, sun bathing, swimming, having as much fun as possible.

Compensation: approx. $125,000 CAD for 6 months.

Benefits: Free rent at the local villa. Oh yeah, it's a tropical island too.

How to apply: try to get online, however, their site is overloaded with visitors. Candidates are required to create a video application in English of up to one minute explaining why they are uniquely qualified for the job.

TV ads still going strong: BBM

"TV is overwhelmingly the source of Canadians’ favourite advertisements, according to a new study from BBM Analytics omniVU released yesterday by the Television Bureau of Canada.

In the study, 65.1% of Canadians 18 to 49 said their favourite ad was one they had seen on TV, well ahead of out-of-home (8.2%) and the Internet (5.4%)."

From January 2009 issue of Marketing Magazine.

More on Shopper's Drug Mart

Ok it is clear that I am obsessed with Shopper's.

In his column on elevated brands, Mark Healy describes some changes that Shopper's has gone through in recent years, developing "strong retail outlets in bigger centres with a focus on in-store experience."

In Shopper's case, they are closing in-mall stores and shifting fully to a destination brand.

I just thought this was really neat. When a brand and a store and a company changes over time, so many things change with it. It's incredible. I think that's one of the most intriguing parts of marketing. It honestly just encompasses everything about a company and everything it does. Too cool.

Mark Healy. "How to elevate your brand." reportonbusiness.com (December 12, 2008). http://www.theglobeandmail.com/servlet/story/RTGAM.20081212.wsb-healycolumn1212/BNStory/incubator/home.

Co-Chairs Musing of the Day

A happy Jocelyne is a happy Dan.

Loblaws will charge for plastic bags

Do you really think this is about the $$$ ??

I mean, I'm sure it's a nice touch!

Makes you think of other instances where it isn't really about the money. It's about thoughts, feelings, emotions, and other associations that money can provide. Prestige. Exclusivity. Illusion of a great deal. Urgency. All sorts of things.

Check out the article. There is a picture of Mr. Weston, that handsome devil.

http://business.theglobeandmail.com/servlet/story/RTGAM.20090109.wdiscussionloblaw0111/BNStory/Business/home

Co-Chair Quote of the Day

Dan is changing the password for his computer...

Dan: Pfft I don't put a password hint.

Jocelyne: Wow, really living life on the edge there aren't we?


UPDATE!!!!

We are meeting tomorrow with someone to discuss official MARS Apprentice Opening Ceremonies Photography!!!

The Opening Ceremonies Entertainment Sponsor

The MARS Apprentice Planning Team and Opening Ceremonies Directors are proud to announce that we have secured the services of Q Entertainment, the Quintessential Leaders in Modern Day Entertainment for our Season Premiere on January 20th.

Tickets will be available in the DSB Lobby this week, from the MARS Apprentice Co-Chairs, or from any member of the MARS Apprentice Planning Team.

Student Price: $8 in advance (includes one drink ticket)

The big story of the day - Canada's unemployment rate rises

[Cover of Maclean's, 1.19.09. Taken with my BlackBerry Curve]

It's been the big news story of the day..."Canada's jobless rate rises to 6.6% in December".

"Canada lost 34,400 jobs in December, a figure that was worse than economists had been expecting, as the economy weakened." CBC News

In the United States, the story is even worse - they lost 524,000 jobs last month which pushed the total job losses in 2008 to 2.6 million.

The latest page in the story of the current economic downturn. I find this issue important to students as we are the ones that are trying to enter the job market. Should we be worried? What I've been hearing is that despite the changes in the economy, organizations still believe that it is important to recruit top talent and are still actively searching. Once we do get out of 2009, since the economists expect things to turn back around, students who have entered the job market will have gained experience and hopefully be part of a company that will grow again and be in line for more responsibility or even a promotion. It's not the best time to enter the job market, but it's not the worst either.

The sponsors of MARS Apprentice are also recruiting students for co-op work terms and full-time positions this year. Frito Lay has an excellent Leadership Development program available, and Research In Motion is looking for another 1,250 employees this year.

Apprentice is even more proof that employers will still try to find the best and brightest students, despite the problems in the economy!

The Science Behind Shopping

If you had a choice between purchasing a perfume manufactured in Paris and one that is manufactured in Dallas which one would you choose? Well if you are like me and chose Paris you are also like the 9 out of 10 people. So what does that means? It means subliminal advertising! I was watching the Today’s Show on NBC this morning and was captivated by this piece.
Check it out:
http://www.msnbc.msn.com/id/27241255/#storyContinued
(Just click on the video launch)

Author Martin Lindstrom “Buyology: Truth and Lies About What We Buy,” which explains the scientific reasoning behind purchasing habits. Martin Lindstorm conducted an experiment where he performed functional MRI’S on various people to determine whether the subconscious has a roll in people’s purchasing habits. He concluded that the subconscious roll plays a great roll on how we buy products. One of the examples he uses is the controversy behind Calvin Klein commercials. The controversy behind the Calvin Klein jeans intrigues the consumer and thus makes them desire it. There are many examples that he provides that are worth checking out!

After watching this piece I may think twice of when purchasing a certain product. Maybe you will too?

Buy none, get one free

Sounds too good to be true eh? I found this article really interesting of how the "digital world" makes such a difference to companies today. Chris Anderson, editor-in-chief of Wired magazine claims the costs in the digital world are so low that both the companies and their customers are winners.
"There are really two kinds of free," says Mr Anderson.
"There's fake free, which is just marketing -the buy-one-get-one-free model, the invocation of the word 'free' to grab consumer attention, but it does not change the underlying economics." "For the first time in history, [this has] created an industrial model where everything gets cheaper over time, as the underlying costs get cheaper." Mr Anderson refers to Moore's Law, which states that computer power doubles every 18 months. The economic reciprocal of that, he says, is the cost of a net unit of computer power falls by 50% every 18 months, which means that everything gets cheaper by 50% or more every year and a half".
"At the moment, people are still suspicious of 'free' and are right to be so. They often pay further down the line or pay with their time or reputation."
"People are right to think that somewhere, somebody is going to have to pay."

In my opinion I think that consumers will always think there is an underlying cost somewhere hidden. In the article he talks about how airline companies may offer a free flight, but you pay for your baggage to be taken on board. There is still a cost that the consumer must pay. He also states, "maybe cargo pays the way and the passengers ride for free? Or we're actually a tourism arm of these destinations who are paying us to bring (people) to them."
I think its a really creative idea that may take a lot of time to draw the consumers in and actually believe that this concept is true. It's a great way of attracting consumers and making them test out your service or product.
Check out the article:
http://news.bbc.co.uk/2/hi/business/7811481.stm

Quantifiables

Just thought this article was neat because it had so many examples of performance metrics that are unique to the airline industry. It shows how important it is to analyze your performance in a reliable, consistant, and meaningful way.

Examples: Revenue passenger miles, load factor

John Partridge. "Air Canada, WestJet post record load factors." reportonbusiness.com (January 7, 2009). http://business.theglobeandmail.com/servlet/story/RTGAM.20090107.waircan0107/BNStory/Business/?page=rss&id=RTGAM.20090107.waircan0107

Potent Quotables

Hello Everyone,

I hope that you have all been enjoying your holidays with friends and family. Have a fun and safe new year!!

True growth and learning is really about seeking out challenges, so I thought to start off the new year I would share a quote from Karlfried Durckheim, a German diplomat, psychotherapist and Zen Master:

The person who, being really on the Way, falls upon hard times in the world, will not, as a consequence, turn to that friend who offers him refuge and comfort and encourages their old self to survive. Rather, he will seek out someone who will faithfully and inexorably help him to risk himself, so that he may endure the difficulty and pass courageously through it. Only to the extent that a person exposes himself over and over again to annihilation, can that which is indestructible be found within them.

May we all get closer to finding that indestructible part of ourselves this year.

Take care,

Jocelyne

Dealing with the Newly Thrifty Consumer

Expect this to be the name of the game in the coming year!! Consumers are hunkering down, and are finally saving again. The change has been most drastic in the US, with savings as a percentage of income finally creeping above a dismal ZERO. While good for the overall economy during this readjustment, it is bad for companies whose survival depends on consumers spending money - in other words...pretty much everybody.

There are a few bright spots. Tight economic times tend to benefit those who peddle vices - think gambling, tobacco, and alcohol.

In a report to be released today, The Boston Consulting Group has found that while the U.S. economy has been put to rout, and while Canadians are in a structurally superior position headed into recession, it is the Canadian consumer who intends a more dramatic pullback in spending.

Jennifer Wells. "The new consumer: Tight-fisted and 'emotionally fragile'." reportonbusiness.com (January 1, 2009). http://business.theglobeandmail.com/servlet/story/RTGAM.20090101.wconsumermain0101/BNStory/Business/home?cid=al_gam_mostview (accessed January 2, 2009).

Two things jump out at me in this article. First, a reminder that Canada is very different that the US and this should never be glossed over. Second, it's going to be a tough year for marketers. In the past, the main challenge may have been to get consumers to spend money on YOUR product instead of competitor's. Now the challenge will be to get consumers to spend money at all.

62% of us plan to cut back spending in 2009. That's more than the US with 58% and even Europe's 'Big 5' with 56%.

How will this change the actions of marketers? The study provides another clue: "Whereas 65 per cent of U.S. respondents say they will pay more attention to product promotions and buy more stuff on sale, a full 72 per cent of Canadians intend to adopt the same behaviour."

Ahh the dreaded price competition. A game where no one wins...except perhaps the thrifty consumer.

Viral Marketing - the Wii

What does this clip say about Wii?

Do you think it will catch on like other successful Youtube entries?

Personally, I love it.

http://clipmarks.forbes.com/clipper/Forbes/clip/8A12167C-EFBA-4160-B6E7-9674490A7484/